StockSelector.com
  Research, Select, & Monitor Sunday, May 19, 2019 5:05:00 PM ET  
Trade Ideas The Market Industries Stocks Portfolio

 
Ticker Lookup
IDEX Corporation$150.61($2.85)(1.86%)

  Quote | Ranking | Chart | Valuations | Sentiment | Industry | News | Earnings | Analysts | More...

Your Target?

 IDEX Reports Fourth Quarter and Full Year Results; Q4 Orders up 10 Percent with Sales up 6 Percent
   Monday, January 30, 2017 5:54:01 PM ET

IDEX Corporation (IEX ) today announced its financial results for the three- and twelve- month periods ended December 31, 2016.

2016 Highlights

-- Orders were up 6 percent for the year and 10 percent in the fourth quarter

-- Sales were up 5 percent for the year and 6 percent in the fourth quarter

-- Reported EPS was $3.53 with adjusted EPS of $3.75, up 6 percent

-- Cash from operations of $400 million led to free cash flow of $362 million, up 12 percent

-- Deployed over $500 million on three acquisitions

-- Divested four non-strategic businesses

Full Year 2016



Orders of $2.1 billion were up 6 percent (flat organic, +7 percent acquisitions/divestitures and -1 percent foreign currency translation) compared with the prior year.

Sales of $2.1 billion were up 5 percent (-1 percent organic, +7 percent acquisitions/divestitures and -1 percent foreign currency translation) compared with the prior year.

Gross margin of 44.0 percent was down 80 basis points from the prior year, primarily due to $14.8 million of pre-tax fair value inventory step-up charges from the three 2016 acquisitions compared to $3.7 million from the 2015 acquisitions.

Operating income of $406 million resulted in an operating margin of 19.2 percent. Adjusted for a $22.3 million loss on the four divestitures, a $3.6 million pension settlement charge and $3.7 million of restructuring-related charges, adjusted operating income was $435 million with an adjusted operating margin of 20.6 percent, down 40 basis points from the prior year adjusted operating margin primarily due to the fair value inventory step-up charges. Adjusted operating income drove adjusted EBITDA of $531 million which was 25 percent of sales and covered interest expense by more than 11 times.

The effective tax rate of 26.4 percent was favorably impacted by a tax benefit generated from the loss on divestitures. The effective tax rate adjusted to exclude the tax impact from the loss on divestitures, as well as the tax impact from the pension settlement and the restructuring charges was 27.6 percent.

Net income was $271 million which resulted in EPS of $3.53. Adjusted for the net loss on divestitures, the pension settlement and restructuring charges, adjusted EPS of $3.75 increased 20 cents, or 6 percent, from prior year adjusted EPS.

Fourth Quarter 2016

Orders of $547 million were up 10 percent (+3 percent organic, +9 percent acquisitions/divestitures and -2 percent foreign currency translation) compared with the prior year period.

Sales of $530 million were up 6 percent (flat organic, +8 percent acquisitions/divestitures and -2 percent foreign currency translation) compared with the prior year period.

Gross margin of 43.8 percent was down 90 basis points from the prior year period, primarily due to the remaining $4.4 million pre-tax fair value inventory step-up charge from the SFC acquisition recorded in the fourth quarter.

Operating income of $81 million resulted in an operating margin of 15.3 percent. Adjusted for a $20.2 million loss on the two fourth quarter divestitures, a $3.6 million pension settlement charge and $3.7 million of restructuring-related charges, adjusted operating income was $109 million with an adjusted operating margin of 20.5 percent, down 50 basis points from the prior year adjusted operating margin primarily due to the fair value inventory step-up charge for the SFC acquisition. Adjusted operating income drove adjusted EBITDA of $135 million which was 25 percent of sales and covered interest expense by more than 11 times.

The effective tax rate of 21.2 percent was favorably impacted by a tax benefit generated from the loss on divestitures. The effective tax rate adjusted to exclude the tax impact from the loss on divestitures, as well as the tax impact from the pension settlement and the restructuring charges was 26.1 percent.

Net income was $57 million which resulted in EPS of 75 cents. Adjusted for the net loss on divestitures, the pension settlement and restructuring charges, adjusted EPS of 96 cents increased 2 cents, or 2 percent, from prior year adjusted EPS.

Cash from operations of $116 million was up 17 percent and led to free cash flow of $106 million which was 143 percent of adjusted net income.

"We finished 2016 on a strong note with fourth quarter organic order growth of 3 percent. This organic order growth, coupled with the organic growth in the third quarter, resulted in our first consecutive quarterly organic order growth since 2014. We are beginning to see encouraging indicators within the North American industrial market, although sustainability is yet to be determined. Despite the challenging market conditions in 2016, the team expanded adjusted operating margins, exclusive of the step-up charges from our recent acquisitions. We also delivered free cash flow growth of 12 percent to $362 million. Free cash flow of 125 percent of adjusted net income was driven by both operating and working capital execution and our 2016 acquisitions.

We remain committed to our strategy and supporting capital deployment plan. We will invest in organic growth, pay consistent shareholder dividends, opportunistically repurchase our stock and strategically acquire businesses. With that in mind, we deployed over $500 million on three strategic acquisitions in 2016. We remain confident in our ability to pursue acquisitions in the coming year. In the second half of 2016, we also took the opportunity to optimize our portfolio and divested four non-strategic businesses. We will remain disciplined in our capital deployment strategies and continue to deploy capital to maximize total shareholder returns.

A solid finish to 2016 and a positive start to 2017 provide an improved outlook. However, we remain cautious due to the global economic uncertainty and project 1 to 2 percent organic growth in 2017. We expect to deliver full year 2017 EPS of $3.87 to $3.95, which includes a 12 cent foreign currency headwind, with first quarter EPS in the range of 91 to 93 cents."

Andrew K. Silvernail Chairman and Chief Executive Officer

Fourth Quarter 2016 Segment Highlights

Fluid & Metering Technologies

-- Sales of $207 million reflected a 4 percent decrease compared to the fourth quarter of 2015 (flat organic, -3 percent divestitures and -1 percent foreign currency translation).

-- Operating income of $53 million resulted in an operating margin of 25.8 percent. Adjusted for $2.0 million of the pension settlement and $0.9 million of restructuring-related charges, adjusted operating income was $56 million with an adjusted operating margin of 27.2 percent, a 190 basis point increase compared to prior year adjusted operating margin primarily due to productivity initiatives partially offset by lower volume.

-- EBITDA of $60 million resulted in an EBITDA margin of 28.8 percent. Adjusted for $2.0 million of the pension settlement and $0.9 million of restructuring-related charges, adjusted EBITDA of $63 million resulted in an adjusted EBITDA margin of 30.2 percent, a 150 basis point increase compared to prior year adjusted EBITDA margin.

Health & Science Technologies

-- Sales of $188 million reflected a 1 percent increase compared to the fourth quarter of 2015 (-1 percent organic, +5 percent acquisitions/divestitures and -3 percent foreign currency translation).

-- Operating income of $35 million resulted in an operating margin of 18.4 percent. Adjusted for $1.1 million of restructuring-related charges, adjusted operating income was $36 million with an adjusted operating margin of 19.0 percent, a 330 basis point decrease compared to the prior year adjusted operating margin primarily due to the $4.4 million pre-tax fair value inventory step-up charge from the SFC acquisition.

-- EBITDA of $47 million resulted in an EBITDA margin of 25.2 percent. Adjusted for $1.1 million of restructuring-related charges, adjusted EBITDA of $49 million resulted in an adjusted EBITDA margin of 25.8 percent, a 230 basis point decrease compared to prior year adjusted EBITDA margin.

Fire & Safety/Diversified Products

-- Sales of $135 million reflected a 37 percent increase compared to the fourth quarter of 2015 (+3 percent organic, +37 percent acquisition and -3 percent foreign currency translation).

-- Operating income of $30 million resulted in an operating margin of 22.4 percent. Adjusted for $0.5 million of the pension settlement and $1.4 million of restructuring-related charges, adjusted operating income was $32 million with an adjusted operating margin of 23.8 percent, a 150 basis point decrease compared to prior year adjusted operating margin primarily due to the dilutive impact on margins from the 2016 acquisitions.

-- EBITDA of $34 million resulted in an EBITDA margin of 25.2 percent. Adjusted for $0.5 million of the pension settlement and $1.4 million of restructuring-related charges, adjusted EBITDA of $36 million resulted in an adjusted EBITDA margin of 26.7 percent, a 50 basis point decrease compared to prior year adjusted EBITDA margin.

For the fourth quarter of 2016, Fluid & Metering Technologies contributed 39 percent of sales, 45 percent of operating income and 42 percent of EBITDA; Health & Science Technologies accounted for 35 percent of sales, 29 percent of operating income and 34 percent of EBITDA; and Fire & Safety/Diversified Products represented 26 percent of sales, 26 percent of operating income and 24 percent of EBITDA.

2016 Restructuring Actions

During the fourth quarter of 2016, the Company recorded $3.7 million of restructuring costs as part of initiatives that support the implementation of key strategic efforts designed to facilitate long-term, sustainable growth through cost reduction actions, primarily consisting of employee reductions and facility rationalization. These initiatives are expected to generate annual savings in excess of $4 million starting in 2017.

2016 Divestitures

In 2016, the Company divested four businesses that were no longer aligned with our long-term strategic objectives (Hydra-Stop - July 2016; CVI Japan - September 2016; IETG - October 2016; and CVI Korea - December 2016). These four businesses were sold for cash proceeds of $39.1 million and generated a pre-tax loss of $22.3 million, which included $14.3 million of currency translation adjustments (CTA) that were reclassified from equity upon sale of these businesses. These four businesses generated approximately $40 million of revenue through their respective dates of sale in the Company’s 2016 results.

Pension Settlement

IDEX implemented a program to de-risk its pension plans by offering certain former U.S. employees with a vested pension benefit an option to take a one-time lump sum distribution rather than future monthly pension payments. Payments were made from the retirement plan assets during the fourth quarter of 2016. This action reduced IDEX’s pension benefit obligations by approximately $11 million as of December 31, 2016. IDEX recognized a pre-tax pension settlement charge of $3.6 million in the fourth quarter of 2016.

Non-U.S. GAAP Measures of Financial Performance

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 according to U.S. GAAP 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 plus or minus the loss or gain on sale of businesses plus the pension settlement charge.

-- Adjusted operating margin is calculated as adjusted operating income divided by net sales.

-- Adjusted net income is calculated as net income plus restructuring expenses plus or minus the loss or gain on sale of businesses plus the pension settlement charge, 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 plus or minus the loss or gain on sale of businesses plus the pension settlement charge.

-- Free cash flow is calculated as cash flow from operating activities less capital expenditures.

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

                                                                             For the Quarter Ended                                                                           For the Year Ended
                                                                                                  December 31, 2016                                                                                                                    December 31, 2016
                                                                 -----------------------------------------------------------------------------------                                          ---------------------------------------------------------------------------------------------------
                                                                  FMT    HST   FSDP   IDEX                                            FMT    HST   FSDP           IDEX
                                                                 ---- -------------------- ---- -------------------- ---- -------------------- ----                                           ---- -------------------- ---- -------------------- ---- -------------------- --------------------
Change in net sales                                              (4%)     1%    37%     6%                                           (1%)     1%    23%                     5%
- Net impact from acquisitions/divestitures                      (3%)                        5%                       37%                        8%                                             1%                        3%                       27%                                        7%
- Impact from FX                                                 (1%)                      (3%)                      (3%)                      (2%)                                           (1%)                      (1%)                      (1%)                                      (1%)
                                                                 ----                      ----                      ----                      ----                                           ----                      ----                      ----                      --------------------
Change in organic net sales                                        0%                      (1%)                        3%                        0%                                           (1%)                      (1%)                      (3%)                                      (1%)
                                                                 ====                      ====                      ====                      ====                                           ====                      ====                      ====                      ====================
                                                                                                                                                                                                                                                                             

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

                                                                                                                                                                                                                                                                                For the Quarter Ended December 31,
                                                                                                                                                                                                                                    2016                                                                                                                                                                                                                                                                                                                                              2015
                                                              ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                      FMT                                                 HST                                                FSDP                                              Corporate                                              IDEX                                                                     FMT                                                 HST                                                FSDP                                              Corporate                                              IDEX
                                                              ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- ----------------------------------------------------                     ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- ----------------------------------------------------
Reported operating income (loss)                                                 $  53,376                                           $  34,694                                           $  30,179                                           $ (36,838 )                                         $    81,411                                                              $  49,841                                           $  40,060                                           $  24,565                                           $ (16,207 )                                         $    98,259
+Restructuring expenses                                                                932                                                                  1,117                                                                  1,425                                                                    200                                                                    3,674                                                                  4,585                                                                  1,634                                                                    297                                                                      -                                                                    6,516
+Loss (gain) on sale of businesses - net                                                 -                                                                      -                                                                      -                                                                 20,231                                                                   20,231                                                                      -                                                                      -                                                                      -                                                                      -                                                                        -
+Pension settlement                                               2,032                                -                              540                              982                              3,554                                -                                -                                -                                -                                  -  
                                                              -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------
Adjusted operating income (loss)                                                 $  56,340                                           $  35,811                                           $  32,144                                           $ (15,425 )                                                            $   108,870                                           $  54,426                                           $  41,694                                           $  24,862                                           $ (16,207 )                                                            $   104,775  
                                                              ==================== ======= ====================                      ==================== ======= ====================                      ==================== ======= ====================                      ==================== ======= ====================                      ==================== ========= ====================                      ==================== ======= ====================                      ==================== ======= ====================                      ==================== ======= ====================                      ==================== ======= ====================                      ==================== ========= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
Net sales (eliminations)                                                         $ 207,113                                                              $ 188,334                                                              $ 135,013                                                              $     (41 )                                                            $   530,419                                                              $ 215,150                                                              $ 186,578                                                              $  98,343                                                              $    (273 )                                                            $   499,798
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
Operating margin                                                                      25.8 %                                                                 18.4 %                                                                 22.4 %                                                                  n/m                                                                     15.3 %                                                                 23.2 %                                                                 21.5 %                                                                 25.0 %                                                                  n/m                                                                     19.7 %
Adjusted operating margin                                                             27.2 %                                                                 19.0 %                                                                 23.8 %                                                                  n/m                                                                     20.5 %                                                                 25.3 %                                                                 22.3 %                                                                 25.3 %                                                                  n/m                                                                     21.0 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                                   For the Year Ended December 31,
                                                                                                                                                                                                                                    2016                                                                                                                                                                                                                                                                                                                                                                 2015
                                                              ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                      FMT                                                 HST                                                FSDP                                              Corporate                                              IDEX                                                                     FMT                                                 HST                                                FSDP                                              Corporate                                              IDEX
                                                              ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- ----------------------------------------------------                     ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- ----------------------------------------------------
Reported operating income (loss)                                                 $ 214,242                                                              $ 153,722                                                              $ 121,888                                                              $ (84,051 )                                                            $   405,801                                                              $ 204,506                                                              $ 157,948                                                              $ 115,745                                                              $ (46,461 )                                                            $   431,738
+Restructuring expenses                                                                932                                                                  1,117                                                                  1,425                                                                    200                                                                    3,674                                                                  7,090                                                                  3,408                                                                    576                                                                    165                                                                   11,239
+Loss (gain) on sale of businesses - net                                                 -                                                                      -                                                                      -                                                                 22,298                                                                   22,298                                                                      -                                                                      -                                                                      -                                                                (18,070 )                                                                (18,070 )
+Pension settlement                                               2,032                                -                              540                              982                              3,554                                -                                -                                -                                -                                  -  
                                                              -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------
Adjusted operating income (loss)                                                 $ 217,206                                           $ 154,839                                           $ 123,853                                           $ (60,571 )                                                            $   435,327                                           $ 211,596                                           $ 161,356                                           $ 116,321                                           $ (64,366 )                                                            $   424,907  
                                                              ==================== ======= ====================                      ==================== ======= ====================                      ==================== ======= ====================                      ==================== ======= ====================                      ==================== ========= ====================                      ==================== ======= ====================                      ==================== ======= ====================                      ==================== ======= ====================                      ==================== ======= ====================                      ==================== ========= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
Net sales (eliminations)                                                         $ 849,101                                                              $ 744,809                                                              $ 520,009                                                              $    (876 )                                                            $ 2,113,043                                                              $ 860,792                                                              $ 738,996                                                              $ 423,915                                                              $  (3,035 )                                                            $ 2,020,668
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
Operating margin                                                                      25.2 %                                                                 20.6 %                                                                 23.4 %                                                                  n/m                                                                     19.2 %                                                                 23.8 %                                                                 21.4 %                                                                 27.3 %                                                                  n/m                                                                     21.4 %
Adjusted operating margin                                                             25.6 %                                                                 20.8 %                                                                 23.8 %                                                                  n/m                                                                     20.6 %                                                                 24.6 %                                                                 21.8 %                                                                 27.4 %                                                                  n/m                                                                     21.0 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               

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

                                                                                                             For the Quarter                                                                                                            For the Year
                                                                                                                              Ended December 31,                                                                                                                           Ended December 31,
                                                                                                  2016                                               2015                                                                   2016                                                2015
                                                                            -------------------------------------------------                     -------------------------------------------------                     --------------------------------------------------                     --------------------------------------------------
Reported net income                                                                            $ 57,347                                                              $ 67,763                                                              $ 271,109                                                              $ 282,807
+Restructuring expenses                                                                           3,674                                                                 6,516                                                                  3,674                                                                 11,239
+Tax impact on restructuring expenses                                                            (1,299 )                                                              (1,942 )                                                               (1,299 )                                                               (3,586 )
+Loss (gain) on sale of businesses - net                                                         20,231                                                                     -                                                                 22,298                                                                (18,070 )
+Tax impact on loss (gain) on sale of businesses - net                                           (8,239 )                                                                   -                                                                 (9,706 )                                                                4,839
+Pension settlement                                                                               3,554                                                                     -                                                                  3,554                                                                      -
+Tax impact on pension settlement                                             (1,257 )                                                -                           (1,257 )                                                 -  
                                                                            -------------------- ------ --------------------                      -------------------- ------ --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------
Adjusted net income                                                                            $ 74,011                                           $ 72,337                                           $ 288,373                                           $ 277,229  
                                                                            ==================== ====== ====================                      ==================== ====== ====================                      ==================== ======= ====================                      ==================== ======= ====================
                                                                                                                                                                                                                                                                                                
Reported EPS                                                                                   $   0.75                                                              $   0.88                                                              $    3.53                                                              $    3.62
+Restructuring expenses                                                                            0.05                                                                  0.08                                                                   0.05                                                                   0.14
+Tax impact on restructuring expenses                                                             (0.02 )                                                               (0.02 )                                                                (0.02 )                                                                (0.04 )
+Loss (gain) on sale of businesses - net                                                           0.26                                                                     -                                                                   0.29                                                                  (0.23 )
+Tax impact on loss (gain) on sale of businesses - net                                            (0.11 )                                                                   -                                                                  (0.13 )                                                                 0.06
+Pension settlement                                                                                0.05                                                                     -                                                                   0.05                                                                      -
+Tax impact on pension settlement                                              (0.02 )                                                -                            (0.02 )                                                 -  
                                                                            -------------------- ------ --------------------                      -------------------- ------ --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------
Adjusted EPS                                                                                   $   0.96                                           $   0.94                                           $    3.75                                           $    3.55  
                                                                            ==================== ====== ====================                      ==================== ====== ====================                      ==================== ======= ====================                      ==================== ======= ====================
                                                                                                                                                                                                                                                                                                
Diluted weighted average shares                                                                  76,806                                                                77,091                                                                 76,758                                                                 77,972
                                                                                                                                                                                                                                                                                                                             

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

                                                                                                                                                                                                                                                                       For the Quarter Ended December 31,
                                                                                                                                                                                                                           2016                                                                                                                                                                                                                                                                                                                                              2015
                                                     ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                             FMT                                                 HST                                                FSDP                                              Corporate                                              IDEX                                                                     FMT                                                 HST                                                FSDP                                              Corporate                                              IDEX
                                                     ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- ----------------------------------------------------                     ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- ----------------------------------------------------
Operating income (loss)                                                 $  53,376                                           $  34,694                                           $  30,179                                           $ (36,838 )                                         $    81,411                                                              $  49,841                                           $  40,060                                           $  24,565                                           $ (16,207 )                                         $    98,259
- Other (income) expense - net                                                158                                                                   (455 )                                                                 (214 )                                                               (2,834 )                                                                 (3,345 )                                                                   54                                                                    169                                                                   (362 )                                                                 (515 )                                                                   (654 )
+ Depreciation and amortization                          6,447                           12,254                            3,640                              227                             22,568                            7,341                           10,953                            1,477                              375                             20,146  
                                                     -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------
EBITDA                                                                     59,665                                                                 47,403                                                                 34,033                                                                (33,777 )                                                                107,324                                                                 57,128                                                                 50,844                                                                 26,404                                                                (15,317 )                                                                119,059
- Interest expense                                                                                                                                                                                                                                                                                                                                                       12,009                                                                                                                                                                                                                                                                                                                                                               10,226
- Provision for income taxes                                                                                                                                                                                                                                                                                                                                             15,400                                                                                                                                                                                                                                                                                                                                                               20,924
- Depreciation and amortization                                                                                                                                                                                                                                                                                                                       22,568                                                                                                                                                                                                                                                                                                                         20,146  
                                                                                                                                                                                                                                                                                                                                                 -------------------- --------- --------------------                                                                                                                                                                                                                                                                                                                  -------------------- --------- --------------------
Net income                                                                                                                                                                                                                                                                                                                                                          $    57,347                                                                                                                                                                                                                                                                                                                                       $    67,763  
                                                                                                                                                                                                                                                                                                                                                 ==================== ========= ====================                                                                                                                                                                                                                                                                                                                  ==================== ========= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
Net sales (eliminations)                                                $ 207,113                                                              $ 188,334                                                              $ 135,013                                                              $     (41 )                                                            $   530,419                                                              $ 215,150                                                              $ 186,578                                                              $  98,343                                                              $    (273 )                                                            $   499,798
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
Operating margin                                                             25.8 %                                                                 18.4 %                                                                 22.4 %                                                                  n/m                                                                     15.3 %                                                                 23.2 %                                                                 21.5 %                                                                 25.0 %                                                                  n/m                                                                     19.7 %
EBITDA margin                                                                28.8 %                                                                 25.2 %                                                                 25.2 %                                                                  n/m                                                                     20.2 %                                                                 26.6 %                                                                 27.3 %                                                                 26.8 %                                                                  n/m                                                                     23.8 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
                                                                                                                                                                                                                                                                                          For the Year Ended December 31,
                                                                                                                                                                                                                           2016                                                                                                                                                                                                                                                                                                                                                                 2015
                                                     ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                             FMT                                                 HST                                                FSDP                                              Corporate                                              IDEX                                                                     FMT                                                 HST                                                FSDP                                              Corporate                                              IDEX
                                                     ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- ----------------------------------------------------                     ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- ----------------------------------------------------
Operating income (loss)                                                 $ 214,242                                                              $ 153,722                                                              $ 121,888                                                              $ (84,051 )                                                            $   405,801                                                              $ 204,506                                                              $ 157,948                                                              $ 115,745                                                              $ (46,461 )                                                            $   431,738
- Other (income) expense - net                                               (192 )                                                               (1,960 )                                                               (1,556 )                                                               (4,619 )                                                                 (8,327 )                                                                 (840 )                                                                 (178 )                                                               (1,453 )                                                                  228                                                                   (2,243 )
+ Depreciation and amortization                         28,458                           45,298                           11,956                            1,180                             86,892                           27,662                           42,827                            6,051                            1,580                             78,120  
                                                     -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------
EBITDA                                                                    242,892                                                                200,980                                                                135,400                                                                (78,252 )                                                                501,020                                                                233,008                                                                200,953                                                                123,249                                                                (45,109 )                                                                512,101
- Interest expense                                                                                                                                                                                                                                                                                                                                                       45,616                                                                                                                                                                                                                                                                                                                                                               41,636
- Provision for income taxes                                                                                                                                                                                                                                                                                                                                             97,403                                                                                                                                                                                                                                                                                                                                                              109,538
- Depreciation and amortization                                                                                                                                                                                                                                                                                                                       86,892                                                                                                                                                                                                                                                                                                                         78,120  
                                                                                                                                                                                                                                                                                                                                                 -------------------- --------- --------------------                                                                                                                                                                                                                                                                                                                  -------------------- --------- --------------------
Net income                                                                                                                                                                                                                                                                                                                                                          $   271,109                                                                                                                                                                                                                                                                                                                                       $   282,807  
                                                                                                                                                                                                                                                                                                                                                 ==================== ========= ====================                                                                                                                                                                                                                                                                                                                  ==================== ========= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
Net sales (eliminations)                                                $ 849,101                                                              $ 744,809                                                              $ 520,009                                                              $    (876 )                                                            $ 2,113,043                                                              $ 860,792                                                              $ 738,996                                                              $ 423,915                                                              $  (3,035 )                                                            $ 2,020,668
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
Operating margin                                                             25.2 %                                                                 20.6 %                                                                 23.4 %                                                                  n/m                                                                     19.2 %                                                                 23.8 %                                                                 21.4 %                                                                 27.3 %                                                                  n/m                                                                     21.4 %
EBITDA margin                                                                28.6 %                                                                 27.0 %                                                                 26.0 %                                                                  n/m                                                                     23.7 %                                                                 27.1 %                                                                 27.2 %                                                                 29.1 %                                                                  n/m                                                                     25.3 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      

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

                                                                                                                                                                                                                                                                                For the Quarter Ended December 31,
                                                                                                                                                                                                                                   2016                                                                                                                                                                                                                                                                                                                                            2015
                                                              ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                      FMT                                                 HST                                                FSDP                                              Corporate                                             IDEX                                                                    FMT                                                 HST                                                FSDP                                              Corporate                                             IDEX
                                                              ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- --------------------------------------------------                     ---------------------------------------------------------------------- ---------------------------------------------------------------------- --------------------------------------------------                     ---------------------------------------------------------------------- --------------------------------------------------
EBITDA                                                                           $  59,665                                           $  47,403                                           $  34,033                                           $ (33,777 )                                         $ 107,324                                                              $  57,128                                           $  50,844                                           $  26,404                                                              $ (15,317 )                                         $ 119,059
+Restructuring expenses                                                                932                                                                  1,117                                                                  1,425                                                                    200                                                                  3,674                                                                  4,585                                                                  1,634                                                                    297                                                                      -                                                                  6,516
+Loss (gain) on sale of businesses - net                                                 -                                                                      -                                                                      -                                                                 20,231                                                                 20,231                                                                      -                                                                      -                                                                      -                                                                      -                                                                      -
+Pension settlement                                               2,032                                -                              540                              982                            3,554                                -                                -                                -                                -                                -  
                                                              -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------
Adjusted EBITDA                                                                  $  62,629                                           $  48,520                                           $  35,998                                           $ (12,364 )                                                            $ 134,783                                           $  61,713                                           $  52,478                                           $  26,701                                           $ (15,317 )                                                            $ 125,575  
                                                              ==================== ======= ====================                      ==================== ======= ====================                      ==================== ======= ====================                      ==================== ======= ====================                      ==================== ======= ====================                      ==================== ======= ====================                      ==================== ======= ====================                      ==================== ======= ====================                      ==================== ======= ====================                      ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Adjusted EBITDA margin                                                                30.2 %                                                                 25.8 %                                                                 26.7 %                                                                  n/m                                                                   25.4 %                                                                 28.7 %                                                                 28.1 %                                                                 27.2 %                                                                  n/m                                                                   25.1 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                                   For the Year Ended December 31,
                                                                                                                                                                                                                                   2016                                                                                                                                                                                                                                                                                                                                                               2015
                                                              ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                      FMT                                                 HST                                                FSDP                                              Corporate                                             IDEX                                                                    FMT                                                 HST                                                FSDP                                                                 Corporate                                             IDEX
                                                              ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- --------------------------------------------------                     ---------------------------------------------------------------------- ---------------------------------------------------------------------- --------------------------------------------------                     ---------------------------------------------------------------------- --------------------------------------------------
EBITDA                                                                           $ 242,892                                                              $ 200,980                                                              $ 135,400                                                              $ (78,252 )                                                            $ 501,020                                                              $ 233,008                                                              $ 200,953                                                              $ 123,249                                                              $ (45,109 )                                                            $ 512,101
+Restructuring expenses                                                                932                                                                  1,117                                                                  1,425                                                                    200                                                                  3,674                                                                  7,090                                                                  3,408                                                                    576                                                                    165                                                                 11,239
+Loss (gain) on sale of businesses - net                                                 -                                                                      -                                                                      -                                                                 22,298                                                                 22,298                                                                      -                                                                      -                                                                      -                                                                (18,070 )                                                              (18,070 )
+Pension settlement                                               2,032                                -                              540                              982                            3,554                                -                                -                                -                                -                                -  
                                                              -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------
Adjusted EBITDA                                                                  $ 245,856                                           $ 202,097                                           $ 137,365                                           $ (54,772 )                                                            $ 530,546                                           $ 240,098                                           $ 204,361                                           $ 123,825                                           $ (63,014 )                                                            $ 505,270  
                                                              ==================== ======= ====================                      ==================== ======= ====================                      ==================== ======= ====================                      ==================== ======= ====================                      ==================== ======= ====================                      ==================== ======= ====================                      ==================== ======= ====================                      ==================== ======= ====================                      ==================== ======= ====================                      ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Adjusted EBITDA margin                                                                29.0 %                                                                 27.1 %                                                                 26.4 %                                                                  n/m                                                                   25.1 %                                                                 27.9 %                                                                 27.7 %                                                                 29.2 %                                                                  n/m                                                                   25.0 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           

Table 6: Reconciliations of Free Cash Flow (in thousands)

                                                                                                                       For the Quarter Ended                                                                                                    For the Year Ended
                                                                                                           December 31,                                               Sept 30,                                                                                        December 31,
                                                                          ------------------------------------------------------------------------------                                          -----------------------------                                          ----------------------------------------------------------------------------------
                                                                                      2016                           2015                                                                  2016                                                                   2016                             2015
                                                                          -----------------------------                     ----------------------------                                          -----------------------------                                          -----------------------------                     --------------------------------
                                                                                                                                                                                                                                                                                                                            
Cash flow from operating activities                                                          $ 115,593                                         $ 98,540                                                              $ 125,480                                                              $ 399,917                                         $    360,321
- Capital expenditures                                                                           9,600                                           11,165                                                                 11,590                                                                 38,242                                               43,776
+ Excess tax benefit from share-based compensation *                              -                           915                                                   -                                                   -                             5,265
                                                                          -------------------- -------                      -------------------- ------                                           -------------------- -------                                           -------------------- -------                      -------------------- ----------
Free cash flow                                                                               $ 105,993                                         $ 88,290                                                              $ 113,890                                                              $ 361,675                                         $    321,810
                                                                          ==================== =======                      ==================== ======                                           ==================== =======                                           ==================== =======                      ==================== ==========
* The Company early adopted ASU 2016-09 effective in the first
quarter of 2016. This ASU issued in March of 2016 simplifies the
accounting for share-based payments, including the presentation of
the excess tax benefit on the statement of cash flows.
 

Conference Call to be Broadcast over the Internet

IDEX will broadcast its fourth quarter earnings conference call over the Internet on Tuesday, January 31, 2017 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 www.idexcorp.com. 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 #13652250.

Forward-Looking Statements

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 "anticipate," "estimate," "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 and 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.

About IDEX

IDEX Corporation is an applied solutions company specializing in fluid and metering technologies, health and science technologies, and fire, safety and other diversified products built to its customers’ exacting specifications. Its products are sold in niche markets to a wide range of industries throughout the world. IDEX shares are traded on the New York Stock Exchange and Chicago Stock Exchange under the symbol "IEX".

For further information on IDEX Corporation and its business units, visit the company’s website at www.idexcorp.com.

(Financial reports follow)

 
                                                                                                                                                                  IDEX CORPORATION
                                                                                                                                                   Condensed Consolidated Statements of Operations
                                                                                                                                                       (in thousands except per share amounts)
                                                                                                                                                                     (unaudited)
                                                                                                                                                                                                
                                                                                                                               Quarter Ended                                                                                                                                    Year Ended
                                                                                                                               December 31,                                                                                                                                    December 31,
                                       2016                                                2015                                                 2016                                                  2015
------------------------- ------------------------- -------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- ------------------------------------------------------------------------ ----------------------------------------------------
                                                                                                                                                                                                                                                                                                 
Net sales                                                                                   $ 530,419                                                              $ 499,798                                                              $ 2,113,043                                                              $ 2,020,668
Cost of sales                                           297,934       276,399       1,182,276       1,116,353  
------------------------------------------------------------------------ -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- --------------------
Gross profit                                                                                  232,485                                                                223,399                                                                  930,767                                                                  904,315
Selling, general and administrative expenses                                                  127,169                                                                118,624                                                                  498,994                                                                  479,408
Restructuring expenses                                                                          3,674                                                                  6,516                                                                    3,674                                                                   11,239
Loss (gain) on sale of businesses - net                  20,231             -          22,298         (18,070 )
------------------------------------------------------------------------ -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- --------------------
Operating income                                                                               81,411                                                                 98,259                                                                  405,801                                                                  431,738
Other (income) expense - net                                                                   (3,345 )                                                                 (654 )                                                                 (8,327 )                                                                 (2,243 )
Interest expense                                         12,009        10,226          45,616          41,636  
------------------------------------------------------------------------ -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- --------------------
Income before income taxes                                                                     72,747                                                                 88,687                                                                  368,512                                                                  392,345
Provision for income taxes                               15,400        20,924          97,403         109,538  
------------------------------------------------------------------------ -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- --------------------
Net income                                                               $  57,347                        $  67,763                        $   271,109                        $   282,807  
======================================================================== ==================== ======= ==================== ==================== ==================== ======= ==================== ==================== ==================== ========= ==================== ==================== ==================== ========= ====================
                                                                                                                                                                                                                                                                                                 
Earnings per Common Share (a):
                                                                                                                                                                                                                                                                                                                                
Basic earnings per common share                                                             $    0.75                                                              $    0.89                                                              $      3.57                                                              $      3.65
                                                                                                                                                                                                                                                                                                                                
Diluted earnings per common share                                                           $    0.75                                                              $    0.88                                                              $      3.53                                                              $      3.62
                                                                                                                                                                                                                                                                                                 
Share Data:
                                                                                                                                                                                                                                                                                                 
Basic weighted average common shares outstanding                                               75,955                                                                 76,211                                                                   75,803                                                                   77,126
                                                                                                                                                                                                                                                                                                 
Diluted weighted average common shares outstanding                                             76,806                                                                 77,091                                                                   76,758                                                                   77,972
                                                                                                                                                                                                                                                                                                 
                                                                                                                                                                                                                                                                                                 
                                                                                                                                                        Condensed Consolidated Balance Sheets
                                                                                                                                                                   (in thousands)
                                                                                                                                                                     (unaudited)
                                                                                                                                                                                                                                                                                                 
                                                                                                                                                                                                                                           December 31,                                                             December 31,
                                                                                                          2016                                                  2015
------------------------- ------------------------- -------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- ------------------------------------------------------------------------ ----------------------------------------------------
                                                                                                                                                                                                                                                                                                 
Assets
  Current assets
    Cash and cash equivalents                                                                                                                                                                                                             $   235,964                                                              $   328,018
    Receivables - net                                                                                                                                                                                                                         272,813                                                                  260,000
    Inventories                                                                                                                                                                                                                               252,859                                                                  239,124
    Other current assets                                                                                                     61,085          35,542  
------------------------------------------------------------------------ ---------------------------------------------------------------------- ---------------------------------------------------------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- --------------------
  Total current assets                                                                                                                                                                                                                        822,721                                                                  862,684
  Property, plant and equipment - net                                                                                                                                                                                                         247,816                                                                  240,945
  Goodwill and intangible assets                                                                                                                                                                                                            2,068,096                                                                1,684,366
  Other noncurrent assets                                                                                                    16,311          17,448  
------------------------------------------------------------------------ ---------------------------------------------------------------------- ---------------------------------------------------------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- --------------------
      Total assets                                                                                                                         $ 3,154,944                        $ 2,805,443  
======================================================================== ====================================================================== ====================================================================== ==================== ========= ==================== ==================== ==================== ========= ====================
                                                                                                                                                                                                                                                                                                 
Liabilities and shareholders’ equity
  Current liabilities
    Trade accounts payable                                                                                                                                                                                                                $   128,933                                                              $   128,911
    Accrued expenses                                                                                                                                                                                                                          152,852                                                                  153,672
    Short-term borrowings                                                                                                                                                                                                                       1,046                                                                    1,087
    Dividends payable                                                                                                        26,327          25,927  
------------------------------------------------------------------------ ---------------------------------------------------------------------- ---------------------------------------------------------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- --------------------
  Total current liabilities                                                                                                                                                                                                                   309,158                                                                  309,597
  Long-term borrowings                                                                                                                                                                                                                      1,014,235                                                                  839,707
  Other noncurrent liabilities                                                                                              287,657         212,848  
------------------------------------------------------------------------ ---------------------------------------------------------------------- ---------------------------------------------------------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- --------------------
    Total liabilities                                                                                                                                                                                                                       1,611,050                                                                1,362,152
  Shareholders’ equity                                                                                                    1,543,894       1,443,291  
------------------------------------------------------------------------ ---------------------------------------------------------------------- ---------------------------------------------------------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- --------------------
      Total liabilities and shareholders’ equity                                                                                           $ 3,154,944                        $ 2,805,443  
======================================================================== ====================================================================== ====================================================================== ==================== ========= ==================== ==================== ==================== ========= ====================
                                                                                                                                                                                                                                                                                                                                
                                                                                                  IDEX CORPORATION
                                                                                   Condensed Consolidated Statements of Cash Flows
                                                                                                   (in thousands)
                                                                                                     (unaudited)
                                                                                                                           
                                                                                                                                            Year Ended December 31,
                                                                           2016                                                 2015
-------------------------------------------------------------------- -------------------- ----------------------------------------------------------------------- ---------------------------------------------------
                                                                                                                                                                   
Cash flows from operating activities
Net income                                                                                                   $  271,109                                                              $  282,807
Adjustments to reconcile net income to net cash provided by
operating activities:
  Loss (gain) on sale of businesses - net                                                                        22,298                                                                 (18,070 )
  Asset impairments                                                                                                 205                                                                     795
  Gain on sale of fixed assets                                                                                      (28 )                                                                  (114 )
  Depreciation and amortization                                                                                  37,854                                                                  35,694
  Amortization of intangible assets                                                                              49,038                                                                  42,426
  Amortization of debt issuance costs                                                                             1,295                                                                   1,612
  Share-based compensation expense                                                                               20,326                                                                  20,048
  Deferred income taxes                                                                                         (18,009 )                                                                  (339 )
  Excess tax benefit from share-based compensation                                                                    -                                                                  (5,265 )
  Non-cash interest expense associated with forward starting swaps                                                6,851                                                                   7,030
  Pension settlement                                                                                              3,554                                                                       -
  Changes in (net of the effect from acquisitions and divestitures):
    Receivables                                                                                                     302                                                                   8,832
    Inventories                                                                                                  32,747                                                                   4,557
    Other current assets                                                                                        (22,006 )                                                                (2,728 )
    Trade accounts payable                                                                                           73                                                                  (2,828 )
    Accrued expenses                                                                                             (5,470 )                                                               (16,672 )
  Other -- net                                                   (222 )                           2,536  
-------------------------------------------------------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------- --------------------
    Net cash flows provided by operating activities                                                             399,917                                                                 360,321
Cash flows from investing activities
  Additions of property, plant and equipment                                                                    (38,242 )                                                               (43,776 )
  Acquisition of businesses, net of cash acquired                                                              (510,001 )                                                              (195,013 )
  Proceeds from sale of businesses, net of cash sold                                                             39,064                                                                  27,677
  Proceeds from fixed asset disposals                                                                                49                                                                     894
  Other -- net                                                    (69 )                            (273 )
-------------------------------------------------------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------- --------------------
    Net cash flows used in investing activities                                                                (509,199 )                                                              (210,491 )
Cash flows from financing activities
  Borrowings under revolving facilities                                                                         501,529                                                                 414,032
  Proceeds from 3.20% Senior Notes                                                                              100,000                                                                       -
  Proceeds from 3.37% Senior Notes                                                                              100,000                                                                       -
  Payments under revolving facilities                                                                          (520,125 )                                                              (333,630 )
  Payment of 2.58% Senior Euro Notes                                                                                  -                                                                 (88,420 )
  Debt issuance costs                                                                                              (246 )                                                                (1,739 )
  Dividends paid                                                                                               (102,650 )                                                               (96,172 )
  Proceeds from stock option exercises                                                                           30,240                                                                  19,217
  Excess tax benefit from share-based compensation                                                                    -                                                                   5,265
  Purchase of common stock                                                                                      (57,272 )                                                              (210,822 )
  Unvested shares surrendered for tax withholding                          (4,928 )                          (3,259 )
-------------------------------------------------------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------- --------------------
    Net cash flows provided by (used in) financing activities                                                    46,548                                                                (295,528 )
Effect of exchange rate changes on cash and cash equivalents              (29,320 )                         (35,421 )
-------------------------------------------------------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------- --------------------
Net decrease in cash                                                                                            (92,054 )                                                              (181,119 )
Cash and cash equivalents at beginning of year                            328,018        509,137  
-------------------------------------------------------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------- --------------------
Cash and cash equivalents at end of period                                                $  235,964                        $  328,018  
==================================================================== ==================== ==================== ======== ==================== ==================== ==================== ======== ====================
                                                                                                                                                                                                 
                                                                                                                                                                                                                                     IDEX CORPORATION
                                                                                                                                                                                                                       Company and Segment Financial Information - Reported
                                                                                                                                                                                                                                     (dollars in thousands)
                                                                                                                                                                                                                                     (unaudited)
                                                                                                                                                                                                                                                                                            
                                                                                                                                                                  Quarter Ended                                                                                                                                                                                                      Year Ended
                                                                                                                                                                December 31, (b)                                                                                                                                                                                                  December 31, (b)
                                                        2016                                                               2015                                                               2016                                                               2015                               
                     -------------------- -------------------- -------------------- ----------------------------------------------------------------------------------- -------------------- ----------------------------------------------------------------------------------- -------------------- ----------------------------------------------------------------------------------- -------------------- -----------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
                     Fluid & Metering Technologies
                       Net sales                                                                       $              207,113                                                                                   $              215,150                                                                                   $              849,101                                                                                   $              860,792
                       Operating income (c)                                                                            53,376                                                                                                   49,841                                                                                                  214,242                                                                                                  204,506
                       Operating margin                                                                                  25.8                      %                                                                              23.2                      %                                                                              25.2                      %                                                                              23.8                      %
                       EBITDA                                                                          $               59,665                                                                                   $               57,128                                                                                   $              242,892                                                                                   $              233,008
                       EBITDA margin                                                                                     28.8                      %                                                                              26.6                      %                                                                              28.6                      %                                                                              27.1                      %
                       Depreciation and amortization                                                   $                6,447                                                                                   $                7,341                                                                                   $               28,458                                                                                   $               27,662
                       Capital expenditures                                                                             3,685                                                                                                    4,997                                                                                                   16,389                                                                                                   22,846
                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
                     Health & Science Technologies
                       Net sales                                                                       $              188,334                                                                                   $              186,578                                                                                   $              744,809                                                                                   $              738,996
                       Operating income (c)                                                                            34,694                                                                                                   40,060                                                                                                  153,722                                                                                                  157,948
                       Operating margin                                                                                  18.4                      %                                                                              21.5                      %                                                                              20.6                      %                                                                              21.4                      %
                       EBITDA                                                                          $               47,403                                                                                   $               50,844                                                                                   $              200,980                                                                                   $              200,953
                       EBITDA margin                                                                                     25.2                      %                                                                              27.3                      %                                                                              27.0                      %                                                                              27.2                      %
                       Depreciation and amortization                                                   $               12,254                                                                                   $               10,953                                                                                   $               45,298                                                                                   $               42,827
                       Capital expenditures                                                                             4,210                                                                                                    4,349                                                                                                   15,665                                                                                                   13,104
                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
                     Fire & Safety/Diversified Products
                       Net sales                                                                       $              135,013                                                                                   $               98,343                                                                                   $              520,009                                                                                   $              423,915
                       Operating income (c)                                                                            30,179                                                                                                   24,565                                                                                                  121,888                                                                                                  115,745
                       Operating margin                                                                                  22.4                      %                                                                              25.0                      %                                                                              23.4                      %                                                                              27.3                      %
                       EBITDA                                                                          $               34,033                                                                                   $               26,404                                                                                   $              135,400                                                                                   $              123,249
                       EBITDA margin                                                                                     25.2                      %                                                                              26.8                      %                                                                              26.0                      %                                                                              29.1                      %
                       Depreciation and amortization                                                   $                3,640                                                                                   $                1,477                                                                                   $               11,956                                                                                   $                6,051
                       Capital expenditures                                                                             1,640                                                                                                    1,676                                                                                                    5,945                                                                                                    5,804
                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
                     Corporate Office and Eliminations
                       Intersegment sales eliminations                                                 $                  (41 )                                                                                 $                 (273 )                                                                                 $                 (876 )                                                                                 $               (3,035 )
                       Operating loss (c)                                                                             (36,838 )                                                                                                (16,207 )                                                                                                (84,051 )                                                                                                (46,461 )
                       EBITDA                                                                                         (33,777 )                                                                                                (15,317 )                                                                                                (78,252 )                                                                                                (45,109 )
                       Depreciation and amortization                                                                      227                                                                                                      375                                                                                                    1,180                                                                                                    1,580
                       Capital expenditures                                                                                65                                                                                                      143                                                                                                      243                                                                                                    2,022
                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
                     Company
                       Net sales                                                                       $              530,419                                                                                   $              499,798                                                                                   $            2,113,043                                                                                   $            2,020,668
                       Operating income                                                                                81,411                                                                                                   98,259                                                                                                  405,801                                                                                                  431,738
                       Operating margin                                                                                  15.3                      %                                                                              19.7                      %                                                                              19.2                      %                                                                              21.4                      %
                       EBITDA                                                                          $              107,324                                                                                   $              119,059                                                                                   $              501,020                                                                                   $              512,101
                       EBITDA margin                                                                                     20.2                      %                                                                              23.8                      %                                                                              23.7                      %                                                                              25.3                      %
                       Depreciation and amortization (d)                                               $               22,568                                                                                   $               20,146                                                                                   $               86,892                                                                                   $               78,120
                       Capital expenditures                                                                             9,600                                                                                                   11,165                                                                                                   38,242                                                                                                   43,776
                                                                                   
                     -------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
 (a)  Calculated by applying the two-class method of allocating
                         earnings to common stock and participating securities as required by
                         ASC 260, Earnings Per Share.
                          
 (b)                     Three and twelve month data includes acquisition of Alfa Valvole
                         (June 2015) in the Fluid & Metering Technologies segment, Novotema
                         (June 2015), CiDRA Precision Services (July 2015) and SFC Koenig
                         (September 2016) in the Health & Science Technologies segment and
                         Akron Brass (March 2016) and AWG Fittings (July 2016) in the Fire &
                         Safety/Diversified segment from the date of acquisition. Three and
                         twelve month data also includes the results of Hydra-Stop (July
                         2016) and IETG (October 2016) in the Fluid & Metering Technologies
                         segment and Ismatec (July 2015), CVI Japan (September 2016) and CVI
                         Korea (December 2016) in the Health & Science Technologies segment
                         through the date of disposition.
                          
 (c)                     Segment operating income excludes unallocated corporate operating
                         expenses which are included in Corporate Office and Eliminations.
                          
 (d)                     Depreciation and amortization excludes amortization of debt
                         issuance costs.
                          

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20170130006196r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20170130006196/en/

SOURCE: IDEX Corporation

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


Register |  Password |  Feedback |  Copyright |  Usage Agreement |  Privacy Policy |  Advertising |  About Us |  Contact Us |  FAQ 

Past performance is not indicative of future results

StockSelector.com, the StockSelector.com logo, and News Selects are trademarks of StockSelector.com.
Copyright © 1998 - 2019 StockSelector.com. All rights reserved.