EX-99.2 3 dex992.htm CRANE CO. QUARTERLY FINANCIAL DATA SUPPLEMENT Crane Co. Quarterly Financial Data Supplement

Exhibit 99.2

CRANE CO.

Income Statement Data

(in thousands, except per share data)

 

     Three Months Ended
March 31,		  
     2008     2007  

Net Sales:

     

Aerospace & Electronics

    $ 158,451     $ 148,392  

Engineered Materials

      82,773       87,748  

Merchandising Systems

      113,504       97,364  

Fluid Handling

      288,500       262,951  

Controls

      35,640       31,762  
                

Total Net Sales

    $ 678,868     $ 628,217  
                

Operating Profit:

     

Aerospace & Electronics

    $ 15,995     $ 21,026  

Engineered Materials

      11,654       16,038  

Merchandising Systems

      14,138       9,631  

Fluid Handling

      44,762       31,141  

Controls

      1,300       2,346  

Corporate

      (12,500 )     (11,783 )
                

Total Operating Profit

      75,349       68,399  

Interest Income

      2,284       1,313  

Interest Expense

      (6,505 )     (6,868 )

Miscellaneous- Net

      330       1,813  
                

Income Before Income Taxes

      71,458       64,657  

Provision for Income Taxes

      23,080       21,012  
                

Net Income

    $ 48,378     $ 43,645  
                

Share Data:

     

Net Income per Diluted Share

    $ 0.79     $ 0.71  
                

Average Diluted Shares Outstanding

      60,955       61,207  

Average Basic Shares Outstanding

      60,040       60,209  

Supplemental Data:

     

Cost of Sales

    $ 452,531     $ 423,683  

Selling, General & Administrative

      150,988       136,135  

Depreciation and Amortization *

      14,983       15,576  

Stock-Based Compensation Expense

      3,615       4,304  

 

* Amount included within cost of sales and selling, general & administrative costs.

CRANE CO.

Condensed Balance Sheets

(in thousands)

 

     March 31,
2008		    December 31,
2007

ASSETS

      

Current Assets

      

Cash and Cash Equivalents

    $ 294,728    $ 283,370

Accounts Receivable, net

      373,792      345,176

Current Insurance Receivable—Asbestos

      33,600      33,600

Inventories, net

      344,563      327,719

Other Current Assets

      57,735      47,757
             

Total Current Assets

      1,104,418      1,037,622

Property, Plant and Equipment, net

      292,029      289,683

Long-Term Insurance Receivable—Asbestos

      293,940      306,557

Other Assets

      448,159      476,880

Goodwill

      769,106      766,550
             

Total Assets

    $ 2,907,652    $ 2,877,292
             

LIABILITIES AND SHAREHOLDERS’ EQUITY

      

Current Liabilities

      

Notes Payable and Current Maturities of Long-Term Debt

    $ 9,613    $ 548

Accounts Payable

      197,936      177,978

Current Asbestos Liability

      84,000      84,000

Accrued Liabilities

      221,450      230,295

Income Taxes

      2,291      731
             

Total Current Liabilities

      515,290      493,552

Long-Term Debt

      398,345      398,301

Long-Term Deferred Tax Liability

      32,593      31,880

Long-Term Asbestos Liability

      928,098      942,776

Other Liabilities

      114,366      117,586

Minority Interest

      8,469      8,394

Shareholders’ Equity

      910,491      884,803
             

Total Liabilities and Shareholders’ Equity

    $ 2,907,652    $ 2,877,292
             

CRANE CO.

Condensed Statements of Cash Flows

(in thousands)

 

     Three Months Ended
March 31,		  
     2008     2007  

Operating Activities:

     

Net income

    $ 48,378     $ 43,645  

Income from joint venture

      —         (1,017 )

Depreciation and amortization

      14,983       15,576  

Stock-based compensation expense

      3,615       4,304  

Deferred income taxes

      6,097       (9,819 )

Cash used for operating working capital

      (29,834 )     (25,648 )

Other

      2,951       (11,332 )
                

Subtotal

      46,190       15,709  

Asbestos related payments, net of insurance recoveries

      (2,061 )     21,180  
                

Total provided by operating activities

      44,129       36,889  
                

Investing Activities:

     

Capital expenditures

      (9,080 )     (6,963 )

Proceeds from disposition of capital assets

      676       11,032  

Payment for acquisition, net of cash acquired

      (85 )     (5 )

Proceeds from divestiture

      506       —    
                

Total (used for) provided by investing activities

      (7,983 )     4,064  
                

Financing Activities:

     

Dividends paid

      (10,795 )     (9,050 )

Reacquisition of shares on open market

      (40,000 )     (40,001 )

Stock options exercised—net of shares reacquired

      3,556       (387 )

Excess tax benefit from stock-based compensation

      107       690  

Increase in short-term debt

      9,037       1,733  
                

Total used for financing activities

      (38,095 )     (47,015 )
                

Effect of exchange rate on cash and cash equivalents

      13,307       1,376  
                

Increase (decrease) in cash and cash equivalents

      11,358       (4,686 )

Cash and cash equivalents at beginning of period

      283,370       138,607  
                

Cash and cash equivalents at end of period

    $ 294,728     $ 133,921  
                

CRANE CO.

Order Backlog

(in thousands)

 

     March 31,
2008		    December 31,
2007		    March 31,
2007

Aerospace & Electronics

    $ 407,398    $ 392,822    $ 405,792

Engineered Materials

      15,941      14,802      17,437

Merchandising Systems

      42,551      34,093      33,231

Fluid Handling

      268,302      242,591      237,144

Controls

      34,464      35,273      33,224
                    

Total Backlog

    $ 768,656    $ 719,581    $ 726,828
                    

CRANE CO.

Non-GAAP Financial Measures

(in thousands)

 

     March 31,
2008		     December 31,
2007		  
BALANCE SHEET ITEMS     

Notes Payable and Current Maturities of Long-Term Debt

    $ 9,613     $ 548  

Long-Term Debt

      398,345       398,301  
                

Total Debt

      407,958       398,849  

Less: Cash and Cash Equivalents

      (294,728 )     (283,370 )
                

Net Debt

      113,230       115,479  

Shareholders’ Equity

      910,491       884,803  
                

Net Capitalization

    $ 1,023,721     $ 1,000,282  
                

Percentage of Net Debt to Net Capitalization

      11.1 %     11.5 %

 

     Three Months Ended
March 31,		     Year Ended
December 31,		  
     2008     2007     2008     2007  
                 (Estimated)        
CASH FLOW ITEMS         

Cash Provided from Operating Activities before Asbestos—Related Payments

    $ 46,190     $ 15,709     275,000     $ 243,031  

Asbestos Related Payments, Net of Insurance Recoveries

      (2,061 )     (10,320 )   (55,000 )     (41,698 )

Equitas Receipts

      —         31,500     —         31,500  
                              

Cash Provided from Operating Activities

      44,129       36,889     220,000       232,833  

Less: Capital Expenditures

      (9,080 )     (6,963 )   (50,000 )     (47,169 )
                              

Free Cash Flow

    $ 35,049     $ 29,926     170,000     $ 185,664  
                              

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

The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that non-GAAP financial measures which exclude certain non-recurring items present additional useful comparisons between current results and results in prior operating periods, providing investors with a clearer view of the underlying trends of the business. Management also uses these non-GAAP financial measures in making financial, operating, planning and compensation decisions and in evaluating the Company’s performance. In addition, Free Cash Flow provides supplemental information to assist management and investors in analyzing the Company’s ability to generate positive cash flow. Non-GAAP financial measures, which may be inconsistent with similarly captioned measures presented by other companies, should be viewed in addition to, and not as a substitute for, the Company’s reported results prepared in accordance with GAAP.