STOCK TITAN

SPX Technologies Reports First Quarter 2024 Results

Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Neutral)
Tags
Rhea-AI Summary

SPX Technologies, Inc. reported strong Q1 2024 results, highlighting Q1 GAAP EPS of $1.05 and adjusted EPS of $1.25. Revenue increased to $465.2 million, operating income reached $64.6 million, and net income was $49.0 million. Adjusted EBITDA grew by 46.7% to $92.0 million. HVAC segment revenue increased by 20.2%, while the Detection & Measurement segment saw a 9.9% revenue increase. SPX raised its 2024 full-year adjusted EPS guidance to $5.15-$5.40, reflecting a 23% year-on-year growth.

Positive
  • Significant growth in key profit measures and margin expansion in both segments.

  • Enhancements in production facilities and successful integration of recent acquisitions.

  • Raising full-year guidance for Adjusted EPS to $5.15-$5.40, implying 23% growth.

  • Revenue increase to $465.2 million and operating income of $64.6 million.

  • Adjusted EBITDA growth of 46.7% to $92.0 million.

  • HVAC segment revenue up by 20.2% and segment income margin increase of 360 basis points.

  • Detection & Measurement segment revenue grew by 9.9% and segment income margin increased by 130 basis points.

Negative
  • Organic revenue decline of 1.9% in HVAC segment due to unseasonably warm temperatures.

  • Net outstanding debt of $854.4 million as of March 30, 2024.

  • Net operating cash from continuing operations totaled $10.7 million.

  • Capital expenditures for continuing operations were $9.9 million in Q1 2024.

Insights

SPX Technologies' Q1 performance, characterized by a substantial growth in profit measures and expansion of margin in both HVAC and Detection & Measurement segments, indicates a robust start to 2024. The reported revenue increase of 16.4% year-over-year, to $465.2 million from $399.8 million, is commendable and suggests strong operational execution, particularly considering the backdrop of an unpredictable economic environment.

The company's strategic acquisitions have contributed positively to revenue, though there's a notable 1.9% organic revenue decline in the HVAC segment, primarily due to unseasonably warm temperatures. Despite this, segment income significantly improved due to a favorable product mix. The Detection & Measurement segment, on the other hand, experienced a substantial 9.6% organic revenue growth, demonstrating resilience and potential for further expansion.

Looking at the balance sheet, SPX's cash position of $105.5 million against a debt of $854.4 million underscores the importance of monitoring leverage and liquidity. However, the company's confidence is reflected in their increased full-year guidance, introducing potentially higher returns for investors with a projected adjusted EPS growth of approximately 23%.

The report's indication of SPX Technologies' performance exceeding prior year's results and the upward revision of their full-year guidance for adjusted EPS indicates a positive market response, mirroring investor confidence in the company's strategic initiatives and operational efficiency. The significant progress in key value creation initiatives, such as driving greater production efficiencies and integrating recent acquisitions, positions the company to capitalize on favorable market demands.

SPX's increased adjusted EBITDA margin, an impressive jump to 46.7%, is noteworthy and implies robust operational management. Given the company's strong first-quarter performance and raised outlook, investors may anticipate SPX to outperform industry benchmarks in efficiency and profitability in the short to medium term.

Q1 GAAP EPS of $1.05; Adjusted EPS* of $1.25

   Strong Demand and Execution in HVAC

Raising 2024 Full-Year Adjusted EPS* Guidance to a Range of $5.15 to $5.40

CHARLOTTE, N.C., May 02, 2024 (GLOBE NEWSWIRE) -- SPX Technologies, Inc. (NYSE:SPXC) (“SPX”, the “Company”, “we” or “our”) today reported results for the first quarter ended March 30, 2024.

Gene Lowe, President and CEO, remarked, “I’m very pleased with our strong Q1 performance, which included substantial growth in all of our key profit measures and significant margin expansion in both segments. During the quarter we continued to see solid demand across several key markets and our businesses executed well operationally.”

Mr. Lowe continued, “During Q1, we made significant progress on several key value creation initiatives, including driving greater efficiencies in our production facilities and effectively integrating our recent acquisitions. These enhancements are strengthening our company and positioning us for further growth.”

Mr. Lowe commented further, “Looking ahead, we continue to see overall favorable demand trends and positive operational momentum. Following the strong start to the year, we are raising our full-year guidance for Adjusted EPS* to a range of $5.15 to $5.40 from $4.85 to $5.15 previously, with the midpoint implying year-on-year growth of approximately 23%.”

First Quarter 2024 Overview:

For the first quarter of 2024, the company reported revenue of $465.2 million and operating income of $64.6 million, compared with revenue of $399.8 million and operating income of $49.8 million in the first quarter of 2023. Net income for the first quarter of 2024 was $49.0 million, compared with $42.8 million in the first quarter of 2023.  Diluted income per share from continuing operations in the first quarter of 2024 was $1.05, compared with $0.84 in the first quarter of 2023. The increase in revenue, operating income, net income and diluted income per share from continuing operations were due primarily to higher revenue in both our HVAC and Detection & Measurement segments.

Adjusted EBITDA* was $92.0 million, compared with $62.7 million in the first quarter of 2023, or an increase of 46.7%. Adjusted earnings per share* in the first quarter of 2024 was $1.25, compared with $0.93 in the first quarter of 2023.  Adjusted EBITDA* and Adjusted earnings per share* exclude amortization expense and acquisition-related costs, among other items.

First Quarter Financial Comparisons:

($ millions) Q1 2024 Q1 2023
Revenue $                          465.2 $                         399.8
Consolidated operating income                                64.6                               49.8
Income from continuing operations                                49.2                               39.1
Net Income                                49.0                               42.8
       
Consolidated segment income*  99.8  74.4
Adjusted operating income*  84.4  58.3
Adjusted EBITDA*  92.0  62.7
       

* Non-GAAP financial measure. See attached schedules for reconciliation of each historical non-GAAP measure to the respective most comparable GAAP financial measure.  A reconciliation of non-GAAP guidance measures is not practicable and, accordingly, is not included.

HVAC Segment

Revenue for the first quarter of 2024 was $302.4 million, compared with $251.6 million in the first quarter of 2023, an increase of 20.2%, including a 22.2% increase from the acquisitions of Ingénia, ASPEQ, and TAMCO, a 1.9% organic revenue* decline, and a 0.1% unfavorable impact related to currency fluctuation. The organic decline was due primarily to lower sales of heating products associated with unseasonably warm temperatures during the Q1 heating season compared with higher prior-year sales that were supported by elevated post-pandemic backlog.

Segment income in the first quarter of 2024 was $68.4 million, or 22.6% of revenue. This compares with segment income of $47.7 million, or 19.0% of revenue in the first quarter of 2023. The increase in segment income and 360 basis points increase in segment income margin were due primarily to the higher revenues noted above as well as a more favorable product mix.

Detection & Measurement Segment

Revenue for the first quarter of 2024 was $162.8 million, compared with $148.2 million in the first quarter of 2023, an increase of 9.9%, including a 9.6% increase in organic revenue* and a 0.3% favorable impact related to currency fluctuation. The organic increase was primarily due to higher project sales in our Communication Technologies platform. 

Segment income for the first quarter of 2024 was $31.4 million, or 19.3% of revenue.  This compares with segment income of $26.7 million, or 18.0% of revenue of in the first quarter of 2023.  The increase in segment income and 130 basis points increase in segment income margin were due to the higher revenue noted above and the associated operating leverage.

Financial Update: As of March 30, 2024, SPX Technologies had total outstanding debt of $854.4 million and total cash of $105.5 million. During the first quarter of 2024, SPX’s net operating cash from continuing operations totaled $10.7 million. Capital expenditures for continuing operations for the first quarter of 2024 were $9.9 million.

2024 Guidance Update:

SPX Technologies is increasing full-year 2024 guidance. The company is now targeting consolidated revenue of $1.965-$2.025 billion ($1.93-$2.00 billion prior), adjusted EBITDA* of $390-$420 million ($375-$405 million prior), and adjusted earnings per share* of $5.15-$5.40 ($4.85-$5.15 prior).

Segment and company performance is expected to be as follows:

  Revenue Segment Income Margin %
HVAC $1,360-$1,400 million
($1,325-$1,375 million prior)
 22.25%-23.25%                                                                 
(21.25%-22.25% prior)
Detection & Measurement $605-$625 million
(no change)
 20.00%-21.00%
(no change)
Total SPX $1,965-$2,025 million
($1,930-$2,000 million prior)
 21.60%-22.60%*
(21.00%-22.00% prior)
     

Form 10-Q: The company expects to file its quarterly report on Form 10-Q for the quarter ended March 30, 2024 with the Securities and Exchange Commission on or before May 9, 2024. 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.

Call Access:  To access the call by phone, please go to this link https://register.vevent.com/register/BIac05c897d80c4c07b31710938aa97aad and you will be provided with dial-in details. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time. A replay of the webcast will also be available for a limited time at www.spx.com

Upcoming Investor Events: Company management plans to conduct virtual meetings with investors during the second quarter of 2024, including virtually at the Oppenheimer Annual Industrial Growth Conference on May 8th, the UBS Re-shoring and Infrastructure Conference in New York City on June 4th, and at the William Blair’s Annual Growth Stock Conference in Chicago on June 6th.

About SPX: SPX Technologies, Inc. is a diversified, global supplier of highly engineered products and technologies, holding leadership positions in the HVAC and detection and measurement markets. Based in Charlotte, North Carolina, SPX has more than 4,100 employees in 15 countries. SPX is listed on the New York Stock Exchange under the ticker symbol “SPXC.” For more information, please visit www.spx.com

Non-GAAP Presentation: This press release contains certain non-GAAP financial measures, including consolidated segment income, adjusted operating income, adjusted income from continuing operations before income taxes, adjusted income from continuing operations, adjusted earnings per share from continuing operations (or, adjusted EPS), EBITDA, Adjusted EBITDA, and organic revenue growth (decline). These non-GAAP financial measures do not provide investors with an accurate measure of, and should not be used as a substitute for, the comparable financial measures as determined in accordance with accounting principles generally accepted in the United States (“GAAP”). The Company believes these non-GAAP financial measures, when read in conjunction with the comparable GAAP financial measures, give investors a useful tool to assess and understand the Company’s overall financial performance, because they exclude items of income or expense that the Company believes are not reflective of its ongoing operating performance, allowing for a better period-to-period comparison of operations of the Company. Additionally, the Company’s management uses these non-GAAP financial measures as measures of the Company’s performance. The Company acknowledges that there are many items that impact a company’s reported results and the adjustments reflected in these non-GAAP measures are not intended to present all items that may have impacted these results. In addition, these non-GAAP measures are not necessarily comparable to similarly titled measures used by other companies.

Refer to the tables included in this press release for the components of each of the non-GAAP financial measures, and for the reconciliations of historical non-GAAP financial measures to their respective comparable GAAP measures. Our non-GAAP financial guidance excludes items, which would be included in our GAAP financial measures, that we do not consider indicative of our on-going performance; and are calculated in a manner consistent with the presentation of the similarly titled historical non-GAAP measures presented in this press release. These items include, but are not limited to, acquisition costs, costs associated with dispositions, and potential non-cash income or expense items associated with changes in market interest rates and actuarial or other data related to our pension and postretirement plans, as the ultimate aggregate amounts associated with these items are out of our control and/or cannot be reasonably predicted. Accordingly, a reconciliation of our non-GAAP financial guidance to the most comparable GAAP financial measures is not practicable. Full-year guidance excludes changes in the number of shares outstanding; impacts from future acquisitions, dispositions and related transaction costs, restructuring costs, incremental impacts of tariffs and trade tensions on market demand and costs subsequent to the end of the first quarter, the impact of foreign exchange rate changes subsequent to the end of the first quarter, and environmental and litigation charges.

Forward Looking Statements: Certain statements in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created thereby. Please read these results in conjunction with the Company’s documents filed with the Securities and Exchange Commission, including the Company’s most recent annual report on Form 10-K. These filings identify important risk factors and other uncertainties that could cause actual results to differ from those contained in the forward-looking statements, including the following: cyclical changes and specific industry events in the Company’s markets; changes in anticipated capital investment and maintenance expenditures by customers; availability, limitations or cost increases of raw materials and/or commodities that cannot be recovered in product pricing; the impact of competition on profit margins and the Company’s ability to maintain or increase market share; inadequate performance by third-party suppliers and subcontractors for outsourced products, components and services and other supply-chain risks; the uncertainty with respect to environmental and other contingent liabilities; the impact of climate change and any legal or regulatory actions taken in response there to; cyber-security risks; risks with respect to the protection of intellectual property, including with respect to the Company’s digitalization initiatives; the impact of overruns, inflation and the incurrence of delays with respect to long-term fixed-price contracts; defects or errors in current or planned products; the impact of pandemics and governmental and other actions taken in response; domestic economic, political, legal, accounting and business developments adversely affecting the Company’s business, including regulatory changes; changes in worldwide economic conditions, including as a result of geopolitical conflicts; uncertainties with respect to the Company’s ability to identify acceptable acquisition targets; uncertainties surrounding timing and successful completion of 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,” “targeting,” “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 Technologies, Inc.

Investor and Media Contacts:
Paul Clegg, VP, Investor Relations and Communications
Phone:  980-474-3806
E-mail: spx.investor@spx.com 
Source: SPX Technologies, Inc.


SPX TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited; in millions, except per share amounts)
    
 Three months ended
 March 30, 2024 April 1, 2023
    
Revenues$                            465.2  $                            399.8 
Costs and expenses:   
Cost of products sold                               282.3                                 249.9 
Selling, general and administrative                               102.9                                   93.8 
Intangible amortization                                 14.8                                     6.3 
Special charges, net                                   0.6                                      — 
Operating income                                 64.6                                   49.8 
    
Other income (expense), net                                 (4.0)                                    2.5 
Interest expense                                 (9.8)                                  (2.4)
Interest income                                   0.3                                     0.5 
Income from continuing operations before income taxes                                 51.1                                   50.4 
Income tax provision                                 (1.9)                                (11.3)
Income from continuing operations                                 49.2                                   39.1 
    
Income (loss) from discontinued operations, net of tax                                    —                                      — 
Gain (loss) on disposition of discontinued operations, net of tax                                 (0.2)                                    3.7 
Income (loss) from discontinued operations, net of tax                                 (0.2)                                    3.7 
    
Net income$                              49.0  $                              42.8 
    
Basic income per share of common stock:   
Income from continuing operations$                              1.07  $                              0.86 
Income from discontinued operations                                    —                                   0.08 
Net income per share$                              1.07  $                              0.94 
    
Weighted-average number of common shares outstanding — basic                             45.828                               45.382 
    
Diluted income per share of common stock:   
Income from continuing operations$                              1.05  $                              0.84 
Income from discontinued operations                                    —                                   0.08 
Net income per share$                              1.05  $                              0.92 
    
Weighted-average number of common shares outstanding — diluted                             46.683                               46.402 
        


SPX TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited; in millions)
    
 March 30, 2024 December 31, 2023
ASSETS   
Current assets:   
Cash and equivalents$                            100.5  $                              99.4 
Accounts receivable, net                               317.6                                 279.8 
Contract assets                                 32.0                                   16.6 
Inventories, net                               295.1                                 276.7 
Other current assets                                 34.4                                   37.1 
Total current assets                               779.6                                 709.6 
Property, plant and equipment:   
Land                                 23.2                                   17.9 
Buildings and leasehold improvements                               118.7                                   73.4 
Machinery and equipment                               291.9                                 264.4 
                                433.8                                 355.7 
Accumulated depreciation                             (216.6)                              (215.2)
Property, plant and equipment, net                               217.2                                 140.5 
Goodwill                               844.5                                 704.8 
Intangibles, net                               760.6                                 680.8 
Other assets                               184.3                                 188.9 
Deferred income taxes                                   4.0                                     4.0 
Assets of DBT and Heat Transfer                                   9.4                                   11.1 
TOTAL ASSETS$                         2,799.6  $                         2,439.7 
    
LIABILITIES AND STOCKHOLDERS' EQUITY   
Current liabilities:   
Accounts payable$                            151.4  $                            118.7 
Contract liabilities                                 72.9                                   73.5 
Accrued expenses                               126.2                                 168.5 
Income taxes payable                                   6.5                                     5.3 
Short-term debt                               317.0                                   17.9 
Current maturities of long-term debt                                 20.8                                   17.3 
Total current liabilities                               694.8                                 401.2 
    
Long-term debt                               516.6                                 523.1 
Deferred and other income taxes                               109.7                                   77.0 
Other long-term liabilities                               202.6                                 204.1 
Liabilities of DBT and Heat Transfer                                 38.4                                   39.7 
Total long-term liabilities                               867.3                                 843.9 
    
Stockholders' equity:   
Common stock                                   0.5                                     0.5 
Paid-in capital                            1,351.6                              1,353.6 
Retained earnings                                 87.3                                   38.3 
Accumulated other comprehensive income                               250.9                                 261.1 
Common stock in treasury                             (452.8)                              (458.9)
Total stockholders' equity                            1,237.5                              1,194.6 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$                         2,799.6  $                         2,439.7 
        


SPX TECHNOLOGIES, INC. AND SUBSIDIARIES
RESULTS OF REPORTABLE SEGMENTS
(Unaudited; in millions)
         
  Three months ended    
  March 30, 2024 April 1, 2023 Δ %/bps
HVAC reportable segment        
         
Revenues $302.4  $251.6  $50.8  20.2%
Gross profit  117.4   88.3   29.1   
Selling, general and administrative expense  49.0   40.6   8.4   
Income $68.4  $47.7  $20.7  43.4%
as a percent of revenues  22.6%  19.0%   360bps
         
Detection & Measurement reportable segment        
         
Revenues $162.8  $148.2  $14.6  9.9%
Gross profit  66.4   61.6   4.8   
Selling, general and administrative expense  35.0   34.9   0.1   
Income $31.4  $26.7  $4.7  17.6%
as a percent of revenues  19.3%  18.0%   130bps
         
Consolidated Revenues $465.2  $399.8  $65.4  16.4%
Consolidated Operating Income  64.6   49.8   14.8  29.7%
as a percent of revenues  13.9%  12.5%   140bps
Consolidated Segment Income   99.8   74.4   25.4  34.1%
as a percent of revenues  21.5%  18.6%   290bps
         
Consolidated operating income $64.6  $49.8  $14.8   
Exclude:        
Corporate expense  13.9   14.6   (0.7)  
Acquisition-related and other costs (1)  2.6   0.6   2.0   
Long-term incentive compensation expense  3.3   3.1   0.2   
Amortization of acquired intangible assets  14.8   6.3   8.5   
Special charges, net  0.6      0.6   
Total segment income $99.8  $74.4  $25.4  34.1%
 as a percent of revenues  21.5%  18.6%   290bps
         
(1)  Represents certain acquisition-related costs incurred of $2.6 and $0.6 during the three months ended March 30, 2024 and April 1, 2023, respectively, including additional “Cost of products sold” related to the step up of inventory (to fair value) acquired in connection with the Ingénia acquisition of $0.9 during the three months ended March 30, 2024.
         


SPX TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited; in millions)
    
 Three months ended
 March 30, 2024 April 1, 2023
Cash flows from (used in) operating activities:   
Net income$                             49.0  $                             42.8 
Less: Gain (loss) from discontinued operations, net of tax                                (0.2)                                   3.7 
Income from continuing operations                                49.2                                  39.1 
Adjustments to reconcile income from continuing operations to net cash from (used in) operating activities:   
Special charges, net                                  0.6                                     — 
(Gain) loss on change in fair value of equity security                                  4.2                                  (3.6)
Deferred and other income taxes                                (3.4)                                 (3.5)
Depreciation and amortization                                21.0                                  10.7 
Pension and other employee benefits                                  4.2                                    3.5 
Long-term incentive compensation                                  3.3                                    3.1 
Other, net                                (1.6)                                 (1.5)
Changes in operating assets and liabilities, net of effects from acquisitions and divestitures:   
Accounts receivable and other assets                              (29.5)                               (15.1)
Inventories                              (12.0)                               (21.2)
Accounts payable, accrued expenses and other                              (24.9)                               (10.7)
Cash spending on restructuring actions                                (0.4)                                    — 
Net cash from continuing operations                                10.7                                    0.8 
Net cash used in discontinued operations                                (0.2)                                 (5.2)
Net cash from (used in) operating activities                                10.5                                  (4.4)
    
Cash flows from (used in) investing activities:   
Proceeds related to company-owned life insurance policies, net                                  0.1                                    0.1 
Business acquisition, net of cash acquired                            (294.1)                                    — 
Capital expenditures                                (9.9)                                 (4.0)
Net cash used in continuing operations                            (303.9)                                 (3.9)
Net cash used in discontinued operations                                   —                                     — 
Net cash used in investing activities                            (303.9)                                 (3.9)
    
Cash flows from (used in) financing activities:   
Borrowings under senior credit facilities                              557.2                                  20.0 
Repayments under senior credit facilities                            (279.2)                                    — 
Borrowings under trade receivables arrangement                                65.0                                  47.0 
Repayments under trade receivables arrangement                              (47.0)                                    — 
Net repayments under other financing arrangements                                (0.3)                                    — 
Minimum withholdings paid on behalf of employees for net share settlements, net of proceeds from the exercise of employee stock options                                (3.0)                                 (4.1)
Net cash from continuing operations                              292.7                                  62.9 
Net cash from discontinued operations                                   —                                     — 
Net cash from financing activities                              292.7                                  62.9 
Change in cash and equivalents due to changes in foreign currency exchange rates                                  1.3                                    1.0 
Net change in cash and equivalents                                  0.6                                  55.6 
Consolidated cash and equivalents, beginning of period                              104.9                                157.1 
Consolidated cash and equivalents, end of period$                           105.5  $                           212.7 
        


 Three months ended
 March 30, 2024 April 1, 2023
Components of cash and equivalents:   
Cash and equivalents$                           100.5 $                           204.8
Cash and equivalents included in assets of DBT and Heat Transfer 5.0  7.9
Total cash and equivalents$                           105.5 $                           212.7
      


SPX TECHNOLOGIES, INC. AND SUBSIDIARIES
CASH AND DEBT RECONCILIATION
(Unaudited; in millions)
           
           
  Three months ended        
  March 30, 2024        
Beginning cash and equivalents $                  104.9         
Cash from continuing operations                      10.7         
Capital expenditures                       (9.9)        
Proceeds related to company-owned life insurance policies, net                        0.1         
Business acquisition, net of cash acquired                   (294.1)        
Borrowings under senior credit facilities                    557.2         
Repayments under senior credit facilities                   (279.2)        
Borrowings under trade receivables agreement                      65.0         
Repayments under trade receivables agreement                     (47.0)        
Net repayments under other financing arrangements                      (0.3)        
Minimum withholdings paid on behalf of employees for net share settlements, net of proceeds from the exercise of employee stock options                        (3.0)        
Cash used in discontinued operations                       (0.2)        
Change in cash due to changes in foreign currency exchange rates                        1.3         
Ending cash and equivalents $                  105.5         
           
           
  Debt at       Debt at
  December 31, 2023 Borrowings Repayments Other March 30, 2024
Revolving loans $                       —  $        557.2 $      (275.8) $             — $                  281.4 
Term loans           541.6                  —              (3.4)                 —               538.2 
Trade receivables financing arrangement                   16.0               65.0            (47.0)                 —            34.0 
Other indebtedness                2.4                  —              (0.3)                0.3                      2.4 
Less: Deferred financing costs associated with the term loans               (1.7)                 —                 —                 0.1                   (1.6)
Totals $                  558.3  $        622.2 $      (326.5) $            0.4 $                  854.4 
                   


SPX TECHNOLOGIES, INC. AND SUBSIDIARIES
NON-GAAP RECONCILIATION - ORGANIC REVENUE
HVAC AND DETECTION & MEASUREMENT REPORTABLE SEGMENTS
(Unaudited)
      
  Three months ended March 30, 2024 
  HVAC Detection &
Measurement
 
Net Revenue Growth                                             20.2                                               9.9%
      
Exclude: Foreign Currency                                             (0.1)%                                               0.3%
      
Exclude: Acquisitions                                             22.2                                                —%
      
Organic Revenue Growth (Decline)                                             (1.9)%                                               9.6%
       


SPX TECHNOLOGIES, INC. AND SUBSIDIARIES
NON-GAAP RECONCILIATION - ADJUSTED OPERATING INCOME
(Unaudited; in millions)
     
  Three months ended
  March 30, 2024 April 1, 2023
Operating income $64.6  $49.8 
     
Include - TSA Income (1)     0.1 
     
Exclude:    
Acquisition-related and other costs (2)  (5.0)  (2.1)
     
Amortization of acquired intangible assets  (14.8)  (6.3)
     
Adjusted operating income $84.4  $58.3 
 as a percent of revenues  18.1%  14.6%
     
(1) Represents transition services income related to the Asbestos Portfolio Sale for the three months ended April 1, 2023. Amounts recorded in non-operating income for U.S. GAAP purposes. The Asbestos Portfolio Sale is described in the Company’s most recent Form 10-K.
     
(2) For the three months ended March 30, 2024, represents (i) certain acquisition and strategic/transformation related costs of $2.4, (ii) integration costs of $1.7, and (iii) inventory step-up charges of $0.9 related to the Ingénia acquisition. For the three months ended April 1, 2023, represents (i) certain acquisition and strategic/transformation related costs of $1.5 and (ii) integration costs of $0.6.
     


SPX TECHNOLOGIES, INC. AND SUBSIDIARIES
NON-GAAP RECONCILIATION - ADJUSTED EARNINGS PER SHARE
Three Months Ended March 30, 2024
(Unaudited; in millions, except per share values)
      
      
 GAAP Adjustments Adjusted
Segment income$               99.8  $                  —  $               99.8 
Corporate expense (1)                (13.9)                     2.4                  (11.5)
Acquisition-related costs (2)                  (2.6)                     2.6                       — 
Long-term incentive compensation expense                  (3.3)                      —                    (3.3)
Amortization of intangible assets (3)                (14.8)                   14.8                       — 
Special charges, net                  (0.6)                      —                    (0.6)
Operating income                  64.6                    19.8                    84.4 
      
Other income (expense), net (4)                  (4.0)                     5.4                      1.4 
Interest expense, net                  (9.5)                      —                    (9.5)
Income from continuing operations before income taxes                  51.1                    25.2                    76.3 
Income tax provision (5)                  (1.9)                 (16.0)                 (17.9)
Income from continuing operations                  49.2                      9.2                    58.4 
      
Diluted shares outstanding              46.683                  46.683 
      
Earnings per share from continuing operations$               1.05    $               1.25 
      
(1) Adjustment represents the removal of certain acquisition and strategic/transformation related costs ($2.4).
 
(2) Adjustment represents the removal of (i) integration costs of $1.7 and (ii) an inventory step-up charge related to the Ingénia acquisition of $0.9 within the HVAC reportable segment.
 
(3) Adjustment represents the removal of amortization expense associated with acquired intangible assets of $10.5 and $4.3 within the HVAC and Detection & Measurement reportable segments, respectively.
      
(4) Adjustment represents the removal of (i) a loss on an equity security associated with a fair value adjustment ($4.2) and (ii) non-service pension and postretirement charges ($1.2).
      
(5) Adjustment represents the tax impact of items (1) through (4) and the removal of certain discrete income tax items that are considered non-recurring.
      


SPX TECHNOLOGIES, INC. AND SUBSIDIARIES
NON-GAAP RECONCILIATION - ADJUSTED EARNINGS PER SHARE
Three Months Ended April 1, 2023
(Unaudited; in millions, except per share values)
      
      
 GAAP Adjustments Adjusted
Segment income$               74.4  $                  —  $               74.4 
Corporate expense (1)                (14.6)                     1.6                  (13.0)
Acquisition-related costs (2)                  (0.6)                     0.6                       — 
Long-term incentive compensation expense                  (3.1)                      —                    (3.1)
Amortization of intangible assets (3)                  (6.3)                     6.3                       — 
Operating income                  49.8                      8.5                    58.3 
      
Other income, net (4)                    2.5                    (2.5)                      — 
Interest expense, net                  (1.9)                      —                    (1.9)
Income from continuing operations before income taxes                  50.4                      6.0                    56.4 
Income tax provision (5)                (11.3)                   (2.0)                 (13.3)
Income from continuing operations                  39.1                      4.0                    43.1 
      
Diluted shares outstanding              46.402                  46.402 
      
Earnings per share from continuing operations$               0.84    $               0.93 
      
(1) Adjustment represents the removal of acquisition and strategic/transformation related expenses ($1.5) and a reclassification of transition services income ($0.1) from “Other Income, net.”

 
 
(2) Adjustment represents the removal of integration costs of $0.4 and $0.2 within the Detection & Measurement and HVAC reportable segments, respectively.
 
(3) Adjustment represents the removal of amortization expense associated with acquired intangible assets of $4.3 and $2.0 within the Detection & Measurement and HVAC reportable segments, respectively.
      
(4) Adjustment represents the removal of (i) a gain on an equity security associated with a fair value adjustment ($3.6), (ii) non-service pension and postretirement charges ($1.2), as well as the reclassification of income related to a transition services agreement ($0.1) to “Corporate expense.”
      
(5) Adjustment represents the tax impact of items (1) through (4).
      


SPX TECHNOLOGIES, INC. AND SUBSIDIARIES
NON-GAAP RECONCILIATION - ADJUSTED EBITDA
(Unaudited; in millions)
     
     
  Three months ended
  March 30, 2024 April 1, 2023
Net income $49.0  $42.8 
     
Exclude:    
Income tax provision  (1.9)  (11.3)
Interest expense, net  (9.5)  (1.9)
Amortization expense (1)  (14.8)  (6.3)
Depreciation expense  (6.2)  (4.4)
Gain (loss) from discontinued operations, net of tax  (0.2)  3.7 
EBITDA  81.6   63.0 
     
Exclude:    
Acquisition-related and other costs (2)  (5.0)  (2.1)
Non-service pension and postretirement charges  (1.2)  (1.2)
Fair value adjustments on an equity security  (4.2)  3.6 
Adjusted EBITDA $92.0  $62.7 
as a percent of  revenues  19.8%  15.7%
     
(1) Represents amortization expense associated with acquired intangible assets recorded within “Intangible amortization.”
     
(2) For the three months ended March 30, 2024 and April 1, 2023, adjustments represent the removal of acquisition and strategic/transformation related costs of $2.4 and $1.5, respectively, and for the three months ended March 30, 2024, the removal of (i) integration costs of $1.7 within the HVAC reportable segment and (ii) an inventory step-up charge related to the Ingénia acquisition of $0.9 within the HVAC reportable segment. For the three months ended April 1, 2023, adjustment also represents the removal of integration costs of $0.4 and $0.2 within the Detection & Measurement and HVAC reportable segments, respectively.

FAQ

What was SPX Technologies' Q1 2024 GAAP EPS?

SPX Technologies reported a Q1 2024 GAAP EPS of $1.05.

What is SPX Technologies' stock symbol?

SPX Technologies' stock symbol is SPXC.

How much did SPX Technologies raise its full-year adjusted EPS guidance to?

SPX Technologies raised its full-year adjusted EPS guidance to a range of $5.15 to $5.40.

What was the revenue for SPX Technologies in Q1 2024?

SPX Technologies reported revenue of $465.2 million in Q1 2024.

What was the increase in Adjusted EBITDA for SPX Technologies in Q1 2024 compared to Q1 2023?

Adjusted EBITDA for SPX Technologies grew by 46.7% to $92.0 million in Q1 2024 compared to Q1 2023.

SPX Technologies, Inc.

NYSE:SPXC

SPXC Rankings

SPXC Latest News

SPXC Stock Data

8.00B
44.56M
3.71%
95.63%
1.24%
Building Products & Equipment
Metalworkg Machinery & Equipment
Link
United States of America
CHARLOTTE