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IDEX Corporation$152.92$2.181.45%

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 IDEX Reports Record Second Quarter Results; Raises Full Year Guidance; Q2 Sales up 11 Percent Overall and 9 Percent Organically; Q2 Reported EPS was $1.38 with Adjusted EPS of $1.40
   Tuesday, July 24, 2018 4:05:00 PM ET

LAKE FOREST, Ill.--(BUSINESS WIRE)-- IDEX Corporation (NYSE: IEX) today announced its financial results for the three month period ended June 30, 2018.

  • Orders were up 9 percent overall and 8 percent organically
  • Sales were up 11 percent overall and 9 percent organically
  • Reported operating margin was 23.3 percent with adjusted operating margin of 23.6 percent, up 180 bps
  • Reported EPS was $1.38 with adjusted EPS of $1.40, up 30 percent
  • Full year adjusted EPS guidance raised to $5.27 to $5.35


Orders of $639.5 million were up 9 percent compared with the prior year period (+8 percent organic, -1 percent divestiture and +2 percent foreign currency translation).

Sales of $634.4 million were up 11 percent compared with the prior year period (+9 percent organic and +2 percent foreign currency translation).

Gross margin of 45.3 percent was up 50 basis points compared with the prior year period primarily due to productivity initiatives and volume leverage, partially offset by higher engineering costs.

Operating income of $147.8 million resulted in an operating margin of 23.3 percent. Excluding $2.0 million of restructuring expenses, adjusted operating income was $149.8 million with an adjusted operating margin of 23.6 percent, up 180 basis points from the prior year period adjusted operating margin. Adjusted operating income drove adjusted EBITDA of $169.4 million which was 27 percent of sales and covered interest expense by 15 times.

Provision for income taxes of $29.6 million in the second quarter of 2018 resulted in an effective tax rate (ETR) of 21.7 percent, which was lower than the prior year period ETR of 26.1 percent primarily due to the enactment of U.S. tax reform in 2017.

Net income was $107.1 million which resulted in EPS of $1.38. Excluding restructuring expenses, adjusted EPS of $1.40 increased 32 cents, or 30 percent, from prior year period adjusted EPS.

Cash from operations of $120.7 million led to free cash flow of $109.7 million, which was up 40 percent from the prior year period and 101 percent of adjusted net income. The increase in free cash flow was primarily due to higher earnings and lower income tax payments.

The Company repurchased 147 thousand shares of common stock for $20.5 million in the second quarter.

 
“Strength across the board led to record second quarter operating results as we again achieved quarterly all-time highs in orders, sales, operating income and EPS. We delivered strong organic order and sales growth of 8 percent and 9 percent, respectively. Organic revenue growth was strong in all three segments as FMT delivered 10 percent growth, while HST and FSDP both achieved 8 percent growth. Even with robust revenue growth, we still built $5 million of backlog during the quarter, led by organic order growth of 18 percent in FSDP and 7 percent in FMT. Adjusted operating margin increased 180 basis points with margin expansion across all three segments.
 
We continued our commitment to fund our most promising organic opportunities across the Company and our organic growth over the past several quarters has been outstanding. We have now delivered eight consecutive quarters of organic order growth and six consecutive quarters of organic sales growth. M&A remains a priority for the Company and our acquisition funnel is healthy. In June, we purchased the intellectual property assets of Phantom Controls, which will accelerate our water-flow management capabilities within our Fire Suppression businesses. Additionally, just yesterday, we completed the acquisition of Finger Lakes Instrumentation, which will fill an important strategic gap and be a fantastic complement to our existing IDEX Health & Science operations. Over the last several years, IDEX Health & Science has brought together innovative technology companies in fluidics, microfluidics, as well as optical illumination and detection to better serve the fast-growing needs of life science instrument developers. Finally, we distributed $33 million in dividends to shareholders and repurchased 147 thousand shares of common stock for approximately $20 million.
 
Based on our record first half operating results and continued strength across the portfolio, we are raising full year adjusted EPS guidance to $5.27 to $5.35, with third quarter EPS of $1.29 to $1.32. We are also increasing full year organic revenue growth expectations to approximately 7 percent, with 6 to 7 percent expected in the third quarter.”
 
Andrew K. Silvernail
  Chairman and Chief Executive Officer
 

Fluid & Metering Technologies

  • Sales of $242.8 million reflected a 10 percent increase compared to the second quarter of 2017 (+10 percent organic, -2 percent divestiture and +2 percent foreign currency translation).
  • Operating income of $71.2 million resulted in an operating margin of 29.3 percent. Excluding $0.3 million of restructuring expenses, adjusted operating income was $71.5 million with an adjusted operating margin of 29.5 percent, a 240 basis point increase compared to the prior year period primarily due to higher volume and productivity initiatives.
  • EBITDA of $76.4 million resulted in an EBITDA margin of 31.5 percent. Excluding $0.3 million of restructuring expenses, adjusted EBITDA of $76.7 million resulted in an adjusted EBITDA margin of 31.6 percent, a 200 basis point increase compared to the prior year period.

Health & Science Technologies

  • Sales of $227.4 million reflected an 11 percent increase compared to the second quarter of 2017 (+8 percent organic, +1 percent acquisition and +2 percent foreign currency translation).
  • Operating income of $52.6 million resulted in an operating margin of 23.1 percent. Excluding $1.1 million of restructuring expenses, adjusted operating income was $53.7 million with an adjusted operating margin of 23.6 percent, a 100 basis point increase compared to the prior year period primarily due to higher volume and productivity initiatives.
  • EBITDA of $63.1 million resulted in an EBITDA margin of 27.8 percent. Excluding $1.1 million of restructuring expenses, adjusted EBITDA of $64.2 million resulted in an adjusted EBITDA margin of 28.3 percent, a 20 basis point increase compared to the prior year period.

Fire & Safety/Diversified Products

  • Sales of $164.3 million reflected an 11 percent increase compared to the second quarter of 2017 (+8 percent organic and +3 percent foreign currency translation).
  • Operating income of $45.9 million resulted in an operating margin of 27.9 percent. Excluding $0.3 million of restructuring expenses, adjusted operating income was $46.2 million with an adjusted operating margin of 28.1 percent, a 300 basis point increase compared to the prior year period primarily due to higher volume and productivity initiatives.
  • EBITDA of $49.5 million resulted in an EBITDA margin of 30.1 percent. Excluding $0.3 million of restructuring expenses, adjusted EBITDA of $49.8 million resulted in an adjusted EBITDA margin of 30.3 percent, a 310 basis point increase compared to the prior year period.

For the second quarter of 2018, Fluid & Metering Technologies contributed 38 percent of sales, 42 percent of operating income and 41 percent of EBITDA; Health & Science Technologies accounted for 36 percent of sales, 31 percent of operating income and 33 percent of EBITDA; and Fire & Safety/Diversified Products represented 26 percent of sales, 27 percent of operating income and 26 percent of EBITDA.

Corporate costs, excluding restructuring expenses, increased to $21.6 million in the second quarter of 2018 compared to $18.4 million in the second quarter of 2017, primarily driven by a $2.2 million stamp duty in Switzerland associated with the restructuring of intercompany loans as well as higher acquisition costs.

In June 2018, the Company acquired the intellectual property assets of Phantom Controls, which serve to complement our existing businesses within the Fire & Safety/Diversified Products segment. The operational capabilities and innovative pump operations of Phantom Controls combined with the water-flow expertise within our existing fire businesses improve ground safety operations and also reduce operational complexity during mission critical response.

In July 2018, the Company acquired Finger Lakes Instrumentation, a technology leader in the design, development and production of high speed/sensitivity CCD and CMOS cameras and related automation for the astronomy and life science markets. Finger Lakes Instrumentation, with annual revenue of approximately $10 million, will operate within the Health & Science Technologies segment.

The Company supplements certain U.S. GAAP financial performance metrics with non-U.S. GAAP financial performance metrics in order to provide investors with better insight and increased transparency while also allowing for a more comprehensive understanding of the financial information used by management in its decision making. Reconciliations of non-U.S. GAAP financial performance metrics to their most comparable U.S. GAAP financial performance metrics are defined and presented below and should not be considered a substitute for, nor superior to, the financial data prepared in accordance with U.S. GAAP. There were no adjustments to U.S. GAAP financial performance metrics other than the items noted below.

  • Organic orders and sales are calculated excluding amounts from acquired or divested businesses during the first twelve months of ownership or divestiture and the impact of foreign currency translation.
  • Adjusted operating income is calculated as operating income plus restructuring expenses.
  • Adjusted operating margin is calculated as adjusted operating income divided by net sales.
  • Adjusted net income is calculated as net income plus restructuring expenses, net of the statutory tax expense or benefit.
  • EBITDA is calculated as net income plus interest expense plus provision for income taxes plus depreciation and amortization. We reconciled EBITDA to net income on a consolidated basis as we do not allocate consolidated interest expense or consolidated provision for income taxes to our segments.
  • Adjusted EBITDA is calculated as EBITDA plus restructuring expenses.
  • Free cash flow is calculated as cash flow from operating activities less capital expenditures.
 

Table 1: Reconciliations of the Change in Net Sales to Organic Net Sales

 
Three Months Ended
June 30, 2018
Six Months Ended
June 30, 2018
FMT   HST   FSDP   IDEX FMT   HST   FSDP   IDEX
Change in net sales 10 % 11 % 11 % 11 % 8 % 11 % 13 % 11 %
- Net impact from acquisitions/divestitures (2 )% 1 % % % (2 )% 1 % % %
- Impact from FX 2 % 2 % 3 % 2 % 3 % 3 % 4 % 3 %
Change in organic net sales 10 % 8 % 8 % 9 % 7 % 7 % 9 % 8 %
 
 

Table 2: Reconciliations of Reported-to-Adjusted Operating Income and Margin (dollars in thousands)

                   
 
Three Months Ended June 30,
2018 2017
FMT HST FSDP Corporate IDEX FMT HST FSDP Corporate IDEX
Reported operating income (loss) $ 71,228 $ 52,569 $ 45,882 $ (21,848 ) $147,831 $ 60,029 $ 46,294 $ 37,197 $ (18,387 ) $125,133
+ Restructuring expenses 343   1,123   267   255   1,988            
Adjusted operating income (loss) $ 71,571   $ 53,692   $ 46,149   $ (21,593 ) $ 149,819   $ 60,029   $ 46,294   $ 37,197   $ (18,387 ) $ 125,133  
 
Net sales (eliminations) $ 242,800 $ 227,403 $ 164,300 $ (143 ) $ 634,360 $ 221,182 $ 204,409 $ 147,983 $ (208 ) $ 573,366
 
Reported operating margin 29.3 % 23.1 % 27.9 % n/m 23.3 % 27.1 % 22.6 % 25.1 % n/m 21.8 %
Adjusted operating margin 29.5 % 23.6 % 28.1 % n/m 23.6 % 27.1 % 22.6 % 25.1 % n/m 21.8 %
   
Six Months Ended June 30,
2018   2017
FMT   HST   FSDP   Corporate   IDEX FMT   HST   FSDP   Corporate   IDEX
Reported operating income (loss) $ 137,394 $ 104,375 $ 85,436 $ (42,691 ) $ 284,514 $ 117,842 $ 88,532 $ 69,823 $ (35,393 ) $ 240,804
+ Restructuring expenses 486   2,182   367   595   3,630   1,566   3,028   73   130   4,797  
Adjusted operating income (loss) $ 137,880   $ 106,557   $ 85,803   $ (42,096 ) $ 288,144   $ 119,408   $ 91,560   $ 69,896   $ (35,263 ) $ 245,601  
 
Net sales (eliminations) $ 475,133 $ 448,478 $ 323,473 $ (400 ) $ 1,246,684 $ 437,952 $ 404,088 $ 285,430 $ (552 ) $ 1,126,918
 
Reported operating margin 28.9 % 23.3 % 26.4 % n/m 22.8 % 26.9 % 21.9 % 24.5 % n/m 21.4 %
Adjusted operating margin 29.0 % 23.8 % 26.5 % n/m 23.1 % 27.3 % 22.7 % 24.5 % n/m 21.8 %
 

Table 3: Reconciliations of Reported-to-Adjusted Net Income and EPS (in thousands, except EPS)

  Three Months Ended
June 30,
  Six Months Ended
June 30,
2018   2017 2018   2017
Reported net income $ 107,126 $ 83,844 $ 206,084 $ 159,743
+ Restructuring expenses 1,988 3,630 4,797
+ Tax impact on restructuring expenses (494 )   (873 ) (1,529 )
Adjusted net income $ 108,620   $ 83,844   $ 208,841   $ 163,011  
  Three Months Ended
June 30,
    Six Months Ended
June 30,
2018   2017 2018       2017
Reported diluted EPS $ 1.38 $ 1.08 $ 2.65 $ 2.07
+ Restructuring expenses 0.03 0.05 0.06
+ Tax impact on restructuring expenses (0.01 )   (0.01 ) (0.02 )
Adjusted diluted EPS $ 1.40   $ 1.08   $ 2.69   $ 2.11  
 
Diluted weighted average shares 77,704 77,320 77,722 77,107
 

Table 4: Reconciliations of EBITDA to Net Income (dollars in thousands)

                   
 
Three Months Ended June 30,
2018 2017
FMT HST FSDP Corporate IDEX FMT HST FSDP Corporate IDEX
Reported operating income (loss) $ 71,228 $ 52,569 $ 45,882 $ (21,848 ) $ 147,831 $ 60,029 $ 46,294 $ 37,197 $ (18,387 ) $ 125,133
- Other (income) expense - net 511 (463 ) (45 ) (53 ) (50 ) 447 924 583 (1,582 ) 372
+ Depreciation and amortization 5,707   10,090   3,597   176   19,570   5,987   11,994   3,652   201   21,834  
EBITDA 76,424 63,122 49,524 (21,619 ) 167,451 65,569 57,364 40,266 (16,604 ) 146,595
- Interest expense 11,140 11,304
- Provision for income taxes 29,615 29,613
- Depreciation and amortization 19,570   21,834  
Reported net income $ 107,126   $ 83,844  
 
Net sales (eliminations) $ 242,800 $ 227,403 $ 164,300 $ (143 ) $ 634,360 $ 221,182 $ 204,409 $ 147,983 $ (208 ) $ 573,366
 
Reported operating margin 29.3 % 23.1 % 27.9 % n/m 23.3 % 27.1 % 22.6 % 25.1 % n/m 21.8 %
EBITDA margin 31.5 % 27.8 % 30.1 % n/m 26.4 % 29.6 % 28.1 % 27.2 % n/m 25.6 %
   
Six Months Ended June 30,
2018   2017
FMT   HST   FSDP   Corporate   IDEX FMT   HST   FSDP   Corporate   IDEX
Reported operating income (loss) $ 137,394 $ 104,375 $ 85,436 $ (42,691 ) $ 284,514 $ 117,842 $ 88,532 $ 69,823 $ (35,393 ) $ 240,804
- Other (income) expense - net 645 (1,060 ) (3,666 ) (418 ) (4,499 ) 477 1,067 619 (2,099 ) 64
+ Depreciation and amortization 11,401   21,479   7,371   373   40,624   11,631   23,258   7,229   408   42,526  
EBITDA 148,150 126,914 96,473 (41,900 ) 329,637 128,996 110,723 76,433 (32,886 ) 283,266
- Interest expense 22,140 22,856
- Provision for income taxes 60,789 58,141
- Depreciation and amortization 40,624   42,526  
Reported net income $ 206,084   $ 159,743  
 
Net sales (eliminations) $ 475,133 $ 448,478 $ 323,473 $ (400 ) $ 1,246,684 $ 437,952 $ 404,088 $ 285,430 $ (552 ) $ 1,126,918
 
Reported operating margin 28.9 % 23.3 % 26.4 % n/m 22.8 % 26.9 % 21.9 % 24.5 % n/m 21.4 %
EBITDA margin 31.2 % 28.3 % 29.8 % n/m 26.4 % 29.5 % 27.4 % 26.8 % n/m 25.1 %
 

Table 5: Reconciliations of EBITDA to Adjusted EBITDA (dollars in thousands)

                   
 
Three Months Ended June 30,
2018 2017
FMT HST FSDP Corporate IDEX FMT HST FSDP Corporate IDEX
EBITDA $ 76,424 $ 63,122 $ 49,524 $ (21,619 ) $ 167,451 $ 65,569 $ 57,364 $ 40,266 $ (16,604 ) $ 146,595
+ Restructuring expenses 343   1,123   267   255   1,988            
Adjusted EBITDA $ 76,767   $ 64,245   $ 49,791   $ (21,364 ) $ 169,439   $ 65,569   $ 57,364   $ 40,266   $ (16,604 ) $ 146,595  
 
Adjusted EBITDA margin 31.6 % 28.3 % 30.3 % n/m 26.7 % 29.6 % 28.1 % 27.2 % n/m 25.6 %
   
Six Months Ended June 30,
2018   2017
FMT   HST   FSDP   Corporate   IDEX FMT   HST   FSDP   Corporate   IDEX
EBITDA $ 148,150 $ 126,914 $ 96,473 $ (41,900 ) $ 329,637 $ 128,996 $ 110,723 $ 76,433 $ (32,886 ) $ 283,266
+ Restructuring expenses 486   2,182   367   595   3,630   1,566   3,028   73   130   4,797  
Adjusted EBITDA $ 148,636   $ 129,096   $ 96,840   $ (41,305 ) $ 333,267   $ 130,562   $ 113,751   $ 76,506   $ (32,756 ) $ 288,063  
 
Adjusted EBITDA margin 31.3 % 28.8 % 29.9 % n/m 26.7 % 29.8 % 28.2 % 26.8 % n/m 25.6 %
 

Table 6: Reconciliations of Cash Flows from Operating Activities to Free Cash Flow (in thousands)

   
Three Months Ended Six Months Ended
June 30,   March 31, June 30,
2018   2017 2018 2018   2017
Cash flows from operating activities $ 120,697 $ 87,601 $ 71,729 192,426 $ 172,580
- Capital expenditures 10,959   9,377   10,009   20,968   19,539
Free cash flow $ 109,738   $ 78,224   $ 61,720   $ 171,458   $ 153,041
 

IDEX will broadcast its second quarter earnings conference call over the Internet on Wednesday, July 25, 2018 at 9:30 a.m. CT. Chairman and Chief Executive Officer Andy Silvernail and Senior Vice President and Chief Financial Officer William Grogan will discuss the Company’s recent financial performance and respond to questions from the financial analyst community. IDEX invites interested investors to listen to the call and view the accompanying slide presentation, which will be carried live on its website at . Those who wish to participate should log on several minutes before the discussion begins. After clicking on the presentation icon, investors should follow the instructions to ensure their systems are set up to hear the event and view the presentation slides, or download the correct applications at no charge. Investors will also be able to hear a replay of the call by dialing 877.660.6853 (or 201.612.7415 for international participants) using the ID #13675420.

This news release contains “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. These statements may relate to, among other things, capital expenditures, acquisitions, cost reductions, cash flow, revenues, earnings, market conditions, global economies and operating improvements, and are indicated by words or phrases such as “anticipates,” “estimates,” “plans,” “expects,” “projects,” “forecasts,” “should,” “could,” “will,” “management believes,” “the Company believes,” “the Company intends,” and similar words or phrases. These statements are subject to inherent uncertainties and risks that could cause actual results to differ materially from those anticipated at the date of this news release. The risks and uncertainties include, but are not limited to, the following: economic and political consequences resulting from terrorist attacks and wars; levels of industrial activity and economic conditions in the U.S. and other countries around the world; pricing pressures, other competitive factors and levels of capital spending in certain industries, all of which could have a material impact on order rates and IDEX’s results, particularly in light of the low levels of order backlogs it typically maintains; its ability to make acquisitions and to integrate and operate acquired businesses on a profitable basis; the relationship of the U.S. dollar to other currencies and its impact on pricing and cost competitiveness; political and economic conditions in foreign countries in which the Company operates; interest rates; capacity utilization and the effect this has on costs; labor markets; market conditions and material costs; and developments with respect to contingencies, such as litigation and environmental matters. Additional factors that could cause actual results to differ materially from those reflected in the forward-looking statements include, but are not limited to, the risks discussed in the “Risk Factors” section included in the Company’s most recent annual report on Form 10-K filed with the SEC and the other risks discussed in the Company’s filings with the SEC. The forward-looking statements included here are only made as of the date of this news release, and management undertakes no obligation to publicly update them to reflect subsequent events or circumstances, except as may be required by law. Investors are cautioned not to rely unduly on forward-looking statements when evaluating the information presented here.

IDEX is a global fluidics leader serving high growth specialized markets. We are best known for our expertise in highly engineered fluidics systems and components, as well as for our expertise in fire and safety products including the Jaws of Life® family of rescue and recovery tools. Our products touch lives every day. Whether it’s a life-saving rescue operation, dispensing fresh juice to a first grader or fueling aircraft, IDEX is a leader in creating enabling technology used in many of the most common everyday activities. For more information, please visit . IDEX shares are traded on the New York Stock Exchange under the symbol “IEX”.

(Financial reports follow)

     
 

IDEX CORPORATION

Condensed Consolidated Statements of Operations

(in thousands except per share amounts)

(unaudited)

 
Three Months Ended
June 30,
Six Months Ended
June 30,
2018   2017 2018   2017
Net sales $ 634,360 $ 573,366 $ 1,246,684 $ 1,126,918
Cost of sales     346,993     316,441     682,665     619,052
Gross profit 287,367 256,925 564,019 507,866
Selling, general and administrative expenses 137,548 131,792 275,875 262,265
Restructuring expenses     1,988         3,630     4,797
Operating income 147,831 125,133 284,514 240,804
Other (income) expense - net (50 ) 372 (4,499 ) 64
Interest expense     11,140     11,304     22,140     22,856
Income before income taxes 136,741 113,457 266,873 217,884
Provision for income taxes     29,615     29,613     60,789     58,141
Net income     $ 107,126     $ 83,844     $ 206,084     $ 159,743
 
Earnings per Common Share:
Basic earnings per common share $ 1.40 $ 1.10 $ 2.69 $ 2.09
Diluted earnings per common share $ 1.38 $ 1.08 $ 2.65 $ 2.07
 
Share Data:
Basic weighted average common shares outstanding 76,539 76,220 76,479 76,167
Diluted weighted average common shares outstanding 77,704 77,320 77,722 77,107
     

IDEX CORPORATION

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

 
June 30,
2018
December 31,
2017
Assets
Current assets
Cash and cash equivalents $ 458,751 $ 375,950
Receivables - net 329,692 294,166
Inventories 283,854 259,724
Other current assets     41,448     74,203
Total current assets 1,113,745 1,004,043
Property, plant and equipment - net 267,828 258,350
Goodwill and intangible assets 2,083,659 2,118,904
Other noncurrent assets     18,226     18,331
Total assets     $ 3,483,458     $ 3,399,628
 
Liabilities and shareholders' equity
Current liabilities
Trade accounts payable $ 150,532 $ 147,067
Accrued expenses 162,962 184,705
Short-term borrowings 496 258
Dividends payable     33,040     28,945
Total current liabilities 347,030 360,975
Long-term borrowings 858,661 858,788
Other noncurrent liabilities     288,616     293,323
Total liabilities 1,494,307 1,513,086
Shareholders' equity     1,989,151     1,886,542
Total liabilities and shareholders' equity     $ 3,483,458     $ 3,399,628
   

IDEX CORPORATION

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 
Six Months Ended June 30,
2018   2017
Cash flows from operating activities
Net income $ 206,084 $ 159,743
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 19,957 18,633
Amortization of intangible assets 20,667 23,893
Amortization of debt issuance expenses 664 659
Share-based compensation expense 13,252 12,398
Deferred income taxes (3,021 ) 2,414
Non-cash interest expense associated with forward starting swaps 3,259 3,323
Changes in (net of the effect from acquisitions):
Receivables (40,044 ) (31,110 )
Inventories (28,011 ) (4,796 )
Other current assets 17,798 (8,446 )
Trade accounts payable 5,432 6,469
Accrued expenses (21,131 ) (9,799 )
Other - net     (2,480 )   (801 )
Net cash flows provided by operating activities 192,426 172,580
Cash flows from investing activities
Purchases of property, plant and equipment (20,968 ) (19,539 )
Purchase of intellectual property (4,000 )
Other - net     (861 )   96  
Net cash flows used in investing activities (25,829 ) (19,443 )
Cash flows from financing activities
Borrowings under revolving credit facilities 33,000
Payments under revolving credit facilities (166,297 )
Dividends paid (61,916 ) (54,572 )
Proceeds from stock option exercises 13,616 12,984
Purchases of common stock (19,499 ) (9,799 )
Shares surrendered for tax withholding (10,750 ) (5,814 )
Settlement of foreign exchange contracts     6,593     4,406  
Net cash flows used in financing activities (71,956 ) (186,092 )
Effect of exchange rate changes on cash and cash equivalents     (11,840 )   15,352  
Net increase (decrease) in cash 82,801 (17,603 )
Cash and cash equivalents at beginning of year     375,950     235,964  
Cash and cash equivalents at end of period     $ 458,751     $ 218,361  
       

IDEX CORPORATION

Company and Segment Financial Information - Reported

(dollars in thousands)

(unaudited)

 
Three Months Ended

June 30, (a)

Six Months Ended

June 30, (a)

2018   2017 2018   2017
Fluid & Metering Technologies
Net sales $ 242,800 $ 221,182 $ 475,133 $ 437,952
Operating income (b) 71,228 60,029 137,394 117,842
Operating margin 29.3 % 27.1 % 28.9 % 26.9 %
EBITDA $ 76,424 $ 65,569 $ 148,150 $ 128,996
EBITDA margin 31.5 % 29.6 % 31.2 % 29.5 %
Depreciation and amortization $ 5,707 $ 5,987 $ 11,401 $ 11,631
Capital expenditures 3,981 2,829 8,655 8,215
 
Health & Science Technologies
Net sales $ 227,403 $ 204,409 $ 448,478 $ 404,088
Operating income (b) 52,569 46,294 104,375 88,532
Operating margin 23.1 % 22.6 % 23.3 % 21.9 %
EBITDA $ 63,122 $ 57,364 $ 126,914 $ 110,723
EBITDA margin 27.8 % 28.1 % 28.3 % 27.4 %
Depreciation and amortization $ 10,090 $ 11,994 $ 21,479 $ 23,258
Capital expenditures 5,351 4,901 8,682 8,474
 
Fire & Safety/Diversified Products
Net sales $ 164,300 $ 147,983 $ 323,473 $ 285,430
Operating income (b) 45,882 37,197 85,436 69,823
Operating margin 27.9 % 25.1 % 26.4 % 24.5 %
EBITDA $ 49,524 $ 40,266 $ 96,473 $ 76,433
EBITDA margin 30.1 % 27.2 % 29.8 % 26.8 %
Depreciation and amortization $ 3,597 $ 3,652 $ 7,371 $ 7,229
Capital expenditures 1,627 1,477 3,445 2,672
 
Corporate Office and Eliminations
Intersegment sales eliminations $ (143 ) $ (208 ) $ (400 ) $ (552 )
Operating income (b) (21,848 ) (18,387 ) (42,691 ) (35,393 )
EBITDA (21,619 ) (16,604 ) (41,900 ) (32,886 )
Depreciation and amortization 176 201 373 408
Capital expenditures 170 186 178
 
Company
Net sales $ 634,360 $ 573,366 $ 1,246,684 $ 1,126,918
Operating income 147,831 125,133 284,514 240,804
Operating margin 23.3 % 21.8 % 22.8 % 21.4 %
EBITDA $ 167,451 $ 146,595 $ 329,637 $ 283,266
EBITDA margin 26.4 % 25.6 % 26.4 % 25.1 %
Depreciation and amortization (c) $ 19,570 $ 21,834 $ 40,624 $ 42,526
Capital expenditures 10,959 9,377 20,968 19,539
 

IDEX CORPORATION

Company and Segment Financial Information - Adjusted

(dollars in thousands)

(unaudited)

 
Three Months Ended

June 30, (a)

Six Months Ended

June 30, (a)

2018   2017 2018   2017
Fluid & Metering Technologies
Net sales $ 242,800 $ 221,182 $ 475,133 $ 437,952
Adjusted operating income (b) 71,571 60,029 137,880 119,408
Adjusted operating margin 29.5 % 27.1 % 29.0 % 27.3 %
Adjusted EBITDA $ 76,767 $ 65,569 $ 148,636 $ 130,562
Adjusted EBITDA margin 31.6 % 29.6 % 31.3 % 29.8 %
Depreciation and amortization $ 5,707 $ 5,987 $ 11,401 $ 11,631
Capital expenditures 3,981 2,829 8,655 8,215
 
Health & Science Technologies
Net sales $ 227,403 $ 204,409 $ 448,478 $ 404,088
Adjusted operating income (b) 53,692 46,294 106,557 91,560
Adjusted operating margin 23.6 % 22.6 % 23.8 % 22.7 %
Adjusted EBITDA $ 64,245 $ 57,364 $ 129,096 $ 113,751
Adjusted EBITDA margin 28.3 % 28.1 % 28.8 % 28.2 %
Depreciation and amortization $ 10,090 $ 11,994 $ 21,479 $ 23,258
Capital expenditures 5,351 4,901 8,682 8,474
 
Fire & Safety/Diversified Products
Net sales $ 164,300 $ 147,983 $ 323,473 $ 285,430
Adjusted operating income (b) 46,149 37,197 85,803 69,896
Adjusted operating margin 28.1 % 25.1 % 26.5 % 24.5 %
Adjusted EBITDA $ 49,791 $ 40,266 $ 96,840 $ 76,506
Adjusted EBITDA margin 30.3 % 27.2 % 29.9 % 26.8 %
Depreciation and amortization $ 3,597 $ 3,652 $ 7,371 $ 7,229
Capital expenditures 1,627 1,477 3,445 2,672
 
Corporate Office and Eliminations
Intersegment sales eliminations $ (143 ) $ (208 ) $ (400 ) $ (552 )
Adjusted operating income (b) (21,593 ) (18,387 ) (42,096 ) (35,263 )
Adjusted EBITDA (21,364 ) (16,604 ) (41,305 ) (32,756 )
Depreciation and amortization 176 201 373 408
Capital expenditures 170 186 178
 
Company
Net sales $ 634,360 $ 573,366 $ 1,246,684 $ 1,126,918
Adjusted operating income 149,819 125,133 288,144 245,601
Adjusted operating margin 23.6 % 21.8 % 23.1 % 21.8 %
Adjusted EBITDA $ 169,439 $ 146,595 $ 333,267 $ 288,063
Adjusted EBITDA margin 26.7 % 25.6 % 26.7 % 25.6 %
Depreciation and amortization (c) $ 19,570 $ 21,834 $ 40,624 $ 42,526
Capital expenditures 10,959 9,377 20,968 19,539
 
(a) Three and six month data include the results of thinXXS (December 2017) in the Health & Science Technologies segment from the date of acquisition and the results of Faure Herman (October 2017) in the Fluid & Metering Technologies segment through the date of disposition.
(b) Segment operating income excludes unallocated corporate operating expenses which are included in Corporate Office and Eliminations.
(c) Depreciation and amortization excludes amortization of debt issuance costs.

IDEX Corporation
Investor Contact:
William K. Grogan
Senior Vice President and Chief Financial Officer
(847) 498-7070

Source: IDEX Corporation



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