StockSelector.com
  Research, Select, & Monitor Thursday, May 23, 2019 9:03:06 PM ET  
Trade Ideas The Market Industries Stocks Portfolio

 
Ticker Lookup
IDEX Corporation$150.74($1.08)(.71%)

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

Your Target?

 IDEX Reports Record Fourth Quarter and Full Year 2017 Results; Q4 Orders and Sales up 10 Percent Overall and 9 Percent Organically; Q4 Reported EPS Was $1.21 with Adjusted EPS of $1.12
   Monday, January 29, 2018 5:31:00 PM ET

IDEX Corporation (IEX ) today announced its financial results for the three- and twelve- month periods ended December 31, 2017.

Full Year 2017 Highlights

-- Orders were up 9 percent overall and 7 percent organically

-- Sales were up 8 percent overall and 6 percent organically

-- Reported EPS was $4.36 with adjusted EPS of $4.31, up 15 percent

-- Cash from operations of $432.8 million led to FCF of $388.9 million, 117 percent of adjusted net income

-- Acquired thinXXS Microtechnology and divested Faure Herman

-- The enactment of the Tax Cuts and Jobs Act resulted in a $0.1 million net income tax benefit



Full Year 2017

Orders of $2.3 billion were up 9 percent compared with the prior year (+7 percent organic and +2 percent acquisitions/divestitures).

Sales of $2.3 billion were up 8 percent compared with the prior year (+6 percent organic and +2 percent acquisitions/divestitures).

Gross margin of 44.9 percent was up 90 basis points compared with the prior year. Excluding $14.7 million of pre-tax fair value inventory step-up charges from acquisitions in the prior year period, gross margin increased 20 basis points.

Operating income of $502.6 million resulted in an operating margin of 22.0 percent. Excluding a $9.3 million gain on divestiture and $8.5 million of restructuring expenses, adjusted operating income was $501.7 million with an adjusted operating margin of 21.9 percent, up 120 basis points from the prior year. Excluding the fair value step-up charges from acquisitions in the prior year period, adjusted operating margin was up 50 basis points. Adjusted operating income drove adjusted EBITDA of $583.6 million which was 26 percent of sales and covered interest expense by 13 times.

Provision for income taxes of $118.0 million resulted in an effective tax rate (ETR) of 25.9 percent and included the tax impact from the gain on divestiture and restructuring expenses. Excluding the tax impact from the gain on divestiture and restructuring expenses, provision for income taxes was $120.8 million which resulted in an adjusted ETR of 26.6 percent.

Net income was $337.3 million which resulted in EPS of $4.36. Excluding the gain on divestiture and restructuring expenses, adjusted EPS of $4.31 increased 56 cents, or 15 percent, from prior year adjusted EPS.

Cash from operations of $432.8 million was up 8 percent from the prior year and led to free cash flow of $388.9 million, which was up 8 percent from the prior year and 117 percent of adjusted net income.

Fourth Quarter 2017

Orders of $603.0 million were up 10 percent compared with the prior year period (+9 percent organic, -1 percent acquisition/divestitures and +2 percent foreign currency translation).

Sales of $585.9 million were up 10 percent compared with the prior year period (+9 percent organic, -1 percent acquisition/divestitures and +2 percent foreign currency translation).

Gross margin of 44.5 percent was up 70 basis points compared with the prior year period. Excluding the $4.4 million pre-tax fair value inventory step-up charge from an acquisition in the prior year period, gross margin was down 20 basis points primarily due to additional engineering investments and operational challenges associated with the strong growth within HST.

Operating income of $135.2 million resulted in an operating margin of 23.1 percent. Excluding a $9.3 million gain on divestiture and $3.7 million of restructuring expenses, adjusted operating income was $129.6 million with an adjusted operating margin of 22.1 percent, up 150 basis points from the prior year. Excluding the fair value step-up charge from an acquisition in the prior year period, adjusted operating margin was up 60 basis points. Adjusted operating income drove adjusted EBITDA of $149.4 million which was 25 percent of sales and covered interest expense by 14 times.

Provision for income taxes of $29.9 million resulted in an ETR of 24.2 percent and included the tax impact from the gain on divestiture and restructuring expenses. Excluding the tax impact from the gain on divestiture and restructuring expenses, provision for income taxes was $31.1 million which resulted in an adjusted ETR of 26.4 percent.

Net income was $93.7 million which resulted in EPS of $1.21. Excluding the gain on divestiture and restructuring expenses, adjusted EPS of $1.12 increased 16 cents, or 17 percent, from the prior year period adjusted EPS.

Cash from operations of $136.2 million was up 18 percent from the prior year period and led to free cash flow of $120.4 million, which was up 14 percent from the prior year period and 139 percent of adjusted net income.

 
--------------------------------------------------------------------------------------------------------------------------------
"Strong demand and solid execution, coupled with favorable market
conditions, drove a record year for IDEX. We delivered all-time
highs in orders, sales, operating margin, EPS and free cash flow.
Our fourth quarter adjusted EPS of $1.12 was also a record and 5
cents above the midpoint of our previous guidance, 2 cents of which
was operational over-performance while 3 cents was due to a lower
effective tax rate compared to our prior estimate. While I am very
pleased with our financial results, I am even more encouraged with
the organization’s progress on our targeted organic growth
initiatives. This once again enabled us to outperform the market,
evidenced by our 9 percent organic growth rate for both orders and
sales within the fourth quarter.
       
In the fourth quarter we executed on our disciplined capital
deployment and segmentation strategies as we sold our Faure Herman
business within our Energy group, and purchased thinXXS to support
our microfluidics technologies within our Scientific Fluidics &
Optics group. We continue to invest in the best organic growth
opportunities and remain committed to strategic M&A, shareholder
dividends and opportunistically repurchasing shares. Tax Reform in
the United States will help bolster our already strong financial
profile by providing additional earnings, cash flow and capital
availability. We will use these additional resources to drive our
existing strategy to maximize profitable growth and strong returns
on capital. In line with our expectations for earnings growth in
2018, and subject to Board approval, we intend to raise our dividend
15 to 18 percent which would take us to the high end of our stated
goal of distributing 30 to 35 percent of earnings to our
shareholders.
                                                                                     
Based on continued order strength in the fourth quarter, as well as
benefits from our growth initiatives and segmentation efforts, we
project approximately 5 percent organic revenue growth in 2018. Full
year 2018 EPS is expected to be in the range of $4.90 to $5.10, with
first quarter EPS in the range of $1.20 to $1.24. At the mid-point
of our expected full year 2018 guidance, EPS is up 69 cents, or 16
percent, compared to adjusted 2017 EPS of $4.31. Approximately 60
percent of the increase is due to our organic growth and operational
initiatives, while the remaining 40 percent is the result of an
expected 2018 effective tax rate in the range of 22 to 23 percent."
                                                                                     
                                                                                           Andrew K. Silvernail
               Chairman and Chief Executive Officer
-------------------- -------------------- -------------------- -------------------- -------------------------------------------
                                                                                     

Fourth Quarter 2017 Segment Highlights

Fluid & Metering Technologies

-- Sales of $222.1 million reflected a 7 percent increase compared to the fourth quarter of 2016 (+7 organic, -2 percent divestiture and +2 percent foreign currency translation).

-- Operating income of $61.2 million resulted in an operating margin of 27.6 percent. Excluding $1.8 million of restructuring expenses, adjusted operating income was $63.0 million with an adjusted operating margin of 28.4 percent, a 100 basis point increase compared to the prior year period primarily due to higher volume and productivity initiatives.

-- EBITDA of $66.7 million resulted in an EBITDA margin of 30.0 percent. Excluding $1.8 million of restructuring expenses, adjusted EBITDA of $68.5 million resulted in an adjusted EBITDA margin of 30.8 percent, a 60 basis point increase compared to the prior year period.

Health & Science Technologies

-- Sales of $208.9 million reflected an 11 percent increase compared to the fourth quarter of 2016 (+11 percent organic, -2 percent acquisition/divestiture and +2 percent foreign currency translation).

-- Operating income of $44.9 million resulted in an operating margin of 21.5 percent. Excluding $1.7 million of restructuring expenses, adjusted operating income was $46.6 million with an adjusted operating margin of 22.3 percent, a 330 basis point increase compared to the prior year period primarily due to the $4.4 million pre-tax fair value inventory step-up charge from the SFC acquisition and higher volume.

-- EBITDA of $56.7 million resulted in an EBITDA margin of 27.1 percent. Excluding $1.7 million of restructuring expenses, adjusted EBITDA of $58.4 million resulted in an adjusted EBITDA margin of 27.9 percent, a 210 basis point increase compared to the prior year period.

Fire & Safety/Diversified Products

-- Sales of $155.5 million reflected a 15 percent increase compared to the fourth quarter of 2016 (+12 percent organic and +3 percent foreign currency translation).

-- Operating income of $41.0 million resulted in an operating margin of 26.4 percent. Excluding $0.2 million of restructuring expenses, adjusted operating income was $41.2 million with an adjusted operating margin of 26.5 percent, a 250 basis point increase compared to the prior year period primarily due to higher volume and productivity initiatives.

-- EBITDA of $44.3 million resulted in an EBITDA margin of 28.5 percent. Excluding $0.2 million of restructuring expenses, adjusted EBITDA of $44.5 million resulted in an adjusted EBITDA margin of 28.6 percent, a 190 basis point increase compared to the prior year period.

For the fourth quarter of 2017, Fluid & Metering Technologies contributed 38 percent of sales, 41 percent of operating income and 40 percent of EBITDA; Health & Science Technologies accounted for 36 percent of sales, 31 percent of operating income and 34 percent of EBITDA; and Fire & Safety/Diversified Products represented 26 percent of sales, 28 percent of operating income and 26 percent of EBITDA.

Corporate Costs

Corporate costs, excluding the net loss (gain) on divestitures, increased to $21.2 million in the fourth quarter of 2017 from $15.5 million in the fourth quarter of 2016 as a result of higher variable and stock compensation and outside consulting costs.

Corporate costs, excluding restructuring expenses and the net loss (gain) on divestitures, increased to $74.2 million in 2017 compared to $59.9 million in 2016 as a result of higher variable and stock compensation and outside consulting costs in 2017 and the prior year benefiting from the reversal of $4.7 million of contingent consideration.

Restructuring Actions

The Company recorded $3.7 million and $8.5 million of restructuring expenses in the fourth quarter and full year 2017, respectively, 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. A portion of the restructuring expenses also relates to expenses associated with the consolidation of three facilities into our Optics Center of Excellence in Rochester, New York. The consolidation of these facilities is expected to be completed by early 2019.

Acquisition/Divestiture

In October 2017, the Company divested Faure Herman, a business within the Energy group of our Fluid & Metering Technologies segment. This business, which no longer aligned with our long-term strategic objectives, was sold for cash proceeds of $21.8 million and generated a gain of $9.3 million. This business contributed approximately $14 million of revenue through its date of sale which was included in the Company’s 2017 results.

In December 2017, the Company acquired thinXXS, a leader in the design, manufacture and sale of microfluidic components for the life science market. The addition of thinXXS to the Company’s existing Scientific Fluidics and Optics portfolio, within the Health & Science Technologies segment, provides us with a solid position as the next generation microfluidics technologies are adopted.

Tax Cuts and Jobs Act of 2017

In December 2017, the Tax Cuts and Jobs Act (Tax Reform) was enacted and lowers U.S. corporate income tax rates as of January 1, 2018, implements a territorial tax system and imposes a repatriation tax on deemed repatriated earnings of foreign subsidiaries. The estimated impact of Tax Reform was a decrease in income tax expense of $0.1 million in the fourth quarter of 2017. Although the net effect from Tax Reform was insignificant, there were several offsetting adjustments including a $40.6 million tax benefit due to the effects of the remeasurement of U.S. deferred taxes at the lower enacted corporate tax rate of 21 percent, offset by $30.2 million of expense related to repatriation taxes and $10.3 million of other tax expense due to tax planning strategies implemented in the fourth quarter of 2017 as a result of Tax Reform. These tax planning strategies will allow us increased flexibility to access our worldwide cash balances. The impact of Tax Reform may differ from this estimate due to, among other things, further refinement of the Company’s calculations, changes in interpretations and assumptions the Company has made, guidance that may be issued and actions the Company may take as a result of Tax Reform.

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 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 net loss or gain on sale of businesses.

-- 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 net 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 net 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 Organic Net Sales

                                                                                      For the Quarter Ended                                                                                                      For the Year Ended
                                                                                                           December 31, 2017                                                                                                                            December 31, 2017
                                                                  ---------------------------------------------------------------------------------------------------                     ---------------------------------------------------------------------------------------------------------------------------------------------
                                                                    FMT     HST          FSDP          IDEX                              FMT           HST          FSDP                         IDEX
                                                                  ------                     ------                     ------------------                     ------                     ------------------                     ------                     ------------------                     ------------------------------------
Change in net sales                                                7 %                       11 %                                   15 %                       10 %                                    4 %                       10 %                                   13 %                                    8 %
 - Net impact from acquisitions/divestitures                      (2 )%                      (2 )%                      -- %                       (1 )%                                  (2 )%                       3 %                                    9 %                                    2 %
 - Impact from FX                                                  2 %                        2 %                                    3 %                        2 %                       -- %                       (1 )%                      -- %                       -- %
                                                                  -- --                      -- --                      -------------- --                      -- --                      -------------- --                      -- --                      -------------- --                      -------------- --------------------
Change in organic net sales                                        7 %                       11 %                                   12 %                        9 %                                    6 %                        8 %                                    4 %                                    6 %
                                                                  == ==                      == ==                      ============== ==                      == ==                      ============== ==                      == ==                      ============== ==                      ============== ====================
                                                                                                                                                                                                                                                                                                                   

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

                                                                                                                                                                                                                                                                                  For the Quarter Ended December 31,
                                                                ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                          2017                                                                                                                                                                                                                                                            2016 (a)
                                                                ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                 FMT                                    HST                                   FSDP                         Corporate                     IDEX                                                     FMT                                    HST                                   FSDP                               Corporate                              IDEX
                                                                -------------------------------------                     -------------------------------------                     -------------------------------------                     --------------------                     ---------------------------------                     -------------------------------------                     -------------------------------------                     -------------------------------------                     ---------------------------------                     ------------------------------------
Reported operating income (loss)                                      $  61,200                                                 $  44,962                                                 $  41,006                                                 $ (11,920 )                                                $135,248                            $  55,718                                                 $  34,706                                                 $  31,039                                             $ (35,942 )                                                                     $85,521
 + Restructuring expenses                                                 1,808                                                     1,668                                                       182                                            --                                3,658                                                       932                                                     1,117                                                     1,425                                                   200                                                    3,674
 + Loss (gain) on sale of businesses - net                       --                         --                         --                                 (9,273 )                             (9,273 )                                          --                         --                         --                             20,231                                20,231  
                                                                ------------------------------------                      ------------------------------------                      ------------------------------------                      -------------------                      --------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------                      --------------------------------                      -----------------------------------
Adjusted operating income (loss)                                      $  63,008                              $  46,630                              $  41,188                              $ (21,193 )                          $ 129,633                              $  56,650                              $  35,823                              $  32,464                          $ (15,511 )                                              $ 109,426  
                                                                ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================                      ======= ======= ===                      === ======= ====================                      ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================                      === ======= ====================                      ====== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
Net sales (eliminations)                                              $ 222,052                                                 $ 208,916                                                 $ 155,504                                                 $    (568 )                          $ 585,904                                                 $ 207,113                                                 $ 188,334                                                 $ 135,013                                             $     (41 )                                              $ 530,419
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
Reported operating margin                                                  27.6                    %                                 21.5                    %                                 26.4                    %                                      n/m                             23.1                    %                                 26.9                    %                                 18.4                    %                                 23.0                    %                                                   n/m                                16.1                    %
Adjusted operating margin                                                  28.4                    %                                 22.3                    %                                 26.5                    %                                      n/m                             22.1                    %                                 27.4                    %                                 19.0                    %                                 24.0                    %                                                   n/m                                20.6                    %
                                            
                                                                                                                                                                                                                                                                                                     For the Year Ended December 31,
                                                                ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                         2017                                                                                                                                                                                                                                                            2016 (a)
                                                                ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                 FMT                                    HST                                   FSDP                       Corporate                    IDEX                                                      FMT                                    HST                                   FSDP                               Corporate                               IDEX
                                                                -------------------------------------                     -------------------------------------                     -------------------------------------                     ----------------                     -----------------------------------                     -------------------------------------                     -------------------------------------                     -------------------------------------                     ---------------------------------                     --------------------------------------
Reported operating income (loss)                                      $ 241,030                                                 $ 179,567                                                 $ 147,028                                             $ (65,069 )                                                  $502,556                            $ 217,500                                                 $ 153,691                                                 $ 123,605                                             $ (82,399 )                                                                      $412,397
 + Restructuring expenses                                                 3,374                                                     4,696                                                       255                                                   130                                  8,455                                                       932                                                     1,117                                                     1,425                                                   200                                                      3,674
 + Loss (gain) on sale of businesses - net                       --                         --                         --                             (9,273 )                               (9,273 )                                          --                         --                         --                             22,298                                  22,298  
                                                                ------------------------------------                      ------------------------------------                      ------------------------------------                      ---------------                      ----------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------                      --------------------------------                      -------------------------------------
Adjusted operating income (loss)                                      $ 244,404                              $ 184,263                              $ 147,283                          $ (74,212 )                          $   501,738                              $ 218,432                              $ 154,808                              $ 125,030                          $ (59,901 )                                              $   438,369  
                                                                ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================                      === ======= ===                      === ========= ====================                      ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================                      === ======= ====================                      ====== ========= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
Net sales (eliminations)                                              $ 880,957                                                 $ 820,131                                                 $ 587,533                                             $  (1,309 )                          $ 2,287,312                                                 $ 849,101                                                 $ 744,809                                                 $ 520,009                                             $    (876 )                                              $ 2,113,043
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
Reported operating margin                                                  27.4                    %                                 21.9                    %                                 25.0                    %                                  n/m                               22.0                    %                                 25.6                    %                                 20.6                    %                                 23.8                    %                                                   n/m                                  19.5                    %
Adjusted operating margin                                                  27.7                    %                                 22.5                    %                                 25.1                    %                                  n/m                               21.9                    %                                 25.7                    %                                 20.8                    %                                 24.0                    %                                                   n/m                                  20.7                    %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 

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

                                                                                              For the Quarter Ended                                                                        For the Year Ended
                                                                                                                     December 31,                                                                                                   December 31,
                                                                              ------------------------------------------------------------------------------------------                     -------------------------------------------------------------------------------------------
                                                                                              2017                                 2016                                                   2017                                 2016
                                                                              -------------------------------------                     --------------------------------                     -------------------------------------                     ---------------------------------
Reported net income                                                                 $  93,746                                             $ 57,347                                                 $ 337,257                                             $ 271,109
 + Restructuring expenses                                                               3,658                                                3,674                                                     8,455                                                 3,674
 + Tax impact on restructuring expenses                                                (1,243 )                                             (1,299 )                                                  (2,772 )                                              (1,299 )
 + Loss (gain) on sale of businesses - net                                             (9,273 )                                             20,231                                                    (9,273 )                                              22,298
 + Tax impact on loss (gain) on sale of businesses - net                       --                                               (8,239 )                                          --                                                (9,706 )
 + Pension settlement                                                          --                                                3,554                                            --                                                 3,554
 + Tax impact on pension settlement                                            --                            (1,257 )                                          --                             (1,257 )
                                                                              ------------------------------------                      -------------------------------                      ------------------------------------                      --------------------------------
Adjusted net income                                                                 $  86,888                          $ 74,011                              $ 333,667                          $ 288,373  
                                                                              ======= ======= ====================                      === ====== ====================                      ======= ======= ====================                      === ======= ====================
                                                                                                                                                                                                                                                                    
                                                                                                For the Quarter                                                                           For the Year Ended
                                                                                                                 Ended December 31,                                                                                                December 31,
                                                                              ----------------------------------------------------------------------------------------                     ---------------------------------------------------------------------------------------------
                                                                                              2017                                2016                                                  2017                                  2016
                                                                              -------------------------------------                     ------------------------------                     -------------------------------------                     -----------------------------------
Reported EPS                                                                        $    1.21                                             $ 0.75                                                 $    4.36                                                $   3.53
 + Restructuring expenses                                                                0.05                                               0.05                                                      0.11                                                    0.05
 + Tax impact on restructuring expenses                                                 (0.02 )                                            (0.02 )                                                   (0.04 )                                                 (0.02 )
 + Loss (gain) on sale of businesses - net                                              (0.12 )                                             0.26                                                     (0.12 )                                                  0.29
 + Tax impact on loss (gain) on sale of businesses - net                       --                                              (0.11 )                                          --                                                   (0.13 )
 + Pension settlement                                                          --                                               0.05                                            --                                                    0.05
 + Tax impact on pension settlement                                            --                           (0.02 )                                          --                                (0.02 )
                                                                              ------------------------------------                      -----------------------------                      ------------------------------------                      ----------------------------------
Adjusted EPS                                                                        $    1.12                          $ 0.96                              $    4.31                             $   3.75  
                                                                              ======= ======= ====================                      === ==== ====================                      ======= ======= ====================                      ====== ====== ====================
                                                                                                                                                                                                                                                      
Diluted weighted average shares                                                        77,597                                             76,806                                                    77,333                                                  76,758
                                                                                                                                                                                                                                                                    

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

                                                                                                                                                                                                                                                                        For the Quarter Ended December 31,
                                                      ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                2017                                                                                                                                                                                                                                                       2016 (a)
                                                      ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                     FMT                                HST                               FSDP                             Corporate                            IDEX                                                   FMT                                HST                               FSDP                             Corporate                              IDEX
                                                      ---------------------------------                     ---------------------------------                     ---------------------------------                     ---------------------------------                     ---------------------------------                     ---------------------------------                     ---------------------------------                     ---------------------------------                     ---------------------------------                     ------------------------------------
Reported operating income (loss)                        $  61,200                                             $  44,962                                             $  41,006                                             $ (11,920 )                                           $ 135,248                                             $  55,718                                             $  34,706                                             $  31,039                                             $ (35,942 )                                              $  85,521
 - Other (income) expense - net                               300                                                  (892 )                                                 296                                                   973                                                   677                                                 2,500                                                  (443 )                                                 646                                                (1,938 )                                                    765
 + Depreciation and amortization                            5,764                             10,840                              3,603                                203                             20,410                              6,447                             12,254                              3,640                                227                                22,568  
                                                      --------------------------------                      --------------------------------                      --------------------------------                      --------------------------------                      --------------------------------                      --------------------------------                      --------------------------------                      --------------------------------                      --------------------------------                      -----------------------------------
EBITDA                                                     66,664                                                56,694                                                44,313                                               (12,690 )                                             154,981                                                59,665                                                47,403                                                34,033                                               (33,777 )                                                107,324
 - Interest expense                                                                                                                                                                                                                                                                10,969                                                                                                                                                                                                                                                                           12,009
 - Provision for income taxes                                                                                                                                                                                                                                                      29,856                                                                                                                                                                                                                                                                           15,400
 - Depreciation and amortization                                                                                                                                                                                                                                                   20,410                                                                                                                                                                                                                                                        22,568  
                                                                                                                                                                                                                                                                              --------------------------------                                                                                                                                                                                                                                              -----------------------------------
Reported net income                                                                                                                                                                                                                                                             $  93,746                                                                                                                                                                                                                                                     $  57,347  
                                                                                                                                                                                                                                                                              === ======= ====================                                                                                                                                                                                                                                              ====== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
Net sales (eliminations)                                $ 222,052                                             $ 208,916                                             $ 155,504                                             $    (568 )                                           $ 585,904                                             $ 207,113                                             $ 188,334                                             $ 135,013                                             $     (41 )                                              $ 530,419
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
Reported operating margin                                    27.6                    %                             21.5                    %                             26.4                    %                                                   n/m                             23.1                    %                             26.9                    %                             18.4                    %                             23.0                    %                                                   n/m                                16.1                    %
EBITDA margin                                                30.0                    %                             27.1                    %                             28.5                    %                                                   n/m                             26.5                    %                             28.8                    %                             25.2                    %                             25.2                    %                                                   n/m                                20.2                    %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                        For the Year Ended December 31,
                                                      ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                 2017                                                                                                                                                                                                                                                         2016 (a)
                                                      ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                     FMT                                HST                               FSDP                             Corporate                             IDEX                                                    FMT                                HST                               FSDP                             Corporate                               IDEX
                                                      ---------------------------------                     ---------------------------------                     ---------------------------------                     ---------------------------------                     -----------------------------------                     ---------------------------------                     ---------------------------------                     ---------------------------------                     ---------------------------------                     --------------------------------------
Reported operating income (loss)                        $ 241,030                                             $ 179,567                                             $ 147,028                                             $ (65,069 )                                           $   502,556                                             $ 217,500                                             $ 153,691                                             $ 123,605                                             $ (82,399 )                                              $   412,397
 - Other (income) expense - net                             1,007                                                  (795 )                                               1,959                                                   223                                                   2,394                                                 3,066                                                (1,991 )                                                 161                                                (2,967 )                                                   (1,731 )
 + Depreciation and amortization                           23,587                             45,287                             14,541                                801                               84,216                             28,458                             45,298                             11,956                              1,180                                  86,892  
                                                      --------------------------------                      --------------------------------                      --------------------------------                      --------------------------------                      ----------------------------------                      --------------------------------                      --------------------------------                      --------------------------------                      --------------------------------                      -------------------------------------
EBITDA                                                    263,610                                               225,649                                               159,610                                               (64,491 )                                               584,378                                               242,892                                               200,980                                               135,400                                               (78,252 )                                                  501,020
 - Interest expense                                                                                                                                                                                                                                                                  44,889                                                                                                                                                                                                                                                                             45,616
 - Provision for income taxes                                                                                                                                                                                                                                                       118,016                                                                                                                                                                                                                                                                             97,403
 - Depreciation and amortization                                                                                                                                                                                                                                                     84,216                                                                                                                                                                                                                                                          86,892  
                                                                                                                                                                                                                                                                              ----------------------------------                                                                                                                                                                                                                                              -------------------------------------
Reported net income                                                                                                                                                                                                                                                                                     $337,257                                                                                                                                                                                                                                                                           $271,109
                                                                                                                                                                                                                                                                              ===================================                                                                                                                                                                                                                                             ======================================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
Net sales (eliminations)                                $ 880,957                                             $ 820,131                                             $ 587,533                                             $  (1,309 )                                           $ 2,287,312                                             $ 849,101                                             $ 744,809                                             $ 520,009                                             $    (876 )                                              $ 2,113,043
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
Reported operating margin                                    27.4                    %                             21.9                    %                             25.0                    %                                                   n/m                               22.0                    %                             25.6                    %                             20.6                    %                             23.8                    %                                                   n/m                                  19.5                    %
EBITDA margin                                                29.9                    %                             27.5                    %                             27.2                    %                                                   n/m                               25.5                    %                             28.6                    %                             27.0                    %                             26.0                    %                                                   n/m                                  23.7                    %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                

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

                                                                                                                                                                                                                                                                                  For the Quarter Ended December 31,
                                                                ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                    2017                                                                                                                                                                                                                                                                         2016
                                                                ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                 FMT                                    HST                                   FSDP                                 Corporate                                IDEX                                                       FMT                                    HST                                   FSDP                               Corporate                              IDEX
                                                                -------------------------------------                     -------------------------------------                     -------------------------------------                     -------------------------------------                     -------------------------------------                     -------------------------------------                     -------------------------------------                     -------------------------------------                     ---------------------------------                     ------------------------------------
EBITDA                                                                $  66,664                                                 $  56,694                                                 $  44,313                                                 $ (12,690 )                                               $ 154,981                                                 $  59,665                                                 $  47,403                                                 $  34,033                                             $ (33,777 )                                              $ 107,324
 + Restructuring expenses                                                 1,808                                                     1,668                                                       182                                            --                                                     3,658                                                       932                                                     1,117                                                     1,425                                                   200                                                    3,674
 + Loss (gain) on sale of businesses - net                       --                                            --                                            --                                                    (9,273 )                                                  (9,273 )                                          --                                            --                                            --                                                20,231                                                   20,231
 + Pension settlement                                            --                         --                         --                         --                         --                                  2,032                         --                                    540                                982                                 3,554  
                                                                ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------                      --------------------------------                      -----------------------------------
Adjusted EBITDA                                                       $  68,472                              $  58,362                              $  44,495                              $ (21,963 )                                               $ 149,366                              $  62,629                              $  48,520                              $  35,998                          $ (12,364 )                                              $ 134,783  
                                                                ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================                      === ======= ====================                      ====== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
Adjusted EBITDA margin                                                     30.8                    %                                 27.9                    %                                 28.6                    %                                                       n/m                                 25.5                    %                                 30.2                    %                                 25.8                    %                                 26.7                    %                                                   n/m                                25.4                    %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                  For the Year Ended December 31,
                                                                ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                    2017                                                                                                                                                                                                                                                                         2016
                                                                ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                 FMT                                    HST                                   FSDP                                 Corporate                                IDEX                                                       FMT                                    HST                                   FSDP                               Corporate                              IDEX
                                                                -------------------------------------                     -------------------------------------                     -------------------------------------                     -------------------------------------                     -------------------------------------                     -------------------------------------                     -------------------------------------                     -------------------------------------                     ---------------------------------                     ------------------------------------
EBITDA                                                                $ 263,610                                                 $ 225,649                                                 $ 159,610                                                 $ (64,491 )                                               $ 584,378                                                 $ 242,892                                                 $ 200,980                                                 $ 135,400                                             $ (78,252 )                                              $ 501,020
 + Restructuring expenses                                                 3,374                                                     4,696                                                       255                                                       130                                                     8,455                                                       932                                                     1,117                                                     1,425                                                   200                                                    3,674
 + Loss (gain) on sale of businesses - net                       --                                            --                                            --                                                    (9,273 )                                                  (9,273 )                                          --                                            --                                            --                                                22,298                                                   22,298
 + Pension settlement                                            --                         --                         --                         --                         --                                  2,032                         --                                    540                                982                                 3,554  
                                                                ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------                      --------------------------------                      -----------------------------------
Adjusted EBITDA                                                       $ 266,984                              $ 230,345                              $ 159,865                              $ (73,634 )                                               $ 583,560                              $ 245,856                              $ 202,097                              $ 137,365                          $ (54,772 )                                              $ 530,546  
                                                                ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================                      === ======= ====================                      ====== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
Adjusted EBITDA margin                                                     30.3                    %                                 28.1                    %                                 27.2                    %                                                       n/m                                 25.5                    %                                 29.0                    %                                 27.1                    %                                 26.4                    %                                                   n/m                                25.1                    %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      

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

                                                                                                  For the Quarter Ended                                                                                            For the Year Ended
                                                                                                                                                                                                                                                            December 31,
                                                                                              December 31,                                                  September 30,
                                                         --------------------------------------------------------------------------------------                     ----------------------------------                     -------------------------------------------------------------------------
                                                                       2017                               2016                                                  2017                                                  2017                           2016
                                                         ---------------------------------                     --------------------------------                     ----------------------------------                     ---------------------------------                     -------------------------
Cash flow from operating activities                        $ 136,173                                            $ 115,593                                              $ 124,000                                             $ 432,753                                             $              399,917
 - Capital expenditures                                       15,804                             9,600                               8,515                             43,858                                          38,242
                                                         --------------------------------                      -------------------------------                      ---------------------------------                      --------------------------------                      -------------------------
Free cash flow                                             $ 120,369                         $ 105,993                           $ 115,485                          $ 388,895                          $              361,675
                                                         === ======= ====================                      == ======= ====================                      ==== ======= ====================                      === ======= ====================                      === ====================
                                                                                                                                                                                                                                                                                      

Table 7: Reconciliations of Reported Effective Tax Rate to Adjusted Effective Tax Rate (dollars in thousands)

                                                                               For the quarter ended                                                                                                             For the year ended
                                                                                                    December 31, 2017                                                                                                                                   December 31, 2017
                                               -----------------------------------------------------------------------------------------------------------------                              ----------------------------------------------------------------------------------------------------------------------------
                                                            Income                              Provision                                                            Income                              Provision               
                                                            before                                                    for                                                                                  before                                                    for
                                                            income                                                  Income                                      Effective                                  income                                                  Income                                           Effective
                                                             taxes                                                   Taxes                                      Tax Rate                                    taxes                                                   Taxes                                           Tax Rate
                                               ---------------------------------                     -------------------------------------                     ---------                      ---------------------------------                     -------------------------------------                     --------------------
                                                                                                                                                                                                                                                                                                               
Reported                                         $ 123,602                                                 $  29,856                                               24.2%                        $ 455,273                                                 $ 118,016                                                          25.9%
 + Restructuring expenses                            3,658                                                     1,243                                                                                8,455                                                     2,772
 + Gain on divestiture                              (9,273 )                                          --                                                            (9,273 )                                          --  
                                               --------------------------------                      ------------------------------------                                                     --------------------------------                      ------------------------------------
Adjusted                                         $ 117,987                              $  31,099                            26.4%                        $ 454,455                              $ 120,788                                       26.6%
                                               === ======= ====================                      ======= ======= ====================                                                     === ======= ====================                      ======= ======= ====================
                                                                                                                                                                                                                                                                                                               

Conference Call to be Broadcast over the Internet

IDEX will broadcast its fourth quarter earnings conference call over the Internet on Tuesday, January 30, 2018 at 9:30 a.m. CT. Chairman and Chief Executive Officer Andy Silvernail and Senior Vice President and Chief Financial Officer William Grogan will discuss the Company’s recent financial performance and respond to questions from the financial analyst community. IDEX invites interested investors to listen to the call and view the accompanying slide presentation, which will be carried live on its website at 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 #13675214.

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

(Financial reports follow)

                                                                                                                                   IDEX CORPORATION
                                                                                                                    Condensed Consolidated Statements of Operations
                                                                                                                      (in thousands except for per share amounts)
                                                                                                                                      (unaudited)
 
                                                                                         For the Quarter Ended                                                                         For the Year Ended
                                                                                                                December 31,                                                                                                    December 31,
                                                                           ---------------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------------------
                                                                                         2017                             2016 (a)                                                  2017                                 2016 (a)
                                                                           ---------------------------------                     ---------------------------------                     ------------------------------------                     --------------------------------------
Net sales                                                                    $ 585,904                                             $ 530,419                                              $ 2,287,312                                                $ 2,113,043
Cost of sales                                               325,022         297,934          1,260,634            1,182,276  
----------------------------------------------------- -------------------- -------------------------------- -------------------- -------------------------------- -------------------- ----------------------------------- -------------------- -------------------------------------
Gross profit                                                                   260,882                                               232,485                                                1,026,678                                                    930,767
Selling, general and administrative expenses                                   131,249                                               123,059                                                  524,940                                                    492,398
Loss (gain) on sale of businesses - net                                         (9,273 )                                              20,231                                                   (9,273 )                                                   22,298
Restructuring expenses                                        3,658           3,674              8,455                3,674  
----------------------------------------------------- -------------------- -------------------------------- -------------------- -------------------------------- -------------------- ----------------------------------- -------------------- -------------------------------------
Operating income                                                               135,248                                                85,521                                                  502,556                                                    412,397
Other (income) expense -- net                                          677                                                   765                                                    2,394                                                     (1,731 )
Interest expense                                             10,969          12,009             44,889               45,616  
----------------------------------------------------- -------------------- -------------------------------- -------------------- -------------------------------- -------------------- ----------------------------------- -------------------- -------------------------------------
Income before income taxes                                                     123,602                                                72,747                                                  455,273                                                    368,512
Provision for income taxes                                   29,856          15,400            118,016               97,403  
----------------------------------------------------- -------------------- -------------------------------- -------------------- -------------------------------- -------------------- ----------------------------------- -------------------- -------------------------------------
Net income                                                $  93,746       $  57,347        $   337,257          $   271,109  
===================================================== ==================== === ======= ==================== ==================== === ======= ==================== ==================== ==== ========= ==================== ==================== ====== ========= ====================
                                                                                                                                                                                                                                                 
Earnings per Common Share (b):
   Basic earnings per common share                                           $    1.23                                             $    0.75                                              $      4.41                                                $      3.57
   Diluted earnings per common share                                         $    1.21                                             $    0.75                                              $      4.36                                                $      3.53
                                                                                                                                                                                                                                                 
Share Data:
   Basic weighted average common shares outstanding                             76,283                                                75,955                                                   76,232                                                     75,803
   Diluted weighted average common shares outstanding                           77,597                                                76,806                                                   77,333                                                     76,758
                                                                                                                                                                                                                                                                  
                                                                       IDEX CORPORATION
                                                             Condensed Consolidated Balance Sheets
                                                                        (in thousands)
                                                                          (unaudited)
 
                                                               December 31,                        December 31,
                                                                                      2017                                                   2016
                                                                      ------------------------------------                     --------------------------------
Assets
  Current Assets
    Cash and cash equivalents                                            $   375,950                                                    $              235,964
    Receivables - net                                                        294,166                                                                   272,813
    Inventories                                                              259,724                                                                   252,859
    Other current assets                                   74,203                              61,085
------------------------------------------------ -------------------- ----------------------------------- -------------------- --------------------------------
  Total current assets                                                     1,004,043                                                                   822,721
  Property, plant and equipment - net                                        258,350                                                                   247,816
  Goodwill and intangible assets                                           2,118,904                                                                 2,068,096
  Other noncurrent assets                                  18,331                              16,311
------------------------------------------------ -------------------- ----------------------------------- -------------------- --------------------------------
    Total assets                                      $ 3,399,628              $            3,154,944
================================================ ==================== ==== ========= ==================== ==================== ========== ====================
                                                                                                                                
Liabilities and shareholders’ equity
  Current liabilities
    Trade accounts payable                                               $   147,067                                                    $              128,933
    Accrued expenses                                                         184,705                                                                   152,852
    Short-term borrowings                                                        258                                                                     1,046
    Dividends payable                                      28,945                              26,327
------------------------------------------------ -------------------- ----------------------------------- -------------------- --------------------------------
  Total current liabilities                                                  360,975                                                                   309,158
  Long-term borrowings                                                       858,788                                                                 1,014,235
  Other noncurrent liabilities                            293,323                             287,657
------------------------------------------------ -------------------- ----------------------------------- -------------------- --------------------------------
    Total liabilities                                                      1,513,086                                                                 1,611,050
  Shareholders’ equity                                  1,886,542                           1,543,894
------------------------------------------------ -------------------- ----------------------------------- -------------------- --------------------------------
      Total liabilities and shareholders’ equity      $ 3,399,628              $            3,154,944
================================================ ==================== ==== ========= ==================== ==================== ========== ====================
                                                                                                                                           
                                                                                    IDEX CORPORATION
                                                                     Condensed Consolidated Statements of Cash Flows
                                                                                     (in thousands)
                                                                                       (unaudited)
 
                                                                                                             For the Year Ended
                                                                                                                                   December 31,
                                                                                          -----------------------------------------------------------------------------------------------
                                                                                                          2017                                                      2016
                                                                                          -------------------------------------                     -------------------------------------
Cash flows from operating activities
Net income                                                                                      $ 337,257                                                 $ 271,109
Adjustments to reconcile net income to net cash provided by
operating activities:
  Loss (gain) on sale of fixed assets                                                                 315                                                       (28 )
  Loss (gain) on sale of businesses - net                                                          (9,273 )                                                  22,298
  Asset impairments                                                                        --                                                       205
  Depreciation and amortization                                                                    38,314                                                    37,854
  Amortization of intangible assets                                                                45,902                                                    49,038
  Amortization of debt issuance expenses                                                            1,320                                                     1,295
  Share-based compensation expense                                                                 24,405                                                    20,326
  Deferred income taxes                                                                           (33,742 )                                                 (17,308 )
  Non-cash interest expense associated with forward starting swaps                                  6,655                                                     6,851
  Pension settlement                                                                       --                                                     3,554
  Changes in (net of the effect from acquisitions and divestitures):
    Receivables                                                                                   (15,803 )                                                     302
    Inventories                                                                                       760                                                    32,747
    Other current assets                                                                          (20,031 )                                                 (22,006 )
    Trade accounts payable                                                                         12,556                                                        73
    Accrued expenses                                                                               19,710                                                    (5,470 )
  Other -- net                                                      24,408   (c)                             (923 )
-------------------------------------------------------------------- -------------------- ------------------------------------ -------------------- ------------------------------------
    Net cash flows provided by operating activities                                               432,753                                                   399,917
Cash flows from investing activities
  Purchases of property, plant and equipment                                                      (43,858 )                                                 (38,242 )
  Acquisition of businesses, net of cash acquired                                                 (38,161 )                                                (510,001 )
  Proceeds from sale of business                                                                   21,795                                                    39,064
  Proceeds from fixed asset disposals                                                               6,011                                                        49
  Other -- net                                                        (533 )                                  (69 )
-------------------------------------------------------------------- -------------------- ------------------------------------ -------------------- ------------------------------------
    Net cash flows used in investing activities                                                   (54,746 )                                                (509,199 )
Cash flows from financing activities
  Borrowings under revolving facilities                                                            33,000                                                   501,529
  Proceeds from issuance of 3.20% Senior Notes                                             --                                                   100,000
  Proceeds from issuance of 3.37% Senior Notes                                             --                                                   100,000
  Payments under revolving facilities                                                            (200,618 )                                                (520,125 )
  Debt issuance costs                                                                      --                                                      (246 )
  Dividends paid                                                                                 (111,172 )                                                (102,650 )
  Proceeds from stock option exercises                                                             22,935                                                    30,240
  Purchase of common stock                                                                        (29,074 )                                                 (57,272 )
  Unvested shares surrendered for tax withholding                                                  (6,228 )                                                  (4,928 )
  Settlement of foreign exchange contracts                                      13,736      --  
-------------------------------------------------------------------- -------------------- ------------------------------------ -------------------- ------------------------------------
    Net cash flows (used in) provided by financing activities                                    (277,421 )                                                  46,548
Effect of exchange rate changes on cash and cash equivalents                    39,400             (29,320 )
-------------------------------------------------------------------- -------------------- ------------------------------------ -------------------- ------------------------------------
Net increase (decrease) in cash                                                                   139,986                                                   (92,054 )
Cash and cash equivalents at beginning of year                                 235,964             328,018  
-------------------------------------------------------------------- -------------------- ------------------------------------ -------------------- ------------------------------------
Cash and cash equivalents at end of period                                   $ 375,950           $ 235,964  
==================================================================== ==================== ======= ======= ==================== ==================== ======= ======= ====================
                                                                                                                                                                     
                                                                                                          IDEX CORPORATION
                                                                                        Company and Segment Financial Information - Reported
                                                                                                       (dollars in thousands)
                                                                                                             (unaudited)
 
                                                        For the Quarter Ended                                               For the Year Ended
                                                                                                December 31, (d)                                                                      December 31, (d)
                                                                              ----------------------------------------------                            ---------------------------------------------------------------------
                                                                                    2017            2016 (a)                               2017                        2016 (a)
                                                                              ----------------                     ----------------                     -----------------                     --------------------------------------
                     Fluid & Metering Technologies
                       Net sales                                                $ 222,052                            $ 207,113                            $   880,957                              $   849,101
                       Operating income (e)                                        61,200                               55,718                                241,030                                  217,500
                       Operating margin                                              27.6   %                             26.9   %                               27.4  %                                  25.6                    %
                       EBITDA                                                   $  66,664                            $  59,665                            $   263,610                              $   242,892
                       EBITDA margin                                                 30.0   %                             28.8   %                               29.9  %                                  28.6                    %
                       Depreciation and amortization                            $   5,764                            $   6,447                            $    23,587                              $    28,458
                       Capital expenditures                                         6,059                                3,685                                 18,218                                   16,389
                                                                                                                                                                                               
                     Health & Science Technologies
                       Net sales                                                $ 208,916                            $ 188,334                            $   820,131                              $   744,809
                       Operating income (e)                                        44,962                               34,706                                179,567                                  153,691
                       Operating margin                                              21.5   %                             18.4   %                               21.9  %                                  20.6                    %
                       EBITDA                                                   $  56,694                            $  47,403                            $   225,649                              $   200,980
                       EBITDA margin                                                 27.1   %                             25.2   %                               27.5  %                                  27.0                    %
                       Depreciation and amortization                            $  10,840                            $  12,254                            $    45,287                              $    45,298
                       Capital expenditures                                         4,851                                4,210                                 16,340                                   15,665
                                                                                                                                                                                               
                     Fire & Safety/Diversified Products
                       Net sales                                                $ 155,504                            $ 135,013                            $   587,533                              $   520,009
                       Operating income (e)                                        41,006                               31,039                                147,028                                  123,605
                       Operating margin                                              26.4   %                             23.0   %                               25.0  %                                  23.8                    %
                       EBITDA                                                   $  44,313                            $  34,033                            $   159,610                              $   135,400
                       EBITDA margin                                                 28.5   %                             25.2   %                               27.2  %                                  26.0                    %
                       Depreciation and amortization                            $   3,603                            $   3,640                            $    14,541                              $    11,956
                       Capital expenditures                                         2,185                                1,640                                  6,363                                    5,945
                                                                                                                                                                                               
                     Corporate Office and Eliminations
                       Intersegment sales eliminations                          $    (568 )                          $     (41 )                          $    (1,309 )                            $      (876 )
                       Operating income (e)                                       (11,920 )                            (35,942 )                              (65,069 )                                (82,399 )
                       EBITDA                                                     (12,690 )                            (33,777 )                              (64,491 )                                (78,252 )
                       Depreciation and amortization                                  203                                  227                                    801                                    1,180
                       Capital expenditures                                         2,709                                   65                                  2,937                                      243
                                                                                                                                                                                               
                     Company
                       Net sales                                                $ 585,904                            $ 530,419                            $ 2,287,312                              $ 2,113,043
                       Operating income                                           135,248                               85,521                                502,556                                  412,397
                       Operating margin                                              23.1   %                             16.1   %                               22.0  %                                  19.5                    %
                       EBITDA                                                   $ 154,981                            $ 107,324                            $   584,378                              $   501,020
                       EBITDA margin                                                 26.5   %                             20.2   %                               25.5  %                                  23.7                    %
                       Depreciation and amortization (f)                        $  20,410                            $  22,568                            $    84,216                              $    86,892
                       Capital expenditures                                        15,804                                9,600                                 43,858                                   38,242
                                                                                                                                                                                                                
                                                                                                 IDEX CORPORATION
                                                                               Company and Segment Financial Information - Adjusted
                                                                                              (dollars in thousands)
                                                                                                    (unaudited)
 
                                                        For the Quarter Ended                                      For the Year Ended
                                                                                                December 31, (d)                                                             December 31, (d)
                                                                              ----------------------------------------------                            ----------------------------------------------------
                                                                                    2017            2016 (a)                               2017               2016 (a)
                                                                              ----------------                     ----------------                     -----------------                     ---------------------
                     Fluid & Metering Technologies
                       Net sales                                                $ 222,052                            $ 207,113                            $   880,957                              $   849,101
                       Adjusted operating income (e)                               63,008                               56,650                                244,404                                  218,432
                       Adjusted operating margin                                     28.4   %                             27.4   %                               27.7  %                                  25.7   %
                       Adjusted EBITDA                                          $  68,472                            $  62,629                            $   266,984                              $   245,856
                       Adjusted EBITDA margin                                        30.8   %                             30.2   %                               30.3  %                                  29.0   %
                       Depreciation and amortization                            $   5,764                            $   6,447                            $    23,587                              $    28,458
                       Capital expenditures                                         6,059                                3,685                                 18,218                                   16,389
                                                                                                                                                                                               
                     Health & Science Technologies
                       Net sales                                                $ 208,916                            $ 188,334                            $   820,131                              $   744,809
                       Adjusted operating income (e)                               46,630                               35,823                                184,263                                  154,808
                       Adjusted operating margin                                     22.3   %                             19.0   %                               22.5  %                                  20.8   %
                       Adjusted EBITDA                                          $  58,362                            $  48,520                            $   230,345                              $   202,097
                       Adjusted EBITDA margin                                        27.9   %                             25.8   %                               28.1  %                                  27.1   %
                       Depreciation and amortization                            $  10,840                            $  12,254                            $    45,287                              $    45,298
                       Capital expenditures                                         4,851                                4,210                                 16,340                                   15,665
                                                                                                                                                                                               
                     Fire & Safety/Diversified Products
                       Net sales                                                $ 155,504                            $ 135,013                            $   587,533                              $   520,009
                       Adjusted operating income (e)                               41,188                               32,464                                147,283                                  125,030
                       Adjusted operating margin                                     26.5   %                             24.0   %                               25.1  %                                  24.0   %
                       Adjusted EBITDA                                          $  44,495                            $  35,998                            $   159,865                              $   137,365
                       Adjusted EBITDA margin                                        28.6   %                             26.7   %                               27.2  %                                  26.4   %
                       Depreciation and amortization                            $   3,603                            $   3,640                            $    14,541                              $    11,956
                       Capital expenditures                                         2,185                                1,640                                  6,363                                    5,945
                                                                                                                                                                                               
                     Corporate Office and Eliminations
                       Intersegment sales eliminations                          $    (568 )                          $     (41 )                          $    (1,309 )                            $      (876 )
                       Adjusted operating income (e)                              (21,193 )                            (15,511 )                              (74,212 )                                (59,901 )
                       Adjusted EBITDA                                            (21,963 )                            (12,364 )                              (73,634 )                                (54,772 )
                       Depreciation and amortization                                  203                                  227                                    801                                    1,180
                       Capital expenditures                                         2,709                                   65                                  2,937                                      243
                                                                                                                                                                                               
                     Company
                       Net sales                                                $ 585,904                            $ 530,419                            $ 2,287,312                              $ 2,113,043
                       Adjusted operating income                                  129,633                              109,426                                501,738                                  438,369
                       Adjusted operating margin                                     22.1   %                             20.6   %                               21.9  %                                  20.7   %
                       Adjusted EBITDA                                          $ 149,366                            $ 134,783                            $   583,560                              $   530,546
                       Adjusted EBITDA margin                                        25.5   %                             25.4   %                               25.5  %                                  25.1   %
                       Depreciation and amortization (f)                        $  20,410                            $  22,568                            $    84,216                              $    86,892
                       Capital expenditures                                        15,804                                9,600                                 43,858                                   38,242
                                                                                                                                                                                               
(a)   Certain amounts in the prior year presentation have been
                         reclassified to conform to the current presentation due to the early
                         adoption of ASU 2017-07, Compensation-Retirement Benefits (Topic
                         715): Improving the Presentation of Net Periodic Pension Cost and
                         Net Periodic Postretirement Benefit Cost.
(b)                      Calculated by applying the two-class method of allocating earnings
                         to common stock and participating securities as required by ASC 260,
                         Earnings Per Share.
(c)                      Other-net within operating activities includes $27.9 million of
                         non-current income taxes payable related to the repatriation tax
                         recorded in conjunction with Tax Reform, which the Company intends
                         to pay beginning in 2019 and thereafter.
(d)                      Three and twelve month data includes the results of thinXXS
                         (December 2017) 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 Products
                         segment from the date of acquisition. Three and twelve month data
                         also includes the results of Faure Herman (October 2017), Hydra-Stop
                         (July 2016) and IETG (October 2016) in the Fluid & Metering
                         Technologies segment and CVI Japan (September 2016) and CVI Korea
                         (December 2016) in the Health & Science Technologies segment through
                         the date of disposition.
(e)                      Segment operating income excludes unallocated corporate operating
                         expenses which are included in Corporate Office and Eliminations.
(f)                      Depreciation and amortization excludes amortization of debt issuance
                         costs.

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20180129006228r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20180129006228/en/

SOURCE: IDEX Corporation

Investor Contact: 
IDEX Corporation 
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.