Liberty Posted February 6, 2014 Share Posted February 6, 2014 Q4: http://corporate.colfaxcorp.com/wp-content/uploads/2014/02/CFX_News_2014_2_6_General_Releases.pdf Colfax Corporation (NYSE: CFX) today announced its financial results for the fourth quarter ended December 31, 2013. For the fourth quarter, net income was $32.0 million, or $0.31 per dilutive share. Adjusted net income (as defined below) was $70.1 million, or $0.61 per share, which includes a 2 cent per share gain related to the reduction of an uncertain tax position. Net sales were $1.171 billion in the fourth quarter, an increase of 14.0% from the prior year. Net sales increased 10.2% organically. Fourth quarter operating income was $119.6 million, with adjusted operating income (as defined below) of $124.4 million, an increase of 40%. Fourth quarter gas- and fluid-handling orders were $547.8 million compared to orders of $520.3 million in the prior year, an increase of 5.3%. Gas- and fluid-handling finished the period with record backlog of $1.577 billion. Full year net income was $158.2 million, or $1.54 per dilutive share, with adjusted net income (as defined below) of $229.8 million, or $2.04 per share. Net sales for 2013 were $4.207 billion, an increase of 7.5% compared to net sales for 2012; this reflects a 2.7% increase organically. Full year operating income was $406.4 million, with adjusted operating income (as defined below) of $431.4 million, an increase of 29%. Full year gas- and fluid-handling orders were $2.061 billion, an increase of 3.3% over the prior year. Adjusted net income, adjusted net income per share, adjusted operating income, organic sales growth and organic order growth (decline) 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. Steve Simms, President and Chief Executive Officer, stated, "We are pleased to finish the year with another solid quarter of operating performance. Our fabrication technology group saw year-on-year organic growth this quarter, as well as continued strong operational performance. Gas- and fluid-handling also out performed our revenue expectations this quarter, but the dilutive impact of acquisitions in the quarter left overall segment margins relatively flat. Integration of these acquisitions is progressing well, and these businesses are expected to significantly increase our 2014 earnings. The deployment of CBS across this organization has reduced working capital, fundamentally changed our cost structure and is positioning us for future organic growth. We exit the year confident in our ability to deliver our previously stated 2014 guidance." Presentation slides here: http://files.shareholder.com/downloads/CLFX/2942708349x0x723645/af03ec70-a13d-4509-99a4-a09d817e2adb/Fourth%20Quarter%202013%20Earnings%20Conference%20Call%20-%20FINAL%20Draft.pdf Looks like margins are going up nicely, which is a major part of the thesis. Link to comment Share on other sites More sharing options...
Liberty Posted February 12, 2014 Share Posted February 12, 2014 Just opened a position in CFX, hopefully at the conf. call tomorrow they will give me good news. Looks like you had impeccable timing, at least in the short term. Link to comment Share on other sites More sharing options...
Dustin T Posted February 12, 2014 Share Posted February 12, 2014 Just opened a position in CFX, hopefully at the conf. call tomorrow they will give me good news. Looks like you had impeccable timing, at least in the short term. It always makes you smile when it bumps right after you buy, but I'm hoping the stock price stays down in the near term. Link to comment Share on other sites More sharing options...
Dustin T Posted February 12, 2014 Share Posted February 12, 2014 Colfax to buy Victor Technologies for $947M, announces 6.5M-share offering • 4:48 PM Colfax (CFX) agrees to acquire Victor Technologies, a manufacturer of cutting, gas control and specialty welding solutions, from Irving Place Capital for $947M, including the assumption of debt. CFX says it expects the acquisition to be immediately accretive to adjusted EPS and free cash flow. To finance the deal, CFX will begin a public offering of 6.5M common shares. CFX -1.5% AH. Just saw this on seeking alpha, I think its good news. If they follow the Danaher model they will acquire "bolt on" companies like this when they believe they have the ability to improve the margins of the acquisition. Link to comment Share on other sites More sharing options...
Liberty Posted February 12, 2014 Share Posted February 12, 2014 It always makes you smile when it bumps right after you buy, but I'm hoping the stock price stays down in the near term. Agreed if you don't have a full position and/or they are a company doing buybacks, absolutely. If not, it can shoot up straight away, I won't care :) Almost a billion for Victor Tech, that's pretty big for Colfax. Part of an existing platform, but not quite a regular bolt on. Charter was transformational and was 2.6b, so this is smaller, but still significant. Should be good if they just keep executing the way they have been. http://victortechnologies.com/index.php/investor-relations/webcasts-aamp-presentations.html http://ir.colfaxcorp.com/releasedetail.cfm?ReleaseID=825365 http://www.bloomberg.com/news/2014-02-12/colfax-to-buy-irving-place-s-victor-as-bdt-converts-stake.html Concurrently with Colfax's agreement to acquire Victor, BDT has voluntarily converted all of its preferred shares to common stock. Conversion occurred under the existing conversion rate with 12.2 million common shares issued in the exchange. Colfax is paying an amount equal to the dividends that would have been due through January 24, 2015, resulting in a cash outlay of $23.4 million. 2013 net sales are 500m and adj. EBIDTA is around 100 million. Gross margin in the first 9 months of 2013 was 37.8%, and EBITDA margin was 19.8%. http://victortechnologies.com/Investor%20Relations/News/Colfax_Acquisition_Feb2014.pdf Link to comment Share on other sites More sharing options...
Liberty Posted April 24, 2014 Share Posted April 24, 2014 http://www.colfaxcorp.com/wp-content/uploads/2014/04/CFX_News_2014_4_24_General_Releases.pdf · First quarter net income per dilutive share of $0.22, adjusted net income per share of $0.43 · First quarter net sales increased 11.3% (5.6% organically) to $1.054 billion · Gas- and fluid-handling finished the period with record backlog of $1.592 billion Update: Well, if someone was looking for an entry point, they certainly had one this morning. Short window, though. Link to comment Share on other sites More sharing options...
Liberty Posted July 17, 2014 Share Posted July 17, 2014 Both CFX and DHR down a fair bit today, bad quarter for CFX. Haven't looked at DHR, but I think they have lower than expected guidance for 2014. Link to comment Share on other sites More sharing options...
buylowersellhigh Posted July 18, 2014 Share Posted July 18, 2014 Any thoughts on the company or stock after the call/guidance? Has had a nice run.. Link to comment Share on other sites More sharing options...
CorpRaider Posted September 29, 2014 Share Posted September 29, 2014 Your window is open again. ;D Link to comment Share on other sites More sharing options...
Liberty Posted September 29, 2014 Share Posted September 29, 2014 Your window is open again. ;D I sold my CFX in the high 60s because I wanted to put more money in something else that I thought was more attractive. Guess I was lucky with my timing. I still think it'll probably do well in the long term, but I have no intention to get back in at this point. Link to comment Share on other sites More sharing options...
Dustin T Posted December 8, 2014 Share Posted December 8, 2014 I added to my position Wednesday, I'm still a bull long term on this one. Link to comment Share on other sites More sharing options...
berkshire101 Posted December 8, 2014 Share Posted December 8, 2014 Does Colfax publish an annual report/letter to shareholders? I can't seem to find one on their website. Link to comment Share on other sites More sharing options...
AzCactus Posted December 8, 2014 Share Posted December 8, 2014 This should work: http://files.shareholder.com/downloads/CLFX/3707055332x0x725505/23E9BD13-75C3-4E2C-8301-BA76B2B21EB0/Colfax_2012_10-K_Final_including_exhibits.pdf David Link to comment Share on other sites More sharing options...
berkshire101 Posted December 8, 2014 Share Posted December 8, 2014 This should work: http://files.shareholder.com/downloads/CLFX/3707055332x0x725505/23E9BD13-75C3-4E2C-8301-BA76B2B21EB0/Colfax_2012_10-K_Final_including_exhibits.pdf David Thanks. But is there a letter to shareholder written by management? Link to comment Share on other sites More sharing options...
gfp Posted February 13, 2015 Share Posted February 13, 2015 Mitchell Rales bought $23 million worth in the open market - http://www.sec.gov/Archives/edgar/data/1015014/000120919115012898/xslF345X03/doc4.xml Link to comment Share on other sites More sharing options...
gfp Posted May 19, 2015 Share Posted May 19, 2015 small bolt-on purchased from GE Oil & Gas - $185m http://www.colfaxcorp.com/wp-content/uploads/2015/05/Roots-Press-Release-May-18-2015.pdf Link to comment Share on other sites More sharing options...
Scudbucket Posted June 23, 2015 Share Posted June 23, 2015 Has anyone come across the bear case for CFX? Also, does anyone have arguments against the business CFX is in? In other words, from a purely business perspective, not taking into account valuation, why would someone not want to invest in Colfax? Link to comment Share on other sites More sharing options...
xtreeq Posted June 24, 2015 Share Posted June 24, 2015 Has anyone come across the bear case for CFX? Also, does anyone have arguments against the business CFX is in? In other words, from a purely business perspective, not taking into account valuation, why would someone not want to invest in Colfax? Looks like some big shareholders don't want to be invested in Colfax anymore http://www.sec.gov/Archives/edgar/data/1420800/000119312515058400/d878854d424b7.htm Link to comment Share on other sites More sharing options...
gfp Posted June 24, 2015 Share Posted June 24, 2015 That may be the case or it may not. The filing you posted is from February and it only registers the shares so that they can be sold, so far those shareholders have not sold. The shares were registered pursuant to the agreement from 2012 when Charter was acquired. It's routine business. Has anyone come across the bear case for CFX? Also, does anyone have arguments against the business CFX is in? In other words, from a purely business perspective, not taking into account valuation, why would someone not want to invest in Colfax? Looks like some big shareholders don't want to be invested in Colfax anymore http://www.sec.gov/Archives/edgar/data/1420800/000119312515058400/d878854d424b7.htm Link to comment Share on other sites More sharing options...
CorpRaider Posted June 24, 2015 Share Posted June 24, 2015 They've been having some pretty material execution problems in one of the businesses, resulting in canning the guy in charge thereof. They have exposure to oil and gas industry, which may be going into nuclear winter. One wonders if the industrial spin-off from DHR will get more of the attention from the Rales and the better managerial talent. Link to comment Share on other sites More sharing options...
eclecticvalue Posted August 5, 2015 Share Posted August 5, 2015 The price has come down significantly from when I bought it :(. Probably it's now the best time to get in. Link to comment Share on other sites More sharing options...
thefatbaboon Posted August 5, 2015 Share Posted August 5, 2015 Has anyone come across the bear case for CFX? Also, does anyone have arguments against the business CFX is in? In other words, from a purely business perspective, not taking into account valuation, why would someone not want to invest in Colfax? Not a bear case necessarily... But I think many had bought this thinking that its businesses were Danaher, Transdigm type businesses. Which they're not. Colfax is made up of welding, fluid handling and heavy duty fans. Colfax is more like Precision Castparts, or the cyclical end of the ITW group of businesses. Good businesses to be sure , with serious competitive advantages - but not worth buying at the multiples of the super sticky non-cyclicals. Link to comment Share on other sites More sharing options...
no_free_lunch Posted August 5, 2015 Share Posted August 5, 2015 I think corpraider did a decent job on the bear case, I learned a few things. I would just add that even in the bull case the numbers really didn't seem that attractive. It seemed like even with a return to higher margins you were just sort of justifying the $50-60 price. I guess you then had to depend on acquisitions and additional margin improvement past the target for growth. At current prices it is getting more interesting.. Link to comment Share on other sites More sharing options...
CorpRaider Posted August 5, 2015 Share Posted August 5, 2015 Yeah man, pretty cyclical end markets with apparently a lot of E&P and midstream energy exposure. Also, lots of strong dollar headwinds and you never know about a CEO transition. I've pretty much decided to build some energy/gas exposure via guys like this and the midstream companies rather than step right into the equities in E&P space. I don't like it here though. P.S. Yeah, I had it "filed" under a closer look if it hit the mid 30's. But there has been further deterioration in the end markets (with people talking about 1980s not 1990s for comparable energy bear markets) and the CEO change in the interim, so I would probably walk that down if and when it got there. Link to comment Share on other sites More sharing options...
Scudbucket Posted August 6, 2015 Share Posted August 6, 2015 I think it's very attractive here. They're executing what is within their control. In the long run, I think it's very likely people who buy at this price make money. Link to comment Share on other sites More sharing options...
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