GlobeNewswire Inc | Feb 23, 2021 04:07PM EST

February 23, 2021

Q4 and Full-Year 2020 GAAP EPS of $0.58 and $2.20Q4 and Full-Year 2020 Adjusted EPS* of $0.89 and $2.80Introducing 2021 Full-Year Adjusted EPS* Guidance Range of $3.00-$3.20

CHARLOTTE, N.C., Feb. 23, 2021 (GLOBE NEWSWIRE) -- SPX Corporation (NYSE:SPXC) today reported results for the fourth quarter and the year ended December31, 2020.

Gene Lowe, President and CEO, remarked, 2020 was a highly unusual and challenging year. I want to thank all of our employees for their immense dedication and perseverance throughout this difficult time. Facing an unprecedented worldwide pandemic, our team continued to make safety our top priority, while rapidly adapting and executing effectively on our value creation goals. We closed the year with solid results, growing our full-year revenue, segment income and earnings per share.

We enter 2021 well-positioned for further growth, continued Mr. Lowe. This year we anticipate a double digit increase in adjusted earnings per share, and will continue to pursue opportunities to accelerate our growth, including acquisitions across our strategic platforms. We will also continue to drive progress on our key initiatives, including extending our continuous improvement processes across the organization, expanding our use of digital solutions to strengthen our customers experience, enhancing our focus on sustainability, and building on the successes of our employee development and Diversity & Inclusion programs.

Mr. Lowe concluded, With a strong balance sheet, a talented, experienced team, and attractive businesses that are operating at high levels of efficiency, SPX is poised to continue generating value in 2021 and for years to come.

Fourth Quarter 2020 Overview:

For the fourth quarter of 2020, the company reported revenue of $456.8 million and operating income of $34.9 million, compared with revenue of $443.4 million and operating income of $51.6 million in the fourth quarter of 2019. Operating income in Q4 2020 included the effect of a $9.4 million charge resulting from changes in estimates associated with asbestos product liability matters.

Diluted per share income from continuing operations attributable to SPX Corporation in the fourth quarter of 2020 was $0.58, compared with $0.76 per share in the fourth quarter of 2019. In addition to the charge noted above, results for the fourth quarter of 2020 included the effect of several items recorded below the operating income line. These include a further charge of $7.6 million resulting from changes in estimates associated asbestos product liability matters and $4.7 million of income derived from company-owned life insurance policies, both included in other income (expense), net, as well as tax benefits related to various audit settlements, statute expirations, and other adjustments to liabilities for uncertain tax positions.

SPXs adjusted consolidated revenue* was $456.1 million and adjusted operating income* was $49.2 million, compared with adjusted consolidated revenue* of $445.1 million and adjusted operating income* of $62.6 million in the fourth quarter of 2019.Adjusted operating income in Q4 2020 included the effect of the $9.4 million charge noted above. Adjusted earnings per share* in the fourth quarter of 2020 was $0.89, compared with $0.96 in the fourth quarter of 2019. Adjusted results for Q4 2020 also included the effect of the items recorded below the operating income line that are noted above.

Full-Year 2020 Overview:

For the full-year 2020, the company reported revenue of $1.6 billion and operating income of $132.0 million, compared with revenue of $1.5 billion and operating income of $110.0 million in 2019. Operating income in 2020 included the effect of the $9.4 million charge noted in the discussion of fourth quarter results above. Diluted per share income from continuing operations in 2020 was $2.20, compared with $1.71 in 2019. Results for the full-year 2020 also included the effect of the items recorded below the operating income line noted above.

SPXs adjusted consolidated revenue* for 2020 was $1.6 billion and adjusted operating income* was $169.4 million, compared with adjusted consolidated revenue* of $1.5 billion and adjusted operating income* of $172.3 million in 2019.Adjusted operating income in 2020 included the effect of the $9.4 million charge noted above. Adjusted earnings per share* in 2020 was $2.80, compared with $2.76 in 2019. Adjusted results for the full-year 2020 also included the effect of the items recorded below the operating income line noted above.

Fourth Quarter and Full-Year Financial Comparisons:

GAAP Results: ($ millions) Q42019 Q42020 FY2019 FY2020Revenue $ 443.4 $ 456.8 $ 1,520.9 $ 1,559.5 Segment Income 69.5 65.1 176.5 203.7 Operating 51.6 34.9 110.0 132.0 Income

Adjusted Results: ($ millions) Q42019 Q42020 FY2019 FY2020AdjustedConsolidated $ 445.1 $ 456.1 $ 1,527.0 $ 1,555.5 Revenue*Adjusted 79.4 77.3 231.0 238.3 Segment Income*AdjustedOperating 62.6 49.2 172.3 169.4 Income*

* Non-GAAP financial measure. See attached schedules for reconciliation to most comparable GAAP financial measure.

HVAC

Revenue for Q42020 was $185.3 million, compared with $193.8 million in Q42019, a decrease of 4.4%. This included a decrease on organic revenue* of 7.9% due to a decrease in sales of cooling and heating products, a 3.0% increase from the acquisition of Patterson-Kelley and a 0.5% favorable impact related to currency fluctuation.

Segment income in Q42020 was $33.9 million, compared to $38.1 million in Q4 2019. Adjusted segment income*, which excludes intangible amortization expense of $0.7 million and one-time acquisition costs of $0.5 million, was $35.1 million, or 18.9% of revenue. This compares with adjusted segment income* of $39.2 million, or 20.2% of revenue in Q42019, which excludes intangible amortization expense of $1.1 million. The decrease in adjusted segment income* and 130 basis point decrease in adjusted segment income margin* were due to the lower revenue noted above, as well as a less favorable mix of cooling product sales.

Full-year 2020 revenue decreased to $590.7 million from $593.2 million in 2019, a decrease of 0.4%. The decrease was due to lower organic sales of heating products, partially offset by the benefit of the Patterson-Kelley acquisition, and, to a lesser extent, higher organic sales of cooling products.

Full-year 2020 segment income was $93.4 million, compared to $95.4 million in 2019. Adjusted segment income*, which excludes intangible amortization expense of $2.9 million and one-time acquisition related costs of $0.6 million, was $96.9 million, or 16.4% of revenue. This compares with adjusted segment income* of $96.8 million in 2019, or 16.3% of revenue, which excludes intangible amortization expense of $1.4 million. The income from the Patterson-Kelly acquisition offset a decline in income associated with lower organic sales.

Detection & Measurement

Revenue in Q4 2020 was $118.1 million, compared with $100.5 million in Q4 2019, an increase of 17.5%, including a 13.9% increase from the acquisitions of ULC Robotics and Sensors & Software, a 1.0% favorable currency impact, and an organic revenue increase of 2.6%. The organic increase was due to higher sales of location & inspection and fare collection products, partially offset by lower sales of communication technologies products.

Segment income in Q4 2020 was $20.7 million, compared to $22.5 million in Q4 2019. Adjusted segment income*, which excludes intangible amortization expense of $5.0 million and one-time acquisition related costs of $0.7 million, was $26.4 million, or 22.4% of revenue. This compares with adjusted segment income* of $24.1 million, or 24.0% of revenue*, in Q4 2019, which excludes intangible amortization expense of $1.8 million and a favorable revision of acquisition related costs of $0.2 million. The increase in adjusted segment income* is due to the acquisitions noted above. The 160 basis point decrease in adjusted segment income margin* was driven primarily by lower project sales of high-margin communication technologies equipment.

Full-year 2020 revenue was $387.3 million, compared with $384.9 million in 2019, an increase of 0.6%. The increase in revenue was due to the impact of the acquisitions of ULC and Sensors & Software in 2020, partially offset by lower sales of communication technologies equipment.

Full-year 2020 segment income was $69.1 million, compared to $81.7 million in 2019. Adjusted segment income*, which excludes intangible amortization expense of $11.1 million and one-time acquisition related costs of $0.7 million, was $80.9 million, or 20.9% of revenue. This compares with adjusted segment income* of $91.2 million in 2019, or 23.7% of revenue, which excludes intangible amortization expense of $7.5 million and one-time acquisition related costs of $2.0 million. The decrease in adjusted segment income* and margin was due primarily to the lower project sales of high-margin communication technologies equipment noted above.

Engineered Solutions

Revenue in Q42020 was $152.7 million, compared with $150.8 million in Q42019, an increase of 1.3%, driven by higher sales of transformers and process cooling products.

Segment income in Q42020 was $15.8 million, or 10.3% of revenue, compared with segment income of $16.1 million, or 10.7% of revenue in Q42019. The 40 basis points decrease in segment income margin was due to a less profitable sales mix of process cooling products.

Full-year 2020 revenue was $577.5 million, compared with $548.9 million in 2019, an increase of 5.2%, driven by higher sales of transformers and process cooling products.

Full-year 2020 segment income was $60.5 million, or 10.5% of revenue, compared to segment income of $43.0 million, or 7.8% of revenue, in 2019. The increase in segment income and margin was primarily due to the increase in revenue noted above.

Other

Other, which includes the South African operations, had revenue of $0.7 million in Q4 2020, compared with $(1.7) million in Q4 2019, which included adjustments that reduced revenue associated with the South African projects.

Other incurred a loss in Q4 2020 of $(5.3) million, compared with a loss of $(7.2) million in Q4 2019. The decrease in the loss was due primarily to the winding down of operations associated with the projects in South Africa.

Full-year 2020 revenue was $4.0 million compared with ($6.1) million in 2019. Revenue for 2019 included adjustments that reduced revenue associated with the South African projects.

Other incurred a loss of $(19.3) million in 2020, compared with a loss of $(43.6) million in 2019. The decrease in the loss is due primarily to the prior year adjustments in revenue noted above associated with the projects in South Africa.

Financial Update:

As of December31, 2020, SPX had total outstanding debt of $412.4 million and total cash of $68.3 million.During the full-year 2020, SPX generated net operating cash from continuing operations of $131.1 million. Capital expenditures for continuing operations for the full-year 2020 were $21.5 million. Net leverage, as calculated under the companys bank credit agreement was 1.65x, compared with 1.85x at the end of Q3 2020.

2021 Guidance:

SPX is targeting 2021 adjusted consolidated revenue* of approximately $1.6 billion, an adjusted operating income margin* of approximately 12%, and adjusted earnings per share* in a range of $3.00 to $3.20.

Segment and company performance, on a year-over-year basis, is expected to be as follows:

Revenue Segment Income Margin %HVAC Growth of low-to-mid single digits % Modest increase

Detection & Growth of low-to-mid teens %Measurement including 2020 acquisitions impact Approximately flat

Engineered Growth of low-single digits % Approximately flatSolutionsTotal SPX Growth of mid-single digits % Modest increaseAdjusted

Non-GAAP Presentation: To provide additional clarity to its operating results, the company discusses results that include adjusted non-GAAP financial measures. Adjusted results for the company exclude, among other items, the effect of the South African operations, categorized as Other in the companys segment reporting structure. The company reports separately on the results of the Other category. The company anticipates reporting the results of the business included in the Other category as discontinued operations, at such time as they meet the accounting requirements for this treatment.

Beginning in the fourth quarter of 2020, the company began reporting the Heat Transfer business as a discontinued operation for all periods presented. Previously Heat Transfer was reported as a part of Other, along with the South African operations.

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 before March 2, 2021. This press release should be read in conjunction with that filing, which will be available on the company's website at www.spx.com, in the Investor Relations section.

Conference Call: SPX will host a conference call at 4:45 p.m. (EDT) today to discuss fourth quarter results and 2021 financial guidance. The call will be simultaneously webcast via the company's website at www.spx.com and the slide presentation will be available in the Investor Relations section of the site.

Conference callDial in: 877-341-7727From outside the United States: +1 262-558-6098Participant code: 9896843

A replay of the call will be available by telephone through Tuesday, March 2nd, 2021.

To listen to a replay of the callDial in: 855-859-2056From outside the United States: +1 404-537-3406Participant code: 9896843

About SPX Corporation SPX Corporation is a supplier of highly engineered products and technologies, holding leadership positions in the HVAC, detection and measurement, and engineered solutions markets. Based in Charlotte, North Carolina, SPX Corporation had approximately $1.6 billion in annual revenue in 2020 and more than 4,500 employees in 15 countries. SPX Corporation is listed on the New York Stock Exchange under the ticker symbol SPXC. For more information, please visit www.spx.com.

*Non-GAAP financial measure. See attached schedules for reconciliation to most comparable GAAP financial measure.

Note: Our non-GAAP financial guidance excludes items, which would be included in our GAAP financial measures that we do not consider indicative of our on-going performance; and are calculated in a manner consistent with the presentation of the similarly titled historical non-GAAP measures presented in this press release. These items include, but are not limited to, acquisition costs, costs associated with dispositions, the results of our South African operations, and potential non-cash income or expense items associated with changes in market interest rates and actuarial or other data related to our pension and postretirement plans, as the ultimate aggregate amounts associated with these items are out of our control and/or cannot be reasonably predicted. Accordingly, a reconciliation of our non-GAAP financial guidance to the nearest corresponding GAAP financial measures is not practicable.

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 Section21E 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 companys documents filed with the Securities and Exchange Commission, including the companys most recent annual report on Form10-K. 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 believe, expect, anticipate, project 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 companys 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 disclaims any responsibility to update or revise such statements.

SOURCE SPX Corporation.

Investor and Media Contacts:Paul Clegg, VP, Investor Relations and CommunicationsPhone: 980-474-3806E-mail: spx.investor@spx.com



SPX CORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited; in millions, except per share amounts) Three months ended Twelve months ended December December December December 31, 2020 31, 2019 31, 2020 31, 2019 Revenues $ 456.8 $ 443.4 $ 1,559.5 $ 1,520.9 Costs and expenses: Cost of products sold 313.7 299.5 1,080.6 1,078.2 Selling, general and 90.8 88.8 320.0 317.6 administrativeIntangible amortization 5.7 2.9 14.0 8.9 Impairment of intangible 0.7 - 0.7 - assetsSpecial charges, net 1.6 0.6 3.2 4.4 Other operating expenses, 9.4 - 9.0 1.8 netOperating income 34.9 51.6 132.0 110.0 Other income (expense), net (6.7 ) (15.0 ) 2.7 (5.2 )Interest expense (4.4 ) (5.4 ) (18.4 ) (21.0 )Interest income - 0.5 0.2 1.8 Loss on amendment/refinancing of senior - (0.6 ) (0.6 )credit agreementIncome from continuingoperations before income 23.8 31.1 116.5 85.0 taxesIncome tax (provision) 3.1 (2.0 ) (15.8 ) (13.9 )benefitIncome from continuing 26.9 29.1 100.7 71.1 operations Gain (loss) fromdiscontinued operations, 0.2 (0.6 ) 0.2 (1.4 )net of taxLoss on disposition ofdiscontinued operations, (2.5 ) (3.1 ) (3.7 ) (4.4 )net of taxLoss from discontinued (2.3 ) (3.7 ) (3.5 ) (5.8 )operations, net of tax Net income attributable toSPX Corporation common 24.6 25.4 97.2 65.3 shareholdersAdjustment related toredeemable noncontrolling - 5.6 - 5.6 interestNet income attributable toSPX Corporation commonshareholders after $ 24.6 $ 31.0 $ 97.2 $ 70.9 adjustmentrelated to redeemablenoncontrolling interest Amounts attributable to SPXCorporation commonshareholders after adjustmentrelated to redeemablenoncontrolling interest:Income from continuing $ 26.9 $ 34.7 $ 100.7 $ 76.7 operations, net of taxLoss from discontinued (2.3 ) (3.7 ) (3.5 ) (5.8 )operations, net of taxNet income $ 24.6 $ 31.0 $ 97.2 $ 70.9 Basic income (loss) per share of common stock:Income from continuingoperations attributable toSPX Corporation commonshareholders after $ 0.60 $ 0.79 $ 2.26 $ 1.75 adjustment related toredeemable noncontrollinginterestLoss from discontinuedoperations attributable to (0.05 ) (0.09 ) (0.08 ) (0.14 )SPX Corporation commonshareholdersNet income per shareattributable to SPXCorporation commonshareholders $ 0.55 $ 0.70 $ 2.18 $ 1.61 after adjustment related toredeemable noncontrollinginterest Weighted-average number ofcommon shares outstanding? 44.894 44.157 44.628 43.942 basic Diluted income (loss) per share of common stock:Income from continuingoperations attributable toSPX Corporation commonshareholders after $ 0.58 $ 0.76 $ 2.20 $ 1.71 adjustment related toredeemable noncontrollinginterestLoss from discontinuedoperations attributable to (0.05 ) (0.08 ) (0.08 ) (0.13 )SPX Corporation commonshareholdersNet income per shareattributable to SPXCorporation commonshareholders $ 0.53 $ 0.68 $ 2.12 $ 1.58 after adjustment related toredeemable noncontrollinginterest Weighted-average number ofcommon shares outstanding? 46.151 45.491 45.766 44.957 diluted

SPX CORPORATION AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(Unaudited; in millions) December 31, December 31, 2020 2019ASSETS Current assets: Cash and equivalents $ 68.3 $ 54.6 Accounts receivable, net 271.8 264.8 Contract assets 81.1 63.1 Inventories, net 162.0 154.9 Other current assets (includes income taxesreceivable of $27.3 and 99.1 93.0 $23.0 at December 31, 2020 and 2019,respectively)Assets of discontinued operations (includes cashand equivalents of 0.3 1.7 $0.0 and $0.1 at December 31, 2020 and 2019,respectively)Total current assets 682.6 632.1 Property, plant and equipment: Land 19.4 18.7 Buildings and leasehold improvements 128.0 121.9 Machinery and equipment 356.7 342.3 504.1 482.9 Accumulated depreciation (314.4 ) (303.8 )Property, plant and equipment, net 189.7 179.1 Goodwill 499.9 449.3 Intangibles, net 305.0 251.7 Other assets 616.4 605.5 Deferred income taxes 3.9 16.4 Assets of discontinued operations 0.2 0.4 TOTAL ASSETS $ 2,297.7 $ 2,134.5 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 138.5 $ 141.2 Contract liabilities 103.5 100.5 Accrued expenses 233.6 219.6 Income taxes payable 0.4 2.2 Short-term debt 101.2 142.6 Current maturities of long-term debt 7.2 1.0 Liabilities of discontinued operations 0.5 1.5 Total current liabilities 584.9 608.6 Long-term debt 304.0 249.9 Deferred and other income taxes 23.8 26.3 Other long-term liabilities 755.8 747.1 Liabilities of discontinued operations - 0.2 Total long-term liabilities 1,083.6 1,023.5 Equity: Common stock 0.5 0.5 Paid-in capital 1,319.9 1,302.4 Retained deficit (488.1 ) (584.8 )Accumulated other comprehensive income 248.5 244.3 Common stock in treasury (451.6 ) (460.0 )Total equity 629.2 502.4 TOTAL LIABILITIES AND EQUITY $ 2,297.7 $ 2,134.5

SPX CORPORATION AND SUBSIDIARIES RESULTS OF REPORTABLE SEGMENTS AND OTHER OPERATING SEGMENT (Unaudited; in millions) Three months ended Twelve months ended December December ? %/bps December December ? %/bps 31, 2020 31, 2019 31, 2020 31, 2019HVACreportable segment Revenues $ 185.3 $ 193.8 $ (8.5 ) (4.4 ) $ 590.7 $ 593.2 $ (2.5 ) (0.4 ) % %Gross profit 62.6 68.7 (6.1 ) 197.9 196.2 1.7 Selling,general and 28.0 29.5 (1.5 ) 101.6 99.4 2.2 administrativeexpenseIntangibleamortization 0.7 1.1 (0.4 ) 2.9 1.4 1.5 expenseIncome $ 33.9 $ 38.1 $ (4.2 ) (11.0 ) $ 93.4 $ 95.4 $ (2.0 ) (2.1 ) % %as a percent 18.3 % 19.7 % -140 15.8 % 16.1 % -30 bps of revenues bps Detection &Measurement reportablesegment Revenues $ 118.1 $ 100.5 $ 17.6 17.5 % $ 387.3 $ 384.9 $ 2.4 0.6 % Gross profit 52.0 47.7 4.3 168.6 178.3 (9.7 ) Selling,general and 26.3 23.4 2.9 88.4 89.1 (0.7 ) administrativeexpenseIntangibleamortization 5.0 1.8 3.2 11.1 7.5 3.6 expenseIncome $ 20.7 $ 22.5 $ (1.8 ) (8.0 ) $ 69.1 $ 81.7 $ (12.6 ) (15.4 ) % %as a percent 17.5 % 22.4 % -490 17.8 % 21.2 % -340 of revenues bps bps EngineeredSolutions reportablesegment Revenues $ 152.7 $ 150.8 $ 1.9 1.3 % $ 577.5 $ 548.9 $ 28.6 5.2 % Gross profit 29.8 30.7 (0.9 ) 115.3 96.7 18.6 Selling,general and 14.0 14.6 (0.6 ) 54.8 53.7 1.1 administrativeexpenseIncome $ 15.8 $ 16.1 $ (0.3 ) (1.9 ) $ 60.5 $ 43.0 $ 17.5 40.7 % %as a percent 10.3 % 10.7 % -40 bps 10.5 % 7.8 % 270 bps of revenues Other Revenues $ 0.7 $ (1.7 ) $ 2.4 141.2 % $ 4.0 $ (6.1 ) $ 10.1 165.6 % Gross profit (1.3 ) (3.2 ) 1.9 (2.9 ) (28.5 ) 25.6 (loss)Selling,general and 4.0 4.0 - 16.4 15.1 1.3 administrativeexpenseLoss $ (5.3 ) $ (7.2 ) $ 1.9 26.4 % $ (19.3 ) $ (43.6 ) $ 24.3 55.7 % Consolidated $ 456.8 $ 443.4 $ 13.4 3.0 % $ 1,559.5 $ 1,520.9 $ 38.6 2.5 % RevenuesConsolidated 65.1 69.5 (4.4 ) (6.3 ) 203.7 176.5 27.2 15.4 % Segment Income %as a percent 14.3 % 15.7 % -140 13.1 % 11.6 % 150 bps of revenues bps Total segment $ 65.1 $ 69.5 $ (4.4 ) $ 203.7 $ 176.5 $ 27.2 incomeCorporate 14.7 13.8 0.9 44.8 46.7 (1.9 ) expenseLong-termincentive 3.8 3.5 0.3 14.0 13.6 0.4 compensationexpenseImpairmentintangible 0.7 - 0.7 0.7 - 0.7 assetsSpecial 1.6 0.6 1.0 3.2 4.4 (1.2 ) charges, netOtheroperating 9.4 - 9.4 9.0 1.8 7.2 expenseConsolidated )operating $ 34.9 $ 51.6 $ (16.7 ) (32.4 % $ 132.0 $ 110.0 $ 22.0 20.0 % incomeas a percent 7.6 % 11.6 % -400 8.5 % 7.2 % 130 bps of revenues bps

SPX CORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited; in millions) Three months ended Twelve months ended December December 31, December 31, December 31, 31, 2020 2019 2020 2019Cash flows from(used in) operating activities:Net income $ 24.6 $ 25.4 $ 97.2 $ 65.3 Less: Loss fromdiscontinued (2.3 ) (3.7 ) (3.5 ) (5.8 )operations, net oftaxIncome fromcontinuing 26.9 29.1 100.7 71.1 operationsAdjustments toreconcile incomefrom continuing operations to netcash from operatingactivities:Special charges, 1.6 0.6 3.2 4.4 netGain on change infair value of (1.2 ) - (8.6 ) (7.9 )equity securityImpairment of 0.7 - 0.7 - intangible assetsLoss on amendment/refinancing of - 0.6 - 0.6 senior creditagreementDeferred and other (1.7 ) 6.6 11.3 15.2 income taxesDepreciation and 13.1 9.8 41.7 34.2 amortizationPension and other 9.0 12.6 14.3 20.2 employee benefitsLong-term incentive 3.8 3.5 14.0 13.6 compensationOther, net 0.7 1.1 4.1 2.6 Changes inoperating assetsand liabilities, net of effects fromacquisitions:Accounts receivable (48.4 ) (19.2 ) 2.8 72.0 and other assetsInventories 22.8 10.0 (2.2 ) (8.9 )Accounts payable,accrued expenses 44.6 26.2 (48.1 ) (60.0 )and otherCash spending onrestructuring (0.4 ) (0.9 ) (2.8 ) (2.9 )actionsNet cash fromcontinuing 71.5 80.0 131.1 154.2 operationsNet cash used indiscontinued (1.6 ) (1.2 ) (4.8 ) (5.6 )operationsNet cash fromoperating 69.9 78.8 126.3 148.6 activities Cash flows from(used in) investing activities:Proceeds(expenditures)related to company (1.3 ) - (0.2 ) 5.9 owned lifeinsurance, netBusinessacquisitions, net (16.5 ) (59.9 ) (104.4 ) (147.1 )of cash acquiredCapital (6.5 ) (7.1 ) (21.5 ) (17.8 )expendituresOther - - - (0.2 )Net cash used incontinuing (24.3 ) (67.0 ) (126.1 ) (159.2 )operationsNet cash fromdiscontinued - - - 5.5 operationsNet cash used ininvesting (24.3 ) (67.0 ) (126.1 ) (153.7 )activities Cash flows from(used in) financing activities:Borrowings undersenior credit 13.7 461.4 197.6 593.8 facilitiesRepayments undersenior credit (88.9 ) (432.6 ) (207.8 ) (560.2 )facilitiesBorrowings undertrade receivables 69.4 38.0 134.4 93.0 agreementRepayments undertrade receivables (46.0 ) (52.0 ) (106.4 ) (116.0 )agreementNet repaymentsunder other (0.4 ) (4.3 ) (2.2 ) (0.6 )financingarrangementsPayment ofcontingent - - (1.5 ) - considerationMinimumwithholdings paidon behalf ofemployees for netshare settlements, 3.6 0.3 1.8 (3.9 )net of proceedsfrom the exerciseof employee stockoptions and otherFinancing fees paid - (1.6 ) - (1.6 )Purchase of - (15.6 ) - (15.6 )subsidiary sharesNet cash from (usedin) continuing (48.6 ) (6.4 ) 15.9 (11.1 )operationsNet cash from (usedin) discontinued - - - - operationsNet cash from (usedin) financing (48.6 ) (6.4 ) 15.9 (11.1 )activitiesChange in cash andequivalents due tochanges in foreign 0.6 - (2.5 ) 2.1 currencyexchange ratesNet change in cash (2.4 ) 5.4 13.6 (14.1 )and equivalentsConsolidated cashand equivalents, 70.7 49.3 54.7 68.8 beginning of periodConsolidated cashand equivalents, $ 68.3 $ 54.7 $ 68.3 $ 54.7 end of period

SPX CORPORATION AND SUBSIDIARIESCASH AND DEBT RECONCILIATION(Unaudited; in millions) Twelve months ended December 31, 2020Beginningcash and $ 54.7 equivalentsCash fromcontinuing 131.1 operationsCapital (21.5 ) expendituresExpendituresrelated tocompany-owned (0.2 ) lifeinsurancepolicies, netBusinessacquisitions, (104.4 ) net of cashacquiredBorrowingsunder senior 197.6 creditfacilitiesRepaymentsunder senior (207.8 ) creditfacilitiesBorrowingsunder trade 134.4 receivablesagreementRepaymentsunder trade (106.4 ) receivablesagreementNetrepaymentsunder other (2.2 ) financingarrangementsNet proceedsfrom theexercise ofemployeestockoptions, netof minimum 1.8 withholdingspaid onbehalf ofemployees fornet sharesettlementsPayment ofcontingent (1.5 ) considerationCash used indiscontinued (4.8 ) operationsChange incash due tochanges inforeign (2.5 ) currencyexchangeratesEnding cashand $ 68.3 equivalents Debt at Debt at December 31, Borrowings Repayments Other December 2019 31, 2020Revolving $ 140.0 $ 197.6 $ (207.8 ) $ - $ 129.8 loansTerm loan 250.0 - - - 250.0 Tradereceivables - 134.4 (106.4 ) - 28.0 financingarrangementOther 5.3 - (2.2 ) 2.9 6.0 indebtednessLess:Deferredfinancingcosts (1.8 ) - - 0.4 (1.4 )associatedwith the termloanTotals $ 393.5 $ 332.0 $ (316.4 ) $ 3.3 $ 412.4

SPX CORPORATION AND SUBSIDIARIES NON-GAAP RECONCILIATION - ORGANIC REVENUE HVAC, DETECTION & MEASUREMENT & ENGINEERED SOLUTIONS REPORTABLE SEGMENTS (Unaudited) Three months ended December 31, 2020 HVAC Detection & Engineered Measurement SolutionsNet Revenue Growth (4.4 )% 17.5 % 1.3 %(Decline) Exclude: Foreign Currency 0.5 % 1.0 % - % Exclude: Acquisitions 3.0 % 13.9 % - % Organic Revenue Growth (7.9) % 2.6 % 1.3 %(Decline)

SPX CORPORATION AND SUBSIDIARIESNON-GAAP RECONCILIATION - REVENUE AND SEGMENT INCOME(Unaudited; in millions) CONSOLIDATED Three months ended Twelve months endedSPX: December December December 31, December 31, 31, 2020 31, 2019 2020 2019 Consolidated $ 456.8 $ 443.4 $ 1,559.5 $ 1,520.9 revenue Exclude:"Other" 0.7 (1.7 ) 4.0 (6.1 )operatingsegment ^(1) Adjustedconsolidated $ 456.1 $ 445.1 $ 1,555.5 $ 1,527.0 revenue Total segment $ 65.1 $ 69.5 $ 203.7 $ 176.5 income Exclude:"Other" (5.3 ) (7.2 ) (19.3 ) (43.6 )operatingsegment ^(1) Exclude:One-timeacquisition (1.2 ) 0.2 (1.3 ) (2.0 )related costs ^(2) Exclude:Amortization (5.7 ) (2.9 ) (14.0 ) (8.9 )expense ^(3) Adjusted $ 77.3 $ 79.4 $ 238.3 $ 231.0 segment incomeas a percent ofadjusted 16.9 % 17.8 % 15.3 % 15.1 %revenues ^(4) HVAC REPORTABLE Three months ended Twelve months endedSEGMENT: December December December 31, December 31, 31, 2020 31, 2019 2020 2019 HVAC segment $ 33.9 $ 38.1 $ 93.4 $ 95.4 income Exclude:One-timeacquisition (0.5 ) - (0.6 ) - related costs ^(2) Exclude:Amortization (0.7 ) (1.1 ) (2.9 ) (1.4 )expense ^(3) HVAC adjusted $ 35.1 $ 39.2 $ 96.9 $ 96.8 segment incomeas a percent ofHVAC segment 18.9 % 20.2 % 16.4 % 16.3 %revenues ^(4) DETECTION &MEASUREMENT Three months ended Twelve months endedREPORTABLESEGMENT: December December December 31, December 31, 31, 2020 31, 2019 2020 2019Detection &Measurement $ 20.7 $ 22.5 $ 69.1 $ 81.7 segment income Exclude:One-timeacquisition (0.7 ) 0.2 (0.7 ) (2.0 )related costs ^(2) Exclude:Amortization (5.0 ) (1.8 ) (11.1 ) (7.5 )expense ^(3) Detection &Measurement $ 26.4 $ 24.1 $ 80.9 $ 91.2 adjustedsegment incomeas a percent ofDetection &Measurement 22.4 % 24.0 % 20.9 % 23.7 %segmentrevenues ^(4) ^(1) Represents the removal of the financial results of our South Africabusiness. Note: This business is being reported as an "Other" operating segmentfor U.S. GAAP purposes due to certain wind-down activities that are occurringwithin this business. ^(2) Primarily represents one-time acquisition costs related to the HVAC andDetection & Measurement reportable segments during the three and twelve monthsended December 31, 2020 and additional "Cost of products sold" recorded duringthe three and twelve months ended December 31, 2020 related to the step-up ofinventory (to fair value) acquired in connection with the Sensors & Softwareacquisition and the three and twelve months ended December 31, 2019 related tothe step-up of inventory (to fair value) acquired in connection with the Sabikand Cues acquisitions. ^(3) Represents amortization expense associated with acquired intangibleassets. ^(4) See "Results of Reportable Segments andOther Operating Segment" for applicable percentages based on GAAP results.

SPX CORPORATION AND SUBSIDIARIESNON-GAAP RECONCILIATION - OPERATING INCOME(Unaudited; in millions) Three months ended Twelve months ended December December December December 31, 2020 31, 2019 31, 2020 31, 2019 Operating income $ 34.9 $ 51.6 $ 132.0 $ 110.0 Exclude: Aggregate operatingloss of the South (5.9 ) (7.7 ) (20.1 ) (46.8 )Africa business ^(1) One-time acquisition (2.0 ) (0.4 ) (3.0 ) (4.8 )related costs ^(2) Other operating - - 0.4 (1.8 )income/expense ^(3) Amortization expense (5.7 ) (2.9 ) (14.0 ) (8.9 )^(4) Impairment of (0.7 ) - (0.7 ) - intangible assets Adjusted operating $ 49.2 $ 62.6 $ 169.4 $ 172.3 incomeas a percent ofadjusted revenues ^ 10.8 % 14.1 % 10.9 % 11.3 %(5) ^(1) Represents the removal of the operating results of our South Africabusiness, inclusive of "special charges" of $0.6 and $0.5 during the threemonths ended December 31, 2020 and 2019, respectively, and $0.8 and $3.2 duringthe twelve months ended December 31, 2020 and 2019, respectively. ^(2) Represents one-time acquisition related costs during the three monthsended December 31, 2020 and December 31, 2019 associated with (i) inventorystep-up of $0.3 and $(0.2), respectively, and (ii) integration and transactioncosts of $1.7 and $0.6, respectively, and one-time acquisition related costsduring the twelve months ended December 31, 2020 and December 31, 2019associated with (i) inventory step-up of $0.3 and $2.0, respectively, and (ii)integration and transaction costs of $2.7 and $2.8. ^(3) Represents income/expense associated with revisions to estimates ofcertain liabilities retained in connection with the 2016 sale of the drycooling business for the twelve months ended December 31, 2020 and 2019. ^(4) Represents amortization expense associated with acquired intangibleassets. ^(5) See "Results of Reportable Segments and Other Operating Segment" forapplicable percentages based on GAAP results.

SPX CORPORATION AND SUBSIDIARIESNON-GAAP RECONCILIATION - EARNINGS PER SHAREThree Months Ended December 31, 2020(Unaudited; in millions, except per share values) GAAP Adjustments AdjustedSegment income ^(1) $ 65.1 $ 12.2 $ 77.3 Corporate expense ^(2) (14.7 ) 0.8 (13.9 )Long-term incentive compensation (3.8 ) - (3.8 )expenseImpairment of intangible assets^ (0.7 ) 0.7 - (3)Special charges, net ^(^4^) (1.6 ) 0.6 (1.0 )Other operating expense (9.4 ) - (9.4 )Operating income 34.9 14.3 49.2 Other expense, net ^(^5^) (6.7 ) 3.9 (2.8 )Interest expense, net (4.4 ) - (4.4 )Income from continuing operations 23.8 18.2 42.0 before income taxesIncome tax (provision) benefit ^(^6 3.1 (3.8 ) (0.7 )^)Income from continuing operations 26.9 14.4 41.3 Dilutive shares outstanding 46.151 46.151 Earnings per share from continuing $ 0.58 $ 0.89 operations ^(1) Adjustment represents the removal of (i) operating losses associated withthe South Africa business ($5.3), (ii) amortization expense associated withacquired intangible assets ($5.7), (iii) one-time acquisitions costs of ($0.9),and (iv) inventory step-up charges related to the Sensors & Softwareacquisition of ($0.3).^(2) Adjustment represents the removal of acquisition related expenses incurredduring the period.^(3) Adjustment represents removal of non-cash charges related to theimpairment of certain intangible assets.^(4) Adjustment represents removal of restructuring charges associated with theSouth Africa business.^(^5^)Adjustment primarily represents the removal of non-service pension andpostretirement charges ($7.1), foreign currency gains associated with the SouthAfrica business ($2.0), and a gain on equity security associated with a fairvalue adjustment ($1.2).^(^6^) Adjustment primarily represents the tax impact of items (1) through (5)above.

SPX CORPORATION AND SUBSIDIARIESNON-GAAP RECONCILIATION - EARNINGS PER SHARETwelve Months Ended December 31, 2020(Unaudited; in millions, except per share values) GAAP Adjustments AdjustedSegment income ^(1) $ 203.7 $ 34.6 $ 238.3 Corporate expense ^(2) (44.8 ) 1.7 (43.1 )Long-term incentive compensation (14.0 ) - (14.0 )expenseImpairment of intangible assets ^ (0.7 ) 0.7 - (3)Special charges ^(4) (3.2 ) 0.8 (2.4 )Other operating expenses ^(^5^) (9.0 ) (0.4 ) (9.4 )Operating income 132.0 37.4 169.4 Other income, net ^(^6^) 2.7 (2.7 ) - Interest expense, net (18.2 ) - (18.2 )Income from continuing operations 116.5 34.7 151.2 before income taxesIncome tax provision ^(^7^) (15.8 ) (7.4 ) (23.2 )Income from continuing operations 100.7 27.3 128.0 Dilutive shares outstanding 45.766 45.766 Earnings per share from continuing $ 2.20 $ 2.80 operations ^(1) Adjustment represents the removal of (i) operating losses associated withthe South Africa business ($19.3), (ii) amortization expense associated withacquired intangible assets ($14.0), (iii) one-time acquisitions costs of($1.0), and (iv) inventory step-up charges related to the Sensors & Softwareacquisition of ($0.3).^(2) Adjustment represents the removal of acquisition related expenses incurredduring the period.^(3) Adjustment represents removal of non-cash charges related to theimpairment of certain intangible assets.^(^4^) Adjustment primarily represents removal of restructuring chargesassociated with the South Africa business.^(^5^) Adjustment represents the removal of income associated with revisions toestimates of certain liabilities retained in connection with the 2016 sale ofthe dry cooling business.^(^6^) Adjustment primarily represents the removal of non-service pension andpostretirement charges ($7.8), foreign currency gains associated with the SouthAfrica business ($1.9), and a gain on equity security associated with a fairvalue adjustment ($8.6).^(^7^) Adjustment primarily represents the tax impact of items (1) through (6)above.

SPX CORPORATION AND SUBSIDIARIESNON-GAAP RECONCILIATION - EARNINGS PER SHAREThree Months Ended December 31, 2019(Unaudited; in millions, except per share values) GAAP Adjustments AdjustedSegment income ^(1) $ 69.5 $ 9.9 $ 79.4 Corporate expense ^(2) (13.8 ) 0.6 (13.2 )Long-term incentive compensation (3.5 ) - (3.5 )expenseSpecial charges, net ^(3) (0.6 ) 0.5 (0.1 )Operating income 51.6 11.0 62.6 Other expense, net ^(4) (15.0 ) 11.2 (3.8 )Interest expense, net ^(5) (4.9 ) (0.1 ) (5.0 )Loss on amendment/refinancing of (0.6 ) 0.6 - senior credit agreement ^(6)Income from continuing operations 31.1 22.7 53.8 before income taxesIncome tax provision ^(7) (2.0 ) (8.3 ) (10.3 )Income from continuing operations 29.1 14.4 43.5 Less: Net loss attributable to - - - redeemable noncontrolling interestNet income from continuingoperations attributable to SPX 29.1 14.4 43.5 Corporation commonshareholders Adjustment related to redeemable 5.6 (5.6 ) - noncontrolling interest ^(8)Net income from continuingoperations attributable to SPXCorporation common $ 34.7 $ 8.8 $ 43.5 shareholders after adjustment toredeemable noncontrolling interest Dilutive shares outstanding 45.491 45.491 Earnings per share from continuing $ 0.76 $ 0.96 operations ^(1) Adjustment primarily represents the removal of (i) operating lossesassociated with the South Africa business ($7.2) and (ii) amortization expenseassociated with acquired intangible assets ($2.9).^(2) Adjustment represents the removal of acquisition related expenses incurredduring the period.^(3) Adjustment represents removal of restructuring charges associated with theSouth Africa business.^(4) Adjustment represents the removal of non-service pension andpostretirement charges ($11.0) and foreign currency losses ($0.2) associatedwith the South Africa business.^(5) Represents removal of interest income associated with the South Africabusiness.^(6) Adjustment represents the removal of a non-cash charge associated with anamendment to our senior credit agreement.^(7) Adjustment represents the tax impact of items (1) through (6) above andthe removal of certain income tax benefits that are considered non-recurring.^(8) Adjustment represents removal of noncontrolling interest amountsassociated with our South Africa subsidiary.

SPX CORPORATION AND SUBSIDIARIESNON-GAAP RECONCILIATION - EARNINGS PER SHARETwelve Months Ended December 31, 2019(Unaudited; in millions, except per share values) GAAP Adjustments AdjustedSegment income ^(1) $ 176.5 $ 54.5 $ 231.0 Corporate expense ^(2) (46.7 ) 2.6 (44.1 )Long-term incentive compensation (13.6 ) - (13.6 )expenseSpecial charges, net ^(3) (4.4 ) 3.4 (1.0 )Other operating expenses ^(4) (1.8 ) 1.8 - Operating income 110.0 62.3 172.3 Other income (expense), net ^(5) (5.2 ) 6.7 1.5 Interest expense, net ^(6) (19.2 ) (0.1 ) (19.3 )Loss on amendment/refinancing of (0.6 ) 0.6 - senior credit agreement ^(7)Income from continuing operations 85.0 69.5 154.5 before income taxesIncome tax provision ^(8) (13.9 ) (16.5 ) (30.4 )Income from continuing operations 71.1 53.0 124.1 Less: Net loss attributable to - - - redeemable noncontrolling interestNet income from continuingoperations attributable to SPX 71.1 53.0 124.1 Corporation commonshareholders Adjustment related to redeemable 5.6 (5.6 ) - noncontrolling interest ^(9)Net income from continuingoperations attributable to SPXCorporation common $ 76.7 $ 47.4 $ 124.1 shareholders after adjustment toredeemable noncontrolling interest Dilutive shares outstanding 44.957 44.957 Earnings per share from continuing $ 1.71 $ 2.76 operations ^(1) Adjustment represents the removal of (i) operating losses associated withthe South Africa businesses ($43.6), (ii) amortization expense associated withacquired intangible assets ($8.9), and (iii) inventory step-up charges relatedto the Sabik and Cues acquisitions of ($2.0) .^(2) Adjustment represents the removal of acquisition related expenses incurredduring the period.^(3) Adjustment primarily represents removal of restructuring chargesassociated with the South Africa business.^(4) Adjustment represents removal of charges associated with revisions toestimates of certain liabilities retained in connection with the 2016 sale ofthe dry cooling business.^(5) Adjustment primarily represents the removal of non-service pension andpostretirement charges ($14.0), foreign currency losses associated with theSouth Africa business ($0.6), and a gain on equity security associated with afair value adjustment ($7.9).^(6) Represents removal of interest income associated with the South Africabusiness.^(7) Adjustment represents the removal of a non-cash charge associated with anamendment to our senior credit agreement.^(8) Adjustment represents the tax impact of items (1) through (7) above andthe removal of certain income tax benefits that are considered non-recurring.^(9) Adjustment represents removal of non-controlling interest amountsassociated with our South Africa business.