(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 4, 2022 | By: | /s/ James E. Harris | ||||||
James E. Harris | ||||||||
Vice President, Chief Financial Officer and | ||||||||
Treasurer |
($ millions) | Q2 2022 | Q2 2021 | 2022 YTD | 2021 YTD | ||||||||||||||||||||||
Revenue | $ | 354.0 | $ | 296.6 | $ | 661.1 | $ | 583.8 | ||||||||||||||||||
Segment Income | 48.1 | 37.3 | 78.3 | 79.6 | ||||||||||||||||||||||
Operating Income | 27.2 | 17.1 | 38.6 | 42.1 | ||||||||||||||||||||||
Adjusted Segment Income* | 56.1 | 44.7 | 95.7 | 91.7 | ||||||||||||||||||||||
Adjusted Operating Income* | 42.2 | 28.7 | 67.3 | 59.3 | ||||||||||||||||||||||
Revenue | Segment Income Margin % | |||||||||||||
HVAC | $885-$910 million ($855-$890 million prior) | ~14.0% (14.0%-14.5% prior) | ||||||||||||
Detection & Measurement | $520-$540 million ($500-$535 million prior) | 19.0%-21.0% (19.0%-21.0% prior) | ||||||||||||
Total SPX | $1.41-$1.45 billion ($1.36-$1.43 billion prior) | 16.0%-16.5% (16.0%-17.0% prior) |
SPX CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||||
(Unaudited; in millions, except per share amounts) | |||||||||||||||||||||||
Three months ended | Six months ended | ||||||||||||||||||||||
July 2, 2022 | July 3, 2021 | July 2, 2022 | July 3, 2021 | ||||||||||||||||||||
Revenues | $ | 354.0 | $ | 296.6 | $ | 661.1 | $ | 583.8 | |||||||||||||||
Costs and expenses: | |||||||||||||||||||||||
Cost of products sold | 229.4 | 194.3 | 432.5 | 377.1 | |||||||||||||||||||
Selling, general and administrative | 88.3 | 75.4 | 172.5 | 150.6 | |||||||||||||||||||
Intangible amortization | 7.1 | 6.5 | 16.4 | 10.5 | |||||||||||||||||||
Special charges, net | 0.1 | 0.6 | 0.1 | 0.8 | |||||||||||||||||||
Other operating expense, net | 1.9 | 2.7 | 1.0 | 2.7 | |||||||||||||||||||
Operating income | 27.2 | 17.1 | 38.6 | 42.1 | |||||||||||||||||||
Other income (expense), net | (1.7) | 6.4 | 4.8 | 13.8 | |||||||||||||||||||
Interest expense | (2.3) | (3.4) | (4.7) | (7.6) | |||||||||||||||||||
Interest income | 0.3 | — | 0.4 | 0.1 | |||||||||||||||||||
Income from continuing operations before income taxes | 23.5 | 20.1 | 39.1 | 48.4 | |||||||||||||||||||
Income tax provision | (4.4) | (2.4) | (7.0) | (7.7) | |||||||||||||||||||
Income from continuing operations | 19.1 | 17.7 | 32.1 | 40.7 | |||||||||||||||||||
Income from discontinued operations, net of tax | — | 40.1 | — | 44.7 | |||||||||||||||||||
Income (loss) on disposition of discontinued operations, net of tax | (6.1) | 4.1 | (7.7) | 3.3 | |||||||||||||||||||
Income (loss) from discontinued operations, net of tax | (6.1) | 44.2 | (7.7) | 48.0 | |||||||||||||||||||
Net income | $ | 13.0 | $ | 61.9 | $ | 24.4 | $ | 88.7 | |||||||||||||||
Basic income per share of common stock: | |||||||||||||||||||||||
Income from continuing operations | $ | 0.42 | $ | 0.39 | $ | 0.71 | $ | 0.90 | |||||||||||||||
Income (loss) from discontinued operations | (0.13) | 0.98 | (0.17) | 1.06 | |||||||||||||||||||
Net income per share | $ | 0.29 | $ | 1.37 | $ | 0.54 | $ | 1.96 | |||||||||||||||
Weighted-average number of common shares outstanding — basic | 45.444 | 45.271 | 45.500 | 45.201 | |||||||||||||||||||
Diluted income per share of common stock: | |||||||||||||||||||||||
Income from continuing operations | $ | 0.41 | $ | 0.38 | $ | 0.69 | $ | 0.88 | |||||||||||||||
Income (loss) from discontinued operations | (0.13) | 0.95 | (0.16) | 1.03 | |||||||||||||||||||
Net income per share | $ | 0.28 | $ | 1.33 | $ | 0.53 | $ | 1.91 | |||||||||||||||
Weighted-average number of common shares outstanding — diluted | 46.289 | 46.545 | 46.370 | 46.408 |
SPX CORPORATION AND SUBSIDIARIES | |||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||
(Unaudited; in millions) | |||||||||||
July 2, 2022 | December 31, 2021 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and equivalents | $ | 189.8 | $ | 388.2 | |||||||
Accounts receivable, net | 240.5 | 223.4 | |||||||||
Contract assets | 33.9 | 28.9 | |||||||||
Inventories, net | 235.8 | 189.8 | |||||||||
Other current assets | 78.6 | 73.1 | |||||||||
Total current assets | 778.6 | 903.4 | |||||||||
Property, plant and equipment: | |||||||||||
Land | 13.9 | 13.9 | |||||||||
Buildings and leasehold improvements | 62.5 | 62.9 | |||||||||
Machinery and equipment | 234.0 | 231.4 | |||||||||
310.4 | 308.2 | ||||||||||
Accumulated depreciation | (200.8) | (194.9) | |||||||||
Property, plant and equipment, net | 109.6 | 113.3 | |||||||||
Goodwill | 459.7 | 457.3 | |||||||||
Intangibles, net | 416.1 | 415.5 | |||||||||
Other assets | 662.9 | 675.9 | |||||||||
Deferred income taxes | 16.2 | 11.0 | |||||||||
Assets of DBT and Heat Transfer (includes cash and cash equivalents of $5.4 and $7.8 at July 2, 2022 and December 31, 2021, respectively) | 46.5 | 52.2 | |||||||||
TOTAL ASSETS | $ | 2,489.6 | $ | 2,628.6 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 116.2 | $ | 119.6 | |||||||
Contract liabilities | 45.4 | 44.7 | |||||||||
Accrued expenses | 182.7 | 217.9 | |||||||||
Income taxes payable | 8.8 | 42.1 | |||||||||
Short-term debt | 2.1 | 2.2 | |||||||||
Current maturities of long-term debt | 13.0 | 13.0 | |||||||||
Total current liabilities | 368.2 | 439.5 | |||||||||
Long-term debt | 224.5 | 230.8 | |||||||||
Deferred and other income taxes | 27.5 | 31.3 | |||||||||
Other long-term liabilities | 746.4 | 788.5 | |||||||||
Liabilities of DBT and Heat Transfer | 34.4 | 35.6 | |||||||||
Total long-term liabilities | 1,032.8 | 1,086.2 | |||||||||
Stockholders' Equity: | |||||||||||
Common stock | 0.5 | 0.5 | |||||||||
Paid-in capital | 1,327.3 | 1,334.2 | |||||||||
Retained deficit | (27.4) | (51.8) | |||||||||
Accumulated other comprehensive income | 254.0 | 263.9 | |||||||||
Common stock in treasury | (465.8) | (443.9) | |||||||||
Total stockholders' equity | 1,088.6 | 1,102.9 | |||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 2,489.6 | $ | 2,628.6 | |||||||
SPX CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||||||||||||||
RESULTS OF REPORTABLE SEGMENTS | ||||||||||||||||||||||||||||||||||||||||||||||||||
(Unaudited; in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended | Six months ended | |||||||||||||||||||||||||||||||||||||||||||||||||
July 2, 2022 | July 3, 2021 | Δ | %/bps | July 2, 2022 | July 3, 2021 | Δ | %/bps | |||||||||||||||||||||||||||||||||||||||||||
HVAC reportable segment | ||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | $ | 218.7 | $ | 185.4 | $ | 33.3 | 18.0% | $ | 411.8 | $ | 361.0 | $ | 50.8 | 14.1% | ||||||||||||||||||||||||||||||||||||
Gross profit | 63.8 | 56.3 | 7.5 | 118.7 | 110.0 | 8.7 | ||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expense | 35.5 | 29.7 | 5.8 | 69.8 | 60.4 | 9.4 | ||||||||||||||||||||||||||||||||||||||||||||
Intangible amortization expense | 2.7 | 0.7 | 2.0 | 8.1 | 1.4 | 6.7 | ||||||||||||||||||||||||||||||||||||||||||||
Income | $ | 25.6 | $ | 25.9 | $ | (0.3) | (1.2)% | $ | 40.8 | $ | 48.2 | $ | (7.4) | (15.4)% | ||||||||||||||||||||||||||||||||||||
as a percent of revenues | 11.7 | % | 14.0 | % | -230 bps | 9.9 | % | 13.4 | % | -350 bps | ||||||||||||||||||||||||||||||||||||||||
Detection & Measurement reportable segment | ||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | $ | 135.3 | $ | 111.2 | $ | 24.1 | 21.7% | $ | 249.3 | $ | 222.8 | $ | 26.5 | 11.9% | ||||||||||||||||||||||||||||||||||||
Gross profit | 60.8 | 46.0 | 14.8 | 109.9 | 96.7 | 13.2 | ||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expense | 33.9 | 28.8 | 5.1 | 64.1 | 56.2 | 7.9 | ||||||||||||||||||||||||||||||||||||||||||||
Intangible amortization expense | 4.4 | 5.8 | (1.4) | 8.3 | 9.1 | (0.8) | ||||||||||||||||||||||||||||||||||||||||||||
Income | $ | 22.5 | $ | 11.4 | $ | 11.1 | 97.4% | $ | 37.5 | $ | 31.4 | $ | 6.1 | 19.4% | ||||||||||||||||||||||||||||||||||||
as a percent of revenues | 16.6 | % | 10.3 | % | 630 bps | 15.0 | % | 14.1 | % | 90 bps | ||||||||||||||||||||||||||||||||||||||||
Consolidated Revenues | $ | 354.0 | $ | 296.6 | $ | 57.4 | 19.4% | $ | 661.1 | $ | 583.8 | $ | 77.3 | 13.2% | ||||||||||||||||||||||||||||||||||||
Consolidated Segment Income | 48.1 | 37.3 | 10.8 | 29.0% | 78.3 | 79.6 | (1.3) | (1.6)% | ||||||||||||||||||||||||||||||||||||||||||
as a percent of revenues | 13.6 | % | 12.6 | % | 100 bps | 11.8 | % | 13.6 | % | -180 bps | ||||||||||||||||||||||||||||||||||||||||
Total segment income | $ | 48.1 | $ | 37.3 | $ | 10.8 | $ | 78.3 | $ | 79.6 | $ | (1.3) | ||||||||||||||||||||||||||||||||||||||
Corporate expense | 16.4 | 13.6 | 2.8 | 33.0 | 28.0 | 5.0 | ||||||||||||||||||||||||||||||||||||||||||||
Long-term incentive compensation expense | 2.5 | 3.3 | (0.8) | 5.6 | 6.0 | (0.4) | ||||||||||||||||||||||||||||||||||||||||||||
Special charges, net | 0.1 | 0.6 | (0.5) | 0.1 | 0.8 | (0.7) | ||||||||||||||||||||||||||||||||||||||||||||
Other operating expense, net | 1.9 | 2.7 | (0.8) | 1.0 | 2.7 | (1.7) | ||||||||||||||||||||||||||||||||||||||||||||
Consolidated operating income | $ | 27.2 | $ | 17.1 | $ | 10.1 | 59.1% | $ | 38.6 | $ | 42.1 | $ | (3.5) | (8.3)% | ||||||||||||||||||||||||||||||||||||
as a percent of revenues | 7.7 | % | 5.8 | % | 190 bps | 5.8 | % | 7.2 | % | -140 bps | ||||||||||||||||||||||||||||||||||||||||
SPX CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||||||||||||
(Unaudited; in millions) | ||||||||||||||||||||||||||
Three months ended | Six months ended | |||||||||||||||||||||||||
July 2, 2022 | July 3, 2021 | July 2, 2022 | July 3, 2021 | |||||||||||||||||||||||
Cash flows from (used in) operating activities: | ||||||||||||||||||||||||||
Net income | $ | 13.0 | $ | 61.9 | $ | 24.4 | $ | 88.7 | ||||||||||||||||||
Less: Income (loss) from discontinued operations, net of tax | (6.1) | 44.2 | (7.7) | 48.0 | ||||||||||||||||||||||
Income from continuing operations | 19.1 | 17.7 | 32.1 | 40.7 | ||||||||||||||||||||||
Adjustments to reconcile income from continuing operations to net cash from (used in) operating activities: | ||||||||||||||||||||||||||
Special charges, net | 0.1 | 0.6 | 0.1 | 0.8 | ||||||||||||||||||||||
Gain on change in fair value of equity security | — | (2.2) | (4.4) | (7.4) | ||||||||||||||||||||||
Deferred and other income taxes | (13.3) | (6.1) | (9.0) | 2.2 | ||||||||||||||||||||||
Depreciation and amortization | 11.6 | 11.2 | 25.6 | 19.9 | ||||||||||||||||||||||
Pension and other employee benefits | 4.7 | 0.3 | 6.3 | 1.0 | ||||||||||||||||||||||
Long-term incentive compensation | 2.5 | 3.3 | 5.6 | 6.0 | ||||||||||||||||||||||
Other, net | 0.4 | 1.4 | 1.0 | 3.2 | ||||||||||||||||||||||
Changes in operating assets and liabilities, net of effects from acquisitions: | ||||||||||||||||||||||||||
Accounts receivable and other assets | (15.4) | 3.8 | (5.0) | 31.3 | ||||||||||||||||||||||
Inventories | (19.3) | 0.6 | (44.9) | (6.3) | ||||||||||||||||||||||
Accounts payable, accrued expenses and other | (25.1) | (13.3) | (90.6) | (50.6) | ||||||||||||||||||||||
Cash spending on restructuring actions | (0.2) | (0.8) | (0.3) | (1.2) | ||||||||||||||||||||||
Net cash from (used in) continuing operations | (34.9) | 16.5 | (83.5) | 39.6 | ||||||||||||||||||||||
Net cash from (used in) discontinued operations | (4.4) | 2.2 | (13.0) | 39.3 | ||||||||||||||||||||||
Net cash from (used in) operating activities | (39.3) | 18.7 | (96.5) | 78.9 | ||||||||||||||||||||||
Cash flows from (used in) investing activities: | ||||||||||||||||||||||||||
Proceeds related to company-owned life insurance policies, net | 1.6 | 0.4 | 1.6 | 3.9 | ||||||||||||||||||||||
Business acquisitions, net of cash acquired | 0.4 | (81.9) | (41.4) | (81.9) | ||||||||||||||||||||||
Capital expenditures | (3.9) | (2.0) | (6.0) | (4.2) | ||||||||||||||||||||||
Net cash used in continuing operations | (1.9) | (83.5) | (45.8) | (82.2) | ||||||||||||||||||||||
Net cash used in discontinued operations | — | (0.8) | (13.9) | (1.2) | ||||||||||||||||||||||
Net cash used in investing activities | (1.9) | (84.3) | (59.7) | (83.4) | ||||||||||||||||||||||
Cash flows from (used in) financing activities: | ||||||||||||||||||||||||||
Borrowings under senior credit facilities | — | 48.0 | — | 102.0 | ||||||||||||||||||||||
Repayments under senior credit facilities | (3.2) | (13.3) | (6.3) | (94.9) | ||||||||||||||||||||||
Borrowings under trade receivables arrangement | — | 78.0 | — | 132.0 | ||||||||||||||||||||||
Repayments under trade receivables arrangement | — | (86.0) | — | (134.0) | ||||||||||||||||||||||
Net repayments under other financing arrangements | — | (0.2) | (0.2) | — | ||||||||||||||||||||||
Payment of contingent consideration | — | — | (1.3) | — | ||||||||||||||||||||||
Minimum withholdings paid on behalf of employees for net share settlements, net of proceeds from the exercise of employee stock options | 1.2 | — | (5.2) | (3.8) | ||||||||||||||||||||||
Repurchases of common stock | (33.7) | — | (33.7) | — | ||||||||||||||||||||||
Net cash from ( used in) continuing operations | (35.7) | 26.5 | (46.7) | 1.3 | ||||||||||||||||||||||
Net cash from (used in) discontinued operations | 0.7 | — | 0.3 | (0.4) | ||||||||||||||||||||||
Net cash from (used in) financing activities | (35.0) | 26.5 | (46.4) | 0.9 | ||||||||||||||||||||||
Change in cash and equivalents due to changes in foreign currency exchange rates | 1.9 | 1.3 | 1.8 | 4.4 | ||||||||||||||||||||||
Net change in cash and equivalents | (74.3) | (37.8) | (200.8) | 0.8 | ||||||||||||||||||||||
Consolidated cash and equivalents, beginning of period | 269.5 | 106.9 | 396.0 | 68.3 | ||||||||||||||||||||||
Consolidated cash and equivalents, end of period | $ | 195.2 | $ | 69.1 | $ | 195.2 | $ | 69.1 |
SPX CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||
CASH AND DEBT RECONCILIATION | ||||||||||||||||||||||||||||||||
(Unaudited; in millions) | ||||||||||||||||||||||||||||||||
Six months ended | ||||||||||||||||||||||||||||||||
July 2, 2022 | ||||||||||||||||||||||||||||||||
Beginning cash and equivalents | $ | 396.0 | ||||||||||||||||||||||||||||||
Cash used in continuing operations | (83.5) | |||||||||||||||||||||||||||||||
Capital expenditures | (6.0) | |||||||||||||||||||||||||||||||
Business acquisitions, net of cash acquired | (41.4) | |||||||||||||||||||||||||||||||
Proceeds related to company-owned life insurance policies, net | 1.6 | |||||||||||||||||||||||||||||||
Payment of contingent consideration | (1.3) | |||||||||||||||||||||||||||||||
Repayments under senior credit facilities | (6.3) | |||||||||||||||||||||||||||||||
Net repayments under other financing arrangements | (0.2) | |||||||||||||||||||||||||||||||
Minimum withholdings paid on behalf of employees for net share settlements, net of proceeds from the exercise of employee stock options | (5.2) | |||||||||||||||||||||||||||||||
Repurchases of common stock | (33.7) | |||||||||||||||||||||||||||||||
Cash used in discontinued operations | (26.6) | |||||||||||||||||||||||||||||||
Change in cash due to changes in foreign currency exchange rates | 1.8 | |||||||||||||||||||||||||||||||
Ending cash and equivalents | $ | 195.2 | ||||||||||||||||||||||||||||||
Debt at | Debt at | |||||||||||||||||||||||||||||||
December 31, 2021 | Borrowings | Repayments | Other | July 2, 2022 | ||||||||||||||||||||||||||||
Revolving loans | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||
Term loan | 243.7 | — | (6.3) | — | 237.4 | |||||||||||||||||||||||||||
Trade receivables financing arrangement | — | — | — | — | — | |||||||||||||||||||||||||||
Other indebtedness | 3.3 | 0.1 | (0.3) | — | 3.1 | |||||||||||||||||||||||||||
Less: Deferred financing costs associated with the term loan | (1.0) | — | — | 0.1 | (0.9) | |||||||||||||||||||||||||||
Totals | $ | 246.0 | $ | 0.1 | $ | (6.6) | $ | 0.1 | $ | 239.6 |
SPX CORPORATION AND SUBSIDIARIES | |||||||||||||||||
NON-GAAP RECONCILIATION - ORGANIC REVENUE | |||||||||||||||||
HVAC AND DETECTION & MEASUREMENT REPORTABLE SEGMENTS | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Three months ended July 2, 2022 | |||||||||||||||||
HVAC | Detection & Measurement | ||||||||||||||||
Net Revenue Growth | 18.0 | % | 21.7 | % | |||||||||||||
Exclude: Foreign Currency | (0.7) | % | (3.2) | % | |||||||||||||
Exclude: Acquisitions | 9.8 | % | 12.5 | % | |||||||||||||
Organic Revenue Growth | 8.9 | % | 12.4 | % |
SPX CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||||||
NON-GAAP RECONCILIATION - SEGMENT INCOME | ||||||||||||||||||||||||||
(Unaudited; in millions) | ||||||||||||||||||||||||||
CONSOLIDATED SPX: | Three months ended | Six months ended | ||||||||||||||||||||||||
July 2, 2022 | July 3, 2021 | July 2, 2022 | July 3, 2021 | |||||||||||||||||||||||
Total segment income | $ | 48.1 | $ | 37.3 | $ | 78.3 | $ | 79.6 | ||||||||||||||||||
Exclude: Acquisition related costs (1) | (0.9) | (0.9) | (1.0) | (1.6) | ||||||||||||||||||||||
Exclude: Amortization expense (2) | (7.1) | (6.5) | (16.4) | (10.5) | ||||||||||||||||||||||
Adjusted segment income | $ | 56.1 | $ | 44.7 | $ | 95.7 | $ | 91.7 | ||||||||||||||||||
as a percent of revenues (3) | 15.8 | % | 15.1 | % | 14.5 | % | 15.7 | % | ||||||||||||||||||
HVAC REPORTABLE SEGMENT: | ||||||||||||||||||||||||||
Three months ended | ||||||||||||||||||||||||||
July 2, 2022 | July 3, 2021 | |||||||||||||||||||||||||
Segment income | $ | 25.6 | $ | 25.9 | ||||||||||||||||||||||
Exclude: Acquisition related costs | — | — | ||||||||||||||||||||||||
Exclude: Amortization expense (2) | (2.7) | (0.7) | ||||||||||||||||||||||||
Adjusted segment income | $ | 28.3 | $ | 26.6 | ||||||||||||||||||||||
as a percent of segment revenues (3) | 12.9 | % | 14.3 | % | ||||||||||||||||||||||
DETECTION & MEASUREMENT REPORTABLE SEGMENT: | ||||||||||||||||||||||||||
Three months ended | ||||||||||||||||||||||||||
July 2, 2022 | July 3, 2021 | |||||||||||||||||||||||||
Segment income | $ | 22.5 | $ | 11.4 | ||||||||||||||||||||||
Exclude: Acquisition related costs (1) | (0.9) | (0.9) | ||||||||||||||||||||||||
Exclude: Amortization expense (2) | (4.4) | (5.8) | ||||||||||||||||||||||||
Adjusted segment income | $ | 27.8 | $ | 18.1 | ||||||||||||||||||||||
as a percent of segment revenues (3) | 20.5 | % | 16.3 | % | ||||||||||||||||||||||
(1) Includes cost incurred in connection with acquisitions during the periods herein, including integration costs and "Cost of products sold" related to the step-up of inventory (to fair value) acquired in connection with the ITL acquisition of $0.9 and $1.0 during the three and six months ended July 2, 2022, respectively, and inventory step-up charges of $0.9 and $1.6 during the three and six months ended July 3, 2021, respectively, related to the Sealite and Sensors & Software acquisitions. | ||||||||||||||||||||||||||
(2) Represents amortization expense associated with acquired intangible assets. | ||||||||||||||||||||||||||
(3) 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 2, 2022 | July 3, 2021 | July 2, 2022 | July 3, 2021 | |||||||||||||||||||||||
Operating income | $ | 27.2 | $ | 17.1 | $ | 38.6 | $ | 42.1 | ||||||||||||||||||
Include - TSA Income (1) | 0.9 | — | 1.8 | — | ||||||||||||||||||||||
Exclude: | ||||||||||||||||||||||||||
Acquisition related and other costs (2) | (5.1) | (2.4) | (9.5) | (4.0) | ||||||||||||||||||||||
Other operating expense (3) | (1.9) | (2.7) | (1.0) | (2.7) | ||||||||||||||||||||||
Amortization expense (4) | (7.1) | (6.5) | (16.4) | (10.5) | ||||||||||||||||||||||
Adjusted operating income | $ | 42.2 | $ | 28.7 | $ | 67.3 | $ | 59.3 | ||||||||||||||||||
as a percent of revenues (5) | 11.9 | % | 9.7 | % | 10.2 | % | 10.2 | % | ||||||||||||||||||
(1) Represents transition services income related to the Transformer Solutions disposition. Amount recorded in non-operating income for U.S. GAAP purposes. | ||||||||||||||||||||||||||
(2) For the three and six months ended July 2, 2022, represents (i) cost incurred in connection with acquisitions and strategic/transformation initiatives ($4.0 and $8.2, respectively), (ii) costs associated with our South Africa business that could not be allocated to discontinued operations for U.S. GAAP purposes of $0.2 and $0.4, respectively, and (iii) an inventory step-up charge of $0.9 related to our ITL acquisition. For the three and six months ended July 3, 2021, represents (i) cost incurred in connection with acquisitions, including inventory step-up charges of $0.9 and $1.6, respectively, (ii) costs associated with acquisition and integration efforts of $1.2 and $1.9, respectively, and (iii) costs associated with our South Africa business that could not be allocated to discontinued operations for U.S. GAAP purposes of $0.3 and $0.5, respectively. | ||||||||||||||||||||||||||
(3) For the three and six months ended July 2, 2022, represents (i) a gain of $0.4 and $1.3, respectively, related to a revision of the liability associated with contingent consideration on a recent acquisition and (ii) a charge of $2.3 related to revisions of recorded liabilities for asbestos-related claims. For the three and six months ended July 3, 2021, represents a charge of $2.7 related to revisions of recorded assets for asbestos-related claims. | ||||||||||||||||||||||||||
(4) Represents amortization expense associated with acquired intangible assets. | ||||||||||||||||||||||||||
(5) 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 2, 2022 | |||||||||||||||||
(Unaudited; in millions, except per share values) | |||||||||||||||||
GAAP | Adjustments | Adjusted | |||||||||||||||
Segment income (1) | $ | 48.1 | $ | 8.0 | $ | 56.1 | |||||||||||
Corporate expense (2) | (16.4) | 5.1 | (11.3) | ||||||||||||||
Long-term incentive compensation expense | (2.5) | — | (2.5) | ||||||||||||||
Special charges, net | (0.1) | — | (0.1) | ||||||||||||||
Other operating expense, net (3) | (1.9) | 1.9 | — | ||||||||||||||
Operating income | 27.2 | 15.0 | 42.2 | ||||||||||||||
Other income (expense), net (4) | (1.7) | 2.9 | 1.2 | ||||||||||||||
Interest expense, net | (2.0) | — | (2.0) | ||||||||||||||
Income from continuing operations before income taxes | 23.5 | 17.9 | 41.4 | ||||||||||||||
Income tax provision (5) | (4.4) | (4.0) | (8.4) | ||||||||||||||
Income from continuing operations | 19.1 | 13.9 | 33.0 | ||||||||||||||
Diluted shares outstanding | 46.289 | 46.289 | |||||||||||||||
Earnings per share from continuing operations | $ | 0.41 | $ | 0.71 | |||||||||||||
(1) Adjustment represents the removal of (i) amortization expense associated with acquired intangible assets ($7.1) and (ii) an inventory step-up charge of $0.9 related to our ITL acquisition. | |||||||||||||||||
(2) Adjustment represents the removal of acquisition and strategic/transformation related expenses ($4.0), costs associated with our South Africa business that could not be allocated to discontinued operations for U.S. GAAP purposes ($0.2), as well as a reclassification of transition services income ($0.9) from "Other income (expense), net." | |||||||||||||||||
(3) Adjustment represents the removal of (i) a charge of $2.3 related to revisions of recorded liabilities for asbestos-related claims and (ii) a gain of $0.4 related to a revision of the liability associated with contingent consideration on a recent acquisition. | |||||||||||||||||
(4) Adjustment represents the removal of a pension plan settlement and mark-to-market pension losses of $3.8, partially offset by the reclassification of income related to a transition services agreement ($0.9) to "Corporate expense." | |||||||||||||||||
(5) Adjustment represents the tax impact of items (1) through (4) above. | |||||||||||||||||
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) | $ | 37.3 | $ | 7.4 | $ | 44.7 | |||||||||||
Corporate expense (2) | (13.6) | 1.5 | (12.1) | ||||||||||||||
Long-term incentive compensation expense | (3.3) | — | (3.3) | ||||||||||||||
Special charges, net | (0.6) | — | (0.6) | ||||||||||||||
Other operating expense, net (3) | (2.7) | 2.7 | — | ||||||||||||||
Operating income | 17.1 | 11.6 | 28.7 | ||||||||||||||
Other income, net (4) | 6.4 | (2.6) | 3.8 | ||||||||||||||
Interest expense, net (5) | (3.4) | 0.3 | (3.1) | ||||||||||||||
Income from continuing operations before income taxes | 20.1 | 9.3 | 29.4 | ||||||||||||||
Income tax provision (6) | (2.4) | (3.1) | (5.5) | ||||||||||||||
Income from continuing operations | 17.7 | 6.2 | 23.9 | ||||||||||||||
Diluted shares outstanding | 46.545 | 46.545 | |||||||||||||||
Earnings per share from continuing operations | $ | 0.38 | $ | 0.51 | |||||||||||||
(1) Adjustment represents the removal of (i) amortization expense associated with acquired intangible assets ($6.5) and (ii) an inventory step-up charge related to the Sealite acquisition of ($0.9). | |||||||||||||||||
(2) Adjustment represents the removal of acquisition related expenses incurred during the period ($1.2) and costs associated with our South Africa business that could not be allocated to discontinued operations for U.S. GAAP purposes ($0.3). | |||||||||||||||||
(3) Adjustment represents the removal of a charge of $2.7 related to revisions of recorded assets for asbestos-related claims. | |||||||||||||||||
(4) Adjustment represents the removal of (i) a gain on an equity security associated with a fair value adjustment ($2.2) and (ii) non-service pension and postretirement income ($0.4). | |||||||||||||||||
(5) Adjustment relates primarily to the removal of a charge associated with 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. | |||||||||||||||||
Cover Page |
Aug. 04, 2022 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | Aug. 04, 2022 |
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 |
-8?20$3;8T.P6BP^0"X99K>]9!:G
,8% D;GVF5NUK!7(;V;8,O+T#(-Q
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M*^+<-1D[":UX*BPSQ_P&)>C-WLN[B8G,2;2^E6TSW[S S)=ER=PEG
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M" )H:8F#<>\I8_V@_+#4
MC8"??_.S-$9]D-P3TALQ59+OP"?*/"Y^TNUZ7XG0V21JHKE'X61C'E*S"&Z)
MAF\\&S;761/IR&<,?0,:62I'$_:3]TRX W"N;+Q 4F1?1STR >HR:JR(SB2D
MS>1Z)LL"%/F,QM2=N6Q ; R)6A /;:'A+&*,0#N(4V]%/JQYKI.ISD5!K"0M
M9>5Z>"8&3 )47"_N.';VQ@*:*];)H;3'E8]YBCRNOGCZ$V$J*--J_145DHVHL#M@OA8D_.3($Y[XZ_[X.;KGL1#
M\S@-EJF0YR)=)/B+52NN$<9*H /J%^QF$(#+26$>GB/OWQESZ#W/_34)_A\X
MEXRW+V.D3+D$_==8\MY$.2A=A\ZW#?4>+8,N[_=X)XFOI41[G;/O9)N =@V]
M<9[[O/PDXO&;-CBL3+ X:6/HM&UJ<#\F/(+E9^C;KN5L(KAIC?DUCUBIL5AH
M&S=[_4V@8@CT0H=SUE& &V<"L,4)3IX/4
M$9@ZZ'P2ESIR09RM!H4QKK=DE2Y7D8PR@EK-Y*_+M (ELA.J1%*YE?F*2^W(
M6D[*GG14J;F_S8J$%86P:C=OAFPLB'$XY6-+"4WT"60_%,1)2)WMB-*30
M\4]4,D2W(7F.+KT+O+%<8^_ III3PCH'RJF9GJB9 N+0Y"@+8>6.L#7XD+B[
MG_&WT%%01<*V.YDS)![949 ,)!YVDU-.E*MZV$=U^ZB4'MS>'K,RLMTG?UT3
MMIQ'ZN^M^FI:_HM]5*N/>D6 W7HNK(7);C+;>@ ;*7!Y;CW=>3YSGQS*$@>,
M6/DW/_1TQZ!D!C+3L':ITUIK-PEFL1>=0MG3,2&%< \AA593!6 *^R,M]9?0
MA]]\?R5_SSS##W<8\R<>-8OV"I3,:6/P.0I
M;/?4R\J^T&=6H-O1Q6?3"D(/\Y+D.8;%K H"4T?!\!R!J=-"Z@A,'0UO565?
M6[F1+7 J/B@JV7VJP#KTX=^NK4R')T
MQ\"K4]@'7IU*'7GM>I[[!./V"4R)@N2BCN5ZQ/"H:05DI!MQO57T[Z)_MXI4
MTCJ9JVXCB7 C(95>7&AK*$7NI'I=F+JC,_UY2EEAJ@.([7I?)U!S1!J4U"E4
M0NI@22JAR9.I*B%2Y\C4Z>8I$2!0H%1)I/,+HSKP=),2CQK4>F15)'VB>Y[N
MC"D3X6A9HT%012JUT;(6G42XD*T;A&NP"IA%0J[*X?'F4+2YW"
M]U"]+.ROEF--PREYLH+)Q+5-?K8]TRV3N YYH!/='C%)3J #B\I6JNHFJ>7M*H _-3*6PC: 2.
M/4DCYVJ#]&A,KFG09^1_U:*J/>W^P??#OE+O";7WP;M+\.[4*=..5;%8U2PK
M!LR"8GJELE)URIZB>677=CS3<2V7'V^R^\&B/Z=A,_0OSM&9]A'1J+WA%,.7
MYN*IK=JZ77%8E5&%F8ZGF*6JK=B.:BL5VS1,US MQZ2 (H!5SJ+X2NC@D3MV
M_V[1!7LR[G'+N2M ;XKA$.-:TO5>R0QPCCH]?HJ2).$8<5P#'^Z\L>E@<5\">63/B
M2G/:$>%$]XE.9M1CV:J(.R)>5%^CE&%0ZBY''6EM\=?\@2\SAFTH$U ^;Z'<
MS%S!*_-*Y& K!:S$]E(;"*V\T,IJ"".T$%JIH*5E+AB'T$)HI>1:6=7L&D-+
M6!U_[7#OM5H'HIS_8!_5[4/8?7(T6_BP9O#FI,A__*-W0>[ZMS=W][TO5_VD
M,LSA:SI@'W7HHWJ;^J +MZC44:K,ZKGJF618T,*;5AAR*?JH6 D K+IP]"5/
M7W6A\*U>+^%6PFBT(0:AX6'Q'N:M-/>>M^JPA\6(8\3Q9AQWJXWCBO
;Y&QKI?H*E:4NB-L4>H]!9(CCNN XX[40!@CC,L.XV9+6':,"6Z!
M/A>N-W-94&&9L]N^69:LHND;,;NFP.1I9F9\2*%C;R!94D7,?YK6T\"_W>;B
M0^@%
$Y.>^#%1=:(?^.M I=/U0Z#*'/EJD7*Z5>^FG@NVEG2U/5_ROP
MHMN?DQX%IK+C3:A ?!;US-2&?59HX+?#+0>(R&*H(:5VP+("=A1#WQ4G"@+:
M2]A6]N%39IV$95?X2Y^Z-&Y#_^PH3:/N%O8- %_J.S20C?#VQ&/9[6JU6"IK
MV/,42)2Z6<-R4$4^J,W4G7VFJ\5*I;KPL5K4%CZ[JUK-*IK&XL?OJ-K%K^:K
MW>3S%F<%)&\:O;3 WP.&00[\4C *69$>=5T_;&^I1..ELB;>3-&'#UF*D10,
MJ(HD4>"[Y#>NWM1/\GD:];;TF813:X6E]2[V*?L.70QBK>R
M!CPP+HI'NWXPW/I/R^\"1&BR 3F.NC3\ST8"_A0X7K'OB8*)?\M @$'Y\J\#
MP9U@:#YQ32VY5=-1^K\W]UOU&CEI[;3J)Y.V8@5[>U+?_7Z\W]JOGY"=9HW4
M_][]8Z?YM4YV#QN-_9.3_