spx flow investor relations

And so we believe that China will continue to be a good market for us, and again the pipeline that Jaime referred to and that we've mentioned in the prepared remarks, a lot of that does continue to come out of Asia-Pacific, and specifically China. OE project pipelines tied to customer capex remain active with accelerating development in opportunities converting to orders. Net income attributable to SPX FLOW, Inc. During the quarter, our Board of Directors initiated a formal review of strategic alternatives, including a possible sale merger with the continued execution of our stand-alone strategy. Segment margins were down approximately 60 basis points as transitory supply chain conditions offset the leverage we experienced on our structural cost reduction programs and organic growth. We see an attractive pipeline of opportunities in our Nutrition & Health equipment and remain excited about this part of the business. Investor Contact:Scott GaffnerVP, Investor Relations and Strategic Insights704-752-4485Investor@spxflow.com, Media Contact:Melissa BuscherChief Communications & Marketing Officer704-449-9187Melissa.buscher@spxflow.com, Lone Star Contact:Christina PrettoManaging Director, Communications and Public Affairs212-849-9662mediarelations@lonestarfunds.com. And with that, I'll turn it over to Jaime to cover the financial review of the third quarter. 10 stocks we like better thanSPX FLOWWhen our award-winning analyst team hasa stock tip, it can pay to listen. So 40% of our revenues now. 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 nutrition, health and precision solutions markets. So we've put more pricing opportunity into the market. The Nutrition and Health segment provides a range of products for homogenizers, pumps, valves, separators and heat exchangers. And then just -- just to be crystal clear. So, you're spot on and as we mentioned in the prepared remarks, I would first start with our supply chain and our productivity programs in our factories are making good progress and we did have some headwinds associated with inflation in the supply chains that really more than offset our original start of the year plans, but our supply chain teams did a great job on executing in what they had in their slight to achieve improvements, but again inflation just more than offset that. ", "SPX FLOW has a talented global team, innovative products and substantial runway for growth that make it well positioned to deliver continued success," said Donald Quintin, President, Lone Star Opportunity Funds. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. Adjusted operating income margin continue to show meaningful year-over-year improvement and came in at 12.9%, up 160 basis points. Precision Solutions achieved significant growth in North America, driven by strong short cycle product demand and higher shipments of original equipment capex related products. The sequential decline in Precision Solutions orders was primarily due to seasonal trends consistent with prior years in EMEA and timing related to capex projects for mixers in North America. The company's management is authorized to determine the timing and amount of the transactions based on its evaluation of market conditions, capital alternatives, and other factors. And then the follow-up question is when you talked about the 10 deals in the funnel, it just struck me as I would think, things -- the M&A decisions, larger scale M&A decisions would essentially be on hold while you're in the strategic review. Ingersoll Rand Inc. (NYSE:IR), a global provider of mission-critical flow creation and industrial solutions, today confirmed that on June 10, 2021, it made an all-cash non-binding proposal to the Board of Directors of SPX Flow, Inc. (NYSE:FLOW) to acquire SPX Flow for $85 per share (the "Proposal"). SPX FLOWhas approximately$1.5 billionin annual revenues with operations in more than 30 countries and sales in more than 100 countries. Thanks, Scott, for the introduction. Our third quarter results are highlighted by significant operating leverage, strong price cost realization and improved mix of revenues. Discounted offers are only available to new members. "With the transaction complete, we're moving full speed ahead, working closely with the Lone Star . Citi, RBC Capital Markets, LLC, and BofA Securities Inc. served as financial advisors to Lone Star, andGibson, Dunn & Crutcher LLP and Kirkland & Ellis LLP served as legal advisors. As a result, backlogs were down at the start of Q3 in these regions and as expected, revenues were lower. Thank you. Marc Michael -- President and Chief Executive Officer. Please go ahead. Operating margins reached a record 12.9% in the quarter and improved significantly by 160 basis points. SPX FLOW, Inc. (NYSE: FLOW), a leading provider of premier process solutions, announced today that it completed the sale of its Power and Energy segment to funds managed by affiliates of Apollo Global Management, Inc. with net proceeds totaling approximately$400 millionafter adjustments, fees and taxes. SPX FLOW had approximately$1.4 billionin 2020 annual revenues and has operations in more than 30 countries and sales in more than 140 countries. Management believes these non-GAAP measures 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 measures they can use to evaluate our management of the business from period to period. Principal risk factors that may impact our performance are identified in our most recent SEC filings. The progress we made has put us on track to surpass our expectations in year one of our three-year plan, giving us confidence our strategy is working and then it will generate significant long-term value for our shareholders. People & Culture. I'll be around all day if you have any questions. But the other piece to it is, our teams have to be able to continue to meet market lead times and meet customer expectations on deliveries, which we consistently hear is one of the most significant buying decisions for our products. So there's some implications of certain areas from an 80/20 lens that we've stepped away from. You guys had planned on pulling price as a lever from a value-based strategic perspective. So that's all part of our ability to continue to shift the mix. Lone Starinvests on behalf of its limited partners, which include institutional investors such as pension funds and sovereign wealth funds, as well as foundations and endowments that support medical research, higher education, and other philanthropic causes. SPX FLOW, Inc. is a provider of process solutions for the nutrition, health and industrial markets. The words "expect," "anticipate," "plan," "target," "project," "believe" and similar expressions identify forward-looking statements. This filing is related to the previously announced plan to spin-off SPX's Flow business. Deane Dray -- RBC Capital Markets -- Analyst. NYSE:FLOW CEO Compensation May 5th 2021 A Look at SPX FLOW, Inc.'s Growth Numbers . So the areas that we're looking to accelerate growth and our emphasis in the greatest way and so the investments are going to those -- to those particular product lines and factories that produce those products. This growth creates significant future aftermarket and service opportunities. And with that, I will turn it back over to Marc for some closing remarks. ", "SPX FLOW has transformed its business and made important progress executing against our strategic plans, and we believe this transaction with Lone Star is an exciting culmination of those efforts for our shareholders," said Marc Michael, SPX FLOW President and CEO. We look forward to working withLone Starto complete the transaction and delivering significant, immediate and certain value to our shareholders. Lone Star, founded byJohn Grayken, is a leading private equity firm advising funds that invest globally in real estate, equity, credit and other financial assets. We believe we are now on pace to exceed the three year targets we outlined at the beginning of the year. So we closed last year out at about 25.5% SG&A. And that's part of our value-based pricing strategy as we look at what's happening in the markets where we can really realize that. In the fourth quarter, organic revenue is expected to be modestly lower versus prior year due to certain specific items that we highlighted in previous updates, which consists of timing concentrated in Nutrition & Health systems and selectivity in certain categories in the Precision Solutions segment, emphasizing higher margin opportunities. A replay will also be available on our website later today. How Fast Is the Cash at Flow International? One, I'll say that our expectations for Q4 are supported by the backlog that we see opening up the quarter and then the order performance that we've already seen year -- our quarter-to-date here in December, I'm sorry, here in the fourth quarter in October. OnDecember 12, 2021, the Company entered into a merger agreement with an affiliate of Lone Star Funds ("Lone Star"), wherein upon closing,Lone Starwill acquire all of the Company's outstanding common shares in exchange for a cash purchase price of$86.50per share. So revenues quarter-to-quarter can be lumpy as you think about China. 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 nutrition, health and industrial markets. Morgan Stanley & Co. LLC is serving as exclusive financial advisor to SPX FLOW and Winston & Strawn LLP is serving as its legal advisor. As we continue to leverage 80/20 principles, we fully expect to generate a higher quality mix of orders to support both top line growth and margin expansion. Under this authorization, the company may repurchase shares in open market, privately negotiated or other transactions. Can you bridge how much of that is kind of mix versus -- we're seeing a lot of structural cost reductions, just wondering with the key drivers there are looking sequentially? Yeah, Matthew, maybe one other observation I'll make is, in China a lot of our business there, I will start with Nutrition & Health is in the systems business, so right. Of note, we expect gross margins to be up approximately 450 basis points in Q4 versus prior year. Third quarter performance improved as markets continue to recover and our strategic plans based on 80/20 principles accelerate. We're also implementing strategies and capabilities to increase top line growth at a pace we anticipate will be ahead of projected market growth within our target sectors. I believe about this time last year on this call you were asking us about where we were in relative SG&A margin. , . Lone Star, founded by John Grayken, is a leading private equity firm advising funds that invest globally in real estate, equity, credit and other financial assets. ", "We intend to operate prudently through this turbulent and difficult time, managing elements within our control to deliver for our customers and drive continuous improvement. Okay. To learn more about SPX FLOW, please visit www.spxflow.com. How you've overcome some of those headwinds to still be on track to meet or exceed that mid-teens operating margin in '23 target? To learn more about SPX FLOW, please visitwww.spxflow.com. The definitive proxy statement will be sent to the stockholders of SPX FLOW and will contain important information about the proposed transaction and related matters.
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