PR Newswire | Feb 10, 2021 06:30AM EST

02/10 05:30 CST

SPX FLOW Reports Fourth Quarter And Full Year 2020 Financial ResultsResults Demonstrate the Benefits of Portfolio Realignment; Focus on People, Customers, Improving Profitability and High Return InvestmentsFull Year 2020 Highlights:- Gross margins of 34.7%, up 20 points year-over-year despite COVID-19 impact and revenue decline of (10.4%) year-over-year to ~$1.35 billion- Strong balance sheet and free cash flow generation support long-term capital allocation objectives- Enhancing our focus on productivity and improving profitability through deployment of 80/20 CHARLOTTE, N.C., Feb. 10, 2021

CHARLOTTE, N.C., Feb. 10, 2021 /PRNewswire/ -- SPX FLOW, Inc. (NYSE:FLOW) a leading provider of process solutions, today reported results for the quarter and full year ended December 31, 2020.

"I am proud of the courage, compassion and commitment demonstrated by our global team members in 2020. Despite the many personal and operational challenges imposed by the COVID-19 pandemic, our people focused their efforts on creating a better customer experience, improving our culture of belonging and driving profitable growth in our key products and services. This organizational resiliency is evident in our financial results; gross margin expansion, working capital improvement, and delivering sequential growth in the second half of the year. In addition, our strong balance sheet positions us well to pursue high-quality investments both organically and through acquisitions," said Marc Michael, SPX FLOW President and CEO.

"As we turn the page to 2021, end markets are showing signs of recovery, but the full year economic outlook remains uncertain. We remain focused on those items under our control; investing in our products and operations, delivering a great customer experience, and building a culture of productivity and high performance. The deployment of 80/20 into the organization provided a foundation that is already simplifying how we do business and allowing us to identify areas of emphasis for profitable growth and address inefficiencies. We expect that our productivity initiatives will reduce our overall cost of doing business, including a plan to achieve $25 million dollars of annualized SG&A cost savings in 2022 while simultaneously realigning our cost structure to support growth. I want to thank our team members, customers and suppliers for their support and commitment throughout 2020 and express our excitement about working with our customers to provide the expertise and solutions they need to keep their businesses running," concluded Michael.

Fourth Quarter 2020 Consolidated Results (continuing operations unless otherwise noted)

$ millions; except per share dataQ4 2020 Q4 2019 Variance Organic Variance

Backlog $545.8 $519.2 5.1 %0.3 %

Orders 393.7 396.1 (0.6) %(4.6)%

Revenues 396.1 364.3 8.7 %5.3 %

Segment Income 48.1 53.5 (10.1) %

Margin % 12.1 %14.7 %-260bps

Operating income 26.5 31.6 (16.1) %

Margin % 6.7 %8.7 %-200bps



Amounts attributable to SPX FLOW, Inc. common shareholders

Income from continuing $20.1 $12.7 58.3 % operations, net of tax

Income (loss) from discontinued 4.1 (158.3) operations, net of tax

Net income (loss) attributable to$24.2 $(145.6) SPX FLOW, Inc.



Diluted earnings per share from $0.47 $0.30 56.7 % continuing operations

Diluted earnings (loss) per share0.10 (3.69) from discontinued operations

Diluted earnings (loss) per share0.57 (3.40)



Operating Cash Flow from $84.6 $77.8 continuing operations

Operating Cash Flow from (used 0.7 (3.6) in) discontinued operations

Operating Cash Flow $85.3 $74.2 15.0 %



Adjusted EBITDA from continuing $46.4 $47.7 (2.7) % operations*

Free Cash Flow* - continuing and 80.2 60.2 discontinued operations

Note: The commentary below is compared to the prior year period. All comments refer to organic changes with respect to continuing operations unless otherwise noted which exclude the effects of currency fluctuations.

* Backlog increased 0.3%, or $1.7 million, as modest growth in industrial backlog was partially offset by modest declines in Food & Beverage backlog as backlog on an organic basis was relatively consistent in both segments. * Orders declined (4.6)% organically, or $18.2 million, driven by a (5.4)% decline in Food and Beverage segment orders, and a (3.8)% decline in the Industrial segment. From a geographic perspective, gains in North America and Middle East/Africa were more than offset by declines in Europe and China primarily associated with systems projects. * Revenues increased 5.3%, or $19.2 million with both reporting segments reporting organic revenue growth above 5%. * Segment income was $48.1 million, down (10.1)%, and margin contracted by -260 basis points to 12.1%. The decline in segment income was primarily due to a decline in Food & Beverage segment profitability from a higher mix of systems revenue and a difficult comparison to the prior-year period which included positive contributions from several large project close outs. Additionally, incentive compensation was higher due to the strong operational results in the second half of 2020. * Operating income was $26.5 million, or 6.7% of revenues. After excluding discrete, non-operational and non-cash items and reclassifying transitional services income, adjusted operating income* was $39.9 million, or 10.0% of revenues, down -180 basis points year-over-year on a comparable basis. * Diluted earnings per share from continuing operations were $0.47. * Adjusted diluted earnings per share* from continuous operations as outlined in the reconciliation table below were $0.56. * Free cash flow* generated across all operations was $80.2 million, including investments of $5.1 million on capital expenditures and $3.8 million on restructuring actions.

Fourth Quarter 2020 Results by Segment:

Food and Beverage

$ millions Q4 2020 Q4 2019 Variance Organic Variance

Backlog $291.6 $275.3 5.9 %(0.1) %

Orders 200.0 201.9 (0.9) %(5.4) %

Revenues 187.7 172.9 8.6 %5.0 %

Income 25.5 30.9 (17.5) %

As a percent of revenues13.6 %17.9 %-430bps

Note: The commentary below is compared to the prior year period. All comments refer to organic changes with respect to continuing operations unless otherwise noted which exclude the effects of currency fluctuations.

* Backlog decreased (0.1)% or $(0.3) million, as an increase in components orders was offset by a decrease in systems orders. * Orders decreased (5.4)%, as increased components orders were more than offset by decreased systems orders. Geographically, components orders were relatively strong across most geographies while the decline in systems orders was concentrated in Europe. * Revenues increased 5.0% primarily driven increased execution on systems projects and stable component revenues, which were partially offset by a low single digit decline in service revenues. * Segment income was $25.5 million, down (17.5)% versus the prior year and margin contracted by -430 basis points to 13.6% reflecting a higher mix of systems revenues, a difficult year-over-year comparison relative to the fourth quarter of 2019 which included a higher level of favorable project closeouts and increased incentive compensation expense.

Industrial

$ millions Q4 2020 Q4 2019 Variance Organic Variance

Backlog $254.2 $243.9 4.2 %0.8 %

Orders 193.7 194.2 (0.3) %(3.8) %

Revenues 208.4 191.4 8.9 %5.7 %

Income 22.6 22.6 - %

As a percent of revenues10.8 %11.8 %-100bps

Note: The commentary below is compared to the prior year period. All comments refer to organic changes with respect to continuing operations unless otherwise noted which exclude the effects of currency fluctuations.

* Backlog increased 0.8% Primarily driven by increased second half orders for OE mixer projects which were partially offset by a decline in OE heat exchanger orders from the second half of 2019 due in part to selectivity aligned with 80/20 principles. * Orders declined (3.8)% as strength in North America was more than offset by declines in all other regions. Selectivity on project orders aligned with 80/20 principles was also a driver of lower orders year-over-year. * Revenues increased 5.7% primarily driven strong project oriented revenue, which was partially offset by reduced short-cycle revenue. * Segment income was flat at $22.6 million, and segment margin was 10.8% of revenues, a contraction of -100 basis points. The lower level of profitability reflects the impact of the revenue mix described above and increased operating costs, which were partially offset by lower SG&A spend which included an increase to incentive compensation expense.

Full Year 2020 Overview (continuing operations unless otherwise noted)

$ millions; except per share data 2020 2019 Variance Organic Variance

Backlog $545.8 $519.2 5.1 %0.3 %

Orders 1,358.7 1,459.5 (6.9) %(7.1) %

Revenues 1,350.6 1,506.6 (10.4) %(10.3)%

Segment income 168.7 201.0 (16.1) %

Margin % 12.5 %13.3 %-80bps

Operating income 80.9 115.7 (30.1) %

Margin % 6.0 %7.7 %-170bps

Net income (loss) 5.9 (95.1)

Net income (loss) per share attributable to SPX FLOW, Inc. 0.14 (2.23) (106.3)% (diluted)



Amounts attributable to SPX FLOW, Inc. common shareholders:

Income from continuing operations,$42.6 $54.9 net of tax

Income (loss) from discontinued (36.7) (150.0) operations, net of tax

Net income (loss) attributable to $5.9 $(95.1) SPX FLOW, Inc.



Diluted earnings per share from $1.00 $1.29 continuing operations

Diluted earnings (loss) per share (0.86) (3.51) from discontinued operations

Diluted earnings (loss) per share 0.14 (2.23)



Operating Cash Flow from $116.2 $130.1 continuing operations

Operating Cash Flow from (7.6) 43.2 discontinued operations

Operating Cash Flow $108.6 $173.3



Adjusted EBITDA from continuing 147.9 181.3 (18.4) % operations*

Free Cash Flow* - continuing and 80.7 137.3 discontinued operations

Note: The commentary below is compared to the prior year period. All comments refer to organic changes with respect to continuing operations unless otherwise noted which exclude the effects of currency fluctuations.

* Orders declined (7.1)% or $(104.1) million. This was primarily driven by a (15.7)% decline in food and beverage systems along with a (6.6)% decline within the Industrial segment due primarily to weakness in shorter cycle product categories attributable to economic conditions. * Revenue declined (10.3)% reflecting similar trends among the segments with Industrial revenue down (10.5)% and Food and Beverage revenue down (10.1)% largely driven by the decrease in orders described above. * Segment income and margin were $168.7 million and 12.5%, down (16.1)% and -80 basis points versus the prior year. Segment income declines were predominantly due to organic revenue declines described above, which were partially offset by reduced SG&A expense. * Operating income and margin were $80.9 million and 6.0%, a decrease of (30.1)% and -170 basis points versus the prior year, driven primarily by the decrease in segment income noted above. After excluding discrete, non-operational and non-cash items and reclassifying transitional services income, adjusted operating income* was $123.5 million, or 9.1% of revenues, down 140 points year-over-year on a comparable basis. * Diluted earnings per share from continuing operations were $1.00. * Adjusted diluted earnings per share from continuous operations as outlined in the reconciliation table below were $1.47. * Free cash flow* generated across all operations was $80.7 million, including investments of $27.9 million on capital expenditures and $11.3 million on restructuring actions.

OTHER ITEMS

Form 10-K: The company expects to file its annual report on Form 10-K for the year ended December 31, 2020 with the Securities and Exchange Commission on or about February 19, 2021. This press release should be read in conjunction with that filing, which will be available on the company's website atwww.spxflow.com, in the Investor Relations section.

Subsequent Events: On January 18th, 2021, the Company completed the purchase of Plc Uutechnic Group Oyj ("UTG Mixing Group") a public company, listed on the Nasdaq Helsinki, for approximately $41 million. The Company has initiated a squeeze out process prescribed by Finnish law pursuant to which the Company will (a) acquire the remaining shares in UTG Mixing group representing approximately 1.3% of UTG Mixing Group's outstanding shares and (b) delist it from the Nasdaq Helsinki. UTG Mixing Group is the maker of Stelzer, Uutechnic, and Jamix mixing solutions for the chemical, food, metallurgical and fertilizer, environmental technology, water treatment and pharmaceuticals markets. The addition of UTG's operations, based in Finland and Germany, will add technology, manufacturing capacity and technical expertise to SPX FLOW's already robust global portfolio of mixing and blending solutions and will be included in the Industrial reporting segment.

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 process solutions at the heart of growing and sustaining our diverse communities. The company's product offering is concentrated in process technologies that perform mixing, blending, fluid handling, separation, thermal heat transfer and other activities that are integral to processes performed across a wide variety of sanitary and industrial markets. SPX FLOW has operations in more than 30 countries and sales in more than 140 countries. To learn more about SPX FLOW, please visit www.spxflow.com.

*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 continuing 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.

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

Certain statements in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created thereby. Please read these results in conjunction with the company's documents filed with the Securities and Exchange Commission, including its most recent annual report on Form 10-K and its most recent quarterly report on Form 10-Q. 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. These statements are only predictions. Actual events or results may differ materially because of market conditions or other factors, and forward-looking statements should not be relied upon as a prediction of actual results. All the forward-looking statements in this press release are qualified in their entirety by reference to the factors discussed under the heading "Risk Factors" in the company's most recent Form 10-K and Form 10Q and in any other documents filed by the company with the Securities and Exchange Commission that describe risks and factors that could cause actual results to differ materially from those projected in these forward-looking statements. These risk factors may not be exhaustive. Further, the company operates in a continually changing business environment and cannot predict new risk factors that may arise as a result of these and other changes. 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 ContactScott GaffnerVP, Investor Relations and Strategic Insights704-752-4485 investor@spxflow.com

Media ContactMelissa BuscherChief Communications Officer704-540-2160

SPX FLOW, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited; in millions, except per share amounts)



Three months ended December 31, Twelve months ended December 31,

2020 2019 2020 2019

Revenues $ 396.1 $ 364.3 $1,350.6 $1,506.6

Cost of 267.9 232.5 881.7 986.2 products sold

Gross 128.2 131.8 468.9 520.4 profit

Selling, general and 91.3 94.8 357.2 372.8 administrative

Intangible 3.2 2.8 11.7 11.4 amortization

Asset impairment - 0.4 3.2 11.2 charges

Restructuring and other 3.0 2.2 11.7 9.3 related charges

Loss on sale of 4.2 - 4.2 - business

Operating 26.5 31.6 80.9 115.7 income



Other income 1.0 (7.0) 9.5 (0.5) (expense), net

Interest (5.0) (7.2) (29.9) (29.7) expense, net

Loss on early extinguishment- - (11.0) - of debt

Income from continuing operations 22.5 17.4 49.5 85.5 before income taxes

Income tax (2.5) (4.2) (6.2) (28.9) provision

Income from continuing 20.0 13.2 43.3 56.6 operations

Income (loss) from discontinued 4.1 (158.0) (36.8) (149.7) operations, net of tax

Net income 24.1 (144.8) 6.5 (93.1) (loss)

Less: Net income (loss) attributable (0.1) 0.8 0.6 2.0 to noncontrolling interests

Net income (loss) attributable $ 24.2 $ (145.6) $5.9 $(95.1) to SPX FLOW, Inc.



Amounts attributable to SPX FLOW, Inc. common shareholders:

Income from continuing $ 20.1 $ 12.7 $42.6 $54.9 operations, net of tax

Income (loss) from discontinued 4.1 (158.3) (36.7) (150.0) operations, net of tax

Net income (loss) attributable $ 24.2 $ (145.6) $5.9 $(95.1) to SPX FLOW, Inc.



Basic income (loss) per share of common stock:

Income per share from $ 0.48 $ 0.30 $1.01 $1.29 continuing operations

Income (loss) per share from0.10 (3.72) (0.87) (3.53) discontinued operations

Net income (loss) per share 0.58 (3.42) 0.14 (2.24) attributable to SPX FLOW, Inc.

Diluted income (loss) per share of common stock:

Income per share from $ 0.47 $ 0.30 $1.00 $1.29 continuing operations

Income (loss) per share from0.10 (3.69) (0.86) (3.51) discontinued operations

Net income (loss) per share 0.57 (3.40) 0.14 (2.23) attributable to SPX FLOW, Inc.



Weighted average number of common 42.070 42.605 42.307 42.465 shares outstanding - basic

Weighted average number of common 42.627 42.855 42.554 42.686 shares outstanding - diluted

SPX FLOW, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited; in millions)



December 31, 2020December 31, 2019

ASSETS

Current assets:

Cash and equivalents $441.5 $299.2

Accounts receivable, net 232.6 243.1

Contract assets 24.4 27.3

Inventories, net 199.3 208.1

Other current assets 27.4 32.2

Assets of discontinued operations - 464.0

Total current assets 925.2 1,273.9

Property, plant and equipment:

Land 22.8 22.2

Buildings and leasehold improvements 176.8 170.8

Machinery and equipment 349.1 325.9

548.7 518.9

Accumulated depreciation (320.6) (289.0)

Property, plant and equipment, net 228.1 229.9

Goodwill 569.7 545.1

Intangibles, net 206.0 208.1

Other assets 169.5 180.4

TOTAL ASSETS $2,098.5 $2,437.4



LIABILITIES, MEZZANINE EQUITY AND EQUITY

Current liabilities:

Accounts payable $149.1 $142.6

Contract liabilities 119.5 116.3

Accrued expenses 178.7 162.0

Income taxes payable 23.0 45.2

Short-term debt 12.5 20.7

Current maturities of long-term debt 0.1 0.1

Liabilities of discontinued operations - 220.5

Total current liabilities 482.9 707.4

Long-term debt 397.3 693.7

Deferred and other income taxes 36.6 27.9

Other long-term liabilities 117.5 115.0

Total long-term liabilities 551.4 836.6

Mezzanine equity 3.4 20.3

Equity:

SPX FLOW, Inc. shareholders' equity:

Common stock 0.4 0.4

Paid-in capital 1,696.9 1,677.0

Accumulated deficit (363.3) (369.2)

Accumulated other comprehensive loss (226.4) (426.5)

Common stock in treasury (46.2) (19.3)

Total SPX FLOW, Inc. shareholders' 1,061.4 862.4 equity

Noncontrolling interests (0.6) 10.7

Total equity 1,060.8 873.1

TOTAL LIABILITIES, MEZZANINE EQUITY AND $2,098.5 $2,437.4 EQUITY

SPX FLOW, INC. AND SUBSIDIARIES

RESULTS OF REPORTABLE SEGMENTS

(Unaudited; in millions)



As of and for the three As of and for the twelve months ended December 31, months ended December 31,

2020 2019 ? %/bps 2020 2019 ? %/bps

Food and Beverage

Backlog $ 291.6 $ 275.3 $16.3 5.9% $ 291.6 $ 275.3 $16.3 5.9%

Orders 200.0 201.9 (1.9) (0.9)% 635.1 669.0 (33.9) (5.1)%

Revenues 187.7 172.9 14.8 8.6% 630.8 702.9 (72.1) (10.3)%

Gross profit 62.5 62.3 0.2 223.2 229.3 (6.1)

as a percent of revenues 33.3 % 36.0 % (270)bps35.4 % 32.6 % 280bps

Selling, general and administrative 35.3 29.9 5.4 128.7 132.8 (4.1) expense

as a percent of revenues 18.8 % 17.3 % 150bps 20.4 % 18.9 % 150bps

Intangible amortization expense 1.7 1.5 0.2 6.3 6.0 0.3

Income $ 25.5 $ 30.9 $(5.4)(17.5)% $ 88.2 $ 90.5 $(2.3) (2.5)%

as a percent of revenues 13.6 % 17.9 % (430)bps14.0 % 12.9 % 110bps



Industrial

Backlog $ 254.2 $ 243.9 $10.3 4.2% $ 254.2 $ 243.9 $10.3 4.2%

Orders 193.7 194.2 (0.5) (0.3)% 723.6 790.5 (66.9) (8.5)%

Revenues 208.4 191.4 17.0 8.9% 719.8 803.7 (83.9) (10.4)%

Gross profit 65.7 69.5 (3.8) 245.7 291.1 (45.4)

as a percent of revenues 31.5 % 36.3 % (480)bps34.1 % 36.2 % (210)bps

Selling, general and administrative 41.6 45.6 (4.0) 159.8 175.2 (15.4) expense

as a percent of revenues 20.0 % 23.8 % (380)bps22.2 % 21.8 % 40bps

Intangible amortization expense 1.5 1.3 0.2 5.4 5.4 -

Income $ 22.6 $ 22.6 $- -% $ 80.5 $ 110.5 $(30.0)(27.1)%

as a percent of revenues 10.8 % 11.8 % -bps 11.2 % 13.7 % (250)bps



Consolidated Backlog $ 545.8 $ 519.2 $26.6 5.1% $ 545.8 $ 519.2 $26.6 5.1%

Consolidated Orders 393.7 396.1 (2.4) (0.6)% 1,358.7 1,459.5 (100.8) (6.9)%

Consolidated Revenues 396.1 364.3 31.8 8.7% 1,350.6 1,506.6 (156.0) (10.4)%

Consolidated Segment Income 48.1 53.5 (5.4) (10.1)% 168.7 201.0 (32.3) (16.1)%

as a percent of revenues 12.1 % 14.7 % (260)bps12.5 % 13.3 % (80)bps



Total income for reportable segments$ 48.1 $ 53.5 $(5.4) $ 168.7 $ 201.0 $(32.3)

Corporate expense 14.1 19.1 (5.0) 67.8 63.9 3.9

Pension and postretirement service 0.3 0.2 0.1 0.9 0.9 - costs

Asset impairment charges - 0.4 (0.4) 3.2 11.2 (8.0)

Restructuring and other related 3.0 2.2 0.8 11.7 9.3 2.4 charges

Loss on sale of business 4.2 - 4.2 4.2 - 4.2

Consolidated Operating Income $ 26.5 $ 31.6 $(5.1)(16.1)% $ 80.9 $ 115.7 $(34.8)(30.1)%

as a percent of revenues 6.7 % 8.7 % (200)bps6.0 % 7.7 % (170)bps

SPX FLOW, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited; in millions)



Three months ended Twelve months ended December 31, December 31,

2020 2019 2020 2019

Cash flows from operating activities:

Net income (loss) $24.1 $(144.8)$6.5 $(93.1)

Less: Income (loss) from 4.1 (158.0) (36.8) (149.7) discontinued operations, net of tax

Income from continuing operations 20.0 13.2 43.3 56.6

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

Restructuring and other related 3.0 2.2 11.7 9.3 charges

Asset impairment charges - 0.4 3.2 11.2

Deferred income taxes 10.5 15.4 29.4 11.4

Depreciation and amortization 10.9 9.4 41.1 38.3

Stock-based compensation (1.1) 3.1 9.5 12.5

Pension and other employee benefits2.3 5.8 3.3 7.3

Losses (gains) on asset sales and (1.6) 0.1 (2.5) (0.3) other, net

Loss on sale of business 4.2 - 4.2 -

Gain on change in fair value of (1.2) - (8.6) (7.8) investment in equity security

Loss on early extinguishment of - - 11.0 - debt

Changes in operating assets and liabilities, net of effects from business acquisition and sale, and from discontinued operations:

Accounts receivable and other 8.8 24.6 25.0 61.6 assets

Contract assets and liabilities, (5.7) 15.6 (1.3) (11.8) net

Inventories 30.1 8.9 18.9 10.1

Accounts payable, accrued expenses 8.2 (18.6) (60.7) (60.0) and other

Cash spending on restructuring (3.8) (2.3) (11.3) (8.3) actions

Net cash from continuing operations84.6 77.8 116.2 130.1

Net cash from (used in) 0.7 (3.6) (7.6) 43.2 discontinued operations

Net cash from operating activities 85.3 74.2 108.6 173.3

Cash flows from (used in) investing activities:

Proceeds from asset sales and 2.5 4.0 5.8 5.0 other, net

Proceeds from sale of business, net4.7 - 4.7 - of cash disposed

Capital expenditures (5.1) (11.1) (22.4) (28.5)

Business acquisition, net of cash - - (10.0) - acquired

Net cash from (used in) continuing 2.1 (7.1) (21.9) (23.5) operations

Net cash from (used in) discontinued operations (includes net proceeds from disposition of 6.3 (2.9) 399.7 (7.5) $412.5, less cash and restricted cash disposed of $7.3, in the year ended ended December 31, 2020)

Net cash from (used in) investing 8.4 (10.0) 377.8 (31.0) activities

Cash flows used in financing activities:

Repurchases of senior notes - - (308.4)- (includes premiums paid of $8.4)

Borrowings under amended and - - - 134.0 restated senior credit facilities

Repayments of amended and restated - - - (34.0) senior credit facilities

Borrowings under former senior - - - 33.0 credit facilities

Repayments of former senior credit - - - (173.0) facilities

Borrowings under former trade - - - 54.0 receivables financing arrangement

Repayments of former trade - - - (54.0) receivables financing arrangement

Borrowings under (repayments of) 3.7 (4.3) (7.9) (2.6) purchase card program, net

Borrowings under other financing - - - 0.2 arrangements

Repayments of other financing (0.1) (0.6) (0.4) (2.9) arrangements

Purchases of common stock (3.0) - (19.9) -

Financing fees paid - - - (3.3)

Minimum withholdings paid on behalf of employees for net share (0.1) - (7.0) (5.4) settlements, net

Purchase of noncontrolling interest(6.8) - (15.0) -

Dividends paid to noncontrolling (1.6) (0.2) (2.8) (1.2) interests in subsidiary

Net cash used in continuing (7.9) (5.1) (361.4)(55.2) operations

Net cash used in discontinued - (0.3) (0.3) (0.6) operations

Net cash used in financing (7.9) (5.4) (361.7)(55.8) activities

Change in cash, cash equivalents and restricted cash due to changes 3.3 5.2 13.5 2.6 in foreign currency exchange rates

Net change in cash, cash 89.1 64.0 138.2 89.1 equivalents and restricted cash

Consolidated cash, cash equivalents and restricted cash, beginning of 352.5 239.4 303.4 214.3 period

Consolidated cash, cash equivalents$441.6$303.4 $441.6$303.4 and restricted cash, end of period



SPX FLOW, INC. AND SUBSIDIARIES

ORGANIC REVENUE RECONCILIATION

(Unaudited)



Three months ended December 31, 2020

Net Revenue Growth Foreign Currency andOrganic Revenue Growth Business Combination

Food and 8.6 % 3.6 % 5.0 % Beverage

Industrial 8.9 % 3.2 % 5.7 %

Consolidated8.7 % 3.3 % 5.4 %



Twelve months ended December 31, 2020

Net Revenue DeclineForeign Currency andOrganic Revenue Decline Business Combination

Food and (10.3) % (0.2) % (10.1) % Beverage

Industrial (10.4) % 0.1 % (10.5) %

Consolidated(10.4) % (0.1) % (10.3) %

SPX FLOW, INC. AND SUBSIDIARIES

CASH RECONCILIATION

(Unaudited; in millions)



Twelve months ended December 31, 2020

Beginning cash, cash equivalents and restricted cash $ 303.4



Net cash from operating activities of continuing 116.2 operations

Net cash used in operating activities of discontinued (7.6) operations

Proceeds from asset sales and other, net 5.8

Proceeds from sale of business, net of cash disposed 4.7

Capital expenditures of continuing operations (22.4)

Business acquisition, net of cash acquired (10.0)

Net proceeds from disposition of discontinued operations,399.7 less capital expenditures of discontinued operations

Repurchases of senior notes (includes premiums paid of (308.4) $8.4)

Repayments of purchase card program, net (7.9)

Repayments of other financing arrangements (0.4)

Purchases of common stock (19.9)

Minimum withholdings paid on behalf of employees for net (7.0) share settlements, net

Purchase of noncontrolling interest (15.0)

Dividends paid to noncontrolling interests in subsidiary (2.8)

Net cash used in financing activities of discontinued (0.3) operations

Change in cash, cash equivalents and restricted cash due 13.5 to changes in foreign currency exchange rates

Ending cash, cash equivalents and restricted cash $ 441.6

SPX FLOW, INC. AND SUBSIDIARIES

DEBT, NET DEBT (NET CASH) AND ADJUSTED NET DEBT (ADJUSTED NET CASH) RECONCILIATION

(Unaudited; in millions)



Debt, Net Debt (Net Cash) and Adjusted Net Debt (Adjusted Net Cash) at

December 31, 2020 December 31, 2019

Term loan $ 100.0 $ 100.0

5.625% senior notes - 300.0

5.875% senior notes, due in August300.0 300.0 2026

Other indebtedness - continuing 13.1 21.3 operations

Other indebtedness - discontinued - 4.1 operations

Less: deferred financing fees (3.2) (6.8)

Total debt $ 409.9 $ 718.6



Total debt $ 409.9 $ 718.6

Less: cash and equivalents - (441.5) (299.2) continuing operations

Less: cash and equivalents - - (3.1) discontinued operations

Net debt (net cash) $ (31.6) $ 416.3



Net debt (net cash) $ (31.6) $ 416.3

Less: debt under purchase card (12.5) (20.4) program

Adjusted net debt (adjusted net $ (44.1) $ 395.9 cash)

SPX FLOW, INC. AND SUBSIDIARIES

FREE CASH FLOW RECONCILIATION

(Unaudited; in millions)



Three months ended Twelve months ended

December 31,December 31,December 31,December 31, 2020 2019 2020 2019

Net cash from operating activities - continuing and $ 85.3 $ 74.2 $108.6 $173.3 discontinued operations

Capital expenditures - continuing and (5.1) (14.0) (27.9) (36.0) discontinued operations

Free cash flow from operations - continuing and $ 80.2 $ 60.2 $80.7 $137.3 discontinued operations

SPX FLOW, INC. AND SUBSIDIARIES

ADJUSTED SEGMENT INCOME RECONCILIATION

(Unaudited; in millions)



Three months ended Twelve months ended

December 31,December 31,December 31,December 31, 2020 2019 2020 2019

Food and Beverage $ 25.5 $ 30.9 $88.2 $90.5 segment income

Intangible 1.7 1.5 6.3 6.0 amortization

Adjusted segment $ 27.2 $ 32.4 $94.5 $96.5 income





Three months ended Twelve months ended

December 31,December 31,December 31,December 31, 2020 2019 2020 2019

Industrial segment $ 22.6 $ 22.6 $80.5 $110.5 income

Purchase accounting - amortization of 0.2 - 0.2 - inventory fair value adjustment

Intangible 1.5 1.3 5.4 5.4 amortization

Adjusted segment $ 24.3 $ 23.9 $86.1 $115.9 income





Three months ended Twelve months ended

December 31,December 31,December 31,December 31, 2020 2019 2020 2019

Consolidated segment $ 48.1 $ 53.5 $168.7 $201.0 income

Purchase accounting - amortization of 0.2 - 0.2 - inventory fair value adjustment

Intangible 3.2 2.8 11.7 11.4 amortization

Adjusted segment $ 51.5 $ 56.3 $180.6 $212.4 income



SPX FLOW, INC. AND SUBSIDIARIES

ADJUSTED OPERATING INCOME RECONCILIATION

(Unaudited; in millions)



Three months ended Twelve months ended

December 31,December 31,December 31,December 31, 2020 2019 2020 2019

Operating income $ 26.5 $ 31.6 $80.9 $115.7

Charges and fees associated with 1.1 5.9 7.1 11.5 strategic actions

Charges associated with certain M&A 0.3 - 0.3 - activities

Certain restructuring and other related 3.0 2.2 11.7 8.1 charges

Asset impairment - 0.4 3.2 11.2 charges

Loss of sale of 4.2 - 4.2 - business

Reduction of SG&A costs associated with 1.4 - 4.2 - transition services income

Purchase accounting - amortization of 0.2 - 0.2 - inventory fair value adjustment

Intangible 3.2 2.8 11.7 11.4 amortization

Adjusted operating $ 39.9 $ 42.9 $123.5 $157.9 income

SPX FLOW, INC. AND SUBSIDIARIES

EBITDA FROM CONTINUING OPERATIONS RECONCILIATION

(Unaudited; in millions)



Three months ended Twelve months ended

December 31,December 31,December 31,December 31, 2020 2019 2020 2019

Net income attributable to SPX $ 20.1 $ 12.7 $42.6 $54.9 FLOW, Inc. from continuing operations



Income tax provision 2.5 4.2 6.2 28.9

Interest expense, net 5.0 7.2 29.9 29.7

Depreciation and 10.9 9.4 41.1 38.3 amortization

EBITDA from continuing38.5 33.5 119.8 151.8 operations

Loss on early - - 11.0 - extinguishment of debt

Asset impairment - 0.4 3.2 11.2 charges

Fair value adjustment related to an equity (1.2) - (8.6) (7.8) security

Non-cash compensation (1.1) 3.1 9.5 12.5

Non-service pension and 0.1 0.3 0.5 0.9 postretirement-related costs

Interest income 1.0 0.9 4.0 6.9

Mark to market pension1.9 4.5 1.9 4.7 adjustment

Losses (gains) on asset sales and other,(1.6) 0.1 (2.5) (0.3) net

Restructuring and 3.0 2.2 11.7 9.3 other related charges

Foreign exchange 1.2 2.1 3.4 3.0 losses

Loss on sale of 4.2 - 4.2 - business

EBITDA of business remaining in - 0.1 - 0.8 discontinued operations

Other 0.2 0.2 0.7 0.8

Bank consolidated EBITDA from continuing$ 46.2 $ 47.4 $158.8 $193.8 operations

SPX FLOW, INC. AND SUBSIDIARIES

ADJUSTED EBITDA FROM CONTINUING OPERATIONS RECONCILIATION

(Unaudited; in millions)



Three months ended Twelve months ended

December 31,December 31,December 31,December 31, 2020 2019 2020 2019

Net income attributable to SPX $ 20.1 $ 12.7 $42.6 $54.9 FLOW, Inc. from continuing operations



Income tax provision 2.5 4.2 6.2 28.9

Interest expense, net 5.0 7.2 29.9 29.7

Depreciation and 10.9 9.4 41.1 38.3 amortization

EBITDA from continuing38.5 33.5 119.8 151.8 operations

Charges and fees associated with 1.1 5.9 7.1 11.5 strategic actions

Charges associated with certain M&A 0.3 - 0.3 - activities

Certain restructuring and other related 3.0 2.2 11.7 8.1 charges

Asset impairment - 0.4 3.2 11.2 charges

Loss on sale of 4.2 - 4.2 - business

Fair value adjustment related to an equity (1.2) - (8.6) (7.8) security

Certain gains on assets sales and (1.6) - (2.9) - other, net

Mark to market pension1.9 4.6 1.9 4.6 adjustment

Losses on certain foreign currency - 1.1 - 1.9 remeasurement

Loss on early - - 11.0 - extinguishment of debt

Purchase accounting - amortization of 0.2 - 0.2 - inventory fair value adjustment

Adjusted EBITDA from $ 46.4 $ 47.7 $147.9 $181.3 continuing operations

SPX FLOW, INC. AND SUBSIDIARIES

ADJUSTED DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS RECONCILIATION

(Unaudited)



Three months ended Twelve months ended

December 31,December 31,December 31,December 31, 2020 2019 2020 2019

Diluted earnings per share from continuing $ 0.47 $ 0.30 $ 1.00 $ 1.29 operations

Charges and fees associated with 0.02 0.10 0.12 0.20 strategic actions, net of tax

Charges associated with certain M&A - - - - activities, net of tax

Certain restructuring and other related 0.05 0.03 0.21 0.14 charges, net of tax

Asset impairment - 0.01 0.05 0.19 charges, net of tax

Loss on sale of 0.09 - 0.09 - business, net of tax

Fair value adjustment related to an equity (0.02) - (0.15) (0.13) security, net of tax

Certain gains on asset sales and other, net (0.04) - (0.06) - of tax

Mark to market pension0.04 0.07 0.04 0.07 adjustment, net of tax

Losses on certain foreign currency - 0.02 - 0.02 remeasurement, net of tax

Loss on early extinguishment of - - 0.20 - debt, net of tax

Purchase accounting - amortization of - - - - inventory fair value adjustment, net of tax

Intangible amortization, net of 0.06 0.05 0.22 0.21 tax

Discrete tax items (0.11) (0.01) (0.25) 0.13

Adjusted diluted earnings per share $ 0.56 $ 0.57 $ 1.47 $ 2.12 from continuing operations

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SOURCE SPX FLOW, Inc.