CIR CIRCOR International Inc

CIRCOR International, Inc. (NYSE: CIR), a leading provider of valves and other highly engineered products for the energy, aerospace and industrial markets, today announced financial results for the fourth quarter and year ended December 31, 2011.

“We delivered another strong quarter of revenue growth and profitability,” said Chairman and Chief Executive Officer Bill Higgins. “Consistent with our guidance, revenues increased 12% year-over-year with all three segments contributing, and adjusted EPS was up 11% excluding the impact of Leslie asbestos and bankruptcy.”

Higgins continued, “As we look back at 2011, we accomplished key strategic plan initiatives:

• Permanently resolved the Leslie asbestos liability
• Won large programs in Aerospace with potential value of more than $200 million
• Expanded margins in the Flow Technology segment for the third consecutive year
• Acquired a valve business in Brazil to service Petrobras and the energy markets
• Began construction of a manufacturing plant in India to serve the power generation market

These milestones are key to our strategy, which includes growing in high-growth markets and expanding our product and service offerings into higher-margin, critical applications.”

Consolidated Results

Revenues for the fourth quarter of 2011 were $217.1 million, a 12% increase from $194.1 million in the fourth quarter of 2010. CIRCOR reported net income for the fourth quarter of 2011 of $10.3 million, or $0.59 per diluted share, compared with net income of $7.7 million, or $0.44 per diluted share, for the fourth quarter of 2010. Excluding Leslie asbestos and bankruptcy charges, net of tax, adjusted earnings per diluted share for the fourth quarter of 2011 and 2010 were $0.59 and $0.53, respectively.

Consolidated adjusted operating earnings, which exclude Leslie asbestos and bankruptcy charges, rose 15% to $15.0 million for the fourth quarter of 2011 from $13.0 million for the fourth quarter of 2010.

The Company received orders totaling $186.2 million during the fourth quarter of 2011, a decrease of 12% compared with the fourth quarter of 2010, with a decline in Energy, partially offset by growth in Aerospace and Flow. Backlog as of December 31, 2011 was $397.4 million, down 2% from backlog of $404.3 million at December 31, 2010.

During the fourth quarter of 2011, the Company generated $15.2 million of free cash flow (defined as net cash from operating activities less capital expenditures) compared with $16.2 million in the fourth quarter of 2010.

Energy

Energy segment revenues of $110.2 million for the quarter ended December 31, 2011 represent a 22% increase from $90.2 million for the quarter ended December 31, 2010. The increase in revenues year over year was primarily due to organic growth of 19% as a result of strength in the North American short-cycle business and pipeline solutions. The remainder of the revenue increase includes 4% growth from the February 2011 Brazilian energy acquisition, which was partially offset by a negative foreign currency impact of 1%.

Incoming orders for the fourth quarter of 2011 were $86.2 million, a decrease of 29% year over year, due to particularly strong international projects business recorded in the fourth quarter of 2010. Ending backlog totaled $169.3 million, a decrease of 6% year over year.

For the fourth quarter of 2011, the Energy segment adjusted operating margin of 8.4% was up from 6.7% in the fourth quarter of 2010, primarily due to improvements in the short-cycle and pipeline businesses.

Aerospace

Aerospace segment revenues increased by 2% to $36.0 million for the fourth quarter of 2011 from $35.5 million in the fourth quarter of 2010. The increase in Aerospace segment revenues is attributable to 2% organic growth.

Incoming orders for the fourth quarter of 2011 were $35.9 million, an increase of 16% year over year. Orders increased due to a ramp up in commercial aerospace production and an increase in landing gear orders. Ending backlog totaled $158.3 million, an increase of 8% year over year.

The Aerospace segment’s adjusted operating margin was 8.6% for the fourth quarter of 2011, down from 14.1% for the fourth quarter of 2010. Adjusted operating margins decreased primarily due to lower margins in landing gear operations and increased investments for large future programs, partially offset by favorable volume and associated leverage.

Flow Technologies

Flow Technologies segment revenues increased 4% to $70.9 million for the fourth quarter of 2011 from $68.4 million in the fourth quarter of 2010. Fourth-quarter 2011 Flow Technology segment revenues reflected organic growth of 4%.

Incoming orders for this segment were $64.1 million for the fourth quarter of 2011, an increase of 5% year over year. If you exclude the unfavorable impact of LED equipment, which were particularly strong in 2010, Flow orders increased 11%. Ending backlog totaled $69.8 million, a decrease of 10% year over year which was also effected by LED equipment as well as delivery of several large maritime projects.

This segment’s adjusted operating margin for the fourth quarter of 2011 improved to 12.9%, compared with 12.5% in the fourth quarter of 2010, due to volume, pricing and productivity partially offset by power growth investments. For the fourth quarter of 2010, adjusted operating margin excludes the impact of Leslie asbestos and bankruptcy charges.

Financial Outlook

CIRCOR currently expects revenues for the first quarter of 2012 in the range of $198 million to $205 million. Earnings are expected to be in the range of $0.35 to $0.45 per diluted share. As in 2011, CIRCOR expects the second half of 2012 to show an improvement over the first half of the year. CIRCOR’s guidance for earnings per share assumes a 30% tax rate and that exchange rates remain at present levels.

Conference Call Information

CIRCOR International will hold a conference call to review its financial results today, February 23, 2012, at 10:00 a.m. ET. Those who wish to listen to the conference call and view the accompanying presentation slides should visit “Webcasts & Presentations” in the “Investors” portion of the CIRCOR website. The live call also can be accessed by dialing (877) 407-5790 or (201) 689-8328. If you are unable to listen to the live call, the webcast will be archived for one year on the Company’s website.

Use of Non-GAAP Financial Measures

Adjusted net income, adjusted earnings per diluted share, adjusted operating margin, and free cash flow are non-GAAP financial measures and are intended to serve as a complement to results provided in accordance with accounting principles generally accepted in the United States. CIRCOR believes that such information provides an additional measurement and consistent historical comparison of the Company’s performance. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures is available in this news release.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Reliance should not be placed on forward-looking statements because they involve unknown risks, uncertainties and other factors, which are, in some cases, beyond the control of CIRCOR. Any statements in this press release that are not statements of historical fact are forward-looking statements, including, but not limited to, those relating to CIRCOR’s future performance, including first-quarter revenue and earnings guidance. Actual events, performance or results could differ materially from the anticipated events, performance or results expressed or implied by such forward-looking statements. BEFORE MAKING ANY INVESTMENT DECISIONS REGARDING OUR COMPANY, WE STRONGLY ADVISE YOU TO READ THE SECTION ENTITLED "RISK FACTORS" IN OUR MOST RECENT ANNUAL REPORT ON FORM 10-K AND SUBSEQUENT REPORTS ON FORMS 10-Q, WHICH CAN BE ACCESSED UNDER THE "INVESTORS" LINK OF OUR WEBSITE AT WWW.CIRCOR.COM. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

About CIRCOR International, Inc.

CIRCOR International, Inc. designs, manufactures and markets valves and other highly engineered products for the energy, aerospace and industrial markets. With more than 7,000 customers in over 100 countries, CIRCOR has a diversified product portfolio with recognized, market-leading brands. CIRCOR’s culture, built on the CIRCOR Business System, is defined by the Company’s commitment to attracting, developing and retaining the best talent and pursuing continuous improvement in all aspects of its business and operations. The Company’s strategy includes growing organically by investing in new, differentiated products; adding value to component products; and increasing the development of mission-critical subsystems and solutions. CIRCOR also plans to leverage its strong balance sheet to acquire strategically complementary businesses. For more information, visit the Company’s investor relations web site at http://investors.circor.com.

                      CIRCOR INTERNATIONAL, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) UNAUDITED           Three Months Ended   Twelve Months Ended December 31, 2011 December 31, 2010   December 31, 2011   December 31, 2010     Net revenues $ 217,110 $ 194,059 $ 822,349 $ 685,910 Cost of revenues   157,736     140,532     596,954     488,641   GROSS PROFIT 59,374 53,527 225,395 197,269 Selling, general and administrative expenses 44,338 40,483 168,421 149,508 Leslie asbestos and bankruptcy charges   -     2,173     676     32,775   OPERATING INCOME   15,036     10,871     56,298     14,986   Other expense (income): Interest income (99 ) (82 ) (265 ) (244 ) Interest expense 1,138 723 4,195 2,760 Other expense (income), net   342     608     2,172     (39 ) Total other expense   1,381     1,249     6,102     2,477   INCOME BEFORE INCOME TAXES 13,655 9,622 50,196 12,509 Provision (Benefit) for income taxes   3,370     1,890     13,562     (115 ) NET INCOME $ 10,285   $ 7,732   $ 36,634   $ 12,624     Earnings per common share: Basic $ 0.60 $ 0.45 $ 2.12 $ 0.74 Diluted $ 0.59 $ 0.44 $ 2.10 $ 0.73   Weighted average common shares outstanding: Basic 17,280 17,165 17,240 17,137 Diluted 17,435 17,378 17,417 17,297         CIRCOR INTERNATIONAL, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) UNAUDITED         Twelve Months Ended December 31, 2011   December 31, 2010   OPERATING ACTIVITIES Net income $ 36,634 $ 12,624

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

Depreciation 15,085 13,075 Amortization 4,351 4,301 Compensation expense of share-based plans 3,807 3,430 Tax effect of share based compensation (673 ) (189 ) Deferred income taxes 307 (9,869 ) (Gain) loss on disposal of property, plant and equipment (69 ) 315 (Payment) provision for Leslie bankruptcy settlement (76,625 ) 24,974  

Changes in operating assets and liabilities, net of effects from business acquisitions:

Trade accounts receivable (17,862 ) (24,768 ) Inventories (38,588 ) (21,997 ) Prepaid expenses and other assets (22,918 ) 1,721 Accounts payable, accrued expenses and other liabilities   47,718     33,227   Net cash (used in) provided by operating activities   (48,833 )   36,844     INVESTING ACTIVITIES Additions to property, plant and equipment (17,901 ) (14,913 ) Proceeds from the disposal of property, plant and equipment 117 106 Proceeds from the sale of investments 0 21,427 Business acquisitions, net of cash acquired   (20,221 )   (34,401 ) Net cash used in investing activities   (38,005 )   (27,781 )   FINANCING ACTIVITIES Proceeds from borrowings 279,346 88,680 Payments of borrowings (178,905 ) (95,370 ) Debt issuance costs (2,001 ) 0 Dividends paid (2,650 ) (2,643 ) Proceeds from the exercise of stock options 589 529 Tax effect of share based compensation   673     189   Net cash provided by (used in) financing activities   97,052     (8,615 ) Effect of exchange rate changes on cash and cash equivalents   (1,111 )   (1,046 )   INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 9,103 (598 ) Cash and cash equivalents at beginning of year   45,752     46,350   CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 54,855   $ 45,752             CIRCOR INTERNATIONAL, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share data) UNAUDITED             December 31, 2011   December 31, 2010   ASSETS Current Assets: Cash & cash equivalents $ 54,855 $ 45,752 Short-term investments 99 101

Trade accounts receivable, less allowance for doubtful accounts of $1,127 and $822, respectively

156,075 138,860 Inventories 203,777 167,797 Income taxes refundable 0 1,625 Prepaid expenses and other current assets 12,376 5,749 Deferred income tax asset 16,320 20,111 Insurance receivables 0 38 Assets held for sale   542     542 Total Current Assets   444,044     380,575   Property, Plant and Equipment, net 104,434 95,768   Other Assets: Goodwill 77,829 63,175 Intangibles, net 58,442 62,322 Deferred income tax asset 27,949 11,829 Other assets   9,825     2,526 Total Assets $ 722,523   $ 616,195   LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts payable $ 92,493 $ 80,577 Accrued expenses and other current liabilities 63,386 51,248 Accrued compensation and benefits 24,328 22,305 Leslie asbestos and bankruptcy related liabilities 1,000 79,831 Income taxes payable 5,553 38 Notes payable and current portion of long-term debt   8,796     851 Total Current Liabilities   195,556     234,850   Long-Term Debt, net of current portion 96,327 684 Deferred income taxes 11,284 0 Other Non-Current Liabilities 35,271 23,841 Shareholders' Equity:

Preferred stock, $.01 par value; 1,000,000 shares authorized; no shares issued and outstanding

0 0

Common stock, $.01 par value; 29,000,000 shares authorized; and 17,268,212 and 17,112,688 issued and outstanding, respectively

173 171 Additional paid-in capital 258,209 254,154 Retained earnings 130,373 96,389 Accumulated other comprehensive income (loss)   (4,670 )   6,106 Total Shareholders' Equity   384,085     356,820 Total Liabilities and Shareholders' Equity $ 722,523   $ 616,195                     CIRCOR INTERNATIONAL, INC. SUMMARY OF ORDERS AND BACKLOG (in millions) UNAUDITED               Three Months Ended Twelve Months Ended December 31, 2011 December 31, 2010 December 31, 2011 December 31, 2010   ORDERS 1 Energy $ 86.2 $ 120.8 $ 396.8 $ 364.8   Aerospace 35.9 30.8 165.0 123.9   Flow Technologies   64.1   60.8   286.7   271.6   Total orders $ 186.2 $ 212.4 $ 848.5 $ 760.3             December 31, 2011 December 31, 2010   BACKLOG 2 Energy $ 169.3 $ 179.9   Aerospace 158.3 147.2   Flow Technologies   69.8   77.2   Total backlog $ 397.4 $ 404.3

Note 1: Orders do not include the foreign exchange impact due to the re-measurement of customer order backlog amounts denominated in foreign currencies.

  Note 2: Backlog includes all unshipped customer orders.                                                  

CIRCOR INTERNATIONAL, INC.

SUMMARY REPORT BY SEGMENT

(in thousands, except earnings per share)

UNAUDITED

  2010   2011 1ST QTR   2ND QTR     3RD QTR     4TH QTR     YTD   1ST QTR   2ND QTR     3RD QTR     4TH QTR     YTD   NET REVENUES   Energy $ 57,722 $ 77,305 $ 80,613 $ 90,229 $ 305,869 $ 99,170 $ 81,994 $103,300 $110,228 $ 394,692 Aerospace 27,274 27,811 28,316 35,465 118,866 32,110 36,029 32,681 36,017 136,837 Flow Technologies 61,273 62,889 68,648 68,365 261,175 72,090 73,885 73,980 70,865 290,820 Total 146,269 168,005 177,577 194,059 685,910 203,370 191,908 209,961 217,110 822,349

 

* ADJUSTED OPERATING MARGIN   Energy 3.5% 8.3% 11.1% 6.7% 7.7% 6.4% 5.3% 7.2% 8.4% 7.0% Aerospace 13.2% 14.6% 9.6% 14.1% 13.0% 11.6% 11.2% 5.6% 8.6% 9.3% Flow Technologies 10.2% 10.1% 13.1% 12.5% 11.5% 13.7% 12.4% 13.6% 12.9% 13.1% Segment operating margin 8.1% 10.0% 11.7% 10.1% 10.1% 9.8% 9.1% 9.2% 9.9% 9.5% Corporate expenses -3.1% -3.1% -2.7% -3.3% -3.1% -3.0% -2.7% -1.7% -3.0% -2.6% * Adjusted operating margin 5.0% 6.9% 8.9% 6.7% 7.0% 6.8% 6.5% 7.5% 6.9% 6.9% Leslie asbestos and bankruptcy charges (recoveries) -0.4% 17.2% 1.3% 1.1% 4.8% 0.5% -0.1% -0.1% 0.0% 0.1% Total operating margin 5.4% -10.3% 7.6% 5.6% 2.2% 6.3% 6.5% 7.6% 6.9% 6.8%   * ADJUSTED OPERATING INCOME   Energy 2,025 6,424 8,968 6,024 23,441 6,393 4,373 7,441 9,225 27,432 Aerospace 3,607 4,067 2,726 5,002 15,402 3,727 4,021 1,846 3,081 12,675 Flow Technologies 6,276   6,367   8,997 8,512 30,152 9,854   9,133   10,037 9,171 38,195 Segment operating income 11,908 16,858 20,691 19,538 68,995 19,974 17,527 19,324 21,477 78,302 Corporate expenses (4,607) (5,274) (4,859) (6,494) (21,234) (6,201) (5,100) (3,585) (6,441) (21,327) * Adjusted operating income 7,301 11,584 15,832 13,044 47,761 13,773 12,427 15,739 15,036 56,975 Leslie asbestos and bankruptcy charges (recoveries) (648) 28,908 2,343 2,173 32,776 1,001 (124) (201) - 676                     Total operating income 7,949 (17,325) 13,490 10,871 14,986 12,772 12,550 15,940 15,036 56,298   INTEREST EXPENSE, NET (554) (586) (734) (641) (2,515) (773) (1,232) (887) (1,039) (3,930) OTHER (EXPENSE) INCOME, NET 51 (258) 853 (608) 38 (915) (560) (354) (342) (2,171)   PRETAX INCOME (LOSS) 7,446 (18,169) 13,609 9,622 12,508 11,084 10,758 14,699 13,655 50,196 (PROVISION) BENEFIT FOR INCOME TAXES (1,713) 6,928 (3,210) (1,890) 115 (3,178) (3,261) (3,752) (3,370) (13,562) EFFECTIVE TAX RATE 23.0% 38.1% 23.6% 19.6% -0.9% 28.7% 30.3% 25.5% 24.7% 27.0% NET INCOME (LOSS) $ 5,733 $ (11,241) $ 10,399 $ 7,732 $ 12,624 $ 7,906 $ 7,497 $ 10,947 $ 10,285 $ 36,634   Weighted Average Common Shares Outstanding (Diluted) 17,193 17,108 17,258 17,378 17,297 17,378 17,434 17,423 17,435 17,417   EARNINGS PER COMMON SHARE (Diluted) $ 0.33 $ (0.66) $ 0.60 $ 0.44 $ 0.73 $ 0.45 $ 0.43 $ 0.63 $ 0.59 $ 2.10   EBIT $ 8,000 $ (17,583) $ 14,343 $ 10,263 $ 15,024 $ 11,857 $ 11,990 $ 15,586 $ 14,694 $ 54,127 Depreciation 3,228 3,115 3,166 3,566 13,075 3,575 3,921 3,770 3,820 15,085 Amortization of intangibles 979 964 1,122 1,236 4,301 1,418 778 1,097 1,058 4,351 EBITDA $ 12,207 $ (13,504) $ 18,631 $ 15,065 $ 32,400 $ 16,850 $ 16,689 $ 20,453 $ 19,572 $ 73,563   EBITDA AS A PERCENT OF SALES 8.3% -8.0% 10.5% 7.8% 4.7% 8.3% 8.7% 9.7% 9.0% 8.9%   CAPITAL EXPENDITURES $ 3,606 $ 4,580 $ 3,213 $ 3,513 $ 14,913 $ 2,693 $ 4,770 $ 3,792 $ 6,647 $ 17,901   * Adjusted Operating Income & Margin excludes Leslie asbestos and bankruptcy charges.                           CIRCOR INTERNATIONAL, INC. RECONCILIATION OF KEY PERFORMANCE MEASURES TO COMMONLY USED GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS (in thousands) UNAUDITED     2010    

2011

  1ST QTR   2ND QTR   3RD QTR   4TH QTR   YTD   1ST QTR   2ND QTR   3RD QTR   4TH QTR   YTD                                            

FREE CASH FLOW [NET CASH FLOW FROM OPERATING  ACTIVITIES LESS CAPITAL EXPENDITURES]

    $ (6,380 )   $ 12,587     $ (496 )   $ 16,221     $ 21,931     $ 525     $ (77,244 )   $ (5,214 )   $ 15,199     $ (66,734 ) ADD: Capital Expenditures   3,606     4,580     3,213     3,513     14,913     2,693     4,770     3,792     6,647     17,902     NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ (2,774 ) $ 17,167   $ 2,717   $ 19,734   $ 36,844   $ 3,218   $ (72,474 ) $ (1,422 ) $ 21,846   $ (48,832 )                                            

NET DEBT (CASH) [TOTAL DEBT LESS CASH & CASH  EQUIVALENTS LESS INVESTMENTS]

    $ (52,713 )   $ (55,976 )   $ (26,225 )   $ (44,318 )   $ (44,318 )   $ (22,554 )   $ 56,828     $ 64,145     $ 50,169     $ 50,169   ADD: Cash & cash equivalents 37,812 60,857 68,526 45,752 45,752 53,491 48,302 39,254 54,855 54,855 Investments   22,412     94     97     101     101     99     107     98     99     99     TOTAL DEBT $ 7,511   $ 4,975   $ 42,398   $ 1,535   $ 1,535   $ 31,036   $ 105,237   $ 103,497   $ 105,123   $ 105,123                                               DEBT AS % OF EQUITY       2 %     2 %     12 %     0 %     0 %     8 %     27 %     27 %     27 %     27 %   TOTAL DEBT 7,511 4,975 42,398 1,535 1,535 31,036 105,237 103,497 105,123 105,123   TOTAL SHAREHOLDERS' EQUITY 349,244 324,128 351,719 356,820 356,820 374,706 385,833 384,296 384,085 384,085                                            

EBIT [NET INCOME LESS INCOME TAXES LESS  INTEREST EXPENSE, NET]

    $ 8,000     $ (17,583 )   $ 14,343     $ 10,263     $ 15,023     $ 11,857     $ 11,990     $ 15,586     $ 14,694     $ 54,127   LESS: Interest expense, net (554 ) (586 ) (734 ) (641 ) (2,515 ) (773 ) (1,232 ) (887 ) (1,039 ) (3,930 ) (Provision) benefit for income taxes   (1,713 )   6,928     (3,210 )   (1,890 )   115     (3,178 )   (3,261 )   (3,752 )   (3,370 )   (13,561 )   NET INCOME (LOSS) $ 5,733   $ (11,241 ) $ 10,399   $ 7,732   $ 12,624   $ 7,906   $ 7,497   $ 10,947   $ 10,285   $ 36,635                                              

EBITDA [NET INCOME LESS INTEREST EXPENSE, NET,  LESS DEPRECIATION LESS AMORTIZATION LESS INCOME  TAXES]

    $ 12,207     $ (13,504 )   $ 18,631     $ 15,065     $ 32,399     $ 16,850     $ 16,689     $ 20,453     $ 19,572     $ 73,563   LESS: Interest expense, net (554 ) (586 ) (734 ) (641 ) (2,515 ) (773 ) (1,232 ) (887 ) (1,039 ) (3,931 ) Depreciation (3,228 ) (3,115 ) (3,166 ) (3,566 ) (13,075 ) (3,575 ) (3,921 ) (3,770 ) (3,820 ) (15,085 ) Amortization (979 ) (964 ) (1,122 ) (1,236 ) (4,301 ) (1,418 ) (778 ) (1,097 ) (1,058 ) (4,351 ) (Provision) benefit for income taxes   (1,713 )   6,928     (3,210 )   (1,890 )   115     (3,178 )   (3,261 )   (3,752 )   (3,370 )   (13,561 )   NET INCOME (LOSS) $ 5,733   $ (11,241 ) $ 10,399   $ 7,732   $ 12,624   $ 7,906   $ 7,497   $ 10,947   $ 10,285   $ 36,635                                              

ADJUSTED INCOME [NET INCOME EXCLUDING  LESLIE ASBESTOS AND BANKRUPTCY  CHARGES, NET OF TAX]

    $ 5,312     $ 7,549     $ 11,922     $ 9,144     $ 33,928         $ 8,557     $ 7,416     $ 10,816     $ 10,285     $ 37,074   LESS:

Leslie asbestos and bankruptcy charges  (recoveries), net of tax

(421 ) 18,790 1,523 1,412 21,304 651 (81 ) (131 ) - 439   NET INCOME (LOSS) $ 5,733   $ (11,241 ) $ 10,399   $ 7,732   $ 12,624   $ 7,906   $ 7,497   $ 10,947   $ 10,285   $ 36,635                                                 ADJUSTED WEIGHTED AVERAGE SHARES         N/A       17,109       N/A       N/A       N/A       N/A       N/A       N/A       N/A       N/A     Adjustment for anti-dilutive conversion of shares 0 153 0 0 0 0 0 0 0 0                     Weighted average common shares outstanding (diluted)   17,193     17,262     17,258     17,378     17,297     17,378     17,434     17,423     17,435     17,417                                              

ADJUSTED EARNINGS PER SHARE [EPS EXCLUDING  LESLIE ASBESTOS AND BANKRUPTCY  CHARGES, NET OF TAX]

    $ 0.31     $ 0.44     $ 0.69     $ 0.53     $ 1.97     $ 0.49     $ 0.43     $ 0.62     $ 0.59     $ 2.13   LESS:

Leslie asbestos and bankruptcy charges  (recoveries), net of tax impact on EPS

(0.02 ) 1.10 0.09 0.08 1.24 0.04 (0.00 ) (0.01 ) - 0.03                     EARNINGS (LOSS) PER COMMON SHARE (Diluted) $ 0.33   $ (0.66 ) $ 0.60   $ 0.44   $ 0.73   $ 0.45   $ 0.43   $ 0.63   $ 0.59   $ 2.10