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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):  February 23, 2023

 

SPX TECHNOLOGIES, INC.

(Exact name of registrant as specified in its charter)

 

Delaware

1-6948

88-3567996

(State or other jurisdiction

(Commission

(IRS Employer

of incorporation)

File Number)

Identification No.)

 

6325 Ardrey Kell Road, Suite 400,

Charlotte, North Carolina 28277

(Address of principal executive offices) (Zip Code)

 

Registrant’s telephone number, including area code  (980) 474-3700

 

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 obligation of the registrant under any of the following provisions:

 

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class			Trading Symbols(s)			Name of each exchange on which registered
Common Stock, par value $0.01			SPXC			New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR§230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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Forward-Looking Statements

Certain statements in this Current Report on Form 8-K of SPX Technologies, Inc. (the “Company”) 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. Please read these forward-looking statements in conjunction with the Company’s documents filed with the Securities and Exchange Commission, including the Company’s most recent annual report on Form 10-K and most recent quarterly report on Form 10-Q, as well as the risks and uncertainties identified in the press release submitted as Exhibit 99.1 hereto. These documents 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 “guidance,” “plans,” “anticipates,” “planned,” 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. Statements herein speak only as of the date of this Current Report on Form 8-K, and the Company disclaims any responsibility to update or revise such statements, except as required by law.

Item 2.02.    Results of Operations and Financial Condition.

On February 23, 2023, the Company issued the press release furnished as Exhibit 99.1 hereto and incorporated herein by reference.

The press release incorporated by reference into this Item 2.02 contains certain non-GAAP financial measures, including disclosure regarding “total segment income”, defined as operating income (loss) excluding (i) corporate expense, (ii) acquisition related costs, inclusive of charges associated with the step-up of inventory (to fair value) acquired in connection with the ITL, Cincinnati Fan, ECS, Sealite, and Sensors & Software acquisitions completed on March 31, 2022, December 15, 2021, August 2, 2021, April 19, 2021, and November 11, 2020, respectively and a non-cash impairment charge during the twelve months ended December 31, 2021, (iii) long-term incentive compensation expense, (iv) amortization of intangible assets, (v) impairment of goodwill and intangible assets, (vi) special charges, net, and (vii) other operating (income) expense, net. Total segment income does not provide investors with an accurate measure of, and should not be used as a substitute for, the Company’s operating income (loss) as determined in accordance with accounting principles generally accepted in the United States (“GAAP”), and may not be comparable to similarly titled measures reported by other companies.

The press release incorporated by reference into this Item 2.02 also contains disclosure regarding “adjusted operating income,” “adjusted income from continuing operations before income taxes,” “adjusted income from continuing operations,” and “adjusted earnings per share” (or “adjusted EPS”), defined as operating income (loss), income (loss) from continuing operations before income taxes, income (loss) from continuing operations, and diluted net income (loss) per share from continuing operations excluding the following items, as applicable: (a) amortization expense associated with acquired intangible assets, (b) acquisition and transformation related charges, including integration costs and the aforementioned charges related to the step-up of inventory, (c) costs associated with our Transformer Solutions and South Africa businesses that could not be allocated to discontinued operations for U.S. GAAP purposes, (d) a gain related to long-term incentive compensation forfeitures, (e) non-cash asset impairment charges, (f) non-cash charges related to the impairment of goodwill and intangible assets, (g) asbestos-related charges, including the loss related to the Asbestos Portfolio Sale (as defined in the press release), (h) non-service pension and postretirement income/expense, (i) charges/gains related to revisions of liabilities associated with contingent consideration on recent acquisitions, (j) gains and losses on an equity security associated with fair value adjustments, (k) gain on the sale of an equity security, (l) a non-cash charge and certain expenses incurred in connection with an amendment to our senior credit agreement, (m) a charge associated with the write-off of deferred financing costs in connection with a reduction of our foreign credit facilities primarily used to support our South Africa business, and (n) certain non-recurring income tax benefits and charges, as well as (o) the income tax impact of items (a) through (m). The Company’s management views the impact related to each of the items as not indicative of the Company’s ongoing performance. The Company believes that inclusion of only the service cost and prior service cost components of pension and postretirement income/expense better reflects the ongoing costs of providing pension and postretirement benefits to its employees. Other components of GAAP pension and postretirement income/expense are mainly driven by market performance, and the Company manages these separately from the operational performance of its business. “Adjusted operating income” also includes the reclassification of transition services income from non-operating income. The adjusted operating income, adjusted income from continuing operations before income taxes, adjusted income from continuing operations, and adjusted earnings per share are non-GAAP financial measures and do not provide investors with an accurate measure of the actual operating income (loss), income (loss) from continuing operations before income taxes, income (loss) from continuing operations, and diluted income (loss) per share from continuing operations reported by the Company and should not be considered as substitutes for operating income (loss), income (loss) from continuing operations before income taxes, income (loss) from continuing operations, and diluted income

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(loss) per share from continuing operations as determined in accordance with GAAP, and may not be comparable to similarly titled measures reported by other companies.

The press release incorporated by reference into this Item 2.02 also contains disclosure regarding organic revenue growth, defined as revenue growth excluding the effects of foreign currency fluctuations and acquisitions. The Company’s management believes that organic revenue growth is a useful financial measure for investors in evaluating operating performance for the periods presented, because excluding the effect of currency fluctuations and acquisitions, when read in conjunction with the Company’s revenues, presents a useful tool to evaluate the Company’s ongoing operations and provides investors with a tool they can use to evaluate the Company’s management of assets held from period to period. In addition, organic revenue growth is one of the factors the Company’s management uses in internal evaluations of the overall performance of its business. This metric, however, should not be considered a substitute for revenue growth as determined in accordance with GAAP, and may not be comparable to similarly titled measures reported by other companies.

The Company believes these non-GAAP financial measures, when read in conjunction with the comparable GAAP financial measures, give investors a useful tool to assess and understand the Company’s overall financial performance, because they exclude items of income or expense that the Company believes are not reflective of its ongoing operating performance, allowing for a better period-to-period comparison of operations of the Company. Additionally, the Company’s management uses these non-GAAP financial measures as measures of the Company’s performance.

Refer to the tables included in the press release for the components of each of the Company’s non-GAAP financial measures referred to above, and for the reconciliations of historical non-GAAP financial measures to their respective comparable GAAP measures.

The information in this Report, and in Exhibit 99.1 hereto, 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 Item 2.02 of this Report, and Exhibit 99.1 hereto, 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.

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Item 9.01.                                        Financial Statements and Exhibits.

 

(d)                                 Exhibits.

Exhibit Number						Description
99.1						Press Release issued February 23, 2023, furnished solely pursuant to Item 2.02 of Form 8-K
104						Cover Page Interactive Data File (embedded within the Inline XBRL document)

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SIGNATURES

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.

			SPX TECHNOLOGIES, INC.
			(Registrant)
Date: February 23, 2023			By:			/s/ MARK A. CARANO
						Mark A. Carano
						Vice President, Chief Financial Officer and Treasurer

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