SPX Corporation (NYSE:SPXC) today reported results for the quarter
ended June 27, 2020.
Gene Lowe, President and CEO, remarked, “I am
very pleased with our second quarter performance, which reflects
solid operational execution and highlights the strengths of our
balanced portfolio and our business system, which has allowed us to
quickly adapt to changing conditions. Although we experienced
COVID-19 pandemic-related headwinds during Q2, we maintained stable
revenues and adjusted operating income.”
Mr. Lowe continued, “As we assess the key
drivers of our performance for the second half of 2020, we see
continued risks associated with the spread of COVID-19 in our
largest market, the United States. However, we have multiple tools
to continue successfully navigating through the pandemic, and
anticipate generating significant cash and profits during the
remainder of the year. We ended the second quarter with a
very strong balance sheet and available liquidity, positioning us
for continued capital deployment, including attractive acquisition
opportunities that accelerate our strategic growth
plans.”
Second Quarter 2020
Overview:
For the second quarter of 2020, the company
reported revenue of $373.2 million and operating income of $34.4
million, compared with revenue of $372.4 million and operating
income of $26.3 million in the second quarter of 2019. Diluted
income per share from continuing operations in the second quarter
of 2020 was $0.62, compared with a diluted income per share from
continuing operations of $0.43 in the second quarter of 2019.
SPX’s adjusted revenue* was $371.2 million and
adjusted operating income* was $41.5 million, compared with
adjusted revenue* of $371.6 million and adjusted operating income*
of $40.7 million in the second quarter of 2019. Adjusted
income per share* in the second quarter of 2020 was $0.64, compared
with $0.67 in the second quarter of 2019.
Second Quarter and Year-to-Date Financial
Comparison:
GAAP Results:
($ millions) |
|
Q2 2020 |
|
Q2 2019 |
|
2020 YTD |
|
2019 YTD |
Revenue |
|
$ |
373.2 |
|
$ |
372.4 |
|
$ |
742.5 |
|
$ |
716.0 |
Segment Income |
|
|
47.6 |
|
|
41.4 |
|
|
94.8 |
|
|
62.2 |
Operating Income |
|
|
34.4 |
|
|
26.3 |
|
|
67.1 |
|
|
29.3 |
Adjusted Results:
($ millions) |
|
Q2 2020 |
|
Q2 2019 |
|
2020 YTD |
|
2019 YTD |
Adjusted Revenue* |
|
$ |
371.2 |
|
$ |
371.6 |
|
$ |
736.5 |
|
$ |
723.1 |
Adjusted Segment Income* |
|
|
54.2 |
|
|
54.7 |
|
|
108.0 |
|
|
101.0 |
Adjusted Operating Income* |
|
|
41.5 |
|
|
40.7 |
|
|
80.7 |
|
|
72.6 |
* Non-GAAP financial measure. See attached schedules for
reconciliation to most comparable GAAP financial measure.
HVAC
Revenue for Q2 2020 was $132.3 million,
compared with $130.9 million in Q2 2019, an increase of 1.1%,
including a 10.4% increase from acquisitions and a 0.4% unfavorable
impact related to currency fluctuation. Organic revenue* decreased
8.9%, primarily reflecting an increase in international cooling
volumes, more than offset by a decline in demand for heating
products, including a negative impact of the COVID-19 pandemic on
customer demand.
Segment income in Q2 2020 was $18.2
million, compared to $16.7 million in Q2 2019. Adjusted
segment income*, which excludes intangible amortization expense of
$0.7 million, was $18.9 million, or 14.3% of revenue. This compares
with adjusted segment income* of $16.8 million, or 12.8% of revenue
in Q2 2019, which excludes intangible amortization expense of
$0.1 million. The increase in adjusted segment income* and
150 basis points increase in adjusted segment income margin* were
due to stronger operational execution and a more favorable product
mix in our domestic cooling business.
Detection & Measurement
Revenue for Q2 2020 was $92.1 million,
compared with $101.7 million in Q2 2019, a decrease of 9.4%,
including a 0.5% unfavorable impact related to currency
fluctuation. Organic revenue* decreased 8.9%, largely due to lower
sales of Communication Technologies and Locators products, with a
significant portion of the decrease attributable to lower customer
demand and project order delays associated with the COVID-19
pandemic.
Segment income in Q2 2020 was $16.0 million,
compared to $21.7 million in Q2 2019. Adjusted segment income*,
which excludes intangible amortization expense of $1.7 million, was
$17.7 million, or 19.2% of revenue. This compares with adjusted
segment income* of $24.9 million, or 24.5% of revenue, in Q2 2019,
which excludes intangible amortization expense of $2.3 million and
acquisition-related costs of $0.9 million. The 530 basis
points decrease in adjusted segment income margin* was driven
primarily by the decrease in volumes noted above and a less
favorable business mix associated with lower shipments of higher
margin products.
Engineered Solutions
Revenue in Q2 2020 was $146.8 million,
compared with $139.0 million in Q2 2019, an increase of 5.6%,
which included an organic increase of 5.9% and a 0.3% unfavorable
impact related to currency fluctuation. The organic increase was
driven by higher revenue in our Transformers business, associated
with higher manufacturing throughput due to improved
execution.
Segment income in Q2 2020 was $17.6
million, or 12.0% of revenue, compared with segment income of $13.0
million, or 9.4% of revenue, in Q2 2019. The increase in
income and margin was driven by a more favorable sales mix,
improved pricing discipline, and improved throughput at the
Transformers business’s manufacturing facilities.
All Other
All Other, which includes the South African and
Heat Transfer operations, had revenue of $2.0 million in Q2 2020,
compared with $0.8 million in Q2 2019. The increase was due
largely to a prior-year adjustment that reduced the cumulative
revenue associated with the South African projects by $6.0 million
in Q2 2019.
All Other incurred a loss in Q2 2020 of $4.2
million, compared with a loss of $10.0 million in Q2 2019.
The decrease in the loss was due primarily to the revenue
adjustment noted above associated with the South African projects
in the prior year period.
Financial Update:
As of June 27, 2020, SPX had total outstanding
debt of $517.9 million and total cash of $190.2
million. During Q2 2020, SPX generated net operating cash from
continuing operations of $27.1 million. Net leverage, as
calculated under the company’s bank credit agreement, was 1.5x, a
modest reduction from Q1 2020.
Non-GAAP Presentation: To provide additional
clarity to its operating results, the company discusses results
that include “adjusted” non-GAAP financial measures. Adjusted
results for the company exclude, among other items, the effect of
the South African and Heat Transfer operations, categorized as “All
Other” in the company’s segment reporting structure. The company
reports separately on the results of the “All Other” category. The
company anticipates reporting the results of businesses included in
the “All Other” category as discontinued operations, at such time
as they meet the accounting requirements for this treatment.
Form 10-Q: The company
expects to file its quarterly report on Form 10-Q for the quarter
ended June 27, 2020 with the Securities and Exchange Commission on
or before August 6, 2020. 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 first
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: 3089269
A replay of the call will be available by
telephone through Thursday, August 6th.
To listen to a replay of the callDial in:
855-859-2056From outside the United States: +1
404-537-3406Participant code: 3089269
Upcoming Investor Events:
Company management plans to conduct virtual meetings with investors
during the third quarter of 2020 and SPX will also be virtually
participating in the Ideas Conference on August 27th, the Vertical
Annual Global Industrials Conference on September 9th, and the
Sidoti Fall Conference on September 23rd.
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
2019 and over 4,500 employees in 17 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.
Certain statements in this press release are forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended, and are subject to the safe
harbor created thereby. Actual results may differ materially from
these statements. The words “believe,” “expect,” “anticipate,”
“project” and similar expressions identify forward-looking
statements. Please read these forward-looking statements in
conjunction with the company’s documents filed with the Securities
and Exchange Commission, including the company’s most recent annual
report on Form 10-K and its most recent quarterly report 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. In addition to the
risks and uncertainties identified in those filings, the
forward-looking statements contained in this press release are
subject to risks and uncertainties related to the COVID-19
pandemic, including the impact of the pandemic or related
government responses on the company’s businesses, the businesses of
its customers and vendors, and whether the company’s businesses and
those of its customers and vendors will continue to be treated as
“essential” operations under government orders restricting business
activities or, even if so treated, whether health and safety
concerns might otherwise require certain of the company’s
operations to be halted for some period of time. 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,
forward-looking statements 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.
SOURCE SPX Corporation.
Investor and Media Contacts:Paul Clegg, VP,
Investor Relations and CommunicationsPhone:
980-474-3806E-mail: spx.investor@spx.com
Pat Uotila, Manager, Investor RelationsPhone:
980-474-3806E-mail: spx.investor@spx.com
|
|
|
|
|
|
|
|
SPX
CORPORATION AND SUBSIDIARIES |
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS |
(Unaudited;
in millions, except per share amounts) |
|
|
|
|
|
|
|
|
|
Three months ended |
|
Six months ended |
|
June 27, 2020 |
|
June 29, 2019 |
|
June 27, 2020 |
|
June 29, 2019 |
|
|
|
|
|
|
|
|
Revenues |
$ |
373.2 |
|
|
$ |
372.4 |
|
|
$ |
742.5 |
|
|
$ |
716.0 |
|
Costs and
expenses: |
|
|
|
|
|
|
|
Cost of products sold |
|
259.2 |
|
|
|
264.2 |
|
|
|
514.4 |
|
|
|
524.6 |
|
Selling, general and administrative |
|
75.8 |
|
|
|
78.2 |
|
|
|
154.7 |
|
|
|
154.9 |
|
Intangible amortization |
|
2.4 |
|
|
|
2.4 |
|
|
|
5.0 |
|
|
|
4.0 |
|
Special charges, net |
|
1.4 |
|
|
|
1.3 |
|
|
|
1.7 |
|
|
|
1.4 |
|
Other operating (income) expense |
|
- |
|
|
|
- |
|
|
|
(0.4 |
) |
|
|
1.8 |
|
Operating income |
|
34.4 |
|
|
|
26.3 |
|
|
|
67.1 |
|
|
|
29.3 |
|
|
|
|
|
|
|
|
|
Other
income, net |
|
5.8 |
|
|
|
1.9 |
|
|
|
6.5 |
|
|
|
9.1 |
|
Interest
expense |
|
(4.8 |
) |
|
|
(5.3 |
) |
|
|
(9.5 |
) |
|
|
(10.6 |
) |
Interest
income |
|
0.1 |
|
|
|
0.6 |
|
|
|
0.1 |
|
|
|
0.9 |
|
Income from continuing operations before income taxes |
|
35.5 |
|
|
|
23.5 |
|
|
|
64.2 |
|
|
|
28.7 |
|
Income tax
provision |
|
(7.1 |
) |
|
|
(4.1 |
) |
|
|
(13.1 |
) |
|
|
(8.7 |
) |
Income from continuing operations |
|
28.4 |
|
|
|
19.4 |
|
|
|
51.1 |
|
|
|
20.0 |
|
|
|
|
|
|
|
|
|
Income
(loss) from discontinued operations, net of tax |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Loss on
disposition of discontinued operations, net of tax |
|
(1.3 |
) |
|
|
(0.2 |
) |
|
|
(1.3 |
) |
|
|
(1.6 |
) |
Loss from discontinued operations, net of tax |
|
(1.3 |
) |
|
|
(0.2 |
) |
|
|
(1.3 |
) |
|
|
(1.6 |
) |
|
|
|
|
|
|
|
|
Net
income |
$ |
27.1 |
|
|
$ |
19.2 |
|
|
$ |
49.8 |
|
|
$ |
18.4 |
|
|
|
|
|
|
|
|
|
Basic income
per share of common stock: |
|
|
|
|
|
|
|
Income from continuing operations |
$ |
0.64 |
|
|
$ |
0.44 |
|
|
$ |
1.15 |
|
|
$ |
0.46 |
|
Loss from discontinued operations |
|
(0.03 |
) |
|
|
- |
|
|
|
(0.03 |
) |
|
|
(0.04 |
) |
Net income per share |
$ |
0.61 |
|
|
$ |
0.44 |
|
|
$ |
1.12 |
|
|
$ |
0.42 |
|
|
|
|
|
|
|
|
|
Weighted-average number of common shares outstanding — basic |
|
44.590 |
|
|
|
43.914 |
|
|
|
44.452 |
|
|
|
43.767 |
|
|
|
|
|
|
|
|
|
Diluted
income per share of common stock: |
|
|
|
|
|
|
|
Income from continuing operations |
$ |
0.62 |
|
|
$ |
0.43 |
|
|
$ |
1.12 |
|
|
$ |
0.45 |
|
Loss from discontinued operations |
|
(0.03 |
) |
|
|
- |
|
|
|
(0.03 |
) |
|
|
(0.04 |
) |
Net income per share |
$ |
0.59 |
|
|
$ |
0.43 |
|
|
$ |
1.09 |
|
|
$ |
0.41 |
|
|
|
|
|
|
|
|
|
Weighted-average number of common shares outstanding — diluted |
|
45.648 |
|
|
|
44.892 |
|
|
|
45.620 |
|
|
|
44.750 |
|
|
|
|
|
|
|
|
|
SPX
CORPORATION AND SUBSIDIARIES |
CONDENSED
CONSOLIDATED BALANCE SHEETS |
(Unaudited;
in millions) |
|
|
|
|
|
June 27, 2020 |
|
December 31, 2019 |
ASSETS |
|
|
|
Current
assets: |
|
|
|
Cash and equivalents |
$ |
190.2 |
|
|
$ |
54.7 |
|
Accounts receivable, net |
|
239.5 |
|
|
|
265.9 |
|
Contract assets |
|
65.5 |
|
|
|
63.4 |
|
Inventories, net |
|
181.6 |
|
|
|
154.9 |
|
Other current assets (includes income taxes receivable of $24.9 and
$23.0 at June 27, 2020 and December 31, 2019, respectively) |
|
92.2 |
|
|
|
93.2 |
|
Total current assets |
|
769.0 |
|
|
|
632.1 |
|
Property,
plant and equipment: |
|
|
|
Land |
|
19.2 |
|
|
|
18.7 |
|
Buildings and leasehold improvements |
|
120.6 |
|
|
|
121.9 |
|
Machinery and equipment |
|
349.6 |
|
|
|
342.6 |
|
|
|
489.4 |
|
|
|
483.2 |
|
Accumulated depreciation |
|
(311.3 |
) |
|
|
(304.1 |
) |
Property, plant and equipment, net |
|
178.1 |
|
|
|
179.1 |
|
Goodwill |
|
451.0 |
|
|
|
449.3 |
|
Intangibles,
net |
|
246.5 |
|
|
|
251.7 |
|
Other
assets |
|
603.6 |
|
|
|
605.9 |
|
Deferred
income taxes |
|
8.2 |
|
|
|
16.4 |
|
TOTAL
ASSETS |
$ |
2,256.4 |
|
|
$ |
2,134.5 |
|
|
|
|
|
LIABILITIES
AND EQUITY |
|
|
|
Current
liabilities: |
|
|
|
Accounts payable |
$ |
137.9 |
|
|
$ |
141.6 |
|
Contract liabilities |
|
91.1 |
|
|
|
100.8 |
|
Accrued expenses |
|
201.4 |
|
|
|
220.4 |
|
Income taxes payable |
|
2.7 |
|
|
|
2.2 |
|
Short-term debt |
|
266.8 |
|
|
|
142.6 |
|
Current maturities of long-term debt |
|
4.1 |
|
|
|
1.0 |
|
Total current liabilities |
|
704.0 |
|
|
|
608.6 |
|
|
|
|
|
Long-term
debt |
|
247.0 |
|
|
|
249.9 |
|
Deferred and
other income taxes |
|
26.3 |
|
|
|
26.3 |
|
Other
long-term liabilities |
|
727.0 |
|
|
|
747.3 |
|
Total long-term liabilities |
|
1,000.3 |
|
|
|
1,023.5 |
|
|
|
|
|
Equity: |
|
|
|
Common stock |
|
0.5 |
|
|
|
0.5 |
|
Paid-in capital |
|
1,303.4 |
|
|
|
1,302.4 |
|
Retained deficit |
|
(535.5 |
) |
|
|
(584.8 |
) |
Accumulated other comprehensive income |
|
235.3 |
|
|
|
244.3 |
|
Common stock in treasury |
|
(451.6 |
) |
|
|
(460.0 |
) |
Total equity |
|
552.1 |
|
|
|
502.4 |
|
TOTAL
LIABILITIES AND EQUITY |
$ |
2,256.4 |
|
|
$ |
2,134.5 |
|
|
|
|
|
SPX
CORPORATION AND SUBSIDIARIES |
RESULTS OF
REPORTABLE AND OTHER OPERATING SEGMENTS |
(Unaudited;
in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
|
|
|
Six months ended |
|
|
|
|
|
|
June 27, 2020 |
|
June 29, 2019 |
|
Δ |
|
%/bps |
|
June 27, 2020 |
|
June 29, 2019 |
|
Δ |
|
%/bps |
HVAC
reportable segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
132.3 |
|
|
$ |
130.9 |
|
|
$ |
1.4 |
|
|
1.1 |
% |
|
$ |
250.8 |
|
|
$ |
259.3 |
|
|
$ |
(8.5 |
) |
|
(3.3 |
)% |
Gross
profit |
|
|
44.1 |
|
|
|
40.9 |
|
|
|
3.2 |
|
|
|
|
|
84.5 |
|
|
|
82.5 |
|
|
|
2.0 |
|
|
|
Selling,
general and administrative expense |
|
|
25.2 |
|
|
|
24.1 |
|
|
|
1.1 |
|
|
|
|
|
49.8 |
|
|
|
47.2 |
|
|
|
2.6 |
|
|
|
Intangible
amortization expense |
|
|
0.7 |
|
|
|
0.1 |
|
|
|
0.6 |
|
|
|
|
|
1.5 |
|
|
|
0.2 |
|
|
|
1.3 |
|
|
|
Income |
|
$ |
18.2 |
|
|
$ |
16.7 |
|
|
$ |
1.5 |
|
|
9.0 |
% |
|
$ |
33.2 |
|
|
$ |
35.1 |
|
|
$ |
(1.9 |
) |
|
(5.4 |
)% |
as a percent of revenues |
|
|
13.8 |
% |
|
|
12.8 |
% |
|
|
|
100 bps |
|
|
13.2 |
% |
|
|
13.5 |
% |
|
|
|
-30 bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Detection & Measurement reportable
segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
92.1 |
|
|
$ |
101.7 |
|
|
$ |
(9.6 |
) |
|
(9.4 |
)% |
|
$ |
184.0 |
|
|
$ |
186.8 |
|
|
$ |
(2.8 |
) |
|
(1.5 |
)% |
Gross
profit |
|
|
37.8 |
|
|
|
46.6 |
|
|
|
(8.8 |
) |
|
|
|
|
79.7 |
|
|
|
86.0 |
|
|
|
(6.3 |
) |
|
|
Selling,
general and administrative expense |
|
|
20.1 |
|
|
|
22.6 |
|
|
|
(2.5 |
) |
|
|
|
|
42.0 |
|
|
|
43.5 |
|
|
|
(1.5 |
) |
|
|
Intangible
amortization expense |
|
|
1.7 |
|
|
|
2.3 |
|
|
|
(0.6 |
) |
|
|
|
|
3.5 |
|
|
|
3.8 |
|
|
|
(0.3 |
) |
|
|
Income |
|
$ |
16.0 |
|
|
$ |
21.7 |
|
|
$ |
(5.7 |
) |
|
(26.3 |
)% |
|
$ |
34.2 |
|
|
$ |
38.7 |
|
|
$ |
(4.5 |
) |
|
(11.6 |
)% |
as a percent of revenues |
|
|
17.4 |
% |
|
|
21.3 |
% |
|
|
|
-390 bps |
|
|
18.6 |
% |
|
|
20.7 |
% |
|
|
|
-210 bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Engineered Solutions reportable segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
146.8 |
|
|
$ |
139.0 |
|
|
$ |
7.8 |
|
|
5.6 |
% |
|
$ |
301.7 |
|
|
$ |
277.0 |
|
|
$ |
24.7 |
|
|
8.9 |
% |
Gross
profit |
|
|
32.4 |
|
|
|
26.2 |
|
|
|
6.2 |
|
|
|
|
|
64.1 |
|
|
|
47.8 |
|
|
|
16.3 |
|
|
|
Selling,
general and administrative expense |
|
|
14.8 |
|
|
|
13.2 |
|
|
|
1.6 |
|
|
|
|
|
28.6 |
|
|
|
26.8 |
|
|
|
1.8 |
|
|
|
Income |
|
$ |
17.6 |
|
|
$ |
13.0 |
|
|
$ |
4.6 |
|
|
35.4 |
% |
|
$ |
35.5 |
|
|
$ |
21.0 |
|
|
$ |
14.5 |
|
|
69.0 |
% |
as a percent of revenues |
|
|
12.0 |
% |
|
|
9.4 |
% |
|
|
|
260 bps |
|
|
11.8 |
% |
|
|
7.6 |
% |
|
|
|
420 bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All
Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
2.0 |
|
|
$ |
0.8 |
|
|
$ |
1.2 |
|
|
150.0 |
% |
|
$ |
6.0 |
|
|
$ |
(7.1 |
) |
|
$ |
13.1 |
|
|
184.5 |
% |
Gross profit
(loss) |
|
|
(0.3 |
) |
|
|
(5.5 |
) |
|
|
5.2 |
|
|
|
|
|
(0.2 |
) |
|
|
(24.9 |
) |
|
|
24.7 |
|
|
|
Selling,
general and administrative expense |
|
|
3.9 |
|
|
|
4.5 |
|
|
|
(0.6 |
) |
|
|
|
|
7.9 |
|
|
|
7.7 |
|
|
|
0.2 |
|
|
|
Loss |
|
$ |
(4.2 |
) |
|
$ |
(10.0 |
) |
|
$ |
5.8 |
|
|
(58.0 |
)% |
|
$ |
(8.1 |
) |
|
$ |
(32.6 |
) |
|
$ |
24.5 |
|
|
(75.2 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Revenues |
|
$ |
373.2 |
|
|
$ |
372.4 |
|
|
$ |
0.8 |
|
|
0.2 |
% |
|
$ |
742.5 |
|
|
$ |
716.0 |
|
|
$ |
26.5 |
|
|
3.7 |
% |
Consolidated Segment Income |
|
|
47.6 |
|
|
|
41.4 |
|
|
|
6.2 |
|
|
15.0 |
% |
|
|
94.8 |
|
|
|
62.2 |
|
|
|
32.6 |
|
|
52.4 |
% |
as a percent of revenues |
|
|
12.8 |
% |
|
|
11.1 |
% |
|
|
|
170
bps |
|
|
12.8 |
% |
|
|
8.7 |
% |
|
|
|
410
bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
segment income |
|
$ |
47.6 |
|
|
$ |
41.4 |
|
|
$ |
6.2 |
|
|
|
|
$ |
94.8 |
|
|
$ |
62.2 |
|
|
$ |
32.6 |
|
|
|
Corporate
expense |
|
|
8.5 |
|
|
|
10.5 |
|
|
|
(2.0 |
) |
|
|
|
|
19.6 |
|
|
|
22.9 |
|
|
|
(3.3 |
) |
|
|
Long-term
incentive compensation expense |
|
|
3.3 |
|
|
|
3.3 |
|
|
|
- |
|
|
|
|
|
6.8 |
|
|
|
6.8 |
|
|
|
- |
|
|
|
Special
charges, net |
|
|
1.4 |
|
|
|
1.3 |
|
|
|
0.1 |
|
|
|
|
|
1.7 |
|
|
|
1.4 |
|
|
|
0.3 |
|
|
|
Other
operating (income) expense |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
(0.4 |
) |
|
$ |
1.8 |
|
|
|
(2.2 |
) |
|
|
Consolidated operating income |
|
$ |
34.4 |
|
|
$ |
26.3 |
|
|
$ |
8.1 |
|
|
30.8 |
% |
|
$ |
67.1 |
|
|
$ |
29.3 |
|
|
$ |
37.8 |
|
|
129.0 |
% |
as a percent of revenues |
|
|
9.2 |
% |
|
|
7.1 |
% |
|
|
|
210 bps |
|
|
9.0 |
% |
|
|
4.1 |
% |
|
|
|
490 bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SPX
CORPORATION AND SUBSIDIARIES |
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS |
(Unaudited;
in millions) |
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Six months ended |
|
|
June 27, 2020 |
|
June 29, 2019 |
|
June 27, 2020 |
|
June 29, 2019 |
Cash
flows from (used in) operating activities: |
|
|
|
|
|
|
|
|
Net income |
|
$ |
27.1 |
|
|
$ |
19.2 |
|
|
$ |
49.8 |
|
|
$ |
18.4 |
|
Less: Loss
from discontinued operations, net of tax |
|
|
(1.3 |
) |
|
|
(0.2 |
) |
|
|
(1.3 |
) |
|
|
(1.6 |
) |
Income from
continuing operations |
|
|
28.4 |
|
|
|
19.4 |
|
|
|
51.1 |
|
|
|
20.0 |
|
Adjustments
to reconcile income from continuing operations to net cash from
operating activities: |
|
|
|
|
|
|
|
|
Special charges, net |
|
|
1.4 |
|
|
|
1.3 |
|
|
|
1.7 |
|
|
|
1.4 |
|
Gain on change in fair value of equity security |
|
|
(5.3 |
) |
|
|
(1.6 |
) |
|
|
(5.3 |
) |
|
|
(7.9 |
) |
Deferred and other income taxes |
|
|
7.1 |
|
|
|
1.9 |
|
|
|
11.0 |
|
|
|
4.4 |
|
Depreciation and amortization |
|
|
9.3 |
|
|
|
8.5 |
|
|
|
18.5 |
|
|
|
16.6 |
|
Pension and other employee benefits |
|
|
1.4 |
|
|
|
2.3 |
|
|
|
3.6 |
|
|
|
5.1 |
|
Long-term incentive compensation |
|
|
3.3 |
|
|
|
3.3 |
|
|
|
6.8 |
|
|
|
6.8 |
|
Other, net |
|
|
1.7 |
|
|
|
0.3 |
|
|
|
2.4 |
|
|
|
0.6 |
|
Changes in
operating assets and liabilities, net of effects from
acquisitions: |
|
|
|
|
|
|
|
|
Accounts receivable and other assets |
|
|
25.0 |
|
|
|
23.5 |
|
|
|
48.8 |
|
|
|
71.0 |
|
Inventories |
|
|
(5.4 |
) |
|
|
(3.6 |
) |
|
|
(28.1 |
) |
|
|
(18.0 |
) |
Accounts payable, accrued expenses and other |
|
|
(38.5 |
) |
|
|
(37.6 |
) |
|
|
(78.9 |
) |
|
|
(69.8 |
) |
Cash spending on restructuring actions |
|
|
(1.3 |
) |
|
|
(1.2 |
) |
|
|
(1.8 |
) |
|
|
(2.2 |
) |
Net cash
from continuing operations |
|
|
27.1 |
|
|
|
16.5 |
|
|
|
29.8 |
|
|
|
28.0 |
|
Net cash
used in discontinued operations |
|
|
(0.4 |
) |
|
|
(0.6 |
) |
|
|
(3.5 |
) |
|
|
(1.5 |
) |
Net cash
from operating activities |
|
|
26.7 |
|
|
|
15.9 |
|
|
|
26.3 |
|
|
|
26.5 |
|
|
|
|
|
|
|
|
|
|
Cash
flows from (used in) investing activities: |
|
|
|
|
|
|
|
|
Proceeds from company-owned life insurance policies, net |
|
|
- |
|
|
|
1.9 |
|
|
|
1.1 |
|
|
|
2.4 |
|
Business acquisition, net of cash acquired |
|
|
- |
|
|
|
(0.2 |
) |
|
|
- |
|
|
|
(77.2 |
) |
Net proceeds from sales of assets |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
5.5 |
|
Capital expenditures |
|
|
(5.8 |
) |
|
|
(2.5 |
) |
|
|
(9.4 |
) |
|
|
(6.2 |
) |
Net cash
used in continuing operations |
|
|
(5.8 |
) |
|
|
(0.8 |
) |
|
|
(8.3 |
) |
|
|
(75.5 |
) |
Net cash
from discontinued operations |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Net cash
used in investing activities |
|
|
(5.8 |
) |
|
|
(0.8 |
) |
|
|
(8.3 |
) |
|
|
(75.5 |
) |
|
|
|
|
|
|
|
|
|
Cash
flows from (used in) financing activities: |
|
|
|
|
|
|
|
|
Borrowings under senior credit facilities |
|
|
- |
|
|
|
12.3 |
|
|
|
178.7 |
|
|
|
101.6 |
|
Repayments under senior credit facilities |
|
|
- |
|
|
|
(22.3 |
) |
|
|
(88.7 |
) |
|
|
(86.8 |
) |
Borrowings under trade receivables financing arrangement |
|
|
10.0 |
|
|
|
5.0 |
|
|
|
65.0 |
|
|
|
45.0 |
|
Repayments under trade receivables financing arrangement |
|
|
(3.0 |
) |
|
|
(15.0 |
) |
|
|
(30.0 |
) |
|
|
(44.0 |
) |
Net borrowings (repayments) under other financing arrangements |
|
|
(0.7 |
) |
|
|
(0.1 |
) |
|
|
(1.4 |
) |
|
|
2.7 |
|
Payment of contingent consideration |
|
|
- |
|
|
|
- |
|
|
|
(1.5 |
) |
|
|
- |
|
Minimum withholdings paid on behalf of employees for net share
settlements, net of proceeds from the exercise of employee stock
options |
|
|
0.5 |
|
|
|
1.1 |
|
|
|
(2.3 |
) |
|
|
(4.8 |
) |
Net cash
from (used in) continuing operations |
|
|
6.8 |
|
|
|
(19.0 |
) |
|
|
119.8 |
|
|
|
13.7 |
|
Net cash
from discontinued operations |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Net cash
from (used in) financing activities |
|
|
6.8 |
|
|
|
(19.0 |
) |
|
|
119.8 |
|
|
|
13.7 |
|
Change in
cash and equivalents due to changes in foreign currency exchange
rates |
|
|
(0.6 |
) |
|
|
(0.5 |
) |
|
|
(2.3 |
) |
|
|
1.1 |
|
Net change
in cash and equivalents |
|
|
27.1 |
|
|
|
(4.4 |
) |
|
|
135.5 |
|
|
|
(34.2 |
) |
Consolidated
cash and equivalents, beginning of period |
|
|
163.1 |
|
|
|
39.0 |
|
|
|
54.7 |
|
|
|
68.8 |
|
Consolidated
cash and equivalents, end of period |
|
$ |
190.2 |
|
|
$ |
34.6 |
|
|
$ |
190.2 |
|
|
$ |
34.6 |
|
|
|
|
|
|
|
|
|
|
SPX
CORPORATION AND SUBSIDIARIES |
CASH AND
DEBT RECONCILIATION |
(Unaudited;
in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended |
|
|
|
|
|
|
|
|
|
|
June 27, 2020 |
|
|
|
|
|
|
|
|
Beginning
cash and equivalents |
|
$ |
54.7 |
|
|
|
|
|
|
|
|
|
Cash from
continuing operations |
|
|
29.8 |
|
|
|
|
|
|
|
|
|
Capital
expenditures |
|
|
(9.4 |
) |
|
|
|
|
|
|
|
|
Proceeds
from company-owned life insurance policies, net |
|
|
1.1 |
|
|
|
|
|
|
|
|
|
Borrowings
under senior credit facilities |
|
|
178.7 |
|
|
|
|
|
|
|
|
|
Repayments
under senior credit facilities |
|
|
(88.7 |
) |
|
|
|
|
|
|
|
|
Net
borrowings under other financing arrangements |
|
|
33.6 |
|
|
|
|
|
|
|
|
|
Payment of
contingent consideration |
|
|
(1.5 |
) |
|
|
|
|
|
|
|
|
Minimum
withholdings paid on behalf of employees for net share settlements,
net of proceeds from the exercise of employee stock options |
|
|
(2.3 |
) |
|
|
|
|
|
|
|
|
Cash used in
discontinued operations |
|
|
(3.5 |
) |
|
|
|
|
|
|
|
|
Change in
cash due to changes in foreign currency exchange rates |
|
|
(2.3 |
) |
|
|
|
|
|
|
|
|
Ending cash
and equivalents |
|
$ |
190.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt
at |
|
|
|
|
|
|
|
Debt
at |
|
|
December 31, 2019 |
|
Borrowings |
|
Repayments |
|
Other |
|
June 27, 2020 |
Revolving loans |
|
$ |
140.0 |
|
|
$ |
178.7 |
|
$ |
(88.7 |
) |
|
$ |
- |
|
$ |
230.0 |
|
Term
loan |
|
|
250.0 |
|
|
|
- |
|
|
- |
|
|
|
- |
|
|
250.0 |
|
Trade
receivables financing arrangement |
|
|
- |
|
|
|
65.0 |
|
|
(30.0 |
) |
|
|
- |
|
|
35.0 |
|
Other
indebtedness |
|
|
5.3 |
|
|
|
- |
|
|
(1.4 |
) |
|
|
0.6 |
|
|
4.5 |
|
Less:
Deferred financing costs associated with the term loan |
|
|
(1.8 |
) |
|
|
- |
|
|
- |
|
|
|
0.2 |
|
|
(1.6 |
) |
Totals |
|
$ |
393.5 |
|
|
$ |
243.7 |
|
$ |
(120.1 |
) |
|
$ |
0.8 |
|
$ |
517.9 |
|
|
|
|
|
|
|
|
|
|
|
|
SPX
CORPORATION AND SUBSIDIARIES |
NON-GAAP
RECONCILIATION - ORGANIC REVENUE |
HVAC,
DETECTION & MEASUREMENT AND ENGINEERED SOLUTIONS REPORTABLE
SEGMENTS |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
Three months ended June 27, 2020 |
|
|
|
HVAC |
|
Detection & Measurement |
|
Engineered Solutions |
|
|
|
|
|
|
|
|
|
Net Revenue Growth (Decline) |
|
1.1 |
|
% |
(9.4 |
) |
% |
5.6 |
|
% |
|
|
|
|
|
|
|
|
Exclude:
Foreign Currency |
|
(0.4 |
) |
% |
(0.5 |
) |
% |
(0.3 |
) |
% |
|
|
|
|
|
|
|
|
Exclude:
Acquisitions |
|
10.4 |
|
% |
- |
|
% |
- |
|
% |
|
|
|
|
|
|
|
|
Organic
Revenue Growth (Decline) |
|
(8.9 |
) |
% |
(8.9 |
) |
% |
5.9 |
|
% |
|
|
|
|
|
|
|
|
SPX
CORPORATION AND SUBSIDIARIES |
NON-GAAP
RECONCILIATION - REVENUE AND SEGMENT INCOME |
(Unaudited;
in millions) |
|
|
|
|
|
|
|
|
|
CONSOLIDATED SPX: |
|
Three months ended |
|
Six months ended |
|
|
June 27, 2020 |
|
June 29, 2019 |
|
June 27, 2020 |
|
June 29, 2019 |
Consolidated revenue |
|
$ |
373.2 |
|
|
$ |
372.4 |
|
|
$ |
742.5 |
|
|
$ |
716.0 |
|
|
|
|
|
|
|
|
|
|
Exclude:
"All Other" operating segments(1) |
|
|
2.0 |
|
|
|
0.8 |
|
|
|
6.0 |
|
|
|
(7.1 |
) |
|
|
|
|
|
|
|
|
|
Adjusted
consolidated revenue |
|
$ |
371.2 |
|
|
$ |
371.6 |
|
|
$ |
736.5 |
|
|
$ |
723.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
segment income |
|
$ |
47.6 |
|
|
$ |
41.4 |
|
|
$ |
94.8 |
|
|
$ |
62.2 |
|
|
|
|
|
|
|
|
|
|
Exclude:
"All Other" operating segments(1) |
|
|
(4.2 |
) |
|
|
(10.0 |
) |
|
|
(8.1 |
) |
|
|
(32.6 |
) |
|
|
|
|
|
|
|
|
|
Exclude: One
time acquisition related costs (2) |
|
|
- |
|
|
|
(0.9 |
) |
|
|
(0.1 |
) |
|
|
(2.2 |
) |
|
|
|
|
|
|
|
|
|
Exclude:
Amortization expense (3) |
|
|
(2.4 |
) |
|
|
(2.4 |
) |
|
|
(5.0 |
) |
|
|
(4.0 |
) |
|
|
|
|
|
|
|
|
|
Adjusted
segment income |
|
$ |
54.2 |
|
|
$ |
54.7 |
|
|
$ |
108.0 |
|
|
$ |
101.0 |
|
as a percent
of adjusted revenues (4) |
|
|
14.6 |
% |
|
|
14.7 |
% |
|
|
14.7 |
% |
|
|
14.0 |
% |
|
|
|
|
|
|
|
|
|
HVAC
REPORTABLE SEGMENT: |
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
|
|
|
|
June 27, 2020 |
|
June 29, 2019 |
|
|
|
|
HVAC segment
income |
|
$ |
18.2 |
|
|
$ |
16.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exclude: One
time acquisition related costs (2) |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exclude:
Amortization expense (3) |
|
|
(0.7 |
) |
|
|
(0.1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
HVAC
adjusted segment income |
|
$ |
18.9 |
|
|
$ |
16.8 |
|
|
|
|
|
as a percent
of HVAC segment revenues (4) |
|
|
14.3 |
% |
|
|
12.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
DETECTION & MEASUREMENT REPORTABLE
SEGMENT: |
|
|
|
|
|
|
|
|
Three months ended |
|
|
|
|
|
|
June 27, 2020 |
|
June 29, 2019 |
|
|
|
|
Detection
& Measurement segment income |
|
$ |
16.0 |
|
|
$ |
21.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exclude: One
time acquisition related costs (2) |
|
|
- |
|
|
|
(0.9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Exclude:
Amortization expense (3) |
|
|
(1.7 |
) |
|
|
(2.3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Detection
& Measurement adjusted segment income |
|
$ |
17.7 |
|
|
$ |
24.9 |
|
|
|
|
|
as a percent
of Detection & Measurement segment revenues (4) |
|
|
19.2 |
% |
|
|
24.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Represents the
removal of the financial results of our South Africa and Heat
Transfer businesses. Note: These businesses are reported as an "All
Other" group of operating segments for U.S. GAAP purposes due to
certain wind-down activities that are occurring within these
businesses. |
|
|
|
|
|
|
|
|
|
(2) Represents
one-time acquisition related costs during the six months ended June
27, 2020 related to the HVAC reportable segment and additional
"Cost of products sold" recorded during the three and six months
ended June 29, 2019 related to the step-up of inventory (to fair
value) acquired in connection with the Sabik and Cues
acquisitions. |
|
|
|
|
|
|
|
|
|
(3) Represents
amortization expense associated with acquired intangible
assets. |
|
|
|
|
|
|
|
|
|
(4) See "Results of
Reportable and Other Operating 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 |
|
|
June 27, 2020 |
|
June 29, 2019 |
|
June 27, 2020 |
|
June 29, 2019 |
Operating income |
|
$ |
34.4 |
|
|
$ |
26.3 |
|
|
$ |
67.1 |
|
|
$ |
29.3 |
|
|
|
|
|
|
|
|
|
|
Exclude: |
|
|
|
|
|
|
|
|
Aggregate operating losses of the South Africa and Heat Transfer
businesses (1) |
|
|
(4.6 |
) |
|
|
(10.9 |
) |
|
|
(8.7 |
) |
|
|
(33.5 |
) |
|
|
|
|
|
|
|
|
|
One-time acquisition related costs (2) |
|
|
(0.1 |
) |
|
|
(1.1 |
) |
|
|
(0.3 |
) |
|
|
(4.0 |
) |
|
|
|
|
|
|
|
|
|
Other operating income/expense (3) |
|
|
- |
|
|
|
- |
|
|
|
0.4 |
|
|
|
(1.8 |
) |
|
|
|
|
|
|
|
|
|
Amortization expense (4) |
|
|
(2.4 |
) |
|
|
(2.4 |
) |
|
|
(5.0 |
) |
|
|
(4.0 |
) |
|
|
|
|
|
|
|
|
|
Adjusted
operating income |
|
$ |
41.5 |
|
|
$ |
40.7 |
|
|
$ |
80.7 |
|
|
$ |
72.6 |
|
as a percent of adjusted revenues (5) |
|
|
11.2 |
% |
|
|
11.0 |
% |
|
|
11.0 |
% |
|
|
10.0 |
% |
|
|
|
|
|
|
|
|
|
(1) Represents the
removal of the financial results of these businesses, inclusive of
"special charges" of $0.4 and $0.9 during the three months ended
June 27, 2020 and June 29 2019, respectively, and $0.6 and $0.9
during the six months ended June 27, 2020 and June 29 2019,
respectively. |
|
|
|
|
|
|
|
|
|
(2) Represents
one-time acquisition related costs during the three months ended
June 27, 2020 and June 29, 2019 associated with (i) inventory
step-up of $0.0 and $0.9, respectively, and (ii) integration and
transaction costs of $0.1 and $0.2, respectively, and one-time
acquisition related costs during the six months ended June 27, 2020
and June 29, 2019 associated with (i) inventory step-up of $0.0 and
$2.2, respectively, and (ii) integration and transaction costs of
$0.3 and $1.8, respectively. |
|
|
|
|
|
|
|
|
|
(3) Represents
income/expense associated with revisions to estimates of certain
liabilities retained in connection with the 2016 sale of the dry
cooling business. |
|
|
|
|
|
|
|
|
|
(4) Represents
amortization expense associated with acquired intangible
assets. |
|
|
|
|
|
|
|
|
|
(5) See "Results of
Reportable and Other Operating Segments" for applicable percentages
based on GAAP results. |
|
|
|
|
|
|
|
|
|
SPX
CORPORATION AND SUBSIDIARIES |
NON-GAAP
RECONCILIATION - EARNINGS PER SHARE |
Three Months
Ended June 27, 2020 |
(Unaudited;
in millions, except per share values) |
|
|
|
|
|
|
|
GAAP |
|
Adjustments |
|
Adjusted |
Segment income (1) |
$ |
47.6 |
|
|
$ |
6.6 |
|
|
$ |
54.2 |
|
Corporate expense (2) |
|
(8.5 |
) |
|
|
0.1 |
|
|
|
(8.4 |
) |
Long-term incentive compensation expense |
|
(3.3 |
) |
|
|
- |
|
|
|
(3.3 |
) |
Special charges, net (3) |
|
(1.4 |
) |
|
|
0.4 |
|
|
|
(1.0 |
) |
Operating income |
|
34.4 |
|
|
|
7.1 |
|
|
|
41.5 |
|
|
|
|
|
|
|
Other income, net (4) |
|
5.8 |
|
|
|
(5.1 |
) |
|
|
0.7 |
|
Interest expense, net |
|
(4.7 |
) |
|
|
- |
|
|
|
(4.7 |
) |
Income from continuing operations before income
taxes |
|
35.5 |
|
|
|
2.0 |
|
|
|
37.5 |
|
Income tax provision (5) |
|
(7.1 |
) |
|
|
(1.3 |
) |
|
|
(8.4 |
) |
Income from continuing operations |
|
28.4 |
|
|
|
0.7 |
|
|
|
29.1 |
|
|
|
|
|
|
|
Dilutive
shares outstanding |
|
45.648 |
|
|
|
|
|
45.648 |
|
|
|
|
|
|
|
Earnings per share from continuing operations |
$ |
0.62 |
|
|
|
|
$ |
0.64 |
|
|
|
|
|
|
|
(1) Adjustment
primarily represents the removal of (i) operating losses associated
with the South Africa and Heat Transfer businesses ($4.2) and (ii)
amortization expense associated with acquired intangible assets
($2.4). |
|
(2) Adjustment
represents the removal of acquisition related expenses incurred
during the period. |
|
(3) Adjustment
represents the removal of restructuring charges associated with the
Heat Transfer business. |
|
(4) Adjustment
represents the removal of (i) a gain on an equity security
associated with a fair value adjustment ($5.3) and (ii) non-service
pension and postretirement charges ($0.2). |
|
|
|
|
|
|
(5) Adjustment
represents the tax impact of items (1) through (5) above. |
|
|
|
|
|
|
SPX
CORPORATION AND SUBSIDIARIES |
NON-GAAP
RECONCILIATION - EARNINGS PER SHARE |
Three Months
Ended June 29, 2019 |
(Unaudited;
in millions, except per share values) |
|
|
|
|
|
|
|
GAAP |
|
Adjustments |
|
Adjusted |
Segment income (1) |
$ |
41.4 |
|
|
$ |
13.3 |
|
|
$ |
54.7 |
|
Corporate expense (2) |
|
(10.5 |
) |
|
|
0.2 |
|
|
|
(10.3 |
) |
Long-term incentive compensation expense |
|
(3.3 |
) |
|
|
- |
|
|
|
(3.3 |
) |
Special charges, net (3) |
|
(1.3 |
) |
|
|
0.9 |
|
|
|
(0.4 |
) |
Operating income |
|
26.3 |
|
|
|
14.4 |
|
|
|
40.7 |
|
|
|
|
|
|
|
Other income, net (4) |
|
1.9 |
|
|
|
(0.4 |
) |
|
|
1.5 |
|
Interest expense, net |
|
(4.7 |
) |
|
|
- |
|
|
|
(4.7 |
) |
Income from continuing operations before income
taxes |
|
23.5 |
|
|
|
14.0 |
|
|
|
37.5 |
|
Income tax provision (5) |
|
(4.1 |
) |
|
|
(3.1 |
) |
|
|
(7.2 |
) |
Income from continuing operations |
|
19.4 |
|
|
|
10.9 |
|
|
|
30.3 |
|
|
|
|
|
|
|
Dilutive
shares outstanding |
|
44.892 |
|
|
|
|
|
44.892 |
|
|
|
|
|
|
|
Earnings per share from continuing operations |
$ |
0.43 |
|
|
|
|
$ |
0.67 |
|
|
|
|
|
|
|
(1) Adjustment
represents the removal of (i) operating losses associated with the
South Africa and Heat Transfer businesses ($10.0), (ii) inventory
step-up charges related to the Cues and Sabik acquisitions ($0.9),
and (iii) amortization expense associated with acquired intangible
assets ($2.4). |
|
(2) Adjustment
represents the removal of acquisition related expenses incurred
during the period. |
|
(3) Adjustment
represents the removal of restructuring charges associated with the
South Africa and Heat Transfer businesses. |
|
(4) Adjustment
represents the removal of (i) a gain on an equity security
associated with a fair value adjustment ($1.6), (ii) non-service
pension and postretirement charges ($1.0) and (iii) removal of
foreign currency losses associated with the South African projects
($0.2). |
|
|
|
|
|
|
(5) Adjustment
represents the tax impact of items (1) through (4) above. |
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