SPX Technologies Reports First Quarter 2024 Results
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.
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.
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
Strong Demand and Execution in HVAC
Raising 2024 Full-Year Adjusted EPS* Guidance to a Range of
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
First Quarter 2024 Overview:
For the first quarter of 2024, the company reported revenue of
Adjusted EBITDA* was
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
Segment income in the first quarter of 2024 was
Detection & Measurement Segment
Revenue for the first quarter of 2024 was
Segment income for the first quarter of 2024 was
Financial Update: As of March 30, 2024, SPX Technologies had total outstanding debt of
2024 Guidance Update:
SPX Technologies is increasing full-year 2024 guidance. The company is now targeting consolidated revenue of
Segment and company performance is expected to be as follows:
Revenue | Segment Income Margin % | |||
HVAC | ( | ( | ||
Detection & Measurement | (no change) | (no change) | ||
Total SPX | ( | ( | ||
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 | ||||||||||||||
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 | ||||||||
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) Adjustment represents the removal of (i) integration costs of | |||||||||||
(3) Adjustment represents the removal of amortization expense associated with acquired intangible assets of | |||||||||||
(4) Adjustment represents the removal of (i) a loss on an equity security associated with a fair value adjustment ( | |||||||||||
(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 ( | |||||||||||
(2) Adjustment represents the removal of integration costs of | |||||||||||
(3) Adjustment represents the removal of amortization expense associated with acquired intangible assets of | |||||||||||
(4) Adjustment represents the removal of (i) a gain on an equity security associated with a fair value adjustment ( | |||||||||||
(5) Adjustment represents the tax impact of items (1) through (4). | |||||||||||
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 |
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