SPX Reports Fourth Quarter and Full-Year 2021 Results
SPX Corporation (NYSE:SPXC) reported Q4 and full-year results for 2021, with Q4 GAAP EPS at $0.10 and adjusted EPS at $0.88. Full-year GAAP EPS was $1.27 with adjusted EPS of $2.33. Revenue for Q4 was $350.0 million, slightly up from $348.3 million, while full-year revenue reached $1,219.5 million, up from $1,128.1 million in 2020. The company anticipates 2022 adjusted EPS between $2.50-$2.80, driven by strong demand despite supply chain challenges. Notably, SPX closed the sale of Transformer Solutions and completed three strategic acquisitions during 2021.
- Full-year revenue increased to $1,219.5 million from $1,128.1 million in 2020.
- Adjusted EPS for 2021 rose to $2.33 from $2.12 in 2020.
- Successful completion of the sale of Transformer Solutions, enabling focus on high-margin segments.
- Three strategic acquisitions completed to enhance growth opportunities.
- Q4 adjusted EPS decreased to $0.88 from $0.94 in Q4 2020.
- Q4 HVAC revenue dropped 8.0% year-over-year, reflecting lower heating product volumes.
- Increased non-operating charges related to asbestos product liability in Q4 and full-year results.
Q4 and Full-Year GAAP EPS of
Q4 and Full-Year Adjusted EPS* of
Introducing 2022 Full-Year Adjusted EPS* Guidance Range of
CHARLOTTE, N.C., Feb. 23, 2022 (GLOBE NEWSWIRE) -- SPX Corporation (NYSE:SPXC) today reported results for the fourth quarter and year ended December 31, 2021. As a result of the completion of wind-down activities in South Africa, in the fourth quarter the company began reporting the results of its South African operations as a discontinued operation for all periods presented, and has eliminated the Other segment from its reporting structure.
Gene Lowe, President and CEO, remarked, “SPX closed 2021 with solid performance, reflecting strong demand in our end markets, offset by continued supply constraints. We generated robust cash flow and ended the year with a very strong balance sheet.
“Overall, 2021 was an exciting year for SPX, with several significant accomplishments. The sale of Transformer Solutions simplified and strengthened our portfolio, allowing us to focus on our higher margin, higher growth HVAC and Detection & Measurement segments. We continued to execute on our value creation roadmap, closing on three strategic acquisitions that expand our long-term growth opportunities. We also advanced our digital and continuous improvement initiatives, and furthered progressed in our ESG and Diversity & Inclusion journeys.”
Mr. Lowe further commented, “Looking ahead to 2022, end market demand remains strong for our highly-engineered products, as evidenced by robust orders and backlog. While we expect the challenging supply chain and labor environment to persist into the first half of 2022, we anticipate solid full year-on-year growth and remain confident in the strength of our platforms. With significant investment capacity to pursue strategic organic and inorganic growth opportunities, a talented, experienced team, and a simplified, higher-return portfolio, we remain excited about the future and are on track to achieve our ‘SPX 2025’ plan.”
Fourth Quarter 2021 Overview:
For the fourth quarter of 2021, the Company reported revenue of
Adjusted operating income* was
Full Year 2021 Overview:
For the full year of 2021, the Company reported revenue of
Adjusted operating income* in 2021 was
Fourth Quarter and Full-Year Financial Comparisons: GAAP Results: | ||||
($ millions) | Q4 2021 | Q4 2020 | FY 2021 | FY 2020 |
Revenue | ||||
Operating Income | 13.9 | 29.1 | 73.7 | 96.9 |
Segment Income | 61.4 | 58.5 | 173.9 | 171.8 |
Adjusted Results: | ||||
($ millions) | Q4 2021 | Q4 2020 | FY 2021 | FY 2020 |
Revenue | ||||
Adjusted Operating Income* | 48.4 | 47.4 | 135.1 | 125.1 |
Adjusted Segment Income* | 67.3 | 65.4 | 200.6 | 187.1 |
*Non-GAAP financial measure. See attached schedules for reconciliation to most comparable GAAP financial measure.
HVAC
Revenue for the fourth quarter of 2021 was
Segment income in the fourth quarter of 2021 was
For the full year of 2021, revenue was
For the full year of 2021, segment income was
Detection & Measurement
Revenue for the fourth quarter of 2021 was
Segment income for the fourth quarter of 2021 was
For the full year of 2021, revenue was
For the full year of 2021 segment income was
Financial Update: As of December 31, 2021, SPX had total outstanding debt of
2022 Guidance Update:
SPX is targeting adjusted consolidated revenue of approximately
Segment and company performance is expected to be as follows:
Revenue | Segment Income Margin % | |
HVAC | ( | ( |
Detection & Measurement | ( | ( |
Total SPX Adjusted | ( | ( |
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-K: The company expects to file its annual report on Form 10-K for the year ended December 31, 2021 with the Securities and Exchange Commission on or before March 1, 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 fourth 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: 2176750
A replay of the call will be available by telephone through Wednesday, March 2, 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: 2176750
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 Sidoti Spring Small Cap Conference on March 23rd.
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 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 fourth quarter, the impact of foreign exchange rate changes subsequent to the end of the fourth 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; 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; 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.
SOURCE SPX Corporation.
Investor and Media Contacts:
Paul Clegg, VP, Investor Relations and Communications
Phone: 980-474-3806
E-mail: spx.investor@spx.com
Nick Illuminati, Manager, Investor Relations
Phone: 980-474-3806
E-mail: spx.investor@spx.com
Source: SPX Corporation
SPX CORPORATION AND SUBSIDIARIES | |||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
(Unaudited; in millions, except per share amounts) | |||||||||||||||
Three months ended | Twelve months ended | ||||||||||||||
December 31, 2021 | December 31, 2020 | December 31, 2021 | December 31, 2020 | ||||||||||||
Revenues | $ | 350.0 | $ | 348.3 | $ | 1,219.5 | $ | 1,128.1 | |||||||
Costs and expenses: | |||||||||||||||
Cost of products sold | 220.7 | 224.8 | 787.7 | 732.6 | |||||||||||
Selling, general and administrative | 86.3 | 77.6 | 309.6 | 272.5 | |||||||||||
Intangible amortization | 5.6 | 5.7 | 21.6 | 14.0 | |||||||||||
Impairment of intangible assets | 5.7 | 0.7 | 5.7 | 0.7 | |||||||||||
Special charges, net | 0.3 | 1.0 | 1.0 | 2.4 | |||||||||||
Other operating expenses, net | 17.5 | 9.4 | 20.2 | 9.0 | |||||||||||
Operating income | 13.9 | 29.1 | 73.7 | 96.9 | |||||||||||
Other income (expense), net | (8.6 | ) | (8.7 | ) | 9.0 | (0.1 | ) | ||||||||
Interest expense | (2.2 | ) | (4.4 | ) | (13.3 | ) | (18.4 | ) | |||||||
Interest income | 0.3 | - | 0.5 | 0.2 | |||||||||||
Income from continuing operations before income taxes | 3.4 | 16.0 | 69.9 | 78.6 | |||||||||||
Income tax (provision) benefit | 1.0 | 4.5 | (10.9 | ) | (4.8 | ) | |||||||||
Income from continuing operations | 4.4 | 20.5 | 59.0 | 73.8 | |||||||||||
Income (loss) from discontinued operations, net of tax | (3.7 | ) | 7.8 | 5.7 | 28.9 | ||||||||||
Gain (loss) on disposition of discontinued operations, net of tax | 5.7 | (2.5 | ) | 360.7 | (3.7 | ) | |||||||||
Income from discontinued operations, net of tax | 2.0 | 5.3 | 366.4 | 25.2 | |||||||||||
Net income | $ | 6.4 | $ | 25.8 | $ | 425.4 | $ | 99.0 | |||||||
Basic income per share of common stock: | |||||||||||||||
Income from continuing operations | $ | 0.10 | $ | 0.46 | $ | 1.30 | $ | 1.65 | |||||||
Income from discontinued operations | 0.04 | 0.11 | 8.09 | 0.57 | |||||||||||
Net income per share | $ | 0.14 | $ | 0.57 | $ | 9.39 | $ | 2.22 | |||||||
Weighted-average number of common shares outstanding — basic | 45.427 | 44.894 | 45.289 | 44.628 | |||||||||||
Diluted income per share of common stock: | |||||||||||||||
Income from continuing operations | $ | 0.10 | $ | 0.44 | $ | 1.27 | $ | 1.61 | |||||||
Income from discontinued operations | 0.04 | 0.12 | 7.88 | 0.55 | |||||||||||
Net income per share | $ | 0.14 | $ | 0.56 | $ | 9.15 | $ | 2.16 | |||||||
Weighted-average number of common shares outstanding — diluted | 46.705 | 46.151 | 46.495 | 45.766 | |||||||||||
SPX CORPORATION AND SUBSIDIARIES | |||||||
CONSOLIDATED BALANCE SHEETS | |||||||
(Unaudited; in millions) | |||||||
December 31, 2021 | December 31, 2020 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and equivalents | $ | 388.2 | $ | 64.0 | |||
Accounts receivable, net | 223.4 | 210.8 | |||||
Contract assets | 28.9 | 32.5 | |||||
Inventories, net | 189.8 | 155.0 | |||||
Other current assets (includes income taxes receivable of | 73.1 | 88.4 | |||||
Assets of discontinued operations | - | 124.4 | |||||
Total current assets | 903.4 | 675.1 | |||||
Property, plant and equipment: | |||||||
Land | 13.9 | 12.9 | |||||
Buildings and leasehold improvements | 62.9 | 59.2 | |||||
Machinery and equipment | 231.4 | 208.3 | |||||
308.2 | 280.4 | ||||||
Accumulated depreciation | (194.9 | ) | (173.6 | ) | |||
Property, plant and equipment, net | 113.3 | 106.8 | |||||
Goodwill | 457.3 | 368.6 | |||||
Intangibles, net | 415.5 | 305.0 | |||||
Other assets | 675.9 | 591.7 | |||||
Deferred income taxes | 11.0 | 23.9 | |||||
Assets of discontinued operations | - | 219.1 | |||||
Assets of DBT and Heat Transfer (includes cash and equivalents of | 52.2 | 43.5 | |||||
TOTAL ASSETS | $ | 2,628.6 | $ | 2,333.7 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 119.6 | $ | 102.1 | |||
Contract liabilities | 44.7 | 38.8 | |||||
Accrued expenses | 217.9 | 206.6 | |||||
Income taxes payable | 42.1 | 0.4 | |||||
Short-term debt | 2.2 | 101.2 | |||||
Current maturities of long-term debt | 13.0 | 7.2 | |||||
Liabilities of discontinued operations | - | 115.8 | |||||
Total current liabilities | 439.5 | 572.1 | |||||
Long-term debt | 230.8 | 304.0 | |||||
Deferred and other income taxes | 31.3 | 26.6 | |||||
Other long-term liabilities | 788.5 | 741.4 | |||||
Liabilities of discontinued operations | - | 31.4 | |||||
Liabilities of DBT and Heat Transfer | 35.6 | 18.1 | |||||
Total long-term liabilities | 1,086.2 | 1,121.5 | |||||
Stockholders' Equity: | |||||||
Common stock | 0.5 | 0.5 | |||||
Paid-in capital | 1,334.2 | 1,319.9 | |||||
Retained deficit | (51.8 | ) | (477.2 | ) | |||
Accumulated other comprehensive income | 263.9 | 248.5 | |||||
Common stock in treasury | (443.9 | ) | (451.6 | ) | |||
Total stockholders' equity | 1,102.9 | 640.1 | |||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 2,628.6 | $ | 2,333.7 | |||
SPX CORPORATION AND SUBSIDIARIES | |||||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||
(Unaudited; in millions) | |||||||||||||||
Three months ended | Twelve months ended | ||||||||||||||
December 31, 2021 | December 31, 2020 | December 31, 2021 | December 31, 2020 | ||||||||||||
Cash flows from (used in) operating activities: | |||||||||||||||
Net income | $ | 6.4 | $ | 25.8 | $ | 425.4 | $ | 99.0 | |||||||
Less: Income from discontinued operations, net of tax | 2.0 | 5.3 | 366.4 | 25.2 | |||||||||||
Income from continuing operations | 4.4 | 20.5 | 59.0 | 73.8 | |||||||||||
Adjustments to reconcile income from continuing operations to net cash from operating activities: | |||||||||||||||
Special charges, net | 0.3 | 1.0 | 1.0 | 2.4 | |||||||||||
Gain on change in fair value of equity security | (2.8 | ) | (1.2 | ) | (11.8 | ) | (8.6 | ) | |||||||
Impairment of intangible assets | 5.7 | 0.7 | 5.7 | 0.7 | |||||||||||
Deferred and other income taxes | (3.3 | ) | (12.7 | ) | (1.4 | ) | 0.3 | ||||||||
Depreciation and amortization | 10.4 | 10.6 | 42.3 | 31.9 | |||||||||||
Pension and other employee benefits | (9.6 | ) | 8.1 | (8.6 | ) | 10.7 | |||||||||
Long-term incentive compensation | 3.4 | 3.6 | 12.8 | 13.1 | |||||||||||
Other, net | 0.7 | 1.7 | 4.3 | 5.0 | |||||||||||
Changes in operating assets and liabilities, net of effects from acquisitions: | |||||||||||||||
Accounts receivable and other assets | (94.7 | ) | (27.9 | ) | (19.8 | ) | 33.5 | ||||||||
Inventories | 0.6 | 24.8 | (21.0 | ) | - | ||||||||||
Accounts payable, accrued expenses and other | 120.6 | 41.5 | 70.3 | (56.1 | ) | ||||||||||
Cash spending on restructuring actions | (0.1 | ) | (0.5 | ) | (1.6 | ) | (1.5 | ) | |||||||
Net cash from continuing operations | 35.6 | 70.2 | 131.2 | 105.2 | |||||||||||
Net cash from (used in) discontinued operations | (14.8 | ) | (0.3 | ) | 43.4 | 21.1 | |||||||||
Net cash from operating activities | 20.8 | 69.9 | 174.6 | 126.3 | |||||||||||
Cash flows from (used in) investing activities: | |||||||||||||||
Expenditures related to company owned life insurance, net | (39.4 | ) | (1.3 | ) | (31.2 | ) | (0.2 | ) | |||||||
Business acquisitions, net of cash acquired | (145.2 | ) | (16.5 | ) | (265.2 | ) | (104.4 | ) | |||||||
Capital expenditures | (2.1 | ) | (2.8 | ) | (9.6 | ) | (15.3 | ) | |||||||
Net cash used in continuing operations | (186.7 | ) | (20.6 | ) | (306.0 | ) | (119.9 | ) | |||||||
Net cash from (used in) discontinued operations | 2.2 | (3.7 | ) | 620.1 | (6.2 | ) | |||||||||
Net cash from (used in) investing activities | (184.5 | ) | (24.3 | ) | 314.1 | (126.1 | ) | ||||||||
Cash flows from (used in) financing activities: | |||||||||||||||
Borrowings under senior credit facilities | 0.8 | 13.7 | 209.9 | 197.6 | |||||||||||
Repayments under senior credit facilities | (2.4 | ) | (88.9 | ) | (346.0 | ) | (207.8 | ) | |||||||
Borrowings under trade receivables agreement | - | 69.4 | 179.0 | 134.4 | |||||||||||
Repayments under trade receivables agreement | - | (46.0 | ) | (207.0 | ) | (106.4 | ) | ||||||||
Net repayments under other financing arrangements | (0.1 | ) | (0.4 | ) | (0.4 | ) | (2.2 | ) | |||||||
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 | 0.4 | 3.6 | (3.3 | ) | 2.2 | ||||||||||
Net cash from (used in) continuing operations | (1.3 | ) | (48.6 | ) | (167.8 | ) | 16.3 | ||||||||
Net cash from (used in) discontinued operations | 0.5 | - | 0.2 | (0.4 | ) | ||||||||||
Net cash from (used in) financing activities | (0.8 | ) | (48.6 | ) | (167.6 | ) | 15.9 | ||||||||
Change in cash and equivalents due to changes in foreign currency exchange rates | 0.4 | 0.6 | 6.6 | (2.5 | ) | ||||||||||
Net change in cash and equivalents | (164.1 | ) | (2.4 | ) | 327.7 | 13.6 | |||||||||
Consolidated cash and equivalents, beginning of period | 560.1 | 70.7 | 68.3 | 54.7 | |||||||||||
Consolidated cash and equivalents, end of period | $ | 396.0 | $ | 68.3 | $ | 396.0 | $ | 68.3 | |||||||
SPX CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||||
RESULTS OF REPORTABLE SEGMENTS | ||||||||||||||||||||||||
(Unaudited; in millions) | ||||||||||||||||||||||||
Three months ended | Twelve months ended | |||||||||||||||||||||||
December 31, 2021 | December 31, 2020 | Δ | %/bps | December 31, 2021 | December 31, 2020 | Δ | %/bps | |||||||||||||||||
HVAC reportable segment | ||||||||||||||||||||||||
Revenues | $ | 211.8 | $ | 230.2 | $ | (18.4 | ) | (8.0)% | $ | 752.1 | $ | 740.8 | $ | 11.3 | 1.5 % | |||||||||
Gross profit | 64.9 | 71.5 | (6.6 | ) | 226.4 | 226.9 | (0.5 | ) | ||||||||||||||||
Selling, general and administrative expense | 30.5 | 33.0 | (2.5 | ) | 118.8 | 121.3 | (2.5 | ) | ||||||||||||||||
Intangible amortization expense | 1.4 | 0.7 | 0.7 | 3.4 | 2.9 | 0.5 | ||||||||||||||||||
Income | $ | 33.0 | $ | 37.8 | $ | (4.8 | ) | (12.7)% | $ | 104.2 | $ | 102.7 | $ | 1.5 | 1.5 % | |||||||||
as a percent of revenues | 15.6 | % | 16.4 | % | -80 bps | 13.9 | % | 13.9 | % | 0 bps | ||||||||||||||
Detection & Measurement reportable segment | ||||||||||||||||||||||||
Revenues | $ | 138.2 | $ | 118.1 | $ | 20.1 | 17.0 % | $ | 467.4 | $ | 387.3 | $ | 80.1 | 20.7 % | ||||||||||
Gross profit | 64.4 | 52.0 | 12.4 | 205.4 | 168.6 | 36.8 | ||||||||||||||||||
Selling, general and administrative expense | 31.8 | 26.3 | 5.5 | 117.5 | 88.4 | 29.1 | ||||||||||||||||||
Intangible amortization expense | 4.2 | 5.0 | (0.8 | ) | 18.2 | 11.1 | 7.1 | |||||||||||||||||
Income | $ | 28.4 | $ | 20.7 | $ | 7.7 | 37.2 % | $ | 69.7 | $ | 69.1 | $ | 0.6 | 0.9 % | ||||||||||
as a percent of revenues | 20.5 | % | 17.5 | % | 300 bps | 14.9 | % | 17.8 | % | -290 bps | ||||||||||||||
Consolidated Revenues | $ | 350.0 | $ | 348.3 | $ | 1.7 | 0.5 % | $ | 1,219.5 | $ | 1,128.1 | $ | 91.4 | 8.1 % | ||||||||||
Consolidated Segment Income | 61.4 | 58.5 | 2.9 | 5.0 % | 173.9 | 171.8 | 2.1 | 1.2 % | ||||||||||||||||
as a percent of revenues | 17.5 | % | 16.8 | % | 70 bps | 14.3 | % | 15.2 | % | -90 bps | ||||||||||||||
Total segment income | $ | 61.4 | $ | 58.5 | $ | 2.9 | $ | 173.9 | $ | 171.8 | $ | 2.1 | ||||||||||||
Corporate expense | 20.6 | 14.7 | 5.9 | 60.5 | 49.7 | 10.8 | ||||||||||||||||||
Long-term incentive compensation expense | 3.4 | 3.6 | (0.2 | ) | 12.8 | 13.1 | (0.3 | ) | ||||||||||||||||
Impairment intangible assets | 5.7 | 0.7 | 5.0 | 5.7 | 0.7 | 5.0 | ||||||||||||||||||
Special charges, net | 0.3 | 1.0 | (0.7 | ) | 1.0 | 2.4 | (1.4 | ) | ||||||||||||||||
Other operating expense | 17.5 | 9.4 | 8.1 | 20.2 | 9.0 | 11.2 | ||||||||||||||||||
Consolidated operating income | $ | 13.9 | $ | 29.1 | $ | (15.2 | ) | (52.2)% | $ | 73.7 | $ | 96.9 | $ | (23.2 | ) | (23.9)% | ||||||||
as a percent of revenues | 4.0 | % | 8.4 | % | -440 bps | 6.0 | % | 8.6 | % | -260 bps | ||||||||||||||
SPX CORPORATION AND SUBSIDIARIES | ||||||||||||||||||
CASH AND DEBT RECONCILIATION | ||||||||||||||||||
(Unaudited; in millions) | ||||||||||||||||||
Twelve months ended | ||||||||||||||||||
December 31, 2021 | ||||||||||||||||||
Beginning cash and equivalents | $ | 68.3 | ||||||||||||||||
Cash from continuing operations | 131.2 | |||||||||||||||||
Capital expenditures | (9.6 | ) | ||||||||||||||||
Expenditures related to company-owned life insurance policies, net | (31.2 | ) | ||||||||||||||||
Business acquisitions, net of cash acquired | (265.2 | ) | ||||||||||||||||
Borrowings under senior credit facilities | 209.9 | |||||||||||||||||
Repayments under senior credit facilities | (346.0 | ) | ||||||||||||||||
Borrowings under trade receivables agreement | 179.0 | |||||||||||||||||
Repayments under trade receivables agreement | (207.0 | ) | ||||||||||||||||
Net repayments under other financing arrangements | (0.4 | ) | ||||||||||||||||
Minimum withholdings paid on behalf of employees for net share settlements, net of proceeds from the exercise of employee stock options | (3.3 | ) | ||||||||||||||||
Cash from discontinued operations | 663.7 | |||||||||||||||||
Change in cash due to changes in foreign currency exchange rates | 6.6 | |||||||||||||||||
Ending cash and equivalents | $ | 396.0 | ||||||||||||||||
Debt at | Debt at | |||||||||||||||||
December 31, 2020 | Borrowings | Repayments | Other | December 31, 2021 | ||||||||||||||
Revolving loans | $ | 129.8 | $ | 209.9 | $ | (339.7 | ) | $ | - | $ | - | |||||||
Term loan | 250.0 | - | (6.3 | ) | - | 243.7 | ||||||||||||
Trade receivables financing arrangement | 28.0 | 179.0 | (207.0 | ) | - | - | ||||||||||||
Other indebtedness | 6.0 | 0.6 | (1.0 | ) | (2.3 | ) | 3.3 | |||||||||||
Less: Deferred financing costs associated with the term loan | (1.4 | ) | - | - | 0.4 | (1.0 | ) | |||||||||||
Totals | $ | 412.4 | $ | 389.5 | $ | (554.0 | ) | $ | (1.9 | ) | $ | 246.0 | ||||||
SPX CORPORATION AND SUBSIDIARIES | ||||||
NON-GAAP RECONCILIATION - ORGANIC REVENUE | ||||||
HVAC AND DETECTION & MEASUREMENT REPORTABLE SEGMENTS | ||||||
(Unaudited) | ||||||
Three months ended December 31, 2021 | ||||||
HVAC | Detection & Measurement | |||||
Net Revenue Growth (Decline) | (8.0 | )% | 17.0 | % | ||
Exclude: Foreign Currency | 0.1 | % | - | % | ||
Exclude: Acquisitions | 0.9 | % | 12.8 | % | ||
Organic Revenue Growth (Decline) | (9.0 | )% | 4.2 | % | ||
SPX CORPORATION AND SUBSIDIARIES | ||||||
NON-GAAP RECONCILIATION - ORGANIC REVENUE | ||||||
HVAC AND DETECTION & MEASUREMENT REPORTABLE SEGMENTS | ||||||
(Unaudited) | ||||||
Twelve months ended December 31, 2021 | ||||||
HVAC | Detection & Measurement | |||||
Net Revenue Growth | 1.5 | % | 20.7 | % | ||
Exclude: Foreign Currency | 0.5 | % | 1.1 | % | ||
Exclude: Settlement of legacy dry cooling contract | (0.6 | )% | - | % | ||
Exclude: Acquisitions | 0.3 | % | 14.6 | % | ||
Organic Revenue Growth | 1.3 | % | 5.0 | % | ||
SPX CORPORATION AND SUBSIDIARIES | ||||||||||||||||
NON-GAAP RECONCILIATION - SEGMENT INCOME | ||||||||||||||||
(Unaudited; in millions) | ||||||||||||||||
CONSOLIDATED SPX: | Three months ended | Twelve months ended | ||||||||||||||
December 31, 2021 | December 31, 2020 | December 31, 2021 | December 31, 2020 | |||||||||||||
Total segment income | $ | 61.4 | $ | 58.5 | $ | 173.9 | $ | 171.8 | ||||||||
Exclude: Acquisition related costs (1) | (0.3 | ) | (1.2 | ) | (5.1 | ) | (1.3 | ) | ||||||||
Exclude: Amortization expense (2) | (5.6 | ) | (5.7 | ) | (21.6 | ) | (14.0 | ) | ||||||||
Adjusted segment income | $ | 67.3 | $ | 65.4 | $ | 200.6 | $ | 187.1 | ||||||||
as a percent of revenues (3) | 19.2 | % | 18.8 | % | 16.4 | % | 16.6 | % | ||||||||
HVAC REPORTABLE SEGMENT: | Three months ended | Twelve months ended | ||||||||||||||
December 31, 2021 | December 31, 2020 | December 31, 2021 | December 31, 2020 | |||||||||||||
HVAC segment income | $ | 33.0 | $ | 37.8 | $ | 104.2 | $ | 102.7 | ||||||||
Exclude: Acquisition related costs (1) | (0.1 | ) | (0.5 | ) | (0.1 | ) | (0.6 | ) | ||||||||
Exclude: Amortization expense (2) | (1.4 | ) | (0.7 | ) | (3.4 | ) | (2.9 | ) | ||||||||
HVAC adjusted segment income | $ | 34.5 | $ | 39.0 | $ | 107.7 | $ | 106.2 | ||||||||
as a percent of HVAC segment revenues (3) | 16.3 | % | 16.9 | % | 14.3 | % | 14.3 | % | ||||||||
DETECTION & MEASUREMENT REPORTABLE SEGMENT: | Three months ended | Twelve months ended | ||||||||||||||
December 31, 2021 | December 31, 2020 | December 31, 2021 | December 31, 2020 | |||||||||||||
Detection & Measurement segment income | $ | 28.4 | $ | 20.7 | $ | 69.7 | $ | 69.1 | ||||||||
Exclude: Acquisition related costs (1) | (0.2 | ) | (0.7 | ) | (5.0 | ) | (0.7 | ) | ||||||||
Exclude: Amortization expense (2) | (4.2 | ) | (5.0 | ) | (18.2 | ) | (11.1 | ) | ||||||||
Detection & Measurement adjusted segment income | $ | 32.8 | $ | 26.4 | $ | 92.9 | $ | 80.9 | ||||||||
as a percent of Detection & Measurement segment revenues (3) | 23.7 | % | 22.4 | % | 19.9 | % | 20.9 | % | ||||||||
(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 | Twelve months ended | |||||||||||||||
December 31, 2021 | December 31, 2020 | December 31, 2021 | December 31, 2020 | |||||||||||||
Operating income | $ | 13.9 | $ | 29.1 | $ | 73.7 | $ | 96.9 | ||||||||
Include - TSA Income (1) | 0.9 | - | 0.9 | - | ||||||||||||
Exclude: | ||||||||||||||||
Acquisition related and other costs (2) | (4.8 | ) | (2.5 | ) | (13.0 | ) | (4.5 | ) | ||||||||
Other operating expense (3) | (17.5 | ) | (9.4 | ) | (20.2 | ) | (9.0 | ) | ||||||||
Amortization expense (4) | (5.6 | ) | (5.7 | ) | (21.6 | ) | (14.0 | ) | ||||||||
Impairment of intangible assets | (5.7 | ) | (0.7 | ) | (5.7 | ) | (0.7 | ) | ||||||||
Adjusted operating income | $ | 48.4 | $ | 47.4 | $ | 135.1 | $ | 125.1 | ||||||||
as a percent of revenues (5) | 13.8 | % | 13.6 | % | 11.1 | % | 11.1 | % | ||||||||
(1) Represents transition services revenue related to the Transformer Solutions disposition. Amount recorded in non-operating income for U.S. GAAP purposes. | ||||||||||||||||
(2) For the three and twelve months ended December 31, 2021, represents (i) cost incurred in connection with acquisitions, including inventory step-up charges of | ||||||||||||||||
(3) Represents charges associated with (i) asbestos product liability matters related to products that we no longer manufacture 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 December 31, 2021 | |||||||||||
(Unaudited; in millions, except per share values) | |||||||||||
GAAP | Adjustments | Adjusted | |||||||||
Segment income (1) | $ | 61.4 | $ | 5.9 | $ | 67.3 | |||||
Corporate expense (2) | (20.6 | ) | 5.2 | (15.4 | ) | ||||||
Long-term incentive compensation expense | (3.4 | ) | - | (3.4 | ) | ||||||
Impairment of intangible assets (3) | (5.7 | ) | 5.7 | - | |||||||
Special charges, net (4) | (0.3 | ) | 0.2 | (0.1 | ) | ||||||
Other operating expense (5) | (17.5 | ) | 17.5 | - | |||||||
Operating income | 13.9 | 34.5 | 48.4 | ||||||||
Other expense, net (6) | (8.6 | ) | 6.9 | (1.7 | ) | ||||||
Interest expense, net | (1.9 | ) | - | (1.9 | ) | ||||||
Income from continuing operations before income taxes | 3.4 | 41.4 | 44.8 | ||||||||
Income tax (provision) benefit (7) | 1.0 | (4.9 | ) | (3.9 | ) | ||||||
Income from continuing operations | 4.4 | 36.5 | 40.9 | ||||||||
Diluted shares outstanding | 46.705 | 46.705 | |||||||||
Earnings per share from continuing operations | $ | 0.10 | $ | 0.88 | |||||||
(1) Adjustment represents the removal of amortization expense associated with acquired intangible assets ( | |||||||||||
(2) Adjustment represents the removal of acquisition related expenses and costs associated with our Transformer Solutions and South Africa businesses that could not be allocated to discontinued operations for U.S. GAAP purposes ( | |||||||||||
(3) Adjustment represents the removal of non-cash charges related to the impairment of certain intangible assets. | |||||||||||
(4) Adjustment represents the removal of restructuring charges associated with acquisition integration activities. | |||||||||||
(5) Adjustment represents the removal of charges related to asbestos product liability matters associated with products that we no longer manufacture ( | |||||||||||
(6)Adjustment represents the removal of (i) charges related to asbestos product liability matters associated with products that we no longer manufacture ( | |||||||||||
(7) Adjustment represents the tax impact of items (1) through (6) above and the removal of certain discrete income tax charges that are considered non-recurring. | |||||||||||
SPX CORPORATION AND SUBSIDIARIES | |||||||||||
NON-GAAP RECONCILIATION - EARNINGS PER SHARE | |||||||||||
Twelve Months Ended December 31, 2021 | |||||||||||
(Unaudited; in millions, except per share values) | |||||||||||
GAAP | Adjustments | Adjusted | |||||||||
Segment income (1) | $ | 173.9 | $ | 26.7 | $ | 200.6 | |||||
Corporate expense (2) | (60.5 | ) | 8.6 | (51.9 | ) | ||||||
Long-term incentive compensation expense | (12.8 | ) | - | (12.8 | ) | ||||||
Impairment of intangible assets (3) | (5.7 | ) | 5.7 | - | |||||||
Special charges, net (4) | (1.0 | ) | 0.2 | (0.8 | ) | ||||||
Other operating expense (5) | (20.2 | ) | 20.2 | - | |||||||
Operating income | 73.7 | 61.4 | 135.1 | ||||||||
Other income, net (6) | 9.0 | (3.7 | ) | 5.3 | |||||||
Interest expense, net | (12.8 | ) | 0.2 | (12.6 | ) | ||||||
Income from continuing operations before income taxes | 69.9 | 57.9 | 127.8 | ||||||||
Income tax provision (7) | (10.9 | ) | (8.7 | ) | (19.6 | ) | |||||
Income from continuing operations | 59.0 | 49.2 | 108.2 | ||||||||
Diluted shares outstanding | 46.495 | 46.495 | |||||||||
Earnings per share from continuing operations | $ | 1.27 | $ | 2.33 | |||||||
(1) Adjustment represents the removal of (i) amortization expense associated with acquired intangible assets ( | |||||||||||
(2) Adjustment represents the removal of acquisition related expenses and costs associated with our Transformer Solutions and South Africa businesses that could not be allocated to discontinued operations for U.S. GAAP purposes ( | |||||||||||
(3) Adjustment represents the removal of non-cash charges related to the impairment of certain intangible assets. | |||||||||||
(4) Adjustment represents the removal of restructuring charges associated with acquisition integration activities. | |||||||||||
(5) Adjustment represents the removal of charges related to asbestos product liability matters associated with products that we no longer manufacture ( | |||||||||||
(6)Adjustment represents the removal of (i) charges related to asbestos product liability matters associated with products that we no longer manufacture ( | |||||||||||
(7) Adjustment primarily represents the tax impact of items (1) through (6) above and the removal of certain discrete income tax charges that are considered non-recurring. | |||||||||||
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) | $ | 58.5 | $ | 6.9 | $ | 65.4 | |||||
Corporate expense (2) | (14.7 | ) | 1.3 | (13.4 | ) | ||||||
Long-term incentive compensation expense | (3.6 | ) | - | (3.6 | ) | ||||||
Impairment of intangible assets (3) | (0.7 | ) | 0.7 | - | |||||||
Special charges, net | (1.0 | ) | - | (1.0 | ) | ||||||
Other operating expense (4) | (9.4 | ) | 9.4 | - | |||||||
Operating income | 29.1 | 18.3 | 47.4 | ||||||||
Other income (expense), net (5) | (8.7 | ) | 13.5 | 4.8 | |||||||
Interest expense, net | (4.4 | ) | - | (4.4 | ) | ||||||
Income from continuing operations before income taxes | 16.0 | 31.8 | 47.8 | ||||||||
Income tax (provision) benefit (6) | 4.5 | (9.1 | ) | (4.6 | ) | ||||||
Income from continuing operations | 20.5 | 22.7 | 43.2 | ||||||||
Diluted shares outstanding | 46.151 | 46.151 | |||||||||
Earnings per share from continuing operations | $ | 0.44 | $ | 0.94 | |||||||
(1) Adjustment represents the removal of amortization expense associated with acquired intangible assets ( | |||||||||||
(2) Adjustment represents the removal of acquisition related expenses and cost associated with our South Africa business that could not be allocated to discontinued operations ( | |||||||||||
(3) Adjustment represents the removal of non-cash charges related to the impairment of certain intangible assets. | |||||||||||
(4) Adjustment represents the removal of charges related to asbestos product liability matters associated with products that we no longer manufacture. | |||||||||||
(5)Adjustment represents the removal of (i) 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) | $ | 171.8 | $ | 15.3 | $ | 187.1 | |||||
Corporate expense (2) | (49.7 | ) | 3.2 | (46.5 | ) | ||||||
Long-term incentive compensation expense | (13.1 | ) | - | (13.1 | ) | ||||||
Impairment of intangible assets (3) | (0.7 | ) | 0.7 | - | |||||||
Special charges, net | (2.4 | ) | - | (2.4 | ) | ||||||
Other operating expense (4) | (9.0 | ) | 9.0 | - | |||||||
Operating income | 96.9 | 28.2 | 125.1 | ||||||||
Other income (expense), net (5) | (0.1 | ) | 6.8 | 6.7 | |||||||
Interest expense, net | (18.2 | ) | - | (18.2 | ) | ||||||
Income from continuing operations before income taxes | 78.6 | 35.0 | 113.6 | ||||||||
Income tax provision (6) | (4.8 | ) | (11.9 | ) | (16.7 | ) | |||||
Income from continuing operations | 73.8 | 23.1 | 96.9 | ||||||||
Diluted shares outstanding | 45.766 | 45.766 | |||||||||
Earnings per share from continuing operations | $ | 1.61 | $ | 2.12 | |||||||
(1) Adjustment represents the removal of amortization expense associated with acquired intangible assets ( | |||||||||||
(2) Adjustment represents the removal of acquisition related expenses and costs associated with our South Africa business that could not be allocated to discontinued operations ( | |||||||||||
(3) Adjustment represents the removal of non-cash charges related to the impairment of certain intangible assets. | |||||||||||
(4) Adjustment represents the removal of charges related to asbestos product liability matters associated with products that we no longer manufacture of ( | |||||||||||
(5)Adjustment represents the removal of (i) non-service pension and postretirement charges ( | |||||||||||
(6) Adjustment primarily represents the tax impact of items (1) through (5) above. | |||||||||||
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