Barnes Group Inc. (NYSE: B), an international industrial and aerospace
manufacturer and service provider, today reported financial results for
the first quarter 2014. Net sales increased 18% to $312.1 million from
$263.5 million in the first quarter of 2013, driven by organic sales
growth of 4% and the sales contribution from the recently acquired
Männer business. Income from continuing operations for the first quarter
was $22.8 million, or $0.41 per diluted share, up 46% from $0.28 in the
prior year period. On an adjusted basis, income from continuing
operations was $0.50 per diluted share, up 25% from $0.40 a year ago.
First quarter 2014 adjusted diluted earnings from continuing operations
exclude the impact of Männer short-term purchase accounting adjustments
of $4.9 million pre-tax, or $0.06 per diluted share, and costs related
to the close of production operations at Associated Spring’s Saline,
Michigan facility which were $2.8 million pre-tax, or $0.03 per diluted
share. For the first quarter 2013, adjusted diluted earnings from
continuing operations exclude $10.5 million pre-tax, or $0.12 per
diluted share, of non-recurring CEO transition costs.
A table reconciling 2013 and 2014 non-GAAP adjusted results presented in
this release to our GAAP results is included at the end of this press
release.
“Barnes Group’s first quarter performance positions us well for
continued profitable growth in 2014,” said Patrick J. Dempsey, President
and Chief Executive Officer of Barnes Group Inc. “Our individual
businesses had varied starts to the year, yet overall results were
solid. Aerospace delivered 10% organic sales growth, and while
Industrial’s organic sales were essentially flat, organic orders
exceeded 7%. Additionally, the acquired Männer business delivered an
excellent quarter. The first quarter performance allows us to affirm our
2014 continuing operations outlook while tightening the expectation
towards the top end of the range,” added Dempsey.
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($ millions; except per share data)
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Three months ended March 31,
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Unaudited
|
|
|
2014
|
|
|
2013
|
|
|
Change
|
Net Sales
|
|
|
$312.1
|
|
|
|
$263.5
|
|
|
|
$48.6
|
|
|
18.4
|
%
|
Operating Income
|
|
|
$35.1
|
|
|
|
$25.0
|
|
|
|
$10.2
|
|
|
40.7
|
%
|
% of Sales
|
|
|
11.3
|
%
|
|
|
9.5
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%
|
|
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|
1.8
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pts.
|
Income from Continuing Operations
|
|
|
$22.8
|
|
|
|
$15.4
|
|
|
|
$7.3
|
|
|
47.4
|
%
|
Net Income
|
|
|
$22.8
|
|
|
|
$13.5
|
|
|
|
$9.3
|
|
|
68.9
|
%
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
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|
Income from Continuing Operations Per Diluted Share
|
|
|
$0.41
|
|
|
|
$0.28
|
|
|
|
$0.13
|
|
|
46.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from Discontinued Operations Per Diluted Share
|
|
|
$0.00
|
|
|
|
($0.04)
|
|
|
|
$0.04
|
|
|
NM
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Per Diluted Share
|
|
|
$0.41
|
|
|
|
$0.24
|
|
|
|
$0.17
|
|
|
70.8
|
%
|
NM = Not Meaningful
|
|
|
|
|
|
|
|
|
|
|
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Industrial
-
First quarter 2014 sales were $203.9 million, up 23% from $165.5
million in the same period last year. The Männer business, acquired in
October 2013, provided $38 million of the sales increase while
favorable foreign exchange provided $0.8 million. Industrial’s organic
sales were flat to the prior year period.
-
Operating profit of $19.4 million in the first quarter was up 33% from
$14.6 million from the prior year period. Operating profit benefited
from the profit contribution of Männer and was partially offset by
$4.9 million of Männer short-term purchase accounting adjustments and
$2.8 million of pre-tax restructuring charges related to the closure
of production operations at a facility in Saline, Michigan. Last
year’s first quarter included CEO transition costs of $6.6 million
that were allocated to the segment. Excluding the acquisition related
expenses and the Saline closure costs this year, and the CEO
transition costs last year, adjusted operating profit was $27.0
million, up 27%. Adjusted operating margin was 13.3%, up 50 bps from
last year’s adjusted operating margin.
Aerospace
-
First quarter 2014 sales were $108.2 million, up 10.4% from $98.0
million in the same period last year. Sales increases in the original
equipment manufacturing ("OEM") and aftermarket repair and overhaul
("MRO") businesses were partially offset by lower sales in the spare
parts business.
-
Operating profit of $15.8 million for the first quarter of 2014 was up
52% from the prior year period of $10.3 million. Operating profit
benefited from the profit contributions of increased sales in the OEM
and MRO businesses, partially offset by lower profits in the spare
parts business. Operating margin increased 400 bps from 10.6% in the
2013 period to 14.6% in the 2014 period. Operating profit during the
first quarter of 2013 included CEO transition costs of $3.9 million
that were allocated to the segment. Excluding this item, operating
profit was up 11% and operating margin was up 10 bps from last year’s
adjusted results.
-
Aerospace backlog was $551 million at the end of the first quarter, up
1% year-over-year, and down 1% from 2013 year-end.
Additional Information
-
Interest expense decreased $1.0 million to $3.3 million in 2014
primarily as a result of lower average borrowings for the quarter.
-
The Company's effective tax rate from continuing operations for the
first quarter of 2014 was 27.9% compared with 21.4% in the first
quarter of 2013 and 32.8% for the full year 2013. Included in the 2013
income tax is a charge of $16.4 million associated with the April 2013
U.S. Tax Court’s unfavorable decision arising out of an IRS audit for
the tax years 2000 through 2002. Excluding this charge, the full year
2013 adjusted effective tax rate was 17.5%. The effective tax rate
increase in 2014 over the adjusted full year 2013 rate is due to a
projected mix of earnings attributable to higher-taxing jurisdictions,
the expiration of certain tax holidays, and the increase in planned
repatriation of a portion of current foreign earnings to the U.S.
2014 Updated Outlook
Barnes Group now expects 2014 total revenue to grow 14% to 17%, 4% to 7%
on an organic basis, and forecasts adjusted operating margins in the
range of 14.5% to 15.5%. GAAP earnings from continuing operations are
expected to be in the range of $1.98 to $2.08 per diluted share.
Excluding Männer short-term purchase accounting adjustments and the
Saline closure costs, adjusted diluted earnings per share from
continuing operations are anticipated to be in the range of $2.20 to
$2.30, up 20% to 26% from 2013’s adjusted diluted earnings per share of
$1.83. Further, the Company continues to expect capital expenditures of
approximately $60 million and cash conversion to be approximately 100%
of net income.
Conference Call
Barnes Group Inc. will conduct a conference call with investors to
discuss first quarter 2014 results at 8:30 a.m. EDT today, April 25,
2014. A webcast of the live call and an archived replay will be
available on the Barnes Group investor relations link at www.BGInc.com.
The conference is also available by direct dial at (888) 713-4209 in the
U.S. or (617) 213-4863 outside of the U.S. (request the Barnes Group
Earnings Call), Participant Code: 89146396.
In addition, the call will be recorded and available for playback until
Friday, May 9, 2014 by dialing (617) 801-6888; Passcode: 36091403.
About Barnes Group
Founded in 1857, Barnes Group Inc. (NYSE: B) is an international
industrial and aerospace manufacturer and service provider, serving a
wide range of end markets and customers. The products and services
provided by Barnes Group are used in far-reaching applications that
provide transportation, communication, manufacturing and technology to
the world. Barnes Group’s approximately 4,300 dedicated employees, at
more than 60 locations worldwide, are committed to achieving consistent
and sustainable profitable growth. For more information, visit www.BGInc.com.
Forward-Looking Statements
This press release contains forward-looking statements as defined in the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements often address our expected future operating and financial
performance and financial condition, and often contain words such as
"anticipate," "believe," "expect," "plan," "strategy," "estimate,"
"project," and similar terms. These forward-looking statements do not
constitute guarantees of future performance and are subject to a variety
of risks and uncertainties that may cause actual results to differ
materially from those expressed in the forward-looking statements. These
include, among others: difficulty maintaining relationships with
employees, including unionized employees, customers, distributors,
suppliers, business partners or governmental entities; potential strikes
or work stoppages; difficulties leveraging market opportunities; changes
in market demand for our products and services; rapid technological and
market change; the ability to protect intellectual property rights;
introduction or development of new products or transfer of work; higher
risks in international operations and markets; the impact of intense
competition; and other risks and uncertainties described in documents
filed with or furnished to the Securities and Exchange Commission
("SEC") by the Company, including, among others, those in the
Management's Discussion and Analysis of Financial Condition and Results
of Operations and Risk Factors sections of the Company's filings. The
risks and uncertainties described in our periodic filings with the SEC
include, among others, uncertainties relating to conditions in financial
markets; currency fluctuations and foreign currency exposure; future
financial performance of the industries or customers that we serve; our
dependence upon revenues and earnings from a small number of significant
customers; a major loss of customers; inability to realize expected
sales or profits from existing backlog due to a range of factors,
including insourcing decisions, material changes, production schedules
and volumes of specific programs; the impact of government budget and
funding decisions; changes in raw material or product prices and
availability; integration of acquired businesses including the Männer
business; restructuring costs or savings including those related to the
planned closure of production operations at the Company’s facility in
Saline, Michigan; the continuing impact of strategic actions, including
acquisitions, divestitures, restructurings, or strategic business
realignments, and our ability to achieve the financial and operational
targets set in connection with any such actions; the outcome of pending
and future legal, governmental, or regulatory proceedings and
contingencies and uninsured claims; future repurchases of common stock;
future levels of indebtedness; and numerous other matters of a global,
regional or national scale, including those of a political, economic,
business, competitive, environmental, regulatory and public health
nature. The Company assumes no obligation to update our forward-looking
statements.
BARNES GROUP INC.
|
CONSOLIDATED STATEMENTS OF INCOME
|
(Dollars in thousands, except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three months ended March 31,
|
|
|
2014
|
|
2013
|
|
% Change
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
312,099
|
|
|
$
|
263,545
|
|
|
18.4
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
214,557
|
|
|
|
177,715
|
|
|
20.7
|
|
Selling and administrative expenses
|
|
|
62,418
|
|
|
|
60,875
|
|
|
2.5
|
|
|
|
|
|
|
|
|
|
|
|
276,975
|
|
|
|
238,590
|
|
|
16.1
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
35,124
|
|
|
|
24,955
|
|
|
40.7
|
|
|
|
|
|
|
|
|
Operating margin
|
|
|
11.3
|
%
|
|
|
9.5
|
%
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
3,319
|
|
|
|
4,357
|
|
|
(23.8
|
)
|
Other expense (income), net
|
|
|
234
|
|
|
|
966
|
|
|
(75.8
|
)
|
|
|
|
|
|
|
|
Income from continuing operations before income taxes
|
|
|
31,571
|
|
|
|
19,632
|
|
|
60.8
|
|
|
|
|
|
|
|
|
Income taxes
|
|
|
8,819
|
|
|
|
4,199
|
|
|
NM
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
|
22,752
|
|
|
|
15,433
|
|
|
47.4
|
|
|
|
|
|
|
|
|
Loss from discontinued operations, net of income taxes
|
|
|
-
|
|
|
|
(1,961
|
)
|
|
NM
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
22,752
|
|
|
$
|
13,472
|
|
|
68.9
|
|
|
|
|
|
|
|
|
Common dividends
|
|
$
|
5,971
|
|
|
$
|
5,443
|
|
|
9.7
|
|
|
|
|
|
|
|
|
Per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
Income from continuing operations
|
|
$
|
0.42
|
|
|
$
|
0.29
|
|
|
44.8
|
|
Loss from discontinued operations, net of income taxes
|
|
|
-
|
|
|
|
(0.04
|
)
|
|
NM
|
|
Net income
|
|
$
|
0.42
|
|
|
$
|
0.25
|
|
|
68.0
|
|
|
|
|
|
|
|
|
Diluted:
|
|
|
|
|
|
|
Income from continuing operations
|
|
$
|
0.41
|
|
|
$
|
0.28
|
|
|
46.4
|
|
Loss from discontinued operations, net of income taxes
|
|
|
-
|
|
|
|
(0.04
|
)
|
|
NM
|
|
Net income
|
|
$
|
0.41
|
|
|
$
|
0.24
|
|
|
70.8
|
|
|
|
|
|
|
|
|
Dividends
|
|
|
0.11
|
|
|
|
0.10
|
|
|
10.0
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
Basic
|
|
|
54,650,481
|
|
|
|
54,739,465
|
|
|
(0.2
|
)
|
Diluted
|
|
|
55,972,753
|
|
|
|
55,524,560
|
|
|
0.8
|
|
|
|
|
|
|
|
|
NM - Not Meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BARNES GROUP INC.
|
OPERATIONS BY REPORTABLE BUSINESS SEGMENT
|
(Dollars in thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31,
|
|
|
|
|
2014
|
|
2013
|
|
% Change
|
|
|
Net sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial
|
|
$
|
203,888
|
|
|
$
|
165,502
|
|
|
23.2
|
|
|
|
|
|
|
|
|
|
|
|
Aerospace
|
|
|
108,212
|
|
|
|
98,045
|
|
|
10.4
|
|
|
|
|
|
|
|
|
|
|
|
Intersegment sales
|
|
|
(1
|
)
|
|
|
(2
|
)
|
|
50.0
|
|
|
|
|
|
|
|
|
|
|
|
Total net sales
|
|
$
|
312,099
|
|
|
$
|
263,545
|
|
|
18.4
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial
|
|
$
|
19,374
|
|
|
$
|
14,609
|
|
|
32.6
|
|
|
|
|
|
|
|
|
|
|
|
Aerospace
|
|
|
15,750
|
|
|
|
10,346
|
|
|
52.2
|
|
|
|
|
|
|
|
|
|
|
|
Total operating profit
|
|
$
|
35,124
|
|
|
$
|
24,955
|
|
|
40.7
|
|
|
|
|
|
|
|
|
|
|
|
Operating margin
|
|
|
|
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
Industrial
|
|
|
9.5
|
%
|
|
|
8.8
|
%
|
|
70
|
bps.
|
|
|
|
|
|
|
|
|
|
Aerospace
|
|
|
14.6
|
%
|
|
|
10.6
|
%
|
|
400
|
bps.
|
|
|
|
|
|
|
|
|
|
Total operating margin
|
|
|
11.3
|
%
|
|
|
9.5
|
%
|
|
180
|
bps.
|
|
|
|
|
|
|
|
|
|
BARNES GROUP INC.
|
CONSOLIDATED BALANCE SHEETS
|
(Dollars in thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2014
|
|
|
December 31, 2013
|
Assets
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
61,411
|
|
|
$
|
70,856
|
Accounts receivable
|
|
|
|
291,703
|
|
|
|
258,664
|
Inventories
|
|
|
|
210,212
|
|
|
|
211,246
|
Deferred income taxes
|
|
|
|
14,874
|
|
|
|
18,226
|
Prepaid expenses and other current assets
|
|
|
|
19,958
|
|
|
|
18,204
|
|
|
|
|
|
|
|
Total current assets
|
|
|
|
598,158
|
|
|
|
577,196
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred income taxes
|
|
|
|
869
|
|
|
|
2,314
|
Property, plant and equipment, net
|
|
|
|
307,169
|
|
|
|
302,558
|
Goodwill
|
|
|
|
645,604
|
|
|
|
649,697
|
Other intangible assets, net
|
|
|
|
523,002
|
|
|
|
534,293
|
Other assets
|
|
|
|
59,865
|
|
|
|
57,615
|
|
|
|
|
|
|
|
Total assets
|
|
|
$
|
2,134,667
|
|
|
$
|
2,123,673
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
Notes and overdrafts payable
|
|
|
$
|
1,636
|
|
|
$
|
1,074
|
Accounts payable
|
|
|
|
98,421
|
|
|
|
88,721
|
Accrued liabilities
|
|
|
|
129,589
|
|
|
|
154,514
|
Long-term debt - current
|
|
|
|
56,615
|
|
|
|
56,009
|
|
|
|
|
|
|
|
Total current liabilities
|
|
|
|
286,261
|
|
|
|
300,318
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
|
503,076
|
|
|
|
490,341
|
Accrued retirement benefits
|
|
|
|
90,319
|
|
|
|
80,884
|
Deferred income taxes
|
|
|
|
91,250
|
|
|
|
94,506
|
Other liabilities
|
|
|
|
15,058
|
|
|
|
16,210
|
|
|
|
|
|
|
|
Total stockholders' equity
|
|
|
|
1,148,703
|
|
|
|
1,141,414
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
|
|
$
|
2,134,667
|
|
|
$
|
2,123,673
|
|
|
|
|
|
|
|
BARNES GROUP INC.
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Dollars in thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31,
|
|
|
|
2014
|
|
2013
|
Operating activities:
|
|
|
|
|
|
Net income
|
|
|
$
|
22,752
|
|
|
$
|
13,472
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
Depreciation and amortization
|
|
|
|
20,782
|
|
|
|
16,499
|
|
Amortization of convertible debt discount
|
|
|
|
731
|
|
|
|
582
|
|
Loss (gain) on disposition of property, plant and equipment
|
|
|
|
78
|
|
|
|
(54
|
)
|
Stock compensation expense
|
|
|
|
1,865
|
|
|
|
12,657
|
|
Withholding taxes paid on stock issuances
|
|
|
|
(463
|
)
|
|
|
(720
|
)
|
Changes in assets and liabilities:
|
|
|
|
|
|
Accounts receivable
|
|
|
|
(32,802
|
)
|
|
|
(16,347
|
)
|
Inventories
|
|
|
|
802
|
|
|
|
(968
|
)
|
Prepaid expenses and other current assets
|
|
|
|
(2,763
|
)
|
|
|
(235
|
)
|
Accounts payable
|
|
|
|
9,676
|
|
|
|
7,144
|
|
Accrued liabilities
|
|
|
|
(3,131
|
)
|
|
|
(16,679
|
)
|
Deferred income taxes
|
|
|
|
3,834
|
|
|
|
485
|
|
Long-term retirement benefits
|
|
|
|
(4,964
|
)
|
|
|
801
|
|
Other
|
|
|
|
580
|
|
|
|
1,020
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
|
16,977
|
|
|
|
17,657
|
|
|
|
|
|
|
|
Investing activities:
|
|
|
|
|
|
Proceeds from disposition of property, plant and equipment
|
|
|
|
382
|
|
|
|
44
|
|
Capital expenditures
|
|
|
|
(15,074
|
)
|
|
|
(10,050
|
)
|
Other
|
|
|
|
(467
|
)
|
|
|
(1,420
|
)
|
|
|
|
|
|
|
Net cash used by investing activities
|
|
|
|
(15,159
|
)
|
|
|
(11,426
|
)
|
|
|
|
|
|
|
Financing activities:
|
|
|
|
|
|
Net change in other borrowings
|
|
|
|
559
|
|
|
|
8,737
|
|
Payments on long-term debt
|
|
|
|
(26,151
|
)
|
|
|
(6,245
|
)
|
Proceeds from the issuance of long-term debt
|
|
|
|
39,283
|
|
|
|
21,000
|
|
Payment of assumed liability to Otto Männer Holding AG
|
|
|
|
(19,796
|
)
|
|
|
-
|
|
Proceeds from the issuance of common stock
|
|
|
|
7,262
|
|
|
|
2,677
|
|
Common stock repurchases
|
|
|
|
(8,389
|
)
|
|
|
(12,856
|
)
|
Dividends paid
|
|
|
|
(5,971
|
)
|
|
|
(5,443
|
)
|
Excess tax benefit on stock awards
|
|
|
|
2,246
|
|
|
|
506
|
|
Other
|
|
|
|
(76
|
)
|
|
|
(53
|
)
|
|
|
|
|
|
|
Net cash (used) provided by financing activities
|
|
|
|
(11,033
|
)
|
|
|
8,323
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash flows
|
|
|
|
(230
|
)
|
|
|
(1,038
|
)
|
|
|
|
|
|
|
(Decrease) increase in cash and cash equivalents
|
|
|
|
(9,445
|
)
|
|
|
13,516
|
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of period
|
|
|
|
70,856
|
|
|
|
86,356
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period
|
|
|
$
|
61,411
|
|
|
$
|
99,872
|
|
|
|
|
|
|
|
BARNES GROUP INC.
|
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO
FREE CASH FLOW
|
(Dollars in thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31,
|
|
|
|
2014
|
|
2013
|
Free cash flow:
|
|
|
|
|
|
|
|
|
|
|
|
Net cash (used) provided by operating activities
|
|
|
$
|
16,977
|
|
|
$
|
17,657
|
|
Capital expenditures
|
|
|
|
(15,074
|
)
|
|
|
(10,050
|
)
|
|
|
|
|
|
|
Free cash flow(1)
|
|
|
$
|
1,903
|
|
|
$
|
7,607
|
|
Notes:
(1) The Company defines free cash flow as net cash provided by operating
activities less capital expenditures. The Company believes that the free
cash flow metric is useful to investors and management as a measure of
cash generated by business operations that can be used to invest in
future growth, pay dividends, repurchase stock and reduce debt. This
metric can also be used to evaluate the Company's ability to generate
cash flow from business operations and the impact that this cash flow
has on the Company's liquidity.
BARNES GROUP INC.
|
|
|
NON-GAAP FINANCIAL MEASURE RECONCILIATION
|
|
|
(Dollars in thousands, except per share data)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31,
|
|
|
|
|
2014
|
|
2013
|
|
% Change
|
|
|
SEGMENT RESULTS
|
|
|
|
|
|
|
|
|
Operating Profit - Industrial Segment (GAAP)
|
|
$
|
19,374
|
|
|
$
|
14,609
|
|
|
|
32.6
|
|
|
|
|
|
|
|
|
|
|
|
Männer short-term purchase accounting adjustments
|
|
|
4,901
|
|
|
|
-
|
|
|
|
|
|
Restructuring charges
|
|
|
2,750
|
|
|
|
-
|
|
|
|
|
|
CEO transition costs
|
|
|
-
|
|
|
|
6,589
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit - Industrial Segment as adjusted (Non-GAAP) (1)
|
|
$
|
27,025
|
|
|
$
|
21,198
|
|
|
|
27.5
|
|
|
|
|
|
|
|
|
|
|
|
Operating Margin - Industrial Segment (GAAP)
|
|
|
9.5
|
%
|
|
|
8.8
|
%
|
|
|
70
|
|
bps.
|
Operating Margin - Industrial Segment as adjusted (Non-GAAP) (1)
|
|
|
13.3
|
%
|
|
|
12.8
|
%
|
|
|
50
|
|
bps.
|
|
|
|
|
|
|
|
|
|
Operating Profit - Aerospace Segment (GAAP)
|
|
$
|
15,750
|
|
|
$
|
10,346
|
|
|
|
52.2
|
|
|
|
|
|
|
|
|
|
|
|
CEO transition costs
|
|
|
-
|
|
|
|
3,903
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit - Aerospace Segment as adjusted (Non-GAAP) (1)
|
|
$
|
15,750
|
|
|
$
|
14,249
|
|
|
|
10.5
|
|
|
|
|
|
|
|
|
|
|
|
Operating Margin - Aerospace Segment (GAAP)
|
|
|
14.6
|
%
|
|
|
10.6
|
%
|
|
|
400
|
|
bps.
|
Operating Margin - Aerospace Segment as adjusted (Non-GAAP) (1)
|
|
|
14.6
|
%
|
|
|
14.5
|
%
|
|
|
10
|
|
bps.
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED RESULTS
|
|
|
|
|
|
|
|
|
Operating Income (GAAP)
|
|
$
|
35,124
|
|
|
$
|
24,955
|
|
|
|
40.7
|
|
|
|
|
|
|
|
|
|
|
|
Männer short-term purchase accounting adjustments
|
|
|
4,901
|
|
|
|
-
|
|
|
|
|
|
Restructuring charges
|
|
|
2,750
|
|
|
|
-
|
|
|
|
|
|
CEO transition costs
|
|
|
-
|
|
|
|
10,492
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income as adjusted (Non-GAAP) (1)
|
|
$
|
42,775
|
|
|
$
|
35,447
|
|
|
|
20.7
|
|
|
|
|
|
|
|
|
|
|
|
Operating Margin (GAAP)
|
|
|
11.3
|
%
|
|
|
9.5
|
%
|
|
|
180
|
|
bps.
|
Operating Margin as adjusted (Non-GAAP) (1)
|
|
|
13.7
|
%
|
|
|
13.5
|
%
|
|
|
20
|
|
bps.
|
|
|
|
|
|
|
|
|
|
Diluted Income from Continuing Operations per Share (GAAP)
|
|
$
|
0.41
|
|
|
$
|
0.28
|
|
|
|
46.4
|
|
|
|
|
|
|
|
|
|
|
|
Männer short-term purchase accounting adjustments
|
|
|
0.06
|
|
|
|
-
|
|
|
|
|
|
Restructuring charges
|
|
|
0.03
|
|
|
|
-
|
|
|
|
|
|
CEO transition costs
|
|
|
-
|
|
|
|
0.12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Income from Continuing Operations per Share as adjusted
(Non-GAAP) (1)
|
|
$
|
0.50
|
|
|
$
|
0.40
|
|
|
|
25.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full Year 2013
|
|
Full-Year 2014 Outlook
|
|
|
Diluted Income from Continuing Operations per Share (GAAP)
|
|
$
|
1.31
|
|
|
$
|
1.98
|
|
to
|
$
|
2.08
|
|
|
|
|
|
|
|
|
|
|
|
Männer short-term purchase accounting adjustments
|
|
|
0.07
|
|
|
|
0.13
|
|
|
|
Männer acquisition transaction costs
|
|
|
0.03
|
|
|
|
|
|
|
|
Restructuring charges
|
|
|
-
|
|
|
|
0.09
|
|
|
|
CEO transition costs
|
|
|
0.12
|
|
|
|
|
|
|
|
April 2013 tax court decision
|
|
|
0.30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Income from Continuing Operations per Share as adjusted
(Non-GAAP) (1)
|
|
$
|
1.83
|
|
|
$
|
2.20
|
|
to
|
$
|
2.30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
(1) The Company has excluded the following from its "as adjusted"
financial measurements: 1) short-term purchase accounting adjustments
related to its Männer acquisition in 2014, 2) restructuring charges
related to the closure of production operations at the Company's
Associated Spring facility located in Saline, Michigan in 2014, 3)
short-term purchase accounting adjustments and transaction costs related
to its Männer acquisition in 2013, 4) CEO transition costs associated
with the modification of outstanding equity awards in 2013 and 5) the
tax charge associated with the April 2013 tax court decision in 2013.
Management believes that these adjustments provide the Company and its
investors with an indication of our baseline performance excluding items
that are not considered to be reflective of our ongoing results.
Management does not intend results excluding the adjustments to
represent results as defined by GAAP, and the reader should not consider
it as an alternative measurement calculated in accordance with GAAP, or
as an indicator of the Company's performance. Accordingly, the
measurements have limitations depending on their use.
Copyright Business Wire 2014