SPX Reports First Quarter 2022 Results
SPX Corporation (NYSE: SPXC) reported Q1 2022 earnings with GAAP EPS of $0.28 and adjusted EPS of $0.40. Revenue increased to $307.1 million, up from $287.2 million in Q1 2021. Despite strong demand, the company faces supply chain constraints affecting production. SPX announced the acquisition of International Tower Lighting (ITL), enhancing its AtoN lighting capabilities. Full-year 2022 guidance was updated, projecting revenue of $1.36-$1.43 billion and adjusted EPS of $2.55-$2.85, reflecting a year-on-year growth of approximately 16%. Cash generation remains strong amidst ongoing challenges.
- Q1 2022 revenue increased to $307.1 million, up 6.9% from $287.2 million in Q1 2021.
- Adjusted EPS guidance for 2022 raised to $2.55-$2.85, indicating a 16% year-over-year growth.
- Successful acquisition of International Tower Lighting (ITL) to broaden high-quality AtoN solutions.
- Strong demand trends noted in end markets, despite supply chain issues.
- GAAP EPS decreased from $0.50 in Q1 2021 to $0.28 in Q1 2022.
- Adjusted operating income fell to $25.1 million in Q1 2022 from $30.6 million in Q1 2021.
- Detection & Measurement segment organic revenue declined by 7.0% compared to Q1 2021.
- Operating income decreased from $25.0 million in Q1 2021 to $11.4 million in Q1 2022.
Q1 GAAP EPS of
Strong Demand Continues; Managing Macro Risks
Updating 2022 Full-Year Adjusted EPS* Guidance for ITL Acquisition
CHARLOTTE, N.C., May 04, 2022 (GLOBE NEWSWIRE) -- SPX Corporation (NYSE:SPXC) today reported results for the first quarter ended April 2, 2022.
Gene Lowe, President and CEO, remarked, “Our first quarter performance was stronger than anticipated, including the benefit of some order deliveries in our Detection & Measurement segment that we previously expected mid-year. Demand in our end markets remains high, as reflected in our order trends. While supply chain and labor availability continue to constrain production, we have seen some improvement in these areas and anticipate strong results for the remainder of the year.”
Mr. Lowe continued, “This quarter we were very pleased to welcome International Tower Lighting (ITL) into the SPX family. ITL further strengthens our positioning in AtoN (Aids to Navigation) terrestrial lighting applications and services, allowing us to provide a broader set of high-quality AtoN solutions. We are updating our full-year guidance to reflect the acquisition and now anticipate year-on-year adjusted EPS growth of approximately
Mr. Lowe further commented, “Our balance sheet remains strong and we continue to anticipate solid full-year cash generation. We remain focused on additional capital deployment for growth investments, including in our active pipeline of acquisition targets. As part of our capital allocation strategy, we have a share repurchase authorization of up to
First Quarter 2022 Overview:
For the first quarter of 2022, the company reported revenue of
Adjusted operating income* was
First Quarter Financial Comparisons: | ||||||
($ millions) | Q1 2022 | Q1 2021 | ||||
Revenue | ||||||
Segment Income | 30.2 | 42.3 | ||||
Operating Income | 11.4 | 25.0 | ||||
Adjusted Segment Income* | 39.6 | 47.0 | ||||
Adjusted Operating Income* | 25.1 | 30.6 |
*Non-GAAP financial measure. See attached schedules for reconciliation to most comparable GAAP financial measure.
HVAC Segment
Revenue for the first quarter of 2022 was
Segment income in the first quarter of 2022 was
Detection & Measurement Segment
Revenue for the first quarter of 2022 was
Segment income for the first quarter of 2022 was
Financial Update: As of April 2, 2022, SPX had total outstanding debt of
2022 Guidance Update:
SPX is updating full-year 2022 guidance for the acquisition of ITL, and is now targeting consolidated revenue of approximately
Segment and company performance is expected to be as follows:
Revenue | Segment Income Margin % | |
HVAC | ||
Detection & Measurement | ( | |
Total SPX | ( |
Non-GAAP Presentation: To provide additional clarity to its operating results, the company discusses results that include “adjusted” non-GAAP financial measures. Reconciliations of adjusted results to the most comparable GAAP measures are available in the exhibits of this press release.
Form 10-Q: The company expects to file its quarterly report on Form 10-Q for the quarter ended April 2, 2022 with the Securities and Exchange Commission on or before May 12, 2022. This press release should be read in conjunction with that filing, which will be available on the company's website at www.spx.com, in the Investor Relations section.
Conference Call: SPX will host a conference call at 4:45 p.m. (EDT) today to discuss first 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.
Conference call
Dial in: 877-341-7727
From outside the United States: +1 262-558-6098
Participant code: 8158703
A replay of the call will be available by telephone through Wednesday, May 11, 2022.
To listen to a replay of the call
Dial in: 855-859-2056
From outside the United States: +1 404-537-3406
Participant code: 8158703
Upcoming Investor Events: Company management plans to conduct virtual meetings with investors during the first quarter of 2022 and the company will also be participating virtually in the Loop Capital Investor Conference on June 2nd.
About SPX Corporation: SPX Corporation 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 Corporation has more than 3,100 employees in 15 countries. SPX Corporation is listed on the New York Stock Exchange under the ticker symbol “SPXC.” For more information, please visit www.spx.com.
*Non-GAAP financial measure. See attached schedules for reconciliation of each historical non-GAAP measure to the respective most comparable GAAP financial measure.
Note: 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 first quarter, the impact of foreign exchange rate changes subsequent to the end of the first quarter, impacts from further spread of COVID-19, and asbestos liability, environmental and litigation charges.
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. 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: the impact of the COVID-19 pandemic and governmental and other actions taken in response, including labor constraints and supply-chain disruptions; the uncertainty of claims resolution with respect to the large power projects in South Africa, as well as claims with respect to asbestos, environmental and other contingent liabilities; cyclical changes and specific industry events in the company’s markets; economic impacts from continued or escalating geopolitical tensions; 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; 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; domestic economic, political, legal, accounting and business developments adversely affecting the company’s business, including regulatory changes; changes in worldwide economic conditions; 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 disclaims any responsibility to update or revise such statements, except as required by law.
SOURCE SPX Corporation.
Investor and Media Contacts:
Paul Clegg, VP, Investor Relations and Communications
Phone: 980-474-3806
E-mail: spx.investor@spx.com
Source: SPX Corporation
SPX CORPORATION AND SUBSIDIARIES | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
(Unaudited; in millions, except per share amounts) | |||||||
Three months ended | |||||||
April 2, 2022 | April 3, 2021 | ||||||
Revenues | $ | 307.1 | $ | 287.2 | |||
Costs and expenses: | |||||||
Cost of products sold | 203.1 | 182.8 | |||||
Selling, general and administrative | 84.2 | 75.2 | |||||
Intangible amortization | 9.3 | 4.0 | |||||
Special charges, net | - | 0.2 | |||||
Other operating income | (0.9 | ) | - | ||||
Operating income | 11.4 | 25.0 | |||||
Other income, net | 6.5 | 7.4 | |||||
Interest expense | (2.4 | ) | (4.2 | ) | |||
Interest income | 0.1 | 0.1 | |||||
Income from continuing operations before income taxes | 15.6 | 28.3 | |||||
Income tax provision | (2.6 | ) | (5.3 | ) | |||
Income from continuing operations | 13.0 | 23.0 | |||||
Income from discontinued operations, net of tax | - | 4.6 | |||||
Loss on disposition of discontinued operations, net of tax | (1.6 | ) | (0.8 | ) | |||
Income (loss) from discontinued operations, net of tax | (1.6 | ) | 3.8 | ||||
Net income | $ | 11.4 | $ | 26.8 | |||
Basic income per share of common stock: | |||||||
Income from continuing operations | $ | 0.29 | $ | 0.51 | |||
Income (loss) from discontinued operations | (0.04 | ) | 0.08 | ||||
Net income per share | $ | 0.25 | $ | 0.59 | |||
Weighted-average number of common shares outstanding — basic | 45.554 | 45.132 | |||||
Diluted income per share of common stock: | |||||||
Income from continuing operations | $ | 0.28 | $ | 0.50 | |||
Income (loss) from discontinued operations | (0.03 | ) | 0.08 | ||||
Net income per share | $ | 0.25 | $ | 0.58 | |||
Weighted-average number of common shares outstanding — diluted | 46.445 | 46.319 | |||||
SPX CORPORATION AND SUBSIDIARIES | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(Unaudited; in millions) | |||||||
April 2, 2022 | December 31, 2021 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and equivalents | $ | 262.8 | $ | 388.2 | |||
Accounts receivable, net | 223.1 | 223.4 | |||||
Contract assets | 30.3 | 28.9 | |||||
Inventories, net | 220.7 | 189.8 | |||||
Other current assets | 78.6 | 73.1 | |||||
Total current assets | 815.5 | 903.4 | |||||
Property, plant and equipment: | |||||||
Land | 13.9 | 13.9 | |||||
Buildings and leasehold improvements | 62.8 | 62.9 | |||||
Machinery and equipment | 233.1 | 231.4 | |||||
309.8 | 308.2 | ||||||
Accumulated depreciation | (199.1 | ) | (194.9 | ) | |||
Property, plant and equipment, net | 110.7 | 113.3 | |||||
Goodwill | 490.6 | 457.3 | |||||
Intangibles, net | 405.9 | 415.5 | |||||
Other assets | 676.6 | 675.9 | |||||
Deferred income taxes | 12.5 | 11.0 | |||||
Assets of DBT and Heat Transfer (includes cash and cash equivalents of | 55.4 | 52.2 | |||||
TOTAL ASSETS | $ | 2,567.2 | $ | 2,628.6 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 111.0 | $ | 119.6 | |||
Contract liabilities | 43.7 | 44.7 | |||||
Accrued expenses | 177.4 | 217.9 | |||||
Income taxes payable | 46.8 | 42.1 | |||||
Short-term debt | 2.0 | 2.2 | |||||
Current maturities of long-term debt | 13.0 | 13.0 | |||||
Total current liabilities | 393.9 | 439.5 | |||||
Long-term debt | 227.7 | 230.8 | |||||
Deferred and other income taxes | 30.6 | 31.3 | |||||
Other long-term liabilities | 761.2 | 788.5 | |||||
Liabilities of DBT and Heat Transfer | 38.0 | 35.6 | |||||
Total long-term liabilities | 1,057.5 | 1,086.2 | |||||
Stockholders' Equity: | |||||||
Common stock | 0.5 | 0.5 | |||||
Paid-in capital | 1,321.2 | 1,334.2 | |||||
Retained deficit | (40.4 | ) | (51.8 | ) | |||
Accumulated other comprehensive income | 266.9 | 263.9 | |||||
Common stock in treasury | (432.4 | ) | (443.9 | ) | |||
Total stockholders' equity | 1,115.8 | 1,102.9 | |||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 2,567.2 | $ | 2,628.6 | |||
SPX CORPORATION AND SUBSIDIARIES | ||||||||||||||
RESULTS OF REPORTABLE SEGMENTS | ||||||||||||||
(Unaudited; in millions) | ||||||||||||||
Three months ended | ||||||||||||||
April 2, 2022 | April 3, 2021 | Δ | %/bps | |||||||||||
HVAC reportable segment | ||||||||||||||
Revenues | $ | 193.1 | $ | 175.6 | $ | 17.5 | 10.0% | |||||||
Gross profit | 54.9 | 53.7 | 1.2 | |||||||||||
Selling, general and administrative expense | 34.3 | 30.7 | 3.6 | |||||||||||
Intangible amortization expense | 5.4 | 0.7 | 4.7 | |||||||||||
Income | $ | 15.2 | $ | 22.3 | $ | (7.1 | ) | (31.8)% | ||||||
as a percent of revenues | 7.9 | % | 12.7 | % | -480 bps | |||||||||
Detection & Measurement reportable segment | ||||||||||||||
Revenues | $ | 114.0 | $ | 111.6 | $ | 2.4 | 2.2% | |||||||
Gross profit | 49.1 | 50.7 | (1.6 | ) | ||||||||||
Selling, general and administrative expense | 30.2 | 27.4 | 2.8 | |||||||||||
Intangible amortization expense | 3.9 | 3.3 | 0.6 | |||||||||||
Income | $ | 15.0 | $ | 20.0 | $ | (5.0 | ) | (25.0)% | ||||||
as a percent of revenues | 13.2 | % | 17.9 | % | -470 bps | |||||||||
Consolidated Revenues | $ | 307.1 | $ | 287.2 | $ | 19.9 | 6.9% | |||||||
Consolidated Segment Income | 30.2 | 42.3 | (12.1 | ) | (28.6)% | |||||||||
as a percent of revenues | 9.8 | % | 14.7 | % | -490 bps | |||||||||
Total segment income | $ | 30.2 | $ | 42.3 | $ | (12.1 | ) | |||||||
Corporate expense | 16.6 | 14.4 | 2.2 | |||||||||||
Long-term incentive compensation expense | 3.1 | 2.7 | 0.4 | |||||||||||
Special charges, net | - | 0.2 | (0.2 | ) | ||||||||||
Other operating income | (0.9 | ) | - | (0.9 | ) | |||||||||
Consolidated operating income | $ | 11.4 | $ | 25.0 | $ | (13.6 | ) | (54.4)% | ||||||
as a percent of revenues | 3.7 | % | 8.7 | % | -500 bps | |||||||||
SPX CORPORATION AND SUBSIDIARIES | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(Unaudited; in millions) | |||||||
Three months ended | |||||||
April 2, 2022 | April 3, 2021 | ||||||
Cash flows from (used in) operating activities: | |||||||
Net income | $ | 11.4 | $ | 26.8 | |||
Less: Income (loss) from discontinued operations, net of tax | (1.6 | ) | 3.8 | ||||
Income from continuing operations | 13.0 | 23.0 | |||||
Adjustments to reconcile income from continuing operations to net cash from (used in) operating activities: | |||||||
Special charges, net | - | 0.2 | |||||
Gain on change in fair value of equity security | (4.4 | ) | (5.2 | ) | |||
Deferred and other income taxes | 4.3 | 8.3 | |||||
Depreciation and amortization | 14.0 | 8.7 | |||||
Pension and other employee benefits | 1.6 | 0.7 | |||||
Long-term incentive compensation | 3.1 | 2.7 | |||||
Other, net | 0.6 | 1.8 | |||||
Changes in operating assets and liabilities, net of effects from acquisitions: | |||||||
Accounts receivable and other assets | 10.4 | 27.5 | |||||
Inventories | (25.6 | ) | (6.9 | ) | |||
Accounts payable, accrued expenses and other | (65.5 | ) | (37.3 | ) | |||
Cash spending on restructuring actions | (0.1 | ) | (0.4 | ) | |||
Net cash from (used in) continuing operations | (48.6 | ) | 23.1 | ||||
Net cash from (used in) discontinued operations | (8.6 | ) | 37.1 | ||||
Net cash from (used in) operating activities | (57.2 | ) | 60.2 | ||||
Cash flows from (used in) investing activities: | |||||||
Proceeds related to company-owned life insurance policies, net | - | 3.5 | |||||
Business acquisition, net of cash acquired | (41.8 | ) | - | ||||
Capital expenditures | (2.1 | ) | (2.2 | ) | |||
Net cash from (used in) continuing operations | (43.9 | ) | 1.3 | ||||
Net cash used in discontinued operations | (13.9 | ) | (0.4 | ) | |||
Net cash from (used in) investing activities | (57.8 | ) | 0.9 | ||||
Cash flows from (used in) financing activities: | |||||||
Borrowings under senior credit facilities | - | 54.0 | |||||
Repayments under senior credit facilities | (3.1 | ) | (81.6 | ) | |||
Borrowings under trade receivables arrangement | - | 54.0 | |||||
Repayments under trade receivables arrangement | - | (48.0 | ) | ||||
Net borrowings (repayments) under other financing arrangements | (0.2 | ) | 0.2 | ||||
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 | (6.4 | ) | (3.8 | ) | |||
Net cash used in continuing operations | (11.0 | ) | (25.2 | ) | |||
Net cash used in discontinued operations | (0.4 | ) | (0.4 | ) | |||
Net cash used in financing activities | (11.4 | ) | (25.6 | ) | |||
Change in cash and equivalents due to changes in foreign currency exchange rates | (0.1 | ) | 3.1 | ||||
Net change in cash and equivalents | (126.5 | ) | 38.6 | ||||
Consolidated cash and equivalents, beginning of period | 396.0 | 68.3 | |||||
Consolidated cash and equivalents, end of period | $ | 269.5 | $ | 106.9 | |||
SPX CORPORATION AND SUBSIDIARIES | ||||||||||||||||||
CASH AND DEBT RECONCILIATION | ||||||||||||||||||
(Unaudited; in millions) | ||||||||||||||||||
Three months ended | ||||||||||||||||||
April 2, 2022 | ||||||||||||||||||
Beginning cash and equivalents | $ | 396.0 | ||||||||||||||||
Cash used in continuing operations | (48.6 | ) | ||||||||||||||||
Capital expenditures | (2.1 | ) | ||||||||||||||||
Business acquisition, net of cash acquired | (41.8 | ) | ||||||||||||||||
Payment of contingent consideration | (1.3 | ) | ||||||||||||||||
Repayments under senior credit facilities | (3.1 | ) | ||||||||||||||||
Net repayments under other financing arrangements | (0.2 | ) | ||||||||||||||||
Minimum withholdings paid on behalf of employees for net share settlements, net of proceeds from the exercise of employee stock options | (6.4 | ) | ||||||||||||||||
Cash used in discontinued operations | (22.9 | ) | ||||||||||||||||
Change in cash due to changes in foreign currency exchange rates | (0.1 | ) | ||||||||||||||||
Ending cash and equivalents | $ | 269.5 | ||||||||||||||||
Debt at December 31, 2021 | Borrowings | Repayments | Other | Debt at April 2, 2022 | ||||||||||||||
Revolving loans | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||
Term loan | 243.7 | - | (3.1 | ) | - | 240.6 | ||||||||||||
Trade receivables financing arrangement | - | - | - | - | - | |||||||||||||
Other indebtedness | 3.3 | - | (0.2 | ) | - | 3.1 | ||||||||||||
Less: Deferred financing costs associated with the term loan | (1.0 | ) | - | - | - | (1.0 | ) | |||||||||||
Totals | $ | 246.0 | $ | - | $ | (3.3 | ) | $ | - | $ | 242.7 | |||||||
SPX CORPORATION AND SUBSIDIARIES | ||||||
NON-GAAP RECONCILIATION - ORGANIC REVENUE | ||||||
HVAC AND DETECTION & MEASUREMENT REPORTABLE SEGMENTS | ||||||
(Unaudited) | ||||||
Three months ended April 2, 2022 | ||||||
HVAC | Detection & Measurement | |||||
Net Revenue Growth | 10.0 | % | 2.2 | % | ||
Exclude: Foreign Currency | - | % | (1.1 | )% | ||
Exclude: Acquisitions | 9.6 | % | 10.3 | % | ||
Organic Revenue Growth (Decline) | 0.4 | % | (7.0 | )% | ||
SPX CORPORATION AND SUBSIDIARIES | ||||||||
NON-GAAP RECONCILIATION - REVENUE AND SEGMENT INCOME | ||||||||
(Unaudited; in millions) | ||||||||
CONSOLIDATED SPX: | Three months ended | |||||||
April 2, 2022 | April 3, 2021 | |||||||
Total segment income | $ | 30.2 | $ | 42.3 | ||||
Exclude: Acquisition related costs (1) | (0.1 | ) | (0.7 | ) | ||||
Exclude: Amortization expense (2) | (9.3 | ) | (4.0 | ) | ||||
Adjusted segment income | $ | 39.6 | $ | 47.0 | ||||
as a percent of revenues (3) | 12.9 | % | 16.4 | % | ||||
HVAC REPORTABLE SEGMENT: | ||||||||
Three months ended | ||||||||
April 2, 2022 | April 3, 2021 | |||||||
HVAC segment income | $ | 15.2 | $ | 22.3 | ||||
Exclude: Acquisition related costs (1) | - | - | ||||||
Exclude: Amortization expense (2) | (5.4 | ) | (0.7 | ) | ||||
HVAC adjusted segment income | $ | 20.6 | $ | 23.0 | ||||
as a percent of HVAC segment revenues (3) | 10.7 | % | 13.1 | % | ||||
DETECTION & MEASUREMENT REPORTABLE SEGMENT: | ||||||||
Three months ended | ||||||||
April 2, 2022 | April 3, 2021 | |||||||
Detection & Measurement segment income | $ | 15.0 | $ | 20.0 | ||||
Exclude: Acquisition related costs (1) | (0.1 | ) | (0.7 | ) | ||||
Exclude: Amortization expense (2) | (3.9 | ) | (3.3 | ) | ||||
Detection & Measurement adjusted segment income | $ | 19.0 | $ | 24.0 | ||||
as a percent of Detection & Measurement segment revenues (3) | 16.7 | % | 21.5 | % | ||||
(1) Includes cost incurred in connection with acquisitions during the periods herein, including additional "Cost of products sold" related to the step-up of inventory (to fair value) acquired in connection with these acquisitions of | ||||||||
(2) Represents amortization expense associated with acquired intangible assets. | ||||||||
(3) See "Results of Reportable Segments" for applicable percentages based on GAAP results. | ||||||||
SPX CORPORATION AND SUBSIDIARIES | ||||||||
NON-GAAP RECONCILIATION - OPERATING INCOME | ||||||||
(Unaudited; in millions) | ||||||||
Three months ended | ||||||||
April 2, 2022 | April 3, 2021 | |||||||
Operating income | $ | 11.4 | $ | 25.0 | ||||
Include - TSA Income (1) | 0.9 | - | ||||||
Exclude: | ||||||||
Acquisition related and other costs (2) | (4.4 | ) | (1.6 | ) | ||||
Other operating income (3) | 0.9 | - | ||||||
Amortization expense (4) | (9.3 | ) | (4.0 | ) | ||||
Adjusted operating income | $ | 25.1 | $ | 30.6 | ||||
as a percent of revenues (5) | 8.2 | % | 10.7 | % | ||||
(1) Represents transition services income related to the Transformer Solutions disposition. Amount recorded in non-operating income for U.S. GAAP purposes. | ||||||||
(2) For the three months ended April 2, 2022, represents (i) cost incurred in connection with acquisitions and transformation initiatives ( | ||||||||
(3) Represents a gain of | ||||||||
(4) Represents amortization expense associated with acquired intangible assets. | ||||||||
(5) See "Results of Reportable Segments" for applicable percentages based on GAAP results. | ||||||||
SPX CORPORATION AND SUBSIDIARIES | |||||||||||
NON-GAAP RECONCILIATION - EARNINGS PER SHARE | |||||||||||
Three Months Ended April 2, 2022 | |||||||||||
(Unaudited; in millions, except per share values) | |||||||||||
GAAP | Adjustments | Adjusted | |||||||||
Segment income (1) | $ | 30.2 | $ | 9.4 | $ | 39.6 | |||||
Corporate expense (2) | (16.6 | ) | 5.2 | (11.4 | ) | ||||||
Long-term incentive compensation expense | (3.1 | ) | - | (3.1 | ) | ||||||
Special charges, net | - | - | - | ||||||||
Other operating income (3) | 0.9 | (0.9 | ) | - | |||||||
Operating income | 11.4 | 13.7 | 25.1 | ||||||||
Other income, net (4) | 6.5 | (4.9 | ) | 1.6 | |||||||
Interest expense, net | (2.3 | ) | - | (2.3 | ) | ||||||
Income from continuing operations before income taxes | 15.6 | 8.8 | 24.4 | ||||||||
Income tax provision (5) | (2.6 | ) | (3.0 | ) | (5.6 | ) | |||||
Income from continuing operations | 13.0 | 5.8 | 18.8 | ||||||||
Diluted shares outstanding | 46.445 | 46.445 | |||||||||
Earnings per share from continuing operations | $ | 0.28 | $ | 0.40 | |||||||
(1) Adjustment represents the removal of (i) amortization expense associated with acquired intangible assets ( | |||||||||||
(2) Adjustment represents the removal of acquisition and transformation related expenses ( | |||||||||||
(3) Adjustment represents the removal of a gain related to a revision of the liability associated with contingent consideration on a recent acquisition. | |||||||||||
(4) Adjustment represents the removal of (i) a gain on an equity security associated with a fair value adjustment ( | |||||||||||
(5) Adjustment represents the tax impact of items (1) through (4) above and the removal of non-recurring tax benefits associated with transformation initiatives. | |||||||||||
SPX CORPORATION AND SUBSIDIARIES | |||||||||||
NON-GAAP RECONCILIATION - EARNINGS PER SHARE | |||||||||||
Three Months Ended April 3, 2021 | |||||||||||
(Unaudited; in millions, except per share values) | |||||||||||
GAAP | Adjustments | Adjusted | |||||||||
Segment income (1) | $ | 42.3 | $ | 4.7 | $ | 47.0 | |||||
Corporate expense (2) | (14.4 | ) | 0.9 | (13.5 | ) | ||||||
Long-term incentive compensation expense | (2.7 | ) | - | (2.7 | ) | ||||||
Special charges, net | (0.2 | ) | - | (0.2 | ) | ||||||
Operating income | 25.0 | 5.6 | 30.6 | ||||||||
Other income, net (3) | 7.4 | (5.6 | ) | 1.8 | |||||||
Interest expense, net | (4.1 | ) | - | (4.1 | ) | ||||||
Income from continuing operations before income taxes | 28.3 | - | 28.3 | ||||||||
Income tax provision | (5.3 | ) | (0.1 | ) | (5.4 | ) | |||||
Income from continuing operations | 23.0 | (0.1 | ) | 22.9 | |||||||
Diluted shares outstanding | 46.319 | 46.319 | |||||||||
Earnings per share from continuing operations | $ | 0.50 | $ | 0.49 | |||||||
(1) Adjustment represents the removal of (i) amortization expense associated with acquired intangible assets ( | |||||||||||
(2) Adjustment represents the removal of acquisition related expenses incurred during the period and costs associated with our South Africa business that could not be allocated to discontinued operations for U.S. GAAP purposes ( | |||||||||||
(3) Adjustment represents the removal of (i) a gain on an equity security associated with a fair value adjustment ( |
FAQ
What were SPXC's Q1 2022 earnings results?
How did SPXC's revenue perform in Q1 2022?
What is SPXC's updated full-year guidance for 2022?
What challenges is SPXC facing in Q1 2022?