UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): April 29, 2009
SPX CORPORATION
(Exact Name of Registrant as specified in Charter)
Delaware |
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1-6948 |
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38-1016240 |
(State or Other Jurisdiction of Incorporation) |
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(Commission File Number) |
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(I.R.S. Employer Identification No.) |
13515 Ballantyne Corporate Place
Charlotte, North Carolina 28277
(Address of Principal Executive Offices) (Zip Code)
Registrants telephone number, including area code (704) 752-4400
NOT APPLICABLE
(Former Name or Former Address if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
oWritten communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
oSoliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
oPre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
oPre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition.
On April 29, 2009, SPX Corporation (the Company) issued the press release attached as Exhibit 99.1 hereto and incorporated herein by reference.
The press release incorporated by reference into this Item 2.02 contains disclosure regarding free cash flow from continuing operations. Free cash flow from continuing operations is defined, for purposes of this press release, as cash flow from continuing operations less capital expenditures from continuing operations. The Companys management believes that free cash flow from continuing operations is a useful financial measure for investors in evaluating the cash flow performance of multi-industrial companies, since it provides insight into the cash flow available to fund such things as equity repurchases, dividends, mandatory and discretionary debt reduction and acquisitions or other strategic investments. In addition, although the use of free cash flow from continuing operations is limited by the fact that the measure can exclude certain cash items that are within managements discretion, free cash flow from continuing operations is a factor used by the Companys management in internal evaluations of the overall performance of its business. Free cash flow from continuing operations is not a measure of financial performance under accounting principles generally accepted in the United States (GAAP), and should not be considered a substitute for cash flows from operating activities as determined in accordance with GAAP, should be used in combination with cash flows from operating activities as determined in accordance with GAAP, and may not be comparable to similarly titled measures reported by other companies.
The press release also contains disclosure regarding organic revenue growth (decline), which is defined, for purposes of this press release, as revenue growth (decline) excluding the effects of foreign currency fluctuations and acquisitions and divestitures. The Companys management believes that this metric is a useful financial measure for investors in evaluating its operating performance for the periods presented because excluding the effect of currency fluctuations and acquisitions and dispositions, as well as changes in accounting classifications, when read in conjunction with the Companys revenues, presents a useful tool to evaluate the Companys ongoing operations and provides investors with a tool they can use to evaluate the Companys management of assets held from period to period. In addition, organic revenue growth (decline) is one of the factors the Companys management uses in internal evaluations of the overall performance of its business. This metric, however, is not a measure of financial performance in accordance with GAAP and should not be considered a substitute for revenue growth (decline) as determined in accordance with GAAP and may not be comparable to similarly titled measures reported by other companies.
Refer to the tables included in the press release for the components of the Companys free cash flow from continuing operations and organic revenue growth (decline), and for the reconciliations of these items to their respective comparable GAAP measures.
The information in this Report is being furnished and shall not be deemed filed for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Report shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
Item 9.01. Financial Statements and Exhibits.
Exhibit |
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Description |
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99.1 |
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Press Release issued April 29, 2009, furnished solely pursuant to Item 2.02 of Form 8-K. |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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SPX CORPORATION |
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Date: April 29, 2009 |
By: |
/s/ Patrick J. OLeary |
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Patrick J. OLeary |
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Executive Vice President, Treasurer and Chief Financial Officer |
S-1
EXHIBIT INDEX
Exhibit |
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Description |
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99.1 |
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Press Release issued April 29, 2009, furnished solely pursuant to Item 2.02 of Form 8-K. |
Exhibit 99.1
NEWS RELEASE |
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Earnings per Share from Continuing Operations of $0.76
CHARLOTTE, NC April 29, 2009 SPX Corporation (NYSE:SPW) today reported results for the first quarter ended March 28, 2009:
· Revenues decreased 13.9% to $1.16 billion from $1.35 billion in the year-ago quarter. Organic revenues* declined 7.5%, completed acquisitions increased reported revenues by 0.2%, and the impact of currency fluctuations decreased reported revenues by 6.6%.
· Segment income and margins were $125.8 million and 10.8%, compared with $160.4 million and 11.9% in the year-ago quarter.
· Diluted net income per share from continuing operations was $0.76, compared with $1.15 in the year-ago quarter. The current year quarter included the following notable items:
· Special charges of $11.9 million, or $0.15 per share, related to restructuring actions,
· Other expense of $12.3 million, or $0.16 per share, related primarily to foreign currency fluctuations, and
· A tax benefit of $5.2 million, or $0.10 per share, related to the finalization of certain tax matters.
· Net cash used in continuing operations was $35.3 million, compared with net cash from continuing operations of $1.0 million in the year-ago quarter. The decrease in cash flow was due primarily to decreased operating income and increased cash restructuring spend.
· Free cash flow from continuing operations* during the quarter was a negative $50.6 million, compared with a negative $18.9 million in the year-ago quarter. The decrease was due primarily to the items noted above, offset partially by lower capital expenditures in 2009.
Chris Kearney, Chairman, President and CEO said, We continue to face very difficult conditions in many of our key end markets, as our customers deal with the economic recession and its impact on their businesses. While the current environment remains challenging, our cost control activities are taking hold, and we continue to execute on strategic restructuring actions to improve SPX for the future.
We believe we are well-positioned to execute on the long-term growth opportunities in our three core end markets, global infrastructure, process equipment and diagnostic tools, and our financial strength provides us the flexibility to weather this economic downturn, Kearney concluded.
FINANCIAL HIGHLIGHTS CONTINUING OPERATIONS
Flow Technology
Revenues for the first quarter of 2009 were $394.0 million compared to $492.1 million in the first quarter of 2008, a decrease of $98.1 million, or 19.9%. Organic revenues declined 9.8% in the quarter, driven primarily by softness in the dehydration, industrial and food and beverage markets. The impact of currency fluctuations decreased revenues by 10.1% from the year-ago quarter.
Segment income was $50.1 million, or 12.7% of revenues, in the first quarter of 2009 compared to $46.7 million, or 9.5% of revenues, in the first quarter of 2008. Segment income and margins were favorably impacted by improvement from the APV acquisition and the oil and gas end markets, offset by the softness noted above. In addition, the 2008 results included a charge of $7.5 million representing the
excess fair value of inventory acquired in the APV acquisition.
Test and Measurement
Revenues for the first quarter of 2009 were $196.0 million compared to $270.0 million in the first quarter of 2008, a decrease of $74.0 million, or 27.4%. Organic revenues declined 21.3% in the quarter, driven primarily by the continued difficulties being experienced by global vehicle manufacturers and their dealer service networks. The impact of currency fluctuations decreased revenues by 6.9% from the year-ago quarter, while acquisitions contributed 0.8% to reported revenues.
Segment income was $5.8 million, or 3.0% of revenues, in the first quarter of 2009 compared to $23.9 million, or 8.9% of revenues, in the first quarter of 2008. Segment income and margins declined due to the organic and currency related declines noted above.
Thermal Equipment and Services
Revenues for the first quarter of 2009 were $342.2 million compared to $346.8 million in the first quarter of 2008, a decrease of $4.6 million, or 1.3%. Organic revenue growth was 4.2% in the quarter, driven primarily by increased sales of thermal equipment into the power generation market. The impact of currency fluctuations decreased reported revenues by 5.5% from the year-ago quarter.
Segment income was $21.4 million, or 6.3% of revenues, in the first quarter of 2009 compared to $36.4 million, or 10.5% of revenues, in the first quarter of 2008. The decrease in segment income and margins was due primarily to unfavorable product mix as compared to the year-ago quarter. The decline in revenues attributable to currency fluctuations also contributed to the lower segment income.
Industrial Products and Services
Revenues for the first quarter of 2009 were $229.8 million compared to $241.0 million in the first quarter of 2008, a decrease of $11.2 million, or 4.6%. Organic revenues declined 3.5% in the quarter, driven primarily by softness in the hydraulic tools product line. The impact of currency fluctuations decreased revenues by 1.1% from the year-ago quarter.
Segment income was $48.5 million, or 21.1% of revenues, in the first quarter of 2009 compared to $53.4 million, or 22.2% of revenues, in the first quarter of 2008. The decrease in segment income and margins was driven largely by the organic decline in the hydraulic tools product line noted above.
Share Repurchase Plan: On September 19, 2008, the company announced that it had adopted a written trading plan under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended, to facilitate the repurchase of up to 3.0 million shares of its common stock on or before October 30, 2009, in accordance with a share repurchase program authorized by its Board of Directors.
On December 18, 2008, the company announced that the repurchases under that plan had been completed, and that it had adopted an additional written trading plan under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended, to facilitate the repurchase of up to 3.0 million additional shares of its common stock on or before December 31, 2009, in accordance with a share repurchase program authorized by its Board of Directors.
During the first quarter, the company repurchased 2.4 million shares of its common stock for $105.4 million, completing this latest share repurchase plan.
Dividend: On February 23, 2009, the Board of Directors announced a quarterly dividend of $0.25 per common share payable on April 2, 2009, to shareholders of record on March 13, 2009.
The fourth quarter 2008 dividend of $0.25 per common share was paid on January 2, 2009.
Discontinued Operations: During the third quarter of 2008, the company committed to a plan to divest a product line, previously reported in its Flow Technology segment. The sale of this product line was completed in the first quarter of 2009.
During the fourth quarter of 2008, the company committed to a plan to divest a product line which was previously reported in its Industrial Products and Services segment. This sale is expected to be completed in 2009.
The financial condition, results of operations, cash flows and any gain realized or loss anticipated or realized from the sale of the product lines discussed above have been reported as discontinued operations in the attached condensed consolidated financial statements.
Form 10-Q: The company expects to file its quarterly report on Form 10-Q for the quarter ended March 28, 2009 with the Securities and Exchange Commission by May 1, 2009. This press release should be read in conjunction with that filing, which will be available on the companys website at www.spx.com, in the Investor Relations section.
SPX Corporation is a Fortune 500 multi-industry manufacturing leader. The company offers highly-specialized engineered solutions to solve critical problems for customers.
SPX is focused on providing solutions that support the expansion of global infrastructure, with particular emphasis on the growing worldwide demand for energy and power. Its innovative product portfolio, containing many energy efficient products, includes cooling systems for power plants throughout the world; custom engineered process equipment that assists a variety of flow processes including food and beverage manufacturing, oil and gas exploration, distribution and refinement and power generation; handheld diagnostic tools that aid in vehicle maintenance and repair;
and power transformers that regulate voltage for electrical transmission and distribution by utility companies.
SPX is headquartered in Charlotte, North Carolina and employs more than 17,000 people worldwide in over 40 countries. Visit www.spx.com. (NYSE: SPW)
* 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 companys documents filed with the Securities and Exchange Commission, including the companys annual report on Form 10-K for the year ended December 31, 2008. 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 companys 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.
Contact:
Jeremy W. Smeltser (Investors) |
Jennifer H. Epstein (Media) |
704-752-4478 |
704-752-7403 |
E-mail: investor@spx.com |
jennifer.epstein@spx.com |
SPX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited; in millions, except per share amounts)
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Three months ended |
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March 28, 2009 |
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March 29, 2008 |
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Revenues |
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$ |
1,162.0 |
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$ |
1,349.9 |
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Costs and expenses: |
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Cost of products sold |
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829.9 |
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946.1 |
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Selling, general and administrative |
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242.5 |
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290.3 |
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Intangible amortization |
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5.2 |
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6.7 |
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Special charges, net |
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11.9 |
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0.7 |
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Operating income |
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72.5 |
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106.1 |
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Other income (expense), net |
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(12.3 |
) |
5.6 |
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Interest expense |
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(23.0 |
) |
(31.1 |
) |
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Interest income |
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2.1 |
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2.3 |
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Equity earnings in joint ventures |
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10.8 |
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11.6 |
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Income from continuing operations before income taxes |
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50.1 |
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94.5 |
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Income tax provision |
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(12.1 |
) |
(30.1 |
) |
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Income from continuing operations |
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38.0 |
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64.4 |
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Income (loss) from discontinued operations, net of tax |
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(1.6 |
) |
3.4 |
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Loss on disposition of discontinued operations, net of tax |
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(12.1 |
) |
(3.2 |
) |
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Income (loss) from discontinued operations |
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(13.7 |
) |
0.2 |
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Net income |
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24.3 |
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64.6 |
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Less: Net income (loss) attributable to noncontrolling interest |
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(0.1 |
) |
3.2 |
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Net income attributable to SPX Corporation |
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$ |
24.4 |
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$ |
61.4 |
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Amounts attributable to SPX Corporation common shareholders: |
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|
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Income from continuing operations for diluted income per share |
|
$ |
38.4 |
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$ |
62.4 |
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Discontinued operations, net of tax |
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(14.0 |
) |
(1.0 |
) |
||
Net income for diluted income per share |
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$ |
24.4 |
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$ |
61.4 |
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Basic income per share of common stock |
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Income from continuing operations attributable to SPX Corporation common shareholders |
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$ |
0.77 |
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$ |
1.17 |
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Loss from discontinued operations attributable to SPX Corporation common shareholders |
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(0.28 |
) |
(0.02 |
) |
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Net income per share attributable to SPX Corporation common shareholders |
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$ |
0.49 |
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$ |
1.15 |
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Weighted average number of common shares outstanding - basic |
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49.952 |
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53.158 |
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Diluted income per share of common stock |
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Income from continuing operations attributable to SPX Corporation common shareholders |
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$ |
0.76 |
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$ |
1.15 |
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Loss from discontinued operations attributable to SPX Corporation common shareholders |
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(0.28 |
) |
(0.02 |
) |
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Net income per share attributable to SPX Corporation common shareholders |
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$ |
0.48 |
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$ |
1.13 |
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Weighted average number of common shares outstanding - diluted |
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50.278 |
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54.144 |
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SPX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited; in millions)
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March 28, |
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December 31, |
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2009 |
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2008 |
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ASSETS |
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Current assets: |
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Cash and equivalents |
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$ |
430.9 |
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$ |
475.9 |
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Accounts receivable, net |
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1,221.8 |
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1,306.9 |
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Inventories, net |
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649.1 |
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667.0 |
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Other current assets |
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130.7 |
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180.6 |
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Deferred income taxes |
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80.1 |
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101.5 |
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Assets of discontinued operations |
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53.2 |
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96.8 |
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Total current assets |
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2,565.8 |
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2,828.7 |
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Property, plant and equipment |
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Land |
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35.9 |
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36.3 |
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Buildings and leasehold improvements |
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224.0 |
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223.7 |
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Machinery and equipment |
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677.2 |
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678.3 |
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937.1 |
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938.3 |
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Accumulated depreciation |
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(442.3 |
) |
(437.7 |
) |
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Net property, plant and equipment |
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494.8 |
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500.6 |
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Goodwill |
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1,757.2 |
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1,779.7 |
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Intangibles, net |
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631.7 |
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646.8 |
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Other assets |
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384.5 |
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382.3 |
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TOTAL ASSETS |
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$ |
5,834.0 |
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$ |
6,138.1 |
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LIABILITIES AND EQUITY |
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Current liabilities: |
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Accounts payable |
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$ |
545.3 |
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$ |
634.0 |
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Accrued expenses |
|
995.4 |
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1,156.2 |
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Income taxes payable |
|
41.9 |
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24.6 |
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Short-term debt |
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135.3 |
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112.9 |
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Current maturities of long-term debt |
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76.4 |
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76.4 |
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Liabilities of discontinued operations |
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10.7 |
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20.2 |
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Total current liabilities |
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1,805.0 |
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2,024.3 |
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Long-term debt |
|
1,270.5 |
|
1,155.4 |
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Deferred and other income taxes |
|
87.5 |
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124.7 |
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Other long-term liabilities |
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787.7 |
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788.9 |
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Total long-term liabilities |
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2,145.7 |
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2,069.0 |
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Equity: |
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SPX Corporation shareholders equity: |
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Common stock |
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975.2 |
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972.3 |
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Paid-in capital |
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1,392.7 |
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1,393.9 |
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Retained earnings |
|
2,252.7 |
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2,240.5 |
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Accumulated other comprehensive loss |
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(243.6 |
) |
(179.9 |
) |
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Common stock in treasury |
|
(2,523.7 |
) |
(2,416.0 |
) |
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Total SPX Corporation shareholders equity |
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1,853.3 |
|
2,010.8 |
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Noncontrolling interest |
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30.0 |
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34.0 |
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Total equity |
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1,883.3 |
|
2,044.8 |
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TOTAL LIABILITIES AND EQUITY |
|
$ |
5,834.0 |
|
$ |
6,138.1 |
|
SPX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited; in millions)
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|
Three months ended |
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March 28, 2009 |
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March 29, 2008 |
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Cash flows from (used in) operating activities: |
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|
|
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Net income |
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$ |
24.3 |
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$ |
64.6 |
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Less: Income (loss) from discontinued operations, net of tax |
|
(13.7 |
) |
0.2 |
|
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Income from continuing operations |
|
38.0 |
|
64.4 |
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||
Adjustments to reconcile income from continuing operations to net cash from (used in) operating activities |
|
|
|
|
|
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Special charges, net |
|
11.9 |
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0.7 |
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Deferred and other income taxes |
|
|
|
(16.8 |
) |
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Depreciation and amortization |
|
25.1 |
|
26.6 |
|
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Pension and other employee benefits |
|
13.9 |
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15.1 |
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Stock-based compensation |
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9.2 |
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16.0 |
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Other, net |
|
18.9 |
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2.8 |
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Changes in operating assets and liabilities, net of effects from acquisitions and divestitures |
|
|
|
|
|
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Accounts receivable and other assets |
|
40.6 |
|
(88.1 |
) |
||
Inventories |
|
11.4 |
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(39.6 |
) |
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Accounts payable, accrued expenses and other |
|
(186.5 |
) |
22.5 |
|
||
Cash spending on restructuring actions |
|
(17.8 |
) |
(2.6 |
) |
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Net cash from (used in) continuing operations |
|
(35.3 |
) |
1.0 |
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Net cash used in discontinued operations |
|
(3.9 |
) |
(6.7 |
) |
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Net cash used in operating activities |
|
(39.2 |
) |
(5.7 |
) |
||
|
|
|
|
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Cash flows from (used in) investing activities: |
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|
|
|
|
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Decrease in restricted cash |
|
7.8 |
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|
|
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Business acquisitions and investments, net of cash acquired |
|
|
|
(0.4 |
) |
||
Capital expenditures |
|
(15.3 |
) |
(19.9 |
) |
||
Net cash used in continuing operations |
|
(7.5 |
) |
(20.3 |
) |
||
Net cash from (used in) discontinued operations |
|
18.6 |
|
(1.6 |
) |
||
Net cash from (used in) investing activities |
|
11.1 |
|
(21.9 |
) |
||
|
|
|
|
|
|
||
Cash flows from (used in) financing activities: |
|
|
|
|
|
||
Borrowings under revolving loan facilities |
|
297.0 |
|
436.0 |
|
||
Repayments under revolving loan facilities |
|
(182.0 |
) |
(316.0 |
) |
||
Borrowings under trade receivables agreement |
|
75.0 |
|
70.0 |
|
||
Repayments under trade receivables agreement |
|
(42.0 |
) |
(116.0 |
) |
||
Net repayments under other financing arrangements |
|
(11.1 |
) |
(20.3 |
) |
||
Purchases of common stock |
|
(113.2 |
) |
|
|
||
Minimum tax withholdings paid on behalf of employees for net share settlements, net of proceeds from the exercise of employee stock options and other |
|
(5.6 |
) |
(0.5 |
) |
||
Purchase of noncontrolling interest in subsidiary |
|
(3.2 |
) |
|
|
||
Dividends paid |
|
(13.1 |
) |
(13.2 |
) |
||
Net cash from continuing operations |
|
1.8 |
|
40.0 |
|
||
Net cash from (used in) discontinued operations |
|
0.2 |
|
(0.2 |
) |
||
Net cash from financing activities |
|
2.0 |
|
39.8 |
|
||
Change in cash and equivalents due to changes in foreign exchange rates |
|
(18.9 |
) |
18.5 |
|
||
Net change in cash and equivalents |
|
(45.0 |
) |
30.7 |
|
||
Consolidated cash and equivalents, beginning of period |
|
475.9 |
|
354.1 |
|
||
Consolidated cash and equivalents, end of period |
|
$ |
430.9 |
|
$ |
384.8 |
|
|
|
|
|
|
|
||
Cash and equivalents of continuing operations |
|
$ |
430.9 |
|
$ |
384.8 |
|
SPX CORPORATION AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(Unaudited; in millions)
|
|
Three months ended |
|
|
|
||||
|
|
March 28, 2009 |
|
March 29, 2008 |
|
% |
|
||
Flow Technology |
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
||
Revenues |
|
$ |
394.0 |
|
$ |
492.1 |
|
-19.9 |
% |
Gross profit |
|
130.5 |
|
146.8 |
|
|
|
||
Selling, general and administrative expense |
|
77.6 |
|
97.1 |
|
|
|
||
Intangible amortization expense |
|
2.8 |
|
3.0 |
|
|
|
||
Segment income |
|
$ |
50.1 |
|
$ |
46.7 |
|
7.3 |
% |
as a percent of revenues |
|
12.7 |
% |
9.5 |
% |
|
|
||
|
|
|
|
|
|
|
|
||
Test and Measurement |
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
||
Revenues |
|
$ |
196.0 |
|
$ |
270.0 |
|
-27.4 |
% |
Gross profit |
|
53.0 |
|
84.5 |
|
|
|
||
Selling, general and administrative expense |
|
45.5 |
|
58.6 |
|
|
|
||
Intangible amortization expense |
|
1.7 |
|
2.0 |
|
|
|
||
Segment income |
|
$ |
5.8 |
|
$ |
23.9 |
|
-75.7 |
% |
as a percent of revenues |
|
3.0 |
% |
8.9 |
% |
|
|
||
|
|
|
|
|
|
|
|
||
Thermal Equipment and Services |
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
||
Revenues |
|
$ |
342.2 |
|
$ |
346.8 |
|
-1.3 |
% |
Gross profit |
|
72.8 |
|
89.9 |
|
|
|
||
Selling, general and administrative expense |
|
50.8 |
|
52.0 |
|
|
|
||
Intangible amortization expense |
|
0.6 |
|
1.5 |
|
|
|
||
Segment income |
|
$ |
21.4 |
|
$ |
36.4 |
|
-41.2 |
% |
as a percent of revenues |
|
6.3 |
% |
10.5 |
% |
|
|
||
|
|
|
|
|
|
|
|
||
Industrial Products and Services |
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
||
Revenues |
|
$ |
229.8 |
|
$ |
241.0 |
|
-4.6 |
% |
Gross profit |
|
78.5 |
|
85.2 |
|
|
|
||
Selling, general and administrative expense |
|
29.9 |
|
31.6 |
|
|
|
||
Intangible amortization expense |
|
0.1 |
|
0.2 |
|
|
|
||
Segment income |
|
$ |
48.5 |
|
$ |
53.4 |
|
-9.2 |
% |
as a percent of revenues |
|
21.1 |
% |
22.2 |
% |
|
|
||
|
|
|
|
|
|
|
|
||
Total segment income |
|
$ |
125.8 |
|
$ |
160.4 |
|
|
|
Corporate expenses |
|
23.3 |
|
30.2 |
|
|
|
||
Pension and postretirement expense |
|
8.9 |
|
7.4 |
|
|
|
||
Stock-based compensation expense |
|
9.2 |
|
16.0 |
|
|
|
||
Special charges, net |
|
11.9 |
|
0.7 |
|
|
|
||
Consolidated Operating Income |
|
$ |
72.5 |
|
$ |
106.1 |
|
-31.7 |
% |
SPX CORPORATION AND SUBSIDIARIES
ORGANIC REVENUE GROWTH RECONCILIATION
(Unaudited)
|
|
Three Months ended March 28, 2009 |
|
||||||
|
|
Net Revenue |
|
|
|
Foreign |
|
Organic Revenue |
|
|
|
Decline |
|
Acquisitions |
|
Currency |
|
Growth (Decline) |
|
|
|
|
|
|
|
|
|
|
|
Flow Technology |
|
(19.9 |
)% |
|
% |
(10.1 |
)% |
(9.8 |
)% |
|
|
|
|
|
|
|
|
|
|
Test and Measurement |
|
(27.4 |
)% |
0.8 |
% |
(6.9 |
)% |
(21.3 |
)% |
|
|
|
|
|
|
|
|
|
|
Thermal Equipment and Services |
|
(1.3 |
)% |
|
% |
(5.5 |
)% |
4.2 |
% |
|
|
|
|
|
|
|
|
|
|
Industrial Products and Services |
|
(4.6 |
)% |
|
% |
(1.1 |
)% |
(3.5 |
)% |
|
|
|
|
|
|
|
|
|
|
Consolidated |
|
(13.9 |
)% |
0.2 |
% |
(6.6 |
)% |
(7.5 |
)% |
SPX CORPORATION AND SUBSIDIARIES
FREE CASH FLOW RECONCILIATION
(Unaudited; in millions)
|
|
Three months ended |
|
||||
|
|
March 28, 2009 |
|
March 29, 2008 |
|
||
|
|
|
|
|
|
||
Net cash from (used in) continuing operations |
|
$ |
(35.3 |
) |
$ |
1.0 |
|
|
|
|
|
|
|
||
Capital expenditures - continuing operations |
|
(15.3 |
) |
(19.9 |
) |
||
|
|
|
|
|
|
||
Free cash flow used in continuing operations |
|
$ |
(50.6 |
) |
$ |
(18.9 |
) |
SPX CORPORATION AND SUBSIDIARIES
CASH AND DEBT RECONCILIATION
(Unaudited; in millions)
|
|
Three months ended |
|
|
|
|
|
|
|
|
|
|||||
|
|
March 28, 2009 |
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Beginning cash and equivalents |
|
$ |
475.9 |
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Operational cash flow |
|
(35.3 |
) |
|
|
|
|
|
|
|
|
|||||
Capital expenditures |
|
(15.3 |
) |
|
|
|
|
|
|
|
|
|||||
Decrease in restricted cash |
|
7.8 |
|
|
|
|
|
|
|
|
|
|||||
Borrowings under revolving loan facilities |
|
297.0 |
|
|
|
|
|
|
|
|
|
|||||
Repayments under revolving loan facilities |
|
(182.0 |
) |
|
|
|
|
|
|
|
|
|||||
Net repayments under other financing arrangements |
|
(11.1 |
) |
|
|
|
|
|
|
|
|
|||||
Net borrowing under trade receivable agreement |
|
33.0 |
|
|
|
|
|
|
|
|
|
|||||
Purchases of common stock |
|
(113.2 |
) |
|
|
|
|
|
|
|
|
|||||
Minimum tax withholdings paid on behalf of employees for net share settlements, net of proceeds from the exercise of employee stock options and other |
|
(5.6 |
) |
|
|
|
|
|
|
|
|
|||||
Purchase of noncontrolling interest in subsidiary |
|
(3.2 |
) |
|
|
|
|
|
|
|
|
|||||
Dividends paid |
|
(13.1 |
) |
|
|
|
|
|
|
|
|
|||||
Cash from discontinued operations |
|
14.9 |
|
|
|
|
|
|
|
|
|
|||||
Change in cash due to change in foreign exchange rates |
|
(18.9 |
) |
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Ending cash and equivalents |
|
$ |
430.9 |
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Debt at |
|
|
|
|
|
|
|
Debt at |
|
|||||
|
|
12/31/2008 |
|
Borrowings |
|
Repayments |
|
Other |
|
3/28/2009 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Term loan |
|
$ |
675.0 |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
675.0 |
|
Domestic revolving loan facility |
|
65.0 |
|
297.0 |
|
(182.0 |
) |
|
|
180.0 |
|
|||||
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 |
|
|
|
75.0 |
|
(42.0 |
) |
|
|
33.0 |
|
|||||
Other indebtedness |
|
55.2 |
|
|
|
(11.1 |
) |
0.6 |
|
44.7 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Totals |
|
$ |
1,344.7 |
|
$ |
372.0 |
|
$ |
(235.1 |
) |
$ |
0.6 |
|
$ |
1,482.2 |
|