Q2 GAAP Loss Per Share of ($0.19);
Adjusted EPS* of $0.44 Solid Core Operational
Performance and Margin Expansion
Continues Increasing Full-Year Adjusted EPS*
Guidance Range to $1.65-$1.75$22.9 million Charge
for the South African Projects; Timeline for
Substantial Completion of Projects Accelerated to End of
2019
SPX Corporation (NYSE:SPXC) today reported results for the quarter
ended July 1, 2017.
The results and guidance in this release include
non-GAAP financial measures, including “Core” results, “adjusted
operating income (loss)” and “adjusted earnings (loss) per share.”
To provide clarity to its operating results, the company reports
“Core” results, which exclude the effect of the South African
projects, and separately reports on the progress and results
associated with the South African projects. Other items adjusted
out of operating income and earnings per share consist of
non-service pension items as well as an adjustment to the gain on
the sale of Dry Cooling that was recorded in Q2 2016.
Gene Lowe, President and CEO, remarked,
“Operational initiatives helped to drive very strong results during
the quarter, including significant margin increases in our Core
Engineered Solutions and Detection & Measurement segments.
Specifically, our operating model shift in process cooling, within
Engineered Solutions, is delivering significant benefits and we are
seeing strong order growth across our Detection & Measurement
product lines. Our strong first half performance across our Core
operations, combined with increased confidence in the second half,
enables us to increase our full year Adjusted EPS* and margin
guidance.”
Mr. Lowe continued, “Over the last two years, we
have taken numerous steps to accelerate work and reduce risks
associated with the South African projects. As a result, we now
expect to have only one of the original five scopes of work left by
the end of 2017. During the first half, we took further actions to
accelerate the timeline and improve our control over the projects;
and, as a result of these factors, we recorded a charge of $22.9
million to reflect an updated estimate of the cost to complete our
work. We now expect substantial completion of our role in South
Africa by the end of 2019, approximately one year ahead of our
prior expectations. We estimate remaining cash usage from the
second half of 2017 through the end of the projects to be
approximately $60 to $70 million.”
Second Quarter 2017
Overview:
For the second quarter of 2017 the company
reported revenue of $349.7 million and operating income of $4.1
million, compared with $371.4 million and $13.8 million,
respectively, in the second quarter of 2016. Net loss per share
from continuing operations was $0.19, compared with a net loss per
share of $0.25 for the second quarter of 2016.
SPX Core revenue* was $347.7 million and
adjusted operating income* was $32.0 million, compared with $351.8
million and $20.8 million, respectively, in the second quarter of
2016. Adjusted earnings per share* for the second quarter of 2017
were $0.44, compared with $0.33 for the second quarter of 2016.
Second Quarter and First Half Financial
Comparisons:
GAAP Results†:
($ millions) |
|
Q2 2017 |
|
Q2 2016 |
|
2017 YTD |
|
2016 YTD |
Revenue |
|
$ |
349.7 |
|
$ |
371.4 |
|
$ |
690.3 |
|
$ |
732.0 |
Segment Income |
|
|
20.7 |
|
|
32.2 |
|
|
55.0 |
|
|
62.0 |
Operating Income |
|
|
4.1 |
|
|
13.8 |
|
|
21.9 |
|
|
41.9 |
Adjusted Results†:
($ millions) |
|
Q2 2017 |
|
Q2 2016 |
|
2017 YTD |
|
2016 YTD |
Core Revenue* |
|
$ |
347.7 |
|
$ |
351.8 |
|
$ |
670.1 |
|
$ |
691.9 |
Core Segment
Income* |
|
|
47.3 |
|
|
35.1 |
|
|
86.0 |
|
|
68.3 |
Adjusted Operating
Income* |
|
|
32.0 |
|
|
20.8 |
|
|
55.7 |
|
|
39.5 |
† The results of the European Power Generation business, which
was sold at the end of Q4 2016, are presented as discontinued
operations for 2016.
* Non-GAAP financial measure. See attached schedules for
reconciliation to most comparable GAAP financial measure.
HVAC
Revenue for Q2 2017 was $120.3 million, compared
with $121.9 million in Q2 2016, a decrease of 1.3%, including a
0.6% decline from currency fluctuations. Organic revenue* decreased
0.7%, due primarily to the timing of revenue associated with
cooling shipments, which were more heavily weighted in the first
half of 2016.
Segment income was $15.4 million, or 12.8% of revenue, in Q2
2017, compared with $17.1 million, or 14.0% of revenue, in Q2 2016,
with the decrease largely due to a less profitable sales mix
associated with the timing of revenue from cooling shipments.
Detection & Measurement
Revenue for Q2 2017 was $64.5 million, compared
with $60.1 million in Q2 2016, an increase of 7.3%, including a
1.5% decline from currency fluctuations. Organic revenue* increased
8.8% primarily reflecting higher sales of bus fare collection
systems and obstruction lighting products.
Segment income was $17.3 million, or 26.8% of
revenue, in Q2 2017, compared with $12.1 million, or 20.1% of
revenue, in Q2 2016. The 670 basis point increase in segment
margins was driven by a higher profit contribution from increased
sales of bus fare collection systems and obstruction lighting
products as well as lower SG&A costs.
Engineered Solutions
Revenue for Q2 2017 was $164.9 million, compared
with $189.4 million in Q2 2016, a decrease of 12.9%, which includes
a 1.7% benefit from currency fluctuations. The decrease
was driven primarily by a $13.5 million, or 7.1%, reduction in
revenue associated with the South African projects charge, and a
decline in organic revenue* of 7.5% driven primarily by the timing
of transformer shipments.
Segment loss was $12.0 million in Q2 2017, compared
with segment income of $3.0 million in Q2 2016. The decline
in segment income was driven by the $22.9 million charge associated
with our South African projects, partially offset by operating
model improvements, a favorable project mix, and cost reductions in
our process cooling business.
Engineered Solutions (Core)
Excluding the results of the South African
projects, Engineered Solutions recorded Core revenue* for
Q2 2017 of $162.9 million, compared with $169.8 million in
Q2 2016, a decrease of 4.1%, including a 0.3% benefit from
currency fluctuations. The reduction in organic revenue* of 4.4%
was driven primarily by the timing of transformer
shipments.
Engineered Solutions’ Core income* for
Q2 2017 was $14.6 million, or 9.0% of revenue, compared with
$5.9 million, or 3.5% of revenue, in Q2 2016. The increase in
income and margins* was driven primarily by operating model
improvements, a favorable project mix, and cost reductions in our
process cooling business.
South African Projects
Revenue attributable to the large South African
projects for Q2 2017 was $2.0 million, compared with $19.6 million
in Q2 2016. Losses for these projects recorded in our
Engineered Solutions segment in Q2 2017 were $26.6 million,
compared with a loss of $2.9 million in Q2 2016. During Q2 2017,
the company recorded a charge of $22.9 million to revise the amount
of expected revenue and costs on the projects in South Africa,
which resulted in a reduction in revenue of $13.5 million and an
increase in cost of $9.4 million.
Financial Update:
As of July 1, 2017, SPX had total outstanding
debt of $367.4 million and total cash and equivalents of $83.5
million. During the second quarter of 2017, net operating cash flow
used in continuing operations was $15.1 million and included cash
used for the South African projects of $13.7 million. Free cash
flow used in continuing operations* totaled $17.7 million. Net
leverage, as calculated under the company’s bank credit agreement,
was 2.2x, unchanged from Q1 2017.
Raising 2017 Adjusted EPS*
Guidance:
SPX now expects 2017 Core revenue* of
approximately $1.35 to $1.40 billion, up from the previous guidance
range of $1.30 to $1.40 billion. Core segment income margin* is now
expected to be approximately 13.0%, up from the previous guidance
range of 12.0-13.0%. SPX now expects adjusted operating income
margin* to be in the 8.5-9.0% range, up from the previous guidance
range of 8.0-9.0%. Adjusted earnings per share* are now
expected to be $1.65 to $1.75, up from the previous guidance range
of $1.55 to $1.70.
On a year-over-year basis, we expect segment
performance to be as follows (changes bolded):
|
Revenue |
|
Segment Income Margin % |
HVAC |
Organic growth* at the
lower end of our long-term target range of 2.0-4.0%, with
variability driven primarily by winter heating demand |
|
Approximately 16.0% |
|
|
|
|
Detection &
Measurement |
Organic growth*
above the long-term target range of 2.0-6.0%, with
variability driven primarily by timing of project-related
revenue |
|
Approximately
22.5-23.0%(previously 21.0-22.0%) |
|
|
|
|
Engineered Solutions
(Core)* |
Organic decline* in
mid-single digit %, with flat Transformer revenues and more
selective market participation in Process Cooling |
|
Approximately
6.5-7.0%(previously 6.0-7.0%) |
Form 10-Q: The company
expects to file its quarterly report on Form 10-Q for the quarter
ended July 1, 2017 with the Securities and Exchange Commission on
or before August, 10, 2017. This press release should be read in
conjunction with that filing, which will be available on the
company's website at www.spx.com, in the Investor Relations
section.
Conference Call: SPX will
host a conference call at 4:45 p.m. (EDT) today to discuss second
quarter results. The call will be simultaneously webcast via the
company's website at www.spx.com and the slide presentation
will be available in the Investor Relations section of the
site.
Conference callDial in: 877-341-7727From
outside the United States: +1 262-558-6098Participant
code: 54130622
A replay of the call will be available by
telephone through Thursday, August 10th.
To listen to a replay of the callDial in:
855-859-2056From outside the United States: +1
404-537-3406Participant code: 54130622
Upcoming Investor Events:
Company management plans to be on the road during August meeting
with investors.
About SPX Corporation: SPX Corporation is
a supplier of highly engineered products and technologies, holding
leadership positions in the HVAC, detection and measurement, and
engineered solutions markets. Based in Charlotte, North Carolina,
SPX Corporation had approximately $1.5 billion in annual revenue in
2016 and more than 5,000 employees in about 15 countries. SPX
Corporation is listed on the New York Stock Exchange under the
ticker symbol “SPXC.” For more information, please visit
www.spx.com.
*Non-GAAP financial measure. See attached schedules for
reconciliation to most comparable GAAP financial measure.
Note: Our non-GAAP financial guidance excludes items, which
would be included in our GAAP financial measures, that we do not
consider indicative of our on-going performance. These items
include, but are not limited to, transaction and acquisition costs,
costs associated with dispositions, the results of our South
African projects, and potential non-cash income or expense items
associated with changes in market interest rates and actuarial or
other data related to our pension and postretirement plans, as the
ultimate aggregate amounts associated with these items are out of
our control and/or cannot be reasonably predicted. Accordingly, a
reconciliation of our non-GAAP financial guidance to the nearest
corresponding GAAP financial measures is not practicable.
Certain statements in this press release are forward-looking
statements within the meaning of Section 21E of the Securities
Exchange Act of 1934, as amended, and are subject to the safe
harbor created thereby. Please read these results in conjunction
with the company’s documents filed with the Securities and Exchange
Commission, including the company’s annual reports on
Form 10-K, and any amendments thereto, and quarterly reports
on Form 10-Q. These filings identify important risk factors
and other uncertainties that could cause actual results to differ
from those contained in the forward-looking statements. Actual
results may differ materially from these statements. The words
“believe,” “expect,” “anticipate,” “project” and similar
expressions identify forward-looking statements. Although the
company believes that the expectations reflected in its
forward-looking statements are reasonable, it can give no assurance
that such expectations will prove to be correct. In addition,
estimates of future operating results are based on the company’s
current complement of businesses, which is subject to change.
Statements in this press release speak only as of the date of
this press release, and SPX disclaims any responsibility to update
or revise such statements.
|
|
|
|
|
|
|
|
|
|
|
|
SPX CORPORATION AND SUBSIDIARIES |
|
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
|
(Unaudited; in millions, except per share
amounts) |
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Six months ended |
|
|
July 1, 2017 |
|
|
July 2, 2016 |
|
|
July 1, 2017 |
|
|
July 2, 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
$ |
349.7 |
|
|
|
$ |
371.4 |
|
|
|
$ |
690.3 |
|
|
|
$ |
732.0 |
|
|
Costs and
expenses: |
|
|
|
|
|
|
|
|
|
|
|
Cost of
products sold |
|
273.6 |
|
|
|
|
280.3 |
|
|
|
|
526.1 |
|
|
|
|
551.0 |
|
|
Selling,
general and administrative |
|
71.4 |
|
|
|
|
72.8 |
|
|
|
|
141.0 |
|
|
|
|
147.1 |
|
|
Intangible amortization |
|
0.1 |
|
|
|
|
0.9 |
|
|
|
|
0.3 |
|
|
|
|
1.8 |
|
|
Special
charges, net |
|
0.5 |
|
|
|
|
2.4 |
|
|
|
|
1.0 |
|
|
|
|
2.9 |
|
|
Impairment of intangible assets |
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
4.0 |
|
|
Gain (loss) on sale of
dry cooling business |
|
— |
|
|
|
|
(1.2 |
) |
|
|
|
— |
|
|
|
|
16.7 |
|
|
Operating
income |
|
4.1 |
|
|
|
|
13.8 |
|
|
|
|
21.9 |
|
|
|
|
41.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense),
net |
|
(2.1 |
) |
|
|
|
0.1 |
|
|
|
|
(2.8 |
) |
|
|
|
1.3 |
|
|
Interest expense |
|
(4.6 |
) |
|
|
|
(3.8 |
) |
|
|
|
(8.6 |
) |
|
|
|
(7.3 |
) |
|
Interest income |
|
0.3 |
|
|
|
|
0.2 |
|
|
|
|
0.7 |
|
|
|
|
0.4 |
|
|
Income
(loss) from continuing operations before income taxes |
|
(2.3 |
) |
|
|
|
10.3 |
|
|
|
|
11.2 |
|
|
|
|
36.3 |
|
|
Income tax
provision |
|
(6.0 |
) |
|
|
|
(3.8 |
) |
|
|
|
(9.2 |
) |
|
|
|
(9.6 |
) |
|
Income
(loss) from continuing operations |
|
(8.3 |
) |
|
|
|
6.5 |
|
|
|
|
2.0 |
|
|
|
|
26.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from discontinued
operations, net of tax |
|
— |
|
|
|
|
(3.1 |
) |
|
|
|
— |
|
|
|
|
(8.6 |
) |
|
Gain (loss) on
disposition of discontinued operations, net of tax |
|
(0.7 |
) |
|
|
|
(0.4 |
) |
|
|
|
6.4 |
|
|
|
|
(1.5 |
) |
|
Income
(loss) from discontinued operations, net of tax |
|
(0.7 |
) |
|
|
|
(3.5 |
) |
|
|
|
6.4 |
|
|
|
|
(10.1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
(9.0 |
) |
|
|
|
3.0 |
|
|
|
|
8.4 |
|
|
|
|
16.6 |
|
|
Less: Net
loss attributable to redeemable noncontrolling interests |
|
— |
|
|
|
|
(1.0 |
) |
|
|
|
— |
|
|
|
|
(0.4 |
) |
|
Net income (loss)
attributable to SPX Corporation common shareholders |
$ |
(9.0 |
) |
|
|
$ |
4.0 |
|
|
|
$ |
8.4 |
|
|
|
$ |
17.0 |
|
|
Adjustment related to redeemable noncontrolling interest |
|
— |
|
|
|
|
(18.1 |
) |
|
|
|
— |
|
|
|
|
(18.1 |
) |
|
Net income (loss)
attributable to SPX Corporation common shareholders after
adjustment related to redeemable noncontrolling interest |
$ |
(9.0 |
) |
|
|
$ |
(14.1 |
) |
|
|
$ |
8.4 |
|
|
|
$ |
(1.1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable to
SPX Corporation common shareholders after adjustment related to
redeemable noncontrolling interest: |
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) from continuing operations, net of tax |
$ |
(8.3 |
) |
|
|
$ |
(10.6 |
) |
|
|
$ |
2.0 |
|
|
|
$ |
9.0 |
|
|
Income
(loss) from discontinued operations, net of tax |
|
(0.7 |
) |
|
|
|
(3.5 |
) |
|
|
|
6.4 |
|
|
|
|
(10.1 |
) |
|
Net
income (loss) |
$ |
(9.0 |
) |
|
|
$ |
(14.1 |
) |
|
|
$ |
8.4 |
|
|
|
$ |
(1.1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic income (loss) per
share of common stock: |
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) from continuing operations attributable to SPX Corporation
common shareholders after adjustment related to redeemable
noncontrolling interest |
$ |
(0.19 |
) |
|
|
$ |
(0.25 |
) |
|
|
$ |
0.05 |
|
|
|
$ |
0.22 |
|
|
Income
(loss) from discontinued operations attributable to SPX Corporation
common shareholders |
|
(0.02 |
) |
|
|
|
(0.09 |
) |
|
|
|
0.15 |
|
|
|
|
(0.25 |
) |
|
Net
income (loss) per share attributable to SPX Corporation common
shareholders after adjustment related to redeemable noncontrolling
interest |
$ |
(0.21 |
) |
|
|
$ |
(0.34 |
) |
|
|
$ |
0.20 |
|
|
|
$ |
(0.03 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number
of common shares outstanding — basic |
|
42.388 |
|
|
|
|
41.594 |
|
|
|
|
42.249 |
|
|
|
|
41.443 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted income (loss)
per share of common stock: |
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) from continuing operations attributable to SPX Corporation
common shareholders after adjustment related to redeemable
noncontrolling interest |
$ |
(0.19 |
) |
|
|
$ |
(0.25 |
) |
|
|
$ |
0.04 |
|
|
|
$ |
0.22 |
|
|
Income
(loss) from discontinued operations attributable to SPX Corporation
common shareholders |
|
(0.02 |
) |
|
|
|
(0.09 |
) |
|
|
|
0.15 |
|
|
|
|
(0.25 |
) |
|
Net
income (loss) per share attributable to SPX Corporation common
shareholders after adjustment related to redeemable noncontrolling
interest |
$ |
(0.21 |
) |
|
|
$ |
(0.34 |
) |
|
|
$ |
0.19 |
|
|
|
$ |
(0.03 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number
of common shares outstanding — diluted |
|
42.388 |
|
|
|
|
41.594 |
|
|
|
|
43.622 |
|
|
|
|
41.754 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SPX CORPORATION AND SUBSIDIARIES |
CONDENSED CONSOLIDATED BALANCE
SHEETS |
(Unaudited; in millions) |
|
|
|
|
|
|
|
July 1, 2017 |
|
|
December 31, 2016 |
|
ASSETS |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and
equivalents |
$ |
83.5 |
|
|
|
$ |
99.6 |
|
|
Accounts
receivable, net |
|
252.0 |
|
|
|
|
251.7 |
|
|
Inventories, net |
|
168.3 |
|
|
|
|
145.7 |
|
|
Other
current assets |
|
35.1 |
|
|
|
|
30.6 |
|
|
Total
current assets |
|
538.9 |
|
|
|
|
527.6 |
|
|
Property, plant and
equipment: |
|
|
|
|
|
Land |
|
15.4 |
|
|
|
|
15.4 |
|
|
Buildings
and leasehold improvements |
|
119.5 |
|
|
|
|
117.3 |
|
|
Machinery
and equipment |
|
334.1 |
|
|
|
|
329.8 |
|
|
|
|
469.0 |
|
|
|
|
462.5 |
|
|
Accumulated depreciation |
|
(277.4 |
) |
|
|
|
(267.0 |
) |
|
Property,
plant and equipment, net |
|
191.6 |
|
|
|
|
195.5 |
|
|
Goodwill |
|
344.1 |
|
|
|
|
340.4 |
|
|
Intangibles, net |
|
118.4 |
|
|
|
|
117.9 |
|
|
Other assets |
|
671.9 |
|
|
|
|
680.5 |
|
|
Deferred income
taxes |
|
64.5 |
|
|
|
|
50.6 |
|
|
TOTAL ASSETS |
$ |
1,929.4 |
|
|
|
$ |
1,912.5 |
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY |
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
Accounts
payable |
$ |
140.8 |
|
|
|
$ |
137.6 |
|
|
Accrued
expenses |
|
291.2 |
|
|
|
|
304.3 |
|
|
Income
taxes payable |
|
1.3 |
|
|
|
|
1.7 |
|
|
Short-term debt |
|
33.9 |
|
|
|
|
14.8 |
|
|
Current
maturities of long-term debt |
|
18.1 |
|
|
|
|
17.9 |
|
|
Total
current liabilities |
|
485.3 |
|
|
|
|
476.3 |
|
|
|
|
|
|
|
|
Long-term debt |
|
315.4 |
|
|
|
|
323.5 |
|
|
Deferred and other
income taxes |
|
45.6 |
|
|
|
|
42.4 |
|
|
Other long-term
liabilities |
|
874.4 |
|
|
|
|
878.7 |
|
|
Total
long-term liabilities |
|
1,235.4 |
|
|
|
|
1,244.6 |
|
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
Common
stock |
|
0.5 |
|
|
|
|
0.5 |
|
|
Paid-in
capital |
|
1,301.5 |
|
|
|
|
1,307.9 |
|
|
Retained
deficit |
|
(823.2 |
) |
|
|
|
(831.6 |
) |
|
Accumulated other comprehensive income |
|
234.2 |
|
|
|
|
235.1 |
|
|
Common
stock in treasury |
|
(504.3 |
) |
|
|
|
(520.3 |
) |
|
Total
equity |
|
208.7 |
|
|
|
|
191.6 |
|
|
TOTAL LIABILITIES AND
EQUITY |
$ |
1,929.4 |
|
|
|
$ |
1,912.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SPX CORPORATION AND SUBSIDIARIES |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
|
(Unaudited; in millions) |
|
|
|
Three months ended |
|
Six months ended |
|
|
July 1, 2017 |
|
|
July 2, 2016 |
|
July 1, 2017 |
|
July 2, 2016 |
|
Cash flows from
(used in) operating activities: |
|
Net Income (loss) |
$ |
(9.0 |
) |
|
$ |
3.0 |
|
|
$ |
8.4 |
|
|
$ |
16.6 |
|
|
Less: Income (loss)
from discontinued operations, net of tax |
|
(0.7 |
) |
|
|
(3.5 |
) |
|
|
6.4 |
|
|
|
(10.1 |
) |
|
Income (loss) from
continuing operations |
|
(8.3 |
) |
|
|
6.5 |
|
|
|
2.0 |
|
|
|
26.7 |
|
|
Adjustments to
reconcile income (loss) from continuing operations to net cash from
(used in) operating activities: |
|
Special
charges, net |
|
0.5 |
|
|
|
2.4 |
|
|
|
1.0 |
|
|
|
2.9 |
|
|
(Gain)
loss on sale of dry cooling business |
|
— |
|
|
|
1.2 |
|
|
|
— |
|
|
|
(16.7 |
) |
|
Impairment of intangible assets |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4.0 |
|
|
Deferred
and other income taxes |
|
0.1 |
|
|
|
0.4 |
|
|
|
(3.8 |
) |
|
|
1.7 |
|
|
Depreciation and amortization |
|
6.3 |
|
|
|
6.5 |
|
|
|
12.6 |
|
|
|
13.2 |
|
|
Pension
and other employee benefits |
|
3.3 |
|
|
|
4.7 |
|
|
|
7.5 |
|
|
|
8.6 |
|
|
Long-term
incentive compensation |
|
3.6 |
|
|
|
3.4 |
|
|
|
6.8 |
|
|
|
6.1 |
|
|
Other,
net |
|
0.1 |
|
|
|
(0.4 |
) |
|
|
1.7 |
|
|
|
1.4 |
|
|
Changes in operating
assets and liabilities, net of effects from divestiture: |
|
|
|
Accounts
receivable and other assets |
|
(27.6 |
) |
|
|
12.5 |
|
|
|
6.1 |
|
|
|
33.9 |
|
|
Inventories |
|
(7.1 |
) |
|
|
7.0 |
|
|
|
(20.3 |
) |
|
|
(17.5 |
) |
|
Accounts
payable, accrued expenses and other |
|
14.4 |
|
|
|
(6.5 |
) |
|
|
(22.3 |
) |
|
|
(76.8 |
) |
|
Cash
spending on restructuring actions |
|
(0.4 |
) |
|
|
(0.8 |
) |
|
|
(1.0 |
) |
|
|
(1.2 |
) |
|
Net cash from (used in)
continuing operations |
|
(15.1 |
) |
|
|
36.9 |
|
|
|
(9.7 |
) |
|
|
(13.7 |
) |
|
Net cash used in
discontinued operations |
|
(2.0 |
) |
|
|
(14.1 |
) |
|
|
(5.7 |
) |
|
|
(25.7 |
) |
|
Net cash from (used in)
operating activities |
|
(17.1 |
) |
|
|
22.8 |
|
|
|
(15.4 |
) |
|
|
(39.4 |
) |
|
|
|
|
|
Cash flows from
(used in) investing activities: |
|
|
|
Proceeds
from asset sales |
|
— |
|
|
|
0.1 |
|
|
|
— |
|
|
|
46.0 |
|
|
Capital
expenditures |
|
(2.6 |
) |
|
|
(2.0 |
) |
|
|
(4.8 |
) |
|
|
(3.7 |
) |
|
Net cash from (used in)
continuing operations |
|
(2.6 |
) |
|
|
(1.9 |
) |
|
|
(4.8 |
) |
|
|
42.3 |
|
|
Net cash used in
discontinued operations |
|
— |
|
|
|
(2.0 |
) |
|
|
— |
|
|
|
(2.3 |
) |
|
Net cash from (used in)
investing activities |
|
(2.6 |
) |
|
|
(3.9 |
) |
|
|
(4.8 |
) |
|
|
40.0 |
|
|
|
|
|
|
Cash flows from
(used in) financing activities: |
|
|
|
Borrowings under senior credit facilities |
|
16.0 |
|
|
|
36.1 |
|
|
|
16.0 |
|
|
|
65.0 |
|
|
Repayments under senior credit facilities |
|
(20.4 |
) |
|
|
(45.8 |
) |
|
|
(24.7 |
) |
|
|
(65.0 |
) |
|
Borrowings under trade receivables financing arrangement |
|
40.0 |
|
|
|
— |
|
|
|
40.0 |
|
|
|
20.0 |
|
|
Repayments under trade receivables financing arrangement |
|
(19.0 |
) |
|
|
— |
|
|
|
(19.0 |
) |
|
|
(20.0 |
) |
|
Net
repayments under other financing arrangements |
|
(4.4 |
) |
|
|
(7.0 |
) |
|
|
(2.7 |
) |
|
|
(0.6 |
) |
|
Minimum
withholdings paid on behalf of employees for net share settlements,
net of proceeds from the exercise of employee stock options and
other |
|
0.7 |
|
|
|
0.1 |
|
|
|
(1.8 |
) |
|
|
(1.6 |
) |
|
Net cash from (used in)
continuing operations |
|
12.9 |
|
|
|
(16.6 |
) |
|
|
7.8 |
|
|
|
(2.2 |
) |
|
Net cash used in
discontinued operations |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Net cash from (used in)
financing activities |
|
12.9 |
|
|
|
(16.6 |
) |
|
|
7.8 |
|
|
|
(2.2 |
) |
|
Change in cash and
equivalents due to changes in foreign currency exchange rates |
|
(2.4 |
) |
|
|
1.8 |
|
|
|
(3.7 |
) |
|
|
2.2 |
|
|
Net change in cash and
equivalents |
|
(9.2 |
) |
|
|
4.1 |
|
|
|
(16.1 |
) |
|
|
0.6 |
|
|
Consolidated cash and
equivalents, beginning of period |
|
92.7 |
|
|
|
97.9 |
|
|
|
99.6 |
|
|
|
101.4 |
|
|
Consolidated cash and
equivalents, end of period |
$ |
83.5 |
|
|
$ |
102.0 |
|
|
$ |
83.5 |
|
|
$ |
102.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SPX CORPORATION AND SUBSIDIARIES |
RESULTS OF REPORTABLE SEGMENTS |
(Unaudited; in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Six months ended |
|
|
|
|
July 1, 2017 |
|
July 2, 2016 |
|
Δ |
%/bps |
July 1, 2017 |
|
July 2, 2016 |
|
Δ |
%/bps |
HVAC reportable
segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
120.3 |
|
|
$ |
121.9 |
|
|
$ |
(1.6 |
) |
(1.3 |
)% |
$ |
230.4 |
|
|
$ |
233.5 |
|
|
$ |
(3.1 |
) |
(1.3 |
)% |
Gross profit |
|
|
38.2 |
|
|
|
41.1 |
|
|
|
(2.9 |
) |
|
|
76.4 |
|
|
|
80.5 |
|
|
|
(4.1 |
) |
|
Selling, general and
administrative expense |
|
|
22.7 |
|
|
|
23.9 |
|
|
|
(1.2 |
) |
|
|
44.3 |
|
|
|
47.3 |
|
|
|
(3.0 |
) |
|
Intangible amortization
expense |
|
|
0.1 |
|
|
|
0.1 |
|
|
|
— |
|
|
|
0.2 |
|
|
|
0.2 |
|
|
|
— |
|
|
Income |
|
$ |
15.4 |
|
|
$ |
17.1 |
|
|
$ |
(1.7 |
) |
(9.9 |
)% |
$ |
31.9 |
|
|
$ |
33.0 |
|
|
$ |
(1.1 |
) |
(3.3 |
)% |
as a
percent of revenues |
|
|
12.8 |
% |
|
|
14.0 |
% |
|
|
-120 bps |
|
13.8 |
% |
|
|
14.1 |
% |
|
|
-30 bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Detection &
Measurement reportable segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
64.5 |
|
|
$ |
60.1 |
|
|
$ |
4.4 |
|
7.3 |
% |
$ |
118.1 |
|
|
$ |
115.5 |
|
|
$ |
2.6 |
|
2.3 |
% |
Gross profit |
|
|
31.9 |
|
|
|
28.3 |
|
|
|
3.6 |
|
|
|
56.7 |
|
|
|
54.2 |
|
|
|
2.5 |
|
|
Selling, general and
administrative expense |
|
|
14.6 |
|
|
|
16.0 |
|
|
|
(1.4 |
) |
|
|
28.2 |
|
|
|
30.7 |
|
|
|
(2.5 |
) |
|
Intangible amortization
expense |
|
|
— |
|
|
|
0.2 |
|
|
|
(0.2 |
) |
|
|
— |
|
|
|
0.4 |
|
|
|
(0.4 |
) |
|
Income |
|
$ |
17.3 |
|
|
$ |
12.1 |
|
|
$ |
5.2 |
|
43.0 |
% |
$ |
28.5 |
|
|
$ |
23.1 |
|
|
$ |
5.4 |
|
23.4 |
% |
as a
percent of revenues |
|
|
26.8 |
% |
|
|
20.1 |
% |
|
|
670 bps |
|
24.1 |
% |
|
|
20.0 |
% |
|
|
410 bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Engineered
Solutions reportable segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
164.9 |
|
|
$ |
189.4 |
|
|
$ |
(24.5 |
) |
(12.9 |
)% |
$ |
341.8 |
|
|
$ |
383.0 |
|
|
$ |
(41.2 |
) |
(10.8 |
)% |
Gross profit |
|
|
6.0 |
|
|
|
21.7 |
|
|
|
(15.7 |
) |
|
|
31.1 |
|
|
|
46.1 |
|
|
|
(15.0 |
) |
|
Selling, general and
administrative expense |
|
|
18.0 |
|
|
|
18.1 |
|
|
|
(0.1 |
) |
|
|
36.4 |
|
|
|
39.0 |
|
|
|
(2.6 |
) |
|
Intangible amortization
expense |
|
|
— |
|
|
|
0.6 |
|
|
|
(0.6 |
) |
|
|
0.1 |
|
|
|
1.2 |
|
|
|
(1.1 |
) |
|
Income (loss) |
|
$ |
(12.0 |
) |
|
$ |
3.0 |
|
|
$ |
(15.0 |
) |
(500.0 |
)% |
$ |
(5.4 |
) |
|
$ |
5.9 |
|
|
$ |
(11.3 |
) |
(191.5 |
)% |
as a
percent of revenues |
|
|
(7.3 |
)% |
|
|
1.6 |
% |
|
|
-890 bps |
|
(1.6 |
)% |
|
|
1.5 |
% |
|
|
-310 bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Revenues |
|
$ |
349.7 |
|
|
$ |
371.4 |
|
|
$ |
(21.7 |
) |
(5.8 |
)% |
$ |
690.3 |
|
|
$ |
732.0 |
|
|
$ |
(41.7 |
) |
(5.7 |
)% |
Consolidated Segment Income |
|
|
20.7 |
|
|
|
32.2 |
|
|
|
(11.5 |
) |
(35.7 |
)% |
|
55.0 |
|
|
|
62.0 |
|
|
|
(7.0 |
) |
(11.3 |
)% |
as a percent of revenues |
|
|
5.9 |
% |
|
|
8.7 |
% |
|
|
-280 bps |
|
8.0 |
% |
|
|
8.5 |
% |
|
|
-50 bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total income for
reportable segments |
|
$ |
20.7 |
|
|
$ |
32.2 |
|
|
$ |
(11.5 |
) |
|
$ |
55.0 |
|
|
$ |
62.0 |
|
|
$ |
(7.0 |
) |
|
Corporate expense |
|
|
11.3 |
|
|
|
8.6 |
|
|
|
2.7 |
|
|
|
22.7 |
|
|
|
20.0 |
|
|
|
2.7 |
|
|
Pension and
postretirement expense |
|
|
1.2 |
|
|
|
2.8 |
|
|
|
(1.6 |
) |
|
|
2.6 |
|
|
|
3.8 |
|
|
|
(1.2 |
) |
|
Long-term incentive
compensation expense |
|
|
3.6 |
|
|
|
3.4 |
|
|
|
0.2 |
|
|
|
6.8 |
|
|
|
6.1 |
|
|
|
0.7 |
|
|
Impairment of
intangible assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4.0 |
|
|
|
(4.0 |
) |
|
Special charges,
net |
|
|
0.5 |
|
|
|
2.4 |
|
|
|
(1.9 |
) |
|
|
1.0 |
|
|
|
2.9 |
|
|
|
(1.9 |
) |
|
Gain (loss) on sale of
dry cooling business |
|
|
— |
|
|
|
(1.2 |
) |
|
|
1.2 |
|
|
|
— |
|
|
|
16.7 |
|
|
|
(16.7 |
) |
|
Consolidated
operating income |
|
$ |
4.1 |
|
|
$ |
13.8 |
|
|
$ |
(9.7 |
) |
(70.3 |
)% |
$ |
21.9 |
|
|
$ |
41.9 |
|
|
$ |
(20.0 |
) |
(47.7 |
)% |
as a percent of
revenues |
|
|
1.2 |
% |
|
|
3.7 |
% |
|
|
-250 bps |
|
3.2 |
% |
|
|
5.7 |
% |
|
|
-250 bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SPX CORPORATION AND SUBSIDIARIES |
CASH AND DEBT RECONCILIATION |
(Unaudited; in millions) |
|
|
|
|
Six months ended |
|
|
|
|
|
|
|
|
|
|
|
July 1, 2017 |
|
|
|
|
|
|
|
|
|
Beginning cash and
equivalents |
|
$ |
99.6 |
|
|
|
|
|
|
|
|
|
|
Cash used in continuing
operations |
|
|
(9.7 |
) |
|
|
|
|
|
|
|
|
|
Capital
expenditures |
|
|
(4.8 |
) |
|
|
|
|
|
|
|
|
|
Borrowings under senior
credit facilities |
|
|
16.0 |
|
|
|
|
|
|
|
|
|
|
Repayments under senior
credit facilities |
|
|
(24.7 |
) |
|
|
|
|
|
|
|
|
|
Net borrowings under
other financing arrangements |
|
|
18.3 |
|
|
|
|
|
|
|
|
|
|
Minimum withholdings
paid on behalf of employees for net share settlements, net of
proceeds from the exercise of employee stock options |
|
|
(1.8 |
) |
|
|
|
|
|
|
|
|
|
Cash used in
discontinued operations |
|
|
(5.7 |
) |
|
|
|
|
|
|
|
|
|
Change in cash due to
changes in foreign currency exchange rates |
|
|
(3.7 |
) |
|
|
|
|
|
|
|
|
|
Ending cash and
equivalents |
|
$ |
83.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt at |
|
|
|
|
|
|
|
Debt at |
|
|
|
December 31, 2016 |
|
Borrowings |
|
Repayments |
|
Other |
|
July 1, 2017 |
|
Domestic revolving loan
facility |
|
$ |
— |
|
|
$ |
16.0 |
|
$ |
(16.0 |
) |
|
$ |
— |
|
$ |
— |
|
|
Term loan |
|
|
341.2 |
|
|
|
— |
|
|
(8.7 |
) |
|
|
— |
|
|
332.5 |
|
|
Trade receivables
financing arrangement |
|
|
— |
|
|
|
40.0 |
|
|
(19.0 |
) |
|
|
— |
|
|
21.0 |
|
|
Other indebtedness |
|
|
16.6 |
|
|
|
21.4 |
|
|
(24.1 |
) |
|
|
1.4 |
|
|
15.3 |
|
|
Less: Deferred
financing costs associated with the term loan |
|
|
(1.6 |
) |
|
|
— |
|
|
— |
|
|
|
0.2 |
|
|
(1.4 |
) |
|
Totals |
|
$ |
356.2 |
|
|
$ |
77.4 |
|
$ |
(67.8 |
) |
|
$ |
1.6 |
|
$ |
367.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
SPX CORPORATION AND SUBSIDIARIES |
|
NON-GAAP RECONCILIATION - ORGANIC
REVENUE |
|
HVAC, DETECTION & MEASUREMENT AND
ENGINEERED SOLUTIONS SEGMENTS |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three months ended July 1, 2017 |
|
|
|
HVAC |
|
|
Detection &
Measurement |
|
|
Engineered Solutions |
|
|
|
|
|
|
|
|
|
|
|
Net Revenue Growth
(Decline) |
|
(1.3 |
) |
% |
|
7.3 |
|
% |
|
(12.9 |
) |
% |
|
|
|
|
|
|
|
|
|
|
Exclude: Foreign
Currency |
|
(0.6 |
) |
% |
|
(1.5 |
) |
% |
|
1.7 |
|
% |
|
|
|
|
|
|
|
|
|
|
Exclude: South Africa
revenue revision |
|
— |
|
% |
|
— |
|
% |
|
(7.1 |
) |
% |
|
|
|
|
|
|
|
|
|
|
Organic Revenue Growth
(Decline) |
|
(0.7 |
) |
% |
|
8.8 |
|
% |
|
(7.5 |
) |
% |
|
|
|
|
SPX CORPORATION AND SUBSIDIARIES |
NON-GAAP RECONCILIATION - ENGINEERED SOLUTIONS
(CORE) ORGANIC REVENUE |
(Unaudited) |
|
|
|
|
Three months ended July 1, 2017 |
|
|
|
|
Engineered Solutions
Segment Net Revenue Decline |
(12.9 |
) |
% |
|
|
|
Adjustment to Exclude
South African projects |
(8.8 |
) |
% |
|
|
|
Engineered Solutions
(Core) Revenue Decline |
(4.1 |
) |
% |
|
|
|
Exclude: Foreign
Currency |
0.3 |
|
% |
|
|
|
Engineered Solutions
(Core) Organic Revenue Decline |
(4.4 |
) |
% |
|
|
|
|
|
|
|
|
|
|
SPX CORPORATION AND SUBSIDIARIES |
NON-GAAP RECONCILIATION - REVENUE AND SEGMENT
INCOME |
(Unaudited; in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
SPX: |
|
Three months ended |
|
Six months ended |
|
|
July 1, 2017 |
|
July 2, 2016 |
|
July 1, 2017 |
|
July 2, 2016 |
|
|
|
|
|
|
|
|
|
Consolidated
revenue |
|
$ |
349.7 |
|
|
$ |
371.4 |
|
|
$ |
690.3 |
|
|
$ |
732.0 |
|
|
|
|
|
|
|
|
|
|
Exclude: South African
projects |
|
|
2.0 |
|
|
|
19.6 |
|
|
|
20.2 |
|
|
|
40.1 |
|
|
|
|
|
|
|
|
|
|
Core revenue |
|
$ |
347.7 |
|
|
$ |
351.8 |
|
|
$ |
670.1 |
|
|
$ |
691.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total segment
income |
|
$ |
20.7 |
|
|
$ |
32.2 |
|
|
$ |
55.0 |
|
|
$ |
62.0 |
|
|
|
|
|
|
|
|
|
|
Exclude: South African
projects |
|
|
(26.6 |
) |
|
|
(2.9 |
) |
|
|
(31.0 |
) |
|
|
(6.3 |
) |
|
|
|
|
|
|
|
|
|
Core segment
income |
|
$ |
47.3 |
|
|
$ |
35.1 |
|
|
$ |
86.0 |
|
|
$ |
68.3 |
|
as a percent of Core
revenues (1) |
|
|
13.6 |
% |
|
|
10.0 |
% |
|
|
12.8 |
% |
|
|
9.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ENGINEERED
SOLUTIONS SEGMENT: |
|
Three months ended |
|
|
|
|
July 1, 2017 |
|
July 2, 2016 |
|
|
|
|
|
|
|
|
|
Engineered Solutions
revenue |
|
$ |
164.9 |
|
|
$ |
189.4 |
|
|
|
|
|
|
|
|
|
|
Exclude: South African
projects |
|
|
2.0 |
|
|
|
19.6 |
|
|
|
|
|
|
|
|
|
|
Engineered (Core)
Solutions revenue |
|
$ |
162.9 |
|
|
$ |
169.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Engineered Solutions
Segment income (loss) |
|
$ |
(12.0 |
) |
|
$ |
3.0 |
|
|
|
|
|
|
|
|
|
|
Exclude: South African
projects |
|
|
(26.6 |
) |
|
|
(2.9 |
) |
|
|
|
|
|
|
|
|
|
Engineered Solutions
(Core) income |
|
$ |
14.6 |
|
|
$ |
5.9 |
|
|
|
as a percent of
Engineered Solutions (Core) revenues (1) |
|
|
9.0 |
% |
|
|
3.5 |
% |
|
|
|
|
|
|
|
|
|
(1) See
"Results of Reportable Segments" for applicable percentages based
on GAAP results. |
|
|
|
|
|
|
|
|
|
|
|
|
SPX CORPORATION AND SUBSIDIARIES |
|
NON-GAAP RECONCILIATION - OPERATING
INCOME |
|
(Unaudited; in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Six months ended |
|
|
|
July 1, 2017 |
|
July 2, 2016 |
|
July 1, 2017 |
|
July 2, 2016 |
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
$ |
4.1 |
|
|
$ |
13.8 |
|
|
$ |
21.9 |
|
|
$ |
41.9 |
|
|
|
|
|
|
|
|
|
|
|
|
Exclude: |
|
|
|
|
|
|
|
|
|
South
African projects |
|
|
26.6 |
|
|
|
2.9 |
|
|
|
31.0 |
|
|
|
6.3 |
|
|
|
|
|
|
|
|
|
|
|
|
Non-service pension and postretirement items |
|
|
1.3 |
|
|
|
2.9 |
|
|
|
2.8 |
|
|
|
4.0 |
|
|
|
|
|
|
|
|
|
|
|
|
(Gain)
loss on sale of Dry Cooling |
|
|
— |
|
|
|
1.2 |
|
|
|
— |
|
|
|
(16.7 |
) |
|
|
|
|
|
|
|
|
|
|
|
Non-cash
impairment of intangible assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4.0 |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income |
|
$ |
32.0 |
|
|
$ |
20.8 |
|
|
$ |
55.7 |
|
|
$ |
39.5 |
|
|
as
a percent of Core revenues (1) |
|
|
9.2 |
% |
|
|
5.9 |
% |
|
|
8.3 |
% |
|
|
5.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See
"Results of Reportable Segments" for applicable percentages based
on GAAP results. |
|
|
|
|
|
|
|
|
SPX CORPORATION AND SUBSIDIARIES |
NON-GAAP RECONCILIATION - EARNINGS PER
SHARE |
Three Months Ended July 1, 2017 |
(Unaudited; in millions, except per share
values) |
|
|
|
GAAP |
|
Adjustments |
|
Adjusted |
Segment
income (1) |
$ |
20.7 |
|
|
$ |
26.6 |
|
|
$ |
47.3 |
|
Corporate
expense |
|
(11.3 |
) |
|
|
— |
|
|
|
(11.3 |
) |
Pension
and postretirement income (expense) (2) |
|
(1.2 |
) |
|
|
1.3 |
|
|
|
0.1 |
|
Long-term
incentive compensation expense |
|
(3.6 |
) |
|
|
— |
|
|
|
(3.6 |
) |
Special
charges, net |
|
(0.5 |
) |
|
|
— |
|
|
|
(0.5 |
) |
Operating
income |
|
4.1 |
|
|
|
27.9 |
|
|
|
32.0 |
|
|
|
|
|
|
|
Other
expense, net (3) |
|
(2.1 |
) |
|
|
0.3 |
|
|
|
(1.8 |
) |
Interest
expense, net (4) |
|
(4.3 |
) |
|
|
0.3 |
|
|
|
(4.0 |
) |
Income (loss)
from continuing operations before income taxes |
|
(2.3 |
) |
|
|
28.5 |
|
|
|
26.2 |
|
Income
tax provision |
|
(6.0 |
) |
|
|
(0.8 |
) |
|
|
(6.8 |
) |
Income (loss)
from continuing operations |
|
(8.3 |
) |
|
|
27.7 |
|
|
|
19.4 |
|
|
|
|
|
|
|
Dilutive shares
outstanding |
|
42.388 |
|
|
|
|
|
43.789 |
|
|
|
|
|
|
|
Income (loss)
per share from continuing operations |
$ |
(0.19 |
) |
|
|
|
$ |
0.44 |
|
|
(1)
Adjustment represents the removal of operating losses associated
with the South African projects. |
|
|
|
|
|
|
(2)
Adjustment represents the removal of non-service pension and
postretirement items. |
|
|
|
|
|
|
(3)
Adjustment represents removal of foreign currency losses
associated with the South African projects. |
|
|
|
|
|
|
(4)
Adjustment relates to removal of interest expense incurred in
connection with borrowings under a line of credit in South
Africa. |
|
|
|
|
|
|
|
SPX CORPORATION AND SUBSIDIARIES |
NON-GAAP RECONCILIATION - EARNINGS PER
SHARE |
Three Months Ended July 2, 2016 |
(Unaudited; in millions, except per share
values) |
|
|
|
GAAP |
|
Adjustments |
|
Adjusted |
Segment
income (1) |
$ |
32.2 |
|
|
$ |
2.9 |
|
|
$ |
35.1 |
|
Corporate
expense |
|
(8.6 |
) |
|
|
— |
|
|
|
(8.6 |
) |
Pension
and postretirement income (expense) (2) |
|
(2.8 |
) |
|
|
2.9 |
|
|
|
0.1 |
|
Long-term
incentive compensation expense |
|
(3.4 |
) |
|
|
— |
|
|
|
(3.4 |
) |
Special
charges, net |
|
(2.4 |
) |
|
|
— |
|
|
|
(2.4 |
) |
Loss on
sale of dry cooling business (3) |
|
(1.2 |
) |
|
|
1.2 |
|
|
|
— |
|
Operating
income |
|
13.8 |
|
|
|
7.0 |
|
|
|
20.8 |
|
|
|
|
|
|
|
Other
income, net (4) |
|
0.1 |
|
|
|
2.1 |
|
|
|
2.2 |
|
Interest
expense, net |
|
(3.6 |
) |
|
|
— |
|
|
|
(3.6 |
) |
Income from
continuing operations before income taxes |
|
10.3 |
|
|
|
9.1 |
|
|
|
19.4 |
|
Income
tax provision |
|
(3.8 |
) |
|
|
(1.9 |
) |
|
|
(5.7 |
) |
Income from
continuing operations |
|
6.5 |
|
|
|
7.2 |
|
|
|
13.7 |
|
Less: Net
loss attributable to redeemable noncontrolling interest (5) |
|
(1.0 |
) |
|
|
0.9 |
|
|
|
(0.1 |
) |
Net income from
continuing operations attributable to SPX Corporation common
shareholders |
|
7.5 |
|
|
|
6.3 |
|
|
|
13.8 |
|
|
|
|
|
|
|
Adjustment related to redeemable noncontrolling interest (5) |
|
(18.1 |
) |
|
|
18.1 |
|
|
|
— |
|
Net income
(loss) from continuing operations attributable to SPX Corporation
common shareholders after adjustment to redeemable noncontrolling
interest |
$ |
(10.6 |
) |
|
$ |
24.4 |
|
|
$ |
13.8 |
|
|
|
|
|
|
|
Dilutive shares
outstanding |
|
41.594 |
|
|
|
|
|
41.954 |
|
|
|
|
|
|
|
Income (loss)
per share from continuing operations |
$ |
(0.25 |
) |
|
|
|
$ |
0.33 |
|
|
(1)
Adjustment represents the removal of operating losses associated
with the South African projects. |
|
|
|
|
|
|
(2)
Adjustment represents the removal of non-service pension and
postretirement items. |
|
|
|
|
|
|
(3)
Adjustment represents removal of loss on sale of dry cooling
business. |
|
|
|
|
|
|
(4)
Adjustment represents removal of foreign currency losses associated
with the South African projects. |
|
(5)
Adjustment represents removal of noncontrolling interest amounts
associated with the South African projects |
|
|
|
|
SPX CORPORATION AND SUBSIDIARIES |
NON-GAAP RECONCILIATION - FREE CASH FLOW USED
IN CONTINUING OPERATIONS |
(Unaudited; in millions) |
|
|
|
|
|
|
|
|
Three months ended |
|
|
July 1, 2017 |
|
|
|
Net cash used in
continuing operations |
|
$ |
(15.1 |
) |
|
|
|
Capital expenditures -
continuing operations |
|
|
(2.6 |
) |
|
|
|
Free cash flow used in
continuing operations |
|
$ |
(17.7 |
) |
|
Investor Contacts:
Paul Clegg, VP, Finance and Investor Relations
Phone: 980-474-3806
E-mail: spx.investor@spx.com
Pat Uotila, Manager, Investor Relations
Phone: 980-474-3806
E-mail: spx.investor@spx.com
Media Contact:
Vivek Dhir, Vice President of Marketing and Business Development
Phone: 980-474-3703
E-mail: vivek.dhir@spx.com
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