GAAP EPS of $0.19 - Up 120% YoY; Adjusted EPS of $0.32 - Up 60% YoY
GAAP Operating Income of $11.9 Million - Up 239% YoY; Adjusted Operating Income of $16.6 Million - Up 50% YoY
Orders down (1%) reported and up 5% organically
Progressing with review of strategic alternatives
Q2 10-Q filed

CIRCOR International, Inc. (NYSE:CIR) ("CIRCOR" or "the Company"), one of the world's leading providers of mission critical flow control products and services for the Industrial and Aerospace & Defense markets, today announced financial results for the second quarter ended July 3, 2022.

Q2 2022 Overview:

Revenue of $191 million up 2% reported and 8% organically compared to Q2'2021
- Aerospace & Defense revenue of $67 million, up 11% reported and 14% organically
- Industrial revenue of $124 million, down (2%) reported and up 5% organically
Orders of $208 million, down (1%) and up 5% organically
- Aerospace & Defense orders of $69 million, up 27% and 32% organically
- Industrial orders of $139 million, down (11%) and (4%) organically
Backlog of $477 million, up 9% driven by strong demand in Industrial
GAAP operating income of $11.9 million, up 239%
GAAP operating margin of 6.2%, up 1080 bps
Adjusted operating income $16.6 million, up 50%
Adjusted operating margin of 8.7%, up 280 bps

CIRCOR President and CEO, Tony Najjar said, "Our team executed well in Q2, navigating ongoing supply chain challenges, an inflationary environment, and labor shortages. Organic orders were up 5% for the quarter and our backlog heading into the second half of the year was a robust $477 million, up 9% from prior year. Our revenues in the quarter were up 2% reported and 8% organically with solid margin expansion as a result of our simplification actions and value-based pricing initiatives."

Mr. Najjar continued, "With today's filing of our second-quarter 10-Q, we are very pleased to be up to date with our financial reporting. Our team has worked tirelessly to make this happen, while also making progress with our simplification and cost-out actions, and in our process to review strategic alternatives. We have been hard at work seeking to ensure that CIRCOR delivers sustained growth and margin expansion. We continue to build on our relationships with our customers, improving service levels and aftermarket product flow, while focusing on value-based pricing initiatives and leveraging 80/20 principles across the Company."

Conference Call Information

CIRCOR International will hold a conference call to review its second-quarter 2022 financial results at 9:00 a.m. ET today, September 30, 2022. To listen to the live conference call and view the accompanying presentation slides, please visit "Webcasts & Presentations" in the "Investors" portion of CIRCOR's website. https://investors.circor.com/. The live call also can be accessed by dialing (877) 407-5790 or (201) 689-8328. Participants are encouraged to dial in to the call at least 15 minutes prior to the start time. The webcast will be archived on the Company's website for one year.

Selected Consolidated Results (unaudited)

($ millions except EPS)	Q2 2022			Q2 2021			Change		Six Months Ended July 3, 2022			Six Months Ended July 4, 2021			Change
Revenue¹	$	191.4		$	187.6		2	%	$	377.0		$	364.0		4	%
GAAP operating (loss) income		11.9			(8.6	)	239	%		0.1			(13.8	)	101	%
Adjusted operating income²		16.6			11.0		50	%		27.0			17.8		52	%
GAAP operating margin		6.2	%		(4.6	)%	1080 bps			0.0	%		(3.8	)%	380 bps
Adjusted operating margin³		8.7	%		5.9	%	280 bps			7.2	%		4.9	%	230 bps
GAAP (loss) per share	$	0.19		$	(0.93	)	120	%	$	(0.86	)	$	(1.52	)	43	%
Adjusted earnings per share (diluted)⁴	$	0.32		$	0.20		60	%	$	0.37		$	0.22		68	%
Operating cash flow		(3.6	)		8.9		-141	%		(19.5	)		(10.3	)	-89	%
Adjusted free cash flow⁵		(9.1	)		6.2		-246	%		(28.6	)		(16.4	)	-74	%
Orders⁶	$	208.4		$	210.2		-1	%	$	430.0		$	436.9		-2	%

Segment Results (unaudited)

*($ in millions)*	Q2 2022			Q2 2021			Change		Six Months Ended July 3, 2022			Six Months Ended July 4, 2021			Change
Aerospace & Defense
Revenue¹	$	67.3		$	60.6		11	%	$	130.6		$	119.1		10	%
Segment operating income²		13.6			11.7		16	%		24.9			21.7		15	%
Segment operating margin³		20.2	%		19.4	%	80 bps			19.0	%		18.2	%	80 bps
Orders⁶	$	69.1		$	54.2		27	%	$	146.9		$	127.2		15	%

Industrial
Revenue¹	$	124.1		$	127.0		-2	%	$	246.4		$	244.9		1	%
Segment operating income²		8.5			7.2		17	%		15.3			13.1		17	%
Segment operating margin³		6.8	%		5.7	%	110 bps			6.2	%		5.3	%	90 bps
Orders⁶	$	139.4		$	156.0		-11	%	$	283.1		$	309.7		-9	%

Consolidated and Industrial segment revenues for Q2 2022 and Q2 2021 included $0.2 million and $3.1 million, respectively, relating to our Pipeline Engineering business.
Adjusted operating income is a non-GAAP financial measure. Refer to "Use of Non-GAAP Financial Measures" for an explanation of our non-GAAP financial measures and to the reconciliations included in this press release. Adjusted operating income and Industrial segment operating income for Q2 2022 and Q2 2021 included $(1.1) million and $(1.8) million, respectively, relating to our Pipeline Engineering business.
Adjusted operating margin is a non-GAAP financial measure. Adjusted operating margin for Q2 2022 and Q2 2021 included (492)% and (56)%, respectively, relating to our Pipeline Engineering business.
Adjusted earnings per share (diluted) is a non-GAAP financial measure. Adjusted earnings per share and our segment results for Q2 2022 exclude net loss from non-cash acquisition-related intangible amortization and special and restructuring charges of $4.7 million, consisting of (i) $10.4 million for non-cash acquisition-related intangible amortization and depreciation expense; (ii) $5.0 million of special charges related to the amendment of the credit agreement; (iii) $5.0 million of costs due to the investigation into the accounting irregularities of the Pipeline Engineering business and incremental professional services incurred due to the restatement; (iv) $0.9 million of special charges related to the evaluation of strategic alternatives for the company; (v) net restructuring charges of $4.7 million comprised of $5.3 million of CTA loss offset by other adjustments of $0.6 million due to the deconsolidation of the Pipeline Engineering businesses; (vi) other special and restructuring charges net of $0.7 million; and (vii) a gain of $22.0 million on the sale of real estate located at Walden, New York and Tampa, Florida. Adjusted consolidated and segment results for Q2 2021 exclude net loss from discontinued operations of $0.9 million and net loss from non-cash acquisition-related intangible amortization, special and restructuring charges totaling $19.6 million ($21.9 million after tax). These charges include: (i) $11.8 million for non-cash acquisition-related intangible amortization and depreciation expense; (ii) $3.0 million of special charges related to the Heater & Control Valve divestiture; (iii) $3.8 million of other special and restructuring charges; and (iv) $1.0 million of restructuring related inventory charges.
Adjusted free cash flow, a non-GAAP financial measure, is calculated by subtracting GAAP capital expenditures, net of proceeds from asset sales, from GAAP operating cash flow.
Orders, an operating measure, is defined as a legally binding agreement from an authorized individual at a customer requesting CIRCOR to provide goods and/or services at a fixed or determinable price and CIRCOR is capable of providing such goods and services, when the terms and conditions are firm enough to assure subsequent payment by the customer. Consolidated and Industrial segment orders for Q2 2022 and Q2 2021 included $0.0 million and $5.2 million, respectively, relating to our Pipeline Engineering business. As previously disclosed in our Form 10-K for the year ended December 31, 2021, the Company discovered accounting irregularities in its Pipeline Engineering business unit resulting in a restatement of previously issued financial statements.

Company Files Quarterly Report on Form 10-Q for the Period Ended July 3, 2022

The Company today filed its Quarterly Report on Form 10-Q for the second quarter of 2022.

Use of Non-GAAP Financial Measures

In this press release, the Company uses the non-GAAP financial measures adjusted net income, adjusted EBITDA, adjusted operating income, adjusted operating margin, adjusted earnings per share and adjusted free cash flow. Non-GAAP financial measures are used by management in our financial and operating decision making because we believe they reflect our ongoing business and facilitate period-to-period comparisons. We believe that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating CIRCOR's current operating performance and future prospects in the same manner as management does if they so choose. These non-GAAP financial measures can also assist investors and others in comparing CIRCOR's current financial results with CIRCOR's past financial results in a consistent manner.

We exclude costs and tax effects associated with special and restructuring activities, such as reducing overhead and consolidating facilities. We believe that the costs related to special and restructuring activities are not indicative of our normal operating costs. We exclude certain acquisition-related costs, including significant transaction costs and amortization of inventory and fixed-asset step-ups and the related tax effects. We exclude these costs because we do not believe they are indicative of our normal operating costs.

We exclude the expense and tax effects associated with the non-cash amortization of acquisition-related intangible assets because a significant portion of the purchase price for acquisitions may be allocated to intangible assets that have lives up to 25 years. Exclusion of the non-cash amortization expense allows comparisons of operating results that are consistent over time for both our newly acquired and long-held businesses and with both acquisitive and non-acquisitive peer companies.

We exclude certain gains/losses and related tax effects, which are either isolated or cannot be expected to occur again with any predictability, and that we believe are not indicative of our normal operating gains and losses. For example, we exclude gains/losses from items such as the sale of a business, significant litigation-related matters and lump-sum pension plan settlements. We exclude the results of discontinued operations. We exclude goodwill impairment charges. We exclude these costs because we do not believe they are indicative of our normal operating costs.

Due to the significance of recently sold or exited businesses and to provide a comparison of changes in our revenue and orders (an operating measure), we also discuss these changes on an "organic" basis. Organic is calculated assuming the divestitures and/or exited businesses completed prior to July 3, 2022 were completed on January 1, 2021 and excluding the impact of changes in foreign currency exchange rates.

CIRCOR's management uses these non-GAAP measures, in addition to GAAP financial measures, as the basis for measuring the Company's operating performance and comparing such performance to that of prior periods and to the performance of our peers. We use such measures when publicly providing our business outlook, assessing future earnings potential, evaluating potential acquisitions and dispositions and in our financial and operating decision-making process, including for compensation purposes.

Investors should recognize that these non-GAAP measures might not be comparable to similarly titled measures of other companies. These measures should be considered in addition and not as a substitute for or superior to, any measure of performance, cash flow or liquidity prepared in accordance with accounting principles generally accepted in the United States. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures is included in this news release.

About CIRCOR International, Inc.

CIRCOR International is one of the world's leading providers of mission critical flow control products and services for the Industrial and Aerospace & Defense markets. The Company has a product portfolio of market-leading brands serving its customers' most demanding applications. CIRCOR markets its solutions directly and through various sales partners to more than 14,000 customers in approximately 100 countries. The Company has a global presence with approximately 3,100 employees and is headquartered in Burlington, Massachusetts. For more information, visit the Company's investor relations website at http://investors.circor.com.

Cautionary Note Regarding Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Actual results may differ materially from the expectations the Company describes in its forward-looking statements. Substantial 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. Important factors that could cause actual results to differ materially from expectations include, but are not limited to the inability to achieve expected results in pricing and cost out actions and the related impact on margins and cash flow; the effectiveness of the Company's internal control over financial reporting and disclosure controls and procedures; the remediation of the material weaknesses in the Company's internal controls over financial reporting or other potential weaknesses of which the Company is not currently aware or which have not been detected; the timing of the Company regaining compliance with the NYSE's continued listing standards; the timing and outcome, if any, of the Company's strategic alternatives review; the uncertainty associated with the current worldwide economic conditions and the continuing impact on economic and financial conditions in the United States and around the world, including as a result of COVID-19 , rising inflation, increasing interest rates, natural disasters, military conflicts, including the conflict between Russia and Ukraine, terrorist attacks and other similar matters; and the risks detailed from time to time in the Company's periodic reports filed with the SEC. Before making any investment decisions regarding CIRCOR, the Company strongly advises you to read the section entitled "Risk Factors" in its 2021 Annual Report on Form 10-K, which can be accessed under the "Investors" link of the Company's website at www.circor.com. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

CIRCOR INTERNATIONAL, INC CONSOLIDATED STATEMENT OF OPERATIONS (in thousands, except per share data) (unaudited)

	Three Months Ended						Six Months Ended
	July 3, 2022			As Restated July 4, 2021			July 3, 2022			As Restated July 4, 2021
Net revenues	$	191,376		$	187,590		$	377,031		$	364,041
Cost of revenues		133,171		$	131,156		$	263,543		$	256,045
Gross profit		58,205			56,434			113,488			107,996
Selling, general and administrative expenses		52,057			58,188			110,127			115,825
Special and restructuring (recoveries) charges, net		(5,730	)		6,803			3,272			5,995
Operating income (loss)		11,878			(8,557	)		89			(13,824	)
Other expense (income):
Interest expense, net		10,203			7,957			19,659			16,327
Other (income), net		(1,638	)		(1,267	)		(2,924	)		(3,048	)
Total other expense, net		8,565			6,690			16,735			13,279
Income (loss) from continuing operations before income taxes		3,313			(15,247	)		(16,646	)		(27,103	)
(Benefit from) provision for income taxes		(647	)		2,659			875			2,360
Income (loss) from continuing operations, net of tax		3,960			(17,906	)		(17,521	)		(29,463	)
Loss from discontinued operations, net of tax	$	—		$	(878	)	$	—		$	(1,117	)
Net income (loss)	$	3,960		$	(18,784	)	$	(17,521	)	$	(30,580	)

Basic income (loss) per common share:
Basic from continuing operations	$	0.19		$	(0.89	)	$	(0.86	)	$	(1.46	)
Basic from discontinued operations	$	—		$	(0.04	)	$	—		$	(0.06	)
Net income (loss)	$	0.19		$	(0.93	)	$	(0.86	)	$	(1.52	)

Diluted income (loss) per common share:
Diluted from continuing operations	$	0.19		$	(0.89	)	$	(0.86	)	$	(1.46	)
Diluted from discontinued operations	$	—		$	(0.04	)	$	—		$	(0.06	)
Net income (loss)	$	0.19		$	(0.93	)	$	(0.86	)	$	(1.52	)

Weighted average number of common shares outstanding:
Basic		20,361			20,230			20,336			20,143
Diluted		20,428			20,230			20,336			20,143

CIRCOR INTERNATIONAL, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited)

	Six Months Ended
OPERATING ACTIVITIES	July 3, 2022			As Restated July 4, 2021
Net (loss)	$	(17,521	)	$	(30,580	)
(Loss) from discontinued operations, net of income taxes		—			(1,117	)
(Loss) from continuing operations, net of tax	$	(17,521	)		(29,463	)
Adjustments to reconcile net (loss) to net cash (used in) operating activities:
Depreciation		10,056			11,970
Amortization		18,580			21,353
Change in provision for bad debt expense		(221	)		(356	)
Write down of inventory		1,181			1,548
Compensation expense for share-based plans		375			2,903
Loss on debt extinguishment		4,977			—
Amortization of debt issuance costs		1,649			2,005
Deferred tax provision		—			(1,317	)
Loss on sale of businesses		—			1,031
Gain on sale of real estate		(22,008	)		—
Other impairment charges		8,011			—
Loss on deconsolidation charges		4,675			—
Changes in operating assets and liabilities, net of effects of acquisitions and divestitures:
Trade accounts receivable		3,283			6,455
Inventories		(20,548	)		(14,617	)
Prepaid expenses and other assets		(16,947	)		(10,119	)
Accounts payable, accrued expenses and other liabilities		4,941			(1,158	)
Net cash used in continuing operating activities		(19,517	)		(9,765	)
Net cash used in discontinued operating activities		—			(579	)
Net cash (used in) operating activities		(19,517	)		(10,344	)
INVESTING ACTIVITIES
Additions to property, plant and equipment		(9,133	)		(6,038	)
Proceeds from the sale of property, plant and equipment		80			2
Proceeds from beneficial interest of factored receivables		2,336			998
Proceeds from the sale of real estate		26,433			—
Proceeds from the sale of businesses		—			9,993
Net cash provided by investing activities		19,716			4,955
FINANCING ACTIVITIES
Proceeds from long-term debt		124,016			103,350
Payments of long-term debt		(105,616	)		(100,250	)
Net change in short-term borrowings		(1,573	)		(292	)
Proceeds from the exercise of stock options		—			151
Withholding tax payments on net share settlements on equity awards		(1,187	)		(4,119	)
Payments of debt issuance costs		(16,701	)		—
Net cash (used in) financing activities		(1,061	)		(1,160	)
Effect of exchange rate changes on cash, cash equivalents and restricted cash		(3,848	)		(1,782	)
DECREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH		(4,710	)		(8,331	)
Cash, cash equivalents, and restricted cash at beginning of period		61,374			68,607
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT END OF PERIOD	$	56,664		$	60,276

CIRCOR INTERNATIONAL, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data) (unaudited)

	July 3, 2022			December 31, 2021
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	55,238		$	59,924
Trade accounts receivable, net		93,530			100,149
Inventories		134,247			123,343
Prepaid expenses and other current assets		119,522			110,749
Total Current Assets		402,537			394,165
PROPERTY, PLANT AND EQUIPMENT, NET		139,082			154,461
OTHER ASSETS:
Goodwill		119,750			122,906
Intangibles, net		273,476			303,476
Deferred income taxes		685			756
Other assets		53,890			43,534
TOTAL ASSETS	$	989,420		$	1,019,298
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable	$	83,152		$	83,382
Accrued expenses and other current liabilities		78,554			81,998
Accrued compensation and benefits		28,158			26,551
Short-term borrowings and current portion of long-term debt		—			1,611
Total Current Liabilities		189,864			193,542
LONG-TERM DEBT		520,999			511,694
DEFERRED INCOME TAXES		19,689			21,721
PENSION LIABILITY, NET		111,716			120,881
OTHER NON-CURRENT LIABILITIES		43,489			37,744
COMMITMENTS AND CONTINGENCIES (NOTE 9 AND 10)
SHAREHOLDERS' EQUITY:
Preferred stock, $0.01 par value; 1,000,000 shares authorized; no shares issued and outstanding		—			—
Common stock, $0.01 par value; 29,000,000 shares authorized; 21,724,341 and 21,633,131 issued at July 3, 2022 and December 31, 2021 respectively		217			217
Additional paid-in capital		454,361			454,852
Accumulated deficit		(215,602	)		(198,081	)
Common treasury stock, at cost (1,372,488 shares at July 3, 2022 and December 31, 2021)		(74,472	)		(74,472	)
Accumulated other comprehensive loss, net of tax		(60,841	)		(48,800	)
Total Shareholders' Equity		103,663			133,716
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	989,420		$	1,019,298

CIRCOR INTERNATIONAL, INC. SUMMARY OF ORDERS AND BACKLOG (in millions) (unaudited)

		Three Months Ended				Six Months Ended
		July 3, 2022		July 4, 2021		July 3, 2022		July 4, 2021

ORDERS (1)
	Aerospace & Defense	$	69.0	$	54.2	$	146.90	$	127.2
	Industrial		139.4		156.0		283.1		309.7
	Total orders	$	208.4	$	210.2	$	430.0	$	436.9


		July 3, 2022		July 4, 2021
BACKLOG (2)
	Aerospace & Defense	$	199.0	$	191.7
	Industrial		278.4		248.2
	Total backlog	$	477.4	$	439.9
1. Orders do not include the foreign exchange impact due to the re-measurement of customer backlog amounts denominated in foreign currencies. Industrial includes $0.0 million and $5.2 million of orders for Pipeline Engineering for the three months ended July 3, 2022 and July 4, 2021 respectively. Industrial includes $2.3 million and $10.7 million of orders for Pipeline Engineering for the six months ended July 3, 2022 and July 4, 2021 respectively.
2. Backlog is calculated as current period orders plus unshipped customer orders from prior periods for which revenue has not been recognized. Industrial includes $0.0 million and $0.7 million for Pipeline Engineering in 2022 and 2021 respectively.

CIRCOR INTERNATIONAL, INC. SEGMENT INFORMATION (in thousands, except percentages) (unaudited)

	2021 As Restated															2022
As reported	1ST QTR			2ND QTR			3RD QTR			4TH QTR			TOTAL			1ST QTR			2ND QTR			TOTAL
ORDERS
Aerospace & Defense	$	72,999		$	54,243		$	54,028		$	73,898		$	255,168		$	77,890		$	69,053		$	146,943
Industrial		153,695			155,959			139,691			146,065			595,410			143,727			139,370			283,097
Total	$	226,693		$	210,203		$	193,719		$	219,964		$	850,578		$	221,617		$	208,423		$	430,040

NET REVENUES
Aerospace & Defense	$	58,488		$	60,613		$	63,461		$	69,979		$	252,541		$	63,370		$	67,271		$	130,641
Industrial		117,963			126,977			126,248			134,938			506,126			122,285			124,105			246,390
Total	$	176,451		$	187,590		$	189,709		$	204,917		$	758,667		$	185,655		$	191,376		$	377,031

SEGMENT OPERATING INCOME
Aerospace & Defense	$	9,988		$	11,741		$	15,927		$	18,416		$	56,073		$	11,320		$	13,566		$	24,886
Industrial		5,834			7,237			7,124			8,700			28,896			6,857			8,484			15,341
Corporate expenses		(9,035	)		(7,950	)		(7,015	)		(6,636	)		(30,638	)		(7,770	)		(5,485	)		(13,255	)
Total	$	6,787		$	11,028		$	16,036		$	20,480		$	54,331		$	10,407		$	16,565		$	26,972

SEGMENT OPERATING MARGIN %
Aerospace & Defense		17.1	%		19.4	%		25.1	%		26.3	%		22.2	%		17.9	%		20.2	%		19.0	%
Industrial		4.9	%		5.7	%		5.6	%		6.4	%		5.7	%		5.6	%		6.8	%		6.2	%
Total		3.8	%		5.9	%		8.5	%		10.0	%		7.2	%		5.6	%		8.7	%		7.2	%

	2021															2022
Pipeline Engineering¹	1ST QTR			2ND QTR			3RD QTR			4TH QTR			TOTAL			1ST QTR			2ND QTR			TOTAL
ORDERS - Industrial	$	5,531		$	5,192		$	6,575		$	7,121		$	24,419		$	2,260		$	—		$	2,260
NET REVENUES - Industrial	$	2,994		$	3,124		$	3,236		$	5,248		$	14,602		$	3,012		$	218		$	3,230
SEGMENT OP. INC. -Industrial	$	(2,479	)	$	(1,754	)	$	(2,470	)	$	(3,191	)	$	(9,893	)	$	(3,190	)	$	(1,074	)	$	(4,264	)
Segment Operating Margin %		(82.8	) %		(56.1	) %		(76.3	) %		(60.8	) %		(67.8	) %		(105.9	) %		(492.7	) %		(132.0	) %
1) Quantifies the impact of the Pipeline Engineering business on the Industrial Segment.

CIRCOR INTERNATIONAL, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND KEY PERFORMANCE MEASURES (in thousands, except percentages) (unaudited)

	2021 As Restated															2022
	1ST QTR			2ND QTR			3RD QTR			4TH QTR			TOTAL			1ST QTR			2ND QTR			TOTAL

Net Cash (Used In) Provided By Operating Activities	$	(19,210	)	$	8,866		$	10,197		$	10,595		$	10,448		$	(15,924	)	$	(3,593	)	$	(19,517	)
LESS
Capital expenditures, net of sale proceeds¹		3,392			2,644			4,541			4,168			14,745			3,592			5,461			9,053
ADJUSTED FREE CASH FLOW	$	(22,602	)	$	6,222		$	5,656		$	6,427		$	(4,297	)	$	(19,516	)	$	(9,054	)	$	(28,570	)


Gross Debt	$	538,541		$	524,391		$	518,464		$	526,311		$	526,311		$	547,681		$	543,100		$	543,100
Less: Cash & Cash equivalents		64,837			58,862			58,013			59,924			59,924			61,122			55,238			55,238
GROSS DEBT, NET OF CASH	$	473,704		$	465,529		$	460,451		$	466,387		$	466,387		$	486,559		$	487,862		$	487,862

TOTAL SHAREHOLDERS' EQUITY	$	138,663		$	122,185		$	121,256		$	133,716		$	133,716		$	110,321		$	103,663		$	103,663

GROSS DEBT AS % OF EQUITY		388	%		429	%		428	%		394	%		394	%		496	%		524	%		524	%
GROSS DEBT, NET OF CASH AS % OF EQUITY		342	%		381	%		380	%		349	%		349	%		441	%		471	%		471	%

Includes capital expenditures, net of proceeds of asset sales from GAAP operating cash flow.

CIRCOR INTERNATIONAL, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND KEY PERFORMANCE MEASURES (in thousands, except percentages) (unaudited)

	2021 As Restated															2022
	1ST QTR			2ND QTR			3RD QTR			4TH QTR			TOTAL			1ST QTR			2ND QTR			TOTAL
NET (LOSS) INCOME	$	(11,796	)	$	(18,784	)	$	(2,630	)	$	(28,427	)	$	(61,638	)	$	(21,481	)	$	3,960		$	(17,521	)
LESS:
Restructuring related inventory charges (recoveries), net		—			958			(60	)		(299	)		599			2,757			—			2,757
Restructuring charges (recoveries), net		2,060			2,281			(312	)		205			4,234			6,447			4,695			11,142
Acquisition amortization		10,487			10,498			10,417			10,369			41,772			9,391			9,178			18,569
Acquisition depreciation		2,375			1,327			1,412			1,397			6,511			1,045			1,239			2,285
Special (recoveries) charges, net		(2,870	)		4,523			1,126			17,259			20,038			2,556			(10,425	)		(7,870	)
Goodwill Impairment charge		—			—			—			10,500			10,500			—			—			—
Income tax impact		(44	)		2,425			(596	)		(1,622	)		163			384			(2,207	)		(1,823	)
Net loss (income) from discontinued operations		239			878			(2,510	)		(13	)		(1,406	)		—			—			—
ADJUSTED NET INCOME	$	451		$	4,106		$	6,847		$	9,369		$	20,773		$	1,099		$	6,440		$	7,539

(LOSS) EARNINGS PER COMMON SHARE (Diluted)	$	(0.59	)	$	(0.93	)	$	(0.13	)	$	(1.40	)	$	(3.05	)	$	(1.06	)	$	0.19		$	(0.86	)
LESS:
Restructuring related inventory charges		—			0.05			—			(0.01	)		0.03			0.14			—			0.14
Restructuring charges (recoveries), net		0.10			0.11			(0.02	)		0.01			0.21			0.32			0.23			0.55
Acquisition amortization		0.52			0.52			0.51			0.51			2.07			0.46			0.45			0.91
Acquisition depreciation		0.12			0.07			0.07			0.07			0.32			0.05			0.06			0.11
Special (recoveries) charges, net		(0.14	)		0.22			0.06			0.85			0.99			0.13			(0.51	)		(0.39	)
Impairment charge		—			—			—			0.52			0.52			—			—			—
Income tax impact		—			0.12			(0.03	)		(0.08	)		0.01			0.02			(0.11	)		(0.09	)
(Loss) earnings) per share from discontinued operations		0.01			0.04			(0.12	)		—			(0.07	)		—			—			—
ADJUSTED EARNINGS PER SHARE (Diluted)	$	0.02		$	0.20		$	0.34		$	0.46		$	1.03		$	0.05		$	0.32		$	0.37

CIRCOR INTERNATIONAL, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND KEY PERFORMANCE MEASURES (in thousands, except percentages) (unaudited)

	2021 As Restated															2022
	1ST QTR			2ND QTR			3RD QTR			4TH QTR			TOTAL			1ST QTR			2ND QTR			TOTAL

NET (LOSS) INCOME	$	(11,796	)	$	(18,784	)	$	(2,629	)	$	(28,426	)	$	(61,635	)	$	(21,481	)	$	3,960		$	(17,521	)
LESS:
Interest expense, net		8,369			7,958			7,997			8,040			32,365			9,456			10,203			19,659
Depreciation		6,509			5,460			5,536			5,348			22,854			5,000			5,056			10,056
Amortization		10,696			10,657			10,576			10,375			42,304			9,397			9,183			18,580
Provision for income taxes		(297	)		2,659			850			1,970			5,182			1,523			(647	)		876
Loss (income) from discontinued operations		239			878			(2,510	)		(13	)		(1,406	)		—			—			—
EBITDA	$	13,720		$	8,828		$	19,820		$	(2,706	)	$	39,664		$	3,895		$	27,755		$	31,650
LESS:
Restructuring related inventory charges (recoveries)		—			958			(60	)		(299	)		599			2,757			—			2,757
Restructuring charges (recoveries), net		2,060			2,281			(312	)		205			4,234			6,447			4,695			11,142
Special (recoveries) charges, net		(2,870	)		4,523			1,126			17,259			20,038			2,556			(10,425	)		(7,870	)
Goodwill impairment charge		—			—			—			10,500			10,500			—			—			—
ADJUSTED EBITDA	$	12,910		$	16,590		$	20,574		$	24,959		$	75,035		$	15,655		$	22,025		$	37,679

CIRCOR INTERNATIONAL, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND KEY PERFORMANCE MEASURES (in thousands, except percentages) (unaudited)

	2021 As Restated															2022
	1ST QTR			2ND QTR			3RD QTR			4TH QTR			TOTAL			1ST QTR			2ND QTR			TOTAL

OPERATING (LOSS) INCOME	$	(5,266	)	$	(8,557	)	$	3,451		$	(18,952	)	$	(29,323	)	$	(11,789	)	$	11,878		$	89
LESS:
Restructuring related inventory charges (recoveries)		—			958			(60	)		(299	)		599			2,757			—			2,757
Restructuring charges (recoveries), net		2,060			2,281			(312	)		205			4,234			6,447			4,695			11,142
Acquisition amortization		10,487			10,498			10,417			10,369			41,772			9,391			9,178			18,569
Acquisition depreciation		2,375			1,327			1,412			1,397			6,511			1,045			1,239			2,285
Special (recoveries) charges, net		(2,870	)		4,523			1,126			17,259			20,038			2,556			(10,425	)		(7,870	)
Goodwill impairment charge		—			—			—			10,500			10,500			—			—			—
ADJUSTED OPERATING INCOME	$	6,787		$	11,029		$	16,035		$	20,479		$	54,331		$	10,407		$	16,565		$	26,972

OPERATING MARGIN		(3.0	) %		(4.6	) %		1.8	%		(9.2	) %		(3.9	) %		(6.3	) %		6.2	%		0.0	%
LESS:
Restructuring related inventory charges (recoveries)		0.0	%		0.5	%		0.0	%		(0.1	) %		0.1	%		1.5	%		0.0	%		0.7	%
Restructuring charges (recoveries), net		1.2	%		1.2	%		(0.2	) %		0.1	%		0.6	%		3.5	%		2.5	%		3.0	%
Acquisition amortization		5.9	%		5.6	%		5.5	%		5.1	%		5.5	%		5.1	%		4.8	%		4.9	%
Acquisition depreciation		1.3	%		0.7	%		0.7	%		0.7	%		0.9	%		0.6	%		0.6	%		0.6	%
Special (recoveries) charges, net		(1.6	) %		2.4	%		0.6	%		8.4	%		2.6	%		1.4	%		(5.4	) %		(2.1	) %
Goodwill impairment charge		0.0	%		0.0	%		0.0	%		5.1	%		1.4	%		0.0	%		0.0	%		0.0	%
ADJUSTED OPERATING MARGIN		3.8	%		5.9	%		8.5	%		10.0	%		7.2	%		5.6	%		8.7	%		7.2	%

CIRCOR INTERNATIONAL, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND KEY PERFORMANCE MEASURES (in thousands, except percentages) (unaudited)

	CIRCOR				Aerospace & Defense				Industrial
	2Q 22	2Q 21	Change		2Q 22	2Q 21	Change		2Q 22	2Q 21	Change
Reported Orders	208,423	210,203	(1	)%	69,053	54,243	27	%	139,370	155,959	(11	)%
FX	12,735				2,395				10,340
Organic	221,158	210,203	5	%	71,448	54,243	32	%	149,710	155,959	(4	)%

	CIRCOR				Aerospace & Defense				Industrial
	2Q 22	2Q 21	Change		2Q 22	2Q 21	Change		2Q 22	2Q 21	Change
Reported Revenue	191,376	187,590	2	%	67,271	60,613	11	%	124,105	126,977	(2	)%
FX	11,153				2,036				9,118
Organic	202,529	187,590	8	%	69,307	60,613	14	%	133,223	126,977	5	%

Note regarding financial statements: Restated amounts are computed independently each quarter; therefore, the sum of the quarterly amounts may not equal the total amount for the respective year due to rounding.

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CIRCOR Reports Financial Results for Second Quarter Ended July 3, 2022