CHARLOTTE, N.C., Nov. 10, 2021 /PRNewswire/ -- SPX FLOW, Inc.
(NYSE: FLOW), a leading provider of process solutions for the
nutrition, health and precision solutions markets, today reported
results for the quarter ended October 2, 2021.
"SPX FLOW's strong performance in the first nine months of the
year is a direct result of our strategic plan and the inspired work
of our solution makers," said Marc
Michael, SPX FLOW President and CEO. "Throughout the year,
the team has overcome the unique challenges of the current
environment and helped deliver better-than-expected operating
results. Demand for our essential products remains strong and our
value-based pricing strategy, combined with our supply chain and
productivity initiatives, have enabled us to be price/cost positive
for the year. In addition, we continue to invest our time and
financial resources to create differentiated customer experiences
for our key accounts, including rapid aftermarket support and
accelerated new product development. When combined with our
structural cost savings program, we expect to drive outsized gains
in operating margins in 2021 and beyond."
"During the quarter, our Board of Directors initiated a formal
review of strategic alternatives, including a possible sale,
merger, or the continued execution of our standalone strategy. This
robust review is progressing as planned and we will update our
shareholders at the conclusion of the process."
"We continue to focus on accelerating customer outcomes and
operating improvements by focusing on our strategic plan and 80/20
principles. We will remain disciplined as we focus on growing
earnings allowing us to reinvest in the business, execute on
strategic acquisitions and distribute excess cash to our
shareholders." concluded Michael.
Outlook:
The company expects to deliver quarterly adjusted operating
margins of approximately 14.5% in the fourth quarter and 12.5% for
the full year. The fourth quarter and full year performance are
well ahead of the company's previously announced guidance for the
first year of its 3-year framework. In addition to an improved
margin outlook, the company is raising expectations for organic
revenue growth in 2021. Organic revenue growth for the full-year is
now expected to be high-single digits versus a prior assumption of
mid-single digits.
|
Third Quarter 2021
Consolidated Results (continuing operations unless otherwise
noted)
|
|
|
$ millions
|
Q3
2021
|
|
Q3
2020
|
|
Variance
|
|
Organic
Variance
|
|
Backlog
|
$
|
597.8
|
|
|
$
|
530.4
|
|
|
12.7
|
%
|
|
2.5
|
%
|
|
Orders
|
384.1
|
|
|
327.6
|
|
|
17.2
|
%
|
|
9.3
|
%
|
|
Revenues
|
389.6
|
|
|
356.9
|
|
|
9.2
|
%
|
|
3.3
|
%
|
|
|
|
|
|
|
|
|
|
Operating
income
|
39.2
|
|
|
31.6
|
|
|
24.1
|
%
|
|
|
|
Margin %
|
10.1
|
%
|
|
8.9
|
%
|
|
120
bps
|
|
|
|
Adjusted operating
income*
|
50.4
|
|
|
40.3
|
|
|
25.1
|
%
|
|
|
|
Margin %
|
12.9
|
%
|
|
11.3
|
%
|
|
160
bps
|
|
|
|
Segment
income
|
56.0
|
|
|
52.8
|
|
|
6.1
|
%
|
|
|
|
Margin
%
|
14.4
|
%
|
|
14.8
|
%
|
|
-40
bps
|
|
|
|
|
|
|
|
|
|
|
|
Operating cash flow
from continuing operations
|
8.1
|
|
|
39.1
|
|
|
|
|
|
|
Adjusted free cash
flow from continuing operations*
|
6.7
|
|
|
38.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations, net of tax
|
23.4
|
|
|
16.3
|
|
|
|
|
|
|
Adjusted EBITDA from
continuing operations*
|
57.9
|
|
|
46.8
|
|
|
|
|
|
|
|
Note: The
commentary below is compared to the prior-year period. All comments
refer to continuing operations unless otherwise
noted.
|
- Backlog increased 12.7%, or $67.4
million, primarily due to the positive impacts of foreign
exchange rates and current year acquisitions. Organically, backlog
increased 2.5% with a 9.6% increase in Precision Solutions segment
backlog that was only partially offset by a 4.3% decline in the
Nutrition & Health segment.
- Orders increased 9.3% organically, or $30.5 million, driven primarily by an 18.5% or
$31.2 million increase in Precision
Solutions segment orders, offset slightly by a 0.4% decrease in
Nutrition & Health segment orders.
- Revenues increased 9.2%, or $32.7
million primarily driven by a 3.3% increase in organic
revenues, with 4.5% organic growth in the Nutrition & Health
segment and 2.3% organic growth in the Precision Solutions segment.
Additionally, current year acquisitions increased revenue by
4.3%.
- Operating income was $39.2
million, or 10.1% of revenues. After excluding discrete,
non-operational and non-cash items and reclassifying transitional
services income, adjusted operating income* was $50.4 million, or 12.9% of revenues, representing
an increase of approximately 160 basis points year-over-year on a
comparable basis.
- Segment income was $56.0 million,
up 6.1%, and segment margin decreased by 40 basis points to 14.4%.
The increase in segment income was primarily driven by operating
leverage related to meaningful volume recovery across both
segments, price realization and structural SG&A cost savings,
offset slightly by increased intangible amortization charges and
the impact of fair value adjustments to inventory directly
attributable to the company's acquisition strategy. Excluding the
impact of higher intangible amortization charges and fair value
adjustments, adjusted segment income* was $62.3 million, up 12.1% and adjusted segment
margin* increased by 40 basis points to 16.0%.
- Adjusted free cash flow* from continuing operations was
$6.7 million, including investments
of $9.1 million on capital
expenditures and excluding $4.5
million of discrete tax payments, $2.5 million on restructuring actions and
$0.7 million on certain M&A
activities.
- Nutrition & Health segment revenues increased 5.9%
primarily driven by a 4.5% increase in organic revenues related to
a higher shippable backlog entering the quarter and elevated
short-cycle book and turn activity. Segment income was $24.6 million, up 1.7% from the prior year.
Adjusted segment income* was $26.2
million, up 1.9%, and adjusted segment margin* decreased by
60 basis points to 15.4%. The increase in adjusted segment income*
was primarily driven by higher revenue and SG&A cost
reductions. Decreased margins were primarily the result of
transitory supply chain conditions which offset the leverage we
experienced on our structural cost reduction programs and organic
revenue growth.
- Precision Solutions segment revenues increased 11.8%, primarily
driven by a 7.9% increase related to current year acquisitions and
a 2.3% increase in organic revenues related to an elevated level of
short-cycle book-and-turn business, offset partially by project
selectivity and timing of revenue conversion. Segment income was
$31.4 million, up 9.8% from the
prior-year. Adjusted segment income* was $36.1 million, up 20.7%, and adjusted segment
margin* increased by 120 basis points to 16.4%, driven by improved
mix and positive price/cost. The increase in adjusted segment
income* was primarily driven by higher volume, increased price
realization and SG&A cost reductions.
OTHER ITEMS
About SPX FLOW, Inc.: Based in Charlotte, N.C., SPX FLOW, Inc. (NYSE: FLOW)
improves the world through innovative and sustainable solutions.
The company's product offering is concentrated in process
technologies that perform mixing, blending, fluid handling,
separation, thermal heat transfer and other activities that are
integral to processes performed across a wide variety of nutrition,
health and precision solutions markets. SPX FLOW had approximately
$1.4 billion in 2020 annual revenues
and has operations in more than 30 countries and sales in more than
140 countries. To learn more about SPX FLOW, please visit
www.spxflow.com.
On July 26, 2021 we announced that
our Board of Directors authorized a review of strategic
alternatives, including a possible sale or merger of the Company
and the continued execution of the Company's standalone strategy.
No assurances can be given regarding the outcome or timing of the
review process. Until completed or until we deem appropriate, we do
not intend to make any further public comments around the
process.
*Non-GAAP measure. See attached schedules for reconciliation
from most comparable GAAP measure. Management believes these
non-GAAP measures 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 measures
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.
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. The words "expects," "anticipates," "plans," "targets,"
"projects," "believes," "estimates," "forecasts," "intends,"
"should," "could," "would," "will," "may" 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. These statements are only predictions.
Actual events or results may differ materially because of market
conditions or other factors, and forward-looking statements should
not be relied upon as a prediction of actual results. Among other
factors that may affect future performance are: the impact of the
COVID-19 pandemic and governmental and other actions taken in
response, including impacts on economic activity, potential supply
chain disruptions, impacts on labor cost and labor availability,
and shipping constraints; 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, component products
and/or commodities that cannot be recovered in product pricing;
overruns, the incurrence of delays, penalties or liquidated damages
with respect to long-term fixed-price contracts; international
economic, political, legal, accounting and business developments
adversely affecting the company's ability to do business in
emerging markets; ability to identify acceptable strategic
acquisition targets; uncertainties surrounding timing, successful
completion or integration of acquisitions and similar transactions;
inadequate performance by third-party suppliers and subcontractors
for outsourced products; defects or errors in current or planned
products; potential labor disputes, extreme weather conditions and
natural and other disasters; compliance costs associated with
environmental laws and regulations; threats associated with and
efforts to combat terrorism and cyber-security risks; global
competitive market conditions, including global reactions to U.S.
trade policies, and resulting effects on sales and pricing; and
global economic factors, including currency exchange rates,
difficulties entering new markets and general economic conditions
such as inflation, deflation, interest rates and credit
availability. These risk factors may not be exhaustive. Further,
the company operates in a continually changing business environment
and cannot predict new risk factors that may arise as a result of
these and other changes. Statements in this press release speak
only as of the date of this press release, and SPX FLOW disclaims
any responsibility to update or revise such statements.
Investor Contact:
Scott
Gaffner
VP, Investor Relations and Strategic Insights
704-752-4485
investor@spxflow.com
Media Contact:
Peter
Smolowitz
External Communications Manager
704-341-2915
peter.smolowitz@spxflow.com
|
SPX FLOW, INC. AND
SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(Unaudited; in
millions, except per share amounts)
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
October 2,
2021
|
|
September 26,
2020
|
|
October 2,
2021
|
|
September 26,
2020
|
|
Revenues
|
$
|
389.6
|
|
|
$
|
356.9
|
|
|
$
|
1,135.0
|
|
|
$
|
954.5
|
|
|
Cost of products
sold
|
250.6
|
|
|
230.8
|
|
|
735.8
|
|
|
613.8
|
|
|
Gross
profit
|
139.0
|
|
|
126.1
|
|
|
399.2
|
|
|
340.7
|
|
|
Selling, general and
administrative
|
93.3
|
|
|
89.9
|
|
|
277.5
|
|
|
265.9
|
|
|
Intangible
amortization
|
5.9
|
|
|
2.8
|
|
|
13.6
|
|
|
8.5
|
|
|
Asset impairment
charges
|
—
|
|
|
0.5
|
|
|
—
|
|
|
3.2
|
|
|
Restructuring and
other related charges
|
0.6
|
|
|
1.3
|
|
|
14.1
|
|
|
8.7
|
|
|
Operating
income
|
39.2
|
|
|
31.6
|
|
|
94.0
|
|
|
54.4
|
|
|
|
|
|
|
|
|
|
|
Other income,
net
|
9.5
|
|
|
4.2
|
|
|
18.1
|
|
|
8.5
|
|
|
Interest expense,
net
|
(4.2)
|
|
|
(7.4)
|
|
|
(14.0)
|
|
|
(24.9)
|
|
|
Loss on early
extinguishment of debt
|
(12.4)
|
|
|
(11.0)
|
|
|
(12.4)
|
|
|
(11.0)
|
|
|
Income from continuing
operations before income taxes
|
32.1
|
|
|
17.4
|
|
|
85.7
|
|
|
27.0
|
|
|
Income tax
provision
|
(8.6)
|
|
|
(0.7)
|
|
|
(31.6)
|
|
|
(3.7)
|
|
|
Income from
continuing operations
|
23.5
|
|
|
16.7
|
|
|
54.1
|
|
|
23.3
|
|
|
Income (loss) from
discontinued operations, net of tax
|
0.1
|
|
|
(4.2)
|
|
|
(0.8)
|
|
|
(40.9)
|
|
|
Net income
(loss)
|
23.6
|
|
|
12.5
|
|
|
53.3
|
|
|
(17.6)
|
|
|
Less: Net income
attributable to noncontrolling interests
|
0.1
|
|
|
0.4
|
|
|
0.4
|
|
|
0.7
|
|
|
Net income (loss)
attributable to SPX FLOW, Inc.
|
$
|
23.5
|
|
|
$
|
12.1
|
|
|
$
|
52.9
|
|
|
$
|
(18.3)
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable
to SPX FLOW, Inc. common shareholders:
|
|
|
|
|
|
|
|
|
Income from continuing
operations, net of tax
|
$
|
23.4
|
|
|
$
|
16.3
|
|
|
$
|
53.7
|
|
|
$
|
22.5
|
|
|
Income (loss) from
discontinued operations, net of tax
|
0.1
|
|
|
(4.2)
|
|
|
(0.8)
|
|
|
(40.8)
|
|
|
Net income (loss)
attributable to SPX FLOW, Inc.
|
$
|
23.5
|
|
|
$
|
12.1
|
|
|
$
|
52.9
|
|
|
$
|
(18.3)
|
|
|
|
|
|
|
|
|
|
|
Basic income (loss)
per share of common stock:
|
|
|
|
|
|
|
|
|
Income per share from
continuing operations
|
$
|
0.56
|
|
|
$
|
0.39
|
|
|
$
|
1.28
|
|
|
$
|
0.53
|
|
|
Income (loss) per share
from discontinued operations
|
—
|
|
|
(0.10)
|
|
|
(0.02)
|
|
|
(0.96)
|
|
|
Net income (loss) per
share attributable to SPX FLOW, Inc.
|
0.56
|
|
|
0.29
|
|
|
1.26
|
|
|
(0.43)
|
|
|
Diluted income (loss)
per share of common stock:
|
|
|
|
|
|
|
|
|
Income per share from
continuing operations
|
$
|
0.56
|
|
|
$
|
0.39
|
|
|
$
|
1.28
|
|
|
$
|
0.53
|
|
|
Income (loss) per share
from discontinued operations
|
—
|
|
|
(0.10)
|
|
|
(0.02)
|
|
|
(0.96)
|
|
|
Net income (loss) per
share attributable to SPX FLOW, Inc.
|
0.56
|
|
|
0.29
|
|
|
1.26
|
|
|
(0.43)
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding - basic
|
41.952
|
|
|
42.127
|
|
|
41.924
|
|
|
42.425
|
|
|
Weighted average
number of common shares outstanding - diluted
|
41.960
|
|
|
42.450
|
|
|
41.956
|
|
|
42.640
|
|
|
SPX FLOW, INC. AND
SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(Unaudited; in
millions)
|
|
|
October 2,
2021
|
|
December 31,
2020
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and
equivalents
|
$
|
313.6
|
|
$
|
441.5
|
|
Accounts receivable,
net
|
241.2
|
|
232.6
|
|
Contract
assets
|
27.7
|
|
24.4
|
|
Inventories,
net
|
245.7
|
|
199.3
|
|
Other current
assets
|
31.7
|
|
27.4
|
|
Total current
assets
|
859.9
|
|
925.2
|
|
Property, plant and
equipment:
|
|
|
|
|
Land
|
22.1
|
|
22.8
|
|
Buildings and
leasehold improvements
|
171.7
|
|
176.8
|
|
Machinery and
equipment
|
355.4
|
|
349.1
|
|
549.2
|
|
548.7
|
|
Accumulated
depreciation
|
(315.1)
|
|
(320.6)
|
|
Property, plant and
equipment, net
|
234.1
|
|
228.1
|
|
Goodwill
|
595.2
|
|
569.7
|
|
Intangibles,
net
|
227.9
|
|
206.0
|
|
Other
assets
|
175.6
|
|
169.5
|
|
TOTAL
ASSETS
|
$
|
2,092.7
|
|
$
|
2,098.5
|
|
|
|
|
|
LIABILITIES,
MEZZANINE EQUITY AND EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
|
169.3
|
|
$
|
149.1
|
|
Contract
liabilities
|
115.3
|
|
119.5
|
|
Accrued
expenses
|
180.7
|
|
178.7
|
|
Income taxes
payable
|
19.3
|
|
23.0
|
|
Short-term
debt
|
15.4
|
|
12.5
|
|
Current maturities of
long-term debt
|
20.0
|
|
0.1
|
|
Total current
liabilities
|
520.0
|
|
482.9
|
|
Long-term
debt
|
379.1
|
|
397.3
|
|
Deferred and other
income taxes
|
35.7
|
|
36.6
|
|
Other long-term
liabilities
|
114.5
|
|
117.5
|
|
Total long-term
liabilities
|
529.3
|
|
551.4
|
|
Mezzanine
equity
|
3.3
|
|
3.4
|
|
Equity:
|
|
|
|
|
SPX FLOW, Inc.
shareholders' equity:
|
|
|
|
|
Common
stock
|
0.4
|
|
0.4
|
|
Paid-in
capital
|
1,723.8
|
|
1,696.9
|
|
Accumulated
deficit
|
(321.8)
|
|
(363.3)
|
|
Accumulated other
comprehensive loss
|
(268.9)
|
|
(226.4)
|
|
Common stock in
treasury
|
(92.7)
|
|
(46.2)
|
|
Total SPX FLOW, Inc.
shareholders' equity
|
1,040.8
|
|
1,061.4
|
|
Noncontrolling
interests
|
(0.7)
|
|
(0.6)
|
|
Total
equity
|
1,040.1
|
|
1,060.8
|
|
TOTAL LIABILITIES,
MEZZANINE EQUITY AND EQUITY
|
$
|
2,092.7
|
|
$
|
2,098.5
|
|
SPX FLOW, INC. AND
SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(Unaudited; in
millions)
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
23.6
|
|
|
$
|
12.5
|
|
|
$
|
53.3
|
|
|
$
|
(17.6)
|
|
|
Less: Income (loss)
from discontinued operations, net of tax
|
0.1
|
|
|
(4.2)
|
|
|
(0.8)
|
|
|
(40.9)
|
|
|
Income from
continuing operations
|
23.5
|
|
|
16.7
|
|
|
54.1
|
|
|
23.3
|
|
|
Adjustments to
reconcile income from continuing operations to net cash from
operating activities:
|
|
|
|
|
|
|
|
|
Restructuring and
other related charges
|
0.6
|
|
|
1.3
|
|
|
14.1
|
|
|
8.7
|
|
|
Asset impairment
charges
|
—
|
|
|
0.5
|
|
|
—
|
|
|
3.2
|
|
|
Deferred income
taxes
|
(5.2)
|
|
|
0.1
|
|
|
2.5
|
|
|
18.9
|
|
|
Depreciation and
amortization
|
13.3
|
|
|
10.2
|
|
|
35.3
|
|
|
30.2
|
|
|
Stock-based
compensation
|
3.8
|
|
|
3.6
|
|
|
9.6
|
|
|
10.6
|
|
|
Pension and other
employee benefits
|
0.2
|
|
|
0.3
|
|
|
0.8
|
|
|
1.0
|
|
|
Gains on asset sales
and other, net
|
(7.5)
|
|
|
(1.3)
|
|
|
(7.8)
|
|
|
(0.9)
|
|
|
Gains on changes in
fair value of investment in equity security
|
(1.6)
|
|
|
(2.1)
|
|
|
(9.1)
|
|
|
(7.4)
|
|
|
Losses on early
extinguishment of debt
|
12.4
|
|
|
11.0
|
|
|
12.4
|
|
|
11.0
|
|
|
Changes in operating
assets and liabilities, net of effects from business acquisitions
and discontinued operations:
|
|
|
|
|
|
|
|
|
Accounts receivable
and other assets
|
9.9
|
|
|
(12.1)
|
|
|
(9.6)
|
|
|
16.2
|
|
|
Contract assets and
liabilities, net
|
(11.9)
|
|
|
1.1
|
|
|
(10.0)
|
|
|
4.4
|
|
|
Inventories
|
(10.1)
|
|
|
17.9
|
|
|
(37.8)
|
|
|
(11.2)
|
|
|
Accounts payable,
accrued expenses and other
|
(16.8)
|
|
|
(5.3)
|
|
|
(2.1)
|
|
|
(68.9)
|
|
|
Cash spending on
restructuring actions
|
(2.5)
|
|
|
(2.8)
|
|
|
(10.4)
|
|
|
(7.5)
|
|
|
Net cash from
continuing operations
|
8.1
|
|
|
39.1
|
|
|
42.0
|
|
|
31.6
|
|
|
Net cash from (used in)
discontinued operations
|
0.1
|
|
|
(1.9)
|
|
|
(0.6)
|
|
|
(8.3)
|
|
|
Net cash from
operating activities
|
8.2
|
|
|
37.2
|
|
|
41.4
|
|
|
23.3
|
|
|
Cash flows from
(used in) investing activities:
|
|
|
|
|
|
|
|
|
Proceeds from asset
sales and other, net
|
11.5
|
|
|
3.1
|
|
|
12.1
|
|
|
3.3
|
|
|
Capital
expenditures
|
(9.1)
|
|
|
(5.5)
|
|
|
(23.5)
|
|
|
(17.3)
|
|
|
Business acquisitions,
net of cash acquired of $4.5 in the nine months ended October 2,
2021 and of $— in the three and nine months ended September 26,
2020
|
—
|
|
|
(10.0)
|
|
|
(102.6)
|
|
|
(10.0)
|
|
|
Net cash from (used
in) continuing operations
|
2.4
|
|
|
(12.4)
|
|
|
(114.0)
|
|
|
(24.0)
|
|
|
Net cash from
discontinued operations (includes proceeds from disposition of
$406.2, less cash and restricted cash disposed of $7.3, in the nine
months ended September 26, 2020)
|
—
|
|
|
—
|
|
|
—
|
|
|
393.4
|
|
|
Net cash from (used
in) investing activities
|
2.4
|
|
|
(12.4)
|
|
|
(114.0)
|
|
|
369.4
|
|
|
Cash flows used in
financing activities:
|
|
|
|
|
|
|
|
|
Borrowings under
amended senior credit facility
|
400.0
|
|
|
—
|
|
|
400.0
|
|
|
—
|
|
|
Repurchases of senior
notes (includes premiums paid of $8.8 in the three and nine months
ended October 2, 2021 and of $8.4 in the three and nine months
ended September 26, 2020)
|
(308.8)
|
|
|
(308.4)
|
|
|
(308.8)
|
|
|
(308.4)
|
|
|
Repayments of former
senior credit facility
|
(100.0)
|
|
|
—
|
|
|
(100.0)
|
|
|
—
|
|
|
Borrowings under
(repayments of) purchase card program, net
|
0.1
|
|
|
(6.8)
|
|
|
2.9
|
|
|
(11.6)
|
|
|
Repayments of other
financing arrangements
|
(0.5)
|
|
|
—
|
|
|
(1.7)
|
|
|
(0.3)
|
|
|
Financing fees
paid
|
(2.9)
|
|
|
—
|
|
|
(2.9)
|
|
|
—
|
|
|
Purchases of common
stock
|
(5.7)
|
|
|
(10.7)
|
|
|
(40.2)
|
|
|
(16.9)
|
|
|
Proceeds from the
exercise of employee stock options
|
—
|
|
|
—
|
|
|
17.6
|
|
|
—
|
|
|
Minimum withholdings
paid on behalf of employees for net share settlements,
net
|
(0.3)
|
|
|
(0.1)
|
|
|
(6.6)
|
|
|
(6.9)
|
|
|
Dividends paid
(includes noncontrolling interest distributions of $1.2 in the nine
months ended September 26, 2020)
|
(3.8)
|
|
|
—
|
|
|
(7.6)
|
|
|
(1.2)
|
|
|
Purchases of
noncontrolling interests
|
—
|
|
|
(8.2)
|
|
|
(0.6)
|
|
|
(8.2)
|
|
|
Net cash used in
continuing operations
|
(21.9)
|
|
|
(334.2)
|
|
|
(47.9)
|
|
|
(353.5)
|
|
|
Net cash used in
discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.3)
|
|
|
Net cash used in
financing activities
|
(21.9)
|
|
|
(334.2)
|
|
|
(47.9)
|
|
|
(353.8)
|
|
|
Change in cash, cash
equivalents and restricted cash due to changes in foreign currency
exchange rates
|
0.8
|
|
|
4.8
|
|
|
(7.4)
|
|
|
10.2
|
|
|
Net change in cash,
cash equivalents and restricted cash
|
(10.5)
|
|
|
(304.6)
|
|
|
(127.9)
|
|
|
49.1
|
|
|
Consolidated cash,
cash equivalents and restricted cash, beginning of
period
|
324.2
|
|
|
657.1
|
|
|
441.6
|
|
|
303.4
|
|
|
Consolidated cash,
cash equivalents and restricted cash, end of period
|
$
|
313.7
|
|
|
$
|
352.5
|
|
|
$
|
313.7
|
|
|
$
|
352.5
|
|
|
SPX FLOW, INC. AND
SUBSIDIARIES
|
|
ADJUSTED FREE CASH
FLOW RECONCILIATION
|
|
(Unaudited; in
millions)
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
October 2,
2021
|
|
September 26,
2020
|
|
October 2,
2021
|
|
September 26,
2020
|
|
Net cash flow from
operating activities - continuing and discontinued
operations
|
$
|
8.2
|
|
|
$
|
37.2
|
|
|
$
|
41.4
|
|
|
$
|
23.3
|
|
|
Less: Net cash flow
from (used in) operating activities - discontinued
operations
|
0.1
|
|
|
(1.9)
|
|
|
(0.6)
|
|
|
(8.3)
|
|
|
Net cash flow from
operating activities - continuing operations
|
8.1
|
|
|
39.1
|
|
|
42.0
|
|
|
31.6
|
|
|
Capital
expenditures - continuing operations
|
(9.1)
|
|
|
(5.5)
|
|
|
(23.5)
|
|
|
(17.3)
|
|
|
Free cash flow from
(used in) operations - continuing operations
|
(1.0)
|
|
|
33.6
|
|
|
18.5
|
|
|
14.3
|
|
|
Cash spending on
restructuring actions
|
2.5
|
|
|
2.8
|
|
|
10.4
|
|
|
7.5
|
|
|
Cash spending on
certain M&A activities
|
0.7
|
|
|
—
|
|
|
4.6
|
|
|
—
|
|
|
Cash spending on
strategic actions
|
—
|
|
|
2.2
|
|
|
—
|
|
|
6.4
|
|
|
Discrete cash tax
payments
|
4.5
|
|
|
—
|
|
|
4.5
|
|
|
17.1
|
|
|
Adjusted free cash
flow from operations
|
$
|
6.7
|
|
|
$
|
38.6
|
|
|
$
|
38.0
|
|
|
$
|
45.3
|
|
|
SPX FLOW, INC. AND
SUBSIDIARIES
|
|
RESULTS OF
REPORTABLE SEGMENTS
|
|
(Unaudited; in
millions)
|
|
|
As of and for the
three
months ended
|
|
|
|
|
|
As of and for the
nine
months
ended
|
|
|
|
|
|
October 2,
2021
|
|
September 26,
2020
|
|
Δ
|
|
%/bps
|
|
October 2,
2021
|
|
September 26,
2020
|
|
Δ
|
|
%/bps
|
|
Nutrition and
Health
|
|
Backlog
|
$
|
262.0
|
|
|
$
|
269.2
|
|
|
$
|
(7.2)
|
|
|
(2.7)
|
%
|
|
$
|
262.0
|
|
|
$
|
269.2
|
|
|
$
|
(7.2)
|
|
|
(2.7)
|
%
|
|
Orders
|
$
|
160.2
|
|
|
$
|
159.0
|
|
|
$
|
1.2
|
|
|
0.8
|
%
|
|
$
|
504.0
|
|
|
$
|
435.1
|
|
|
$
|
68.9
|
|
|
15.8
|
%
|
|
Revenues
|
$
|
170.1
|
|
|
$
|
160.6
|
|
|
$
|
9.5
|
|
|
5.9
|
%
|
|
$
|
510.0
|
|
|
$
|
443.1
|
|
|
$
|
66.9
|
|
|
15.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
income
|
$
|
24.6
|
|
|
$
|
24.2
|
|
|
$
|
0.4
|
|
|
1.7
|
%
|
|
$
|
79.6
|
|
|
$
|
62.7
|
|
|
$
|
16.9
|
|
|
27.0
|
%
|
|
Intangible
amortization expense
|
1.6
|
|
|
1.5
|
|
|
0.1
|
|
|
|
|
4.8
|
|
|
4.6
|
|
|
0.2
|
|
|
|
|
Adjusted segment
income
|
$
|
26.2
|
|
|
$
|
25.7
|
|
|
$
|
0.5
|
|
|
1.9
|
%
|
|
$
|
84.4
|
|
|
$
|
67.3
|
|
|
$
|
17.1
|
|
|
25.4
|
%
|
|
as a percent of
revenues
|
15.4
|
%
|
|
16.0
|
%
|
|
|
|
(60)bps
|
|
16.5
|
%
|
|
15.2
|
%
|
|
|
|
130bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Precision
Solutions
|
|
Backlog
|
$
|
335.8
|
|
|
$
|
261.2
|
|
|
$
|
74.6
|
|
|
28.6%
|
|
$
|
335.8
|
|
|
$
|
261.2
|
|
|
$
|
74.6
|
|
|
28.6%
|
|
Orders
|
$
|
223.9
|
|
|
$
|
168.6
|
|
|
$
|
55.3
|
|
|
32.8%
|
|
$
|
656.6
|
|
|
$
|
529.9
|
|
|
$
|
126.7
|
|
|
23.9%
|
|
Revenues
|
$
|
219.5
|
|
|
$
|
196.3
|
|
|
$
|
23.2
|
|
|
11.8%
|
|
$
|
625.0
|
|
|
$
|
511.4
|
|
|
$
|
113.6
|
|
|
22.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
income
|
$
|
31.4
|
|
|
$
|
28.6
|
|
|
$
|
2.8
|
|
|
9.8%
|
|
$
|
76.4
|
|
|
$
|
57.9
|
|
|
$
|
18.5
|
|
|
32.0%
|
|
Intangible
amortization expense
|
4.3
|
|
|
1.3
|
|
|
3.0
|
|
|
|
|
8.8
|
|
|
3.9
|
|
|
4.9
|
|
|
|
|
Purchase accounting -
amortization of inventory fair value adjustment
|
0.4
|
|
|
—
|
|
|
0.4
|
|
|
|
|
1.9
|
|
|
—
|
|
|
1.9
|
|
|
|
|
Adjusted segment
income
|
$
|
36.1
|
|
|
$
|
29.9
|
|
|
$
|
6.2
|
|
|
20.7%
|
|
$
|
87.1
|
|
|
$
|
61.8
|
|
|
$
|
25.3
|
|
|
40.9%
|
|
as a percent of
revenues
|
16.4
|
%
|
|
15.2
|
%
|
|
|
|
120bps
|
|
13.9
|
%
|
|
12.1
|
%
|
|
|
|
180bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Backlog
|
$
|
597.8
|
|
|
$
|
530.4
|
|
|
$
|
67.4
|
|
|
12.7%
|
|
$
|
597.8
|
|
|
$
|
530.4
|
|
|
$
|
67.4
|
|
|
12.7%
|
|
Consolidated
Orders
|
$
|
384.1
|
|
|
$
|
327.6
|
|
|
$
|
56.5
|
|
|
17.2%
|
|
$
|
1,160.6
|
|
|
$
|
965.0
|
|
|
$
|
195.6
|
|
|
20.3%
|
|
Consolidated
Revenues
|
$
|
389.6
|
|
|
$
|
356.9
|
|
|
$
|
32.7
|
|
|
9.2%
|
|
$
|
1,135.0
|
|
|
$
|
954.5
|
|
|
$
|
180.5
|
|
|
18.9%
|
|
Consolidated
Segment Income
|
$
|
56.0
|
|
|
$
|
52.8
|
|
|
$
|
3.2
|
|
|
6.1%
|
|
$
|
156.0
|
|
|
$
|
120.6
|
|
|
$
|
35.4
|
|
|
29.4%
|
|
Consolidated
Adjusted Segment Income
|
$
|
62.3
|
|
|
$
|
55.6
|
|
|
$
|
6.7
|
|
|
12.1%
|
|
$
|
171.5
|
|
|
$
|
129.1
|
|
|
$
|
42.4
|
|
|
32.8%
|
|
as a percent of
revenues
|
16.0
|
%
|
|
15.6
|
%
|
|
|
|
40bps
|
|
15.1
|
%
|
|
13.5
|
%
|
|
|
|
160bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Adjusted Segment Income
|
$
|
62.3
|
|
|
$
|
55.6
|
|
|
$
|
6.7
|
|
|
|
|
$
|
171.5
|
|
|
$
|
129.1
|
|
|
$
|
42.4
|
|
|
|
|
Less: Intangible
amortization expense
|
(5.9)
|
|
|
(2.8)
|
|
|
(3.1)
|
|
|
|
|
(13.6)
|
|
|
(8.5)
|
|
|
(5.1)
|
|
|
|
|
Less: Purchase
accounting - amortization of inventory fair value
adjustment
|
(0.4)
|
|
|
—
|
|
|
(0.4)
|
|
|
|
|
(1.9)
|
|
|
—
|
|
|
(1.9)
|
|
|
|
|
Consolidated Segment
Income
|
56.0
|
|
|
52.8
|
|
|
3.2
|
|
|
|
|
156.0
|
|
|
120.6
|
|
|
35.4
|
|
|
|
|
Corporate
expense
|
16.0
|
|
|
19.2
|
|
|
(3.2)
|
|
|
|
|
47.3
|
|
|
53.7
|
|
|
(6.4)
|
|
|
|
|
Pension and
postretirement service costs
|
0.2
|
|
|
0.2
|
|
|
—
|
|
|
|
|
0.6
|
|
|
0.6
|
|
|
—
|
|
|
|
|
Asset impairment
charges
|
—
|
|
|
0.5
|
|
|
(0.5)
|
|
|
|
|
—
|
|
|
3.2
|
|
|
(3.2)
|
|
|
|
|
Restructuring and
other related charges
|
0.6
|
|
|
1.3
|
|
|
(0.7)
|
|
|
|
|
14.1
|
|
|
8.7
|
|
|
5.4
|
|
|
|
|
Consolidated
Operating Income
|
$
|
39.2
|
|
|
$
|
31.6
|
|
|
$
|
7.6
|
|
|
24.1%
|
|
$
|
94.0
|
|
|
$
|
54.4
|
|
|
$
|
39.6
|
|
|
72.8%
|
|
as a percent of
revenues
|
10.1
|
%
|
|
8.9
|
%
|
|
|
|
120bps
|
|
8.3
|
%
|
|
5.7
|
%
|
|
|
|
260bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SPX FLOW, INC. AND
SUBSIDIARIES
|
|
ADJUSTED OPERATING
INCOME RECONCILIATION
|
|
(Unaudited; in
millions)
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
October 2,
2021
|
|
September 26,
2020
|
|
October 2,
2021
|
|
September 26,
2020
|
|
Operating
income
|
$
|
39.2
|
|
|
$
|
31.6
|
|
|
$
|
94.0
|
|
|
$
|
54.4
|
|
|
Charges and fees
associated with strategic actions
|
3.3
|
|
|
2.8
|
|
|
3.3
|
|
|
6.0
|
|
|
Charges associated
with certain M&A activities
|
0.8
|
|
|
—
|
|
|
5.6
|
|
|
—
|
|
|
Restructuring and
other related charges
|
0.6
|
|
|
1.3
|
|
|
14.1
|
|
|
8.7
|
|
|
Asset impairment
charges
|
—
|
|
|
0.5
|
|
|
—
|
|
|
3.2
|
|
|
Reduction of SG&A
costs associated with transition services income
|
0.2
|
|
|
1.3
|
|
|
1.7
|
|
|
2.8
|
|
|
Purchase accounting -
amortization of inventory fair value adjustment
|
0.4
|
|
|
—
|
|
|
1.9
|
|
|
—
|
|
|
Intangible
amortization
|
5.9
|
|
|
2.8
|
|
|
13.6
|
|
|
8.5
|
|
|
Adjusted operating
income
|
$
|
50.4
|
|
|
$
|
40.3
|
|
|
$
|
134.2
|
|
|
$
|
83.6
|
|
|
SPX FLOW, INC. AND
SUBSIDIARIES
|
|
ORGANIC REVENUE
RECONCILIATION
|
|
(Unaudited)
|
|
|
Three months ended
October 2, 2021
|
|
Net
Revenue
Growth
|
|
Foreign
Currency
|
|
Business
Combinations
|
|
Organic
Revenue
Growth
|
|
Nutrition and
Health
|
5.9
|
%
|
|
1.4
|
%
|
|
—
|
%
|
|
4.5
|
%
|
|
Precision
Solutions
|
11.8
|
%
|
|
1.6
|
%
|
|
7.9
|
%
|
|
2.3
|
%
|
|
Consolidated
|
9.2
|
%
|
|
1.6
|
%
|
|
4.3
|
%
|
|
3.3
|
%
|
|
Nine months ended
October 2, 2021
|
|
Net
Revenue
Growth
|
|
Foreign
Currency
|
|
Business
Combinations
|
|
Organic
Revenue
Growth
|
|
Nutrition and
Health
|
15.1
|
%
|
|
4.1
|
%
|
|
—
|
%
|
|
11.0
|
%
|
|
Precision
Solutions
|
22.2
|
%
|
|
3.7
|
%
|
|
6.8
|
%
|
|
11.7
|
%
|
|
Consolidated
|
18.9
|
%
|
|
3.9
|
%
|
|
3.6
|
%
|
|
11.4
|
%
|
|
SPX FLOW, INC. AND
SUBSIDIARIES
|
|
ADJUSTED EBITDA
FROM CONTINUING OPERATIONS RECONCILIATION
|
|
(Unaudited; in
millions)
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
October 2,
2021
|
|
September 26,
2020
|
|
October 2,
2021
|
|
September 26,
2020
|
|
Net income
attributable to SPX FLOW, Inc. from continuing
operations
|
$
|
23.4
|
|
|
$
|
16.3
|
|
|
$
|
53.7
|
|
|
$
|
22.5
|
|
|
|
|
|
|
|
|
|
|
Income tax
provision
|
8.6
|
|
|
0.7
|
|
|
31.6
|
|
|
3.7
|
|
|
Interest expense,
net
|
4.2
|
|
|
7.4
|
|
|
14.0
|
|
|
24.9
|
|
|
Depreciation and
amortization
|
13.3
|
|
|
10.2
|
|
|
35.3
|
|
|
30.2
|
|
|
EBITDA from
continuing operations
|
49.5
|
|
|
34.6
|
|
|
134.6
|
|
|
81.3
|
|
|
Charges and fees
associated with strategic actions
|
3.3
|
|
|
2.8
|
|
|
3.3
|
|
|
6.0
|
|
|
Charges associated
with certain M&A activities
|
0.8
|
|
|
—
|
|
|
5.6
|
|
|
—
|
|
|
Restructuring and
other related charges
|
0.6
|
|
|
1.3
|
|
|
14.1
|
|
|
8.7
|
|
|
Asset impairment
charges
|
—
|
|
|
0.5
|
|
|
—
|
|
|
3.2
|
|
|
Fair value adjustment
related to an equity security
|
(1.6)
|
|
|
(2.1)
|
|
|
(9.1)
|
|
|
(7.4)
|
|
|
Gains on certain
asset sales and other, net
|
(7.5)
|
|
|
(1.3)
|
|
|
(7.8)
|
|
|
(1.3)
|
|
|
Loss on early
extinguishment of debt
|
12.4
|
|
|
11.0
|
|
|
12.4
|
|
|
11.0
|
|
|
Purchase accounting -
amortization of inventory fair value adjustment
|
0.4
|
|
|
—
|
|
|
1.9
|
|
|
—
|
|
|
Adjusted EBITDA from
continuing operations
|
$
|
57.9
|
|
|
$
|
46.8
|
|
|
$
|
155.0
|
|
|
$
|
101.5
|
|
|
SPX FLOW, INC. AND
SUBSIDIARIES
|
|
ADJUSTED DILUTED
EARNINGS PER SHARE FROM CONTINUING OPERATIONS
RECONCILIATION
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
October 2,
2021
|
|
September 26,
2020
|
|
October 2,
2021
|
|
September 26,
2020
|
|
Diluted earnings per
share from continuing operations
|
$
|
0.56
|
|
|
$
|
0.39
|
|
|
$
|
1.28
|
|
|
$
|
0.53
|
|
|
Charges and fees
associated with strategic actions, net of tax
|
0.06
|
|
|
0.05
|
|
|
0.06
|
|
|
0.10
|
|
|
Charges associated
with certain M&A activities, net of tax
|
0.01
|
|
|
—
|
|
|
0.10
|
|
|
—
|
|
|
Restructuring and
other related charges, net of tax
|
0.01
|
|
|
0.02
|
|
|
0.27
|
|
|
0.16
|
|
|
Asset impairment
charges, net of tax
|
—
|
|
|
0.01
|
|
|
—
|
|
|
0.05
|
|
|
Fair value adjustment
related to an equity security, net of tax
|
(0.03)
|
|
|
(0.04)
|
|
|
(0.17)
|
|
|
(0.13)
|
|
|
Gains on certain
asset sales and other, net of tax
|
(0.13)
|
|
|
(0.02)
|
|
|
(0.13)
|
|
|
(0.02)
|
|
|
Loss on early
extinguishment of debt, net of tax
|
0.22
|
|
|
0.20
|
|
|
0.22
|
|
|
0.20
|
|
|
Purchase accounting -
amortization of inventory fair value adjustment, net of
tax
|
0.01
|
|
|
—
|
|
|
0.04
|
|
|
—
|
|
|
Intangible
amortization, net of tax
|
0.11
|
|
|
0.05
|
|
|
0.25
|
|
|
0.15
|
|
|
Discrete tax charges
(credits)
|
(0.03)
|
|
|
(0.13)
|
|
|
0.11
|
|
|
(0.13)
|
|
|
Adjusted diluted
earnings per share from continuing operations
|
$
|
0.79
|
|
|
$
|
0.53
|
|
|
$
|
2.03
|
|
|
$
|
0.91
|
|
View original
content:https://www.prnewswire.com/news-releases/spx-flow-reports-strong-third-quarter-operating-results-301420588.html
SOURCE SPX FLOW, Inc.
