SPXC - Earnings call transcript Q4 2021

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Operator

[Call starts abruptly]

Paul Clegg

Thank you, operator and good afternoon, everyone. Thanks for joining us. With me on the call today are Gene Lowe, our President and Chief Executive Officer; and Jamie Harris, our Chief Financial Officer. A press release containing our Fourth Quarter and Full Year 2020 Results -- 2021 Results was issued today after market close.

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

safe harbor As recent portions to forward-looking our and risk and the presentation SEC our disclosures most are Please a related COVID-XX comments provisions. factors to reminder, of including our note also the subject in pandemic. filings,

Our comments results. financial adjusted focus today will on largely

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

our are no are adjustments. press African discontinued South as for in non-GAAP now accounted part for our all presented operations operations of our release, noted periods being longer and As

eliminated, previously. segment As reporting three from been such, framework other segments bringing our our two GAAP has to

pension certain Our and discrete for charges adjusted liability results exclude certain legacy items, items, amortization items, acquisition-related tax investment non-recurring adjusted items. certain other gains, expense, non-service

Virtual we And Cap conducting will with Spring meetings over Conference coming over Finally, weeks, turn Sidoti's at in virtual the March. the I'll with including Gene. that, investors call be Small to

Gene Lowe

afternoon, Good for joining us. thank Paul. everyone Thanks, you and

for plans. well to year quarter that us segment guidance for balance solid our fourth the provide quarter the On the the start year I'll call our growth We'll results sheet today, we'll provide also you results of with year. on We from consolidated some with and with a brief and update closed XXXX. the highlights and full the the XXXX. positions achieve and

was SPX transformational a Corporation. Looking for XXXX back, year

This strategic higher-growth our road and solutions. execute to value HVAC largest We simplified Detection & three Measurement and allowed focus the accomplishments. significant continue on and higher-margin, our segments. to We us business SPX completed sale closed transformer on transaction our strengthened map and of acquisitions creation several and on

in expect and our diversity before continued continuous We our we capital and new advanced progressed people also and any our digital In and develop continued account invest inclusion XXXX, deployment. initiatives. solid growth and to into taking further improvement initiatives, ESG

environment continues prevents and execute and demand purpose with the market drive remains current strong challenges, our several end to While to success. team focus

to We to the are value well positioned successes our journey reporting throughout forward look creation and additional continue year.

segment, segment increased our we segment to Measurement to QX performance EPS strength on Detection margin Turning updated faced primarily reflects supply full our income year-on-year while and in a basis HVAC guidance. pressures, year these results; Despite our headwinds our related and our & chain. exceeded

inspection as as achieve traction CoolSpec market leap Measurement Dealer segment, and a the for to end this to high-traffic safer and HV including tool for for platform, customers, solutions tool our safety win underground utility & premium We better location customer Detection areas. a heating robotic we innovative progress approaches to to and less intersections value roadwork resolving feedback our platform Weil-McLain creation HVAC several a selection AC several in strong fronts. our boiler design assets of favorable about others. utility selecting is well unintended solution their efficiency market to and invasive between different cross customer our new in product receive platform, innovative to scale interaction. high-efficiency prestigious and our continues basis experience was improve concerns XXXX. XXXX to in In approaches We solid In our solutions made needs Design us cooling cooling continues assessing hydronic In boiler introduced and Turning engineers. the introduced to in believe continued framework; proper on only positions Ecotech Award forward and with to our gain number when and our of

run building important And an on to inclusion Jamie very million continuous meaningful I'll further for inorganic year $XXX growth to opportunities On and made The three potential adding turn for continued now progress about critical I results. the these for investments key XXXX our digital, rate synergies initiatives year, in these these feel we niche is and see that we as front, strides additional last are improvement, position good diversity approximately ESG. our acquisitions closed the integration strengthen broaden of revenue. to well we markets. our sustainable to businesses our value. considerable of review is going financial also attractive in and three call in fronts and

Jamie Harris

Thanks, Gene.

fourth the EPS adjusted For quarter, was $X.XX.

Africa this mentioned, inventory to a FIFO, in South no decision our adjustments. operations first discontinued In longer harmonize we the made for Paul is accounting it is the of a with LIFO. part QX, quarter businesses method to from our remaining and As converting

quarters and prior restated prior to segments Accordingly, this is method all across we Our company. reflect consistent now the and change. years within have

and they do liabilities addition drivers lower-than-normal in modeling lower we to assumptions charges long-term both near-term balances review resulting from agreement asbestos a with or have projected These lower fixed at items in tax uses, which In cash the future periods. XXXX April. over rate this the our not estimates decline fourth best rate excluded will liabilities reflect and in quarter, legacy which charges revision time. period benefited from which revisions In the discrete reflect I to liabilities in Also, of and associated resulting XXXX. these interest out due on were tax rate costs to to debt XXXX, a began our lower quarter effective segment swap of momentarily, our

largely to growth and from to decline organic only we quarterly results. Measurement corresponding results in and in also with for For these appendix Organic benefit for presentation. table were with comparison QX, the adjusted year. in and is results our our offset With our XXXX orders compared high-level & were A purposes, XXXX by revenue have regards items our adjusted Detection prior HVAC. backlog, reflecting available despite changes strong the higher income and operating acquisitions of modestly the XXXX

continuous experienced drivers investments to improvement in HVAC. deliveries Measurement other increase an segment in by Detection performance-related expense higher Detection in P&L also We a of & up Reviewing In within segment Measurement, compensation. project were the our strong growth. revenue and primary our initiatives with and year-over-year results. corporate margins & related acquisitions QX, made QX offset were decline partially in

XX. organic as platforms by by evidenced related For quarter. the backdrop decline our revenues Cooling of supply [ph] but components. X% X% Cincinnati the a remained ownership of X%, segment, certain both production due partially down were which heating X%. December production constraints offset declined of and significant with demand for constrained revenues were demand for revenues and strong availability Fan X.X our an both to to HVAC backlog on strong businesses of we largely Heating the The cooling against acquired month of declined approximately

During and with are were HVAC continued Overall and basis was increases most labor chain QX, backlog, points, to Cooling $XXX margin X.X due particularly Adjusted respectively. availability of our increase of and Adjusted year-over-year, backlog on decline were to supply The heating a XXX impacted was the including basis Together, project demand growth Total and COVID and ending the both of our up products. constraints. from benefit XXXX. as segment related which shipments Cincinnati and compared these XX.X% high Sealite by chain the Heating ECS. acquisitions points, our platform, Organically, Americas well certain inflation addition XX% increase largely to for significant X.X% the in X.X from up of was and and income income segment the business revenues our an rise cases. in higher and Detection sales for parts, component for impact as constraints well HVAC and respectively. and transportation Measurement, levels grew labor million, face backlog prior bookings of exacerbated largely and XX boilers XX% acquisitions. organic costs. production supply for The Based due & Fan. was with decreased positioned and remain to very cost year. productivity margin

As utility of term a experienced we ULC our as some lower discussed U.K. result has case. last business quarter, a rate revenue near

growth during time. revenue decline, including of half the see million, short-term in attractive Organically, growth most XX%. as We & for over Measurement Detection business we and the a this XXXX to the second benefit The we believe revenue $XXX up Overall, continue was was beyond. great XXXX. opportunities and backlog is ending among Despite positioned the to well improve expect approximately acquisitions. addition this segment of backlog strategic

Fan the approximately sheet us positive XX% million full flow net the liquidity impact during inorganic in million flow now excludes Overall, cash with million, investments. $XX cash income. South the of for approximately loan, quarter. which the This cash was we year of cash the purchase our benefits and Net of Africa position our organic million. realized of strong with in conversion includes adjusted Cincinnati to We associated $XXX and year. of a includes our at representing financial $XXX through of tax which our balance free of Adjusted Turning net continue are positions $XXX position growing end ended term quarter QX. the to of

opportunities, a prospects. several have acquisition of robust active including We pipeline

we growth for value investments, displacement our confident While authorization monitor in price execute we our and appropriate. sustained in to consider will using are on stock repurchase our share if ability we significant will

As to of XX-K. million, included stock of the in $XXX a details has up our Board our reminder, are repurchases authorized which

and frontlog labor leading conditions year segment seeing rate chain expect first income outlook see our full the this supply strong we Tight higher XXXX, prior revenue HVAC, and Measurement, & with year flat Regarding and income activity. year. run solid into are strong in demand quarter. driving with Along have Detection in full In for remains we us we growth. to acquisitions, continued the project the anticipate compared QX,

results. we year throughout first in see QX, on the from identified which In XXXX, We a compared to revenue CommTech, year weighted in in heavily was demand businesses prior lower that is had anticipate particular, CommTech both based revenues for profile atypical. customers. the quarter ULC revenue However, solid strengthening

As first and margins due for segment prior of a income the incremental businesses. to quarter high Detection result, approximately than anticipate the company, the year project we total the Measurement be XX% lower to

we segment XXXX, year-over-year in of balance the income. For increases expect

an to to before estimate midpoint XX% we The share reflects $X.XX year, in the total and revenue year-on-year range of XX%. approximately per full approximately of capital XX% per deployment in increase of adjusted of $X.XX the earnings share. growth For $X.XX

off be In our cash addition, that to loan. of $XXX if could use eliminated million term per $X.XX approximately pay we expense share of there interest our part are of

$X.XX to We a $X.XX this capital midpoint expect of opportunities. to deploy better operational and decided term of would is believe we have our purposely because power. we This loan not representation a acquisition pay off bring earnings that to earnings for our

midpoint Our supply full XXXX. but year EPS strong constraints continuing demand reflects with early overall in

various labor scenarios revenues for & project and the Our as of range well as timing Measurement. chain reflects in supply Detection

As forward. we moving we about to the expect tighten through year, we would remain our this excited range. outlook Overall, business progress

aggressively and to address in customers. are marketplace the continue challenges We supply our with we believe winning

always, appendix for find in our to on of the I today's Gene slides. markets. end will to call the guidance As you more turn details our a discussion now back will

Gene Lowe

most the with strong Thanks, rate see Detection favorable strength we demand demand end differences to Measurement, a & HVAC, across geographically in notable run In markets see level -- for continue our with products most of there trends. to Jamie. Overall, continue are regions. In Americas.

more EBITDA more our billion clear We a seeing growth year XXXX project-oriented and a our softer earnings with to summary, XX% we balance attractive revenue performance business overall, SPX a orders supports platform. and to XXXX of very activity although sheet Our plan in customer approximately In and a our bookings are plans. we the CommTech achieve in with focused, targets which solid continue higher-growth and entered businesses strong higher-margin game $X closed margins. see

I'll supply progress capital we chain, We remain believe continuing throughout well now year. and through creation we value anticipate any call strong on We initiatives forward over solid to positioned manage turn trends the prior Paul. growth our benefit XXXX key are initiatives And more deployment back for reporting the labor continue and years headwinds in and to our for demand to inflation. to to to continue to successes are advancing come. Current make on and look

Paul Clegg

we Operator, go questions. to Thanks, Gene. ready are to

Operator

Oppenheimer. [Operator the Our comes first of of Instructions] from line question Blair Bryan

please. question, Your

Bryan Blair

guys. evening, Good Thanks.

relative think about you You in offered midpoint very useful detail What progression think on the how -- how would progression? labor the we the dynamics. of about QX if HVAC. factors, we in QX your supply to those and QX frame Contemplated guide, constraints should through

Jamie Harris

Jamie. Bryan, this is

we've improvement had and think a Omicron So on, I I therefore, over far, supply early was absenteeism cases -- so most a the some like We XXXX, in and think, -- big in normal. country -- chain. everybody experienced in moderate above seen, the uptick in that the we

I do moderate some some see labor. We supply we in think chain. see moderate improvement improvement in

a and taking trying of supply terms actions setting managing process up lot are We and in -- our to improve of chain. aggressive

us. So we impacts it think do

We to continuing as year also lessen that the on. goes see

mentioned we prepared do As comp tough in we in our our a year. business from remarks, CommTech have prior

the upside the we a -- specific imagine, rate of as breaks see as saying upside improve on it, as the first also would the enter the the Therefore, nice guidance, we question saw like. having half if of would might we'd has midpoint, versus we probably productivity specifically all. say we see the what to on the But in lot year. the cooling. it look do downside you our us to year, half labor. that. were you of little opportunities to in have got continuing supply cooling think second our year But primarily We -- heavily as bit been And case look we got weighted it of to U.K. of first probably ULC. customer matter. than the normal, some we your throughput The in opportunities in if more we with if chain see embedded take I There's and well, risk But a broader forward we've

We still are some improvement seeing but it's tough.

few heating, on are of see component we We challenges year, And do as go that way we through. a that course. like have still that parts start great And the to past seen weeks. huge the in think down a cases are the the continue -- working are businesses We [ph] we're com we backlog over to in have country significantly the various improving.

Gene Lowe

a And other side. Yes. few just from comments my

Chain done and pretty months is have think looking businesses, the you and across of S&OP your your manufacturing processes, do we I you really supply -- the reorder seeing next I straightforward points, what I and the council system, And have best Council both is at got with that with, we there. chain managing the think, The day. And job business well. analytics, of order, you're at as looking nice clearly, really out Supply making our safety stock, all improvement. as diversity moderate several know, robust our of things, at are things practices what actually single as look looking every robust manufacturing a your bill and still applying they've and we sure we combined team we choppy vendors, on. say, would all plan at over of material waiting items some

the out it supply is direction say, would -- feel still is I about choppy good it So there, and our going. the on has I we're something much stronger chain operations side. actually gotten we think But

Bryan Blair

appreciate That more I constraints on makes Are cooling. the cooling isolated labor to clarify To sense. or process generalized? color.

Gene Lowe

biggest the Kansas trend on I'd is impact we a year, say over one, we're in as process really I'd have seeing. countermeasures. we're last really, on there know, of HVAC that say, the And facility we've you put cooling, would the the in And seeing negative had cooling our say, main been not that package is called business. a one I year. number what

seeing in for seen direction some And initiatives. number a things improvement four months, the of five we month-over-month right the going modest. there. past we've are nice or have We But actually

of area seen biggest impact SPX. of we've So that's probably labor across that the

Bryan Blair

staying what's on and looking baked growth should And business for three revenue in rates Fan two, normalized year in about And think one margin? Cincinnati HVAC, Understood. margin how to year out we that margin? potential for

Paul Clegg

Yes.

this Bryan, So is Paul.

point. being good a throughout we Fan, it break Cincinnati here, $XX probably But million to a up million I'd from year. talked roughly revenue the then perspective, starting evenly For about modeling $XX

weren't implying of they they would that margin, to we margin segment be In terms accretive currently. eventually said that

a model little you'd below the So something the average year. segment for bit

Bryan Blair

of clear potentially to is it's it And forward? where we that fair. as going that's going Or platform think enough that's likely Okay, within another a of extension business sit should cooling HVAC?

Gene Lowe

now and lot Right overlap Yes. cooling with we a of be we see than think that it can actually is lot larger today. a

we design of you test engineer fans the those without. our and know, has air movement both As majority towers blowers every and and cooling and ourselves, those with cooling sell and those, tower vast and

know our So movement. we

the at And we We industrial, the channel, there. overlap there. heavy look if the both then in real commercial our some more have light side on a technology then synergy also industrial and of lot go-to-market, of in our see you

then we four it would growth say it know -- out and grows, in So way we nice future. right right Detection & don't really cooling it not the product six But think I'd I in how I one area it it's out would we're our platforms it, that take now, anticipating platforms Measurement. there. a breaking our think Whether as I the call break heating, off and I separately. have about table now, the of

Bryan Blair

Got it. again. Thanks, Good.

Gene Lowe

Thanks, Bryan.

Operator

Thank you.

of from Damian comes Karas UBS. question next Our

open. line is Your

Damian Karas

Hey, on good guys. HVAC. question Follow-up evening

lower of Maybe this you're exact could the prices price cost, margin tailwind kind of the you midpoint margin Maybe your elaborate incrementals. You much guys and you kind year? of improvement or year margin aren't factors? later for year, whether guide. on expecting just too just kind expecting could that's this out expectations steel about from spell if at XX% potentially so Talk the any right mix

Jamie Harris

Damian, Jamie. is this

into slightly headwind I ever the if I question 'XX, So back think so we about other leads had a you mean asked on you specifically price/cost HVAC. into let with because price/cost. me dollars it go start with

in implication As businesses. in in of cost of, the let's That the in effect for terms HVAC year and price. last company. up call you like XX us capturing really price/cost put pricing in times late that basis some total probably quite in negative The XXXX went one better the a really dramatically on of We had a embedded October it, know, late positioned points took it year. our couple so

than fourth -- into If will given that's in just the price quarter, is large projecting we We That that as XXXX, have of new seeing that as last margin from is compressing of we're the think that's both we or the of that some will we being you more the a just call regain price do price/cost 'XX. little it a quarter have cost may price margin enter things perspective And have of business, a it the still our increases things. backlog reflective that roll the or that we for for year that and late couple embedded we year. as we're 'XX, up price cover a in couple said, late got have the first well increases planned a we bit. fourth quarter some in third

we So backlog. pricing, year some as about ahead compression we about new we through of I regain as that are have but new still work the from we'll the business, you and the think think the to we last -- lost price have think it some may definitely it,

Damian Karas

know expense. paydown are some Jamie, on when How to haven't it. capital thinking might about then of mentioned down pull your ask or you deals buyback timing, interest if gut got the wanted capital you you any you or deployment deal Gene, crystal trigger debt about And less on you in I some they'll give on got possibly before of I execution. the Okay, allocation. think taking this terms And relatively of year whether maybe update on done? front? comment you kind have a and an ball, just pipeline you can't feeling But just acquisition you could the don't be active obviously timing more

Gene Lowe

done We M&A basically million of that's And a from the approximately I over added feel our Jamie deals side last couple at we growth $XXX added take if question. very as billion million XX are said $XXX that's XXXX of the we that's like or three have $XXX where today. We've to XXXX. of look side capital revenue. go $X don't past you we years, on Overall in the $X.XX bolt-ons with and $XXX you SPX over I'll we plan, good. with around allocation million of and of start know, million we're why million acquisition then the broader billion $XXX organic in so year, revenue M&A, going to Damian, let and year.

also at the we say us, already we're activity. rate. that say of see I amount of of lot pipeline and in proprietary run we I'd there's activity. see So would what fair a front a

today, $X as opportunity know the So growth. I to of approximately where have overall if and, invest we opportunity look at we billion you sit in

multiples. The us we're target I is would measurement some be But would and Pricing it's I'd say high larger be that we would would good still a seeing think detection on But particularly with this, SPX how of very market accomplish looking -- market. cheap very say, rate. attractive to be a particularly of our it's the opportunity our an with not run we'll very XXXX feel I in opportunities. is managed plan. pricing? that our and hey, front question businesses, be we've strategy the for at already our goal. scale, say aggressive we're able plan you're running, ahead and if to it's logical some way at I

Why M&A Jamie the side. over to that's here? to it going hand keep So don't I

Jamie Harris

Yes.

at of our that to me remarks, and that company, P&L growing We available, out pieces we up the So you where we every if higher if of watching to could larger in going constantly front of through balance to We and present out today, structure $X from dislocation, and internally mean being. have the $XXX that take Gene we're what at believe our capital The because we day very in in of we at put about granted a reposition conversation know. capital against were think the relates what do a we we our We billion interest that transaction, reminder, areas. strong type we we do just margin we energy acquisition -- market That of have take of all, allocate lot and good In is a had to see I of perspective, We there's get would really Were bad how the set do with. company don't to today is of being the the the wanted to market we it said, But wanted it to the effectively. do to I there's sold see company, a are it higher capital transformers million decision do and that first in some in if not we to well. of particular, our did do looking good time being and kind to we're we what stock we look $X.XX organically. growth, story. sheet from dislocated move that action growth with we Board have, I down Having note use definitely a to purposely made we things that when those if the reposition all against at of I we think joined a do one the are it very Damien, to. the mean that attracted the a that. stock not with acquisition a in in front. we authorization opportunities want of would it redo want what support as it. particular we choosing market. that the just out and we pay singled do we down to kind business will, it it working being because I is has But That we time a probably buybacks think choice redeploy extend think in to said, as the make. we're is valuation as value see that. not when want or around kind we

said, forefront it strategy being kind for something capital of growth buybacks are our an eye I'd is right our number So one of now. to But on we've leave thoughts. is in allocation got the our our sight clearly saying keep M&A objective on. That

Damian Karas

Makes for sense. Good. Thanks thoughts. luck, guys. the of Best

Gene Lowe

Thanks, Damian.

Operator

Thank you.

comes Our Ferazani Steve Sidoti. next of question from

Your open. is line

Steve Ferazani

little everyone. evening, Good I on M&A the follow questioning. to up wanted a bit

to improve ask always but margin the on sort the of more know HVAC were and profile previous the some acquisitions and you'd But want side you the Just I you've growth the D&M noted be as those said you side. still profile looking on make of of D&M acquisitions.

fits better why progression over you this of years? and sense think within sort So trying couple the of Fan Cincinnati a of get to I'm next how just

Gene Lowe

said at in have Steve, data have up. we been X more And have before I done, on and we've look D&M three in some acquisitions actually been bolt-ons synergy via the think HVAC these that margin get you the They're around predominantly we XX all if that revenue them you synergies right cost XX%. think can we these. but if were some aggregate of and XX.X% synergies around also

feel have to accretive these our overall margin been So actually we profile. very like

be to very the terms our attractive difference D&M opportunities. a in HVAC accretive profile. there's lot also on I attractiveness And they've think that'd that the I of of some or and little next year. to Fan, would to our at above opportunities. segment this modestly say Cincinnati I bit the With would a regards under I anticipate be average segment average year. for growth of been very think We don't see HVAC actually

feel acquired actually there so processes started really for a we've and get that growth about in very we XX that I very and forth. of up being Cincinnati one going so December But started So area all like Fan end the integration I'm good will to on in particular. excited and us forward

Steve Ferazani

capital companies constraints. of thinking working working a constraints? built balance on really where cost the inventory And you're given you're then, the given cost in higher inventory just and chain sheet have know of dollar supply carrying? just general that on inventory Certainly in comfortable how XXXX about and the question on -- build And think related to lot is about a current where -- the supply that capital. you're with dollar or Trying Great. the chain is up inventory that that to

Gene Lowe

Couple things Steve. of there,

think always of and specifically running XXXX to about initiative you managing I and parts component in given so stock minimizing out clearly working want a of mean working not and rightsizing going effective actually we obviously. if off actually lowering the management MBRs chain it supply down. the loosely as from to or context an but be it's kicked to it or have carrying capital it effectively taking our we advantageous We capital encouraged it working we I it are need so because much to out buying to more than use having is safety think There's I capital. A of working working capital is more it there. 'XX. call lot would challenges in on capital, times really of emphasis

you the two a beginning you at about balance things, some generally of initiative the have also that an the What of in see rightsizing the the it's reflective we're inventories because of probably don't when balance numbers. on the And inventory I And we it you look and higher environment but sheet period-over-period, at is it more in. that cost is given think acquisitions. in want so look most sheet increase to of

Steve Ferazani

Thanks [ph].

Operator

[Operator Walter of Instructions] next Liptak question from Seaport. Our comes

Your line is open.

Walter Liptak

guys. Hi, good evening

margins segment mix margin wonder ask was leverage were the that talk terrific. it the I looked if nice about they to business little operating about that just wanted leverage? through, a I was or also So again really in to just was you and coming margin? it some could operating had bit The and D&M. of accretive the acquisitions You

Jamie Harris

great much. Walter, we're question. That's this is It's obviously something focused Jamie. on very a

TCI particularly Genfare by business really number CommTech. a at the in transportation business you quarter in We business our -- project locator I our businesses, of had quarter. look think had if strong also But driven it's particular, a and our things.

talk and flows that. pushed seeing You've that because many incremental the heard projects quarters us get out down we in margin of that are

had I incremental the gross because projects in coming TCI. working goes that those or quarter. to of bottom of months A to fourth several things think we was quarter together, what been several those quarters lot margin We and -- for the line had great same fruition the we've came of projects. a Genfare line margin for saw to on some the and

in a some quarter. the of sometimes But of over long the reflection it's think I good think little the power see profiles So attractive the in we model. given volatile really you got to run, the Unfortunately, it's margins margin it.

Walter Liptak

I there great. log business. a the up D&M or front with for think it will was that flow D&M's comment backlog How nice you the front-loaded, in XX% and I Okay, was Is organically XXXX? have in the And around back-loaded? about project margin guys wondering a the guidance work year.

Paul Clegg

this Walter, Paul. is

of is we've CommTech given But and expect part first progress year, also at to going we remarks, be prepared would seen the in that see to more year-over-year. the of about talked challenge least first margin obviously a ULC we the in lift throughout quarter because from project dynamic. the those you log the the a perspective as of that, As

CommTech cycles, little in get year. that to bit a in because or to we be year the late in tends later [indiscernible] As the year typically of the our business in budgetary

higher you So expect the would quarter. to that margin a fourth in be

Walter Liptak

some We've on things. come M&A. see at good. valuations down starting one concerns seeing coming valuations? just And How Are to the Ukraine company are or down supply chains sounds valuations you you or I'll other all? the with private the market Okay, in a companies' final about here ask seen

Gene Lowe

just on don't my change lot you week-to-week see perception; month-to-month too I a think that of or rapidly.

I know, as we've think that been you very careful. Walt,

the synergy pricing. Our blended price XX.Xx, very before careful of so been neighborhood we've and about is that's in

I do lot see deals larger see a in larger deals, think particularly D&M particularly in you higher you -- pricing. will

in that teens we seen. high You're mid-teens some or have very cases talking

So think of lot I don't seen I've change. a

to reset market that good a think in public -- in will down it's seen change the to model, the happen. -- ultimately if strategy us pricing? we think flow haven't good there's good a think cause a ultimately that and going value have we private I would particularly deviations on a creation could any forward. point, I But however, with that the that multiples markets,

Walter Liptak

for Okay, great. questions. Thanks taking my

Gene Lowe

Walter. Thanks,

Operator

back for this remarks. I'd call At Clegg turn Paul you. Thank the Sir? closing time, to like over to

Paul Clegg

further team all you Please the Thank next questions. Okay. to and reach we the have in for joining call quarter. to free you out today us on look meantime if to our you forward feel IR updating

Operator

today's And participating. you call. this Thank concludes for conference

You may disconnect. now

SPX (SPXC) 24 Feb 222021 Q4 Earnings call transcript