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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

 Washington, D.C. 20549
 

FORM 8-K
 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): December 16, 2016
 
 
Colfax Corporation
(Exact name of registrant as specified in its charter)
  
 
 
 
 
Delaware
001-34045
54-1887631
(State or other jurisdiction of incorporation)
(Commission File Number)
(I.R.S. Employer Identification No.)

420 National Business Parkway, 5th Floor
Annapolis Junction, MD 20701
(Address of Principal Executive Offices) (Zip Code)
(301) 323-9000
(Registrant’s telephone number, including area code)
Not applicable
(Former name or former address, if changed since last report)
 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))





Item 7.01 Regulation FD Disclosure.

On December 16, 2016, Colfax Corporation (the "Company") provided information regarding its outlook for 2017 and for the remainder of 2016. The slides for this outlook as well as other supplemental information are attached to this report as Exhibit 99.1. The Company is holding a conference call to discuss its outlook on December 16, 2016 at 8:30 am EST.  The call will be open to the public through 877-303-7908 (U.S. callers) and +1-678-373-0875 (international callers) and referencing the conference ID number 36632308, or through webcast via the Company’s website www.colfaxcorp.com under the “Investors” section.

These materials are also available on the Company's website and link to a replay of the call will be available on the Company website under the “Investors” section later today.




Item 9.01. Financial Statements and Exhibits.

(d)    Exhibits

99.1
Management's presentation on December 16, 2016, regarding Colfax Corporation's financial outlook for 2017 and for the remainder of 2016.





SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


Colfax Corporation
Date:     December 16, 2016                    By: /s/ Christopher M. Hix
Name: Christopher M. Hix
Title: Senior Vice President, Finance,
Chief Financial Officer and Treasurer

 



pathforwardinto2017
December 16, 2016 Path Forward Into 2017

 
2 Forward-looking Statements These slides and accompanying oral presentation contain forward-looking statements, including forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements concerning Colfax's plans, objectives, expectations and intentions and other statements that are not historical or current fact. Forward-looking statements are based on Colfax's current expectations and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such forward-looking statements. Factors that could cause Colfax's results to differ materially from current expectations include, but are not limited to factors detailed in Colfax's reports filed with the U.S. Securities and Exchange Commission including its 2015 Annual Report on Form 10-K under the caption "Risk Factors." In addition, these statements are based on a number of assumptions that are subject to change. These slides speak only as of this date. Colfax disclaims any duty to update the information herein. The term "Colfax" in reference to the activities described in these slides may mean one or more of Colfax's global operating subsidiaries and/or their internal business divisions and does not necessarily indicate activities engaged in by Colfax Corporation.

 
3 Colfax Strategy – A Winning Model Focus and Empower Top Talent Acquire Good Companies Use CBS to Make Them Great  Attractive markets  Strong brands and solutions  Opportunities to improve and expand  Values  Tools and processes  Way of working  Independent businesses  Great leaders, strong teams, winning spirit  Lean, high value corporate WE USE CBS TO MAKE GOOD BUSINESSES GREAT

 
4 Executing in 2016  Achieving target of $50 million restructuring cost savings  Affirming 2016 guidance of $1.50 to $1.55 Adj. EPS  Strengthening position in key welding markets like Europe, Russia, India, and South America  Improving service levels  Success on key projects and aftermarket initiatives  Investing in regional organizations in Middle East, South Asia, and Southeast Asia  Exciting pace of new products  Rebel, Renegade, Cutmaster, WeldCloud, SmartEXEC, and many more BUILDING MOMENTUM INTO 2017

 
5 Driving Shareholder Value Mid-teen segment margins GDP +1-2% organic growth Acquire to compound returns Strengthen the foundation − Deeper, empowered talent accelerating performance − Colfax Business System – delivering results − Cost realignment to simplify and leverage scale Pivot to growth − Aftermarket and expanding industrial applications − Dynamic resource allocation to growth regions & markets − Drive innovation – new products & IoT advantage Strengthen the portfolio − Bolt-on acquisitions leverage technology and channel − Adjacency acquisitions expand technology and markets − New platforms broaden, diversify portfolio 3-5 Year Objectives

 
6 Markets Near Bottom of Cycle Current Environment • Sluggish as customers minimize expenses • Lower power utilization rates in the US and China • NA welding stabilizing sequentially; Europe flat • Environmental spend starting in China • Lower capex spending YOY • Current projects progressing but few new projects • Policy changes in China slow new build, accelerate environ. • Steady pace in SEA • New regulations in India Aftermarket General Industrial Oil & Gas Power Source: Internal company management estimates. Order Indicators • Increasing oil prices • Maintenance deferments already in comps • Aging power fleet in China • Stable to up global PMI • GDP forecast uptick in ’17 • Increasing oil prices • Refinery utilization • Refined products demand • Thermal power generation announced projects • Utilization • Announced regulations STABLE OUTLOOK BUT NO MARKET UPTICK EXPECTED BEFORE SECOND HALF 2017

 
7 2017 Expectations  Flat to down (2)% organic revenue  Sales quarterly seasonality: 22-23%, 25-26%, 24-25%, 27-28%  +7% adjusted EPS growth at mid-point  Driven by $50 million of structural cost reductions  Partially offset by $5 to $10 million of growth investments and inflation, net of productivity  Approximately $35M of interest expense  Strong free cash flow conversion 2017 2016 $1.50-$1.55 $1.55-$1.70

 
FINANCIAL SCHEDULE

 
9 Non-GAAP Reconciliation (Unaudited) Note: Guidance as of 12/16/16. 2017 EPS Range Projected net income per share – diluted $1.29 $1.44 Restructuring costs 0.36 0.36 Tax Adjustment (0.10) (0.10) Projected adjusted net income per share - diluted $1.55 $1.70 Colfax has provided financial information in this presentation that has not been prepared in accordance with GAAP. The non-GAAP financial measure of adjusted net income per share excludes restructuring charges. This non-GAAP financial measure assists Colfax in comparing its operating performance on a consistent basis by removing the impact of charges associated with major restructuring programs.