(State or other jurisdiction | (Commission | (IRS Employer | ||||||||||||
of incorporation) | File Number) | Identification No.) |
Title of each class | Trading Symbols(s) | Name of each exchange on which registered | ||||||
Exhibit Number | Description | |||||||
99.1 | ||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SPX CORPORATION | ||||||||
(Registrant) | ||||||||
Date: August 5, 2021 | By: | /s/ James E. Harris | ||||||
James E. Harris | ||||||||
Vice President, Chief Financial Officer and | ||||||||
Treasurer |
($ millions) | Q2 2021 | Q2 2020 | 2021 YTD | 2020 YTD | ||||||||||||||||||||||
Revenue | $ | 296.7 | $ | 258.0 | $ | 584.6 | $ | 514.8 | ||||||||||||||||||
Operating Income | 12.9 | 17.5 | 32.9 | 33.6 | ||||||||||||||||||||||
Segment Income | 32.9 | 31.3 | 70.6 | 62.9 |
($ millions) | Q2 2021 | Q2 2020 | 2021 YTD | 2020 YTD | ||||||||||||||||||||||
Adjusted Revenue* | $ | 296.6 | $ | 257.3 | $ | 583.8 | $ | 512.0 | ||||||||||||||||||
Adjusted Operating Income* | 25.5 | 24.3 | 56.0 | 47.3 | ||||||||||||||||||||||
Adjusted Segment Income* | 44.2 | 38.0 | 91.2 | 76.6 |
Revenue | Segment Income Margin % | |||||||||||||
HVAC | ~$770-780 million | ~14.5% | ||||||||||||
Detection & Measurement | ~$465-475 million (prior ~$460-470 million) | ~20.5% | ||||||||||||
Total SPX Adjusted | ~$1.25 billion | ~17.0% |
SPX CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||||
(Unaudited; in millions, except per share amounts) | |||||||||||||||||||||||
Three months ended | Six months ended | ||||||||||||||||||||||
July 3, 2021 | June 27, 2020 | July 3, 2021 | June 27, 2020 | ||||||||||||||||||||
Revenues | $ | 296.7 | $ | 258.0 | $ | 584.6 | $ | 514.8 | |||||||||||||||
Costs and expenses: | |||||||||||||||||||||||
Cost of products sold | 194.7 | 169.7 | 378.6 | 336.8 | |||||||||||||||||||
Selling, general and administrative | 79.2 | 67.4 | 158.5 | 138.5 | |||||||||||||||||||
Intangible amortization | 6.5 | 2.4 | 10.5 | 5.0 | |||||||||||||||||||
Special charges, net | 0.7 | 1.0 | 1.4 | 1.3 | |||||||||||||||||||
Other operating (income) expense | 2.7 | — | 2.7 | (0.4) | |||||||||||||||||||
Operating income | 12.9 | 17.5 | 32.9 | 33.6 | |||||||||||||||||||
Other income, net | 7.1 | 5.4 | 14.3 | 5.8 | |||||||||||||||||||
Interest expense | (3.4) | (4.8) | (7.6) | (9.5) | |||||||||||||||||||
Interest income | 0.1 | 0.1 | 0.2 | 0.1 | |||||||||||||||||||
Income from continuing operations before income taxes | 16.7 | 18.2 | 39.8 | 30.0 | |||||||||||||||||||
Income tax provision | (2.0) | (3.0) | (6.1) | (5.3) | |||||||||||||||||||
Income from continuing operations | 14.7 | 15.2 | 33.7 | 24.7 | |||||||||||||||||||
Income from discontinued operations, net of tax | 42.7 | 13.2 | 51.3 | 26.4 | |||||||||||||||||||
Gain (loss) on disposition of discontinued operations, net of tax | 4.1 | (1.3) | 3.3 | (1.3) | |||||||||||||||||||
Income from discontinued operations, net of tax | 46.8 | 11.9 | 54.6 | 25.1 | |||||||||||||||||||
Net income | $ | 61.5 | $ | 27.1 | $ | 88.3 | $ | 49.8 | |||||||||||||||
Basic income per share of common stock: | |||||||||||||||||||||||
Income from continuing operations | $ | 0.32 | $ | 0.34 | $ | 0.75 | $ | 0.56 | |||||||||||||||
Income from discontinued operations | 1.04 | 0.27 | 1.20 | 0.56 | |||||||||||||||||||
Net income per share | $ | 1.36 | $ | 0.61 | $ | 1.95 | $ | 1.12 | |||||||||||||||
Weighted-average number of common shares outstanding — basic | 45.271 | 44.590 | 45.201 | 44.452 | |||||||||||||||||||
Diluted income per share of common stock: | |||||||||||||||||||||||
Income from continuing operations | $ | 0.32 | $ | 0.33 | $ | 0.73 | $ | 0.54 | |||||||||||||||
Income from discontinued operations | 1.00 | 0.26 | 1.17 | 0.55 | |||||||||||||||||||
Net income per share | $ | 1.32 | $ | 0.59 | $ | 1.90 | $ | 1.09 | |||||||||||||||
Weighted-average number of common shares outstanding — diluted | 46.545 | 45.648 | 46.408 | 45.620 |
SPX CORPORATION AND SUBSIDIARIES | |||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||
(Unaudited; in millions) | |||||||||||
July 3, 2021 | December 31, 2020 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and equivalents | $ | 69.1 | $ | 68.3 | |||||||
Accounts receivable, net | 212.5 | 221.0 | |||||||||
Contract assets | 25.0 | 32.5 | |||||||||
Inventories, net | 157.7 | 143.1 | |||||||||
Other current assets (includes income taxes receivable of $30.1 and $27.3 at July 3, 2021 and December 31, 2020, respectively) | 104.2 | 96.1 | |||||||||
Assets of discontinued operations | 332.9 | 121.6 | |||||||||
Total current assets | 901.4 | 682.6 | |||||||||
Property, plant and equipment: | |||||||||||
Land | 14.0 | 12.9 | |||||||||
Buildings and leasehold improvements | 67.3 | 64.9 | |||||||||
Machinery and equipment | 227.7 | 215.6 | |||||||||
309.0 | 293.4 | ||||||||||
Accumulated depreciation | (196.0) | (183.4) | |||||||||
Property, plant and equipment, net | 113.0 | 110.0 | |||||||||
Goodwill | 409.2 | 368.6 | |||||||||
Intangibles, net | 325.8 | 305.0 | |||||||||
Other assets | 609.4 | 609.8 | |||||||||
Deferred income taxes | 51.7 | 23.9 | |||||||||
Assets of discontinued operations | — | 219.1 | |||||||||
TOTAL ASSETS | $ | 2,410.5 | $ | 2,319.0 | |||||||
LIABILITIES AND EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 86.8 | $ | 104.6 | |||||||
Contract liabilities | 49.5 | 46.3 | |||||||||
Accrued expenses | 230.5 | 209.4 | |||||||||
Income taxes payable | 2.3 | 0.4 | |||||||||
Short-term debt | 168.3 | 101.2 | |||||||||
Current maturities of long-term debt | 10.4 | 7.2 | |||||||||
Liabilities of discontinued operations | 159.8 | 115.8 | |||||||||
Total current liabilities | 707.6 | 584.9 | |||||||||
Long-term debt | 238.0 | 304.0 | |||||||||
Deferred and other income taxes | 19.1 | 23.5 | |||||||||
Other long-term liabilities | 717.6 | 746.7 | |||||||||
Liabilities of discontinued operations | — | 30.7 | |||||||||
Total long-term liabilities | 974.7 | 1,104.9 | |||||||||
Equity: | |||||||||||
Common stock | 0.5 | 0.5 | |||||||||
Paid-in capital | 1,321.2 | 1,319.9 | |||||||||
Retained deficit | (399.8) | (488.1) | |||||||||
Accumulated other comprehensive income | 250.6 | 248.5 | |||||||||
Common stock in treasury | (444.3) | (451.6) | |||||||||
Total equity | 728.2 | 629.2 | |||||||||
TOTAL LIABILITIES AND EQUITY | $ | 2,410.5 | $ | 2,319.0 | |||||||
SPX CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||||||||||||||
RESULTS OF REPORTABLE SEGMENTS AND OTHER OPERATING SEGMENT | ||||||||||||||||||||||||||||||||||||||||||||||||||
(Unaudited; in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended | Six months ended | |||||||||||||||||||||||||||||||||||||||||||||||||
July 3, 2021 | June 27, 2020 | Δ | %/bps | July 3, 2021 | June 27, 2020 | Δ | %/bps | |||||||||||||||||||||||||||||||||||||||||||
HVAC reportable segment | ||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | $ | 185.4 | $ | 165.2 | $ | 20.2 | 12.2% | $ | 361.0 | $ | 328.0 | $ | 33.0 | 10.1% | ||||||||||||||||||||||||||||||||||||
Gross profit | 55.8 | 51.1 | 4.7 | 109.4 | 99.2 | 10.2 | ||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expense | 29.7 | 30.8 | (1.1) | 60.3 | 60.4 | (0.1) | ||||||||||||||||||||||||||||||||||||||||||||
Intangible amortization expense | 0.7 | 0.7 | — | 1.4 | 1.5 | (0.1) | ||||||||||||||||||||||||||||||||||||||||||||
Income | $ | 25.4 | $ | 19.6 | $ | 5.8 | 29.6% | $ | 47.7 | $ | 37.3 | $ | 10.4 | 27.9% | ||||||||||||||||||||||||||||||||||||
as a percent of revenues | 13.7 | % | 11.9 | % | 180 bps | 13.2 | % | 11.4 | % | 180 bps | ||||||||||||||||||||||||||||||||||||||||
Detection & Measurement reportable segment | ||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | $ | 111.2 | $ | 92.1 | $ | 19.1 | 20.7% | $ | 222.8 | $ | 184.0 | $ | 38.8 | 21.1% | ||||||||||||||||||||||||||||||||||||
Gross profit | 46.0 | 37.8 | 8.2 | 96.7 | 79.7 | 17.0 | ||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expense | 28.8 | 20.1 | 8.7 | 56.2 | 42.0 | 14.2 | ||||||||||||||||||||||||||||||||||||||||||||
Intangible amortization expense | 5.8 | 1.7 | 4.1 | 9.1 | 3.5 | 5.6 | ||||||||||||||||||||||||||||||||||||||||||||
Income | $ | 11.4 | $ | 16.0 | $ | (4.6) | (28.8)% | $ | 31.4 | $ | 34.2 | $ | (2.8) | (8.2)% | ||||||||||||||||||||||||||||||||||||
as a percent of revenues | 10.3 | % | 17.4 | % | -710 bps | 14.1 | % | 18.6 | % | -450 bps | ||||||||||||||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | $ | 0.1 | $ | 0.7 | $ | (0.6) | (85.7)% | $ | 0.8 | $ | 2.8 | $ | (2.0) | (71.4)% | ||||||||||||||||||||||||||||||||||||
Gross profit (loss) | 0.2 | (0.6) | 0.8 | (0.1) | (0.9) | 0.8 | ||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expense | 4.1 | 3.7 | 0.4 | 8.4 | 7.7 | 0.7 | ||||||||||||||||||||||||||||||||||||||||||||
Loss | $ | (3.9) | $ | (4.3) | $ | 0.4 | (9.3)% | $ | (8.5) | $ | (8.6) | $ | 0.1 | (1.2)% | ||||||||||||||||||||||||||||||||||||
Consolidated Revenues | $ | 296.7 | $ | 258.0 | $ | 38.7 | 15.0% | $ | 584.6 | $ | 514.8 | $ | 69.8 | 13.6% | ||||||||||||||||||||||||||||||||||||
Consolidated Segment Income | 32.9 | 31.3 | 1.6 | 5.1% | 70.6 | 62.9 | 7.7 | 12.2% | ||||||||||||||||||||||||||||||||||||||||||
as a percent of revenues | 11.1 | % | 12.1 | % | -100 bps | 12.1 | % | 12.2 | % | -10 bps | ||||||||||||||||||||||||||||||||||||||||
Total segment income | $ | 32.9 | $ | 31.3 | $ | 1.6 | $ | 70.6 | $ | 62.9 | $ | 7.7 | ||||||||||||||||||||||||||||||||||||||
Corporate expense | 13.3 | 9.7 | 3.6 | 27.5 | 22.0 | 5.5 | ||||||||||||||||||||||||||||||||||||||||||||
Long-term incentive compensation expense | 3.3 | 3.1 | 0.2 | 6.1 | 6.4 | (0.3) | ||||||||||||||||||||||||||||||||||||||||||||
Special charges, net | 0.7 | 1.0 | (0.3) | 1.4 | 1.3 | 0.1 | ||||||||||||||||||||||||||||||||||||||||||||
Other operating (income) expense | 2.7 | — | 2.7 | 2.7 | (0.4) | 3.1 | ||||||||||||||||||||||||||||||||||||||||||||
Consolidated operating income | $ | 12.9 | $ | 17.5 | $ | (4.6) | (26.3)% | $ | 32.9 | $ | 33.6 | $ | (0.7) | (2.1)% | ||||||||||||||||||||||||||||||||||||
as a percent of revenues | 4.3 | % | 6.8 | % | -250 bps | 5.6 | % | 6.5 | % | -90 bps |
SPX CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||||||||||||
(Unaudited; in millions) | ||||||||||||||||||||||||||
Three months ended | Six months ended | |||||||||||||||||||||||||
July 3, 2021 | June 27, 2020 | July 3, 2021 | June 27, 2020 | |||||||||||||||||||||||
Cash flows from (used in) operating activities: | ||||||||||||||||||||||||||
Net income | $ | 61.5 | $ | 27.1 | $ | 88.3 | $ | 49.8 | ||||||||||||||||||
Less: Income from discontinued operations, net of tax | 46.8 | 11.9 | 54.6 | 25.1 | ||||||||||||||||||||||
Income from continuing operations | 14.7 | 15.2 | 33.7 | 24.7 | ||||||||||||||||||||||
Adjustments to reconcile income from continuing operations to net cash from (used in) operating activities: | ||||||||||||||||||||||||||
Special charges, net | 0.7 | 1.0 | 1.4 | 1.3 | ||||||||||||||||||||||
Gain on change in fair value of equity security | (2.2) | (5.3) | (7.4) | (5.3) | ||||||||||||||||||||||
Deferred and other income taxes | (6.0) | 7.1 | 2.3 | 11.0 | ||||||||||||||||||||||
Depreciation and amortization | 11.3 | 7.0 | 20.1 | 13.8 | ||||||||||||||||||||||
Pension and other employee benefits | 1.3 | 1.4 | 3.0 | 3.6 | ||||||||||||||||||||||
Long-term incentive compensation | 3.3 | 3.1 | 6.1 | 6.4 | ||||||||||||||||||||||
Other, net | 1.4 | 1.1 | 3.2 | 1.8 | ||||||||||||||||||||||
Changes in operating assets and liabilities, net of effects from acquisitions: | ||||||||||||||||||||||||||
Accounts receivable and other assets | (9.8) | 23.0 | 15.6 | 52.2 | ||||||||||||||||||||||
Inventories | 0.9 | (6.1) | (6.0) | (27.2) | ||||||||||||||||||||||
Accounts payable, accrued expenses and other | (9.2) | (36.8) | (31.1) | (90.4) | ||||||||||||||||||||||
Cash spending on restructuring actions | (1.5) | (1.3) | (2.0) | (1.8) | ||||||||||||||||||||||
Net cash from (used in) continuing operations | 4.9 | 9.4 | 38.9 | (9.9) | ||||||||||||||||||||||
Net cash from discontinued operations | 13.8 | 17.3 | 40.0 | 36.2 | ||||||||||||||||||||||
Net cash from operating activities | 18.7 | 26.7 | 78.9 | 26.3 | ||||||||||||||||||||||
Cash flows from (used in) investing activities: | ||||||||||||||||||||||||||
Proceeds from company-owned life insurance policies, net | 0.4 | — | 3.9 | 1.1 | ||||||||||||||||||||||
Business acquisitions, net of cash acquired | (81.9) | — | (81.9) | — | ||||||||||||||||||||||
Capital expenditures | (2.0) | (5.1) | (4.2) | (8.3) | ||||||||||||||||||||||
Net cash used in continuing operations | (83.5) | (5.1) | (82.2) | (7.2) | ||||||||||||||||||||||
Net cash used in discontinued operations | (0.8) | (0.7) | (1.2) | (1.1) | ||||||||||||||||||||||
Net cash used in investing activities | (84.3) | (5.8) | (83.4) | (8.3) | ||||||||||||||||||||||
Cash flows from (used in) financing activities: | ||||||||||||||||||||||||||
Borrowings under senior credit facilities | 48.0 | — | 102.0 | 178.7 | ||||||||||||||||||||||
Repayments under senior credit facilities | (13.3) | — | (94.9) | (88.7) | ||||||||||||||||||||||
Borrowings under trade receivables financing arrangement | 78.0 | 10.0 | 132.0 | 65.0 | ||||||||||||||||||||||
Repayments under trade receivables financing arrangement | (86.0) | (3.0) | (134.0) | (30.0) | ||||||||||||||||||||||
Net repayments under other financing arrangements | (0.2) | (0.7) | — | (1.4) | ||||||||||||||||||||||
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 | (4.2) | (2.3) | ||||||||||||||||||||||
Net cash from continuing operations | 26.5 | 6.8 | 0.9 | 119.8 | ||||||||||||||||||||||
Net cash used in discontinued operations | — | — | — | — | ||||||||||||||||||||||
Net cash from financing activities | 26.5 | 6.8 | 0.9 | 119.8 | ||||||||||||||||||||||
Change in cash and equivalents due to changes in foreign currency exchange rates | 1.3 | (0.6) | 4.4 | (2.3) | ||||||||||||||||||||||
Net change in cash and equivalents | (37.8) | 27.1 | 0.8 | 135.5 | ||||||||||||||||||||||
Consolidated cash and equivalents, beginning of period | 106.9 | 163.1 | 68.3 | 54.7 | ||||||||||||||||||||||
Consolidated cash and equivalents, end of period | $ | 69.1 | $ | 190.2 | $ | 69.1 | $ | 190.2 |
SPX CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||
CASH AND DEBT RECONCILIATION | ||||||||||||||||||||||||||||||||
(Unaudited; in millions) | ||||||||||||||||||||||||||||||||
Six months ended | ||||||||||||||||||||||||||||||||
July 3, 2021 | ||||||||||||||||||||||||||||||||
Beginning cash and equivalents | $ | 68.3 | ||||||||||||||||||||||||||||||
Cash from continuing operations | 38.9 | |||||||||||||||||||||||||||||||
Capital expenditures | (4.2) | |||||||||||||||||||||||||||||||
Proceeds from company-owned life insurance policies, net | 3.9 | |||||||||||||||||||||||||||||||
Business acquisitions, net of cash acquired | (81.9) | |||||||||||||||||||||||||||||||
Borrowings under senior credit facilities | 102.0 | |||||||||||||||||||||||||||||||
Repayments under senior credit facilities | (94.9) | |||||||||||||||||||||||||||||||
Net repayments under other financing arrangements | (2.0) | |||||||||||||||||||||||||||||||
Minimum withholdings paid on behalf of employees for net share settlements, net of proceeds from the exercise of employee stock options | (4.2) | |||||||||||||||||||||||||||||||
Cash from discontinued operations | 38.8 | |||||||||||||||||||||||||||||||
Change in cash due to changes in foreign currency exchange rates | 4.4 | |||||||||||||||||||||||||||||||
Ending cash and equivalents | $ | 69.1 | ||||||||||||||||||||||||||||||
Debt at | Debt at | |||||||||||||||||||||||||||||||
December 31, 2020 | Borrowings | Repayments | Other | July 3, 2021 | ||||||||||||||||||||||||||||
Revolving loans | $ | 129.8 | $ | 102.0 | $ | (91.8) | $ | — | $ | 140.0 | ||||||||||||||||||||||
Term loan | 250.0 | — | (3.1) | — | 246.9 | |||||||||||||||||||||||||||
Trade receivables financing arrangement | 28.0 | 132.0 | (134.0) | — | 26.0 | |||||||||||||||||||||||||||
Other indebtedness | 6.0 | 0.5 | (0.5) | (1.0) | 5.0 | |||||||||||||||||||||||||||
Less: Deferred financing costs associated with the term loan | (1.4) | — | — | 0.2 | (1.2) | |||||||||||||||||||||||||||
Totals | $ | 412.4 | $ | 234.5 | $ | (229.4) | $ | (0.8) | $ | 416.7 |
SPX CORPORATION AND SUBSIDIARIES | |||||||||||||||||
NON-GAAP RECONCILIATION - ORGANIC REVENUE | |||||||||||||||||
HVAC AND DETECTION & MEASUREMENT REPORTABLE SEGMENTS | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Three months ended July 3, 2021 | |||||||||||||||||
HVAC | Detection & Measurement | ||||||||||||||||
Net Revenue Growth | 12.2 | % | 20.7 | % | |||||||||||||
Exclude: Foreign Currency | 0.8 | % | 1.9 | % | |||||||||||||
Exclude: Acquisitions | — | % | 17.2 | % | |||||||||||||
Exclude: Settlement of legacy dry cooling contract | (2.7) | % | — | % | |||||||||||||
Organic Revenue Growth | 14.1 | % | 1.6 | % |
SPX CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||||||
NON-GAAP RECONCILIATION - REVENUE AND SEGMENT INCOME | ||||||||||||||||||||||||||
(Unaudited; in millions) | ||||||||||||||||||||||||||
CONSOLIDATED SPX: | Three months ended | Six months ended | ||||||||||||||||||||||||
July 3, 2021 | June 27, 2020 | July 3, 2021 | June 27, 2020 | |||||||||||||||||||||||
Consolidated revenue | $ | 296.7 | $ | 258.0 | $ | 584.6 | $ | 514.8 | ||||||||||||||||||
Exclude: "Other" operating segment (1) | 0.1 | 0.7 | 0.8 | 2.8 | ||||||||||||||||||||||
Adjusted consolidated revenue | $ | 296.6 | $ | 257.3 | $ | 583.8 | $ | 512.0 | ||||||||||||||||||
Total segment income | $ | 32.9 | $ | 31.3 | $ | 70.6 | $ | 62.9 | ||||||||||||||||||
Exclude: "Other" operating segment (1) | (3.9) | (4.3) | (8.5) | (8.6) | ||||||||||||||||||||||
Exclude: Acquisition related costs (2) | (0.9) | — | (1.6) | (0.1) | ||||||||||||||||||||||
Exclude: Amortization expense (3) | (6.5) | (2.4) | (10.5) | (5.0) | ||||||||||||||||||||||
Adjusted segment income | $ | 44.2 | $ | 38.0 | $ | 91.2 | $ | 76.6 | ||||||||||||||||||
as a percent of adjusted revenues (4) | 14.9 | % | 14.8 | % | 15.6 | % | 15.0 | % | ||||||||||||||||||
HVAC REPORTABLE SEGMENT: | ||||||||||||||||||||||||||
Three months ended | ||||||||||||||||||||||||||
July 3, 2021 | June 27, 2020 | |||||||||||||||||||||||||
HVAC segment income | $ | 25.4 | $ | 19.6 | ||||||||||||||||||||||
Exclude: Acquisition related costs (2) | — | — | ||||||||||||||||||||||||
Exclude: Amortization expense (3) | (0.7) | (0.7) | ||||||||||||||||||||||||
HVAC adjusted segment income | $ | 26.1 | $ | 20.3 | ||||||||||||||||||||||
as a percent of HVAC segment revenues (4) | 14.1 | % | 12.3 | % | ||||||||||||||||||||||
DETECTION & MEASUREMENT REPORTABLE SEGMENT: | ||||||||||||||||||||||||||
Three months ended | ||||||||||||||||||||||||||
July 3, 2021 | June 27, 2020 | |||||||||||||||||||||||||
Detection & Measurement segment income | $ | 11.4 | $ | 16.0 | ||||||||||||||||||||||
Exclude: Acquisition related costs (2) | (0.9) | — | ||||||||||||||||||||||||
Exclude: Amortization expense (3) | (5.8) | (1.7) | ||||||||||||||||||||||||
Detection & Measurement adjusted segment income | $ | 18.1 | $ | 17.7 | ||||||||||||||||||||||
as a percent of Detection & Measurement segment revenues (4) | 16.3 | % | 19.2 | % | ||||||||||||||||||||||
(1) Represents the removal of the financial results of our South Africa business. Note: This business is being reported as an "Other" operating segment for U.S. GAAP purposes due to wind-down activities that are occurring within this business. | ||||||||||||||||||||||||||
(2) Represents additional "Cost of products sold" recorded during the three months ended July 3, 2021 related to the step-up of inventory (to fair value) acquired in connection with the Sealite acquisition and the Sealite and Sensors & Software acquisitions during the six months ended July 3, 2021 and acquisition related costs for the HVAC reportable segment during the six months ended June 27, 2020. | ||||||||||||||||||||||||||
(3) Represents amortization expense associated with acquired intangible assets. | ||||||||||||||||||||||||||
(4) See "Results of Reportable Segments and Other Operating Segment" 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 3, 2021 | June 27, 2020 | July 3, 2021 | June 27, 2020 | |||||||||||||||||||||||
Operating income | $ | 12.9 | $ | 17.5 | $ | 32.9 | $ | 33.6 | ||||||||||||||||||
Exclude: | ||||||||||||||||||||||||||
Aggregate operating losses of the South Africa business (1) | (4.0) | (4.3) | (9.1) | (8.8) | ||||||||||||||||||||||
Acquisition related costs (2) | (2.1) | (0.1) | (3.5) | (0.3) | ||||||||||||||||||||||
Other operating income (3) | — | — | — | 0.4 | ||||||||||||||||||||||
Amortization expense (4) | (6.5) | (2.4) | (10.5) | (5.0) | ||||||||||||||||||||||
Adjusted operating income | $ | 25.5 | $ | 24.3 | $ | 56.0 | $ | 47.3 | ||||||||||||||||||
as a percent of adjusted revenues (5) | 8.6 | % | 9.4 | % | 9.6 | % | 9.2 | % | ||||||||||||||||||
(1) Represents the removal of the financial results of our South Africa business, inclusive of "special charges" of $0.1 and $0.0 during the three months ended July 3, 2021 and June 27, 2020, respectively, and $0.6 and $0.2 during the six months ended July 3, 2021 and June 27, 2020, respectively. | ||||||||||||||||||||||||||
(2) Represents acquisition related costs during the three months ended July 3, 2021 and June 27, 2020 associated with (i) inventory step-up of $0.9 and $0.0, respectively and (ii) integration and transaction costs of $1.2 and $0.1, respectively, and acquisition related costs during the six months ended July 3, 2021 and June 27, 2020 associated with (i) inventory step-up of $1.6 and $0.0 and (ii) integration and transaction costs of $1.9 and $0.3, respectively. | ||||||||||||||||||||||||||
(3) For the six months ended June 27, 2020, includes a gain of $0.4 related to 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 Segments and Other Operating Segment" for applicable percentages based on GAAP results. | ||||||||||||||||||||||||||
SPX CORPORATION AND SUBSIDIARIES | |||||||||||||||||
NON-GAAP RECONCILIATION - EARNINGS PER SHARE | |||||||||||||||||
Three Months Ended July 3, 2021 | |||||||||||||||||
(Unaudited; in millions, except per share values) | |||||||||||||||||
GAAP | Adjustments | Adjusted | |||||||||||||||
Segment income (1) | $ | 32.9 | $ | 11.3 | $ | 44.2 | |||||||||||
Corporate expense (2) | (13.3) | 1.2 | (12.1) | ||||||||||||||
Long-term incentive compensation expense | (3.3) | — | (3.3) | ||||||||||||||
Special charges, net (3) | (0.7) | 0.1 | (0.6) | ||||||||||||||
Other operating expense | (2.7) | — | (2.7) | ||||||||||||||
Operating income | 12.9 | 12.6 | 25.5 | ||||||||||||||
Other income, net (4) | 7.1 | (3.2) | 3.9 | ||||||||||||||
Interest expense, net (5) | (3.3) | 0.2 | (3.1) | ||||||||||||||
Income from continuing operations before income taxes | 16.7 | 9.6 | 26.3 | ||||||||||||||
Income tax provision (6) | (2.0) | (1.5) | (3.5) | ||||||||||||||
Income from continuing operations | 14.7 | 8.1 | 22.8 | ||||||||||||||
Diluted shares outstanding | 46.545 | 46.545 | |||||||||||||||
Earnings per share from continuing operations | $ | 0.32 | $ | 0.49 | |||||||||||||
(1) Adjustment represents the removal of (i) operating losses associated with the South Africa business ($3.9), (ii) amortization expense associated with acquired intangible assets ($6.5) and (iii) inventory step-up charges related to the Sealite acquisition of ($0.9). | |||||||||||||||||
(2) Adjustment represents the removal of acquisition related expenses incurred during the period. | |||||||||||||||||
(3) Adjustment represents removal of restructuring charges associated with the South Africa business. | |||||||||||||||||
(4) Adjustment represents the removal of (i) a gain on an equity security associated with a fair value adjustment ($2.2), (ii) non-service pension and postretirement income ($0.4), and (iii) foreign currency gains associated with the South African business ($0.6). | |||||||||||||||||
(5) Adjustment represents the write-off of deferred finance costs in connection with a reduction of our credit facilities primarily used to support our South Africa business. | |||||||||||||||||
(6) Adjustment primarily represents the tax impact of items (1) through (5) above. |
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) | $ | 31.3 | $ | 6.7 | $ | 38.0 | |||||||||||
Corporate expense (2) | (9.7) | 0.1 | (9.6) | ||||||||||||||
Long-term incentive compensation expense | (3.1) | — | (3.1) | ||||||||||||||
Special charges, net | (1.0) | — | (1.0) | ||||||||||||||
Operating income | 17.5 | 6.8 | 24.3 | ||||||||||||||
Other income, net (3) | 5.4 | (5.1) | 0.3 | ||||||||||||||
Interest expense, net | (4.7) | — | (4.7) | ||||||||||||||
Income from continuing operations before income taxes | 18.2 | 1.7 | 19.9 | ||||||||||||||
Income tax provision (4) | (3.0) | (1.3) | (4.3) | ||||||||||||||
Income from continuing operations | 15.2 | 0.4 | 15.6 | ||||||||||||||
Diluted shares outstanding | 45.648 | 45.648 | |||||||||||||||
Earnings per share from continuing operations | $ | 0.33 | $ | 0.34 | |||||||||||||
(1) Adjustment represents the removal of (i) operating losses associated with the South Africa business ($4.3) 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 (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). | |||||||||||||||||
(4) Adjustment primarily represents the tax impact of items (1) through (3) above and the removal of certain discrete income tax benefits. |
Cover Page |
Aug. 05, 2021 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | Aug. 05, 2021 |
Entity Registrant Name | SPX CORP |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 1-6948 |
Entity Tax Identification Number | 38-1016240 |
Entity Address, Address Line One | 6325 Ardrey Kell Road |
Entity Address, Address Line Two | Suite 400 |
Entity Address, City or Town | Charlotte |
Entity Address, State or Province | NC |
Entity Address, Postal Zip Code | 28277 |
City Area Code | 980 |
Local Phone Number | 474-3700 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common Stock, par value $0.01 |
Trading Symbol | SPXC |
Security Exchange Name | NYSE |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0000088205 |
Amendment Flag | false |
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