SPX(SPXC) - 2024 Q3 - Quarterly Results

Financial Performance - Q3 2024 revenue was $483.7 million, up 7.2$448.7 million in Q3 2023[3] - Q3 2024 net income was $50.2 million, compared to a loss of$20.4 million in Q3 2023[3] - Adjusted EBITDA for Q3 2024 increased by 27.0% to $104.0 million from$81.9 million in Q3 2023[4] - Adjusted EPS for Q3 2024 was $1.39, compared to$1.06 in Q3 2023[4] - Operating income rose to $78.9 million for the three months ended September 28, 2024, compared to$57.7 million in the prior year, reflecting a 36.9% increase[19] - Consolidated revenues reached $483.7 million, reflecting a 7.8$448.7 million year-over-year[21] - Consolidated operating income improved to $78.9 million, a 36.7$57.7 million in the same quarter last year[21] - SPX Technologies reported an adjusted operating income of $97.5 million, up from$75.8 million for the same period in 2023, representing a 28.5% increase[27] - The company reported a basic income per share from continuing operations of $1.10 for the three months ended September 28, 2024, compared to$0.78 in the prior year[19] - SPX Technologies reported earnings per share from continuing operations of $1.39 for the three months ended September 28, 2024, compared to$1.06 for the same period in 2023, marking a 31.1% increase[28] Segment Performance - HVAC segment revenue grew by 15.9% to $335.3 million, with a 9.0$148.4 million, primarily due to lower large project volume[7] - Segment income margin for HVAC increased to 23.9% in Q3 2024 from 20.2% in Q3 2023[6] - HVAC reportable segment revenues increased to $335.3 million for the quarter ended September 28, 2024, up 15.9$289.2 million in the same quarter last year[21] - Detection & Measurement reportable segment revenues decreased to $148.4 million, a decline of 7.0$159.5 million in the prior year quarter[21] - Organic revenue growth for the HVAC segment was 9.0%, while the Detection & Measurement segment experienced a decline of 7.0%[26] Guidance and Future Outlook - Full-year 2024 guidance for adjusted EBITDA is targeted between $410 million and$430 million[10] - Full-year 2024 revenue guidance is narrowed to a range of $1.97 billion to$2.00 billion[10] - The company plans to continue focusing on market expansion and new product development to drive future growth[19] - The company plans to continue focusing on strategic acquisitions and integration efforts to enhance operational efficiency and market presence[32] Balance Sheet and Cash Flow - Total outstanding debt as of September 28, 2024, was $737.8 million, with total cash of$129.4 million[9] - Total current assets increased to $827.6 million as of September 28, 2024, compared to$709.6 million at the end of 2023, representing a 16.6% growth[20] - Goodwill increased to $854.3 million as of September 28, 2024, up from$704.8 million at the end of 2023, indicating ongoing strategic acquisitions[20] - Long-term debt rose to $665.2 million as of September 28, 2024, compared to$523.1 million at the end of 2023, reflecting increased financing activities[20] - Cash and equivalents increased to $124.8 million as of September 28, 2024, up from$99.4 million at the end of 2023, enhancing liquidity[20] - The company’s total assets reached $2,806.0 million as of September 28, 2024, compared to$2,439.7 million at the end of 2023, marking a 15% increase[20] - The total debt at September 28, 2024, was $737.8 million, reflecting an increase from$558.3 million at December 31, 2023[25] Costs and Expenses - Selling, general and administrative expenses as a percentage of revenues for the HVAC segment increased to 23.9%, up 370 basis points from 20.2% in the prior year[21] - The company incurred integration costs of $1.4 million and$6.3 million during the three and nine months ended September 28, 2024, respectively[21] - The company’s long-term incentive compensation expense increased to $4.0 million from$3.4 million year-over-year[21] - The company incurred acquisition-related and other costs of $10.0 million for the nine months ended September 28, 2024, down from$12.0 million for the same period in 2023[32] Cash Flow Activities - Net cash from continuing operations increased to $77.0 million for the three months ended September 30, 2023, up from$45.4 million year-over-year[22] - The company reported a net cash used in investing activities of $277.3 million for the nine months ended September 28, 2024[24] - Business acquisitions net of cash acquired resulted in a cash outflow of$292.0 million for the nine months ended September 28, 2024[24] - Capital expenditures for the nine months ended September 28, 2024, were $28.2 million[24] - Borrowings under senior credit facilities amounted to$610.2 million, with repayments of $462.0 million during the same period[25] - The change in cash and equivalents due to foreign currency exchange rates was an increase of$5.5 million[24]