SPX Reports Second Quarter 2010 Results
Earnings Per Share from Continuing Operations of $1.40; Adjusted Earnings Per Share* of $1.00
Raises 2010 EPS Guidance Range to $3.30 to $3.50*, on an Adjusted Basis, From $3.00 to $3.30 Per Share
CHARLOTTE, N.C., Aug 04, 2010 /PRNewswire via COMTEX/ -- SPX Corporation (NYSE: SPW) today reported results for the second quarter ended July 3, 2010:
Second Quarter Highlights:
- Revenues were $1.19 billion, a decrease of 0.3% compared to the year-ago quarter. Organic revenues* declined 2.0%, completed acquisitions increased reported revenues by 3.2%, and the impact of currency fluctuations decreased reported revenues by 1.5%.
- Segment income and margins were $135.5 million and 11.4%, compared with $135.9 million and 11.4% in the year-ago quarter.
- Diluted net income per share from continuing operations was $1.40, compared with $0.80 in the year-ago quarter. The current-year quarter included net tax benefits of $20.0 million, or $0.40 per share, related to the audits of the company's 2006 and 2007 U.S. income tax returns.
- Adjusted net income per share from continuing operations, which excludes the impact of the net tax benefits noted above, was $1.00, compared to the company's guidance of $0.65 to $0.75.
- Net cash from continuing operations was $47.6 million, compared with $61.9 million in the year-ago quarter. The decline in cash flow was due primarily to an increase in working capital, which more than offset the lower spending on restructuring.
- Free cash flow from continuing operations* during the quarter was $35.8 million, compared with $32.3 million in the year-ago quarter. The improvement was due primarily to the items noted above, in addition to lower capital expenditures in 2010.
"We are pleased to report that second quarter adjusted earnings per share increased 25% over the prior year period. We attribute this primarily to the improved results in our Thermal Equipment and Services and Test and Measurement segments and lower restructuring expenses this year. These improvements more than offset declines in the results of other businesses, most notably our transformer business," said Christopher J. Kearney, Chairman, President and Chief Executive Officer of SPX.
"Our focus on expansion in emerging markets continues to play a critical role in creating revenue opportunities. In the second quarter, more than 25% of our revenue was generated from sales into emerging regions, driven particularly by sales into China which grew more than 50% year-over-year. Based on the strength of our second quarter results, we are raising our adjusted earnings per share guidance range for the year to $3.30 to $3.50 per share from the previous range of $3.00 to $3.30.
"2010 is progressing much as we had anticipated with recovery in our mid-to-late cycle businesses, particularly power and energy, continuing to lag the improvement we are seeing in many of our early cycle businesses. Although the timing and pace of recovery remains uncertain in our three strategic markets, we believe we are well positioned for growth as they recover. We expect our recent strategic actions will enhance our competitive position," Kearney said.
FINANCIAL HIGHLIGHTS - CONTINUING OPERATIONS
Flow Technology
Revenues for the second quarter of 2010 were $383.4 million compared to $396.2 million in the second quarter of 2009, a decrease of $12.8 million, or 3.2%. Organic revenues declined 6.0%, driven primarily by softness in the oil and gas market and lower demand for large-scale systems in the food and beverage market. The February 2010 acquisition of Gerstenberg Schroeder increased reported revenues by 3.8%, while the impact of currency fluctuations decreased reported revenues by 1.0%, from the year-ago quarter.
Segment income was $45.2 million, or 11.8% of revenues, in the second quarter of 2010 compared to $48.5 million, or 12.2% of revenues, in the second quarter of 2009. The decline in segment income was due primarily to the impact of the organic revenue decline noted above. This decline was offset partially by the benefits from restructuring actions taken in 2009 and other operating initiatives. The decline in segment margins was due primarily to the impact from the acquisition of Gerstenberg Schroeder.
Test and Measurement
Revenues for the second quarter of 2010 were $239.9 million compared to $207.6 million in the second quarter of 2009, an increase of $32.3 million, or 15.6%. Organic revenues increased 17.8%, driven primarily by increased sales of diagnostic and service tools to vehicle manufacturers and their dealer service networks and an increase in sales of fare-collection systems. The impact of currency fluctuations decreased revenues by 2.2% from the year-ago quarter.
Segment income was $23.7 million, or 9.9% of revenues, in the second quarter of 2010 compared to $13.3 million, or 6.4% of revenues, in the second quarter of 2009. The increase in segment income and margins was due primarily to the impact of the organic revenue increase noted above and benefits from restructuring actions taken in 2009.
Thermal Equipment and Services
Revenues for the second quarter of 2010 were $393.1 million compared to $368.9 million in the second quarter of 2009, an increase of $24.2 million, or 6.6%. Organic revenues increased 3.3% in the quarter, driven primarily by project timing for cooling systems. The December 2009 SPX Heat Transfer Inc. acquisition increased reported revenues by 5.9%, while the impact of currency fluctuations decreased reported revenues by 2.6%, from the year-ago quarter.
Segment income was $48.9 million, or 12.4% of revenues, in the second quarter of 2010 compared to $27.5 million, or 7.5% of revenues, in the second quarter of 2009. The increase in segment income and margins was due primarily to strong project execution, a favorable project mix and the incremental profits from SPX Heat Transfer.
Industrial Products and Services
Revenues for the second quarter of 2010 were $173.3 million compared to $220.8 million in the second quarter of 2009, a decrease of $47.5 million, or 21.5%. Organic revenues declined 21.9% in the quarter, driven primarily by volume and pricing declines for power transformers. Completed acquisitions increased reported revenues by 0.6%, while the impact of currency fluctuations decreased reported revenues by 0.2%, from the year-ago quarter.
Segment income was $17.7 million, or 10.2% of revenues, in the second quarter of 2010 compared to $46.6 million, or 21.1% of revenues, in the second quarter of 2009. The decrease in segment income and margins was due primarily to the impact of the organic revenue decline in transformers.
OTHER ITEMS
Dividend:On May 28, 2010, the company announced that its Board of Directors had declared a quarterly dividend of $0.25 per common share to shareholders of record on June 15, 2010, which was paid on July 6, 2010.
Form 10-Q: The company expects to file its quarterly report on Form 10-Q for the quarter ended July 3, 2010 with the Securities and Exchange Commission by August 12, 2010. This press release should be read in conjunction with that filing, which will be available on the company's website at http://www.spx.com/, in the Investor Relations section.
SPX Corporation (NYSE: SPW) is a Fortune 500 multi-industry manufacturing leader that provides its customers with highly-specialized, engineered solutions to solve critical business issues.
SPX products and technologies play an important role in the expansion of global infrastructure to help meet increased demand for power and energy and support many different sources of power generation, including coal and natural gas, nuclear, solar and geothermal. The company's innovative product portfolio, containing many energy efficient products, includes cooling systems for power plants throughout the world; highly advanced food processing components and turnkey, scalable systems serving the global food and beverage industry; process equipment that assists a variety of flow processes including oil and gas exploration, distribution and refinement and power generation; handheld diagnostic tools that aid in vehicle maintenance and repair; and power transformers that allow utility companies to regulate electric voltage, transmission and distribution.
With headquarters in Charlotte, North Carolina, SPX has approximately 15,000 employees in more than 35 countries worldwide. Visit http://www.spx.com/.
* Non-GAAP number. See attached financial schedules for reconciliation to most comparable GAAP number.
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 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 "believe," "expect," "anticipate," "estimate," "guidance," "target" 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. 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
------------------
June 27,
July 3, 2010 2009
------------ ---------
Revenues $1,189.7 $1,193.5
Costs and expenses:
Cost of products sold 836.5 845.4
Selling, general and administrative 254.9 242.1
Intangible amortization 6.4 5.2
Special charges, net 4.4 23.3
--- ----
Operating income 87.5 77.5
Other expense, net (1.8) (1.6)
Interest expense (20.6) (22.8)
Interest income 1.3 2.1
Equity earnings in joint ventures 7.2 5.5
--- ---
Income from continuing operations
before income taxes 73.6 60.7
Income tax provision (4.2) (21.6)
---- -----
Income from continuing operations 69.4 39.1
Income (loss) from discontinued
operations, net of tax - 0.5
Gain (loss) on disposition of
discontinued operations, net of tax 8.6 (6.5)
--- ----
Income (loss) from discontinued
operations, net of tax 8.6 (6.0)
--- ----
Net income 78.0 33.1
Less: Net loss attributable to
noncontrolling interests (0.8) (0.3)
Net income attributable to SPX
Corporation $78.8 $33.4
===== =====
Amounts attributable to SPX Corporation
common shareholders:
Income from continuing operations, net
of tax $70.2 $39.5
Income (loss) from discontinued
operations, net of tax 8.6 (6.1)
--- ----
Net income $78.8 $33.4
===== =====
Basic income per share of common stock
Income from continuing operations
attributable to SPX Corporation common
shareholders $1.41 $0.81
Income (loss) from discontinued
operations attributable to SPX
Corporation common shareholders 0.18 (0.13)
Net income per share attributable to
SPX Corporation common shareholders $1.59 $0.68
===== =====
Weighted average number of common
shares outstanding -basic 49.657 49.021
Diluted income per share of common
stock
Income from continuing operations
attributable to SPX Corporation common
shareholders $1.40 $0.80
Income (loss) from discontinued
operations attributable to SPX
Corporation common shareholders 0.17 (0.12)
Net income per share attributable to
SPX Corporation common shareholders $1.57 $0.68
===== =====
Weighted average number of common
shares outstanding -diluted 50.294 49.424
Six months ended
----------------
June 27,
July 3, 2010 2009
------------ ---------
Revenues $2,275.3 $2,353.1
Costs and expenses:
Cost of products sold 1,608.6 1,673.0
Selling, general and administrative 503.7 484.1
Intangible amortization 12.6 10.4
Special charges, net 11.2 35.2
---- ----
Operating income 139.2 150.4
Other expense, net (13.9) (13.8)
Interest expense (41.1) (45.8)
Interest income 2.9 4.2
Equity earnings in joint ventures 15.9 16.3
---- ----
Income from continuing operations
before income taxes 103.0 111.3
Income tax provision (15.9) (33.9)
----- -----
Income from continuing operations 87.1 77.4
Income (loss) from discontinued
operations, net of tax - (1.4)
Gain (loss) on disposition of
discontinued operations, net of tax 12.2 (18.6)
---- -----
Income (loss) from discontinued
operations, net of tax 12.2 (20.0)
---- -----
Net income 99.3 57.4
Less: Net loss attributable to
noncontrolling interests (1.6) (0.4)
Net income attributable to SPX
Corporation $100.9 $57.8
====== =====
Amounts attributable to SPX Corporation
common shareholders:
Income from continuing operations, net
of tax $88.7 $78.3
Income (loss) from discontinued
operations, net of tax 12.2 (20.5)
---- -----
Net income $100.9 $57.8
====== =====
Basic income per share of common stock
Income from continuing operations
attributable to SPX Corporation common
shareholders $1.79 $1.58
Income (loss) from discontinued
operations attributable to SPX
Corporation common shareholders 0.24 (0.41)
Net income per share attributable to
SPX Corporation common shareholders $2.03 $1.17
===== =====
Weighted average number of common
shares outstanding -basic 49.594 49.484
Diluted income per share of common
stock
Income from continuing operations
attributable to SPX Corporation common
shareholders $1.77 $1.57
Income (loss) from discontinued
operations attributable to SPX
Corporation common shareholders 0.24 (0.41)
Net income per share attributable to
SPX Corporation common shareholders $2.01 $1.16
===== =====
Weighted average number of common
shares outstanding -diluted 50.109 49.848
SPX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited; in millions)
July 3, December 31,
2010 2009
---- ----
ASSETS
Current assets:
Cash and equivalents $408.1 $522.9
Accounts receivable, net 1,070.6 1,046.3
Inventories 543.9 560.3
Other current assets 174.3 121.2
Deferred income taxes 52.0 56.1
Assets of discontinued
operations - 5.7
--- ---
Total current assets 2,248.9 2,312.5
Property, plant and
equipment:
Land 37.7 39.1
Buildings and leasehold
improvements 238.5 250.4
Machinery and equipment 699.0 712.2
----- -----
975.2 1,001.7
Accumulated depreciation (455.2) (455.3)
------ ------
Property, plant and
equipment, net 520.0 546.4
Goodwill 1,555.5 1,600.0
Intangibles, net 679.8 708.3
Deferred income taxes 94.1 114.7
Other assets 459.6 442.5
----- -----
TOTAL ASSETS $5,557.9 $5,724.4
======== ========
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable $476.9 $475.8
Accrued expenses 897.0 987.5
Income taxes payable 27.6 40.3
Short-term debt 76.9 74.4
Current maturities of long-
term debt 97.5 76.0
Liabilities of discontinued
operations - 5.3
--- ---
Total current liabilities 1,575.9 1,659.3
Long-term debt 1,107.4 1,128.6
Other income taxes 93.7 92.1
Other long-term liabilities 935.6 962.9
----- -----
Total long-term liabilities 2,136.7 2,183.6
Equity:
SPX Corporation shareholders'
equity:
Common stock 983.6 979.0
Paid-in capital 1,435.2 1,425.7
Retained earnings 2,279.0 2,203.0
Accumulated other
comprehensive loss (344.9) (213.6)
Common stock in treasury (2,516.3) (2,523.3)
-------- --------
Total SPX Corporation
shareholders' equity 1,836.6 1,870.8
Noncontrolling interests 8.7 10.7
--- ----
Total equity 1,845.3 1,881.5
TOTAL LIABILITIES AND EQUITY $5,557.9 $5,724.4
======== ========
SPX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited; in millions)
Three months ended
------------------
July 3, 2010 June 27, 2009
------------ -------------
Cash flows from (used in) operating
activities:
Net income $78.0 $33.1
Less: Income (loss) from
discontinued operations, net of tax 8.6 (6.0)
--- ----
Income from continuing operations 69.4 39.1
Adjustments to reconcile income from
continuing operations to net cash
from operating activities:
Special charges, net 4.4 23.3
Gain on sale of product line - (1.4)
Deferred and other income taxes 2.4 4.4
Depreciation and amortization 28.1 26.8
Pension and other employee benefits 17.1 13.8
Stock-based compensation 8.2 6.1
Other, net (8.7) (4.8)
Changes in operating assets and
liabilities, net of effects from
acquisitions and divestitures:
Accounts receivable and other assets (90.7) 48.0
Inventories 15.4 45.0
Accounts payable, accrued expenses
and other 8.5 (124.4)
Cash spending on restructuring
actions (6.5) (14.0)
---- -----
Net cash from continuing operations 47.6 61.9
Net cash from (used in) discontinued
operations (0.4) 12.4
---- ----
Net cash from operating activities 47.2 74.3
Cash flows from (used in) investing
activities:
Proceeds from asset sales and other 1.8 1.6
(Increase) decrease in restricted
cash 0.9 2.1
Business acquisitions and
investments, net of cash acquired (31.5) -
Capital expenditures (11.8) (29.6)
----- -----
Net cash used in continuing
operations (40.6) (25.9)
Net cash from (used in) discontinued
operations 0.7 (0.1)
--- ----
Net cash used in investing
activities (39.9) (26.0)
Cash flows from (used in) financing
activities:
Borrowings under senior credit
facilities 9.0 -
Repayments under senior credit
facilities (31.7) (43.8)
Borrowings under trade receivables
agreement - 37.0
Repayments under trade receivables
agreement (8.0) (18.0)
Net borrowing (repayments) under
other financing arrangements 0.2 (7.2)
Purchases of common stock - -
Proceeds from the exercise of
employee stock options and other,
net of minimum tax withholdings
paid on behalf of employees for net
share settlements 1.4 -
Purchase of noncontrolling interest
in subsidiary - -
Financing fees paid - -
Dividends paid (12.7) (12.1)
----- -----
Net cash used in continuing
operations (41.8) (44.1)
Net cash from discontinued
operations - -
--- ---
Net cash used in financing
activities (41.8) (44.1)
Change in cash and equivalents due
to changes in foreign exchange
rates (21.5) (0.6)
Net change in cash and equivalents (56.0) 3.6
Consolidated cash and equivalents,
beginning of period 464.1 430.9
Consolidated cash and equivalents,
end of period $408.1 $434.5
====== ======
Six months ended
----------------
July 3, 2010 June 27, 2009
------------ -------------
Cash flows from (used in) operating
activities:
Net income $99.3 $57.4
Less: Income (loss) from
discontinued operations, net of tax 12.2 (20.0)
---- -----
Income from continuing operations 87.1 77.4
Adjustments to reconcile income from
continuing operations to net cash
from operating activities:
Special charges, net 11.2 35.2
Gain on sale of product line - (1.4)
Deferred and other income taxes 11.7 4.4
Depreciation and amortization 55.9 51.9
Pension and other employee benefits 34.5 27.7
Stock-based compensation 20.1 15.3
Other, net 2.2 14.1
Changes in operating assets and
liabilities, net of effects from
acquisitions and divestitures:
Accounts receivable and other assets (139.3) 88.4
Inventories 13.7 56.3
Accounts payable, accrued expenses
and other (57.4) (310.6)
Cash spending on restructuring
actions (17.2) (31.8)
----- -----
Net cash from continuing operations 22.5 26.9
Net cash from (used in) discontinued
operations (2.0) 8.2
---- ---
Net cash from operating activities 20.5 35.1
Cash flows from (used in) investing
activities:
Proceeds from asset sales and other 2.1 1.6
(Increase) decrease in restricted
cash (4.9) 9.9
Business acquisitions and
investments, net of cash acquired (58.3) -
Capital expenditures (23.6) (44.9)
----- -----
Net cash used in continuing
operations (84.7) (33.4)
Net cash from (used in) discontinued
operations 7.4 18.5
--- ----
Net cash used in investing
activities (77.3) (14.9)
Cash flows from (used in) financing
activities:
Borrowings under senior credit
facilities 111.0 272.0
Repayments under senior credit
facilities (110.0) (200.8)
Borrowings under trade receivables
agreement 10.0 112.0
Repayments under trade receivables
agreement (11.0) (60.0)
Net borrowing (repayments) under
other financing arrangements 0.1 (18.3)
Purchases of common stock - (113.2)
Proceeds from the exercise of
employee stock options and other,
net of minimum tax withholdings
paid on behalf of employees for net
share settlements (6.6) (5.6)
Purchase of noncontrolling interest
in subsidiary - (3.2)
Financing fees paid (1.0) -
Dividends paid (25.1) (25.2)
----- -----
Net cash used in continuing
operations (32.6) (42.3)
Net cash from discontinued
operations - 0.2
--- ---
Net cash used in financing
activities (32.6) (42.1)
Change in cash and equivalents due
to changes in foreign exchange
rates (25.4) (19.5)
Net change in cash and equivalents (114.8) (41.4)
Consolidated cash and equivalents,
beginning of period 522.9 475.9
Consolidated cash and equivalents,
end of period $408.1 $434.5
====== ======
SPX CORPORATION AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(Unaudited; in millions)
Three months ended
------------------
July 3, 2010 June 27, 2009 %
------------ ------------- ---
Flow Technology
Revenues $383.4 $396.2 -3.2%
Gross profit 135.3 136.9
Selling, general and
administrative expense 87.3 85.6
Intangible amortization
expense 2.8 2.8
Segment income $45.2 $48.5 -6.8%
===== =====
as a percent of revenues 11.8% 12.2%
Test and Measurement
Revenues $239.9 $207.6 15.6%
Gross profit 73.6 59.1
Selling, general and
administrative expense 48.2 44.1
Intangible amortization
expense 1.7 1.7
Segment income $23.7 $13.3 78.2%
===== =====
as a percent of revenues 9.9% 6.4%
Thermal Equipment and Services
Revenues $393.1 $368.9 6.6%
Gross profit 102.1 79.6
Selling, general and
administrative expense 51.7 51.5
Intangible amortization
expense 1.5 0.6
Segment income $48.9 $27.5 77.8%
===== =====
as a percent of revenues 12.4% 7.5%
Industrial Products and
Services
Revenues $173.3 $220.8 -21.5%
Gross profit 46.5 75.6
Selling, general and
administrative expense 28.4 28.9
Intangible amortization
expense 0.4 0.1
Segment income $17.7 $46.6 -62.0%
===== =====
as a percent of revenues 10.2% 21.1%
Total segment income $135.5 $135.9
Corporate expenses 22.5 19.2
Pension and postretirement
expense 12.9 9.8
Stock-based compensation
expense 8.2 6.1
Special charges, net 4.4 23.3
Consolidated Operating Income $87.5 $77.5 12.9%
===== =====
Six months ended
----------------
July 3, 2010 June 27, 2009 %
------------ ------------- ---
Flow Technology
Revenues $737.4 $790.2 -6.7%
Gross profit 262.6 267.4
Selling, general and
administrative expense 170.3 163.2
Intangible amortization
expense 5.8 5.6
Segment income $86.5 $98.6 -12.3%
===== =====
as a percent of revenues 11.7% 12.5%
Test and Measurement
Revenues $444.3 $403.6 10.1%
Gross profit 133.0 112.1
Selling, general and
administrative expense 92.7 89.6
Intangible amortization
expense 3.2 3.4
Segment income $37.1 $19.1 94.2%
===== =====
as a percent of revenues 8.4% 4.7%
Thermal Equipment and Services
Revenues $746.5 $711.1 5.0%
Gross profit 184.8 152.4
Selling, general and
administrative expense 101.3 102.3
Intangible amortization
expense 3.1 1.2
Segment income $80.4 $48.9 64.4%
===== =====
as a percent of revenues 10.8% 6.9%
Industrial Products and
Services
Revenues $347.1 $448.2 -22.6%
Gross profit 95.1 154.0
Selling, general and
administrative expense 56.8 58.3
Intangible amortization
expense 0.5 0.2
Segment income $37.8 $95.5 -60.4%
===== =====
as a percent of revenues 10.9% 21.3%
Total segment income $241.8 $262.1
Corporate expenses 45.2 42.5
Pension and postretirement
expense 26.1 18.7
Stock-based compensation
expense 20.1 15.3
Special charges, net 11.2 35.2
Consolidated Operating Income $139.2 $150.4 -7.4%
====== ======
SPX CORPORATION AND SUBSIDIARIES
ORGANIC REVENUE RECONCILIATION
(Unaudited)
Three months ended July 3, 2010
-------------------------------
Organic
Net Revenue Foreign Revenue
Growth Growth
(Decline) Acquisitions Currency (Decline)
---------- ------------ -------- ----------
Flow
Technology (3.2)% 3.8% (1.0)% (6.0)%
Test and
Measurement 15.6% - % (2.2)% 17.8%
Thermal
Equipment
and
Services 6.6% 5.9% (2.6)% 3.3%
Industrial
Products
and
Services (21.5)% 0.6% (0.2)% (21.9)%
Consolidated (0.3)% 3.2% (1.5)% (2.0)%
Six months ended July 3, 2010
-----------------------------
Organic
Net Revenue Foreign Revenue
Growth Growth
(Decline) Acquisitions Currency (Decline)
--------- ------------ -------- ---------
Flow Technology (6.7)% 2.2% 1.7% (10.6)%
Test and
Measurement 10.1% - % - % 10.1%
Thermal Equipment
and Services 5.0% 7.0% (0.2)% (1.8)%
Industrial
Products and
Services (22.6)% 0.3% - % (22.9)%
Consolidated (3.3)% 2.9% 0.5% (6.7)%
SPX CORPORATION AND SUBSIDIARIES
FREE CASH FLOW RECONCILIATION
(Unaudited; in millions)
Three months ended Six months ended
------------------ ----------------
July 3, June 27, July 3, June 27,
2010 2009 2010 2009
-------- --------- -------- ---------
Net cash from
continuing
operations $47.6 $61.9 $22.5 $26.9
Capital
expenditures -
continuing
operations (11.8) (29.6) (23.6) (44.9)
----- ----- ----- -----
Free cash flow from
(used in)
continuing
operations $35.8 $32.3 $(1.1) $(18.0)
===== ===== ===== ======
SPX CORPORATION AND SUBSIDIARIES
CASH AND DEBT RECONCILIATION
(Unaudited; in millions)
Six months ended
July 3, 2010
------------
Beginning cash and equivalents $522.9
Operational cash flow 22.5
Business acquisitions and investments, net
of cash acquired (58.3)
Capital expenditures (23.6)
Increase in restricted cash (4.9)
Proceeds from asset sales and other 2.1
Borrowings under senior credit facilities 111.0
Repayments under senior credit facilities (110.0)
Net borrowings under other financing
arrangements 0.1
Net repayments under trade receivable
agreement (1.0)
Financing fees paid (1.0)
Minimum tax withholdings paid on behalf of
employees for net share settlements, net
of proceeds from the exercise of employee
stock options and other (6.6)
Dividends paid (25.1)
Cash from discontinued operations 5.4
Change in cash due to changes in foreign
exchange rates (25.4)
-----
Ending cash and equivalents $408.1
======
Debt at Debt at
12/31/2009 Borrowings Repayments Other 7/3/2010
---------- ---------- ---------- ----- --------
Term loan $600.0 $- $(37.5) $- $562.5
Domestic revolving
loan facility 61.5 111.0 (72.5) - 100.0
7.625% senior
notes 500.0 - - - 500.0
7.50% senior notes 28.2 - - - 28.2
6.25% senior notes 21.3 - - - 21.3
Trade receivables
financing
arrangement 22.0 10.0 (11.0) - 21.0
Other indebtedness 46.0 9.1 (9.0) 2.7 48.8
---- --- ---- --- ----
Totals $1,279.0 $130.1 $(130.0) $2.7 $1,281.8
======== ====== ======= ==== ========
SPX CORPORATION AND SUBSIDIARIES
ADJUSTED EARNINGS PER SHARE RECONCILIATION
(Unaudited)
Three months ended Six months ended
------------------ ----------------
June 27,
July 3, 2010 2009 July 3, 2010 June 27, 2009
------------ --------- ------------ -------------
Diluted net
income per
share of
common
stock from
continuing
operations $1.40 $0.80 $1.77 $1.57
Tax matters (0.40) - (0.40) -
Adjusted
diluted
net income
per share
of common
stock from
continuing
operations $1.00 $0.80 $1.37 $1.57
===== ===== ===== =====
SPX CORPORATION AND SUBSIDIARIES
FREE CASH FLOW RECONCILIATION
(Unaudited; in millions)
2010E Guidance Range
--------------------
Net cash from continuing
operations $280.0 $310.0
Capital expenditures (100.0) (90.0)
------ -----
Free cash flow from
continuing operations $180.0 $220.0
====== ======
SPX CORPORATION AND SUBSIDIARIES
ADJUSTED EARNINGS PER SHARE RECONCILIATION
(Unaudited)
2010E Guidance Range
--------------------
Diluted net income per share of
common stock from continuing
operations $3.70 $3.90
Tax matters (0.40) (0.40)
----- -----
Adjusted diluted net income per share
of common stock from continuing
operations $3.30 $3.50
===== =====
SOURCE SPX Corporation
Contacts:
Ryan Taylor (Investors)
704-752-4486
E-mail: investor@spx.com
Jennifer H. Epstein (Media)
704-752-7403
E-mail: jennifer.epstein@spx.com