Kaman Reports 2021 Third Quarter Results

Adjusted Earnings from Continuing Operations and Adjusted Diluted Earnings Per Share from Continuing Operations - Adjusted Earnings from Continuing Operations and Adjusted Diluted Earnings per Share from Continuing Operations are defined as GAAP "Earnings from Continuing Operations" and "Diluted earnings per share from continuing operations", less items that are not indicative of the operating performance of the business for the periods presented. These items are included in the reconciliation below. Management uses Adjusted Earnings from Continuing Operations and Adjusted Diluted Earnings per Share from Continuing Operations to evaluate performance period over period, to analyze the underlying trends in our business and to assess its performance relative to its competitors. We believe that this information is useful for investors and financial institutions seeking to analyze and compare companies on the basis of operating performance.

The following table illustrates the calculation of Adjusted Earnings from Continuing Operations and Adjusted Diluted Earnings per Share from Continuing Operations using “Earnings from Continuing Operations” and “Diluted earnings per share from continuing operations” from the “Consolidated Statements of Operations” included in the Company's Form 10-Q filed with the Securities and Exchange Commission on November 2, 2021. Table 3. Adjusted Earnings from continuing operations and Adjusted Diluted Earnings per Share from continuing operations
(In thousands except per share amounts) (unaudited)
	For the Three Months Ended									For the Three Months Ended
	October 1, 2021									October 2, 2020
	Pre-Tax			Tax-Effected			Diluted EPS			Pre-Tax			Tax-Effected			Diluted EPS
GAAP Earnings (loss) from continuing operations, as reported	$	19,114		$	14,667		$	0.53		$	(37,828	)	$	(38,507	)	$	(1.39	)

Adjustments:
Noncash, non tax goodwill impairment charge	—			—			—			50,307			50,307			1.82
Restructuring and severance costs	2,611			2,003			0.07			1,541			1,187			0.04
Costs associated with corporate development activities	136			104			—			1,866			1,437			0.05
Bal Seal acquisition costs	—			—			—			14			11			—
Cost of acquired Bal Seal retention plans	—			—			—			5,703			4,423			0.16
Costs from transition services agreement	24			18			—			3,019			2,325			0.08
Income from transition services agreement	(14		)	(11		)	—			(1,829		)	(1,409		)	(0.05		)
Senior leadership transition	—			—			—			280			216			0.01
Employee tax-related matters in foreign operations	—			—			—			(648		)	(648		)	(0.02		)
Adjustments	$	2,757		$	2,114		$	0.07		$	60,253		$	57,849		$	2.09

Adjusted Earnings from continuing operations	$	21,871		$	16,781		$	0.60		$	22,425		$	19,342		$	0.70

Diluted weighted average shares outstanding							27,888									27,687

	For the Nine Months Ended									For the Nine Months Ended
	October 1, 2021									October 2, 2020
	Pre-Tax			Tax-Effected			Diluted EPS			Pre-Tax			Tax-Effected			Diluted EPS
GAAP Earnings (loss) from continuing operations, as reported	$	44,663		$	34,507		$	1.24		$	(40,036	)	$	(39,014	)	$	(1.41	)

Adjustments:
Noncash, non tax goodwill impairment charge	—			—			—			50,307			50,307			1.82
Restructuring and severance costs	5,479			4,280			0.15			7,820			6,023			0.22
Costs associated with corporate development activities	551			432			0.02			4,332			3,337			0.12
Bal Seal acquisition costs	—			—			—			8,461			6,517			0.24
Cost of acquired Bal Seal retention plans	—			—			—			17,110			13,269			0.47
Inventory step-up associated with Bal Seal acquisition	—			—			—			2,355			1,826			0.06
Costs from transition services agreement	1,728			1,370			0.05			11,532			8,882			0.32
Income from transition services agreement	(931		)	(739		)	(0.03		)	(7,853		)	(6,048		)	(0.22		)
Senior leadership transition	—			—			—			280			216			0.01
Employee tax-related matters in foreign operations	—			—			—			(1,859		)	(1,692		)	(0.06		)
Reversal of environmental accrual at GRW	—			—			—			(264		)	(198		)	(0.01		)
Loss (gain) on sale of business	234			234			0.01			(493		)	(370		)	(0.01		)
Tax effect on sale of UK operations	287			287			0.01			—			—			—
Adjustments	$	7,348		$	5,864		$	0.21		$	91,728		$	82,069		$	2.96

Adjusted Earnings from continuing operations	$	52,011		$	40,371		$	1.45		$	51,692		$	43,055		$	1.55

Diluted weighted average shares outstanding							27,889									27,718

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