SPX FLOW Reports First Quarter 2020 Financial Results
"Our first quarter results demonstrate our nimble operating structure, maturing business operating system and emphasis on driving high-quality revenue. Specifically, the team was able to deliver significant year-over-year improvements in gross margin despite revenues being down over 20% driven by solid execution, cost reductions and productivity savings. This strong operating foundation, underpinned by a people-first culture, has driven an effective and resilient response to the dynamic impacts of COVID-19. I am impressed with the way our team is working together across the globe to navigate these challenges, rapidly implementing new protocols that prioritize the health and well-being of our team members and maintain business continuity to fully support customers. And I am inspired by the acts of kindness our team has demonstrated in support of local communities and front-line workers," said
"As we navigate through this historic situation, our guiding principles are to ensure a safe and healthy work environment, support our customers with excellence, maintain long-term financial strength and execute our long-term strategy. To this end, it is vital that we keep our talented workforce intact to provide continuity and ensure the technical skills and process knowledge are in place to support our customers and capitalize on opportunities to create value through this economic cycle."
"Importantly, we are in a strong financial position that was fortified with the net proceeds from the sale of Power and Energy. Available liquidity is over
"The global pandemic and economic downturn underscore the importance of our strategy to focus on process solutions for sanitary and industrial applications. We support everyday life, including food and beverage, pharmaceutical, water, personal care, specialty chemical and condensed air markets. This positions
"We are managing the near-term demand environment prudently and have conducted a robust cash sensitivity analysis across various economic scenarios. Currently, we are operating with the assumption that revenue will decrease 15%-20% year-over-year. Considering this, we curtailed discretionary spend, variable costs and paused hiring, apart from customer support roles, select strategic positions and early career programs. Should the economic downturn decline further, we have identified subsequent cost actions that can be rapidly implemented to adjust our cost structure in accordance with volume, while maintaining the ability to support customers and fully participate in economic recovery."
"In summary,
First Quarter 2020 Consolidated Results (continuing operations unless otherwise noted)
$ millions; except per share data |
Q1 2020 |
Q1 2019 |
Variance |
Organic Variance |
|||||||||
Backlog |
$ |
517.0 |
$ |
555.7 |
(7.0) |
% |
(2.2) |
% |
|||||
Orders |
317.0 |
357.7 |
(11.4) |
% |
(10.1) |
% |
|||||||
Revenues |
289.5 |
373.4 |
(22.5) |
% |
(19.6) |
% |
|||||||
Segment income |
28.8 |
47.0 |
(38.7) |
% |
|||||||||
Margin % |
9.9 |
% |
12.6 |
% |
-270bps |
||||||||
Operating income |
8.6 |
28.0 |
(69.3) |
% |
|||||||||
Margin % |
3.0 |
% |
7.5 |
% |
-450bps |
||||||||
Income (loss) from continuing operations, net of tax |
$ |
(0.3) |
$ |
14.7 |
|||||||||
Income (loss) from discontinued operations, net of tax |
(5.0) |
4.8 |
|||||||||||
Net income (loss) attributable to |
(5.3) |
19.5 |
|||||||||||
Diluted earnings (loss) per share from continuing operations |
$ |
(0.01) |
$ |
0.35 |
|||||||||
Diluted earnings (loss) per share from discontinued operations |
(0.12) |
0.11 |
|||||||||||
Diluted earnings (loss) per share |
(0.12) |
0.46 |
|||||||||||
Operating Cash Flow from (used in) continuing operations |
$ |
(32.2) |
$ |
10.7 |
|||||||||
Operating Cash Flow from (used in) discontinued operations |
(0.5) |
11.1 |
|||||||||||
Operating Cash Flow |
(32.7) |
21.8 |
|||||||||||
Adjusted EBITDA from continuing operations* |
$ |
22.0 |
$ |
40.5 |
(45.7) |
% |
|||||||
Free Cash Flow* - continuing and discontinued operations |
(42.9) |
14.9 |
Note: The commentary below is compared to the prior-year period. Organic changes exclude the effects of currency fluctuations.
- Backlog decreased (2.2)% organically due in large part the company's strategy to methodically reduce its exposure to large, dry-dairy applications and focus on growing orders in higher value, liquid-processing applications. These declines were partially offset by an increase in the Industrial backlog associated with strong mixer orders and certain shipment delays related to COVID-19.
- Orders declined (10.1)% organically. The decline was broad based and largely driven by a lower level of Food and Beverage systems orders, along with a lower order run-rate of components and aftermarket parts across both reporting segments. From a geographic perspective, order declines were concentrated in
Europe andNorth America for the company's industrial product offerings while Food and Beverage liquid-processing systems declines were concentrated inAsia Pacific . - Revenues declined (19.6)% organically, due to a lower level of revenue from large dry-dairy projects, broad based weakness across most industrial product lines, largely attributable to current market conditions, along with a lower starting backlog year-over-year.
- Gross profit decreased
$(22.3) million due primarily to lower volume. Gross margins expanded 190 points to 34.9% driven by a higher quality of revenue, improved operating execution and favorable net price/cost benefits. - Operating income was
$8.6 million , or 3.0% of revenues. This included$2.6 million of restructuring charges, a$1.9 million non-cash impairment charge and$0.8 million dollars of professional fees supporting the company's enterprise strategy and long-term value creation planning. Excluding these items, adjusted operating income* was$13.9 million , or 4.8% of revenues. - Diluted earnings per share from continuing operations were
$(0.01) and included: - A non-cash impairment charge of
$(0.03) per share related to the rationalization of a product line. - Professional fees of
$(0.01) per share related primarily to strategic actions. - Restructuring and other related charges of
$(0.05) . - Discrete and other tax items totaling a net credit of
$0.02 per share as compared to the Company's expected tax rate of 29%. - Excluding the items noted above, adjusted earnings per share* from continuous operations were
$0.06 . - Free cash flow* utilized across all operations was
$(42.9) million , including investments of$10.2 million on capital expenditures and$2.3 million on restructuring actions. The majority of the year-over-year change in free cash flow related to the lower level of earnings along with higher working capital levels partially related to shipment delays.
First Quarter 2020 Results by Segment
Food and Beverage
$ millions |
Q1 2020 |
Q1 2019 |
Variance |
Organic Variance |
|||||||||
Backlog |
$ |
251.5 |
$ |
290.0 |
(13.3) |
% |
(8.7) |
% |
|||||
Orders |
125.2 |
153.1 |
(18.2) |
% |
(18.8) |
% |
|||||||
Revenues |
137.8 |
172.5 |
(20.1) |
% |
(17.0) |
% |
|||||||
Income |
19.4 |
18.5 |
4.9 |
% |
|||||||||
As a percent of revenues |
14.1 |
% |
10.7 |
% |
340bps |
Note: The commentary below is compared to the prior-year period. Organic changes exclude the effects of currency fluctuations.
- Backlog decreased (8.7)% organically due to strong project execution combined with a lower level of new system orders, consistent with the Company's strategy to methodically reduce its exposure to dry-dairy applications and increase its focus on liquid-processing applications. Reduced orders for process components and aftermarket parts also contributed to the decline.
- Orders declined (18.8)% organically, primarily driven by timing of order in-take in liquid-processing systems in
Asia Pacific . Additionally, process components and aftermarket orders declined largely driven by lower levels of demand inEurope . - Revenues declined (17.0)% organically, primarily due to a lower level of revenue from large dry-dairy systems, as anticipated, along with lower components and aftermarket sales.
- Segment income of
$19.4 million was up ~5% year-over-year as margins expanded 340 points to 14.1%. The margin improvement was primarily driven by strong operational and project execution on a higher quality of revenue, savings from cost reduction actions and net price benefits.
Industrial
$ millions |
Q1 2020 |
Q1 2019 |
Variance |
Organic Variance |
|||||||||
Backlog |
$ |
265.5 |
$ |
265.7 |
(0.1) |
% |
4.9 |
% |
|||||
Orders |
191.8 |
204.6 |
(6.3) |
% |
(3.5) |
% |
|||||||
Revenues |
151.7 |
200.9 |
(24.5) |
% |
(21.8) |
% |
|||||||
Income |
9.4 |
28.5 |
(67.0) |
% |
|||||||||
As a percent of revenues |
6.2 |
% |
14.2 |
% |
-800bps |
Note: The commentary below is compared to the prior-year period. Organic changes exclude the effects of currency fluctuations.
- Backlog increased 4.9% organically reflecting improved demand for mixers in the quarter along with some delayed shipments primarily in
China due to COVID-19. - Orders declined (3.5)% organically. This decline was broad-based across the majority of industrial product lines, most notably in dehydration equipment and hydraulic tools, reflecting the broader global industrial slowdown. Partially offsetting these declines was the double-digit growth in mixer projects for customers in
China and in theMiddle East . - Revenues declined (21.8)% organically primarily due to a lower level of demand across the majority of short cycle product categories and end markets, primarily associated with global macro conditions. Additionally, opening backlog entering the quarter was down year-over-year contributing to the revenue decline.
- Segment income decreased
$(20.1) million and margins contracted 800 points to 6.2%. The decline in segment income and margin was largely related to volume declines in high margin product categories.
OTHER ITEMS
Form 10-Q: The company expects to file its quarterly report on Form 10-Q for the quarter ended
About
*Non-GAAP measure. See attached schedules for reconciliation from most comparable GAAP measure. Management believes these Non-GAAP metrics are commonly used financial measures for investors to evaluate our operating performance for the periods presented, and when read in conjunction with our condensed consolidated financial statements, present a useful tool to evaluate continuing operations and provide investors with metrics they can use to evaluate our management of the business from period to period. In addition, these are some of the factors we use in internal evaluations of the overall performance of our business.
Management 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.
Note: Net leverage is as defined by the company's credit facility.
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
Investor Contacts:
VP, Investor Relations and Strategic Insights
704-752-4485
investor@spxflow.com
Director, FP&A and Investor Relations
704-752-4472
Media Contact:
Chief Communications Officer
704-540-2160
|
|||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||
(Unaudited; in millions, except per share amounts) |
|||||||
Three months ended |
|||||||
|
|
||||||
Revenues |
$ |
289.5 |
$ |
373.4 |
|||
Cost of products sold |
188.4 |
250.0 |
|||||
Gross profit |
101.1 |
123.4 |
|||||
Selling, general and administrative |
85.2 |
87.5 |
|||||
Intangible amortization |
2.8 |
2.9 |
|||||
Asset impairment charges |
1.9 |
— |
|||||
Restructuring and other related charges |
2.6 |
5.0 |
|||||
Operating income |
8.6 |
28.0 |
|||||
Other income (expense), net |
(1.5) |
5.3 |
|||||
Interest expense, net |
(8.1) |
(7.6) |
|||||
Income (loss) from continuing operations before income taxes |
(1.0) |
25.7 |
|||||
Income tax benefit (provision) |
0.9 |
(10.7) |
|||||
Income (loss) from continuing operations |
(0.1) |
15.0 |
|||||
Income (loss) from discontinued operations, net of tax |
(5.1) |
5.1 |
|||||
Net income (loss) |
(5.2) |
20.1 |
|||||
Less: Net income attributable to noncontrolling interests |
0.1 |
0.6 |
|||||
Net income (loss) attributable to |
$ |
(5.3) |
$ |
19.5 |
|||
Amounts attributable to |
|||||||
Income (loss) from continuing operations, net of tax |
$ |
(0.3) |
$ |
14.7 |
|||
Income (loss) from discontinued operations, net of tax |
(5.0) |
4.8 |
|||||
Net income (loss) attributable to |
$ |
(5.3) |
$ |
19.5 |
|||
Basic income (loss) per share of common stock: |
|||||||
Income (loss) per share from continuing operations |
$ |
(0.01) |
$ |
0.35 |
|||
Income (loss) per share from discontinued operations |
(0.12) |
0.11 |
|||||
Net income (loss) per share attributable to |
(0.12) |
0.46 |
|||||
Diluted income (loss) per share of common stock: |
|||||||
Income (loss) per share from continuing operations |
$ |
(0.01) |
$ |
0.35 |
|||
Income (loss) per share from discontinued operations |
(0.12) |
0.11 |
|||||
Net income (loss) per share attributable to |
(0.12) |
0.46 |
|||||
Weighted average number of common shares outstanding - basic |
42.570 |
42.452 |
|||||
Weighted average number of common shares outstanding - diluted |
42.570 |
42.577 |
|
|||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||
(Unaudited; in millions) |
|||||||
|
|
||||||
ASSETS |
|||||||
Current assets: |
|||||||
Cash and equivalents |
$ |
235.9 |
$ |
299.2 |
|||
Accounts receivable, net |
220.5 |
243.1 |
|||||
Contract assets |
28.8 |
27.3 |
|||||
Inventories, net |
214.5 |
208.1 |
|||||
Other current assets |
26.5 |
32.2 |
|||||
Assets of discontinued operations - current |
441.1 |
464.0 |
|||||
Total current assets |
1,167.3 |
1,273.9 |
|||||
Property, plant and equipment: |
|||||||
Land |
21.6 |
22.2 |
|||||
Buildings and leasehold improvements |
167.8 |
170.8 |
|||||
Machinery and equipment |
338.0 |
325.9 |
|||||
527.4 |
518.9 |
||||||
Accumulated depreciation |
(306.3) |
(289.0) |
|||||
Property, plant and equipment, net |
221.1 |
229.9 |
|||||
|
526.5 |
545.1 |
|||||
Intangibles, net |
197.4 |
208.1 |
|||||
Other assets |
172.1 |
180.4 |
|||||
TOTAL ASSETS |
$ |
2,284.4 |
$ |
2,437.4 |
|||
LIABILITIES, MEZZANINE EQUITY AND EQUITY |
|||||||
Current liabilities: |
|||||||
Accounts payable |
$ |
129.4 |
$ |
142.6 |
|||
Contract liabilities |
112.4 |
116.3 |
|||||
Accrued expenses |
144.8 |
162.0 |
|||||
Income taxes payable |
25.2 |
45.2 |
|||||
Short-term debt |
12.8 |
20.7 |
|||||
Current maturities of long-term debt |
0.1 |
0.1 |
|||||
Liabilities of discontinued operations - current |
214.3 |
220.5 |
|||||
Total current liabilities |
639.0 |
707.4 |
|||||
Long-term debt |
694.0 |
693.7 |
|||||
Deferred and other income taxes |
24.3 |
27.9 |
|||||
Other long-term liabilities |
109.2 |
115.0 |
|||||
Total long-term liabilities |
827.5 |
836.6 |
|||||
Mezzanine equity |
18.7 |
20.3 |
|||||
Equity: |
|||||||
|
|||||||
Common stock |
0.4 |
0.4 |
|||||
Paid-in capital |
1,681.0 |
1,677.0 |
|||||
Accumulated deficit |
(374.5) |
(369.2) |
|||||
Accumulated other comprehensive loss |
(490.8) |
(426.5) |
|||||
Common stock in treasury |
(25.7) |
(19.3) |
|||||
|
790.4 |
862.4 |
|||||
Noncontrolling interests |
8.8 |
10.7 |
|||||
Total equity |
799.2 |
873.1 |
|||||
TOTAL LIABILITIES, MEZZANINE EQUITY AND EQUITY |
$ |
2,284.4 |
$ |
2,437.4 |
|
|||||||||||||
RESULTS OF REPORTABLE SEGMENTS |
|||||||||||||
(Unaudited; in millions) |
|||||||||||||
As of and for the three months ended |
|||||||||||||
|
|
Change |
%/bps |
||||||||||
Food and Beverage |
|||||||||||||
Backlog |
$ |
251.5 |
$ |
290.0 |
$ |
(38.5) |
(13.3)% |
||||||
Orders |
125.2 |
153.1 |
(27.9) |
(18.2)% |
|||||||||
Revenues |
137.8 |
172.5 |
(34.7) |
(20.1)% |
|||||||||
Gross profit |
49.7 |
51.6 |
(1.9) |
||||||||||
as a percent of revenues |
36.1 |
% |
29.9 |
% |
620bps |
||||||||
Selling, general and administrative expense |
28.8 |
31.6 |
(2.8) |
||||||||||
as a percent of revenues |
20.9 |
% |
18.3 |
% |
260bps |
||||||||
Intangible amortization expense |
1.5 |
1.5 |
— |
||||||||||
Income |
$ |
19.4 |
$ |
18.5 |
$ |
0.9 |
4.9% |
||||||
as a percent of revenues |
14.1 |
% |
10.7 |
% |
340bps |
||||||||
Industrial |
|||||||||||||
Backlog |
$ |
265.5 |
$ |
265.7 |
$ |
(0.2) |
(0.1)% |
||||||
Orders |
191.8 |
204.6 |
(12.8) |
(6.3)% |
|||||||||
Revenues |
151.7 |
200.9 |
(49.2) |
(24.5)% |
|||||||||
Gross profit |
51.4 |
71.8 |
(20.4) |
||||||||||
as a percent of revenues |
33.9 |
% |
35.7 |
% |
(180)bps |
||||||||
Selling, general and administrative expense |
40.7 |
41.9 |
(1.2) |
||||||||||
as a percent of revenue |
26.8 |
% |
20.9 |
% |
590bps |
||||||||
Intangible amortization expense |
1.3 |
1.4 |
(0.1) |
||||||||||
Income |
$ |
9.4 |
$ |
28.5 |
$ |
(19.1) |
(67.0)% |
||||||
as a percent of revenues |
6.2 |
% |
14.2 |
% |
(800)bps |
||||||||
Consolidated Backlog |
$ |
517.0 |
$ |
555.7 |
$ |
(38.7) |
(7.0)% |
||||||
Consolidated Orders |
317.0 |
357.7 |
(40.7) |
(11.4)% |
|||||||||
Consolidated Revenues |
289.5 |
373.4 |
(83.9) |
(22.5)% |
|||||||||
Consolidated Segment Income |
28.8 |
47.0 |
(18.2) |
(38.7)% |
|||||||||
as a percent of revenues |
9.9 |
% |
12.6 |
% |
(270)bps |
||||||||
Total income for reportable segments |
$ |
28.8 |
$ |
47.0 |
$ |
(18.2) |
|||||||
Corporate expense |
15.5 |
13.8 |
1.7 |
||||||||||
Pension and postretirement service costs |
0.2 |
0.2 |
— |
||||||||||
Asset impairment charges |
1.9 |
— |
1.9 |
||||||||||
Restructuring and other related charges |
2.6 |
5.0 |
(2.4) |
||||||||||
Consolidated Operating Income |
$ |
8.6 |
$ |
28.0 |
$ |
(19.4) |
(69.3)% |
||||||
as a percent of revenues |
3.0 |
% |
7.5 |
% |
(450)bps |
|
|||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
(Unaudited; in millions) |
|||||||
Three months ended |
|||||||
|
|
||||||
Cash flows from (used in) operating activities: |
|||||||
Net income (loss) |
$ |
(5.2) |
$ |
20.1 |
|||
Less: Income (loss) from discontinued operations, net of tax |
(5.1) |
5.1 |
|||||
Income (loss) from continuing operations |
(0.1) |
15.0 |
|||||
Adjustments to reconcile income (loss) from continuing operations to net cash from (used in) |
|||||||
Restructuring and other related charges |
2.6 |
5.0 |
|||||
Asset impairment charges |
1.9 |
— |
|||||
Deferred income taxes |
— |
5.3 |
|||||
Depreciation and amortization |
9.8 |
9.6 |
|||||
Stock-based compensation |
3.2 |
2.9 |
|||||
Pension and other employee benefits |
0.4 |
0.4 |
|||||
Loss on asset sales and other, net |
0.5 |
0.1 |
|||||
Gain on change in fair value of investment in equity security |
— |
(6.2) |
|||||
Changes in operating assets and liabilities, net of effects from discontinued operations: |
|||||||
Accounts receivable and other assets |
17.3 |
14.9 |
|||||
Contract assets and liabilities, net |
(1.7) |
(3.9) |
|||||
Inventories |
(15.2) |
(9.6) |
|||||
Accounts payable, accrued expenses and other |
(48.6) |
(22.4) |
|||||
Cash spending on restructuring actions |
(2.3) |
(0.4) |
|||||
Net cash from (used in) continuing operations |
(32.2) |
10.7 |
|||||
Net cash from (used in) discontinued operations |
(0.5) |
11.1 |
|||||
Net cash from (used in) operating activities |
(32.7) |
21.8 |
|||||
Cash flows used in investing activity - |
|||||||
Capital expenditures |
(4.7) |
(5.3) |
|||||
Net cash used in continuing operations |
(4.7) |
(5.3) |
|||||
Net cash used in discontinued operations |
(5.5) |
(1.6) |
|||||
Net cash used in investing activity |
(10.2) |
(6.9) |
|||||
Cash flows used in financing activities: |
|||||||
Borrowings under former senior credit facilities |
— |
22.0 |
|||||
Repayments of former senior credit facilities |
— |
(27.0) |
|||||
Borrowings under former trade receivables financing arrangement |
— |
42.0 |
|||||
Repayments of former trade receivables financing arrangement |
— |
(42.0) |
|||||
Repayments of purchase card program, net |
(7.7) |
(0.9) |
|||||
Repayments of other financing arrangements |
(0.2) |
(1.1) |
|||||
Minimum withholdings paid on behalf of employees for net share settlements, net |
(6.4) |
(5.1) |
|||||
Dividends paid to noncontrolling interests in subsidiary |
(1.2) |
— |
|||||
Net cash used in continuing operations |
(15.5) |
(12.1) |
|||||
Net cash used in discontinued operations |
(0.3) |
(0.1) |
|||||
Net cash used in financing activities |
(15.8) |
(12.2) |
|||||
Change in cash, cash equivalents and restricted cash due to changes in foreign currency exchange |
(0.9) |
(13.8) |
|||||
Net change in cash, cash equivalents and restricted cash |
(59.6) |
(11.1) |
|||||
Consolidated cash, cash equivalents and restricted cash, beginning of period |
303.4 |
214.3 |
|||||
Consolidated cash, cash equivalents and restricted cash, end of period |
$ |
243.8 |
$ |
203.2 |
|
||||||||
ORGANIC REVENUE RECONCILIATION |
||||||||
(Unaudited) |
||||||||
Three months ended |
||||||||
Net Revenue Decline |
Foreign Currency |
Organic Revenue Decline |
||||||
Food and Beverage |
(20.1) |
% |
(3.1) |
% |
(17.0) |
% |
||
Industrial |
(24.5) |
% |
(2.7) |
% |
(21.8) |
% |
||
Consolidated |
(22.5) |
% |
(2.9) |
% |
(19.6) |
% |
|
|||
CASH RECONCILIATION |
|||
(Unaudited; in millions) |
|||
Three months ended |
|||
Beginning cash, cash equivalents and restricted cash |
$ |
303.4 |
|
Net cash used in operating activities of continuing operations |
(32.2) |
||
Net cash used in operating activities of discontinued operations |
(0.5) |
||
Capital expenditures of continuing operations |
(4.7) |
||
Capital expenditures of discontinued operations |
(5.5) |
||
Repayments of purchase card program, net |
(7.7) |
||
Repayments of other financing arrangements |
(0.2) |
||
Minimum withholdings paid on behalf of employees for net share settlements, net |
(6.4) |
||
Dividends paid to noncontrolling interests in subsidiary |
(1.2) |
||
Net cash used in financing activities of discontinued operations |
(0.3) |
||
Change in cash, cash equivalents and restricted cash due to changes in foreign currency exchange |
(0.9) |
||
Ending cash, cash equivalents and restricted cash |
$ |
243.8 |
|
|||||||
DEBT, NET DEBT AND ADJUSTED NET DEBT RECONCILIATION |
|||||||
(Unaudited; in millions) |
|||||||
Debt, Net Debt and Adjusted Net Debt at |
|||||||
|
|
||||||
Term loan |
$ |
100.0 |
$ |
100.0 |
|||
5.625% senior notes, due in |
300.0 |
300.0 |
|||||
5.875% senior notes, due in |
300.0 |
300.0 |
|||||
Other indebtedness - continuing operations |
13.4 |
21.3 |
|||||
Other indebtedness - discontinued operations |
3.6 |
4.1 |
|||||
Less: deferred financing fees |
(6.5) |
(6.8) |
|||||
Total debt |
$ |
710.5 |
$ |
718.6 |
|||
Total debt |
$ |
710.5 |
$ |
718.6 |
|||
Less: cash and equivalents - continuing operations |
(235.9) |
(299.2) |
|||||
Less: cash and equivalents - discontinued operations |
(6.9) |
(3.1) |
|||||
Net debt |
$ |
467.7 |
$ |
416.3 |
|||
Net debt |
$ |
467.7 |
$ |
416.3 |
|||
Less: debt under purchase card program |
(12.7) |
(20.4) |
|||||
Adjusted net debt |
$ |
455.0 |
$ |
395.9 |
|
|||||||
FREE CASH FLOW RECONCILIATION |
|||||||
(Unaudited; in millions) |
|||||||
Three months ended |
|||||||
|
|
||||||
Net cash from (used in) operating activities - continuing and discontinued operations |
$ |
(32.7) |
$ |
21.8 |
|||
Capital expenditures - continuing and discontinued operations |
(10.2) |
(6.9) |
|||||
Free cash flow from (used in) operations - continuing and discontinued operations |
$ |
(42.9) |
$ |
14.9 |
|
|||||||
ADJUSTED OPERATING INCOME RECONCILIATION |
|||||||
(Unaudited; in millions) |
|||||||
Three months ended |
|||||||
|
|
||||||
Operating income |
$ |
8.6 |
$ |
28.0 |
|||
Charges and fees associated with strategic actions |
0.8 |
— |
|||||
Certain restructuring and other related charges |
2.6 |
4.1 |
|||||
Asset impairment charges |
1.9 |
— |
|||||
Adjusted operating income |
$ |
13.9 |
$ |
32.1 |
|
|||||||
EBITDA RECONCILIATION |
|||||||
(Unaudited; in millions) |
|||||||
Three months ended(1) |
|||||||
|
|
||||||
Net income (loss) attributable to |
$ |
(5.3) |
$ |
19.5 |
|||
Income tax provision (benefit) |
(1.8) |
10.7 |
|||||
Interest expense, net |
9.7 |
10.7 |
|||||
Depreciation and amortization |
9.8 |
13.8 |
|||||
EBITDA |
12.4 |
54.7 |
|||||
Loss on disposal group |
8.5 |
— |
|||||
Asset impairment charges |
1.9 |
— |
|||||
Charges and fees associated with strategic actions |
5.0 |
1.1 |
|||||
Fair value adjustment related to an equity security |
— |
(6.2) |
|||||
Non-cash compensation expense |
4.0 |
3.2 |
|||||
Non-service pension and postretirement related costs |
0.2 |
0.2 |
|||||
Interest income |
1.0 |
2.0 |
|||||
Losses on asset sales and other, net |
0.5 |
0.1 |
|||||
Restructuring and other related charges |
2.9 |
5.0 |
|||||
Foreign exchange losses |
1.1 |
1.2 |
|||||
Other |
0.2 |
0.2 |
|||||
Bank consolidated EBITDA |
$ |
37.7 |
$ |
61.5 |
|||
(1) Includes the results of continuing operations and discontinued operations |
|
|||||||
ADJUSTED EBITDA FROM CONTINUING OPERATIONS RECONCILIATION |
|||||||
(Unaudited; in millions) |
|||||||
Three months ended |
|||||||
|
|
||||||
Net income (loss) attributable to |
$ |
(0.3) |
$ |
14.7 |
|||
Income tax provision (benefit) |
(0.9) |
10.7 |
|||||
Interest expense, net |
8.1 |
7.6 |
|||||
Depreciation and amortization |
9.8 |
9.6 |
|||||
EBITDA from continuing operations |
16.7 |
42.6 |
|||||
Asset impairment charges |
1.9 |
— |
|||||
Certain restructuring and other related charges |
2.6 |
4.1 |
|||||
Charges and fees associated with strategic actions |
0.8 |
— |
|||||
Fair value adjustment related to an equity security |
— |
(6.2) |
|||||
Adjusted EBITDA from continuing operations |
$ |
22.0 |
$ |
40.5 |
|
|||||||
ADJUSTED DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS RECONCILIATION |
|||||||
(Unaudited) |
|||||||
Three months ended |
|||||||
|
|
||||||
Diluted earnings (loss) per share from continuing operations |
$ |
(0.01) |
$ |
0.35 |
|||
Certain restructuring and other related charges, net of tax |
0.05 |
0.07 |
|||||
Asset impairment charge, net of tax |
0.03 |
— |
|||||
Charges and fees associated with strategic actions, net of tax |
0.01 |
— |
|||||
Discrete tax charges (benefits) |
(0.02) |
0.04 |
|||||
Fair value adjustment related to an equity security, net of tax |
— |
(0.10) |
|||||
Adjusted diluted earnings per share from continuing operations |
$ |
0.06 |
$ |
0.36 |
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