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News Release
IDEX Reports Record Second Quarter Orders, Sales and EPS; Raises Full Year Guidance

LAKE FOREST, Ill.--(BUSINESS WIRE)--Jul. 25, 2017-- IDEX Corporation (NYSE: IEX) today announced its financial results for the three month period ended June 30, 2017.

Second Quarter 2017 Highlights

  • Orders were up 11 percent overall and 9 percent organically
  • Sales were up 4 percent overall and 3 percent organically
  • Operating margin was 21.8 percent, up 110 basis points
  • EPS was $1.08, up 9 cents, or 9 percent

Second Quarter 2017

Orders of $585.7 million were up 11 percent (+9 percent organic, +3 percent acquisitions/divestitures and -1 percent foreign currency translation) compared with the prior year period.

Sales of $573.4 million were up 4 percent (+3 percent organic, +3 percent acquisitions/divestitures and -2 percent foreign currency translation) compared with the prior year period.

Gross margin of 44.8 percent was up 40 basis points from the prior year period. Excluding a $3.6 million fair value inventory step-up charge from the prior year period, gross margin would have been down 30 basis points primarily due to higher engineering investments related to organic growth initiatives and the effects from some isolated supply chain challenges.

Operating income of $125.1 million resulted in an operating margin of 21.8 percent, up 110 basis points from the prior year period. The increase in operating margin was primarily due to volume leverage, benefits from prior year restructuring initiatives and the inclusion in the prior year of a net $2.6 million charge related to the fair value inventory step-up and the reversal of a remaining contingent consideration. Operating income drove EBITDA of $146.6 million which was 26 percent of sales and covered interest expense by 13 times.

Net income was $83.8 million which resulted in EPS of $1.08, up 9 cents, or 9 percent, from the prior year period.

Cash from operations for the second quarter of $87.6 million led to free cash flow of $78.2 million, down 2 percent from the prior year period primarily due to the timing of income tax payments and higher working capital related to the timing of receivables. Cash from operations for the six months ended June 30, 2017 was $172.6 million which led to free cash flow of $153.0 million, up 8 percent from the comparable prior year period.

The Company repurchased 24 thousand shares of common stock for $2.2 million in the second quarter.

 
“Focused growth investments, strong execution, and improved market conditions drove solid results across all three segments. Operating margin was up 110 basis points which contributed to a 9 percent increase in EPS. Demand has continued to improve across the majority of our end-markets and I am pleased with 3 percent organic revenue growth, driven mainly by strength within FMT and HST. The 11 percent increase in orders was led by double digit organic order growth at HST along with high single digit organic order growth at FMT and FSDP. The continued strength in order activity generated an additional $12 million of backlog during the quarter.
 
We continue our commitment to fully fund investments in long-term organic growth opportunities. The growth we experienced in the first half of 2017 supports this investment philosophy as well as our segmentation strategy around our targeted and integrated growth businesses. Our overall capital deployment strategy has not changed as we will continue to pursue strategic M&A, fund shareholder dividends and opportunistically repurchase shares.
 
Based on the positive results from the first half of the year, combined with continued order strength, we are raising full year 2017 adjusted EPS guidance to $4.18 to $4.23, with third quarter EPS of $1.04 to $1.06. We are also increasing full year 2017 organic revenue growth expectations to approximately 5 percent, with 6 percent growth expected in the third quarter.”
 
Andrew K. Silvernail
Chairman and Chief Executive Officer
 

Second Quarter 2017 Segment Highlights

Fluid & Metering Technologies

  • Sales of $221.2 million were flat compared to the second quarter of 2016 (+4 percent organic, -3 percent divestitures and -1 percent foreign currency translation).
  • Operating income of $60.0 million resulted in an operating margin of 27.1 percent, a 270 basis point increase compared to the prior year period operating margin primarily due to volume leverage on organic growth, cost savings from prior year restructuring initiatives and lower amortization.
  • EBITDA of $65.6 million resulted in an EBITDA margin of 29.6 percent, a 190 basis point increase compared to the prior year period EBITDA margin.

Health & Science Technologies

  • Sales of $204.4 million reflected a 10 percent increase compared to the second quarter of 2016 (+6 percent organic, +6 percent acquisitions/divestitures and -2 percent foreign currency translation).
  • Operating income of $46.3 million resulted in an operating margin of 22.6 percent, a 60 basis point increase compared to the prior year period operating margin primarily due to higher volume and cost savings from prior year restructuring initiatives.
  • EBITDA of $57.4 million resulted in an EBITDA margin of 28.1 percent, a 30 basis point decrease compared to the prior year period EBITDA margin.

Fire & Safety/Diversified Products

  • Sales of $148.0 million reflected a 4 percent increase compared to the second quarter of 2016 (-1 percent organic, +7 percent acquisition and -2 percent foreign currency translation).
  • Operating income of $37.2 million resulted in an operating margin of 25.1 percent, an 80 basis point increase compared to the prior year period operating margin primarily due to the inclusion of a fair value inventory step-up charge in the prior year period, partially offset by the dilutive impact from prior year acquisitions.
  • EBITDA of $40.3 million resulted in an EBITDA margin of 27.2 percent, a 30 basis point increase compared to the prior year period EBITDA margin.

For the second quarter of 2017, Fluid & Metering Technologies contributed 38 percent of sales, 42 percent of operating income and 40 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, 26 percent of operating income and 25 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.
  • Adjusted operating margin is calculated as adjusted operating income divided by net sales.
  • Adjusted net income is calculated as net income plus restructuring expenses, net of the statutory tax expense or benefit.
  • EBITDA is calculated as net income plus interest expense plus provision for income taxes plus depreciation and amortization. We reconciled EBITDA to net income on a consolidated basis as we do not allocate consolidated interest expense or consolidated provision for income taxes to our segments.
  • Adjusted EBITDA is calculated as EBITDA plus restructuring expenses.
  • Free cash flow is calculated as cash flow from operating activities less capital expenditures.

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

    For the Quarter Ended     For the Six Months Ended
June 30, 2017 June 30, 2017
FMT   HST   FSDP   IDEX FMT   HST   FSDP   IDEX
Change in net sales 0%   10%   4%   4% 1%   8%   16%   7%
- Net impact from acquisitions/divestitures (3%) 6% 7% 3% (3%) 5% 18% 5%
- Impact from FX (1%) (2%) (2%) (2%) (1%) (2%) (2%) (2%)
Change in net organic sales 4% 6% (1%) 3% 5% 5% 0% 4%
 

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

  For the Quarter Ended June 30,
2017  

2016 (e)

FMT   HST   FSDP   Corporate   IDEX FMT   HST   FSDP   Corporate   IDEX
Reported operating income (loss) $ 60,029   $ 46,294   $ 37,197   $ (18,387 )   $ 125,133 $ 54,172   $ 41,108   $ 34,420   $ (15,877 )   $ 113,823
+Restructuring expenses   -     -     -     -     -     -     -     -     -     -  
Adjusted operating income (loss) $ 60,029   $ 46,294   $ 37,197   $ (18,387 ) $ 125,133   $ 54,172   $ 41,108   $ 34,420   $ (15,877 ) $ 113,823  
 
Net sales (eliminations) $ 221,182 $ 204,409 $ 147,983 $ (208 ) $ 573,366 $ 221,810 $ 186,568 $ 141,611 $ (293 ) $ 549,696
Operating margin 27.1 % 22.6 % 25.1 % n/m 21.8 % 24.4 % 22.0 % 24.3 % n/m 20.7 %
Adjusted operating margin 27.1 % 22.6 % 25.1 % n/m 21.8 % 24.4 % 22.0 % 24.3 % n/m 20.7 %
 
For the Six Months Ended June 30,
2017

2016 (e)

FMT   HST   FSDP   Corporate   IDEX FMT   HST   FSDP   Corporate   IDEX
Reported operating income (loss) $ 117,842 $ 88,532 $ 69,823 $ (35,393 ) $ 240,804 $ 105,875 $ 81,790 $ 60,074 $ (30,571 ) $ 217,168
+Restructuring expenses   1,566     3,028     73     130     4,797     -     -     -     -     -  
Adjusted operating income (loss) $ 119,408   $ 91,560   $ 69,896   $ (35,263 ) $ 245,601   $ 105,875   $ 81,790   $ 60,074   $ (30,571 ) $ 217,168  
 
Net sales (eliminations) $ 437,952 $ 404,088 $ 285,430 $ (552 ) $ 1,126,918 $ 433,653 $ 372,911 $ 246,229 $ (525 ) $ 1,052,268
Operating margin 26.9 % 21.9 % 24.5 % n/m 21.4 % 24.4 % 21.9 % 24.4 % n/m 20.6 %
Adjusted operating margin 27.3 % 22.7 % 24.5 % n/m 21.8 % 24.4 % 21.9 % 24.4 % n/m 20.6 %
 

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

        For the Quarter   For the Six Months
Ended June 30, Ended June 30,
2017   2016 2017   2016
Reported net income $ 83,844 $ 75,759 $ 159,743 $ 143,889
+Restructuring expenses - - 4,797 -
+Tax impact on restructuring expenses   -   -   (1,529 )   -
Adjusted net income $ 83,844 $ 75,759 $ 163,011   $ 143,889
 
Reported EPS $ 1.08 $ 0.99 $ 2.07 $ 1.87
+Restructuring expenses - - 0.06 -
+Tax impact on restructuring expenses   -   -   (0.02 )   -
Adjusted EPS $ 1.08 $ 0.99 $ 2.11   $ 1.87
 
Diluted weighted average shares 77,320 76,674 77,107 76,687
 

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

  For the Quarter Ended June 30,
2017  

2016 (e)

FMT   HST   FSDP   Corporate   IDEX FMT   HST   FSDP   Corporate   IDEX
Operating income (loss) $ 60,029   $ 46,294   $ 37,197   $ (18,387 )   $ 125,133 $ 54,172   $ 41,108   $ 34,420   $ (15,877 )   $ 113,823
- Other (income) expense - net 447 924 583 (1,582 ) 372 260 (774 ) (450 ) (63 ) (1,027 )
+ Depreciation and amortization   5,987     11,994     3,652     201     21,834     7,587     11,020     3,250     318     22,175  
EBITDA 65,569 57,364 40,266 (16,604 ) 146,595 61,499 52,902 38,120 (15,496 ) 137,025
- Interest expense 11,304 11,205
- Provision for income taxes 29,613 27,886
- Depreciation and amortization   21,834     22,175  
Net income $ 83,844   $ 75,759  
 
Net sales (eliminations) $ 221,182 $ 204,409 $ 147,983 $ (208 ) $ 573,366 $ 221,810 $ 186,568 $ 141,611 $ (293 ) $ 549,696
 
Operating margin 27.1 % 22.6 % 25.1 % n/m 21.8 % 24.4 % 22.0 % 24.3 % n/m 20.7 %
EBITDA margin 29.6 % 28.1 % 27.2 % n/m 25.6 % 27.7 % 28.4 % 26.9 % n/m 24.9 %
 
 
For the Six Months Ended June 30,
2017

2016 (e)

FMT   HST   FSDP   Corporate   IDEX FMT   HST   FSDP   Corporate   IDEX
Operating income (loss) $ 117,842 $ 88,532 $ 69,823 $ (35,393 ) $ 240,804 $ 105,875 $ 81,790 $ 60,074 $ (30,571 ) $ 217,168
- Other (income) expense - net 477 1,067 619 (2,099 ) 64 395 (1,164 ) (290 ) 76 (983 )
+ Depreciation and amortization   11,631     23,258     7,229     408     42,526     14,843     21,881     4,732     676     42,132  
EBITDA 128,996 110,723 76,433 (32,886 ) 283,266 120,323 104,835 65,096 (29,971 ) 260,283
- Interest expense 22,856 21,694
- Provision for income taxes 58,141 52,568
- Depreciation and amortization   42,526     42,132  
Net income $ 159,743   $ 143,889  
 
Net sales (eliminations) $ 437,952 $ 404,088 $ 285,430 $ (552 ) $ 1,126,918 $ 433,653 $ 372,911 $ 246,229 $ (525 ) $ 1,052,268
 
Operating margin 26.9 % 21.9 % 24.5 % n/m 21.4 % 24.4 % 21.9 % 24.4 % n/m 20.6 %
EBITDA margin 29.5 % 27.4 % 26.8 % n/m 25.1 % 27.7 % 28.1 % 26.4 % n/m 24.7 %
 

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

  For the Quarter Ended June 30,
2017  

2016 (e)

FMT   HST   FSDP   Corporate   IDEX FMT   HST   FSDP   Corporate   IDEX
EBITDA $ 65,569   $ 57,364   $ 40,266   $ (16,604 )   $ 146,595 $ 61,499   $ 52,902   $ 38,120   $ (15,496 )   $ 137,025
+Restructuring expenses   -     -     -     -     -     -     -     -     -     -  
Adjusted EBITDA $ 65,569   $ 57,364   $ 40,266   $ (16,604 ) $ 146,595   $ 61,499   $ 52,902   $ 38,120   $ (15,496 ) $ 137,025  
 
Adjusted EBITDA margin 29.6 % 28.1 % 27.2 % n/m 25.6 % 27.7 % 28.4 % 26.9 % n/m 24.9 %
 
 
For the Six Months Ended June 30,
2017

2016 (e)

FMT   HST   FSDP   Corporate   IDEX FMT   HST   FSDP   Corporate   IDEX
EBITDA $ 128,996 $ 110,723 $ 76,433 $ (32,886 ) $ 283,266 $ 120,323 $ 104,835 $ 65,096 $ (29,971 ) $ 260,283
+Restructuring expenses   1,566     3,028     73     130     4,797     -     -     -     -     -  
Adjusted EBITDA $ 130,562   $ 113,751   $ 76,506   $ (32,756 ) $ 288,063   $ 120,323   $ 104,835   $ 65,096   $ (29,971 ) $ 260,283  
 
Adjusted EBITDA margin 29.8 % 28.2 % 26.8 % n/m 25.6 % 27.7 % 28.1 % 26.4 % n/m 24.7 %
 

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

      For the Quarter Ended   For the Six Months Ended
June 30,   Mar 31, June 30,
2017   2016 2017 2017   2016
 
Cash flow from operating activities $ 87,601 $ 88,478 $ 84,979 $ 172,580 $ 158,843
- Capital expenditures   9,377   8,402   10,162   19,539   17,052
Free cash flow $ 78,224 $ 80,076 $ 74,817 $ 153,041 $ 141,791
 

Conference Call to be Broadcast over the Internet

IDEX will broadcast its second quarter earnings conference call over the Internet on Wednesday, July 26, 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 #13652252.

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 Six Months Ended
June 30, June 30,
      2017  

2016 (e)

  2017  

2016 (e)

 
Net sales $ 573,366 $ 549,696 $ 1,126,918 $ 1,052,268
Cost of sales       316,441     305,638       619,052     584,875  
Gross profit 256,925 244,058 507,866 467,393
Selling, general and administrative expenses 131,792 130,235 262,265 250,225
Restructuring expenses       -     -       4,797     -  
Operating income 125,133 113,823 240,804 217,168
Other (income) expense - net 372 (1,027 ) 64 (983 )
Interest expense       11,304     11,205       22,856     21,694  
Income before income taxes 113,457 103,645 217,884 196,457
Provision for income taxes       29,613     27,886       58,141     52,568  
Net income     $ 83,844   $ 75,759     $ 159,743   $ 143,889  
 
 
Earnings per Common Share (a):
 
Basic earnings per common share $ 1.10 $ 1.00 $ 2.09 $ 1.89
 
Diluted earnings per common share $ 1.08 $ 0.99 $ 2.07 $ 1.87
 
 
Share Data:
 
Basic weighted average common shares outstanding 76,220 75,690 76,167 75,719
 
Diluted weighted average common shares outstanding 77,320 76,674 77,107 76,687
 
 
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
June 30, December 31,
              2017   2016
 
Assets
Current assets
Cash and cash equivalents $ 218,361 $ 235,964
Receivables - net 307,755 272,813
Inventories 264,545 252,859
Other current assets               70,757     61,085  
Total current assets 861,418 822,721
Property, plant and equipment - net 254,230 247,816
Goodwill and intangible assets 2,092,179 2,068,096
Other noncurrent assets               16,338     16,311  
Total assets             $ 3,224,165   $ 3,154,944  
 
Liabilities and shareholders' equity
Current liabilities
Trade accounts payable $ 139,377 $ 128,933
Accrued expenses 145,824 152,852
Short-term borrowings 350 1,046
Dividends payable               28,354     26,327  
Total current liabilities 313,905 309,158
Long-term borrowings 888,495 1,014,235
Other noncurrent liabilities               294,754     287,657  
Total liabilities 1,497,154 1,611,050
Shareholders' equity               1,727,011     1,543,894  
Total liabilities and shareholders' equity             $ 3,224,165   $ 3,154,944  
 
 
IDEX CORPORATION
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
 
Six Months Ended June 30,
  2017   2016
 
Cash flows from operating activities
Net income $ 159,743 $ 143,889
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 18,633 18,986
Amortization of intangible assets 23,893 23,146
Amortization of debt issuance costs 659 758
Share-based compensation expense 12,398 11,603
Deferred income taxes 2,414 3,669
Non-cash interest expense associated with forward starting swaps 3,323 3,443
Changes in (net of the effect from acquisitions):
Receivables (31,110 ) (22,625 )
Inventories (4,796 ) 11,386
Other current assets (8,446 ) (17,233 )
Trade accounts payable 6,469 (3,367 )
Accrued expenses (9,799 ) (12,675 )
Other — net   (801 )     (2,137 )
Net cash flows provided by operating activities 172,580 158,843
Cash flows from investing activities
Purchases of property, plant and equipment (19,539 ) (17,052 )
Acquisition of businesses, net of cash acquired - (221,556 )
Other — net   96       27  
Net cash flows used in investing activities (19,443 ) (238,581 )
Cash flows from financing activities
Borrowings under revolving facilities 33,000 280,391
Proceeds from 3.20% Senior Notes - 100,000
Proceeds from 3.37% Senior Notes - 100,000
Payments under revolving facilities (166,297 ) (266,203 )
Debt issuance costs - (92 )
Dividends paid (54,572 ) (51,430 )
Proceeds from stock option exercises 12,984 16,934
Purchase of common stock (9,799 ) (55,971 )
Unvested shares surrendered for tax withholding (5,814 ) (4,830 )
Settlement of foreign exchange contracts   4,406       -  
Net cash flows provided by (used in) financing activities (186,092 ) 118,799
Effect of exchange rate changes on cash and cash equivalents   15,352       (5,591 )
Net increase (decrease) (17,603 ) 33,470
Cash and cash equivalents at beginning of year   235,964       328,018  
Cash and cash equivalents at end of period $ 218,361     $ 361,488  
 
 
IDEX CORPORATION
Company and Segment Financial Information - Reported
(dollars in thousands)
(unaudited)
       
 
Quarter Ended Six Months Ended

June 30, (b)

June 30, (b)
      2017  

2016 (e)

  2017  

2016 (e)

 
 
Fluid & Metering Technologies
Net sales $ 221,182 $ 221,810 $ 437,952 $ 433,653
Operating income (c) 60,029 54,172 117,842 105,875
Operating margin 27.1 % 24.4 % 26.9 % 24.4 %
EBITDA $ 65,569 $ 61,499 $ 128,996 $ 120,323
EBITDA margin 29.6 % 27.7 % 29.5 % 27.7 %
Depreciation and amortization $ 5,987 $ 7,587 $ 11,631 $ 14,843
Capital expenditures 2,829 4,323 8,215 7,613
 
Health & Science Technologies
Net sales $ 204,409 $ 186,568 $ 404,088 $ 372,911
Operating income (c) 46,294 41,108 88,532 81,790
Operating margin 22.6 % 22.0 % 21.9 % 21.9 %
EBITDA $ 57,364 $ 52,902 $ 110,723 $ 104,835
EBITDA margin 28.1 % 28.4 % 27.4 % 28.1 %
Depreciation and amortization $ 11,994 $ 11,020 $ 23,258 $ 21,881
Capital expenditures 4,901 2,868 8,474 7,005
 
Fire & Safety/Diversified Products
Net sales $ 147,983 $ 141,611 $ 285,430 $ 246,229
Operating income (c) 37,197 34,420 69,823 60,074
Operating margin 25.1 % 24.3 % 24.5 % 24.4 %
EBITDA $ 40,266 $ 38,120 $ 76,433 $ 65,096
EBITDA margin 27.2 % 26.9 % 26.8 % 26.4 %
Depreciation and amortization $ 3,652 $ 3,250 $ 7,229 $ 4,732
Capital expenditures 1,477 1,164 2,672 2,271
 
Corporate Office and Eliminations
Intersegment sales eliminations $ (208 ) $ (293 ) $ (552 ) $ (525 )
Operating loss (c) (18,387 ) (15,877 ) (35,393 ) (30,571 )
EBITDA (16,604 ) (15,496 ) (32,886 ) (29,971 )
Depreciation and amortization 201 318 408 676
Capital expenditures 170 47 178 163
 
Company
Net sales $ 573,366 $ 549,696 $ 1,126,918 $ 1,052,268
Operating income 125,133 113,823 240,804 217,168
Operating margin 21.8 % 20.7 % 21.4 % 20.6 %
EBITDA $ 146,595 $ 137,025 $ 283,266 $ 260,283
EBITDA margin 25.6 % 24.9 % 25.1 % 24.7 %
Depreciation and amortization (d) $ 21,834 $ 22,175 $ 42,526 $ 42,132
Capital expenditures 9,377 8,402 19,539 17,052
 
                           
 
(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 six 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 six 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