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IDEX Corporation$160.68($1.33)(.82%)

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 IDEX Reports Record Third Quarter Results; Q3 Sales up 8 Percent Overall and 9 Percent Organically; Q3 Reported EPS Was $1.37 with Adjusted EPS of $1.41
   Tuesday, October 23, 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 September 30, 2018.

  • Orders were up 7 percent overall and 8 percent organically
  • Sales were up 8 percent overall and 9 percent organically
  • Reported operating margin was 23.3 percent with adjusted operating margin of 24.0 percent, up 200 bps
  • Reported EPS was $1.37 with adjusted EPS of $1.41, up 31 percent


Orders of $615.1 million were up 7 percent compared with the prior year period (+8 percent organic and -1 percent foreign currency translation).

Sales of $622.9 million were up 8 percent compared with the prior year period (+9 percent organic and -1 percent foreign currency translation).

Gross margin of 45.0 percent was up 10 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 $145.1 million resulted in an operating margin of 23.3 percent. Excluding $4.6 million of restructuring expenses, adjusted operating income was $149.8 million with an adjusted operating margin of 24.0 percent, up 200 basis points compared with the prior year period primarily due to lower amortization and consulting expenses. Adjusted operating income drove adjusted EBITDA of $167.4 million which was 27 percent of sales and covered interest expense by 15 times.

Provision for income taxes of $26.9 million in the third quarter of 2018 resulted in an effective tax rate (ETR) of 20.2 percent, which was lower than the prior year period ETR of 26.4 percent primarily due to the enactment of U.S. tax reform in 2017 as well as a higher excess tax benefit from stock option exercises in the third quarter of 2018.

Net income was $106.4 million which resulted in EPS of $1.37. Excluding restructuring expenses, adjusted EPS of $1.41 increased 33 cents, or 31 percent, from prior year period EPS.

Cash from operations of $133.3 million led to free cash flow of $114.4 million, which was down 1 percent from the prior year period and 104 percent of adjusted net income. The decrease in free cash flow was primarily due to a discretionary defined benefit pension contribution of $10.3 million along with higher capital expenditures in the third quarter of 2018.

The Company repurchased 210 thousand shares of common stock for $31.2 million in the third quarter.

 
“Continued strength across most end markets helped produce another quarter of excellent operating results for IDEX. Overall demand remained solid which helped deliver strong organic order and sales growth of 8 percent and 9 percent, respectively, our second consecutive quarter posting these organic growth rates. FMT and FSDP both achieved double-digit organic revenue growth rates, while HST realized mid-single digit organic revenue growth. Adjusted operating margin increased 200 basis points with robust margin expansion across all three segments. Third quarter adjusted EPS of $1.41 was a record and approximately 10 cents above the midpoint of our previous guidance, 6 cents of which was operational over-performance while 4 cents was due to a lower effective tax rate compared with our prior guidance.
 
We remain committed to fund our most encouraging organic opportunities across the Company, which was evidenced by record capital expenditures in the third quarter. This focus on organic growth has now led to nine consecutive quarters of organic order expansion and seven consecutive quarters of organic sales growth. M&A continues to be a top priority for the Company and the acquisition funnel is healthy. With gross debt-to-EBITDA of 1.3 times, our balance sheet stands ready and is able to support our disciplined capital deployment strategy. In the quarter, we distributed $33 million in dividends to shareholders and repurchased 210 thousand shares of common stock for approximately $31 million.
 
Based on our strong third quarter operating results, we are raising our full year organic revenue growth expectations to approximately 8 percent, with approximately 5 to 6 percent expected in the fourth quarter. We are also increasing full year EPS guidance to $5.35 to $5.37, with fourth quarter EPS of $1.25 to $1.27. Our EPS guidance assumes a higher than expected fourth quarter tax rate of 26 percent due to potential changes in certain assumptions associated with the 2017 tax reform.”
 
Andrew K. Silvernail
Chairman and Chief Executive Officer
 

Fluid & Metering Technologies

  • Sales of $239.2 million reflected an 8 percent increase compared to the third quarter of 2017 (+12 percent organic, -3 percent divestiture and -1 percent foreign currency translation).
  • Operating income of $69.8 million resulted in an operating margin of 29.2 percent. Excluding $0.8 million of restructuring expenses, adjusted operating income was $70.6 million with an adjusted operating margin of 29.5 percent, a 140 basis point increase compared to the prior year period primarily due to higher volume and productivity initiatives.
  • EBITDA of $74.8 million resulted in an EBITDA margin of 31.3 percent. Excluding $0.8 million of restructuring expenses, adjusted EBITDA of $75.6 million resulted in an adjusted EBITDA margin of 31.6 percent, an 80 basis point increase compared to the prior year period.

Health & Science Technologies

  • Sales of $222.4 million reflected a 7 percent increase compared to the third quarter of 2017 (+6 percent organic, +2 percent acquisition and -1 percent foreign currency translation).
  • Operating income of $49.1 million resulted in an operating margin of 22.1 percent. Excluding $3.1 million of restructuring expenses, adjusted operating income was $52.2 million with an adjusted operating margin of 23.5 percent, a 130 basis point increase compared to the prior year period primarily due to higher volume and productivity initiatives.
  • EBITDA of $57.7 million resulted in an EBITDA margin of 26.0 percent. Excluding $3.1 million of restructuring expenses, adjusted EBITDA of $60.8 million resulted in an adjusted EBITDA margin of 27.4 percent, a 70 basis point decrease compared to the prior year period.

Fire & Safety/Diversified Products

  • Sales of $161.8 million reflected a 10 percent increase compared to the third quarter of 2017 (+11 percent organic and -1 percent foreign currency translation).
  • Operating income of $44.7 million resulted in an operating margin of 27.6 percent. Excluding $0.1 million of restructuring expenses, adjusted operating income was $44.8 million with an adjusted operating margin of 27.7 percent, a 300 basis point increase compared to the prior year period primarily due to higher volume and productivity initiatives.
  • EBITDA of $47.9 million resulted in an EBITDA margin of 29.6 percent. Excluding $0.1 million of restructuring expenses, adjusted EBITDA of $48.0 million resulted in an adjusted EBITDA margin of 29.7 percent, a 320 basis point increase compared to the prior year period.

For the third quarter of 2018, Fluid & Metering Technologies contributed 38 percent of sales, 43 percent of operating income and 41 percent of EBITDA; Health & Science Technologies accounted for 36 percent of sales, 30 percent of operating income and 32 percent of EBITDA; and Fire & Safety/Diversified Products represented 26 percent of sales, 27 percent of operating income and 27 percent of EBITDA.

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     Nine Months Ended
September 30, 2018 September 30, 2018
FMT   HST   FSDP   IDEX FMT   HST   FSDP   IDEX
Change in net sales 8 % 7 % 10 % 8 % 8 % 10 % 12 % 10 %
- Net impact from acquisitions/divestitures (3 )% 2 % % % (2 )% 1 % % %
- Impact from FX (1 )% (1 )% (1 )% (1 )% 1 % 2 % 3 % 2 %
Change in organic net sales 12 % 6 % 11 % 9 % 9 % 7 % 9 % 8 %
 

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

                       
Three Months Ended September 30,  
2018 2017  
FMT HST FSDP Corporate IDEX FMT HST FSDP Corporate IDEX
Reported operating income (loss) $ 69,755 $ 49,144 $ 44,726 $ (18,492 ) $145,133 $ 61,988 $ 46,073 $ 36,199 $ (17,756 ) $126,504
+ Restructuring expenses 827   3,116   60   618   4,621            
Adjusted operating income (loss) $ 70,582   $ 52,260   $ 44,786   $ (17,874 ) $ 149,754   $ 61,988   $ 46,073   $ 36,199   $ (17,756 ) $   126,504  
 
Net sales (eliminations) $ 239,213 $ 222,426 $ 161,832 $ (583 ) $ 622,888 $ 220,953 $ 207,127 $ 146,599 $ (189 ) $   574,490
 
Reported operating margin 29.2 % 22.1 % 27.6 % n/m 23.3 % 28.1 % 22.2 % 24.7 % n/m 22.0 %
Adjusted operating margin 29.5 % 23.5 % 27.7 % n/m 24.0 % 28.1 % 22.2 % 24.7 % n/m 22.0 %
 
    Nine Months Ended September 30,
2018     2017
FMT   HST   FSDP   Corporate   IDEX FMT   HST   FSDP   Corporate   IDEX
Reported operating income (loss) $ 207,149 $ 153,519 $ 130,162 $ (61,183 ) $ 429,647 $ 179,830 $ 134,605 $ 106,022 $ (53,149 ) $ 367,308
+ Restructuring expenses 1,313   5,298   427   1,213   8,251   1,566   3,028   73   130   4,797  
Adjusted operating income (loss) $ 208,462   $ 158,817   $ 130,589   $ (59,970 ) $ 437,898   $ 181,396   $ 137,633   $ 106,095   $ (53,019 ) $ 372,105  
 
Net sales (eliminations) $ 714,346 $ 670,904 $ 485,305 $ (983 ) $ 1,869,572 $ 658,905 $ 611,215 $ 432,029 $ (741 ) $ 1,701,408
 
Reported operating margin 29.0 % 22.9 % 26.8 % n/m 23.0 % 27.3 % 22.0 % 24.5 % n/m 21.6 %
Adjusted operating margin 29.2 % 23.7 % 26.9 % n/m 23.4 % 27.5 % 22.5 % 24.6 % n/m 21.9 %
 

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

    Three Months Ended     Nine Months Ended
September 30, September 30,
2018   2017 2018   2017
Reported net income $ 106,352 $ 83,768 $ 312,436 $ 243,511
+ Restructuring expenses 4,621 8,251 4,797
+ Tax impact on restructuring expenses (1,130 )   (2,003 ) (1,529 )
Adjusted net income $ 109,843   $ 83,768   $ 318,684   $ 246,779  
 
    Three Months Ended     Nine Months Ended
September 30, September 30,
2018   2017 2018   2017
Reported diluted EPS $ 1.37 $ 1.08 $ 4.02 $ 3.15
+ Restructuring expenses 0.06 0.11 0.06
+ Tax impact on restructuring expenses (0.02 )   (0.03 ) (0.02 )
Adjusted diluted EPS $ 1.41   $ 1.08   $ 4.10   $ 3.19  
 
Diluted weighted average shares 77,709 77,523 77,717 77,246
 

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

 
    Three Months Ended September 30,
2018     2017
FMT   HST   FSDP   Corporate   IDEX FMT   HST   FSDP   Corporate   IDEX
Reported operating income (loss) $ 69,755 $ 49,144 $ 44,726 $ (18,492 ) $ 145,133 $ 61,988 $ 46,073 $ 36,199 $ (17,756 ) $ 126,504
- Other (income) expense - net 411 780 342 (599 ) 934 230 (970 ) 1,044 1,349 1,653
+ Depreciation and amortization 5,500   9,381   3,541   184   18,606   6,192   11,189   3,709   190   21,280  
EBITDA 74,844 57,745 47,925 (17,709 ) 162,805 67,950 58,232 38,864 (18,915 ) 146,131
- Interest expense 10,958 11,064
- Provision for income taxes 26,889 30,019
- Depreciation and amortization 18,606   21,280  
Reported net income $ 106,352   $ 83,768  
 
Net sales (eliminations) $ 239,213 $ 222,426 $ 161,832 $ (583 ) $ 622,888 $ 220,953 $ 207,127 $ 146,599 $ (189 ) $ 574,490
 
Reported operating margin 29.2 % 22.1 % 27.6 % n/m 23.3 % 28.1 % 22.2 % 24.7 % n/m 22.0 %
EBITDA margin 31.3 % 26.0 % 29.6 % n/m 26.1 % 30.8 % 28.1 % 26.5 % n/m 25.4 %
 
    Nine Months Ended September 30,
2018     2017
FMT   HST   FSDP   Corporate   IDEX FMT   HST   FSDP   Corporate   IDEX
Reported operating income (loss) $ 207,149 $ 153,519 $ 130,162 $ (61,183 ) $ 429,647 $ 179,830 $ 134,605 $ 106,022 $ (53,149 ) $ 367,308
- Other (income) expense - net 1,056 (280 ) (3,324 ) (1,017 ) (3,565 ) 707 97 1,663 (750 ) 1,717
+ Depreciation and amortization 16,901   30,860   10,912   557   59,230   17,823   34,447   10,938   598   63,806  
EBITDA 222,994 184,659 144,398 (59,609 ) 492,442 196,946 168,955 115,297 (51,801 ) 429,397
- Interest expense 33,098 33,920
- Provision for income taxes 87,678 88,160
- Depreciation and amortization 59,230   63,806  
Reported net income $ 312,436   $ 243,511  
 
Net sales (eliminations) $ 714,346 $ 670,904 $ 485,305 $ (983 ) $ 1,869,572 $ 658,905 $ 611,215 $ 432,029 $ (741 ) $ 1,701,408
 
Reported operating margin 29.0 % 22.9 % 26.8 % n/m 23.0 % 27.3 % 22.0 % 24.5 % n/m 21.6 %
EBITDA margin 31.2 % 27.5 % 29.8 % n/m 26.3 % 29.9 % 27.6 % 26.7 % n/m 25.2 %
 

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

 
    Three Months Ended September 30,
2018     2017
FMT   HST   FSDP   Corporate   IDEX FMT   HST   FSDP   Corporate   IDEX
EBITDA $ 74,844 $ 57,745 $ 47,925 $ (17,709 ) $ 162,805 $ 67,950 $ 58,232 $ 38,864 $ (18,915 ) $ 146,131
+ Restructuring expenses 827   3,116   60   618   4,621            
Adjusted EBITDA $ 75,671   $ 60,861   $ 47,985   $ (17,091 ) $ 167,426   $ 67,950   $ 58,232   $ 38,864   $ (18,915 ) $ 146,131  
 
Adjusted EBITDA margin 31.6 % 27.4 % 29.7 % n/m 26.9 % 30.8 % 28.1 % 26.5 % n/m 25.4 %
 
    Nine Months Ended September 30,
2018     2017
FMT   HST   FSDP   Corporate   IDEX FMT   HST   FSDP   Corporate   IDEX
EBITDA $ 222,994 $ 184,659 $ 144,398 $ (59,609 ) $ 492,442 $ 196,946 $ 168,955 $ 115,297 $ (51,801 ) $ 429,397
+ Restructuring expenses 1,313   5,298   427   1,213   8,251   1,566   3,028   73   130   4,797  
Adjusted EBITDA $ 224,307   $ 189,957   $ 144,825   $ (58,396 ) $ 500,693   $ 198,512   $ 171,983   $ 115,370   $ (51,671 ) $ 434,194  
 
Adjusted EBITDA margin 31.4 % 28.3 % 29.8 % n/m 26.8 % 30.1 % 28.1 % 26.7 % n/m 25.5 %
 

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

 
    Three Months Ended     Nine Months Ended
September 30,   June 30, September 30,
2018   2017 2018 2018   2017
Cash flows from operating activities $ 133,327 $ 124,000 $ 120,697 325,753 $ 296,580
- Capital expenditures 18,888   8,515   10,959   39,856   28,054
Free cash flow $ 114,439   $ 115,485   $ 109,738   $ 285,897   $ 268,526
 

IDEX will broadcast its third quarter earnings conference call over the Internet on Wednesday, October 24, 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 #13675421.

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 the Company's results, particularly in light of the low levels of order backlogs it typically maintains; the Company's 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; developments with respect to trade policy and tariffs; 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     Nine Months Ended
September 30, September 30,
2018   2017 2018   2017
Net sales $ 622,888 $ 574,490 $ 1,869,572 $ 1,701,408
Cost of sales     342,655     316,560       1,025,320     935,612
Gross profit 280,233 257,930 844,252 765,796
Selling, general and administrative expenses 130,479 131,426 406,354 393,691
Restructuring expenses     4,621           8,251     4,797
Operating income 145,133 126,504 429,647 367,308
Other (income) expense - net 934 1,653 (3,565 ) 1,717
Interest expense     10,958     11,064       33,098     33,920
Income before income taxes 133,241 113,787 400,114 331,671
Provision for income taxes     26,889     30,019       87,678     88,160
Net income     $ 106,352     $ 83,768       $ 312,436     $ 243,511
 
Earnings per Common Share:
Basic earnings per common share $ 1.39 $ 1.09 $ 4.07 $ 3.19
Diluted earnings per common share $ 1.37 $ 1.08 $ 4.02 $ 3.15
 
Share Data:
Basic weighted average common shares outstanding 76,562 76,309 76,507 76,215
Diluted weighted average common shares outstanding 77,709 77,523 77,717 77,246
 

IDEX CORPORATION

Condensed Consolidated Balance Sheets
(in thousands)

(unaudited)

 
    September 30,    

December 31,

2018

2017

Assets
Current assets
Cash and cash equivalents $ 491,767 $ 375,950
Receivables - net 324,895 294,166
Inventories 287,126 259,724
Other current assets     51,451       74,203
Total current assets 1,155,239 1,004,043
Property, plant and equipment - net 276,821 258,350
Goodwill and intangible assets 2,104,280 2,118,904
Other noncurrent assets     18,467       18,331
Total assets     $ 3,554,807       $ 3,399,628
 
Liabilities and shareholders' equity
Current liabilities
Trade accounts payable $ 141,178 $ 147,067
Accrued expenses 185,453 184,705
Short-term borrowings 536 258
Dividends payable     33,046       28,945
Total current liabilities 360,213 360,975
Long-term borrowings 848,246 858,788
Other noncurrent liabilities     285,774       293,323
Total liabilities 1,494,233 1,513,086
Shareholders' equity     2,060,574       1,886,542
Total liabilities and shareholders' equity     $ 3,554,807       $ 3,399,628
 

IDEX CORPORATION

Condensed Consolidated Statements of Cash Flows
(in thousands)

(unaudited)

 
    Nine Months Ended
September 30,
2018     2017
Cash flows from operating activities
Net income $ 312,436 $ 243,511
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 29,725 28,425
Amortization of intangible assets 29,505 35,381
Amortization of debt issuance expenses 998 989
Share-based compensation expense 19,814 18,143
Deferred income taxes (1,480 ) 1,888
Non-cash interest expense associated with forward starting swaps 4,869 5,004
Changes in (net of the effect from acquisitions):
Receivables (34,057 ) (28,407 )
Inventories (27,903 ) (4,869 )
Other current assets 7,635 (15,113 )
Trade accounts payable (4,420 ) 3,681
Accrued expenses 33 9,912
Other - net     (11,402 )     (1,965 )
Net cash flows provided by operating activities 325,753 296,580
Cash flows from investing activities
Purchases of property, plant and equipment (39,856 ) (28,054 )
Purchase of intellectual property (4,000 )
Acquisition of businesses, net of cash acquired (20,205 )
Proceeds from disposal of fixed assets 211 5,159
Other - net     (1,180 )     (337 )
Net cash flows used in investing activities (65,030 ) (23,232 )
Cash flows from financing activities
Borrowings under revolving credit facilities 33,000
Payments under revolving credit facilities (11,128 ) (181,692 )
Dividends paid (94,913 ) (82,869 )
Proceeds from stock option exercises 26,793 18,980
Purchases of common stock (50,654 ) (22,650 )
Shares surrendered for tax withholding (11,260 ) (5,903 )
Settlement of foreign exchange contracts     6,593       4,406  
Net cash flows used in financing activities (134,569 ) (236,728 )
Effect of exchange rate changes on cash and cash equivalents     (10,337 )     30,707  
Net increase (decrease) in cash 115,817 67,327
Cash and cash equivalents at beginning of year     375,950       235,964  
Cash and cash equivalents at end of period     $ 491,767       $ 303,291  
 

IDEX CORPORATION

Company and Segment Financial Information - Reported

(dollars in thousands)

(unaudited)

 
    Three Months Ended     Nine Months Ended

September 30, (a)

September 30, (a)

2018   2017 2018   2017
Fluid & Metering Technologies
Net sales $ 239,213 $ 220,953 $ 714,346 $ 658,905
Operating income (b) 69,755 61,988 207,149 179,830
Operating margin 29.2 % 28.1 % 29.0 % 27.3 %
EBITDA $ 74,844 $ 67,950 $ 222,994 $ 196,946
EBITDA margin 31.3 % 30.8 % 31.2 % 29.9 %
Depreciation and amortization $ 5,500 $ 6,192 $ 16,901 $ 17,823
Capital expenditures 6,487 3,944 15,142 12,159
 
Health & Science Technologies
Net sales $ 222,426 $ 207,127 $ 670,904 $ 611,215
Operating income (b) 49,144 46,073 153,519 134,605
Operating margin 22.1 % 22.2 % 22.9 % 22.0 %
EBITDA $ 57,745 $ 58,232 $ 184,659 $ 168,955
EBITDA margin 26.0 % 28.1 % 27.5 % 27.6 %
Depreciation and amortization $ 9,381 $ 11,189 $ 30,860 $ 34,447
Capital expenditures 8,614 3,015 17,296 11,489
 
Fire & Safety/Diversified Products
Net sales $ 161,832 $ 146,599 $ 485,305 $ 432,029
Operating income (b) 44,726 36,199 130,162 106,022
Operating margin 27.6 % 24.7 % 26.8 % 24.5 %
EBITDA $ 47,925 $ 38,864 $ 144,398 $ 115,297
EBITDA margin 29.6 % 26.5 % 29.8 % 26.7 %
Depreciation and amortization $ 3,541 $ 3,709 $ 10,912 $ 10,938
Capital expenditures 3,787 1,506 7,232 4,178
 
Corporate Office and Eliminations
Intersegment sales eliminations $ (583 ) $ (189 ) $ (983 ) $ (741 )
Operating income (b) (18,492 ) (17,756 ) (61,183 ) (53,149 )
EBITDA (17,709 ) (18,915 ) (59,609 ) (51,801 )
Depreciation and amortization 184 190 557 598
Capital expenditures 50 186 228
 
Company
Net sales $ 622,888 $ 574,490 $ 1,869,572 $ 1,701,408
Operating income 145,133 126,504 429,647 367,308
Operating margin 23.3 % 22.0 % 23.0 % 21.6 %
EBITDA $ 162,805 $ 146,131 $ 492,442 $ 429,397
EBITDA margin 26.1 % 25.4 % 26.3 % 25.2 %
Depreciation and amortization (c) $ 18,606 $ 21,280 $ 59,230 $ 63,806
Capital expenditures 18,888 8,515 39,856 28,054
 

IDEX CORPORATION

Company and Segment Financial Information - Adjusted

(dollars in thousands)

(unaudited)

 
    Three Months Ended     Nine Months Ended

September 30, (a)

September 30, (a)

2018   2017 2018   2017
Fluid & Metering Technologies
Net sales $ 239,213 $ 220,953 $ 714,346 $ 658,905
Adjusted operating income (b) 70,582 61,988 208,462 181,396
Adjusted operating margin 29.5 % 28.1 % 29.2 % 27.5 %
Adjusted EBITDA $ 75,671 $ 67,950 $ 224,307 $ 198,512
Adjusted EBITDA margin 31.6 % 30.8 % 31.4 % 30.1 %
Depreciation and amortization $ 5,500 $ 6,192 $ 16,901 $ 17,823
Capital expenditures 6,487 3,944 15,142 12,159
 
Health & Science Technologies
Net sales $ 222,426 $ 207,127 $ 670,904 $ 611,215
Adjusted operating income (b) 52,260 46,073 158,817 137,633
Adjusted operating margin 23.5 % 22.2 % 23.7 % 22.5 %
Adjusted EBITDA $ 60,861 $ 58,232 $ 189,957 $ 171,983
Adjusted EBITDA margin 27.4 % 28.1 % 28.3 % 28.1 %
Depreciation and amortization $ 9,381 $ 11,189 $ 30,860 $ 34,447
Capital expenditures 8,614 3,015 17,296 11,489
 
Fire & Safety/Diversified Products
Net sales $ 161,832 $ 146,599 $ 485,305 $ 432,029
Adjusted operating income (b) 44,786 36,199 130,589 106,095
Adjusted operating margin 27.7 % 24.7 % 26.9 % 24.6 %
Adjusted EBITDA $ 47,985 $ 38,864 $ 144,825 $ 115,370
Adjusted EBITDA margin 29.7 % 26.5 % 29.8 % 26.7 %
Depreciation and amortization $ 3,541 $ 3,709 $ 10,912 $ 10,938
Capital expenditures 3,787 1,506 7,232 4,178
 
Corporate Office and Eliminations
Intersegment sales eliminations $ (583 ) $ (189 ) $ (983 ) $ (741 )
Adjusted operating income (b) (17,874 ) (17,756 ) (59,970 ) (53,019 )
Adjusted EBITDA (17,091 ) (18,915 ) (58,396 ) (51,671 )
Depreciation and amortization 184 190 557 598
Capital expenditures 50 186 228
 
Company
Net sales $ 622,888 $ 574,490 $ 1,869,572 $ 1,701,408
Adjusted operating income 149,754 126,504 437,898 372,105
Adjusted operating margin 24.0 % 22.0 % 23.4 % 21.9 %
Adjusted EBITDA $ 167,426 $ 146,131 $ 500,693 $ 434,194
Adjusted EBITDA margin 26.9 % 25.4 % 26.8 % 25.5 %
Depreciation and amortization (c) $ 18,606 $ 21,280 $ 59,230 $ 63,806
Capital expenditures 18,888 8,515 39,856 28,054
(a)   Three and nine months data include the results of Finger Lakes Instrumentation (July 2018) and 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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