SPXC - Earnings call transcript Q1 2018

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, ladies and gentlemen and welcome to Q1 2018 SPX Corporation Earnings Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to turn the conference over to Paul Clegg, Vice President, Investor Relations and Communications.

You may begin, sir.

Paul Clegg

Thanks, Nicole and good afternoon everyone. us. joining for Thanks the Executive are our Officer Officer. on President Chief Lowe, and Chief and call me Gene today our Financial With Scott Sproule, press results quarter market A our just close. issued after XXXX containing release was first

during you can the of presentation well prepared slide webcast spx.com. our our live of website as our the slide in encourage a as this to at March find call on replay the to link XX. Investor A You with of and be webcast will earnings presentation our follow release along a until Relations website remarks. I section the available

As a recent provisions. forward-looking Harbor Please are reminder, also note SEC comments filings. factors portions most our and the subject our Safe presentation and to risk of in

on will financial today focus comments largely results. adjusted Our

will GAAP that focus will and projects the prepared projects. There adjustments operating South during detail results, are update those remarks. core discuss we the of our on on results which other results we our Specifically, will exclude in African more separately an provide we to

GAAP detailed You respective to their to in the adjusted appendix figures find reconciliations today’s of presentation. can measures

the week the plan we York like would be call New to Growth to the later over next the with visiting Finally, Gene. Conference with will be in Industrial Oppenheimer that, I investors at presenting on in road And and month. to turn

Gene Lowe

Thanks afternoon, Good everyone. joining for us. Paul. Thanks,

and first on on going XXXX. touching quarter. segment achieve the our full are a On the into results, update by the will call conditions today, the I start start year to had of we to on highlights overall brief provide we and for year solid a Q&A. end we will Overall, performances our track some guidance you from market before

and During the solid our continued. margin our experienced expansion we revenue & HVAC overall first segments in Measurement Detection and growth quarter,

a announced on capital we two locators to value-creating acquisitions. the made laid thoughtfully recently deploy cable investors We our We Detection our that and complementary existing fit are towards our year Measurement highly this plan lines to with delivering to & pipe out natural segment. attractive and within also transactions progress earlier business product

in see Together, as our to The an shareholder achieving acquisitions and value the an this will drive we closed March important second we step quarter. these significant later targets. opportunity closing XXXX first incremental anticipate and earnings towards

value Detection strong $X.XX. the made give to segment. impact which In products. quarter, X% revenues favorable drove for in a revenue I of company. another approximately million, framework. the offset our significant on the driver our and our favorable HVAC during the particularly segment, volumes $XXX to from lower & creation our was to initiatives for quarter which for colder demand increase revenue you And the at Measurement associated results the Measurement, during expected winter within was achieved on overall segments, prior heating Engineered in margin technologies an would communications quarter, The we we increased Turning with HVAC and Detection first weather QX adjusted in partially Solutions like year from most update EPS progress & improved project the we related and markets, saw the performance by

business, offerings very we within In in Everest products high-efficiency wins new introduced position of our QX. continued HVAC in segment, our cooling product during preassembled new innovative the HVAC roadmap our We heating expands and business. our good to strengthen In competitive cooling about recently early an of fundamental feel tower areas our line. our each our we that our

component continued our demand. seeing our our already drone tools we received to our interest were Detection remain are process detection and Within pleased customer And avoidance cooling segment business orders. quarter. initial frontlog business with well Measurement that our positive pleased during activity solution customer we very strong progressing are & have and and trends to in cable are in We and responses growing Solutions our shift GPS-enabled order Engineered is segment, favorable experience the

are to We for exposure forward. continue have projects going to with reduce return our threshold profiles the below that company the we set

segment to continues pursue provide will business simplify, opportunities, how service these on highlight be our to components strong actions improve the significant We solid some to delivering commitment. growth will which higher on misunderstanding continue makes Engineered – in to selectively and to additional focus and said our have to and incremental impact with cooling also value that projects propositions are be business, want that also with sense offers but on We average. the than would process There with are the continuing margins SPX highlight delivering we build been that Solutions we shift we shareholder wanted we clarity segment. expand Today, value. and

margin XXX increase a over have points In segment, By anticipate of around more more our of that X% we annually requirements not Engineered starting the compared revenues business return year, reaching executing operating Our we is growth and to This about line reflecting added as than meet million XXXX significant X% to XXXX, million segment we have to from resume value coming segment X% This approximately XXXX, X% expect basis from Engineered levels. XXXX XXX year. margin margins basis our core low anticipate XXXX increased segment, normalized income. XXXX, deliberate lower improvement. to to margins of we we last to XXX $XX XX% with the points of on value not replaced to top Solutions driven X% of revenues at $XX as in million revenue our project to reduce decline does We internal $XX Solutions to additional decreased actions creation. trajectory. an our were exposure to in

margins, reflecting than the As income for segment favorable the segment basis a the of reminder, core dynamics EBITDA XXX points cash approximately flow margins underlying businesses. are higher

manner Solutions and been simplifying Engineered on higher our our a our capital to increase have in have actions margin have the in company. presence also taking portions deploy focused been to improving clearly growth of scale the thoughtful begun and and platform, we the in While we

off with start segment. a complementary about the efforts acquisition we solid I excited our Detection are particularly highly growth made inorganic proprietary to Measurement announcements and am We our & in

and opportunities customer the to nicely sales we and CUES platform. has Schonstedt magnetic growing magnetic in gives sales important our This CUES, First, acquisition that broad great agreement a the Radiodetection in $X strong an also us fits is position our manufacturer very our the a extend see Inc., & we in Instrument across is It leading locators our with with Detection business. where with Radiodetection our geographic – Also for of Measurement XXXX. equipment product, a of company fit around brands within helps we acquisition annual market and a continue in of leading in segment, recently products. an niche in presence. our announced the million is reach magnetic completed technology. inspection with $XX March, of pipeline which to million Company purchase around great leader Schonstedt natural us locators is revenues

very these some leader position brands can that is in to have market leader the footprint strong Together, the marketing a cable and equipment. and technology CUES create stronger, opportunities inspection we today market. double-digit competitive globally us. locators, pipe of and in product solution complementary smaller clear our growth position most for while growth. and are in and Together, we delivering and SPX’s with creating recognizable leverage a help continue a earnings technology in revenue and have us While pipe for to strengthen strategic we CUES’ inspection global sales earnings more will strength customers inspection attractive acquisitions

expected updated to the do guidance current will guidance, to The a we basis impact forward. acquisitions, but for impact meaningfully full year on not our have our XXXX closed have for be modestly accretive We going to results but these year partial so our contribute once CUES. of will is

our our the full repositioning that impact portfolio reflects of have EBITDA highlight businesses to as When our been well the addition initiatives. acquisition range year like call and will impact operating years Before our expect I I in as for quarter this adjusted our of for spin, points. the approximately later, adjusted and results, the with XX equates we our increase, in mid-$XXX margins Scott, EBITDA would their we call forma effect making Scott And looking by first very contributions strong points anticipate guidance would organic announced than in guidance I’ll review our boost that, recently XXXX margin an the have to turn the the that agreements. financial we full adjusted to on more and at more over these to our from XX% over growth by success or EBITDA changes results we the acquisitions more approximately our X to expand margin of million basis the basis, XX% On than combined after further year turn $XXX the to million. implies pro detail. approximately a XXX had of basis EBITDA higher. which in XXXX In

Scott Sproule

Gene. start net I’ll the quarter. Thanks, our with for results

of adjusted for $X.XX, quarter per XXXX. increase from was a EPS $X.XX share earnings GAAP the XX% our was quarter an first Our on and basis, the

and the non-service results per associated As expense. pension we typically projects with do, our earnings our African exclude South adjusted share

addition, excluded associated the we’ve announced In certain with acquisitions. costs

deferred provisions with Going lastly, quarter our reflect the operational Overall, the any certain transition further forward, overall we the with to costs reform, QX plan we tax of solid for which results we in impact revisions acquisitions. adjusted charge took associated a our pleased are assets have out based And assessment adjust tax of on revalue earnings. performance. out onetime and our to that of to

results on core Moving segment quarter. for the to

margin performance with the Gene As Core was & our segments. & expansion and HVAC growth in driven Measurement in margin quarter revenue the increased to solid XX% segment. compared year, segment income in Detection by XX.X% Measurement our by noted, quarter for driven prior Detection the during

with a quarter our by systems details for organic for currency stronger electrical driven modest will through increase benefit almost revenue This the demand I walk HVAC. you heating boiler Now, and of increase XX%. and by the segment, includes increased The was our Revenue products. an revenue of results XX%. starting

in the we XXXX As QX continued a we products late and winter into pickup heating with demand season. QX cold weather, the heating more call, normalized mentioned reflecting on for saw

our the our we from are revenue In driven the Segment contributing increase. of quarter. more income up competitive in that from anticipated Entering the introduction the results higher prior of impact costs. in price Segment our input seeing led address a was addition the costs the temperatures represented solid and to have we by XX.X% of been year from modest year, results, wins favorable higher margin margins process new increased decline by heating them. primarily driven products some to implementing $X.X to million, to increases material

points. of from increased Adjusted of we acquisition. significantly overall freight, full X.X% year approximately productivity income as quarter, communication quarter. leverage XX%, segment input due currency or input of We Measurement, the for low and this segment incremental year, we increased project of sales. implement increase the revenue the to first on costs basis prior price revenues than measures. points. basis effect Combined, including the and Detection & a margins higher increase the X.X% In were expected. for on higher positive our were including an increases approximately During a when and primarily XX.X% effect impact XXX XX.X% from revenues. offsetting technologies was a was margin additional the anticipate net Sales levels costs, experienced impact products This basis Organically, of we cost Schonstedt XXX increased

would a during segment primarily The of favorable call, we by in the Engineered $XXX of of in margins of of million, business. effect due or to In impact As in new the & the down were exceptionally repeat was noted results an project deliveries, to lower in decreased the not QX standard, of of primarily to Solutions revenue method income revenues about new points segment, African our this million by driven due similar revenues year. revenues was decline QX the and completion and Detection Under partially the approximately mix, to in revenues the our X.X% X%. basis a offset projects, during South shipment percentage mix in excluding we way XXX now timing quarter, transformer the margin we transformer favorable recognize recognition expect instead $X Measurement strong XXXX segment adoption standard. less a February our Segment basis. to very delivery solutions certain decreased on

decline continue segment our the margin year, of in guidance and revenue expect with basis of XXX expansion single Solutions points. line to For digits the to XX high full we in Engineered results

be modeling, quarterly second Engineered expect more this For profitability to half-weighted we Solutions’ year.

overall Regarding cash the were with with usage South African approximately $X.X QX our in of projects, our expectations a line results million. net

these more in results the appendix this You can details on find presentation. of

financial growth. balance approximately million our to to cash of The remains balance are was and which Schonstedt, all-cash for well turning position, of Now effect we $XXX transaction sheet positioned acquisition capital of our deploy includes additional end solid the quarter of our $XX million. an

free acquisition, leverage. which was of anticipate QX $X.X the is the African complete of After we million later X.Xx which core of to where cash quarter, QX, consistent – at the to the X.Xx we we XXXX, being used anticipate we of excludes South remain expect which Our ended flow for projects. end net target leverage range CUES within net this with XXXX. million, generated we X.Xx $X we our In usage being

As February, through at in during $XXX capital we cash deployment taking million for account conversion before flow announced acquisitions expect of XXXX we adjusted into discussed net and capacity the of two of income are have roughly least to our XXX% available quarter. the we targeting

to Turning achieve positioned our well guidance, with are our are QX we results XXXX targets. to annual pleased and our

over year, earnings or to XXXX in per the to range $X.XX For we to full the XX% results. achieve $X.XX of increase continue at the midpoint share an adjusted expect the

somewhat weighted to half compared the more earnings of to due to back expect We timing last activity. year be cadence also project of

will $X.XX we XXXX numbers our our $X.XX. call, With included announcements. XXXX including This of to the announced adjusted transaction. it recent to financial targets, QX into mentioned, have guidance we update Gene actions On of strategic M&A important given related clarity we regard provide close more expectations, we our the M&A our As those expense. the for guidance provided impact EPS amortization we felt when CUES to on

on As by exclude them targets Gene. we share provides midpoint. approximately of EPS our the our the of cash value returns deal-related would of per or that, the have capital stated, creation effectiveness when delivering. are focus impact amortization XXXX at to we we the And increase will $X.XX Revising looking adjusted at that better turn call I $X with view to around back deployment, the a

Gene Lowe

Scott. Thanks,

benefiting were affected product to year. our the and Detection continue quarter project our book HVAC HVAC communications first in are Turning to to and an is update This modestly and XXXX products markets. well our historical healthy and demand, of In average perform our & our remained end cooling, order markets, positioned remains Measurement, order last pipeline commercial but be higher for lines heating well. overall, XX% compared product In beyond. technologies favorable heating sales favorably are from degree averages run-rate strong. In we heating, days continues supported by to strength and below institutional

XX stretched XX weeks for improved incremental our U.S. and for could across to to actions transformers. will on transformers effect investment, to which on has plan Lead to continue potential U.S. from tighten capacity conditions continue infrastructure times signal industry assess market a to certain and benefits transformers, guidance government is infrastructure company. XX medium to favorable The more for Although and the to we spending, more larger in weeks imports XX does monitor pricing. large not in following the from potential we beginning our the fair drive focus industry competition reflect

Lastly, cost I inflation. to about input wanted talk

and businesses. on assess trade general We as in as continue to HVAC primarily to freight steel transformers our and related costs, cooling relations macro pressure risks well

and We achieve freight on targets. which supply the growth we have summary, of actions commodity to year we for our costs, to higher higher effect taking including overall full expect the and chain margin and adjustments first to pricing quarter, profit the mitigate and remain expansion in neutralize actions year. delivered track been we costs In our to input

where with positions shareholder stronger actively build penetrate further deploying leverage and and markets leading dynamics. portfolio areas to to in are our capital growth brand create we or We profit value attractive can channels

liquidity valuation investments goals, capabilities continue sheet. We for our growth strong strategic align substantial criteria will balance prioritize with that and maintaining while prudent to our our

plans focused drive priorities good that, our path growth maximize said capital allocation and about earnings the and Having continue forward. growth sustainable year will initiatives. All-in-all, through feel on capital platforms we organic start double-digit remain Our we to to to building to inorganic evaluate execute our alternative on opportunities pleased and continue value. with our the shareholder to deployment outlined we

Paul. the turn over will I to call back Now

Paul Clegg

go Thanks, to Gene. we Nicole, are ready questions. now to

Operator

Thank question UBS. from comes Damian first Instructions] our Karas [Operator And you. from

now Your line open. is

Damian Karas

Hey, everyone. good afternoon

Gene Lowe

Hey, Damian.

Damian Karas

So the quarter, growth best has park of HVAC the I guys since knocked think it for be this to quarter separation. the out it

looking Just around in heating as both maybe wondering color sort could if in kind you backlog forward piece and here. of a give us transition of cooling orders and

of correct, remainder you Just modestly within of I guidance. fall forward have did flat my that to the – it looks like basically year math to kind up if the

you any color the feeling the how just are So for rest around of year?

Gene Lowe

Damian. Sure,

me Let start.

made it of but of demand boiler I demand demand much low heat characterize of what some our very we that coming normalized actually gains products. you year nice new some two had normal. profile is winter at and we It in warm we electric this winters, is think demand would winters, we participated look felt when where we also and slightly very are where colder below to as me, and on the more a saw the and off

have We really like the team. of And in heating position. So making quarter. our like driver We products feel we growth in substantial big good. the side, our was there. the we and progress our been We our that like

what growth you that’s said quarter at side, markets are with we the you and institutional, consistent X% index those Dodge seeing the you seeing. pretty cooling was last look If X% look are commercial at for in if to we what and

have healthy We frontlogs.

customers a increases. know healthy a lot of now, disruption, all Our But and of don’t moving. are say of know. we focus the a if There a I’d as demand good. we building impact part little I is – bit right That’s big but see are there steel things on is of

feel you about So to add? yes, And do have HVAC good very businesses. anything we our Scott,

Scott Sproule

from things. in of said, couple a if late winter end, driver a back perspective, biggest add to the the remember to season. – of start you in We QX talked which a QX. the And saw of growth as about we Gene Just for was year the heating demand profile kind

XXXX. weighted around we QX So of you the being kind both comment normal slightly the ‘XX to that’s volume looking profile, a overall if across at And – part season. the demand of have Gene’s more for and of a heating look first into late more

Damian Karas

Okay, a the be I situation do you guess mix bit what great. maybe transformers to that X% able that for the little margin at to looking still And gives headwind you could quarter and you on margins year? elaborate on are there going in in confidence X.X% Engineered, segment a was the to

Scott Sproule

I one. that take Yes, will

One, transformers. look talked we at about have always you have customized things impacting that. you when really talk as So mix, two are these about transformers we and

all you when basis profitability at units. – the are a is same not on not So, all looking unit-by-unit the

can occur effect business. a some associated as margins effect of is be and and be swing do And – So portion services a sequential to other or that a a our type business and then side around service did service quarterly but as get installation we actually with And it. bit not the a so shipments would on didn’t would that’s that the of HVAC little be of we our we our some part able other anticipated had huge basis, was because positive winter that of on to negative not those the here, offerings. causing

year-over-year normalize the about XXX created margins. impacts, if on you two them basis decline basis, those point a So in

Damian Karas

expect would to you But Okay. see...

Scott Sproule

Yes.

a filled when production perspective, we out balance of – from for the the the we on perspective So transformers, and at are from year. really from it remember, look year

know those on mix standard, revenue versus So, know with year. the recognition And you the for on really the is. are basis, basis. are recognizing backlog what the an what revenues of basis we new an input We of units cost a activity balance shipment the

going year. will that that think So, of we we service make we sensitivity the in think and the that service we to have don’t balance the kind are level up that that of

will And we organic We profile on we are margins ongoing line because be and going very talked revenue about have then haven’t decline have reloaded project the on we for side the is book good the to sight is what cooling of the normalize process as all there. purposely. the so that we seeing where

have the good last feeling we than for visibility on which business, shipments then component is of of the see order about that frontlog on more year trends are good year. it this service was the there balance know year. work what We a that we second for and half weighted we And the

Damian Karas

Okay, makes And if one I great. one sense. could. quick last That

D&M, for are momentum half in strong tougher you still against So but some the in up quarter, comps here. the back seeing

on maybe projects bidding Thanks. April help of activity fill and seeing the year? how So or customer any of participating in last you fourth that from held larger third just have some up sense a through could quarter those the and demand across are they these give gap businesses,

Gene Lowe

at Damian, two Measurement, & is the is it think always think Gene. and I run-rate, look mean, of in we pieces. projects, of the that. I which Yes, the about of Detection business business. about will kind this when start a on which is is third we two-thirds I about There

expect that bit good is last X% and is to come run-rate profit a quite healthy where a high ran for we And bit to range. business, healthy year, XX% sight in growth We communicated, It our having frontlog. feel sustained year, see our we into frontlog normalized then the think return we we line the much on little about business exceptionally As to growth project, as we very of the said, but does differently a QX. midpoint QX we I had that. fall the also rate, in really this have because of have had around some which more projects up

feel QX So good we we down Measurement Scott? & & to are year are up where in that for would very color, we be and will expect be very Detection we Detection but there. on Measurement, positive And stand feeling and other any target we the about

Scott Sproule

I think really it. that covers

Damian Karas

will great. Okay, pass I it on. Thanks, guys.

Gene Lowe

Thanks, Damian.

Operator

Thank you. And Brett from our Research. from next question Vertical comes Linzey

Your line is now open.

Brett Linzey

Hi, good evening guys.

Gene Lowe

Brett. Hi,

Brett Linzey

are just or move you to actions balance was how into I through price in a in? about layer the inflation number year? And the price cost, price good. they want the the cost balance cost of QX Do of through Are come you color is the that year? we would point as then to and thinking be said Any believe drag. that I in basis gross? a specifically Hey, net back HVAC. input XXX Is

Scott Sproule

I Scott. one. take that is this Yes, will

being is in offset bigger the alluding on what happened so year. effect year. is would remarks, planned So compression pricing and the not when year material were freight QX we both are would probably And I see anticipated later impact, QX in are going in that coming costs by the higher quarter. about in one input pricing be the already side actions was talking and to freight, have here was from we did of into the as the net, What knew opening that in that in we net some to with the we of kind take

incremental also pricing recovery the the we also and – at balance – other And so that across get the other and actions have improvements year some the year. guidance looking margins back are productivity we that for of full we maintain to. committed costs secondarily other the the achieve some will already announced And to segment help are

Brett Linzey

planning the terms are for how tariffs in and And related are that? then thinking for you impact you somewhat just the XXX of China, the what’s in business about

Scott Sproule

as seeing already at I feel preparing from we at related as we taking what are of costs that input I the least are probably to of looking to so raise already And plans further. and the in is are that. something looking globally very action. we prices far part Well, higher see uncertainties markets, And material, some think like we if any

Brett Linzey

obviously there Okay. the just in But more if mean, pain selectivity, isolate you focus. in selectivity just are can as Solutions, the detail drag going were just sales, maybe – through what then And you quarter you some shift of segment one you us was Engineered give there? on any terms project I in to the

Scott Sproule

Yes.

of an really I from was drivers organic the bigger it of think one perspective, the really business.

to you if for be So to the going it’s – net accounting transformers, going be impact, ignore change of it’s driver out really the in you the and cooling. kind here process

of timing is associated selectivity and bit in of a So the so projects. with neighborhood of call or little decline the XX% it

Gene Lowe

digit we decline is modestly because and grow. expected to high-single had communicated anticipated transformers Yes,

bulk the we expect so that the really projects would selectivity being top line. on of And decline

Scott Sproule

Yes.

And for that’s so – QX. just that’s

decline that was that really selectivity. book. happening – And a we happening the it execution talking about clear, just reload are at be from we look is project to the was backlog execution it’s the you full organic when that decline So in all order it year it’s XXXX and – just perspective, didn’t

Brett Linzey

got I Okay, guys. pass will it. Thanks, it.

Gene Lowe

Thanks, Brett.

Operator

our from Thank question Susquehanna. from Barry comes Robert you. next And

now is open. Your line

Robert Barry

evening. Good guys. Hey,

Gene Lowe

Robert. Hi,

Robert Barry

it introductions to the growth how in to contributed the say much Is possible HVAC? new product

Gene Lowe

I showed don’t think have that. we

number above-market high in the some products and and little a give and the of feel is strategy of I there that. say on that We where color think nice I rate the by a good growth was about commercial what side, the heating will saw driven – I in is bit efficiency our really the could we new to grow.

On nice I we would say the traction. did cooling have side,

specifics. We be in of the specifics, I is got healthy. to for the Our We feel and is a there breaking our continues it to week. terms Paul, platform like orders this we portion, don’t primary our driving innovation innovation but here even Everest know Everest material that our more growth see down

Paul Clegg

It’s that. available not share not definitely documents. any We public in

one. we So I that will think on pass

Robert Barry

Yes. I traction. sense It mean, is a I doing really mean, get with to a magnitude. like of there am have sounds good order you of just new products. been trying I lot

have point products projects adding of of we You a magnitude it long-term that more of be I get two sense just or kind us order the – given talking of could trying new potentially extra growth an are than successful. am rates. Are that? these of all or to

Scott Sproule

the introductions side. gave at I you when the that today product we and are think comments looking we heating focused new really around the are

stages up the in that kind of portfolio the are targeting earlier and commercial the of market. high-efficiency We rounding

We mean, at I is from season look a quarter, season, positive to better entering the heating portfolio some we the as seeing the further heating of driving be growth. going demand ‘XX have it XXXX And instructions precision vast majority the when is which are you will come. results. the

XXXX-XXXX. seeing to really So an we going are you of impact of more in this get start as

Robert Barry

your we mode Got pipeline digesting it. at now? your this look in does the sense or of What’s are capacity And M&A point? more how

Scott Sproule

that point within And as look where cash QX? year and will will to we end kind at will at further the we be on the at we that, will flows us. time, of Yes. looking but you our close in guidance the use of throughout de-lever CUES we have transaction, Obviously, at to if our so still then range be that

announced we on and absorb it be the corporate by that. internal end And Detection capacity logical further so heating side balance space, there we balance focused the side space, to transactions. that integrations. in teams acquisitions year, Obviously, well. acquisitions at we our cooling Measurement or with of management on management ample do management of to then of we there the anywhere sheet. sheet capacity And our team a the strong focused to & midpoint have then HVAC have and so giving area. would able is focus be will is capacity on other the capacity be in as business, – capacity And or our the that these the the the think about us manage transactions Even below So the through to ample range

Gene Lowe

would believe very think the platforms. we are the out And we of HVAC say platforms early we attractive think the building and innings detection I strategy are in these in and that and frontlog, we

have but end, M&A pipeline. strategy announced obviously on a front we is yes, a side. two, there So the We the announced leader

on will be by cautious, our capacity capital also of prudent, about who years, added both terms gentleman report have to worked strategy very, and we financial will we the from integration ensuring with the but on like positive our our the we very feel we have the President who is continue obviously have careful, leader feel we very the plans efforts Operations. Randy Data, side, side strong And experienced integration over leading a of very in integration We integration. deploying director to here, we a [indiscernible], have execution

Robert Barry

we revenue the advance XX, make lastly just Maybe the for the just and model it. adoption? And Slide but ASC are we to about apologize how Got for question, I in the on adjustments you segment? to could this this help thinking meant interpret accounting are us

Scott Sproule

Yes. the I any models. adjusting wouldn’t be of

let impacted you rev which me the just of account So from rec, specifically materially transformers recognition. change about for most think when how in impact revenue – they

For was the basis, basis don’t a the quarter, we year recognition difference it’s new. or the any benefit full the $X.XX to material from but between accounting, revenue whether expect us, on about difference, any a old it

around just shipments are how of year – within the really that’s activity. now timing we costs versus So, revenue input recognizing which is or and producing more

Robert Barry

it. Got

that and the a benefit and the like next was quarter out it – or... is nets will three then negative $X.XX So in it in $X.XX this

Scott Sproule

what on anticipating improvement in Engineered are Solutions. we am saying overall part the as margin improvement overall of within No, I some transformers the year, is

different a bit to So end the due the two differently by of accounting, but of out basis play up. little it that year, will the catches

Robert Barry

Okay. the it you what But in you by $X.XX. quarter, that Is helps said?

Scott Sproule

Around yes. there,

Robert Barry

you. Okay, thank

Operator

any time. Thank am further no would Communications, now to further at turn I back to you. And remarks. for Investor like questions President, Clegg, call Vice Relations showing the I this and Paul

Paul Clegg

much. look joining speaking quarter. very I call to you appreciate you Thanks and next to again forward all the

Operator

thank you today’s in for your conference. does today’s program. gentlemen, Ladies This participation and conclude

great You may Everyone, all disconnect. day. have a

SPX (SPXC) 6 May 182018 Q1 Earnings call transcript