NEWS RELEASE
±¬ÁÏ¹Ï Reports First Quarter 2016 Results
CHARLOTTE, N.C.,ÌýMay 4, 2016Ìý// --Ìý±¬ÁϹÏ, Inc. (NYSE: FLOW) today reported results for the quarter endedÌýApril 2, 2016.
First Quarter 2016 Overview:
- Revenues declined 11.6% toÌý$505.0 million, fromÌý$571.2 millionÌýin the year-ago quarter. The impact of the stronger U.S. Dollar versus foreign currencies decreased revenues by 2.4%, orÌý$13.5 million, and organic revenues* decreased 9.2%, primarily due to impacts from lower oil and dairy prices.
Ìý - Operating loss and margin wereÌý($21.9) millionÌýand (4.3%), compared to operating income and margin ofÌý$35.6 millionÌýand 6.2% in the year-ago quarter, due primarily toÌý$41.0 millionÌýof charges related to the company's previously announced realignment program and the organic revenue decline. Excluding charges related to the realignment program, adjusted operating income* and margin wereÌý$19.1 millionÌýand 3.8%.
Ìý - Diluted net loss per share wasÌý($0.75), including special charges ofÌý($0.77)Ìýper share related to the realignment program. Excluding charges related to the realignment program, adjusted earnings per share* wereÌý$0.02Ìýin Q1 2016.
Ìý - Net cash used in operating activities wasÌý$68.3 million, due in part to the timing of cash on large projects, interest payments related to our senior notes, pension benefit payments to certain former officers of the company and cash outflows related to the realignment program.
Ìý - Free cash flow* usage wasÌý$84.8 million, primarily due to the operating cash usage mentioned above, as well asÌý$16.5 millionÌýin capital expenditures, primarily related to the new manufacturing facility inÌýPoland.
"Exiting the first quarter, I am pleased with the collective effort across our enterprise to aggressively execute our realignment program.Ìý Overall, the year is progressing largely in-line with our expectations.Ìý Demand across many of our end markets is generally stable with pockets of encouraging activity developing.Ìý Our backlog grew 4% sequentially as large orders for fresh liquid dairy systems more than offset continued weakness in our oil related product lines," said President and CEOÌýMarc Michael.Ìý
Michael continued, "Looking specifically at our realignment program, we have made significant progress to reduce our cost structure, realign our footprint and streamline our functional support globally.Ìý In aggregate, we expect these actions to result in a 10% to 15% reduction to both headcount and manufacturing footprint.Ìý We are on track to complete the realignment program in 2017 and reduce our cost structure by at leastÌý$110 million."
"Once completed, I'm confident we will improve our ability to more efficiently and competitively serve our customers across all three end market segments.Ìý As we realign the company, we are simultaneously focused on systematically growing our aftermarket sales and expanding certain high-value product lines into adjacent markets.Ìý Through all these actions I firmly believe we will create significant value for our shareholders," Michael concluded.
First Quarter 2016 Results by Segment:
Food and Beverage
Revenues for Q1 2016 wereÌý$184.8 million, compared toÌý$210.1 millionÌýin Q1 2015, a decrease ofÌý$25.3 million, or 12.0%.Ìý Organic revenues* declined 9.9%, orÌý$20.8 million, and currency fluctuations decreased revenues 2.1%, orÌý$4.5 million. The decline in organic revenues was due primarily to lower revenue from large systems projects as the decline in dairy pricing, which began in 2015, has delayed the placement of several large system orders.
Segment income wasÌý$17.4 million, or 9.4% of revenues, in Q1 2016, compared toÌý$22.4 million, or 10.7% of revenues, in Q1 2015. Segment income and margin decreased due primarily to the organic revenue declines described above.
Power and Energy
Revenues for Q1 2016 wereÌý$149.7 million, compared toÌý$173.4 millionÌýin Q1 2015, a decrease ofÌý$23.7 million, or 13.7%.Ìý Organic revenues* declined 10.9%, orÌý$18.8 million, and currency fluctuations decreased revenues 2.8%, orÌý$4.9 million.Ìý The decline in organic revenue was due largely to the impact of lower oil prices on backlog entering the quarter and customer related shipment delays.ÌýÌý
Segment income wasÌý$2.2 million, or 1.5% of revenues, in Q1 2016, compared toÌý$16.0 million, or 9.2% of revenues, in Q1 2015.Ìý The decrease in segment income and margin was due primarily to the organic revenue decline described above, as well as competitive pricing pressures and lower utilization rates at certain of our manufacturing locations.Ìý These declines were partially offset by savings from restructuring actions.
Industrial
Revenues for Q1 2016 wereÌý$170.5 million, compared toÌý$187.7 millionÌýin Q1 2015, a decline ofÌý$17.2 million, or 9.2%.Ìý Organic revenues* declined 7.0%, orÌý$13.1 million, and currency fluctuations decreased revenues 2.2%, orÌý$4.1 million.Ìý The organic revenue decline was due primarily to lower large capital project revenue and decreased sales of hydraulic technology equipment into the oil and gas market.
Segment income wasÌý$19.4 million, or 11.4% of revenues, in Q1 2016, compared toÌý$25.8 million, or 13.7% of revenues, in Q1 2015.Ìý The decline in segment income and margin was due primarily to the organic revenue decline described above and a lower mix of higher margin products.Ìý These declines were partially offset by savings from restructuring actions.Ìý
2016 Full Year Financial Guidance:
The company reconfirmed its consolidated 2016 GAAP financial guidance originally issued onÌýFebruary 10, 2016.Ìý Additionally, based on analyst and investor feedback, and given the magnitude of the realignment program, the company has elected to provide 2016 financial guidance on both a GAAP and adjusted basis to simplify and align its financial guidance with the actual reporting of its 2016 financial results.Ìý Management believes this methodology will allow investors increased transparency to analyze the company's financial results with and without the impact of the realignment program.Ìý On an adjusted basis, the company is excludingÌý$60 millionÌýof special charges andÌý$105 millionÌýof cash investments directly related to the company's realignment program andÌý$41 millionÌýof net cash pension funding for retirees.
Ìý |
2016 Full Year Financial Guidance |
|
($ millions; except per share data) |
GAAP Basis |
Adjusted BasisÌý(1) |
Revenue vs. Prior Year |
$2,100 to $2,200 |
$2,100 to $2,200 |
Special Charges |
~$60 |
$0 |
Operating income |
$108 to $128 |
$168 to $188 |
Earnings Per Share |
$0.75 to $1.05 |
$1.85 to $2.15 |
Free Cash Flow* |
$10 to $30 |
$155 to $175 |
EBITDA* |
$175 to $195 |
$235 to $255 |
(1) Adjusted guidance excludesÌý$60mÌýof special charges andÌý$105mÌýof cash outflows related to the company's realignment program andÌý$41mÌýof net cash pension funding for retirees.Ìý See attached schedules for reconciliation of adjusted guidance to GAAP guidance.
OTHER ITEMS
Ìý
2015 Results:ÌýThe company's condensed combined statements of operations, comprehensive loss, equity and cash flows for the three months endedÌýMarch 28, 2015, were prepared on a "carve out" basis and were derived from the condensed consolidated financial statements and accounting records of SPX Corporation for the historical period presented. These condensed combined statements do not necessarily reflect what the results of operations, financial position, and cash flows would have been had ±¬ÁÏ¹Ï operated as an independent company for the historical period reported.
Form 10-Q:ÌýThe company expects to file its quarterly report on Form 10-Q for the quarter endedÌýApril 2, 2016Ìýwith the Securities and Exchange Commission no later thanÌýMay 12, 2016. This press release should be read in conjunction with that filing, which will be available on the company's website atÌý, in the Investor Relations section.
About ±¬ÁϹÏ, Inc.:ÌýÌýÌýBased inÌýCharlotte, North Carolina, ±¬ÁÏ¹Ï is a leading global supplier of highly engineered flow components, 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. ±¬ÁÏ¹Ï has more thanÌý$2 billionÌýin annual revenues with operations in over 35 countries and sales in over 150 countries around the world. To learn more about ±¬ÁϹÏ, please visit our website atÌý.
*Non-GAAP number. See attached schedules for reconciliation to most comparable GAAP number.
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," "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.Ìý Statements in this press release speak only as of the date of this press release, and ±¬ÁÏ¹Ï disclaims any responsibility to update or revise such statements.
Investor and Media Contact:
Ryan Taylor, Vice President, Communications and Finance
704-752-4486
E-mail: Ìýinvestor@spxflow.com
Ìý
±¬ÁϹÏ, INC. AND SUBSIDIARIES |
|||
CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS |
|||
(Unaudited; in millions, except per share amounts) |
|||
Ìý | Ìý | Ìý | Ìý |
Ìý |
Three months ended |
||
Ìý |
April 2, 2016 |
Ìý |
March 28, 2015 |
Revenues |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý505.0 |
Ìý |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý571.2 |
Ìý | Ìý | Ìý | Ìý |
Costs and expenses: |
Ìý | Ìý | Ìý |
Cost of products sold |
345.8 |
Ìý |
382.9 |
Selling, general and administrative |
134.4 |
Ìý |
142.9 |
Intangible amortization |
5.7 |
Ìý |
6.0 |
Special charges, net |
41.0 |
Ìý |
3.8 |
Operating income (loss) |
(21.9) |
Ìý |
35.6 |
Ìý | Ìý | Ìý | Ìý |
Other income (expense), net |
(2.5) |
Ìý |
6.1 |
Related party interest expense, net |
— |
Ìý |
(7.3) |
Other interest expense, net |
(14.4) |
Ìý |
(0.3) |
Income (loss) before income taxes |
(38.8) |
Ìý |
34.1 |
Income tax benefit (provision) |
6.7 |
Ìý |
(11.0) |
Net income (loss) |
(32.1) |
Ìý |
23.1 |
Less: Net loss attributable to noncontrolling interests |
(1.0) |
Ìý |
(0.3) |
Net income (loss) attributable to ±¬ÁϹÏ, Inc. |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý (31.1) |
Ìý |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý23.4 |
Ìý | Ìý | Ìý | Ìý |
Basic income (loss) per share of common stock |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý(0.75) |
Ìý |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý 0.57 |
Diluted income (loss) per share of common stock |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý(0.75) |
Ìý |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý 0.57 |
Ìý | Ìý | Ìý | Ìý |
Weighted average number of common shares outstanding - basic |
41.232 |
Ìý |
40.809 |
Weighted average number of common shares outstanding - diluted |
41.232 |
Ìý |
40.932 |
Ìý
Ìý
Ìý±¬ÁϹÏ, INC. AND SUBSIDIARIESÌý |
|||
ÌýCONDENSED CONSOLIDATED BALANCE SHEETSÌý |
|||
(Unaudited; in millions) |
|||
Ìý |
April 2, |
Ìý |
December 31, |
Ìý |
2016 |
Ìý |
2015 |
ASSETS |
Ìý | Ìý | Ìý |
Current assets: |
Ìý | Ìý | Ìý |
Cash and equivalents |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý220.4 |
Ìý |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý295.9 |
Accounts receivable, net |
502.9 |
Ìý |
483.9 |
Inventories, net |
331.0 |
Ìý |
305.2 |
Other current assets |
72.7 |
Ìý |
72.4 |
Total current assets |
1,127.0 |
Ìý |
1,157.4 |
Property, plant and equipment: |
Ìý | Ìý | Ìý |
Land |
38.0 |
Ìý |
37.7 |
Buildings and leasehold improvements |
226.0 |
Ìý |
224.9 |
Machinery and equipment |
480.5 |
Ìý |
483.9 |
Ìý |
744.5 |
Ìý |
746.5 |
Accumulated depreciation |
(323.9) |
Ìý |
(314.1) |
Property, plant and equipment, net |
420.6 |
Ìý |
432.4 |
Goodwill |
1,033.2 |
Ìý |
1,023.4 |
Intangibles, net |
581.1 |
Ìý |
579.4 |
Other assets |
115.3 |
Ìý |
111.6 |
TOTAL ASSETS |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý 3,277.2 |
Ìý |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý 3,304.2 |
Ìý | Ìý | Ìý | Ìý |
LIABILITIES AND EQUITY |
Ìý | Ìý | Ìý |
Current liabilities: |
Ìý | Ìý | Ìý |
Accounts payable |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý219.1 |
Ìý |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý227.1 |
Accrued expenses |
463.6 |
Ìý |
467.3 |
Income taxes payable |
24.3 |
Ìý |
31.7 |
Short-term debt |
38.4 |
Ìý |
28.0 |
Current maturities of long-term debt |
15.5 |
Ìý |
10.3 |
Total current liabilities |
760.9 |
Ìý |
764.4 |
Long-term debt |
989.3 |
Ìý |
993.8 |
Deferred and other income taxes |
141.1 |
Ìý |
142.0 |
Other long-term liabilities |
133.4 |
Ìý |
133.4 |
Total long-term liabilities |
1,263.8 |
Ìý |
1,269.2 |
Ìý | Ìý | Ìý | Ìý |
Equity: |
Ìý | Ìý | Ìý |
±¬ÁϹÏ, Inc. shareholders' equity: |
Ìý | Ìý | Ìý |
Common stock |
0.4 |
Ìý |
0.4 |
Paid-in capital |
1,627.3 |
Ìý |
1,621.7 |
Retained earnings (accumulated deficit) |
(10.0) |
Ìý |
21.1 |
Accumulated other comprehensive loss |
(370.6) |
Ìý |
(382.7) |
Common stock in treasury |
(4.0) |
Ìý |
(1.4) |
Total ±¬ÁϹÏ, Inc. shareholders' equity |
1,243.1 |
Ìý |
1,259.1 |
Noncontrolling interests |
9.4 |
Ìý |
11.5 |
Total equity |
1,252.5 |
Ìý |
1,270.6 |
TOTAL LIABILITIES AND EQUITY |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý 3,277.2 |
Ìý |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý 3,304.2 |
Ìý
Ìý
±¬ÁϹÏ, INC. AND SUBSIDIARIES |
|||||||
RESULTS OF REPORTABLE SEGMENTS |
|||||||
(Unaudited; in millions) |
|||||||
Ìý | Ìý | Ìý | Ìý | Ìý | Ìý | Ìý | Ìý |
Ìý |
Three months ended |
Ìý | Ìý | Ìý | Ìý | ||
Ìý |
April 2, 2016 |
Ìý |
March 28, 2015 |
Ìý |
Increase |
Ìý |
%/bps |
Food and Beverage reportable segment |
|||||||
Ìý | Ìý | Ìý | Ìý | Ìý | Ìý | Ìý | Ìý |
Revenues |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý 184.8 |
Ìý |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý210.1 |
Ìý |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý(25.3) |
Ìý |
(12.0)% |
Gross profit |
55.8 |
Ìý |
64.5 |
Ìý |
(8.7) |
Ìý | Ìý |
Selling, general and administrative expense |
36.6 |
Ìý |
40.1 |
Ìý |
(3.5) |
Ìý | Ìý |
Intangible amortization expense |
1.8 |
Ìý |
2.0 |
Ìý |
(0.2) |
Ìý | Ìý |
Income |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý 17.4 |
Ìý |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý22.4 |
Ìý |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý(5.0) |
Ìý |
(22.3)% |
as a percent of revenues |
9.4 % |
Ìý |
10.7 % |
Ìý | Ìý | Ìý |
-130bps |
Ìý | Ìý | Ìý | Ìý | Ìý | Ìý | Ìý | Ìý |
Power and Energy reportable segment |
|||||||
Ìý | Ìý | Ìý | Ìý | Ìý | Ìý | Ìý | Ìý |
Revenues |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý 149.7 |
Ìý |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý173.4 |
Ìý |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý(23.7) |
Ìý |
(13.7)% |
Gross profit |
42.5 |
Ìý |
55.8 |
Ìý |
(13.3) |
Ìý | Ìý |
Selling, general and administrative expense |
37.8 |
Ìý |
37.2 |
Ìý |
0.6 |
Ìý | Ìý |
Intangible amortization expense |
2.5 |
Ìý |
2.6 |
Ìý |
(0.1) |
Ìý | Ìý |
Income |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý 2.2 |
Ìý |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý16.0 |
Ìý |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý(13.8) |
Ìý |
(86.3)% |
as a percent of revenues |
1.5 % |
Ìý |
9.2 % |
Ìý | Ìý | Ìý |
-770bps |
Ìý | Ìý | Ìý | Ìý | Ìý | Ìý | Ìý | Ìý |
Industrial reportable segment |
|||||||
Ìý | Ìý | Ìý | Ìý | Ìý | Ìý | Ìý | Ìý |
Revenues |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý 170.5 |
Ìý |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý187.7 |
Ìý |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý(17.2) |
Ìý |
(9.2)% |
Gross profit |
60.9 |
Ìý |
68.0 |
Ìý |
(7.1) |
Ìý | Ìý |
Selling, general and administrative expense |
40.1 |
Ìý |
40.8 |
Ìý |
(0.7) |
Ìý | Ìý |
Intangible amortization expense |
1.4 |
Ìý |
1.4 |
Ìý |
— |
Ìý | Ìý |
Income |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý 19.4 |
Ìý |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý25.8 |
Ìý |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý(6.4) |
Ìý |
(24.8)% |
as a percent of revenues |
11.4 % |
Ìý |
13.7 % |
Ìý | Ìý | Ìý |
-230bps |
Ìý | Ìý | Ìý | Ìý | Ìý | Ìý | Ìý | Ìý |
Consolidated and Combined Revenues |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý 505.0 |
Ìý |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý571.2 |
Ìý |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý(66.2) |
Ìý |
(11.6)% |
Consolidated and Combined Segment Income |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý 39.0 |
Ìý |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý64.2 |
Ìý |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý(25.2) |
Ìý |
(39.3)% |
as a percent of revenues |
7.7 % |
Ìý |
11.2 % |
Ìý | Ìý | Ìý |
-350bps |
Ìý | Ìý | Ìý | Ìý | Ìý | Ìý | Ìý | Ìý |
Total income for reportable segments |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý 39.0 |
Ìý |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý64.2 |
Ìý |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý(25.2) |
Ìý | Ìý |
Corporate expense |
18.9 |
Ìý |
23.8 |
Ìý |
(4.9) |
Ìý | Ìý |
Pension and postretirement expense |
1.0 |
Ìý |
1.0 |
Ìý |
— |
Ìý | Ìý |
Special charges, net |
41.0 |
Ìý |
3.8 |
Ìý |
37.2 |
Ìý | Ìý |
Consolidated and Combined Operating Income (Loss) |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý (21.9) |
Ìý |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý35.6 |
Ìý |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý(57.5) |
Ìý |
(161.5)% |
as a percent of revenues |
(4.3)% |
Ìý |
6.2 % |
Ìý | Ìý | Ìý |
-1050bps |
Ìý
Ìý
±¬ÁϹÏ, INC. AND SUBSIDIARIES |
|||
CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS |
|||
(Unaudited; in millions) |
|||
Ìý | Ìý | Ìý | Ìý |
Ìý |
Three months ended |
||
Ìý |
April 2, 2016 |
Ìý |
March 28, 2015 |
Cash flows from (used in) operating activities: |
Ìý | Ìý | Ìý |
Net income (loss) |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý(32.1) |
Ìý |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý23.1 |
Adjustments to reconcile net income (loss) to net cash from (used in) operating activities: |
Ìý | Ìý | Ìý |
ÌýÌý Special charges, net |
41.0 |
Ìý |
3.8 |
ÌýÌý Deferred income taxes |
(13.8) |
Ìý |
(2.9) |
ÌýÌý Depreciation and amortization |
17.1 |
Ìý |
14.6 |
ÌýÌý Stock-based compensation |
6.9 |
Ìý |
— |
ÌýÌý Pension and other employee benefits |
2.9 |
Ìý |
0.8 |
ÌýÌý Gain on asset sales and other, net |
(1.3) |
Ìý |
— |
Changes in operating assets and liabilities: |
Ìý | Ìý | Ìý |
ÌýÌý Accounts receivable and other assets |
(10.3) |
Ìý |
(36.9) |
ÌýÌý Inventories |
(21.5) |
Ìý |
(6.9) |
ÌýÌý Accounts payable, accrued expenses and other |
(50.7) |
Ìý |
7.3 |
ÌýÌý Cash spending on restructuring actions |
(6.5) |
Ìý |
(2.7) |
Net cash from (used in) operating activities |
(68.3) |
Ìý |
0.2 |
Cash flows used in investing activities: |
Ìý | Ìý | Ìý |
ÌýÌý Proceeds from asset sales and other, net |
2.0 |
Ìý |
— |
ÌýÌý Increase in restricted cash |
(0.2) |
Ìý |
(0.1) |
ÌýÌý Capital expenditures |
(16.5) |
Ìý |
(11.6) |
Net cash used in investing activities |
(14.7) |
Ìý |
(11.7) |
Cash flows from financing activities: |
Ìý | Ìý | Ìý |
ÌýÌý Borrowings under senior credit facilities |
7.0 |
Ìý |
— |
ÌýÌý Repayments of senior credit facilities |
(5.0) |
Ìý |
— |
ÌýÌý Borrowings under trade receivables financing arrangement |
22.0 |
Ìý |
— |
ÌýÌý Repayments of trade receivables financing arrangement |
(13.0) |
Ìý |
— |
ÌýÌý Borrowings under other financing arrangements |
1.1 |
Ìý |
0.1 |
ÌýÌý Repayments of other financing arrangements |
(1.8) |
Ìý |
(0.7) |
ÌýÌý Minimum withholdings paid on behalf of employees for net share settlements, net |
(2.8) |
Ìý |
— |
ÌýÌý Dividends paid to noncontrolling interests in subsidiary |
(1.2) |
Ìý |
(0.5) |
ÌýÌý Change in former parent company investment |
— |
Ìý |
10.9 |
Net cash from financing activities |
6.3 |
Ìý |
9.8 |
Change in cash and equivalents due to changes in foreign currency exchange rates |
1.2 |
Ìý |
(7.2) |
Net change in cash and equivalents |
(75.5) |
Ìý |
(8.9) |
Consolidated and combined cash and equivalents, beginning of period |
295.9 |
Ìý |
216.6 |
Consolidated and combined cash and equivalents, end of period |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý220.4 |
Ìý |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý207.7 |
Ìý
Ìý
±¬ÁϹÏ, INC. AND SUBSIDIARIES |
|||||||
ORGANIC REVENUE RECONCILIATION |
|||||||
(Unaudited) |
|||||||
Ìý | Ìý | Ìý | Ìý | Ìý | Ìý | Ìý | Ìý |
Ìý |
Three months ended April 2, 2016 |
||||||
Ìý |
Net Revenue |
Ìý |
Acquisitions |
Ìý |
Foreign Currency |
Ìý |
Organic Revenue |
Food and Beverage reportable segment |
(12.0)% |
Ìý |
—% |
Ìý |
(2.1)% |
Ìý |
(9.9)% |
Power and Energy reportable segment |
(13.7)% |
Ìý |
—% |
Ìý |
(2.8)% |
Ìý |
(10.9)% |
Industrial reportable segment |
(9.2)% |
Ìý |
—% |
Ìý |
(2.2)% |
Ìý |
(7.0)% |
Consolidated and combined |
(11.6)% |
Ìý |
—% |
Ìý |
(2.4)% |
Ìý |
(9.2)% |
Ìý
Ìý
±¬ÁϹÏ, INC. AND SUBSIDIARIES |
|||
CASH AND DEBT RECONCILIATION |
|||
(Unaudited; in millions) |
|||
Ìý | Ìý | Ìý | Ìý |
Ìý |
Three months ended |
Ìý | Ìý |
Ìý |
April 2, 2016 |
Ìý | Ìý |
Beginning cash and equivalents |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý 295.9 |
Ìý | Ìý |
Ìý | Ìý | Ìý | Ìý |
Net cash used in operating activities |
(68.3) |
Ìý | Ìý |
Proceeds from asset sales and other, net |
2.0 |
Ìý | Ìý |
Increase in restricted cash |
(0.2) |
Ìý | Ìý |
Capital expenditures |
(16.5) |
Ìý | Ìý |
Net borrowings under senior credit facilities |
2.0 |
Ìý | Ìý |
Net borrowings under trade receivables financing arrangement |
9.0 |
Ìý | Ìý |
Net repayments of other financing arrangements |
(0.7) |
Ìý | Ìý |
Minimum withholdings paid on behalf of employees for net share settlements, net |
(2.8) |
Ìý | Ìý |
Dividends paid to noncontrolling interests in subsidiary |
(1.2) |
Ìý | Ìý |
Change in cash and equivalents due to changes in foreign currency exchange rates |
1.2 |
Ìý | Ìý |
Ìý | Ìý | Ìý | Ìý |
Ending cash and equivalents |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý 220.4 |
Ìý | Ìý |
Ìý | Ìý | Ìý | Ìý |
Ìý | Ìý | Ìý | Ìý |
Ìý |
Debt at |
Ìý |
Debt at |
Ìý |
April 2, 2016 |
Ìý |
December 31, 2015 |
Domestic revolving loan facility |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý 2.0 |
Ìý |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý — |
Term loan |
400.0 |
Ìý |
400.0 |
6.875% senior notes |
600.0 |
Ìý |
600.0 |
Trade receivables financing arrangement |
9.0 |
Ìý |
— |
Other indebtedness |
36.9 |
Ìý |
37.3 |
Totals |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý1,047.9 |
Ìý |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý 1,037.3 |
Ìý
Ìý
±¬ÁϹÏ, INC. AND SUBSIDIARIES |
|||
ADJUSTED OPERATING INCOME RECONCILIATION |
|||
(Unaudited; in millions) |
|||
Ìý | Ìý | Ìý | Ìý |
Ìý |
Three months ended |
||
Ìý |
April 2, 2016 |
Ìý |
March 28, 2015 |
Operating income (loss) |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý(21.9) |
Ìý |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý 35.6 |
Special charges related to realignment program |
41.0 |
Ìý |
— |
Adjusted operating income |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý 19.1 |
Ìý |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý 35.6 |
Ìý
Ìý
±¬ÁϹÏ, INC. AND SUBSIDIARIES |
|||
ADJUSTED DILUTED EARNINGS PER SHARE RECONCILIATION |
|||
(Unaudited) |
|||
Ìý | Ìý | Ìý | Ìý |
Ìý |
Three months ended |
||
Ìý |
April 2, 2016 |
Ìý |
March 28, 2015 |
Diluted earnings (loss) per share |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý(0.75) |
Ìý |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý0.57 |
Special charges related to realignment program, net of tax |
0.77 |
Ìý |
— |
Adjusted diluted earnings per share |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý0.02 |
Ìý |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý0.57 |
Ìý
Ìý
±¬ÁϹÏ, INC. AND SUBSIDIARIES |
|||
FREE CASH FLOW RECONCILIATION |
|||
(Unaudited; in millions) |
|||
Ìý | Ìý | Ìý | Ìý |
Ìý |
Three months ended |
||
Ìý |
April 2, 2016 |
Ìý |
March 28, 2015 |
Net cash from (used in) operating activities |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý(68.3) |
Ìý |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý0.2 |
Capital expenditures |
(16.5) |
Ìý |
(11.6) |
Free cash flow used in operations |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý(84.8) |
Ìý |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý(11.4) |
Ìý
Ìý
±¬ÁϹÏ, INC. AND SUBSIDIARIES |
|
ADJUSTED OPERATING INCOME RECONCILIATION |
|
(Unaudited; in millions) |
|
Ìý | Ìý |
Ìý |
2016 |
Ìý |
Mid-Point Target |
Operating income |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý118 |
Special charges related to realignment program |
60 |
Adjusted operating income |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý178 |
Ìý | Ìý |
Ìý | Ìý |
Ìý | Ìý |
Ìý | Ìý |
±¬ÁϹÏ, INC. AND SUBSIDIARIES |
|
ADJUSTED DILUTED EARNINGS PER SHARE RECONCILIATION |
|
(Unaudited) |
|
Ìý | Ìý |
Ìý | Ìý |
Ìý | Ìý |
Ìý |
2016 |
Ìý |
Mid-Point Target |
Diluted earnings per share |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý 0.90 |
Special charges related to realignment program, net of tax |
1.10 |
Adjusted diluted earnings per share |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý 2.00 |
Ìý | Ìý |
Ìý | Ìý |
±¬ÁϹÏ, INC. AND SUBSIDIARIES |
|
ADJUSTED FREE CASH FLOW RECONCILIATION |
|
(Unaudited; in millions) |
|
Ìý | Ìý |
Ìý | Ìý |
Ìý | Ìý |
Ìý |
2016 |
Ìý |
Mid-Point Target |
Net cash from operating activities |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý79 |
Capital expenditures |
(60) |
Free cash flow from operations |
19 |
Cash outflows related to realignment program |
105 |
Pension payments to former officers, net of tax benefit |
41 |
Adjusted free cash flow from operations |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý165 |
Ìý | Ìý |
Ìý | Ìý |
Ìý | Ìý |
Ìý | Ìý |
±¬ÁϹÏ, INC. AND SUBSIDIARIES |
|
EBITDA AND ADJUSTED EBITDA RECONCILIATION |
|
(Unaudited; in millions) |
|
Ìý |
2016 |
Ìý |
Mid-Point Target |
Net income |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý37 |
Ìý | Ìý |
Income tax expense |
20 |
Interest expense |
59 |
Depreciation and amortization |
70 |
EBITDA |
185 |
Special charges related to realignment program |
60 |
ADJUSTED EBITDA |
$ Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý245 |
Ìý
Ìý
Ìý
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SOURCE ±¬ÁϹÏ, Inc.