CHARLOTTE, N.C., Feb. 16, 2022 /PRNewswire/ -- SPX FLOW, Inc.
(NYSE:FLOW), a leading provider of process solutions for the
nutrition, health and industrial markets, today reported results
for the fourth quarter and full year ended December 31, 2021.
Demand remained strong throughout the fourth quarter with orders
up 3% organically leading to record year-end backlog of
$610 million, up 7.5% organically
year-over-year. As anticipated, revenue was down 4% organically in
the quarter due to timing of Nutrition and Health systems,
selectivity in Precision Solutions, and the impact of six fewer
days in the fourth quarter of 2021 versus the fourth quarter of
2020. Adjusted EBITDA* margin was 13.8% for the quarter, up 210
basis points year-over-year, driven by improved gross margin as the
company pursued higher quality revenue and enhanced price
realization.
In the quarter, the company experienced challenges related to
disruptions in supply chain and freight and lower availability of
labor in certain facilities. The company estimates $14 million of revenue was delayed due to lack of
availability of component parts for the company's finished goods
and inefficient freight logistics, which negatively impacted EBITDA
by $7 million. In order to serve key
customers, the company also incurred an additional $1 million of premium freight expense and
$1 million of costs for COVID-related
labor inefficiencies. In addition to these operational headwinds
and the resulting incremental costs in the period, the company also
incurred discrete expenses related primarily to adjustments to
working capital accounts of $2
million and a $1 million LIFO
charge as a result of rising raw materials costs. The aggregate
impact of these items reduced Adjusted EBITDA* margin by
approximately 260 basis points.
|
Fourth Quarter
2021 Consolidated Results (continuing operations unless otherwise
noted)
|
|
|
$ millions
|
Q4
2021
|
|
Q4
2020
|
|
Variance
|
|
Organic
Variance
|
|
Backlog
|
$
609.7
|
|
$
545.8
|
|
11.7%
|
|
7.5%
|
|
Orders
|
419.3
|
|
393.7
|
|
6.5%
|
|
3.1%
|
|
Revenues
|
394.0
|
|
396.1
|
|
(0.5)%
|
|
(3.8)%
|
|
|
|
|
|
|
|
|
|
Operating
income
|
31.4
|
|
26.5
|
|
18.5%
|
|
|
|
Margin %
|
8.0%
|
|
6.7%
|
|
130
bps
|
|
|
|
Adjusted operating
income*
|
47.3
|
|
39.9
|
|
18.5%
|
|
|
|
Margin %
|
12.0%
|
|
10.1%
|
|
190
bps
|
|
|
|
Segment
income
|
52.2
|
|
48.1
|
|
8.5%
|
|
|
|
Margin
%
|
13.2%
|
|
12.1%
|
|
110
bps
|
|
|
|
|
|
|
|
|
|
|
|
Operating cash flow
from continuing operations
|
27.7
|
|
88.7
|
|
|
|
|
|
Adjusted free cash
flow from continuing operations*
|
25.9
|
|
88.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations, net of tax
|
12.3
|
|
20.1
|
|
|
|
|
|
Adjusted EBITDA from
continuing operations*
|
54.5
|
|
46.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: The
commentary below is compared to the prior-year period. All comments
refer to continuing operations unless otherwise
noted.
|
- Backlog increased 11.7%, or $63.9
million, due to strong order intake in the Precision
Solutions segment and the positive impact of current year
acquisitions. Organically, backlog increased 7.5%, with 15.5% and
0.6% organic increases in Precision Solutions and Nutrition &
Health segments backlog, respectively.
- Orders increased 3.1% organically, or $12.2 million, driven primarily by an 8.0% or
$15.5 million increase in Precision
Solutions segment orders, partially offset by a 1.7% or
$3.4 million decrease in Nutrition
& Health segment orders.
- Revenues decreased 0.5%, or $2.1
million primarily driven by a 3.8% decrease in organic
revenues, with a 9.7% organic decline in the Nutrition & Health
segment offset slightly by 1.0% organic growth in the Precision
Solutions segment.
- Operating income was $31.4
million, or 8.0% of revenues. After excluding discrete,
non-operational and non-cash items and reclassifying transitional
services income, adjusted operating income* was $47.3 million, or 12.0% of revenues, representing
an increase of approximately 190 basis points year-over-year on a
comparable basis.
- Segment income was $52.2 million,
up 8.5%, and segment margin increased by 110 basis points to 13.2%.
The increase in segment income was primarily driven by improved
gross margin as the company pursued higher quality revenue and
enhanced price realization, offset slightly by increased intangible
amortization charges. Excluding the impacts of higher intangible
amortization charges and of fair value adjustments, adjusted
segment income* was $56.5 million, up
9.7%, and adjusted segment margin* increased by 130 basis points to
14.3%.
- Adjusted free cash flow* from continuing operations was
$25.9 million, including investments
of $9.1 million on capital
expenditures and excluding cash spending of $3.2 million on restructuring actions,
$3.1 million on strategic actions,
and $1.0 million on certain M&A
activities.
- Nutrition & Health segment revenues decreased 11.3% driven
by a 9.7% decrease in organic revenues primarily related to timing
of systems projects. Segment income was $30.4 million, up 19.2% from the prior year.
Adjusted segment income* was $31.9
million, up 17.3%, and adjusted segment margin* increased by
470 basis points to 19.2%. The increase in adjusted segment income*
was primarily driven by a higher quality of revenue and SG&A
cost reductions offset by inflationary pressures. Increased margins
were primarily the result of the improved revenue mix and lower
SG&A expenses.
- Precision Solutions segment revenues increased 9.2%, primarily
driven by a 9.3% increase related to current year acquisitions and
a 1.0% increase in organic revenues related to an elevated level of
short-cycle book-and-turn business, offset partially by intentional
long-cycle product line selectivity. Segment income was
$21.8 million, down 3.5% from the
prior year. Adjusted segment income* was $24.6 million, up 1.2%, and adjusted segment
margin* decreased by 90 basis points to 10.8%, driven primarily by
a slightly less favorable mix of revenue, inflationary pressure and
modestly higher SG&A spend. The increase in adjusted segment
income* was primarily driven by earnings from acquisitions
completed in 2021.
OTHER ITEMS
About SPX FLOW, Inc.: Based in Charlotte, N.C., SPX FLOW, Inc. (NYSE: FLOW)
improves the world through innovative and sustainable solutions.
The company's product offering is concentrated in process
technologies that perform mixing, blending, fluid handling,
separation, thermal heat transfer and other activities that are
integral to processes performed across a wide variety of nutrition,
health and industrial markets. SPX FLOW had approximately
$1.5 billion in 2021 annual revenues
and has operations in more than 30 countries and sales in more than
140 countries. To learn more about SPX FLOW, please visit
www.spxflow.com.
On December 12, 2021, the Company
entered into a merger agreement with an affiliate of Lone Star
Funds ("Lone Star"), wherein upon
closing, Lone Star will acquire all
of the Company's outstanding common shares in exchange for a cash
purchase price of $86.50 per share.
The transaction was unanimously approved by the Company's Board of
Directors and is expected to close in the first half of 2022,
subject to receipt of certain regulatory approvals, as well as the
Company's shareholder approval and other customary closing
conditions.
*Non-GAAP measure. See attached schedules for reconciliation
from most comparable GAAP measure. Management believes these
non-GAAP measures are commonly used financial measures for
investors to evaluate our operating performance for the periods
presented, and when read in conjunction with our condensed
consolidated financial statements, present a useful tool to
evaluate continuing operations and provide investors with measures
they can use to evaluate our management of the business from period
to period. In addition, these are some of the factors we use in
internal evaluations of the overall performance of our business.
Management acknowledges that there are many items that impact a
company's reported results and the adjustments reflected in these
non-GAAP measures are not intended to present all items that may
have impacted these results. In addition, these non-GAAP measures
are not necessarily comparable to similarly-titled measures used by
other companies.
Certain statements in this press release are forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended, and are subject to the safe harbor created
thereby. The words "expects," "anticipates," "plans," "targets,"
"projects," "believes," "estimates," "forecasts," "intends,"
"should," "could," "would," "will," "may" and similar expressions
identify forward-looking statements. Although the company believes
that the expectations reflected in its forward-looking statements
are reasonable, it can give no assurance that such expectations
will prove to be correct. Actual results could differ materially
from those contained in any forward-looking statement as a result
of various factors, including, without limitation: (1) conditions
to the closing of the transaction may not be satisfied and required
regulatory approvals may not be obtained; (2) the transaction may
involve unexpected costs, liabilities or delays; (3) the business
of SPX FLOW may suffer as a result of uncertainty surrounding the
transaction; (4) the outcome of any legal proceedings related to
the transaction; (5) SPX FLOW may be adversely affected by other
economic, business, legislative, regulatory and/or competitive
factors; (6) the occurrence of any event, change or other
circumstances that could give rise to the termination of the merger
agreement; (7) risks that the transaction disrupts current plans
and operations and the potential difficulties in employee retention
as a result of the transaction; (8) the failure of Lone Star to obtain the necessary debt financing
arrangements set forth in the commitment letter it received in
connection with the transaction; and (9) other risks to
consummation of the transaction, including the risk that the
transaction will not be consummated within the expected time period
or at all. If the transaction is consummated, SPX FLOW's
stockholders will cease to have any equity interest in SPX FLOW and
will have no right to participate in its earnings and future
growth. Additional factors that may affect the future results of
SPX FLOW are set forth in its filings with the SEC, including its
Annual Report on Form 10-K for the year ended December 31, 2020, which are available on the
SEC's website at www.sec.gov. Readers are cautioned not to place
undue reliance on these forward-looking statements, which speak
only as of the date thereof.
Investor Contact:
Scott
Gaffner
VP, Investor Relations and Strategic Insights
704-752-4485
investor@spxflow.com
Media Contact:
Melissa
Buscher
Chief Communications and Marketing Officer
704-540-2160
melissa.buscher@spxflow.com
|
SPX FLOW, INC. AND
SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(Unaudited; in
millions, except per share amounts)
|
|
|
Three months
ended
December 31,
|
|
Twelve months
ended
December 31,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
Revenues
|
$
394.0
|
|
$
396.1
|
|
$
1,529.0
|
|
$
1,350.6
|
|
Cost of products
sold
|
258.0
|
|
267.9
|
|
993.8
|
|
881.7
|
|
Gross
profit
|
136.0
|
|
128.2
|
|
535.2
|
|
468.9
|
|
Selling, general and
administrative
|
101.7
|
|
91.3
|
|
379.2
|
|
357.2
|
|
Intangible
amortization
|
4.3
|
|
3.2
|
|
17.9
|
|
11.7
|
|
Asset impairment
charges
|
—
|
|
—
|
|
—
|
|
3.2
|
|
Restructuring and
other related charges (credits)
|
(1.4)
|
|
3.0
|
|
12.7
|
|
11.7
|
|
Loss (gain) on sale of
business and product line assets
|
—
|
|
4.2
|
|
(5.6)
|
|
4.2
|
|
Operating
income
|
31.4
|
|
26.5
|
|
131.0
|
|
80.9
|
|
|
|
|
|
|
|
|
|
Other income,
net
|
4.8
|
|
1.0
|
|
17.3
|
|
9.5
|
|
Interest expense,
net
|
(2.0)
|
|
(5.0)
|
|
(16.0)
|
|
(29.9)
|
|
Loss on early
extinguishment of debt
|
—
|
|
—
|
|
(12.4)
|
|
(11.0)
|
|
Income
from continuing operations before income taxes
|
34.2
|
|
22.5
|
|
119.9
|
|
49.5
|
|
Income tax
provision
|
(21.9)
|
|
(2.5)
|
|
(53.5)
|
|
(6.2)
|
|
Income from
continuing operations
|
12.3
|
|
20.0
|
|
66.4
|
|
43.3
|
|
Income (loss) from
discontinued operations, net of tax
|
1.5
|
|
4.1
|
|
0.7
|
|
(36.8)
|
|
Net income
|
13.8
|
|
24.1
|
|
67.1
|
|
6.5
|
|
Less: Net income
(loss) attributable to noncontrolling interests
|
—
|
|
(0.1)
|
|
0.4
|
|
0.6
|
|
Net income
attributable to SPX FLOW, Inc.
|
$
13.8
|
|
$
24.2
|
|
$
66.7
|
|
$
5.9
|
|
|
|
|
|
|
|
|
|
Amounts attributable
to SPX FLOW, Inc. common shareholders:
|
|
|
|
|
|
|
|
|
Income from continuing
operations, net of tax
|
$
12.3
|
|
$
20.1
|
|
$
66.0
|
|
$
42.6
|
|
Income (loss) from
discontinued operations, net of tax
|
1.5
|
|
4.1
|
|
0.7
|
|
(36.7)
|
|
Net income attributable
to SPX FLOW, Inc.
|
$
13.8
|
|
$
24.2
|
|
$
66.7
|
|
$
5.9
|
|
|
|
|
|
|
|
|
|
Basic income (loss)
per share of common stock:
|
|
|
|
|
|
|
|
|
Income per share from
continuing operations
|
$
0.29
|
|
$
0.48
|
|
$
1.57
|
|
$
1.01
|
|
Income (loss) per share
from discontinued operations
|
0.04
|
|
0.10
|
|
0.02
|
|
(0.87)
|
|
Net income per share
attributable to SPX FLOW, Inc.
|
0.33
|
|
0.58
|
|
1.59
|
|
0.14
|
|
Diluted income (loss)
per share of common stock:
|
|
|
|
|
|
|
|
|
Income per share from
continuing operations
|
$
0.29
|
|
$
0.47
|
|
$
1.57
|
|
$
1.00
|
|
Income (loss) per share
from discontinued operations
|
0.04
|
|
0.10
|
|
0.02
|
|
(0.86)
|
|
Net income per share
attributable to SPX FLOW, Inc.
|
0.33
|
|
0.57
|
|
1.59
|
|
0.14
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding - basic
|
41.955
|
|
42.070
|
|
41.932
|
|
42.307
|
|
Weighted average
number of common shares outstanding - diluted
|
41.968
|
|
42.627
|
|
41.959
|
|
42.554
|
|
SPX FLOW, INC. AND
SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(Unaudited; in
millions)
|
|
|
December 31,
2021
|
|
December 31,
2020
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and
equivalents
|
$
313.9
|
|
$
441.5
|
|
Accounts receivable,
net
|
246.0
|
|
232.6
|
|
Contract
assets
|
25.5
|
|
24.4
|
|
Inventories,
net
|
242.8
|
|
199.3
|
|
Other current
assets
|
44.1
|
|
27.4
|
|
Total current
assets
|
872.3
|
|
925.2
|
|
Property, plant and
equipment:
|
|
|
|
|
Land
|
21.9
|
|
22.8
|
|
Buildings and
leasehold improvements
|
172.0
|
|
176.8
|
|
Machinery and
equipment
|
360.2
|
|
349.1
|
|
554.1
|
|
548.7
|
|
Accumulated
depreciation
|
(318.9)
|
|
(320.6)
|
|
Property, plant and
equipment, net
|
235.2
|
|
228.1
|
|
Goodwill
|
584.5
|
|
569.7
|
|
Intangibles,
net
|
221.9
|
|
206.0
|
|
Other
assets
|
172.3
|
|
169.5
|
|
TOTAL
ASSETS
|
$
2,086.2
|
|
$
2,098.5
|
|
|
|
|
|
LIABILITIES,
MEZZANINE EQUITY AND EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
173.8
|
|
$
149.1
|
|
Contract
liabilities
|
106.2
|
|
119.5
|
|
Accrued
expenses
|
183.4
|
|
178.7
|
|
Income taxes
payable
|
19.8
|
|
23.0
|
|
Short-term
debt
|
13.8
|
|
12.5
|
|
Current maturities of
long-term debt
|
20.0
|
|
0.1
|
|
Total current
liabilities
|
517.0
|
|
482.9
|
|
Long-term
debt
|
374.1
|
|
397.3
|
|
Deferred and other
income taxes
|
48.7
|
|
36.6
|
|
Other long-term
liabilities
|
107.7
|
|
117.5
|
|
Total long-term
liabilities
|
530.5
|
|
551.4
|
|
Mezzanine
equity
|
2.1
|
|
3.4
|
|
Equity:
|
|
|
|
|
SPX FLOW, Inc.
shareholders' equity:
|
|
|
|
|
Common
stock
|
0.4
|
|
0.4
|
|
Paid-in
capital
|
1,729.4
|
|
1,696.9
|
|
Accumulated
deficit
|
(308.0)
|
|
(363.3)
|
|
Accumulated other
comprehensive loss
|
(285.8)
|
|
(226.4)
|
|
Common stock in
treasury
|
(98.7)
|
|
(46.2)
|
|
Total SPX FLOW, Inc.
shareholders' equity
|
1,037.3
|
|
1,061.4
|
|
Noncontrolling
interests
|
(0.7)
|
|
(0.6)
|
|
Total
equity
|
1,036.6
|
|
1,060.8
|
|
TOTAL LIABILITIES,
MEZZANINE EQUITY AND EQUITY
|
$
2,086.2
|
|
$
2,098.5
|
|
SPX FLOW, INC. AND
SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(Unaudited; in
millions)
|
|
|
|
|
|
Three months
ended
December 31,
|
|
Twelve months
ended
December 31,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net income
|
$
13.8
|
|
$
24.1
|
|
$
67.1
|
|
$
6.5
|
|
Less: Income (loss)
from discontinued operations, net of tax
|
1.5
|
|
4.1
|
|
0.7
|
|
(36.8)
|
|
Income from
continuing operations
|
12.3
|
|
20.0
|
|
66.4
|
|
43.3
|
|
Adjustments to
reconcile income from continuing operations to net cash from
operating activities:
|
|
|
|
|
|
|
|
|
Restructuring and
other related charges (credits)
|
(1.4)
|
|
3.0
|
|
12.7
|
|
11.7
|
|
Asset impairment
charges
|
—
|
|
—
|
|
—
|
|
3.2
|
|
Deferred income
taxes
|
19.5
|
|
8.6
|
|
22.0
|
|
27.5
|
|
Depreciation and
amortization
|
11.9
|
|
10.9
|
|
47.2
|
|
41.1
|
|
Stock-based
compensation
|
4.6
|
|
(1.1)
|
|
14.2
|
|
9.5
|
|
Pension and other
employee benefits
|
(1.8)
|
|
2.3
|
|
(1.0)
|
|
3.3
|
|
Gains on asset sales
and other, net
|
—
|
|
(1.6)
|
|
(2.2)
|
|
(2.5)
|
|
Loss (gain) on sale of
business and product line assets
|
—
|
|
4.2
|
|
(5.6)
|
|
4.2
|
|
Gains on changes in
fair value of investment in equity security
|
(2.8)
|
|
(1.2)
|
|
(11.9)
|
|
(8.6)
|
|
Losses on early
extinguishment of debt
|
—
|
|
—
|
|
12.4
|
|
11.0
|
|
Changes in operating
assets and liabilities, net of effects from business
acquisitions and sale, and from discontinued operations:
|
|
|
|
|
|
|
|
|
Accounts receivable
and other assets
|
(16.5)
|
|
10.2
|
|
(26.1)
|
|
26.4
|
|
Contract assets and
liabilities, net
|
(3.1)
|
|
(5.7)
|
|
(13.1)
|
|
(1.3)
|
|
Inventories
|
(1.5)
|
|
30.1
|
|
(39.3)
|
|
18.9
|
|
Accounts payable,
accrued expenses and other
|
9.7
|
|
12.8
|
|
7.6
|
|
(56.1)
|
|
Cash spending on
restructuring actions
|
(3.2)
|
|
(3.8)
|
|
(13.6)
|
|
(11.3)
|
|
Net cash from
continuing operations
|
27.7
|
|
88.7
|
|
69.7
|
|
120.3
|
|
Net cash from (used
in) discontinued operations
|
1.5
|
|
0.7
|
|
0.9
|
|
(7.6)
|
|
Net cash from
operating activities
|
29.2
|
|
89.4
|
|
70.6
|
|
112.7
|
|
Cash flows from
(used in) investing activities:
|
|
|
|
|
|
|
|
|
Proceeds from asset
sales and other, net
|
—
|
|
2.5
|
|
4.1
|
|
5.8
|
|
Proceeds from sale of
business and product line assets, net of cash disposed
|
—
|
|
4.7
|
|
8.0
|
|
4.7
|
|
Capital
expenditures
|
(9.1)
|
|
(5.1)
|
|
(32.6)
|
|
(22.4)
|
|
Business acquisitions,
net of cash acquired of $4.5 and $— in the years ended
December 31, 2021 and 2020
|
0.3
|
|
—
|
|
(102.3)
|
|
(10.0)
|
|
Net cash from (used
in) continuing operations
|
(8.8)
|
|
2.1
|
|
(122.8)
|
|
(21.9)
|
|
Net cash from
discontinued operations (includes proceeds from disposition of
$408.4, less cash and restricted cash disposed of $7.3, in the year
ended
December 31, 2020)
|
—
|
|
2.2
|
|
—
|
|
395.6
|
|
Net cash from (used
in) investing activities
|
(8.8)
|
|
4.3
|
|
(122.8)
|
|
373.7
|
|
Cash flows used in
financing activities:
|
|
|
|
|
|
|
|
|
Borrowings under
amended senior credit facility
|
$
—
|
|
$
—
|
|
$
400.0
|
|
$
—
|
|
Repayments of amended
senior credit facility
|
(5.0)
|
|
—
|
|
(5.0)
|
|
—
|
|
Repurchases of senior
notes (includes premiums paid of $8.8 and $8.4 in the
years ended December 31, 2021 and 2020)
|
—
|
|
—
|
|
(308.8)
|
|
(308.4)
|
|
Repayments of former
senior credit facility
|
—
|
|
—
|
|
(100.0)
|
|
—
|
|
Borrowings under
(repayments of) purchase card program, net
|
(1.6)
|
|
3.7
|
|
1.3
|
|
(7.9)
|
|
Repayments of other
financing arrangements
|
—
|
|
(0.1)
|
|
(1.7)
|
|
(0.4)
|
|
Financing fees
paid
|
—
|
|
—
|
|
(2.9)
|
|
—
|
|
Purchases of common
stock
|
—
|
|
(3.0)
|
|
(40.2)
|
|
(19.9)
|
|
Proceeds from the
exercise of employee stock options
|
—
|
|
—
|
|
17.6
|
|
—
|
|
Minimum withholdings
paid on behalf of employees for net share settlements,
net
|
(6.1)
|
|
(0.1)
|
|
(12.7)
|
|
(7.0)
|
|
Purchases of
noncontrolling interests
|
—
|
|
(6.8)
|
|
(0.6)
|
|
(15.0)
|
|
Dividends paid
(includes noncontrolling interest distributions of $— and $2.8
in the years ended December 31, 2021 and 2020)
|
(3.8)
|
|
(1.6)
|
|
(11.4)
|
|
(2.8)
|
|
Net cash used in
continuing operations
|
(16.5)
|
|
(7.9)
|
|
(64.4)
|
|
(361.4)
|
|
Net cash used in
discontinued operations
|
—
|
|
—
|
|
—
|
|
(0.3)
|
|
Net cash used in
financing activities
|
(16.5)
|
|
(7.9)
|
|
(64.4)
|
|
(361.7)
|
|
Change in cash, cash
equivalents and restricted cash due to changes in foreign
currency exchange rates
|
(3.7)
|
|
3.3
|
|
(11.1)
|
|
13.5
|
|
Net change in cash,
cash equivalents and restricted cash
|
0.2
|
|
89.1
|
|
(127.7)
|
|
138.2
|
|
Consolidated cash,
cash equivalents and restricted cash, beginning of
period
|
313.7
|
|
352.5
|
|
441.6
|
|
303.4
|
|
Consolidated cash,
cash equivalents and restricted cash, end of period
|
$
313.9
|
|
$
441.6
|
|
$
313.9
|
|
$
441.6
|
|
SPX FLOW, INC. AND
SUBSIDIARIES
|
|
ADJUSTED FREE CASH
FLOW RECONCILIATION
|
|
(Unaudited;
in millions)
|
|
|
Three months
ended
December 31,
|
|
Twelve months
ended
December 31,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
Net cash from
operating activities - continuing and discontinued
operations
|
$
29.2
|
|
$
89.4
|
|
$
70.6
|
|
$
112.7
|
|
Less: Net cash flow
from (used in) operating activities - discontinued
operations
|
1.5
|
|
0.7
|
|
0.9
|
|
(7.6)
|
|
Net cash flow from
operating activities - continuing operations
|
27.7
|
|
88.7
|
|
69.7
|
|
120.3
|
|
Capital expenditures
- continuing operations
|
(9.1)
|
|
(5.1)
|
|
(32.6)
|
|
(22.4)
|
|
Free cash flow from
operations - continuing operations
|
18.6
|
|
83.6
|
|
37.1
|
|
97.9
|
|
Cash spending on
restructuring actions
|
3.2
|
|
3.8
|
|
13.6
|
|
11.3
|
|
Cash spending on
certain M&A activities
|
1.0
|
|
—
|
|
5.6
|
|
—
|
|
Cash spending on
strategic actions
|
3.1
|
|
1.4
|
|
3.1
|
|
7.8
|
|
Discrete cash tax
payments
|
—
|
|
—
|
|
4.5
|
|
17.1
|
|
Adjusted free cash
flow from operations
|
$
25.9
|
|
$
88.8
|
|
$
63.9
|
|
$
134.1
|
|
SPX FLOW, INC. AND
SUBSIDIARIES
|
|
RESULTS OF
REPORTABLE SEGMENTS
|
|
(Unaudited; in
millions)
|
|
|
As of and for the
three months
ended December 31,
|
|
|
|
|
|
As of and for the
twelve
months ended December 31,
|
|
|
|
|
|
2021
|
|
2020
|
|
Δ
|
|
%/bps
|
|
2021
|
|
2020
|
|
Δ
|
|
%/bps
|
|
Nutrition and
Health
|
|
Backlog
|
$
283.1
|
|
$
291.6
|
|
$
(8.5)
|
|
(2.9)%
|
|
$
283.1
|
|
$
291.6
|
|
$
(8.5)
|
|
(2.9)%
|
|
Orders
|
$
195.0
|
|
$
200.0
|
|
$
(5.0)
|
|
(2.5)%
|
|
$
699.0
|
|
$
635.1
|
|
$
63.9
|
|
10.1%
|
|
Revenues
|
$
166.4
|
|
$
187.7
|
|
$
(21.3)
|
|
(11.3)%
|
|
$
676.4
|
|
$
630.8
|
|
$
45.6
|
|
7.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
income
|
$
30.4
|
|
$
25.5
|
|
$
4.9
|
|
19.2%
|
|
$
110.0
|
|
$
88.2
|
|
$
21.8
|
|
24.7%
|
|
Intangible
amortization expense
|
1.5
|
|
1.7
|
|
(0.2)
|
|
|
|
6.3
|
|
6.3
|
|
—
|
|
|
|
Adjusted segment
income
|
$
31.9
|
|
$
27.2
|
|
$
4.7
|
|
17.3%
|
|
$
116.3
|
|
$
94.5
|
|
$
21.8
|
|
23.1%
|
|
as a percent of
revenues
|
19.2%
|
|
14.5%
|
|
|
|
470bps
|
|
17.2%
|
|
15.0%
|
|
|
|
220bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Precision
Solutions
|
|
Backlog
|
$
326.6
|
|
$
254.2
|
|
$
72.4
|
|
28.5%
|
|
$
326.6
|
|
$
254.2
|
|
$
72.4
|
|
28.5%
|
|
Orders
|
$
224.3
|
|
$
193.7
|
|
$
30.6
|
|
15.8%
|
|
$
880.9
|
|
$
723.6
|
|
$
157.3
|
|
21.7%
|
|
Revenues
|
$
227.6
|
|
$
208.4
|
|
$
19.2
|
|
9.2%
|
|
$
852.6
|
|
$
719.8
|
|
$
132.8
|
|
18.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
income
|
$
21.8
|
|
$
22.6
|
|
$
(0.8)
|
|
(3.5)%
|
|
$
98.2
|
|
$
80.5
|
|
$
17.7
|
|
22.0%
|
|
Intangible
amortization expense
|
2.8
|
|
1.5
|
|
1.3
|
|
|
|
11.6
|
|
5.4
|
|
6.2
|
|
|
|
Purchase accounting
-
amortization of inventory fair
value adjustment
|
—
|
|
0.2
|
|
(0.2)
|
|
|
|
1.9
|
|
0.2
|
|
1.7
|
|
|
|
Adjusted segment
income
|
$
24.6
|
|
$
24.3
|
|
$
0.3
|
|
1.2%
|
|
$
111.7
|
|
$
86.1
|
|
$
25.6
|
|
29.7%
|
|
as a percent of
revenues
|
10.8%
|
|
11.7%
|
|
|
|
(90)bps
|
|
13.1%
|
|
12.0%
|
|
|
|
110bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Backlog
|
$
609.7
|
|
$
545.8
|
|
$
63.9
|
|
11.7%
|
|
$
609.7
|
|
$
545.8
|
|
$
63.9
|
|
11.7%
|
|
Consolidated
Orders
|
$
419.3
|
|
$
393.7
|
|
$
25.6
|
|
6.5%
|
|
$
1,579.9
|
|
$
1,358.7
|
|
$
221.2
|
|
16.3%
|
|
Consolidated
Revenues
|
$
394.0
|
|
$
396.1
|
|
$
(2.1)
|
|
(0.5)%
|
|
$
1,529.0
|
|
$
1,350.6
|
|
$
178.4
|
|
13.2%
|
|
Consolidated
Segment Income
|
$
52.2
|
|
$
48.1
|
|
$
4.1
|
|
8.5%
|
|
$
208.2
|
|
$
168.7
|
|
$
39.5
|
|
23.4%
|
|
Consolidated
Adjusted Segment
Income
|
$
56.5
|
|
$
51.5
|
|
$
5.0
|
|
9.7%
|
|
$
228.0
|
|
$
180.6
|
|
$
47.4
|
|
26.2%
|
|
as a percent of
revenues
|
14.3%
|
|
13.0%
|
|
|
|
130bps
|
|
14.9%
|
|
13.4%
|
|
|
|
150bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Adjusted Segment
Income
|
$
56.5
|
|
$
51.5
|
|
$
5.0
|
|
|
|
$
228.0
|
|
$
180.6
|
|
$
47.4
|
|
|
|
Less: Intangible
amortization
expense
|
(4.3)
|
|
(3.2)
|
|
(1.1)
|
|
|
|
(17.9)
|
|
(11.7)
|
|
(6.2)
|
|
|
|
Less: Purchase
accounting -
amortization of inventory fair
value adjustment
|
—
|
|
(0.2)
|
|
0.2
|
|
|
|
(1.9)
|
|
(0.2)
|
|
(1.7)
|
|
|
|
Consolidated Segment
Income
|
52.2
|
|
48.1
|
|
4.1
|
|
|
|
208.2
|
|
168.7
|
|
39.5
|
|
|
|
Corporate
expense
|
21.9
|
|
14.1
|
|
7.8
|
|
|
|
69.2
|
|
67.8
|
|
1.4
|
|
|
|
Pension and
postretirement
service costs
|
0.3
|
|
0.3
|
|
—
|
|
|
|
0.9
|
|
0.9
|
|
—
|
|
|
|
Asset impairment
charges
|
—
|
|
—
|
|
—
|
|
|
|
—
|
|
3.2
|
|
(3.2)
|
|
|
|
Restructuring and
other related
charges (credits)
|
(1.4)
|
|
3.0
|
|
(4.4)
|
|
|
|
12.7
|
|
11.7
|
|
1.0
|
|
|
|
Loss (gain) on sale
of business
and product line assets
|
—
|
|
4.2
|
|
(4.2)
|
|
|
|
(5.6)
|
|
4.2
|
|
(9.8)
|
|
|
|
Consolidated
Operating Income
|
$
31.4
|
|
$
26.5
|
|
$
4.9
|
|
18.5%
|
|
$
131.0
|
|
$
80.9
|
|
$
50.1
|
|
61.9%
|
|
as a percent of
revenues
|
8.0%
|
|
6.7%
|
|
|
|
130bps
|
|
8.6%
|
|
6.0%
|
|
|
|
260bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SPX FLOW, INC. AND
SUBSIDIARIES
|
|
ADJUSTED OPERATING
INCOME RECONCILIATION
|
|
(Unaudited; in
millions)
|
|
|
Three months ended
December
31,
|
|
Twelve months
ended
December 31,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
Operating
income
|
$
31.4
|
|
$
26.5
|
|
$
131.0
|
|
$
80.9
|
|
Charges and fees
associated with strategic actions
|
12.6
|
|
1.1
|
|
15.9
|
|
7.1
|
|
Charges associated
with certain M&A activities
|
0.2
|
|
0.3
|
|
5.8
|
|
0.3
|
|
Restructuring and
other related charges (credits)
|
(1.4)
|
|
3.0
|
|
12.7
|
|
11.7
|
|
Asset impairment
charges
|
—
|
|
—
|
|
—
|
|
3.2
|
|
Loss (gain) on sale
of business and product line assets
|
—
|
|
4.2
|
|
(5.6)
|
|
4.2
|
|
Reduction of SG&A
costs associated with transition services income
|
0.2
|
|
1.4
|
|
1.9
|
|
4.2
|
|
Purchase accounting -
amortization of inventory fair value adjustment
|
—
|
|
0.2
|
|
1.9
|
|
0.2
|
|
Intangible
amortization
|
4.3
|
|
3.2
|
|
17.9
|
|
11.7
|
|
Adjusted operating
income
|
$
47.3
|
|
$
39.9
|
|
$
181.5
|
|
$
123.5
|
|
SPX FLOW, INC. AND
SUBSIDIARIES
|
|
ORGANIC REVENUE
RECONCILIATION
|
|
(Unaudited)
|
|
|
Three months ended
December 31, 2021
|
|
Net
Revenue
Growth
(Decline)
|
|
Foreign
Currency
|
|
Business
Combinations
|
|
Organic
Revenue
Growth
(Decline)
|
|
Nutrition and
Health
|
(11.3)%
|
|
(1.6)%
|
|
—%
|
|
(9.7)%
|
|
Precision
Solutions
|
9.2%
|
|
(1.1)%
|
|
9.3%
|
|
1.0%
|
|
Consolidated
|
(0.5)%
|
|
(1.6)%
|
|
4.9%
|
|
(3.8)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve months
ended December 31, 2021
|
|
Net
Revenue
Growth
|
|
Foreign
Currency
|
|
Business
Combinations
|
|
Organic
Revenue
Growth
|
|
Nutrition and
Health
|
7.2%
|
|
2.3%
|
|
—%
|
|
4.9%
|
|
Precision
Solutions
|
18.4%
|
|
2.3%
|
|
7.1%
|
|
9.0%
|
|
Consolidated
|
13.2%
|
|
2.3%
|
|
3.8%
|
|
7.1%
|
|
SPX FLOW, INC. AND
SUBSIDIARIES
|
|
ADJUSTED EBITDA
FROM CONTINUING OPERATIONS RECONCILIATION
|
|
(Unaudited; in
millions)
|
|
|
Three months
ended
December 31,
|
|
Twelve months
ended
December 31,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
Net income
attributable to SPX FLOW, Inc. from continuing
operations
|
$
12.3
|
|
$
20.1
|
|
$
66.0
|
|
$
42.6
|
|
|
|
|
|
|
|
|
|
Income tax
provision
|
21.9
|
|
2.5
|
|
53.5
|
|
6.2
|
|
Interest expense,
net
|
2.0
|
|
5.0
|
|
16.0
|
|
29.9
|
|
Depreciation and
amortization
|
11.9
|
|
10.9
|
|
47.2
|
|
41.1
|
|
EBITDA from
continuing operations
|
48.1
|
|
38.5
|
|
182.7
|
|
119.8
|
|
Charges and fees
associated with strategic actions
|
12.6
|
|
1.1
|
|
15.9
|
|
7.1
|
|
Charges associated
with certain M&A activities
|
0.2
|
|
0.3
|
|
5.8
|
|
0.3
|
|
Restructuring and
other related charges (credits)
|
(1.4)
|
|
3.0
|
|
12.7
|
|
11.7
|
|
Asset impairment
charges
|
—
|
|
—
|
|
—
|
|
3.2
|
|
Fair value adjustment
related to an equity security
|
(2.8)
|
|
(1.2)
|
|
(11.9)
|
|
(8.6)
|
|
Mark to market
pension adjustments
|
(2.2)
|
|
1.9
|
|
(2.2)
|
|
1.9
|
|
Loss (gain) on sale
of business and product line assets
|
—
|
|
4.2
|
|
(5.6)
|
|
4.2
|
|
Certain gains on
asset sales and other, net
|
—
|
|
(1.6)
|
|
(2.2)
|
|
(2.9)
|
|
Loss on early
extinguishment of debt
|
—
|
|
—
|
|
12.4
|
|
11.0
|
|
Purchase accounting -
amortization of inventory fair value adjustment
|
—
|
|
0.2
|
|
1.9
|
|
0.2
|
|
Adjusted EBITDA from
continuing operations
|
$
54.5
|
|
$
46.4
|
|
$
209.5
|
|
$
147.9
|
|
SPX FLOW, INC. AND
SUBSIDIARIES
|
|
ADJUSTED DILUTED
EARNINGS PER SHARE FROM CONTINUING OPERATIONS
RECONCILIATION
|
|
(Unaudited; in
millions)
|
|
|
Three months
ended
December 31,
|
|
Twelve months
ended
December 31,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
Diluted earnings per
share from continuing operations
|
$
0.29
|
|
$
0.47
|
|
$
1.57
|
|
$
1.00
|
|
Charges and fees
associated with strategic actions, net of tax
|
0.23
|
|
0.02
|
|
0.29
|
|
0.12
|
|
Charges associated
with certain M&A activities, net of tax
|
—
|
|
—
|
|
0.10
|
|
—
|
|
Restructuring and
other related charges (credits), net of tax
|
(0.03)
|
|
0.05
|
|
0.24
|
|
0.21
|
|
Asset impairment
charges, net of tax
|
—
|
|
—
|
|
—
|
|
0.05
|
|
Fair value adjustment
related to an equity security, net of tax
|
(0.05)
|
|
(0.02)
|
|
(0.22)
|
|
(0.15)
|
|
Mark to market
pension adjustment, net of tax
|
(0.04)
|
|
0.04
|
|
(0.04)
|
|
0.04
|
|
Loss (gain) on sale
of business and product line assets, net of tax
|
—
|
|
0.09
|
|
(0.09)
|
|
0.09
|
|
Certain gains on
asset sales and other, net of tax
|
—
|
|
(0.04)
|
|
(0.04)
|
|
(0.06)
|
|
Loss on early
extinguishment of debt, net of tax
|
—
|
|
—
|
|
0.22
|
|
0.20
|
|
Purchase accounting -
amortization of inventory fair value adjustment, net of
tax
|
—
|
|
—
|
|
0.04
|
|
—
|
|
Intangible
amortization, net of tax
|
0.08
|
|
0.06
|
|
0.33
|
|
0.22
|
|
Discrete tax
items
|
0.29
|
|
(0.11)
|
|
0.40
|
|
(0.25)
|
|
Adjusted diluted
earnings per share from continuing operations
|
$
0.77
|
|
$
0.56
|
|
$
2.80
|
|
$
1.47
|
View original
content:https://www.prnewswire.com/news-releases/spx-flow-reports-fourth-quarter-and-full-year-2021-financial-results-301483240.html
SOURCE SPX FLOW, Inc.
