NEWS RELEASE
Flowserve Corporation Reports Second Quarter 2020 Results
07/30/20
- Strong Adjusted EPS performance, up 152% sequentially and flat with prior year
- Sequential and year-over-year adjusted operating margin expansion through solid execution and cost actions
-
Executing ahead of plan on
$100 million of annual cost reduction actions
-
Continued progress on
Flowserve 2.0 transformation efforts and COVID-19 response measures
- Expect second half 2020 Adjusted EPS performance to exceed first half levels
Second Quarter 2020 Highlights (all comparisons to the 2019 second quarter, unless otherwise noted)
-
Reported Earnings Per Share (EPS) of
$0.07 and Adjusted EPS[1] of$0.53 , up 152% sequentially and a penny below prior year-
Reported EPS includes after-tax adjusted items of approximately
$60.2 million , including realignment, transformation and below-the-line foreign exchange impacts
-
Reported EPS includes after-tax adjusted items of approximately
-
Total bookings were
$808.3 million , down 26.9%, or 25.1% on a constant currency basis-
Original equipment bookings were
$365.6 million , or 45% of total bookings, down 38.7%, or 37.3% on a constant currency basis -
Aftermarket bookings were
$442.7 million , or 55% of total bookings, down 12.9%, or 10.7% on a constant currency basis
-
Original equipment bookings were
-
Sales were
$925.0 million , down 6.6%, or 4.2% on a constant currency basis-
Original equipment sales were
$462.8 million , down 6.1%, or 3.3% on a constant currency basis -
Aftermarket sales were
$462.2 million , down 7.1%, or 5.0% on a constant currency basis
-
Original equipment sales were
-
Reported gross and operating margins were 28.9% and 4.6%, respectively
- Adjusted gross and operating margins[2] were 32.1% and 11.6%, respectively
-
Backlog at
June 30, 2020 was$2.1 billion , down 5.3% sequentially
“We delivered a resilient financial performance this quarter, including strong sequential adjusted EPS and margin growth, in the face of a global pandemic and the volatility in energy-related markets,” said
“The Flowserve 2.0 transformation journey to create a more efficient and flexible operating model, as well as improve the health of the organization, positioned us to quickly assess the downturn and accelerate decisive cost actions in the second quarter,” added Rowe. “We believe these actions will enable us to achieve, or exceed, the full year cost savings target of
Outlook
Rowe concluded, “Looking forward, we expect to build on the momentum of the second quarter as we execute on our
As announced on
Second Quarter 2020 Results Conference Call
[1] See Reconciliation of Non-GAAP Measures table for detailed reconciliation of reported results to adjusted measures.
[2] Adjusted gross and operating margins are calculated by dividing adjusted gross profit and adjusted operating income, respectively, by revenues. Adjusted gross profit and adjusted operating income are derived by excluding the adjusted items. See reconciliation of Non-GAAP Measures table for detailed reconciliation.
About
Safe Harbor Statement: This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Words or phrases such as, "may," "should," "expects," "could," "intends," "plans," "anticipates," "estimates," "believes," "forecasts," "predicts" or other similar expressions are intended to identify forward-looking statements, which include, without limitation, earnings forecasts, statements relating to our business strategy and statements of expectations, beliefs, future plans and strategies and anticipated developments concerning our industry, business, operations and financial performance and condition.
The forward-looking statements included in this news release are based on our current expectations, projections, estimates and assumptions. These statements are only predictions, not guarantees. Such forward-looking statements are subject to numerous risks and uncertainties that are difficult to predict. These risks and uncertainties may cause actual results to differ materially from what is forecast in such forward-looking statements, and include, without limitation, the following: the impact of the global outbreak of COVID-19 on our business and operations; a portion of our bookings may not lead to completed sales, and our ability to convert bookings into revenues at acceptable profit margins; changes in global economic conditions and the potential for unexpected cancellations or delays of customer orders in our reported backlog; our dependence on our customers’ ability to make required capital investment and maintenance expenditures; if we are not able to successfully execute and realize the expected financial benefits from our strategic transformation and realignment initiatives, our business could be adversely affected; risks associated with cost overruns on fixed-fee projects and in taking customer orders for large complex custom engineered products; the substantial dependence of our sales on the success of the oil and gas, chemical, power generation and water management industries; the adverse impact of volatile raw materials prices on our products and operating margins; economic, political and other risks associated with our international operations, including military actions, trade embargoes, epidemics or pandemics or changes to tariffs or trade agreements that could affect customer markets, particularly North African, Russian and Middle Eastern markets and global oil and gas producers, and non-compliance with
All forward-looking statements included in this news release are based on information available to us on the date hereof, and we assume no obligation to update any forward-looking statement.
The Company reports its financial results in accordance with
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
||||||
(Unaudited) | ||||||
Three Months Ended |
||||||
(Amounts in thousands, except per share data) |
2020 |
2019 |
||||
Sales |
$ |
924,965 |
$ |
990,084 |
||
Cost of sales |
|
(657,805) |
|
(672,051) |
||
Gross profit |
|
267,160 |
|
318,033 |
||
Selling, general and administrative expense |
|
(227,358) |
|
(223,676) |
||
Net earnings from affiliates |
|
3,086 |
|
3,661 |
||
Operating income |
|
42,888 |
|
98,018 |
||
Interest expense |
|
(12,900) |
|
(14,013) |
||
Interest income |
|
1,149 |
|
2,218 |
||
Other income (expense), net |
|
(14,941) |
|
(3,336) |
||
Earnings before income taxes |
|
16,196 |
|
82,887 |
||
Provision for income taxes |
|
(5,409) |
|
(22,413) |
||
Net earnings, including noncontrolling interests |
|
10,787 |
|
60,474 |
||
Less: Net earnings attributable to noncontrolling interests |
|
(2,142) |
|
(2,302) |
||
Net earnings attributable to |
$ |
8,645 |
$ |
58,172 |
||
Net earnings per share attributable to |
||||||
Basic |
$ |
0.07 |
$ |
0.44 |
||
Diluted |
|
0.07 |
|
0.44 |
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||
(Unaudited) | |||||||||||
Three Months Ended |
|||||||||||
(Amounts in thousands, except per share data) | As Reported (a) | Realignment (1) | Other Items | As Adjusted | |||||||
Sales |
$ |
924,965 |
$ |
- |
$ |
- |
$ |
924,965 |
|||
Gross profit |
|
267,160 |
|
(29,853) |
|
- |
|
297,013 |
|||
Gross margin |
|
28.9% |
|
- |
|
- |
|
32.1% |
|||
Selling, general and administrative expense |
|
(227,358) |
|
(28,630) |
|
(5,618) |
(3) |
|
(193,110) |
||
Operating income |
|
42,888 |
|
(58,483) |
|
(5,618) |
|
106,989 |
|||
Operating income as a percentage of sales |
|
4.6% |
|
- |
|
- |
|
11.6% |
|||
Interest and other expense, net |
|
(26,692) |
|
- |
|
(14,072) |
(4) |
|
(12,620) |
||
Earnings before income taxes |
|
16,196 |
|
(58,483) |
|
(19,690) |
|
94,369 |
|||
Provision for income taxes |
|
(5,409) |
|
10,736 |
(2) |
|
7,189 |
(5) |
|
(23,334) |
|
Tax Rate |
|
33.4% |
|
18.4% |
|
36.5% |
|
24.7% |
|||
Net earnings attributable to |
$ |
8,645 |
$ |
(47,747) |
$ |
(12,501) |
$ |
68,893 |
|||
Net earnings per share attributable to |
|||||||||||
Basic |
$ |
0.07 |
$ |
(0.37) |
$ |
(0.10) |
$ |
0.53 |
|||
Diluted |
|
0.07 |
|
(0.37) |
|
(0.10) |
|
0.53 |
|||
Basic number of shares used for calculation |
|
130,170 |
|
130,170 |
|
130,170 |
|
130,170 |
|||
Diluted number of shares used for calculation |
|
130,730 |
|
130,730 |
|
130,730 |
|
130,730 |
|||
(a) Reported in conformity with |
|||||||||||
Notes: | |||||||||||
(1) Represents realignment expense incurred as a result of realignment programs. | |||||||||||
(2) Includes tax impact of items above. | |||||||||||
(3) Represents Flowserve 2.0 transformation efforts. | |||||||||||
(4) Represents below-the-line foreign exchange impacts. | |||||||||||
(5) Includes tax impact of items above. |
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||
(Unaudited) | |||||||||||
Three Months Ended |
|||||||||||
(Amounts in thousands, except per share data) | As Reported (a) | Realignment (1) | Other Items | As Adjusted | |||||||
Sales |
$ |
990,084 |
$ |
- |
$ |
- |
$ |
990,084 |
|||
Gross profit |
|
318,033 |
|
(3,863) |
|
- |
|
321,896 |
|||
Gross margin |
|
32.1% |
|
- |
|
- |
|
32.5% |
|||
Selling, general and administrative expense |
|
(223,676) |
|
(2,437) |
|
(7,573) |
(3) |
|
(213,666) |
||
Operating income |
|
98,018 |
|
(6,300) |
|
(7,573) |
|
111,891 |
|||
Operating income as a percentage of sales |
|
9.9% |
|
- |
|
- |
|
11.3% |
|||
Interest and other expense, net |
|
(15,131) |
|
- |
|
(3,079) |
(4) |
|
(12,052) |
||
Earnings before income taxes |
|
82,887 |
|
(6,300) |
|
(10,652) |
|
99,839 |
|||
Provision for income taxes |
|
(22,413) |
|
980 |
(2) |
|
2,552 |
(5) |
|
(25,945) |
|
Tax Rate |
|
27.0% |
|
15.6% |
|
24.0% |
|
26.0% |
|||
Net earnings attributable to |
$ |
58,172 |
$ |
(5,320) |
$ |
(8,100) |
$ |
71,592 |
|||
Net earnings per share attributable to |
|||||||||||
Basic |
$ |
0.44 |
$ |
(0.04) |
$ |
(0.06) |
$ |
0.55 |
|||
Diluted |
|
0.44 |
|
(0.04) |
|
(0.06) |
|
0.54 |
|||
Basic number of shares used for calculation |
|
131,147 |
|
131,147 |
|
131,147 |
|
131,147 |
|||
Diluted number of shares used for calculation |
|
131,754 |
|
131,754 |
|
131,754 |
|
131,754 |
|||
(a) Reported in conformity with |
|||||||||||
Notes: | |||||||||||
(1) Represents realignment expense incurred as a result of realignment programs. | |||||||||||
(2) Includes tax impact of items above. | |||||||||||
(3) Represents Flowserve 2.0 transformation efforts. | |||||||||||
(4) Represents below-the-line foreign exchange impacts. | |||||||||||
(5) Includes tax impact of items above. |
SEGMENT INFORMATION | ||||||
(Unaudited) | ||||||
FLOWSERVE PUMP DIVISION | Three Months Ended |
|||||
(Amounts in millions, except percentages) |
2020 |
2019 |
||||
Bookings |
$ |
536.5 |
$ |
761.9 |
||
Sales |
|
674.1 |
|
674.6 |
||
Gross profit |
|
198.0 |
|
222.7 |
||
Gross profit margin |
|
29.4% |
|
33.0% |
||
SG&A |
|
140.6 |
|
150.2 |
||
Segment operating income |
|
60.4 |
|
76.2 |
||
Segment operating income as a percentage of sales |
|
9.0% |
|
11.3% |
||
FLOW CONTROL DIVISION | Three Months Ended |
|||||
(Amounts in millions, except percentages) |
2020 |
2019 |
||||
Bookings |
$ |
274.6 |
$ |
346.4 |
||
Sales |
|
252.2 |
|
316.9 |
||
Gross profit |
|
73.6 |
|
99.4 |
||
Gross profit margin |
|
29.2% |
|
31.4% |
||
SG&A |
|
50.0 |
|
53.3 |
||
Segment operating income |
|
23.6 |
|
46.2 |
||
Segment operating income as a percentage of sales |
|
9.4% |
|
14.6% |
CONSOLIDATED STATEMENTS OF INCOME | ||||||
(Unaudited) | ||||||
Six Months Ended |
||||||
(Amounts in thousands, except per share data) |
2020 |
2019 |
||||
Sales |
$ |
1,819,422 |
$ |
1,880,135 |
||
Cost of sales |
|
(1,286,285) |
|
(1,268,026) |
||
Gross profit |
|
533,137 |
|
612,109 |
||
Selling, general and administrative expense |
|
(470,980) |
|
(428,830) |
||
Net earnings from affiliates |
|
6,283 |
|
5,970 |
||
Operating income |
|
68,440 |
|
189,249 |
||
Interest expense |
|
(25,863) |
|
(28,044) |
||
Interest income |
|
2,898 |
|
4,241 |
||
Other income (expense), net |
|
8,521 |
|
(6,476) |
||
Earnings before income taxes |
|
53,996 |
|
158,970 |
||
Provision for income taxes |
|
(41,719) |
|
(38,999) |
||
Net earnings, including noncontrolling interests |
|
12,277 |
|
119,971 |
||
Less: Net earnings attributable to noncontrolling interests |
|
(4,242) |
|
(4,538) |
||
Net earnings attributable to |
$ |
8,035 |
$ |
115,433 |
||
Net earnings per share attributable to |
||||||
Basic |
$ |
0.06 |
$ |
0.88 |
||
Diluted |
|
0.06 |
|
0.88 |
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||
(Unaudited) | |||||||||||
Six Months Ended |
|||||||||||
(Amounts in thousands, except per share data) | As Reported (a) | Realignment (1) | Other Items | As Adjusted | |||||||
Sales |
$ |
1,819,422 |
$ |
- |
$ |
- |
$ |
1,819,422 |
|||
Gross profit |
|
533,137 |
|
(39,313) |
|
- |
|
572,450 |
|||
Gross margin |
|
29.3% |
|
- |
|
- |
|
31.5% |
|||
Selling, general and administrative expense |
|
(470,980) |
|
(29,908) |
|
(21,701) |
(3) |
|
(419,371) |
||
Operating income |
|
68,440 |
|
(69,221) |
|
(21,701) |
|
159,362 |
|||
Operating income as a percentage of sales |
|
3.8% |
|
- |
|
- |
|
8.8% |
|||
Interest and other expense, net |
|
(14,444) |
|
- |
|
11,581 |
(4) |
|
(26,025) |
||
Earnings before income taxes |
|
53,996 |
|
(69,221) |
|
(10,120) |
|
133,337 |
|||
Provision for income taxes |
|
(41,719) |
|
11,698 |
(2) |
|
(20,531) |
(5) |
|
(32,886) |
|
Tax Rate |
|
77.3% |
|
16.9% |
|
-202.9% |
|
24.7% |
|||
Net earnings attributable to |
$ |
8,035 |
$ |
(57,523) |
$ |
(30,651) |
$ |
96,209 |
|||
Net earnings per share attributable to |
|||||||||||
Basic |
$ |
0.06 |
$ |
(0.44) |
$ |
(0.23) |
$ |
0.74 |
|||
Diluted |
|
0.06 |
|
(0.44) |
|
(0.23) |
|
0.73 |
|||
Basic number of shares used for calculation |
|
130,462 |
|
130,462 |
|
130,462 |
|
130,462 |
|||
Diluted number of shares used for calculation |
|
131,152 |
|
131,152 |
|
131,152 |
|
131,152 |
|||
(a) Reported in conformity with |
|||||||||||
Notes: | |||||||||||
(1) Represents realignment expense incurred as a result of realignment programs. | |||||||||||
(2) Includes tax impact of items above. | |||||||||||
(3) Includes |
|||||||||||
(4) Represents below-the-line foreign exchange impacts. | |||||||||||
(5) Includes tax impact of items above, |
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||
(Unaudited) | |||||||||||
Six Months Ended |
|||||||||||
(Amounts in thousands, except per share data) | As Reported (a) | Realignment (1) | Other Items | As Adjusted | |||||||
Sales |
$ |
1,880,135 |
$ |
- |
$ |
- |
$ |
1,880,135 |
|||
Gross profit |
|
612,109 |
|
(9,363) |
|
- |
|
621,472 |
|||
Gross margin |
|
32.6% |
|
- |
|
- |
|
33.1% |
|||
Selling, general and administrative expense |
|
(428,830) |
|
14,993 |
|
(15,986) |
(3) |
|
(427,837) |
||
Operating income |
|
189,249 |
|
5,630 |
|
(15,986) |
|
199,605 |
|||
Operating income as a percentage of sales |
|
10.1% |
|
- |
|
- |
|
10.6% |
|||
Interest and other expense, net |
|
(30,279) |
|
- |
|
(5,786) |
(4) |
|
(24,493) |
||
Earnings before income taxes |
|
158,970 |
|
5,630 |
|
(21,772) |
|
175,112 |
|||
Provision for income taxes |
|
(39,000) |
|
961 |
(2) |
|
5,263 |
(5) |
|
(45,224) |
|
Tax Rate |
|
24.5% |
|
-17.1% |
|
24.2% |
|
25.8% |
|||
Net earnings attributable to |
$ |
115,433 |
$ |
6,591 |
$ |
(16,509) |
$ |
125,351 |
|||
Net earnings per share attributable to |
|||||||||||
Basic |
$ |
0.88 |
$ |
0.05 |
$ |
(0.13) |
$ |
0.96 |
|||
Diluted |
|
0.88 |
|
0.05 |
|
(0.13) |
|
0.95 |
|||
Basic number of shares used for calculation |
|
131,065 |
|
131,065 |
|
131,065 |
|
131,065 |
|||
Diluted number of shares used for calculation |
|
131,643 |
|
131,643 |
|
131,643 |
|
131,643 |
|||
(a) Reported in conformity with |
|||||||||||
Notes: | |||||||||||
(1) Represents realignment (expense) income incurred as a result of realignment programs. Income in selling, general and administrative due to gains from the sales of non-strategic manufacturing facilities that are included in our Realignment Programs. | |||||||||||
(2) Includes tax impact of items above. | |||||||||||
(3) Represents Flowserve 2.0 transformation efforts. | |||||||||||
(4) Represents below-the-line foreign exchange impacts. | |||||||||||
(5) Includes tax impact of items above. |
SEGMENT INFORMATION | ||||||
(Unaudited) | ||||||
FLOWSERVE PUMP DIVISION | Six Months Ended |
|||||
(Amounts in millions, except percentages) |
2020 |
2019 |
||||
Bookings |
$ |
1,220.1 |
$ |
1,512.0 |
||
Sales |
|
1,309.7 |
|
1,284.0 |
||
Gross profit |
|
393.7 |
|
423.3 |
||
Gross profit margin |
|
30.1% |
|
33.0% |
||
SG&A |
|
299.9 |
|
272.6 |
||
Segment operating income |
|
100.1 |
|
156.6 |
||
Segment operating income as a percentage of sales |
|
7.6% |
|
12.2% |
||
FLOW CONTROL DIVISION | Six Months Ended |
|||||
(Amounts in millions, except percentages) |
2020 |
2019 |
||||
Bookings |
$ |
570.8 |
$ |
659.6 |
||
Sales |
|
512.6 |
|
599.1 |
||
Gross profit |
|
147.9 |
|
197.2 |
||
Gross profit margin |
|
28.9% |
|
32.9% |
||
SG&A |
|
107.6 |
|
106.6 |
||
Segment operating income |
|
40.3 |
|
90.6 |
||
Segment operating income as a percentage of sales |
|
7.9% |
|
15.1% |
Second Quarter and Year-to-Date 2020 - Segment Results |
|||||||
(dollars in millions, comparison vs. 2019 second quarter and year-to-date, unaudited) | |||||||
FPD | FCD | ||||||
2nd Qtr | YTD | 2nd Qtr | YTD | ||||
Bookings |
|
|
|
|
|||
- vs. prior year |
-29.6% |
-19.3% |
-20.7% |
-13.5% |
|||
- on constant currency |
-27.7% |
-17.4% |
-19.1% |
-11.8% |
|||
Sales |
|
|
|
|
|||
- vs. prior year |
-0.1% |
2.0% |
-20.4% |
-14.4% |
|||
- on constant currency |
2.8% |
4.4% |
-19.1% |
-13.1% |
|||
Gross Profit |
|
|
|
|
|||
- vs. prior year |
-11.1% |
-7.0% |
-26.0% |
-25.0% |
|||
Gross Margin (% of sales) |
29.4% |
30.1% |
29.2% |
28.9% |
|||
- vs. prior year (in basis points) | (360) bps | (290) bps | (220) bps | (400) bps | |||
Operating Income |
|
|
|
|
|||
- vs. prior year |
-20.7% |
-36.1% |
-48.9% |
-55.5% |
|||
- on constant currency |
-14.8% |
-32.6% |
-47.9% |
-55.2% |
|||
Operating Margin (% of sales) |
9.0% |
7.6% |
9.4% |
7.9% |
|||
- vs. prior year (in basis points) | (230) bps | (460) bps | (520) bps | (720) bps | |||
Adjusted Operating Income * |
|
|
|
|
|||
- vs. prior year |
14.6% |
-3.1% |
-27.6% |
-34.5% |
|||
- on constant currency |
20.0% |
0.6% |
-26.7% |
-34.2% |
|||
Adj. Oper. Margin (% of sales)* |
13.9% |
11.0% |
13.3% |
11.7% |
|||
- vs. prior year (in basis points) | 180 bps | (60) bps | (130) bps | (360) bps | |||
Backlog |
|
|
|||||
* Adjusted Operating Income and Adjusted Operating Margin exclude realignment charges | |||||||
and other specific discrete items |
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||
(Unaudited) | |||||
(Amounts in thousands, except par value) |
2020 |
2019 |
|||
ASSETS | |||||
Current assets: | |||||
Cash and cash equivalents |
$ |
561,705 |
$ |
670,980 |
|
Accounts receivable, net of allowance for expected credit losses of |
|
759,381 |
|
795,538 |
|
Contract assets, net of allowance for expected credit losses of |
|
309,149 |
|
272,914 |
|
Inventories, net |
|
684,431 |
|
660,837 |
|
Prepaid expenses and other |
|
115,889 |
|
105,101 |
|
Total current assets |
|
2,430,555 |
|
2,505,370 |
|
Property, plant and equipment, net of accumulated depreciation of |
|
541,768 |
|
572,175 |
|
Operating lease right-of-use assets, net |
|
173,212 |
|
186,218 |
|
|
1,187,735 |
|
1,193,010 |
||
Deferred taxes |
|
31,119 |
|
54,879 |
|
Other intangible assets, net |
|
172,709 |
|
180,805 |
|
Other assets, net of allowance for expected credit losses of |
|
218,604 |
|
227,185 |
|
Total assets |
$ |
4,755,702 |
$ |
4,919,642 |
|
LIABILITIES AND EQUITY | |||||
Current liabilities: | |||||
Accounts payable |
$ |
428,856 |
$ |
447,582 |
|
Accrued liabilities |
|
401,041 |
|
401,385 |
|
Contract liabilities |
|
214,135 |
|
216,541 |
|
Debt due within one year |
|
9,058 |
|
11,272 |
|
Operating lease liabilities |
|
35,648 |
|
36,108 |
|
Total current liabilities |
|
1,088,738 |
|
1,112,888 |
|
Long-term debt due after one year |
|
1,367,478 |
|
1,365,977 |
|
Operating lease liabilities |
|
138,735 |
|
151,523 |
|
Retirement obligations and other liabilities |
|
470,400 |
|
473,295 |
|
Shareholders’ equity: | |||||
Common shares, |
|
220,991 |
|
220,991 |
|
Shares authorized – 305,000 | |||||
Shares issued – 176,793 | |||||
Capital in excess of par value |
|
499,152 |
|
501,045 |
|
Retained earnings |
|
3,643,868 |
|
3,695,862 |
|
|
(2,064,302) |
|
(2,051,583) |
||
Deferred compensation obligation |
|
6,036 |
|
8,334 |
|
Accumulated other comprehensive loss |
|
(643,173) |
|
(584,292) |
|
|
1,662,572 |
|
1,790,357 |
||
Noncontrolling interests |
|
27,779 |
|
25,602 |
|
Total equity |
|
1,690,351 |
|
1,815,959 |
|
Total liabilities and equity |
$ |
4,755,702 |
$ |
4,919,642 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||
(Unaudited) | ||||||
Six Months Ended |
||||||
(Amounts in thousands) |
2020 |
2019 |
||||
Cash flows – Operating activities: | ||||||
Net earnings, including noncontrolling interests |
$ |
12,277 |
$ |
119,971 |
||
Adjustments to reconcile net earnings to net cash provided (used) by operating activities: | ||||||
Depreciation |
|
43,350 |
|
46,666 |
||
Amortization of intangible and other assets |
|
6,136 |
|
8,003 |
||
Stock-based compensation |
|
18,475 |
|
15,354 |
||
Foreign currency, asset write downs and other non-cash adjustments |
|
21,739 |
|
(20,206) |
||
Change in assets and liabilities: | ||||||
Accounts receivable, net |
|
858 |
|
(13,445) |
||
Inventories, net |
|
(36,575) |
|
(47,610) |
||
Contract assets, net |
|
(44,229) |
|
12,432 |
||
Prepaid expenses and other assets, net |
|
(9,341) |
|
4,949 |
||
Accounts payable |
|
(9,139) |
|
(20,660) |
||
Contract liabilities |
|
3,468 |
|
6,744 |
||
Accrued liabilities and income taxes payable |
|
5,787 |
|
(56,935) |
||
Retirement obligations and other |
|
13,618 |
|
(6,824) |
||
Net deferred taxes |
|
(5,193) |
|
911 |
||
Net cash flows provided (used) by operating activities |
|
21,231 |
|
49,350 |
||
Cash flows – Investing activities: | ||||||
Capital expenditures |
|
(31,971) |
|
(25,267) |
||
Proceeds from disposal of assets and other |
|
10,810 |
|
40,302 |
||
Net cash flows provided (used) by investing activities |
|
(21,161) |
|
15,035 |
||
Cash flows – Financing activities: | ||||||
Payments on long-term debt |
|
- |
|
(30,000) |
||
Proceeds under other financing arrangements |
|
1,477 |
|
1,699 |
||
Payments under other financing arrangements |
|
(2,497) |
|
(5,124) |
||
Repurchases of common shares |
|
(32,112) |
|
- |
||
Payments related to tax withholding for stock-based compensation |
|
(3,850) |
|
(3,441) |
||
Payments of dividends |
|
(52,054) |
|
(49,772) |
||
Other |
|
(2,845) |
|
(190) |
||
Net cash flows provided (used) by financing activities |
|
(91,881) |
|
(86,828) |
||
Effect of exchange rate changes on cash |
|
(17,464) |
|
(770) |
||
Net change in cash and cash equivalents |
|
(109,275) |
|
(23,213) |
||
Cash and cash equivalents at beginning of period |
|
670,980 |
|
619,683 |
||
Cash and cash equivalents at end of period |
$ |
561,705 |
$ |
596,470 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20200730005901/en/
Investor Contacts:
Media Contact:
Source: