Delaware | 1-6948 | 38-1016240 | ||
(State or other jurisdiction | (Commission | (IRS Employer | ||
of incorporation) | File Number) | Identification No.) |
Exhibit Number | Description | |
99.1 | Press Release issued February 23, 2017, furnished solely pursuant to Item 2.02 of Form 8-K |
SPX CORPORATION | ||
(Registrant) | ||
Date: February 23, 2017 | By: | /s/ Scott W. Sproule |
Scott W. Sproule | ||
Vice President, Chief Financial Officer and Treasurer |
Exhibit Number | Description | |
99.1 | Press Release issued February 23, 2017, furnished solely pursuant to Item 2.02 of Form 8-K |
($ millions) | Q4 2016 | Q4 2015 | FY 2016 | FY 2015 | ||||||||||||
Revenue | $395.3 | $468.4 | $1,472.3 | $1,559.0 | ||||||||||||
Segment Income | 54.8 | 57.4 | 142.8 | 38.8 | ||||||||||||
Operating Income (Loss) | 1.8 | 25.7 | 55.0 | (122.2) |
($ millions) | Q4 2016 | Q4 2015 | FY 2016 | FY 2015 | ||||||||||||
Core Revenue* | $377.5 | $445.1 | $1,389.0 | $1,531.7 | ||||||||||||
Core Segment Income* | 59.5 | 63.0 | 157.3 | 159.3 | ||||||||||||
Adjusted Operating Income* | 43.6 | 46.9 | 97.2 | 97.0 |
Revenue | Segment Income Margin % | ||
HVAC | Organic growth at the lower end of our long-term target range of 2-4%, with variability driven primarily by winter heating demand | Approximately 16% | |
Detection & Measurement | Organic growth around midpoint of long-term target range of 2-6%, with variability driven primarily by timing of project-related revenue | 21-22% | |
Engineered Solutions (Core)* | Organic decline in mid-single digit %, with flat Transformer revenues and more selective market participation in Process Cooling | Approximately 6-7% |
SPX CORPORATION AND SUBSIDIARIES | |||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
(Unaudited; in millions, except per share amounts) | |||||||||||||||
Three months ended December 31, | Twelve months ended December 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Revenues | $ | 395.3 | $ | 468.4 | $ | 1,472.3 | $ | 1,559.0 | |||||||
Costs and expenses: | |||||||||||||||
Cost of products sold | 281.3 | 346.9 | 1,096.5 | 1,283.1 | |||||||||||
Selling, general and administrative | 85.4 | 94.0 | 301.0 | 387.8 | |||||||||||
Intangible amortization | 0.2 | 1.3 | 2.8 | 5.2 | |||||||||||
Impairment of intangible assets | 26.1 | — | 30.1 | — | |||||||||||
Special charges, net | 0.5 | 0.5 | 5.3 | 5.1 | |||||||||||
Gain on sale of dry cooling business | — | — | 18.4 | — | |||||||||||
Operating income (loss) | 1.8 | 25.7 | 55.0 | (122.2 | ) | ||||||||||
Other expense, net | (2.5 | ) | (4.2 | ) | (0.3 | ) | (10.0 | ) | |||||||
Interest expense | (3.7 | ) | (3.5 | ) | (14.8 | ) | (22.0 | ) | |||||||
Interest income | 0.4 | — | 0.8 | 1.3 | |||||||||||
Loss on early extinguishment of debt | — | — | (1.3 | ) | (1.4 | ) | |||||||||
Income (loss) from continuing operations before income taxes | (4.0 | ) | 18.0 | 39.4 | (154.3 | ) | |||||||||
Income tax (provision) benefit | 1.0 | (1.6 | ) | (9.1 | ) | 2.7 | |||||||||
Income (loss) from continuing operations | (3.0 | ) | 16.4 | 30.3 | (151.6 | ) | |||||||||
Income (loss) from discontinued operations, net of tax | (4.0 | ) | (25.4 | ) | (16.6 | ) | 39.8 | ||||||||
Loss on disposition of discontinued operations, net of tax | (79.1 | ) | (3.7 | ) | (81.3 | ) | (5.2 | ) | |||||||
Income (loss) from discontinued operations, net of tax | (83.1 | ) | (29.1 | ) | (97.9 | ) | 34.6 | ||||||||
Net loss | (86.1 | ) | (12.7 | ) | (67.6 | ) | (117.0 | ) | |||||||
Less: Net loss attributable to noncontrolling interests | — | (3.2 | ) | (0.4 | ) | (34.3 | ) | ||||||||
Net loss attributable to SPX Corporation common shareholders | $ | (86.1 | ) | $ | (9.5 | ) | $ | (67.2 | ) | $ | (82.7 | ) | |||
Adjustment related to redeemable noncontrolling interest | — | — | (18.1 | ) | — | ||||||||||
Net loss attributable to SPX Corporation common shareholders after adjustment related to redeemable noncontrolling interest | $ | (86.1 | ) | $ | (9.5 | ) | $ | (85.3 | ) | $ | (82.7 | ) | |||
Amounts attributable to SPX Corporation common shareholders after adjustment related to redeemable noncontrolling interest: | |||||||||||||||
Income (loss) from continuing operations, net of tax | $ | (3.0 | ) | $ | 19.6 | $ | 12.6 | $ | (118.2 | ) | |||||
Income (loss) from discontinued operations, net of tax | (83.1 | ) | (29.1 | ) | (97.9 | ) | 35.5 | ||||||||
Net loss | $ | (86.1 | ) | $ | (9.5 | ) | $ | (85.3 | ) | $ | (82.7 | ) | |||
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 | $ | (0.07 | ) | $ | 0.48 | $ | 0.30 | $ | (2.90 | ) | |||||
Income (loss) from discontinued operations attributable to SPX Corporation common shareholders | (1.99 | ) | (0.71 | ) | (2.35 | ) | 0.87 | ||||||||
Net loss per share attributable to SPX Corporation common shareholders after adjustment related to redeemable noncontrolling interest | $ | (2.06 | ) | $ | (0.23 | ) | $ | (2.05 | ) | $ | (2.03 | ) | |||
Weighted-average number of common shares outstanding — basic | 41.828 | 41.156 | 41.610 | 40.733 | |||||||||||
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 | $ | (0.07 | ) | $ | 0.47 | $ | 0.30 | $ | (2.90 | ) | |||||
Income (loss) from discontinued operations attributable to SPX Corporation common shareholders | (1.99 | ) | (0.70 | ) | (2.32 | ) | 0.87 | ||||||||
Net loss per share attributable to SPX Corporation common shareholders after adjustment related to redeemable noncontrolling interest | $ | (2.06 | ) | $ | (0.23 | ) | $ | (2.02 | ) | $ | (2.03 | ) | |||
Weighted-average number of common shares outstanding — diluted | 41.828 | 41.615 | 42.161 | 40.733 |
SPX CORPORATION AND SUBSIDIARIES | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(Unaudited; in millions) | ||||||||
December 31, | December 31, | |||||||
2016 | 2015 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and equivalents | $ | 99.6 | $ | 97.2 | ||||
Accounts receivable, net | 251.7 | 305.1 | ||||||
Inventories, net | 145.7 | 161.3 | ||||||
Other current assets | 30.6 | 27.4 | ||||||
Assets held for sale | — | 107.1 | ||||||
Assets of discontinued operations | — | 84.2 | ||||||
Total current assets | 527.6 | 782.3 | ||||||
Property, plant and equipment: | ||||||||
Land | 15.4 | 15.3 | ||||||
Buildings and leasehold improvements | 117.3 | 113.0 | ||||||
Machinery and equipment | 329.8 | 328.8 | ||||||
462.5 | 457.1 | |||||||
Accumulated depreciation | (267.0 | ) | (251.8 | ) | ||||
Property, plant and equipment, net | 195.5 | 205.3 | ||||||
Goodwill | 340.4 | 342.8 | ||||||
Intangibles, net | 117.9 | 154.2 | ||||||
Other assets | 680.5 | 627.6 | ||||||
Deferred income taxes | 50.6 | 31.3 | ||||||
Assets of discontinued operations | — | 35.8 | ||||||
TOTAL ASSETS | $ | 1,912.5 | $ | 2,179.3 | ||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 137.6 | $ | 157.0 | ||||
Accrued expenses | 304.3 | 349.8 | ||||||
Income taxes payable | 1.7 | 1.6 | ||||||
Short-term debt | 14.8 | 22.1 | ||||||
Current maturities of long-term debt | 17.9 | 9.1 | ||||||
Liabilities held for sale | — | 41.3 | ||||||
Liabilities of discontinued operations | — | 73.9 | ||||||
Total current liabilities | 476.3 | 654.8 | ||||||
Long-term debt | 323.5 | 340.6 | ||||||
Deferred and other income taxes | 42.4 | 39.7 | ||||||
Other long-term liabilities | 878.7 | 811.9 | ||||||
Liabilities of discontinued operations | — | 24.0 | ||||||
Total long-term liabilities | 1,244.6 | 1,216.2 | ||||||
Equity: | ||||||||
SPX Corporation shareholders’ equity: | ||||||||
Common stock | 0.5 | 1.0 | ||||||
Paid-in capital | 1,307.9 | 2,649.6 | ||||||
Retained earnings (deficit) | (831.6 | ) | 897.8 | |||||
Accumulated other comprehensive income | 235.1 | 283.3 | ||||||
Common stock in treasury | (520.3 | ) | (3,486.3 | ) | ||||
Total SPX Corporation shareholders’ equity | 191.6 | 345.4 | ||||||
Noncontrolling interests | — | (37.1 | ) | |||||
Total equity | 191.6 | 308.3 | ||||||
TOTAL LIABILITIES AND EQUITY | $ | 1,912.5 | $ | 2,179.3 |
SPX CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||||||||||
RESULTS OF REPORTABLE SEGMENTS | ||||||||||||||||||||||||||||||
(Unaudited; in millions) | ||||||||||||||||||||||||||||||
Three months ended | Twelve months ended | |||||||||||||||||||||||||||||
December 31, 2016 | December 31, 2015 | Δ | %/bps | December 31, 2016 | December 31, 2015 | Δ | %/bps | |||||||||||||||||||||||
HVAC reportable segment | ||||||||||||||||||||||||||||||
Revenues | $ | 159.1 | $ | 160.4 | $ | (1.3 | ) | (0.8 | )% | $ | 509.5 | $ | 529.1 | $ | (19.6 | ) | (3.7 | )% | ||||||||||||
Gross profit | 54.8 | 51.9 | 2.9 | 172.9 | 164.6 | 8.3 | ||||||||||||||||||||||||
Selling, general and administrative expense | 23.1 | 21.0 | 2.1 | 92.3 | 84.0 | 8.3 | ||||||||||||||||||||||||
Intangible amortization expense | 0.1 | 0.1 | — | 0.4 | 0.4 | — | ||||||||||||||||||||||||
Income | $ | 31.6 | $ | 30.8 | $ | 0.8 | 2.6 | % | $ | 80.2 | $ | 80.2 | $ | — | — | % | ||||||||||||||
as a percent of revenues | 19.9 | % | 19.2 | % | 70 bps | 15.7 | % | 15.2 | % | 50 bps | ||||||||||||||||||||
Detection & Measurement reportable segment | ||||||||||||||||||||||||||||||
Revenues | $ | 58.6 | $ | 66.3 | $ | (7.7 | ) | (11.6 | )% | $ | 226.4 | $ | 232.3 | $ | (5.9 | ) | (2.5 | )% | ||||||||||||
Gross profit | 28.4 | 35.0 | (6.6 | ) | 105.0 | 106.0 | (1.0 | ) | ||||||||||||||||||||||
Selling, general and administrative expense | 13.9 | 16.2 | (2.3 | ) | 59.1 | 59.2 | (0.1 | ) | ||||||||||||||||||||||
Intangible amortization expense | 0.1 | 0.2 | (0.1 | ) | 0.6 | 0.8 | (0.2 | ) | ||||||||||||||||||||||
Income | $ | 14.4 | $ | 18.6 | $ | (4.2 | ) | (22.6 | )% | $ | 45.3 | $ | 46.0 | $ | (0.7 | ) | (1.5 | )% | ||||||||||||
as a percent of revenues | 24.6 | % | 28.1 | % | -350 bps | 20.0 | % | 19.8 | % | 20 bps | ||||||||||||||||||||
Engineered Solutions reportable segment | ||||||||||||||||||||||||||||||
Revenues | $ | 177.6 | $ | 241.7 | $ | (64.1 | ) | (26.5 | )% | $ | 736.4 | $ | 797.6 | $ | (61.2 | ) | (7.7 | )% | ||||||||||||
Gross profit | 30.8 | 31.6 | (0.8 | ) | 97.7 | 2.3 | 95.4 | |||||||||||||||||||||||
Selling, general and administrative expense | 22.0 | 22.6 | (0.6 | ) | 78.6 | 85.7 | (7.1 | ) | ||||||||||||||||||||||
Intangible amortization expense | — | 1.0 | (1.0 | ) | 1.8 | 4.0 | (2.2 | ) | ||||||||||||||||||||||
Income (loss) | $ | 8.8 | $ | 8.0 | $ | 0.8 | 10.0 | % | $ | 17.3 | $ | (87.4 | ) | $ | 104.7 | 119.8 | % | |||||||||||||
as a percent of revenues | 5.0 | % | 3.3 | % | 170 bps | 2.3 | % | (11.0 | )% | 1330 bps | ||||||||||||||||||||
Consolidated Revenues | $ | 395.3 | $ | 468.4 | $ | (73.1 | ) | (15.6 | )% | $ | 1,472.3 | $ | 1,559.0 | $ | (86.7 | ) | (5.6 | )% | ||||||||||||
Consolidated Segment Income | 54.8 | 57.4 | (2.6 | ) | (4.5 | )% | 142.8 | 38.8 | 104.0 | 268.0 | % | |||||||||||||||||||
as a percent of revenues | 13.9 | % | 12.3 | % | 160 bps | 9.7 | % | 2.5 | % | 720 bps | ||||||||||||||||||||
Total income for reportable segments | $ | 54.8 | $ | 57.4 | $ | (2.6 | ) | $ | 142.8 | $ | 38.8 | $ | 104.0 | |||||||||||||||||
Corporate expense | 12.1 | 16.9 | (4.8 | ) | 41.7 | 103.4 | (61.7 | ) | ||||||||||||||||||||||
Pension and postretirement expense | 10.8 | 10.4 | 0.4 | 15.4 | 18.6 | (3.2 | ) | |||||||||||||||||||||||
Long-term incentive compensation expense | 3.5 | 3.9 | (0.4 | ) | 13.7 | 33.9 | (20.2 | ) | ||||||||||||||||||||||
Impairment of intangible assets | 26.1 | — | 26.1 | 30.1 | — | 30.1 | ||||||||||||||||||||||||
Special charges, net | 0.5 | 0.5 | — | 5.3 | 5.1 | 0.2 | ||||||||||||||||||||||||
Gain on sale of dry cooling business | — | — | — | 18.4 | — | 18.4 | ||||||||||||||||||||||||
Consolidated operating income (loss) | $ | 1.8 | $ | 25.7 | $ | (23.9 | ) | (93.0 | )% | $ | 55.0 | $ | (122.2 | ) | $ | 177.2 | 145.0 | % | ||||||||||||
as a percent of revenues | 0.5 | % | 5.5 | % | -500 bps | 3.7 | % | (7.8 | )% | 1150 bps |
SPX CORPORATION AND SUBSIDIARIES | ||||||||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||||
(Unaudited; in millions) | ||||||||||||||||||
Three months ended | Twelve months ended | |||||||||||||||||
December 31, 2016 | December 31, 2015 | December 31, 2016 | December 31, 2015 | |||||||||||||||
Cash flows from (used in) operating activities: | ||||||||||||||||||
Net loss | $ | (86.1 | ) | $ | (12.7 | ) | $ | (67.6 | ) | $ | (117.0 | ) | ||||||
Less: Income (loss) from discontinued operations, net of tax | (83.1 | ) | (29.1 | ) | (97.9 | ) | 34.6 | |||||||||||
Income (loss) from continuing operations | (3.0 | ) | 16.4 | 30.3 | (151.6 | ) | ||||||||||||
Adjustments to reconcile income (loss) from continuing operations to net cash from (used in) operating activities: | ||||||||||||||||||
Special charges, net | 0.5 | 0.5 | 5.3 | 5.1 | ||||||||||||||
Gain on asset sales | (0.9 | ) | — | (0.9 | ) | (1.2 | ) | |||||||||||
Gain on sale of dry cooling business | — | — | (18.4 | ) | — | |||||||||||||
Impairment of intangible assets | 26.1 | — | 30.1 | — | ||||||||||||||
Loss on early extinguishment of debt | — | — | 1.3 | 1.4 | ||||||||||||||
Deferred and other income taxes | (6.8 | ) | 2.4 | — | 4.9 | |||||||||||||
Depreciation and amortization | 6.3 | 7.5 | 26.5 | 37.0 | ||||||||||||||
Pension and other employee benefits | 12.9 | 12.5 | 24.8 | 35.2 | ||||||||||||||
Long-term incentive compensation | 3.5 | 3.9 | 13.7 | 33.9 | ||||||||||||||
Other, net | 3.0 | 3.9 | 3.2 | 3.8 | ||||||||||||||
Changes in operating assets and liabilities, net of effects from divestitures: | ||||||||||||||||||
Accounts receivable and other assets | (82.5 | ) | 65.5 | (28.7 | ) | (6.9 | ) | |||||||||||
Inventories | 19.7 | 21.9 | 8.5 | (21.2 | ) | |||||||||||||
Accounts payable, accrued expenses and other | 86.2 | (63.8 | ) | (40.2 | ) | (11.3 | ) | |||||||||||
Cash spending on restructuring actions | (0.3 | ) | (1.2 | ) | (2.1 | ) | (5.1 | ) | ||||||||||
Net cash from (used in) continuing operations | 64.7 | 69.5 | 53.4 | (76.0 | ) | |||||||||||||
Net cash from (used in) discontinued operations | (12.6 | ) | (9.3 | ) | (46.9 | ) | 37.5 | |||||||||||
Net cash from (used in) operating activities | 52.1 | 60.2 | 6.5 | (38.5 | ) | |||||||||||||
Cash flows from (used in) investing activities: | ||||||||||||||||||
Proceeds from asset sales and other, net | 0.4 | — | 48.1 | 2.0 | ||||||||||||||
Capital expenditures | (3.9 | ) | (4.0 | ) | (11.7 | ) | (16.0 | ) | ||||||||||
Net cash from (used in) continuing operations | (3.5 | ) | (4.0 | ) | 36.4 | (14.0 | ) | |||||||||||
Net cash used in discontinued operations | (28.6 | ) | (1.1 | ) | (30.9 | ) | (40.2 | ) | ||||||||||
Net cash from (used in) investing activities | (32.1 | ) | (5.1 | ) | 5.5 | (54.2 | ) | |||||||||||
Cash flows used in financing activities: | ||||||||||||||||||
Borrowings under senior credit facilities | — | 29.0 | 56.2 | 1,264.0 | ||||||||||||||
Repayments under senior credit facilities | (4.4 | ) | (29.0 | ) | (65.0 | ) | (1,167.0 | ) | ||||||||||
Borrowings under trade receivables agreement | 28.0 | 2.0 | 72.0 | 156.0 | ||||||||||||||
Repayments under trade receivables agreement | (28.0 | ) | (44.0 | ) | (72.0 | ) | (166.0 | ) | ||||||||||
Net borrowings (repayments) under other financing arrangements | (3.0 | ) | 7.7 | (10.1 | ) | 12.2 | ||||||||||||
Minimum withholdings paid on behalf of employees for net share settlements, net of proceeds from the exercise of employee stock options and other | — | (0.3 | ) | (1.6 | ) | (6.2 | ) | |||||||||||
Financing fees paid | — | — | — | (12.2 | ) | |||||||||||||
Dividends paid | — | — | — | (45.9 | ) | |||||||||||||
Cash divested in connection with the spin-off of FLOW Business | — | (1.5 | ) | — | (208.6 | ) | ||||||||||||
Net cash used in continuing operations | (7.4 | ) | (36.1 | ) | (20.5 | ) | (173.7 | ) | ||||||||||
Net cash used in discontinued operations | — | — | — | (1.9 | ) | |||||||||||||
Net cash used in financing activities | (7.4 | ) | (36.1 | ) | (20.5 | ) | (175.6 | ) | ||||||||||
Change in cash and equivalents due to changes in foreign currency exchange rates | 3.6 | (0.1 | ) | 6.7 | (57.9 | ) | ||||||||||||
Net change in cash and equivalents | 16.2 | 18.9 | (1.8 | ) | (326.2 | ) | ||||||||||||
Consolidated cash and equivalents, beginning of period | 83.4 | 82.5 | 101.4 | 427.6 | ||||||||||||||
Consolidated cash and equivalents, end of period | $ | 99.6 | $ | 101.4 | $ | 99.6 | $ | 101.4 | ||||||||||
Cash and equivalents of continuing operations | $ | 99.6 | $ | 97.2 | $ | 99.6 | $ | 97.2 |
SPX CORPORATION AND SUBSIDIARIES | ||||||||||||
CASH AND DEBT RECONCILIATION | ||||||||||||
(Unaudited; in millions) | ||||||||||||
Twelve months ended | ||||||||||||
December 31, 2016 | ||||||||||||
Beginning cash and equivalents | $ | 101.4 | ||||||||||
Cash from continuing operations | 53.4 | |||||||||||
Net proceeds from sale of dry cooling business and other | 48.1 | |||||||||||
Capital expenditures | (11.7 | ) | ||||||||||
Borrowings under senior credit facilities | 56.2 | |||||||||||
Repayments under senior credit facilities | (65.0 | ) | ||||||||||
Net repayments under other financing arrangements | (10.1 | ) | ||||||||||
Minimum withholdings paid on behalf of employees for net share settlements and other | (1.6 | ) | ||||||||||
Cash used in discontinued operations | (77.8 | ) | ||||||||||
Change in cash due to changes in foreign currency exchange rates | 6.7 | |||||||||||
Ending cash and equivalents | $ | 99.6 |
Debt at | Debt at | |||||||||||||||||||
December 31, 2015 | Borrowings | Repayments | Other | December 31, 2016 | ||||||||||||||||
Domestic revolving loan facility | $ | — | $ | 56.2 | $ | (56.2 | ) | $ | — | $ | — | |||||||||
Term loan | 350.0 | — | (8.8 | ) | — | 341.2 | ||||||||||||||
Trade receivables financing arrangement | — | 72.0 | (72.0 | ) | — | — | ||||||||||||||
Other indebtedness | 23.8 | 33.5 | (43.6 | ) | 2.9 | 16.6 | ||||||||||||||
Less: Deferred financing costs associated with the Term loan | (2.0 | ) | — | — | 0.4 | (1.6 | ) | |||||||||||||
Totals | $ | 371.8 | $ | 161.7 | $ | (180.6 | ) | $ | 3.3 | $ | 356.2 |
SPX CORPORATION AND SUBSIDIARIES | ||||||||
NON-GAAP RECONCILIATION - ORGANIC REVENUE | ||||||||
HVAC AND DETECTION & MEASUREMENT SEGMENTS | ||||||||
(Unaudited) | ||||||||
Three months ended December 31, 2016 | ||||||||
HVAC | Detection & Measurement | |||||||
Net Revenue Decline | (0.8 | ) | % | (11.6 | ) | % | ||
Exclude: Foreign Currency | (1.5 | ) | % | (3.0 | ) | % | ||
Organic Revenue Growth (Decline) | 0.7 | % | (8.6 | ) | % |
SPX CORPORATION AND SUBSIDIARIES | |||
NON-GAAP RECONCILIATION - ENGINEERED SOLUTIONS (CORE) ORGANIC REVENUE | |||
(Unaudited) | |||
Three months ended December 31, 2016 | |||
Engineered Solutions Segment Net Revenue Decline | (26.5 | ) | % |
Adjustment to Exclude South African projects | 0.3 | % | |
Engineered Solutions (Core) Revenue Decline | (26.8 | ) | % |
Exclude: Foreign Currency | — | % | |
Exclude: Effects of Disposition of Dry Cooling Business | (8.4 | ) | % |
Engineered Solutions (Core) Organic Revenue Decline | (18.4 | ) | % |
SPX CORPORATION AND SUBSIDIARIES | ||||||||||||||||
NON-GAAP RECONCILIATION - REVENUE AND SEGMENT INCOME | ||||||||||||||||
(Unaudited; in millions) | ||||||||||||||||
CONSOLIDATED SPX: | Three months ended | Twelve months ended | ||||||||||||||
December 31, 2016 | December 31, 2015 | December 31, 2016 | December 31, 2015 | |||||||||||||
Consolidated revenue | $ | 395.3 | $ | 468.4 | $ | 1,472.3 | $ | 1,559.0 | ||||||||
Exclude: South African projects | 17.8 | 23.3 | 83.3 | 27.3 | ||||||||||||
Core revenue | $ | 377.5 | $ | 445.1 | $ | 1,389.0 | $ | 1,531.7 | ||||||||
Total segment income | $ | 54.8 | $ | 57.4 | $ | 142.8 | $ | 38.8 | ||||||||
Exclude: South African projects | (4.7 | ) | (5.6 | ) | (14.5 | ) | (120.5 | ) | ||||||||
Core segment income | $ | 59.5 | $ | 63.0 | $ | 157.3 | $ | 159.3 | ||||||||
as a percent of Core revenues (1) | 15.8 | % | 14.2 | % | 11.3 | % | 10.4 | % | ||||||||
ENGINEERED SOLUTIONS SEGMENT: | Three months ended | Twelve months ended | ||||||||||||||
December 31, 2016 | December 31, 2015 | December 31, 2016 | December 31, 2015 | |||||||||||||
Engineered Solutions revenue | $ | 177.6 | $ | 241.7 | $ | 736.4 | $ | 797.6 | ||||||||
Exclude: South African projects | 17.8 | 23.3 | 83.3 | 27.3 | ||||||||||||
Engineered Solutions (Core) revenue | $ | 159.8 | $ | 218.4 | $ | 653.1 | $ | 770.3 | ||||||||
Engineered Solutions Segment income | $ | 8.8 | $ | 8.0 | $ | 17.3 | $ | (87.4 | ) | |||||||
Exclude: South African projects | (4.7 | ) | (5.6 | ) | (14.5 | ) | (120.5 | ) | ||||||||
Engineered Solutions (Core) income | $ | 13.5 | $ | 13.6 | $ | 31.8 | $ | 33.1 | ||||||||
as a percent of Engineered Solutions (Core) revenues (1) | 8.4 | % | 6.2 | % | 4.9 | % | 4.3 | % | ||||||||
(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 | Twelve months ended | |||||||||||||||
December 31, 2016 | December 31, 2015 | December 31, 2016 | December 31, 2015 | |||||||||||||
Operating income (loss) | $ | 1.8 | $ | 25.7 | $ | 55.0 | $ | (122.2 | ) | |||||||
Adjustments: | ||||||||||||||||
South African projects | 4.7 | 5.6 | 14.5 | 120.5 | ||||||||||||
Non-service pension and postretirement items | 11.0 | 10.4 | 16.0 | 15.0 | ||||||||||||
Certain corporate expenses (1) | — | 4.0 | — | 80.2 | ||||||||||||
Spin-related costs (2) | — | 1.2 | — | 3.5 | ||||||||||||
Gain on sale of Dry Cooling | — | — | (18.4 | ) | — | |||||||||||
Non-cash impairment of intangible assets | 26.1 | — | 30.1 | — | ||||||||||||
Adjusted operating income | $ | 43.6 | $ | 46.9 | $ | 97.2 | $ | 97.0 | ||||||||
as a percent of Core revenues (3) | 11.5 | % | 10.5 | % | 7.0 | % | 6.3 | % | ||||||||
______________________________ | ||||||||||||||||
(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 December 31, 2016 | |||||||||||
(Unaudited; in millions, except per share values) | |||||||||||
GAAP | Adjustments | Adjusted | |||||||||
Segment income | $ | 54.8 | $ | 4.7 | $ | 59.5 | |||||
Corporate expense | (12.1 | ) | — | (12.1 | ) | ||||||
Pension and postretirement income (expense) | (10.8 | ) | 11.0 | 0.2 | |||||||
Long-term incentive compensation expense | (3.5 | ) | — | (3.5 | ) | ||||||
Impairment of intangible assets | (26.1 | ) | 26.1 | — | |||||||
Special charges, net | (0.5 | ) | — | (0.5 | ) | ||||||
Operating income | 1.8 | 41.8 | 43.6 | ||||||||
Other expense, net | (2.5 | ) | — | (2.5 | ) | ||||||
Interest expense, net (1) | (3.3 | ) | 0.2 | (3.1 | ) | ||||||
Income (loss) from continuing operations before income taxes | (4.0 | ) | 42.0 | 38.0 | |||||||
Income tax (provision) benefit | 1.0 | (9.5 | ) | (8.5 | ) | ||||||
Income (loss) from continuing operations | (3.0 | ) | 32.5 | 29.5 | |||||||
Dilutive shares outstanding (2) | 41.828 | 42.950 | |||||||||
Earnings (loss) per share from continuing operations | $ | (0.07 | ) | $ | 0.69 | ||||||
(1) Adjustment relates to interest expense incurred in connection with borrowings under a line of credit in South Africa. | |||||||||||
(2) Dilutive shares outstanding used to calculate adjusted earnings per share reflect the dilutive impact of the adjustments. |
SPX CORPORATION AND SUBSIDIARIES | |||||||||||
NON-GAAP RECONCILIATION - EARNINGS PER SHARE | |||||||||||
Twelve months ended December 31, 2016 | |||||||||||
(Unaudited; in millions, except per share values) | |||||||||||
GAAP | Adjustments | Adjusted | |||||||||
Segment income | $ | 142.8 | $ | 14.5 | $ | 157.3 | |||||
Corporate expense | (41.7 | ) | — | (41.7 | ) | ||||||
Pension and postretirement income (expense) | (15.4 | ) | 16.0 | 0.6 | |||||||
Long-term incentive compensation expense | (13.7 | ) | — | (13.7 | ) | ||||||
Special charges, net | (5.3 | ) | — | (5.3 | ) | ||||||
Impairment of intangible assets | (30.1 | ) | 30.1 | — | |||||||
Gain on sale of dry cooling business | 18.4 | (18.4 | ) | — | |||||||
Operating income | 55.0 | 42.2 | 97.2 | ||||||||
Other income (expense), net (1) | (0.3 | ) | 2.1 | 1.8 | |||||||
Interest expense, net (2) | (14.0 | ) | 0.2 | (13.8 | ) | ||||||
Loss on early extinguishment of debt | (1.3 | ) | 1.3 | — | |||||||
Income from continuing operations before income taxes | 39.4 | 45.8 | 85.2 | ||||||||
Income tax provision | (9.1 | ) | (14.1 | ) | (23.2 | ) | |||||
Income from continuing operations | 30.3 | 31.7 | 62.0 | ||||||||
Less: Net loss attributable to redeemable noncontrolling interest (3) | (0.4 | ) | 0.3 | (0.1 | ) | ||||||
Net income from continuing operations attributable to SPX Corporation common shareholders | 30.7 | 31.4 | 62.1 | ||||||||
Adjustment related to redeemable noncontrolling interest (3) | (18.1 | ) | 18.1 | — | |||||||
Net income from continuing operations attributable to SPX Corporation common shareholders after adjustment to redeemable noncontrolling interest | 12.6 | 49.5 | 62.1 | ||||||||
Dilutive shares outstanding | 42.161 | 42.161 | |||||||||
Earnings per share from continuing operations | $ | 0.30 | $ | 1.47 | |||||||
(1) Adjustment represents removal of foreign currency losses associated with the South African projects. | |||||||||||
(2) Adjustment relates to interest expense incurred in connection with borrowings under a line of credit in South Africa. | |||||||||||
(3) Adjustment represents removal of noncontrolling interest amounts associated with the South Africa projects. |