Delaware | 1-37393 | 47-3110748 | ||
(State or Other Jurisdiction of | (Commission File Number) | (I.R.S. Employer | ||
Incorporation) | Identification No.) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: |
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934: | |
Emerging Growth Company o | |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o |
(i) | adjusted operating income, which is defined as operating income (loss) excluding the impairment of goodwill and intangible assets and special charges; |
(ii) | EBITDA, which is defined as net income (loss) attributable to SPX FLOW, Inc. excluding income tax provision (benefit), interest expense, net and depreciation and amortization; |
(iii) | adjusted EBITDA, which is defined as EBITDA excluding the impairment of goodwill and intangible assets, special charges, and a loss related to early extinguishment of debt, and |
(iv) | adjusted diluted earnings per share (“EPS”), which is defined as diluted earnings (loss) per share excluding the dilutive EPS effects of the impairment of goodwill and intangible assets, special charges, and a loss related to early extinguishment of debt (all net of tax), discrete tax provisions (benefits) including primarily a tax benefit from a manufacturing expansion in Poland in 2016, and a tax benefit as a result of the U.S. tax law changes pursuant to the Tax Cuts and Jobs Act in 2017. |
Exhibit Number | Description | ||
99.1 | Press Release issued February 6, 2018, furnished solely pursuant to Item 2.02 of Form 8-K. |
SPX FLOW, Inc. | ||
Date: February 6, 2018 | By: | /s/ Jeremy W. Smeltser |
Jeremy W. Smeltser | ||
Vice President and | ||
Chief Financial Officer |
Exhibit Number | Description | ||
Press Release issued February 6, 2018, furnished solely pursuant to Item 2.02 of Form 8-K. |
● | Q4 2017 Earnings Per Share of $0.72, Adjusted Earnings Per Share* of $0.52 | |
● | Q4 2017 Operating Cash of $88 Million; 2017 Full Year Operating Cash of $205 Million | |
● | Net Debt* Reduced by 29% in 2017, Net Leverage Reduced to 3.0x | |
● | 2018 EPS Guidance Range of $2.21 to $2.56 Per Share; EBITDA* of $240 to $260 Million |
• | Orders increased 24.6% to $564.9 million, as compared to $453.3 million in the year-ago quarter. Organic orders increased 20.2%, or $91.6 million, with growth across all three segments, including two large dairy processing systems awards totaling $71.5 million in the Food and Beverage segment. The impact of the U.S. Dollar versus foreign currencies increased orders by 4.4%, or $20.0 million. |
◦ | Excluding large capital orders(1), orders grew organically by $20.1 million to $493.4 million, up 4.4% from the year-ago quarter, driven by the Power and Energy segment. |
• | Revenues increased 6.8% to $529.2 million, from $495.4 million in the year-ago quarter. Organic revenues* increased 2.2%, or $10.9 million, primarily due to increased shipments of valves and pumps into midstream oil applications, and to a lesser extent, aftermarket sales. The impact of the weaker U.S. Dollar versus foreign currencies increased revenues by 4.6%, or $22.9 million. |
• | Operating income and margin were $42.0 million and 7.9%, compared to operating income and margin of $10.9 million and 2.2% in the year-ago quarter. |
◦ | The company recorded $1.7 million of special charges primarily related to its previously announced realignment program, compared to $15.5 million in the year-ago quarter. |
• | Diluted net earnings per share were $0.72 and included: |
◦ | Discrete and other tax benefits of $0.23 per share primarily related to the enactment of the Tax Cuts and Jobs Act. |
◦ | Special charges of $(0.03) per share primarily related to the company’s global realignment program. |
• | Excluding the items noted above, adjusted earnings per share* were $0.52. |
• | Net cash from operating activities was $87.8 million in the period including $(9.7) million of cash outflows in support of the company’s realignment program. |
• | Free cash flow* was $82.1 million and included the net cash from operating activities described above and $(5.7) million in capital expenditures. |
• | Adjusted free cash flow* for the period was $91.8 million. |
• | Net income for the period was $30.7 million. |
• | Adjusted EBITDA* for the period was $61.9 million. |
• | Orders increased 10.2% to $2.12 billion from $1.92 billion in the prior year. Organic orders grew by $186.5 million, or 9.7% with growth across all three segments, highlighted by high-teens order growth in Power and Energy. Foreign currency was a modest benefit. |
• | Revenues declined 2.2% to $1.95 billion from $2.00 billion in the prior year. The impact of the weaker U.S. Dollar on foreign currencies increased revenues by 0.8%, or $14.7 million. Organic revenues* decreased 3.0%, due largely to a lower opening backlog in oil and dairy related product lines. |
• | Operating income (loss) was $119.1 million as compared to $(382.6) million in the prior year. |
• | Segment income and margin were $196.5 million and 10.1%, compared to $199.3 million and 10.0% in the prior year. Increased cost savings driven by the company’s global realignment program and improved project execution costs were offset by the revenue decline described above, lower utilization rates at certain large facilities and higher variable incentive compensation. |
• | Special charges were $19.3 million, compared to $79.8 million in the prior year, and substantially related to the company’s global realignment program. |
• | Diluted net earnings per share were $1.10 and included: |
◦ | Special charges of $(0.37) per share primarily related to the company’s global realignment program. |
◦ | Discrete and other tax benefits of $0.20 per share, primarily relating to the enactment of the Tax Cuts and Jobs Act. |
• | Excluding the items noted above, adjusted earnings per share* were $1.27. |
• | Net cash from operating activities was $205.0 million and included $(37.5) million of cash outflows in support of the company’s realignment program. |
• | Free cash flow* was $185.6 million and included the net cash from operating activities described above and $(19.4) million in capital expenditures. |
• | Adjusted free cash flow* for the full year 2017 was $223.1 million. |
• | Net income for the full year 2017 was $46.4 million. |
• | Adjusted EBITDA* for the full year 2017 was $200.5 million. |
2018 Full Year Financial Guidance | |||
($ millions; except per share data) | Guidance | Year-Over-Year Variance(1) | |
Revenue | $2,025 to $2,075 | 4% to 6% | |
Operating income | $181 to $201 | 30% to 45% | |
Earnings Per Share | $2.21 to $2.56 | 75% to 100% | |
Free Cash Flow(2)* | $105 to $125 | 100% to 120% conversion of net income | |
EBITDA* | $240 to $260 | 20% to 30% |
(1) | As compared to 2017 adjusted operating income* of $138.4 million, adjusted EPS* of $1.27, adjusted free cash flow* of $223.1 million and adjusted EBITDA* of $200.5 million. |
(2) | Includes $13 million of cash payments related to the realignment program. |
SPX FLOW, INC. AND SUBSIDIARIES | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
(Unaudited; in millions, except per share amounts) |
Three months ended December 31, | Twelve months ended December 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenues | $ | 529.2 | $ | 495.4 | $ | 1,951.5 | $ | 1,996.0 | |||||||
Costs and expenses: | |||||||||||||||
Cost of products sold | 364.0 | 342.9 | 1,335.1 | 1,371.4 | |||||||||||
Selling, general and administrative | 117.2 | 106.1 | 460.4 | 465.2 | |||||||||||
Intangible amortization | 4.3 | 4.2 | 17.6 | 20.0 | |||||||||||
Impairment of goodwill and intangible assets | — | 15.8 | — | 442.2 | |||||||||||
Special charges | 1.7 | 15.5 | 19.3 | 79.8 | |||||||||||
Operating income (loss) | 42.0 | 10.9 | 119.1 | (382.6 | ) | ||||||||||
Other income (expense), net | 3.1 | (0.3 | ) | 1.3 | (3.4 | ) | |||||||||
Interest expense, net | (15.3 | ) | (14.2 | ) | (62.5 | ) | (57.1 | ) | |||||||
Loss on early extinguishment of debt | — | — | — | (38.9 | ) | ||||||||||
Income (loss) before income taxes | 29.8 | (3.6 | ) | 57.9 | (482.0 | ) | |||||||||
Income tax benefit (provision) | 1.1 | 11.2 | (11.1 | ) | 101.0 | ||||||||||
Net income (loss) | 30.9 | 7.6 | 46.8 | (381.0 | ) | ||||||||||
Less: Net income attributable to noncontrolling interests | 0.2 | 0.8 | 0.4 | 0.8 | |||||||||||
Net income (loss) attributable to SPX FLOW, Inc. | $ | 30.7 | $ | 6.8 | $ | 46.4 | $ | (381.8 | ) | ||||||
Basic income (loss) per share of common stock | $ | 0.73 | $ | 0.16 | $ | 1.11 | $ | (9.23 | ) | ||||||
Diluted income (loss) per share of common stock | $ | 0.72 | $ | 0.16 | $ | 1.10 | $ | (9.23 | ) | ||||||
Weighted average number of common shares outstanding - basic | 41.912 | 41.454 | 41.799 | 41.345 | |||||||||||
Weighted average number of common shares outstanding - diluted | 42.445 | 41.664 | 42.183 | 41.345 |
SPX FLOW, INC. AND SUBSIDIARIES | |||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||
(Unaudited; in millions) |
December 31, 2017 | December 31, 2016 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and equivalents | $ | 263.7 | $ | 215.1 | |||
Accounts receivable, net | 439.1 | 446.9 | |||||
Inventories, net | 293.9 | 272.4 | |||||
Other current assets | 50.0 | 72.8 | |||||
Total current assets | 1,046.7 | 1,007.2 | |||||
Property, plant and equipment: | |||||||
Land | 35.1 | 36.1 | |||||
Buildings and leasehold improvements | 238.3 | 242.4 | |||||
Machinery and equipment | 461.6 | 420.8 | |||||
735.0 | 699.3 | ||||||
Accumulated depreciation | (374.1 | ) | (322.0 | ) | |||
Property, plant and equipment, net | 360.9 | 377.3 | |||||
Goodwill | 771.3 | 722.5 | |||||
Intangibles, net | 350.3 | 344.3 | |||||
Other assets | 159.8 | 151.9 | |||||
TOTAL ASSETS | $ | 2,689.0 | $ | 2,603.2 | |||
LIABILITIES, MEZZANINE EQUITY AND EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 219.4 | $ | 203.8 | |||
Accrued expenses | 389.6 | 329.9 | |||||
Income taxes payable | 21.6 | 10.8 | |||||
Short-term debt | 24.2 | 27.7 | |||||
Current maturities of long-term debt | 20.5 | 20.2 | |||||
Total current liabilities | 675.3 | 592.4 | |||||
Long-term debt | 850.9 | 1,060.9 | |||||
Deferred and other income taxes | 63.3 | 62.2 | |||||
Other long-term liabilities | 125.5 | 125.5 | |||||
Total long-term liabilities | 1,039.7 | 1,248.6 | |||||
Mezzanine equity | 22.2 | 20.1 | |||||
Equity: | |||||||
SPX FLOW, Inc. shareholders’ equity: | |||||||
Common stock | 0.4 | 0.4 | |||||
Paid-in capital | 1,650.9 | 1,640.4 | |||||
Accumulated deficit | (327.5 | ) | (373.9 | ) | |||
Accumulated other comprehensive loss | (372.8 | ) | (521.4 | ) | |||
Common stock in treasury | (8.9 | ) | (4.9 | ) | |||
Total SPX FLOW, Inc. shareholders' equity | 942.1 | 740.6 | |||||
Noncontrolling interests | 9.7 | 1.5 | |||||
Total equity | 951.8 | 742.1 | |||||
TOTAL LIABILITIES, MEZZANINE EQUITY AND EQUITY | $ | 2,689.0 | $ | 2,603.2 |
SPX FLOW, INC. AND SUBSIDIARIES | ||||||||||||||||
RESULTS OF REPORTABLE SEGMENTS | ||||||||||||||||
(Unaudited; in millions) |
Three months ended December 31, | Twelve months ended December 31, | |||||||||||||||||||||||||||
2017 | 2016 | Δ | %/bps | 2017 | 2016 | Δ | %/bps | |||||||||||||||||||||
Food and Beverage | ||||||||||||||||||||||||||||
Revenues | $ | 197.1 | $ | 182.5 | $ | 14.6 | 8.0% | $ | 715.9 | $ | 728.3 | $ | (12.4 | ) | (1.7)% | |||||||||||||
Gross profit | 59.1 | 51.4 | 7.7 | 220.9 | 214.0 | 6.9 | ||||||||||||||||||||||
Selling, general and administrative expense | 35.0 | 31.4 | 3.6 | 138.1 | 131.5 | 6.6 | ||||||||||||||||||||||
Intangible amortization expense | 1.9 | 1.8 | 0.1 | 7.9 | 7.4 | 0.5 | ||||||||||||||||||||||
Income | $ | 22.2 | $ | 18.2 | $ | 4.0 | 22.0% | $ | 74.9 | $ | 75.1 | $ | (0.2 | ) | (0.3)% | |||||||||||||
as a percent of revenues | 11.3 | % | 10.0 | % | 130bps | 10.5 | % | 10.3 | % | 20bps | ||||||||||||||||||
Power and Energy | ||||||||||||||||||||||||||||
Revenues | $ | 151.3 | $ | 129.9 | $ | 21.4 | 16.5% | $ | 543.2 | $ | 562.7 | $ | (19.5 | ) | (3.5)% | |||||||||||||
Gross profit | 44.5 | 37.4 | 7.1 | 158.3 | 162.4 | (4.1 | ) | |||||||||||||||||||||
Selling, general and administrative expense | 29.2 | 28.6 | 0.6 | 118.4 | 129.8 | (11.4 | ) | |||||||||||||||||||||
Intangible amortization expense | 1.1 | 1.1 | — | 4.4 | 7.2 | (2.8 | ) | |||||||||||||||||||||
Income | $ | 14.2 | $ | 7.7 | $ | 6.5 | 84.4% | $ | 35.5 | $ | 25.4 | $ | 10.1 | 39.8% | ||||||||||||||
as a percent of revenues | 9.4 | % | 5.9 | % | 350bps | 6.5 | % | 4.5 | % | 200bps | ||||||||||||||||||
Industrial | ||||||||||||||||||||||||||||
Revenues | $ | 180.8 | $ | 183.0 | $ | (2.2 | ) | (1.2)% | $ | 692.4 | $ | 705.0 | $ | (12.6 | ) | (1.8)% | ||||||||||||
Gross profit | 61.6 | 63.7 | (2.1 | ) | 237.2 | 248.2 | (11.0 | ) | ||||||||||||||||||||
Selling, general and administrative expense | 38.1 | 32.9 | 5.2 | 145.8 | 144.0 | 1.8 | ||||||||||||||||||||||
Intangible amortization expense | 1.3 | 1.3 | — | 5.3 | 5.4 | (0.1 | ) | |||||||||||||||||||||
Income | $ | 22.2 | $ | 29.5 | $ | (7.3 | ) | (24.7)% | $ | 86.1 | $ | 98.8 | $ | (12.7 | ) | (12.9)% | ||||||||||||
as a percent of revenues | 12.3 | % | 16.1 | % | -380bps | 12.4 | % | 14.0 | % | -160bps | ||||||||||||||||||
Consolidated Revenues | $ | 529.2 | $ | 495.4 | $ | 33.8 | 6.8% | $ | 1,951.5 | $ | 1,996.0 | $ | (44.5 | ) | (2.2)% | |||||||||||||
Consolidated Segment Income | 58.6 | 55.4 | 3.2 | 5.8% | 196.5 | 199.3 | (2.8 | ) | (1.4)% | |||||||||||||||||||
as a percent of revenues | 11.1 | % | 11.2 | % | -10bps | 10.1 | % | 10.0 | % | 10bps | ||||||||||||||||||
Total income for reportable segments | $ | 58.6 | $ | 55.4 | $ | 3.2 | $ | 196.5 | $ | 199.3 | $ | (2.8 | ) | |||||||||||||||
Corporate expense | 14.5 | 12.7 | 1.8 | 56.6 | 58.0 | (1.4 | ) | |||||||||||||||||||||
Pension and postretirement service costs | 0.4 | 0.5 | (0.1 | ) | 1.5 | 1.9 | (0.4 | ) | ||||||||||||||||||||
Impairment of goodwill and intangible assets | — | 15.8 | (15.8 | ) | — | 442.2 | (442.2 | ) | ||||||||||||||||||||
Special charges | 1.7 | 15.5 | (13.8 | ) | 19.3 | 79.8 | (60.5 | ) | ||||||||||||||||||||
Consolidated Operating Income (Loss) | $ | 42.0 | $ | 10.9 | $ | 31.1 | 285.3% | $ | 119.1 | $ | (382.6 | ) | $ | 501.7 | (131.1)% | |||||||||||||
as a percent of revenues | 7.9 | % | 2.2 | % | 570bps | 6.1 | % | (19.2 | )% | * | ||||||||||||||||||
*Not meaningful for comparison purposes. |
SPX FLOW, INC. AND SUBSIDIARIES | |||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(Unaudited; in millions) |
Three months ended December 31, | Twelve months ended December 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Cash flows from (used in) operating activities: | |||||||||||||||
Net income (loss) | $ | 30.9 | $ | 7.6 | $ | 46.8 | $ | (381.0 | ) | ||||||
Adjustments to reconcile net income (loss) to net cash from (used in) operating activities: | |||||||||||||||
Special charges | 1.7 | 15.5 | 19.3 | 79.8 | |||||||||||
Impairment of goodwill and intangible assets | — | 15.8 | — | 442.2 | |||||||||||
Deferred income taxes | (31.0 | ) | (1.8 | ) | (31.9 | ) | (102.0 | ) | |||||||
Depreciation and amortization | 15.3 | 15.0 | 61.2 | 64.7 | |||||||||||
Stock-based compensation | 3.8 | 4.7 | 15.9 | 18.9 | |||||||||||
Pension and other employee benefits | 0.8 | 3.6 | 6.3 | 10.9 | |||||||||||
Gain on asset sales and other, net | — | (1.1 | ) | (2.9 | ) | (2.5 | ) | ||||||||
Loss on early extinguishment of debt | — | — | — | 38.9 | |||||||||||
Changes in operating assets and liabilities: | |||||||||||||||
Accounts receivable and other assets | 15.9 | (7.8 | ) | 48.6 | 22.9 | ||||||||||
Inventories | 24.5 | 23.4 | 1.1 | 18.4 | |||||||||||
Accounts payable, accrued expenses and other | 35.6 | (37.1 | ) | 78.1 | (114.3 | ) | |||||||||
Domestic pension payments | — | — | — | (65.9 | ) | ||||||||||
Cash spending on restructuring actions | (9.7 | ) | (15.7 | ) | (37.5 | ) | (58.9 | ) | |||||||
Net cash from (used in) operating activities | 87.8 | 22.1 | 205.0 | (27.9 | ) | ||||||||||
Cash flows from (used in) investing activities: | |||||||||||||||
Proceeds from asset sales and other, net | — | 1.6 | 37.4 | 4.0 | |||||||||||
Decrease (increase) in restricted cash | (0.2 | ) | 0.2 | (0.2 | ) | — | |||||||||
Capital expenditures | (5.7 | ) | (6.7 | ) | (19.4 | ) | (44.0 | ) | |||||||
Net cash from (used in) investing activities | (5.9 | ) | (4.9 | ) | 17.8 | (40.0 | ) | ||||||||
Cash flows from (used in) financing activities: | |||||||||||||||
Proceeds from issuance of senior notes | — | — | — | 600.0 | |||||||||||
Repurchases of senior notes (includes premiums paid of $36.4) | — | — | — | (636.4 | ) | ||||||||||
Borrowings under senior credit facilities | — | 95.0 | 125.5 | 423.0 | |||||||||||
Repayments of senior credit facilities | (105.0 | ) | (105.0 | ) | (313.5 | ) | (365.0 | ) | |||||||
Borrowings under trade receivables financing arrangement | 35.0 | 13.5 | 124.1 | 93.4 | |||||||||||
Repayments of trade receivables financing arrangement | (35.0 | ) | (18.5 | ) | (145.3 | ) | (72.2 | ) | |||||||
Borrowings under other financing arrangements | 0.5 | 12.3 | 9.9 | 13.5 | |||||||||||
Repayments of other financing arrangements | (1.2 | ) | (1.8 | ) | (13.8 | ) | (14.6 | ) | |||||||
Minimum withholdings paid on behalf of employees for net share settlements, net | (0.5 | ) | (0.7 | ) | (4.0 | ) | (3.9 | ) | |||||||
Payments for deferred financing fees | — | (2.9 | ) | — | (15.5 | ) | |||||||||
Dividends paid to noncontrolling interests in subsidiary | — | — | (1.5 | ) | (1.2 | ) | |||||||||
Net cash from (used in) financing activities | (106.2 | ) | (8.1 | ) | (218.6 | ) | 21.1 | ||||||||
Change in cash and equivalents due to changes in foreign currency exchange rates | 6.9 | (21.9 | ) | 44.4 | (34.0 | ) | |||||||||
Net change in cash and equivalents | (17.4 | ) | (12.8 | ) | 48.6 | (80.8 | ) | ||||||||
Consolidated cash and equivalents, beginning of period | 281.1 | 227.9 | 215.1 | 295.9 | |||||||||||
Consolidated cash and equivalents, end of period | $ | 263.7 | $ | 215.1 | $ | 263.7 | $ | 215.1 |
SPX FLOW, INC. AND SUBSIDIARIES | |||||
ORGANIC REVENUE RECONCILIATION | |||||
(Unaudited) |
Three months ended December 31, 2017 | ||||||||
Net Revenue Growth (Decline) | Foreign Currency | Organic Revenue Growth (Decline) | ||||||
Food and Beverage | 8.0 | % | 4.7 | % | 3.3 | % | ||
Power and Energy | 16.5 | % | 5.6 | % | 10.9 | % | ||
Industrial | (1.2 | )% | 3.9 | % | (5.1 | )% | ||
Consolidated | 6.8 | % | 4.6 | % | 2.2 | % | ||
Twelve months ended December 31, 2017 | ||||||||
Net Revenue Decline | Foreign Currency | Organic Revenue Decline | ||||||
Food and Beverage | (1.7 | )% | 1.0 | % | (2.7 | )% | ||
Power and Energy | (3.5 | )% | — | % | (3.5 | )% | ||
Industrial | (1.8 | )% | 1.0 | % | (2.8 | )% | ||
Consolidated | (2.2 | )% | 0.8 | % | (3.0 | )% |
SPX FLOW, INC. AND SUBSIDIARIES | |||
CASH, DEBT AND NET DEBT RECONCILIATION | |||
(Unaudited; in millions) |
Twelve months ended December 31, 2017 | |||
Beginning cash and equivalents | $ | 215.1 | |
Net cash from operating activities | 205.0 | ||
Proceeds from asset sales and other, net | 37.4 | ||
Capital expenditures | (19.4 | ) | |
Increase in restricted cash | (0.2 | ) | |
Borrowings under senior credit facilities | 125.5 | ||
Repayments of senior credit facilities | (313.5 | ) | |
Borrowings under trade receivables financing arrangement | 124.1 | ||
Repayments of trade receivables financing arrangement | (145.3 | ) | |
Borrowings under other financing arrangements | 9.9 | ||
Repayments of other financing arrangements | (13.8 | ) | |
Minimum withholdings paid on behalf of employees for net share settlements, net | (4.0 | ) | |
Dividends paid to noncontrolling interests in subsidiary | (1.5 | ) | |
Change in cash and equivalents due to changes in foreign currency exchange rates | 44.4 | ||
Ending cash and equivalents | $ | 263.7 |
Debt and Net Debt at | |||||||
December 31, 2017 | December 31, 2016 | ||||||
Domestic revolving loan facility | $ | — | $ | 68.0 | |||
Term loan | 270.0 | 390.0 | |||||
5.625% senior notes, due in August 2024 | 300.0 | 300.0 | |||||
5.875% senior notes, due in August 2026 | 300.0 | 300.0 | |||||
Trade receivables financing arrangement | — | 21.2 | |||||
Other indebtedness | 35.8 | 42.4 | |||||
Less: deferred financing fees | (10.2 | ) | (12.8 | ) | |||
Total debt | $ | 895.6 | $ | 1,108.8 | |||
Total debt | $ | 895.6 | $ | 1,108.8 | |||
Less: cash and equivalents | (263.7 | ) | (215.1 | ) | |||
Net debt | $ | 631.9 | $ | 893.7 |
SPX FLOW, INC. AND SUBSIDIARIES | ||||||
FREE CASH FLOW AND ADJUSTED FREE CASH FLOW RECONCILIATION | ||||||
(Unaudited; in millions) |
Three months ended | Twelve months ended | |||||||||||||||
December 31, 2017 | December 31, 2016 | December 31, 2017 | December 31, 2016 | |||||||||||||
Net cash from (used in) operating activities | $ | 87.8 | $ | 22.1 | $ | 205.0 | $ | (27.9 | ) | |||||||
Capital expenditures | (5.7 | ) | (6.7 | ) | (19.4 | ) | (44.0 | ) | ||||||||
Free cash flow from (used in) operations | $ | 82.1 | $ | 15.4 | $ | 185.6 | $ | (71.9 | ) | |||||||
Free cash flow from (used in) operations | $ | 82.1 | $ | 15.4 | $ | 185.6 | $ | (71.9 | ) | |||||||
Cash spending on restructuring actions | 9.7 | 15.7 | 37.5 | 58.9 | ||||||||||||
Capital expenditures related to manufacturing expansion in Poland | — | 1.1 | — | 19.5 | ||||||||||||
Domestic pension payments, net of tax benefit | — | — | — | 41.0 | ||||||||||||
Adjusted free cash flow from operations | $ | 91.8 | $ | 32.2 | $ | 223.1 | $ | 47.5 |
SPX FLOW, INC. AND SUBSIDIARIES | |||||
ADJUSTED OPERATING INCOME RECONCILIATION | |||||
(Unaudited; in millions) |
Three months ended | Twelve months ended | ||||||||||||||
December 31, 2017 | December 31, 2016 | December 31, 2017 | December 31, 2016 | ||||||||||||
Operating income (loss) | $ | 42.0 | $ | 10.9 | $ | 119.1 | $ | (382.6 | ) | ||||||
Impairment of goodwill and intangible assets | — | 15.8 | — | 442.2 | |||||||||||
Special charges | 1.7 | 15.5 | 19.3 | 79.8 | |||||||||||
Adjusted operating income | $ | 43.7 | $ | 42.2 | $ | 138.4 | $ | 139.4 |
SPX FLOW, INC. AND SUBSIDIARIES | |||||
EBITDA AND ADJUSTED EBITDA RECONCILIATION | |||||
(Unaudited; in millions) |
Three months ended | Twelve months ended | ||||||||||||||
December 31, 2017 | December 31, 2016 | December 31, 2017 | December 31, 2016 | ||||||||||||
Net income (loss) attributable to SPX FLOW, Inc. | $ | 30.7 | $ | 6.8 | $ | 46.4 | $ | (381.8 | ) | ||||||
Income tax provision (benefit) | (1.1 | ) | (11.2 | ) | 11.1 | (101.0 | ) | ||||||||
Interest expense, net | 15.3 | 14.2 | 62.5 | 57.1 | |||||||||||
Depreciation and amortization | 15.3 | 15.0 | 61.2 | 64.7 | |||||||||||
EBITDA | 60.2 | 24.8 | 181.2 | (361.0 | ) | ||||||||||
Special charges | 1.7 | 15.5 | 19.3 | 79.8 | |||||||||||
Loss on early extinguishment of debt | — | — | — | 38.9 | |||||||||||
Impairment of goodwill and intangible assets | — | 15.8 | — | 442.2 | |||||||||||
Adjusted EBITDA | 61.9 | 56.1 | 200.5 | 199.9 | |||||||||||
Non-cash compensation expense | 5.0 | 6.0 | 21.6 | 25.4 | |||||||||||
Non-service pension and postretirement-related costs (benefits) | (4.3 | ) | 1.5 | (4.4 | ) | 2.5 | |||||||||
Interest income | 1.2 | 0.9 | 4.7 | 3.5 | |||||||||||
Gain on asset sales and other, net | — | (1.1 | ) | (2.9 | ) | (2.5 | ) | ||||||||
Other | 0.1 | 0.2 | 0.6 | 0.8 | |||||||||||
Bank consolidated EBITDA | $ | 63.9 | $ | 63.6 | $ | 220.1 | $ | 229.6 |
SPX FLOW, INC. AND SUBSIDIARIES | |||||
ADJUSTED DILUTED EARNINGS PER SHARE RECONCILIATION | |||||
(Unaudited) |
Three months ended | Twelve months ended | ||||||||||||||
December 31, 2017 | December 31, 2016 | December 31, 2017 | December 31, 2016 | ||||||||||||
Diluted earnings (loss) per share | $ | 0.72 | $ | 0.16 | $ | 1.10 | $ | (9.23 | ) | ||||||
Loss on early extinguishment of debt, net of tax | — | — | — | 0.59 | |||||||||||
Special charges, net of tax | 0.03 | 0.27 | 0.37 | 1.46 | |||||||||||
Discrete tax benefits, primarily Poland expansion and other | — | (0.23 | ) | — | (0.57 | ) | |||||||||
Discrete tax benefits, primarily Tax Cuts and Jobs Act and other | (0.23 | ) | — | (0.20 | ) | — | |||||||||
Impairment of goodwill and intangible assets, net of tax | — | 0.26 | — | 9.03 | |||||||||||
Adjusted diluted earnings per share | $ | 0.52 | $ | 0.46 | $ | 1.27 | $ | 1.28 |
SPX FLOW, INC. AND SUBSIDIARIES | |||
GUIDANCE RECONCILIATIONS FOR FREE CASH FLOW AND EBITDA | |||
(Unaudited; in millions) | |||
2018 | |||
Mid-Point Guidance | |||
Net cash from operating activities | $ | 145 | |
Capital expenditures | (30 | ) | |
Free cash flow from operations | $ | 115 | |
2018 | |||
Mid-Point Guidance | |||
Net income attributable to SPX FLOW, Inc. | $ | 103 | |
Income tax provision | 35 | ||
Interest expense, net | 51 | ||
Depreciation and amortization | 62 | ||
EBITDA | 251 | ||
Non-cash compensation expense | 18 | ||
Non-service pension and postretirement-related costs | 1 | ||
Interest income | 5 | ||
Special charges | 5 | ||
Bank consolidated EBITDA | $ | 280 |