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DALLAS--(BUSINESS WIRE)--Feb 21, 2023--
Flowserve Corporation (NYSE: FLS), a leading provider of flow control products and services for the global infrastructure markets, today announced its financial results for the fourth quarter and full year ended December 31, 2022.
Fourth Quarter 2022 Highlights (all comparisons to the 2021 fourth quarter, unless otherwise noted)
Full Year 2022 Highlights (all comparisons to full year 2021, unless otherwise noted)
“We demonstrated improved operational performance in the fourth quarter, resulting in the highest quarterly level of revenue since 2019 and expanded year-over-year adjusted operating margin. In addition, we delivered another quarter of strong bookings that increased our near-record backlog,” said Scott Rowe, Flowserve’s President and Chief Executive Officer. “Our Diversification, Decarbonization and Digitization growth strategy, which is directly aligned to serve the needs of a changing energy landscape, is delivering results and accelerating our growth. Our recently announced acquisition of Velan Inc. will also further our 3D strategy, while enhancing our FCD valve offerings, with highly complementary products in the nuclear, cryogenic and defense markets following close.”
2023 Guidance3
Flowserve reaffirms its Reported and Adjusted EPS guidance for 2023, which was initiated on February 10, 2023, as well as certain other financial metrics, as shown in the table below.
2023 Target Range
Revenue Growth
Up 9.0% to 11.0%
Reported Earnings Per Share
$1.40 - $1.65
Adjusted Earnings Per Share
$1.50 - $1.75
Net Interest Expense
$55 - $60 million
Adjusted Tax Rate
18% - 20%
Capital Expenditures
$75 - $85 million
Fourth Quarter and Full Year 2022 Results Conference Call
Flowserve will host its conference call with the financial community on Wednesday, February 22 nd at 11:00 AM Eastern. Scott Rowe, president and chief executive officer, as well as other members of the management team will be presenting. The call can be accessed by shareholders and other interested parties at www.flowserve.com under the “Investor Relations” section.
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.
3
Adjusted 2023 EPS excludes realignment expenses, the impact from other specific discrete items and below-the-line foreign currency effects and utilizes year-end 2022 FX rates and approximately 131.5 million fully diluted shares.
_
FX impact is calculated by comparing the difference between the actual average FX rates of 2022 and the year-end 2022 spot rates both as applied to our 2023 expectations, divided by the number of shares expected for 2023.
This outlook excludes any contribution from the expected acquisition of Velan Inc., announced previously. Additionally, Flowserve’s 2023 Adjusted EPS target range also excludes expected adjusted items including realignment charges of approximately $20 million, as well as the potential impact of below-the-line foreign currency effects and certain other discrete items which may arise during the course of the year.
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 or integrate and realize the synergies of any acquisition, 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 U.S. export/re-export control, foreign corrupt practice laws, economic sanctions and import laws and regulations; increased aging and slower collection of receivables, particularly in Latin America and other emerging markets; our exposure to fluctuations in foreign currency exchange rates, including in hyperinflationary countries such as Venezuela and Argentina; our furnishing of products and services to nuclear power plant facilities and other critical processes; potential adverse consequences resulting from litigation to which we are a party, such as litigation involving asbestos-containing material claims; expectations regarding acquisitions and the integration of acquired businesses; our relative geographical profitability and its impact on our utilization of deferred tax assets, including foreign tax credits; the potential adverse impact of an impairment in the carrying value of goodwill or other intangible assets; our dependence upon third-party suppliers whose failure to perform timely could adversely affect our business operations; the highly competitive nature of the markets in which we operate; environmental compliance costs and liabilities; potential work stoppages and other labor matters; access to public and private sources of debt financing; our inability to protect our intellectual property in the U.S., as well as in foreign countries; obligations under our defined benefit pension plans; our internal control over financial reporting may not prevent or detect misstatements because of its inherent limitations, including the possibility of human error, the circumvention or overriding of controls, or fraud; the recording of increased deferred tax asset valuation allowances in the future or the impact of tax law changes on such deferred tax assets could affect our operating results; our information technology infrastructure could be subject to service interruptions, data corruption, cyber-based attacks or network security breaches, which could disrupt our business operations and result in the loss of critical and confidential information; ineffective internal controls could impact the accuracy and timely reporting of our business and financial results; and other factors described from time to time in our filings with the Securities and Exchange Commission.
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 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. Throughout our materials we refer to non-GAAP measures as “Adjusted.” 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. CONSOLIDATED STATEMENTS OF INCOME(Unaudited)
Three Months Ended December 31, (Amounts in thousands, except per share data)
2022
2021
Sales
$
1,038,959
$
919,456
Cost of sales
(743,718
)
(652,362
)Gross profit
295,241
267,094
Selling, general and administrative expense
(193,588
)
(187,111
)Net earnings from affiliates
3,647
5,147
Operating income
105,300
85,130
Interest expense
(12,909
)
(11,770
)Loss on extinguishment of debt
-
(38,003
)Interest income
1,025
871
Other expense, net
(28,711
)
(15,425
)Earnings before income taxes
64,705
20,803
(Provision for) benefit from income taxes
60,257
(1,335
)Net earnings, including noncontrolling interests
124,962
19,468
Less: Net earnings attributable to noncontrolling interests
(3,633
)
(2,738
)Net earnings attributable to Flowserve Corporation
$
121,329
$
16,730
Net earnings per share attributable to Flowserve Corporation common shareholders: Basic
0.93
0.13
Diluted
0.92
0.13
Weighted average shares - basic
130,710
130,245
Weighted average shares - diluted
131,560
130,829
RECONCILIATION OF NON-GAAP MEASURES(Unaudited)
Three Months Ended December 31, 2022(Amounts in thousands, except per share data)
As Reported (a)
Realignment (1)
Other Items
As Adjusted Sales
$
1,038,959
$
-
$
-
$
1,038,959
Gross profit
295,241
(481
)
(3,646
)
(3)
299,368
Gross margin
28.4
%
-
-
28.8
%
Selling, general and administrative expense
(193,588
)
480
(2,885
)
(4)
(191,183
)Net earnings from affiliates
3,647
-
-
3,647
Operating income
105,300
(1
)
(6,531
)
111,832
Operating income as a percentage of sales
10.1
%
-
-
10.8
%
Interest and other expense, net
(40,595
)
-
(25,206
)
(5)
(15,389
)
Earnings before income taxes
64,705
(1
)
(31,737
)
96,443
(Provision for) benefit from income taxes
60,257
1,866
(2)
68,144
(6)
(9,753
)Tax Rate
-93.1
%
186600.0
%
214.7
%
10.1
% Net earnings attributable to Flowserve Corporation
$
121,329
$
1,865
$
36,407
$
83,057
Net earnings per share attributable to Flowserve Corporation common shareholders:Basic
$
0.93
$
0.01
$
0.28
$
0.64
Diluted
0.92
0.01
0.28
0.63
Basic number of shares used for calculation
130,710
130,710
130,710
130,710
Diluted number of shares used for calculation
131,560
131,560
131,560
131,560
(a) Reported in conformity with U.S. GAAP Notes:(1) Represents realignment adjustments incurred as a result of realignment programs(2) Includes tax impact of items above and reversal of realignment exit tax ($2.1 million)(3) Represents incremental reserve of Russia related financial exposures ($8.1 million) and reversals of expenses that were adjusted for Non-GAAP measures in previous periods ($4.5 million)(4) Represents incremental reserve of Russia related financial exposures ($5.5 million) and reversals of expenses that were adjusted for Non-GAAP measures in previous periods ($2.6 million)(5) Represents below-the-line foreign exchange impacts(6) Includes tax impact of items above and tax benefit due to the release of tax valuation allowance ($59.3 million) RECONCILIATION OF NON-GAAP MEASURES(Unaudited)
Three Months Ended December 31, 2021(Amounts in thousands, except per share data)
As Reported (a)
Realignment (1)
Other Items
As Adjusted Sales
$
919,456
$
-
$
-
$
919,456
Gross profit
267,094
(1,031
)
-
268,125
Gross margin
29.0
%
-
-
29.2
% Selling, general and administrative expense
(187,111
)
808
-
(187,919
)Gain on sale of business
-
-
-
-
Net earnings from affiliates
5,147
-
-
5,147
Operating income
85,130
(223
)
-
85,353
Operating income as a percentage of sales
9.3
%
-
-
9.3
% Interest and other expense, net
(64,327
)
-
(51,355
)
(3)
(12,972
) Earnings before income taxes
20,803
(223
)
(51,355
)
72,381
(Provision for) benefit from income taxes
(1,335
)
(1,396
)
(2)
10,788
(4)
(10,727
)Tax Rate
6.4
%
-626.0
%
21.0
%
14.8
% Net earnings attributable to Flowserve Corporation
$
16,730
$
(1,619
)
$
(40,567
)
$
58,916
Net earnings per share attributable to Flowserve Corporation common shareholders:Basic
$
0.13
$
(0.01
)
$
(0.31
)
$
0.45
Diluted
0.13
(0.01
)
(0.31
)
0.45
Basic number of shares used for calculation
130,245
130,245
130,245
130,245
Diluted number of shares used for calculation
130,829
130,829
130,829
130,829
(a) Reported in conformity with U.S. GAAP Notes:(1) Represents realignment expense incurred as a result of realignment programs(2) Includes tax impact of items above(3) Represents below-the-line foreign exchange impacts and of expense as a result of early extinguishment of debt and duplicate interest expense ($38.7 million)(4) Includes tax impact of items above SEGMENT INFORMATION(Unaudited) FLOWSERVE PUMP DIVISION
Three Months Ended December 31, (Amounts in millions, except percentages)
2022
2021
Bookings
$
786.2
$
693.5
Sales
739.4
648.9
Gross profit
217.1
198.3
Gross profit margin
29.4
%
30.6
%SG&A
130.1
140.9
Segment operating income
90.7
62.5
Segment operating income as a percentage of sales
12.3
%
9.6
% FLOW CONTROL DIVISION
Three Months Ended December 31, (Amounts in millions, except percentages)
2022
2021
Bookings
$
324.9
$
278.8
Sales
301.8
272.8
Gross profit
87.5
80.3
Gross profit margin
29.0
%
29.4
%SG&A
49.4
50.3
Segment operating income
38.1
30.0
Segment operating income as a percentage of sales
12.6
%
11.0
% CONSOLIDATED STATEMENTS OF INCOME(Unaudited)
Year Ended December 31,(Amounts in thousands, except per share data)
2022
2021
2020
Sales
$
3,615,120
$
3,541,060
$
3,728,134
Cost of sales
(2,620,825
)
(2,491,335
)
(2,611,365
)Gross profit
994,295
1,049,725
1,116,769
Selling, general and administrative expense
(815,545
)
(797,076
)
(878,245
)Gain on sale of business
-
1,806
-
Net earnings from affiliates
18,469
16,304
11,753
Operating income
197,219
270,759
250,277
Interest expense
(46,247
)
(57,617
)
(56,185
)Loss on extinguishment of debt
-
(46,176
)
(1,201
)Interest income
3,963
2,764
4,175
Other income (expense), net
(559
)
(36,142
)
5,226
Earnings before income taxes
154,376
133,588
202,292
(Provision for) benefit from income taxes
43,639
2,594
(61,417
)Net earnings, including noncontrolling interests
198,015
136,182
140,875
Less: Net earnings attributable to noncontrolling interests
(9,326
)
(10,233
)
(10,455
)Net earnings attributable to Flowserve Corporation
$
188,689
$
125,949
$
130,420
Net earnings per share attributable to Flowserve Corporation common shareholders: Basic
$
1.44
$
0.97
$
1.00
Diluted
1.44
0.96
1.00
Weighted average shares - basic
130,630
130,305
130,395
Weighted average shares - diluted
131,315
130,857
131,050
RECONCILIATION OF NON-GAAP MEASURES(Unaudited)
Twelve Months Ended December 31, 2022(Amounts in thousands, except per share data)
As Reported (a)
Realignment (1)
Other Items
As Adjusted Sales
$
3,615,120
$
-
$
-
$
3,615,120
Gross profit
994,295
(355
)
(13,490
)
(3)
1,008,140
Gross margin
27.5
%
-
-
27.9
% Selling, general and administrative expense
(815,545
)
520
(13,591
)
(4)
(802,474
)Net earnings from affiliates
18,469
-
-
18,469
Operating income
197,219
165
(27,081
)
224,135
Operating income as a percentage of sales
5.5
%
-
-
6.2
% Interest and other expense, net
(42,843
)
-
9,694
(5)
(52,537
) Earnings before income taxes
154,376
165
(17,387
)
171,598
(Provision for) benefit from income taxes
43,639
1,799
(2)
59,689
(6)
(17,849
)Tax Rate
-28.3
%
-1090.3
%
343.3
%
10.4
% Net earnings attributable to Flowserve Corporation
$
188,689
$
1,964
$
42,302
$
144,423
Net earnings per share attributable to Flowserve Corporation common shareholders:Basic
$
1.44
$
0.02
$
0.31
$
1.11
Diluted
1.44
0.01
0.33
1.10
Basic number of shares used for calculation
130,630
130,630
130,630
130,630
Diluted number of shares used for calculation
131,315
131,315
131,315
131,315
(a) Reported in conformity with U.S. GAAP Notes:(1) Represents realignment adjustments incurred as a result of realignment programs(2) Includes tax impact of items above and reversal of realignment exit tax ($2.1 million)(3) Represents the reserve of Russia related financial exposures ($18.2 million) and reversals of expenses that were adjusted for Non-GAAP measures in previous periods ($4.7 million)(4) Represents the reserve of Russia related financial exposures ($15.7 million), a discrete asset write-down ($3.0 million) and reversals of expenses that were adjusted for Non-GAAP measures in previous periods ($5.1 million)(5) Represents below-the-line foreign exchange impacts(6) Includes tax impact of items above and tax benefit due to the release of tax valuation allowance ($59.3 million) RECONCILIATION OF NON-GAAP MEASURES(Unaudited)
Year Ended December 31, 2021(Amounts in thousands, except per share data)
As Reported (a)
Realignment (1)
Other Items
As Adjusted Sales
$
3,541,060
$
-
$
-
$
3,541,060
Gross profit
1,049,725
(16,844
)
-
1,066,568
Gross margin
29.6
%
-
-
30.1
% Selling, general and administrative expense
(797,076
)
(5,646
)
-
(791,431
)Gain on sale of business
1,806
-
1,806
(3)
-
Net earnings from affiliates
16,304
-
-
16,304
Operating income
270,759
(22,490
)
1,806
291,441
Operating income as a percentage of sales
7.6
%
-
-
8.2
% Interest and other expense, net
(137,171
)
-
(75,188
)
(4)
(61,982
) Earnings before income taxes
133,588
(22,490
)
(73,382
)
229,459
(Provision for) benefit from income taxes
2,594
7,070
(2)
33,522
(5)
(37,997
)Tax Rate
-1.9
%
31.4
%
45.7
%
16.6
% Net earnings attributable to Flowserve Corporation
$
125,949
$
(15,420
)
$
(39,860
)
$
181,229
Net earnings per share attributable to Flowserve Corporation common shareholders:Basic
$
0.97
$
(0.12
)
$
(0.30
)
$
1.39
Diluted
0.96
(0.12
)
(0.30
)
1.38
Basic number of shares used for calculation
130,305
130,305
130,305
130,305
Diluted number of shares used for calculation
130,857
130,857
130,857
130,857
(a) Reported in conformity with U.S. GAAP Notes:(1) Represents realignment expense incurred as a result of realignment programs(2) Includes tax impact of items above and realignment related tax release(3) Represents final settlement gain on sale of business in 2018(4) Represents below-the-line foreign exchange impacts and expense as a result of early extinguishment of debt and duplicate interest expense ($47.7 million)(5) Includes tax impact of items above and tax benefit related to legal entity restructuring of foreign holding companies ($17.9 million) SEGMENT INFORMATION(Unaudited) FLOWSERVE PUMP DIVISION
Year Ended December 31,(Amounts in millions, except percentages)
2022
2021
2020
Bookings
$
3,214.7
$
2,675.7
$
2,358.4
Sales
2,522.5
2,470.8
2,675.7
Gross profit
728.1
760.4
811.4
Gross profit margin
28.9
%
30.8
%
30.3
%SG&A
538.5
535.6
552.2
Gain on sale of business
-
1.8
-
Segment operating income
208.0
243.2
271.0
Segment operating income as a percentage of sales
8.2
%
9.8
%
10.1
% FLOW CONTROL DIVISION
Year Ended December 31,(Amounts in millions, except percentages)
2022
2021
2020
Bookings
$
1,247.2
$
1,112.8
$
1,065.8
Sales
1,100.6
1,075.9
1,057.5
Gross profit
305.5
316.7
321.9
Gross profit margin
27.8
%
29.4
%
30.4
%SG&A
192.1
197.4
196.3
Segment operating income
113.4
119.7
125.6
Segment operating income as a percentage of sales
10.3
%
11.1
%
11.9
%
Fourth Quarter and Full Year 2022 - Segment Results
(dollars in millions, comparison vs. 2021 fourth quarter and full year, unaudited)
FPD
FCD 4th QtrYTD4th QtrYTDBookings
$
786.2
$
3,214.7
$
324.9
$
1,247.2
- vs. prior year
13.4
%
20.1
%
16.5
%
12.1
%- on constant currency
18.7
%
25.2
%
21.4
%
16.5
% Sales
$
739.4
$
2,522.5
$
301.8
$
1,100.6
- vs. prior year
13.9
%
2.1
%
10.6
%
2.3
%- on constant currency
19.3
%
6.8
%
16.6
%
6.9
% Gross Profit
$
217.1
$
728.1
$
87.5
$
305.5
- vs. prior year
9.5
%
-4.2
%
9.0
%
-3.5
% Gross Margin (% of sales)
29.4
%
28.9
%
29.0
%
27.8
%- vs. prior year (in basis points) (120) bps (190) bps(40) bps(160) bps Operating Income
$
90.7
$
208.0
$
38.1
$
113.4
- vs. prior year
45.1
%
-14.5
%
27.0
%
-5.3
%- on constant currency
52.9
%
-9.4
%
33.4
%
-2.0
% Operating Margin (% of sales)
12.3
%
8.2
%
12.6
%
10.3
%- vs. prior year (in basis points) 270 bps (160) bps 160 bps(80) bps Adjusted Operating Income *
$
96.6
$
229.3
$
38.7
$
119.4
- vs. prior year
53.1
%
-10.7
%
26.9
%
-2.5
%- on constant currency
60.8
%
-5.9
%
33.1
%
0.7
% Adj. Oper. Margin (% of sales)*
13.1
%
9.1
%
12.8
%
10.8
%- vs. prior year (in basis points)340 bps(130) bps160 bps(60) bps Backlog
$
2,008.9
$
745.5
* Adjusted Operating Income and Adjusted Operating Margin exclude realignment charges and other specific discrete items CONSOLIDATED BALANCE SHEETS(Unaudited)
December 31,
December 31,(Amounts in thousands, except per share data)
2022
2021
ASSETS Current assets: Cash and cash equivalents
$
434,971
$
658,452
Accounts receivable, net
868,632
739,210
Contract assets, net
233,457
195,598
Inventories, net
803,198
678,287
Prepaid expenses and other
110,714
117,130
Total current assets
2,450,972
2,388,677
Property, plant and equipment, net
500,945
515,927
Operating lease right-of-use assets, net
174,980
193,863
Goodwill
1,168,124
1,196,479
Deferred taxes
149,290
44,049
Other intangible assets, net
134,503
152,463
Other assets, net
211,820
258,310
Total assets
$
4,790,634
$
4,749,768
LIABILITIES AND EQUITY Current liabilities: Accounts payable
$
476,747
$
410,062
Accrued liabilities
427,578
445,092
Contract liabilities
256,963
202,965
Debt due within one year
49,335
41,058
Operating lease liabilities
32,528
32,628
Total current liabilities
1,243,151
1,131,805
Long-term debt due after one year
1,224,151
1,261,770
Operating lease liabilities
155,196
166,786
Retirement obligations and other liabilities
309,529
352,062
Shareholders’ equity: Common shares, $1.25 par value
220,991
220,991
Shares authorized – 305,000 Shares issued – 176,793 and 176,793, respectfully Capital in excess of par value
507,484
506,386
Retained earnings
3,774,209
3,691,023
Treasury shares, at cost – 46,359 and 46,794 shares, respectively
(2,036,882
)
(2,057,706
)Deferred compensation obligation
6,979
7,214
Accumulated other comprehensive loss
(647,788
)
(563,589
)Total Flowserve Corporation shareholders' equity
1,824,993
1,804,319
Noncontrolling interests
33,614
33,026
Total equity
1,858,607
1,837,345
Total liabilities and equity
$
4,790,634
$
4,749,768
CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited)
Year Ended December 31,(Amounts in thousands)
2022
2021
2020
Cash flows – Operating activities: Net earnings, including noncontrolling interests
$
198,015
$
136,182
$
140,875
Adjustments to reconcile net earnings to net cash provided (used) by operating activities: Depreciation
77,636
85,175
86,175
Amortization of intangible and other assets
13,317
14,647
14,578
Loss on extinguishment of debt
-
46,176
1,201
Stock-based compensation
25,530
29,478
27,252
Foreign currency, asset write downs and other non-cash adjustments
(27,758
)
29,772
4,277
Change in assets and liabilities:Accounts receivable, net
(152,011
)
(8,675
)
45,648
Inventories, net
(147,492
)
(32,124
)
15,306
Contract assets, net
(41,768
)
74,333
4,258
Prepaid expenses and other assets, net
17,461
1,302
34,262
Accounts payable
78,968
(19,505
)
(22,571
)Contract liabilities
61,684
14,196
(34,066
)Accrued liabilities and income taxes payable
(5,226
)
(13,948
)
50,203
Retirement obligations and other
(1,430
)
(15,690
)
3,636
Net deferred taxes
(136,936
)
(91,200
)
(60,497
)Net cash flows provided (used) by operating activities
(40,010
)
250,119
310,537
Cash flows – Investing activities: Capital expenditures
(76,287
)
(54,936
)
(57,405
)Proceeds from disposal of assets
4,422
2,663
15,705
Proceeds from termination of cross-currency swap
66,004
-
-
Affiliate investment activity
(225
)
(7,204
)
-
Net cash flows provided (used) by investing activities
(6,086
)
(59,477
)
(41,700
)Cash flows – Financing activities:Payments on senior notes
-
(1,243,548
)
(191,258
)Proceeds from issuance of senior notes
-
498,280
498,280
Payments on long-term debt
(32,500
)
(7,500
)
-
Proceeds from issuance of long-term debt
-
300,000
-
Payment of deferred loan cost
-
(6,739
)
(4,572
)Proceeds from short-term financing
45,000
-
-
Payments on short-term financing
(45,000
)
-
-
Proceeds under other financing arrangements
1,733
1,408
2,285
Payments under other financing arrangements
(1,790
)
(2,086
)
(5,088
)Payments related to tax withholding for stock-based compensation
(4,683
)
(5,984
)
(4,607
)Repurchases of common shares
-
(17,531
)
(32,112
)Payments of dividends
(104,549
)
(104,604
)
(104,159
)Other
(8,223
)
(11,403
)
(11,182
)Net cash flows provided (used) by financing activities
(150,012
)
(599,707
)
147,587
Effect of exchange rate changes on cash
(27,373
)
(27,757
)
7,870
Net change in cash and cash equivalents
(223,481
)
(436,822
)
424,294
Cash and cash equivalents at beginning of year
658,452
1,095,274
670,980
Cash and cash equivalents at end of year
$
434,971
$
658,452
$
1,095,274
Income taxes paid (net of refunds)
$
60,085
$
65,621
$
75,342
Interest paid
41,629
72,247
57,041
CONSOLIDATED QUARTERLY FINANCIAL DATA(Unaudited)(Amounts in millions, except per share data)
2022Quarter
4th
3rd
2nd
1stSales
1,039.0
872.9
882.2
821.1
Gross profit
295.2
239.6
249.8
209.6
Earnings before income taxes
64.7
42.5
57.7
(10.5
)Net earnings attributable to Flowserve Corporation
121.3
38.4
44.8
(15.8
)Earnings per share(1):Basic
$
0.93
$
0.29
$
0.34
$
(0.12
)Diluted
$
0.92
$
0.29
$
0.34
$
(0.12
)
2021Quarter
4th
3rd
2nd
1stSales
$
919.5
$
866.1
$
898.2
$
857.3
Gross profit
267.1
253.5
278.2
250.9
Earnings before income taxes
20.8
41.4
50.5
21.0
Net earnings attributable to Flowserve Corporation
16.7
49.8
45.4
14.1
Earnings per share (1):Basic
$
0.13
$
0.38
$
0.35
$
0.11
Diluted
$
0.13
$
0.38
$
0.35
$
0.11
(1) Earnings per share is computed independently for each of the quarters presented. The sum of the quarters may not equal the total year amount due to the impact of changes in weighted average quarterly shares outstanding or rounding.
View source version on businesswire.com:https://www.businesswire.com/news/home/20230221005707/en/
CONTACT: Jay Roueche, Vice President, Investor Relations & Treasurer (972) 443-6560
Mike Mullin, Director, Investor Relations (214) 697-8568
KEYWORD: UNITED STATES NORTH AMERICA TEXAS
INDUSTRY KEYWORD: ENGINEERING OTHER ENERGY OIL/GAS MANUFACTURING ENERGY OTHER MANUFACTURING MACHINERY
SOURCE: Flowserve Corporation
Copyright Business Wire 2023.
PUB: 02/21/2023 04:05 PM/DISC: 02/21/2023 04:07 PM
http://www.businesswire.com/news/home/20230221005707/en