SPX FLOW Reports Third Quarter 2017 Results

CHARLOTTE, N.C., Nov. 1, 2017 /PRNewswire/ -- SPX FLOW, Inc. (NYSE: FLOW) today reported results for the quarter ended September 30, 2017. Management will discuss the results in more detail on its Q3 2017 earnings webcast this morning at 8:30 am ET.

"Over the past two years, we have transitioned SPX FLOW to an operating company with an improved cost position and a streamlined organization. Our realignment program is nearly complete and we expect to realize the full, annualized benefit of our $140 million savings target in 2018. We have also established a strong foundation for customer engagement, growth and margin expansion," said Marc Michael, President and Chief Executive Officer.

"Our Q3 2017 financial results underscore our progress. As compared to the prior year period, orders grew 12%, revenues grew 5% and segment income margins expanded 80 points. In addition, we generated strong cash flow and further strengthened our financial position."

Michael continued, "Since the end of 2016, our backlog has now increased 23%, net debt has been reduced by 19% and net leverage is down to 3.4x."

"Today we updated our 2017 full year guidance to reflect our results through the first nine months and our outlook for the fourth quarter. We increased our full year adjusted free cash flow guidance to a range of $150 to $160 million, up from our previous guidance range of $130 to $150 million, reflecting the strength of our year-to-date free cash flow performance. We modestly lowered our full year revenue target to a range of $1.920 to $1.940 billion, as compared to our previous target range of $1.925 to $1.975 billion, due primarily to delays on the timing of certain projects in backlog. On this level of revenue, our adjusted EBITDA is now expected to be between $193 and $200 million, compared to our previous guidance range of $195 to $215 million."

"For 2018, we reaffirmed our financial framework, targeting revenue of $2.000 to $2.050 billion, or 4% to 6% growth from the mid-point of our updated 2017 guidance, and EBITDA of $240 to $260 million. As we plan for 2018 and beyond, we are prioritizing investments in our highest value product lines and emphasizing continuous improvement actions across the enterprise to drive margin expansion. We see potential for significant value creation as we continue our journey to transform SPX FLOW into a high-performing operating enterprise," Michael concluded.

Third Quarter 2017 Overview:

    --  Orders increased 12.3% to $512.4 million, as compared to $456.3 million
        in the year-ago quarter.  Organic orders increased 10.4%, or $47.5
        million, with growth across all three segments, including a $28 million
        dairy processing award in the Food and Beverage segment.  The impact of
        the U.S. Dollar versus foreign currencies increased orders by 1.9%, or
        $8.6 million.
        --  Excluding large capital orders((1)), orders grew organically by
            $38.4 million to $484.4 million, up 8.8% from the year-ago quarter,
            driven by the Power and Energy segment.
    --  Revenues increased 5.2% to $491.1 million, as compared to $466.8 million
        in the year-ago quarter.  Organic revenues* grew 3.4%, or $16.0 million,
        driven by the Power and Energy and Industrial segments.  The impact of
        the U.S. dollar versus foreign currencies increased revenues by 1.8%, or
        $8.3 million.
    --  Operating income and margin were $37.5 million and 7.6% as compared to
        $21.4 million and 4.6% in the year-ago quarter.
        --  The company recorded ($2.3) million of special charges in the third
            quarter related to its previously announced realignment program.
    --  Excluding special charges, adjusted operating income* and margin were
        $39.8 million and 8.1% respectively.
    --  Diluted net earnings per share were $0.30 including special charges of
        ($0.04) per share related to the company's global realignment program
        and ($0.08) per share of discrete and other tax items.
    --  Excluding special charges and the tax items described above, adjusted
        earnings per share* were $0.42.
    --  Net cash from operating activities was $45.3 million in the quarter
        including ($9.3) million of cash outflows in support of the company's
        realignment program.
    --  Free cash flow* was $43.0 million, including the net cash from operating
        activities described above less ($2.3) million in capital expenditures.
    --  Adjusted free cash flow* for the quarter was $52.3 million.
    --  Net income for the quarter was $12.8 million and adjusted net income*
        was $17.6 million.
    --  Adjusted EBITDA* was $55.4 million.

Third Quarter 2017 Results by Segment:

Food and Beverage

Revenues for Q3 2017 were $176.4 million, compared to $173.0 million in Q3 2016, an increase of $3.4 million, or 2.0%. Organic revenues* grew modestly during the period, and currency fluctuations increased revenues by 1.9%, or $3.2 million. On an organic basis, growth in component sales was largely offset by lower revenue from systems projects.

Segment income was $19.9 million, or 11.3% of revenues, compared to $19.6 million, or 11.3% of revenues, in Q3 2016. Segment income increased primarily due to the revenue growth, improved productivity in the Bydgoszcz, Poland facility and savings from restructuring actions and cost reduction initiatives. These items were largely offset by increased variable incentive compensation.

Power and Energy

Revenues for Q3 2017 were $141.0 million, compared to $127.3 million in Q3 2016, an increase of $13.7 million, or 10.8%. Organic revenues* grew 9.4%, or $12.0 million, and currency fluctuations increased revenues by 1.4%, or $1.7 million. On an organic basis, aftermarket sales grew double-digits year-over-year. Original equipment revenues also grew organically, driven by an increase in revenue related to valves and pumps used in midstream oil applications, partially offset by a decrease in shipments of valve closure and filtration products.

Segment income was $12.8 million, or 9.1% of revenues, compared to $5.5 million, or 4.3% of revenues, in Q3 2016. The increase in segment income and margin was driven by the organic revenue growth described above, particularly in higher-margin aftermarket sales, and savings from restructuring actions and cost reduction initiatives.

Industrial

Revenues for Q3 2017 were $173.7 million, compared to $166.5 million in Q3 2016, an increase of $7.2 million, or 4.3%. Organic revenues* grew 2.3%, or $3.8 million, and currency fluctuations increased revenues by 2.0%, or $3.4 million. The organic growth was driven by higher sales of heat exchangers and hydraulic tools.

Segment income was $22.0 million, or 12.7% of revenues, compared to $23.0 million, or 13.8% of revenues, in Q3 2016. The decrease in segment income and margin was due primarily to increased variable incentive compensation, which was partially offset by savings from restructuring actions and cost reduction initiatives.

2017 Updated Full Year Financial Guidance


                               2017 Updated Full
                                 Year Financial
                                    Guidance
                              ------------------

     ($ millions, except per
            share data)       Pre-Adjusted Basis    Adjusted Basis (2)
     -----------------------  ------------------    -----------------

                      Revenue      $1,920 to $1,940      $1,920 to $1,940
                      -------      ----------------      ----------------

               Segment Income          $193 to $200          $193 to $200
               --------------          ------------          ------------

              Special Charges        ~$22                              $0
              ---------------        ----                             ---

                   Net Income            $29 to $34            $48 to $53
                   ----------            ----------            ----------

           Earnings Per Share        $0.70 to $0.82        $1.14 to $1.26
           ------------------        --------------        --------------

                      EBITDA*          $171 to $178          $193 to $200
                       ------          ------------          ------------

              Free Cash Flow*          $115 to $125          $150 to $160
               --------------          ------------          ------------

OTHER ITEMS

Global Realignment Program: As previously disclosed, the company is optimizing its global footprint, streamlining business processes and reducing selling, general and administrative expense through a global realignment program. The realignment program is intended to reduce costs across operating sites and corporate and global functions, in part by making structural changes and process enhancements to help the company operate more efficiently. The realignment program was initiated in 2015 and the vast majority of the planned actions are expected to be complete by the end of 2017. The total cost of the program is now expected to be approximately $145.0 million with annualized savings of approximately $140.0 million, fully realized by the end of 2018.

Debt Repayment: On October 31, 2017 the company made a voluntary prepayment of $80.0 million on its term loan, reducing the outstanding principal balance of the term loan to $295.0. This payment was partially funded with 20 million dollars of borrowings on our AR securitization facility.

Form 10-Q: The company expects to file its quarterly report on Form 10-Q for the quarter ended September 30, 2017 with the Securities and Exchange Commission on November 1, 2017. This press 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 is a global supplier of highly engineered solutions, process equipment and turn-key systems, along with the related aftermarket parts and services, into the food and beverage, power and energy and industrial end markets. SPX FLOW has approximately $2 billion in annual revenues with operations in over 30 countries and sales in over 150 countries around the world. To learn more about SPX FLOW, please visit www.spxflow.com.

*Non-GAAP number. See attached schedules for reconciliation from most comparable GAAP number. 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.

(1) Large capital orders defined as individual orders greater than $15 million in value.

(2) On an adjusted basis, 2017 guidance assumes an effective tax rate of 30% and 42 million shares outstanding. It excludes ~$22 million of special charges and ~$35 million of cash outflows related to the company's realignment program. See attached schedules for reconciliations of pre-adjusted guidance to adjusted guidance figures.

Management acknowledges that there are many items that impact a company's reported results and the adjustments reflected in these Non-GAAP metrics are not intended to present all items that may have impacted these results. In addition, these Non-GAAP metrics 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 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
E-mail: investor@spxflow.com


                                                                            SPX FLOW, INC. AND SUBSIDIARIES

                                                                    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                                                                   (Unaudited; in millions, except per share amounts)


                                                                                                      Three months ended  Nine months ended
                                                                                                      ------------------  -----------------

                                                                                                      September 30, 2017   October 1, 2016          September 30, 2017          October 1, 2016
                                                                                                      ------------------   ---------------          ------------------          ---------------

    Revenues                                                                                                       $491.1                    $466.8                    $1,422.3                  $1,500.6


    Costs and expenses:

      Cost of products sold                                                                                         332.0                     320.7                       971.1                   1,028.5

      Selling, general and administrative                                                                           114.9                     107.8                       343.2                     359.1

      Intangible amortization                                                                                         4.4                       4.4                        13.3                      15.8

      Impairment of goodwill and intangible assets                                                                      -                        -                          -                    426.4

      Special charges                                                                                                 2.3                      12.5                        17.6                      64.3
                                                                                                                      ---                      ----                        ----                      ----

      Operating income (loss)                                                                                        37.5                      21.4                        77.1                   (393.5)


      Other income (expense), net                                                                                     0.6                       0.6                       (1.8)                    (3.1)

      Interest expense, net                                                                                        (15.5)                   (14.2)                     (47.2)                   (42.9)

      Loss on early extinguishment of debt                                                                              -                   (38.9)                          -                   (38.9)
                                                                                                                      ---                    -----                         ---                    -----

      Income (loss) before income taxes                                                                              22.6                    (31.1)                       28.1                   (478.4)

      Income tax benefit (provision)                                                                                (9.6)                     26.9                      (12.2)                     89.8
                                                                                                                     ----                      ----                       -----                      ----

      Net income (loss)                                                                                              13.0                     (4.2)                       15.9                   (388.6)

    Less: Net income attributable to noncontrolling interests                                                         0.2                       0.5                         0.2                         -

      Net income (loss) attributable to SPX FLOW, Inc.                                                              $12.8                    $(4.7)                      $15.7                  $(388.6)
                                                                                                                    =====                     =====                       =====                   =======


    Basic income (loss) per share of common stock                                                                   $0.31                   $(0.11)                      $0.38                   $(9.41)

    Diluted income (loss) per share of common stock                                                                 $0.30                   $(0.11)                      $0.37                   $(9.41)


    Weighted average number of common shares outstanding - basic                                                   41.884                    41.383                      41.765                    41.307

    Weighted average number of common shares outstanding - diluted                                                 42.332                    41.383                      42.126                    41.307


                                            SPX FLOW, INC. AND SUBSIDIARIES

                                         CONDENSED CONSOLIDATED BALANCE SHEETS

                                               (Unaudited; in millions)

                                                              September 30,         December 31,

                                                                               2017                  2016
                                                                               ----                  ----

    ASSETS

    Current assets:

      Cash and
       equivalents                                                           $281.1                $215.1

      Accounts
       receivable,
       net                                                                    450.7                 446.9

      Inventories,
       net                                                                    317.9                 272.4

      Other current
       assets                                                                  52.7                  72.8
                                                                               ----                  ----

       Total current
        assets                                                              1,102.4               1,007.2

    Property, plant and equipment:

      Land                                                                     34.9                  36.1

      Buildings and
       leasehold
       improvements                                                           245.7                 242.4

      Machinery and
       equipment                                                              455.1                 420.8
                                                                              -----                 -----

                                                                              735.7                 699.3

      Accumulated
       depreciation                                                         (368.5)              (322.0)
                                                                             ------                ------

      Property,
       plant and
       equipment,
       net                                                                    367.2                 377.3

    Goodwill                                                                  767.9                 722.5

    Intangibles,
     net                                                                      353.5                 344.3

    Other assets                                                              152.6                 151.9

    TOTAL ASSETS                                                           $2,743.6              $2,603.2
                                                                           ========              ========


    LIABILITIES, MEZZANINE EQUITY AND EQUITY

    Current liabilities:

      Accounts
       payable                                                               $218.8                $203.8

      Accrued
       expenses                                                               382.7                 329.9

      Income taxes
       payable                                                                 15.0                  10.8

      Short-term
       debt                                                                    24.8                  27.7

      Current
       maturities
       of long-
       term debt                                                               20.4                  20.2
                                                                               ----                  ----

        Total current
         liabilities                                                          661.7                 592.4

    Long-term
     debt                                                                     959.2               1,060.9

    Deferred and
     other income
     taxes                                                                     70.5                  62.2

    Other long-
     term
     liabilities                                                              126.6                 125.5
                                                                              -----                 -----

        Total long-
         term
         liabilities                                                        1,156.3               1,248.6

    Mezzanine
     equity                                                                    21.1                  20.1

      Equity:

      SPX FLOW, Inc. shareholders' equity:

      Common stock                                                              0.4                   0.4

      Paid-in
       capital                                                              1,657.3               1,640.4

      Accumulated
       deficit                                                              (358.2)              (373.9)

      Accumulated
       other
       comprehensive
       loss                                                                 (387.3)              (521.4)

      Common stock
       in treasury                                                            (8.4)                (4.9)
                                                                               ----                  ----

     Total SPX
      FLOW, Inc.
      shareholders'
      equity                                                                  903.8                 740.6

     Noncontrolling
     interests                                                                  0.7                   1.5
                                                                                ---                   ---

     Total equity                                                             904.5                 742.1

    TOTAL
     LIABILITIES,
     MEZZANINE
     EQUITY AND
     EQUITY                                                                $2,743.6              $2,603.2
                                                                           ========              ========


                                                                                               SPX FLOW, INC. AND SUBSIDIARIES

                                                                                               RESULTS OF REPORTABLE SEGMENTS

                                                                                                  (Unaudited; in millions)


                                                 Three months ended                                                                   Nine months ended
                                                 ------------------                                                                   -----------------

                                                 September 30, 2017        October 1, 2016                                                  %/bps             September 30, 2017          October 1, 2016                             %/bps
                                                 ------------------        ---------------                          ---                     -----             ------------------          ---------------            ---              -----

    Food and Beverage


    Revenues                                                        $176.4                 $173.0                                $3.4                    2.0%                      $518.8                     $545.8         $(27.0)          (4.9)%

    Gross profit                                                      56.5                   51.8                                 4.7                                               161.8                      162.6           (0.8)

    Selling, general and administrative expense                       34.7                   30.3                                 4.4                                               103.1                      100.1             3.0

    Intangible amortization expense                                    1.9                    1.9                                   -                                                6.0                        5.6             0.4
                                                                       ---                    ---                                                                                    ---                        ---

    Income                                                           $19.9                  $19.6                                $0.3                   1.5 %                       $52.7                      $56.9          $(4.2)          (7.4)%

      as a percent of revenues                                       11.3%                 11.3%                                             0bps                                10.2%                     10.4%                     -20bps


    Power and Energy


    Revenues                                                        $141.0                 $127.3                               $13.7                   10.8%                      $391.9                     $432.8         $(40.9)          (9.5)%

    Gross profit                                                      43.7                   36.2                                 7.5                                               113.8                      125.0          (11.2)

    Selling, general and administrative expense                       29.8                   29.6                                 0.2                                                89.2                      101.2          (12.0)

    Intangible amortization expense                                    1.1                    1.1                                   -                                                3.3                        6.1           (2.8)
                                                                       ---                    ---                                                                                    ---                        ---

    Income                                                           $12.8                   $5.5                                $7.3                 132.7 %                       $21.3                      $17.7            $3.6           20.3 %

      as a percent of revenues                                        9.1%                  4.3%                                            480bps                                5.4%                      4.1%                     130bps


    Industrial


    Revenues                                                        $173.7                 $166.5                                $7.2                    4.3%                      $511.6                     $522.0         $(10.4)          (2.0)%

    Gross profit                                                      58.9                   58.1                                 0.8                                               175.6                      184.5           (8.9)

    Selling, general and administrative expense                       35.5                   33.7                                 1.8                                               107.7                      111.1           (3.4)

    Intangible amortization expense                                    1.4                    1.4                                   -                                                4.0                        4.1           (0.1)

    Income                                                           $22.0                  $23.0                              $(1.0)                 (4.3)%                       $63.9                      $69.3          $(5.4)          (7.8)%

      as a percent of revenues                                       12.7%                 13.8%                                           -110bps                               12.5%                     13.3%                     -80bps


    Consolidated Revenues                                           $491.1                 $466.8                               $24.3                   5.2 %                    $1,422.3                   $1,500.6         $(78.3)          (5.2)%

    Consolidated Segment Income                                       54.7                   48.1                                $6.6                  13.7 %                       137.9                      143.9          $(6.0)          (4.2)%

      as a percent of revenues                                       11.1%                 10.3%                                            80bps                                 9.7%                      9.6%                      10bps


    Total income for reportable segments                             $54.7                  $48.1                                $6.6                                              $137.9                     $143.9          $(6.0)

    Corporate expense                                                 14.5                   13.8                                 0.7                                                42.1                       45.3           (3.2)

    Pension and postretirement service costs                           0.4                    0.4                                   -                                                1.1                        1.4           (0.3)

    Impairment of goodwill and intangible assets                         -                     -                                  -                                                  -                     426.4         (426.4)

    Special charges                                                    2.3                   12.5                              (10.2)                                               17.6                       64.3          (46.7)
                                                                       ---                   ----                                                                                   ----                       ----

    Consolidated Operating Income (Loss)                             $37.5                  $21.4                               $16.1                  75.2 %                       $77.1                   $(393.5)         $470.6         (119.6)%
                                                                     =====                  =====                                                                                  =====                    =======

      as a percent of revenues                                        7.6%                  4.6%                                            300bps                                5.4%                    -26.2%                   *


    *Not meaningful for comparison purposes.


                                                                                                        SPX FLOW, INC. AND SUBSIDIARIES

                                                                                                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

                                                                                                            (Unaudited; in millions)


                                                                                                                                    Three months ended        Nine months ended
                                                                                                                                    ------------------        -----------------

                                                                                                                                    September 30, 2017         October 1, 2016           September 30, 2017           October 1, 2016
                                                                                                                                    ------------------         ---------------           ------------------           ---------------

    Cash flows from (used in) operating activities:

    Net income (loss)                                                                                                                                   $13.0                     $(4.2)                       $15.9                   $(388.6)

    Adjustments to reconcile net income (loss) to net cash from (used in) operating activities:

       Special charges                                                                                                                                    2.3                       12.5                         17.6                       64.3

       Impairment of goodwill and intangible assets                                                                                                         -                         -                           -                     426.4

       Deferred income taxes                                                                                                                              3.0                     (35.9)                       (0.9)                   (100.2)

       Depreciation and amortization                                                                                                                     15.2                       15.6                         45.9                       49.7

       Stock-based compensation                                                                                                                           4.2                        3.0                         12.1                       14.2

       Pension and other employee benefits                                                                                                                2.2                        1.7                          5.5                        7.3

       Gain on asset sales and other, net                                                                                                               (1.4)                     (0.1)                       (2.9)                     (1.4)

       Loss on early extinguishment of debt                                                                                                                 -                      38.9                            -                      38.9

    Changes in operating assets and liabilities:

       Accounts receivable and other assets                                                                                                               5.5                       43.9                         32.7                       30.7

       Inventories                                                                                                                                      (5.0)                     (1.3)                      (23.4)                     (5.0)

       Accounts payable, accrued expenses and other                                                                                                      15.6                     (21.3)                        42.5                     (77.2)

       Domestic pension payments                                                                                                                            -                    (53.9)                           -                    (65.9)

       Cash spending on restructuring actions                                                                                                           (9.3)                    (20.3)                      (27.8)                    (43.2)
                                                                                                                                                                                                              -----

    Net cash from (used in) operating activities                                                                                                         45.3                     (21.4)                       117.2                     (50.0)

    Cash flows from (used in) investing activities:

       Proceeds from asset sales and other, net                                                                                                           6.3                        0.3                         37.4                        2.4

       Increase in restricted cash                                                                                                                          -                         -                           -                     (0.2)

       Capital expenditures                                                                                                                             (2.3)                     (7.2)                      (13.7)                    (37.3)
                                                                                                                                                         ----                       ----                        -----                      -----

    Net cash from (used in) investing activities                                                                                                          4.0                      (6.9)                        23.7                     (35.1)

    Cash flows from (used in) financing activities:

       Proceeds from issuance of senior notes                                                                                                               -                     600.0                            -                     600.0

       Repurchases of senior notes (includes premiums paid of $36.4)                                                                                        -                   (636.4)                           -                   (636.4)

       Borrowings under senior credit facilities                                                                                                            -                     304.0                        125.5                      328.0

       Repayments of senior credit facilities                                                                                                           (6.0)                   (238.0)                     (208.5)                   (260.0)

       Borrowings under trade receivables financing arrangement                                                                                          12.0                       46.9                         89.1                       79.9

       Repayments of trade receivables financing arrangement                                                                                           (12.0)                    (31.7)                     (110.3)                    (53.7)

       Borrowings under other financing arrangements                                                                                                      3.6                        0.1                          9.4                        1.2

       Repayments of other financing arrangements                                                                                                       (3.0)                     (4.0)                      (12.6)                    (12.8)

       Minimum withholdings paid on behalf of employees for net share settlements, net                                                                  (0.2)                     (0.1)                       (3.5)                     (3.2)

       Dividends paid to noncontrolling interests in subsidiary                                                                                             -                         -                       (1.5)                     (1.2)

       Financing fees paid                                                                                                                                  -                    (12.6)                           -                    (12.6)
                                                                                                                                                          ---                     -----                          ---                     -----

    Net cash from (used in) financing activities                                                                                                        (5.6)                      28.2                      (112.4)                      29.2

    Change in cash and equivalents due to changes in foreign currency exchange rates                                                                     11.3                      (1.0)                        37.5                     (12.1)

       Net change in cash and equivalents                                                                                                                55.0                      (1.1)                        66.0                     (68.0)

    Consolidated cash and equivalents, beginning of period                                                                                              226.1                      229.0                        215.1                      295.9

    Consolidated cash and equivalents, end of period                                                                                                   $281.1                     $227.9                       $281.1                     $227.9
                                                                                                                                                       ======                     ======                       ======                     ======


                                         SPX FLOW, INC. AND SUBSIDIARIES

                                          ORGANIC REVENUE RECONCILIATION

                                                   (Unaudited)


                        Three months ended September 30, 2017
                        -------------------------------------

                          Net Revenue Growth                         Foreign Currency       Organic Revenue Growth
                          ------------------                         ----------------       ----------------------

    Food and Beverage                     2.0 %                                      1.9 %                    0.1 %

    Power and Energy                     10.8 %                                      1.4 %                    9.4 %

    Industrial                            4.3 %                                      2.0 %                    2.3 %

    Consolidated                          5.2 %                                      1.8 %                    3.4 %



                      Nine months ended September 30, 2017
                      ------------------------------------

                         Net Revenue Decline                         Foreign Currency      Organic Revenue Decline
                         -------------------                         ----------------      -----------------------

    Food and Beverage                    (4.9)%                                     (0.1)%                   (4.8)%

    Power and Energy                     (9.5)%                                     (1.7)%                   (7.8)%

    Industrial                           (2.0)%                                     (0.1)%                   (1.9)%

    Consolidated                         (5.2)%                                     (0.5)%                   (4.7)%


                                                                                                                                             SPX FLOW, INC. AND SUBSIDIARIES

                                                                                                                                          CASH, DEBT AND NET DEBT RECONCILIATION

                                                                                                                                                 (Unaudited; in millions)


                                                                                                                                                                                   Nine months ended

                                                                                                                                                                                  September 30, 2017
                                                                                                                                                                                  ------------------

    Beginning cash and equivalents                                                                                                                                                                      $215.1


    Net cash from operating activities                                                                                                                                                                   117.2

    Proceeds from asset sales and other, net                                                                                                                                                              37.4

    Capital expenditures                                                                                                                                                                                (13.7)

    Borrowings under senior credit facilities                                                                                                                                                            125.5

    Repayments of senior credit facilities                                                                                                                                                             (208.5)

    Borrowings under trade receivables financing arrangement                                                                                                                                              89.1

    Repayments of trade receivables financing arrangement                                                                                                                                              (110.3)

    Borrowings under other financing arrangements                                                                                                                                                          9.4

    Repayments of other financing arrangements                                                                                                                                                          (12.6)

    Minimum withholdings paid on behalf of employees for net share settlements, net                                                                                                                      (3.5)

    Dividends paid to noncontrolling interests in subsidiary                                                                                                                                             (1.5)

    Change in cash and equivalents due to changes in foreign currency exchange rates                                                                                                                      37.5


    Ending cash and equivalents                                                                                                                                                                         $281.1
                                                                                                                                                                                                        ======



                                                                                                                                                                                 Debt and Net Debt at
                                                                                                                                                                                 --------------------

                                                                                                                                                                                  September 30, 2017           December 31, 2016
                                                                                                                                                                                  ------------------           -----------------

    Domestic revolving loan facility                                                                                                                                                 $                       -                     $68.0

    Term loan                                                                                                                                                                                            375.0                      390.0

    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                                                                                                                                                                  -                      21.2

    Other indebtedness                                                                                                                                                                                    40.7                       42.4

    Less: deferred financing fees                                                                                                                                                                       (11.3)                    (12.8)

    Total debt                                                                                                                                                                                        $1,004.4                   $1,108.8
                                                                                                                                                                                                      ========                   ========


    Total debt                                                                                                                                                                                        $1,004.4                   $1,108.8

    Less: debt balances under purchase card program                                                                                                                                                     (21.3)                    (17.9)

    Less: cash and equivalents in excess of $50.0                                                                                                                                                      (231.1)                   (165.1)

    Net debt(1)                                                                                                                                                                                         $752.0                     $925.8
                                                                                                                                                                                                        ======                     ======


    (1)Represents net debt calculated in a manner consistent with the definition of certain related defined terms within our senior credit facilities.


                                                                                                            SPX FLOW, INC. AND SUBSIDIARIES

                                                                                               FREE CASH FLOW AND ADJUSTED FREE CASH FLOW RECONCILIATION

                                                                                                               (Unaudited; in millions)


                                                                      Three months ended                                    Nine months ended                                        2017
                                                                      ------------------                                    -----------------

                                                                      September 30, 2017                                     October 1, 2016                    September 30, 2017          October 1, 2016           Mid-Point Guidance
                                                                      ------------------                                     ---------------                    ------------------          ---------------           ------------------

    Net cash from (used in) operating activities                                         $45.3                                                          $(21.4)                     $117.2                   $(50.0)                       $140

    Capital expenditures                                                                 (2.3)                                                           (7.2)                     (13.7)                   (37.3)                       (20)

    Free cash flow from (used in) operations                                             $43.0                                                          $(28.6)                     $103.5                   $(87.3)                       $120
                                                                                         =====                                                           ======                      ======                    ======                        ====


    Free cash flow from (used in) operations                                             $43.0                                                          $(28.6)                     $103.5                   $(87.3)                       $120

    Cash spending on restructuring actions                                                 9.3                                                             20.3                        27.8                      43.2                          35

    Capital expenditures related to manufacturing expansion in Poland                        -                                                             1.7                           -                     17.9                           -

    Domestic pension payments, net of tax benefit                                            -                                                            33.0                           -                     41.0                           -

    Adjusted free cash flow from operations                                              $52.3                                                            $26.4                      $131.3                     $14.8                        $155
                                                                                         =====                                                            =====                      ======                     =====                        ====


                                                      SPX FLOW, INC. AND SUBSIDIARIES

                                                 ADJUSTED OPERATING INCOME RECONCILIATION

                                                         (Unaudited; in millions)


                              Three months ended                                                          2017
                              ------------------

                              September 30, 2017                                          October 1, 2016       Mid-Point Guidance
                              ------------------                                          ---------------       ------------------

    Operating income                                     $37.5                                            $21.4                    $116

    Special charges                                        2.3                                             12.5                      22

    Adjusted operating income                            $39.8                                            $33.9                    $138
                                                         =====                                            =====                    ====


                                                               SPX FLOW, INC. AND SUBSIDIARIES

                                                             ADJUSTED NET INCOME RECONCILIATION

                                                                  (Unaudited; in millions)


                                                               Three months ended                                   2017
                                                               ------------------

                                                               September 30, 2017                  October 1, 2016        Mid-Point Guidance
                                                               ------------------                  ---------------        ------------------

    Net income (loss) attributable to SPX FLOW, Inc.                                         $12.8                 $(4.7)                    $32

    Loss on early extinguishment of debt, net of tax benefit                                     -                  24.3                       -

    Special charges, net of tax benefit                                                        1.8                    8.5                      17

    Net discrete tax items and other                                                           3.0                 (14.0)                      3

    Adjusted net income attributable to SPX FLOW, Inc.                                       $17.6                  $14.1                     $51
                                                                                             =====                  =====                     ===


                                                          SPX FLOW, INC. AND SUBSIDIARIES

                                                     EBITDA AND ADJUSTED EBITDA RECONCILIATION

                                                              (Unaudited; in millions)


                                                      Three months ended                                        2017
                                                      ------------------

                                                      September 30, 2017                       October 1, 2016        Mid-Point Guidance
                                                      ------------------                       ---------------        ------------------

    Net income (loss) attributable to SPX FLOW, Inc.                                $12.8                      $(4.7)                     $32


    Income tax provision (benefit)                                                    9.6                      (26.9)                      19

    Interest expense, net                                                            15.5                        14.2                       63

    Depreciation and amortization                                                    15.2                        15.6                       61

    EBITDA                                                                           53.1                       (1.8)                     175

    Special charges                                                                   2.3                        12.5                       22

    Loss on early extinguishment of debt                                                -                       38.9                        -
                                                                                      ---                       ----                      ---

    Adjusted EBITDA                                                                  55.4                        49.6                      197

    Non-cash compensation expense                                                     5.7                         4.7                       22

    Non-service pension costs (benefits)                                              0.3                       (0.4)                       -

    Interest income                                                                   1.2                         0.9                        5

    Gain on asset sales and other, net                                              (1.4)                      (0.1)                     (3)

    Other                                                                             0.2                         0.2                        1

    Bank consolidated EBITDA                                                        $61.4                       $54.9                     $222
                                                                                    =====                       =====                     ====


                                                                      SPX FLOW, INC. AND SUBSIDIARIES

                                                             ADJUSTED DILUTED EARNINGS PER SHARE RECONCILIATION

                                                                                (Unaudited)


                                                                    Three months ended                                            2017
                                                                    ------------------

                                                                    September 30, 2017                          October 1, 2016         Mid-Point Guidance
                                                                    ------------------                          ---------------         ------------------

    Diluted earnings (loss) per share                                                               $0.30                       $(0.11)                    $0.76

    Loss on early extinguishment of debt, net of tax benefit                                            -                         0.59                         -

    Special charges, net of tax benefit                                                              0.04                          0.21                      0.36

    Net discrete tax items and other                                                                 0.08                        (0.35)                     0.08

    Adjusted diluted earnings per share                                                             $0.42                         $0.34                     $1.20
                                                                                                    =====                         =====                     =====

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SOURCE SPX FLOW, Inc.