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17 Nov 2017

 

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IDEX Reports Record Third Quarter Orders, Sales and EPS; Raises Full Year EPS Guidance

LAKE FOREST, Ill.--(BUSINESS WIRE)--Oct. 16, 2017-- IDEX Corporation (NYSE: IEX) today announced its financial results for the three month period ended September 30, 2017.

Third Quarter 2017 Highlights

  • Orders were up 8 percent overall and 7 percent organically
  • Sales were up 8 percent overall and 7 percent organically
  • Operating margin was 22.0 percent
  • EPS was $1.08, up 17 cents, or 19 percent

Third Quarter 2017

Orders of $573.8 million were up 8 percent (+7 percent organic and +1 percent foreign currency translation) compared with the prior year period.

Sales of $574.5 million were up 8 percent (+7 percent organic and +1 percent foreign currency translation) compared with the prior year period.

Gross margin of 44.9 percent was up 140 basis points from the prior year period. Excluding $4.6 million of pre-tax fair value inventory step-up charges from the prior year period, gross margin would have been up 50 basis points primarily due to volume leverage.

Operating income of $126.5 million resulted in an operating margin of 22.0 percent, up 130 basis points from the prior year operating margin and 90 basis points from the prior year adjusted operating margin. Excluding the $4.6 million fair value step-up charges from the prior year results, operating margin would have been up 10 basis points. Operating income drove EBITDA of $146.1 million which was 25 percent of sales and covered interest expense by more than 13 times.

Net income was $83.8 million which resulted in EPS of $1.08, up 17 cents, or 19 percent, from the prior year period. Excluding the net loss on divestitures from the prior year period, EPS was up 16 cents, or 17 percent from adjusted prior year EPS.

Cash from operations for the third quarter of $124.0 million led to free cash flow of $115.5 million, which converted at 138 percent of net income.

The Company repurchased 116 thousand shares of common stock for $13.8 million in the third quarter of 2017.

 
“Solid execution, coupled with increasing demand, delivered another strong quarter for IDEX. Third quarter organic orders and sales both grew 7 percent, which drove operating margin of 22.0 percent. HST and FMT continued to lead the way with 10 percent and 7 percent organic revenue growth, respectively. This growth resulted in EPS of $1.08 which was up 16 cents, or 17 percent, from the adjusted prior year period. Free cash flow was very strong with a conversion rate at 138 percent of net income.
 
I am pleased with the solid organic growth rates we have achieved this year. Consistent with our capital deployment strategy, our number one priority is to fully fund long-term organic growth opportunities. Our commitment to segmenting our businesses and funding our best organic initiatives is helping to deliver on our goal of outperforming our underlying markets. Looking ahead, we will continue to fund these opportunities as an integral part of our capital deployment objectives which include pursuing strategic M&A, funding our dividend and being opportunistic in repurchasing our shares.
 
Based on our third quarter results and strength in orders across all three segments, we are raising full year 2017 adjusted EPS guidance to $4.25 to $4.27, with fourth quarter EPS of $1.06 to $1.08. We also reaffirm full year 2017 organic revenue growth of 5 percent, with 6 percent organic growth expected in the fourth quarter.”
 
Andrew K. Silvernail
Chairman and Chief Executive Officer
 

Third Quarter 2017 Segment Highlights

Fluid & Metering Technologies

  • Sales of $221.0 million reflected a 6 percent increase compared to the third quarter of 2016 (+7 percent organic, -2 percent divestitures and +1 percent foreign currency translation).
  • Operating income of $62.0 million resulted in an operating margin of 28.1 percent, a 130 basis point increase compared to the prior year period operating margin primarily due to higher volume, cost savings from prior year restructuring initiatives and lower amortization.
  • EBITDA of $68.0 million resulted in an EBITDA margin of 30.8 percent, a 60 basis point increase compared to the prior year period EBITDA margin.

Health & Science Technologies

  • Sales of $207.1 million reflected a 13 percent increase compared to the third quarter of 2016 (+10 percent organic and +3 percent acquisition/divestitures).
  • Operating income of $46.1 million resulted in an operating margin of 22.2 percent, a 190 basis point increase compared to the prior year period operating margin primarily due to higher volume and the inclusion of a fair value inventory step-up charge in the prior year period.
  • EBITDA of $58.2 million resulted in an EBITDA margin of 28.1 percent, a 150 basis point increase compared to the prior year period EBITDA margin.

Fire & Safety/Diversified Products

  • Sales of $146.6 million reflected a 6 percent increase compared to the third quarter of 2016 (+4 percent organic and +2 percent foreign currency translation).
  • Operating income of $36.2 million resulted in an operating margin of 24.7 percent, a 130 basis point increase compared to the prior year period operating margin primarily due to higher volume and the inclusion of a fair value inventory step-up charge in the prior year period.
  • EBITDA of $38.9 million resulted in an EBITDA margin of 26.5 percent, a 40 basis point increase compared to the prior year period EBITDA margin.

For the third quarter of 2017, Fluid & Metering Technologies contributed 38 percent of sales, 43 percent of operating income and 41 percent of EBITDA; Health & Science Technologies accounted for 36 percent of sales, 32 percent of operating income and 35 percent of EBITDA; and Fire & Safety/Diversified Products represented 26 percent of sales, 25 percent of operating income and 24 percent of EBITDA.

Non-U.S. GAAP Measures of Financial Performance

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

  • Organic orders and sales are calculated according to U.S. GAAP excluding amounts from acquired or divested businesses during the first twelve months of ownership or divestiture and the impact of foreign currency translation.
  • Adjusted operating income is calculated as operating income plus restructuring expenses plus or minus the 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 Net Organic Sales

 
    Quarter Ended     Nine Months Ended
September 30, 2017 September 30, 2017
FMT   HST   FSDP   IDEX FMT   HST   FSDP   IDEX
Change in net sales 6%   13%   6%   8% 3%   10%   12%   8%
- Net impact from acquisitions/divestitures (2%) 3% 0% 0% (2%) 4% 12% 4%
- Impact from FX 1% 0% 2% 1% 0% (1%) (1%) (1%)
Change in net organic sales 7% 10% 4% 7% 5% 7% 1% 5%
 

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

 
    Quarter Ended September 30,
2017      

2016 (e)

FMT   HST   FSDP   Corporate IDEX FMT   HST   FSDP   Corporate   IDEX
Reported operating income (loss) $ 61,988   $ 46,073   $ 36,199   $ (17,756 ) $ 126,504 $ 55,907   $ 37,195   $ 32,492   $ (15,886 )   $ 109,708
+Loss (gain) on sale of businesses - net   -     -     -     -     -     -     -     -     2,067     2,067  
Adjusted operating income (loss) $ 61,988   $ 46,073   $ 36,199   $ (17,756 ) $ 126,504   $ 55,907   $ 37,195   $ 32,492   $ (13,819 ) $ 111,775  
 
Net sales (eliminations) $ 220,953 $ 207,127 $ 146,599 $ (189 ) $ 574,490 $ 208,335 $ 183,564 $ 138,767 $ (310 ) $ 530,356
Operating margin 28.1 % 22.2 % 24.7 % n/m 22.0 % 26.8 % 20.3 % 23.4 % n/m 20.7 %
Adjusted operating margin 28.1 % 22.2 % 24.7 % n/m 22.0 % 26.8 % 20.3 % 23.4 % n/m 21.1 %
 
Nine Months Ended September 30,
2017  

2016 (e)

FMT   HST   FSDP   Corporate IDEX FMT   HST   FSDP   Corporate   IDEX
Reported operating income (loss) $ 179,830 $ 134,605 $ 106,022 $ (53,149 ) $ 367,308 $ 161,782 $ 118,985 $ 92,566 $ (46,457 ) $ 326,876
+Restructuring expenses 1,566 3,028 73 130 4,797 - - - - -
+Loss (gain) on sale of businesses - net   -     -     -     -     -     -     -     -     2,067     2,067  
Adjusted operating income (loss) $ 181,396   $ 137,633   $ 106,095   $ (53,019 ) $ 372,105   $ 161,782   $ 118,985   $ 92,566   $ (44,390 ) $ 328,943  
 
Net sales (eliminations) $ 658,905 $ 611,215 $ 432,029 $ (741 ) $ 1,701,408 $ 641,988 $ 556,475 $ 384,996 $ (835 ) $ 1,582,624
Operating margin 27.3 % 22.0 % 24.5 % n/m 21.6 % 25.2 % 21.4 % 24.0 % n/m 20.7 %
Adjusted operating margin 27.5 % 22.5 % 24.6 % n/m 21.9 % 25.2 % 21.4 % 24.0 % n/m 20.8 %
 

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

 
    Quarter     Nine Months
Ended September 30, Ended September 30,
2017   2016 2017   2016
Reported net income $ 83,768 $ 69,873 $ 243,511 $ 213,762
+Restructuring expenses - - 4,797 -
+Tax impact on restructuring expenses - - (1,529 ) -
+Loss (gain) on sale of businesses - net - 2,067 - 2,067
+Tax impact on loss (gain) on sale of businesses - net   -   (1,467 )   -     (1,467 )
Adjusted net income $ 83,768 $ 70,473   $ 246,779   $ 214,362  
 
Reported EPS $ 1.08 $ 0.91 $ 3.15 $ 2.78
+Restructuring expenses - - 0.06 -
+Tax impact on restructuring expenses - - (0.02 ) -
+Loss (gain) on sale of businesses - net - 0.03 - 0.03
+Tax impact on loss (gain) on sale of businesses - net   -   (0.02 )   -     (0.02 )
Adjusted EPS $ 1.08 $ 0.92   $ 3.19   $ 2.79  
 
Diluted weighted average shares 77,523 76,880 77,246 76,742
 

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

                     
Quarter Ended September 30,
2017

2016 (e)

FMT   HST   FSDP   Corporate   IDEX FMT   HST   FSDP   Corporate   IDEX
Operating income (loss) $ 61,988 $ 46,073 $ 36,199 $ (17,756 ) $ 126,504 $ 55,907 $ 37,195 $ 32,492 $ (15,886 ) $ 109,708
- Other (income) expense - net 230 (970 ) 1,044 1,349 1,653 171 (384 ) (195 ) (1,105 ) (1,513 )
+ Depreciation and amortization   6,192     11,189     3,709     190     21,280     7,168     11,163     3,584     277     22,192  
EBITDA 67,950 58,232 38,864 (18,915 ) 146,131 62,904 48,742 36,271 (14,504 ) 133,413
- Interest expense 11,064 11,913
- Provision for income taxes 30,019 29,435
- Depreciation and amortization   21,280     22,192  
Net income $ 83,768   $ 69,873  
 
Net sales (eliminations) $ 220,953 $ 207,127 $ 146,599 $ (189 ) $ 574,490 $ 208,335 $ 183,564 $ 138,767 $ (310 ) $ 530,356
 
Operating margin 28.1 % 22.2 % 24.7 % n/m 22.0 % 26.8 % 20.3 % 23.4 % n/m 20.7 %
EBITDA margin 30.8 % 28.1 % 26.5 % n/m 25.4 % 30.2 % 26.6 % 26.1 % n/m 25.2 %
 
 
Nine Months Ended September 30,
2017

2016 (e)

FMT   HST   FSDP   Corporate   IDEX FMT   HST   FSDP   Corporate   IDEX
Operating income (loss) $ 179,830 $ 134,605 $ 106,022 $ (53,149 ) $ 367,308 $ 161,782 $ 118,985 $ 92,566 $ (46,457 ) $ 326,876
- Other (income) expense - net 707 97 1,663 (750 ) 1,717 566 (1,548 ) (485 ) (1,029 ) (2,496 )
+ Depreciation and amortization   17,823     34,447     10,938     598     63,806     22,011     33,044     8,316     953     64,324  
EBITDA 196,946 168,955 115,297 (51,801 ) 429,397 183,227 153,577 101,367 (44,475 ) 393,696
- Interest expense 33,920 33,607
- Provision for income taxes 88,160 82,003
- Depreciation and amortization   63,806     64,324  
Net income $ 243,511   $ 213,762  
 
Net sales (eliminations) $ 658,905 $ 611,215 $ 432,029 $ (741 ) $ 1,701,408 $ 641,988 $ 556,475 $ 384,996 $ (835 ) $ 1,582,624
 
Operating margin 27.3 % 22.0 % 24.5 % n/m 21.6 % 25.2 % 21.4 % 24.0 % n/m 20.7 %
EBITDA margin 29.9 % 27.6 % 26.7 % n/m 25.2 % 28.5 % 27.6 % 26.3 % n/m 24.9 %
 

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

 
    Quarter Ended September 30,
2017     2016
FMT   HST   FSDP   Corporate   IDEX FMT   HST   FSDP   Corporate   IDEX
EBITDA $ 67,950   $ 58,232   $ 38,864   $ (18,915 )   $ 146,131 $ 62,904   $ 48,742   $ 36,271 $ (14,504 )   $ 133,413
+Loss (gain) on sale of businesses - net   -     -     -     -     -     -     -     -     2,067     2,067  
Adjusted EBITDA $ 67,950   $ 58,232   $ 38,864   $ (18,915 ) $ 146,131   $ 62,904   $ 48,742   $ 36,271   $ (12,437 ) $ 135,480  
 
Adjusted EBITDA margin 30.8 % 28.1 % 26.5 % n/m 25.4 % 30.2 % 26.6 % 26.1 % n/m 25.5 %
 
 
 
Nine Months Ended September 30,
2017 2016
FMT   HST   FSDP   Corporate   IDEX FMT   HST   FSDP Corporate   IDEX
EBITDA $ 196,946 $ 168,955 $ 115,297 $ (51,801 ) $ 429,397 $ 183,227 $ 153,577 $ 101,367 $ (44,475 ) $ 393,696
+Restructuring expenses 1,566 3,028 73 130 4,797 - - - - -
+Loss (gain) on sale of businesses - net   -     -     -     -     -     -     -     -     2,067     2,067  
Adjusted EBITDA $ 198,512   $ 171,983   $ 115,370   $ (51,671 ) $ 434,194   $ 183,227   $ 153,577   $ 101,367   $ (42,408 ) $ 395,763  
 
Adjusted EBITDA margin 30.1 % 28.1 % 26.7 % n/m 25.5 % 28.5 % 27.6 % 26.3 % n/m 25.0 %
 

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

 
    Quarter Ended     Nine Months Ended
September 30,     June 30, September 30,
2017   2016 2017 2017   2016
 
Cash flow from operating activities $ 124,000 $ 125,480 $ 87,601 $ 296,580 $ 284,324
- Capital expenditures   8,515   11,590   9,377   28,054   28,642
Free cash flow $ 115,485 $ 113,890 $ 78,224 $ 268,526 $ 255,682
 

Conference Call to be Broadcast over the Internet

IDEX will broadcast its third quarter earnings conference call over the Internet on Tuesday, October 17, 2017 at 9:30 a.m. CT. Chairman and Chief Executive Officer Andy Silvernail and Senior Vice President and Chief Financial Officer William Grogan will discuss the Company’s recent financial performance and respond to questions from the financial analyst community. IDEX invites interested investors to listen to the call and view the accompanying slide presentation, which will be carried live on its website at www.idexcorp.com. Those who wish to participate should log on several minutes before the discussion begins. After clicking on the presentation icon, investors should follow the instructions to ensure their systems are set up to hear the event and view the presentation slides, or download the correct applications at no charge. Investors will also be able to hear a replay of the call by dialing 877.660.6853 (or 201.612.7415 for international participants) using the ID #13652255.

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 IDEX’s results, particularly in light of the low levels of order backlogs it typically maintains; its ability to make acquisitions and to integrate and operate acquired businesses on a profitable basis; the relationship of the U.S. dollar to other currencies and its impact on pricing and cost competitiveness; political and economic conditions in foreign countries in which the company operates; interest rates; capacity utilization and the effect this has on costs; labor markets; market conditions and material costs; and developments with respect to contingencies, such as litigation and environmental matters. Additional factors that could cause actual results to differ materially from those reflected in the forward-looking statements include, but are not limited to, the risks discussed in the “Risk Factors” section included in the Company’s most recent annual report on Form 10-K filed with the SEC and the other risks discussed in the Company’s filings with the SEC. The forward-looking statements included here are only made as of the date of this news release, and management undertakes no obligation to publicly update them to reflect subsequent events or circumstances, except as may be required by law. Investors are cautioned not to rely unduly on forward-looking statements when evaluating the information presented here.

About IDEX

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

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

(Financial reports follow)

         
IDEX CORPORATION
Condensed Consolidated Statements of Operations
(in thousands except per share amounts)
(unaudited)
 
 
Quarter Ended Nine Months Ended
September 30, September 30,
      2017  

2016 (e)

  2017  

2016 (e)

 
Net sales $ 574,490 $ 530,356 $ 1,701,408 $ 1,582,624
Cost of sales       316,560     299,467       935,612     884,342  
Gross profit 257,930 230,889 765,796 698,282
Selling, general and administrative expenses 131,426 119,114 393,691 369,339
Restructuring expenses - - 4,797 -
Loss (gain) on sale of businesses - net       -     2,067       -     2,067  
Operating income 126,504 109,708 367,308 326,876
Other (income) expense - net 1,653 (1,513 ) 1,717 (2,496 )
Interest expense       11,064     11,913       33,920     33,607  
Income before income taxes 113,787 99,308 331,671 295,765
Provision for income taxes       30,019     29,435       88,160     82,003  
Net income     $ 83,768   $ 69,873     $ 243,511   $ 213,762  
 
 
Earnings per Common Share (a):
Basic earnings per common share $ 1.09 $ 0.92 $ 3.19 $ 2.81
Diluted earnings per common share $ 1.08 $ 0.91 $ 3.15 $ 2.78
 
 
Share Data:
 
Basic weighted average common shares outstanding 76,309 75,819 76,215 75,753
 
Diluted weighted average common shares outstanding 77,523 76,880 77,246 76,742
 
 
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
September 30, December 31,
              2017   2016
 
Assets
Current assets
Cash and cash equivalents $ 303,291 $ 235,964
Receivables - net 307,505 272,813
Inventories 266,705 252,859
Other current assets               77,977     61,085  
Total current assets 955,478 822,721
Property, plant and equipment - net 250,889 247,816
Goodwill and intangible assets 2,094,621 2,068,096
Other noncurrent assets               16,773     16,311  
Total assets             $ 3,317,761   $ 3,154,944  
 
Liabilities and shareholders' equity
Current liabilities
Trade accounts payable $ 137,917 $ 128,933
Accrued expenses 170,223 152,852
Short-term borrowings 347 1,046
Dividends payable               28,364     26,327  
Total current liabilities 336,851 309,158
Long-term borrowings 874,853 1,014,235
Other noncurrent liabilities               295,745     287,657  
Total liabilities 1,507,449 1,611,050
Shareholders' equity               1,810,312     1,543,894  
Total liabilities and shareholders' equity             $ 3,317,761   $ 3,154,944  
 
IDEX CORPORATION
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
       
Nine Months Ended September 30,
      2017     2016
 
Cash flows from operating activities
Net income $ 243,511 $ 213,762
Adjustments to reconcile net income to net cash provided by operating activities:
Loss (gain) on sale of businesses - net - 2,067
Depreciation and amortization 28,425 28,360
Amortization of intangible assets 35,381 35,964
Amortization of debt issuance costs 989 1,150
Share-based compensation expense 18,143 15,325
Deferred income taxes 1,888 4,880
Non-cash interest expense associated with forward starting swaps 5,004 5,144
Changes in (net of the effect from acquisitions and divestitures):
Receivables (28,407 ) (2,178 )
Inventories (4,869 ) 22,250
Other current assets (15,113 ) (18,276 )
Trade accounts payable 3,681 (16,696 )
Accrued expenses 9,912 (2,982 )
Other — net       (1,965 )       (4,446 )
Net cash flows provided by operating activities 296,580 284,324
Cash flows from investing activities
Purchases of property, plant and equipment (28,054 ) (28,642 )
Acquisition of businesses, net of cash acquired - (510,001 )
Proceeds from sale of businesses, net of cash sold - 32,529
Proceeds from fixed asset disposals 5,159 -
Other — net       (337 )       (73 )
Net cash flows used in investing activities (23,232 ) (506,187 )
Cash flows from financing activities
Borrowings under revolving facilities 33,000 460,524
Proceeds from 3.20% Senior Notes - 100,000
Proceeds from 3.37% Senior Notes - 100,000
Payments under revolving facilities (181,692 ) (402,172 )
Debt issuance costs - (246 )
Dividends paid (82,869 ) (77,367 )
Proceeds from stock option exercises 18,980 23,154
Purchase of common stock (22,650 ) (57,272 )
Unvested shares surrendered for tax withholding (5,903 ) (4,899 )
Settlement of foreign exchange contracts       4,406         -  
Net cash flows provided by (used in) financing activities (236,728 ) 141,722
Effect of exchange rate changes on cash and cash equivalents       30,707         (8,480 )
Net increase (decrease) 67,327 (88,621 )
Cash and cash equivalents at beginning of year       235,964         328,018  
Cash and cash equivalents at end of period     $ 303,291       $ 239,397  
 
IDEX CORPORATION
Company and Segment Financial Information - Reported
(dollars in thousands)
(unaudited)
           
 
Quarter Ended Nine Months Ended

September 30, (b)

September 30, (b)

      2017    

2016 (e)

    2017    

2016 (e)

 
 
 
Fluid & Metering Technologies
Net sales $ 220,953 $ 208,335 $ 658,905 $ 641,988
Operating income (c) 61,988 55,907 179,830 161,782
Operating margin 28.1 % 26.8 % 27.3 % 25.2 %
EBITDA $ 67,950 $ 62,904 $ 196,946 $ 183,227
EBITDA margin 30.8 % 30.2 % 29.9 % 28.5 %
Depreciation and amortization $ 6,192 $ 7,168 $ 17,823 $ 22,011
Capital expenditures 3,944 5,091 12,159 12,704
 
Health & Science Technologies
Net sales $ 207,127 $ 183,564 $ 611,215 $ 556,475
Operating income (c) 46,073 37,195 134,605 118,985
Operating margin 22.2 % 20.3 % 22.0 % 21.4 %
EBITDA $ 58,232 $ 48,742 $ 168,955 $ 153,577
EBITDA margin 28.1 % 26.6 % 27.6 % 27.6 %
Depreciation and amortization $ 11,189 $ 11,163 $ 34,447 $ 33,044
Capital expenditures 3,015 4,450 11,489 11,455
 
Fire & Safety/Diversified Products
Net sales $ 146,599 $ 138,767 $ 432,029 $ 384,996
Operating income (c) 36,199 32,492 106,022 92,566
Operating margin 24.7 % 23.4 % 24.5 % 24.0 %
EBITDA $ 38,864 $ 36,271 $ 115,297 $ 101,367
EBITDA margin 26.5 % 26.1 % 26.7 % 26.3 %
Depreciation and amortization $ 3,709 $ 3,584 $ 10,938 $ 8,316
Capital expenditures 1,506 2,034 4,178 4,305
 
Corporate Office and Eliminations
Intersegment sales eliminations $ (189 ) $ (310 ) $ (741 ) $ (835 )
Operating loss (c) (17,756 ) (15,886 ) (53,149 ) (46,457 )
EBITDA (18,915 ) (14,504 ) (51,801 ) (44,475 )
Depreciation and amortization 190 277 598 953
Capital expenditures 50 15 228 178
 
Company
Net sales $ 574,490 $ 530,356 $ 1,701,408 $ 1,582,624
Operating income 126,504 109,708 367,308 326,876
Operating margin 22.0 % 20.7 % 21.6 % 20.7 %
EBITDA $ 146,131 $ 133,413 $ 429,397 $ 393,696
EBITDA margin 25.4 % 25.2 % 25.2 % 24.9 %
Depreciation and amortization (d) $ 21,280 $ 22,192 $ 63,806 $ 64,324
Capital expenditures 8,515 11,590 28,054 28,642
(a)   Calculated by applying the two-class method of allocating earnings to common stock and participating securities as required by ASC 260, Earnings Per Share.
 
(b) Three and nine month data includes the results of 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 nine month data also includes the results of 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.
 
(c) Segment operating income excludes unallocated corporate operating expenses which are included in Corporate Office and Eliminations.
 
(d) Depreciation and amortization excludes amortization of debt issuance costs.
 
(e) 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.
 

Source: IDEX Corporation

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