SPX Corporation (NYSE:SPXC) Q1 2018 Earnings Conference Call - Preliminary Transcript

May 03, 2018 • 04:45 pm ET


SPX Corporation (NYSE:SPXC) Q1 2018 Earnings Conference Call - Preliminary Transcript


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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. Thanks for joining us. With me on the call today are Gene Lowe, our President and Chief Executive Officer and Scott Sproule, our Chief Financial Officer.

A press release containing our first quarter 2018 results was issued just after market close. You can find the release and our earnings slide presentation as well as a link to a live webcast of this call in the Investor Relations section of our website at spx.com. I encourage you to follow along with the slide presentation during our prepared remarks. A replay of the webcast will be available on our website until March 10. As a reminder, portions of our presentation and comments are forward-looking and subject to Safe Harbor provisions. Please also note the risk factors in our most recent SEC filings.

Our comments today will largely focus on adjusted financial results. Specifically, we will focus on core operating results, which exclude the results of the South African projects and we will separately provide an update on those projects.

There are other adjustments to our GAAP results that we will discuss in more detail during our prepared remarks. You can find detailed reconciliations of adjusted figures to their respective GAAP measures in the appendix to today's presentation. Finally, we will be presenting at the Oppenheimer Industrial Growth Conference in New York next week and plan to be on the road visiting with investors later in the month.

And with that, I would like to turn the call over to Gene.

Gene Lowe

Thanks, Paul. Good afternoon, everyone. Thanks for joining us. On the call today, we will provide you a brief update on our overall results, segment performances and end market conditions before going into Q&A.

I will start by touching on some of the highlights from the first quarter. Overall, we had a solid start to the year and we are on track to achieve our full year guidance for 2018. During the first quarter, we experienced solid overall revenue growth in our HVAC and Detection & Measurement segments and our margin expansion continued. We also made progress delivering on the plan we laid out to investors earlier this year to thoughtfully deploy capital towards value-creating acquisitions. We recently announced two attractive transactions that are highly complementary to our existing product lines and a natural fit with our cable and pipe locators business within our Detection & Measurement segment.

The first closed in March and we anticipate the second closing later this quarter. Together, we will see these acquisitions as an opportunity to drive significant incremental shareholder value and an important step towards achieving our 2020 earnings targets.

Turning to our results for the quarter, revenues increased approximately 5% from