EX-99.2 4 dex992.htm CRANE CO. QUARTERLY FINANCIAL DATA SUPPLEMENT Crane Co. Quarterly Financial Data Supplement

Exhibit 99.2

 

CRANE CO.

Consolidated Income Statement Data

(in thousands, except per share data)

 

     Three Months Ended
December 31,
    

Year Ended

December 31,

  
     2005
     2004
     2005
     2004
  

Net Sales:

                                 

Aerospace & Electronics

    $ 145,202     $ 138,767     $ 554,445     $ 511,624  

Engineered Materials

      69,274       62,942       304,824       276,186  

Merchandising Systems

      36,248       43,086       166,298       169,205  

Fluid Handling

      235,456       222,507       953,961       861,937  

Controls

      20,248       18,515       82,143       71,950  

Intersegment Elimination

      (90 )     (215 )     (422 )     (567 )
    
 
 
 

Total Net Sales

    $ 506,338     $ 485,602     $ 2,061,249     $ 1,890,335  
    
 
 
 

Operating Profit:

                                 

Aerospace & Electronics

    $ 25,457     $ 24,928     $ 86,136     $ 92,650  

Engineered Materials

      12,147       9,476       62,982       54,072  

Merchandising Systems

      1,434       1,957       12,797       9,722  

Fluid Handling

      22,545       12,659       76,132       52,152  

Controls

      1,986       1,714       7,274       5,529  

Corporate

      (8,454 )     (4,493 )     (31,699 )     (27,821 )
    
 
 
 

Operating Profit before Income (Charge)

      55,115       46,241       213,622       186,304  

Asbestos and Environmental Income (Charge)

      —         14,019       —         (347,794 )
    
 
 
 

Total Operating Profit (Loss)

      55,115       60,260       213,622       (161,490 )

Interest Income

      1,368       121       2,372       1,366  

Interest Expense

      (5,391 )     (5,114 )     (22,416 )     (23,161 )

Miscellaneous- Net

      101       15,178       2,946       15,115  
    
 
 
 

Income (Loss) Before Income Taxes

      51,193       70,445       196,524       (168,170 )

Provision (Benefit) for Income Taxes

      15,870       24,075       60,487       (62,749 )
    
 
 
 

Net Income (Loss)

    $ 35,323     $ 46,370     $ 136,037     $ (105,421 )
    
 
 
 

Share Data:

                                 

Net Income (Loss) Per Diluted Share

    $ 0.58     $ 0.78     $ 2.25     $ (1.78 )
    
 
 
 

Average Diluted Shares Outstanding

      60,928       59,750       60,413       59,251  

Average Basic Shares Outstanding

      60,233       59,123       59,816       59,251  

Supplemental Data:

                                 

Cost of Sales

    $ 347,630     $ 328,531     $ 1,418,662     $ 1,646,668  

Selling, General & Administrative

      103,593       96,811       428,965       405,157  

Depreciation and Amortization *

      12,754       13,732       55,715       55,716  
* Amount included within cost of sales and selling, general & administrative costs.

CRANE CO.

Condensed Consolidated Balance Sheets

(in thousands)

 

     December 31,
2005
    December 31,
2004

ASSETS

              

Current Assets

              

Cash and Cash Equivalents

    $ 180,392    $ 50,727

Accounts Receivable

      289,521      308,140

Inventories

      272,354      284,291

Other Current Assets

      56,128      59,648
    
  

Total Current Assets

      798,395      702,806

Property, Plant and Equipment

      263,791      287,596

Insurance Receivable - Asbestos

      224,600      245,160

Other Assets

      284,345      301,865

Goodwill

      568,355      579,081
    
  

Total Assets

    $ 2,139,486    $ 2,116,508
    
  

LIABILITIES AND SHAREHOLDERS’ EQUITY

              

Current Liabilities

              

Current Maturities of Long-Term Debt and Loans Payable

    $ 254    $ 371

Accounts Payable

      149,647      161,477

Current Asbestos Liability

      55,000      67,800

Accrued Liabilities

      174,366      157,730

Income Taxes

      19,322      22,636
    
  

Total Current Liabilities

      398,589      410,014

Long-Term Debt

      293,248      296,592

Deferred Income Taxes

      71,406      71,367

Long-Term Asbestos Liability

      526,830      581,914

Pension, Postretirement and Other Liabilities

      96,119      92,927

Shareholders’ Equity

      753,294      663,694
    
  

Total Liabilities and Shareholders’ Equity

    $ 2,139,486    $ 2,116,508
    
  

CRANE CO.

Condensed Consolidated Statements of Cash Flows

(in thousands)

 

     Three Months Ended
December 31,
    

Year Ended

December 31,

  
     2005
     2004
     2005
     2004
  

Operating Activities:

                                 

Net income (loss)

    $ 35,323     $ 46,370     $ 136,037     $ (105,421 )

Charges for asbestos and environmental - net of tax

      —         (9,112 )     —         229,272  

Gain on divestiture

      —         (9,468 )     —         (9,468 )

Income from joint venture

      (1,489 )     (1,313 )     (5,965 )     (4,041 )

Depreciation and amortization

      12,754       13,732       55,715       55,716  

Cash provided by (used for) operating working capital

      40,095       11,646       5,032       (27,403 )

Other

      11,474       14,454       26,139       10,365  
    
 
 
 

Subtotal

      98,157       66,309       216,958       149,020  

Payments for asbestos-related fees and costs, net

      (20,782 )     (9,720 )     (45,338 )     (28,056 )

(Payment) refund associated with terminated Master Settlement Agreement

      —         (10,000 )     9,925       (10,000 )
    
 
 
 

Total provided from operating activities

      77,375       46,589       181,545       110,964  
    
 
 
 

Investing Activities:

                                 

Capital expenditures

      (9,530 )     (6,855 )     (27,164 )     (22,507 )

Proceeds from disposition of capital assets

      4,770       2,832       6,339       3,738  

Payments for acquisitions, net

      (1,666 )     —         (8,823 )     (49,957 )

Proceeds from divestitures

      —         15,320       —         15,320  
    
 
 
 

Total (used for) provided from investing activities

      (6,426 )     11,297       (29,648 )     (53,406 )
    
 
 
 

Financing Activities:

                                 

Dividends paid

      (7,533 )     (5,918 )     (26,962 )     (23,686 )

Settlement of treasury shares acquired on the open market

      —         —         —         (42,748 )

Stock options exercised - net of shares reacquired

      7,990       4,873       18,624       14,509  

Repayment of debt, net

      (1,427 )     (40,879 )     (4,843 )     (99,868 )
    
 
 
 

Total used for financing activities

      (970 )     (41,924 )     (13,181 )     (151,793 )
    
 
 
 

Effect of exchange rate on cash and cash equivalents

      (3,191 )     2,566       (9,051 )     2,444  
    
 
 
 

Increase (decrease) in cash and cash equivalents

      66,788       18,528       129,665       (91,791 )

Cash and cash equivalents at beginning of period

      113,604       32,199       50,727       142,518  
    
 
 
 

Cash and cash equivalents at end of period

    $ 180,392     $ 50,727     $ 180,392     $ 50,727  
    
 
 
 

CRANE CO.

Order Backlog

(in thousands)

 

    

December 31,

2005

   

September 30,

2005

   

June 30,

2005

   

March 31,

2005

   

December 31,

2004

Aerospace & Electronics

    $ 365,010    $ 366,109    $ 370,913    $ 367,472    $ 341,505

Engineered Materials

      17,241      20,673      15,964      19,414      16,376

Merchandising Systems

      9,183      8,362      9,298      9,469      11,998

Fluid Handling

      188,832      194,436      201,768      200,578      183,158

Controls

      16,864      15,182      14,952      15,625      13,696
    
  
  
  
  

Total Backlog

    $ 597,130    $ 604,762    $ 612,895    $ 612,558    $ 566,733
    
  
  
  
  

CRANE CO.

Non-GAAP Financial Measures

(in thousands)

 

     Three Months Ended
December 31,
     Year Ended December 31,
  
     2005
     2004
     2006 Estimate
     2005
     2004
  
INCOME ITEMS:                                         

Operating Profit (Loss)

    $ 55,115     $ 60,260             $ 213,622     $ (161,490 )

Asbestos and Environmental (Income) Charges - Pre-Tax

              (14,019 )                     347,794  
    
 
         
 

Operating Profit before Asbestos and Environmental

    $ 55,115     $ 46,241             $ 213,622     $ 186,304  
    
 
         
 

Operating Profit Margin %

                                         

Operating Profit (Loss)

      10.9 %     12.4 %             10.4 %     (8.5 )%

Asbestos and Environmental (Income) Charges - Pre-Tax

              (2.9 )                     18.4  
    
 
         
 

Operating Profit before Asbestos and Environmental

      10.9 %     9.5 %             10.4 %     9.9 %
    
 
         
 

Net Income (Loss)

    $ 35,323     $ 46,370             $ 136,037     $ (105,421 )

Asbestos and Environmental (Income) Charges - Net of Tax

              (9,112 )                     229,272  

Gain on Victaulic Divestiture - Net of Tax

              (6,533 )                     (6,533 )
    
 
         
 

Net Income before Asbestos, Environmental and Gain on Victaulic

    $ 35,323     $ 30,725             $ 136,037     $ 117,318  
    
 
         
 

Per Diluted Share:

                                         

Net Income (Loss)

    $ 0.58     $ 0.78             $ 2.25     $ (1.78 )

Asbestos and Environmental (Income) Charges - Net of Tax

              (0.15 )                     3.87  

Gain on Victaulic Divestiture - Net of Tax

              (0.11 )                     (0.11 )
    
 
         
 

Net Income before Asbestos, Environmental and Gain on Victaulic

    $ 0.58     $ 0.52             $ 2.25     $ 1.98  
    
 
         
 
CASH FLOW ITEMS:                                         

Cash Provided from Operating Activities before Asbestos - Related Payments

    $ 98,157     $ 66,309     $ 240,000     $ 216,958     $ 149,020  

Net Asbestos Payments

      (20,782 )     (9,720 )     (45,000 )     (45,338 ) (a)     (28,056 ) (a)

(Payment) Refund Associated with Terminated Master Settlement Agreement

              (10,000 )             9,925       (10,000 )
    
 
 
 
 

Cash Provided from Operating Activities

      77,375       46,589       195,000       181,545       110,964  

Less: Capital Expenditures

      (9,530 )     (6,855 )     (30,000 )     (27,164 )     (22,507 )
    
 
 
 
 

Free Cash Flow

    $ 67,845     $ 39,734     $ 165,000     $ 154,381     $ 88,457  
    
 
 
 
 
(a) Includes certain legal fees and expenses relating to the terminated Master Settlement Agreement amounting to $5.1 million in 2005 and $7.9 million in 2004.

 

Certain non-GAAP measures have been provided to facilitate comparison with the prior year.

 

Free cash flow provides supplemental information to assist management and certain investors in analyzing the Company’s ability to generate positive cash flow.

 

Free cash flow is considered a measure of cash generation and should be considered in addition to, but not as a substitute for, other measures reported in accordance with generally accepted accounting principles and may be inconsistent with similar measures presented by other companies.