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SPX FLOW Delivers Growth And Profit Improvement In Second Quarter 2018

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SPX FLOW Delivers Growth And Profit Improvement In Second Quarter 2018

- Orders Grew 14% to $575 million, Including 12% Organic Growth Year-Over-Year

- Revenue Grew 7%, Including 2.5% Organic* Growth

- EPS Grew 125% to $0.54 Per Share

- Reaffirmed 2018 Guidance on Stronger Organic Growth and Lower Currency Benefit

PR Newswire

CHARLOTTE, N.C., Aug. 1, 2018 /PRNewswire/ -- SPX FLOW, Inc. (NYSE:FLOW) today reported results for the quarter ended June 30, 2018 and reaffirmed its 2018 full year guidance.

"During the second quarter we made solid progress across many fronts on our journey to transform SPX FLOW into a high performing operating enterprise.   We continued to grow our high value product lines and aftermarket business, while emphasizing crisp execution across our operations.  Our global team is engaged and committed to building a customer-centric culture, rooted in continuous improvement, and to achieving excellence across all phases of our business.  As we move forward, we see great potential to drive higher customer satisfaction, improved operating performance and greater shareholder value," said Marc Michael, President and Chief Executive Officer.

Michael continued, "In Q2 we delivered solid growth and improvement versus the prior year period, underscored by 14% order growth, 7% revenue growth and 330 points of operating margin expansion.  Net income was $23 million and EPS was $0.54, up 125% versus the prior year.  We generated $62 million of EBITDA, up 41% year-over-year, driven by the revenue growth, savings from cost reduction initiatives and a higher level of productivity in our factories.  As compared to our guidance, we delivered stronger than anticipated results through solid backlog execution which enabled us to offset currency headwinds and a net ($0.03) per share impact from taxes.  Additionally, we strengthened our financial position for the sixth consecutive quarter, by reducing gross debt 3% and net leverage to 2.6x."

"Q2 orders were $575 million marking our highest level of quarterly orders since Q1 2015.  Organic order growth of 12% was broad-based with growth across all three reporting segments, led by sharp, double-digit growth in medium-size capital orders for Food and Beverage systems and North American oil pipeline valves.  Notably, for the second consecutive quarter we delivered high-single digit organic order growth across our highest value food and beverage and industrial product lines, reflecting continued progress executing our growth strategy."   

"On a sequential basis, orders increased 13% in total and 16% organically.  Our backlog remained strong at $1.05 billion, up 13% year-over-year and flat sequentially as 5% organic backlog growth offset a 5% currency headwind during the period."

"For the full year, we reaffirmed guidance for EPS in the range of $2.21 to $2.56 per share, EBITDA between $240 and $260 million and Free Cash Flow between $105 and $125 million.  Our target revenue range remains between $2.055 and $2.105 billion and now reflects mid-single digit organic growth and a 1% currency benefit, as compared to low-single digit organic growth and a 4% currency benefit in our previous guidance," concluded Michael. 

Second Quarter 2018 Consolidated Results

$ millions; except per share data

Q2 2018

Q2 2017

Variance

Organic Variance






Backlog

$1050.1

$930.6

12.8%

12.4%

Orders

575.3

503.6

14.2%

12.5%

Revenues (1)

531.2

498.0

6.7%

2.5%

Operating Income

48.5

29.0

67.2%


  Margin %

9.1%

5.8%

330 bps


Net income

22.9

10.3



EPS

$0.54

$0.24








EBITDA*

$61.9

$43.8

41.3%


Operating cash flow

3.0

48.8



Free cash flow (usage)*

(4.2)

42.2



Note:  The commentary below is on an organic basis and as compared to the prior year period.

  • Backlog increased 12.4%, or $115.8 million with growth across all three segments, including double-digit growth in the Food and Beverage and Industrial backlogs.
  • Orders grew 12.5% driven by sharp, double-digit growth in medium-size capital orders for Food and Beverage systems and North American OE pipeline valves.  Orders for Food and Beverage and Industrial components grew double-digits in aggregate and aftermarket orders across the enterprise grew mid-single-digits.
  • Revenues* grew 2.5%, primarily driven by increased shipments of Industrial products, and Food and Beverage components.  Aftermarket revenues grew mid-single digits with growth across each segment.
  • Operating income was $48.5 million, or 9.1% of revenues, an increase of $19.5 million, or 330 points.  The increase in income and margin was driven by the organic growth referenced above, savings from cost reduction initiatives and a higher level of productivity.  Additionally, the company recorded $1.1 million of special charges, as compared to $6.7 million in the prior year period.
  • Diluted earnings per share were $0.54, up 125% and included:
    • A net tax charge of ($0.03) per share as compared to the company's guidance, due primarily to a reduction of previously recorded foreign tax credits available to the company from distributions of income taxed under the transition tax provisions of the U.S. Tax Cuts and Jobs Act.
  • EBITDA* increased to $61.9 million or 41.3%, primarily driven by the increase in operating income noted above.
  • Free cash flow* was a ($4.2) million investment and included $7.2 million of capital expenditures and $6.3 million of restructuring payments.

Second Quarter 2018 Results by Segment

Food and Beverage

$ millions

Q2 2018

Q2 2017

Variance

Organic Variance






Backlog

$382.9

$320.3

19.5%

19.1%

Orders

199.3

165.3

20.6%

18.5%

Revenues (1)

187.6

176.5

6.3%

0.6%

Income

20.0

17.3

15.6%


  As a percent of revenues

10.7%

9.8%

90 bps


Note:  The commentary below is on an organic basis and as compared to the prior year period.

  • Backlog increased 19.1% driven primarily by an increase in dairy processing system orders including two large orders awarded in Q4 2017 which totaled $71.5 million.
  • Orders grew 18.5% driven by sharp double-digit growth in system orders, primarily for fresh liquid dairy processing.  Component and aftermarket orders grew mid-single digits. 
  • Revenues* grew modestly as growth in component and aftermarket sales was partially offset by a lower level of volume of system revenue.
  • The increase in segment income and margin was driven by the organic revenue growth described above, savings from cost reduction initiatives, improved project execution and increased productivity in our Bydgoszcz, Poland facility.

Power and Energy

$ millions

Q2 2018

Q2 2017

Variance

Organic Variance






Backlog

$430.8

$403.5

6.8%

5.8%

Orders

170.0

145.4

16.9%

14.8%

Revenues (1)

151.8

145.0

4.7%

(1.6%)

Income

14.5

10.0

45.0%


  As a percent of revenues

9.6%

6.9%

270 bps


Note:  The commentary below is on an organic basis and as compared to the prior year period.

  • Backlog increased 5.8% driven primarily by a higher level of OE pump and valve orders related to North American midstream oil applications and to a lesser extent, nuclear power.
  • Orders increased by 14.8% primarily driven by an increased level of demand for oil pipeline valves in the North American midstream market along with an uptick in aftermarket activity for nuclear and upstream pumps.  This growth was partially offset by a lower level of OE orders for nuclear pumps.
  • Revenues* decreased (1.6%) due primarily to a lower level of filtration shipments, partially offset by an increase in midstream pipeline valve shipments and modest aftermarket growth.
  • The increase in segment income and margin was driven by savings from cost reduction initiatives, a higher margin revenue mix and improved productivity.

Industrial

$ millions

Q2 2018

Q2 2017

Variance

Organic Variance






Backlog

$236.4

$206.8

14.3%

15.0%

Orders

206.0

192.9

6.8%

5.5%

Revenues (1)

191.8

176.5

8.7%

7.8%

Income

27.5

20.8

32.2%


  As a percent of revenues

14.3%

11.8%

250 bps


Note:  The commentary below is on an organic basis and as compared to the prior year period.

  • Backlog increased 15.0% with the growth concentrated in the mixer and pump product lines and to a lesser extent, in the dehydration and hydraulic tools product lines.
  • Orders grew 5.5% led by growth across the hydraulic tools, mixer and heat exchanger product lines, and to a lesser extent pumps. 
  • Revenues* grew 7.8%, driven by solid aftermarket growth and increased shipments of dehydration equipment, pumps, mixers, and hydraulic tools.
  • The segment income growth and margin expansion was driven by the organic growth described above, as well as savings from cost reduction initiatives.

OTHER ITEMS

Debt Repayment:  In Q2 2018 the company made a voluntary prepayment of $20.0 million on its term loan.  This payment, coupled with the required quarterly principal payment of $5.0 million, reduced the outstanding principal balance of the term loan to $210.0 million.

Form 10-Q: The company expects to file its quarterly report on Form 10-Q for the quarter ended June 30, 2018 with the Securities and Exchange Commission on August 1, 2018. This news release should be read in conjunction with that filing, which will be available on the company's website at www.spxflow.com, in the Investor Relations section.

About SPX FLOW, Inc.:   Based in Charlotte, North Carolina, SPX FLOW, Inc. (NYSE:FLOW) innovates with customers to help feed and enhance the world by designing, delivering and servicing high value solutions at the heart of growing and sustaining our diverse communities. The company's product offering is concentrated in rotating, actuating and hydraulic technologies, as well as automated process systems, into food and beverage, industrial and power and energy markets. SPX FLOW has approximately $2 billion in annual revenues with operations in more than 30 countries and sales in more than 150 countries. To learn more about SPX FLOW, please visit www.spxflow.com.

*Non-GAAP measure. See attached schedules for reconciliation from most comparable GAAP measure.  Management believes these Non-GAAP metrics are commonly used financial measures for investors to evaluate our operating performance for the periods presented, and when read in conjunction with our condensed consolidated financial statements, present a useful tool to evaluate our ongoing operations and provide investors with metrics they can use to evaluate our management of the business from period to period. In addition, these are some of the factors we use in internal evaluations of the overall performance of our business. 

Management acknowledges that there are many items that impact a company's reported results and the adjustments reflected in these Non-GAAP measures are not intended to present all items that may have impacted these results. In addition, these Non-GAAP measures are not necessarily comparable to similarly-titled measures used by other companies.

(1) Organic revenue growth (decline) is calculated on a constant currency basis and excludes the net impact related to the adoption of the ASC 606 revenue recognition standard.

Note:  Net leverage is as defined by the company's credit facility.

Certain statements in this press release are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created thereby. Please read these results in conjunction with the company's documents filed with the Securities and Exchange Commission. 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 "expect", "anticipate", "plan", "target", "project", "believe" 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 FLOW disclaims any responsibility to update or revise such statements.

Investor and Media Contact:
Ryan Taylor, Vice President, Communications and Investor Relations               
Phone: 704-752-4486                                    
Email: investor@spxflow.com

 

SPX FLOW, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited; in millions, except per share amounts)










Three months ended


Six months ended


June 30, 2018


July 1, 2017


June 30, 2018


July 1, 2017

Revenues

$                      531.2


$                      498.0


$                   1,021.5


$                      931.2

Cost of products sold

358.5


345.0


693.1


639.1

 Gross profit

172.7


153.0


328.4


292.1

Selling, general and administrative

118.8


113.0


234.3


228.3

Intangible amortization

4.3


4.3


8.7


8.9

Special charges

1.1


6.7


3.7


15.3

 Operating income

48.5


29.0


81.7


39.6









Other expense, net

(0.8)


(0.3)


(5.4)


(2.4)

Interest expense, net

(12.4)


(15.8)


(24.9)


(31.7)

 Income before income taxes

35.3


12.9


51.4


5.5

Income tax provision

(11.9)


(2.7)


(12.7)


(2.6)

Net income

23.4


10.2


38.7


2.9

Less: Net income (loss) attributable to noncontrolling interests

0.5


(0.1)


0.3


Net income attributable to SPX FLOW, Inc.

$                        22.9


$                        10.3


$                        38.4


$                          2.9









Basic income per share of common stock

$                        0.54


$                        0.25


$                        0.91


$                        0.07

Diluted income per share of common stock

$                        0.54


$                        0.24


$                        0.90


$                        0.07









Weighted average number of common shares outstanding - basic

42.146


41.844


42.072


41.724

Weighted average number of common shares outstanding - diluted

42.616


42.221


42.559


42.058









 

 

 SPX FLOW, INC. AND SUBSIDIARIES 

 CONDENSED CONSOLIDATED BALANCE SHEETS 

(Unaudited; in millions)



June 30, 2018


December 31, 2017

ASSETS




Current assets:




Cash and equivalents

$                      204.9


$                      263.7

Accounts receivable, net

383.2


381.4

Contract assets

77.4


57.7

Inventories, net

325.3


293.9

Other current assets

39.8


50.0

Total current assets

1,030.6


1,046.7

Property, plant and equipment:




Land

34.3


35.1

Buildings and leasehold improvements

233.8


238.3

Machinery and equipment

463.7


461.6


731.8


735.0

Accumulated depreciation

(383.7)


(374.1)

Property, plant and equipment, net

348.1


360.9

Goodwill

754.5


771.3

Intangibles, net

335.5


350.3

Other assets

149.4


159.8

TOTAL ASSETS

$                   2,618.1


$                   2,689.0





LIABILITIES, MEZZANINE EQUITY AND EQUITY




Current liabilities:




Accounts payable

$                      234.1


$                      219.4

Contract liabilities

192.6


182.3

Accrued expenses

178.9


207.3

Income taxes payable

23.7


21.6

Short-term debt

27.0


24.2

Current maturities of long-term debt

20.5


20.5

Total current liabilities

676.8


675.3

Long-term debt

792.1


850.9

Deferred and other income taxes

55.2


63.3

Other long-term liabilities

119.7


125.5

Total long-term liabilities

967.0


1,039.7

Mezzanine equity

21.0


22.2

Equity:




SPX FLOW, Inc. shareholders' equity:




Common stock

0.4


0.4

Paid-in capital

1,656.7


1,650.9

Accumulated deficit

(283.3)


(327.5)

Accumulated other comprehensive loss

(417.7)


(372.8)

Common stock in treasury

(13.3)


(8.9)

Total SPX FLOW, Inc. shareholders' equity

942.8


942.1

Noncontrolling interests

10.5


9.7

Total equity

953.3


951.8

TOTAL LIABILITIES, MEZZANINE EQUITY AND EQUITY

$                   2,618.1


$                   2,689.0





 

 

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 six months ended






June 30, 2018


July 1, 2017


Δ


%/bps


June 30, 2018


July 1, 2017


Δ


%/bps

Food and Beverage
































Backlog

$                       382.9


$                       320.3


$               62.6


19.5%


$                       382.9


$                       320.3


$            62.6


19.5%

Orders

199.3


165.3


34.0


20.6%


370.5


349.5


21.0


6.0%

















Revenues

187.6


176.5


11.1


6.3%


354.1


342.4


11.7


3.4%

Gross profit

59.1


54.2


4.9




114.0


105.3


8.7



as a percent of revenues

31.5 %


30.7 %




80bps


32.2 %


30.8 %




140bps

Selling, general and administrative expense

37.2


35.1


2.1




72.3


68.4


3.9



as a percent of revenues

19.8 %


19.9 %




-10bps


20.4 %


20.0 %




40bps

Intangible amortization expense

1.9


1.8


0.1




3.8


4.1


(0.3)



Income

$                         20.0


$                         17.3


$                 2.7


15.6%


$                         37.9


$                         32.8


$              5.1


15.5%

as a percent of revenues

10.7 %


9.8 %




90bps


10.7 %


9.6 %




110bps

















Power and Energy
































Backlog

$                       430.8


$                       403.5


$               27.3


6.8%


$                       430.8


$                       403.5


$            27.3


6.8%

Orders

170.0


145.4


24.6


16.9%


314.4


313.2


1.2


0.4%

















Revenues

151.8


145.0


6.8


4.7%


296.5


250.9


45.6


18.2%

Gross profit

45.9


40.0


5.9




89.9


70.1


19.8



as a percent of revenues

30.2 %


27.6 %




260bps


30.3 %


27.9 %




240bps

Selling, general and administrative expense

30.3


28.9


1.4




60.9


59.4


1.5



as a percent of revenues

20.0 %


19.9 %




10bps


20.5 %


23.7 %




-320bps

Intangible amortization expense

1.1


1.1





2.3


2.2


0.1



Income

$                         14.5


$                         10.0


$                 4.5


45.0%


$                         26.7


$                           8.5


$            18.2


214.1%

as a percent of revenues

9.6 %


6.9 %




270bps


9.0 %


3.4 %




560bps

















Industrial
































Backlog

$                       236.4


$                       206.8


$               29.6


14.3%


$                       236.4


$                       206.8


$            29.6


14.3%

Orders

206.0


192.9


13.1


6.8%


399.4


376.1


23.3


6.2%

















Revenues

191.8


176.5


15.3


8.7%


370.9


337.9


33.0


9.8%

Gross profit

67.7


58.8


8.9




124.5


116.7


7.8



as a percent of revenues

35.3 %


33.3 %




200bps


33.6 %


34.5 %




-90bps

Selling, general and administrative expense

38.9


36.6


2.3




73.9


72.2


1.7



as a percent of revenues

20.3 %


20.7 %




-40bps


19.9 %


21.4 %




-150bps

Intangible amortization expense

1.3


1.4


(0.1)




2.6


2.6




Income

$                         27.5


$                         20.8


$                 6.7


32.2%


$                         48.0


$                         41.9


$              6.1


14.6%

as a percent of revenues

14.3 %


11.8 %




250bps


12.9 %


12.4 %




50bps

















Consolidated Backlog

$                    1,050.1


$                       930.6


$             119.5


12.8 %


$                    1,050.1


$                       930.6


$          119.5


12.8 %

Consolidated Orders

575.3


503.6


71.7


14.2 %


1,084.3


1,038.8


45.5


4.4 %

Consolidated Revenues

531.2


498.0


33.2


6.7 %


1,021.5


931.2


90.3


9.7 %

Consolidated Segment Income

62.0


48.1


13.9


28.9 %


112.6


83.2


29.4


35.3 %

as a percent of revenues

11.7%


9.7%




200bps


11.0%


8.9%




210bps

















Total income for reportable segments

$                         62.0


$                         48.1


$               13.9




$                       112.6


$                         83.2


$            29.4



Corporate expense

12.0


12.1


(0.1)




26.4


27.6


(1.2)



Pension and postretirement service costs

0.4


0.3


0.1




0.8


0.7


0.1



Special charges

1.1


6.7


(5.6)




3.7


15.3


(11.6)



Consolidated Operating Income

$                         48.5


$                         29.0


$               19.5


67.2 %


$                         81.7


$                         39.6


$            42.1


106.3 %

as a percent of revenues

9.1 %


5.8 %




330bps


8.0 %


4.3 %




370bps

















 

 

SPX FLOW, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited; in millions)










Three months ended


Six months ended


June 30, 2018


July 1, 2017


June 30, 2018


July 1, 2017

Cash flows from operating activities:








Net income

$                      23.4


$                     10.2


$                      38.7


$                        2.9

Adjustments to reconcile net income to net cash from operating activities:








Special charges

1.1


6.7


3.7


15.3

Deferred income taxes

(2.1)


(0.7)


1.4


(3.9)

Depreciation and amortization

14.7


15.0


29.8


30.7

Stock-based compensation

4.0


3.9


9.1


7.9

Pension and employee benefits provided in stock

1.3


2.1


4.4


3.3

Loss (gain) on asset sales and other, net

0.2


(1.5)


0.2


(1.5)

Changes in operating assets and liabilities:








Accounts receivable and other assets

(18.2)


4.0


(4.1)


25.5

Contract assets and liabilities, net

(18.2)


(6.6)


(7.6)


17.3

Inventories

(13.0)


3.1


(34.9)


(18.4)

Accounts payable, accrued expenses and other

16.1


21.7


(12.0)


11.3

Cash spending on restructuring actions

(6.3)


(9.1)


(10.1)


(18.5)

Net cash from operating activities

3.0


48.8


18.6


71.9

Cash flows from (used in) investing activities:








Proceeds from asset sales and other, net


10.8



31.1

Capital expenditures

(7.2)


(6.6)


(12.4)


(11.4)

Net cash from (used in) investing activities

(7.2)


4.2


(12.4)


19.7

Cash flows used in financing activities:








Borrowings under senior credit facilities

36.3


41.0


55.8


125.5

Repayments of senior credit facilities

(61.3)


(69.0)


(115.8)


(202.5)

Borrowings under trade receivables financing arrangement

37.5


39.0


65.5


77.1

Repayments of trade receivables financing arrangement

(39.5)


(62.4)


(62.5)


(98.3)

Borrowings under other financing arrangements

3.7


5.8


3.7


5.8

Repayments of other financing arrangements

(0.8)


(1.6)


(3.9)


(9.6)

Minimum withholdings paid on behalf of employees for net share settlements, net

(0.4)


(0.1)


(4.4)


(3.3)

Dividends paid to noncontrolling interests in subsidiary

(1.2)


(1.4)


(2.2)


(1.5)

Net cash used in financing activities

(25.7)


(48.7)


(63.8)


(106.8)

Change in cash, cash equivalents and restricted cash due to changes in foreign currency exchange rates

(9.2)


13.1


(1.3)


26.2

Net change in cash, cash equivalents and restricted cash

(39.1)


17.4


(58.9)


11.0

Consolidated cash, cash equivalents and restricted cash, beginning of period

245.1


209.8


264.9


216.2

Consolidated cash, cash equivalents and restricted cash, end of period

$                    206.0


$                   227.2


$                    206.0


$                    227.2









 

 

SPX FLOW, INC. AND SUBSIDIARIES

ORGANIC REVENUE RECONCILIATION

(Unaudited)










Three months ended June 30, 2018


Net Revenue
Growth


Foreign
Currency


Adoption of New
Revenue
Standard*


Organic
Revenue Growth
(Decline)

Food and Beverage

6.3 %


2.0 %


3.7 %


0.6 %

Power and Energy

4.7 %


2.3 %


4.0 %


(1.6)%

Industrial

8.7 %


1.1 %


(0.2)%


7.8 %

Consolidated

6.7 %


1.8 %


2.4 %


2.5 %


















Six months ended June 30, 2018


Net Revenue
Growth


Foreign
Currency


Adoption of New
Revenue
Standard*


Organic
Revenue Growth
(Decline)

Food and Beverage

3.4 %


4.6 %


2.7 %


(3.9)%

Power and Energy

18.2 %


4.0 %


3.7 %


10.5 %

Industrial

9.8 %


3.3 %


0.7 %


5.8 %

Consolidated

9.7 %


3.9 %


2.3 %


3.5 %









*Transitioned to ASC 606 accounting for revenue recognition in Q1 2018. 











 

 

SPX FLOW, INC. AND SUBSIDIARIES

CASH, DEBT AND NET DEBT RECONCILIATION

(Unaudited; in millions)






Six months ended




June 30, 2018



Beginning cash, cash equivalents and restricted cash

$                           264.9







Net cash from operating activities

18.6



Capital expenditures

(12.4)



Borrowings under senior credit facilities

55.8



Repayments of senior credit facilities

(115.8)



Borrowings under trade receivables financing arrangement

65.5



Repayments of trade receivables financing arrangement

(62.5)



Borrowings under other financing arrangements

3.7



Repayments of other financing arrangements

(3.9)



Minimum withholdings paid on behalf of employees for net share settlements, net

(4.4)



Dividends paid to noncontrolling interests in subsidiary

(2.2)



Change in cash, cash equivalents and restricted cash due to changes in foreign currency exchange rates

(1.3)







Ending cash, cash equivalents and restricted cash

$                           206.0












Debt and Net Debt at


June 30, 2018


December 31, 2017

Term loan

$                           210.0


$                           270.0

5.625% senior notes, due in August 2024

300.0


300.0

5.875% senior notes, due in August 2026

300.0


300.0

Trade receivables financing arrangement

3.0


Other indebtedness

35.7


35.8

Less: deferred financing fees

(9.1)


(10.2)

Total debt

$                           839.6


$                           895.6





Total debt

$                           839.6


$                           895.6

Less: cash and equivalents

(204.9)


(263.7)

Net debt

$                           634.7


$                           631.9





 

 

SPX FLOW, INC. AND SUBSIDIARIES

FREE CASH FLOW RECONCILIATION

(Unaudited; in millions)












Three months ended


Six months ended


2018


June 30, 2018


July 1, 2017


June 30, 2018


July 1, 2017


Mid-Point Guidance

Net cash from operating activities

$                            3.0


$                          48.8


$                          18.6


$                          71.9


$                               145

Capital expenditures

(7.2)


(6.6)


(12.4)


(11.4)


$                               (30)

Free cash flow from operations

$                          (4.2)


$                          42.2


$                            6.2


$                          60.5


$                               115





















 

 

SPX FLOW, INC. AND SUBSIDIARIES

EBITDA RECONCILIATION

(Unaudited; in millions)












Three months ended


Six months ended


2018


June 30, 2018


July 1, 2017


June 30, 2018


July 1, 2017


Mid-Point Guidance

Net income attributable to SPX FLOW, Inc.

$                           22.9


$                           10.3


$                      38.4


$                        2.9


$                            102











Income tax provision

11.9


2.7


12.7


2.6


40

Interest expense, net

12.4


15.8


24.9


31.7


49

Depreciation and amortization

14.7


15.0


29.8


30.7


59

EBITDA

61.9


43.8


105.8


67.9


$                            250

Special charges

1.1


6.7


3.7


15.3



Non-cash compensation expense

4.0


5.3


11.5


10.9



Non-service pension and postretirement related costs (benefits)

0.9


0.4


1.2


(0.4)



Interest income

1.2


1.3


3.2


2.3



Loss (gain) on asset sales and other, net

0.2


(1.5)


0.2


(1.5)



Other

0.2


0.1


0.4


0.3



Bank consolidated EBITDA

$                           69.5


$                           56.1


$                    126.0


$                      94.8













 

Cision View original content:http://www.prnewswire.com/news-releases/spx-flow-delivers-growth-and-profit-improvement-in-second-quarter-2018-300689733.html

SOURCE SPX FLOW, Inc.

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