Q2 GAAP EPS of $zero.43; Adjusted EPS* of $zero.67
Continued Sturdy Income and Working Revenue Progress
Rising Full-Yr Adjusted EPS* Steerage Vary to $2.60-$2.72
CHARLOTTE, N.C., Aug. 01, 2019 (GLOBE NEWSWIRE) — SPX Company (NYSE:SPXC) at present reported outcomes for the quarter ended June 29, 2019.
Gene Lowe, President and CEO, remarked, “I’m very happy with our second quarter efficiency, which displays stable operational execution, in addition to favorable timing of challenge deliveries in our Detection & Measurement section. Primarily based on our robust first half efficiency and visibility into second half demand, we’re elevating our full-year Adjusted EPS* steerage to a variety of $2.60 to $2.72.”
Mr. Lowe continued, “In South Africa, we’re making good progress on our building actions and stay on observe for substantial completion by year-end. Moreover, throughout the second quarter we took an vital step in the direction of resolving excellent disputes by finalizing a settlement settlement with GE, one our key prospects, that covers all materials claims between us.”
Mr. Lowe commented additional, “In July, we had been happy to advance our progress technique by the acquisition of SGS Refrigeration, the primary acquisition in our HVAC section. SGS expands our protection of commercial refrigeration options, whereas enhancing our gross sales distribution community. Our acquisition pipeline is the strongest it has been in years, and we stay effectively positioned to drive worth by extra capital deployment.”
Second Quarter 2019 Overview:
For Q2 2019, the corporate reported income of $372.four million and working earnings of $26.three million, in contrast with $379.2 million and $22.7 million, respectively, in Q2 2018. Internet earnings per share from persevering with operations had been $zero.43 in Q2 2019, in contrast with $zero.44 for Q2 2018.
SPX’s adjusted income* was $371.6 million and adjusted working earnings* was $40.7 million for Q2 2019, in contrast with $349.7 million and $32.5 million, respectively, in Q2 2018. Adjusted earnings per share* for Q2 2019 had been $zero.67, in contrast with $zero.53 for Q2 2018.
GAAP Outcomes:
($ thousands and thousands) | Q2 2019 | Q2 2018 | 2019 YTD | 2018 YTD | ||||||||
Income | $ | 372.four | $ | 379.2 | $ | 716.zero | $ | 731.1 | ||||
Section Earnings | 41.four | 41.zero | 62.2 | 78.zero | ||||||||
Working Earnings | 26.three | 22.7 | 29.three | 42.zero |
Adjusted Outcomes:
($ thousands and thousands) | Q2 2019 | Q2 2018 | 2019 YTD | 2018 YTD | ||||||||
Adjusted Income* | $ | 371.6 | $ | 349.7 | $ | 723.1 | $ | 670.eight | ||||
Adjusted Section Earnings* | 54.7 | 47.eight | 101.zero | 89.three | ||||||||
Adjusted Working Earnings* | 40.7 | 32.5 | 72.6 | 58.7 |
* Non-GAAP monetary measure. See connected schedules for reconciliation to most comparable GAAP monetary measure.
HVAC
Income for Q2 2019 was $130.9 million, in contrast with $139.7 million in Q2 2018, a lower of 6.three%, together with a zero.6% lower from foreign money fluctuations. Natural income* decreased 5.7%, due primarily to a decline in cooling product shipments.
Section earnings was $16.7 million, or 12.eight% of income, in Q2 2019, in contrast with $18.5 million, or 13.2% of income, in Q2 2018, with the lower in margins as a consequence of decrease volumes and better working prices.
Detection & Measurement
Income for Q2 2019 was $101.7 million, in contrast with $74.6 million in Q2 2018, a rise of 36.three% together with a zero.7% lower from foreign money fluctuations and a 33.eight% enhance from acquisitions. Natural income* elevated three.2% largely reflecting robust challenge associated gross sales of communication applied sciences merchandise.
Section earnings was $21.7 million in Q2 2019. Adjusted section earnings*, which excludes $three.2 million of acquisition associated prices and intangible amortization expense, was $24.9 million, or 24.5% of income. This compares with section earnings of $16.5 million and adjusted section earnings* of $18.eight million, or 25.2% of income, in Q2 2018. The 70 foundation level lower in margins was primarily as a consequence of gross sales combine.
Engineered Options
Income in Q2 2019 was $139.zero million, in contrast with $135.four million in Q2 2018, a rise of two.7%. Income progress was pushed by elevated volumes in our transformers enterprise due primarily to operational enhancements.
Section earnings in Q2 2019 was $13.zero million, or 9.four% of income, in contrast with section earnings of $10.four million, or 7.7% of income in Q2 2018. The rise in margins was pushed primarily by the income enhance famous above.
All Different
Throughout Q2 2019, our South African subsidiary, DBT, reached an settlement with GE to settle all materials claims between the events. Related to the settlement, SPX recorded an adjustment of $6.zero million to cut back the quantity of anticipated income on the South African initiatives. On account of the settlement, excellent ensures maintained by DBT have been considerably diminished.
All Different, which incorporates the South African and Warmth Switch operations, had income of $zero.eight million in Q2 2019, in contrast with $29.5 million in Q2 2018. The lower was due primarily to a decline in natural gross sales associated to decrease revenues from giant energy initiatives in South Africa and the impression of the wind-down of the Warmth Switch enterprise. As well as, revenues had been impacted negatively by the adjustment famous above related to the GE settlement.
All Different incurred a loss in Q2 2019 of $10.zero million, in contrast with a lack of $four.four million in Q2 2018. The bigger loss was due primarily to the discount in revenues famous above.
Monetary Replace:
As of June 29, 2019, SPX had complete excellent debt of $401.6 million and complete money of $34.6 million. Throughout Q2 2019, SPX generated internet working money from persevering with operations of $16.5 million, together with modest internet money utilization related to the South African initiatives, which included a tax profit. Internet leverage, as calculated beneath the corporate’s financial institution credit score settlement was 1.9x, unchanged from the top of Q1 2019.
Rising 2019 Adjusted EPS* Steerage:
SPX continues to count on 2019 adjusted income* of roughly $1.50 billion. We proceed to count on adjusted section earnings margin* of roughly 15.zero% and adjusted working earnings margin* of roughly 11%. Adjusted earnings per share* is now anticipated to be in a variety of $2.60 to $2.72, a rise from the earlier steerage vary of $2.50 to $2.65.
Section efficiency, on a year-over-year foundation, is anticipated to be as follows (modifications bolded):
Income | Section Earnings Margin % | |||
HVAC | In a variety of $576-586 million (beforehand $570-580), with the rise because of the SGS acquisition | 15.5-16%, or 25 foundation level enhance at midpoint vs 2018 | ||
Detection & Measurement | In a variety of $390-400 million (beforehand $385-395) | 23-24% (ex-amortization) | ||
Engineered Options | In a variety of $530-540 million | Roughly eight%, or 150 foundation factors enhance vs 2018 | ||
Non-GAAP Presentation: To offer extra readability to its working outcomes, the corporate discusses outcomes and steerage that embrace “adjusted” non-GAAP monetary measures. Adjusted outcomes for the corporate exclude, amongst different gadgets, the impact of the South African and Warmth Switch operations, categorized as “All Different” within the firm’s section reporting construction. The corporate experiences individually on the outcomes of the All Different class. The corporate anticipates reporting the outcomes of companies included within the “All Different” class as discontinued operations, at such time as they meet the accounting necessities for this remedy.
Kind 10-Q: The corporate expects to file its quarterly report on Kind 10-Q for the quarter ended June 29, 2019 with the Securities and Trade Fee on or earlier than August eight, 2019. This press launch must be learn along side that submitting, which will likely be out there on the corporate’s web site at www.spx.com, within the Investor Relations part.
Convention Name: SPX will host a convention name at four:45 p.m. (EDT) at present to debate second quarter outcomes. The decision will likely be concurrently webcast through the corporate’s web site at www.spx.com and the slide presentation will likely be out there within the Investor Relations part of the location.
Convention name
Dial in: 877-341-7727
From exterior america: +1 262-558-6098
Participant code: 4991629
A replay of the decision will likely be out there by phone by Thursday, August eighth.
To hearken to a replay of the decision
Dial in: 855-859-2056
From exterior america: +1 404-537-3406
Participant code: 4991629
Upcoming Investor Occasions: Firm administration plans to be on the street throughout the third quarter of 2019 assembly with traders, together with attending the Midwest IDEAS Investor Convention in Chicago on August 29th, the Vertical Analysis World Industrials Convention in Connecticut on September 5th, and the Buckingham Industrials Convention in New York Metropolis on September 19th.
About SPX Company: SPX Company is a provider of extremely engineered merchandise and applied sciences, holding management positions within the HVAC, detection and measurement, and engineered options markets. Primarily based in Charlotte, North Carolina, SPX Company had roughly $1.four billion in annual income in 2018 and roughly four,000 staff in about 17 international locations. SPX Company is listed on the New York Inventory Trade beneath the ticker image “SPXC.” For extra info, please go to www.spx.com.
*Non-GAAP monetary measure. See connected schedules for reconciliation to most comparable GAAP monetary measure.
Word: Our non-GAAP monetary steerage excludes gadgets, which might be included in our GAAP monetary measures that we don’t take into account indicative of our on-going efficiency; and are calculated in a fashion in keeping with the presentation of the equally titled historic non-GAAP measures introduced on this press launch. These things embrace, however aren’t restricted to, acquisition prices, prices related to tendencies, the outcomes of our South African operations, the outcomes of our Warmth Switch enterprise, and potential non-cash earnings or expense gadgets related to modifications in market rates of interest and actuarial or different knowledge associated to our pension and postretirement plans, as the last word mixture quantities related to these things are out of our management and/or can’t be fairly predicted. Accordingly, a reconciliation of our non-GAAP monetary steerage to the closest corresponding GAAP monetary measures will not be practicable.
Sure statements on this press launch are forward-looking statements inside the which means of Part 21E of the Securities Trade Act of 1934, as amended, and are topic to the secure harbor created thereby. Please learn these outcomes along side the corporate’s paperwork filed with the Securities and Trade Fee, together with the corporate’s most up-to-date annual experiences on Kind 10-Okay. These filings establish vital danger elements and different uncertainties that might trigger precise outcomes to vary from these contained within the forward-looking statements. Precise outcomes could differ materially from these statements. The phrases “imagine,” “count on,” “anticipate,” “challenge” and comparable expressions establish forward-looking statements. Though the corporate believes that the expectations mirrored in its forward-looking statements are cheap, it may give no assurance that such expectations will show to be appropriate. As well as, estimates of future working outcomes are primarily based on the corporate’s present complement of companies, which is topic to alter.
Statements on this press launch communicate solely as of the date of this press launch, and SPX disclaims any accountability to replace or revise such statements.
SOURCE SPX Company.
Investor and Media Contacts:
Paul Clegg, VP, Investor Relations and Communications
Telephone: 980-474-3806
E-mail: spx.investor@spx.com
Pat Uotila, Supervisor, Investor Relations
Telephone: 980-474-3806
E-mail: spx.investor@spx.com
SPX CORPORATION AND SUBSIDIARIES | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
(Unaudited; in thousands and thousands, besides per share quantities) | |||||||||||||||
Three months ended | Six months ended | ||||||||||||||
June 29, 2019 | June 30, 2018 | June 29, 2019 | June 30, 2018 | ||||||||||||
Revenues | $ | 372.four | $ | 379.2 | $ | 716.zero | $ | 731.1 | |||||||
Prices and bills: | |||||||||||||||
Price of merchandise offered | 264.2 | 281.5 | 524.6 | 543.three | |||||||||||
Promoting, normal and administrative | 78.2 | 72.6 | 154.9 | 141.2 | |||||||||||
Intangible amortization | 2.four | zero.eight | four.zero | 1.zero | |||||||||||
Particular prices, internet | 1.three | 1.6 | 1.four | three.6 | |||||||||||
Different working bills | — | — | 1.eight | — | |||||||||||
Working earnings | 26.three | 22.7 | 29.three | 42.zero | |||||||||||
Different earnings, internet | 1.9 | 2.2 | 9.1 | three.2 | |||||||||||
Curiosity expense | (5.three | ) | (5.1 | ) | (10.6 | ) | (9.four | ) | |||||||
Curiosity earnings | zero.6 | zero.three | zero.9 | zero.eight | |||||||||||
Earnings from persevering with operations earlier than earnings taxes | 23.5 | 20.1 | 28.7 | 36.6 | |||||||||||
Earnings tax provision | (four.1 | ) | (zero.four | ) | (eight.7 | ) | (four.5 | ) | |||||||
Earnings from persevering with operations | 19.four | 19.7 | 20.zero | 32.1 | |||||||||||
Earnings (loss) from discontinued operations, internet of tax | — | — | — | — | |||||||||||
Achieve (loss) on disposition of discontinued operations, internet of tax | (zero.2 | ) | three.three | (1.6 | ) | three.three | |||||||||
Achieve (loss) from discontinued operations, internet of tax | (zero.2 | ) | three.three | (1.6 | ) | three.three | |||||||||
Internet earnings | $ | 19.2 | $ | 23.zero | $ | 18.four | $ | 35.four | |||||||
Primary earnings per share of widespread inventory: | |||||||||||||||
Earnings from persevering with operations | $ | zero.44 | $ | zero.46 | $ | zero.46 | $ | zero.75 | |||||||
Earnings (loss) from discontinued operations | — | zero.08 | (zero.04 | ) | zero.08 | ||||||||||
Internet earnings per share | $ | zero.44 | $ | zero.54 | $ | zero.42 | $ | zero.83 | |||||||
Weighted-average variety of widespread shares excellent — fundamental | 43.914 | 42.988 | 43.767 | 42.881 | |||||||||||
Diluted earnings per share of widespread inventory: | |||||||||||||||
Earnings from persevering with operations | $ | zero.43 | $ | zero.44 | $ | zero.45 | $ | zero.72 | |||||||
Earnings (loss) from discontinued operations | — | zero.07 | (zero.04 | ) | zero.07 | ||||||||||
Internet earnings per share | $ | zero.43 | $ | zero.51 | $ | zero.41 | $ | zero.79 | |||||||
Weighted-average variety of widespread shares excellent — diluted | 44.892 | 44.723 | 44.750 | 44.545 | |||||||||||
SPX CORPORATION AND SUBSIDIARIES | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(Unaudited; in thousands and thousands) | |||||||
June 29, 2019 | December 31, 2018 | ||||||
ASSETS | |||||||
Present belongings: | |||||||
Money and equivalents | $ | 34.6 | $ | 68.eight | |||
Accounts receivable, internet | 251.5 | 269.1 | |||||
Contract belongings | 62.5 | 91.2 | |||||
Inventories, internet | 155.5 | 128.eight | |||||
Different present belongings (contains earnings taxes receivable of $18.1 and $18.9 at June 29, 2019 and December 31, 2018, respectively) | 41.four | 40.5 | |||||
Complete present belongings | 545.5 | 598.four | |||||
Property, plant and gear: | |||||||
Land | 18.7 | 19.four | |||||
Buildings and leasehold enhancements | 119.1 | 125.2 | |||||
Equipment and gear | 331.four | 334.1 | |||||
469.2 | 478.7 | ||||||
Collected depreciation | (294.four | ) | (294.5 | ) | |||
Property, plant and gear, internet | 174.eight | 184.2 | |||||
Goodwill | 431.four | 394.four | |||||
Intangibles, internet | 229.2 | 198.four | |||||
Different belongings | 665.four | 657.7 | |||||
Deferred earnings taxes | 21.zero | 24.four | |||||
TOTAL ASSETS | $ | 2,067.three | $ | 2,057.5 | |||
LIABILITIES AND EQUITY | |||||||
Present liabilities: | |||||||
Accounts payable | $ | 135.9 | $ | 153.6 | |||
Contract liabilities | 80.three | 79.5 | |||||
Accrued bills | 174.5 | 183.7 | |||||
Earnings taxes payable | 2.three | three.5 | |||||
Quick-term debt | 59.5 | 31.9 | |||||
Present maturities of long-term debt | 14.1 | 18.zero | |||||
Complete present liabilities | 466.6 | 470.2 | |||||
Lengthy-term debt | 328.zero | 331.9 | |||||
Deferred and different earnings taxes | 31.5 | 23.2 | |||||
Different long-term liabilities | 804.5 | 817.three | |||||
Complete long-term liabilities | 1,164.zero | 1,172.four | |||||
Fairness: | |||||||
Frequent inventory | zero.5 | zero.5 | |||||
Paid-in capital | 1,285.three | 1,295.four | |||||
Retained deficit | (631.7 | ) | (650.1 | ) | |||
Collected different complete earnings | 242.7 | 244.9 | |||||
Frequent inventory in treasury | (460.1 | ) | (475.eight | ) | |||
Complete fairness | 436.7 | 414.9 | |||||
TOTAL LIABILITIES AND EQUITY | $ | 2,067.three | $ | 2,057.5 | |||
SPX CORPORATION AND SUBSIDIARIES | ||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||
(Unaudited; in thousands and thousands) | ||||||||||||||||
Three Months Ended | Six months ended | |||||||||||||||
June 29, 2019 | June 30, 2018 | June 29, 2019 | June 30, 2018 | |||||||||||||
Money flows from working actions: | ||||||||||||||||
Internet earnings | $ | 19.2 | $ | 23.zero | $ | 18.four | $ | 35.four | ||||||||
Much less: Achieve (loss) from discontinued operations, internet of tax | (zero.2 | ) | three.three | (1.6 | ) | three.three | ||||||||||
Earnings from persevering with operations | 19.four | 19.7 | 20.zero | 32.1 | ||||||||||||
Changes to reconcile earnings from persevering with operations to internet money from working actions: | ||||||||||||||||
Particular prices, internet | 1.three | 1.6 | 1.four | three.6 | ||||||||||||
Achieve on change in truthful worth of fairness safety | (1.6 | ) | — | (7.9 | ) | — | ||||||||||
Deferred and different earnings taxes | 1.9 | 7.four | four.four | 6.1 | ||||||||||||
Depreciation and amortization | eight.5 | 6.eight | 16.6 | 13.four | ||||||||||||
Pension and different worker advantages | 2.three | 1.5 | 5.1 | three.eight | ||||||||||||
Lengthy-term incentive compensation | three.three | four.2 | 6.eight | eight.1 | ||||||||||||
Different, internet | zero.three | zero.four | zero.6 | zero.7 | ||||||||||||
Modifications in working belongings and liabilities, internet of results from acquisitions: | ||||||||||||||||
Accounts receivable and different belongings | 23.5 | (12.5 | ) | 71.zero | 11.1 | |||||||||||
Inventories | (three.6 | ) | (1.2 | ) | (18.zero | ) | (four.eight | ) | ||||||||
Accounts payable, accrued bills and different | (37.6 | ) | (24.three | ) | (69.eight | ) | (67.four | ) | ||||||||
Money spending on restructuring actions | (1.2 | ) | (zero.5 | ) | (2.2 | ) | (zero.9 | ) | ||||||||
Internet money from persevering with operations | 16.5 | three.1 | 28.zero | 5.eight | ||||||||||||
Internet money utilized in discontinued operations | (zero.6 | ) | (zero.7 | ) | (1.5 | ) | (1.1 | ) | ||||||||
Internet money from working actions | 15.9 | 2.four | 26.5 | four.7 | ||||||||||||
Money flows utilized in investing actions: | ||||||||||||||||
Proceeds from company-owned life insurance coverage insurance policies, internet | 1.9 | — | 2.four | zero.2 | ||||||||||||
Enterprise acquisitions, internet of money acquired | (zero.2 | ) | (166.three | ) | (77.2 | ) | (182.6 | ) | ||||||||
Internet proceeds from sale of belongings | — | 10.1 | 5.5 | 10.1 | ||||||||||||
Capital expenditures | (2.5 | ) | (2.2 | ) | (6.2 | ) | (5.four | ) | ||||||||
Internet money utilized in persevering with operations | (zero.eight | ) | (158.four | ) | (75.5 | ) | (177.7 | ) | ||||||||
Internet money from discontinued operations | — | 2.four | — | 2.four | ||||||||||||
Internet money utilized in investing actions | (zero.eight | ) | (156.zero | ) | (75.5 | ) | (175.three | ) | ||||||||
Money flows from (utilized in) financing actions: | ||||||||||||||||
Borrowings beneath senior credit score amenities | 12.three | 129.zero | 101.6 | 129.zero | ||||||||||||
Repayments beneath senior credit score amenities | (22.three | ) | (33.zero | ) | (86.eight | ) | (33.zero | ) | ||||||||
Borrowings beneath commerce receivables financing association | 5.zero | 32.zero | 45.zero | 32.zero | ||||||||||||
Repayments beneath commerce receivables financing association | (15.zero | ) | (10.zero | ) | (44.zero | ) | (10.zero | ) | ||||||||
Internet borrowings (repayments) beneath different financing preparations | (zero.1 | ) | (zero.7 | ) | 2.7 | (1.1 | ) | |||||||||
Minimal withholdings paid on behalf of staff for internet share settlements, internet of proceeds from the train of worker inventory choices and different | 1.1 | zero.2 | (four.eight | ) | (three.zero | ) | ||||||||||
Internet money from (utilized in) persevering with operations | (19.zero | ) | 117.5 | 13.7 | 113.9 | |||||||||||
Internet money from (utilized in) discontinued operations | — | — | — | — | ||||||||||||
Internet money from (utilized in) financing actions | (19.zero | ) | 117.5 | 13.7 | 113.9 | |||||||||||
Change in money and equivalents as a consequence of modifications in overseas foreign money change charges | (zero.5 | ) | (zero.9 | ) | 1.1 | (zero.9 | ) | |||||||||
Internet change in money and equivalents | (four.four | ) | (37.zero | ) | (34.2 | ) | (57.6 | ) | ||||||||
Consolidated money and equivalents, starting of interval | 39.zero | 103.7 | 68.eight | 124.three | ||||||||||||
Consolidated money and equivalents, finish of interval | $ | 34.6 | $ | 66.7 | $ | 34.6 | $ | 66.7 | ||||||||
SPX CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||||||||
RESULTS OF REPORTABLE AND OTHER OPERATING SEGMENTS | ||||||||||||||||||||||||||||
(Unaudited; in thousands and thousands) | ||||||||||||||||||||||||||||
Three months ended | Six months ended | |||||||||||||||||||||||||||
June 29, 2019 | June 30, 2018 | Δ | %/bps | June 29, 2019 | June 30, 2018 | Δ | %/bps | |||||||||||||||||||||
HVAC reportable section | ||||||||||||||||||||||||||||
Revenues | $ | 130.9 | $ | 139.7 | $ | (eight.eight | ) | (6.three)% | $ | 259.three | $ | 267.four | $ | (eight.1 | ) | (three.zero)% | ||||||||||||
Gross revenue | 40.9 | 41.6 | (zero.7 | ) | 82.5 | 83.2 | (zero.7 | ) | ||||||||||||||||||||
Promoting, normal and administrative expense | 24.1 | 23.zero | 1.1 | 47.2 | 45.9 | 1.three | ||||||||||||||||||||||
Intangible amortization expense | zero.1 | zero.1 | — | zero.2 | zero.2 | — | ||||||||||||||||||||||
Earnings | $ | 16.7 | $ | 18.5 | $ | (1.eight | ) | (9.7)% | $ | 35.1 | $ | 37.1 | $ | (2.zero | ) | (5.four)% | ||||||||||||
as a % of revenues | 12.eight | % | 13.2 | % | -40 bps | 13.5 | % | 13.9 | % | -40 bps | ||||||||||||||||||
Detection & Measurement reportable section | ||||||||||||||||||||||||||||
Revenues | $ | 101.7 | $ | 74.6 | $ | 27.1 | 36.three % | $ | 186.eight | $ | 140.2 | $ | 46.6 | 33.2 % | ||||||||||||||
Gross revenue | 46.6 | 33.1 | 13.5 | 86.zero | 62.7 | 23.three | ||||||||||||||||||||||
Promoting, normal and administrative expense | 22.6 | 15.9 | 6.7 | 43.5 | 29.eight | 13.7 | ||||||||||||||||||||||
Intangible amortization expense | 2.three | zero.7 | 1.6 | three.eight | zero.7 | three.1 | ||||||||||||||||||||||
Earnings | $ | 21.7 | $ | 16.5 | $ | 5.2 | 31.5 % | $ | 38.7 | $ | 32.2 | $ | 6.5 | 20.2 % | ||||||||||||||
as a % of revenues | 21.three | % | 22.1 | % | -80 bps | 20.7 | % | 23.zero | % | -230 bps | ||||||||||||||||||
Engineered Options reportable section | ||||||||||||||||||||||||||||
Revenues | $ | 139.zero | $ | 135.four | $ | three.6 | 2.7 % | $ | 277.zero | $ | 263.2 | $ | 13.eight | 5.2 % | ||||||||||||||
Gross revenue | 26.2 | 23.1 | three.1 | 47.eight | 42.zero | 5.eight | ||||||||||||||||||||||
Promoting, normal and administrative expense | 13.2 | 12.7 | zero.5 | 26.eight | 24.eight | 2.zero | ||||||||||||||||||||||
Earnings | $ | 13.zero | $ | 10.four | $ | 2.6 | 25.zero % | $ | 21.zero | $ | 17.2 | $ | three.eight | 22.1 % | ||||||||||||||
as a % of revenues | 9.four | % | 7.7 | % | 170 bps | 7.6 | % | 6.5 | % | 110 bps | ||||||||||||||||||
All Different | ||||||||||||||||||||||||||||
Revenues | $ | zero.eight | $ | 29.5 | $ | (28.7 | ) | (97.three)% | $ | (7.1 | ) | $ | 60.three | $ | (67.four | ) | (111.eight)% | |||||||||||
Gross revenue | (5.5 | ) | (zero.1 | ) | (5.four | ) | (24.9 | ) | (zero.1 | ) | (24.eight | ) | ||||||||||||||||
Promoting, normal and administrative expense | four.5 | four.three | zero.2 | 7.7 | eight.three | (zero.6 | ) | |||||||||||||||||||||
Intangible amortization expense | — | — | — | — | zero.1 | (zero.1 | ) | |||||||||||||||||||||
Loss | $ | (10.zero | ) | $ | (four.four | ) | $ | (5.6 | ) | (127.three)% | $ | (32.6 | ) | $ | (eight.5 | ) | $ | (24.1 | ) | (283.5)% | ||||||||
Consolidated Revenues | $ | 372.four | $ | 379.2 | $ | (6.eight | ) | (1.eight)% | $ | 716.zero | $ | 731.1 | $ | (15.1 | ) | (2.1)% | ||||||||||||
Consolidated Section Earnings | 41.four | 41.zero | zero.four | 1.zero % | 62.2 | 78.zero | (15.eight | ) | (20.three)% | |||||||||||||||||||
as a % of revenues | 11.1 | % | 10.eight | % | 30 bps | eight.7 | % | 10.7 | % | -200 bps | ||||||||||||||||||
Complete section earnings | $ | 41.four | $ | 41.zero | $ | zero.four | $ | 62.2 | $ | 78.zero | $ | (15.eight | ) | |||||||||||||||
Company expense | 10.5 | 12.5 | (2.zero | ) | 22.9 | 24.three | (1.four | ) | ||||||||||||||||||||
Lengthy-term incentive compensation expense | three.three | four.2 | (zero.9 | ) | 6.eight | eight.1 | (1.three | ) | ||||||||||||||||||||
Particular prices, internet | 1.three | 1.6 | (zero.three | ) | 1.four | three.6 | (2.2 | ) | ||||||||||||||||||||
Different working bills | — | — | — | 1.eight | — | 1.eight | ||||||||||||||||||||||
Consolidated working earnings | $ | 26.three | $ | 22.7 | $ | three.6 | 15.9 % | $ | 29.three | $ | 42.zero | $ | (12.7 | ) | (30.2)% | |||||||||||||
as a % of revenues | 7.1 | % | 6.zero | % | 110 bps | four.1 | % | 5.7 | % | -160 bps | ||||||||||||||||||
SPX CORPORATION AND SUBSIDIARIES | ||||||||||||||||||
CASH AND DEBT RECONCILIATION | ||||||||||||||||||
(Unaudited; in thousands and thousands) | ||||||||||||||||||
Six months ended | ||||||||||||||||||
June 29, 2019 | ||||||||||||||||||
Starting money and equivalents | $ | 68.eight | ||||||||||||||||
Money from persevering with operations | 28.zero | |||||||||||||||||
Capital expenditures | (6.2 | ) | ||||||||||||||||
Proceeds from company-owned life insurance coverage insurance policies, internet | 2.four | |||||||||||||||||
Internet proceeds from belongings gross sales | 5.5 | |||||||||||||||||
Enterprise acquisitions, internet of money acquired | (77.2 | ) | ||||||||||||||||
Borrowings beneath senior credit score amenities | 101.6 | |||||||||||||||||
Repayments beneath senior credit score amenities | (86.eight | ) | ||||||||||||||||
Internet borrowings beneath different financing preparations | three.7 | |||||||||||||||||
Minimal withholdings paid on behalf of staff for internet share settlements, internet of proceeds from the train of worker inventory choices | (four.eight | ) | ||||||||||||||||
Money utilized in discontinued operations | (1.5 | ) | ||||||||||||||||
Change in money as a consequence of modifications in overseas foreign money change charges | 1.1 | |||||||||||||||||
Ending money and equivalents | $ | 34.6 | ||||||||||||||||
Debt at | Debt at | |||||||||||||||||
December 31, 2018 | Borrowings | Repayments | Different | June 29, 2019 | ||||||||||||||
Revolving loans | $ | 6.four | $ | 101.6 | $ | (78.zero | ) | $ | — | $ | 30.zero | |||||||
Time period mortgage | 350.zero | — | (eight.eight | ) | — | 341.2 | ||||||||||||
Commerce receivables financing association | 23.zero | 45.zero | (44.zero | ) | — | 24.zero | ||||||||||||
Different indebtedness | four.three | three.1 | (zero.four | ) | 1.zero | eight.zero | ||||||||||||
Much less: Deferred financing prices related to the time period mortgage | (1.9 | ) | — | — | zero.three | (1.6 | ) | |||||||||||
Totals | $ | 381.eight | $ | 149.7 | $ | (131.2 | ) | $ | 1.three | $ | 401.6 | |||||||
SPX CORPORATION AND SUBSIDIARIES | |||||||||
NON-GAAP RECONCILIATION – ORGANIC REVENUE | |||||||||
HVAC, DETECTION & MEASUREMENT AND ENGINEERED SOLUTIONS REPORTABLE SEGMENTS | |||||||||
(Unaudited) | |||||||||
Three months ended June 29, 2019 | |||||||||
HVAC | Detection & Measurement | Engineered Options | |||||||
Internet Income Progress (Decline) | (6.three) | % | 36.three | % | 2.7 | % | |||
Exclude: International Foreign money | (zero.6) | % | (zero.7) | % | zero.1 | % | |||
Exclude: Acquisitions | — | % | 33.eight | % | — | % | |||
Natural Income Progress (Decline) | (5.7) | % | three.2 | % | 2.6 | % | |||
SPX CORPORATION AND SUBSIDIARIES | ||||||||||||||||
NON-GAAP RECONCILIATION – REVENUE AND SEGMENT INCOME | ||||||||||||||||
(Unaudited; in thousands and thousands) | ||||||||||||||||
CONSOLIDATED SPX: | Three months ended | Six months ended | ||||||||||||||
June 29, 2019 | June 30, 2018 | June 29, 2019 | June 30, 2018 | |||||||||||||
Consolidated income | $ | 372.four | $ | 379.2 | $ | 716.zero | $ | 731.1 | ||||||||
Exclude: “All Different” working segments(1) | zero.eight | 29.5 | (7.1 | ) | 60.three | |||||||||||
Adjusted consolidated income | $ | 371.6 | $ | 349.7 | $ | 723.1 | $ | 670.eight | ||||||||
Complete section earnings | $ | 41.four | $ | 41.zero | $ | 62.2 | $ | 78.zero | ||||||||
Exclude: “All Different” working segments(1) | (10.zero | ) | (four.four | ) | (32.6 | ) | (eight.5 | ) | ||||||||
Exclude: One time acquisition associated prices (2) | (zero.9 | ) | (1.6 | ) | (2.2 | ) | (1.9 | ) | ||||||||
Exclude: Amortization expense (three) | (2.four | ) | (zero.eight | ) | (four.zero | ) | (zero.9 | ) | ||||||||
Adjusted section earnings | $ | 54.7 | $ | 47.eight | $ | 101.zero | $ | 89.three | ||||||||
as a % of adjusted revenues (four) | 14.7 | % | 13.7 | % | 14.zero | % | 13.three | % | ||||||||
DETECTION & MEASUREMENT REPORTABLE SEGMENT: | ||||||||||||||||
Three months ended | Six months ended | |||||||||||||||
June 29, 2019 | June 30, 2018 | June 29, 2019 | June 30, 2018 | |||||||||||||
Detection & Measurement section earnings | $ | 21.7 | $ | 16.5 | $ | 38.7 | $ | 32.2 | ||||||||
Exclude: One time acquisition associated prices (2) | (zero.9 | ) | (1.6 | ) | (2.2 | ) | (1.9 | ) | ||||||||
Exclude: Amortization expense (three) | (2.three | ) | (zero.7 | ) | (three.eight | ) | (zero.7 | ) | ||||||||
Detection & Measurement adjusted section earnings | $ | 24.9 | $ | 18.eight | $ | 44.7 | $ | 34.eight | ||||||||
as a % of Detection & Measurement section revenues (four) | 24.5 | % | 25.2 | % | 23.9 | % | 24.eight | % | ||||||||
(1) Represents the elimination of the monetary outcomes of our South Africa and Warmth Switch companies. Word: These companies at the moment are being reported as an “All Different” group of working segments for U.S. GAAP functions as a consequence of sure wind-down actions which can be occurring inside these companies. | ||||||||||||||||
(2) Represents extra “Price of merchandise offered” recorded throughout the three and 6 months ended June 29, 2019 associated to the step-up of stock (to truthful worth) acquired in reference to the Sabik and Cues acquisitions and recorded throughout the three and 6 months ended June 30, 2018 associated to the Schonstedt and Cues acquisitions. | ||||||||||||||||
(three) Represents amortization expense related to acquired intangible belongings. | ||||||||||||||||
(four) See “Outcomes of Reportable and Different Working Segments” for relevant percentages primarily based on GAAP outcomes. | ||||||||||||||||
SPX CORPORATION AND SUBSIDIARIES | ||||||||||||||||
NON-GAAP RECONCILIATION – OPERATING INCOME | ||||||||||||||||
(Unaudited; in thousands and thousands) | ||||||||||||||||
Three months ended | Six months ended | |||||||||||||||
June 29, 2019 | June 30, 2018 | June 29, 2019 | June 30, 2018 | |||||||||||||
Working earnings | $ | 26.three | $ | 22.7 | $ | 29.three | $ | 42.zero | ||||||||
Exclude: | ||||||||||||||||
Mixture working losses of the South Africa and Warmth Switch companies (1) | (10.9 | ) | (6.zero | ) | (33.5 | ) | (11.5 | ) | ||||||||
One-time acquisition associated prices (2) | (1.1 | ) | (three.zero | ) | (four.zero | ) | (four.three | ) | ||||||||
Different working bills (three) | — | — | (1.eight | ) | — | |||||||||||
Amortization expense (four) | (2.four | ) | (zero.eight | ) | (four.zero | ) | (zero.9 | ) | ||||||||
Adjusted working earnings | $ | 40.7 | $ | 32.5 | $ | 72.6 | $ | 58.7 | ||||||||
as a % of adjusted revenues (5) | 11.zero | % | 9.three | % | 10.zero | % | eight.eight | % | ||||||||
(1) Primarily represents the elimination of the monetary outcomes of those companies, inclusive of “particular prices” of $zero.9 and $1.6 throughout the three months ended June 29, 2019 and June 30, 2018, respectively, and $zero.9 and $three.2 throughout the six months ended June 29, 2019 and June 30, 2018, respectively. | ||||||||||||||||
(2) Represents one-time acquisition associated prices throughout the three months ended June 29, 2019 and June 30, 2018 related to (i) stock step-up of $zero.9 and $1.6, respectively, and (ii) integration and transaction prices of $zero.2 and $1.four, respectively, and one-time acquisition associated prices throughout the six months ended June 29, 2019 and June 30, 2018 related to (i) stock step-up of $2.2 and $1.9, respectively, and (ii) integration and transaction prices of $1.eight and $2.four, respectively. | ||||||||||||||||
(three) Represents prices related to revisions to estimates of sure liabilities retained in reference to the 2016 sale of the dry cooling enterprise, with such revision ensuing from settlement exercise throughout the first quarter of 2019. | ||||||||||||||||
(four) Represents amortization expense related to acquired intangible belongings. | ||||||||||||||||
(5) See “Outcomes of Reportable and Different Working Segments” for relevant percentages primarily based on GAAP outcomes. | ||||||||||||||||
SPX CORPORATION AND SUBSIDIARIES | |||||||||||
NON-GAAP RECONCILIATION – EARNINGS PER SHARE | |||||||||||
Three Months Ended June 29, 2019 | |||||||||||
(Unaudited; in thousands and thousands, besides per share values) | |||||||||||
GAAP | Changes | Adjusted | |||||||||
Section earnings (1) | $ | 41.four | $ | 13.three | $ | 54.7 | |||||
Company expense (2) | (10.5 | ) | zero.2 | (10.three | ) | ||||||
Lengthy-term incentive compensation expense | (three.three | ) | — | (three.three | ) | ||||||
Particular prices, internet (three) | (1.three | ) | zero.9 | (zero.four | ) | ||||||
Working earnings | 26.three | 14.four | 40.7 | ||||||||
Different earnings, internet (four) | 1.9 | (zero.four | ) | 1.5 | |||||||
Curiosity expense, internet | (four.7 | ) | — | (four.7 | ) | ||||||
Earnings from persevering with operations earlier than earnings taxes | 23.5 | 14.zero | 37.5 | ||||||||
Earnings tax provision (5) | (four.1 | ) | (three.1 | ) | (7.2 | ) | |||||
Earnings from persevering with operations | 19.four | 10.9 | 30.three | ||||||||
Dilutive shares excellent | 44.892 | 44.892 | |||||||||
Earnings per share from persevering with operations | $ | zero.43 | $ | zero.67 | |||||||
(1) Adjustment represents the elimination of (i) working losses related to the South Africa and Warmth Switch companies ($10.zero), (ii) stock step-up prices associated to the Cues and Sabik acquisitions ($zero.9), and (iii) amortization expense related to acquired intangible belongings ($2.four). | |||||||||||
(2) Adjustment represents the elimination of acquisition associated bills incurred throughout the interval. | |||||||||||
(three) Adjustment represents the elimination of restructuring prices related to the South Africa and Warmth Switch companies. | |||||||||||
(four) Adjustment represents the elimination of (i) a acquire on an fairness safety related to a good worth adjustment ($1.6), (ii) non-service pension and postretirement prices ($1.zero) and (iii) elimination of overseas foreign money losses related to the South African initiatives ($zero.2). | |||||||||||
(5) Adjustment represents the tax impression of things (1) by (four) above. | |||||||||||
SPX CORPORATION AND SUBSIDIARIES | |||||||||||
NON-GAAP RECONCILIATION – EARNINGS PER SHARE | |||||||||||
Three Months Ended June 30, 2018 | |||||||||||
(Unaudited; in thousands and thousands, besides per share values) | |||||||||||
GAAP | Changes | Adjusted | |||||||||
Section earnings (1) | $ | 41.zero | $ | 6.eight | $ | 47.eight | |||||
Company expense (2) | (12.5 | ) | 1.four | (11.1 | ) | ||||||
Lengthy-term incentive compensation expense | (four.2 | ) | — | (four.2 | ) | ||||||
Particular prices, internet (three) | (1.6 | ) | 1.6 | — | |||||||
Working earnings | 22.7 | 9.eight | 32.5 | ||||||||
Different earnings, internet (four) | 2.2 | zero.5 | 2.7 | ||||||||
Curiosity expense, internet | (four.eight | ) | — | (four.eight | ) | ||||||
Earnings from persevering with operations earlier than earnings taxes | 20.1 | 10.three | 30.four | ||||||||
Earnings tax provision (5) | (zero.four | ) | (6.1 | ) | (6.5 | ) | |||||
Earnings from persevering with operations | 19.7 | four.2 | 23.9 | ||||||||
Dilutive shares excellent | 44.723 | 44.723 | |||||||||
Earnings per share from persevering with operations | $ | zero.44 | $ | zero.53 | |||||||
(1) Adjustment represents the elimination of (i) working losses related to the South Africa and Warmth Switch companies ($four.four), (ii) stock step-up prices associated to the Cues acquisition ($1.6), and (iii) amortization expense related to acquired intangible belongings ($zero.eight). | |||||||||||
(2) Adjustment primarily represents elimination of acquisition associated bills incurred throughout the interval. | |||||||||||
(three) Adjustment represents elimination of restructuring prices related to the South Africa and Warmth Switch companies. | |||||||||||
(four) Adjustment represents elimination of non-service pension and postretirement gadgets and elimination of overseas foreign money losses related to the South African initiatives. | |||||||||||
(5) Adjustment represents the tax impression of things (1) by (four) above and the elimination of tax prices related to the impression of U.S. tax reform. |