Q1 GAAP EPS of
Solid Growth in HVAC and Detection & Measurement
On Track to Achieve Full-Year Adjusted EPS*
Mr. Lowe continued, “We have also made significant progress on our capital deployment plans, closing one acquisition, and announcing an agreement for a second. Both are attractive companies and highly complementary fits with our Radiodetection business within our Detection & Measurement segment. These proprietary transactions position us to create higher value solutions for customers and drive meaningful growth in earnings and cash generation. As we continue executing on our growth initiatives, we are committed to maintaining a solid balance sheet, while deploying additional capital to drive value for shareholders.”
First Quarter 2018 Overview:
For the first quarter of 2018 the company reported revenue of
SPX Core revenue* was
First Quarter Financial Comparisons:
GAAP Results:
($ millions) | Q1 2018 | Q1 2017 | ||||||
Revenue | $ | 351.9 | $ | 340.6 | ||||
Segment Income | 37.0 | 34.3 | ||||||
Operating Income | 19.3 | 19.1 |
* Non-GAAP financial measure. See attached schedules for reconciliation to most comparable GAAP financial measure.
Adjusted Results:
($ millions) | Q1 2018 | Q1 2017 | ||||||
Core Revenue* | $ | 337.6 | $ | 322.4 | ||||
Core Segment Income* | 41.6 | 38.7 | ||||||
Adjusted Operating Income* | 26.5 | 23.5 |
* Non-GAAP financial measure. See attached schedules for reconciliation to most comparable GAAP financial measure.
HVAC
Revenue for Q1 2018 was
Segment income was
Detection & Measurement
Revenue for Q1 2018 was
Segment income was
Engineered Solutions
Revenue for Q1 2018 was
Segment income was
Engineered Solutions (Core)
Excluding the results of the South African projects, Engineered Solutions recorded Core revenue* for Q1 2018 of
Engineered Solutions’ Core income* for Q1 2018 was
South African Projects
Revenue attributable to the South African projects for Q1 2018 was
Financial Update:
As of
Reaffirming 2018 Guidance:
SPX is reaffirming its 2018 guidance for Core revenue* in a range of
Segment performance, on a year-over-year basis, is expected to be as follows:
Revenue | Segment Income Margin % | ||
HVAC | Organic growth* rate within long-term range of 2.0%-4.0% | Approximately 100 basis point increase | |
Detection & Measurement | Organic growth* rate within long-term range of approximately 2.0%-6.0% | Approximately 50 to 100 basis point increase | |
Engineered Solutions (Core)* | Segment (core) revenue decline* in high-single digits %; modest growth in transformer revenue; organic decline* in process cooling resulting from operating model changes | Approximately 80-130 basis point increase | |
Non-GAAP Presentation: The results and guidance in this release include non-GAAP financial measures, including “Core” results, “organic revenue increase (decrease),” “Adjusted operating income (loss),” and “Adjusted earnings (loss) per share.” To provide clarity to its operating results, the company reports “Core” results, which exclude the effect of the South African projects, and separately reports on the progress and results associated with the South African projects. Other items adjusted out of segment income, operating income, and earnings per share consist of certain acquisition-related costs in Q1 2018, and non-service pension items and various other tax items in Q1 2018 and Q1 2017.
Form 10-Q: The company expects to file its quarterly report on Form 10-Q for the quarter ended
Conference Call: SPX will host a conference call at
Conference call
Dial in: 877-341-7727
From outside
Participant code: 5297349
A replay of the call will be available by telephone through
To listen to a replay of the call
Dial in: 855-859-2056
From outside
Participant code: 5297349
Upcoming Investor Events: Company management plans to be on the road during May meeting with investors, including attending the
About
*Non-GAAP financial measure. See attached schedules for reconciliation to most comparable GAAP financial measure.
**See attached schedule for the impact of the adoption of ASC 606 on SPX’s reported results.
Note: Our non-GAAP financial guidance excludes items, which would be included in our GAAP financial measures, that we do not consider indicative of our on-going performance. These items include, but are not limited to, acquisition costs, costs associated with dispositions, the results of our South African projects, 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 nearest corresponding GAAP financial measures is not practicable.
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
Statements in this press release speak only as of the date of this press release, and SPX disclaims any responsibility to update or revise such statements.
SOURCE
Investor and Media Contacts:
Phone: 980-474-3806
E-mail: spx.investor@spx.com
Phone: 980-474-3806
E-mail: spx.investor@spx.com
SPX CORPORATION AND SUBSIDIARIES | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
(Unaudited; in millions, except per share amounts) | |||||||
Three months ended | |||||||
March 31, 2018 | April 1, 2017 | ||||||
Revenues | $ | 351.9 | $ | 340.6 | |||
Costs and expenses: | |||||||
Cost of products sold | 261.8 | 252.5 | |||||
Selling, general and administrative | 68.6 | 68.3 | |||||
Intangible amortization | 0.2 | 0.2 | |||||
Special charges, net | 2.0 | 0.5 | |||||
Operating income | 19.3 | 19.1 | |||||
Other income (expense), net | 1.0 | (2.0 | ) | ||||
Interest expense | (4.3 | ) | (4.0 | ) | |||
Interest income | 0.5 | 0.4 | |||||
Income from continuing operations before income taxes | 16.5 | 13.5 | |||||
Income tax provision | (4.1 | ) | (3.2 | ) | |||
Income from continuing operations | 12.4 | 10.3 | |||||
Income (loss) from discontinued operations, net of tax | — | — | |||||
Gain on disposition of discontinued operations, net of tax | — | 7.1 | |||||
Income from discontinued operations, net of tax | — | 7.1 | |||||
Net income | $ | 12.4 | $ | 17.4 | |||
Basic income per share of common stock: | |||||||
Income from continuing operations | $ | 0.29 | $ | 0.24 | |||
Income from discontinued operations | — | 0.17 | |||||
Net income per share | $ | 0.29 | $ | 0.41 | |||
Weighted-average number of common shares outstanding — basic | 42.772 | 42.108 | |||||
Diluted income per share of common stock: | |||||||
Income from continuing operations | $ | 0.28 | $ | 0.24 | |||
Income from discontinued operations | — | 0.16 | |||||
Net income per share | $ | 0.28 | $ | 0.40 | |||
Weighted-average number of common shares outstanding — diluted | 44.353 | 43.454 | |||||
SPX CORPORATION AND SUBSIDIARIES | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(Unaudited; in millions) | |||||||
March 31, 2018 | December 31, 2017 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and equivalents | $ | 103.7 | $ | 124.3 | |||
Accounts receivable, net | 214.7 | 267.5 | |||||
Contract assets | 98.3 | — | |||||
Inventories, net | 109.3 | 143.0 | |||||
Other current assets (includes income taxes receivable of $41.8 and $62.4 at March 31, 2018 and December 31, 2017, respectively) | 72.5 | 97.7 | |||||
Total current assets | 598.5 | 632.5 | |||||
Property, plant and equipment: | |||||||
Land | 16.4 | 15.8 | |||||
Buildings and leasehold improvements | 122.7 | 120.5 | |||||
Machinery and equipment | 333.2 | 330.4 | |||||
472.3 | 466.7 | ||||||
Accumulated depreciation | (286.5 | ) | (280.1 | ) | |||
Property, plant and equipment, net | 185.8 | 186.6 | |||||
Goodwill | 349.3 | 345.9 | |||||
Intangibles, net | 128.8 | 117.6 | |||||
Other assets | 697.4 | 706.9 | |||||
Deferred income taxes | 52.3 | 50.9 | |||||
TOTAL ASSETS | $ | 2,012.1 | $ | 2,040.4 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 145.0 | $ | 159.7 | |||
Contract liabilities | 88.5 | — | |||||
Accrued expenses | 180.8 | 292.6 | |||||
Income taxes payable | 2.2 | 1.2 | |||||
Short-term debt | 6.8 | 7.0 | |||||
Current maturities of long-term debt | 4.9 | 0.5 | |||||
Total current liabilities | 428.2 | 461.0 | |||||
Long-term debt | 344.9 | 349.3 | |||||
Deferred and other income taxes | 33.0 | 29.6 | |||||
Other long-term liabilities | 872.8 | 885.8 | |||||
Total long-term liabilities | 1,250.7 | 1,264.7 | |||||
Equity: | |||||||
Common stock | 0.5 | 0.5 | |||||
Paid-in capital | 1,300.4 | 1,309.8 | |||||
Retained deficit | (730.9 | ) | (742.3 | ) | |||
Accumulated other comprehensive income | 254.5 | 250.1 | |||||
Common stock in treasury | (491.3 | ) | (503.4 | ) | |||
Total equity | 333.2 | 314.7 | |||||
TOTAL LIABILITIES AND EQUITY | $ | 2,012.1 | $ | 2,040.4 | |||
SPX CORPORATION AND SUBSIDIARIES | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited; in millions) | ||||||||
Three months ended | ||||||||
March 31, 2018 | April 1, 2017 | |||||||
Cash flows from (used in) operating activities: | ||||||||
Net income | $ | 12.4 | $ | 17.4 | ||||
Less: Income from discontinued operations, net of tax | — | 7.1 | ||||||
Income from continuing operations | 12.4 | 10.3 | ||||||
Adjustments to reconcile income from continuing operations to net cash from operating activities: | ||||||||
Special charges, net | 2.0 | 0.5 | ||||||
Deferred and other income taxes | (1.3 | ) | (3.9 | ) | ||||
Depreciation and amortization | 6.6 | 6.3 | ||||||
Pension and other employee benefits | 2.3 | 4.2 | ||||||
Long-term incentive compensation | 3.9 | 3.2 | ||||||
Other, net | 0.3 | 1.6 | ||||||
Changes in operating assets and liabilities, net of effects from an acquisition and divestitures: | ||||||||
Accounts receivable and other assets | 23.6 | 33.7 | ||||||
Inventories | (3.6 | ) | (13.2 | ) | ||||
Accounts payable, accrued expenses and other | (43.1 | ) | (36.7 | ) | ||||
Cash spending on restructuring actions | (0.4 | ) | (0.6 | ) | ||||
Net cash from continuing operations | 2.7 | 5.4 | ||||||
Net cash used in discontinued operations | (0.4 | ) | ` | (3.7 | ) | |||
Net cash from operating activities | 2.3 | 1.7 | ||||||
Cash flows from (used in) investing activities: | ||||||||
Proceeds from company-owned life insurance policies, net | 0.2 | — | ||||||
Business acquisition, net of cash acquired | (16.3 | ) | — | |||||
Capital expenditures | (3.2 | ) | (2.2 | ) | ||||
Net cash used in continuing operations | (19.3 | ) | (2.2 | ) | ||||
Net cash used in discontinued operations | — | — | ||||||
Net cash used in investing activities | (19.3 | ) | (2.2 | ) | ||||
Cash flows from (used in) financing activities: | ||||||||
Borrowings under senior credit facilities | — | — | ||||||
Repayments under senior credit facilities | — | (4.3 | ) | |||||
Net borrowings (repayments) under other financing arrangements | (0.4 | ) | 1.7 | |||||
Minimum withholdings paid on behalf of employees for net share settlements, net of proceeds from the exercise of employee stock options and other |
(3.2 | ) | (2.5 | ) | ||||
Net cash used in continuing operations | (3.6 | ) | (5.1 | ) | ||||
Net cash used in discontinued operations | — | — | ||||||
Net cash used in financing activities | (3.6 | ) | (5.1 | ) | ||||
Change in cash and equivalents due to changes in foreign currency exchange rates | — | (1.3 | ) | |||||
Net change in cash and equivalents | (20.6 | ) | (6.9 | ) | ||||
Consolidated cash and equivalents, beginning of period | 124.3 | 99.6 | ||||||
Consolidated cash and equivalents, end of period | $ | 103.7 | $ | 92.7 | ||||
SPX CORPORATION AND SUBSIDIARIES | |||||||||||||||
RESULTS OF REPORTABLE SEGMENTS | |||||||||||||||
(Unaudited; in millions) | |||||||||||||||
Three months ended | |||||||||||||||
March 31, 2018 | April 1, 2017 | Δ | %/bps | ||||||||||||
HVAC reportable segment | |||||||||||||||
Revenues | $ | 127.7 | $ | 110.1 | $ | 17.6 | 16.0 | % | |||||||
Gross profit | 41.6 | 38.2 | 3.4 | ||||||||||||
Selling, general and administrative expense | 22.9 | 21.6 | 1.3 | ||||||||||||
Intangible amortization expense | 0.1 | 0.1 | — | ||||||||||||
Income | $ | 18.6 | $ | 16.5 | $ | 2.1 | 12.7 | % | |||||||
as a percent of revenues | 14.6 | % | 15.0 | % | -40 bps | ||||||||||
Detection & Measurement reportable segment | |||||||||||||||
Revenues | $ | 65.6 | $ | 53.6 | $ | 12.0 | 22.4 | % | |||||||
Gross profit | 29.6 | 24.8 | 4.8 | ||||||||||||
Selling, general and administrative expense | 13.9 | 13.6 | 0.3 | ||||||||||||
Intangible amortization expense | — | — | — | ||||||||||||
Income | $ | 15.7 | $ | 11.2 | $ | 4.5 | 40.2 | % | |||||||
as a percent of revenues | 23.9 | % | 20.9 | % | 300 bps | ||||||||||
Engineered Solutions reportable segment | |||||||||||||||
Revenues | $ | 158.6 | $ | 176.9 | $ | (18.3 | ) | (10.3 | )% | ||||||
Gross profit | 18.9 | 25.1 | (6.2 | ) | |||||||||||
Selling, general and administrative expense | 16.1 | 18.4 | (2.3 | ) | |||||||||||
Intangible amortization expense | 0.1 | 0.1 | — | ||||||||||||
Income | $ | 2.7 | $ | 6.6 | $ | (3.9 | ) | (59.1 | )% | ||||||
as a percent of revenues | 1.7 | % | 3.7 | % | -200 bps | ||||||||||
Consolidated Revenues | $ | 351.9 | $ | 340.6 | $ | 11.3 | 3.3 | % | |||||||
Consolidated Segment Income | 37.0 | 34.3 | 2.7 | 7.9 | % | ||||||||||
as a percent of revenues | 10.5 | % | 10.1 | % | 40 bps | ||||||||||
Total income for reportable segments | $ | 37.0 | $ | 34.3 | $ | 2.7 | |||||||||
Corporate expense | 11.8 | 11.4 | 0.4 | ||||||||||||
Pension and postretirement expense | — | 0.1 | (0.1 | ) | |||||||||||
Long-term incentive compensation expense | 3.9 | 3.2 | 0.7 | ||||||||||||
Special charges, net | 2.0 | 0.5 | 1.5 | ||||||||||||
Consolidated operating income | $ | 19.3 | $ | 19.1 | $ | 0.2 | 1.0 | % | |||||||
as a percent of revenues | 5.5 | % | 5.6 | % | -10 bps | ||||||||||
SPX CORPORATION AND SUBSIDIARIES | ||||||||||||||||||
CASH AND DEBT RECONCILIATION | ||||||||||||||||||
(Unaudited; in millions) | ||||||||||||||||||
Three months ended | ||||||||||||||||||
March 31, 2018 | ||||||||||||||||||
Beginning cash and equivalents | $ | 124.3 | ||||||||||||||||
Cash from continuing operations | 2.7 | |||||||||||||||||
Capital expenditures | (3.2 | ) | ||||||||||||||||
Proceeds from company-owned life insurance policies, net | 0.2 | |||||||||||||||||
Business acquisition, net of cash acquired | (16.3 | ) | ||||||||||||||||
Net borrowings under other financing arrangements | (0.4 | ) | ||||||||||||||||
Minimum withholdings paid on behalf of employees for net share settlements, net of proceeds from the exercise of employee stock options | (3.2 | ) | ||||||||||||||||
Cash used in discontinued operations | (0.4 | ) | ||||||||||||||||
Change in cash due to changes in foreign currency exchange rates | — | |||||||||||||||||
Ending cash and equivalents | $ | 103.7 | ||||||||||||||||
Debt at | Debt at | |||||||||||||||||
December 31, 2017 | Borrowings | Repayments | Other | March 31, 2018 | ||||||||||||||
Revolving loans | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||
Term loan | 350.0 | — | — | — | 350.0 | |||||||||||||
Trade receivables financing arrangement | — | — | — | — | — | |||||||||||||
Other indebtedness | 9.1 | 12.7 | (13.1 | ) | 0.1 | 8.8 | ||||||||||||
Less: Deferred financing costs associated with the term loan | (2.3 | ) | — | — | 0.1 | (2.2 | ) | |||||||||||
Totals | $ | 356.8 | $ | 12.7 | $ | (13.1 | ) | $ | 0.2 | $ | 356.6 | |||||||
SPX CORPORATION AND SUBSIDIARIES | |||||
NON-GAAP RECONCILIATION – ORGANIC REVENUE | |||||
HVAC AND DETECTION & MEASUREMENT SEGMENTS | |||||
(Unaudited) | |||||
Three months ended March 31, 2018 | |||||
HVAC | Detection & Measurement |
||||
Net Revenue Growth | 16.0 | % | 22.4 | % | |
Exclude: Foreign Currency | 1.1 | % | 2.8 | % | |
Exclude: Acquisition | — | % | 1.5 | % | |
Organic Revenue Growth | 14.9 | % | 18.1 | % | |
SPX CORPORATION AND SUBSIDIARIES | |||||||||
Impact of ASC 606 Adoption | |||||||||
Three months ended March 31, 2018 | |||||||||
(Unaudited; in millions) | |||||||||
Reported | Effect of ASC 606 Adoption (1) |
Under Prior Revenue Recognition Guidance |
|||||||
Revenues | $ | 351.9 | $ | (21.4 | ) | $ | 330.5 | ||
Net Income | 12.4 | (1.5 | ) | 10.9 | |||||
(1) Effect of ASC 606 Adoption related solely to our Engineered Solutions reportable segment | |||||||||
SPX CORPORATION AND SUBSIDIARIES | ||||||||||||||||||
NON-GAAP RECONCILIATION – REVENUE AND SEGMENT INCOME | ||||||||||||||||||
(Unaudited; in millions) | ||||||||||||||||||
CONSOLIDATED SPX: | Three months ended | |||||||||||||||||
March 31, 2018 | April 1, 2017 | |||||||||||||||||
Consolidated revenue | $ | 351.9 | $ | 340.6 | ||||||||||||||
Exclude: South African projects | 14.3 | 18.2 | ||||||||||||||||
Core revenue | $ | 337.6 | $ | 322.4 | ||||||||||||||
Total segment income | $ | 37.0 | $ | 34.3 | ||||||||||||||
Exclude: Losses from South African projects | (4.3 | ) | (4.4 | ) | ||||||||||||||
Exclude: One time acquisition related costs (1) | (0.3 | ) | — | |||||||||||||||
Core segment income | $ | 41.6 | $ | 38.7 | ||||||||||||||
as a percent of Core revenues (2) | 12.3 | % | 12.0 | % | ||||||||||||||
ENGINEERED SOLUTIONS SEGMENT: | Three months ended | DETECTION & MEASUREMENT SEGMENT: | Three months ended | |||||||||||||||
March 31, 2018 | April 1, 2017 | March 31, 2018 | April 1, 2017 | |||||||||||||||
Engineered Solutions revenue | $ | 158.6 | $ | 176.9 | Detection & Measurement Segment income | $ | 15.7 | $ | 11.2 | |||||||||
Exclude: South African projects | 14.3 | 18.2 | Exclude: One time acquisition related costs (1) | (0.3 | ) | — | ||||||||||||
Engineered Solutions (Core) revenue | $ | 144.3 | $ | 158.7 | Detection & Measurement adjusted segment income | $ | 16.0 | $ | 11.2 | |||||||||
as a percent of Detection & Measurement revenues (2) | 24.4 | % | 20.9 | % | ||||||||||||||
Engineered Solutions Segment income | $ | 2.7 | $ | 6.6 | ||||||||||||||
Exclude: Losses from South African projects | (4.3 | ) | (4.4 | ) | ||||||||||||||
Engineered Solutions (Core) income | $ | 7.0 | $ | 11.0 | ||||||||||||||
as a percent of Engineered Solutions (Core) revenues (2) | 4.9 | % | 6.9 | % | ||||||||||||||
(1) Represents additional “Cost of products sold” recorded during the three months ended March 31, 2018 related to the step-up of inventory (to fair value) acquired in connection with the March 1, 2018 Schonstedt transaction. | ||||||||||||||||||
(2) See “Results of Reportable Segments” for applicable percentages based on GAAP results. | ||||||||||||||||||
SPX CORPORATION AND SUBSIDIARIES | ||||||||
NON-GAAP RECONCILIATION – OPERATING INCOME | ||||||||
(Unaudited; in millions) | ||||||||
Three months ended | ||||||||
March 31, 2018 | April 1, 2017 | |||||||
Operating income | $ | 19.3 | $ | 19.1 | ||||
Adjustments: | ||||||||
Losses from South African projects (1) | 5.9 | 4.4 | ||||||
One time acquisition related costs (2) | 1.3 | — | ||||||
Adjusted operating income | $ | 26.5 | $ | 23.5 | ||||
as a percent of Core revenues (3) | 7.8 | % | 7.3 | % | ||||
(1) Adjustment relates to the removal of South African projects (inclusive of restructuring charges of $1.6 recorded during the three months ended March 31, 2018). | ||||||||
(2) One time acquisition costs include transaction related costs (e.g., professional fees) and an inventory step-up charge for the Schonstedt acquisition. | ||||||||
(3) See “Results of Reportable Segments” for applicable percentages based on GAAP results. | ||||||||
SPX CORPORATION AND SUBSIDIARIES | |||||||||||
NON-GAAP RECONCILIATION – EARNINGS PER SHARE | |||||||||||
Three Months Ended March 31, 2018 | |||||||||||
(Unaudited; in millions, except per share values) | |||||||||||
GAAP | Adjustments | Adjusted | |||||||||
Segment income (1) | $ | 37.0 | $ | 4.6 | $ | 41.6 | |||||
Corporate expense (2) | (11.8 | ) | 1.0 | (10.8 | ) | ||||||
Long-term incentive compensation expense | (3.9 | ) | — | (3.9 | ) | ||||||
Special charges, net (3) | (2.0 | ) | 1.6 | (0.4 | ) | ||||||
Operating income | 19.3 | 7.2 | 26.5 | ||||||||
Other income, net (4) | 1.0 | 0.3 | 1.3 | ||||||||
Interest expense, net | (3.8 | ) | — | (3.8 | ) | ||||||
Income from continuing operations before income taxes | 16.5 | 7.5 | 24.0 | ||||||||
Income tax provision (5) | (4.1 | ) | (0.3 | ) | (4.4 | ) | |||||
Income from continuing operations | 12.4 | 7.2 | 19.6 | ||||||||
Dilutive shares outstanding | 44.353 | 44.353 | |||||||||
Earnings per share from continuing operations | $ | 0.28 | $ | 0.44 | |||||||
(1) Adjustment represents the removal of operating losses associated with the South African projects ($4.3) and inventory step-up charges ($0.3) related to the Schonstedt acquisition. | |||||||||||
(2) Adjustment represents removal of acquisition related expenses incurred during the period. | |||||||||||
(3) Adjustment represents removal of restructuring charges associated with the South African projects. | |||||||||||
(4) Adjustment represents removal of non-service pension and postretirement items. | |||||||||||
(5) Adjustment represents the tax impact of items (1) through (4) above and the removal of tax charges associated with the impact of U.S. tax reform. | |||||||||||
SPX CORPORATION AND SUBSIDIARIES | |||||||||||
NON-GAAP RECONCILIATION – EARNINGS PER SHARE | |||||||||||
Three Months Ended April 1, 2017 | |||||||||||
(Unaudited; in millions, except per share values) | |||||||||||
GAAP | Adjustments | Adjusted | |||||||||
Segment income (1) | $ | 34.3 | $ | 4.4 | $ | 38.7 | |||||
Corporate expense | (11.4 | ) | — | (11.4 | ) | ||||||
Pension and postretirement expense | (0.1 | ) | — | (0.1 | ) | ||||||
Long-term incentive compensation expense | (3.2 | ) | — | (3.2 | ) | ||||||
Special charges, net | (0.5 | ) | — | (0.5 | ) | ||||||
Operating income | 19.1 | 4.4 | 23.5 | ||||||||
Other expense, net (2) | (2.0 | ) | 2.0 | — | |||||||
Interest expense, net (3) | (3.6 | ) | 0.2 | (3.4 | ) | ||||||
Income from continuing operations before income taxes | 13.5 | 6.6 | 20.1 | ||||||||
Income tax provision (4) | (3.2 | ) | (0.6 | ) | (3.8 | ) | |||||
Income from continuing operations | 10.3 | 6.0 | 16.3 | ||||||||
Dilutive shares outstanding | 43.454 | 43.454 | |||||||||
Earnings per share from continuing operations | $ | 0.24 | $ | 0.38 | |||||||
(1) Adjustment represents the removal of operating losses associated with the South African projects. | |||||||||||
(2) Adjustment represents removal of non-service pension and postretirement items and removal of foreign currency losses associated with the South African projects. | |||||||||||
(3) Adjustment represents removal of interest expense incurred in connection with borrowings under a line of credit in South Africa. | |||||||||||
(4) Adjustment represents the tax impact of items (1) through (3) above. | |||||||||||
SPX CORPORATION AND SUBSIDIARIES | ||||
NON-GAAP RECONCILIATION – FREE CASH FLOW | ||||
(Unaudited; in millions) | ||||
Three months ended | ||||
March 31, 2018 | ||||
Net operating cash flow from continuing operations | $ | 2.7 | ||
Capital expenditures – continuing operations | (3.2 | ) | ||
Free cash flow used in continuing operations | $ | (0.5 | ) | |
Source: SPX Corporation