SPX Technologies Reports Third Quarter 2024 Results
SPX Technologies (NYSE:SPXC) reported strong Q3 2024 results with revenue of $483.7 million, up from $448.7 million in Q3 2023. Operating income reached $78.9 million, compared to $57.7 million last year. The company achieved significant margin expansion in both HVAC and Detection & Measurement segments. Q3 GAAP EPS was $1.08, while Adjusted EPS reached $1.39. HVAC segment revenue grew 15.9% to $335.3 million, while Detection & Measurement revenue decreased 7% to $148.4 million. The company maintains its full-year 2024 guidance for adjusted EBITDA of $410-$430 million and adjusted EPS of $5.45-$5.60.
SPX Technologies (NYSE:SPXC) ha riportato risultati solidi per il terzo trimestre 2024, con un fatturato di $483,7 milioni, rispetto ai $448,7 milioni del terzo trimestre 2023. L'utile operativo ha raggiunto $78,9 milioni, rispetto ai $57,7 milioni dell'anno scorso. L'azienda ha ottenuto un significativo ampliamento dei margini sia nel segmento HVAC che in quello di Rilevamento e Misurazione. L'EPS GAAP del terzo trimestre è stato di $1,08, mentre l'EPS rettificato ha raggiunto $1,39. Il fatturato del segmento HVAC è aumentato del 15,9% raggiungendo $335,3 milioni, mentre il fatturato del segmento di Rilevamento e Misurazione è diminuito del 7% a $148,4 milioni. L'azienda mantiene le previsioni per l'intero anno 2024 con un EBITDA rettificato di $410-$430 milioni e un EPS rettificato di $5,45-$5,60.
SPX Technologies (NYSE:SPXC) informó resultados sólidos en el tercer trimestre de 2024, con ingresos de $483,7 millones, un aumento respecto a los $448,7 millones en el tercer trimestre de 2023. El ingreso operativo alcanzó $78,9 millones, en comparación con $57,7 millones del año pasado. La compañía logró una expansión significativa de márgenes en los segmentos HVAC y Detección y Medición. El EPS GAAP del tercer trimestre fue de $1,08, mientras que el EPS ajustado alcanzó $1,39. Los ingresos del segmento HVAC crecieron un 15,9% a $335,3 millones, mientras que los ingresos de Detección y Medición disminuyeron un 7% a $148,4 millones. La compañía mantiene su guía para todo el año 2024 con un EBITDA ajustado de $410-$430 millones y un EPS ajustado de $5,45-$5,60.
SPX Technologies (NYSE:SPXC)는 2024년 3분기 강력한 실적을 발표했으며, 매출은 $483.7 million으로, 2023년 3분기의 $448.7 million에서 증가했습니다. 운영 수익은 $78.9 million에 도달했으며, 작년의 $57.7 million과 비교됩니다. 회사는 HVAC 및 탐지 및 측정 부문에서 상당한 마진 확장을 달성했습니다. 3분기 GAAP EPS는 $1.08이며, 조정 EPS는 $1.39에 도달했습니다. HVAC 부문의 매출은 15.9% 증가하여 $335.3 million에 이르렀고, 탐지 및 측정 부문의 매출은 7% 감소하여 $148.4 million에 도달했습니다. 회사는 2024년 전체 연도에 대해 $410-$430 million의 조정 EBITDA와 $5.45-$5.60의 조정 EPS 가이드를 유지하고 있습니다.
SPX Technologies (NYSE:SPXC) a annoncé des résultats solides pour le troisième trimestre 2024, avec des revenus de $483,7 millions, en hausse par rapport à $448,7 millions au troisième trimestre 2023. Le résultat opérationnel a atteint $78,9 millions, contre $57,7 millions l'année dernière. La société a réalisé une expansion significative des marges dans les segments CVC et Détection & Mesure. Le BAIIA GAAP du troisième trimestre était de $1,08, tandis que le BAIIA ajusté a atteint $1,39. Les revenus du segment CVC ont augmenté de 15,9% pour atteindre $335,3 millions, tandis que les revenus de Détection & Mesure ont diminué de 7% à $148,4 millions. La société maintient ses prévisions pour l'année 2024 d'un EBITDA ajusté de $410-$430 millions et d'un EPS ajusté de $5,45-$5,60.
SPX Technologies (NYSE:SPXC) hat starke Ergebnisse für das dritte Quartal 2024 gemeldet, mit einem Umsatz von $483,7 Millionen, ein Anstieg von $448,7 Millionen im dritten Quartal 2023. Das Betriebsgewinn erreichte $78,9 Millionen, im Vergleich zu $57,7 Millionen im letzten Jahr. Das Unternehmen erreichte eine signifikante Margenausweitung in den Segmenten HVAC sowie Detektion & Messung. GAAP EPS im dritten Quartal betrug $1,08, während das bereinigte EPS $1,39 erreichte. Der Umsatz im HVAC-Segment wuchs um 15,9% auf $335,3 Millionen, während der Umsatz im Segment Detektion & Messung um 7% auf $148,4 Millionen fiel. Das Unternehmen hält an der Jahresprognose 2024 fest, die ein bereinigtes EBITDA von $410-$430 Millionen und ein bereinigtes EPS von $5,45-$5,60 umfasst.
- Revenue increased 7.8% YoY to $483.7 million in Q3 2024
- Operating income grew 36.7% YoY to $78.9 million
- HVAC segment revenue increased 15.9% with 370 basis points margin expansion
- Adjusted EBITDA grew 27% YoY to $104.0 million
- Detection & Measurement segment margins improved by 190 basis points
- Detection & Measurement segment revenue declined 7% YoY
- Total debt stands at $737.8 million as of September 28, 2024
- Company narrowed full-year revenue guidance range downward
Insights
SPX Technologies delivered strong Q3 2024 results with notable improvements across key metrics.
The company's financial position remains solid with
The operational improvements and margin expansion in both key segments reflect successful execution of strategic initiatives. The HVAC segment's organic growth of
The company's focus on sustainability and continuous improvement initiatives positions it well in the current market environment. The successful integration of the Ingénia acquisition and operational efficiency gains demonstrate effective capital allocation and execution capabilities. The robust order pipeline and margin improvements suggest sustained momentum into Q4 2024.
Q3 GAAP EPS of
Significant Margin Expansion in Both HVAC and Detection & Measurement Segments
Well-Positioned to Achieve Full-Year 2024 Guidance
CHARLOTTE, N.C., Oct. 30, 2024 (GLOBE NEWSWIRE) -- SPX Technologies, Inc. (NYSE:SPXC) (“SPX”, the “Company”, “we” or “our”) today reported results for the third quarter ended September 28, 2024.
Gene Lowe, President and CEO, remarked, “I am pleased with our Q3 financial results, which include solid growth in company revenue and substantial margin expansion in both our HVAC and Detection & Measurement segments.”
Mr. Lowe continued, “We continue to make significant progress on our sustainability initiative, including reducing carbon intensity levels ahead of schedule and introducing numerous innovative climate conscious solutions. We also further advanced our continuous improvement initiative, which is driving increased production throughput and efficiency.”
Mr. Lowe commented further, “Our businesses continue to execute well operationally, and demand remains solid in our HVAC and Detection & Measurement segments. We are well positioned to achieve our full-year guidance, including Adjusted EBITDA* growth of approximately
Third Quarter 2024 Overview:
For the third quarter of 2024, the company reported revenue of
For the third quarter of 2024, Adjusted EBITDA* was
Third Quarter and Year-to-Date Financial Comparisons:
($ millions) | Q3 2024 | Q3 2023 | 2024 YTD | 2023 YTD | |||||||||
Revenue | $ | 483.7 | $ | 448.7 | $ | 1,450.2 | $ | 1,271.8 | |||||
Consolidated operating income | 78.9 | 57.7 | 218.1 | 158.8 | |||||||||
Income from continuing operations | 50.9 | 35.7 | 145.3 | 113.1 | |||||||||
Net income | 50.2 | (20.4 | ) | 143.4 | 58.4 |
Consolidated segment income* | 113.8 | 91.6 | 331.2 | 250.4 | ||||||||
Adjusted operating income* | 97.5 | 75.8 | 284.7 | 203.5 | ||||||||
Adjusted EBITDA* | 104.0 | 81.9 | 304.9 | 219.7 |
* 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 third quarter of 2024 was
Segment income in the third quarter of 2024 was
Detection & Measurement Segment
Revenue for the third quarter of 2024 was
Segment income for the third quarter of 2024 was
Financial Update: As of September 28, 2024, SPX Technologies had total outstanding debt of
2024 Guidance Update:
SPX continues to target full-year 2024 guidance for adjusted EBITDA* in a range of
Segment and company performance is expected to be as follows:
Revenue | Segment Income Margin % | |||
HVAC | ( | |||
Detection & Measurement | (unchanged) | ( | ||
Total SPX | ( | ( |
Form 10-Q: The company expects to file its quarterly report on Form 10-Q for the quarter ended September 28, 2024 with the Securities and Exchange Commission on or before November 7, 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 Technologies will host a conference call at 4:45 p.m. (EDT) today to discuss third 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: 1-833-630-1956
From outside the United States: +1-412-317-1837
Those interested in participating should dial in five minutes prior to the start time and ask to be connected to the SPX Technologies call.
Call replay:
Dial in: 1-877-344-7529
From outside the United States: 1-412-317-0088
Replay Access Code: 4037679
Upcoming Investor Events: Company management plans to meet with investors during the fourth quarter of 2024 and the company will also be participating in the Baird Industrials Conference on November 13th in Chicago, the Wolfe Research Small and Mid-Cap Conference on December 4th in New York City, and virtually in the Sidoti Small Cap Conference on December 5th.
About SPX Technologies, Inc.: 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 Financial Information: 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 third quarter, the impact of foreign exchange rate changes subsequent to the end of the third 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 and Quarterly Report on Form 10-Q. 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 of claims resolutions 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 | Nine months ended | ||||||||||||||
September 28, 2024 | September 30, 2023 | September 28, 2024 | September 30, 2023 | ||||||||||||
Revenues | $ | 483.7 | $ | 448.7 | $ | 1,450.2 | $ | 1,271.8 | |||||||
Costs and expenses: | |||||||||||||||
Cost of products sold | 286.1 | 280.1 | 868.9 | 789.7 | |||||||||||
Selling, general and administrative | 101.6 | 96.3 | 305.7 | 290.9 | |||||||||||
Intangible amortization | 16.6 | 14.6 | 48.2 | 32.4 | |||||||||||
Special charges, net | 0.5 | — | 0.9 | — | |||||||||||
Other operating expense, net | — | — | 8.4 | — | |||||||||||
Operating income | 78.9 | 57.7 | 218.1 | 158.8 | |||||||||||
Other income (expense), net | (1.4 | ) | (0.2 | ) | (7.1 | ) | 2.3 | ||||||||
Interest expense | (12.1 | ) | (10.2 | ) | (34.7 | ) | (18.0 | ) | |||||||
Interest income | 0.6 | 0.8 | 1.2 | 1.5 | |||||||||||
Income from continuing operations before income taxes | 66.0 | 48.1 | 177.5 | 144.6 | |||||||||||
Income tax provision | (15.1 | ) | (12.4 | ) | (32.2 | ) | (31.5 | ) | |||||||
Income from continuing operations | 50.9 | 35.7 | 145.3 | 113.1 | |||||||||||
Income (loss) from discontinued operations, net of tax | — | — | — | — | |||||||||||
Loss on disposition of discontinued operations, net of tax | (0.7 | ) | (56.1 | ) | (1.9 | ) | (54.7 | ) | |||||||
Loss from discontinued operations, net of tax | (0.7 | ) | (56.1 | ) | (1.9 | ) | (54.7 | ) | |||||||
Net income (loss) | $ | 50.2 | $ | (20.4 | ) | $ | 143.4 | $ | 58.4 | ||||||
Basic income (loss) per share of common stock: | |||||||||||||||
Income from continuing operations | $ | 1.10 | $ | 0.78 | $ | 3.15 | $ | 2.49 | |||||||
Loss from discontinued operations, net of tax | (0.02 | ) | (1.23 | ) | (0.04 | ) | (1.21 | ) | |||||||
Net income (loss) per share | $ | 1.08 | $ | (0.45 | ) | $ | 3.11 | $ | 1.28 | ||||||
Weighted-average number of common shares outstanding — basic | 46.305 | 45.608 | 46.127 | 45.507 | |||||||||||
Diluted income (loss) per share of common stock: | |||||||||||||||
Income from continuing operations | $ | 1.08 | $ | 0.76 | $ | 3.09 | $ | 2.43 | |||||||
Loss from discontinued operations, net of tax | (0.02 | ) | (1.20 | ) | (0.04 | ) | (1.18 | ) | |||||||
Net income (loss) per share | $ | 1.06 | $ | (0.44 | ) | $ | 3.05 | $ | 1.25 | ||||||
Weighted-average number of common shares outstanding — diluted | 47.265 | 46.751 | 47.003 | 46.560 | |||||||||||
SPX TECHNOLOGIES, INC. AND SUBSIDIARIES | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(Unaudited; in millions) | |||||||
September 28, 2024 | December 31, 2023 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and equivalents | $ | 124.8 | $ | 99.4 | |||
Accounts receivable, net | 339.4 | 279.8 | |||||
Contract assets | 36.7 | 16.6 | |||||
Inventories, net | 297.7 | 276.7 | |||||
Other current assets | 29.0 | 37.1 | |||||
Total current assets | 827.6 | 709.6 | |||||
Property, plant and equipment: | |||||||
Land | 23.5 | 17.9 | |||||
Buildings and leasehold improvements | 121.6 | 73.4 | |||||
Machinery and equipment | 305.5 | 264.4 | |||||
450.6 | 355.7 | ||||||
Accumulated depreciation | (226.6 | ) | (215.2 | ) | |||
Property, plant and equipment, net | 224.0 | 140.5 | |||||
Goodwill | 854.3 | 704.8 | |||||
Intangibles, net | 730.7 | 680.8 | |||||
Other assets | 158.3 | 188.9 | |||||
Deferred income taxes | 2.3 | 4.0 | |||||
Assets of DBT and Heat Transfer | 8.8 | 11.1 | |||||
TOTAL ASSETS | $ | 2,806.0 | $ | 2,439.7 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 139.4 | $ | 118.7 | |||
Contract liabilities | 60.8 | 73.5 | |||||
Accrued expenses | 160.6 | 168.5 | |||||
Income taxes payable | 12.9 | 5.3 | |||||
Short-term debt | 48.4 | 17.9 | |||||
Current maturities of long-term debt | 24.2 | 17.3 | |||||
Total current liabilities | 446.3 | 401.2 | |||||
Long-term debt | 665.2 | 523.1 | |||||
Deferred and other income taxes | 107.3 | 77.0 | |||||
Other long-term liabilities | 215.0 | 204.1 | |||||
Liabilities of DBT and Heat Transfer | 14.0 | 39.7 | |||||
Total long-term liabilities | 1,001.5 | 843.9 | |||||
Stockholders' equity: | |||||||
Common stock | 0.5 | 0.5 | |||||
Paid-in capital | 1,367.7 | 1,353.6 | |||||
Retained earnings | 181.7 | 38.3 | |||||
Accumulated other comprehensive income | 260.4 | 261.1 | |||||
Common stock in treasury | (452.1 | ) | (458.9 | ) | |||
Total stockholders' equity | 1,358.2 | 1,194.6 | |||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 2,806.0 | $ | 2,439.7 | |||
SPX TECHNOLOGIES, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||
RESULTS OF REPORTABLE SEGMENTS | ||||||||||||||||||||||||||||||
(Unaudited; in millions) | ||||||||||||||||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||||||||||||||||
September 28, 2024 | September 30, 2023 | Δ | %/bps | September 28, 2024 | September 30, 2023 | Δ | %/bps | |||||||||||||||||||||||
HVAC reportable segment | ||||||||||||||||||||||||||||||
Revenues | $ | 335.3 | $ | 289.2 | $ | 46.1 | 15.9 | % | $ | 994.2 | $ | 809.8 | $ | 184.4 | 22.8 | % | ||||||||||||||
Gross profit | 129.3 | 101.8 | 27.5 | 379.0 | 289.2 | 89.8 | ||||||||||||||||||||||||
Selling, general and administrative expense | 49.3 | 43.5 | 5.8 | 146.9 | 128.0 | 18.9 | ||||||||||||||||||||||||
Income | $ | 80.0 | $ | 58.3 | $ | 21.7 | 37.2 | % | $ | 232.1 | $ | 161.2 | $ | 70.9 | 44.0 | % | ||||||||||||||
as a percent of revenues | 23.9 | % | 20.2 | % | 370bps | 23.3 | % | 19.9 | % | 340bps | ||||||||||||||||||||
Detection & Measurement reportable segment | ||||||||||||||||||||||||||||||
Revenues | $ | 148.4 | $ | 159.5 | $ | (11.1 | ) | (7.0 | )% | $ | 456.0 | $ | 462.0 | $ | (6.0 | ) | (1.3 | )% | ||||||||||||
Gross profit | 68.3 | 69.3 | (1.0 | ) | 204.1 | 196.5 | 7.6 | |||||||||||||||||||||||
Selling, general and administrative expense | 34.5 | 36.0 | (1.5 | ) | 105.0 | 107.3 | (2.3 | ) | ||||||||||||||||||||||
Income | $ | 33.8 | $ | 33.3 | $ | 0.5 | 1.5 | % | $ | 99.1 | $ | 89.2 | $ | 9.9 | 11.1 | % | ||||||||||||||
as a percent of revenues | 22.8 | % | 20.9 | % | 190bps | 21.7 | % | 19.3 | % | 240bps | ||||||||||||||||||||
Consolidated Revenues | $ | 483.7 | $ | 448.7 | $ | 35.0 | 7.8 | % | $ | 1,450.2 | $ | 1,271.8 | $ | 178.4 | 14.0 | % | ||||||||||||||
Consolidated Operating Income | 78.9 | 57.7 | 21.2 | 36.7 | % | 218.1 | 158.8 | 59.3 | 37.3 | % | ||||||||||||||||||||
as a percent of revenues | 16.3 | % | 12.9 | % | 340bps | 15.0 | % | 12.5 | % | 250bps | ||||||||||||||||||||
Consolidated Segment Income | 113.8 | 91.6 | 22.2 | 24.2 | % | 331.2 | 250.4 | 80.8 | 32.3 | % | ||||||||||||||||||||
as a percent of revenues | 23.5 | % | 20.4 | % | 310bps | 22.8 | % | 19.7 | % | 310bps | ||||||||||||||||||||
Consolidated operating income | $ | 78.9 | $ | 57.7 | $ | 21.2 | $ | 218.1 | $ | 158.8 | $ | 59.3 | ||||||||||||||||||
Exclude: | ||||||||||||||||||||||||||||||
Corporate expense | 12.4 | 13.0 | (0.6 | ) | 38.3 | 44.2 | (5.9 | ) | ||||||||||||||||||||||
Acquisition-related and other costs (1) | 1.4 | 2.9 | (1.5 | ) | 6.3 | 5.0 | 1.3 | |||||||||||||||||||||||
Long-term incentive compensation expense | 4.0 | 3.4 | 0.6 | 11.0 | 10.0 | 1.0 | ||||||||||||||||||||||||
Amortization of intangible assets (2) | 16.6 | 14.6 | 2.0 | 48.2 | 32.4 | 15.8 | ||||||||||||||||||||||||
Special charges, net | 0.5 | — | 0.5 | 0.9 | — | 0.9 | ||||||||||||||||||||||||
Other operating expense, net (3) | — | — | — | 8.4 | — | 8.4 | ||||||||||||||||||||||||
Consolidated segment income | $ | 113.8 | $ | 91.6 | $ | 22.2 | 24.2 | % | $ | 331.2 | $ | 250.4 | $ | 80.8 | 32.3 | % | ||||||||||||||
as a percent of revenues | 23.5 | % | 20.4 | % | 310bps | 22.8 | % | 19.7 | % | 310bps | ||||||||||||||||||||
(1) Represents integration costs incurred of | ||||||||||||||||||||||||||||||
(2) Represents amortization expense associated with acquired intangible assets. | ||||||||||||||||||||||||||||||
(3) Represents a charge of |
SPX TECHNOLOGIES, INC. AND SUBSIDIARIES | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||
(Unaudited; in millions) | |||||||||||||||
Three months ended | Nine months ended | ||||||||||||||
September 28, 2024 | September 30, 2023 | September 28, 2024 | September 30, 2023 | ||||||||||||
Cash flows from (used in) operating activities: | |||||||||||||||
Net income (loss) | $ | 50.2 | $ | (20.4 | ) | $ | 143.4 | $ | 58.4 | ||||||
Less: Loss from discontinued operations, net of tax | (0.7 | ) | (56.1 | ) | (1.9 | ) | (54.7 | ) | |||||||
Income from continuing operations | 50.9 | 35.7 | 145.3 | 113.1 | |||||||||||
Adjustments to reconcile income from continuing operations to net cash from operating activities: | |||||||||||||||
Special charges, net | 0.5 | — | 0.9 | — | |||||||||||
(Gain) loss on change in fair value of equity security | — | — | 4.2 | (3.6 | ) | ||||||||||
Deferred and other income taxes | 5.1 | (12.1 | ) | (5.5 | ) | (22.5 | ) | ||||||||
Depreciation and amortization | 23.5 | 19.7 | 67.9 | 46.4 | |||||||||||
Pension and other employee benefits | 2.9 | 2.5 | 9.8 | 8.2 | |||||||||||
Long-term incentive compensation | 4.0 | 3.4 | 11.0 | 10.0 | |||||||||||
Other, net | (1.2 | ) | (1.5 | ) | (4.2 | ) | (4.5 | ) | |||||||
Changes in operating assets and liabilities, net of effects from acquisitions and divestitures: | |||||||||||||||
Accounts receivable and other assets | (14.4 | ) | (21.6 | ) | (44.2 | ) | (16.7 | ) | |||||||
Inventories | (3.4 | ) | 5.4 | (14.1 | ) | (21.6 | ) | ||||||||
Accounts payable, accrued expenses and other | 9.2 | 13.9 | (23.8 | ) | 11.2 | ||||||||||
Cash spending on restructuring actions | (0.1 | ) | — | (0.9 | ) | — | |||||||||
Net cash from continuing operations | 77.0 | 45.4 | 146.4 | 120.0 | |||||||||||
Net cash used in discontinued operations | (25.6 | ) | (31.0 | ) | (27.0 | ) | (38.0 | ) | |||||||
Net cash from operating activities | 51.4 | 14.4 | 119.4 | 82.0 | |||||||||||
Cash flows from (used in) investing activities: | |||||||||||||||
Proceeds/borrowings related to company-owned life insurance policies, net | — | 1.6 | 42.9 | 2.6 | |||||||||||
Business acquisitions, net of cash acquired | 2.1 | (0.2 | ) | (292.0 | ) | (547.3 | ) | ||||||||
Capital expenditures | (7.9 | ) | (7.8 | ) | (28.2 | ) | (16.5 | ) | |||||||
Net cash used in continuing operations | (5.8 | ) | (6.4 | ) | (277.3 | ) | (561.2 | ) | |||||||
Net cash used in discontinued operations | — | — | — | — | |||||||||||
Net cash used in investing activities | (5.8 | ) | (6.4 | ) | (277.3 | ) | (561.2 | ) | |||||||
Cash flows from (used in) financing activities: | |||||||||||||||
Borrowings under senior credit facilities | 35.0 | 31.3 | 610.2 | 851.3 | |||||||||||
Repayments under senior credit facilities | (80.0 | ) | (35.0 | ) | (462.0 | ) | (455.0 | ) | |||||||
Borrowings under trade receivables arrangement | 85.0 | 20.0 | 217.0 | 81.0 | |||||||||||
Repayments under trade receivables arrangement | (93.0 | ) | (18.0 | ) | (186.0 | ) | (49.0 | ) | |||||||
Net repayments under other financing arrangements | — | (0.3 | ) | (0.8 | ) | (0.4 | ) | ||||||||
Minimum withholdings paid on behalf of employees for net share settlements, net of proceeds from the exercise of employee stock options | 2.0 | 0.9 | 1.1 | (1.5 | ) | ||||||||||
Financing fees paid | (2.6 | ) | — | (2.6 | ) | (1.3 | ) | ||||||||
Net cash from (used in) continuing operations | (53.6 | ) | (1.1 | ) | 176.9 | 425.1 | |||||||||
Net cash from discontinued operations | — | — | — | — | |||||||||||
Net cash from (used in) financing activities | (53.6 | ) | (1.1 | ) | 176.9 | 425.1 | |||||||||
Change in cash and equivalents due to changes in foreign currency exchange rates | 4.4 | (0.5 | ) | 5.5 | (1.0 | ) | |||||||||
Net change in cash and equivalents | (3.6 | ) | 6.4 | 24.5 | (55.1 | ) | |||||||||
Consolidated cash and equivalents, beginning of period | 133.0 | 95.6 | 104.9 | 157.1 | |||||||||||
Consolidated cash and equivalents, end of period | $ | 129.4 | $ | 102.0 | $ | 129.4 | $ | 102.0 |
Nine months ended | |||||
September 28, 2024 | September 30, 2023 | ||||
Components of cash and equivalents: | |||||
Cash and equivalents | $ | 124.8 | $ | 100.9 | |
Cash and equivalents included in assets of DBT and Heat Transfer | 4.6 | 1.1 | |||
Total cash and equivalents | $ | 129.4 | $ | 102.0 |
SPX TECHNOLOGIES, INC. AND SUBSIDIARIES | ||||||||||||||||||
CASH AND DEBT RECONCILIATION | ||||||||||||||||||
(Unaudited; in millions) | ||||||||||||||||||
Nine months ended | ||||||||||||||||||
September 28, 2024 | ||||||||||||||||||
Beginning cash and equivalents | $ | 104.9 | ||||||||||||||||
Cash from continuing operations | 146.4 | |||||||||||||||||
Capital expenditures | (28.2 | ) | ||||||||||||||||
Business acquisitions, net of cash acquired | (292.0 | ) | ||||||||||||||||
Proceeds/borrowings related to company-owned life insurance policies, net | 42.9 | |||||||||||||||||
Borrowings under senior credit facilities | 610.2 | |||||||||||||||||
Repayments under senior credit facilities | (462.0 | ) | ||||||||||||||||
Borrowings under trade receivables agreement | 217.0 | |||||||||||||||||
Repayments under trade receivables arrangement | (186.0 | ) | ||||||||||||||||
Net repayments under other financing arrangements | (0.8 | ) | ||||||||||||||||
Minimum withholdings paid on behalf of employees for net share settlements, net of proceeds from the exercise of employee stock options | 1.1 | |||||||||||||||||
Financing fees paid | (2.6 | ) | ||||||||||||||||
Cash used in discontinued operations | (27.0 | ) | ||||||||||||||||
Change in cash due to changes in foreign currency exchange rates | 5.5 | |||||||||||||||||
Ending cash and equivalents | $ | 129.4 | ||||||||||||||||
Debt at December 31, 2023 | Borrowings | Repayments | Other | Debt at September 28, 2024 | ||||||||||||||
Revolving loans | $ | — | $ | 610.2 | $ | (455.2 | ) | $ | — | $ | 155.0 | |||||||
Term loans | 541.6 | — | (6.8 | ) | — | 534.8 | ||||||||||||
Trade receivables financing arrangement | 16.0 | 217.0 | (186.0 | ) | — | 47.0 | ||||||||||||
Other indebtedness | 2.4 | 0.1 | (0.9 | ) | 0.7 | 2.3 | ||||||||||||
Less: Deferred financing costs associated with the term loans | (1.7 | ) | — | — | 0.4 | (1.3 | ) | |||||||||||
Totals | $ | 558.3 | $ | 827.3 | $ | (648.9 | ) | $ | 1.1 | $ | 737.8 |
SPX TECHNOLOGIES, INC. AND SUBSIDIARIES | |||||||
NON-GAAP RECONCILIATION - ORGANIC REVENUE | |||||||
HVAC AND DETECTION & MEASUREMENT REPORTABLE SEGMENTS | |||||||
(Unaudited) | |||||||
Three months ended September 28, 2024 | |||||||
HVAC | Detection & Measurement | ||||||
Net Revenue Growth (Decline) | 15.9 | % | (7.0 | ) | % | ||
Exclude: Foreign Currency | 0.1 | % | 0.8 | % | |||
Exclude: Acquisitions | 6.8 | % | — | % | |||
Organic Revenue Growth (Decline) | 9.0 | % | (7.8 | ) | % |
SPX TECHNOLOGIES, INC. AND SUBSIDIARIES | ||||||||||||||||
NON-GAAP RECONCILIATION - ADJUSTED OPERATING INCOME | ||||||||||||||||
(Unaudited; in millions) | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
September 28, 2024 | September 30, 2023 | September 28, 2024 | September 30, 2023 | |||||||||||||
Operating income | $ | 78.9 | $ | 57.7 | $ | 218.1 | $ | 158.8 | ||||||||
Include - TSA Income (1) | — | 0.1 | — | 0.3 | ||||||||||||
Exclude: | ||||||||||||||||
Acquisition-related and other costs (2) | (2.0 | ) | (3.4 | ) | (10.0 | ) | (12.0 | ) | ||||||||
Other operating expense, net (3) | — | — | (8.4 | ) | — | |||||||||||
Amortization of acquired intangible assets | (16.6 | ) | (14.6 | ) | (48.2 | ) | (32.4 | ) | ||||||||
Adjusted operating income | $ | 97.5 | $ | 75.8 | $ | 284.7 | $ | 203.5 | ||||||||
as a percent of revenues | 20.2 | % | 16.9 | % | 19.6 | % | 16.0 | % | ||||||||
(1) Represents transition services income related to the Asbestos Portfolio Sale for the three and nine months ended September 30, 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 and nine months ended September 28, 2024, represents (i) certain acquisition and strategic/transformation related costs of | ||||||||||||||||
(3) For the nine months ended September 30, 2024, represents a charge of | ||||||||||||||||
SPX TECHNOLOGIES, INC. AND SUBSIDIARIES | |||||||||||
NON-GAAP RECONCILIATION - EARNINGS PER SHARE | |||||||||||
Three Months Ended September 28, 2024 | |||||||||||
(Unaudited; in millions, except per share values) | |||||||||||
GAAP | Adjustments | Adjusted | |||||||||
Segment income | $ | 113.8 | $ | — | $ | 113.8 | |||||
Corporate expense (1) | (12.4 | ) | 0.6 | (11.8 | ) | ||||||
Acquisition-related costs (2) | (1.4 | ) | 1.4 | — | |||||||
Long-term incentive compensation expense | (4.0 | ) | — | (4.0 | ) | ||||||
Amortization of intangible assets (3) | (16.6 | ) | 16.6 | — | |||||||
Special charges, net | (0.5 | ) | — | (0.5 | ) | ||||||
Operating income | 78.9 | 18.6 | 97.5 | ||||||||
Other expense, net (4) | (1.4 | ) | 1.0 | (0.4 | ) | ||||||
Interest expense, net | (11.5 | ) | — | (11.5 | ) | ||||||
Income from continuing operations before income taxes | 66.0 | 19.6 | 85.6 | ||||||||
Income tax provision (5) | (15.1 | ) | (4.6 | ) | (19.7 | ) | |||||
Income from continuing operations | 50.9 | 15.0 | 65.9 | ||||||||
Diluted shares outstanding | 47.265 | 47.265 | |||||||||
Earnings per share from continuing operations | $ | 1.08 | $ | 1.39 | |||||||
(1) Adjustment represents the removal of certain acquisition and strategic/transformation related costs ( | |||||||||||
(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 non-service pension and postretirement charges of | |||||||||||
(5) Adjustment primarily represents the tax impact of items (1) through (4) above. | |||||||||||
SPX TECHNOLOGIES, INC. AND SUBSIDIARIES | |||||||||||
NON-GAAP RECONCILIATION - EARNINGS PER SHARE | |||||||||||
Three Months Ended September 30, 2023 | |||||||||||
(Unaudited; in millions, except per share values) | |||||||||||
GAAP | Adjustments | Adjusted | |||||||||
Segment income | $ | 91.6 | $ | — | $ | 91.6 | |||||
Corporate expense (1) | (13.0 | ) | 0.6 | (12.4 | ) | ||||||
Acquisition-related and other costs (2) | (2.9 | ) | 2.9 | — | |||||||
Long-term incentive compensation expense | (3.4 | ) | — | (3.4 | ) | ||||||
Amortization of intangible assets (3) | (14.6 | ) | 14.6 | — | |||||||
Operating income | 57.7 | 18.1 | 75.8 | ||||||||
Other income (expense), net (4) | (0.2 | ) | 1.2 | 1.0 | |||||||
Interest expense, net | (9.4 | ) | — | (9.4 | ) | ||||||
Income from continuing operations before income taxes | 48.1 | 19.3 | 67.4 | ||||||||
Income tax provision (5) | (12.4 | ) | (5.6 | ) | (18.0 | ) | |||||
Income from continuing operations | 35.7 | 13.7 | 49.4 | ||||||||
Diluted shares outstanding | 46.751 | 46.751 | |||||||||
Earnings per share from continuing operations | $ | 0.76 | $ | 1.06 | |||||||
(1) Adjustment represents the removal of certain acquisition and strategic/transformation related expenses of | |||||||||||
(2) Adjustment represents the removal of (i) an inventory step-up charge of | |||||||||||
(3) Adjustment represents the removal of amortization expense associated with acquired intangible assets of | |||||||||||
(4) Adjustment represents the removal of (i) non-service pension and postretirement charges of | |||||||||||
(5) Adjustment primarily represents the tax impact of items (1) through (4) above. | |||||||||||
SPX TECHNOLOGIES, INC. AND SUBSIDIARIES | ||||||||
NON-GAAP RECONCILIATION - ADJUSTED EBITDA | ||||||||
(Unaudited; in millions) | ||||||||
Three months ended | ||||||||
September 28, 2024 | September 30, 2023 | |||||||
Net income (loss) | $ | 50.2 | $ | (20.4 | ) | |||
Exclude: | ||||||||
Income tax provision | (15.1 | ) | (12.4 | ) | ||||
Interest expense, net | (11.5 | ) | (9.4 | ) | ||||
Amortization expense (1) | (16.8 | ) | (14.6 | ) | ||||
Depreciation expense | (6.7 | ) | (5.1 | ) | ||||
Loss from discontinued operations, net of tax | (0.7 | ) | (56.1 | ) | ||||
EBITDA | 101.0 | 77.2 | ||||||
Exclude: | ||||||||
Acquisition-related and other costs (2) | (2.0 | ) | (3.4 | ) | ||||
Non-service pension and postretirement charges | (1.0 | ) | (1.2 | ) | ||||
Asbestos-related charges (3) | — | (0.1 | ) | |||||
Adjusted EBITDA | $ | 104.0 | $ | 81.9 | ||||
as a percent of revenues | 21.5 | % | 18.3 | % | ||||
(1) Represents amortization expense associated with acquired intangible assets recorded within “Intangible amortization” and amortization of capitalized software costs recorded within “Cost of products sold.” | ||||||||
(2) For the three months ended September 28, 2024 and September 30, 2023, represents (i) certain acquisition and strategic/transformation related costs of | ||||||||
(3) Adjustment represents the removal of charges related to the Asbestos Portfolio Sale. |
SPX TECHNOLOGIES, INC. AND SUBSIDIARIES | ||||||||
NON-GAAP RECONCILIATION - ADJUSTED EBITDA | ||||||||
(Unaudited; in millions) | ||||||||
Nine months ended | ||||||||
September 28, 2024 | September 30, 2023 | |||||||
Net income | $ | 143.4 | $ | 58.4 | ||||
Exclude: | ||||||||
Income tax provision | (32.2 | ) | (31.5 | ) | ||||
Interest expense, net | (33.5 | ) | (16.5 | ) | ||||
Amortization expense (1) | (48.4 | ) | (32.4 | ) | ||||
Depreciation expense | (19.5 | ) | (14.0 | ) | ||||
Loss from discontinued operations, net of tax | (1.9 | ) | (54.7 | ) | ||||
EBITDA | 278.9 | 207.5 | ||||||
Exclude: | ||||||||
Acquisition-related and other costs (2) | (10.0 | ) | (12.0 | ) | ||||
Other operating expense, net (3) | (8.4 | ) | — | |||||
Non-service pension and postretirement charges | (3.4 | ) | (3.6 | ) | ||||
Fair value adjustments on an equity security | (4.2 | ) | 3.6 | |||||
Asbestos-related charges (4) | — | (0.2 | ) | |||||
Adjusted EBITDA | $ | 304.9 | $ | 219.7 | ||||
as a percent of revenues | 21.0 | % | 17.3 | % | ||||
(1) Represents amortization expense associated with acquired intangible assets recorded within “Intangible amortization” and amortization of capitalized software costs recorded within “Cost of products sold.” | ||||||||
(2) For the nine months ended September 28, 2024 and September 30, 2023, represents (i) certain acquisition and strategic/transformation related costs of | ||||||||
(3) Represents a charge of | ||||||||
(4) Adjustment represents the removal of charges related to the Asbestos Portfolio Sale. |
FAQ
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