SPX FLOW Delivers Growth And Profit Improvement In Second Quarter 2018
CHARLOTTE, N.C., Aug. 1, 2018 /PRNewswire/ -- SPX FLOW, Inc. (NYSE: FLOW) today reported results for the quarter ended June 30, 2018 and reaffirmed its 2018 full year guidance.
"During the second quarter we made solid progress across many fronts on our journey to transform SPX FLOW into a high performing operating enterprise. We continued to grow our high value product lines and aftermarket business, while emphasizing crisp execution across our operations. Our global team is engaged and committed to building a customer-centric culture, rooted in continuous improvement, and to achieving excellence across all phases of our business. As we move forward, we see great potential to drive higher customer satisfaction, improved operating performance and greater shareholder value," said Marc Michael, President and Chief Executive Officer.
Michael continued, "In Q2 we delivered solid growth and improvement versus the prior year period, underscored by 14% order growth, 7% revenue growth and 330 points of operating margin expansion. Net income was $23 million and EPS was $0.54, up 125% versus the prior year. We generated $62 million of EBITDA, up 41% year-over-year, driven by the revenue growth, savings from cost reduction initiatives and a higher level of productivity in our factories. As compared to our guidance, we delivered stronger than anticipated results through solid backlog execution which enabled us to offset currency headwinds and a net ($0.03) per share impact from taxes. Additionally, we strengthened our financial position for the sixth consecutive quarter, by reducing gross debt 3% and net leverage to 2.6x."
"Q2 orders were $575 million marking our highest level of quarterly orders since Q1 2015. Organic order growth of 12% was broad-based with growth across all three reporting segments, led by sharp, double-digit growth in medium-size capital orders for Food and Beverage systems and North American oil pipeline valves. Notably, for the second consecutive quarter we delivered high-single digit organic order growth across our highest value food and beverage and industrial product lines, reflecting continued progress executing our growth strategy."
"On a sequential basis, orders increased 13% in total and 16% organically. Our backlog remained strong at $1.05 billion, up 13% year-over-year and flat sequentially as 5% organic backlog growth offset a 5% currency headwind during the period."
"For the full year, we reaffirmed guidance for EPS in the range of $2.21 to $2.56 per share, EBITDA between $240 and $260 million and Free Cash Flow between $105 and $125 million. Our target revenue range remains between $2.055 and $2.105 billion and now reflects mid-single digit organic growth and a 1% currency benefit, as compared to low-single digit organic growth and a 4% currency benefit in our previous guidance," concluded Michael.
Second Quarter 2018 Consolidated Results
$ millions; except per share data Q2 2018 Q2 2017 Variance Organic Variance
------- ------- -------- ----------------
Backlog $1050.1 $930.6 12.8% 12.4%
Orders 575.3 503.6 14.2% 12.5%
Revenues
(1) 531.2 498.0 6.7% 2.5%
Operating
Income 48.5 29.0 67.2%
Margin % 9.1% 5.8% 330 bps
Net income 22.9 10.3
EPS $0.54 $0.24
EBITDA* $61.9 $43.8 41.3%
Operating
cash flow 3.0 48.8
Free cash
flow
(usage)* (4.2) 42.2
Note: The commentary below is on an organic basis and as compared to the prior year period.
-- Backlog increased 12.4%, or $115.8 million with growth across all three
segments, including double-digit growth in the Food and Beverage and
Industrial backlogs.
-- Orders grew 12.5% driven by sharp, double-digit growth in medium-size
capital orders for Food and Beverage systems and North American OE
pipeline valves. Orders for Food and Beverage and Industrial components
grew double-digits in aggregate and aftermarket orders across the
enterprise grew mid-single-digits.
-- Revenues* grew 2.5%, primarily driven by increased shipments of
Industrial products, and Food and Beverage components. Aftermarket
revenues grew mid-single digits with growth across each segment.
-- Operating income was $48.5 million, or 9.1% of revenues, an increase of
$19.5 million, or 330 points. The increase in income and margin was
driven by the organic growth referenced above, savings from cost
reduction initiatives and a higher level of productivity. Additionally,
the company recorded $1.1 million of special charges, as compared to
$6.7 million in the prior year period.
-- Diluted earnings per share were $0.54, up 125% and included:
-- A net tax charge of ($0.03) per share as compared to the company's
guidance, due primarily to a reduction of previously recorded
foreign tax credits available to the company from distributions of
income taxed under the transition tax provisions of the U.S. Tax
Cuts and Jobs Act.
-- EBITDA* increased to $61.9 million or 41.3%, primarily driven by the
increase in operating income noted above.
-- Free cash flow* was a ($4.2) million investment and included $7.2
million of capital expenditures and $6.3 million of restructuring
payments.
Second Quarter 2018 Results by Segment
Food and Beverage
$ millions Q2 2018 Q2 2017 Variance Organic Variance
------- ------- -------- ----------------
Backlog $382.9 $320.3 19.5% 19.1%
Orders 199.3 165.3 20.6% 18.5%
Revenues
(1) 187.6 176.5 6.3% 0.6%
Income 20.0 17.3 15.6%
As
a
percent
of
revenues 10.7% 9.8% 90 bps
Note: The commentary below is on an organic basis and as compared to the prior year period.
-- Backlog increased 19.1% driven primarily by an increase in dairy
processing system orders including two large orders awarded in Q4 2017
which totaled $71.5 million.
-- Orders grew 18.5% driven by sharp double-digit growth in system orders,
primarily for fresh liquid dairy processing. Component and aftermarket
orders grew mid-single digits.
-- Revenues* grew modestly as growth in component and aftermarket sales was
partially offset by a lower level of volume of system revenue.
-- The increase in segment income and margin was driven by the organic
revenue growth described above, savings from cost reduction initiatives,
improved project execution and increased productivity in our Bydgoszcz,
Poland facility.
Power and Energy
$ millions Q2 2018 Q2 2017 Variance Organic Variance
------- ------- -------- ----------------
Backlog $430.8 $403.5 6.8% 5.8%
Orders 170.0 145.4 16.9% 14.8%
Revenues (1) 151.8 145.0 4.7% (1.6%)
Income 14.5 10.0 45.0%
As a percent of revenues 9.6% 6.9% 270 bps
Note: The commentary below is on an organic basis and as compared to the prior year period.
-- Backlog increased 5.8% driven primarily by a higher level of OE pump and
valve orders related to North American midstream oil applications and to
a lesser extent, nuclear power.
-- Orders increased by 14.8% primarily driven by an increased level of
demand for oil pipeline valves in the North American midstream market
along with an uptick in aftermarket activity for nuclear and upstream
pumps. This growth was partially offset by a lower level of OE orders
for nuclear pumps.
-- Revenues* decreased (1.6%) due primarily to a lower level of filtration
shipments, partially offset by an increase in midstream pipeline valve
shipments and modest aftermarket growth.
-- The increase in segment income and margin was driven by savings from
cost reduction initiatives, a higher margin revenue mix and improved
productivity.
Industrial
$ millions Q2 2018 Q2 2017 Variance Organic Variance
------- ------- -------- ----------------
Backlog $236.4 $206.8 14.3% 15.0%
Orders 206.0 192.9 6.8% 5.5%
Revenues
(1) 191.8 176.5 8.7% 7.8%
Income 27.5 20.8 32.2%
As
a
percent
of
revenues 14.3% 11.8% 250 bps
Note: The commentary below is on an organic basis and as compared to the prior year period.
-- Backlog increased 15.0% with the growth concentrated in the mixer and
pump product lines and to a lesser extent, in the dehydration and
hydraulic tools product lines.
-- Orders grew 5.5% led by growth across the hydraulic tools, mixer and
heat exchanger product lines, and to a lesser extent pumps.
-- Revenues* grew 7.8%, driven by solid aftermarket growth and increased
shipments of dehydration equipment, pumps, mixers, and hydraulic tools.
-- The segment income growth and margin expansion was driven by the organic
growth described above, as well as savings from cost reduction
initiatives.
OTHER ITEMS
Debt Repayment: In Q2 2018 the company made a voluntary prepayment of $20.0 million on its term loan. This payment, coupled with the required quarterly principal payment of $5.0 million, reduced the outstanding principal balance of the term loan to $210.0 million.
Form 10-Q: The company expects to file its quarterly report on Form 10-Q for the quarter ended June 30, 2018 with the Securities and Exchange Commission on August 1, 2018. This news release should be read in conjunction with that filing, which will be available on the company's website at www.spxflow.com, in the Investor Relations section.
About SPX FLOW, Inc.: Based in Charlotte, North Carolina, SPX FLOW, Inc. (NYSE: FLOW) innovates with customers to help feed and enhance the world by designing, delivering and servicing high value solutions at the heart of growing and sustaining our diverse communities. The company's product offering is concentrated in rotating, actuating and hydraulic technologies, as well as automated process systems, into food and beverage, industrial and power and energy markets. SPX FLOW has approximately $2 billion in annual revenues with operations in more than 30 countries and sales in more than 150 countries. To learn more about SPX FLOW, please visit www.spxflow.com.
*Non-GAAP measure. See attached schedules for reconciliation from most comparable GAAP measure. Management believes these Non-GAAP metrics are commonly used financial measures for investors to evaluate our operating performance for the periods presented, and when read in conjunction with our condensed consolidated financial statements, present a useful tool to evaluate our ongoing operations and provide investors with metrics they can use to evaluate our management of the business from period to period. In addition, these are some of the factors we use in internal evaluations of the overall performance of our business.
Management acknowledges that there are many items that impact a company's reported results and the adjustments reflected in these Non-GAAP measures are not intended to present all items that may have impacted these results. In addition, these Non-GAAP measures are not necessarily comparable to similarly-titled measures used by other companies.
((1)) Organic revenue growth (decline) is calculated on a constant currency basis and excludes the net impact related to the adoption of the ASC 606 revenue recognition standard.
Note: Net leverage is as defined by the company's credit facility.
Certain statements in this press release are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created thereby. Please read these results in conjunction with the company's documents filed with the Securities and Exchange Commission. These filings identify important risk factors and other uncertainties that could cause actual results to differ from those contained in the forward-looking statements. Actual results may differ materially from these statements. The words "expect", "anticipate", "plan", "target", "project", "believe" and similar expressions identify forward-looking statements. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. In addition, estimates of future operating results are based on the company's current complement of businesses, which is subject to change. Statements in this press release speak only as of the date of this press release, and SPX FLOW disclaims any responsibility to update or revise such statements.
Investor and Media Contact:
Ryan Taylor, Vice President, Communications and Investor Relations
Phone: 704-752-4486
Email: investor@spxflow.com
SPX FLOW, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited; in millions, except per share amounts)
Three months ended Six months ended
------------------ ----------------
June 30, 2018 July 1, 2017 June 30, 2018 July 1, 2017
------------- ------------ ------------- ------------
Revenues $531.2 $498.0 $1,021.5 $931.2
Cost of products sold 358.5 345.0 693.1 639.1
----- ----- ----- -----
Gross profit 172.7 153.0 328.4 292.1
Selling, general and administrative 118.8 113.0 234.3 228.3
Intangible amortization 4.3 4.3 8.7 8.9
Special charges 1.1 6.7 3.7 15.3
Operating income 48.5 29.0 81.7 39.6
Other expense, net (0.8) (0.3) (5.4) (2.4)
Interest expense, net (12.4) (15.8) (24.9) (31.7)
Income before income taxes 35.3 12.9 51.4 5.5
Income tax provision (11.9) (2.7) (12.7) (2.6)
Net income 23.4 10.2 38.7 2.9
Less: Net income (loss) attributable to noncontrolling interests 0.5 (0.1) 0.3 -
Net income attributable to SPX FLOW, Inc. $22.9 $10.3 $38.4 $2.9
===== ===== ===== ====
Basic income per share of common stock $0.54 $0.25 $0.91 $0.07
Diluted income per share of common stock $0.54 $0.24 $0.90 $0.07
Weighted average number of common shares outstanding - basic 42.146 41.844 42.072 41.724
Weighted average number of common shares outstanding - diluted 42.616 42.221 42.559 42.058
SPX FLOW, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited; in millions)
June 30, 2018 December 31, 2017
------------- -----------------
ASSETS
Current assets:
Cash and
equivalents $204.9 $263.7
Accounts
receivable,
net 383.2 381.4
Contract
assets 77.4 57.7
Inventories,
net 325.3 293.9
Other current
assets 39.8 50.0
---- ----
Total current
assets 1,030.6 1,046.7
Property, plant and equipment:
Land 34.3 35.1
Buildings and
leasehold
improvements 233.8 238.3
Machinery and
equipment 463.7 461.6
----- -----
731.8 735.0
Accumulated
depreciation (383.7) (374.1)
------ ------
Property,
plant and
equipment,
net 348.1 360.9
Goodwill 754.5 771.3
Intangibles,
net 335.5 350.3
Other assets 149.4 159.8
TOTAL ASSETS $2,618.1 $2,689.0
======== ========
LIABILITIES, MEZZANINE EQUITY AND
EQUITY
Current liabilities:
Accounts
payable $234.1 $219.4
Contract
liabilities 192.6 182.3
Accrued
expenses 178.9 207.3
Income taxes
payable 23.7 21.6
Short-term
debt 27.0 24.2
Current
maturities
of long-
term debt 20.5 20.5
---- ----
Total current
liabilities 676.8 675.3
Long-term
debt 792.1 850.9
Deferred and
other income
taxes 55.2 63.3
Other long-
term
liabilities 119.7 125.5
----- -----
Total long-
term
liabilities 967.0 1,039.7
Mezzanine
equity 21.0 22.2
Equity:
SPX FLOW, Inc. shareholders' equity:
Common stock 0.4 0.4
Paid-in
capital 1,656.7 1,650.9
Accumulated
deficit (283.3) (327.5)
Accumulated
other
comprehensive
loss (417.7) (372.8)
Common stock
in treasury (13.3) (8.9)
----- ----
Total SPX
FLOW, Inc.
shareholders'
equity 942.8 942.1
Noncontrolling
interests 10.5 9.7
---- ---
Total equity 953.3 951.8
TOTAL
LIABILITIES,
MEZZANINE
EQUITY AND
EQUITY $2,618.1 $2,689.0
======== ========
SPX FLOW, INC. AND SUBSIDIARIES
RESULTS OF REPORTABLE SEGMENTS
(Unaudited; in millions)
As of and for the three months ended As of and for the six months ended
------------------------------------ ----------------------------------
June 30, 2018 July 1, 2017 %/bps June 30, 2018 July 1, 2017 %/bps
------------- ------------ --- ----- ------------- ------------ --- -----
Food and Beverage
Backlog $382.9 $320.3 $62.6 19.5% $382.9 $320.3 $62.6 19.5%
Orders 199.3 165.3 34.0 20.6% 370.5 349.5 21.0 6.0%
Revenues 187.6 176.5 11.1 6.3% 354.1 342.4 11.7 3.4%
Gross profit 59.1 54.2 4.9 114.0 105.3 8.7
as a percent of revenues 31.5 % 30.7 % 80bps 32.2 % 30.8 % 140bps
Selling, general and administrative expense 37.2 35.1 2.1 72.3 68.4 3.9
as a percent of revenues 19.8 % 19.9 % -10bps 20.4 % 20.0 % 40bps
Intangible amortization expense 1.9 1.8 0.1 3.8 4.1 (0.3)
Income $20.0 $17.3 $2.7 15.6% $37.9 $32.8 $5.1 15.5%
===== ===== ==== ===== ===== ====
as a percent of revenues 10.7 % 9.8 % 90bps 10.7 % 9.6 % 110bps
Power and Energy
Backlog $430.8 $403.5 $27.3 6.8% $430.8 $403.5 $27.3 6.8%
Orders 170.0 145.4 24.6 16.9% 314.4 313.2 1.2 0.4%
Revenues 151.8 145.0 6.8 4.7% 296.5 250.9 45.6 18.2%
Gross profit 45.9 40.0 5.9 89.9 70.1 19.8
as a percent of revenues 30.2 % 27.6 % 260bps 30.3 % 27.9 % 240bps
Selling, general and administrative expense 30.3 28.9 1.4 60.9 59.4 1.5
as a percent of revenues 20.0 % 19.9 % 10bps 20.5 % 23.7 % -320bps
Intangible amortization expense 1.1 1.1 - 2.3 2.2 0.1
--- ---
Income $14.5 $10.0 $4.5 45.0% $26.7 $8.5 $18.2 214.1%
===== ===== ==== ===== ==== =====
as a percent of revenues 9.6 % 6.9 % 270bps 9.0 % 3.4 % 560bps
Industrial
Backlog $236.4 $206.8 $29.6 14.3% $236.4 $206.8 $29.6 14.3%
Orders 206.0 192.9 13.1 6.8% 399.4 376.1 23.3 6.2%
Revenues 191.8 176.5 15.3 8.7% 370.9 337.9 33.0 9.8%
Gross profit 67.7 58.8 8.9 124.5 116.7 7.8
as a percent of revenues 35.3 % 33.3 % 200bps 33.6 % 34.5 % -90bps
Selling, general and administrative expense 38.9 36.6 2.3 73.9 72.2 1.7
as a percent of revenues 20.3 % 20.7 % -40bps 19.9 % 21.4 % -150bps
Intangible amortization expense 1.3 1.4 (0.1) 2.6 2.6 -
--- ---
Income $27.5 $20.8 $6.7 32.2% $48.0 $41.9 $6.1 14.6%
===== ===== ==== ===== ===== ====
as a percent of revenues 14.3 % 11.8 % 250bps 12.9 % 12.4 % 50bps
Consolidated Backlog $1,050.1 $930.6 $119.5 12.8 % $1,050.1 $930.6 $119.5 12.8 %
Consolidated Orders 575.3 503.6 71.7 14.2 % 1,084.3 1,038.8 45.5 4.4 %
Consolidated Revenues 531.2 498.0 33.2 6.7 % 1,021.5 931.2 90.3 9.7 %
Consolidated Segment Income 62.0 48.1 13.9 28.9 % 112.6 83.2 29.4 35.3 %
as a percent of revenues 11.7% 9.7% 200bps 11.0% 8.9% 210bps
Total income for reportable segments $62.0 $48.1 $13.9 $112.6 $83.2 $29.4
Corporate expense 12.0 12.1 (0.1) 26.4 27.6 (1.2)
Pension and postretirement service costs 0.4 0.3 0.1 0.8 0.7 0.1
Special charges 1.1 6.7 (5.6) 3.7 15.3 (11.6)
Consolidated Operating Income $48.5 $29.0 $19.5 67.2 % $81.7 $39.6 $42.1 106.3 %
===== ===== ===== ===== ===== =====
as a percent of revenues 9.1 % 5.8 % 330bps 8.0 % 4.3 % 370bps
SPX FLOW, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited; in millions)
Three months ended Six months ended
------------------ ----------------
June 30, 2018 July 1, 2017 June 30, 2018 July 1, 2017
------------- ------------ ------------- ------------
Cash flows from operating activities:
Net income $23.4 $10.2 $38.7 $2.9
Adjustments to reconcile net income to net cash from operating activities:
Special charges 1.1 6.7 3.7 15.3
Deferred income taxes (2.1) (0.7) 1.4 (3.9)
Depreciation and amortization 14.7 15.0 29.8 30.7
Stock-based compensation 4.0 3.9 9.1 7.9
Pension and employee benefits provided in stock 1.3 2.1 4.4 3.3
Loss (gain) on asset sales and other, net 0.2 (1.5) 0.2 (1.5)
Changes in operating assets and liabilities:
Accounts receivable and other assets (18.2) 4.0 (4.1) 25.5
Contract assets and liabilities, net (18.2) (6.6) (7.6) 17.3
Inventories (13.0) 3.1 (34.9) (18.4)
Accounts payable, accrued expenses and other 16.1 21.7 (12.0) 11.3
Cash spending on restructuring actions (6.3) (9.1) (10.1) (18.5)
---- ---- ----- -----
Net cash from operating activities 3.0 48.8 18.6 71.9
Cash flows from (used in) investing activities:
Proceeds from asset sales and other, net - 10.8 - 31.1
Capital expenditures (7.2) (6.6) (12.4) (11.4)
---- ---- ----- -----
Net cash from (used in) investing activities (7.2) 4.2 (12.4) 19.7
Cash flows used in financing activities:
Borrowings under senior credit facilities 36.3 41.0 55.8 125.5
Repayments of senior credit facilities (61.3) (69.0) (115.8) (202.5)
Borrowings under trade receivables financing arrangement 37.5 39.0 65.5 77.1
Repayments of trade receivables financing arrangement (39.5) (62.4) (62.5) (98.3)
Borrowings under other financing arrangements 3.7 5.8 3.7 5.8
Repayments of other financing arrangements (0.8) (1.6) (3.9) (9.6)
Minimum withholdings paid on behalf of employees for net share settlements, net (0.4) (0.1) (4.4) (3.3)
Dividends paid to noncontrolling interests in subsidiary (1.2) (1.4) (2.2) (1.5)
---- ---- ---- ----
Net cash used in financing activities (25.7) (48.7) (63.8) (106.8)
Change in cash, cash equivalents and restricted cash due to changes in foreign currency exchange rates (9.2) 13.1 (1.3) 26.2
Net change in cash, cash equivalents and restricted cash (39.1) 17.4 (58.9) 11.0
Consolidated cash, cash equivalents and restricted cash, beginning of period 245.1 209.8 264.9 216.2
Consolidated cash, cash equivalents and restricted cash, end of period $206.0 $227.2 $206.0 $227.2
====== ====== ====== ======
SPX FLOW, INC. AND SUBSIDIARIES
ORGANIC REVENUE RECONCILIATION
(Unaudited)
Three months ended June 30, 2018
--------------------------------
Net Revenue Foreign Adoption of New Organic
Growth Currency Revenue Revenue Growth
Standard* (Decline)
---------
Food and Beverage 6.3 % 2.0 % 3.7 % 0.6 %
Power and Energy 4.7 % 2.3 % 4.0 % (1.6)%
Industrial 8.7 % 1.1 % (0.2)% 7.8 %
Consolidated 6.7 % 1.8 % 2.4 % 2.5 %
Six months ended June 30, 2018
------------------------------
Net Revenue Foreign Adoption of New Organic
Growth Currency Revenue Revenue Growth
Standard* (Decline)
---------
Food and Beverage 3.4 % 4.6 % 2.7 % (3.9)%
Power and Energy 18.2 % 4.0 % 3.7 % 10.5 %
Industrial 9.8 % 3.3 % 0.7 % 5.8 %
Consolidated 9.7 % 3.9 % 2.3 % 3.5 %
*Transitioned to ASC 606 accounting for revenue recognition in Q1 2018.
SPX FLOW, INC. AND SUBSIDIARIES
CASH, DEBT AND NET DEBT RECONCILIATION
(Unaudited; in millions)
Six months ended
June 30, 2018
-------------
Beginning cash,
cash equivalents
and restricted
cash $264.9
Net cash from
operating
activities 18.6
Capital
expenditures (12.4)
Borrowings under
senior credit
facilities 55.8
Repayments of
senior credit
facilities (115.8)
Borrowings under
trade receivables
financing
arrangement 65.5
Repayments of trade
receivables
financing
arrangement (62.5)
Borrowings under
other financing
arrangements 3.7
Repayments of other
financing
arrangements (3.9)
Minimum
withholdings paid
on behalf of
employees for net
share settlements,
net (4.4)
Dividends paid to
noncontrolling
interests in
subsidiary (2.2)
Change in cash,
cash equivalents
and restricted
cash due to
changes in foreign
currency exchange
rates (1.3)
Ending cash, cash
equivalents and
restricted cash $206.0
======
Debt and Net Debt at
--------------------
June 30, 2018 December 31, 2017
------------- -----------------
Term loan $210.0 $270.0
5.625% senior
notes, due in
August 2024 300.0 300.0
5.875% senior
notes, due in
August 2026 300.0 300.0
Trade receivables
financing
arrangement 3.0 -
Other indebtedness 35.7 35.8
Less: deferred
financing fees (9.1) (10.2)
Total debt $839.6 $895.6
====== ======
Total debt $839.6 $895.6
Less: cash and
equivalents (204.9) (263.7)
Net debt $634.7 $631.9
====== ======
SPX FLOW, INC. AND SUBSIDIARIES
FREE CASH FLOW RECONCILIATION
(Unaudited; in millions)
Three months ended Six months ended 2018
------------------ ----------------
June 30, 2018 July 1, 2017 June 30, 2018 July 1, 2017 Mid-Point Guidance
------------- ------------ ------------- ------------ ------------------
Net cash from operating activities $3.0 $48.8 $18.6 $71.9 $145
Capital expenditures (7.2) (6.6) (12.4) (11.4) $(30)
Free cash flow from operations $(4.2) $42.2 $6.2 $60.5 $115
===== ===== ==== ===== ====
SPX FLOW, INC. AND SUBSIDIARIES
EBITDA RECONCILIATION
(Unaudited; in millions)
Three months ended Six months ended 2018
------------------ ----------------
June 30, 2018 July 1, 2017 June 30, 2018 July 1, 2017 Mid-Point Guidance
------------- ------------ ------------- ------------ ------------------
Net income attributable to SPX FLOW, Inc. $22.9 $10.3 $38.4 $2.9 $102
Income tax provision 11.9 2.7 12.7 2.6 40
Interest expense, net 12.4 15.8 24.9 31.7 49
Depreciation and amortization 14.7 15.0 29.8 30.7 59
EBITDA 61.9 43.8 105.8 67.9 $250
Special charges 1.1 6.7 3.7 15.3
Non-cash compensation expense 4.0 5.3 11.5 10.9
Non-service pension and postretirement related costs (benefits) 0.9 0.4 1.2 (0.4)
Interest income 1.2 1.3 3.2 2.3
Loss (gain) on asset sales and other, net 0.2 (1.5) 0.2 (1.5)
Other 0.2 0.1 0.4 0.3
Bank consolidated EBITDA $69.5 $56.1 $126.0 $94.8
===== ===== ====== =====
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SOURCE SPX FLOW, Inc.
