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Actionable news in CFX: COLFAX CORPORATION,

Colfax: Annapolis Junction, Md -

The following excerpt is from the company's SEC filing.

October 14, 2015

- Colfax Corporation (NYSE: CFX), a leading global manufacturer of gas- and fluid-handling and fabrication technology products and services, today announced its financial results for the

third quarter

ended

September 25, 2015

For the

, net income was

$18.4 million

per dilutive share. Adjusted net income (as defined below) was

$29.5 million

per share, compared to

$71.3 million

per share.

Net sales were

$969.1 million

in the

, a decrease of

from the prior year. Net s ales decreased

organically compared to the

Third quarter

operating income was

$45.6 million

, with adjusted operating income (as defined below) of

$58.6 million

. Operating expenses included $20.0 million of charges for uncollectible accounts, impairments, and other adjustments. Adjusted operating income margin (as defined below) was

gas- and fluid-handling orders decreased by

$444.2 million

compared to orders of

$539.4 million

, an organic order decrease of

. Gas- and fluid-handling finished the period with backlog of

$1,313.8 million

nine months ended September 25, 2015

$123.5 million

per dilutive share. Adjusted net income (as defined below) was

$137.1 million

per share. Net sales for the

$2.906 billion

compared to net sales for the

. Operating income for the

$219.6 million

$245.2 million

. Adjusted operating income margin (as defined below) for the

Adjusted net income, adjusted net income per share, adjusted operating income, adjusted operating income margin, organic sales decrease and organic order decrease are not financial measures calculated in accordance with generally accepted accounting principles in the U.S. (“GAAP”). See below for a description of the measures' usefulness and a reconciliation of these measures to their most directly comparable GAAP financial measures.

Matthew Trerotola, President and Chief Executive Officer, stated, “Third quarter performance fell short of expectations. Our Fabrication Technology segment continued to face weak end markets, and the declining volume and volatile market and currency movements in Latin America depressed margins. We are aggressively accelerating cost reduction programs in response to this cyclical downturn. By the end of 2016, we now expect to eliminate in excess of $100 million from our cost structure and reduce the workforce by approximately 1,500 compared to where we started 2015. In addition, the Board authorized a stock repurchase of up to $100 million, which speaks to our confidence in the outlook for long-term profitability. These actions should enable us to improve performance in the challenging market environment ahead while still investing in attractive growth opportunities.”

Non-GAAP Financial Measures and Other Adjustments

Colfax has provided in this press release financial information that has not been prepared in accordance with GAAP. These non-GAAP financial measures are adjusted net income, adjusted net income per share, adjusted operating income, adjusted operating income margin, organic sales decrease and organic order decrease. Adjusted net income, adjusted net income per share, adjusted operating income and adjusted operating income margin exclude restructuring and other related charges. Adjusted net income and adjusted net income per share exclude the write-off of certain deferred financing fees and original issue discount associated with the refinancing of Colfax's credit agreement for the

, and the preferred stock conversion inducement payment for the

. The effective tax rates used to calculate adjusted net income and adjusted net income per share are

for the three and

, respectively. The effective tax rates used to calculate adjusted net income and adjusted net income per share are

, respectively. Organic sales decrease and organic order decrease exclude the impact of acquisitions and foreign exchange rate fluctuations. These non-GAAP financial measures assist Colfax in comparing its operating performance on a consistent basis because, among other things, they remove the impact of restructuring and other related charges, write-off of certain deferred financing fees and original issue...


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