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IDEX Reports Adjusted EPS of $2.68 for the Year and $0.69 for Q4 with Record 2012 Free Cash Flow



  IDEX Reports Adjusted EPS of $2.68 for the Year and $0.69 for Q4 with Record
  2012 Free Cash Flow

Business Wire

LAKE FOREST, Ill. -- February 4, 2013

IDEX Corporation (NYSE: IEX) today announced its financial results for the
three- and twelve- month periods ended December 31, 2012.

Full Year 2012

  * Orders increased 7 percent compared to the prior year (+3 percent organic,
    +5 percent acquisition and -1 percent foreign currency translation).
  * Sales increased 6 percent compared to the prior year (+3 percent organic,
    +5 percent acquisition and -2 percent foreign currency translation).
  * Adjusted operating margin of 18.4 percent was up 30 basis points from the
    prior year.
  * Adjusted net income of $224 million, which excludes a preliminary non-cash
    pre-tax impairment charge of $198 million and pre-tax restructuring
    charges of $32 million, represents an increase of 5 percent compared to
    the prior year adjusted net income of $214 million.
  * Reported net income of $38 million, which reflects the previously
    mentioned charges, represents a decrease of 81 percent compared to the
    prior year reported net income of $194 million.
  * Adjusted EPS of $2.68 was 12 cents, or 5 percent, higher than the prior
    year adjusted EPS of $2.56.
  * Reported EPS of 45 cents, which reflects the previously mentioned charges,
    represents a decrease of 81 percent compared to the prior year reported
    EPS of $2.32.
  * Adjusted EBITDA of $438 million, which represents a record and an 8
    percent increase from the prior year, was 22 percent of sales and covered
    interest expense over 10 times.
  * Record free cash flow of $295 million, which represents a 30 percent
    increase from the adjusted prior year, was over 132 percent of adjusted
    net income.
  * The Company completed the repurchase of 2.2 million shares of common stock
    for $90 million in 2012.

Fourth Quarter 2012

New orders in the quarter totaled $482 million, up 8 percent from the prior
year period. Sales in the quarter totaled $491 million, 2 percent higher than
the prior year period. For the quarter, on an organic basis, orders were 5
percent higher and sales were flat compared with the prior year period.

In the fourth quarter, the Company recorded a preliminary non-cash goodwill
and intangible asset impairment charge of $198 million in its Optics &
Photonics and Water platforms. Excluding the impact of the impairment charge
and restructuring charges of $18 million, fourth quarter 2012 operating income
was $91 million. This resulted in an adjusted operating margin of 18.5
percent, up 70 basis points from the prior year adjusted operating margin,
primarily due to productivity and benefits from structural cost actions.

Excluding the impact of the above-mentioned charges, fourth quarter adjusted
earnings per share was 69 cents, an increase of 4 cents, or 6 percent, from
the prior year.

Free cash flow was $79 million for the quarter, an 8 percent increase from the
adjusted prior year fourth quarter due to improved operating working capital.

“IDEX is proud to announce in 2012, our 25^th anniversary year, we once again
achieved record orders, sales and free cash flow. Our flexible operating model
drove productivity improvements which, together with structural cost
reductions, increased operating margins to 18.4 percent for 2012. I’m pleased
with our profit flow-thru of greater than 50 percent on organic revenue growth
in 2012.

In the face of uncertain market conditions throughout 2012, our team executed
well. We delivered record free cash flow of $295 million, up $69 million over
last year, resulting in cash conversion of 132 percent. Operationally, we
reduced inventory by over $20 million from the prior year. Our strong balance
sheet and ability to convert cash allows us to execute our capital deployment
strategy.

In the fourth quarter we finalized our restructuring activities. No further
restructuring is currently planned. We will continue to drive productivity
through our proven operational excellence capabilities. Our focus on cost
reduction has allowed us to make growth-focused investments while still
netting a $12 million, or 10 cents of EPS, benefit in 2013.

Difficult end market conditions resulted in impairment charges in our Optics &
Photonics and Water platforms. Throughout the year, we have aggressively
restructured both platforms and are well positioned to take advantage of
long-term growth opportunities.

As we enter 2013, our team is focused on executing our strategic priorities.
With over one billion dollars of capital availability, we will continue to
fund organic growth, while remaining committed to our capital deployment
objectives of strategic acquisitions, shareholder dividends and share
repurchases. Looking ahead, we see low- to mid-single digit organic growth in
2013, with escalating growth in the second half of the year.

On a regional basis, North America remains steady, the Asian markets are
improving, and we see stabilization in Europe. Based on this outlook, for 2013
we are forecasting EPS of $2.85 to $2.95, up 6 to 10 percent over 2012
adjusted EPS of $2.68. Our projected first quarter EPS is in the range of 70
to 72 cents, up 6 to 9 percent.

Andrew K. Silvernail
Chairman and Chief Executive Officer

Fourth Quarter 2012 Business Highlights (Operating margin excludes non-cash
impairment and restructuring charges)

Fluid & Metering Technologies

  * Sales in the fourth quarter of $212 million reflected a 2 percent decrease
    compared to the fourth quarter of 2011 (-1 percent organic and -1 percent
    foreign currency translation).
  * Operating margin of 21.0 percent represented a 120 basis point improvement
    compared with the fourth quarter of 2011 primarily due to productivity and
    cost reduction initiatives.

Health & Science Technologies

  * Sales in the fourth quarter of $175 million reflected a 6 percent increase
    compared to the fourth quarter of 2011 (-3 percent organic and +9 percent
    acquisitions).
  * Operating margin of 18.4 percent represented a 100 basis point decrease
    compared with the fourth quarter of 2011 primarily due to lower margins
    from recently acquired businesses. Sequentially, operating margin improved
    110 basis points.

Fire & Safety/Diversified Products

  * Sales in the fourth quarter of $109 million reflected a 9 percent increase
    compared to the fourth quarter of 2011 (+10 percent organic and -1 percent
    foreign currency translation).
  * Operating margin of 24.2 percent represented a 200 basis point increase
    compared with the fourth quarter of 2011 primarily due to higher volume
    and improved productivity.

For the fourth quarter of 2012, Fluid & Metering Technologies contributed 43
percent of sales and 43 percent of operating income; Health & Science
Technologies accounted for 35 percent of sales and 31 percent of operating
income; and Fire & Safety/Diversified Products represented 22 percent of sales
and 26 percent of operating income.

Non-Cash Impairment Charge

Under U.S. GAAP, companies are required to conduct an annual impairment test
for each business, or more frequently if an event occurs or circumstances
change. An impairment charge is required when the fair value is less than the
carrying value of a business.

On February 1, 2013, the Company concluded that a significant non-cash
impairment charge was required in the fourth quarter of 2012 to reduce the
carrying value of goodwill and intangible assets within the Optics & Photonics
platform and goodwill and long-lived assets within the Water platform. The
goodwill at Optics & Photonics primarily originated from the 2011 acquisition
of CVI Melles Griot and the goodwill in the Water platform primarily
originated from the 2008 acquisitions of IETG and ADS. As a result of our
annual test, an impairment charge was required within Optics & Photonics due
to continued softness in the Optics & Photonics end markets. In addition, we
were required to perform an interim impairment test in the Water platform due
to the reorganization of certain FMT businesses in the fourth quarter. This
reorganization, combined with continued softness in municipal end markets,
contributed to the impairment charge.

The Company currently estimates the pre-tax charge associated with this
impairment to be in the range of $198 to $238 million. An estimated charge of
$198 million has been included in the fourth quarter and full-year operating
results reported herein based on preliminary valuation results. Pending the
completion of these valuations and the associated deferred tax asset impact,
the charge will be finalized and updated, if necessary, in the filing of the
Company’s Form 10-K for the period ended December 31, 2012.

The non-cash accounting charge will not affect our liquidity, operations or
ongoing financial performance.

EBITDA and Free Cash Flow

EBITDA means earnings before interest, income taxes, depreciation and
amortization, while free cash flow means cash flow from operating activities
less capital expenditures plus the excess tax benefit from stock-based
compensation. Management uses these non-GAAP financial measures as internal
operating metrics and for enterprise valuation purposes. Management believes
these measures are useful as analytical indicators of leverage capacity and
debt servicing ability, and uses them to measure financial performance as well
as for planning purposes. However, they should not be considered as
alternatives to net income, cash flow from operating activities or any other
items calculated in accordance with U.S. GAAP, or as an indicator of operating
performance. The definitions of EBITDA and free cash flow used here may differ
from those used by other companies.

                                                                        
EBITDA and
Free Cash       For the Quarter Ended                                     For the Year Ended
Flow bridge
                December 31,                        September 30,         December 31,
                2012         2011        Change     2012        Change    2012        2011        Change
                                                                                                          
Income (Loss)   $ (135.9 )   $ 67.2      n/m    %   $ 70.2      n/m    %  $ 86.2      $ 273.9     (69  ) %
before Taxes
Depreciation
and               20.4         19.3      6            19.5      4           78.3        72.4      8
Amortization
Interest          10.5         8.4       25           10.5      -           42.3        29.3      44
EBITDA            (105.0 )     94.9      n/m          100.2     n/m         206.8       375.6     (45  )
CVI Fair
Value             -            -         -            -         -           -           15.8      (100 )
Inventory
Restructuring     17.9         9.4       90           7.1       n/m         32.5        12.3      n/m
charge
Impairment        198.5        -         100          -         100         198.5       -         100
charge
Adjusted        $ 111.4      $ 104.3     7          $ 107.3     4         $ 437.8     $ 403.7     8
EBITDA
                                                                                                          
Cash Flow
from            $ 85.7       $ 41.6      n/m    %   $ 101.0     (15  ) %  $ 326.1     $ 217.2     50     %
Operating
Activities
Capital           (7.7   )     (7.2  )   7            (9.4  )   (18  )      (35.8 )     (35.2 )   2
Expenditures
Excess Tax
Benefit from      1.2          0.4       n/m          0.8       41          4.5         5.3       (16  )
Stock-Based
Compensation
Free Cash         79.2         34.8      n/m          92.4      (14  )      294.8       187.3     57
Flow
Forward Swap      -            38.7      (100 )       -         -           -           38.7      (100 )
Adjusted Free   $ 79.2       $ 73.5      8          $ 92.4      (14  )    $ 294.8     $ 226.0     30
Cash Flow
                                                                                                          

Conference Call to be Broadcast over the Internet

IDEX will broadcast its fourth quarter earnings conference call over the
Internet on Tuesday, February 5, 2013 at 9:30 a.m. CT. Chairman and Chief
Executive Officer Andy Silvernail and Vice President and Chief Financial
Officer Heath Mitts 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
855.859.2056 (or 404.537.3406 for international participants) using the ID #
86510532.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Exchange Act of 1934, as amended. These statements may relate to, among other
things, capital expenditures, cost reductions, cash flow, and operating
improvements and are indicated by words or phrases such as “anticipate,”
“estimate,” “plans,” “expects,” “projects,” “should,” “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. 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. 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.

                               (Tables follow)

                                                                 
IDEX CORPORATION
Condensed Statements of Consolidated Operations
(in thousands except per share amounts)
(unaudited)
                                                                   
                                                                   
                       Three Months Ended         Twelve Months Ended
                       December 31,               December 31,
                       2012           2011        2012            2011
                                                                   
Net sales              $ 490,838      $ 480,683   $ 1,954,258     $  1,838,451
Cost of sales            287,980        287,081     1,150,558        1,099,778
Gross profit             202,858        193,602     803,700          738,673
Selling, general and
administrative           112,059        108,218     444,490          421,703
expenses
Impairment               198,519        -           198,519          -
Restructuring            17,869         9,383       32,473           12,314
expenses
Operating income         (125,589 )     76,001      128,218          304,656
(loss)
Other expense            (217     )     442         (236      )      1,443
(income) - net
Interest expense         10,516         8,395       42,250           29,332
Income (loss) before     (135,888 )     67,164      86,204           273,881
income taxes
Provision for income     (16,869  )     19,776      48,574           80,024
taxes
Net income (loss)      $ (119,019 )   $ 47,388    $ 37,630        $  193,857
                                                                   
                                                                   
Earnings per Common
Share:
Basic earnings
(loss) per common      $ (1.45    )   $ 0.57      $ 0.45          $  2.34
share ^(a)
Diluted earnings
(loss) per common      $ (1.45    )   $ 0.57      $ 0.45          $  2.32
share ^(a)
                                                                   
                                                                   
Share Data:
                                                                   
Basic weighted
average common           82,296         82,596      82,689           82,145
shares outstanding
                                                                   
Diluted weighted
average common           82,296         83,573      83,641           83,543
shares outstanding
                                                                   
                                                                   
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
                                                  December 31,    December 31,
                                                  2012            2011
                                                                   
Assets
Current assets
Cash and cash                                     $ 318,864       $  230,259
equivalents
Receivables - net                                   256,095          252,845
Inventories                                         234,950          254,258
Other current assets                                71,956           51,799
Total current assets                                881,865          789,161
Property, plant and                                 219,161          213,717
equipment - net
Goodwill and                                        1,663,099        1,813,588
intangible assets
Other noncurrent                                    21,265           19,641
assets
Total assets                                      $ 2,785,390     $  2,836,107
                                                                   
Liabilities and
shareholders' equity
Current liabilities
Trade accounts                                    $ 117,341       $  110,977
payable
Accrued expenses                                    150,176          130,696
Short-term                                          7,335            2,444
borrowings
Dividends payable                                   16,575           14,161
Total current                                       291,427          258,278
liabilities
Long-term borrowings                                779,241          806,366
Other noncurrent                                    249,724          258,328
liabilities
Total liabilities                                   1,320,392        1,322,972
Shareholders' equity                                1,464,998        1,513,135
Total liabilities
and shareholders'                                 $ 2,785,390     $  2,836,107
equity

                                                                  
                                                                                
                                                                                
IDEX CORPORATION
Company and Business Group Financial Information
(dollars in thousands)
(unaudited)
                                                                                
                                                                                
                         Three Months Ended        Twelve Months Ended
                         December 31, ^(b)         December 31, ^(b)
                         2012          2011 ^(c)   2012            2011 ^(c)    
                                                                                
                                                                                
    Fluid & Metering
    Technologies
    Net sales            $ 211,855     $ 216,920   $ 833,288       $ 831,287
    Operating income       44,455        42,879      180,630         167,679
    ^(d)
    Operating margin       21.0    %     19.8    %   21.7      %     20.2      %
    Depreciation and     $ 7,445       $ 7,527     $ 29,637        $ 32,368
    amortization
    Capital                3,784         2,723       13,535          12,543
    expenditures
                                                                                
    Health & Science
    Technologies
    Net sales            $ 174,661     $ 165,281   $ 695,235       $ 607,900
    Operating income       32,214        32,086      122,708         123,967
    ^(d) (e)
    Operating margin       18.4    %     19.4    %   17.6      %     20.4      %
    Depreciation and     $ 10,687      $ 9,369     $ 39,981        $ 30,055
    amortization
    Capital                2,704         3,020       13,140          12,938
    expenditures
                                                                                
    Fire &
    Safety/Diversified
    Products ^(c)
    Net sales            $ 108,880     $ 99,611    $ 437,053       $ 402,425
    Operating income       26,296        22,156      104,461         91,128
    ^(d)
    Operating margin       24.2    %     22.2    %   23.9      %     22.6      %
    Depreciation and     $ 1,881       $ 1,955     $ 7,107         $ 8,516
    amortization
    Capital                1,471         1,059       6,654           5,644
    expenditures
                                                                                
    Company
    Net sales            $ 490,838     $ 480,683   $ 1,954,258     $ 1,838,451
    Operating income       90,799        85,384      359,210         332,770
    ^(d)
    Operating margin       18.5    %     17.8    %   18.4      %     18.1      %
    Depreciation and     $ 20,374      $ 19,270    $ 78,312        $ 72,386
    amortization ^(f)
    Capital                8,254         7,412       35,520          34,548
    expenditures
                                                                                
                                                                                
                                                                                
    Calculated by applying the two-class method of allocating earnings to common
(a) stock and participating securities as required by ASC 260, Earnings Per
    Share.
                                                                                
    Three and twelve month data includes acquisitions of Matcon (July 2012), ERC
(b) (April 2012), CVI Melles Griot (June 2011), Microfluidics (March 2011) and
    Advanced Thin Films (January 2011) in the Health & Science Technologies
    segment from the date of acquisition.
                                                                                
    Financial data for 2011 has been revised to reflect the transfer of our
    Trebor business unit from the Health & Science Technologies segment to the
(c) Fluid & Metering Technologies segment as well as the movement of the
    Dispensing Equipment segment into the Fire & Safety/Diversified Products
    segment.
                                                                                
    Group operating income excludes unallocated corporate operating expenses
(d) while both Group and Company operating income excludes the impairment charge
    in 2012 (for the Fluid & Metering Technologies and Health & Science
    Technologies segments) and restructuring related charges for 2012 and 2011.
                                                                                
    Operating income excludes $15.8 million for the twelve months ending
(e) December 31, 2011 related to a non-cash acquisition fair value inventory
    charge.
                                                                                
(f) Depreciation and amortization excludes amortization of debt issuance
    expenses.

                                                                
IDEX Corporation
Reconciliation of GAAP to Non-GAAP Financial Measures
(in thousands, except per share amounts)
(unaudited)
                                                                  
                                                                  
Three Months ended December 31, 2012
                                                                  
                                                                 Non-GAAP
                  GAAP As         Restructuring   Impairment     Adjusted (ex
                  Reported        Expense         Charge         charges)
                                                                  
Net sales         $ 490,838                                      $ 490,838
Cost of sales       287,980                                        287,980    
Gross profit        202,858                                        202,858
SG&A                112,059                                        112,059
Impairment          198,519                         (198,519 )     -
Restructuring       17,869           (17,869  )                    -          
expenses
Operating           (125,589  )      17,869         198,519        90,799
income (loss)
Other expense       (217      )                                    (217      )
(income) - net
Interest            10,516                                         10,516     
expense
Income (loss)
before income       (135,888  )      17,869         198,519        80,500
taxes
Provision
(benefit) for       (16,869   )      5,182          35,008         23,321     
taxes
Net income        $ (119,019  )   $  12,687       $ 163,511      $ 57,179     
(loss)
                                                                  
Earnings (loss)
per common        $ (1.45     )   $  0.15         $ 1.99         $ 0.69       
share
                                                                  
                                                                  
                                                                  
Twelve Months ended December 31, 2012
                                                                  
                                                                 Non-GAAP
                  GAAP As         Restructuring   Impairment     Adjusted (ex
                  Reported        Expense         Charge         charges)
                                                                  
Net sales         $ 1,954,258                                    $ 1,954,258
Cost of sales       1,150,558                                      1,150,558  
Gross profit        803,700                                        803,700
SG&A                444,490                                        444,490
Impairment          198,519                         (198,519 )     -
Restructuring       32,473           (32,473  )                    -          
expenses
Operating           128,218          32,473         198,519        359,210
income
Other expense       (236      )                                    (236      )
(income) - net
Interest            42,250                                         42,250     
expense
Income before       86,204           32,473         198,519        317,196
income taxes
Provision for       48,574           9,547          35,008         93,129     
taxes
Net income        $ 37,630        $  22,926       $ 163,511      $ 224,067    
                                                                  
Earnings per      $ 0.45          $  0.27         $ 1.95         $ 2.68       
common share

Contact:

IDEX Corporation
Investor Contact:
Heath Mitts
Vice President – Chief Financial Officer
(847) 498-7070
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