Delaware
|
13-0612970
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
10 Waterview Boulevard
|
||
Parsippany, New Jersey
|
07054
|
|
(Address of principal executive offices)
|
(Zip Code)
|
Large accelerated filer
x
|
Accelerated filer
o
|
|
Non-accelerated filer
o
|
(Do not check if a smaller reporting company)
|
Smaller reporting company
o
|
PART I – FINANCIAL INFORMATION
|
PAGE | ||
Item 1.
|
Financial Statements (Unaudited):
|
||
3
|
|||
4
|
|||
5
|
|||
6
|
|||
7
|
|||
8 - 21
|
|||
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
22 -31
|
|
Item 3.
|
33
|
||
Item 4.
|
33
|
||
PART II – OTHER INFORMATION
|
|||
Item 1.
|
34
|
||
Item 1A.
|
Risk Factors
|
34
|
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
34
|
|
Item 4.
|
Mine Safety Disclosures
|
34
|
|
Item 5.
|
Other Information
|
34
|
|
Item 6.
|
Exhibits
|
35
|
|
36
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
2013
|
2012
|
|||||||
Net sales
|
$ | 592,687 | $ | 501,661 | ||||
Cost of sales
|
408,980 | 342,387 | ||||||
Gross profit
|
183,707 | 159,274 | ||||||
Research and development expenses
|
17,608 | 15,347 | ||||||
Selling expenses
|
36,796 | 32,481 | ||||||
General and administrative expenses
|
91,277 | 75,887 | ||||||
Operating income
|
38,026 | 35,559 | ||||||
Interest expense
|
(8,659 | ) | (6,482 | ) | ||||
Other income, net
|
474 | 102 | ||||||
Earnings from continuing operations before income taxes
|
29,841 | 29,179 | ||||||
Provision for income taxes
|
8,898 | 9,337 | ||||||
Earnings from continuing operations
|
20,943 | 19,842 | ||||||
Discontinued operations, net of taxes
|
||||||||
Earnings from discontinued operations
|
- | 3,059 | ||||||
Gain on divestiture
|
- | 18,411 | ||||||
Earnings from discontinued operations
|
- | 21,470 | ||||||
Net earnings
|
$ | 20,943 | $ | 41,312 | ||||
Basic earnings per share
|
||||||||
Earnings from continuing operations
|
$ | 0.45 | $ | 0.42 | ||||
Earnings from discontinued operations
|
- | 0.46 | ||||||
Total
|
$ | 0.45 | $ | 0.88 | ||||
Diluted earnings per share
|
||||||||
Earnings from continuing operations
|
$ | 0.44 | $ | 0.42 | ||||
Earnings from discontinued operations
|
- | 0.45 | ||||||
Total
|
$ | 0.44 | $ | 0.87 | ||||
Dividends per share
|
$ | 0.09 | $ | 0.08 | ||||
Weighted-average shares outstanding:
|
||||||||
Basic
|
46,615 | 46,687 | ||||||
Diluted
|
47,483 | 47,571 | ||||||
See notes to condensed consolidated financial statements
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
2013
|
2012
|
|||||||
Net earnings
|
$ | 20,943 | $ | 41,312 | ||||
Other comprehensive income
|
||||||||
Foreign currency translation, net of tax
|
$ | (31,805 | ) | $ | 19,769 | |||
Pension and postretirement adjustments, net of tax
|
2,786 | 1,454 | ||||||
Other comprehensive income (loss), net of tax
|
(29,019 | ) | 21,223 | |||||
Comprehensive income (loss)
|
$ | (8,076 | ) | $ | 62,535 | |||
March 31,
|
December 31,
|
|||||||
2013
|
2012
|
|||||||
Assets
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$ | 118,797 | $ | 112,023 | ||||
Receivables, net
|
593,232 | 578,313 | ||||||
Inventories, net
|
427,424 | 397,471 | ||||||
Deferred tax assets, net
|
49,909 | 50,760 | ||||||
Other current assets
|
43,494 | 37,194 | ||||||
Total current assets
|
1,232,856 | 1,175,761 | ||||||
Property, plant, and equipment, net
|
495,631 | 489,593 | ||||||
Goodwill
|
1,038,483 | 1,013,300 | ||||||
Other intangible assets, net
|
442,780 | 419,021 | ||||||
Deferred tax assets, net
|
2,278 | 1,709 | ||||||
Other assets
|
14,646 | 15,204 | ||||||
Total assets
|
$ | 3,226,674 | $ | 3,114,588 | ||||
Liabilities
|
||||||||
Current liabilities:
|
||||||||
Current portion of long-term and short-term debt
|
$ | 126,396 | $ | 128,225 | ||||
Accounts payable
|
146,266 | 157,825 | ||||||
Dividends payable
|
4,212 | - | ||||||
Accrued expenses
|
119,231 | 131,067 | ||||||
Income taxes payable
|
9,586 | 7,793 | ||||||
Deferred revenue
|
171,701 | 171,624 | ||||||
Other current liabilities
|
42,532 | 43,214 | ||||||
Total current liabilities
|
619,924 | 639,748 | ||||||
Long-term debt
|
861,524 | 751,990 | ||||||
Deferred tax liabilities, net
|
64,216 | 50,450 | ||||||
Accrued pension and other postretirement benefit costs
|
270,609 | 264,047 | ||||||
Long-term portion of environmental reserves
|
15,162 | 14,905 | ||||||
Other liabilities
|
84,761 | 80,856 | ||||||
Total liabilities
|
1,916,196 | 1,801,996 | ||||||
Contingencies and commitments (Note 15)
|
||||||||
Stockholders' Equity
|
||||||||
Common stock, $1 par value
|
49,341 | 49,190 | ||||||
Additional paid in capital
|
157,420 | 151,883 | ||||||
Retained earnings
|
1,278,108 | 1,261,377 | ||||||
Accumulated other comprehensive loss
|
(84,527 | ) | (55,508 | ) | ||||
1,400,342 | 1,406,942 | |||||||
Less: Cost of treasury stock
|
(89,864 | ) | (94,350 | ) | ||||
Total stockholders' equity
|
1,310,478 | 1,312,592 | ||||||
Total liabilities and stockholders' equity
|
$ | 3,226,674 | $ | 3,114,588 | ||||
See notes to condensed consolidated financial statements
|
Three Months Ended
|
||||||||||
March 31, | ||||||||||
2013
|
2012
|
|||||||||
Cash flows from operating activities:
|
||||||||||
Net earnings
|
$ | 20,943 | $ | 41,312 | ||||||
Adjustments to reconcile net earnings to net cash used for operating activities:
|
||||||||||
Depreciation and amortization
|
30,400 | 23,534 | ||||||||
Gain on divestiture
|
- | (29,583 | ) | |||||||
Net gain on sales and disposals of long-lived assets
|
(87 | ) | (669 | ) | ||||||
Deferred income taxes
|
512 | (1,373 | ) | |||||||
Share-based compensation
|
2,670 | 2,681 | ||||||||
Change in operating assets and liabilities, net of businesses acquired:
|
||||||||||
Accounts receivable, net
|
(3,959 | ) | (27,999 | ) | ||||||
Inventories, net
|
(10,872 | ) | (19,931 | ) | ||||||
Progress payments
|
(9,240 | ) | (398 | ) | ||||||
Accounts payable and accrued expenses
|
(36,541 | ) | (29,574 | ) | ||||||
Deferred revenue
|
77 | 17,536 | ||||||||
Income taxes payable
|
(1,678 | ) | 19,052 | |||||||
Net pension and postretirement liabilities
|
4,934 | 2,722 | ||||||||
Other current and long-term assets and liabilities
|
1,761 | (2,029 | ) | |||||||
Net cash used for operating activities
|
(1,080 | ) | (4,719 | ) | ||||||
Cash flows from investing activities:
|
||||||||||
Proceeds sales and disposals of long lived assets
|
559 | - | ||||||||
Proceeds from divestiture
|
- | 51,225 | ||||||||
Acquisitions of intangible assets
|
- | (1,929 | ) | |||||||
Additions to property, plant, and equipment
|
(15,010 | ) | (20,167 | ) | ||||||
Acquisition of businesses, net of cash acquired
|
(98,492 | ) | - | |||||||
Additional considerations on prior period acquisitions
|
(1,771 | ) | - | |||||||
Net cash (used for) provided by investing activities
|
(114,714 | ) | 29,129 | |||||||
Cash flows from financing activities:
|
||||||||||
Borrowings on debt
|
817,075 | - | ||||||||
Principal payments on debt
|
(699,120 | ) | (25 | ) | ||||||
Proceeds from share-based compensation
|
7,333 | 8,340 | ||||||||
Excess tax benefits from share-based compensation plans
|
- | 20 | ||||||||
Net cash provided by financing activities
|
125,288 | 8,335 | ||||||||
Effect of exchange-rate changes on cash
|
(2,720 | ) | 3,932 | |||||||
Net increase in cash and cash equivalents
|
6,774 | 36,677 | ||||||||
Cash and cash equivalents at beginning of period
|
112,023 | 194,387 | ||||||||
Cash and cash equivalents at end of period
|
$ | 118,797 | $ | 231,064 | ||||||
Supplemental disclosure of non-cash activities:
|
||||||||||
Capital expenditures incurred but not yet paid
|
$ | 2,191 | $ | 4,223 | ||||||
See notes to condensed consolidated financial statements
|
Common Stock
|
Additional Paid in Capital
|
Retained Earnings
|
Accumulated Other Comprehensive Loss
|
Treasury Stock
|
||||||||||||||||
December 31, 2011
|
$ | 48,879 | $ | 143,192 | $ | 1,163,925 | $ | (65,131 | ) | $ | (85,890 | ) | ||||||||
Net earnings
|
- | - | 113,844 | - | - | |||||||||||||||
Other comprehensive income, net of tax
|
- | - | - | 9,623 | - | |||||||||||||||
Dividends paid
|
- | - | (16,392 | ) | - | - | ||||||||||||||
Stock options exercised, net of tax
|
311 | 6,431 | - | - | 10,077 | |||||||||||||||
Restricted stock
|
- | (6,233 | ) | - | - | 6,233 | ||||||||||||||
Other
|
- | (414 | ) | - | - | 414 | ||||||||||||||
Share-based compensation
|
- | 8,907 | - | - | 521 | |||||||||||||||
Repurchase of common stock
|
- | - | - | - | (25,705 | ) | ||||||||||||||
December 31, 2012
|
$ | 49,190 | $ | 151,883 | $ | 1,261,377 | $ | (55,508 | ) | $ | (94,350 | ) | ||||||||
Net earnings
|
- | - | 20,943 | - | - | |||||||||||||||
Other comprehensive loss, net of tax
|
- | - | - | (29,019 | ) | - | ||||||||||||||
Dividends declared
|
- | - | (4,212 | ) | - | - | ||||||||||||||
Stock options exercised, net of tax
|
151 | 3,587 | - | - | 3,766 | |||||||||||||||
Other
|
- | (330 | ) | - | - | 330 | ||||||||||||||
Share-based compensation
|
- | 2,280 | - | - | 390 | |||||||||||||||
March 31, 2013
|
$ | 49,341 | $ | 157,420 | $ | 1,278,108 | $ | (84,527 | ) | $ | (89,864 | ) | ||||||||
See notes to condensed consolidated financial statements
|
(In thousands)
|
Phönix
|
|||
Accounts receivable
|
$ | 12,226 | ||
Inventory
|
20,358 | |||
Property, plant, and equipment
|
14,068 | |||
Other current and non-current assets
|
1,029 | |||
Intangible assets
|
42,791 | |||
Current and non-current liabilities
|
(7,029 | ) | ||
Pension and postretirement benefits
|
(6,472 | ) | ||
Deferred income taxes
|
(14,192 | ) | ||
Net tangible and intangible assets
|
62,779 | |||
Purchase price
|
98,492 | |||
Goodwill
|
$ | 35,713 | ||
Goodwill tax deductible
|
No
|
(In thousands, except per share data)
|
2012
|
|||
Net sales
|
$
|
585,275
|
||
Net earnings from continuing operations
|
21,901
|
|||
Diluted earnings per share from continuing operations
|
0.46
|
·
|
Additional amortization expense of approximately $3.2 million related to the fair value of identifiable intangible assets acquired.
|
·
|
Elimination of historical interest expense of approximately $1.0 million.
|
·
|
Additional interest expense of $4.5 million associated with the incremental borrowings that would have been incurred to acquire these companies as of January 1, 2012.
|
(In thousands)
|
||||
March 31,
|
||||
2012
|
||||
Net sales
|
$ | 10,785 | ||
Earnings from discontinued operations before income taxes
|
4,929 | |||
Provision for income taxes
|
(1,870 | ) | ||
Gain on divestiture, net of taxes of $11,172
|
18,411 | |||
Earnings from discontinued operations
|
$ | 21,470 |
(In thousands)
|
||||||||
March 31,
|
December 31,
|
|||||||
2013
|
2012
|
|||||||
Billed receivables:
|
||||||||
Trade and other receivables
|
$ | 411,305 | $ | 402,891 | ||||
Less: Allowance for doubtful accounts
|
(6,905 | ) | (7,013 | ) | ||||
Net billed receivables
|
404,400 | 395,878 | ||||||
Unbilled receivables:
|
||||||||
Recoverable costs and estimated earnings not billed
|
208,575 | 207,679 | ||||||
Less: Progress payments applied
|
(19,743 | ) | (25,244 | ) | ||||
Net unbilled receivables
|
188,832 | 182,435 | ||||||
Receivables, net
|
$ | 593,232 | $ | 578,313 | ||||
(In thousands)
|
||||||||
March 31,
|
December 31,
|
|||||||
2013
|
2012
|
|||||||
Raw materials
|
$ | 224,407 | $ | 224,613 | ||||
Work-in-process
|
116,888 | 92,761 | ||||||
Finished goods and component parts
|
111,249 | 107,173 | ||||||
Inventoried costs related to long-term contracts
|
41,125 | 38,000 | ||||||
Gross inventories
|
493,669 | 462,547 | ||||||
Less: Inventory reserves
|
(55,241 | ) | (50,333 | ) | ||||
Progress payments applied
|
(11,004 | ) | (14,743 | ) | ||||
Inventories, net
|
$ | 427,424 | $ | 397,471 | ||||
(In thousands)
|
||||||||||||||||
Flow Control
|
Controls
|
Surface Technologies
|
Consolidated
|
|||||||||||||
December 31, 2012
|
$ | 418,184 | $ | 541,226 | $ | 53,890 | $ | 1,013,300 | ||||||||
Acquisitions
|
35,713 | - | - | 35,713 | ||||||||||||
Goodwill adjustments
|
2,260 | 586 | 525 | 3,371 | ||||||||||||
Foreign currency translation adjustment
|
(2,605 | ) | (11,156 | ) | (140 | ) | (13,901 | ) | ||||||||
March 31, 2013
|
$ | 453,552 | $ | 530,656 | $ | 54,275 | $ | 1,038,483 |
(In thousands)
|
||||||||||||
March 31, 2013
|
Gross
|
Accumulated Amortization
|
Net
|
|||||||||
Technology
|
$ | 196,619 | $ | (78,049 | ) | $ | 118,570 | |||||
Customer related intangibles
|
360,677 | (102,314 | ) | 258,363 | ||||||||
Other intangible assets
|
86,726 | (20,879 | ) | 65,847 | ||||||||
Total
|
$ | 644,022 | $ | (201,242 | ) | $ | 442,780 | |||||
(In thousands)
|
||||||||||||
December 31, 2012
|
Gross
|
Accumulated Amortization
|
Net
|
|||||||||
Technology
|
$ | 186,869 | $ | (76,067 | ) | $ | 110,802 | |||||
Customer related intangibles
|
337,558 | (95,880 | ) | 241,678 | ||||||||
Other intangible assets
|
86,157 | (19,616 | ) | 66,541 | ||||||||
Total
|
$ | 610,584 | $ | (191,563 | ) | $ | 419,021 |
(In thousands)
|
||||||||
March 31,
|
December 31,
|
|||||||
2013
|
2012
|
|||||||
Assets
|
||||||||
Designated for hedge accounting
|
$ | 323 | $ | 677 | ||||
Interest rate swaps
|
||||||||
Undesignated for hedge accounting
|
||||||||
Forward exchange contracts
|
$ | 142 | $ | 250 | ||||
Total asset derivatives (A)
|
$ | 465 | $ | 927 | ||||
Liabilities
|
||||||||
Designated for hedge accounting
|
||||||||
Interest rate swaps
|
$ | 11,273 | $ | 1,419 | ||||
Undesignated for hedge accounting
|
||||||||
Forward exchange contracts
|
$ | 280 | $ | 170 | ||||
Total liability derivatives (B)
|
$ | 11,553 | $ | 1,589 |
(A)
|
Forward exchange derivatives are included in Other current assets and interest rate swap assets are included in Other assets.
|
(B)
|
Forward exchange derivatives are included in Other current liabilities and interest rate swap liabilities are included in Other liabilities.
|
Gain/(Loss) on Swap
|
Gain/(Loss) on Borrowings
|
|||||||||||||||
Three Months Ended
|
Three Months Ended
|
|||||||||||||||
March 31,
|
March 31,
|
|||||||||||||||
Income Statement Classification
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
Other income, net
|
$ | (10,950 | ) | $ | (12,713 | ) | $ | 10,950 | $ | 12,713 |
(In thousands)
|
|||||||
Three Months Ended
|
|||||||
March 31,
|
|||||||
Derivatives not designated as hedging instrument
|
2013
|
2012
|
|||||
Forward exchange contracts:
|
|||||||
General and administrative expenses
|
$(1,561) | $976 |
March 31,
|
December 31,
|
|||||||||||||||
2013
|
2012
|
|||||||||||||||
Carrying Value
|
Estimated Fair Value
|
Carrying Value
|
Estimated Fair Value
|
|||||||||||||
Industrial revenue bonds, due 2023
|
$ | 8,400 | $ | 8,400 | $ | 8,400 | $ | 8,400 | ||||||||
Revolving credit agreement, due 2017
|
14,000 | 14,000 | 286,800 | 286,800 | ||||||||||||
5.74% Senior notes due 2013
|
125,007 | 127,166 | 125,011 | 128,198 | ||||||||||||
5.51% Senior notes due 2017
|
150,000 | 167,607 | 150,000 | 168,491 | ||||||||||||
3.84% Senior notes due 2021
|
100,323 | 100,323 | 100,677 | 100,677 | ||||||||||||
3.70% Senior notes due 2023
|
225,000 | 227,803 | - | - | ||||||||||||
3.85% Senior notes due 2025
|
97,764 | 97,764 | - | - | ||||||||||||
4.24% Senior notes due 2026
|
193,462 | 193,462 | 198,581 | 198,581 | ||||||||||||
4.05% Senior notes due 2028
|
72,501 | 72,501 | - | - | ||||||||||||
Other debt
|
1,463 | 1,463 | 10,746 | 10,746 | ||||||||||||
Total debt
|
$ | 987,920 | $ | 1,010,489 | $ | 880,215 | $ | 901,893 |
(In thousands)
|
||||||||
2013
|
2012
|
|||||||
Warranty reserves at January 1,
|
$ | 18,169 | $ | 16,076 | ||||
Provision for current year sales
|
2,836 | 1,663 | ||||||
Current year claims
|
(1,330 | ) | (1,269 | ) | ||||
Change in estimates to pre-existing warranties
|
(2,362 | ) | (695 | ) | ||||
Foreign currency translation adjustment
|
(206 | ) | 148 | |||||
Warranty reserves at March 31,
|
$ | 17,107 | $ | 15,923 |
(In thousands)
|
||||||||
Three Months Ended
|
||||||||
March 31,
|
||||||||
2013
|
2012
|
|||||||
Service cost
|
$ | 10,819 | $ | 10,155 | ||||
Interest cost
|
6,735 | 6,455 | ||||||
Expected return on plan assets
|
(8,886 | ) | (8,414 | ) | ||||
Amortization of prior service cost
|
300 | 301 | ||||||
Amortization of unrecognized actuarial loss
|
4,272 | 2,496 | ||||||
Net periodic benefit cost
|
$ | 13,240 | $ | 10,993 |
(In thousands)
|
||||||||
Three Months Ended
|
||||||||
March 31,
|
||||||||
2013
|
2012
|
|||||||
Service cost
|
$ | 100 | $ | 110 | ||||
Interest cost
|
208 | 232 | ||||||
Amortization of prior service cost
|
(157 | ) | (157 | ) | ||||
Amortization of unrecognized actuarial gain
|
(160 | ) | (180 | ) | ||||
Net postretirement benefit cost (income)
|
$ | (9 | ) | $ | 5 |
(In thousands)
|
||||||||
Three Months Ended
|
||||||||
March 31,
|
||||||||
2013
|
2012
|
|||||||
Basic weighted-average shares outstanding
|
46,615 | 46,687 | ||||||
Dilutive effect of stock options and deferred stock compensation
|
868 | 884 | ||||||
Diluted weighted-average shares outstanding
|
47,483 | 47,571 |
(In thousands)
|
||||||||
Three Months Ended
|
||||||||
March 31,
|
||||||||
2013
|
2012
|
|||||||
Net sales
|
||||||||
Flow Control
|
$ | 310,615 | $ | 266,791 | ||||
Controls
|
204,967 | 168,145 | ||||||
Surface Technologies
|
77,907 | 70,089 | ||||||
Less: Intersegment revenues
|
(802 | ) | (3,364 | ) | ||||
Total consolidated
|
$ | 592,687 | $ | 501,661 | ||||
Operating income (expense)
|
||||||||
Flow Control
|
$ | 24,134 | $ | 18,527 | ||||
Controls
|
12,097 | 12,929 | ||||||
Surface Technologies
|
12,093 | 9,856 | ||||||
Corporate and eliminations
(1)
|
(10,298 | ) | (5,753 | ) | ||||
Total consolidated
|
$ | 38,026 | $ | 35,559 |
(In thousands)
|
||||||||
Three Months Ended
|
||||||||
March 31,
|
||||||||
2013
|
2012
|
|||||||
Total operating income
|
$ | 38,026 | $ | 35,559 | ||||
Interest expense
|
(8,659 | ) | (6,482 | ) | ||||
Other income, net
|
474 | 102 | ||||||
Earnings from continuing operations before income taxes
|
$ | 29,841 | $ | 29,179 | ||||
(In thousands)
|
||||||||
March 31,
|
December 31,
|
|||||||
2013
|
2012
|
|||||||
Identifiable assets
|
||||||||
Flow Control
|
$ | 1,540,085 | $ | 1,417,047 | ||||
Controls
|
1,343,966 | 1,365,112 | ||||||
Surface Technologies
|
304,566 | 302,079 | ||||||
Corporate and Other
|
38,057 | 30,350 | ||||||
Total consolidated
|
$ | 3,226,674 | $ | 3,114,588 |
(In thousands)
|
||||||||||||
Foreign currency translation adjustments, net
|
Total pension and postretirement adjustments, net
|
Accumulated other comprehensive loss
|
||||||||||
December 31, 2011
|
$ | 39,768 | $ | (104,899 | ) | $ | (65,131 | ) | ||||
Current period other comprehensive income
|
25,954 | (16,331 | ) | 9,623 | ||||||||
December 31, 2012
|
$ | 65,722 | $ | (121,230 | ) | $ | (55,508 | ) | ||||
Other comprehensive income (loss) before reclassifications
(1)
|
(31,805 | ) | 64 | (31,741 | ) | |||||||
Amounts reclassified from accumulated other comprehensive loss
(1)
|
- | 2,722 | 2,722 | |||||||||
Net current period other comprehensive income (loss)
|
(31,805 | ) | 2,786 | (29,019 | ) | |||||||
March 31, 2013
|
$ | 33,917 | $ | (118,444 | ) | $ | (84,527 | ) |
(1)
|
All amounts are after tax.
|
(In thousands)
|
||||||||
Amount reclassified from Accumulated other comprehensive income (loss)
|
Affected line item in the statement where net earnings is presented
|
|||||||
Defined benefit pension plan
|
||||||||
Amortization of prior service costs
|
(143 | ) | (1) | |||||
Amortization of actuarial losses
|
(4,112 | ) | (1) | |||||
(4,255 | ) |
Total before tax
|
||||||
1,533 |
Income tax benefit
|
|||||||
Total reclassifications
|
$ | (2,722 | ) |
Net of tax
|
(1)
|
These items are included in the computation of net periodic pension cost. See Note 11, Pension and Other Postretirement Benefit Plans.
|
Consolidated Statements of Earnings
|
||||||||||||
(In thousands)
|
||||||||||||
Three Months Ended
|
||||||||||||
March 31,
|
||||||||||||
2013
|
2012
|
% change
|
||||||||||
Sales
|
||||||||||||
Flow Control
|
$ | 310,615 | $ | 266,791 | 16 | % | ||||||
Controls
|
204,572 | 165,086 | 24 | % | ||||||||
Surface Technologies
|
77,500 | 69,784 | 11 | % | ||||||||
Total sales
|
$ | 592,687 | $ | 501,661 | 18 | % | ||||||
Operating income
|
||||||||||||
Flow Control
|
$ | 24,134 | $ | 18,527 | 30 | % | ||||||
Controls
|
12,097 | 12,929 | (6 | %) | ||||||||
Surface Technologies
|
12,093 | 9,856 | 23 | % | ||||||||
Corporate and eliminations
|
(10,298 | ) | (5,753 | ) | 79 | % | ||||||
Total operating income
|
$ | 38,026 | $ | 35,559 | 7 | % | ||||||
Interest expense
|
(8,659 | ) | (6,482 | ) | 34 | % | ||||||
Other income, net
|
474 | 102 |
NM
|
|||||||||
Earnings before taxes
|
29,841 | 29,179 | 2 | % | ||||||||
Provision for income taxes
|
(8,898 | ) | (9,337 | ) | (5 | %) | ||||||
Net earnings from continuing operations
|
$ | 20,943 | $ | 19,842 | ||||||||
New orders
|
$ | 617,108 | $ | 515,100 | ||||||||
NM- not meaningful
|
(In thousands)
|
||||||||||||
Three Months Ended
|
||||||||||||
March 31,
|
||||||||||||
2013
|
2012
|
% change
|
||||||||||
Defense markets:
|
||||||||||||
Aerospace
|
$ | 62,310 | $ | 69,156 | (10 | %) | ||||||
Ground
|
25,002 | 24,039 | 4 | % | ||||||||
Naval
|
83,505 | 89,602 | (7 | %) | ||||||||
Other
|
4,911 | 7,890 | (38 | %) | ||||||||
Total Defense
|
$ | 175,728 | $ | 190,687 | (8 | %) | ||||||
Commercial markets:
|
||||||||||||
Aerospace
|
$ | 94,724 | $ | 85,114 | 11 | % | ||||||
Oil and Gas
|
101,214 | 60,307 | 68 | % | ||||||||
Power Generation
|
116,820 | 98,775 | 18 | % | ||||||||
General Industrial
|
104,201 | 66,778 | 56 | % | ||||||||
Total Commercial
|
$ | 416,959 | $ | 310,974 | 34 | % | ||||||
Total Curtiss-Wright
|
$ | 592,687 | $ | 501,661 | 18 | % |
2013 vs. 2012
|
||||||||
Sales
|
Operating Income
|
|||||||
Organic
|
- | % | 7 | % | ||||
Acquisitions
|
18 | % | - | % | ||||
Foreign currency
|
- | % | - | % | ||||
Total
|
18 | % | 7 | % |
(In thousands)
|
||||||||||||
Three Months Ended
|
||||||||||||
March 31,
|
||||||||||||
2013
|
2012
|
% change
|
||||||||||
Sales
|
$ | 310,615 | $ | 266,791 | 16 | % | ||||||
Operating income
|
24,134 | 18,527 | 30 | % | ||||||||
Operating margin
|
7.8 | % | 6.9 | % |
90 bps
|
|||||||
Organic operating margin
|
8.9 | % | 6.9 | % |
200 bps
|
|||||||
New orders
|
$ | 324,302 | $ | 289,916 | 12 | % |
2013 vs. 2012
|
||||||||
Sales
|
Operating Income
|
|||||||
Organic
|
- | % | 29 | % | ||||
Acquisitions
|
16 | % | 4 | % | ||||
Foreign currency
|
- | % | (3 | %) | ||||
Total
|
16 | % | 30 | % |
(In thousands)
|
||||||||||||
Three Months Ended
|
||||||||||||
March 31,
|
||||||||||||
2013
|
2012
|
% change
|
||||||||||
Sales
|
$ | 204,572 | $ | 165,086 | 24 | % | ||||||
Operating income
|
12,097 | 12,929 | (6 | %) | ||||||||
Operating margin
|
5.9 | % | 7.8 | % |
-190 bps
|
|||||||
Organic operating margin
|
7.9 | % | 7.8 | % |
10 bps
|
|||||||
New orders
|
$ | 214,815 | $ | 154,351 | 39 | % |
2013 vs. 2012
|
||||||||
Sales
|
Operating Income
|
|||||||
Organic
|
- | % | 1 | % | ||||
Acquisitions
|
24 | % | (11 | %) | ||||
Foreign currency
|
- | % | 4 | % | ||||
Total
|
24 | % | (6 | %) |
(In thousands)
|
||||||||||||
Three Months Ended
|
||||||||||||
March 31,
|
||||||||||||
2013
|
2012
|
% change
|
||||||||||
Sales
|
$ | 77,500 | $ | 69,784 | 11 | % | ||||||
Operating income
|
12,093 | 9,856 | 23 | % | ||||||||
Operating margin
|
15.6 | % | 14.1 | % |
150 bps
|
|||||||
Organic operating margin
|
16.2 | % | 14.1 | % |
210 bps
|
|||||||
New orders
|
$ | 77,991 | $ | 70,833 | 10 | % |
2013 vs. 2012
|
||||||||
Sales
|
Operating Income
|
|||||||
Organic
|
1 | % | 16 | % | ||||
Acquisitions
|
10 | % | 7 | % | ||||
Foreign currency
|
- | % | - | % | ||||
Total
|
11 | % | 23 | % |
Condensed Consolidated Statements of Cash Flows
|
||||||||
March 31, 2013
|
March 31, 2012
|
|||||||
Cash flows from operating activities:
|
||||||||
Net cash used for operating activities
|
$ | (1,080 | ) | $ | (4,719 | ) | ||
Net cash (used for) provided by investing activities
|
(114,714 | ) | 29,129 | |||||
Net cash provided by financing activities
|
125,289 | 8,335 | ||||||
Effect of exchange rates
|
(2,722 | ) | 3,932 | |||||
Net increase in cash and cash equivalents
|
6,774 | 36,677 |
Total Number of shares purchased
|
Average Price Paid per Share
|
Total Number of Shares Purchased as Part of a Publicly Announced Program
|
Maximum Number of Shares that may yet be Purchased Under the Program
|
|||||||||||||
January 1 - January 31
|
- | $ | - | - | 2,599,213 | |||||||||||
February 1- February 28
|
- | - | - | 2,599,213 | ||||||||||||
March 1- March 31
|
- | - | - | 2,599,213 | ||||||||||||
For the quarter ended
|
- | $ | - | - | 2,599,213 |
Incorporated by Reference
|
Filed
|
||||
Exhibit No.
|
Exhibit Description
|
Form
|
Filing Date
|
Herewith
|
|
3.1
|
Amended and Restated Certificate of Incorporation of the Registrant
|
8-A/A
|
May 24, 2005
|
||
3.2
|
Amended and Restated Bylaws of the Registrant
|
8-K
|
March 23, 2012
|
||
10.1
|
Note Purchase Agreement between the Registrant and certain Institutional Investors, dated February 26, 2013
|
8-K
|
February 27, 2013
|
||
10.2
|
Restrictive Legends on Notes subject to Note Purchase Agreement between the Registrant and certain Institutional Investors, dated February 26, 2013
|
8-K
|
February 27, 2013
|
||
10.3 | Restricted Stock Unit Agreement, dated April 1, 2013, by and between the Registrant and Thomas Quinly.* | X | |||
31.1
|
Certification of Martin R. Benante, Chairman and CEO, Pursuant to Rules 13a – 14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as amended
|
X
|
|||
31.2
|
Certification of Glenn E. Tynan, Chief Financial Officer, Pursuant to Rules 13a – 14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as amended
|
X
|
|||
32
|
Certification of Martin R. Benante, Chairman and CEO, and Glenn E. Tynan, Chief Financial Officer, Pursuant to 18 U.S.C. Section 1350
|
X
|
|||
101.INS
|
XBRL Instance Document
|
X
|
|||
101.SCH
|
XBRL Taxonomy Extension Schema Document
|
X
|
|||
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
X
|
|||
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document
|
X
|
|||
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document
|
X
|
|||
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
X
|
|||
* Indicates contract or compensatory plan or arrangement |
1.
|
I have reviewed this quarterly report on Form 10-Q of Curtiss-Wright Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Curtiss-Wright Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|