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IDEX Reports Record Third Quarter Results

IDEX Corporation (NYSE: IEX) today announced its financial results for the three month period ended September 30, 2021.

Third Quarter 2021 Highlights

  • Record orders of $774.2 million up 36 percent overall and 28 percent organically compared to Q3 2020
  • Record sales of $712.0 million up 23 percent overall and 15 percent organically compared to Q3 2020
  • Reported operating margin was 22.6 percent with adjusted operating margin of 24.3 percent
  • Record reported EPS was $1.51 with record adjusted EPS of $1.63
  • Full year adjusted EPS guidance narrowed to $6.30 to $6.33 compared to prior guidance of $6.26 to $6.36

Third Quarter 2021

Orders of $774.2 million were up 36 percent compared with the prior year period (+28 percent organic, +7 percent acquisitions/divestitures and +1 percent foreign currency translation).

Sales of $712.0 million were up 23 percent compared with the prior year period (+15 percent organic, +7 percent acquisitions/divestitures and +1 percent foreign currency translation).

Gross margin of 43.8 percent was up 50 basis points compared with the prior year period primarily as a result of higher volume and price capture, partially offset by inflation and supply chain constraints. Adjusted gross margin, which excludes a $9.1 million pre-tax fair value inventory step-up charge related to the Airtech acquisition, was 45.0 percent, up 170 basis points compared with the adjusted prior year period.

Operating income of $161.2 million resulted in an operating margin of 22.6 percent, which was flat compared with the prior year period. Adjusted operating income, which primarily excluded a $9.1 million pre-tax fair value inventory step-up charge and $3.2 million of restructuring expenses and asset impairments, was $173.1 million with an adjusted operating margin of 24.3 percent, up 120 basis points compared with the adjusted prior year period.

Provision for income taxes of $35.3 million in the third quarter of 2021 resulted in an effective tax rate (ETR) of 23.4 percent, which was higher than the prior year period ETR of 14.4 percent primarily due to the finalization of tax regulations enacted in the third quarter of 2020 as well as a decrease in the excess tax benefit related to share-based compensation in the current period.

Net income attributable to IDEX was $115.7 million, which resulted in EPS attributable to IDEX of $1.51. Adjusted EPS attributable to IDEX was $1.63, an increase of 23 cents, or 16.4 percent, from the adjusted prior year period and excluded the impacts of the fair value inventory step-up charge and restructuring expenses and asset impairments discussed above, both net of related tax benefits. EBITDA of $187.5 million was 26.3 percent of sales and covered interest expense by almost 20 times. Adjusted EBITDA of $199.4 million was 28.0 percent of sales and covered interest expense by 21 times.

Cash from operations of $156.6 million was up 2 percent from the prior year period primarily due to higher earnings, partially offset by changes in working capital and was 135 percent of net income attributable to IDEX. Free cash flow of $141.7 million was up 5 percent from the prior year period and was 113 percent of adjusted net income attributable to IDEX.

“IDEX teams continued to navigate a tremendously challenging supply chain environment and achieved strong operating results in the third quarter. We saw broad-based strength across our portfolio, resulting in record orders and sales of $774 million and $712 million, respectively. Today's global challenges will increasingly drive growth towards problem solvers like IDEX, but in the short term, our focus remains on overcoming the macro constraints that inhibit customer satisfaction while staying committed to investments needed to thrive in the future.

 

 

Our 80/20 principles serve us well by providing a framework to identify how to best support our customers in a difficult environment. I want to thank all IDEX team members across the globe who have tirelessly worked through these challenges and contributed to our success.

 

 

Our price capture continues to outpace material inflation and drive sequential improvements in gross margin. Despite targeted increases in discretionary costs and continued investment in the business, we achieved solid flow through, resulting in an adjusted operating margin of 24.3 percent and a record adjusted EPS of $1.63.

 

 

The acquisitions we made in the first half of the year are performing extremely well. ABEL Pumps is fully integrated and performing above expectations. Airtech is ahead of our integration timeline and is delivering on its growth potential. Our expanded corporate strategy and development team continues to actively work our M&A funnel as we look to deploy more capital. The balance sheet remains strong, with ample capital to support organic investments in business innovations and strategic M&A.

 

 

As we look to the fourth quarter, we expect organic sales growth of 9 to 10 percent with EPS in the range of $1.55 to $1.58. This assumes similar output to our third quarter results, coupled with a step up in targeted investments and the potential for year-end logistics challenges. For the full year, we are maintaining our projection of 11 to 12 percent organic sales growth and narrowing our adjusted EPS range to $6.30 to $6.33.”

 

 

 

Eric D. Ashleman

 

Chief Executive Officer and President

Third Quarter 2021 Segment Highlights

Fluid & Metering Technologies

  • Sales of $251.3 million reflected a 14 percent increase compared to the third quarter of 2020 (+7 percent organic, +6 percent acquisitions and +1 percent foreign currency translation).
  • Operating income of $69.0 million resulted in an operating margin of 27.5 percent, which was up 100 basis points compared with the prior year period primarily due to higher volume, price capture and favorable mix, partially offset by inflation, supply chain constraints and targeted increases in discretionary spending. Adjusted operating income, which excludes $2.0 million of restructuring expenses and asset impairments, was $71.0 million with an adjusted operating margin of 28.2 percent, a 150 basis point increase compared to the prior year period.
  • EBITDA of $76.4 million resulted in an EBITDA margin of 30.4 percent. Adjusted EBITDA of $78.3 million resulted in an adjusted EBITDA margin of 31.2 percent, a 90 basis point increase compared to the prior year period.

Health & Science Technologies

  • Sales of $302.3 million reflected a 37 percent increase compared to the third quarter of 2020 (+24 percent organic, +12 percent acquisitions/divestitures and +1 percent foreign currency translation).
  • Operating income of $70.4 million resulted in an operating margin of 23.3 percent, which was up 70 basis points compared with the prior year period primarily due to higher volume, price capture and favorable mix, partially offset by inflation, supply chain constraints, targeted increases in discretionary spending and the fair value inventory step-up charge related to the Airtech acquisition. Adjusted operating income, which excludes a $9.1 million pre-tax fair value inventory step-up charge related to the Airtech acquisition and $0.6 million of restructuring expenses and asset impairments, was $80.1 million with an adjusted operating margin of 26.5 percent, a 340 basis point increase compared to the prior year period.
  • EBITDA of $85.9 million resulted in an EBITDA margin of 28.4 percent. Adjusted EBITDA of $95.7 million resulted in an adjusted EBITDA margin of 31.6 percent, a 390 basis point increase compared to the prior year period.

Fire & Safety/Diversified Products

  • Sales of $159.1 million reflected a 13 percent increase compared to the third quarter of 2020 (+12 percent organic and +1 percent foreign currency translation).
  • Operating income of $39.1 million resulted in an operating margin of 24.6 percent, which was down 170 basis points compared with the prior year period primarily as a result of inflation, supply chain constraints and targeted increases in discretionary spending. Price capture and volume leverage offsets faced stronger headwinds within the segment due to higher direct OEM exposure and higher levels of material intensity due to vertical integration. Adjusted operating income was $39.1 million with an adjusted operating margin of 24.6 percent, a 260 basis point decrease compared to the prior year period.
  • EBITDA of $42.9 million resulted in an EBITDA margin of 26.9 percent. Adjusted EBITDA of $42.8 million resulted in an adjusted EBITDA margin of 26.9 percent, a 280 basis point decrease compared to the prior year period.

Corporate Costs

Corporate costs increased to $17.3 million in the third quarter of 2021 from $14.2 million in the third quarter of 2020 primarily as a result of higher variable compensation and employee-related costs.

Non-GAAP Measures of Financial Performance

The Company prepares its public financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP). The Company supplements certain GAAP financial performance metrics with non-GAAP financial performance metrics. Management believes these non-GAAP financial performance metrics provide investors with greater insight, transparency and a more comprehensive understanding of the financial information used by management in its financial and operational decision-making because certain of these adjusted metrics exclude items not reflective of ongoing operations, such as fair value inventory step-up charges, restructuring expenses and asset impairments, the loss on early debt redemption, the noncash loss related to the termination of the U.S. pension plan and the impact of the settlement for a Corporate transaction indemnity. Reconciliations of non-GAAP financial performance metrics to their most comparable 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 GAAP. The Company does not provide forward-looking guidance for EPS on a GAAP basis because it is unable to predict certain items contained in the GAAP measure without unreasonable efforts. These items may include restructuring expenses and asset impairments, special tax items, acquisition-related transaction costs and certain other unusual adjustments. There were no adjustments to 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 prior to divestiture and the impact of foreign currency translation.
  • Adjusted gross profit is calculated as gross profit plus fair value inventory step-up charges.
  • Adjusted gross margin is calculated as adjusted gross profit divided by net sales.
  • Adjusted operating income is calculated as operating income plus fair value inventory step-up charges plus restructuring expenses and asset impairments plus the impact of the settlement for a Corporate transaction indemnity.
  • Adjusted operating margin is calculated as adjusted operating income divided by net sales.
  • Adjusted net income is calculated as net income plus fair value inventory step-up charges plus restructuring expenses and asset impairments plus the impact of the settlement for a Corporate transaction indemnity plus the loss on early debt redemption plus the noncash loss related to the termination of the U.S. pension plan, net of the statutory tax expense or benefit.
  • Adjusted EPS is calculated as adjusted net income divided by the diluted weighted average shares outstanding.
  • EBITDA is calculated as net income plus interest expense plus provision for income taxes plus depreciation and amortization. We reconcile 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.
  • EBITDA interest coverage is calculated as EBITDA divided by consolidated interest expense.
  • Adjusted EBITDA is calculated as EBITDA plus fair value inventory step-up charges plus restructuring expenses and asset impairments plus the impact of the settlement for a Corporate transaction indemnity plus the loss on early debt redemption plus the noncash loss related to the termination of the U.S. pension plan.
  • Adjusted EBITDA margin is calculated as adjusted EBITDA divided by net sales.
  • Adjusted EBITDA interest coverage is calculated as Adjusted EBITDA divided by consolidated interest expense.
  • 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

 

Three Months Ended September 30, 2021

 

Nine Months Ended September 30, 2021

 

FMT

 

HST

 

FSDP

 

IDEX

 

FMT

 

HST

 

FSDP

 

IDEX

Change in net sales

14

%

 

37

%

 

13

%

 

23

%

 

12

%

 

25

%

 

16

%

 

18

%

- Net impact from acquisitions/divestitures

6

%

 

12

%

 

%

 

7

%

 

4

%

 

4

%

 

%

 

3

%

- Impact from foreign currency

1

%

 

1

%

 

1

%

 

1

%

 

2

%

 

3

%

 

3

%

 

3

%

Change in organic net sales

7

%

 

24

%

 

12

%

 

15

%

 

6

%

 

18

%

 

13

%

 

12

%

 

 

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

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2021

 

2020

 

2021

 

2020

Gross profit

$

311,569

 

 

$

251,500

 

 

$

910,264

 

 

$

758,256

 

+ Fair value inventory step-up charges

9,100

 

 

 

 

11,586

 

 

4,107

 

Adjusted gross profit

$

320,669

 

 

$

251,500

 

 

$

921,850

 

 

$

762,363

 

 

 

 

 

 

 

 

 

Net sales

$

712,019

 

 

$

581,113

 

 

$

2,050,002

 

 

$

1,736,824

 

 

 

 

 

 

 

 

 

Gross margin

43.8

%

 

43.3

%

 

44.4

%

 

43.7

%

Adjusted gross margin

45.0

%

 

43.3

%

 

45.0

%

 

43.9

%

 

 

Table 3: Reconciliations of Reported-to-Adjusted Operating Income and Margin (dollars in thousands)

 

 

Three Months Ended September 30,

 

2021

 

2020

 

FMT

 

HST

 

FSDP

 

Corporate

 

IDEX

 

FMT

 

HST

 

FSDP

 

Corporate

 

IDEX

Reported operating income (loss)

$

69,020

 

 

$

70,374

 

 

$

39,126

 

 

$

(17,335

)

 

$

161,185

 

 

$

58,402

 

 

$

49,912

 

 

$

37,103

 

 

$

(14,204

)

 

$

131,213

 

+ Restructuring expenses and asset impairments

 

1,934

 

 

 

626

 

 

 

(55

)

 

 

699

 

 

 

3,204

 

 

 

585

 

 

 

978

 

 

 

1,249

 

 

 

105

 

 

 

2,917

 

+ Fair value inventory step-up charges

 

 

 

 

9,100

 

 

 

 

 

 

 

 

 

9,100

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

+ Corporate transaction indemnity

 

 

 

 

 

 

 

 

 

 

(400

)

 

 

(400

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating income (loss)

$

70,954

 

 

$

80,100

 

 

$

39,071

 

 

$

(17,036

)

 

$

173,089

 

 

$

58,987

 

 

$

50,890

 

 

$

38,352

 

 

$

(14,099

)

 

$

134,130

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales (eliminations)

$

251,297

 

 

$

302,287

 

 

$

159,106

 

 

$

(671

)

 

$

712,019

 

 

$

220,747

 

 

$

220,378

 

 

$

140,896

 

 

$

(908

)

 

$

581,113

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported operating margin

 

27.5

%

 

 

23.3

%

 

 

24.6

%

 

 

n/m

 

 

 

22.6

%

 

 

26.5

%

 

 

22.6

%

 

 

26.3

%

 

 

n/m

 

 

 

22.6

%

Adjusted operating margin

 

28.2

%

 

 

26.5

%

 

 

24.6

%

 

 

n/m

 

 

 

24.3

%

 

 

26.7

%

 

 

23.1

%

 

 

27.2

%

 

 

n/m

 

 

 

23.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30,

 

2021

 

2020

 

FMT

 

HST

 

FSDP

 

Corporate

 

IDEX

 

FMT

 

HST

 

FSDP

 

Corporate

 

IDEX

Reported operating income (loss)

$

195,384

 

 

$

212,987

 

 

$

126,483

 

 

$

(59,866

)

 

$

474,988

 

 

$

176,111

 

 

$

150,562

 

 

$

103,977

 

 

$

(48,902

)

 

$

381,748

 

+ Restructuring expenses and asset impairments

 

4,787

 

 

 

1,693

 

 

 

161

 

 

 

1,927

 

 

 

8,568

 

 

 

2,433

 

 

 

2,162

 

 

 

1,890

 

 

 

273

 

 

 

6,758

 

+ Fair value inventory step-up charges

 

2,486

 

 

 

9,100

 

 

 

 

 

 

 

 

 

11,586

 

 

 

4,107

 

 

 

 

 

 

 

 

 

 

 

 

4,107

 

+ Corporate transaction indemnity

 

 

 

 

 

 

 

 

 

 

3,500

 

 

 

3,500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating income (loss)

$

202,657

 

 

$

223,780

 

 

$

126,644

 

 

$

(54,439

)

 

$

498,642

 

 

$

182,651

 

 

$

152,724

 

 

$

105,867

 

 

$

(48,629

)

 

$

392,613

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales (eliminations)

$

745,939

 

 

$

827,668

 

 

$

479,402

 

 

$

(3,007

)

 

$

2,050,002

 

 

$

666,720

 

 

$

660,105

 

 

$

412,296

 

 

$

(2,297

)

 

$

1,736,824

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported operating margin

 

26.2

%

 

 

25.7

%

 

 

26.4

%

 

 

n/m

 

 

 

23.2

%

 

 

26.4

%

 

 

22.8

%

 

 

25.2

%

 

 

n/m

 

 

 

22.0

%

Adjusted operating margin

 

27.2

%

 

 

27.0

%

 

 

26.4

%

 

 

n/m

 

 

 

24.3

%

 

 

27.4

%

 

 

23.1

%

 

 

25.7

%

 

 

n/m

 

 

 

22.6

%

 

 

Table 4: Reconciliations of Reported-to-Adjusted Net Income and EPS (in thousands, except EPS)

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2021

 

2020

 

2021

 

2020

Reported net income attributable to IDEX

$

115,742

 

 

$

103,848

 

 

$

330,645

 

 

$

276,710

 

+ Restructuring expenses and asset impairments

3,204

 

 

2,917

 

 

8,568

 

 

6,758

 

+ Tax impact on restructuring expenses and asset impairments

(771

)

 

(703

)

 

(2,060

)

 

(1,540

)

+ Fair value inventory step-up charges

9,100

 

 

 

 

11,586

 

 

4,107

 

+ Tax impact on fair value inventory step-up charges

(1,961

)

 

 

 

(2,707

)

 

(932

)

+ Loss on early debt redemption

 

 

 

 

8,561

 

 

8,421

 

+ Tax impact on loss on early debt redemption

 

 

 

 

(1,841

)

 

(1,912

)

+ Termination of the U.S. pension plan

 

 

 

 

9,688

 

 

 

+ Tax impact on termination of the U.S. pension plan

 

 

 

 

(2,083

)

 

 

+ Corporate transaction indemnity

(400

)

 

 

 

3,500

 

 

 

+ Tax impact on Corporate transaction indemnity

85

 

 

 

 

(754

)

 

 

Adjusted net income attributable to IDEX

$

124,999

 

 

$

106,062

 

 

$

363,103

 

 

$

291,612

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2021

 

2020

 

2021

 

2020

Reported diluted EPS attributable to IDEX

$

1.51

 

 

$

1.37

 

 

$

4.33

 

 

$

3.64

 

+ Restructuring expenses and asset impairments

0.04

 

 

0.04

 

 

0.11

 

 

0.09

 

+ Tax impact on restructuring expenses and asset impairments

(0.01

)

 

(0.01

)

 

(0.03

)

 

(0.02

)

+ Fair value inventory step-up charges

0.12

 

 

 

 

0.15

 

 

0.05

 

+ Tax impact on fair value inventory step-up charges

(0.03

)

 

 

 

(0.04

)

 

(0.01

)

+ Loss on early debt redemption

 

 

 

 

0.11

 

 

0.11

 

+ Tax impact on loss on early debt redemption

 

 

 

 

(0.02

)

 

(0.02

)

+ Termination of the U.S. pension plan

 

 

 

 

0.13

 

 

 

+ Tax impact on termination of the U.S. pension plan

 

 

 

 

(0.03

)

 

 

+ Corporate transaction indemnity

 

 

 

 

0.05

 

 

 

+ Tax impact on Corporate transaction indemnity

 

 

 

 

(0.01

)

 

 

Adjusted diluted EPS attributable to IDEX

$

1.63

 

 

$

1.40

 

 

$

4.75

 

 

$

3.84

 

 

 

 

 

 

 

 

 

Diluted weighted average shares outstanding

76,452

 

 

75,960

 

 

76,408

 

 

76,119

 

 

 

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

 

 

Three Months Ended September 30,

 

2021

 

2020

 

FMT

 

HST

 

FSDP

 

Corporate

 

IDEX

 

FMT

 

HST

 

FSDP

 

Corporate

 

IDEX

Reported operating income (loss)

$

69,020

 

 

$

70,374

 

 

$

39,126

 

 

$

(17,335

)

 

$

161,185

 

 

$

58,402

 

 

$

49,912

 

 

$

37,103

 

 

$

(14,204

)

 

$

131,213

 

- Other expense (income) - net

 

384

 

 

 

(236

)

 

 

50

 

 

 

432

 

 

 

630

 

 

 

(719

)

 

 

(32

)

 

 

340

 

 

 

(293

)

 

 

(704

)

+ Depreciation and amortization

 

7,737

 

 

 

15,335

 

 

 

3,787

 

 

 

110

 

 

 

26,969

 

 

 

7,163

 

 

 

10,230

 

 

 

3,854

 

 

 

104

 

 

 

21,351

 

EBITDA

 

76,373

 

 

 

85,945

 

 

 

42,863

 

 

 

(17,657

)

 

 

187,524

 

 

 

66,284

 

 

 

60,174

 

 

 

40,617

 

 

 

(13,807

)

 

 

153,268

 

- Interest expense

 

 

 

 

 

 

 

 

 

9,498

 

 

 

 

 

 

 

 

 

 

 

10,642

 

- Provision for income taxes

 

 

 

 

 

 

 

 

 

35,343

 

 

 

 

 

 

 

 

 

 

 

17,427

 

- Depreciation and amortization

 

 

 

 

 

 

 

 

 

26,969

 

 

 

 

 

 

 

 

 

 

 

21,351

 

Reported net income

 

 

 

 

 

 

 

 

$

115,714

 

 

 

 

 

 

 

 

 

 

$

103,848

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales (eliminations)

$

251,297

 

 

$

302,287

 

 

$

159,106

 

 

$

(671

)

 

$

712,019

 

 

$

220,747

 

 

$

220,378

 

 

$

140,896

 

 

$

(908

)

 

$

581,113

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported operating margin

 

27.5

%

 

 

23.3

%

 

 

24.6

%

 

 

n/m

 

 

 

22.6

%

 

 

26.5

%

 

 

22.6

%

 

 

26.3

%

 

 

n/m

 

 

 

22.6

%

EBITDA margin

 

30.4

%

 

 

28.4

%

 

 

26.9

%

 

 

n/m

 

 

 

26.3

%

 

 

30.0

%

 

 

27.3

%

 

 

28.8

%

 

 

n/m

 

 

 

26.4

%

EBITDA interest coverage

 

 

 

 

 

 

 

 

 

19.7

 

 

 

 

 

 

 

 

 

 

 

14.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30,

 

2021

 

2020

 

FMT

 

HST

 

FSDP

 

Corporate

 

IDEX

 

FMT

 

HST

 

FSDP

 

Corporate

 

IDEX

Reported operating income (loss)

$

195,384

 

 

$

212,987

 

 

$

126,483

 

 

$

(59,866

)

 

$

474,988

 

 

$

176,111

 

 

$

150,562

 

 

$

103,977

 

 

$

(48,902

)

 

$

381,748

 

- Other expense (income) - net

 

5,968

 

 

 

(290

)

 

 

1,833

 

 

 

9,446

 

 

 

16,957

 

 

 

(35

)

 

 

(91

)

 

 

148

 

 

 

7,299

 

 

 

7,321

 

+ Depreciation and amortization

 

22,743

 

 

 

38,382

 

 

 

11,510

 

 

 

327

 

 

 

72,962

 

 

 

19,370

 

 

 

30,806

 

 

 

11,409

 

 

 

389

 

 

 

61,974

 

EBITDA

 

212,159

 

 

 

251,659

 

 

 

136,160

 

 

 

(68,985

)

 

 

530,993

 

 

 

195,516

 

 

 

181,459

 

 

 

115,238

 

 

 

(55,812

)

 

 

436,401

 

- Interest expense

 

 

 

 

 

 

 

 

 

31,479

 

 

 

 

 

 

 

 

 

 

 

33,958

 

- Provision for income taxes

 

 

 

 

 

 

 

 

 

95,987

 

 

 

 

 

 

 

 

 

 

 

63,759

 

- Depreciation and amortization

 

 

 

 

 

 

 

 

 

72,962

 

 

 

 

 

 

 

 

 

 

 

61,974

 

Reported net income

 

 

 

 

 

 

 

 

$

330,565

 

 

 

 

 

 

 

 

 

 

$

276,710

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales (eliminations)

$

745,939

 

 

$

827,668

 

 

$

479,402

 

 

$

(3,007

)

 

$

2,050,002

 

 

$

666,720

 

 

$

660,105

 

 

$

412,296

 

 

$

(2,297

)

 

$

1,736,824

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported operating margin

 

26.2

%

 

 

25.7

%

 

 

26.4

%

 

 

n/m

 

 

 

23.2

%

 

 

26.4

%

 

 

22.8

%

 

 

25.2

%

 

 

n/m

 

 

 

22.0

%

EBITDA margin

 

28.4

%

 

 

30.4

%

 

 

28.4

%

 

 

n/m

 

 

 

25.9

%

 

 

29.3

%

 

 

27.5

%

 

 

28.0

%

 

 

n/m

 

 

 

25.1

%

EBITDA interest coverage

 

 

 

 

 

 

 

 

 

16.9

 

 

 

 

 

 

 

 

 

 

 

12.9

 

 

 

Table 6 : Reconciliations of EBITDA to Adjusted EBITDA (dollars in thousands)

 

 

Three Months Ended September 30,

 

2021

 

2020

 

FMT

 

HST

 

FSDP

 

Corporate

 

IDEX

 

FMT

 

HST

 

FSDP

 

Corporate

 

IDEX

EBITDA(1)

$

76,373

 

 

$

85,945

 

 

$

42,863

 

 

$

(17,657

)

 

$

187,524

 

 

$

66,284

 

 

$

60,174

 

 

$

40,617

 

 

$

(13,807

)

 

$

153,268

 

+ Restructuring expenses and asset impairments

 

1,934

 

 

 

626

 

 

 

(55

)

 

 

699

 

 

 

3,204

 

 

 

585

 

 

 

978

 

 

 

1,249

 

 

 

105

 

 

 

2,917

 

+ Fair value inventory step-up charges

 

 

 

 

9,100

 

 

 

 

 

 

 

 

 

9,100

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

+ Corporate transaction indemnity

 

 

 

 

 

 

 

 

 

 

(400

)

 

 

(400

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

$

78,307

 

 

$

95,671

 

 

$

42,808

 

 

$

(17,358

)

 

$

199,428

 

 

$

66,869

 

 

$

61,152

 

 

$

41,866

 

 

$

(13,702

)

 

$

156,185

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA margin

 

31.2

%

 

 

31.6

%

 

 

26.9

%

 

 

n/m

 

 

 

28.0

%

 

 

30.3

%

 

 

27.7

%

 

 

29.7

%

 

 

n/m

 

 

 

26.9

%

Adjusted EBITDA interest coverage

 

 

 

 

 

 

 

 

 

21.0

 

 

 

 

 

 

 

 

 

 

 

14.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30,

 

2021

 

2020

 

FMT

 

HST

 

FSDP

 

Corporate

 

IDEX

 

FMT

 

HST

 

FSDP

 

Corporate

 

IDEX

EBITDA(1)

$

212,159

 

 

$

251,659

 

 

$

136,160

 

 

$

(68,985

)

 

$

530,993

 

 

$

195,516

 

 

$

181,459

 

 

$

115,238

 

 

$

(55,812

)

 

$

436,401

 

+ Restructuring expenses and asset impairments

 

4,787

 

 

 

1,693

 

 

 

161

 

 

 

1,927

 

 

 

8,568

 

 

 

2,433

 

 

 

2,162

 

 

 

1,890

 

 

 

273

 

 

 

6,758

 

+ Fair value inventory step-up charges

 

2,486

 

 

 

9,100

 

 

 

 

 

 

 

 

 

11,586

 

 

 

4,107

 

 

 

 

 

 

 

 

 

 

 

 

4,107

 

+ Loss on early debt redemption

 

 

 

 

 

 

 

 

 

 

8,561

 

 

 

8,561

 

 

 

 

 

 

 

 

 

 

 

 

8,421

 

 

 

8,421

 

+ Termination of the U.S. pension plan

 

6,293

 

 

 

 

 

 

1,782

 

 

 

1,613

 

 

 

9,688

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

+ Corporate transaction indemnity

 

 

 

 

 

 

 

 

 

 

3,500

 

 

 

3,500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

$

225,725

 

 

$

262,452

 

 

$

138,103

 

 

$

(53,384

)

 

$

572,896

 

 

$

202,056

 

 

$

183,621

 

 

$

117,128

 

 

$

(47,118

)

 

$

455,687

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA margin

 

30.3

%

 

 

31.7

%

 

 

28.8

%

 

 

n/m

 

 

 

27.9

%

 

 

30.3

%

 

 

27.8

%

 

 

28.4

%

 

 

n/m

 

 

 

26.2

%

Adjusted EBITDA interest coverage

 

 

 

 

 

 

 

 

 

18.2

 

 

 

 

 

 

 

 

 

 

 

13.4

 

(1) EBITDA, a non-GAAP financial measure, is reconciled to net income, its most directly comparable GAAP financial measure, immediately above in Table 5.

 

 

Table 7: Reconciliations of Cash Flows from Operating Activities to Free Cash Flow (in thousands)

 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

June 30,

 

September 30,

 

2021

 

2020

 

2021

 

2021

 

2020

 

Cash flows from operating activities

$

156,633

 

 

$

153,686

 

 

$

136,272

 

 

$

402,229

 

 

$

407,899

 

- Capital expenditures

14,894

 

 

18,353

 

 

15,984

 

 

45,487

 

 

39,438

 

Free cash flow

$

141,739

 

 

$

135,333

 

 

$

120,288

 

 

$

356,742

 

 

$

368,461

 

Conference Call to be Broadcast over the Internet

IDEX will broadcast its third quarter earnings conference call over the Internet on Wednesday, October 27, 2021 at 9:30 a.m. CT. Chief Executive Officer and President Eric Ashleman 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 #13712091.

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, the Company’s expected organic sales growth and expected earnings per share, and the assumptions underlying these expectations, plant and equipment capacity for future growth, anticipated future acquisition behavior, availability of cash and financing alternatives and the anticipated benefits of the Company’s acquisitions of ABEL Pumps and Airtech, and are indicated by words or phrases such as “anticipates,” “estimates,” “plans,” “guidance,” “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: the duration of the COVID-19 pandemic and the continuing effects of the COVID-19 pandemic (including the emergence of variant strains) on our ability to operate our business and facilities, on our customers, on supply chains and on the U.S. and global economy generally; 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; 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; supply chain backlogs, including risks affecting component availability, labor inefficiencies, and freight logistical challenges; 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 and the Company's subsequent quarterly reports filed with the SEC as well as 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 (NYSE: IEX) is a company that has undoubtedly touched your life in some way. In fact, IDEX businesses make thousands of products that are mission-critical components in everyday activities. Chances are the car you’re driving has a BAND-IT® clamp holding your side airbag safely in place. If you were ever in a car accident, a Hurst Jaws of Life® rescue tool may have saved your life. If you or a family member is battling cancer, your doctor may have tested your DNA in a quest to find the best targeted medicine for you. It’s likely your DNA test was run on equipment that contains components made by our IDEX Health & Science team. Founded in 1988 with three small, entrepreneurial manufacturing companies, we’re proud to say that we now call over 40 diverse businesses around the world part of the IDEX family. With more than 7,000 employees and manufacturing operations in more than 20 countries, IDEX is a high-performing, global company with nearly $2.5 billion in sales, committed to making trusted solutions that improve lives. IDEX shares are traded on the New York 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)

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2021

 

2020

 

2021

 

2020

Net sales

$

712,019

 

 

$

581,113

 

 

$

2,050,002

 

 

$

1,736,824

 

Cost of sales

400,450

 

 

329,613

 

 

1,139,738

 

 

978,568

 

Gross profit

311,569

 

 

251,500

 

 

910,264

 

 

758,256

 

Selling, general and administrative expenses

147,180

 

 

117,370

 

 

426,708

 

 

369,750

 

Restructuring expenses and asset impairments

3,204

 

 

2,917

 

 

8,568

 

 

6,758

 

Operating income

161,185

 

 

131,213

 

 

474,988

 

 

381,748

 

Other expense (income) - net

630

 

 

(704)

 

 

16,957

 

 

7,321

 

Interest expense

9,498

 

 

10,642

 

 

31,479

 

 

33,958

 

Income before income taxes

151,057

 

 

121,275

 

 

426,552

 

 

340,469

 

Provision for income taxes

35,343

 

 

17,427

 

 

95,987

 

 

63,759

 

Net income

$

115,714

 

 

$

103,848

 

 

$

330,565

 

 

$

276,710

 

Net loss attributable to noncontrolling interest

28

 

 

 

 

80

 

 

 

Net income attributable to IDEX

$

115,742

 

 

$

103,848

 

 

$

330,645

 

 

$

276,710

 

 

 

 

 

 

 

 

 

Earnings per Common Share:

 

 

 

 

 

 

 

Basic earnings per common share attributable to IDEX

$

1.52

 

 

$

1.38

 

 

$

4.35

 

 

$

3.66

 

Diluted earnings per common share attributable to IDEX

$

1.51

 

 

$

1.37

 

 

$

4.33

 

 

$

3.64

 

 

 

 

 

 

 

 

 

Share Data:

 

 

 

 

 

 

 

Basic weighted average common shares outstanding

76,010

 

 

75,352

 

 

75,957

 

 

75,423

 

Diluted weighted average common shares outstanding

76,452

 

 

75,960

 

 

76,408

 

 

76,119

 

 

 

IDEX CORPORATION

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

 

 

September 30, 2021

 

December 31, 2020

Assets

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

806,497

 

 

$

1,025,851

 

Receivables - net

366,779

 

 

293,146

 

Inventories

353,924

 

 

289,910

 

Other current assets

56,161

 

 

48,324

 

Total current assets

1,583,361

 

 

1,657,231

 

Property, plant and equipment - net

314,631

 

 

298,273

 

Goodwill and intangible assets

2,810,450

 

 

2,311,137

 

Other noncurrent assets

146,137

 

 

147,757

 

Total assets

$

4,854,579

 

 

$

4,414,398

 

 

 

 

 

Liabilities and equity

 

 

 

Current liabilities

 

 

 

Trade accounts payable

$

175,864

 

 

$

151,993

 

Accrued expenses

252,092

 

 

208,828

 

Short-term borrowings

35

 

 

88

 

Dividends payable

41,117

 

 

38,149

 

Total current liabilities

469,108

 

 

399,058

 

Long-term borrowings

1,190,078

 

 

1,044,354

 

Other noncurrent liabilities

469,110

 

 

430,660

 

Total liabilities

2,128,296

 

 

1,874,072

 

Shareholders' equity

2,726,245

 

 

2,540,203

 

Noncontrolling interest

38

 

 

123

 

Total equity

2,726,283

 

 

2,540,326

 

Total liabilities and equity

$

4,854,579

 

 

$

4,414,398

 

 

 

IDEX CORPORATION

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

 

Nine Months Ended September 30,

 

2021

 

2020

Cash flows from operating activities

 

 

 

Net income

$

330,565

 

 

$

276,710

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

Asset impairments

815

 

 

85

 

Depreciation and amortization

32,281

 

 

30,851

 

Amortization of intangible assets

40,681

 

 

31,123

 

Amortization of debt issuance expenses

1,354

 

 

1,351

 

Share-based compensation expense

18,575

 

 

21,155

 

Deferred income taxes

(7,070

)

 

1,323

 

Non-cash interest expense associated with forward starting swaps

3,275

 

 

5,153

 

Termination of the U.S. pension plan

9,688

 

 

 

Changes in (net of the effect from acquisitions/divestitures):

 

 

 

Receivables

(59,249

)

 

33,291

 

Inventories

(28,072

)

 

17,920

 

Other current assets

6,041

 

 

(27,655

)

Trade accounts payable

20,962

 

 

(11,496

)

Deferred revenue

14,817

 

 

27,179

 

Accrued expenses

17,595

 

 

125

 

Other - net

(29

)

 

784

 

Net cash flows provided by operating activities

402,229

 

 

407,899

 

Cash flows from investing activities

 

 

 

Purchases of property, plant and equipment

(45,487

)

 

(39,438

)

Acquisition of businesses, net of cash acquired

(575,606

)

 

(118,159

)

Note receivable from collaborative partner

(4,200

)

 

 

Proceeds from disposal of fixed assets

250

 

 

2,230

 

Other - net

874

 

 

(238

)

Net cash flows used in investing activities

(624,169

)

 

(155,605

)

Cash flows from financing activities

 

 

 

Borrowings under revolving credit facilities

 

 

150,000

 

Proceeds from issuance of 3.00% Senior Notes

 

 

499,100

 

Proceeds from issuance of 2.625% Senior Notes

499,380

 

 

 

Payment of 4.50% Senior Notes

 

 

(300,000

)

Payment of 4.20% Senior Notes

(350,000

)

 

 

Payments under revolving credit facilities

 

 

(150,000

)

Payment of make-whole redemption premium

(6,659

)

 

(6,756

)

Debt issuance costs

(4,626

)

 

(4,741

)

Dividends paid

(120,289

)

 

(114,248

)

Proceeds from stock option exercises

12,497

 

 

28,729

 

Repurchases of common stock

 

 

(110,342

)

Shares surrendered for tax withholding

(5,680

)

 

(12,198

)

Other - net

(74

)

 

(352

)

Net cash flows provided by (used in) financing activities

24,549

 

 

(20,808

)

Effect of exchange rate changes on cash and cash equivalents

(21,963

)

 

13,691

 

Net (decrease) increase in cash

(219,354

)

 

245,177

 

Cash and cash equivalents at beginning of year

1,025,851

 

 

632,581

 

Cash and cash equivalents at end of period

$

806,497

 

 

$

877,758

 

 

 

IDEX CORPORATION

Company and Segment Financial Information - Reported

(dollars in thousands)

(unaudited)

 

 

Three Months Ended

September 30, (a)

 

Nine Months Ended

September 30, (a)

 

 

2021

 

 

 

2020

 

 

 

2021

 

 

 

2020

 

Fluid & Metering Technologies

 

 

 

 

 

 

 

Net sales

$

251,297

 

 

$

220,747

 

 

$

745,939

 

 

$

666,720

 

Operating income (b)

 

69,020

 

 

 

58,402

 

 

 

195,384

 

 

 

176,111

 

Operating margin

 

27.5

%

 

 

26.5

%

 

 

26.2

%

 

 

26.4

%

EBITDA(c)

$

76,373

 

 

$

66,284

 

 

$

212,159

 

 

$

195,516

 

EBITDA margin(c)

 

30.4

%

 

 

30.0

%

 

 

28.4

%

 

 

29.3

%

Depreciation and amortization

$

7,737

 

 

$

7,163

 

 

$

22,743

 

 

$

19,370

 

Capital expenditures

 

4,644

 

 

 

2,452

 

 

 

12,928

 

 

 

8,774

 

 

 

 

 

 

 

 

 

Health & Science Technologies

 

 

 

 

 

 

 

Net sales

$

302,287

 

 

$

220,378

 

 

$

827,668

 

 

$

660,105

 

Operating income (b)

 

70,374

 

 

 

49,912

 

 

 

212,987

 

 

 

150,562

 

Operating margin

 

23.3

%

 

 

22.6

%

 

 

25.7

%

 

 

22.8

%

EBITDA(c)

$

85,945

 

 

$

60,174

 

 

$

251,659

 

 

$

181,459

 

EBITDA margin(c)

 

28.4

%

 

 

27.3

%

 

 

30.4

%

 

 

27.5

%

Depreciation and amortization

$

15,335

 

 

$

10,230

 

 

$

38,382

 

 

$

30,806

 

Capital expenditures

 

8,645

 

 

 

10,558

 

 

 

27,339

 

 

 

20,842

 

 

 

 

 

 

 

 

 

Fire & Safety/Diversified Products

 

 

 

 

 

 

 

Net sales

$

159,106

 

 

$

140,896

 

 

$

479,402

 

 

$

412,296

 

Operating income (b)

 

39,126

 

 

 

37,103

 

 

 

126,483

 

 

 

103,977

 

Operating margin

 

24.6

%

 

 

26.3

%

 

 

26.4

%

 

 

25.2

%

EBITDA(c)

$

42,863

 

 

$

40,617

 

 

$

136,160

 

 

$

115,238

 

EBITDA margin(c)

 

26.9

%

 

 

28.8

%

 

 

28.4

%

 

 

28.0

%

Depreciation and amortization

$

3,787

 

 

$

3,854

 

 

$

11,510

 

 

$

11,409

 

Capital expenditures

 

1,365

 

 

 

2,340

 

 

 

4,524

 

 

 

6,534

 

 

 

 

 

 

 

 

 

Corporate Office and Eliminations

 

 

 

 

 

 

 

Intersegment sales eliminations

$

(671

)

 

$

(908

)

 

$

(3,007

)

 

$

(2,297

)

Operating income (b)

 

(17,335

)

 

 

(14,204

)

 

 

(59,866

)

 

 

(48,902

)

EBITDA(c)

 

(17,657

)

 

 

(13,807

)

 

 

(68,985

)

 

 

(55,812

)

Depreciation and amortization (d)

 

110

 

 

 

104

 

 

 

327

 

 

 

389

 

Capital expenditures

 

240

 

 

 

3,003

 

 

 

696

 

 

 

3,288

 

 

 

 

 

 

 

 

 

Company

 

 

 

 

 

 

 

Net sales

$

712,019

 

 

$

581,113

 

 

$

2,050,002

 

 

$

1,736,824

 

Operating income

 

161,185

 

 

 

131,213

 

 

 

474,988

 

 

 

381,748

 

Operating margin

 

22.6

%

 

 

22.6

%

 

 

23.2

%

 

 

22.0

%

EBITDA(c)

$

187,524

 

 

$

153,268

 

 

$

530,993

 

 

$

436,401

 

EBITDA margin(c)

 

26.3

%

 

 

26.4

%

 

 

25.9

%

 

 

25.1

%

Depreciation and amortization (d)

$

26,969

 

 

$

21,351

 

 

$

72,962

 

 

$

61,974

 

Capital expenditures

 

14,894

 

 

 

18,353

 

 

 

45,487

 

 

 

39,438

 

 

 

 

IDEX CORPORATION

Company and Segment Financial Information - Adjusted

(dollars in thousands)

(unaudited)

 

 

Three Months Ended

September 30, (a)

 

Nine Months Ended

September 30, (a)

 

 

2021

 

 

 

2020

 

 

 

2021

 

 

 

2020

 

Fluid & Metering Technologies

 

 

 

 

 

 

 

Net sales

$

251,297

 

 

$

220,747

 

 

$

745,939

 

 

$

666,720

 

Adjusted operating income (b)(c)

 

70,954

 

 

 

58,987

 

 

 

202,657

 

 

 

182,651

 

Adjusted operating margin(c)

 

28.2

%

 

 

26.7

%

 

 

27.2

%

 

 

27.4

%

Adjusted EBITDA(c)

$

78,307

 

 

$

66,869

 

 

$

225,725

 

 

$

202,056

 

Adjusted EBITDA margin(c)

 

31.2

%

 

 

30.3

%

 

 

30.3

%

 

 

30.3

%

Depreciation and amortization

$

7,737

 

 

$

7,163

 

 

$

22,743

 

 

$

19,370

 

Capital expenditures

 

4,644

 

 

 

2,452

 

 

 

12,928

 

 

 

8,774

 

 

 

 

 

 

 

 

 

Health & Science Technologies

 

 

 

 

 

 

 

Net sales

$

302,287

 

 

$

220,378

 

 

$

827,668

 

 

$

660,105

 

Adjusted operating income (b)(c)

 

80,100

 

 

 

50,890

 

 

 

223,780

 

 

 

152,724

 

Adjusted operating margin(c)

 

26.5

%

 

 

23.1

%

 

 

27.0

%

 

 

23.1

%

Adjusted EBITDA(c)

$

95,671

 

 

$

61,152

 

 

$

262,452

 

 

$

183,621

 

Adjusted EBITDA margin(c)

 

31.6

%

 

 

27.7

%

 

 

31.7

%

 

 

27.8

%

Depreciation and amortization

$

15,335

 

 

$

10,230

 

 

$

38,382

 

 

$

30,806

 

Capital expenditures

 

8,645

 

 

 

10,558

 

 

 

27,339

 

 

 

20,842

 

 

 

 

 

 

 

 

 

Fire & Safety/Diversified Products

 

 

 

 

 

 

 

Net sales

$

159,106

 

 

$

140,896

 

 

$

479,402

 

 

$

412,296

 

Adjusted operating income (b)(c)

 

39,071

 

 

 

38,352

 

 

 

126,644

 

 

 

105,867

 

Adjusted operating margin(c)

 

24.6

%

 

 

27.2

%

 

 

26.4

%

 

 

25.7

%

Adjusted EBITDA(c)

$

42,808

 

 

$

41,866

 

 

$

138,103

 

 

$

117,128

 

Adjusted EBITDA margin(c)

 

26.9

%

 

 

29.7

%

 

 

28.8

%

 

 

28.4

%

Depreciation and amortization

$

3,787

 

 

$

3,854

 

 

$

11,510

 

 

$

11,409

 

Capital expenditures

 

1,365

 

 

 

2,340

 

 

 

4,524

 

 

 

6,534

 

 

 

 

 

 

 

 

 

Corporate Office and Eliminations

 

 

 

 

 

 

 

Intersegment sales eliminations

$

(671

)

 

$

(908

)

 

$

(3,007

)

 

$

(2,297

)

Adjusted operating income (b)(c)

 

(17,036

)

 

 

(14,099

)

 

 

(54,439

)

 

 

(48,629

)

Adjusted EBITDA(c)

 

(17,358

)

 

 

(13,702

)

 

 

(53,384

)

 

 

(47,118

)

Depreciation and amortization(d)

 

110

 

 

 

104

 

 

 

327

 

 

 

389

 

Capital expenditures

 

240

 

 

 

3,003

 

 

 

696

 

 

 

3,288

 

 

 

 

 

 

 

 

 

Company

 

 

 

 

 

 

 

Net sales

$

712,019

 

 

$

581,113

 

 

$

2,050,002

 

 

$

1,736,824

 

Adjusted operating income(c)

 

173,089

 

 

 

134,130

 

 

 

498,642

 

 

 

392,613

 

Adjusted operating margin(c)

 

24.3

%

 

 

23.1

%

 

 

24.3

%

 

 

22.6

%

Adjusted EBITDA(c)

$

199,428

 

 

$

156,185

 

 

$

572,896

 

 

$

455,687

 

Adjusted EBITDA margin(c)

 

28.0

%

 

 

26.9

%

 

 

27.9

%

 

 

26.2

%

Depreciation and amortization (d)

$

26,969

 

 

$

21,351

 

 

$

72,962

 

 

$

61,974

 

Capital expenditures

 

14,894

 

 

 

18,353

 

 

 

45,487

 

 

 

39,438

 

(a)

Three and nine month data includes the results of both the ABEL Pumps acquisition (March 2021) and the Flow MD acquisition (February 2020) in the Fluid & Metering Technologies segment and the Airtech acquisition (June 2021) in the Health & Science Technologies segment from the date of acquisition. Three and nine month data also includes the results of CiDRA Precision Services (March 2021) in the Health & Science 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)

These are non-GAAP financial measures. For a reconciliation of these non-GAAP financial measures to their most comparable measure calculated and presented in accordance with GAAP, see the reconciliation tables above.

(d)

Depreciation and amortization excludes amortization of debt issuance costs and debt discounts.

 

Contacts

Investor Contact:

William K. Grogan

Senior Vice President and Chief Financial Officer

(847) 498-7070

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