SPX FLOW, INC. (NYSE:FLOW) Files An 8-K Results of Operations and Financial Condition

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SPX FLOW, INC. (NYSE:FLOW) Files An 8-K Results of Operations and Financial Condition

Item 2.02. Results of Operations and Financial Condition.

On May 3, 2017, SPX FLOW, Inc. (the Company) issued the press
release attached as Exhibit 99.1 hereto and incorporated herein
by reference.
The press release incorporated by reference into this Item 2.02
contains disclosure regarding organic revenue decline, defined as
net revenue decline excluding the effects of foreign currency
fluctuations. The Companys management believes that this metric
is a useful financial measure for investors in evaluating its
operating performance because excluding the effect of currency
fluctuations, when read in conjunction with the Companys
revenues, presents a useful tool to evaluate the Companys ongoing
operations and provides investors with a tool they can use to
evaluate the Companys management of assets held from period to
period. In addition, organic revenue growth (decline) is one of
the factors the Companys management uses in internal evaluations
of the overall performance of its business.
The press release also contains disclosure regarding net debt,
defined as total debt net of (1) debt balances under our purchase
card program and (2) cash and equivalents in excess of $50.0. Net
debt is presented in a manner consistent with the definition of
certain related defined terms within our senior credit facilities
and utilized by the Company in the calculation of certain
financial covenant ratios. The Company views this measure, when
read in conjunction with its comparable GAAP amount, as giving
investors a useful tool to assess the financial health and
leverage of the Company. Additionally, the Companys management
uses this metric as a measure of the Companys leverage.
The Company is executing a global multi-year plan to transition
our enterprise into an operating company (“global realignment
program”), to which it expects to incur costs of approximately
$40 million in 2017 toward restructuring actions (“special
charges”). To aid investors who seek comparability
period-to-period, the Company, in the press release incorporated
by reference into this Item 2.02, adjusted certain metrics to
exclude these charges and certain other charges (benefits). These
metrics include disclosure of:
(i)
adjusted operating income, which is defined as operating
income (loss) excluding special charges;
(ii)
adjusted net income (loss), which is defined as net loss
attributable to SPX FLOW, Inc. excluding special charges,
net of tax;
(iii)
EBITDA, which is defined as net income (loss) attributable
to SPX FLOW, Inc. excluding income tax provision (benefit),
interest expense and depreciation and amortization;
(iv)
adjusted EBITDA, which is defined as EBITDA excluding
special charges, and
(v)
adjusted diluted earnings (loss) per share (EPS), which is
defined as diluted earnings (loss) per share excluding the
dilutive EPS effects of special charges, net of tax.
The Company views each of the above measures, when read in
conjunction with their comparable GAAP number or amount, as
giving investors useful tools to assess the health and prospects
of the Company. Additionally, the Companys management uses these
adjusted metrics as measures of the Companys performance.
The press release also contains disclosure regarding free cash
flow from (used in) operations, defined as net cash from (used
in) operations adjusted to include capital expenditures. In
addition, the press release contains disclosure regarding
adjusted free cash flow from (used in) operations, defined as
free cash flow from (used in) operations, adjusted to exclude
cash spending on restructuring actions, capital expenditures
related to expansion of a manufacturing facility, and pension
payments to retirees, net of tax benefit. The Companys management
believes that free and adjusted free cash flow from (used in)
operations are useful financial measures for investors in
evaluating the cash flow performance of multi-industrial
companies, since the measures provide insight into the cash flow
available to fund such things as equity repurchases, dividends,
mandatory and discretionary debt reduction and acquisitions or
other strategic investments. In addition, although the use of
free and adjusted free cash flow from (used in) operations is
limited by the fact that these measures can exclude certain cash
items within managements discretion, free and adjusted free cash
flow from (used in) operations are factors used by the Companys
management in internal evaluations of the overall performance of
its business.
None of the non-GAAP measures described above is a measure of
financial performance under accounting principles generally
accepted in the United States (GAAP), and should not be
considered a substitute for, and should be used in combination
with, the GAAP number or amount from which it is reconciled.
Non-GAAP measures used by the Company may not be comparable to
similarly titled measures reported by other companies.
Refer to the tables included in the press release for the
components of each of the Companys non-GAAP numbers or amounts
referred to above, and for the reconciliations of these numbers
or amounts from their respective comparable GAAP measures.
The information in this Report is being furnished and shall not
be deemed filed for the purposes of Section 18 of the Securities
Exchange Act of 1934, as amended, or otherwise subject to the
liabilities of that Section. The information in this Report shall
not be deemed incorporated by reference into any filing under the
Securities Act of 1933, as amended, except as shall be expressly
set forth by specific reference in such filing.
Item 9.01. >Financial Statements and Exhibits.
Exhibit
Number
Description
99.1
Press Release issued May 3, 2017, furnished solely to
Item 2.02 of Form 8-K.
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
SPX FLOW, Inc.
Date: May 3, 2017
By:
/s/ Jeremy W. Smeltser
Jeremy W. Smeltser
Vice President and
Chief Financial Officer
EXHIBIT INDEX
Exhibit
Number
Description
99.1
Press Release issued May 3, 2017, furnished solely


About SPX FLOW, INC. (NYSE:FLOW)

SPX FLOW, Inc. is a global supplier of engineered solutions. The Company engineers, designs, manufactures and markets products and solutions used to process, blend, filter, dry, meter and transport fluids with a focus on original equipment installation, including turn-key systems, modular systems and components, as well as aftermarket components and support services. The Company operates through three segments: Food and Beverage; Power and Energy, and Industrial. The Company’s product portfolio includes pumps, valves, mixers, filters, air dryers, hydraulic tools, homogenizers, separators and heat exchangers, along with the related aftermarket parts and services. It supports global industries, including food and beverage; oil and gas; power generation, including nuclear and conventional; chemical processing, and compressed air and mining. Its brands include Anhydro, APV, Bran+Luebbe, Gerstenberg Schroeder, LIGHTNIN, Seital and Waukesha Cherry-Burrell.

SPX FLOW, INC. (NYSE:FLOW) Recent Trading Information

SPX FLOW, INC. (NYSE:FLOW) closed its last trading session down -0.51 at 36.01 with 193,582 shares trading hands.