IDEX Reports Record Fourth Quarter and Full Year 2018 Results; Q4 Sales up 5 Percent
Overall and Organically; Q4 Reported EPS Was $1.27 with Adjusted EPS of $1.31
IDEX Corporation (NYSE: IEX) today announced its financial results for the three- and twelve- month periods ended
December 31, 2018.
Full Year 2018 Highlights
- Orders were up 7 percent overall and 6 percent organically
- Sales were up 9 percent overall and 8 percent organically
- Reported operating margin was 22.9 percent with adjusted operating margin of 23.4 percent, up 150
bps
- Reported EPS was $5.29 with adjusted EPS of $5.41, up 26 percent
- Repurchased 1.3 million shares of common stock for $174 million
- Acquired Finger Lakes Instrumentation and the intellectual property assets of Phantom Controls
Full Year 2018
Orders of $2.5 billion were up 7 percent compared with the prior year (+6 percent organic and +1 percent foreign currency
translation).
Sales of $2.5 billion were up 9 percent compared with the prior year (+8 percent organic and +1 percent foreign currency
translation).
Gross margin of 45.0 percent was up 10 basis points compared with the prior year primarily due to productivity initiatives and
volume leverage, partially offset by higher engineering costs.
Operating income of $569.1 million resulted in an operating margin of 22.9 percent. Excluding $12.1 million of restructuring
expenses, adjusted operating income was $581.2 million with an adjusted operating margin of 23.4 percent, up 150 basis points from
the prior year mainly due to volume leverage. Adjusted operating income drove adjusted EBITDA of $662.7 million which was 27
percent of sales and covered interest expense by 15 times.
Provision for income taxes of $118.4 million resulted in an effective tax rate (ETR) of 22.4 percent and included the tax impact
from restructuring expenses. Excluding the tax impact from restructuring expenses, provision for income taxes was $121.4 million
which resulted in an adjusted ETR of 22.4 percent.
Net income was $410.6 million which resulted in EPS of $5.29. Excluding restructuring expenses, adjusted EPS of $5.41 increased
$1.10, or 26 percent, from prior year adjusted EPS.
Cash from operations of $479.3 million was up 11 percent from the prior year and led to free cash flow of $423.3 million, which
was up 9 percent from the prior year and 101 percent of adjusted net income primarily due to working capital and capital
expenditure investments to support long-term growth.
Fourth Quarter 2018
Orders of $610.3 million were up 1 percent compared with the prior year period (+2 percent organic and -1 percent foreign
currency translation).
Sales of $614.1 million were up 5 percent compared with the prior year period (+5 percent organic, +1 percent
acquisition/divestitures and -1 percent foreign currency translation).
Gross margin of 44.6 percent was up 10 basis points compared with the prior year period primarily due to productivity
initiatives and volume leverage, partially offset by higher engineering costs.
Operating income of $139.4 million resulted in an operating margin of 22.7 percent. Excluding $3.8 million of restructuring
expenses, adjusted operating income was $143.2 million with an adjusted operating margin of 23.3 percent, up 120 basis points from
the prior year period mainly due to volume leverage. Adjusted operating income drove adjusted EBITDA of $162.0 million which was 26
percent of sales and covered interest expense by almost 15 times.
Provision for income taxes of $30.7 million resulted in an ETR of 23.8 percent and included the tax impact from restructuring
expenses. Excluding the tax impact from restructuring expenses, provision for income taxes was $31.7 million which resulted in an
adjusted ETR of 23.9 percent.
Net income was $98.1 million which resulted in EPS of $1.27. Excluding restructuring expenses, adjusted EPS of $1.31 increased
19 cents, or 17 percent, from the prior year period adjusted EPS.
Cash from operations of $153.6 million was up 13 percent from the prior year period and led to free cash flow of $137.4 million,
which was up 14 percent from the prior year period and 136 percent of adjusted net income.
The Company repurchased 917 thousand shares of common stock for $122 million in the fourth quarter of 2018.
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“Strong demand in the industrial market coupled with solid execution drove a
second consecutive record year for IDEX. We delivered annual all-time highs in orders, sales, operating income, operating
margin, EPS and free cash flow. Annual organic order and sales growth were 6 and 8 percent, respectively. The 8 percent annual
organic sales growth was our highest annual rate in 7 years. I'm very impressed with these growth rates, and I am especially
encouraged with the diversity of the growth across all segments. FMT's annual organic revenue growth was 9 percent, FSDP
delivered 7 percent and HST achieved 6 percent. Adjusted operating margin increased 150 basis points with robust expansion
across each of the segments and we achieved record adjusted EPS of $5.41, up 26 percent from the prior year. Overall, I am
extremely pleased with our team’s performance in 2018. |
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We continue to invest in our best organic growth opportunities as evidenced by the
record capital expenditures of $56 million in 2018. M&A remains a key priority, we continue to work our solid funnel, and
we will remain committed to our disciplined approach to capital deployment. In 2018, we deployed $174 million on stock
repurchases, with $122 million occurring in the fourth quarter. We also returned $127 million to our shareholders via dividends
in 2018, achieving our goal of distributing over 30 percent of earnings back to our shareholders. |
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Looking forward to 2019, although trade tensions persist and the geopolitical
environment remains uncertain, we are confident in our outlook given our market leading positions in our diversified portfolio
and our track record of strong execution in volatile times. Consistent with our long-term strategic objective to grow faster
than underlying market growth, we are projecting 4 to 5 percent organic revenue growth in 2019. Full year 2019 EPS is expected
to be in the range of $5.60 to $5.80 with first quarter EPS in the range of $1.35 to $1.38, which include approximately 15
cents and 6 cents of foreign currency headwind, respectively." |
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Andrew K. Silvernail |
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Chairman and Chief Executive Officer |
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Fourth Quarter 2018 Segment Highlights
Fluid & Metering Technologies
- Sales of $237.2 million reflected a 7 percent increase compared to the fourth quarter of 2017 (+8
percent organic and -1 percent foreign currency translation).
- Operating income of $67.9 million resulted in an operating margin of 28.6 percent. Excluding $1.1
million of restructuring expenses, adjusted operating income was $69.0 million with an adjusted operating margin of 29.1 percent,
a 70 basis point increase compared to the prior year period primarily due to higher volume and productivity initiatives.
- EBITDA of $73.1 million resulted in an EBITDA margin of 30.8 percent. Excluding $1.1 million of
restructuring expenses, adjusted EBITDA of $74.2 million resulted in an adjusted EBITDA margin of 31.3 percent, a 50 basis point
increase compared to the prior year period.
Health & Science Technologies
- Sales of $225.5 million reflected an 8 percent increase compared to the fourth quarter of 2017 (+7
percent organic, +2 percent acquisition and -1 percent foreign currency translation).
- Operating income of $52.2 million resulted in an operating margin of 23.1 percent. Excluding $0.6
million of restructuring expenses, adjusted operating income was $52.8 million with an adjusted operating margin of 23.4 percent,
a 110 basis point increase compared to the prior year period primarily due to higher volume and productivity initiatives,
partially offset by higher engineering costs.
- EBITDA of $62.2 million resulted in an EBITDA margin of 27.6 percent. Excluding $0.6 million of
restructuring expenses, adjusted EBITDA of $62.8 million resulted in an adjusted EBITDA margin of 27.8 percent, a 10 basis point
decrease compared to the prior year period.
Fire & Safety/Diversified Products
- Sales of $151.7 million reflected a 2 percent decrease compared to the fourth quarter of 2017 (-1
percent organic and -1 percent foreign currency translation).
- Operating income of $38.4 million resulted in an operating margin of 25.3 percent. Excluding $1.8
million of restructuring expenses, adjusted operating income was $40.2 million with an adjusted operating margin of 26.5 percent,
flat compared to the prior year period primarily due to productivity initiatives offset by lower volume.
- EBITDA of $42.1 million resulted in an EBITDA margin of 27.8 percent. Excluding $1.8 million of
restructuring expenses, adjusted EBITDA of $43.9 million resulted in an adjusted EBITDA margin of 28.9 percent, a 30 basis point
increase compared to the prior year period.
For the fourth quarter of 2018, Fluid & Metering Technologies contributed 39 percent of sales, 43 percent of
operating income and 41 percent of EBITDA; Health & Science Technologies accounted for 37 percent of sales, 33 percent of
operating income and 35 percent of EBITDA; and Fire & Safety/Diversified Products represented 24 percent of sales, 24 percent
of operating income and 24 percent of EBITDA.
Corporate Costs
Corporate costs decreased to $18.7 million in the fourth quarter of 2018 from $21.2 million in the fourth quarter of 2017 as a
result of lower outside consulting costs.
Corporate costs increased to $78.7 million in 2018 compared to $74.2 million in 2017 as a result of a stamp duty tax in
Switzerland associated with the restructuring of intercompany loans and higher stock compensation.
Restructuring Actions
The Company recorded $3.8 million and $12.1 million of restructuring expenses in the fourth quarter and full year 2018,
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.
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, 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.
- 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
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For the Quarter Ended |
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For the Year Ended |
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December 31, 2018 |
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December 31, 2018 |
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FMT |
|
HST |
|
FSDP |
|
IDEX |
|
FMT |
|
HST |
|
FSDP |
|
IDEX |
Change in net sales |
|
7 |
% |
|
8 |
% |
|
(2 |
)% |
|
5 |
% |
|
8 |
% |
|
9 |
% |
|
8 |
% |
|
9 |
% |
- Net impact from acquisitions/divestitures |
|
— |
% |
|
2 |
% |
|
— |
% |
|
1 |
% |
|
(2 |
)% |
|
2 |
% |
|
— |
% |
|
— |
% |
- Impact from FX |
|
(1 |
)% |
|
(1 |
)% |
|
(1 |
)% |
|
(1 |
)% |
|
1 |
% |
|
1 |
% |
|
1 |
% |
|
1 |
% |
Change in organic net sales |
|
8 |
% |
|
7 |
% |
|
(1 |
)% |
|
5 |
% |
|
9 |
% |
|
6 |
% |
|
7 |
% |
|
8 |
% |
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Table 2: Reconciliations of Reported-to-Adjusted Operating Income and Margin (dollars in thousands)
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For the Quarter Ended December 31, |
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2018 |
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2017 |
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FMT |
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HST |
|
FSDP |
|
Corporate |
|
IDEX |
|
FMT |
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HST |
|
FSDP |
|
Corporate |
|
IDEX |
Reported operating income (loss) |
|
$ |
67,911 |
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$ |
52,160 |
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$ |
38,439 |
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|
$ |
(19,069 |
) |
|
$139,441 |
|
$ |
61,200 |
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$ |
44,962 |
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$ |
41,006 |
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$ |
(11,920 |
) |
|
$135,248 |
+ Restructuring expenses |
|
1,145 |
|
|
606 |
|
|
1,757 |
|
|
324 |
|
|
3,832 |
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|
1,808 |
|
|
1,668 |
|
|
182 |
|
|
— |
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|
3,658 |
|
+ Gain on sale of business |
|
— |
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— |
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— |
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— |
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— |
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— |
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— |
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— |
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(9,273 |
) |
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(9,273 |
) |
Adjusted operating income (loss) |
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$ |
69,056 |
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$ |
52,766 |
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$ |
40,196 |
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$ |
(18,745 |
) |
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$ |
143,273 |
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$ |
63,008 |
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$ |
46,630 |
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$ |
41,188 |
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$ |
(21,193 |
) |
|
$ |
129,633 |
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Net sales (eliminations) |
|
$ |
237,206 |
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$ |
225,515 |
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$ |
151,723 |
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$ |
(350 |
) |
|
$ |
614,094 |
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|
$ |
222,052 |
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|
$ |
208,916 |
|
|
$ |
155,504 |
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|
$ |
(568 |
) |
|
$ |
585,904 |
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Reported operating margin |
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28.6 |
% |
|
23.1 |
% |
|
25.3 |
% |
|
n/m |
|
22.7 |
% |
|
27.6 |
% |
|
21.5 |
% |
|
26.4 |
% |
|
n/m |
|
23.1 |
% |
Adjusted operating margin |
|
29.1 |
% |
|
23.4 |
% |
|
26.5 |
% |
|
n/m |
|
23.3 |
% |
|
28.4 |
% |
|
22.3 |
% |
|
26.5 |
% |
|
n/m |
|
22.1 |
% |
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For the Year Ended December 31, |
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2018 |
|
2017 |
|
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FMT |
|
HST |
|
FSDP |
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Corporate |
|
IDEX |
|
FMT |
|
HST |
|
FSDP |
|
Corporate |
|
IDEX |
Reported operating income (loss) |
|
$ |
275,060 |
|
|
$ |
205,679 |
|
|
$ |
168,601 |
|
|
$ |
(80,252 |
) |
|
$569,088 |
|
$ |
241,030 |
|
|
$ |
179,567 |
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|
$ |
147,028 |
|
|
$ |
(65,069 |
) |
|
$502,556 |
+ Restructuring expenses |
|
2,458 |
|
|
5,904 |
|
|
2,184 |
|
|
1,537 |
|
|
12,083 |
|
|
3,374 |
|
|
4,696 |
|
|
255 |
|
|
130 |
|
|
8,455 |
|
+ Gain on sale of business |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(9,273 |
) |
|
(9,273 |
) |
Adjusted operating income (loss) |
|
$ |
277,518 |
|
|
$ |
211,583 |
|
|
$ |
170,785 |
|
|
$ |
(78,715 |
) |
|
$ |
581,171 |
|
|
$ |
244,404 |
|
|
$ |
184,263 |
|
|
$ |
147,283 |
|
|
$ |
(74,212 |
) |
|
$ |
501,738 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales (eliminations) |
|
$ |
951,552 |
|
|
$ |
896,419 |
|
|
$ |
637,028 |
|
|
$ |
(1,333 |
) |
|
$ |
2,483,666 |
|
|
$ |
880,957 |
|
|
$ |
820,131 |
|
|
$ |
587,533 |
|
|
$ |
(1,309 |
) |
|
$ |
2,287,312 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported operating margin |
|
28.9 |
% |
|
22.9 |
% |
|
26.5 |
% |
|
n/m |
|
22.9 |
% |
|
27.4 |
% |
|
21.9 |
% |
|
25.0 |
% |
|
n/m |
|
22.0 |
% |
Adjusted operating margin |
|
29.2 |
% |
|
23.6 |
% |
|
26.8 |
% |
|
n/m |
|
23.4 |
% |
|
27.7 |
% |
|
22.5 |
% |
|
25.1 |
% |
|
n/m |
|
21.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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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, |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Reported net income |
|
$ |
98,137 |
|
|
$ |
93,746 |
|
|
$ |
410,573 |
|
|
$ |
337,257 |
|
+ Restructuring expenses |
|
3,832 |
|
|
3,658 |
|
|
12,083 |
|
|
8,455 |
|
+ Tax impact on restructuring expenses |
|
(1,029 |
) |
|
(1,243 |
) |
|
(3,032 |
) |
|
(2,772 |
) |
+ Gain on sale of business |
|
— |
|
|
(9,273 |
) |
|
— |
|
|
(9,273 |
) |
+ Tax impact on gain on sale of business |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Adjusted net income |
|
$ |
100,940 |
|
|
$ |
86,888 |
|
|
$ |
419,624 |
|
|
$ |
333,667 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended |
|
For the Year Ended |
|
|
December 31, |
|
December 31, |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Reported EPS |
|
$ |
1.27 |
|
|
$ |
1.21 |
|
|
$ |
5.29 |
|
|
$ |
4.36 |
|
+ Restructuring expenses |
|
0.05 |
|
|
0.05 |
|
|
0.16 |
|
|
0.11 |
|
+ Tax impact on restructuring expenses |
|
(0.01 |
) |
|
(0.02 |
) |
|
(0.04 |
) |
|
(0.04 |
) |
+ Gain on sale of business |
|
— |
|
|
(0.12 |
) |
|
— |
|
|
(0.12 |
) |
+ Tax impact on gain on sale of business |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Adjusted EPS |
|
$ |
1.31 |
|
|
$ |
1.12 |
|
|
$ |
5.41 |
|
|
$ |
4.31 |
|
|
|
|
|
|
|
|
|
|
Diluted weighted average shares |
|
77,100 |
|
|
77,597 |
|
|
77,563 |
|
|
77,333 |
|
|
|
|
|
|
|
|
|
|
|
|
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Table 4: Reconciliations of EBITDA to Net Income (dollars in thousands)
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For the Quarter Ended December 31, |
|
|
2018 |
|
2017 |
|
|
FMT |
|
HST |
|
FSDP |
|
Corporate |
|
IDEX |
|
FMT |
|
HST |
|
FSDP |
|
Corporate |
|
IDEX |
Reported operating income (loss) |
|
$ |
67,911 |
|
|
$ |
52,160 |
|
|
$ |
38,439 |
|
|
$ |
(19,069 |
) |
|
$ |
139,441 |
|
|
$ |
61,200 |
|
|
$ |
44,962 |
|
|
$ |
41,006 |
|
|
$ |
(11,920 |
) |
|
$ |
135,248 |
|
- Other (income) expense - net |
|
295 |
|
|
(912 |
) |
|
(120 |
) |
|
317 |
|
|
(420 |
) |
|
300 |
|
|
(892 |
) |
|
296 |
|
|
973 |
|
|
677 |
|
+ Depreciation and amortization |
|
5,469 |
|
|
9,079 |
|
|
3,581 |
|
|
185 |
|
|
18,314 |
|
|
5,764 |
|
|
10,840 |
|
|
3,603 |
|
|
203 |
|
|
20,410 |
|
EBITDA |
|
73,085 |
|
|
62,151 |
|
|
42,140 |
|
|
(19,201 |
) |
|
158,175 |
|
|
66,664 |
|
|
56,694 |
|
|
44,313 |
|
|
(12,690 |
) |
|
154,981 |
|
- Interest expense |
|
|
|
|
|
|
|
|
|
11,036 |
|
|
|
|
|
|
|
|
|
|
10,969 |
|
- Provision for income taxes |
|
|
|
|
|
|
|
|
|
30,688 |
|
|
|
|
|
|
|
|
|
|
29,856 |
|
- Depreciation and amortization |
|
|
|
|
|
|
|
|
|
18,314 |
|
|
|
|
|
|
|
|
|
|
20,410 |
|
Reported net income |
|
|
|
|
|
|
|
|
|
$ |
98,137 |
|
|
|
|
|
|
|
|
|
|
$ |
93,746 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales (eliminations) |
|
$ |
237,206 |
|
|
$ |
225,515 |
|
|
$ |
151,723 |
|
|
$ |
(350 |
) |
|
$ |
614,094 |
|
|
$ |
222,052 |
|
|
$ |
208,916 |
|
|
$ |
155,504 |
|
|
$ |
(568 |
) |
|
$ |
585,904 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported operating margin |
|
28.6 |
% |
|
23.1 |
% |
|
25.3 |
% |
|
n/m |
|
22.7 |
% |
|
27.6 |
% |
|
21.5 |
% |
|
26.4 |
% |
|
n/m |
|
23.1 |
% |
EBITDA margin |
|
30.8 |
% |
|
27.6 |
% |
|
27.8 |
% |
|
n/m |
|
25.8 |
% |
|
30.0 |
% |
|
27.1 |
% |
|
28.5 |
% |
|
n/m |
|
26.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended December 31, |
|
|
2018 |
|
2017 |
|
|
FMT |
|
HST |
|
FSDP |
|
Corporate |
|
IDEX |
|
FMT |
|
HST |
|
FSDP |
|
Corporate |
|
IDEX |
Reported operating income (loss) |
|
$ |
275,060 |
|
|
$ |
205,679 |
|
|
$ |
168,601 |
|
|
$ |
(80,252 |
) |
|
$ |
569,088 |
|
|
$ |
241,030 |
|
|
$ |
179,567 |
|
|
$ |
147,028 |
|
|
$ |
(65,069 |
) |
|
$ |
502,556 |
|
- Other (income) expense - net |
|
1,351 |
|
|
(1,192 |
) |
|
(3,444 |
) |
|
(700 |
) |
|
(3,985 |
) |
|
1,007 |
|
|
(795 |
) |
|
1,959 |
|
|
223 |
|
|
2,394 |
|
+ Depreciation and amortization |
|
22,370 |
|
|
39,939 |
|
|
14,493 |
|
|
742 |
|
|
77,544 |
|
|
23,587 |
|
|
45,287 |
|
|
14,541 |
|
|
801 |
|
|
84,216 |
|
EBITDA |
|
296,079 |
|
|
246,810 |
|
|
186,538 |
|
|
(78,810 |
) |
|
650,617 |
|
|
263,610 |
|
|
225,649 |
|
|
159,610 |
|
|
(64,491 |
) |
|
584,378 |
|
- Interest expense |
|
|
|
|
|
|
|
|
|
44,134 |
|
|
|
|
|
|
|
|
|
|
44,889 |
|
- Provision for income taxes |
|
|
|
|
|
|
|
|
|
118,366 |
|
|
|
|
|
|
|
|
|
|
118,016 |
|
- Depreciation and amortization |
|
|
|
|
|
|
|
|
|
77,544 |
|
|
|
|
|
|
|
|
|
|
84,216 |
|
Reported net income |
|
|
|
|
|
|
|
|
|
$410,573 |
|
|
|
|
|
|
|
|
|
|
$337,257 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales (eliminations) |
|
$ |
951,552 |
|
|
$ |
896,419 |
|
|
$ |
637,028 |
|
|
$ |
(1,333 |
) |
|
$ |
2,483,666 |
|
|
$ |
880,957 |
|
|
$ |
820,131 |
|
|
$ |
587,533 |
|
|
$ |
(1,309 |
) |
|
$ |
2,287,312 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported operating margin |
|
28.9 |
% |
|
22.9 |
% |
|
26.5 |
% |
|
n/m |
|
22.9 |
% |
|
27.4 |
% |
|
21.9 |
% |
|
25.0 |
% |
|
n/m |
|
22.0 |
% |
EBITDA margin |
|
31.1 |
% |
|
27.5 |
% |
|
29.3 |
% |
|
n/m |
|
26.2 |
% |
|
29.9 |
% |
|
27.5 |
% |
|
27.2 |
% |
|
n/m |
|
25.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 5: Reconciliations of EBITDA to Adjusted EBITDA (dollars in thousands)
|
|
For the Quarter Ended December 31, |
|
|
2018 |
|
2017 |
|
|
FMT |
|
HST |
|
FSDP |
|
Corporate |
|
IDEX |
|
FMT |
|
HST |
|
FSDP |
|
Corporate |
|
IDEX |
EBITDA |
|
$ |
73,085 |
|
|
$ |
62,151 |
|
|
$ |
42,140 |
|
|
$ |
(19,201 |
) |
|
$ |
158,175 |
|
|
$ |
66,664 |
|
|
$ |
56,694 |
|
|
$ |
44,313 |
|
|
$ |
(12,690 |
) |
|
$ |
154,981 |
|
+ Restructuring expenses |
|
1,145 |
|
|
606 |
|
|
1,757 |
|
|
324 |
|
|
3,832 |
|
|
1,808 |
|
|
1,668 |
|
|
182 |
|
|
— |
|
|
3,658 |
|
+ Gain on sale of business |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(9,273 |
) |
|
(9,273 |
) |
Adjusted EBITDA |
|
$ |
74,230 |
|
|
$ |
62,757 |
|
|
$ |
43,897 |
|
|
$ |
(18,877 |
) |
|
$ |
162,007 |
|
|
$ |
68,472 |
|
|
$ |
58,362 |
|
|
$ |
44,495 |
|
|
$ |
(21,963 |
) |
|
$ |
149,366 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA margin |
|
31.3 |
% |
|
27.8 |
% |
|
28.9 |
% |
|
n/m |
|
26.4 |
% |
|
30.8 |
% |
|
27.9 |
% |
|
28.6 |
% |
|
n/m |
|
25.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended December 31, |
|
|
2018 |
|
2017 |
|
|
FMT |
|
HST |
|
FSDP |
|
Corporate |
|
IDEX |
|
FMT |
|
HST |
|
FSDP |
|
Corporate |
|
IDEX |
EBITDA |
|
$ |
296,079 |
|
|
$ |
246,810 |
|
|
$ |
186,538 |
|
|
$ |
(78,810 |
) |
|
$ |
650,617 |
|
|
$ |
263,610 |
|
|
$ |
225,649 |
|
|
$ |
159,610 |
|
|
$ |
(64,491 |
) |
|
$ |
584,378 |
|
+ Restructuring expenses |
|
2,458 |
|
|
5,904 |
|
|
2,184 |
|
|
1,537 |
|
|
12,083 |
|
|
3,374 |
|
|
4,696 |
|
|
255 |
|
|
130 |
|
|
8,455 |
|
+ Gain on sale of business |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(9,273 |
) |
|
(9,273 |
) |
Adjusted EBITDA |
|
$ |
298,537 |
|
|
$ |
252,714 |
|
|
$ |
188,722 |
|
|
$ |
(77,273 |
) |
|
$ |
662,700 |
|
|
$ |
266,984 |
|
|
$ |
230,345 |
|
|
$ |
159,865 |
|
|
$ |
(73,634 |
) |
|
$ |
583,560 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA margin |
|
31.4 |
% |
|
28.2 |
% |
|
29.6 |
% |
|
n/m |
|
26.7 |
% |
|
30.3 |
% |
|
28.1 |
% |
|
27.2 |
% |
|
n/m |
|
25.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 6: Reconciliations of Free Cash Flow (in thousands)
|
|
For the Quarter Ended |
|
For the Year Ended
December 31,
|
|
|
December 31, |
|
September 30, |
|
|
|
2018 |
|
2017 |
|
2018 |
|
2018 |
|
2017 |
Cash flow from operating activities |
|
$ |
153,592 |
|
|
$ |
136,173 |
|
|
$ |
133,327 |
|
|
$ |
479,345 |
|
|
$ |
432,753 |
- Capital expenditures |
|
16,233 |
|
|
15,804 |
|
|
18,888 |
|
|
56,089 |
|
|
43,858 |
Free cash flow |
|
$ |
137,359 |
|
|
$ |
120,369 |
|
|
$ |
114,439 |
|
|
$ |
423,256 |
|
|
$ |
388,895 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Conference Call to be Broadcast over the Internet
IDEX will broadcast its fourth quarter earnings conference call over the Internet on Wednesday, January 30, 2019 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
#13684161.
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 “anticipates,” “estimates,” “plans,” “expects,” “projects,” “forecasts,” “should,” “could,” “will,” “management believes,”
“the Company believes,” “the Company intends,” and similar words or phrases. These statements are subject to inherent uncertainties
and risks that could cause actual results to differ materially from those anticipated at the date of this news release. The risks
and uncertainties include, but are not limited to, the following: economic and political consequences resulting from terrorist
attacks and wars; levels of industrial activity and economic conditions in the U.S. and other countries around the world; pricing
pressures and other competitive factors and levels of capital spending in certain industries, all of which could have a material
impact on order rates and the Company's results, particularly in light of the low levels of order backlogs it typically maintains;
the Company's ability to make acquisitions and to integrate and operate acquired businesses on a profitable basis; the relationship
of the U.S. dollar to other currencies and its impact on pricing and cost competitiveness; political and economic conditions in
foreign countries in which the Company operates; developments with respect to trade policy and tariffs; interest rates; capacity
utilization and the effect this has on costs; labor markets; market conditions and material costs; and developments with respect to
contingencies, such as litigation and environmental matters. Additional factors that could cause actual results to differ
materially from those reflected in the forward-looking statements include, but are not limited to, the risks discussed in the “Risk
Factors” section included in the Company’s most recent annual report on Form 10-K filed with the SEC and the other risks discussed
in the Company’s filings with the SEC. The forward-looking statements included here are only made as of the date of this news
release, and management undertakes no obligation to publicly update them to reflect subsequent events or circumstances, except as
may be required by law. Investors are cautioned not to rely unduly on forward-looking statements when evaluating the information
presented here.
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®
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, |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Net sales |
|
$ |
614,094 |
|
|
$ |
585,904 |
|
|
$ |
2,483,666 |
|
|
$ |
2,287,312 |
|
Cost of sales |
|
340,451 |
|
|
325,022 |
|
|
1,365,771 |
|
|
1,260,634 |
|
Gross profit |
|
273,643 |
|
|
260,882 |
|
|
1,117,895 |
|
|
1,026,678 |
|
Selling, general and administrative expenses |
|
130,370 |
|
|
131,249 |
|
|
536,724 |
|
|
524,940 |
|
Gain on sale of business |
|
— |
|
|
(9,273 |
) |
|
— |
|
|
(9,273 |
) |
Restructuring expenses |
|
3,832 |
|
|
3,658 |
|
|
12,083 |
|
|
8,455 |
|
Operating income |
|
139,441 |
|
|
135,248 |
|
|
569,088 |
|
|
502,556 |
|
Other (income) expense - net |
|
(420 |
) |
|
677 |
|
|
(3,985 |
) |
|
2,394 |
|
Interest expense |
|
11,036 |
|
|
10,969 |
|
|
44,134 |
|
|
44,889 |
|
Income before income taxes |
|
128,825 |
|
|
123,602 |
|
|
528,939 |
|
|
455,273 |
|
Provision for income taxes |
|
30,688 |
|
|
29,856 |
|
|
118,366 |
|
|
118,016 |
|
Net income |
|
$ |
98,137 |
|
|
$ |
93,746 |
|
|
$ |
410,573 |
|
|
$ |
337,257 |
|
|
|
|
|
|
|
|
|
|
Earnings per Common Share: |
|
|
|
|
|
|
|
|
Basic earnings per common share |
|
$ |
1.29 |
|
|
$ |
1.23 |
|
|
$ |
5.36 |
|
|
$ |
4.41 |
|
Diluted earnings per common share |
|
$ |
1.27 |
|
|
$ |
1.21 |
|
|
$ |
5.29 |
|
|
$ |
4.36 |
|
|
|
|
|
|
|
|
|
|
Share Data: |
|
|
|
|
|
|
|
|
Basic weighted average common shares outstanding |
|
76,128 |
|
|
76,283 |
|
|
76,412 |
|
|
76,232 |
|
Diluted weighted average common shares outstanding |
|
77,100 |
|
|
77,597 |
|
|
77,563 |
|
|
77,333 |
|
|
|
|
|
|
IDEX CORPORATION |
Condensed Consolidated Balance Sheets
|
(in thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
December 31, |
|
December 31, |
|
|
2018 |
|
2017 |
Assets |
|
|
|
|
Current assets |
|
|
|
|
Cash and cash equivalents |
|
$ |
466,407 |
|
|
$ |
375,950 |
Receivables - net |
|
314,753 |
|
|
294,166 |
Inventories |
|
279,995 |
|
|
259,724 |
Other current assets |
|
31,377 |
|
|
74,203 |
Total current assets |
|
1,092,532 |
|
|
1,004,043 |
Property, plant and equipment - net |
|
281,220 |
|
|
258,350 |
Goodwill and intangible assets |
|
2,081,282 |
|
|
2,118,904 |
Other noncurrent assets |
|
15,765 |
|
|
18,331 |
Total assets |
|
$ |
3,470,799 |
|
|
$ |
3,399,628 |
|
|
|
|
|
Liabilities and shareholders' equity |
|
|
|
|
Current liabilities |
|
|
|
|
Trade accounts payable |
|
$ |
143,196 |
|
|
$ |
147,067 |
Accrued expenses |
|
187,536 |
|
|
184,705 |
Short-term borrowings |
|
483 |
|
|
258 |
Dividends payable |
|
33,446 |
|
|
28,945 |
Total current liabilities |
|
364,661 |
|
|
360,975 |
Long-term borrowings |
|
848,335 |
|
|
858,788 |
Other noncurrent liabilities |
|
264,627 |
|
|
293,323 |
Total liabilities |
|
1,477,623 |
|
|
1,513,086 |
Shareholders' equity |
|
1,993,176 |
|
|
1,886,542 |
Total liabilities and shareholders' equity |
|
$ |
3,470,799 |
|
|
$ |
3,399,628 |
|
|
|
IDEX CORPORATION |
Condensed Consolidated Statements of Cash Flows
|
(in thousands)
|
(unaudited)
|
|
|
|
|
|
For the Year Ended |
|
|
December 31, |
|
|
2018 |
|
2017 |
Cash flows from operating activities |
|
|
|
|
Net income |
|
$ |
410,573 |
|
|
$ |
337,257 |
|
Adjustments to reconcile net income to net cash provided by operating
activities: |
|
|
|
|
Loss on sale of fixed assets - net |
|
946 |
|
|
315 |
|
Gain on sale of business |
|
— |
|
|
(9,273 |
) |
Depreciation and amortization |
|
39,049 |
|
|
38,314 |
|
Amortization of intangible assets |
|
38,495 |
|
|
45,902 |
|
Amortization of debt issuance expenses |
|
1,332 |
|
|
1,320 |
|
Share-based compensation expense |
|
24,754 |
|
|
24,405 |
|
Deferred income taxes |
|
(4,346 |
) |
|
(33,742 |
) |
Non-cash interest expense associated with forward starting swaps |
|
6,475 |
|
|
6,655 |
|
Changes in (net of the effect from acquisitions and divestitures): |
|
|
|
|
Receivables |
|
(26,063 |
) |
|
(15,803 |
) |
Inventories |
|
(23,031 |
) |
|
760 |
|
Other current assets |
|
27,806 |
|
|
(20,031 |
) |
Trade accounts payable |
|
(1,220 |
) |
|
12,556 |
|
Accrued expenses |
|
4,148 |
|
|
19,710 |
|
Other - net |
|
(19,573 |
) |
|
24,408 |
|
Net cash flows provided by operating activities |
|
479,345 |
|
|
432,753 |
|
Cash flows from investing activities |
|
|
|
|
Purchases of property, plant and equipment |
|
(56,089 |
) |
|
(43,858 |
) |
Purchase of intellectual property |
|
(4,000 |
) |
|
— |
|
Acquisition of businesses, net of cash acquired |
|
(20,205 |
) |
|
(38,161 |
) |
Proceeds from sale of business |
|
— |
|
|
21,795 |
|
Proceeds from fixed asset disposals |
|
363 |
|
|
6,011 |
|
Other - net |
|
(1,500 |
) |
|
(533 |
) |
Net cash flows used in investing activities |
|
(81,431 |
) |
|
(54,746 |
) |
Cash flows from financing activities |
|
|
|
|
Borrowings under revolving credit facilities |
|
— |
|
|
33,000 |
|
Payments under revolving credit facilities |
|
(11,284 |
) |
|
(200,618 |
) |
Dividends paid |
|
(127,478 |
) |
|
(111,172 |
) |
Proceeds from stock option exercises |
|
27,639 |
|
|
22,935 |
|
Purchases of common stock |
|
(173,926 |
) |
|
(29,074 |
) |
Shares surrendered for tax withholding |
|
(11,555 |
) |
|
(6,228 |
) |
Settlement of foreign exchange contracts |
|
6,593 |
|
|
13,736 |
|
Net cash flows used in financing activities |
|
(290,011 |
) |
|
(277,421 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
(17,446 |
) |
|
39,400 |
|
Net increase in cash |
|
90,457 |
|
|
139,986 |
|
Cash and cash equivalents at beginning of year |
|
375,950 |
|
|
235,964 |
|
Cash and cash equivalents at end of period |
|
$ |
466,407 |
|
|
$ |
375,950 |
|
|
|
|
|
|
|
IDEX CORPORATION |
Company and Segment Financial Information - Reported
|
(dollars in thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended |
|
For the Year Ended |
|
|
|
December 31,(a)
|
|
December 31,(a)
|
|
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
Fluid & Metering Technologies |
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
237,206 |
|
|
$ |
222,052 |
|
|
$ |
951,552 |
|
|
$ |
880,957 |
|
|
Operating income (b) |
|
67,911 |
|
|
61,200 |
|
|
275,060 |
|
|
241,030 |
|
|
Operating margin |
|
28.6 |
% |
|
27.6 |
% |
|
28.9 |
% |
|
27.4 |
% |
|
EBITDA |
|
$ |
73,085 |
|
|
$ |
66,664 |
|
|
$ |
296,079 |
|
|
$ |
263,610 |
|
|
EBITDA margin |
|
30.8 |
% |
|
30.0 |
% |
|
31.1 |
% |
|
29.9 |
% |
|
Depreciation and amortization |
|
$ |
5,469 |
|
|
$ |
5,764 |
|
|
$ |
22,370 |
|
|
$ |
23,587 |
|
|
Capital expenditures |
|
4,399 |
|
|
6,059 |
|
|
19,541 |
|
|
18,218 |
|
|
|
|
|
|
|
|
|
|
|
|
Health & Science Technologies |
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
225,515 |
|
|
$ |
208,916 |
|
|
$ |
896,419 |
|
|
$ |
820,131 |
|
|
Operating income (b) |
|
52,160 |
|
|
44,962 |
|
|
205,679 |
|
|
179,567 |
|
|
Operating margin |
|
23.1 |
% |
|
21.5 |
% |
|
22.9 |
% |
|
21.9 |
% |
|
EBITDA |
|
$ |
62,151 |
|
|
$ |
56,694 |
|
|
$ |
246,810 |
|
|
$ |
225,649 |
|
|
EBITDA margin |
|
27.6 |
% |
|
27.1 |
% |
|
27.5 |
% |
|
27.5 |
% |
|
Depreciation and amortization |
|
$ |
9,079 |
|
|
$ |
10,840 |
|
|
$ |
39,939 |
|
|
$ |
45,287 |
|
|
Capital expenditures |
|
8,743 |
|
|
4,851 |
|
|
26,039 |
|
|
16,340 |
|
|
|
|
|
|
|
|
|
|
|
|
Fire & Safety/Diversified Products |
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
151,723 |
|
|
$ |
155,504 |
|
|
$ |
637,028 |
|
|
$ |
587,533 |
|
|
Operating income (b) |
|
38,439 |
|
|
41,006 |
|
|
168,601 |
|
|
147,028 |
|
|
Operating margin |
|
25.3 |
% |
|
26.4 |
% |
|
26.5 |
% |
|
25.0 |
% |
|
EBITDA |
|
$ |
42,140 |
|
|
$ |
44,313 |
|
|
$ |
186,538 |
|
|
$ |
159,610 |
|
|
EBITDA margin |
|
27.8 |
% |
|
28.5 |
% |
|
29.3 |
% |
|
27.2 |
% |
|
Depreciation and amortization |
|
$ |
3,581 |
|
|
$ |
3,603 |
|
|
$ |
14,493 |
|
|
$ |
14,541 |
|
|
Capital expenditures |
|
3,086 |
|
|
2,185 |
|
|
10,318 |
|
|
6,363 |
|
|
|
|
|
|
|
|
|
|
|
|
Corporate Office and Eliminations |
|
|
|
|
|
|
|
|
|
Intersegment sales eliminations |
|
$ |
(350 |
) |
|
$ |
(568 |
) |
|
$ |
(1,333 |
) |
|
$ |
(1,309 |
) |
|
Operating income (b) |
|
(19,069 |
) |
|
(11,920 |
) |
|
(80,252 |
) |
|
(65,069 |
) |
|
EBITDA |
|
(19,201 |
) |
|
(12,690 |
) |
|
(78,810 |
) |
|
(64,491 |
) |
|
Depreciation and amortization |
|
185 |
|
|
203 |
|
|
742 |
|
|
801 |
|
|
Capital expenditures |
|
5 |
|
|
2,709 |
|
|
191 |
|
|
2,937 |
|
|
|
|
|
|
|
|
|
|
|
|
Company |
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
614,094 |
|
|
$ |
585,904 |
|
|
$ |
2,483,666 |
|
|
$ |
2,287,312 |
|
|
Operating income |
|
139,441 |
|
|
135,248 |
|
|
569,088 |
|
|
502,556 |
|
|
Operating margin |
|
22.7 |
% |
|
23.1 |
% |
|
22.9 |
% |
|
22.0 |
% |
|
EBITDA |
|
$ |
158,175 |
|
|
$ |
154,981 |
|
|
$ |
650,617 |
|
|
$ |
584,378 |
|
|
EBITDA margin |
|
25.8 |
% |
|
26.5 |
% |
|
26.2 |
% |
|
25.5 |
% |
|
Depreciation and amortization (c) |
|
$ |
18,314 |
|
|
$ |
20,410 |
|
|
$ |
77,544 |
|
|
$ |
84,216 |
|
|
Capital expenditures |
|
16,233 |
|
|
15,804 |
|
|
56,089 |
|
|
43,858 |
|
|
|
|
|
|
|
IDEX CORPORATION |
Company and Segment Financial Information - Adjusted
|
(dollars in thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended |
|
For the Year Ended |
|
|
|
December 31,(a)
|
|
December 31,(a)
|
|
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
Fluid & Metering Technologies |
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
237,206 |
|
|
$ |
222,052 |
|
|
$ |
951,552 |
|
|
$ |
880,957 |
|
|
Adjusted operating income (b) |
|
69,056 |
|
|
63,008 |
|
|
277,518 |
|
|
244,404 |
|
|
Adjusted operating margin |
|
29.1 |
% |
|
28.4 |
% |
|
29.2 |
% |
|
27.7 |
% |
|
Adjusted EBITDA |
|
$ |
74,230 |
|
|
$ |
68,472 |
|
|
$ |
298,537 |
|
|
$ |
266,984 |
|
|
Adjusted EBITDA margin |
|
31.3 |
% |
|
30.8 |
% |
|
31.4 |
% |
|
30.3 |
% |
|
Depreciation and amortization |
|
$ |
5,469 |
|
|
$ |
5,764 |
|
|
$ |
22,370 |
|
|
$ |
23,587 |
|
|
Capital expenditures |
|
4,399 |
|
|
6,059 |
|
|
19,541 |
|
|
18,218 |
|
|
|
|
|
|
|
|
|
|
|
|
Health & Science Technologies |
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
225,515 |
|
|
$ |
208,916 |
|
|
$ |
896,419 |
|
|
$ |
820,131 |
|
|
Adjusted operating income (b) |
|
52,766 |
|
|
46,630 |
|
|
211,583 |
|
|
184,263 |
|
|
Adjusted operating margin |
|
23.4 |
% |
|
22.3 |
% |
|
23.6 |
% |
|
22.5 |
% |
|
Adjusted EBITDA |
|
$ |
62,757 |
|
|
$ |
58,362 |
|
|
$ |
252,714 |
|
|
$ |
230,345 |
|
|
Adjusted EBITDA margin |
|
27.8 |
% |
|
27.9 |
% |
|
28.2 |
% |
|
28.1 |
% |
|
Depreciation and amortization |
|
$ |
9,079 |
|
|
$ |
10,840 |
|
|
$ |
39,939 |
|
|
$ |
45,287 |
|
|
Capital expenditures |
|
8,743 |
|
|
4,851 |
|
|
26,039 |
|
|
16,340 |
|
|
|
|
|
|
|
|
|
|
|
|
Fire & Safety/Diversified Products |
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
151,723 |
|
|
$ |
155,504 |
|
|
$ |
637,028 |
|
|
$ |
587,533 |
|
|
Adjusted operating income (b) |
|
40,196 |
|
|
41,188 |
|
|
170,785 |
|
|
147,283 |
|
|
Adjusted operating margin |
|
26.5 |
% |
|
26.5 |
% |
|
26.8 |
% |
|
25.1 |
% |
|
Adjusted EBITDA |
|
$ |
43,897 |
|
|
$ |
44,495 |
|
|
$ |
188,722 |
|
|
$ |
159,865 |
|
|
Adjusted EBITDA margin |
|
28.9 |
% |
|
28.6 |
% |
|
29.6 |
% |
|
27.2 |
% |
|
Depreciation and amortization |
|
$ |
3,581 |
|
|
$ |
3,603 |
|
|
$ |
14,493 |
|
|
$ |
14,541 |
|
|
Capital expenditures |
|
3,086 |
|
|
2,185 |
|
|
10,318 |
|
|
6,363 |
|
|
|
|
|
|
|
|
|
|
|
|
Corporate Office and Eliminations |
|
|
|
|
|
|
|
|
|
Intersegment sales eliminations |
|
$ |
(350 |
) |
|
$ |
(568 |
) |
|
$ |
(1,333 |
) |
|
$ |
(1,309 |
) |
|
Adjusted operating income (b) |
|
(18,745 |
) |
|
(21,193 |
) |
|
(78,715 |
) |
|
(74,212 |
) |
|
Adjusted EBITDA |
|
(18,877 |
) |
|
(21,963 |
) |
|
(77,273 |
) |
|
(73,634 |
) |
|
Depreciation and amortization |
|
185 |
|
|
203 |
|
|
742 |
|
|
801 |
|
|
Capital expenditures |
|
5 |
|
|
2,709 |
|
|
191 |
|
|
2,937 |
|
|
|
|
|
|
|
|
|
|
|
|
Company |
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
614,094 |
|
|
$ |
585,904 |
|
|
$ |
2,483,666 |
|
|
$ |
2,287,312 |
|
|
Adjusted operating income |
|
143,273 |
|
|
129,633 |
|
|
581,171 |
|
|
501,738 |
|
|
Adjusted operating margin |
|
23.3 |
% |
|
22.1 |
% |
|
23.4 |
% |
|
21.9 |
% |
|
Adjusted EBITDA |
|
$ |
162,007 |
|
|
$ |
149,366 |
|
|
$ |
662,700 |
|
|
$ |
583,560 |
|
|
Adjusted EBITDA margin |
|
26.4 |
% |
|
25.5 |
% |
|
26.7 |
% |
|
25.5 |
% |
|
Depreciation and amortization (c) |
|
$ |
18,314 |
|
|
$ |
20,410 |
|
|
$ |
77,544 |
|
|
$ |
84,216 |
|
|
Capital expenditures |
|
16,233 |
|
|
15,804 |
|
|
56,089 |
|
|
43,858 |
|
|
|
|
|
|
|
|
|
|
|
(a) |
|
Three and twelve months data include the results of Finger Lakes Instrumentation
(July 2018) and thinXXS (December 2017) in the Health & Science Technologies segment from the date of acquisition and the
results of Faure Herman (October 2017) in the Fluid & Metering Technologies segment through the date of disposition. |
(b) |
|
Segment operating income excludes unallocated corporate operating expenses which are
included in Corporate Office and Eliminations. |
(c) |
|
Depreciation and amortization excludes amortization of debt issuance costs. |
Investor Contact:
William K. Grogan
Senior Vice President and Chief Financial Officer
(847) 498-7070
View source version on businesswire.com: https://www.businesswire.com/news/home/20190129005909/en/