ANNAPOLIS JUNCTION, MD, Feb. 18, 2021 (GLOBE NEWSWIRE) -- Colfax Corporation (NYSE: CFX), a leading diversified technology company, today announced its financial results for the fourth quarter of 2020.
The Company earned fourth quarter net income from continuing operations of $41 million, or $0.29 per share, and adjusted earnings of $0.51 per share. These results compare with prior year results of $0.24 and $0.61, respectively. Adjustments are included in this release. Colfax fourth quarter net sales increased 3% sequentially from its third quarter results to $828 million. These results are 4% lower than the prior year fourth quarter results on an organic sales-per-day basis and 7% lower overall. The Company also posted fourth quarter adjusted EBITA of $113 million, or 13.6% of sales, a sequential increase of 20 basis points over the third quarter. Prior year comparable margins were 15.1%. During the quarter, the Company achieved a significant increase in cash flow, generating operating cash flow of $129 million and free cash flow of $96 million.
“Our strong revenue, earnings and cash flow performance demonstrates further recovery in our markets and effective operating execution,” said Matt Trerotola, Colfax President and CEO. “Customer demand in our Fabrication Technology business strengthened at a faster pace than expected, contributing to strong sales and profit performance. Sales in our MedTech business started the quarter as expected and showed strong relative performance despite constraints on elective surgeries that deferred some procedures and related revenue. We enter the new year with a clear path to healthier market conditions, strong growth in financial results and accelerating momentum.”
The Company also announced that it recently completed the acquisition of two medical technology businesses. LiteCure®, a market leader in therapeutic laser technology for human and animal health, strengthens Colfax’s leadership position in physical therapy and rehabilitation with higher growth opportunities. Trilliant Surgical® provides innovative surgical solutions in the high-growth foot and ankle market segment. Combined with the previously announced acquisition of the Scandinavian Total Ankle Replacement (STAR™) system, Colfax has established a new platform to expand the Company’s leadership in extremities.
“These acquisitions are consistent with our strategy to accelerate the growth of our Medical Technology portfolio through attractive additions in strategic, high-growth and high-margin adjacency businesses,” said Mr. Trerotola. “These transactions are immediately accretive to growth and gross margins, with operating margins projected to rapidly expand with revenue growth over time. Our disciplined acquisition program remains active, and we expect to announce additional transactions this year.”
In the fourth quarter, Colfax’s Fabrication Technology segment sales decreased 2% on an organic sales-per-day basis versus the prior year quarter and 7% overall, including a 1% negative impact from unfavorable currency trends. The segment reported adjusted EBITA margins of 15.4%, compared to 15.6% in the prior year. Medical Technology segment sales in the quarter decreased 7% on an organic sales-per-day basis compared to the prior year and 7% overall, including a 2% benefit from positive currency trends. The segment reported adjusted EBITA margins of 16.0%, compared to 19.2% in the prior year.
2021 Financial Outlook
Colfax also announced expectations for significant growth in sales, earnings and cash flow in 2021. Revenue is expected to grow 15-18% from the prior year, sequentially improving throughout the year due to seasonality and expected recovery in customer demand. The Company expects adjusted earnings to grow at least 44% to $2.00 to $2.15 per diluted share and is projecting free cash flow of $250 million or more. For the first quarter 2021, Colfax expects adjusted earnings of $0.35 to $0.40 per diluted share.
Investor Day Scheduled for Thursday, March 11, 2021
Colfax also announced it will host an Investor Day on Thursday, March 11, 2021 from 9:00 a.m. to approximately 1:00 p.m. Eastern time. The event will be held virtually and include presentations from the Company’s corporate and business leadership. To register for the event, please visit the Investor Relations section of our website https://ir.colfaxcorp.com/events-presentations.
About Colfax Corporation
Colfax Corporation is a leading diversified technology company that provides specialty medical technologies and fabrication technology products and services to customers around the world, principally under the DJO and ESAB brands. Colfax believes that its brands are among the most highly recognized in each of the markets that it serves. The Company uses its Colfax Business System (“CBS”), a comprehensive set of tools, processes and values, to create superior value for customers, shareholders and associates. Colfax’s common stock is traded on the NYSE under the ticker “CFX.”
