Crane Company Reports Third Quarter 2024 Results and Raises Full Year EPS Guidance
Crane Company (NYSE: CR) reported strong Q3 2024 results with EPS of $1.33, up 39%, and adjusted EPS of $1.38, up 34%. Sales reached $597 million, increasing 13% with 6% core sales growth. The company demonstrated robust performance in its Aerospace & Electronics segment, with core order growth up 6% and core backlog growth up 10%. Based on these results, Crane raised its full-year adjusted EPS guidance to $5.05-$5.20, up from $4.95-$5.15. However, performance was slightly impacted by Hurricane Helene affecting a Process Flow Technologies facility in Marion, North Carolina.
Crane Company (NYSE: CR) ha riportato risultati forti per il terzo trimestre del 2024 con un utile per azione (EPS) di $1,33, in aumento del 39%, e un EPS rettificato di $1,38, in aumento del 34%. Le vendite hanno raggiunto 597 milioni di dollari, con un incremento del 13% e una crescita delle vendite core del 6%. L'azienda ha dimostrato una performance robusta nel suo segmento Aerospaziale ed Elettronico, con una crescita degli ordini core del 6% e una crescita del backlog core del 10%. Sulla base di questi risultati, Crane ha alzato le previsioni per l'EPS rettificato per l'intero anno a $5,05-$5,20, rispetto a $4,95-$5,15. Tuttavia, la performance è stata leggermente influenzata dal passaggio dell'uragano Helene che ha colpito un impianto di Process Flow Technologies a Marion, Carolina del Nord.
Crane Company (NYSE: CR) reportó resultados fuertes para el tercer trimestre de 2024 con un EPS de $1.33, un aumento del 39%, y un EPS ajustado de $1.38, un incremento del 34%. Las ventas alcanzaron $597 millones, aumentando un 13% con un crecimiento de ventas centrales del 6%. La compañía mostró un rendimiento robusto en su segmento de Aeronáutica y Electrónica, con un crecimiento de pedidos centrales del 6% y un crecimiento del backlog central del 10%. Basándose en estos resultados, Crane elevó su guía de EPS ajustado para todo el año a $5.05-$5.20, en comparación con $4.95-$5.15. Sin embargo, el rendimiento se vio ligeramente afectado por el huracán Helene que impactó una instalación de Process Flow Technologies en Marion, Carolina del Norte.
크레인 컴퍼니 (NYSE: CR)는 2024년 3분기 강력한 실적을 보고했습니다. 주당순이익(EPS) $1.33으로 39% 증가했고, 조정된 EPS는 $1.38로 34% 증가했습니다. 매출은 $597 백만에 도달하여 13% 증가했으며, 핵심 매출 성장률은 6%였습니다. 이 회사는 항공 우주 및 전자 부문에서 강력한 성과를 보여주었고, 핵심 주문 성장률은 6% 증가했으며 핵심 백로그 성장률은 10% 증가했습니다. 이러한 결과를 바탕으로 크레인은 연간 조정 EPS 가이던스를 $5.05-$5.20로 상향 조정했습니다(이전 $4.95-$5.15). 그러나 성과는 노스캐롤라이나주 마리온에 있는 프로세스 흐름 기술 공장을 영향을 미친 헬레네 허리케인으로 인해 약간 영향을 받았습니다.
Crane Company (NYSE: CR) a rapporté de solides résultats au troisième trimestre 2024 avec un bénéfice par action (EPS) de 1,33 $, en hausse de 39 %, et un EPS ajusté de 1,38 $, en hausse de 34 %. Les ventes ont atteint 597 millions de dollars, avec une augmentation de 13 % et une croissance des ventes de base de 6 %. L'entreprise a montré une performance robuste dans son segment Aérospatiale et Électronique, avec une croissance des commandes de base de 6 % et une croissance du carnet de commandes de base de 10 %. Sur la base de ces résultats, Crane a relevé ses prévisions d'EPS ajusté pour l'année entière à 5,05 $ - 5,20 $, contre 4,95 $ - 5,15 $. Cependant, la performance a été légèrement impactée par l'ouragan Helene, qui a affecté une installation de Process Flow Technologies à Marion, en Caroline du Nord.
Crane Company (NYSE: CR) berichtete von starken Ergebnissen im dritten Quartal 2024 mit einem Gewinn pro Aktie (EPS) von $1,33, was einem Anstieg von 39% entspricht, und einem bereinigten EPS von $1,38, was einem Anstieg von 34% entspricht. Der Umsatz erreichte $597 Millionen, was einem Anstieg von 13% mit einem Wachstum des Kerngeschäfts von 6% entspricht. Das Unternehmen zeigte eine robuste Leistung im Segment Luft- und Raumfahrt und Elektronik, mit einem Anstieg der Kernaufträge um 6% und einem Anstieg des Kernauftragsbestands um 10%. Basierend auf diesen Ergebnissen hat Crane die Prognose für den bereinigten EPS für das Gesamtjahr auf $5,05-$5,20 angehoben, im Vergleich zu $4,95-$5,15. Die Leistung wurde jedoch leicht durch den Hurrikan Helene beeinträchtigt, der eine Einrichtung für Prozessfluss-Technologien in Marion, North Carolina, betroffen hat.
- Q3 EPS increased 39% to $1.33, with adjusted EPS up 34% to $1.38
- Sales grew 13% to $597 million with 6% core sales growth
- Aerospace & Electronics backlog increased to $833 million from $678 million YoY
- Operating profit margin expanded 320 basis points to 17.6%
- Raised full-year adjusted EPS guidance to $5.05-$5.20
- Engineered Materials segment sales decreased 13% YoY
- Hurricane Helene impact on Process Flow Technologies facility affecting operations
- Free cash flow expected at lower end of $255-$275 million range due to working capital headwinds
Insights
Strong Q3 results demonstrate robust operational execution with
The Aerospace & Electronics segment's performance is particularly noteworthy, with
Third Quarter 2024 Highlights
-
Earnings per diluted share (EPS) of
, up$1.33 39% , and adjusted EPS of , up$1.38 34% . -
Sales of
, up$597 million 13% driven by6% core sales growth. -
Core order growth up
6% and core backlog growth up10% , driven primarily by ongoing strength at Aerospace & Electronics. -
Declaring fourth quarter 2024 regular dividend of
per share.$0.20 5
Full Year Outlook
-
Raising and narrowing our full year adjusted EPS outlook to a range of
, up from$5.05 -$5.20 .$4.95 -$5.15
Max Mitchell, Crane's Chairman, President and Chief Executive Officer, stated: "We delivered another quarter of excellent results, with
Mr. Mitchell concluded: “While our updated full year guidance represents yet another record year for Crane, our outperformance is tempered by the impact of Hurricane Helene on one of our Process Flow Technologies facilities in
Third Quarter 2024 Results
Third quarter 2024 GAAP EPS of
Third quarter sales increased
Summary of Third Quarter 2024 Results
|
|
Third Quarter |
|
Change |
||||||||||
(unaudited, dollars in millions) |
|
2024 |
|
2023 |
|
$ |
|
% |
||||||
Net sales |
|
|
|
|
|
$ |
67 |
|
13 |
% |
||||
Core sales |
|
|
|
|
|
|
32 |
|
6 |
% |
||||
Acquisitions |
|
|
|
|
|
|
34 |
|
6 |
% |
||||
Foreign exchange |
|
|
|
|
|
|
1 |
|
0 |
% |
||||
|
|
|
|
|
|
|
|
|
||||||
Operating profit |
|
|
|
|
|
$ |
29 |
|
38 |
% |
||||
Adjusted operating profit* |
|
|
|
|
|
$ |
28 |
|
35 |
% |
||||
|
|
|
|
|
|
|
|
|
||||||
Operating profit margin |
|
|
|
|
|
|
|
320bps |
||||||
Adjusted operating profit margin* |
|
|
|
|
|
|
|
310bps |
||||||
*Please see the attached Non-GAAP Financial Measures tables |
Cash Flow, Financing Activities and Other Financial Metrics
During the third quarter of 2024, cash provided by operating activities was
As of September 30, 2024, the Company's cash balance was
Rich Maue, Crane's Executive Vice President and Chief Financial Officer, added: "For the full year, we now expect free cash flow to fall at the lower end of our estimated
However, these items are transitory, and our strong balance sheet gives us the flexibility to continue investing strategically, while providing the opportunity for further capital deployment. As always, we will deploy our capital with the same strict financial and strategic discipline that we have always employed. We see numerous opportunities for value-creating acquisitions to further accelerate our growth, and with the ability to generate enhanced returns given our lengthy track record of successful acquisition integration and synergy generation."
Third Quarter 2024 Segment Results
All comparisons detailed in this section refer to operating results for the third quarter 2024 versus the third quarter 2023.
Aerospace & Electronics
|
|
Third Quarter |
|
Change |
||||||||||
(unaudited, dollars in millions) |
|
2024 |
|
2023 |
|
$ |
|
% |
||||||
Net sales |
|
$ |
239 |
|
|
$ |
207 |
|
|
$ |
32 |
|
15 |
% |
Core sales |
|
|
|
|
|
|
21 |
|
10 |
% |
||||
Acquisitions |
|
|
|
|
|
|
11 |
|
5 |
% |
||||
|
|
|
|
|
|
|
|
|
||||||
Operating profit |
|
$ |
55 |
|
|
$ |
40 |
|
|
$ |
15 |
|
37 |
% |
Adjusted operating profit* |
|
$ |
56 |
|
|
$ |
40 |
|
|
$ |
16 |
|
40 |
% |
|
|
|
|
|
|
|
|
|
||||||
Operating profit margin |
|
|
23.0 |
% |
|
|
19.4 |
% |
|
|
|
360bps |
||
Adjusted operating profit margin* |
|
|
23.5 |
% |
|
|
19.4 |
% |
|
|
|
410bps |
||
*Please see the attached Non-GAAP Financial Measures tables |
Sales of
Process Flow Technologies
|
|
Third Quarter |
|
Change |
||||||||||
(unaudited, dollars in millions) |
|
2024 |
|
2023 |
|
$ |
|
% |
||||||
Net sales |
|
$ |
309 |
|
|
$ |
267 |
|
|
$ |
42 |
|
16 |
% |
Core sales |
|
|
|
|
|
|
18 |
|
7 |
% |
||||
Foreign exchange |
|
|
|
|
|
|
1 |
|
0 |
% |
||||
Acquisitions |
|
|
|
|
|
|
23 |
|
9 |
% |
||||
|
|
|
|
|
|
|
|
|
||||||
Operating profit |
|
$ |
66 |
|
|
$ |
51 |
|
|
$ |
14 |
|
28 |
% |
Adjusted operating profit* |
|
$ |
67 |
|
|
$ |
51 |
|
|
$ |
16 |
|
31 |
% |
|
|
|
|
|
|
|
|
|
||||||
Operating profit margin |
|
|
21.2 |
% |
|
|
19.2 |
% |
|
|
|
200bps |
||
Adjusted operating profit margin* |
|
|
21.8 |
% |
|
|
19.2 |
% |
|
|
|
260bps |
||
*Please see the attached Non-GAAP Financial Measures tables |
Sales of
Engineered Materials
|
|
Third Quarter |
|
Change |
|||||||||||
(unaudited, dollars in millions) |
|
2024 |
|
2023 |
|
$ |
|
% |
|||||||
Net sales |
|
$ |
49 |
|
|
$ |
56 |
|
|
$ |
(7 |
) |
|
(13 |
%) |
|
|
|
|
|
|
|
|
|
|||||||
Operating profit |
|
$ |
6 |
|
|
$ |
8 |
|
|
$ |
(2 |
) |
|
(20 |
%) |
Adjusted operating profit* |
|
$ |
6 |
|
|
$ |
8 |
|
|
$ |
(1 |
) |
|
(18 |
%) |
|
|
|
|
|
|
|
|
|
|||||||
Operating profit margin |
|
|
12.7 |
% |
|
|
13.7 |
% |
|
|
|
(100bps) |
|||
Adjusted operating profit margin* |
|
|
12.9 |
% |
|
|
13.7 |
% |
|
|
|
(80bps) |
|||
*Please see the attached Non-GAAP Financial Measures tables |
Sales of
Updating 2024 Guidance
We are raising and narrowing our full-year adjusted EPS outlook to a range of
Key assumptions for our revised guidance include:
-
Total sales growth of approximately
11% (unchanged), driven by core sales growth of approximately5% to7% (unchanged, but now expected to be at the higher end of the range) and an acquisition benefit of approximately5% (unchanged). -
Adjusted segment operating margin of ~
20.8% (up from20.7% ). -
Corporate cost of
(unchanged).$80 million -
Net non-operating expense of
(unchanged).$20 million -
Adjusted tax rate of
22.5% (prior23.0% ). - Diluted shares of ~58 million (unchanged).
- Includes the negative impact from the production downtime resulting from Hurricane Helene.
Additional details of our outlook and guidance are included in the presentation that accompanies this earnings release available on our website at www.craneco.com in the "investors" section.
Declaring Fourth Quarter Dividend
Crane announced its regular quarterly dividend of
Additional Information
References to changes in “core sales” or "core growth" in this report include the change in sales excluding the impact of foreign currency translation and acquisitions and divestitures from closing up to the first anniversary of such acquisitions or divestitures.
Crane operated as part of Crane Holdings, Co. for the entire first quarter of 2023 prior to completion of the separation transaction on April 3, 2023. First quarter 2023 results, as initially reported in May 2023, were derived from Crane Holdings, Co.'s accounting records and were presented on a carve-out basis. All of Crane's subsequent financial disclosures for pre-separation periods show the financial results of Crane Holdings, Co. (now renamed Crane NXT, Co.) with the Payment & Merchandising Technologies segment presented as discontinued operations.
As a result of the change in accounting presentation required by GAAP, first quarter 2023 GAAP EPS was reported as
Conference Call
Crane has scheduled a conference call to discuss the third quarter financial results on Tuesday, October 29, 2024 at 10:00 A.M. (Eastern). All interested parties may listen to a live webcast of the call at www.craneco.com. An archived webcast will also be available to replay this conference call directly from the Company’s website under Investors, Events & Presentations. Slides that accompany the conference call will be available on the Company’s website.
About Crane Company
Crane Company has delivered innovation and technology-led solutions for customers since its founding in 1855. Today, Crane is a leading manufacturer of highly engineered components for challenging, mission-critical applications focused on the aerospace, defense, space and process industry end markets. The Company has two strategic growth platforms: Aerospace & Electronics and Process Flow Technologies. Crane has approximately 7,500 employees in the
Forward-Looking Statements Disclaimer
This press release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include all statements that are not historical statements of fact and those regarding our intent, belief, or expectations, including, but not limited to: benefits and synergies of the separation transaction; strategic and competitive advantages of Crane; future financing plans and opportunities; and business strategies, prospects and projected operating and financial results. We caution investors not to place undue reliance on any such forward-looking statements.
These statements are based on management’s current expectations and beliefs and are subject to a number of risks and uncertainties that could lead to actual results differing materially from those projected, forecasted or expected. Although we believe that the assumptions underlying the forward-looking statements are reasonable, we can give no assurance that our expectations will be attained.
Risks and uncertainties that could cause actual results to differ materially from our expectations include, but are not limited to: changes in global economic conditions (including inflationary pressures) and geopolitical risks, including macroeconomic fluctuations that may harm our business, results of operation and stock price; information systems and technology networks failures and breaches in data security, theft of personally identifiable and other information, non-compliance with our contractual or other legal obligations regarding such information; our ability to source components and raw materials from suppliers, including disruptions and delays in our supply chain; demand for our products, which is variable and subject to factors beyond our control; governmental regulations and failure to comply with those regulations; fluctuations in the prices of our components and raw materials; loss of personnel or being able to hire and retain additional personnel needed to sustain and grow our business as planned; risks from environmental liabilities, costs, litigation and violations that could adversely affect our financial condition, results of operations, cash flows and reputation; risks associated with conducting a substantial portion of our business outside the
Readers should carefully review Crane’s financial statements and the notes thereto, as well as the section entitled “Risk Factors” in Item 1A of Crane’s Annual Report on Form 10-K for the year ended December 31, 2023 and the other documents Crane files from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Crane assumes no (and disclaims any) obligation to revise or update any forward-looking statements.
We make no representations or warranties as to the accuracy of any projections, statements or information contained in this press release. It is understood and agreed that any such projections, targets, statements and information are not to be viewed as facts and are subject to significant business, financial, economic, operating, competitive and other risks, uncertainties and contingencies many of which are beyond our control, that no assurance can be given that any particular financial projections ranges, or targets will be realized, that actual results may differ from projected results and that such differences may be material. While all financial projections, estimates and targets are necessarily speculative, we believe that the preparation of prospective financial information involves increasingly higher levels of uncertainty the further out the projection, estimate or target extends from the date of preparation. The assumptions and estimates underlying the projected, expected or target results are inherently uncertain and are subject to a wide variety of significant business, economic and competitive risks and uncertainties that could cause actual results to differ materially from those contained in the financial projections, estimates and targets. The inclusion of financial projections, estimates and targets in this press release should not be regarded as an indication that we or our representatives, considered or consider the financial projections, estimates and targets to be a reliable prediction of future events.
(Financial Tables Follow)
Source: Crane Company
CRANE COMPANY Condensed Statements of Operations Data (unaudited, in millions, except per share data) |
|||||||||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net sales: |
|
|
|
|
|
|
|
||||||||
Aerospace & Electronics |
$ |
239.1 |
|
|
$ |
207.2 |
|
|
$ |
695.9 |
|
|
$ |
576.5 |
|
Process Flow Technologies |
|
309.2 |
|
|
|
266.7 |
|
|
|
891.2 |
|
|
|
801.3 |
|
Engineered Materials |
|
48.9 |
|
|
|
56.2 |
|
|
|
156.6 |
|
|
|
175.7 |
|
Total net sales |
$ |
597.2 |
|
|
$ |
530.1 |
|
|
$ |
1,743.7 |
|
|
$ |
1,553.5 |
|
|
|
|
|
|
|
|
|
||||||||
Operating profit: |
|
|
|
|
|
|
|
||||||||
Aerospace & Electronics |
$ |
54.9 |
|
|
$ |
40.2 |
|
|
$ |
155.9 |
|
|
$ |
116.1 |
|
Process Flow Technologies |
|
65.5 |
|
|
|
51.2 |
|
|
|
181.9 |
|
|
|
165.1 |
|
Engineered Materials |
|
6.2 |
|
|
|
7.7 |
|
|
|
21.6 |
|
|
|
28.9 |
|
Corporate |
|
(21.4 |
) |
|
|
(22.8 |
) |
|
|
(68.2 |
) |
|
|
(93.2 |
) |
Total operating profit |
$ |
105.2 |
|
|
$ |
76.3 |
|
|
$ |
291.2 |
|
|
$ |
216.9 |
|
|
|
|
|
|
|
|
|
||||||||
Interest income |
$ |
1.5 |
|
|
$ |
1.5 |
|
|
$ |
4.0 |
|
|
$ |
3.2 |
|
Interest expense |
|
(7.3 |
) |
|
|
(4.8 |
) |
|
|
(21.9 |
) |
|
|
(16.7 |
) |
Miscellaneous income (expense), net |
|
0.7 |
|
|
|
1.3 |
|
|
|
0.5 |
|
|
|
(0.5 |
) |
Income from continuing operations before income taxes |
|
100.1 |
|
|
|
74.3 |
|
|
|
273.8 |
|
|
|
202.9 |
|
Provision for income taxes |
|
22.8 |
|
|
|
19.1 |
|
|
|
60.1 |
|
|
|
48.5 |
|
Net income from continuing operations attributable to common shareholders |
|
77.3 |
|
|
|
55.2 |
|
|
|
213.7 |
|
|
|
154.4 |
|
Income from discontinued operations, net of tax |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
52.1 |
|
Net income attributable to common shareholders |
$ |
77.3 |
|
|
$ |
55.2 |
|
|
$ |
213.7 |
|
|
$ |
206.5 |
|
|
|
|
|
|
|
|
|
||||||||
Earnings per diluted share from continuing operations |
$ |
1.33 |
|
|
$ |
0.96 |
|
|
$ |
3.67 |
|
|
$ |
2.69 |
|
Earnings per diluted share from discontinued operations |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.91 |
|
Earnings per diluted share |
$ |
1.33 |
|
|
$ |
0.96 |
|
|
$ |
3.67 |
|
|
$ |
3.60 |
|
|
|
|
|
|
|
|
|
||||||||
Average diluted shares outstanding |
|
58.3 |
|
|
|
57.5 |
|
|
|
58.2 |
|
|
|
57.4 |
|
Average basic shares outstanding |
|
57.2 |
|
|
|
56.8 |
|
|
|
57.1 |
|
|
|
56.7 |
|
|
|
|
|
|
|
|
|
||||||||
Supplemental data: |
|
|
|
|
|
|
|
||||||||
Cost of sales |
$ |
359.2 |
|
|
$ |
326.9 |
|
|
$ |
1,061.3 |
|
|
$ |
942.3 |
|
Selling, general & administrative |
|
132.8 |
|
|
|
126.9 |
|
|
|
391.2 |
|
|
|
394.3 |
|
Transaction related expenses (a) |
|
3.6 |
|
|
|
4.3 |
|
|
|
16.3 |
|
|
|
36.5 |
|
Repositioning related charges, net (a) |
|
0.3 |
|
|
|
0.1 |
|
|
|
0.8 |
|
|
|
2.1 |
|
Depreciation and amortization (a) |
|
13.9 |
|
|
|
9.3 |
|
|
|
40.6 |
|
|
|
28.3 |
|
Stock-based compensation expense (a) |
|
5.2 |
|
|
|
7.9 |
|
|
|
18.7 |
|
|
|
21.9 |
|
|
|
|
|
|
|
|
|
||||||||
(a) Amounts included within Cost of sales and/or Selling, general & administrative costs. |
CRANE COMPANY Condensed Balance Sheets (unaudited, in millions) |
||||||
|
|
September 30,
|
|
December 31,
|
||
|
|
|
|
|
||
Assets |
|
|
|
|
||
Current assets |
|
|
|
|
||
Cash and cash equivalents |
|
$ |
258.2 |
|
$ |
329.6 |
Accounts receivable, net |
|
|
396.1 |
|
|
306.4 |
Inventories, net |
|
|
398.1 |
|
|
353.1 |
Other current assets |
|
|
192.4 |
|
|
101.7 |
Total current assets |
|
|
1,244.8 |
|
|
1,090.8 |
|
|
|
|
|
||
Property, plant and equipment, net |
|
|
277.0 |
|
|
270.5 |
Other assets |
|
|
302.3 |
|
|
224.6 |
Goodwill |
|
|
827.8 |
|
|
747.7 |
Total assets |
|
$ |
2,651.9 |
|
$ |
2,333.6 |
|
|
|
|
|
||
Liabilities and Equity |
|
|
|
|
||
Current liabilities |
|
|
|
|
||
Short-term borrowings |
|
$ |
85.0 |
|
$ |
— |
Accounts payable |
|
|
169.6 |
|
|
179.1 |
Accrued liabilities |
|
|
313.4 |
|
|
273.7 |
Income taxes |
|
|
4.1 |
|
|
14.3 |
Total current liabilities |
|
|
572.1 |
|
|
467.1 |
|
|
|
|
|
||
Long-term debt |
|
|
246.9 |
|
|
248.5 |
Long-term deferred tax liability |
|
|
51.8 |
|
|
37.1 |
Other liabilities |
|
|
204.2 |
|
|
220.6 |
Total liabilities |
|
|
1,075.0 |
|
|
973.3 |
Total equity |
|
|
1,576.9 |
|
|
1,360.3 |
Total liabilities and equity |
|
$ |
2,651.9 |
|
$ |
2,333.6 |
CRANE COMPANY Condensed Statements of Cash Flows (unaudited, in millions) |
|||||||||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Operating activities: |
|
|
|
|
|
|
|
||||||||
Net income attributable to common shareholders |
$ |
77.3 |
|
|
$ |
55.2 |
|
|
$ |
213.7 |
|
|
$ |
206.5 |
|
Less: Income from discontinued operations, net of tax |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
52.1 |
|
Net income from continuing operations attributable to common shareholders |
|
77.3 |
|
|
|
55.2 |
|
|
|
213.7 |
|
|
|
154.4 |
|
Depreciation and amortization |
|
13.9 |
|
|
|
9.3 |
|
|
|
40.6 |
|
|
|
28.3 |
|
Stock-based compensation expense |
|
5.2 |
|
|
|
7.9 |
|
|
|
18.7 |
|
|
|
21.9 |
|
Defined benefit plans and postretirement cost |
|
0.9 |
|
|
|
2.2 |
|
|
|
2.8 |
|
|
|
7.0 |
|
Deferred income taxes |
|
— |
|
|
|
6.2 |
|
|
|
— |
|
|
|
2.5 |
|
Cash (used for) provided by operating working capital |
|
(5.1 |
) |
|
|
17.9 |
|
|
|
(191.5 |
) |
|
|
(165.4 |
) |
Defined benefit plans and postretirement contributions |
|
(10.6 |
) |
|
|
(10.4 |
) |
|
|
(16.6 |
) |
|
|
(16.1 |
) |
Environmental payments, net of reimbursements |
|
(0.7 |
) |
|
|
(1.1 |
) |
|
|
(3.5 |
) |
|
|
(3.0 |
) |
Other |
|
0.8 |
|
|
|
(0.3 |
) |
|
|
(0.4 |
) |
|
|
4.3 |
|
Total provided by operating activities from continuing operations |
|
81.7 |
|
|
|
86.9 |
|
|
|
63.8 |
|
|
|
33.9 |
|
Investing activities: |
|
|
|
|
|
|
|
||||||||
Payment for acquisitions - net of cash acquired and working capital adjustments |
|
4.6 |
|
|
|
— |
|
|
|
(161.7 |
) |
|
|
— |
|
Capital expenditures |
|
(9.0 |
) |
|
|
(9.2 |
) |
|
|
(25.5 |
) |
|
|
(29.7 |
) |
Other investing activities |
|
(0.1 |
) |
|
|
0.9 |
|
|
|
5.6 |
|
|
|
0.6 |
|
Total used for investing activities from continuing operations |
|
(4.5 |
) |
|
|
(8.3 |
) |
|
|
(181.6 |
) |
|
|
(29.1 |
) |
Financing activities: |
|
|
|
|
|
|
|
||||||||
Dividends paid |
|
(11.7 |
) |
|
|
(10.2 |
) |
|
|
(35.1 |
) |
|
|
(47.0 |
) |
Net proceeds (payments) related to employee stock plans |
|
1.6 |
|
|
|
2.0 |
|
|
|
(3.5 |
) |
|
|
15.7 |
|
Debt issuance costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(7.5 |
) |
Proceeds from long-term debt |
|
— |
|
|
|
— |
|
|
|
190.0 |
|
|
|
300.0 |
|
Proceeds from term facility of discontinued operations |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
350.0 |
|
Repayments of long-term debt |
|
(45.0 |
) |
|
|
(11.9 |
) |
|
|
(106.9 |
) |
|
|
(448.8 |
) |
Distribution of Crane NXT, Co. |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(578.1 |
) |
Total (used for) provided by financing activities from continuing and discontinued operations |
|
(55.1 |
) |
|
|
(20.1 |
) |
|
|
44.5 |
|
|
|
(415.7 |
) |
Discontinued operations: |
|
|
|
|
|
|
|
||||||||
Total provided by operating activities |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
34.6 |
|
Total used for investing activities |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4.1 |
) |
Increase in cash and cash equivalents from discontinued operations |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
30.5 |
|
Effect of exchange rate on cash and cash equivalents |
|
6.8 |
|
|
|
(3.6 |
) |
|
|
1.9 |
|
|
|
(3.4 |
) |
Increase (decrease) in cash and cash equivalents |
|
28.9 |
|
|
|
54.9 |
|
|
|
(71.4 |
) |
|
|
(383.8 |
) |
Cash and cash equivalents at beginning of period (a) |
|
229.3 |
|
|
|
218.9 |
|
|
|
329.6 |
|
|
|
657.6 |
|
Cash and cash equivalents at end of period |
$ |
258.2 |
|
|
$ |
273.8 |
|
|
$ |
258.2 |
|
|
$ |
273.8 |
|
(a) 2023 Includes cash and cash equivalents of discontinued operations. |
CRANE COMPANY Order Backlog (unaudited, in millions) |
|||||||||||||||
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|||||
|
|
2024 |
|
2024 |
|
2024 |
|
2023 |
|
2023 |
|||||
Aerospace & Electronics (a) |
|
$ |
833.3 |
|
$ |
814.9 |
|
$ |
791.8 |
|
$ |
700.9 |
|
$ |
677.9 |
Process Flow Technologies(b) (c) |
|
|
392.0 |
|
|
399.9 |
|
|
393.3 |
|
|
379.0 |
|
|
352.9 |
Engineered Materials |
|
|
12.3 |
|
|
11.0 |
|
|
12.8 |
|
|
11.3 |
|
|
14.6 |
Total backlog |
|
$ |
1,237.6 |
|
$ |
1,225.8 |
|
$ |
1,197.9 |
|
$ |
1,091.2 |
|
$ |
1,045.4 |
(a) Includes |
|||||||||||||||
(b) Includes |
|||||||||||||||
(c) Includes |
CRANE COMPANY Non-GAAP Financial Measures (unaudited, in millions, except per share data) |
|||||||||||||||||||
|
|
Three Months Ended September 30, |
|
|
|||||||||||||||
|
|
2024 |
|
2023 |
|
% Change |
|||||||||||||
|
|
$ |
|
Per Share |
|
$ |
|
Per Share |
|
(on $) |
|||||||||
Net sales (GAAP) |
|
$ |
597.2 |
|
|
|
|
$ |
530.1 |
|
|
|
|
12.7 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Adjusted Operating Profit and Adjusted Operating Profit Margin |
|
|
|
|
|
|
|
|
|
|
|||||||||
Operating profit (GAAP) |
|
$ |
105.2 |
|
|
|
|
$ |
76.3 |
|
|
|
|
37.9 |
% |
||||
Operating profit margin (GAAP) |
|
|
17.6 |
% |
|
|
|
|
14.4 |
% |
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Special items impacting operating profit: |
|
|
|
|
|
|
|
|
|
|
|||||||||
Transaction related expenses(a)(b) |
|
|
3.6 |
|
|
|
|
|
4.3 |
|
|
|
|
|
|||||
Repositioning related charges, net |
|
|
0.3 |
|
|
|
|
|
0.1 |
|
|
|
|
|
|||||
Adjusted operating profit (Non-GAAP) |
|
$ |
109.1 |
|
|
|
|
$ |
80.7 |
|
|
|
|
35.2 |
% |
||||
Adjusted operating profit margin (Non-GAAP) |
|
|
18.3 |
% |
|
|
|
|
15.2 |
% |
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Adjusted Net Income and Adjusted Net Income per Share |
|
|
|
|
|
|
|
|
|
|
|||||||||
Net income from continuing operations attributable to common shareholders (GAAP) |
|
$ |
77.3 |
|
|
$ |
1.33 |
|
|
$ |
55.2 |
|
|
$ |
0.96 |
|
|
40.0 |
% |
Transaction related expenses(a)(b) |
|
|
3.7 |
|
|
|
0.06 |
|
|
|
4.3 |
|
|
|
0.08 |
|
|
|
|
Repositioning related charges, net |
|
|
0.3 |
|
|
|
0.01 |
|
|
|
0.1 |
|
|
|
— |
|
|
|
|
Impact of pension non-service costs |
|
|
0.1 |
|
|
|
— |
|
|
|
(0.1 |
) |
|
|
— |
|
|
|
|
Tax effect of the Non-GAAP adjustments |
|
|
(1.1 |
) |
|
|
(0.02 |
) |
|
|
(0.5 |
) |
|
|
(0.01 |
) |
|
|
|
Adjusted net income (Non-GAAP) |
|
$ |
80.3 |
|
|
$ |
1.38 |
|
|
$ |
59.0 |
|
|
$ |
1.03 |
|
|
36.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Adjusted EBITDA and Adjusted EBITDA Margin |
|
|
|
|
|
|
|
|
|
|
|||||||||
Net income (GAAP) |
|
$ |
77.3 |
|
|
|
|
$ |
55.2 |
|
|
|
|
40.0 |
% |
||||
Net income margin (GAAP) |
|
|
12.9 |
% |
|
|
|
|
10.4 |
% |
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Adjustments to net income: |
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest expense, net |
|
|
5.8 |
|
|
|
|
|
3.3 |
|
|
|
|
|
|||||
Income tax expense |
|
|
22.8 |
|
|
|
|
|
19.1 |
|
|
|
|
|
|||||
Depreciation |
|
|
9.2 |
|
|
|
|
|
8.1 |
|
|
|
|
|
|||||
Amortization |
|
|
4.7 |
|
|
|
|
|
1.2 |
|
|
|
|
|
|||||
Miscellaneous income, net |
|
|
(0.7 |
) |
|
|
|
|
(1.3 |
) |
|
|
|
|
|||||
Repositioning related charges, net |
|
|
0.3 |
|
|
|
|
|
0.1 |
|
|
|
|
|
|||||
Transaction related expenses(a)(b) |
|
|
1.7 |
|
|
|
|
|
4.3 |
|
|
|
|
|
|||||
Adjusted EBITDA (Non-GAAP) |
|
$ |
121.1 |
|
|
|
|
$ |
90.0 |
|
|
|
|
34.6 |
% |
||||
Adjusted EBITDA Margin (Non-GAAP) |
|
|
20.3 |
% |
|
|
|
|
17.0 |
% |
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
(a) 2024 transaction-related expenses primarily associated with the Vian and CryoWorks acquisitions. |
|||||||||||||||||||
(b) 2023 transaction-related expenses primarily associated with the separation and the Baum acquisition. |
|||||||||||||||||||
Totals may not sum due to rounding |
CRANE COMPANY Non-GAAP Financial Measures (in millions, except per share data) |
|||||||||||||||||||
|
|
Nine Months Ended September 30, |
|
|
|||||||||||||||
|
|
2024 |
|
2023 |
|
% Change |
|||||||||||||
|
|
$ |
|
Per Share |
|
$ |
|
Per Share |
|
(on $) |
|||||||||
Net sales (GAAP) |
|
$ |
1,743.7 |
|
|
|
|
$ |
1,553.5 |
|
|
|
|
12.2 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Adjusted Operating Profit and Adjusted Operating Profit Margin |
|
|
|
|
|
|
|
|
|
|
|||||||||
Operating profit (GAAP) |
|
$ |
291.2 |
|
|
|
|
$ |
216.9 |
|
|
|
|
34.3 |
% |
||||
Operating profit margin (GAAP) |
|
|
16.7 |
% |
|
|
|
|
14.0 |
% |
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Special items impacting operating profit: |
|
|
|
|
|
|
|
|
|
|
|||||||||
Transaction related expenses(a)(b) |
|
|
16.3 |
|
|
|
|
|
36.5 |
|
|
|
|
|
|||||
Repositioning related charges, net |
|
|
0.8 |
|
|
|
|
|
2.1 |
|
|
|
|
|
|||||
Adjusted operating profit (Non-GAAP) |
|
$ |
308.3 |
|
|
|
|
$ |
255.5 |
|
|
|
|
20.7 |
% |
||||
Adjusted operating profit margin (Non-GAAP) |
|
|
17.7 |
% |
|
|
|
|
16.4 |
% |
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Adjusted Net Income and Adjusted Net Income per Share |
|
|
|
|
|
|
|
|
|
|
|||||||||
Net income from continuing operations attributable to common shareholders (GAAP) |
|
$ |
213.7 |
|
|
$ |
3.67 |
|
|
$ |
154.4 |
|
|
$ |
2.69 |
|
|
38.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Transaction related expenses(a)(b) |
|
|
15.8 |
|
|
|
0.27 |
|
|
|
36.5 |
|
|
|
0.63 |
|
|
|
|
Repositioning related charges, net |
|
|
0.8 |
|
|
|
0.01 |
|
|
|
2.1 |
|
|
|
0.04 |
|
|
|
|
Impact of pension non-service costs |
|
|
0.4 |
|
|
|
0.01 |
|
|
|
2.8 |
|
|
|
0.05 |
|
|
|
|
Interest expense |
|
|
— |
|
|
|
— |
|
|
|
5.9 |
|
|
|
0.10 |
|
|
|
|
Tax effect of the Non-GAAP adjustments |
|
|
(3.8 |
) |
|
|
(0.06 |
) |
|
|
(7.1 |
) |
|
|
(0.12 |
) |
|
|
|
Adjusted net income (Non-GAAP) |
|
$ |
226.9 |
|
|
$ |
3.90 |
|
|
$ |
194.6 |
|
|
$ |
3.39 |
|
|
16.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Adjusted EBITDA and Adjusted EBITDA Margin |
|
|
|
|
|
|
|
|
|
|
|||||||||
Net income (GAAP) |
|
$ |
213.7 |
|
|
|
|
$ |
154.4 |
|
|
|
|
38.4 |
% |
||||
Net income margin (GAAP) |
|
|
12.3 |
% |
|
|
|
|
9.9 |
% |
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Adjustments to net income: |
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest expense, net |
|
|
17.9 |
|
|
|
|
|
13.5 |
|
|
|
|
|
|||||
Income tax expense |
|
|
60.1 |
|
|
|
|
|
48.5 |
|
|
|
|
|
|||||
Depreciation |
|
|
27.7 |
|
|
|
|
|
24.1 |
|
|
|
|
|
|||||
Amortization |
|
|
12.9 |
|
|
|
|
|
4.2 |
|
|
|
|
|
|||||
Miscellaneous (income) expense, net |
|
|
(0.5 |
) |
|
|
|
|
0.5 |
|
|
|
|
|
|||||
Repositioning related charges, net |
|
|
0.8 |
|
|
|
|
|
2.1 |
|
|
|
|
|
|||||
Transaction related expenses(a)(b) |
|
|
11.0 |
|
|
|
|
|
36.5 |
|
|
|
|
|
|||||
Adjusted EBITDA (Non-GAAP) |
|
$ |
343.6 |
|
|
|
|
$ |
283.8 |
|
|
|
|
21.1 |
% |
||||
Adjusted EBITDA Margin (Non-GAAP) |
|
|
19.7 |
% |
|
|
|
|
18.3 |
% |
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
(a) 2024 transaction-related expenses are primarily associated with the Vian and CryoWorks acquisitions. |
|||||||||||||||||||
(b) 2023 transaction-related expenses are primarily associated with the separation and the Baum acquisition. |
|||||||||||||||||||
Totals may not sum due to rounding |
CRANE COMPANY Non-GAAP Financial Measures by Segment (unaudited, in millions) |
|||||||||||||||||||
Three Months Ended September 30, 2024 |
Aerospace & Electronics |
|
Process Flow Technologies |
|
Engineered Materials |
|
Corporate |
|
Total Company |
||||||||||
Net sales |
$ |
239.1 |
|
|
$ |
309.2 |
|
|
$ |
48.9 |
|
|
$ |
— |
|
|
$ |
597.2 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating profit (GAAP) |
$ |
54.9 |
|
|
$ |
65.5 |
|
|
$ |
6.2 |
|
|
$ |
(21.4 |
) |
|
$ |
105.2 |
|
Operating profit margin (GAAP) |
|
23.0 |
% |
|
|
21.2 |
% |
|
|
12.7 |
% |
|
|
|
|
17.6 |
% |
||
|
|
|
|
|
|
|
|
|
|
||||||||||
Special items impacting operating profit: |
|
|
|
|
|
|
|
|
|
||||||||||
Transaction related expenses(a) |
|
1.4 |
|
|
|
1.6 |
|
|
|
— |
|
|
|
0.6 |
|
|
|
3.6 |
|
Repositioning related charges, net |
|
— |
|
|
|
0.2 |
|
|
|
0.1 |
|
|
|
— |
|
|
|
0.3 |
|
Adjusted operating profit (Non-GAAP) |
$ |
56.3 |
|
|
$ |
67.3 |
|
|
$ |
6.3 |
|
|
$ |
(20.8 |
) |
|
$ |
109.1 |
|
Adjusted operating profit margin (Non-GAAP) |
|
23.5 |
% |
|
|
21.8 |
% |
|
|
12.9 |
% |
|
|
|
|
18.3 |
% |
||
|
|
|
|
|
|
|
|
|
|
||||||||||
Three Months Ended September 30, 2023 |
|
|
|
|
|
|
|
|
|
||||||||||
Net sales |
$ |
207.2 |
|
|
$ |
266.7 |
|
|
$ |
56.2 |
|
|
$ |
— |
|
|
$ |
530.1 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating profit (GAAP) |
$ |
40.2 |
|
|
$ |
51.2 |
|
|
$ |
7.7 |
|
|
$ |
(22.8 |
) |
|
$ |
76.3 |
|
Operating profit margin (GAAP) |
|
19.4 |
% |
|
|
19.2 |
% |
|
|
13.7 |
% |
|
|
|
|
14.4 |
% |
||
|
|
|
|
|
|
|
|
|
|
||||||||||
Special items impacting operating profit: |
|
|
|
|
|
|
|
|
|
||||||||||
Transaction related expenses(b) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4.3 |
|
|
|
4.3 |
|
Repositioning related charges, net |
|
— |
|
|
|
0.1 |
|
|
|
— |
|
|
|
— |
|
|
|
0.1 |
|
Adjusted operating profit (Non-GAAP) |
$ |
40.2 |
|
|
$ |
51.3 |
|
|
$ |
7.7 |
|
|
$ |
(18.5 |
) |
|
$ |
80.7 |
|
Adjusted operating profit margin (Non-GAAP) |
|
19.4 |
% |
|
|
19.2 |
% |
|
|
13.7 |
% |
|
|
|
|
15.2 |
% |
||
(a) 2024 transaction-related expenses are primarily associated with the Vian and CryoWorks acquisitions. |
|||||||||||||||||||
(b) 2023 transaction-related expenses are primarily associated with the separation and the Baum acquisition. |
|||||||||||||||||||
Totals may not sum due to rounding |
CRANE COMPANY Non-GAAP Financial Measures by Segment (in millions) |
|||||||||||||||||||
Nine Months Ended September 30, 2024 |
Aerospace & Electronics |
|
Process Flow Technologies |
|
Engineered Materials |
|
Corporate |
|
Total Company |
||||||||||
Net sales |
$ |
695.9 |
|
|
$ |
891.2 |
|
|
$ |
156.6 |
|
|
$ |
— |
|
|
$ |
1,743.7 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating profit (GAAP) |
$ |
155.9 |
|
|
$ |
181.9 |
|
|
$ |
21.6 |
|
|
$ |
(68.2 |
) |
|
$ |
291.2 |
|
Operating profit margin (GAAP) |
|
22.4 |
% |
|
|
20.4 |
% |
|
|
13.8 |
% |
|
|
|
|
16.7 |
% |
||
|
|
|
|
|
|
|
|
|
|
||||||||||
Special items impacting operating profit: |
|
|
|
|
|
|
|
|
|
||||||||||
Transaction related expenses(a) |
|
6.0 |
|
|
|
4.8 |
|
|
|
— |
|
|
|
5.5 |
|
|
|
16.3 |
|
Repositioning related charges , net |
|
— |
|
|
|
0.7 |
|
|
|
0.1 |
|
|
|
— |
|
|
|
0.8 |
|
Adjusted operating profit (Non-GAAP) |
$ |
161.9 |
|
|
$ |
187.4 |
|
|
$ |
21.7 |
|
|
$ |
(62.7 |
) |
|
$ |
308.3 |
|
Adjusted operating profit margin (Non-GAAP) |
|
23.3 |
% |
|
|
21.0 |
% |
|
|
13.9 |
% |
|
|
|
|
17.7 |
% |
||
|
|
|
|
|
|
|
|
|
|
||||||||||
Nine Months Ended September 30, 2023 |
|
|
|
|
|
|
|
|
|
||||||||||
Net sales |
$ |
576.5 |
|
|
$ |
801.3 |
|
|
$ |
175.7 |
|
|
$ |
— |
|
|
$ |
1,553.5 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating profit (GAAP) |
$ |
116.1 |
|
|
$ |
165.1 |
|
|
$ |
28.9 |
|
|
$ |
(93.2 |
) |
|
$ |
216.9 |
|
Operating profit margin (GAAP) |
|
20.1 |
% |
|
|
20.6 |
% |
|
|
16.4 |
% |
|
|
|
|
14.0 |
% |
||
|
|
|
|
|
|
|
|
|
|
||||||||||
Special items impacting operating profit: |
|
|
|
|
|
|
|
|
|
||||||||||
Transaction related expenses(b) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
36.5 |
|
|
|
36.5 |
|
Repositioning related charges, net |
|
— |
|
|
|
2.4 |
|
|
|
(0.3 |
) |
|
|
— |
|
|
|
2.1 |
|
Adjusted operating profit (Non-GAAP) |
$ |
116.1 |
|
|
$ |
167.5 |
|
|
$ |
28.6 |
|
|
$ |
(56.7 |
) |
|
$ |
255.5 |
|
Adjusted operating profit margin (Non-GAAP) |
|
20.1 |
% |
|
|
20.9 |
% |
|
|
16.3 |
% |
|
|
|
|
16.4 |
% |
||
(a) 2024 transaction-related expenses are primarily associated with the Vian and CryoWorks acquisitions. |
|||||||||||||||||||
(b) 2023 transaction-related expenses are primarily associated with the separation and the Baum acquisition. |
|||||||||||||||||||
Totals may not sum due to rounding |
CRANE COMPANY Adjusted Free Cash Flow (unaudited, in millions, except per share data) |
||||||||||||||||
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
Cash Flow Items |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Cash provided by operating activities from continuing operations |
|
$ |
81.7 |
|
|
$ |
86.9 |
|
|
$ |
63.8 |
|
|
$ |
33.9 |
|
Less: Capital expenditures |
|
|
(9.0 |
) |
|
|
(9.2 |
) |
|
|
(25.5 |
) |
|
|
(29.7 |
) |
Free cash flow |
|
$ |
72.7 |
|
|
$ |
77.7 |
|
|
$ |
38.3 |
|
|
$ |
4.2 |
|
Adjustments: |
|
|
|
|
|
|
|
|
||||||||
Transaction-related expenses |
|
$ |
2.4 |
|
|
$ |
4.3 |
|
|
$ |
7.5 |
|
|
$ |
36.5 |
|
Adjusted free cash flow |
|
$ |
75.1 |
|
|
$ |
82.0 |
|
|
$ |
45.8 |
|
|
$ |
40.7 |
|
Crane Company reports its financial results in accordance with
Reconciliations of certain forward-looking and projected non-GAAP measures for Crane Company, including Adjusted EPS, and Adjusted segment margin to the closest corresponding GAAP measure are not available without unreasonable efforts due to the high variability, complexity and low visibility with respect to the charges excluded from these non-GAAP measures, which could have a potentially significant impact on our future GAAP results. For Crane Company, these forward looking and projected non-GAAP measures are calculated as follows:
- "Adjusted operating margin" is calculated as adjusted operating profit divided by sales. Adjusted operating profit is calculated as operating profit before Special Items which include transaction related expenses such as professional fees, and incremental costs related to the separation; and repositioning related charges. We believe that non-GAAP financial measures that exclude these items provide investors with an alternative metric that can assist in predicting future earnings and profitability that are complementary to GAAP metrics.
- "Adjusted EPS" is calculated as adjusted net income divided by diluted shares. Adjusted net income is calculated as net income adjusted for Special Items which include transaction related expenses such as professional fees, and incremental costs related to the separation; repositioning related charges; and, the impact of pension non-service costs. We believe that non-GAAP financial measures adjusted for these items provide investors with an alternative metric that can assist in predicting future earnings and profitability that are complementary to GAAP metrics.
We believe that each of the following non-GAAP measures provides useful information to investors regarding the Company’s financial conditions and operations:
- "Adjusted Operating Profit" and "Adjusted Operating Margin" add back to Operating Profit items which are outside of our core performance, some of which may or may not be non-recurring, and which we believe may complicate the interpretation of the Company’s underlying earnings and operational performance. These items include income and expense such as: transaction related expenses and repositioning related (gains) charges. These items are not incurred in all periods, the size of these items is difficult to predict, and none of these items are indicative of the operations of the underlying businesses. We believe that non-GAAP financial measures that exclude these items provide investors with an alternative metric that can assist in predicting future earnings and profitability that are complementary to GAAP metrics.
- "Adjusted Net Income" and "Adjusted EPS" exclude items which are outside of our core performance, some of which may or may not be non-recurring, and which we believe may complicate the presentation of the Company’s underlying earnings and operational performance. These measures include income and expense items that impacted Operating Profit such as: transaction related expenses and repositioning related (gains) charges. Additionally, these non-GAAP financial measures exclude income and expense items that impacted Net Income and Earnings per Diluted Share such as the impact of pension non-service costs. These items are not incurred in all periods, the size of these items is difficult to predict, and none of these items are indicative of the operations of the underlying businesses. We believe that non-GAAP financial measures that exclude these items provide investors with an alternative metric that can assist in predicting future earnings and profitability that are complementary to GAAP metrics.
- "Adjusted EBITDA" adds back to net income: net interest expense, income tax expense, depreciation and amortization, miscellaneous (income) expense, net, and Special Items including transaction related expenses. "Adjusted EBITDA Margin" is calculated as adjusted EBITDA divided by net sales. We believe that adjusted EBITDA and adjusted EBITDA margin provide investors with an alternative metric that may be a meaningful indicator of our performance and provides useful information to investors regarding our financial conditions and results of operations that is complementary to GAAP metrics.
- “Free Cash Flow” and “Adjusted Free Cash Flow” provide supplemental information to assist management and investors in analyzing the Company’s ability to generate liquidity from its operating activities. The measure of free cash flow does not take into consideration certain other non-discretionary cash requirements such as, for example, mandatory principal payments on the Company’s long-term debt. Free Cash Flow is calculated as cash provided by operating activities less capital spending. Adjusted Free Cash Flow is calculated as Free Cash Flow adjusted for certain cash items which we believe may complicate the interpretation of the Company’s underlying free cash flow performance such as certain transaction related cash flow items related to the separation transaction. These items are not incurred in all periods, the size of these items is difficult to predict, and none of these items are indicative of the operations of the underlying businesses. We believe that non-GAAP financial measures that exclude these items provide investors with an alternative metric that can assist in predicting future cash flows that are complementary to GAAP metrics.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241028606945/en/
Jason D. Feldman
Senior Vice President, Investor Relations, Treasury & Tax
Allison Poliniak-Cusic
Vice President, Investor Relations
IR@craneco.com
www.craneco.com
Source: Crane Company
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