(State or other jurisdiction | (Commission | (IRS Employer | ||||||||||||
of incorporation) | File Number) | Identification No.) |
Title of each class | Trading Symbols(s) | Name of each exchange on which registered | ||||||
Exhibit Number | Description | |||||||
99.1 | ||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SPX CORPORATION | ||||||||
(Registrant) | ||||||||
Date: November 3, 2021 | By: | /s/ James E. Harris | ||||||
James E. Harris | ||||||||
Vice President, Chief Financial Officer and | ||||||||
Treasurer |
($ millions) | Q3 2021 | Q3 2020 | 2021 YTD | 2020 YTD | ||||||||||||||||||||||
Revenue | $ | 285.8 | $ | 268.3 | $ | 870.4 | $ | 783.1 | ||||||||||||||||||
Operating Income | 11.8 | 20.4 | 44.7 | 54.0 | ||||||||||||||||||||||
Segment Income | 27.2 | 35.7 | 97.8 | 98.6 |
($ millions) | Q3 2021 | Q3 2020 | 2021 YTD | 2020 YTD | ||||||||||||||||||||||
Adjusted Revenue* | $ | 285.7 | $ | 267.8 | $ | 869.5 | $ | 779.8 | ||||||||||||||||||
Adjusted Operating Income* | 25.7 | 29.7 | 81.7 | 77.0 | ||||||||||||||||||||||
Adjusted Segment Income* | 40.1 | 44.3 | 131.3 | 120.9 |
Revenue | Segment Income Margin % | |||||||||||||
HVAC | ~$755-765 million (prior ~$770-780 million) | ~14.0% (prior ~14.5%) | ||||||||||||
Detection & Measurement | ~$460-470 million (prior ~$465-475 million) | ~19.0% (prior ~20.5%) | ||||||||||||
Total SPX Adjusted | ~$1.22-1.24 billion (prior ~1.25 billion) | ~16.0% (prior ~17.0%) |
SPX CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||||
(Unaudited; in millions, except per share amounts) | |||||||||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||||||||
October 2, 2021 | September 26, 2020 | October 2, 2021 | September 26, 2020 | ||||||||||||||||||||
Revenues | $ | 285.8 | $ | 268.3 | $ | 870.4 | $ | 783.1 | |||||||||||||||
Costs and expenses: | |||||||||||||||||||||||
Cost of products sold | 191.8 | 176.6 | 570.4 | 513.4 | |||||||||||||||||||
Selling, general and administrative | 76.2 | 67.7 | 234.7 | 206.2 | |||||||||||||||||||
Intangible amortization | 5.5 | 3.3 | 16.0 | 8.3 | |||||||||||||||||||
Special charges, net | 0.5 | 0.3 | 1.9 | 1.6 | |||||||||||||||||||
Other operating (income) expense | — | — | 2.7 | (0.4) | |||||||||||||||||||
Operating income | 11.8 | 20.4 | 44.7 | 54.0 | |||||||||||||||||||
Other income, net | 2.9 | 2.7 | 17.2 | 8.5 | |||||||||||||||||||
Interest expense | (3.5) | (4.5) | (11.1) | (14.0) | |||||||||||||||||||
Interest income | 0.2 | 0.1 | 0.4 | 0.2 | |||||||||||||||||||
Income from continuing operations before income taxes | 11.4 | 18.7 | 51.2 | 48.7 | |||||||||||||||||||
Income tax provision | (3.7) | (3.1) | (9.8) | (8.4) | |||||||||||||||||||
Income from continuing operations | 7.7 | 15.6 | 41.4 | 40.3 | |||||||||||||||||||
Income (loss) from discontinued operations, net of tax | (31.0) | 7.1 | 20.3 | 33.5 | |||||||||||||||||||
Gain (loss) on disposition of discontinued operations, net of tax | 354.4 | 0.1 | 357.7 | (1.2) | |||||||||||||||||||
Income from discontinued operations, net of tax | 323.4 | 7.2 | 378.0 | 32.3 | |||||||||||||||||||
Net income | $ | 331.1 | $ | 22.8 | $ | 419.4 | $ | 72.6 | |||||||||||||||
Basic income per share of common stock: | |||||||||||||||||||||||
Income from continuing operations | $ | 0.17 | $ | 0.35 | $ | 0.92 | $ | 0.90 | |||||||||||||||
Income from discontinued operations | 7.13 | 0.16 | 8.35 | 0.73 | |||||||||||||||||||
Net income per share | $ | 7.30 | $ | 0.51 | $ | 9.27 | $ | 1.63 | |||||||||||||||
Weighted-average number of common shares outstanding — basic | 45.331 | 44.708 | 45.244 | 44.538 | |||||||||||||||||||
Diluted income per share of common stock: | |||||||||||||||||||||||
Income from continuing operations | $ | 0.17 | $ | 0.34 | $ | 0.89 | $ | 0.88 | |||||||||||||||
Income from discontinued operations | 6.93 | 0.16 | 8.14 | 0.71 | |||||||||||||||||||
Net income per share | $ | 7.10 | $ | 0.50 | $ | 9.03 | $ | 1.59 | |||||||||||||||
Weighted-average number of common shares outstanding — diluted | 46.650 | 45.894 | 46.455 | 45.694 |
SPX CORPORATION AND SUBSIDIARIES | |||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||
(Unaudited; in millions) | |||||||||||
October 2, 2021 | December 31, 2020 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and equivalents | $ | 560.1 | $ | 68.3 | |||||||
Accounts receivable, net | 212.1 | 221.0 | |||||||||
Contract assets | 23.7 | 32.5 | |||||||||
Inventories, net | 170.3 | 143.1 | |||||||||
Other current assets (includes income taxes receivable of $2.6 and $27.3 at October 2, 2021 and December 31, 2020, respectively) | 80.3 | 96.1 | |||||||||
Assets of discontinued operations | — | 121.6 | |||||||||
Total current assets | 1,046.5 | 682.6 | |||||||||
Property, plant and equipment: | |||||||||||
Land | 14.0 | 12.9 | |||||||||
Buildings and leasehold improvements | 61.7 | 64.9 | |||||||||
Machinery and equipment | 230.2 | 215.6 | |||||||||
305.9 | 293.4 | ||||||||||
Accumulated depreciation | (197.9) | (183.4) | |||||||||
Property, plant and equipment, net | 108.0 | 110.0 | |||||||||
Goodwill | 404.0 | 368.6 | |||||||||
Intangibles, net | 337.2 | 305.0 | |||||||||
Other assets | 590.9 | 609.8 | |||||||||
Deferred income taxes | 3.2 | 23.9 | |||||||||
Assets of discontinued operations | — | 219.1 | |||||||||
TOTAL ASSETS | $ | 2,489.8 | $ | 2,319.0 | |||||||
LIABILITIES AND EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 112.3 | $ | 104.6 | |||||||
Contract liabilities | 50.7 | 46.3 | |||||||||
Accrued expenses | 240.6 | 209.4 | |||||||||
Income taxes payable | 60.2 | 0.4 | |||||||||
Short-term debt | 2.3 | 101.2 | |||||||||
Current maturities of long-term debt | 11.4 | 7.2 | |||||||||
Liabilities of discontinued operations | — | 115.8 | |||||||||
Total current liabilities | 477.5 | 584.9 | |||||||||
Long-term debt | 233.9 | 304.0 | |||||||||
Deferred and other income taxes | 21.3 | 23.5 | |||||||||
Other long-term liabilities | 696.8 | 746.7 | |||||||||
Liabilities of discontinued operations | — | 30.7 | |||||||||
Total long-term liabilities | 952.0 | 1,104.9 | |||||||||
Equity: | |||||||||||
Common stock | 0.5 | 0.5 | |||||||||
Paid-in capital | 1,328.2 | 1,319.9 | |||||||||
Retained deficit | (68.7) | (488.1) | |||||||||
Accumulated other comprehensive income | 244.5 | 248.5 | |||||||||
Common stock in treasury | (444.2) | (451.6) | |||||||||
Total equity | 1,060.3 | 629.2 | |||||||||
TOTAL LIABILITIES AND EQUITY | $ | 2,489.8 | $ | 2,319.0 | |||||||
SPX CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||||||||||||||
RESULTS OF REPORTABLE SEGMENTS AND OTHER OPERATING SEGMENT | ||||||||||||||||||||||||||||||||||||||||||||||||||
(Unaudited; in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||||||||||||||||||||||||||||||||||||
October 2, 2021 | September 26, 2020 | Δ | %/bps | October 2, 2021 | September 26, 2020 | Δ | %/bps | |||||||||||||||||||||||||||||||||||||||||||
HVAC reportable segment | ||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | $ | 179.3 | $ | 182.6 | $ | (3.3) | (1.8)% | $ | 540.3 | $ | 510.6 | $ | 29.7 | 5.8% | ||||||||||||||||||||||||||||||||||||
Gross profit | 50.0 | 55.4 | (5.4) | 159.4 | 154.6 | 4.8 | ||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expense | 28.0 | 27.9 | 0.1 | 88.3 | 88.3 | — | ||||||||||||||||||||||||||||||||||||||||||||
Intangible amortization expense | 0.6 | 0.7 | (0.1) | 2.0 | 2.2 | (0.2) | ||||||||||||||||||||||||||||||||||||||||||||
Income | $ | 21.4 | $ | 26.8 | $ | (5.4) | (20.1)% | $ | 69.1 | $ | 64.1 | $ | 5.0 | 7.8% | ||||||||||||||||||||||||||||||||||||
as a percent of revenues | 11.9 | % | 14.7 | % | -280 bps | 12.8 | % | 12.6 | % | 20 bps | ||||||||||||||||||||||||||||||||||||||||
Detection & Measurement reportable segment | ||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | $ | 106.4 | $ | 85.2 | $ | 21.2 | 24.9% | $ | 329.2 | $ | 269.2 | $ | 60.0 | 22.3% | ||||||||||||||||||||||||||||||||||||
Gross profit | 44.3 | 36.9 | 7.4 | 141.0 | 116.6 | 24.4 | ||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expense | 29.5 | 20.1 | 9.4 | 85.7 | 62.1 | 23.6 | ||||||||||||||||||||||||||||||||||||||||||||
Intangible amortization expense | 4.9 | 2.6 | 2.3 | 14.0 | 6.1 | 7.9 | ||||||||||||||||||||||||||||||||||||||||||||
Income | $ | 9.9 | $ | 14.2 | $ | (4.3) | (30.3)% | $ | 41.3 | $ | 48.4 | $ | (7.1) | (14.7)% | ||||||||||||||||||||||||||||||||||||
as a percent of revenues | 9.3 | % | 16.7 | % | -740 bps | 12.5 | % | 18.0 | % | -550 bps | ||||||||||||||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | $ | 0.1 | $ | 0.5 | $ | (0.4) | (80.0)% | $ | 0.9 | $ | 3.3 | $ | (2.4) | (72.7)% | ||||||||||||||||||||||||||||||||||||
Gross profit (loss) | (0.3) | (0.6) | 0.3 | (0.4) | (1.5) | 1.1 | ||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expense | 3.8 | 4.7 | (0.9) | 12.2 | 12.4 | (0.2) | ||||||||||||||||||||||||||||||||||||||||||||
Loss | $ | (4.1) | $ | (5.3) | $ | 1.2 | (22.6)% | $ | (12.6) | $ | (13.9) | $ | 1.3 | (9.4)% | ||||||||||||||||||||||||||||||||||||
Consolidated Revenues | $ | 285.8 | $ | 268.3 | $ | 17.5 | 6.5% | $ | 870.4 | $ | 783.1 | $ | 87.3 | 11.1% | ||||||||||||||||||||||||||||||||||||
Consolidated Segment Income | 27.2 | 35.7 | (8.5) | (23.8)% | 97.8 | 98.6 | (0.8) | (0.8)% | ||||||||||||||||||||||||||||||||||||||||||
as a percent of revenues | 9.5 | % | 13.3 | % | -380 bps | 11.2 | % | 12.6 | % | -140 bps | ||||||||||||||||||||||||||||||||||||||||
Total segment income | $ | 27.2 | $ | 35.7 | $ | (8.5) | $ | 97.8 | $ | 98.6 | $ | (0.8) | ||||||||||||||||||||||||||||||||||||||
Corporate expense | 11.5 | 11.8 | (0.3) | 39.0 | 33.8 | 5.2 | ||||||||||||||||||||||||||||||||||||||||||||
Long-term incentive compensation expense | 3.4 | 3.2 | 0.2 | 9.5 | 9.6 | (0.1) | ||||||||||||||||||||||||||||||||||||||||||||
Special charges, net | 0.5 | 0.3 | 0.2 | 1.9 | 1.6 | 0.3 | ||||||||||||||||||||||||||||||||||||||||||||
Other operating (income) expense | — | — | — | 2.7 | (0.4) | 3.1 | ||||||||||||||||||||||||||||||||||||||||||||
Consolidated operating income | $ | 11.8 | $ | 20.4 | $ | (8.6) | (42.2)% | $ | 44.7 | $ | 54.0 | $ | (9.3) | (17.2)% | ||||||||||||||||||||||||||||||||||||
as a percent of revenues | 4.1 | % | 7.6 | % | -350 bps | 5.1 | % | 6.9 | % | -180 bps |
SPX CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||||||||||||
(Unaudited; in millions) | ||||||||||||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||||||||||||
October 2, 2021 | September 26, 2020 | October 2, 2021 | September 26, 2020 | |||||||||||||||||||||||
Cash flows from (used in) operating activities: | ||||||||||||||||||||||||||
Net income | $ | 331.1 | $ | 22.8 | $ | 419.4 | $ | 72.6 | ||||||||||||||||||
Less: Income from discontinued operations, net of tax | 323.4 | 7.2 | 378.0 | 32.3 | ||||||||||||||||||||||
Income from continuing operations | 7.7 | 15.6 | 41.4 | 40.3 | ||||||||||||||||||||||
Adjustments to reconcile income from continuing operations to net cash from operating activities: | ||||||||||||||||||||||||||
Special charges, net | 0.5 | 0.3 | 1.9 | 1.6 | ||||||||||||||||||||||
Gain on change in fair value of equity security | (1.6) | (2.1) | (9.0) | (7.4) | ||||||||||||||||||||||
Deferred and other income taxes | (0.4) | 2.0 | 1.9 | 13.0 | ||||||||||||||||||||||
Depreciation and amortization | 12.0 | 7.8 | 32.1 | 21.6 | ||||||||||||||||||||||
Pension and other employee benefits | 1.1 | 1.7 | 4.1 | 5.3 | ||||||||||||||||||||||
Long-term incentive compensation | 3.4 | 3.2 | 9.5 | 9.6 | ||||||||||||||||||||||
Other, net | 0.4 | 1.5 | 3.6 | 3.3 | ||||||||||||||||||||||
Changes in operating assets and liabilities, net of effects from acquisitions: | ||||||||||||||||||||||||||
Accounts receivable and other assets | 46.9 | (1.1) | 62.5 | 51.1 | ||||||||||||||||||||||
Inventories | (14.1) | 3.1 | (20.1) | (24.1) | ||||||||||||||||||||||
Accounts payable, accrued expenses and other | (0.4) | (10.6) | (31.5) | (101.0) | ||||||||||||||||||||||
Cash spending on restructuring actions | (0.4) | (0.5) | (2.4) | (2.3) | ||||||||||||||||||||||
Net cash from continuing operations | 55.1 | 20.9 | 94.0 | 11.0 | ||||||||||||||||||||||
Net cash from discontinued operations | 19.8 | 9.2 | 59.8 | 45.4 | ||||||||||||||||||||||
Net cash from operating activities | 74.9 | 30.1 | 153.8 | 56.4 | ||||||||||||||||||||||
Cash flows from (used in) investing activities: | ||||||||||||||||||||||||||
Proceeds from company-owned life insurance policies, net | 4.3 | — | 8.2 | 1.1 | ||||||||||||||||||||||
Business acquisitions, net of cash acquired | (38.1) | (87.9) | (120.0) | (87.9) | ||||||||||||||||||||||
Capital expenditures | (3.3) | (4.2) | (7.5) | (12.5) | ||||||||||||||||||||||
Net cash used in continuing operations | (37.1) | (92.1) | (119.3) | (99.3) | ||||||||||||||||||||||
Net cash from (used in) discontinued operations | 619.1 | (1.4) | 617.9 | (2.5) | ||||||||||||||||||||||
Net cash from (used in) investing activities | 582.0 | (93.5) | 498.6 | (101.8) | ||||||||||||||||||||||
Cash flows from (used in) financing activities: | ||||||||||||||||||||||||||
Borrowings under senior credit facilities | 107.1 | 5.2 | 209.1 | 183.9 | ||||||||||||||||||||||
Repayments under senior credit facilities | (248.7) | (30.2) | (343.6) | (118.9) | ||||||||||||||||||||||
Borrowings under trade receivables financing arrangement | 47.0 | — | 179.0 | 65.0 | ||||||||||||||||||||||
Repayments under trade receivables financing arrangement | (73.0) | (30.4) | (207.0) | (60.4) | ||||||||||||||||||||||
Net repayments under other financing arrangements | (0.3) | (0.4) | (0.3) | (1.8) | ||||||||||||||||||||||
Payment of contingent consideration | — | — | — | (1.5) | ||||||||||||||||||||||
Minimum withholdings paid on behalf of employees for net share settlements, net of proceeds from the exercise of employee stock options | 0.2 | 0.5 | (4.0) | (1.8) | ||||||||||||||||||||||
Net cash from (used in) continuing operations | (167.7) | (55.3) | (166.8) | 64.5 | ||||||||||||||||||||||
Net cash used in discontinued operations | — | — | — | — | ||||||||||||||||||||||
Net cash from (used in) financing activities | (167.7) | (55.3) | (166.8) | 64.5 | ||||||||||||||||||||||
Change in cash and equivalents due to changes in foreign currency exchange rates | 1.8 | (0.8) | 6.2 | (3.1) | ||||||||||||||||||||||
Net change in cash and equivalents | 491.0 | (119.5) | 491.8 | 16.0 | ||||||||||||||||||||||
Consolidated cash and equivalents, beginning of period | 69.1 | 190.2 | 68.3 | 54.7 | ||||||||||||||||||||||
Consolidated cash and equivalents, end of period | $ | 560.1 | $ | 70.7 | $ | 560.1 | $ | 70.7 |
SPX CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||
CASH AND DEBT RECONCILIATION | ||||||||||||||||||||||||||||||||
(Unaudited; in millions) | ||||||||||||||||||||||||||||||||
Nine months ended | ||||||||||||||||||||||||||||||||
October 2, 2021 | ||||||||||||||||||||||||||||||||
Beginning cash and equivalents | $ | 68.3 | ||||||||||||||||||||||||||||||
Cash from continuing operations | 94.0 | |||||||||||||||||||||||||||||||
Capital expenditures | (7.5) | |||||||||||||||||||||||||||||||
Proceeds from company-owned life insurance policies, net | 8.2 | |||||||||||||||||||||||||||||||
Business acquisitions, net of cash acquired | (120.0) | |||||||||||||||||||||||||||||||
Borrowings under senior credit facilities | 209.1 | |||||||||||||||||||||||||||||||
Repayments under senior credit facilities | (343.6) | |||||||||||||||||||||||||||||||
Net repayments under other financing arrangements | (28.3) | |||||||||||||||||||||||||||||||
Minimum withholdings paid on behalf of employees for net share settlements, net of proceeds from the exercise of employee stock options | (4.0) | |||||||||||||||||||||||||||||||
Cash from discontinued operations | 677.7 | |||||||||||||||||||||||||||||||
Change in cash due to changes in foreign currency exchange rates | 6.2 | |||||||||||||||||||||||||||||||
Ending cash and equivalents | $ | 560.1 | ||||||||||||||||||||||||||||||
Debt at | Debt at | |||||||||||||||||||||||||||||||
December 31, 2020 | Borrowings | Repayments | Other | October 2, 2021 | ||||||||||||||||||||||||||||
Revolving loans | $ | 129.8 | $ | 209.1 | $ | (338.9) | $ | — | $ | — | ||||||||||||||||||||||
Term loan | 250.0 | — | (4.7) | — | 245.3 | |||||||||||||||||||||||||||
Trade receivables financing arrangement | 28.0 | 179.0 | (207.0) | — | — | |||||||||||||||||||||||||||
Other indebtedness | 6.0 | 0.6 | (0.9) | (2.3) | 3.4 | |||||||||||||||||||||||||||
Less: Deferred financing costs associated with the term loan | (1.4) | — | — | 0.3 | (1.1) | |||||||||||||||||||||||||||
Totals | $ | 412.4 | $ | 388.7 | $ | (551.5) | $ | (2.0) | $ | 247.6 |
SPX CORPORATION AND SUBSIDIARIES | |||||||||||||||||
NON-GAAP RECONCILIATION - ORGANIC REVENUE | |||||||||||||||||
HVAC AND DETECTION & MEASUREMENT REPORTABLE SEGMENTS | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Three months ended October 2, 2021 | |||||||||||||||||
HVAC | Detection & Measurement | ||||||||||||||||
Net Revenue Growth (Decline) | (1.8) | % | 24.9 | % | |||||||||||||
Exclude: Foreign Currency | 0.6 | % | 1.1 | % | |||||||||||||
Exclude: Acquisitions | — | % | 16.2 | % | |||||||||||||
Organic Revenue Growth (Decline) | (2.4) | % | 7.6 | % |
SPX CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||||||
NON-GAAP RECONCILIATION - REVENUE AND SEGMENT INCOME | ||||||||||||||||||||||||||
(Unaudited; in millions) | ||||||||||||||||||||||||||
CONSOLIDATED SPX: | Three months ended | Nine months ended | ||||||||||||||||||||||||
October 2, 2021 | September 26, 2020 | October 2, 2021 | September 26, 2020 | |||||||||||||||||||||||
Consolidated revenue | $ | 285.8 | $ | 268.3 | $ | 870.4 | $ | 783.1 | ||||||||||||||||||
Exclude: "Other" operating segment (1) | 0.1 | 0.5 | 0.9 | 3.3 | ||||||||||||||||||||||
Adjusted consolidated revenue | $ | 285.7 | $ | 267.8 | $ | 869.5 | $ | 779.8 | ||||||||||||||||||
Total segment income | $ | 27.2 | $ | 35.7 | $ | 97.8 | $ | 98.6 | ||||||||||||||||||
Exclude: "Other" operating segment (1) | (4.1) | (5.3) | (12.6) | (13.9) | ||||||||||||||||||||||
Exclude: Acquisition related and other costs (2) | (3.3) | — | (4.9) | (0.1) | ||||||||||||||||||||||
Exclude: Amortization expense (3) | (5.5) | (3.3) | (16.0) | (8.3) | ||||||||||||||||||||||
Adjusted segment income | $ | 40.1 | $ | 44.3 | $ | 131.3 | $ | 120.9 | ||||||||||||||||||
as a percent of adjusted revenues (4) | 14.0 | % | 16.5 | % | 15.1 | % | 15.5 | % | ||||||||||||||||||
HVAC REPORTABLE SEGMENT: | ||||||||||||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||||||||||||
October 2, 2021 | September 26, 2020 | October 2, 2021 | September 26, 2020 | |||||||||||||||||||||||
HVAC segment income | $ | 21.4 | $ | 26.8 | $ | 69.1 | $ | 64.1 | ||||||||||||||||||
Exclude: Acquisition related costs (2) | — | — | — | (0.1) | ||||||||||||||||||||||
Exclude: Amortization expense (3) | (0.6) | (0.7) | (2.0) | (2.2) | ||||||||||||||||||||||
HVAC adjusted segment income | $ | 22.0 | $ | 27.5 | $ | 71.1 | $ | 66.4 | ||||||||||||||||||
as a percent of HVAC segment revenues (4) | 12.3 | % | 15.1 | % | 13.2 | % | 13.0 | % | ||||||||||||||||||
DETECTION & MEASUREMENT REPORTABLE SEGMENT: | ||||||||||||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||||||||||||
October 2, 2021 | September 26, 2020 | October 2, 2021 | September 26, 2020 | |||||||||||||||||||||||
Detection & Measurement segment income | $ | 9.9 | $ | 14.2 | $ | 41.3 | $ | 48.4 | ||||||||||||||||||
Exclude: Acquisition related and other costs (2) | (3.3) | — | (4.9) | — | ||||||||||||||||||||||
Exclude: Amortization expense (3) | (4.9) | (2.6) | (14.0) | (6.1) | ||||||||||||||||||||||
Detection & Measurement adjusted segment income | $ | 18.1 | $ | 16.8 | $ | 60.2 | $ | 54.5 | ||||||||||||||||||
as a percent of Detection & Measurement segment revenues (4) | 17.0 | % | 19.7 | % | 18.3 | % | 20.2 | % | ||||||||||||||||||
(1) Represents the removal of the financial results of our South Africa business. Note: This business is being reported as an "Other" operating segment for U.S. GAAP purposes due to wind-down activities that are occurring within this business. | ||||||||||||||||||||||||||
(2) Represents additional "Cost of products sold" recorded during the three months ended October 2, 2021 related to the step-up of inventory (to fair value) acquired in connection with the ECS acquisition and the ECS, Sealite and Sensors & Software acquisitions during the nine months ended October 2, 2021, acquisition related costs for the Detection & Measurement segment during the three and nine months ended October 2, 2021 and the HVAC reportable segment during the nine months ended September 26, 2020, and a non-cash asset impairment charge during the three and nine months ended October 2, 2021. | ||||||||||||||||||||||||||
(3) Represents amortization expense associated with acquired intangible assets. | ||||||||||||||||||||||||||
(4) See "Results of Reportable Segments and Other Operating Segment" 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 2, 2021 | September 26, 2020 | October 2, 2021 | September 26, 2020 | |||||||||||||||||||||||
Operating income | $ | 11.8 | $ | 20.4 | $ | 44.7 | $ | 54.0 | ||||||||||||||||||
Exclude: | ||||||||||||||||||||||||||
Aggregate operating losses of the South Africa business (1) | (4.6) | (5.3) | (13.7) | (14.1) | ||||||||||||||||||||||
Acquisition related and other costs (2) | (3.8) | (0.7) | (7.3) | (1.0) | ||||||||||||||||||||||
Other operating income (3) | — | — | — | 0.4 | ||||||||||||||||||||||
Amortization expense (4) | (5.5) | (3.3) | (16.0) | (8.3) | ||||||||||||||||||||||
Adjusted operating income | $ | 25.7 | $ | 29.7 | $ | 81.7 | $ | 77.0 | ||||||||||||||||||
as a percent of adjusted revenues (5) | 9.0 | % | 11.1 | % | 9.4 | % | 9.9 | % | ||||||||||||||||||
(1) Represents the removal of the financial results of our South Africa business, inclusive of "special charges" of $0.5 and $0.0 during the three months ended October 2, 2021 and September 26, 2020, respectively, and $1.1 and $0.2 during the nine months ended October 2, 2021 and September 26, 2020, respectively. | ||||||||||||||||||||||||||
(2) Represents costs during the three months ended October 2, 2021 and September 26, 2020 associated with (i) inventory step-up of $0.7 and $0.0, respectively, (ii) integration and transaction costs of $1.2 and $0.7, respectively and (iii) a non-cash asset impairment charge of $1.9 and $0.0, respectively and costs during the nine months ended October 2, 2021 and September 26, 2020 associated with (i) inventory step-up of $2.3 and $0.0, (ii) integration and transaction costs of $3.1 and $1.0, respectively and (iii) a non-cash asset impairment charge of $1.9 and $0.0, respectively. | ||||||||||||||||||||||||||
(3) For the nine months ended September 26, 2020, includes a gain of $0.4 related to revisions to estimates of certain liabilities retained in connection with the 2016 sale of the dry cooling business. | ||||||||||||||||||||||||||
(4) Represents amortization expense associated with acquired intangible assets. | ||||||||||||||||||||||||||
(5) See "Results of Reportable Segments and Other Operating Segment" for applicable percentages based on GAAP results. | ||||||||||||||||||||||||||
SPX CORPORATION AND SUBSIDIARIES | |||||||||||||||||
NON-GAAP RECONCILIATION - EARNINGS PER SHARE | |||||||||||||||||
Three Months Ended October 2, 2021 | |||||||||||||||||
(Unaudited; in millions, except per share values) | |||||||||||||||||
GAAP | Adjustments | Adjusted | |||||||||||||||
Segment income (1) | $ | 27.2 | $ | 12.9 | $ | 40.1 | |||||||||||
Corporate expense (2) | (11.5) | 0.5 | (11.0) | ||||||||||||||
Long-term incentive compensation expense | (3.4) | — | (3.4) | ||||||||||||||
Special charges, net (3) | (0.5) | 0.5 | — | ||||||||||||||
Other operating expense | — | — | — | ||||||||||||||
Operating income | 11.8 | 13.9 | 25.7 | ||||||||||||||
Other income, net (4) | 2.9 | (1.6) | 1.3 | ||||||||||||||
Interest expense, net | (3.3) | — | (3.3) | ||||||||||||||
Income from continuing operations before income taxes | 11.4 | 12.3 | 23.7 | ||||||||||||||
Income tax provision (5) | (3.7) | (0.8) | (4.5) | ||||||||||||||
Income from continuing operations | 7.7 | 11.5 | 19.2 | ||||||||||||||
Diluted shares outstanding | 46.650 | 46.650 | |||||||||||||||
Earnings per share from continuing operations | $ | 0.17 | $ | 0.41 | |||||||||||||
(1) Adjustment represents the removal of (i) operating losses associated with the South Africa business ($4.1), (ii) amortization expense associated with acquired intangible assets ($5.5), (iii) inventory step-up charges related to the ECS acquisition of ($0.7), (iv) integration costs of ($0.7) and (v) a non-cash asset impairment charge of ($1.9). | |||||||||||||||||
(2) Adjustment represents the removal of acquisition related expenses incurred during the period. | |||||||||||||||||
(3) Adjustment represents removal of restructuring charges associated with the South Africa business. | |||||||||||||||||
(4) Adjustment represents the removal of (i) a gain on an equity security associated with a fair value adjustment ($1.6), (ii) a gain on the sale of an equity security of ($0.4), (iii) non-service pension and postretirement income ($0.4), and (iv) foreign currency transaction losses and fixed asset disposal gains associated with the South African business ($0.8). | |||||||||||||||||
(5) Adjustment primarily represents the tax impact of items (1) through (4) above and the removal of certain non-recurring income tax charges. | |||||||||||||||||
SPX CORPORATION AND SUBSIDIARIES | |||||||||||||||||
NON-GAAP RECONCILIATION - EARNINGS PER SHARE | |||||||||||||||||
Three Months Ended September 26, 2020 | |||||||||||||||||
(Unaudited; in millions, except per share values) | |||||||||||||||||
GAAP | Adjustments | Adjusted | |||||||||||||||
Segment income (1) | $ | 35.7 | $ | 8.6 | $ | 44.3 | |||||||||||
Corporate expense (2) | (11.8) | 0.7 | (11.1) | ||||||||||||||
Long-term incentive compensation expense | (3.2) | — | (3.2) | ||||||||||||||
Special charges, net | (0.3) | — | (0.3) | ||||||||||||||
Operating income | 20.4 | 9.3 | 29.7 | ||||||||||||||
Other income, net (3) | 2.7 | (2.0) | 0.7 | ||||||||||||||
Interest expense, net | (4.4) | — | (4.4) | ||||||||||||||
Income from continuing operations before income taxes | 18.7 | 7.3 | 26.0 | ||||||||||||||
Income tax provision (4) | (3.1) | (1.0) | (4.1) | ||||||||||||||
Income from continuing operations | 15.6 | 6.3 | 21.9 | ||||||||||||||
Diluted shares outstanding | 45.894 | 45.894 | |||||||||||||||
Earnings per share from continuing operations | $ | 0.34 | $ | 0.48 | |||||||||||||
(1) Adjustment represents the removal of (i) operating losses associated with the South Africa business ($5.3) and (ii) amortization expense associated with acquired intangible assets ($3.3). | |||||||||||||||||
(2) Adjustment represents the removal of acquisition related expenses incurred during the period. | |||||||||||||||||
(3) Adjustment represents the removal of (i) a gain on an equity security associated with a fair value adjustment ($2.1), (ii) non-service pension and postretirement charges ($0.3) and (iii) removal of foreign currency gains associated with the South African projects ($0.2). | |||||||||||||||||
(4) Adjustment primarily represents the tax impact of items (1) through (3) above. |
Cover Page |
Nov. 03, 2021 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | Nov. 03, 2021 |
Entity Registrant Name | SPX CORP |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 1-6948 |
Entity Tax Identification Number | 38-1016240 |
Entity Address, Address Line One | 6325 Ardrey Kell Road |
Entity Address, Address Line Two | Suite 400 |
Entity Address, City or Town | Charlotte |
Entity Address, State or Province | NC |
Entity Address, Postal Zip Code | 28277 |
City Area Code | 980 |
Local Phone Number | 474-3700 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common Stock, par value $0.01 |
Trading Symbol | SPXC |
Security Exchange Name | NYSE |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0000088205 |
Amendment Flag | false |
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