 Achieved objectives to address COVID-19 impacts, including generating positive cash flow Reported 0.03 EPS from continuing operations and achieved 0.09 of adjusted EPS Sequentially improved sales rates each month during the quarter Continued investments in innovation support long-term growth plans ANNAPOLIS JUNCTION, MD, Aug. 06, 2020 GLOBE NEWSWIRE -- Colfax Corporation NYSE: CFX, a leading diversified technology company, today announced its financial results for the second quarter of 2020.The Company reported a net loss from continuing operations of 3.6 million, or 0.03 per share, in the quarter, compared to net income of 0.01 in the prior year quarter. On an adjusted basis, the Company reported earnings of 0.09 per diluted share, compared to 0.54 in the second quarter of 2019. Adjustments to reported earnings are included in the reconciliation schedules provided.For the second quarter, Colfax reported net sales of 620 million, 32 lower than the previous years quarter due to the current year impact from COVID-19-related demand reductions. Excluding the impact from currency translation adjustments, organic sales decreased 28. The Company realized sequential improvements for each month in the second quarter, with June organic sales 19 lower than the prior year. The Company also reported second quarter adjusted EBITA of 45 million, or 7.3 of sales, as temporary savings measures partially mitigated the impact from the volume declines.During the second quarter the Company generated operating cash flow of 37 million and free cash flow of 18 million, and repaid 300 million of its credit agreement borrowings. The Company completed the second quarter with 4.2 times net leverage and ample liquidity, including 66 million of cash and 1.2 billion of capacity under its credit agreement and other facilities.During the quarter we stayed focused on our principal objectives of keeping associates safe, maintaining supply to our customers, and protecting Colfaxs financial health, said Matt Trerotola, Colfax President and CEO. Im very pleased with the resiliency of our businesses and teams through this challenging period. We deployed temporary measures and successfully drove Q2 decremental margin to 28. Sales per day rates sequentially improved each month, including July. We expect to pace our temporary cost measures with sales levels in the third quarter to deliver sequentially higher profit and remain cash flow positive.We continue to pursue our growth agenda in this softer demand environment. During the first half of 2020, we launched over 35 new products in our FabTech business, including the WeldCloud Notes document management software to enhance our digital solution tools. Our MedTech business product launches include todays announcement of Motion iQTM, a patient relationship management tool that seamlessly connects clinicians and patients across the orthopedic care continuum. We are well-positioned to resume our long-term growth momentum as market conditions improve.The Company also reported that its Medical Technology segment sales decreased 35 in the quarter on a reported basis and 34 organically versus the prior year period. Fabrication Technology segment sales decreased 30 in the quarter on a reported basis and 25 organically versus the prior year period. Both segments recorded sequential improvements each month during the quarter, with June Medical Technology organic sales declining 16 and Fabrication Technology organic sales declining 20. The Medical Technology segment reported adjusted EBITA margins of 3.2, versus 16.5 in the comparable prior year period, and the Fabrication Technology segment reported adjusted EBITA margins of 12.6, compared to 15.2 in the prior year second quarter.Given the uncertainties of customer demand due to the COVID-19 pandemic, Colfax is not providing financial guidance for 2020.Conference Call and WebcastThe Company will hold a conference call to discuss these results beginning at 8:00 a.m. Eastern today, which will be open to the public by calling 1-877-303-7908 U.S. callers and 1-678-373-0875 International callers and referencing the conference ID number 6196870 and through webcast via Colfaxs website under the Investors section. Access to a supplemental slide presentation can also be found at the Colfax website under the same heading. Both the audio of this call and the slide presentation will be archived on the website later today and will be available until the next quarterly call.About Colfax CorporationColfax Corporation is a leading diversified technology company that provides orthopedic 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. Colfaxs common stock is traded on the NYSE under the ticker CFX.Non-GAAP Financial Measures and Other AdjustmentsColfax has provided in this press release financial information that has not been prepared in accordance with accounting principles generally accepted in the United States of America non-GAAP. These non-GAAP financial measures are adjusted net income from continuing operations, adjusted net income margin from continuing operations, adjusted net income per diluted share from continuing operations, adjusted EBITA earnings before interest, taxes and amortization, adjusted EBITA margin, organic sales growth, and free cash flow. Colfax also provides adjusted EBITA and adjusted EBITA margin on a segment basis.Adjusted net income from continuing operations represents net income loss from continuing operations excluding restructuring and other related charges, European Union Medical Device Regulation MDR costs, debt extinguishment charges, acquisition-related amortization and other non-cash charges, and strategic transaction costs. Colfax also presents adjusted net income margin from continuing operations, which is subject to the same adjustments as adjusted net income from continuing operations.Adjusted net income per diluted share from continuing operations represents adjusted income from continuing operations divided by the number of adjusted diluted weighted average shares. Both GAAP and non-GAAP diluted net income per share data is computed based on weighted average shares outstanding and, if there is net income from continuing operations rather than net loss during the period, the dilutive impact of share equivalents outstanding during the period. Diluted weighted average shares outstanding and adjusted diluted weighted average shares outstanding are calculated on the same basis except for the net income or loss figure used in determining whether to include such dilutive impact.Adjusted EBITA represents net income loss from continuing operations excluding restructuring and other related charges, MDR costs, acquisition-related amortization and other non-cash charges, and strategic transaction costs, as well as income tax expensebenefit and interest expense, net. Colfax presents adjusted EBITA margin, which is subject to the same adjustments as adjusted EBITA. Further, Colfax presents adjusted EBITA and adjusted EBITA margin on a segment basis, where we exclude the impact of strategic transaction costs and acquisition-related amortization and other non-cash charges from segment operating income.Core or organic sales growth decline excludes the impact of acquisitions and foreign exchange rate fluctuations.Free cash flow represents cash flow from operating activities less purchases of property, plant and equipment.These non-GAAP financial measures assist Colfax management in comparing its operating performance over time because certain items may obscure underlying business trends and make comparisons of long-term performance difficult, as they are of a nature andor size that occur with inconsistent frequency or relate to discrete restructuring plans that are fundamentally different from the ongoing productivity improvements of the Company. Colfax management also believes that presenting these measures allows investors to view its performance using the same measures that the Company uses in evaluating its financial and business performance and trends.Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information calculated in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures. A reconciliation of non-GAAP financial measures presented above to GAAP results has been provided in the financial tables included in this press release.CAUTIONARY NOTE CONCERNING FORWARD LOOKING STATEMENTSThis press release may 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 Colfaxs plans, objectives, expectations and intentions and other statements that are not historical or current fact. Forward-looking statements are based on Colfaxs 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. 