Delaware (State or other jurisdiction of incorporation) | 1-6948 (Commission File Number) | 38-1016240 (IRS Employer Identification No.) |
Exhibit Number | Description |
99.1 | Press Release issued November 3, 2016, furnished solely pursuant to Item 2.02 of Form 8-K |
SPX CORPORATION | ||
(Registrant) | ||
Date: November 3, 2016 | By: | /s/ Scott W. Sproule |
Scott W. Sproule | ||
Vice President, Chief Financial Officer and | ||
Treasurer |
Exhibit Number | Description |
99.1 | Press Release issued November 3, 2016, furnished solely pursuant to Item 2.02 of Form 8-K |
($ millions) | Q3 2016 | Q3 2015 | 2016 YTD | 2015 YTD | ||||||||||||
Revenue | $385.2 | $374.1 | $1,187.4 | $1,209.8 | ||||||||||||
Segment Income (Loss) | 21.2 | (64.7) | 70.0 | (29.5) | ||||||||||||
Operating Income (Loss) | 7.1 | (113.6) | 37.1 | (166.9) |
($ millions) | Q3 2016 | Q3 2015 | 2016 YTD | 2015 YTD | ||||||||||||
Core Revenue* | $359.8 | $410.5 | $1,121.9 | $1,205.8 | ||||||||||||
Core Segment Income* | 24.7 | 33.5 | 79.8 | 85.4 | ||||||||||||
Adjusted Operating Income* | 10.0 | 14.2 | 37.6 | 30.5 |
Revenue Growth | Segment Income Margin % | ||
HVAC | Flattish organic revenue with variability based on winter heating demand | Approaching 16% | |
Detection & Measurement | Organic growth rate at lower end of long term target of 2-6%; variability driven by project-related revenue | 20-21% | |
Base Power | Modest increase in Transformer business more than offset by decline in Power Generation, including the effect of the sale of Dry Cooling | At least 200 bps improvement in Transformer business margin; Continued challenges in Power Generation operating environment |
SPX CORPORATION AND SUBSIDIARIES | ||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||
(Unaudited; in millions, except per share amounts) | ||||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||||
October 1, 2016 | September 26, 2015 | October 1, 2016 | September 26, 2015 | |||||||||||||||
Revenues | $ | 385.2 | $ | 374.1 | $ | 1,187.4 | $ | 1,209.8 | ||||||||||
Costs and expenses: | ||||||||||||||||||
Cost of products sold | 301.2 | 371.2 | 918.8 | 1,036.4 | ||||||||||||||
Selling, general and administrative | 76.3 | 106.8 | 239.5 | 322.4 | ||||||||||||||
Intangible amortization | 0.8 | 1.3 | 2.6 | 3.9 | ||||||||||||||
Special charges, net | 1.5 | 8.4 | 3.8 | 14.0 | ||||||||||||||
Impairment of intangible assets | — | — | 4.0 | — | ||||||||||||||
Gain on sale of dry cooling business | 1.7 | — | 18.4 | — | ||||||||||||||
Operating income (loss) | 7.1 | (113.6 | ) | 37.1 | (166.9 | ) | ||||||||||||
Other income (expense), net | 0.3 | (4.6 | ) | 0.6 | (7.5 | ) | ||||||||||||
Interest expense | (3.8 | ) | (6.3 | ) | (11.1 | ) | (18.5 | ) | ||||||||||
Interest income | — | 0.4 | 0.4 | 1.3 | ||||||||||||||
Loss on early extinguishment of debt | (1.3 | ) | (1.4 | ) | (1.3 | ) | (1.4 | ) | ||||||||||
Equity earnings in joint ventures | 0.3 | 0.3 | 1.1 | 0.8 | ||||||||||||||
Income (loss) from continuing operations before income taxes | 2.6 | (125.2 | ) | 26.8 | (192.2 | ) | ||||||||||||
Income tax (provision) benefit | — | (5.5 | ) | (6.1 | ) | 8.6 | ||||||||||||
Income (loss) from continuing operations | 2.6 | (130.7 | ) | 20.7 | (183.6 | ) | ||||||||||||
Income from discontinued operations, net of tax | — | 0.7 | — | 80.8 | ||||||||||||||
Loss on disposition of discontinued operations, net of tax | (0.7 | ) | (0.6 | ) | (2.2 | ) | (1.5 | ) | ||||||||||
Income (loss) from discontinued operations, net of tax | (0.7 | ) | 0.1 | (2.2 | ) | 79.3 | ||||||||||||
Net income (loss) | 1.9 | (130.6 | ) | 18.5 | (104.3 | ) | ||||||||||||
Less: Net loss attributable to redeemable noncontrolling interests | — | (25.6 | ) | (0.4 | ) | (31.1 | ) | |||||||||||
Net income (loss) attributable to SPX Corporation common shareholders | $ | 1.9 | $ | (105.0 | ) | $ | 18.9 | $ | (73.2 | ) | ||||||||
Adjustment related to redeemable noncontrolling interest | — | — | (18.1 | ) | — | |||||||||||||
Net income (loss) attributable to SPX Corporation common shareholders after adjustment related to redeemable noncontrolling interest | $ | 1.9 | $ | (105.0 | ) | $ | 0.8 | $ | (73.2 | ) | ||||||||
Amounts attributable to SPX Corporation common shareholders after adjustment related to redeemable noncontrolling interest: | ||||||||||||||||||
Income (loss) from continuing operations, net of tax | $ | 2.6 | $ | (105.1 | ) | $ | 3.0 | $ | (153.4 | ) | ||||||||
Income (loss) from discontinued operations, net of tax | (0.7 | ) | 0.1 | (2.2 | ) | 80.2 | ||||||||||||
Net income (loss) | $ | 1.9 | $ | (105.0 | ) | $ | 0.8 | $ | (73.2 | ) | ||||||||
Basic income (loss) per share of common stock: | ||||||||||||||||||
Income (loss) from continuing operations attributable to SPX Corporation common shareholders after adjustment related to redeemable noncontrolling interest | $ | 0.06 | $ | (2.58 | ) | $ | 0.07 | $ | (3.78 | ) | ||||||||
Income (loss) from discontinued operations attributable to SPX Corporation common shareholders | (0.02 | ) | — | (0.05 | ) | 1.98 | ||||||||||||
Net income (loss) per share attributable to SPX Corporation common shareholders after adjustment related to redeemable noncontrolling interest | $ | 0.04 | $ | (2.58 | ) | $ | 0.02 | $ | (1.80 | ) | ||||||||
Weighted-average number of common shares outstanding — basic | 41.721 | 40.663 | 41.537 | 40.590 | ||||||||||||||
Diluted income (loss) per share of common stock: | ||||||||||||||||||
Income (loss) from continuing operations attributable to SPX Corporation common shareholders after adjustment related to redeemable noncontrolling interest | $ | 0.06 | $ | (2.58 | ) | $ | 0.07 | $ | (3.78 | ) | ||||||||
Income (loss) from discontinued operations attributable to SPX Corporation common shareholders | (0.02 | ) | — | (0.05 | ) | 1.98 | ||||||||||||
Net income (loss) per share attributable to SPX Corporation common shareholders after adjustment related to redeemable noncontrolling interest | $ | 0.04 | $ | (2.58 | ) | $ | 0.02 | $ | (1.80 | ) | ||||||||
Weighted-average number of common shares outstanding — diluted | 42.475 | 40.663 | 41.884 | 40.590 |
SPX CORPORATION AND SUBSIDIARIES | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(Unaudited; in millions) | ||||||||
October 1, | December 31, | |||||||
2016 | 2015 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and equivalents | $ | 83.4 | $ | 101.4 | ||||
Accounts receivable, net | 318.0 | 367.0 | ||||||
Inventories, net | 176.7 | 170.7 | ||||||
Other current assets | 50.7 | 36.1 | ||||||
Assets held for sale | — | 107.1 | ||||||
Total current assets | 628.8 | 782.3 | ||||||
Property, plant and equipment: | ||||||||
Land | 16.4 | 16.3 | ||||||
Buildings and leasehold improvements | 125.2 | 120.4 | ||||||
Machinery and equipment | 359.8 | 357.2 | ||||||
501.4 | 493.9 | |||||||
Accumulated depreciation | (291.3 | ) | (274.4 | ) | ||||
Property, plant and equipment, net | 210.1 | 219.5 | ||||||
Goodwill | 343.7 | 342.8 | ||||||
Intangibles, net | 145.1 | 154.2 | ||||||
Other assets | 45.9 | 629.6 | ||||||
Deferred income taxes | 615.9 | 50.9 | ||||||
TOTAL ASSETS | $ | 1,989.5 | $ | 2,179.3 | ||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 143.3 | $ | 176.9 | ||||
Accrued expenses | 356.4 | 403.7 | ||||||
Income taxes payable | 2.0 | 1.7 | ||||||
Short-term debt | 14.9 | 22.1 | ||||||
Current maturities of long-term debt | 17.9 | 9.1 | ||||||
Liabilities held for sale | — | 41.3 | ||||||
Total current liabilities | 534.5 | 654.8 | ||||||
Long-term debt | 331.2 | 340.6 | ||||||
Deferred and other income taxes | 46.4 | 55.2 | ||||||
Other long-term liabilities | 804.0 | 820.4 | ||||||
Total long-term liabilities | 1,181.6 | 1,216.2 | ||||||
Equity: | ||||||||
SPX Corporation shareholders’ equity: | ||||||||
Common stock | 1.0 | 1.0 | ||||||
Paid-in capital | 2,588.0 | 2,649.6 | ||||||
Retained earnings | 916.7 | 897.8 | ||||||
Accumulated other comprehensive income | 235.4 | 283.3 | ||||||
Common stock in treasury | (3,467.7 | ) | (3,486.3 | ) | ||||
Total SPX Corporation shareholders’ equity | 273.4 | 345.4 | ||||||
Noncontrolling interests | — | (37.1 | ) | |||||
Total equity | 273.4 | 308.3 | ||||||
TOTAL LIABILITIES AND EQUITY | $ | 1,989.5 | $ | 2,179.3 |
SPX CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||||||||||
RESULTS OF REPORTABLE SEGMENTS | ||||||||||||||||||||||||||||||
(Unaudited; in millions) | ||||||||||||||||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||||||||||||||||
October 1, 2016 | September 26, 2015 | Δ | %/bps | October 1, 2016 | September 26, 2015 | Δ | %/bps | |||||||||||||||||||||||
HVAC reportable segment | ||||||||||||||||||||||||||||||
Revenues | $ | 116.9 | $ | 142.7 | $ | (25.8 | ) | (18.1 | )% | $ | 350.4 | $ | 368.7 | $ | (18.3 | ) | (5.0 | )% | ||||||||||||
Gross profit | 37.6 | 45.6 | (8.0 | ) | 118.1 | 112.7 | 5.4 | |||||||||||||||||||||||
Selling, general and administrative expense | 21.9 | 22.0 | (0.1 | ) | 69.2 | 63.0 | 6.2 | |||||||||||||||||||||||
Intangible amortization expense | 0.1 | 0.1 | — | 0.3 | 0.3 | — | ||||||||||||||||||||||||
Income | $ | 15.6 | $ | 23.5 | $ | (7.9 | ) | (33.6 | )% | $ | 48.6 | $ | 49.4 | $ | (0.8 | ) | (1.6 | )% | ||||||||||||
as a percent of revenues | 13.3 | % | 16.5 | % | -320 bps | 13.9 | % | 13.4 | % | 50 bps | ||||||||||||||||||||
Detection & Measurement reportable segment | ||||||||||||||||||||||||||||||
Revenues | $ | 52.3 | $ | 55.9 | $ | (3.6 | ) | (6.4 | )% | $ | 167.8 | $ | 166.0 | $ | 1.8 | 1.1 | % | |||||||||||||
Gross profit | 22.4 | 23.3 | (0.9 | ) | 76.6 | 71.0 | 5.6 | |||||||||||||||||||||||
Selling, general and administrative expense | 14.5 | 14.8 | (0.3 | ) | 45.2 | 43.0 | 2.2 | |||||||||||||||||||||||
Intangible amortization expense | 0.1 | 0.2 | (0.1 | ) | 0.5 | 0.6 | (0.1 | ) | ||||||||||||||||||||||
Income | $ | 7.8 | $ | 8.3 | $ | (0.5 | ) | (6.0 | )% | $ | 30.9 | $ | 27.4 | $ | 3.5 | 12.8 | % | |||||||||||||
as a percent of revenues | 14.9 | % | 14.8 | % | 10 bps | 18.4 | % | 16.5 | % | 190 bps | ||||||||||||||||||||
Power reportable segment | ||||||||||||||||||||||||||||||
Revenues | $ | 216.0 | $ | 175.5 | $ | 40.5 | 23.1 | % | $ | 669.2 | $ | 675.1 | $ | (5.9 | ) | (0.9 | )% | |||||||||||||
Gross profit (loss) | 24.0 | (65.5 | ) | 89.5 | 73.7 | (10.3 | ) | 84.0 | ||||||||||||||||||||||
Selling, general and administrative expense | 25.6 | 30.0 | (4.4 | ) | 81.4 | 93.0 | (11.6 | ) | ||||||||||||||||||||||
Intangible amortization expense | 0.6 | 1.0 | (0.4 | ) | 1.8 | 3.0 | (1.2 | ) | ||||||||||||||||||||||
Loss | $ | (2.2 | ) | $ | (96.5 | ) | $ | 94.3 | 97.7 | % | $ | (9.5 | ) | $ | (106.3 | ) | $ | 96.8 | 91.1 | % | ||||||||||
as a percent of revenues | (1.0 | )% | (55.0 | )% | 5400 bps | (1.4 | )% | (15.7 | )% | 1430 bps | ||||||||||||||||||||
Consolidated Revenues | $ | 385.2 | $ | 374.1 | $ | 11.1 | 3.0 | % | $ | 1,187.4 | $ | 1,209.8 | $ | (22.4 | ) | (1.9 | )% | |||||||||||||
Consolidated Segment Income (Loss) | 21.2 | (64.7 | ) | 85.9 | 132.8 | % | 70.0 | (29.5 | ) | 99.5 | 337.3 | % | ||||||||||||||||||
as a percent of revenues | 5.5 | % | (17.3 | )% | 2280 bps | 5.9 | % | (2.4 | )% | 830 bps | ||||||||||||||||||||
Total income (loss) for reportable segments | $ | 21.2 | $ | (64.7 | ) | $ | 85.9 | $ | 70.0 | $ | (29.5 | ) | $ | 99.5 | ||||||||||||||||
Corporate expense | 9.2 | 27.6 | (18.4 | ) | 28.3 | 84.5 | (56.2 | ) | ||||||||||||||||||||||
Pension and postretirement expense | 0.9 | 7.4 | (6.5 | ) | 4.7 | 8.4 | (3.7 | ) | ||||||||||||||||||||||
Long-term incentive compensation expense | 4.2 | 5.5 | (1.3 | ) | 10.5 | 30.5 | (20.0 | ) | ||||||||||||||||||||||
Impairment of intangible assets | — | — | — | 4.0 | — | 4.0 | ||||||||||||||||||||||||
Special charges, net | 1.5 | 8.4 | (6.9 | ) | 3.8 | 14.0 | (10.2 | ) | ||||||||||||||||||||||
Gain on sale of dry cooling business | 1.7 | — | 1.7 | 18.4 | — | 18.4 | ||||||||||||||||||||||||
Consolidated operating income (loss) | $ | 7.1 | $ | (113.6 | ) | $ | 120.7 | 106.3 | % | $ | 37.1 | $ | (166.9 | ) | $ | 204.0 | 122.2 | % | ||||||||||||
as a percent of revenues | 1.8 | % | (30.4 | )% | 3220 bps | 3.1 | % | (13.8 | )% | 1690 bps |
SPX CORPORATION AND SUBSIDIARIES | ||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||||
(Unaudited; in millions) | ||||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||||
October 1, 2016 | September 26, 2015 | October 1, 2016 | September 26, 2015 | |||||||||||||||
Cash flows used in operating activities: | ||||||||||||||||||
Net income (loss) | $ | 1.9 | $ | (130.6 | ) | $ | 18.5 | $ | (104.3 | ) | ||||||||
Less: Income (loss) from discontinued operations, net of tax | (0.7 | ) | 0.1 | (2.2 | ) | 79.3 | ||||||||||||
Income (loss) from continuing operations | 2.6 | (130.7 | ) | 20.7 | (183.6 | ) | ||||||||||||
Adjustments to reconcile income (loss) from continuing operations to net cash used in operating activities: | ||||||||||||||||||
Special charges, net | 1.5 | 8.4 | 3.8 | 14.0 | ||||||||||||||
Gain on asset sales | — | — | — | (1.2 | ) | |||||||||||||
Gain on sale of dry cooling business | (1.7 | ) | — | (18.4 | ) | — | ||||||||||||
Impairment of intangible assets | — | — | 4.0 | — | ||||||||||||||
Loss on early extinguishment of debt | 1.3 | 1.4 | 1.3 | 1.4 | ||||||||||||||
Deferred and other income taxes | 5.1 | (7.4 | ) | 6.8 | (1.8 | ) | ||||||||||||
Depreciation and amortization | 7.5 | 10.2 | 21.7 | 31.2 | ||||||||||||||
Pension and other employee benefits | 3.3 | 11.6 | 12.0 | 22.9 | ||||||||||||||
Long-term incentive compensation | 4.2 | 5.5 | 10.5 | 30.5 | ||||||||||||||
Other, net | (1.2 | ) | (2.4 | ) | 0.2 | — | ||||||||||||
Changes in operating assets and liabilities, net of effects from divestiture: | ||||||||||||||||||
Accounts receivable and other assets | 19.3 | 36.0 | 45.9 | (55.3 | ) | |||||||||||||
Inventories | 5.5 | (13.4 | ) | (11.9 | ) | (47.4 | ) | |||||||||||
Accounts payable, accrued expenses and other | (51.6 | ) | 57.3 | (133.9 | ) | 27.0 | ||||||||||||
Cash spending on restructuring actions | (1.8 | ) | (2.2 | ) | (6.7 | ) | (6.0 | ) | ||||||||||
Net cash used in continuing operations | (6.0 | ) | (25.7 | ) | (44.0 | ) | (168.3 | ) | ||||||||||
Net cash from (used in) discontinued operations | (0.2 | ) | 11.3 | (1.6 | ) | 54.3 | ||||||||||||
Net cash used in operating activities | (6.2 | ) | (14.4 | ) | (45.6 | ) | (114.0 | ) | ||||||||||
Cash flows from (used in) investing activities: | ||||||||||||||||||
Net proceeds from sale of dry cooling business | 1.7 | — | 47.6 | — | ||||||||||||||
Proceeds from asset sales | — | — | 0.1 | 2.0 | ||||||||||||||
Increase in restricted cash | — | — | (1.7 | ) | — | |||||||||||||
Capital expenditures | (4.1 | ) | (6.0 | ) | (8.4 | ) | (12.8 | ) | ||||||||||
Net cash from (used in) continuing operations | (2.4 | ) | (6.0 | ) | 37.6 | (10.8 | ) | |||||||||||
Net cash used in discontinued operations | — | (17.2 | ) | — | (38.3 | ) | ||||||||||||
Net cash from (used in) investing activities | (2.4 | ) | (23.2 | ) | 37.6 | (49.1 | ) | |||||||||||
Cash flows used in financing activities: | ||||||||||||||||||
Borrowings under senior credit facilities | — | 910.0 | 56.2 | 1,235.0 | ||||||||||||||
Repayments under senior credit facilities | (4.4 | ) | (913.8 | ) | (60.6 | ) | (1,138.0 | ) | ||||||||||
Borrowings under trade receivables financing arrangement | 15.2 | 59.0 | 44.0 | 154.0 | ||||||||||||||
Repayments under trade receivables financing arrangement | (15.2 | ) | (34.0 | ) | (44.0 | ) | (122.0 | ) | ||||||||||
Net borrowings (repayments) under other financing arrangements | (6.5 | ) | 6.5 | (7.1 | ) | 4.5 | ||||||||||||
Minimum withholdings paid on behalf of employees for net share settlements, net of proceeds from the exercise of employee stock options and other | — | (0.6 | ) | (1.6 | ) | (5.9 | ) | |||||||||||
Financing fees paid | — | (12.2 | ) | — | (12.2 | ) | ||||||||||||
Dividends paid | — | — | — | (30.6 | ) | |||||||||||||
Cash divested in connection with spin-off of FLOW Business | — | (207.1 | ) | — | (207.1 | ) | ||||||||||||
Net cash used in continuing operations | (10.9 | ) | (192.2 | ) | (13.1 | ) | (122.3 | ) | ||||||||||
Net cash used in discontinued operations | — | (1.6 | ) | — | (1.9 | ) | ||||||||||||
Net cash used in financing activities | (10.9 | ) | (193.8 | ) | (13.1 | ) | (124.2 | ) | ||||||||||
Change in cash and equivalents due to changes in foreign currency exchange rates | 0.9 | (15.0 | ) | 3.1 | (57.8 | ) | ||||||||||||
Net change in cash and equivalents | (18.6 | ) | (246.4 | ) | (18.0 | ) | (345.1 | ) | ||||||||||
Consolidated cash and equivalents, beginning of period | 102.0 | 328.9 | 101.4 | 427.6 | ||||||||||||||
Consolidated cash and equivalents, end of period | $ | 83.4 | $ | 82.5 | $ | 83.4 | $ | 82.5 |
SPX CORPORATION AND SUBSIDIARIES | ||||
CASH AND DEBT RECONCILIATION | ||||
(Unaudited; in millions) | ||||
Nine months ended | ||||
October 1, 2016 | ||||
Beginning cash and equivalents | $ | 101.4 | ||
Cash used in continuing operations | (44.0 | ) | ||
Net proceeds from sale of dry cooling business and other | 47.7 | |||
Increase in restricted cash | (1.7 | ) | ||
Capital expenditures | (8.4 | ) | ||
Borrowings under senior credit facilities | 56.2 | |||
Repayments under senior credit facilities | (60.6 | ) | ||
Net borrowings under other financing arrangements | (7.1 | ) | ||
Minimum withholdings paid on behalf of employees for net share settlements and other | (1.6 | ) | ||
Cash used in discontinued operations | (1.6 | ) | ||
Change in cash due to changes in foreign currency exchange rates | 3.1 | |||
Ending cash and equivalents | $ | 83.4 |
Debt at | Debt at | |||||||||||||||||||
December 31, 2015 | Borrowings | Repayments | Other | October 1, 2016 | ||||||||||||||||
Domestic revolving loan facility | $ | — | $ | 56.2 | $ | (56.2 | ) | $ | — | $ | — | |||||||||
Term loan | 350.0 | — | (4.4 | ) | — | 345.6 | ||||||||||||||
Trade receivables financing arrangement | — | 44.0 | (44.0 | ) | — | — | ||||||||||||||
Other indebtedness | 23.8 | 19.5 | (26.6 | ) | 3.4 | 20.1 | ||||||||||||||
Less: Deferred financing costs associated with the Term loan | (2.0 | ) | — | — | 0.3 | (1.7 | ) | |||||||||||||
Totals | $ | 371.8 | $ | 119.7 | $ | (131.2 | ) | $ | 3.7 | $ | 364.0 |
SPX CORPORATION AND SUBSIDIARIES | ||||||||
NON-GAAP RECONCILIATION - ORGANIC REVENUE | ||||||||
HVAC AND DETECTION & MEASUREMENT SEGMENTS | ||||||||
(Unaudited) | ||||||||
Three months ended October 1, 2016 | ||||||||
HVAC | Detection & Measurement | |||||||
Net Revenue Decline | (18.1 | ) | % | (6.4 | ) | % | ||
Exclude: Foreign Currency | (1.3 | ) | % | (2.9 | ) | % | ||
Organic Revenue Decline | (16.8 | ) | % | (3.5 | ) | % |
SPX CORPORATION AND SUBSIDIARIES | |||
NON-GAAP RECONCILIATION - BASE POWER ORGANIC REVENUE | |||
(Unaudited) | |||
Three months ended October 1, 2016 | |||
Net Revenue Growth Power Segment | 23.1 | % | |
Adjustment to Exclude South African projects | 33.2 | % | |
Base Power Revenue Decline | (10.1 | ) | % |
Exclude: Foreign Currency | (0.6 | ) | % |
Exclude: Effects of Disposition of Dry Cooling Business | (9.5 | ) | % |
Base Power Organic Revenue Increase | — | % |
SPX CORPORATION AND SUBSIDIARIES | ||||||||||||||||
NON-GAAP RECONCILIATION - REVENUE AND SEGMENT INCOME | ||||||||||||||||
(Unaudited; in millions) | ||||||||||||||||
CONSOLIDATED SPX: | Three months ended | Nine months ended | ||||||||||||||
October 1, 2016 | September 26, 2015 | October 1, 2016 | September 26, 2015 | |||||||||||||
Consolidated revenue | $ | 385.2 | $ | 374.1 | $ | 1,187.4 | $ | 1,209.8 | ||||||||
Exclude: South African projects | 25.4 | (36.4 | ) | 65.5 | 4.0 | |||||||||||
Core revenue | $ | 359.8 | $ | 410.5 | $ | 1,121.9 | $ | 1,205.8 | ||||||||
Total segment income (loss) | $ | 21.2 | $ | (64.7 | ) | $ | 70.0 | $ | (29.5 | ) | ||||||
Exclude: South African projects | (3.5 | ) | (98.2 | ) | (9.8 | ) | (114.9 | ) | ||||||||
Core segment income | $ | 24.7 | $ | 33.5 | $ | 79.8 | $ | 85.4 | ||||||||
as a percent of Core revenues (1) | 6.9 | % | 8.2 | % | 7.1 | % | 7.1 | % | ||||||||
POWER SEGMENT: | Three months ended | |||||||||||||||
October 1, 2016 | September 26, 2015 | |||||||||||||||
Power revenue | $ | 216.0 | $ | 175.5 | ||||||||||||
Exclude: South African projects | 25.4 | (36.4 | ) | |||||||||||||
Base Power revenue | $ | 190.6 | $ | 211.9 | ||||||||||||
Power Segment loss | $ | (2.2 | ) | $ | (96.5 | ) | ||||||||||
Exclude: South African projects | (3.5 | ) | (98.2 | ) | ||||||||||||
Base Power income | $ | 1.3 | $ | 1.7 | ||||||||||||
as a percent of Base Power revenues (1) | 0.7 | % | 0.8 | % | ||||||||||||
(1) See "Results of Reportable Segments" for applicable percentages based on GAAP results. |
SPX CORPORATION AND SUBSIDIARIES | ||||||||||||||||
NON-GAAP RECONCILIATION - OPERATING INCOME | ||||||||||||||||
(Unaudited; in millions) | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
October 1, 2016 | September 26, 2015 | October 1, 2016 | September 26, 2015 | |||||||||||||
Operating income (loss) | $ | 7.1 | $ | (113.6 | ) | $ | 37.1 | $ | (166.9 | ) | ||||||
Adjustments: | ||||||||||||||||
South African projects | 3.5 | 98.2 | 9.8 | 114.9 | ||||||||||||
Non-service pension and postretirement items | 1.1 | 6.4 | 5.1 | 4.0 | ||||||||||||
Certain corporate expenses (1) | — | 20.9 | — | 76.2 | ||||||||||||
Spin-related costs (2) | — | 2.3 | — | 2.3 | ||||||||||||
Gain on sale of Dry Cooling | (1.7 | ) | — | (18.4 | ) | — | ||||||||||
Non-cash impairment of intangible assets | — | — | 4.0 | — | ||||||||||||
Adjusted operating income | $ | 10.0 | $ | 14.2 | $ | 37.6 | $ | 30.5 | ||||||||
as a percent of Core revenues (3) | 2.8 | % | 3.5 | % | 3.4 | % | 2.5 | % | ||||||||
______________________________ | ||||||||||||||||
(1) Represents an estimate of the corporate costs related to the support provided to SPX Flow. These costs were eliminated in connection with the spin-off. | ||||||||||||||||
(2) Represents non-recurring charges incurred in connection with the spin-off. | ||||||||||||||||
(3) 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 October 1, 2016 | |||||||||||
(Unaudited; in millions, except per share values) | |||||||||||
GAAP | Adjustments | Adjusted | |||||||||
Segment income | $ | 21.2 | $ | 3.5 | $ | 24.7 | |||||
Corporate expense | (9.2 | ) | — | (9.2 | ) | ||||||
Pension and postretirement income (expense) | (0.9 | ) | 1.1 | 0.2 | |||||||
Long-term incentive compensation expense | (4.2 | ) | — | (4.2 | ) | ||||||
Special charges, net | (1.5 | ) | — | (1.5 | ) | ||||||
Gain on sale of dry cooling business | 1.7 | (1.7 | ) | — | |||||||
Operating income | 7.1 | 2.9 | 10.0 | ||||||||
Other income, net (1) | 0.3 | 0.5 | 0.8 | ||||||||
Interest expense, net | (3.8 | ) | — | (3.8 | ) | ||||||
Loss on early extinguishment of debt | (1.3 | ) | 1.3 | — | |||||||
Equity earnings in joint ventures | 0.3 | — | 0.3 | ||||||||
Income from continuing operations before income taxes | 2.6 | 4.7 | 7.3 | ||||||||
Income tax provision | — | (1.5 | ) | (1.5 | ) | ||||||
Income from continuing operations | 2.6 | 3.2 | 5.8 | ||||||||
Dilutive shares outstanding | 42.475 | 42.475 | |||||||||
Earnings per share from continuing operations | $ | 0.06 | $ | 0.14 | |||||||
(1) Adjustment represents removal of foreign currency losses associated with the South African projects. |
SPX CORPORATION AND SUBSIDIARIES | ||||
NON-GAAP RECONCILIATION - FREE CASH FLOW | ||||
(Unaudited; in millions) | ||||
Three months ended | ||||
October 1, 2016 | ||||
Net cash used in continuing operations | $ | (6.0 | ) | |
Capital expenditures - continuing operations | (4.1 | ) | ||
Free cash flow used in continuing operations | $ | (10.1 | ) |