SPX Technologies, Inc. (NYSE:SPXC) (“SPX”, the “Company”, “we” or
“our”) today reported results for the third quarter ended September
30, 2023.
Gene Lowe, President and CEO remarked, “During
Q3, our businesses continued to perform well, and the overall
demand for our products remained strong. We achieved significant
year-on-year revenue and margin growth, and our recent acquisitions
delivered solid results.”
Mr. Lowe continued, “Considering our
year-to-date performance and outlook, we are increasing our
full-year 2023 guidance for Adjusted EPS* to a range of $4.22 to
$4.32 from a prior range of $4.15 to $4.30, reflecting
year-over-year growth at the midpoint of approximately 38%. With a
robust backlog and positive operational momentum, we are
well-positioned to finish the year strong.
Mr. Lowe further commented, “During the quarter
we finalized an agreement with Mitsubishi to settle all remaining
claims between us with respect to the projects in South Africa.
This is a very positive development which ends our involvement with
these projects and allows us to further focus on growth.”
Third Quarter 2023
Overview:
For the third quarter of 2023, the Company
reported revenue of $448.7 million and operating income of $57.7
million, compared with revenue of $370.5 million and operating
income of $37.3 million in the third quarter of 2022. Diluted
income per share from continuing operations in the third quarter of
2023 was $0.76, compared with $0.27 in the third quarter of
2022.
Adjusted operating income* was $75.8 million,
compared with $48.3 million in the third quarter of 2022. Adjusted
earnings per share* in the third quarter of 2023 was $1.06,
compared with $0.81 in the third quarter of 2022. Adjusted
operating income* and Adjusted earnings per share* exclude
amortization expense, and acquisition and strategic
transformation-related costs, among other items.
Third Quarter and Year-to-Date Financial
Comparisons:
($
millions) |
|
Q3 2023 |
|
Q3 2022 |
|
2023 YTD |
|
2022 YTD |
Revenue |
|
$ |
448.7 |
|
$ |
370.5 |
|
$ |
1,271.8 |
|
$ |
1,031.6 |
Consolidated operating income |
|
|
57.7 |
|
|
37.3 |
|
|
158.8 |
|
|
75.9 |
Income from continuing operations |
|
|
35.7 |
|
|
12.5 |
|
|
113.1 |
|
|
44.6 |
Consolidated segment income* |
|
|
91.6 |
|
|
63.4 |
|
|
250.4 |
|
|
159.1 |
Adjusted operating income* |
|
|
75.8 |
|
|
48.3 |
|
|
203.5 |
|
|
115.6 |
* Non-GAAP financial measure. See attached
schedules for reconciliation of each historical non-GAAP measure to
the respective most comparable GAAP financial measure.
Reconciliations of non-GAAP guidance measures are not practicable
and accordingly are not included in the attached schedules.
HVAC Segment
Revenue for the third quarter of 2023 was $289.2
million, compared with $227.8 million in the third quarter of 2022,
an increase of 27.0%, including a 16.3% increase from the
acquisitions of TAMCO and ASPEQ, a 10.6% increase in organic
revenue, and a 0.1% favorable impact related to the translation
effect of currency fluctuation. The organic increase in revenue was
driven by higher sales of cooling products, including increases in
both price and volume. Volume increases were supported by greater
plant throughput and more stable labor and supply chain
environments.
Segment income in the third quarter of 2023 was
$58.3 million, or 20.2% of revenue. This compares with segment
income of $33.1 million, or 14.5% of revenue in the third quarter
of 2022. The increase in segment income and 570 basis points
increase in segment income margin were primarily due to the higher
revenue noted above and a more favorable sales mix associated with
acquisitions.
Detection & Measurement
Segment
Revenue for the third quarter of 2023 was $159.5
million, compared with $142.7 million in the third quarter of 2022,
an increase of 11.8%, including a 10.4% increase in organic
revenue, and a 1.4% favorable impact related to the translation
effect of currency fluctuation. The organic increase in revenue was
primarily due to higher volumes of large projects within the
communication technologies, transportation and aids to navigation
businesses.
Segment income for the third quarter of 2023 was
$33.3 million, or 20.9% of revenue. This compares with segment
income of $30.3 million, or 21.2% of revenue in the third quarter
of 2022. The increase in segment income was primarily due to the
higher revenue noted above. The decrease of 30 basis points in
segment income margin was primarily due to less favorable sales mix
associated with certain of the large projects mentioned above.
Settlement Agreement in South
Africa: During the third quarter, a subsidiary of SPX
entered into an agreement with Mitsubishi Heavy Industries Power to
resolve all claims between the parties with respect to the two
large power projects in South Africa. In connection with this
agreement, we incurred a charge that is included in “Loss from
discontinued operations, net of tax” for the three and nine months
ended September 30, 2023.
Financial Update: As of
September 30, 2023, SPX had total outstanding debt of $673.9
million and total cash of $102.0 million. During the third quarter
of 2023, SPX’s net operating cash flow from continuing operations
totaled $45.4 million. Capital expenditures for continuing
operations for the third quarter of 2023 were $7.8 million.
2023 Guidance Update:
SPX is updating full-year 2023 guidance, and is
now targeting consolidated revenue of approximately $1.74-$1.77
billion ($1.72-$1.75 billion prior), an adjusted operating income
margin* of approximately 16.3% (16.00%-16.25% prior), and adjusted
earnings per share* in a range of $4.22-$4.32 ($4.15-$4.30
prior).
Segment and company performance is expected to
be as follows:
|
|
Revenue |
|
Segment Income Margin % |
HVAC |
|
$1,125-$1,145 million($1,125-$1,145 million prior) |
|
~20%(~20% prior) |
Detection & Measurement |
|
$610-$620 million($590-$605 million prior) |
|
~20%(~20% prior) |
Total SPX |
|
$1.74-$1.77 billion($1.72-$1.75 billion prior) |
|
~20%(~20% prior) |
Conference Call: SPX
Technologies will host a conference call at 4:45 p.m. (EDT) today
to discuss third quarter results. The call will be simultaneously
webcast via the Company’s website at www.spx.com and the slide
presentation will be available in the Investor Relations section of
the site.
Call Access: To access the call
by phone, please go to this
linkhttps://register.vevent.com/register/BI4a94c8d62c9d4b5fb86c5a1b140f2a94
and you will be provided with dial-in details. To avoid delays, we
encourage participants to dial into the conference call fifteen
minutes ahead of the scheduled start time. A replay of the webcast
will also be available for a limited time at www.spx.com.
Upcoming Investor Events:
Company management plans to conduct virtual meetings with investors
during the fourth quarter of 2023 and the Company will also be
participating in the Baird Industrials Conference in Chicago on
November 9th, and the UBS Industrials Summit in Palm Beach, Florida
on November 29th.
About SPX Technologies, Inc.:
SPX Technologies, Inc. is a diversified, global supplier of highly
engineered products and technologies, holding leadership positions
in the HVAC and detection and measurement markets. Based in
Charlotte, North Carolina, SPX Technologies, Inc. has more than
4,000 employees in 15 countries. SPX Technologies, Inc. is listed
on the New York Stock Exchange under the ticker symbol “SPXC.” For
more information, please visit www.spx.com.
Non-GAAP Financial Information:
This press release contains certain non-GAAP financial measures,
including total segment income, adjusted operating income, adjusted
income from continuing operations before income taxes, adjusted
income from continuing operations, adjusted earnings per share from
continuing operations (or, adjusted EPS) and organic revenue
growth. These non-GAAP financial measures do not provide investors
with an accurate measure of, and should not be used as a substitute
for, the comparable financial measures as determined in accordance
with accounting principles generally accepted in the United States
(“GAAP”). The Company believes these non-GAAP financial measures,
when read in conjunction with the comparable GAAP financial
measures, give investors a useful tool to assess and understand the
Company’s overall financial performance, because they exclude items
of income or expense that the Company believes are not reflective
of its ongoing operating performance, allowing for a better
period-to-period comparison of operations of the Company.
Additionally, the Company’s management uses these non-GAAP
financial measures as measures of the Company’s performance. The
Company acknowledges that there are many items that impact a
company’s reported results and the adjustments reflected in these
non-GAAP measures are not intended to present all items that may
have impacted these results. In addition, these non-GAAP measures
are not necessarily comparable to similarly titled measures used by
other companies.
Refer to the tables included in this press
release for the components of each of the non-GAAP financial
measures, and for the reconciliations of historical non-GAAP
financial measures to their respective comparable GAAP measures.
Our non-GAAP financial guidance excludes items, which would be
included in our GAAP financial measures, that we do not consider
indicative of our on-going performance; and are calculated in a
manner consistent with the presentation of the similarly titled
historical non-GAAP measures presented in this press release. These
items include, but are not limited to, acquisition costs, costs
associated with dispositions, and potential non-cash income or
expense items associated with changes in market interest rates and
actuarial or other data related to our pension and postretirement
plans, as the ultimate aggregate amounts associated with these
items are out of our control and/or cannot be reasonably predicted.
Accordingly, a reconciliation of our non-GAAP financial guidance to
the most comparable GAAP financial measures is not practicable.
Full-year guidance excludes changes in the number of shares
outstanding; impacts from future acquisitions, dispositions and
related transaction costs, restructuring costs, incremental impacts
of tariffs and trade tensions on market demand and costs subsequent
to the end of the third quarter, the impact of foreign exchange
rate changes subsequent to the end of the third quarter, and
environmental and litigation charges.
Forward Looking Statements:
Certain statements in this press release are forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended, and are subject to the safe harbor created
thereby. Please read these results in conjunction with the
Company’s documents filed with the Securities and Exchange
Commission, including the Company’s most recent annual report on
Form 10-K and quarterly report on Form 10-Q. These filings identify
important risk factors and other uncertainties that could cause
actual results to differ from those contained in the
forward-looking statements, including the following: cyclical
changes and specific industry events in the Company’s markets;
changes in anticipated capital investment and maintenance
expenditures by customers; availability, limitations or cost
increases of raw materials and/or commodities that cannot be
recovered in product pricing; the impact of competition on profit
margins and the Company’s ability to maintain or increase market
share; inadequate performance by third-party suppliers and
subcontractors for outsourced products, components and services and
other supply-chain risks; the uncertainty of claims resolution with
respect to environmental and other contingent liabilities; the
impact of climate change and any legal or regulatory actions taken
in response thereto; cyber-security risks; risks with respect to
the protection of intellectual property, including with respect to
the Company’s digitalization initiatives; the impact of overruns,
inflation and the incurrence of delays with respect to long-term
fixed-price contracts; defects or errors in current or planned
products; the impact of pandemics and governmental and other
actions taken in response; domestic economic, political, legal,
accounting and business developments adversely affecting the
Company’s business, including regulatory changes; changes in
worldwide economic conditions, including as a result of
geopolitical conflicts; uncertainties with respect to the Company’s
ability to identify acceptable acquisition targets; uncertainties
surrounding timing and successful completion of any announced
acquisition or disposition transactions, including with respect to
integrating acquisitions and achieving cost savings or other
benefits from acquisitions; the impact of retained liabilities of
disposed businesses; potential labor disputes; and extreme weather
conditions and natural and other disasters.
Actual results may differ materially from these
statements. The words “guidance,” “believe,” “expect,”
“anticipate,” “project” and similar expressions identify
forward-looking statements. Although the Company believes that the
expectations reflected in its forward-looking statements are
reasonable, it can give no assurance that such expectations will
prove to be correct.
Statements in this press release speak only as
of the date of this press release, and SPX Technologies disclaims
any responsibility to update or revise such statements, except as
required by law.
SOURCE SPX Technologies, Inc.
Investor and Media
Contacts:Paul Clegg, VP, Investor Relations and
CommunicationsPhone: 980-474-3806E-mail:
spx.investor@spx.comSource: SPX Technologies, Inc.
SPX TECHNOLOGIES, INC. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
(Unaudited; in millions, except per share
amounts) |
|
|
|
|
|
|
|
|
|
Three months ended |
|
Nine months ended |
|
September 30, 2023 |
|
October 1, 2022 |
|
September 30, 2023 |
|
October 1, 2022 |
|
|
|
|
|
|
|
|
Revenues |
$ |
448.7 |
|
|
$ |
370.5 |
|
|
$ |
1,271.8 |
|
|
$ |
1,031.6 |
|
Costs
and expenses: |
|
|
|
|
|
|
|
Cost of products sold |
|
280.1 |
|
|
|
237.4 |
|
|
|
789.7 |
|
|
|
669.9 |
|
Selling, general and administrative |
|
96.3 |
|
|
|
89.1 |
|
|
|
290.9 |
|
|
|
261.6 |
|
Intangible amortization |
|
14.6 |
|
|
|
6.7 |
|
|
|
32.4 |
|
|
|
23.1 |
|
Special charges, net |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.1 |
|
Other operating expense, net |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1.0 |
|
Operating income |
|
57.7 |
|
|
|
37.3 |
|
|
|
158.8 |
|
|
|
75.9 |
|
|
|
|
|
|
|
|
|
Other
income (expense), net |
|
(0.2 |
) |
|
|
(24.6 |
) |
|
|
2.3 |
|
|
|
(19.8 |
) |
Interest
expense |
|
(10.2 |
) |
|
|
(2.6 |
) |
|
|
(18.0 |
) |
|
|
(7.3 |
) |
Interest
income |
|
0.8 |
|
|
|
1.0 |
|
|
|
1.5 |
|
|
|
1.4 |
|
Loss on
amendment/refinancing of senior credit agreement |
|
— |
|
|
|
(1.1 |
) |
|
|
— |
|
|
|
(1.1 |
) |
Income from continuing operations before income taxes |
|
48.1 |
|
|
|
10.0 |
|
|
|
144.6 |
|
|
|
49.1 |
|
Income
tax (provision) benefit |
|
(12.4 |
) |
|
|
2.5 |
|
|
|
(31.5 |
) |
|
|
(4.5 |
) |
Income from continuing operations |
|
35.7 |
|
|
|
12.5 |
|
|
|
113.1 |
|
|
|
44.6 |
|
|
|
|
|
|
|
|
|
Income (loss) from
discontinued operations, net of tax |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Loss on disposition of
discontinued operations, net of tax |
|
(56.1 |
) |
|
|
(9.4 |
) |
|
|
(54.7 |
) |
|
|
(17.1 |
) |
Loss from discontinued operations, net of tax |
|
(56.1 |
) |
|
|
(9.4 |
) |
|
|
(54.7 |
) |
|
|
(17.1 |
) |
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
(20.4 |
) |
|
$ |
3.1 |
|
|
$ |
58.4 |
|
|
$ |
27.5 |
|
|
|
|
|
|
|
|
|
Basic income (loss) per share
of common stock: |
|
|
|
|
|
|
|
Income from continuing operations |
$ |
0.78 |
|
|
$ |
0.28 |
|
|
$ |
2.49 |
|
|
$ |
0.98 |
|
Loss from discontinued operations, net of tax |
|
(1.23 |
) |
|
|
(0.21 |
) |
|
|
(1.21 |
) |
|
|
(0.38 |
) |
Net income (loss) per share |
$ |
(0.45 |
) |
|
$ |
0.07 |
|
|
$ |
1.28 |
|
|
$ |
0.60 |
|
|
|
|
|
|
|
|
|
Weighted-average number of
common shares outstanding — basic |
|
45.608 |
|
|
|
45.144 |
|
|
|
45.507 |
|
|
|
45.382 |
|
|
|
|
|
|
|
|
|
Diluted income (loss) per
share of common stock: |
|
|
|
|
|
|
|
Income from continuing operations |
$ |
0.76 |
|
|
$ |
0.27 |
|
|
$ |
2.43 |
|
|
$ |
0.96 |
|
Loss from discontinued operations, net of tax |
|
(1.20 |
) |
|
|
(0.20 |
) |
|
|
(1.18 |
) |
|
|
(0.37 |
) |
Net income (loss) per share |
$ |
(0.44 |
) |
|
$ |
0.07 |
|
|
$ |
1.25 |
|
|
$ |
0.59 |
|
|
|
|
|
|
|
|
|
Weighted-average number of
common shares outstanding — diluted |
|
46.751 |
|
|
|
46.132 |
|
|
|
46.560 |
|
|
|
46.253 |
|
SPX TECHNOLOGIES, INC. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED BALANCE SHEETS |
(Unaudited; in millions) |
|
|
|
|
|
September 30, 2023 |
|
December 31, 2022 |
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and equivalents |
$ |
100.9 |
|
|
$ |
147.8 |
|
Accounts receivable, net |
|
304.7 |
|
|
|
263.5 |
|
Contract assets |
|
33.4 |
|
|
|
23.9 |
|
Inventories, net |
|
291.5 |
|
|
|
244.0 |
|
Other current assets |
|
38.1 |
|
|
|
41.9 |
|
Total current assets |
|
768.6 |
|
|
|
721.1 |
|
Property, plant and
equipment: |
|
|
|
Land |
|
17.3 |
|
|
|
13.9 |
|
Buildings and leasehold improvements |
|
73.2 |
|
|
|
63.7 |
|
Machinery and equipment |
|
257.5 |
|
|
|
233.4 |
|
|
|
348.0 |
|
|
|
311.0 |
|
Accumulated depreciation |
|
(212.9 |
) |
|
|
(201.1 |
) |
Property, plant and equipment, net |
|
135.1 |
|
|
|
109.9 |
|
Goodwill |
|
674.9 |
|
|
|
455.3 |
|
Intangibles, net |
|
687.9 |
|
|
|
401.6 |
|
Other assets |
|
193.0 |
|
|
|
197.4 |
|
Deferred income taxes |
|
3.2 |
|
|
|
2.7 |
|
Assets of DBT and Heat
Transfer |
|
10.3 |
|
|
|
42.9 |
|
TOTAL ASSETS |
$ |
2,473.0 |
|
|
$ |
1,930.9 |
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
131.7 |
|
|
$ |
124.5 |
|
Contract liabilities |
|
66.8 |
|
|
|
52.8 |
|
Accrued expenses |
|
147.1 |
|
|
|
148.0 |
|
Income taxes payable |
|
4.0 |
|
|
|
4.7 |
|
Short-term debt |
|
130.1 |
|
|
|
1.8 |
|
Current maturities of long-term debt |
|
14.0 |
|
|
|
2.0 |
|
Total current liabilities |
|
493.7 |
|
|
|
333.8 |
|
|
|
|
|
Long-term debt |
|
529.8 |
|
|
|
243.0 |
|
Deferred and other income
taxes |
|
63.1 |
|
|
|
34.8 |
|
Other long-term
liabilities |
|
200.0 |
|
|
|
208.3 |
|
Liabilities of DBT and Heat
Transfer |
|
39.5 |
|
|
|
31.8 |
|
Total long-term liabilities |
|
832.4 |
|
|
|
517.9 |
|
|
|
|
|
Stockholders' equity: |
|
|
|
Common stock |
|
0.5 |
|
|
|
0.5 |
|
Paid-in capital |
|
1,348.0 |
|
|
|
1,338.3 |
|
Retained earnings (deficit) |
|
6.8 |
|
|
|
(51.6 |
) |
Accumulated other comprehensive income |
|
250.7 |
|
|
|
257.5 |
|
Common stock in treasury |
|
(459.1 |
) |
|
|
(465.5 |
) |
Total stockholders' equity |
|
1,146.9 |
|
|
|
1,079.2 |
|
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY |
$ |
2,473.0 |
|
|
$ |
1,930.9 |
|
SPX TECHNOLOGIES, INC. AND SUBSIDIARIES |
RESULTS OF REPORTABLE SEGMENTS |
(Unaudited; in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
|
|
|
Nine months ended |
|
|
|
|
|
|
September 30, 2023 |
|
October 1, 2022 |
|
Δ |
|
%/bps |
|
September 30, 2023 |
|
October 1, 2022 |
|
Δ |
|
%/bps |
HVAC reportable
segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
289.2 |
|
|
$ |
227.8 |
|
|
$ |
61.4 |
|
|
27.0% |
|
$ |
809.8 |
|
|
$ |
639.6 |
|
|
$ |
170.2 |
|
|
26.6% |
Gross profit |
|
|
101.8 |
|
|
|
69.3 |
|
|
|
32.5 |
|
|
|
|
|
289.2 |
|
|
|
188.0 |
|
|
|
101.2 |
|
|
|
Selling, general and
administrative expense |
|
|
43.5 |
|
|
|
36.2 |
|
|
|
7.3 |
|
|
|
|
|
128.0 |
|
|
|
106.0 |
|
|
|
22.0 |
|
|
|
Income |
|
$ |
58.3 |
|
|
$ |
33.1 |
|
|
$ |
25.2 |
|
|
76.1% |
|
$ |
161.2 |
|
|
$ |
82.0 |
|
|
$ |
79.2 |
|
|
96.6% |
as a percent of revenues |
|
|
20.2 |
% |
|
|
14.5 |
% |
|
|
|
570bps |
|
|
19.9 |
% |
|
|
12.8 |
% |
|
|
|
710bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Detection &
Measurement reportable segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
159.5 |
|
|
$ |
142.7 |
|
|
$ |
16.8 |
|
|
11.8% |
|
$ |
462.0 |
|
|
$ |
392.0 |
|
|
$ |
70.0 |
|
|
17.9% |
Gross profit |
|
|
69.3 |
|
|
|
63.9 |
|
|
|
5.4 |
|
|
|
|
|
196.5 |
|
|
|
174.8 |
|
|
|
21.7 |
|
|
|
Selling, general and
administrative expense |
|
|
36.0 |
|
|
|
33.6 |
|
|
|
2.4 |
|
|
|
|
|
107.3 |
|
|
|
97.7 |
|
|
|
9.6 |
|
|
|
Income |
|
$ |
33.3 |
|
|
$ |
30.3 |
|
|
$ |
3.0 |
|
|
9.9% |
|
$ |
89.2 |
|
|
$ |
77.1 |
|
|
$ |
12.1 |
|
|
15.7% |
as a percent of revenues |
|
|
20.9 |
% |
|
|
21.2 |
% |
|
|
|
-30bps |
|
|
19.3 |
% |
|
|
19.7 |
% |
|
|
|
-40bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Revenues |
|
$ |
448.7 |
|
|
$ |
370.5 |
|
|
$ |
78.2 |
|
|
21.1% |
|
$ |
1,271.8 |
|
|
$ |
1,031.6 |
|
|
$ |
240.2 |
|
|
23.3% |
Consolidated Operating
Income |
|
|
57.7 |
|
|
|
37.3 |
|
|
|
20.4 |
|
|
54.7% |
|
|
158.8 |
|
|
|
75.9 |
|
|
|
82.9 |
|
|
109.2% |
as a percent of revenues |
|
|
12.9 |
% |
|
|
10.1 |
% |
|
|
|
280bps |
|
|
12.5 |
% |
|
|
7.4 |
% |
|
|
|
510bps |
Consolidated Segment
Income |
|
|
91.6 |
|
|
|
63.4 |
|
|
|
28.2 |
|
|
44.5% |
|
|
250.4 |
|
|
|
159.1 |
|
|
|
91.3 |
|
|
57.4% |
as a percent of revenues |
|
|
20.4 |
% |
|
|
17.1 |
% |
|
|
|
330bps |
|
|
19.7 |
% |
|
|
15.4 |
% |
|
|
|
430bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated operating
income |
|
$ |
57.7 |
|
|
$ |
37.3 |
|
|
$ |
20.4 |
|
|
|
|
$ |
158.8 |
|
|
$ |
75.9 |
|
|
$ |
82.9 |
|
|
|
Exclude: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate expense |
|
|
13.0 |
|
|
|
17.2 |
|
|
|
(4.2 |
) |
|
|
|
|
44.2 |
|
|
|
50.2 |
|
|
|
(6.0 |
) |
|
|
Acquisition-related and other costs(1) |
|
|
2.9 |
|
|
|
0.1 |
|
|
|
2.8 |
|
|
|
|
|
5.0 |
|
|
|
1.1 |
|
|
|
3.9 |
|
|
|
Long-term incentive compensation expense |
|
|
3.4 |
|
|
|
2.1 |
|
|
|
1.3 |
|
|
|
|
|
10.0 |
|
|
|
7.7 |
|
|
|
2.3 |
|
|
|
Amortization of intangible assets(2) |
|
|
14.6 |
|
|
|
6.7 |
|
|
|
7.9 |
|
|
|
|
|
32.4 |
|
|
|
23.1 |
|
|
|
9.3 |
|
|
|
Special charges, net |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
— |
|
|
|
0.1 |
|
|
|
(0.1 |
) |
|
|
Other operating expense, net |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
— |
|
|
|
1.0 |
|
|
|
(1.0 |
) |
|
|
Consolidated segment
income |
|
$ |
91.6 |
|
|
$ |
63.4 |
|
|
$ |
28.2 |
|
|
44.5% |
|
$ |
250.4 |
|
|
$ |
159.1 |
|
|
$ |
91.3 |
|
|
57.4% |
as a percent of revenues |
|
|
20.4 |
% |
|
|
17.1 |
% |
|
|
|
330bps |
|
|
19.7 |
% |
|
|
15.4 |
% |
|
|
|
430bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)Represents
certain acquisition-related costs incurred of $2.9 and $5.0 during
the three and nine months ended September 30, 2023, respectively,
and $0.1 and $1.1 during the three and nine months ended October 1,
2022, respectively, including additional “Cost of products sold”
related to the step-up of inventory (to fair value) acquired in
connection with the ASPEQ acquisition of $2.5 and $3.6 during the
three and nine months ended September 30, 2023, respectively, and
the ITL acquisition of $0.1 and $1.1 during the three and nine
months ended October 1, 2022, respectively. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)Represents
amortization expense associated with acquired intangible
assets. |
SPX TECHNOLOGIES, INC. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(Unaudited; in millions) |
|
|
|
|
|
|
|
|
|
Three months ended |
|
Nine months ended |
|
September 30, 2023 |
|
October 1, 2022 |
|
September 30, 2023 |
|
October 1, 2022 |
Cash flows from (used
in) operating activities: |
|
|
|
|
|
|
|
Net income (loss) |
$ |
(20.4 |
) |
|
$ |
3.1 |
|
|
$ |
58.4 |
|
|
$ |
27.5 |
|
Less: Loss from discontinued
operations, net of tax |
|
(56.1 |
) |
|
|
(9.4 |
) |
|
|
(54.7 |
) |
|
|
(17.1 |
) |
Income from continuing
operations |
|
35.7 |
|
|
|
12.5 |
|
|
|
113.1 |
|
|
|
44.6 |
|
Adjustments to reconcile
income from continuing operations to net cash from (used in)
operating activities: |
|
|
|
|
|
|
|
Special charges, net |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.1 |
|
(Gain) loss on change in fair value of equity security |
|
— |
|
|
|
7.4 |
|
|
|
(3.6 |
) |
|
|
3.0 |
|
Deferred and other income taxes |
|
(12.1 |
) |
|
|
(7.9 |
) |
|
|
(22.5 |
) |
|
|
(16.9 |
) |
Depreciation and amortization |
|
19.7 |
|
|
|
11.3 |
|
|
|
46.4 |
|
|
|
36.9 |
|
Pension and other employee benefits |
|
2.5 |
|
|
|
3.7 |
|
|
|
8.2 |
|
|
|
10.0 |
|
Long-term incentive compensation |
|
3.4 |
|
|
|
2.1 |
|
|
|
10.0 |
|
|
|
7.7 |
|
Other, net |
|
(1.5 |
) |
|
|
0.4 |
|
|
|
(4.5 |
) |
|
|
1.4 |
|
Changes in operating assets
and liabilities, net of effects from acquisitions and
divestitures: |
|
|
|
|
|
|
|
Accounts receivable and other assets |
|
(21.6 |
) |
|
|
(15.9 |
) |
|
|
(16.7 |
) |
|
|
(20.9 |
) |
Inventories |
|
5.4 |
|
|
|
(33.5 |
) |
|
|
(21.6 |
) |
|
|
(78.4 |
) |
Accounts payable, accrued expenses and other |
|
13.9 |
|
|
|
14.1 |
|
|
|
11.2 |
|
|
|
(76.5 |
) |
Cash spending on restructuring actions |
|
— |
|
|
|
(0.1 |
) |
|
|
— |
|
|
|
(0.4 |
) |
Net cash from (used in)
continuing operations |
|
45.4 |
|
|
|
(5.9 |
) |
|
|
120.0 |
|
|
|
(89.4 |
) |
Net cash used in discontinued
operations |
|
(31.0 |
) |
|
|
(8.1 |
) |
|
|
(38.0 |
) |
|
|
(21.1 |
) |
Net cash from (used in)
operating activities |
|
14.4 |
|
|
|
(14.0 |
) |
|
|
82.0 |
|
|
|
(110.5 |
) |
|
|
|
|
|
|
|
|
Cash flows from (used
in) investing activities: |
|
|
|
|
|
|
|
Proceeds related to company-owned life insurance policies, net |
|
1.6 |
|
|
|
3.0 |
|
|
|
2.6 |
|
|
|
4.6 |
|
Business acquisitions, net of cash acquired |
|
(0.2 |
) |
|
|
1.4 |
|
|
|
(547.3 |
) |
|
|
(40.0 |
) |
Capital expenditures |
|
(7.8 |
) |
|
|
(4.0 |
) |
|
|
(16.5 |
) |
|
|
(10.0 |
) |
Net cash from (used in)
continuing operations |
|
(6.4 |
) |
|
|
0.4 |
|
|
|
(561.2 |
) |
|
|
(45.4 |
) |
Net cash used in discontinued
operations |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(13.9 |
) |
Net cash from (used in)
investing activities |
|
(6.4 |
) |
|
|
0.4 |
|
|
|
(561.2 |
) |
|
|
(59.3 |
) |
|
|
|
|
|
|
|
|
Cash flows from (used
in) financing activities: |
|
|
|
|
|
|
|
Borrowings under senior credit facilities |
|
31.3 |
|
|
|
245.0 |
|
|
|
851.3 |
|
|
|
245.0 |
|
Repayments under senior credit facilities |
|
(35.0 |
) |
|
|
(237.4 |
) |
|
|
(455.0 |
) |
|
|
(243.7 |
) |
Borrowings under trade receivables arrangement |
|
20.0 |
|
|
|
— |
|
|
|
81.0 |
|
|
|
— |
|
Repayments under trade receivables arrangement |
|
(18.0 |
) |
|
|
— |
|
|
|
(49.0 |
) |
|
|
— |
|
Net repayments under other financing arrangements |
|
(0.3 |
) |
|
|
(0.5 |
) |
|
|
(0.4 |
) |
|
|
(0.7 |
) |
Payment of contingent consideration |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1.3 |
) |
Minimum withholdings paid on behalf of employees for net share
settlements, net of proceeds from the exercise of employee stock
options |
|
0.9 |
|
|
|
0.3 |
|
|
|
(1.5 |
) |
|
|
(4.9 |
) |
Repurchases of common stock |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(33.7 |
) |
Financing fees paid |
|
— |
|
|
|
(1.9 |
) |
|
|
(1.3 |
) |
|
|
(1.9 |
) |
Net cash from (used in)
continuing operations |
|
(1.1 |
) |
|
|
5.5 |
|
|
|
425.1 |
|
|
|
(41.2 |
) |
Net cash from discontinued
operations |
|
— |
|
|
|
0.7 |
|
|
|
— |
|
|
|
1.0 |
|
Net cash from (used in)
financing activities |
|
(1.1 |
) |
|
|
6.2 |
|
|
|
425.1 |
|
|
|
(40.2 |
) |
Change in cash and equivalents
due to changes in foreign currency exchange rates |
|
(0.5 |
) |
|
|
(0.5 |
) |
|
|
(1.0 |
) |
|
|
1.3 |
|
Net change in cash and
equivalents |
|
6.4 |
|
|
|
(7.9 |
) |
|
|
(55.1 |
) |
|
|
(208.7 |
) |
Consolidated cash and
equivalents, beginning of period |
|
95.6 |
|
|
|
195.2 |
|
|
|
157.1 |
|
|
|
396.0 |
|
Consolidated cash and
equivalents, end of period |
$ |
102.0 |
|
|
$ |
187.3 |
|
|
$ |
102.0 |
|
|
$ |
187.3 |
|
|
Nine months ended |
|
September 30, 2023 |
|
October 1, 2022 |
Components of cash and
equivalents: |
|
|
|
Cash and equivalents |
$ |
100.9 |
|
$ |
183.4 |
Cash and equivalents included
in assets of DBT and Heat Transfer |
|
1.1 |
|
|
3.9 |
Total cash and
equivalents |
$ |
102.0 |
|
$ |
187.3 |
SPX TECHNOLOGIES, INC. AND SUBSIDIARIES |
CASH AND DEBT RECONCILIATION |
(Unaudited; in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended |
|
|
|
|
|
|
|
|
|
|
September 30, 2023 |
|
|
|
|
|
|
|
|
Beginning cash and
equivalents |
|
$ |
157.1 |
|
|
|
|
|
|
|
|
|
Cash from continuing
operations |
|
|
120.0 |
|
|
|
|
|
|
|
|
|
Capital expenditures |
|
|
(16.5 |
) |
|
|
|
|
|
|
|
|
Business acquisitions, net of
cash acquired |
|
|
(547.3 |
) |
|
|
|
|
|
|
|
|
Proceeds from company-owned
life insurance policies, net |
|
|
2.6 |
|
|
|
|
|
|
|
|
|
Borrowings under senior credit
facilities |
|
|
851.3 |
|
|
|
|
|
|
|
|
|
Repayments under senior credit
facilities |
|
|
(455.0 |
) |
|
|
|
|
|
|
|
|
Borrowings under trade
receivables agreement |
|
|
81.0 |
|
|
|
|
|
|
|
|
|
Repayments under trade
receivables arrangement |
|
|
(49.0 |
) |
|
|
|
|
|
|
|
|
Net repayments under other
financing arrangements |
|
|
(0.4 |
) |
|
|
|
|
|
|
|
|
Minimum withholdings paid on
behalf of employees for net share settlements, net of proceeds from
the exercise of employee stock options |
|
|
(1.5 |
) |
|
|
|
|
|
|
|
|
Financing fees paid |
|
|
(1.3 |
) |
|
|
|
|
|
|
|
|
Cash used in discontinued
operations |
|
|
(38.0 |
) |
|
|
|
|
|
|
|
|
Change in cash due to changes
in foreign currency exchange rates |
|
|
(1.0 |
) |
|
|
|
|
|
|
|
|
Ending cash and
equivalents |
|
$ |
102.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt at |
|
|
|
|
|
|
|
Debt at |
|
|
December 31, 2022 |
|
Borrowings |
|
Repayments |
|
Other |
|
September 30, 2023 |
Revolving loans |
|
$ |
— |
|
|
$ |
551.3 |
|
$ |
(455.0 |
) |
|
$ |
— |
|
|
$ |
96.3 |
|
Term loans |
|
|
245.0 |
|
|
|
300.0 |
|
|
— |
|
|
|
— |
|
|
|
545.0 |
|
Trade receivables financing
arrangement |
|
|
— |
|
|
|
81.0 |
|
|
(49.0 |
) |
|
|
— |
|
|
|
32.0 |
|
Other indebtedness |
|
|
2.5 |
|
|
|
0.2 |
|
|
(0.6 |
) |
|
|
0.3 |
|
|
|
2.4 |
|
Less: Deferred financing costs
associated with the term loans |
|
|
(0.7 |
) |
|
|
— |
|
|
— |
|
|
|
(1.1 |
) |
|
|
(1.8 |
) |
Totals |
|
$ |
246.8 |
|
|
$ |
932.5 |
|
$ |
(504.6 |
) |
|
$ |
(0.8 |
) |
|
$ |
673.9 |
|
SPX TECHNOLOGIES, INC. AND SUBSIDIARIES |
NON-GAAP RECONCILIATION - ORGANIC REVENUE |
HVAC AND DETECTION & MEASUREMENT REPORTABLE
SEGMENTS |
(Unaudited) |
|
|
|
|
|
|
|
|
Three months ended September 30, 2023 |
|
|
|
HVAC |
|
Detection &Measurement |
|
Net Revenue Growth |
|
27.0 |
% |
11.8 |
% |
|
|
|
|
|
|
Exclude: Foreign Currency |
|
0.1 |
% |
1.4 |
% |
|
|
|
|
|
|
Exclude: Acquisitions |
|
16.3 |
% |
— |
% |
|
|
|
|
|
|
Organic Revenue Growth |
|
10.6 |
% |
10.4 |
% |
SPX TECHNOLOGIES, INC. AND SUBSIDIARIES |
NON-GAAP RECONCILIATION - ADJUSTED OPERATING
INCOME |
(Unaudited; in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Nine months ended |
|
|
September 30, 2023 |
|
October 1, 2022 |
|
September 30, 2023 |
|
October 1, 2022 |
Operating income |
|
$ |
57.7 |
|
|
$ |
37.3 |
|
|
$ |
158.8 |
|
|
$ |
75.9 |
|
|
|
|
|
|
|
|
|
|
Include - TSA Income(1) |
|
|
0.1 |
|
|
|
0.6 |
|
|
|
0.3 |
|
|
|
2.4 |
|
|
|
|
|
|
|
|
|
|
Exclude: |
|
|
|
|
|
|
|
|
Acquisition-related and other costs(2) |
|
|
(3.4 |
) |
|
|
(3.7 |
) |
|
|
(12.0 |
) |
|
|
(13.2 |
) |
|
|
|
|
|
|
|
|
|
Other operating expense, net(3) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1.0 |
) |
|
|
|
|
|
|
|
|
|
Amortization expense(4) |
|
|
(14.6 |
) |
|
|
(6.7 |
) |
|
|
(32.4 |
) |
|
|
(23.1 |
) |
|
|
|
|
|
|
|
|
|
Adjusted operating income |
|
$ |
75.8 |
|
|
$ |
48.3 |
|
|
$ |
203.5 |
|
|
$ |
115.6 |
|
as a percent of revenues |
|
|
16.9 |
% |
|
|
13.0 |
% |
|
|
16.0 |
% |
|
|
11.2 |
% |
|
|
|
|
|
|
|
|
|
(1)Represents transition services income related to the Asbestos
Portfolio Sale for the three and nine months ended September 30,
2023 and the Transformer Solutions disposition for the three and
nine months ended October 1, 2022. Amounts recorded in
non-operating income for U.S. GAAP purposes. The Asbestos Portfolio
Sale and Transformer Solutions disposition are described in the
Company’s most recent Form 10-K. |
|
|
|
|
|
|
|
|
|
(2)For the three and nine months ended September 30, 2023,
represents (i) acquisition and strategic/transformation related
costs of $0.5 and $7.0, respectively, (ii) certain integration
costs of $0.4 and $1.4, respectively, and (iii) inventory step-up
charges of $2.5 and $3.6, respectively, related to the ASPEQ
acquisition. For the three and nine months ended October 1, 2022,
represents (i) acquisition and strategic/transformation related
costs of $4.2 and $12.3, respectively, (ii) costs associated with
our South Africa business that could not be allocated to
discontinued operations for U.S. GAAP purposes of $0.2 and $0.6,
respectively, (iii) inventory step-up charges of $0.1 and $1.1,
respectively, related to the ITL acquisition, and (iv) a benefit of
$0.8 related to forfeitures of long-term incentive
compensation. |
|
|
|
|
|
|
|
|
|
(3)For the nine months ended October 1, 2022, represents
asbestos-related charges of $2.3, partially offset by a gain of
$1.3 related to the revision of a liability associated with
contingent consideration on a recent acquisition. |
|
|
|
|
|
|
|
|
|
(4)Represents amortization expense associated with acquired
intangible assets. |
SPX TECHNOLOGIES, INC. AND SUBSIDIARIES |
NON-GAAP RECONCILIATION - EARNINGS PER SHARE |
Three Months Ended September 30, 2023 |
(Unaudited; in millions, except per share
values) |
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
|
Adjustments |
|
Adjusted |
Segment income |
$ |
91.6 |
|
|
$ |
— |
|
|
$ |
91.6 |
|
Corporate expense(1) |
|
(13.0 |
) |
|
|
0.6 |
|
|
|
(12.4 |
) |
Acquisition-related and other costs(2) |
|
(2.9 |
) |
|
|
2.9 |
|
|
|
— |
|
Long-term incentive compensation expense |
|
(3.4 |
) |
|
|
— |
|
|
|
(3.4 |
) |
Amortization of intangible assets(3) |
|
(14.6 |
) |
|
|
14.6 |
|
|
|
— |
|
Operating
income |
|
57.7 |
|
|
|
18.1 |
|
|
|
75.8 |
|
|
|
|
|
|
|
Other income (expense), net(4) |
|
(0.2 |
) |
|
|
1.2 |
|
|
|
1.0 |
|
Interest expense, net |
|
(9.4 |
) |
|
|
— |
|
|
|
(9.4 |
) |
Income from continuing
operations before income taxes |
|
48.1 |
|
|
|
19.3 |
|
|
|
67.4 |
|
Income tax provision(5) |
|
(12.4 |
) |
|
|
(5.6 |
) |
|
|
(18.0 |
) |
Income from continuing
operations |
|
35.7 |
|
|
|
13.7 |
|
|
|
49.4 |
|
|
|
|
|
|
|
Diluted shares
outstanding |
|
46.751 |
|
|
|
|
|
46.751 |
|
|
|
|
|
|
|
Earnings per share
from continuing operations |
$ |
0.76 |
|
|
|
|
$ |
1.06 |
|
|
|
|
|
|
|
(1)Adjustment represents the removal of acquisition and
strategic/transformation related expenses of $0.5 and a
reclassification of transition services income of $0.1 from “Other
income (expense), net.” |
|
(2)Adjustment represents the removal of (i) an inventory step-up
charge of $2.5 related to the ASPEQ acquisition and (ii)
integration costs of $0.4 within the HVAC reportable segment. |
|
(3)Adjustment represents the removal of amortization expense
associated with acquired intangible assets of $4.3 and $10.3 within
the Detection & Measurement and HVAC reportable segments,
respectively. |
|
|
|
|
|
|
(4)Adjustment represents the removal of (i) non-service pension and
postretirement charges of $1.2, (ii) the reclassification of income
related to a transition services agreement ($0.1) to “Corporate
expense,” and (iii) the removal of a charge related to the Asbestos
Portfolio Sale of $0.1. |
|
|
|
|
|
|
(5)Adjustment primarily represents the tax impact of items (1)
through (4) above. |
|
|
|
|
|
|
SPX TECHNOLOGIES, INC. AND SUBSIDIARIES |
NON-GAAP RECONCILIATION - EARNINGS PER SHARE |
Three Months Ended October 1, 2022 |
(Unaudited; in millions, except per share
values) |
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
|
Adjustments |
|
Adjusted |
Segment income |
$ |
63.4 |
|
|
$ |
— |
|
|
$ |
63.4 |
|
Corporate expense(1) |
|
(17.2 |
) |
|
|
5.0 |
|
|
|
(12.2 |
) |
Acquisition-related costs(2) |
|
(0.1 |
) |
|
|
0.1 |
|
|
|
— |
|
Long-term incentive compensation expense(3) |
|
(2.1 |
) |
|
|
(0.8 |
) |
|
|
(2.9 |
) |
Amortization of intangible assets(4) |
|
(6.7 |
) |
|
|
6.7 |
|
|
|
— |
|
Operating
income |
|
37.3 |
|
|
|
11.0 |
|
|
|
48.3 |
|
|
|
|
|
|
|
Other income (expense), net(5) |
|
(24.6 |
) |
|
|
26.4 |
|
|
|
1.8 |
|
Interest expense, net |
|
(1.6 |
) |
|
|
— |
|
|
|
(1.6 |
) |
Loss on amendment/refinancing of senior credit agreement(6) |
|
(1.1 |
) |
|
|
1.1 |
|
|
|
— |
|
Income from continuing
operations before income taxes |
|
10.0 |
|
|
|
38.5 |
|
|
|
48.5 |
|
Income tax (provision) benefit(7) |
|
2.5 |
|
|
|
(13.5 |
) |
|
|
(11.0 |
) |
Income from continuing
operations |
|
12.5 |
|
|
|
25.0 |
|
|
|
37.5 |
|
|
|
|
|
|
|
Diluted shares
outstanding |
|
46.132 |
|
|
|
|
|
46.132 |
|
|
|
|
|
|
|
Earnings per share
from continuing operations |
$ |
0.27 |
|
|
|
|
$ |
0.81 |
|
|
|
|
|
|
|
(1)Adjustment represents the removal of acquisition and
strategic/transformation related expenses ($4.2), costs associated
with our South Africa business that could not be allocated to
discontinued operations for U.S. GAAP purposes ($0.2), as well as a
reclassification of transition services income ($0.6) from “Other
income (expense), net.” |
|
(2)Adjustment represents the removal of an inventory step-up charge
related to the ITL acquisition of $0.1 within the Detection &
Measurement reportable segment. |
|
(3)Adjustment represents the removal of a benefit of $0.8 related
to long-term incentive compensation forfeitures. |
|
(4)Adjustment represents the removal of amortization expense
associated with acquired intangible assets of $2.2 and $4.5 within
the HVAC and Detection & Measurement reportable segments,
respectively. |
|
|
|
|
|
|
(5)Adjustment represents the removal of (i) asbestos-related
charges ($16.5), (ii) a loss on an equity security associated with
a fair value adjustment ($7.4), and (iii) pension “mark-to-market”
losses and non-service pension and postretirement charges ($3.1),
partially offset by (iv) the reclassification of income related to
a transition services agreement ($0.6) to “Corporate expense.” |
|
|
|
|
|
|
(6)Adjustment represents the removal of a non-cash charge and
certain expenses incurred in connection with an amendment to our
senior credit agreement. |
|
|
|
|
|
|
(7)Adjustment
represents the tax impact of items (1) through (6) above and
removal of certain non-recurring income tax benefits. |
SPX Technologies (NYSE:SPXC)
Gráfico Histórico do Ativo
De Mai 2024 até Jun 2024
SPX Technologies (NYSE:SPXC)
Gráfico Histórico do Ativo
De Jun 2023 até Jun 2024