CHARLOTTE, N.C., July 29, 2015 /PRNewswire/ -- SPX Corporation
(NYSE: SPW) today reported results for the quarter ended
June 27, 2015.
Second Quarter 2015 Overview:
- Revenues declined 10.1% to $1.1
billion from $1.2 billion in
the year-ago quarter. The impact of the stronger U.S. Dollar on
foreign currencies decreased revenues by 6.5%. Organic revenues*
decreased 3.6%, due primarily to lower power and energy revenue in
the Flow and Thermal segments, largely reflecting the impact of
lower oil prices on customers' capital spending decisions and
on-going weakness in power generation markets.
- Segment income and margins declined to $106.1 million and 9.9%, compared to $127.9 million and 10.7% in the year-ago quarter,
due primarily to the organic revenue decline.
- Diluted net income per share from continuing operations was
$0.96 in Q2 2015 as compared to
diluted net income of $1.32 per share
in Q2 2014.
- The Q2 2015 results included $0.10 per share of costs associated with the
planned spin-off of the Flow business.
- Net cash from continuing operations was $10.6 million, compared to a net cash usage of
$38.8 million in Q2 2014, which
included $114.0 million of income tax
payments associated with gains on asset sales.
- Free cash flow used in continuing operations* was $4.4 million, compared to $51.1 million in Q2 2014.
"Our Q2 results reflect the challenging demand environment
across our energy and industrial markets, as well as the impact of
the stronger U.S. dollar versus the prior year. These
headwinds were partially offset by a second consecutive quarter of
strong improvement in our Food and Beverage business which reported
8.1% organic revenue growth and 320 points of operating margin
improvement year-over-year," said Chris
Kearney, Chairman, President and CEO of SPX.
"Given the on-going challenges in our power and energy
businesses, we continue to focus on actions to aggressively manage
our cost structure and drive improved productivity. We have
identified additional structural actions for this year that are
expected to improve the cost position at both future companies in
2016 and beyond."
"For the full year, we have narrowed our target ranges for
revenue and EBITDA(1). We now anticipate revenue
to decline 7 to 9 percent, including a 5 percent currency headwind,
with EBITDA(1) in the range of $500 to $520 million versus our previous target
of $500 to $540 million," said
Kearney.
"From a strategic perspective, we remain on track to complete
the spin-off of our Flow business towards the end of the third
quarter. We believe this is a unique opportunity to create
value for our shareholders at both future companies, SPX FLOW, Inc.
and the new SPX Corporation."
2015 Financial Modeling Approach:
The company updated its 2015 financial modeling targets for
revenue, segment income, EBITDA(1) and other reasonably
predictable items. SPX management does not believe it is
useful to provide 2015 EPS guidance given its plan to complete the
spin-off of its Flow business in Q3 2015 and the uncertain timing
of related financial impacts.
Updated 2015 Financial Modeling Targets:
Total revenues vs.
2014
|
(7%) to
(9%)
|
Currency impact to
revenues
|
~(5%)
|
Organic
revenues
|
(2%) to
(4%)
|
Special Charges
(Restructuring)
|
$35m to
$40m
|
Consolidated EBITDA
(1)
|
$500m to
$520m
|
Flow Technology
Revenues for Q2 2015 were $578.0
million, compared to $661.4
million in Q2 2014, a decrease of $83.4 million, or 12.6%. Currency
fluctuations decreased revenues 8.4%, or $55.6 million, and organic revenues* declined
4.2%, or $27.8 million. The decrease
in organic revenues was due primarily to a 22.2% organic decline in
power and energy sales, largely reflecting the impact of lower oil
prices. This decline was partially offset by 8.1% organic
growth in food and beverage sales and 5.3% organic growth across
industrial markets.
Segment income was $75.9 million,
or 13.1% of revenues, in Q2 2015, compared to $88.3 million, or 13.4% of revenues, in Q2 2014.
Segment income and margin were lower versus the prior year due
primarily to currency fluctuations and the organic decline in power
and energy revenues, partially offset by improved operational
performance within the food and beverage business, as well as cost
reductions associated with restructuring actions.
Thermal Equipment and Services
Revenues for Q2 2015 were $298.0
million, compared to $327.3
million in Q2 2014, a decrease of $29.3 million, or 9.0%. Currency
fluctuations decreased revenues 5.3%, or $17.5 million, and organic revenues* declined
3.7%, or $11.8 million. The
organic revenue decline was concentrated in power generation
markets and due primarily to lower sales of heat exchangers in
Asia Pacific and cooling
equipment in the Americas.
Segment income was $6.1 million,
or 2.0% of revenues, in Q2 2015, compared to $9.5 million, or 2.9% of revenues, in Q2
2014. The decrease in segment income and margin was due
primarily to the revenue decline described above.
Industrial Products and Services and Other
Revenues for Q2 2015 were $198.4
million, compared to $206.4
million in Q2 2014, a decline of $8.0
million, or 3.9%. Organic revenues* declined 2.0%,
while currency fluctuations decreased revenues by 1.9%. The
organic revenue decline was due primarily to lower sales of
hydraulic technologies, fare collection systems and communication
technologies, partially offset by an increase in sales of power
transformers.
Segment income was $24.1 million,
or 12.1% of revenues, in Q2 2015, compared to $30.1 million, or 14.6% of revenues, in Q2
2014. The decline in segment income and margin was due
primarily to the revenue decline described above and an unfavorable
sales mix.
OTHER ITEMS
Dividend: On May 28, 2015, the company announced that its
Board of Directors declared a quarterly dividend of $0.375 per common share to shareholders of record
on June 16, 2015, which was paid on
July 1, 2015. In anticipation
of the pending spin-off of SPX FLOW, Inc., the second quarter
dividend payment is expected to be the final cash dividend payment
by the combined company. At this time, SPX Corporation does
not expect to pay a cash dividend for the foreseeable future.
Form 10-Q: The company expects to file its
quarterly report on Form 10-Q for the quarter ended June 27, 2015 with the Securities and Exchange
Commission no later than August 6,
2015. 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.
About SPX: Based in Charlotte, North Carolina, SPX Corporation
(NYSE: SPW) is a global multi-industry manufacturing leader with
approximately $4.5 billion in annual
revenue, operations in more than 35 countries and over 14,000
employees. The company's highly-specialized, engineered products
and technologies are concentrated in flow technology and energy
infrastructure. Many of SPX's innovative solutions are playing a
role in helping to meet rising global demand for electricity and
processed foods and beverages. The company's products include food
processing systems, critical flow components for oil and gas
processing, power transformers for utility companies, and cooling
systems for power plants. For more information, please visit
www.spx.com.
*Non-GAAP number. See attached schedules for reconciliation to
most comparable GAAP number.
(1) Consolidated EBITDA as defined by SPX's credit
facilities*
Certain statements in this press release are forward-looking
statements within the meaning of 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 annual reports on Form 10-K,
and any amendments thereto, and quarterly reports 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. Actual results may
differ materially from these statements. The words "expect,"
"anticipate," "project" and similar expressions identify
forward-looking statements. Although the company believes that the
expectations reflected in its forward-looking statements are
reasonable, it can give no assurance that such expectations will
prove to be correct. In addition, estimates of future operating
results are based on the company's current complement of
businesses, which is subject to change. Also, there can be no
assurance as to when the company's planned spin-off will be
completed, if at all, or if the spin-off will be completed in the
form contemplated. Even if the transaction is completed as
and on the timetable currently contemplated, the two
publicly-traded companies may not realize some or all projected
benefits, or expenses relating to the spin-off may be significantly
higher than projected. Following completion of the spin-off,
there can be no guarantee the combined value of the common stock of
the two publicly traded companies will equal or exceed the value of
our stock had the spin-off not occurred. 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.
SPX CORPORATION
AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Unaudited; in
millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
June 27,
2015
|
|
|
June 28,
2014
|
|
June 27,
2015
|
|
|
June 28,
2014
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
1,074.4
|
|
|
$
1,195.1
|
|
$
2,021.3
|
|
|
$
2,272.2
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
Cost of products sold
|
768.2
|
|
|
847.9
|
|
1,453.2
|
|
|
1,623.5
|
Selling, general and administrative
|
228.9
|
|
|
244.4
|
|
462.1
|
|
|
511.9
|
Intangible amortization
|
7.1
|
|
|
8.3
|
|
14.4
|
|
|
16.6
|
Special charges, net
|
6.1
|
|
|
4.5
|
|
12.7
|
|
|
14.5
|
Operating
income
|
64.1
|
|
|
90.0
|
|
78.9
|
|
|
105.7
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense), net
|
-
|
|
|
(1.2)
|
|
0.8
|
|
|
489.4
|
Interest
expense
|
(18.2)
|
|
|
(16.3)
|
|
(35.0)
|
|
|
(35.6)
|
Interest
income
|
0.9
|
|
|
2.3
|
|
2.0
|
|
|
4.5
|
Loss on early
extinguishment of debt
|
-
|
|
|
-
|
|
-
|
|
|
(32.5)
|
Equity earnings in
joint ventures
|
0.5
|
|
|
0.5
|
|
0.5
|
|
|
0.5
|
Income from continuing operations before income taxes
|
47.3
|
|
|
75.3
|
|
47.2
|
|
|
532.0
|
Income tax
provision
|
(10.4)
|
|
|
(18.6)
|
|
(19.9)
|
|
|
(178.6)
|
Income from continuing operations
|
36.9
|
|
|
56.7
|
|
27.3
|
|
|
353.4
|
|
|
|
|
|
|
|
|
|
|
Loss from
discontinued operations, net of tax
|
-
|
|
|
(0.6)
|
|
-
|
|
|
(0.5)
|
Gain (loss) on
disposition of discontinued operations, net of tax
|
(0.5)
|
|
|
(6.1)
|
|
(0.9)
|
|
|
14.9
|
Income (loss) from discontinued operations, net of tax
|
(0.5)
|
|
|
(6.7)
|
|
(0.9)
|
|
|
14.4
|
|
|
|
|
|
|
|
|
|
|
Net income
|
36.4
|
|
|
50.0
|
|
26.4
|
|
|
367.8
|
Less: Net loss
attributable to noncontrolling interests
|
(2.5)
|
|
|
(1.2)
|
|
(5.4)
|
|
|
(1.6)
|
Net income
attributable to SPX Corporation common shareholders
|
$
38.9
|
|
|
$
51.2
|
|
$
31.8
|
|
|
$
369.4
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable
to SPX Corporation common shareholders:
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations, net of tax
|
$
39.4
|
|
|
$
57.9
|
|
$
32.7
|
|
|
$
355.0
|
Income (loss)
from discontinued operations, net of tax
|
(0.5)
|
|
|
(6.7)
|
|
(0.9)
|
|
|
14.4
|
Net
income
|
$
38.9
|
|
|
$
51.2
|
|
$
31.8
|
|
|
$
369.4
|
|
|
|
|
|
|
|
|
|
|
Basic income per
share of common stock:
|
|
|
|
|
|
|
|
|
|
Income from continuing operations attributable to SPX Corporation
common shareholders
|
$
0.97
|
|
|
$
1.34
|
|
$
0.81
|
|
|
$
8.13
|
Income (loss) from discontinued operations attributable to SPX
Corporation common shareholders
|
(0.01)
|
|
|
(0.15)
|
|
(0.03)
|
|
|
0.33
|
Net income per share
attributable to SPX Corporation common shareholders
|
$
0.96
|
|
|
$
1.19
|
|
$
0.78
|
|
|
$
8.46
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding - basic
|
40.602
|
|
|
43.068
|
|
40.553
|
|
|
43.649
|
|
|
|
|
|
|
|
|
|
|
Diluted income per
share of common stock:
|
|
|
|
|
|
|
|
|
|
Income from continuing operations attributable to SPX Corporation
common shareholders
|
$
0.96
|
|
|
$
1.32
|
|
$
0.80
|
|
|
$
7.98
|
Income (loss) from discontinued operations attributable to SPX
Corporation common shareholders
|
(0.01)
|
|
|
(0.15)
|
|
(0.02)
|
|
|
0.32
|
Net income per share
attributable to SPX Corporation common shareholders
|
$
0.95
|
|
|
$
1.17
|
|
$
0.78
|
|
|
$
8.30
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding - diluted
|
40.917
|
|
|
43.900
|
|
40.854
|
|
|
44.487
|
SPX
CORPORATION AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited;
in millions)
|
|
|
|
|
|
|
|
June 27,
2015
|
|
|
December 31,
2014
|
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and equivalents
|
$
328.9
|
|
|
$
427.6
|
|
Accounts receivable, net
|
1,081.8
|
|
|
1,067.4
|
|
Inventories, net
|
546.7
|
|
|
497.8
|
|
Other current assets
|
171.5
|
|
|
98.5
|
|
Deferred income taxes
|
124.3
|
|
|
123.8
|
|
Total current
assets
|
2,253.2
|
|
|
2,215.1
|
|
Property, plant
and equipment:
|
|
|
|
|
|
Land
|
54.9
|
|
|
56.4
|
|
Buildings and leasehold improvements
|
353.6
|
|
|
361.8
|
|
Machinery and equipment
|
846.6
|
|
|
825.9
|
|
|
1,255.1
|
|
|
1,244.1
|
|
Accumulated depreciation
|
(591.3)
|
|
|
(573.2)
|
|
Property, plant and equipment, net
|
663.8
|
|
|
670.9
|
|
Goodwill
|
1,416.1
|
|
|
1,455.4
|
|
Intangibles,
net
|
799.2
|
|
|
831.0
|
|
Other
assets
|
756.9
|
|
|
729.8
|
|
TOTAL
ASSETS
|
$
5,889.2
|
|
|
$
5,902.2
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts payable
|
$
461.7
|
|
|
$
462.0
|
|
Accrued expenses
|
852.1
|
|
|
892.3
|
|
Income taxes payable
|
42.1
|
|
|
43.7
|
|
Short-term debt
|
294.1
|
|
|
181.1
|
|
Current maturities of long-term debt
|
37.5
|
|
|
30.8
|
|
Total
current liabilities
|
1,687.5
|
|
|
1,609.9
|
|
|
|
|
|
|
|
Long-term
debt
|
1,143.3
|
|
|
1,157.8
|
|
Deferred and
other income taxes
|
292.2
|
|
|
294.9
|
|
Other long-term
liabilities
|
1,007.1
|
|
|
1,018.5
|
|
Total
long-term liabilities
|
2,442.6
|
|
|
2,471.2
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
SPX
Corporation shareholders' equity:
|
|
|
|
|
|
Common stock
|
1.0
|
|
|
1.0
|
|
Paid-in capital
|
2,635.8
|
|
|
2,608.0
|
|
Retained earnings
|
2,638.7
|
|
|
2,637.8
|
|
Accumulated other comprehensive income (loss)
|
(27.2)
|
|
|
62.6
|
|
Common stock in treasury
|
(3,487.0)
|
|
|
(3,491.5)
|
|
Total SPX Corporation
shareholders' equity
|
1,761.3
|
|
|
1,817.9
|
|
Noncontrolling interests
|
(2.2)
|
|
|
3.2
|
|
Total
equity
|
1,759.1
|
|
|
1,821.1
|
|
TOTAL LIABILITIES AND
EQUITY
|
$
5,889.2
|
|
|
$
5,902.2
|
|
|
|
|
|
|
|
SPX CORPORATION
AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited; in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
June 27,
2015
|
|
|
June 28,
2014
|
|
June 27,
2015
|
|
|
June 28,
2014
|
Cash flows from
(used in) operating activities:
|
|
|
|
|
|
|
|
|
|
Net income
|
$
36.4
|
|
|
$
50.0
|
|
$
26.4
|
|
|
$
367.8
|
Less: Income (loss)
from discontinued operations, net of tax
|
(0.5)
|
|
|
(6.7)
|
|
(0.9)
|
|
|
14.4
|
Income from
continuing operations
|
36.9
|
|
|
56.7
|
|
27.3
|
|
|
353.4
|
Adjustments to
reconcile income from continuing operations
|
|
|
|
|
|
|
|
|
|
to net cash
from (used in) operating activities:
|
|
|
|
|
|
|
|
|
|
Special
charges, net
|
6.1
|
|
|
4.5
|
|
12.7
|
|
|
14.5
|
(Gain)
loss on asset sales
|
(2.4)
|
|
|
0.4
|
|
(2.4)
|
|
|
(491.1)
|
Loss on
early extinguishment of debt
|
-
|
|
|
-
|
|
-
|
|
|
32.5
|
Deferred
and other income taxes
|
(12.9)
|
|
|
5.8
|
|
(13.2)
|
|
|
(52.5)
|
Depreciation and amortization
|
25.5
|
|
|
29.8
|
|
50.5
|
|
|
57.4
|
Pension
and other employee benefits
|
6.0
|
|
|
7.3
|
|
12.7
|
|
|
32.1
|
Stock-based compensation
|
5.5
|
|
|
4.6
|
|
29.1
|
|
|
29.3
|
Other,
net
|
0.4
|
|
|
(0.1)
|
|
2.3
|
|
|
0.1
|
Changes in operating
assets and liabilities, net of effects from
divestitures:
|
|
|
|
|
|
|
|
|
|
Accounts
receivable and other assets
|
(107.0)
|
|
|
35.3
|
|
(159.4)
|
|
|
12.9
|
Inventories
|
(17.1)
|
|
|
3.2
|
|
(61.5)
|
|
|
(47.2)
|
Accounts
payable, accrued expenses and other
|
74.7
|
|
|
(179.7)
|
|
13.2
|
|
|
(22.9)
|
Cash
spending on restructuring actions
|
(5.1)
|
|
|
(6.6)
|
|
(9.0)
|
|
|
(15.9)
|
Net cash from (used
in) continuing operations
|
10.6
|
|
|
(38.8)
|
|
(97.7)
|
|
|
(97.4)
|
Net cash used in
discontinued operations
|
(1.4)
|
|
|
(2.6)
|
|
(1.9)
|
|
|
(4.6)
|
Net cash from (used
in) operating activities
|
9.2
|
|
|
(41.4)
|
|
(99.6)
|
|
|
(102.0)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
(used in) investing activities:
|
|
|
|
|
|
|
|
|
|
Proceeds
from asset sales and other, net
|
3.6
|
|
|
5.5
|
|
3.6
|
|
|
581.2
|
Increase
in restricted cash
|
-
|
|
|
(0.6)
|
|
(0.1)
|
|
|
(0.7)
|
Capital
expenditures
|
(15.0)
|
|
|
(12.3)
|
|
(29.4)
|
|
|
(23.6)
|
Net cash from (used
in) continuing operations
|
(11.4)
|
|
|
(7.4)
|
|
(25.9)
|
|
|
556.9
|
Net cash from
discontinued operations
|
-
|
|
|
62.2
|
|
-
|
|
|
100.5
|
Net cash from (used
in) investing activities
|
(11.4)
|
|
|
54.8
|
|
(25.9)
|
|
|
657.4
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
(used in) financing activities:
|
|
|
|
|
|
|
|
|
|
Repurchase of senior notes (includes premiums paid of
$30.6)
|
-
|
|
|
-
|
|
-
|
|
|
(530.6)
|
Borrowings under senior credit facilities
|
129.0
|
|
|
157.0
|
|
325.0
|
|
|
157.0
|
Repayments under senior credit facilities
|
(105.2)
|
|
|
(20.0)
|
|
(224.2)
|
|
|
(20.0)
|
Borrowings under trade receivables agreement
|
25.0
|
|
|
-
|
|
95.0
|
|
|
-
|
Repayments under trade receivables agreement
|
(63.0)
|
|
|
-
|
|
(88.0)
|
|
|
-
|
Net
borrowings (repayments) under other financing
arrangements
|
2.0
|
|
|
1.3
|
|
(2.3)
|
|
|
(52.6)
|
Purchases of common stock
|
-
|
|
|
(140.1)
|
|
-
|
|
|
(274.4)
|
Minimum
withholdings paid on behalf of employees for net share settlements,
net
|
|
|
|
|
|
|
|
|
|
of
proceeds from the exercise of employee stock options and
other
|
(0.1)
|
|
|
(0.7)
|
|
(5.3)
|
|
|
(12.2)
|
Financing fees paid
|
-
|
|
|
-
|
|
-
|
|
|
(0.4)
|
Dividends paid
|
(15.0)
|
|
|
(16.9)
|
|
(30.6)
|
|
|
(28.6)
|
Net cash from (used
in) continuing operations
|
(27.3)
|
|
|
(19.4)
|
|
69.6
|
|
|
(761.8)
|
Net cash from
discontinued operations
|
-
|
|
|
-
|
|
-
|
|
|
-
|
Net cash from (used
in) financing activities
|
(27.3)
|
|
|
(19.4)
|
|
69.6
|
|
|
(761.8)
|
Change in cash and
equivalents due to changes in foreign currency exchange
rates
|
(4.7)
|
|
|
(13.8)
|
|
(42.8)
|
|
|
(19.2)
|
Net change in cash
and equivalents
|
(34.2)
|
|
|
(19.8)
|
|
(98.7)
|
|
|
(225.6)
|
Consolidated cash and
equivalents, beginning of period
|
363.1
|
|
|
486.0
|
|
427.6
|
|
|
691.8
|
Consolidated cash and
equivalents, end of period
|
$
328.9
|
|
|
$
466.2
|
|
$
328.9
|
|
|
$
466.2
|
|
|
|
|
|
|
|
|
|
|
SPX CORPORATION
AND SUBSIDIARIES
|
RESULTS OF
REPORTABLE SEGMENTS AND OTHER OPERATING SEGMENTS
|
(Unaudited; in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
|
Six months
ended
|
|
|
|
|
|
June 27,
2015
|
|
June 28,
2014
|
|
Increase
(Decrease)
|
%/bps
|
|
June 27,
2015
|
|
June 28,
2014
|
|
Increase
(Decrease)
|
%/bps
|
Flow Technology
reportable segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
578.0
|
|
$
661.4
|
|
$
(83.4)
|
-12.6%
|
|
$
1,108.8
|
|
$
1,278.1
|
|
$
(169.3)
|
-13.2%
|
Gross
profit
|
|
196.7
|
|
221.4
|
|
(24.7)
|
|
|
369.1
|
|
413.8
|
|
(44.7)
|
|
Selling, general and
administrative expense
|
|
115.1
|
|
126.4
|
|
(11.3)
|
|
|
222.4
|
|
245.9
|
|
(23.5)
|
|
Intangible
amortization expense
|
|
5.7
|
|
6.7
|
|
(1.0)
|
|
|
11.5
|
|
13.4
|
|
(1.9)
|
|
Income
|
|
$
75.9
|
|
$
88.3
|
|
$
(12.4)
|
-14.0%
|
|
$
135.2
|
|
$
154.5
|
|
$
(19.3)
|
-12.5%
|
as a
percent of revenues
|
|
13.1%
|
|
13.4%
|
|
|
-30
bps
|
|
12.2%
|
|
12.1%
|
|
|
10bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thermal Equipment
and Services reportable segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
298.0
|
|
$
327.3
|
|
$
(29.3)
|
-9.0%
|
|
$
545.2
|
|
$
606.9
|
|
$
(61.7)
|
-10.2%
|
Gross
profit
|
|
54.5
|
|
61.9
|
|
(7.4)
|
|
|
95.6
|
|
116.5
|
|
(20.9)
|
|
Selling, general and
administrative expense
|
|
47.3
|
|
51.1
|
|
(3.8)
|
|
|
90.1
|
|
95.2
|
|
(5.1)
|
|
Intangible
amortization expense
|
|
1.1
|
|
1.3
|
|
(0.2)
|
|
|
2.2
|
|
2.6
|
|
(0.4)
|
|
Income
|
|
$
6.1
|
|
$
9.5
|
|
$
(3.4)
|
-35.8%
|
|
$
3.3
|
|
$
18.7
|
|
$
(15.4)
|
-82.4%
|
as a
percent of revenues
|
|
2.0%
|
|
2.9%
|
|
|
-90bps
|
|
0.6%
|
|
3.1%
|
|
|
-250bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial
Products and Services and Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
198.4
|
|
$
206.4
|
|
$
(8.0)
|
-3.9%
|
|
$
367.3
|
|
$
387.2
|
|
$
(19.9)
|
-5.1%
|
Gross
profit
|
|
55.0
|
|
63.9
|
|
(8.9)
|
|
|
103.4
|
|
119.5
|
|
(16.1)
|
|
Selling, general and
administrative expense
|
|
30.6
|
|
33.5
|
|
(2.9)
|
|
|
59.6
|
|
65.5
|
|
(5.9)
|
|
Intangible
amortization expense
|
|
0.3
|
|
0.3
|
|
-
|
|
|
0.7
|
|
0.6
|
|
0.1
|
|
Income
|
|
$
24.1
|
|
$
30.1
|
|
$
(6.0)
|
-19.9%
|
|
$
43.1
|
|
$
53.4
|
|
$
(10.3)
|
-19.3%
|
as a
percent of revenues
|
|
12.1%
|
|
14.6%
|
|
|
-250bps
|
|
11.7%
|
|
13.8%
|
|
|
-210bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Revenues
|
|
$
1,074.4
|
|
$
1,195.1
|
|
$
(120.7)
|
-10.1%
|
|
$
2,021.3
|
|
$
2,272.2
|
|
$
(250.9)
|
-11.0%
|
Consolidated
Segment Income
|
|
106.1
|
|
127.9
|
|
(21.8)
|
-17.0%
|
|
181.6
|
|
226.6
|
|
(45.0)
|
-19.9%
|
as a
percent of revenues
|
|
9.9%
|
|
10.7%
|
|
|
-80bps
|
|
9.0%
|
|
10.0%
|
|
|
-100bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total income for
reportable and other operating segments
|
|
$
106.1
|
|
$
127.9
|
|
$
(21.8)
|
|
|
$
181.6
|
|
$
226.6
|
|
$
(45.0)
|
|
Corporate
expense
|
|
29.1
|
|
25.8
|
|
3.3
|
|
|
58.3
|
|
54.3
|
|
4.0
|
|
Pension and
postretirement expense
|
|
1.3
|
|
3.0
|
|
(1.7)
|
|
|
2.6
|
|
22.8
|
|
(20.2)
|
|
Stock-based
compensation expense
|
|
5.5
|
|
4.6
|
|
0.9
|
|
|
29.1
|
|
29.3
|
|
(0.2)
|
|
Special charges,
net
|
|
6.1
|
|
4.5
|
|
1.6
|
|
|
12.7
|
|
14.5
|
|
(1.8)
|
|
Consolidated
Operating Income
|
|
$
64.1
|
|
$
90.0
|
|
$
(25.9)
|
-28.8%
|
|
$
78.9
|
|
$
105.7
|
|
$
(26.8)
|
-25.4%
|
as a
percent of revenues
|
|
6.0%
|
|
7.5%
|
|
|
-150bps
|
|
3.9%
|
|
4.7%
|
|
|
-80bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SPX CORPORATION
AND SUBSIDIARIES
|
ORGANIC REVENUE
RECONCILIATION
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
June 27, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Revenue
|
|
|
|
|
|
Foreign
|
|
|
Organic
Revenue
|
|
|
|
Decline
|
|
|
Acquisitions
|
|
|
Currency
|
|
|
Decline
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Flow Technology
reportable segment
|
|
(12.6)
|
%
|
-
|
%
|
(8.4)
|
%
|
(4.2)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thermal Equipment and
Services reportable segment
|
|
(9.0)
|
%
|
-
|
%
|
(5.3)
|
%
|
(3.7)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial Products
and Services and Other
|
|
(3.9)
|
%
|
-
|
%
|
(1.9)
|
%
|
(2.0)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
(10.1)
|
%
|
-
|
%
|
(6.5)
|
%
|
(3.6)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended
June 27, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Revenue
|
|
|
|
|
|
Foreign
|
|
|
Organic
Revenue
|
|
|
|
Decline
|
|
|
Acquisitions
|
|
|
Currency
|
|
|
Decline
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Flow Technology
reportable segment
|
|
(13.2)
|
%
|
-
|
%
|
(8.4)
|
%
|
(4.8)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thermal Equipment and
Services reportable segment
|
|
(10.2)
|
%
|
-
|
%
|
(5.1)
|
%
|
(5.1)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial Products
and Services and Other
|
|
(5.1)
|
%
|
-
|
%
|
(2.1)
|
%
|
(3.0)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
(11.0)
|
%
|
-
|
%
|
(6.4)
|
%
|
(4.6)
|
%
|
SPX CORPORATION
AND SUBSIDIARIES
|
FREE CASH FLOW
RECONCILIATION
|
(Unaudited; in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
June 27,
2015
|
|
June 28,
2014
|
|
June 27,
2015
|
|
June 28,
2014
|
|
|
|
|
|
|
|
|
|
Net cash from (used
in) continuing operations
|
|
$
10.6
|
|
$
(38.8)
|
|
$
(97.7)
|
|
$
(97.4)
|
|
|
|
|
|
|
|
|
|
Capital expenditures
- continuing operations
|
|
(15.0)
|
|
(12.3)
|
|
(29.4)
|
|
(23.6)
|
|
|
|
|
|
|
|
|
|
Free cash flow used
in continuing operations
|
|
$
(4.4)
|
|
$
(51.1)
|
|
$
(127.1)
|
|
$
(121.0)
|
SPX CORPORATION
AND SUBSIDIARIES
|
CASH AND DEBT
RECONCILIATION
|
(Unaudited; in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months
ended
|
|
|
|
|
|
|
|
|
|
|
|
June 27,
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning cash and
equivalents
|
|
$
427.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash used in
continuing operations
|
|
(97.7)
|
|
|
|
|
|
|
|
|
|
Proceeds from asset
sales and other, net
|
|
3.6
|
|
|
|
|
|
|
|
|
|
Increase in
restricted cash
|
|
(0.1)
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
(29.4)
|
|
|
|
|
|
|
|
|
|
Borrowings under
senior credit facilities
|
|
325.0
|
|
|
|
|
|
|
|
|
|
Repayments under
senior credit facilities
|
|
(224.2)
|
|
|
|
|
|
|
|
|
|
Net borrowings under
trade receivables agreement
|
|
7.0
|
|
|
|
|
|
|
|
|
|
Net repayments under
other financing arrangements
|
|
(2.3)
|
|
|
|
|
|
|
|
|
|
Minimum withholdings
paid on behalf of employees for net share settlements,
net
|
|
|
|
|
|
|
|
|
|
|
|
of
proceeds from the exercise of employee stock options and
other
|
|
(5.3)
|
|
|
|
|
|
|
|
|
|
Dividends
paid
|
|
(30.6)
|
|
|
|
|
|
|
|
|
|
Cash used in
discontinued operations
|
|
(1.9)
|
|
|
|
|
|
|
|
|
|
Change in cash and
equivalents due to changes in foreign currency exchange
rates
|
|
(42.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending cash and
equivalents
|
|
$
328.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt
at
|
|
|
|
|
|
|
|
Debt
at
|
|
|
|
December 31,
2014
|
|
Borrowings
|
|
Repayments
|
|
Other
|
|
June 27,
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic revolving
loan facility
|
|
$
133.0
|
|
$ 325.0
|
|
$ (217.0)
|
|
$
-
|
|
$ 241.0
|
|
Term
loan
|
|
575.0
|
|
-
|
|
(7.2)
|
|
-
|
|
567.8
|
|
6.875% senior
notes
|
|
600.0
|
|
-
|
|
-
|
|
-
|
|
600.0
|
|
Trade receivables
financing arrangement
|
|
10.0
|
|
95.0
|
|
(88.0)
|
|
-
|
|
17.0
|
|
Other
indebtedness
|
|
51.7
|
|
1.3
|
|
(3.6)
|
|
(0.3)
|
|
49.1
|
|
Totals
|
|
$
1,369.7
|
|
$ 421.3
|
|
$ (315.8)
|
|
$ (0.3)
|
|
$ 1,474.9
|
|
SPX CORPORATION
AND SUBSIDIARIES
|
CONSOLIDATED
EBITDA RECONCILIATION
|
(Unaudited; in
millions)
|
|
|
|
|
|
Mid-Point
Target
|
|
|
Net Income
|
$
173.0
|
|
|
Income tax
provision
|
69.0
|
Net interest
expense
|
70.0
|
|
|
Income before
interest and taxes
|
312.0
|
|
|
Depreciation and
amortization expense
|
103.0
|
EBITDA
|
415.0
|
|
|
Adjustments:
|
|
Non-cash compensation
expense
|
57.0
|
Extraordinary
non-recurring cash charges
|
36.0
|
Extraordinary
non-cash charges
|
1.0
|
Joint venture EBITDA
adjustments
|
1.0
|
|
|
Consolidated
EBITDA*
|
$
510.0
|
|
|
*Consolidated EBITDA
as defined in the credit facility. The $510.0
represents the
mid-point of our 2015 Consolidated EBITDA target
of $500.0 to
$520.0.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/spx-reports-second-quarter-2015-results-300120266.html
SOURCE SPX Corporation