SPX Reports Fourth Quarter and Full-Year 2020 Results
SPX Corporation (NYSE: SPXC) reported Q4 2020 GAAP EPS of $0.58 and full-year EPS of $2.20, with adjusted EPS of $0.89 and $2.80 respectively. Revenue for Q4 was $456.8 million, up from $443.4 million in Q4 2019. For full-year 2020, revenue increased to $1.6 billion from $1.5 billion in 2019. The company anticipates adjusted EPS for 2021 between $3.00 and $3.20, with a focus on growth through strategic acquisitions and enhancements in key initiatives. Despite challenges due to the pandemic, SPX experienced strong segment income in various sectors, though segments showed mixed performance.
- 2020 full-year revenue increased 5.3% to $1.6 billion.
- Adjusted EPS for full-year 2020 up 1.5% to $2.80.
- 2021 anticipated adjusted EPS guidance of $3.00-$3.20 implies projected double-digit growth.
- Q4 2020 operating income declined to $34.9 million, down from $51.6 million in Q4 2019.
- HVAC segment revenue decreased by 4.4% in Q4 2020.
- Segment income for Detection & Measurement fell to $20.7 million in Q4 2020 from $22.5 million in Q4 2019.
Q4 and Full-Year 2020 GAAP EPS of
Q4 and Full-Year 2020 Adjusted EPS* of
Introducing 2021 Full-Year Adjusted EPS* Guidance Range of
CHARLOTTE, N.C., Feb. 23, 2021 (GLOBE NEWSWIRE) -- SPX Corporation (NYSE:SPXC) today reported results for the fourth quarter and the year ended December 31, 2020.
Gene Lowe, President and CEO, remarked, “2020 was a highly unusual and challenging year. I want to thank all of our employees for their immense dedication and perseverance throughout this difficult time. Facing an unprecedented worldwide pandemic, our team continued to make safety our top priority, while rapidly adapting and executing effectively on our value creation goals. We closed the year with solid results, growing our full-year revenue, segment income and earnings per share.”
“We enter 2021 well-positioned for further growth,” continued Mr. Lowe. “This year we anticipate a double digit increase in adjusted earnings per share, and will continue to pursue opportunities to accelerate our growth, including acquisitions across our strategic platforms. We will also continue to drive progress on our key initiatives, including extending our continuous improvement processes across the organization, expanding our use of digital solutions to strengthen our customers’ experience, enhancing our focus on sustainability, and building on the successes of our employee development and Diversity & Inclusion programs.”
Mr. Lowe concluded, “With a strong balance sheet, a talented, experienced team, and attractive businesses that are operating at high levels of efficiency, SPX is poised to continue generating value in 2021 and for years to come.”
Fourth Quarter 2020 Overview:
For the fourth quarter of 2020, the company reported revenue of
Diluted per share income from continuing operations attributable to SPX Corporation in the fourth quarter of 2020 was
SPX’s adjusted consolidated revenue* was
Full-Year 2020 Overview:
For the full-year 2020, the company reported revenue of
SPX’s adjusted consolidated revenue* for 2020 was
Fourth Quarter and Full-Year Financial Comparisons:
GAAP Results: | ||||||||||||||||
($ millions) | Q4 2019 | Q4 2020 | FY 2019 | FY 2020 | ||||||||||||
Revenue | $ | 443.4 | $ | 456.8 | $ | 1,520.9 | $ | 1,559.5 | ||||||||
Segment Income | 69.5 | 65.1 | 176.5 | 203.7 | ||||||||||||
Operating Income | 51.6 | 34.9 | 110.0 | 132.0 |
Adjusted Results: | ||||||||||||||||
($ millions) | Q4 2019 | Q4 2020 | FY 2019 | FY 2020 | ||||||||||||
Adjusted Consolidated Revenue* | $ | 445.1 | $ | 456.1 | $ | 1,527.0 | $ | 1,555.5 | ||||||||
Adjusted Segment Income* | 79.4 | 77.3 | 231.0 | 238.3 | ||||||||||||
Adjusted Operating Income* | 62.6 | 49.2 | 172.3 | 169.4 |
* Non-GAAP financial measure. See attached schedules for reconciliation to most comparable GAAP financial measure.
HVAC
Revenue for Q4 2020 was
Segment income in Q4 2020 was
Full-year 2020 revenue decreased to
Full-year 2020 segment income was
Detection & Measurement
Revenue in Q4 2020 was
Segment income in Q4 2020 was
Full-year 2020 revenue was
Full-year 2020 segment income was
Engineered Solutions
Revenue in Q4 2020 was
Segment income in Q4 2020 was
Full-year 2020 revenue was
Full-year 2020 segment income was
Other
Other, which includes the South African operations, had revenue of
Other incurred a loss in Q4 2020 of
Full-year 2020 revenue was
Other incurred a loss of
Financial Update:
As of December 31, 2020, SPX had total outstanding debt of
2021 Guidance:
SPX is targeting 2021 adjusted consolidated revenue* of approximately
Segment and company performance, on a year-over-year basis, is expected to be as follows:
Revenue | Segment Income Margin % | ||
HVAC | Growth of low-to-mid single digits % | Modest increase | |
Detection & Measurement | Growth of low-to-mid teens % including 2020 acquisitions impact | Approximately flat | |
Engineered Solutions | Growth of low-single digits % | Approximately flat | |
Total SPX Adjusted | Growth of mid-single digits % | Modest increase |
Non-GAAP Presentation: To provide additional clarity to its operating results, the company discusses results that include “adjusted” non-GAAP financial measures. Adjusted results for the company exclude, among other items, the effect of the South African operations, categorized as “Other” in the company’s segment reporting structure. The company reports separately on the results of the “Other” category. The company anticipates reporting the results of the business included in the “Other” category as discontinued operations, at such time as they meet the accounting requirements for this treatment.
Beginning in the fourth quarter of 2020, the company began reporting the Heat Transfer business as a discontinued operation for all periods presented. Previously Heat Transfer was reported as a part of “Other,” along with the South African operations.
Form 10-K: The company expects to file its annual report on Form 10-K for the year ended December 31, 2020 with the Securities and Exchange Commission on or before March 2, 2021. 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 fourth quarter results and 2021 financial guidance. 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: 9896843
A replay of the call will be available by telephone through Tuesday, March 2nd, 2021.
To listen to a replay of the call
Dial in: 855-859-2056
From outside the United States: +1 404-537-3406
Participant code: 9896843
About SPX Corporation: SPX Corporation is a supplier of highly engineered products and technologies, holding leadership positions in the HVAC, detection and measurement, and engineered solutions markets. Based in Charlotte, North Carolina, SPX Corporation had approximately
*Non-GAAP financial measure. See attached schedules for reconciliation to 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, the results of our South African operations, 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 nearest corresponding GAAP financial measures is not practicable.
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. Actual results may differ materially from these statements. The words “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. In addition, estimates of future operating results are based on the company’s current complement of businesses, which is subject to change.
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.
SOURCE SPX Corporation.
Investor and Media Contacts:
Paul Clegg, VP, Investor Relations and Communications
Phone: 980-474-3806
E-mail: spx.investor@spx.com
SPX CORPORATION AND SUBSIDIARIES | |||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
(Unaudited; in millions, except per share amounts) | |||||||||||||||
Three months ended | Twelve months ended | ||||||||||||||
December 31, 2020 | December 31, 2019 | December 31, 2020 | December 31, 2019 | ||||||||||||
Revenues | $ | 456.8 | $ | 443.4 | $ | 1,559.5 | $ | 1,520.9 | |||||||
Costs and expenses: | |||||||||||||||
Cost of products sold | 313.7 | 299.5 | 1,080.6 | 1,078.2 | |||||||||||
Selling, general and administrative | 90.8 | 88.8 | 320.0 | 317.6 | |||||||||||
Intangible amortization | 5.7 | 2.9 | 14.0 | 8.9 | |||||||||||
Impairment of intangible assets | 0.7 | - | 0.7 | - | |||||||||||
Special charges, net | 1.6 | 0.6 | 3.2 | 4.4 | |||||||||||
Other operating expenses, net | 9.4 | - | 9.0 | 1.8 | |||||||||||
Operating income | 34.9 | 51.6 | 132.0 | 110.0 | |||||||||||
Other income (expense), net | (6.7 | ) | (15.0 | ) | 2.7 | (5.2 | ) | ||||||||
Interest expense | (4.4 | ) | (5.4 | ) | (18.4 | ) | (21.0 | ) | |||||||
Interest income | - | 0.5 | 0.2 | 1.8 | |||||||||||
Loss on amendment/refinancing of senior credit agreement | - | (0.6 | ) | (0.6 | ) | ||||||||||
Income from continuing operations before income taxes | 23.8 | 31.1 | 116.5 | 85.0 | |||||||||||
Income tax (provision) benefit | 3.1 | (2.0 | ) | (15.8 | ) | (13.9 | ) | ||||||||
Income from continuing operations | 26.9 | 29.1 | 100.7 | 71.1 | |||||||||||
Gain (loss) from discontinued operations, net of tax | 0.2 | (0.6 | ) | 0.2 | (1.4 | ) | |||||||||
Loss on disposition of discontinued operations, net of tax | (2.5 | ) | (3.1 | ) | (3.7 | ) | (4.4 | ) | |||||||
Loss from discontinued operations, net of tax | (2.3 | ) | (3.7 | ) | (3.5 | ) | (5.8 | ) | |||||||
Net income attributable to SPX Corporation common shareholders | 24.6 | 25.4 | 97.2 | 65.3 | |||||||||||
Adjustment related to redeemable noncontrolling interest | - | 5.6 | - | 5.6 | |||||||||||
Net income attributable to SPX Corporation common shareholders after adjustment related to redeemable noncontrolling interest | $ | 24.6 | $ | 31.0 | $ | 97.2 | $ | 70.9 | |||||||
Amounts attributable to SPX Corporation common shareholders after adjustment related to redeemable noncontrolling interest: | |||||||||||||||
Income from continuing operations, net of tax | $ | 26.9 | $ | 34.7 | $ | 100.7 | $ | 76.7 | |||||||
Loss from discontinued operations, net of tax | (2.3 | ) | (3.7 | ) | (3.5 | ) | (5.8 | ) | |||||||
Net income | $ | 24.6 | $ | 31.0 | $ | 97.2 | $ | 70.9 | |||||||
Basic income (loss) per share of common stock: | |||||||||||||||
Income from continuing operations attributable to SPX Corporation common shareholders after adjustment related to redeemable noncontrolling interest | $ | 0.60 | $ | 0.79 | $ | 2.26 | $ | 1.75 | |||||||
Loss from discontinued operations attributable to SPX Corporation common shareholders | (0.05 | ) | (0.09 | ) | (0.08 | ) | (0.14 | ) | |||||||
Net income per share attributable to SPX Corporation common shareholders after adjustment related to redeemable noncontrolling interest | $ | 0.55 | $ | 0.70 | $ | 2.18 | $ | 1.61 | |||||||
Weighted-average number of common shares outstanding — basic | 44.894 | 44.157 | 44.628 | 43.942 | |||||||||||
Diluted income (loss) per share of common stock: | |||||||||||||||
Income from continuing operations attributable to SPX Corporation common shareholders after adjustment related to redeemable noncontrolling interest | $ | 0.58 | $ | 0.76 | $ | 2.20 | $ | 1.71 | |||||||
Loss from discontinued operations attributable to SPX Corporation common shareholders | (0.05 | ) | (0.08 | ) | (0.08 | ) | (0.13 | ) | |||||||
Net income per share attributable to SPX Corporation common shareholders after adjustment related to redeemable noncontrolling interest | $ | 0.53 | $ | 0.68 | $ | 2.12 | $ | 1.58 | |||||||
Weighted-average number of common shares outstanding — diluted | 46.151 | 45.491 | 45.766 | 44.957 | |||||||||||
SPX CORPORATION AND SUBSIDIARIES | |||||||
CONSOLIDATED BALANCE SHEETS | |||||||
(Unaudited; in millions) | |||||||
December 31, 2020 | December 31, 2019 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and equivalents | $ | 68.3 | $ | 54.6 | |||
Accounts receivable, net | 271.8 | 264.8 | |||||
Contract assets | 81.1 | 63.1 | |||||
Inventories, net | 162.0 | 154.9 | |||||
Other current assets (includes income taxes receivable of | 99.1 | 93.0 | |||||
Assets of discontinued operations (includes cash and equivalents of | 0.3 | 1.7 | |||||
Total current assets | 682.6 | 632.1 | |||||
Property, plant and equipment: | |||||||
Land | 19.4 | 18.7 | |||||
Buildings and leasehold improvements | 128.0 | 121.9 | |||||
Machinery and equipment | 356.7 | 342.3 | |||||
504.1 | 482.9 | ||||||
Accumulated depreciation | (314.4 | ) | (303.8 | ) | |||
Property, plant and equipment, net | 189.7 | 179.1 | |||||
Goodwill | 499.9 | 449.3 | |||||
Intangibles, net | 305.0 | 251.7 | |||||
Other assets | 616.4 | 605.5 | |||||
Deferred income taxes | 3.9 | 16.4 | |||||
Assets of discontinued operations | 0.2 | 0.4 | |||||
TOTAL ASSETS | $ | 2,297.7 | $ | 2,134.5 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 138.5 | $ | 141.2 | |||
Contract liabilities | 103.5 | 100.5 | |||||
Accrued expenses | 233.6 | 219.6 | |||||
Income taxes payable | 0.4 | 2.2 | |||||
Short-term debt | 101.2 | 142.6 | |||||
Current maturities of long-term debt | 7.2 | 1.0 | |||||
Liabilities of discontinued operations | 0.5 | 1.5 | |||||
Total current liabilities | 584.9 | 608.6 | |||||
Long-term debt | 304.0 | 249.9 | |||||
Deferred and other income taxes | 23.8 | 26.3 | |||||
Other long-term liabilities | 755.8 | 747.1 | |||||
Liabilities of discontinued operations | - | 0.2 | |||||
Total long-term liabilities | 1,083.6 | 1,023.5 | |||||
Equity: | |||||||
Common stock | 0.5 | 0.5 | |||||
Paid-in capital | 1,319.9 | 1,302.4 | |||||
Retained deficit | (488.1 | ) | (584.8 | ) | |||
Accumulated other comprehensive income | 248.5 | 244.3 | |||||
Common stock in treasury | (451.6 | ) | (460.0 | ) | |||
Total equity | 629.2 | 502.4 | |||||
TOTAL LIABILITIES AND EQUITY | $ | 2,297.7 | $ | 2,134.5 | |||
SPX CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||||||||||
RESULTS OF REPORTABLE SEGMENTS AND OTHER OPERATING SEGMENT | ||||||||||||||||||||||||||||||
(Unaudited; in millions) | ||||||||||||||||||||||||||||||
Three months ended | Twelve months ended | |||||||||||||||||||||||||||||
December 31, 2020 | December 31, 2019 | Δ | %/bps | December 31, 2020 | December 31, 2019 | Δ | %/bps | |||||||||||||||||||||||
HVAC reportable segment | ||||||||||||||||||||||||||||||
Revenues | $ | 185.3 | $ | 193.8 | $ | (8.5 | ) | (4.4 | )% | $ | 590.7 | $ | 593.2 | $ | (2.5 | ) | (0.4 | )% | ||||||||||||
Gross profit | 62.6 | 68.7 | (6.1 | ) | 197.9 | 196.2 | 1.7 | |||||||||||||||||||||||
Selling, general and administrative expense | 28.0 | 29.5 | (1.5 | ) | 101.6 | 99.4 | 2.2 | |||||||||||||||||||||||
Intangible amortization expense | 0.7 | 1.1 | (0.4 | ) | 2.9 | 1.4 | 1.5 | |||||||||||||||||||||||
Income | $ | 33.9 | $ | 38.1 | $ | (4.2 | ) | (11.0 | )% | $ | 93.4 | $ | 95.4 | $ | (2.0 | ) | (2.1 | )% | ||||||||||||
as a percent of revenues | 18.3 | % | 19.7 | % | -140 bps | 15.8 | % | 16.1 | % | -30 bps | ||||||||||||||||||||
Detection & Measurement reportable segment | ||||||||||||||||||||||||||||||
Revenues | $ | 118.1 | $ | 100.5 | $ | 17.6 | 17.5 | % | $ | 387.3 | $ | 384.9 | $ | 2.4 | 0.6 | % | ||||||||||||||
Gross profit | 52.0 | 47.7 | 4.3 | 168.6 | 178.3 | (9.7 | ) | |||||||||||||||||||||||
Selling, general and administrative expense | 26.3 | 23.4 | 2.9 | 88.4 | 89.1 | (0.7 | ) | |||||||||||||||||||||||
Intangible amortization expense | 5.0 | 1.8 | 3.2 | 11.1 | 7.5 | 3.6 | ||||||||||||||||||||||||
Income | $ | 20.7 | $ | 22.5 | $ | (1.8 | ) | (8.0 | )% | $ | 69.1 | $ | 81.7 | $ | (12.6 | ) | (15.4 | )% | ||||||||||||
as a percent of revenues | 17.5 | % | 22.4 | % | -490 bps | 17.8 | % | 21.2 | % | -340 bps | ||||||||||||||||||||
Engineered Solutions reportable segment | ||||||||||||||||||||||||||||||
Revenues | $ | 152.7 | $ | 150.8 | $ | 1.9 | 1.3 | % | $ | 577.5 | $ | 548.9 | $ | 28.6 | 5.2 | % | ||||||||||||||
Gross profit | 29.8 | 30.7 | (0.9 | ) | 115.3 | 96.7 | 18.6 | |||||||||||||||||||||||
Selling, general and administrative expense | 14.0 | 14.6 | (0.6 | ) | 54.8 | 53.7 | 1.1 | |||||||||||||||||||||||
Income | $ | 15.8 | $ | 16.1 | $ | (0.3 | ) | (1.9 | )% | $ | 60.5 | $ | 43.0 | $ | 17.5 | 40.7 | % | |||||||||||||
as a percent of revenues | 10.3 | % | 10.7 | % | -40 bps | 10.5 | % | 7.8 | % | 270 bps | ||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||
Revenues | $ | 0.7 | $ | (1.7 | ) | $ | 2.4 | 141.2 | % | $ | 4.0 | $ | (6.1 | ) | $ | 10.1 | 165.6 | % | ||||||||||||
Gross profit (loss) | (1.3 | ) | (3.2 | ) | 1.9 | (2.9 | ) | (28.5 | ) | 25.6 | ||||||||||||||||||||
Selling, general and administrative expense | 4.0 | 4.0 | - | 16.4 | 15.1 | 1.3 | ||||||||||||||||||||||||
Loss | $ | (5.3 | ) | $ | (7.2 | ) | $ | 1.9 | 26.4 | % | $ | (19.3 | ) | $ | (43.6 | ) | $ | 24.3 | 55.7 | % | ||||||||||
Consolidated Revenues | $ | 456.8 | $ | 443.4 | $ | 13.4 | 3.0 | % | $ | 1,559.5 | $ | 1,520.9 | $ | 38.6 | 2.5 | % | ||||||||||||||
Consolidated Segment Income | 65.1 | 69.5 | (4.4 | ) | (6.3 | )% | 203.7 | 176.5 | 27.2 | 15.4 | % | |||||||||||||||||||
as a percent of revenues | 14.3 | % | 15.7 | % | -140 bps | 13.1 | % | 11.6 | % | 150 bps | ||||||||||||||||||||
Total segment income | $ | 65.1 | $ | 69.5 | $ | (4.4 | ) | $ | 203.7 | $ | 176.5 | $ | 27.2 | |||||||||||||||||
Corporate expense | 14.7 | 13.8 | 0.9 | 44.8 | 46.7 | (1.9 | ) | |||||||||||||||||||||||
Long-term incentive compensation expense | 3.8 | 3.5 | 0.3 | 14.0 | 13.6 | 0.4 | ||||||||||||||||||||||||
Impairment intangible assets | 0.7 | - | 0.7 | 0.7 | - | 0.7 | ||||||||||||||||||||||||
Special charges, net | 1.6 | 0.6 | 1.0 | 3.2 | 4.4 | (1.2 | ) | |||||||||||||||||||||||
Other operating expense | 9.4 | - | 9.4 | 9.0 | 1.8 | 7.2 | ||||||||||||||||||||||||
Consolidated operating income | $ | 34.9 | $ | 51.6 | $ | (16.7 | ) | (32.4 | )% | $ | 132.0 | $ | 110.0 | $ | 22.0 | 20.0 | % | |||||||||||||
as a percent of revenues | 7.6 | % | 11.6 | % | -400 bps | 8.5 | % | 7.2 | % | 130 bps | ||||||||||||||||||||
SPX CORPORATION AND SUBSIDIARIES | |||||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||
(Unaudited; in millions) | |||||||||||||||
Three months ended | Twelve months ended | ||||||||||||||
December 31, 2020 | December 31, 2019 | December 31, 2020 | December 31, 2019 | ||||||||||||
Cash flows from (used in) operating activities: | |||||||||||||||
Net income | $ | 24.6 | $ | 25.4 | $ | 97.2 | $ | 65.3 | |||||||
Less: Loss from discontinued operations, net of tax | (2.3 | ) | (3.7 | ) | (3.5 | ) | (5.8 | ) | |||||||
Income from continuing operations | 26.9 | 29.1 | 100.7 | 71.1 | |||||||||||
Adjustments to reconcile income from continuing operations to net cash from operating activities: | |||||||||||||||
Special charges, net | 1.6 | 0.6 | 3.2 | 4.4 | |||||||||||
Gain on change in fair value of equity security | (1.2 | ) | - | (8.6 | ) | (7.9 | ) | ||||||||
Impairment of intangible assets | 0.7 | - | 0.7 | - | |||||||||||
Loss on amendment/refinancing of senior credit agreement | - | 0.6 | - | 0.6 | |||||||||||
Deferred and other income taxes | (1.7 | ) | 6.6 | 11.3 | 15.2 | ||||||||||
Depreciation and amortization | 13.1 | 9.8 | 41.7 | 34.2 | |||||||||||
Pension and other employee benefits | 9.0 | 12.6 | 14.3 | 20.2 | |||||||||||
Long-term incentive compensation | 3.8 | 3.5 | 14.0 | 13.6 | |||||||||||
Other, net | 0.7 | 1.1 | 4.1 | 2.6 | |||||||||||
Changes in operating assets and liabilities, net of effects from acquisitions: | |||||||||||||||
Accounts receivable and other assets | (48.4 | ) | (19.2 | ) | 2.8 | 72.0 | |||||||||
Inventories | 22.8 | 10.0 | (2.2 | ) | (8.9 | ) | |||||||||
Accounts payable, accrued expenses and other | 44.6 | 26.2 | (48.1 | ) | (60.0 | ) | |||||||||
Cash spending on restructuring actions | (0.4 | ) | (0.9 | ) | (2.8 | ) | (2.9 | ) | |||||||
Net cash from continuing operations | 71.5 | 80.0 | 131.1 | 154.2 | |||||||||||
Net cash used in discontinued operations | (1.6 | ) | (1.2 | ) | (4.8 | ) | (5.6 | ) | |||||||
Net cash from operating activities | 69.9 | 78.8 | 126.3 | 148.6 | |||||||||||
Cash flows from (used in) investing activities: | |||||||||||||||
Proceeds (expenditures) related to company owned life insurance, net | (1.3 | ) | - | (0.2 | ) | 5.9 | |||||||||
Business acquisitions, net of cash acquired | (16.5 | ) | (59.9 | ) | (104.4 | ) | (147.1 | ) | |||||||
Capital expenditures | (6.5 | ) | (7.1 | ) | (21.5 | ) | (17.8 | ) | |||||||
Other | - | - | - | (0.2 | ) | ||||||||||
Net cash used in continuing operations | (24.3 | ) | (67.0 | ) | (126.1 | ) | (159.2 | ) | |||||||
Net cash from discontinued operations | - | - | - | 5.5 | |||||||||||
Net cash used in investing activities | (24.3 | ) | (67.0 | ) | (126.1 | ) | (153.7 | ) | |||||||
Cash flows from (used in) financing activities: | |||||||||||||||
Borrowings under senior credit facilities | 13.7 | 461.4 | 197.6 | 593.8 | |||||||||||
Repayments under senior credit facilities | (88.9 | ) | (432.6 | ) | (207.8 | ) | (560.2 | ) | |||||||
Borrowings under trade receivables agreement | 69.4 | 38.0 | 134.4 | 93.0 | |||||||||||
Repayments under trade receivables agreement | (46.0 | ) | (52.0 | ) | (106.4 | ) | (116.0 | ) | |||||||
Net repayments under other financing arrangements | (0.4 | ) | (4.3 | ) | (2.2 | ) | (0.6 | ) | |||||||
Payment of contingent consideration | - | - | (1.5 | ) | - | ||||||||||
Minimum withholdings paid on behalf of employees for net share settlements, net of proceeds from the exercise of employee stock options and other | 3.6 | 0.3 | 1.8 | (3.9 | ) | ||||||||||
Financing fees paid | - | (1.6 | ) | - | (1.6 | ) | |||||||||
Purchase of subsidiary shares | - | (15.6 | ) | - | (15.6 | ) | |||||||||
Net cash from (used in) continuing operations | (48.6 | ) | (6.4 | ) | 15.9 | (11.1 | ) | ||||||||
Net cash from (used in) discontinued operations | - | - | - | - | |||||||||||
Net cash from (used in) financing activities | (48.6 | ) | (6.4 | ) | 15.9 | (11.1 | ) | ||||||||
Change in cash and equivalents due to changes in foreign currency exchange rates | 0.6 | - | (2.5 | ) | 2.1 | ||||||||||
Net change in cash and equivalents | (2.4 | ) | 5.4 | 13.6 | (14.1 | ) | |||||||||
Consolidated cash and equivalents, beginning of period | 70.7 | 49.3 | 54.7 | 68.8 | |||||||||||
Consolidated cash and equivalents, end of period | $ | 68.3 | $ | 54.7 | $ | 68.3 | $ | 54.7 | |||||||
SPX CORPORATION AND SUBSIDIARIES | |||||||||||||||||
CASH AND DEBT RECONCILIATION | |||||||||||||||||
(Unaudited; in millions) | |||||||||||||||||
Twelve months ended | |||||||||||||||||
December 31, 2020 | |||||||||||||||||
Beginning cash and equivalents | $ | 54.7 | |||||||||||||||
Cash from continuing operations | 131.1 | ||||||||||||||||
Capital expenditures | (21.5 | ) | |||||||||||||||
Expenditures related to company-owned life insurance policies, net | (0.2 | ) | |||||||||||||||
Business acquisitions, net of cash acquired | (104.4 | ) | |||||||||||||||
Borrowings under senior credit facilities | 197.6 | ||||||||||||||||
Repayments under senior credit facilities | (207.8 | ) | |||||||||||||||
Borrowings under trade receivables agreement | 134.4 | ||||||||||||||||
Repayments under trade receivables agreement | (106.4 | ) | |||||||||||||||
Net repayments under other financing arrangements | (2.2 | ) | |||||||||||||||
Net proceeds from the exercise of employee stock options, net of minimum withholdings paid on behalf of employees for net share settlements | 1.8 | ||||||||||||||||
Payment of contingent consideration | (1.5 | ) | |||||||||||||||
Cash used in discontinued operations | (4.8 | ) | |||||||||||||||
Change in cash due to changes in foreign currency exchange rates | (2.5 | ) | |||||||||||||||
Ending cash and equivalents | $ | 68.3 | |||||||||||||||
Debt at | Debt at | ||||||||||||||||
December 31, 2019 | Borrowings | Repayments | Other | December 31, 2020 | |||||||||||||
Revolving loans | $ | 140.0 | $ | 197.6 | $ | (207.8 | ) | $ | - | $ | 129.8 | ||||||
Term loan | 250.0 | - | - | - | 250.0 | ||||||||||||
Trade receivables financing arrangement | - | 134.4 | (106.4 | ) | - | 28.0 | |||||||||||
Other indebtedness | 5.3 | - | (2.2 | ) | 2.9 | 6.0 | |||||||||||
Less: Deferred financing costs associated with the term loan | (1.8 | ) | - | - | 0.4 | (1.4 | ) | ||||||||||
Totals | $ | 393.5 | $ | 332.0 | $ | (316.4 | ) | $ | 3.3 | $ | 412.4 | ||||||
SPX CORPORATION AND SUBSIDIARIES | |||||||||
NON-GAAP RECONCILIATION - ORGANIC REVENUE | |||||||||
HVAC, DETECTION & MEASUREMENT & ENGINEERED SOLUTIONS REPORTABLE SEGMENTS | |||||||||
(Unaudited) | |||||||||
Three months ended December 31, 2020 | |||||||||
HVAC | Detection & Measurement | Engineered Solutions | |||||||
Net Revenue Growth (Decline) | (4.4 | )% | 17.5 | % | 1.3 | % | |||
Exclude: Foreign Currency | 0.5 | % | 1.0 | % | - | % | |||
Exclude: Acquisitions | 3.0 | % | 13.9 | % | - | % | |||
Organic Revenue Growth (Decline) | (7.9) | % | 2.6 | % | 1.3 | % | |||
SPX CORPORATION AND SUBSIDIARIES | ||||||||||||||||
NON-GAAP RECONCILIATION - REVENUE AND SEGMENT INCOME | ||||||||||||||||
(Unaudited; in millions) | ||||||||||||||||
CONSOLIDATED SPX: | Three months ended | Twelve months ended | ||||||||||||||
December 31, 2020 | December 31, 2019 | December 31, 2020 | December 31, 2019 | |||||||||||||
Consolidated revenue | $ | 456.8 | $ | 443.4 | $ | 1,559.5 | $ | 1,520.9 | ||||||||
Exclude: "Other" operating segment (1) | 0.7 | (1.7 | ) | 4.0 | (6.1 | ) | ||||||||||
Adjusted consolidated revenue | $ | 456.1 | $ | 445.1 | $ | 1,555.5 | $ | 1,527.0 | ||||||||
Total segment income | $ | 65.1 | $ | 69.5 | $ | 203.7 | $ | 176.5 | ||||||||
Exclude: "Other" operating segment (1) | (5.3 | ) | (7.2 | ) | (19.3 | ) | (43.6 | ) | ||||||||
Exclude: One-time acquisition related costs (2) | (1.2 | ) | 0.2 | (1.3 | ) | (2.0 | ) | |||||||||
Exclude: Amortization expense (3) | (5.7 | ) | (2.9 | ) | (14.0 | ) | (8.9 | ) | ||||||||
Adjusted segment income | $ | 77.3 | $ | 79.4 | $ | 238.3 | $ | 231.0 | ||||||||
as a percent of adjusted revenues (4) | 16.9 | % | 17.8 | % | 15.3 | % | 15.1 | % | ||||||||
HVAC REPORTABLE SEGMENT: | Three months ended | Twelve months ended | ||||||||||||||
December 31, 2020 | December 31, 2019 | December 31, 2020 | December 31, 2019 | |||||||||||||
HVAC segment income | $ | 33.9 | $ | 38.1 | $ | 93.4 | $ | 95.4 | ||||||||
Exclude: One-time acquisition related costs (2) | (0.5 | ) | - | (0.6 | ) | - | ||||||||||
Exclude: Amortization expense (3) | (0.7 | ) | (1.1 | ) | (2.9 | ) | (1.4 | ) | ||||||||
HVAC adjusted segment income | $ | 35.1 | $ | 39.2 | $ | 96.9 | $ | 96.8 | ||||||||
as a percent of HVAC segment revenues (4) | 18.9 | % | 20.2 | % | 16.4 | % | 16.3 | % | ||||||||
DETECTION & MEASUREMENT REPORTABLE SEGMENT: | Three months ended | Twelve months ended | ||||||||||||||
December 31, 2020 | December 31, 2019 | December 31, 2020 | December 31, 2019 | |||||||||||||
Detection & Measurement segment income | $ | 20.7 | $ | 22.5 | $ | 69.1 | $ | 81.7 | ||||||||
Exclude: One-time acquisition related costs (2) | (0.7 | ) | 0.2 | (0.7 | ) | (2.0 | ) | |||||||||
Exclude: Amortization expense (3) | (5.0 | ) | (1.8 | ) | (11.1 | ) | (7.5 | ) | ||||||||
Detection & Measurement adjusted segment income | $ | 26.4 | $ | 24.1 | $ | 80.9 | $ | 91.2 | ||||||||
as a percent of Detection & Measurement segment revenues (4) | 22.4 | % | 24.0 | % | 20.9 | % | 23.7 | % | ||||||||
(1) Represents the removal of the financial results of our South Africa business. Note: This business is being reported as an "Other" operating segment for U.S. GAAP purposes due to certain wind-down activities that are occurring within this business. | ||||||||||||||||
(2) Primarily represents one-time acquisition costs related to the HVAC and Detection & Measurement reportable segments during the three and twelve months ended December 31, 2020 and additional "Cost of products sold" recorded during the three and twelve months ended December 31, 2020 related to the step-up of inventory (to fair value) acquired in connection with the Sensors & Software acquisition and the three and twelve months ended December 31, 2019 related to the step-up of inventory (to fair value) acquired in connection with the Sabik and Cues acquisitions. | ||||||||||||||||
(3) Represents amortization expense associated with acquired intangible assets. | ||||||||||||||||
(4) See "Results of Reportable Segments and Other Operating Segment" for applicable percentages based on GAAP results. | ||||||||||||||||
SPX CORPORATION AND SUBSIDIARIES | ||||||||||||||||
NON-GAAP RECONCILIATION - OPERATING INCOME | ||||||||||||||||
(Unaudited; in millions) | ||||||||||||||||
Three months ended | Twelve months ended | |||||||||||||||
December 31, 2020 | December 31, 2019 | December 31, 2020 | December 31, 2019 | |||||||||||||
Operating income | $ | 34.9 | $ | 51.6 | $ | 132.0 | $ | 110.0 | ||||||||
Exclude: | ||||||||||||||||
Aggregate operating loss of the South Africa business (1) | (5.9 | ) | (7.7 | ) | (20.1 | ) | (46.8 | ) | ||||||||
One-time acquisition related costs (2) | (2.0 | ) | (0.4 | ) | (3.0 | ) | (4.8 | ) | ||||||||
Other operating income/expense (3) | - | - | 0.4 | (1.8 | ) | |||||||||||
Amortization expense (4) | (5.7 | ) | (2.9 | ) | (14.0 | ) | (8.9 | ) | ||||||||
Impairment of intangible assets | (0.7 | ) | - | (0.7 | ) | - | ||||||||||
Adjusted operating income | $ | 49.2 | $ | 62.6 | $ | 169.4 | $ | 172.3 | ||||||||
as a percent of adjusted revenues (5) | 10.8 | % | 14.1 | % | 10.9 | % | 11.3 | % | ||||||||
(1) Represents the removal of the operating results of our South Africa business, inclusive of "special charges" of | ||||||||||||||||
(2) Represents one-time acquisition related costs during the three months ended December 31, 2020 and December 31, 2019 associated with (i) inventory step-up of | ||||||||||||||||
(3) Represents income/expense associated with revisions to estimates of certain liabilities retained in connection with the 2016 sale of the dry cooling business for the twelve months ended December 31, 2020 and 2019. | ||||||||||||||||
(4) Represents amortization expense associated with acquired intangible assets. | ||||||||||||||||
(5) See "Results of Reportable Segments and Other Operating Segment" for applicable percentages based on GAAP results. | ||||||||||||||||
SPX CORPORATION AND SUBSIDIARIES | |||||||||||
NON-GAAP RECONCILIATION - EARNINGS PER SHARE | |||||||||||
Three Months Ended December 31, 2020 | |||||||||||
(Unaudited; in millions, except per share values) | |||||||||||
GAAP | Adjustments | Adjusted | |||||||||
Segment income (1) | $ | 65.1 | $ | 12.2 | $ | 77.3 | |||||
Corporate expense (2) | (14.7 | ) | 0.8 | (13.9 | ) | ||||||
Long-term incentive compensation expense | (3.8 | ) | - | (3.8 | ) | ||||||
Impairment of intangible assets (3) | (0.7 | ) | 0.7 | - | |||||||
Special charges, net (4) | (1.6 | ) | 0.6 | (1.0 | ) | ||||||
Other operating expense | (9.4 | ) | - | (9.4 | ) | ||||||
Operating income | 34.9 | 14.3 | 49.2 | ||||||||
Other expense, net (5) | (6.7 | ) | 3.9 | (2.8 | ) | ||||||
Interest expense, net | (4.4 | ) | - | (4.4 | ) | ||||||
Income from continuing operations before income taxes | 23.8 | 18.2 | 42.0 | ||||||||
Income tax (provision) benefit (6) | 3.1 | (3.8 | ) | (0.7 | ) | ||||||
Income from continuing operations | 26.9 | 14.4 | 41.3 | ||||||||
Dilutive shares outstanding | 46.151 | 46.151 | |||||||||
Earnings per share from continuing operations | $ | 0.58 | $ | 0.89 | |||||||
(1) Adjustment represents the removal of (i) operating losses associated with the South Africa business ( | |||||||||||
(2) Adjustment represents the removal of acquisition related expenses incurred during the period. | |||||||||||
(3) Adjustment represents removal of non-cash charges related to the impairment of certain intangible assets. | |||||||||||
(4) Adjustment represents removal of restructuring charges associated with the South Africa business. | |||||||||||
(5)Adjustment primarily represents the removal of non-service pension and postretirement charges ( | |||||||||||
(6) Adjustment primarily represents the tax impact of items (1) through (5) above. | |||||||||||
SPX CORPORATION AND SUBSIDIARIES | |||||||||||
NON-GAAP RECONCILIATION - EARNINGS PER SHARE | |||||||||||
Twelve Months Ended December 31, 2020 | |||||||||||
(Unaudited; in millions, except per share values) | |||||||||||
GAAP | Adjustments | Adjusted | |||||||||
Segment income (1) | $ | 203.7 | $ | 34.6 | $ | 238.3 | |||||
Corporate expense (2) | (44.8 | ) | 1.7 | (43.1 | ) | ||||||
Long-term incentive compensation expense | (14.0 | ) | - | (14.0 | ) | ||||||
Impairment of intangible assets (3) | (0.7 | ) | 0.7 | - | |||||||
Special charges (4) | (3.2 | ) | 0.8 | (2.4 | ) | ||||||
Other operating expenses (5) | (9.0 | ) | (0.4 | ) | (9.4 | ) | |||||
Operating income | 132.0 | 37.4 | 169.4 | ||||||||
Other income, net (6) | 2.7 | (2.7 | ) | - | |||||||
Interest expense, net | (18.2 | ) | - | (18.2 | ) | ||||||
Income from continuing operations before income taxes | 116.5 | 34.7 | 151.2 | ||||||||
Income tax provision (7) | (15.8 | ) | (7.4 | ) | (23.2 | ) | |||||
Income from continuing operations | 100.7 | 27.3 | 128.0 | ||||||||
Dilutive shares outstanding | 45.766 | 45.766 | |||||||||
Earnings per share from continuing operations | $ | 2.20 | $ | 2.80 | |||||||
(1) Adjustment represents the removal of (i) operating losses associated with the South Africa business ( | |||||||||||
(2) Adjustment represents the removal of acquisition related expenses incurred during the period. | |||||||||||
(3) Adjustment represents removal of non-cash charges related to the impairment of certain intangible assets. | |||||||||||
(4) Adjustment primarily represents removal of restructuring charges associated with the South Africa business. | |||||||||||
(5) Adjustment represents the removal of income associated with revisions to estimates of certain liabilities retained in connection with the 2016 sale of the dry cooling business. | |||||||||||
(6) Adjustment primarily represents the removal of non-service pension and postretirement charges ( | |||||||||||
(7) Adjustment primarily represents the tax impact of items (1) through (6) above. | |||||||||||
SPX CORPORATION AND SUBSIDIARIES | |||||||||||
NON-GAAP RECONCILIATION - EARNINGS PER SHARE | |||||||||||
Three Months Ended December 31, 2019 | |||||||||||
(Unaudited; in millions, except per share values) | |||||||||||
GAAP | Adjustments | Adjusted | |||||||||
Segment income (1) | $ | 69.5 | $ | 9.9 | $ | 79.4 | |||||
Corporate expense (2) | (13.8 | ) | 0.6 | (13.2 | ) | ||||||
Long-term incentive compensation expense | (3.5 | ) | - | (3.5 | ) | ||||||
Special charges, net (3) | (0.6 | ) | 0.5 | (0.1 | ) | ||||||
Operating income | 51.6 | 11.0 | 62.6 | ||||||||
Other expense, net (4) | (15.0 | ) | 11.2 | (3.8 | ) | ||||||
Interest expense, net (5) | (4.9 | ) | (0.1 | ) | (5.0 | ) | |||||
Loss on amendment/refinancing of senior credit agreement (6) | (0.6 | ) | 0.6 | - | |||||||
Income from continuing operations before income taxes | 31.1 | 22.7 | 53.8 | ||||||||
Income tax provision (7) | (2.0 | ) | (8.3 | ) | (10.3 | ) | |||||
Income from continuing operations | 29.1 | 14.4 | 43.5 | ||||||||
Less: Net loss attributable to redeemable noncontrolling interest | - | - | - | ||||||||
Net income from continuing operations attributable to SPX Corporation common shareholders | 29.1 | 14.4 | 43.5 | ||||||||
Adjustment related to redeemable noncontrolling interest (8) | 5.6 | (5.6 | ) | - | |||||||
Net income from continuing operations attributable to SPX Corporation common shareholders after adjustment to redeemable noncontrolling interest | $ | 34.7 | $ | 8.8 | $ | 43.5 | |||||
Dilutive shares outstanding | 45.491 | 45.491 | |||||||||
Earnings per share from continuing operations | $ | 0.76 | $ | 0.96 | |||||||
(1) Adjustment primarily represents the removal of (i) operating losses associated with the South Africa business ( | |||||||||||
(2) Adjustment represents the removal of acquisition related expenses incurred during the period. | |||||||||||
(3) Adjustment represents removal of restructuring charges associated with the South Africa business. | |||||||||||
(4) Adjustment represents the removal of non-service pension and postretirement charges ( | |||||||||||
(5) Represents removal of interest income associated with the South Africa business. | |||||||||||
(6) Adjustment represents the removal of a non-cash charge associated with an amendment to our senior credit agreement. | |||||||||||
(7) Adjustment represents the tax impact of items (1) through (6) above and the removal of certain income tax benefits that are considered non-recurring. | |||||||||||
(8) Adjustment represents removal of noncontrolling interest amounts associated with our South Africa subsidiary. | |||||||||||
SPX CORPORATION AND SUBSIDIARIES | |||||||||||
NON-GAAP RECONCILIATION - EARNINGS PER SHARE | |||||||||||
Twelve Months Ended December 31, 2019 | |||||||||||
(Unaudited; in millions, except per share values) | |||||||||||
GAAP | Adjustments | Adjusted | |||||||||
Segment income (1) | $ | 176.5 | $ | 54.5 | $ | 231.0 | |||||
Corporate expense (2) | (46.7 | ) | 2.6 | (44.1 | ) | ||||||
Long-term incentive compensation expense | (13.6 | ) | - | (13.6 | ) | ||||||
Special charges, net (3) | (4.4 | ) | 3.4 | (1.0 | ) | ||||||
Other operating expenses (4) | (1.8 | ) | 1.8 | - | |||||||
Operating income | 110.0 | 62.3 | 172.3 | ||||||||
Other income (expense), net (5) | (5.2 | ) | 6.7 | 1.5 | |||||||
Interest expense, net (6) | (19.2 | ) | (0.1 | ) | (19.3 | ) | |||||
Loss on amendment/refinancing of senior credit agreement (7) | (0.6 | ) | 0.6 | - | |||||||
Income from continuing operations before income taxes | 85.0 | 69.5 | 154.5 | ||||||||
Income tax provision (8) | (13.9 | ) | (16.5 | ) | (30.4 | ) | |||||
Income from continuing operations | 71.1 | 53.0 | 124.1 | ||||||||
Less: Net loss attributable to redeemable noncontrolling interest | - | - | - | ||||||||
Net income from continuing operations attributable to SPX Corporation common shareholders | 71.1 | 53.0 | 124.1 | ||||||||
Adjustment related to redeemable noncontrolling interest (9) | 5.6 | (5.6 | ) | - | |||||||
Net income from continuing operations attributable to SPX Corporation common shareholders after adjustment to redeemable noncontrolling interest | $ | 76.7 | $ | 47.4 | $ | 124.1 | |||||
Dilutive shares outstanding | 44.957 | 44.957 | |||||||||
Earnings per share from continuing operations | $ | 1.71 | $ | 2.76 | |||||||
(1) Adjustment represents the removal of (i) operating losses associated with the South Africa businesses ( | |||||||||||
(2) Adjustment represents the removal of acquisition related expenses incurred during the period. | |||||||||||
(3) Adjustment primarily represents removal of restructuring charges associated with the South Africa business. | |||||||||||
(4) Adjustment represents removal of charges associated with revisions to estimates of certain liabilities retained in connection with the 2016 sale of the dry cooling business. | |||||||||||
(5) Adjustment primarily represents the removal of non-service pension and postretirement charges ( | |||||||||||
(6) Represents removal of interest income associated with the South Africa business. | |||||||||||
(7) Adjustment represents the removal of a non-cash charge associated with an amendment to our senior credit agreement. | |||||||||||
(8) Adjustment represents the tax impact of items (1) through (7) above and the removal of certain income tax benefits that are considered non-recurring. | |||||||||||
(9) Adjustment represents removal of non-controlling interest amounts associated with our South Africa business. | |||||||||||
FAQ
What were SPXC's Q4 2020 earnings results?
How did SPXC perform financially in 2020?
What is SPXC's guidance for 2021 adjusted EPS?
Which segments showed revenue decline for SPXC in Q4 2020?