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 August 3, 2017, furnished solely pursuant to Item 2.02 of Form 8-K |
SPX CORPORATION | ||
(Registrant) | ||
Date: August 3, 2017 | By: | /s/ Scott W. Sproule |
Scott W. Sproule | ||
Vice President, Chief Financial Officer and | ||
Treasurer |
Exhibit Number | Description |
99.1 | Press Release issued August 3, 2017, furnished solely pursuant to Item 2.02 of Form 8-K |
($ millions) | Q2 2017 | Q2 2016 | 2017 YTD | 2016 YTD | ||||||||||||
Revenue | $349.7 | $371.4 | $690.3 | $732.0 | ||||||||||||
Segment Income | 20.7 | 32.2 | 55.0 | 62.0 | ||||||||||||
Operating Income | 4.1 | 13.8 | 21.9 | 41.9 |
($ millions) | Q2 2017 | Q2 2016 | 2017 YTD | 2016 YTD | ||||||||||||
Core Revenue* | $347.7 | $351.8 | $670.1 | $691.9 | ||||||||||||
Core Segment Income* | 47.3 | 35.1 | 86.0 | 68.3 | ||||||||||||
Adjusted Operating Income* | 32.0 | 20.8 | 55.7 | 39.5 |
Revenue | Segment Income Margin % | ||
HVAC | Organic growth* at the lower end of our long-term target range of 2.0-4.0%, with variability driven primarily by winter heating demand | Approximately 16.0% | |
Detection & Measurement | Organic growth* above the long-term target range of 2.0-6.0%, with variability driven primarily by timing of project-related revenue | Approximately 22.5-23.0% (previously 21.0-22.0%) | |
Engineered Solutions (Core)* | Organic decline* in mid-single digit %, with flat Transformer revenues and more selective market participation in Process Cooling | Approximately 6.5-7.0% (previously 6.0-7.0%) |
SPX CORPORATION AND SUBSIDIARIES | ||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||
(Unaudited; in millions, except per share amounts) | ||||||||||||||||||
Three months ended | Six months ended | |||||||||||||||||
July 1, 2017 | July 2, 2016 | July 1, 2017 | July 2, 2016 | |||||||||||||||
Revenues | $ | 349.7 | $ | 371.4 | $ | 690.3 | $ | 732.0 | ||||||||||
Costs and expenses: | ||||||||||||||||||
Cost of products sold | 273.6 | 280.3 | 526.1 | 551.0 | ||||||||||||||
Selling, general and administrative | 71.4 | 72.8 | 141.0 | 147.1 | ||||||||||||||
Intangible amortization | 0.1 | 0.9 | 0.3 | 1.8 | ||||||||||||||
Special charges, net | 0.5 | 2.4 | 1.0 | 2.9 | ||||||||||||||
Impairment of intangible assets | — | — | — | 4.0 | ||||||||||||||
Gain (loss) on sale of dry cooling business | — | (1.2 | ) | — | 16.7 | |||||||||||||
Operating income | 4.1 | 13.8 | 21.9 | 41.9 | ||||||||||||||
Other income (expense), net | (2.1 | ) | 0.1 | (2.8 | ) | 1.3 | ||||||||||||
Interest expense | (4.6 | ) | (3.8 | ) | (8.6 | ) | (7.3 | ) | ||||||||||
Interest income | 0.3 | 0.2 | 0.7 | 0.4 | ||||||||||||||
Income (loss) from continuing operations before income taxes | (2.3 | ) | 10.3 | 11.2 | 36.3 | |||||||||||||
Income tax provision | (6.0 | ) | (3.8 | ) | (9.2 | ) | (9.6 | ) | ||||||||||
Income (loss) from continuing operations | (8.3 | ) | 6.5 | 2.0 | 26.7 | |||||||||||||
Loss from discontinued operations, net of tax | — | (3.1 | ) | — | (8.6 | ) | ||||||||||||
Gain (loss) on disposition of discontinued operations, net of tax | (0.7 | ) | (0.4 | ) | 6.4 | (1.5 | ) | |||||||||||
Income (loss) from discontinued operations, net of tax | (0.7 | ) | (3.5 | ) | 6.4 | (10.1 | ) | |||||||||||
Net income (loss) | (9.0 | ) | 3.0 | 8.4 | 16.6 | |||||||||||||
Less: Net loss attributable to redeemable noncontrolling interests | — | (1.0 | ) | — | (0.4 | ) | ||||||||||||
Net income (loss) attributable to SPX Corporation common shareholders | $ | (9.0 | ) | $ | 4.0 | $ | 8.4 | $ | 17.0 | |||||||||
Adjustment related to redeemable noncontrolling interest | — | (18.1 | ) | — | (18.1 | ) | ||||||||||||
Net income (loss) attributable to SPX Corporation common shareholders after adjustment related to redeemable noncontrolling interest | $ | (9.0 | ) | $ | (14.1 | ) | $ | 8.4 | $ | (1.1 | ) | |||||||
Amounts attributable to SPX Corporation common shareholders after adjustment related to redeemable noncontrolling interest: | ||||||||||||||||||
Income (loss) from continuing operations, net of tax | $ | (8.3 | ) | $ | (10.6 | ) | $ | 2.0 | $ | 9.0 | ||||||||
Income (loss) from discontinued operations, net of tax | (0.7 | ) | (3.5 | ) | 6.4 | (10.1 | ) | |||||||||||
Net income (loss) | $ | (9.0 | ) | $ | (14.1 | ) | $ | 8.4 | $ | (1.1 | ) | |||||||
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 | $ | (0.19 | ) | $ | (0.25 | ) | $ | 0.05 | $ | 0.22 | ||||||||
Income (loss) from discontinued operations attributable to SPX Corporation common shareholders | (0.02 | ) | (0.09 | ) | 0.15 | (0.25 | ) | |||||||||||
Net income (loss) per share attributable to SPX Corporation common shareholders after adjustment related to redeemable noncontrolling interest | $ | (0.21 | ) | $ | (0.34 | ) | $ | 0.20 | $ | (0.03 | ) | |||||||
Weighted-average number of common shares outstanding — basic | 42.388 | 41.594 | 42.249 | 41.443 | ||||||||||||||
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 | $ | (0.19 | ) | $ | (0.25 | ) | $ | 0.04 | $ | 0.22 | ||||||||
Income (loss) from discontinued operations attributable to SPX Corporation common shareholders | (0.02 | ) | (0.09 | ) | 0.15 | (0.25 | ) | |||||||||||
Net income (loss) per share attributable to SPX Corporation common shareholders after adjustment related to redeemable noncontrolling interest | $ | (0.21 | ) | $ | (0.34 | ) | $ | 0.19 | $ | (0.03 | ) | |||||||
Weighted-average number of common shares outstanding — diluted | 42.388 | 41.594 | 43.622 | 41.754 |
SPX CORPORATION AND SUBSIDIARIES | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(Unaudited; in millions) | ||||||||
July 1, | December 31, | |||||||
2017 | 2016 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and equivalents | $ | 83.5 | $ | 99.6 | ||||
Accounts receivable, net | 252.0 | 251.7 | ||||||
Inventories, net | 168.3 | 145.7 | ||||||
Other current assets | 35.1 | 30.6 | ||||||
Total current assets | 538.9 | 527.6 | ||||||
Property, plant and equipment: | ||||||||
Land | 15.4 | 15.4 | ||||||
Buildings and leasehold improvements | 119.5 | 117.3 | ||||||
Machinery and equipment | 334.1 | 329.8 | ||||||
469.0 | 462.5 | |||||||
Accumulated depreciation | (277.4 | ) | (267.0 | ) | ||||
Property, plant and equipment, net | 191.6 | 195.5 | ||||||
Goodwill | 344.1 | 340.4 | ||||||
Intangibles, net | 118.4 | 117.9 | ||||||
Other assets | 671.9 | 680.5 | ||||||
Deferred income taxes | 64.5 | 50.6 | ||||||
TOTAL ASSETS | $ | 1,929.4 | $ | 1,912.5 | ||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 140.8 | $ | 137.6 | ||||
Accrued expenses | 291.2 | 304.3 | ||||||
Income taxes payable | 1.3 | 1.7 | ||||||
Short-term debt | 33.9 | 14.8 | ||||||
Current maturities of long-term debt | 18.1 | 17.9 | ||||||
Total current liabilities | 485.3 | 476.3 | ||||||
Long-term debt | 315.4 | 323.5 | ||||||
Deferred and other income taxes | 45.6 | 42.4 | ||||||
Other long-term liabilities | 874.4 | 878.7 | ||||||
Total long-term liabilities | 1,235.4 | 1,244.6 | ||||||
Equity: | ||||||||
Common stock | 0.5 | 0.5 | ||||||
Paid-in capital | 1,301.5 | 1,307.9 | ||||||
Retained deficit | (823.2 | ) | (831.6 | ) | ||||
Accumulated other comprehensive income | 234.2 | 235.1 | ||||||
Common stock in treasury | (504.3 | ) | (520.3 | ) | ||||
Total equity | 208.7 | 191.6 | ||||||
TOTAL LIABILITIES AND EQUITY | $ | 1,929.4 | $ | 1,912.5 |
SPX CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||||||||||
RESULTS OF REPORTABLE SEGMENTS | ||||||||||||||||||||||||||||||
(Unaudited; in millions) | ||||||||||||||||||||||||||||||
Three months ended | Six months ended | |||||||||||||||||||||||||||||
July 1, 2017 | July 2, 2016 | Δ | %/bps | July 1, 2017 | July 2, 2016 | Δ | %/bps | |||||||||||||||||||||||
HVAC reportable segment | ||||||||||||||||||||||||||||||
Revenues | $ | 120.3 | $ | 121.9 | $ | (1.6 | ) | (1.3 | )% | $ | 230.4 | $ | 233.5 | $ | (3.1 | ) | (1.3 | )% | ||||||||||||
Gross profit | 38.2 | 41.1 | (2.9 | ) | 76.4 | 80.5 | (4.1 | ) | ||||||||||||||||||||||
Selling, general and administrative expense | 22.7 | 23.9 | (1.2 | ) | 44.3 | 47.3 | (3.0 | ) | ||||||||||||||||||||||
Intangible amortization expense | 0.1 | 0.1 | — | 0.2 | 0.2 | — | ||||||||||||||||||||||||
Income | $ | 15.4 | $ | 17.1 | $ | (1.7 | ) | (9.9 | )% | $ | 31.9 | $ | 33.0 | $ | (1.1 | ) | (3.3 | )% | ||||||||||||
as a percent of revenues | 12.8 | % | 14.0 | % | -120 bps | 13.8 | % | 14.1 | % | -30 bps | ||||||||||||||||||||
Detection & Measurement reportable segment | ||||||||||||||||||||||||||||||
Revenues | $ | 64.5 | $ | 60.1 | $ | 4.4 | 7.3 | % | $ | 118.1 | $ | 115.5 | $ | 2.6 | 2.3 | % | ||||||||||||||
Gross profit | 31.9 | 28.3 | 3.6 | 56.7 | 54.2 | 2.5 | ||||||||||||||||||||||||
Selling, general and administrative expense | 14.6 | 16.0 | (1.4 | ) | 28.2 | 30.7 | (2.5 | ) | ||||||||||||||||||||||
Intangible amortization expense | — | 0.2 | (0.2 | ) | — | 0.4 | (0.4 | ) | ||||||||||||||||||||||
Income | $ | 17.3 | $ | 12.1 | $ | 5.2 | 43.0 | % | $ | 28.5 | $ | 23.1 | $ | 5.4 | 23.4 | % | ||||||||||||||
as a percent of revenues | 26.8 | % | 20.1 | % | 670 bps | 24.1 | % | 20.0 | % | 410 bps | ||||||||||||||||||||
Engineered Solutions reportable segment | ||||||||||||||||||||||||||||||
Revenues | $ | 164.9 | $ | 189.4 | $ | (24.5 | ) | (12.9 | )% | $ | 341.8 | $ | 383.0 | $ | (41.2 | ) | (10.8 | )% | ||||||||||||
Gross profit | 6.0 | 21.7 | (15.7 | ) | 31.1 | 46.1 | (15.0 | ) | ||||||||||||||||||||||
Selling, general and administrative expense | 18.0 | 18.1 | (0.1 | ) | 36.4 | 39.0 | (2.6 | ) | ||||||||||||||||||||||
Intangible amortization expense | — | 0.6 | (0.6 | ) | 0.1 | 1.2 | (1.1 | ) | ||||||||||||||||||||||
Income (loss) | $ | (12.0 | ) | $ | 3.0 | $ | (15.0 | ) | (500.0 | )% | $ | (5.4 | ) | $ | 5.9 | $ | (11.3 | ) | (191.5 | )% | ||||||||||
as a percent of revenues | (7.3 | )% | 1.6 | % | -890 bps | (1.6 | )% | 1.5 | % | -310 bps | ||||||||||||||||||||
Consolidated Revenues | $ | 349.7 | $ | 371.4 | $ | (21.7 | ) | (5.8 | )% | $ | 690.3 | $ | 732.0 | $ | (41.7 | ) | (5.7 | )% | ||||||||||||
Consolidated Segment Income | 20.7 | 32.2 | (11.5 | ) | (35.7 | )% | 55.0 | 62.0 | (7.0 | ) | (11.3 | )% | ||||||||||||||||||
as a percent of revenues | 5.9 | % | 8.7 | % | -280 bps | 8.0 | % | 8.5 | % | -50 bps | ||||||||||||||||||||
Total income for reportable segments | $ | 20.7 | $ | 32.2 | $ | (11.5 | ) | $ | 55.0 | $ | 62.0 | $ | (7.0 | ) | ||||||||||||||||
Corporate expense | 11.3 | 8.6 | 2.7 | 22.7 | 20.0 | 2.7 | ||||||||||||||||||||||||
Pension and postretirement expense | 1.2 | 2.8 | (1.6 | ) | 2.6 | 3.8 | (1.2 | ) | ||||||||||||||||||||||
Long-term incentive compensation expense | 3.6 | 3.4 | 0.2 | 6.8 | 6.1 | 0.7 | ||||||||||||||||||||||||
Impairment of intangible assets | — | — | — | — | 4.0 | (4.0 | ) | |||||||||||||||||||||||
Special charges, net | 0.5 | 2.4 | (1.9 | ) | 1.0 | 2.9 | (1.9 | ) | ||||||||||||||||||||||
Gain (loss) on sale of dry cooling business | — | (1.2 | ) | 1.2 | — | 16.7 | (16.7 | ) | ||||||||||||||||||||||
Consolidated operating income | $ | 4.1 | $ | 13.8 | $ | (9.7 | ) | (70.3 | )% | $ | 21.9 | $ | 41.9 | $ | (20.0 | ) | (47.7 | )% | ||||||||||||
as a percent of revenues | 1.2 | % | 3.7 | % | -250 bps | 3.2 | % | 5.7 | % | -250 bps |
SPX CORPORATION AND SUBSIDIARIES | ||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||||
(Unaudited; in millions) | ||||||||||||||||||
Three months ended | Six months ended | |||||||||||||||||
July 1, 2017 | July 2, 2016 | July 1, 2017 | July 2, 2016 | |||||||||||||||
Cash flows from (used in) operating activities: | ||||||||||||||||||
Net Income (loss) | $ | (9.0 | ) | $ | 3.0 | $ | 8.4 | $ | 16.6 | |||||||||
Less: Income (loss) from discontinued operations, net of tax | (0.7 | ) | (3.5 | ) | 6.4 | (10.1 | ) | |||||||||||
Income (loss) from continuing operations | (8.3 | ) | 6.5 | 2.0 | 26.7 | |||||||||||||
Adjustments to reconcile income (loss) from continuing operations to net cash from (used in) operating activities: | ||||||||||||||||||
Special charges, net | 0.5 | 2.4 | 1.0 | 2.9 | ||||||||||||||
(Gain) loss on sale of dry cooling business | — | 1.2 | — | (16.7 | ) | |||||||||||||
Impairment of intangible assets | — | — | — | 4.0 | ||||||||||||||
Deferred and other income taxes | 0.1 | 0.4 | (3.8 | ) | 1.7 | |||||||||||||
Depreciation and amortization | 6.3 | 6.5 | 12.6 | 13.2 | ||||||||||||||
Pension and other employee benefits | 3.3 | 4.7 | 7.5 | 8.6 | ||||||||||||||
Long-term incentive compensation | 3.6 | 3.4 | 6.8 | 6.1 | ||||||||||||||
Other, net | 0.1 | (0.4 | ) | 1.7 | 1.4 | |||||||||||||
Changes in operating assets and liabilities, net of effects from divestiture: | ||||||||||||||||||
Accounts receivable and other assets | (27.6 | ) | 12.5 | 6.1 | 33.9 | |||||||||||||
Inventories | (7.1 | ) | 7.0 | (20.3 | ) | (17.5 | ) | |||||||||||
Accounts payable, accrued expenses and other | 14.4 | (6.5 | ) | (22.3 | ) | (76.8 | ) | |||||||||||
Cash spending on restructuring actions | (0.4 | ) | (0.8 | ) | (1.0 | ) | (1.2 | ) | ||||||||||
Net cash from (used in) continuing operations | (15.1 | ) | 36.9 | (9.7 | ) | (13.7 | ) | |||||||||||
Net cash used in discontinued operations | (2.0 | ) | (14.1 | ) | (5.7 | ) | (25.7 | ) | ||||||||||
Net cash from (used in) operating activities | (17.1 | ) | 22.8 | (15.4 | ) | (39.4 | ) | |||||||||||
Cash flows from (used in) investing activities: | ||||||||||||||||||
Proceeds from asset sales | — | 0.1 | — | 46.0 | ||||||||||||||
Capital expenditures | (2.6 | ) | (2.0 | ) | (4.8 | ) | (3.7 | ) | ||||||||||
Net cash from (used in) continuing operations | (2.6 | ) | (1.9 | ) | (4.8 | ) | 42.3 | |||||||||||
Net cash used in discontinued operations | — | (2.0 | ) | — | (2.3 | ) | ||||||||||||
Net cash from (used in) investing activities | (2.6 | ) | (3.9 | ) | (4.8 | ) | 40.0 | |||||||||||
Cash flows from (used in) financing activities: | ||||||||||||||||||
Borrowings under senior credit facilities | 16.0 | 36.1 | 16.0 | 65.0 | ||||||||||||||
Repayments under senior credit facilities | (20.4 | ) | (45.8 | ) | (24.7 | ) | (65.0 | ) | ||||||||||
Borrowings under trade receivables financing arrangement | 40.0 | — | 40.0 | 20.0 | ||||||||||||||
Repayments under trade receivables financing arrangement | (19.0 | ) | — | (19.0 | ) | (20.0 | ) | |||||||||||
Net repayments under other financing arrangements | (4.4 | ) | (7.0 | ) | (2.7 | ) | (0.6 | ) | ||||||||||
Minimum withholdings paid on behalf of employees for net share settlements, net of proceeds from the exercise of employee stock options and other | 0.7 | 0.1 | (1.8 | ) | (1.6 | ) | ||||||||||||
Net cash from (used in) continuing operations | 12.9 | (16.6 | ) | 7.8 | (2.2 | ) | ||||||||||||
Net cash used in discontinued operations | — | — | — | — | ||||||||||||||
Net cash from (used in) financing activities | 12.9 | (16.6 | ) | 7.8 | (2.2 | ) | ||||||||||||
Change in cash and equivalents due to changes in foreign currency exchange rates | (2.4 | ) | 1.8 | (3.7 | ) | 2.2 | ||||||||||||
Net change in cash and equivalents | (9.2 | ) | 4.1 | (16.1 | ) | 0.6 | ||||||||||||
Consolidated cash and equivalents, beginning of period | 92.7 | 97.9 | 99.6 | 101.4 | ||||||||||||||
Consolidated cash and equivalents, end of period | $ | 83.5 | $ | 102.0 | $ | 83.5 | $ | 102.0 |
SPX CORPORATION AND SUBSIDIARIES | ||||
CASH AND DEBT RECONCILIATION | ||||
(Unaudited; in millions) | ||||
Six months ended | ||||
July 1, 2017 | ||||
Beginning cash and equivalents | $ | 99.6 | ||
Cash used in continuing operations | (9.7 | ) | ||
Capital expenditures | (4.8 | ) | ||
Borrowings under senior credit facilities | 16.0 | |||
Repayments under senior credit facilities | (24.7 | ) | ||
Net borrowings under other financing arrangements | 18.3 | |||
Minimum withholdings paid on behalf of employees for net share settlements, net of proceeds from the exercise of employee stock options | (1.8 | ) | ||
Cash used in discontinued operations | (5.7 | ) | ||
Change in cash due to changes in foreign currency exchange rates | (3.7 | ) | ||
Ending cash and equivalents | $ | 83.5 |
Debt at | Debt at | |||||||||||||||||||
December 31, 2016 | Borrowings | Repayments | Other | July 1, 2017 | ||||||||||||||||
Domestic revolving loan facility | $ | — | $ | 16.0 | $ | (16.0 | ) | $ | — | $ | — | |||||||||
Term loan | 341.2 | — | (8.7 | ) | — | 332.5 | ||||||||||||||
Trade receivables financing arrangement | — | 40.0 | (19.0 | ) | — | 21.0 | ||||||||||||||
Other indebtedness | 16.6 | 21.4 | (24.1 | ) | 1.4 | 15.3 | ||||||||||||||
Less: Deferred financing costs associated with the term loan | (1.6 | ) | — | — | 0.2 | (1.4 | ) | |||||||||||||
Totals | $ | 356.2 | $ | 77.4 | $ | (67.8 | ) | $ | 1.6 | $ | 367.4 |
SPX CORPORATION AND SUBSIDIARIES | ||||||||||||
NON-GAAP RECONCILIATION - ORGANIC REVENUE | ||||||||||||
HVAC, DETECTION & MEASUREMENT AND ENGINEERED SOLUTIONS SEGMENTS | ||||||||||||
(Unaudited) | ||||||||||||
Three months ended July 1, 2017 | ||||||||||||
HVAC | Detection & Measurement | Engineered Solutions | ||||||||||
Net Revenue Growth (Decline) | (1.3 | ) | % | 7.3 | % | (12.9 | ) | % | ||||
Exclude: Foreign Currency | (0.6 | ) | % | (1.5 | ) | % | 1.7 | % | ||||
Exclude: South Africa revenue revision | — | % | — | % | (7.1 | ) | % | |||||
Organic Revenue Growth (Decline) | (0.7 | ) | % | 8.8 | % | (7.5 | ) | % |
SPX CORPORATION AND SUBSIDIARIES | |||
NON-GAAP RECONCILIATION - ENGINEERED SOLUTIONS (CORE) ORGANIC REVENUE | |||
(Unaudited) | |||
Three months ended | |||
July 1, 2017 | |||
Engineered Solutions Segment Net Revenue Decline | (12.9 | ) | % |
Adjustment to Exclude South African projects | (8.8 | ) | % |
Engineered Solutions (Core) Revenue Decline | (4.1 | ) | % |
Exclude: Foreign Currency | 0.3 | % | |
Engineered Solutions (Core) Organic Revenue Decline | (4.4 | ) | % |
SPX CORPORATION AND SUBSIDIARIES | ||||||||||||||||
NON-GAAP RECONCILIATION - REVENUE AND SEGMENT INCOME | ||||||||||||||||
(Unaudited; in millions) | ||||||||||||||||
CONSOLIDATED SPX: | Three months ended | Six months ended | ||||||||||||||
July 1, 2017 | July 2, 2016 | July 1, 2017 | July 2, 2016 | |||||||||||||
Consolidated revenue | $ | 349.7 | $ | 371.4 | $ | 690.3 | $ | 732.0 | ||||||||
Exclude: South African projects | 2.0 | 19.6 | 20.2 | 40.1 | ||||||||||||
Core revenue | $ | 347.7 | $ | 351.8 | $ | 670.1 | $ | 691.9 | ||||||||
Total segment income | $ | 20.7 | $ | 32.2 | $ | 55.0 | $ | 62.0 | ||||||||
Exclude: South African projects | (26.6 | ) | (2.9 | ) | (31.0 | ) | (6.3 | ) | ||||||||
Core segment income | $ | 47.3 | $ | 35.1 | $ | 86.0 | $ | 68.3 | ||||||||
as a percent of Core revenues (1) | 13.6 | % | 10.0 | % | 12.8 | % | 9.9 | % | ||||||||
ENGINEERED SOLUTIONS SEGMENT: | Three months ended | |||||||||||||||
July 1, 2017 | July 2, 2016 | |||||||||||||||
Engineered Solutions revenue | $ | 164.9 | $ | 189.4 | ||||||||||||
Exclude: South African projects | 2.0 | 19.6 | ||||||||||||||
Engineered Solutions (Core) revenue | $ | 162.9 | $ | 169.8 | ||||||||||||
Engineered Solutions Segment income (loss) | $ | (12.0 | ) | $ | 3.0 | |||||||||||
Exclude: South African projects | (26.6 | ) | (2.9 | ) | ||||||||||||
Engineered Solutions (Core) income | $ | 14.6 | $ | 5.9 | ||||||||||||
as a percent of Engineered Solutions (Core) revenues (1) | 9.0 | % | 3.5 | % | ||||||||||||
(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 | Six months ended | |||||||||||||||
July 1, 2017 | July 2, 2016 | July 1, 2017 | July 2, 2016 | |||||||||||||
Operating income | $ | 4.1 | $ | 13.8 | $ | 21.9 | $ | 41.9 | ||||||||
Exclude: | ||||||||||||||||
South African projects | 26.6 | 2.9 | 31.0 | 6.3 | ||||||||||||
Non-service pension and postretirement items | 1.3 | 2.9 | 2.8 | 4.0 | ||||||||||||
(Gain) loss on sale of Dry Cooling | — | 1.2 | — | (16.7 | ) | |||||||||||
Non-cash impairment of intangible assets | — | — | — | 4.0 | ||||||||||||
Adjusted operating income | $ | 32.0 | $ | 20.8 | $ | 55.7 | $ | 39.5 | ||||||||
as a percent of Core revenues (1) | 9.2 | % | 5.9 | % | 8.3 | % | 5.7 | % | ||||||||
(1) 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 1, 2017 | |||||||||||
(Unaudited; in millions, except per share values) | |||||||||||
GAAP | Adjustments | Adjusted | |||||||||
Segment income (1) | $ | 20.7 | $ | 26.6 | $ | 47.3 | |||||
Corporate expense | (11.3 | ) | — | (11.3 | ) | ||||||
Pension and postretirement income (expense) (2) | (1.2 | ) | 1.3 | 0.1 | |||||||
Long-term incentive compensation expense | (3.6 | ) | — | (3.6 | ) | ||||||
Special charges, net | (0.5 | ) | — | (0.5 | ) | ||||||
Operating income | 4.1 | 27.9 | 32.0 | ||||||||
Other expense, net (3) | (2.1 | ) | 0.3 | (1.8 | ) | ||||||
Interest expense, net (4) | (4.3 | ) | 0.3 | (4.0 | ) | ||||||
Income (loss) from continuing operations before income taxes | (2.3 | ) | 28.5 | 26.2 | |||||||
Income tax provision | (6.0 | ) | (0.8 | ) | (6.8 | ) | |||||
Income (loss) from continuing operations | (8.3 | ) | 27.7 | 19.4 | |||||||
Dilutive shares outstanding | 42.388 | 43.789 | |||||||||
Income (loss) per share from continuing operations | $ | (0.19 | ) | $ | 0.44 | ||||||
(1) Adjustment represents the removal of operating losses associated with the South African projects. | |||||||||||
(2) Adjustment represents the removal of non-service pension and postretirement items. | |||||||||||
(3) Adjustment represents removal of foreign currency losses associated with the South African projects. | |||||||||||
(4) Adjustment relates to removal of interest expense incurred in connection with borrowings under a line of credit in South Africa. |
SPX CORPORATION AND SUBSIDIARIES | |||||||||||
NON-GAAP RECONCILIATION - EARNINGS PER SHARE | |||||||||||
Three Months Ended July 2, 2016 | |||||||||||
(Unaudited; in millions, except per share values) | |||||||||||
GAAP | Adjustments | Adjusted | |||||||||
Segment income (1) | 32.2 | 2.9 | 35.1 | ||||||||
Corporate expense | (8.6 | ) | — | (8.6 | ) | ||||||
Pension and postretirement income (expense) (2) | (2.8 | ) | 2.9 | 0.1 | |||||||
Long-term incentive compensation expense | (3.4 | ) | — | (3.4 | ) | ||||||
Special charges, net | (2.4 | ) | — | (2.4 | ) | ||||||
Loss on sale of dry cooling business (3) | (1.2 | ) | 1.2 | — | |||||||
Operating income | 13.8 | 7.0 | 20.8 | ||||||||
Other income, net (4) | 0.1 | 2.1 | 2.2 | ||||||||
Interest expense, net | (3.6 | ) | — | (3.6 | ) | ||||||
Income from continuing operations before income taxes | 10.3 | 9.1 | 19.4 | ||||||||
Income tax provision | (3.8 | ) | (1.9 | ) | (5.7 | ) | |||||
Income from continuing operations | 6.5 | 7.2 | 13.7 | ||||||||
Less: Net loss attributable to redeemable noncontrolling interest (5) | (1.0 | ) | 0.9 | (0.1 | ) | ||||||
Net income from continuing operations attributable to SPX Corporation common shareholders | 7.5 | 6.3 | 13.8 | ||||||||
Adjustment related to redeemable noncontrolling interest (5) | (18.1 | ) | 18.1 | — | |||||||
Net income (loss) from continuing operations attributable to SPX Corporation common shareholders after adjustment to redeemable noncontrolling interest | $ | (10.6 | ) | $ | 24.4 | $ | 13.8 | ||||
Dilutive shares outstanding | 41.594 | 41.954 | |||||||||
Income (loss) per share from continuing operations | $ | (0.25 | ) | $ | 0.33 | ||||||
(1) Adjustment represents the removal of operating losses associated with the South African projects. | |||||||||||
(2) Adjustment represents the removal of non-service pension and postretirement items. | |||||||||||
(3) Adjustment represents removal of loss on sale of dry cooling business. | |||||||||||
(4) Adjustment represents removal of foreign currency losses associated with the South African projects. | |||||||||||
(5) Adjustment represents removal of noncontrolling interest amounts associated with the South African projects. |
SPX CORPORATION AND SUBSIDIARIES | ||||
NON-GAAP RECONCILIATION - FREE CASH FLOW USED IN CONTINUING OPERATIONS | ||||
(Unaudited; in millions) | ||||
Three months ended | ||||
July 1, 2017 | ||||
Net cash used in continuing operations | $ | (15.1 | ) | |
Capital expenditures - continuing operations | (2.6 | ) | ||
Free cash flow used in continuing operations | $ | (17.7 | ) |