IDEX Reports 15 Percent EPS Growth and 28 Percent Free Cash Flow Growth in 2013; Q4 EPS of 82 Cents Driven by 20 Percent

  IDEX Reports 15 Percent EPS Growth and 28 Percent Free Cash Flow Growth in
  2013; Q4 EPS of 82 Cents Driven by 20 Percent Operating Margin

Business Wire

LAKE FOREST, Ill. -- January 29, 2014

IDEX Corporation (NYSE: IEX) today announced its financial results for the
three- and twelve- month periods ended December 31, 2013.

Full Year 2013 Highlights

  *Orders of $2.1 billion increased 7 percent compared to the prior year (+5
    percent organic and +2 percent acquisition).
  *Sales of $2.0 billion increased 4 percent compared to the prior year (+2
    percent organic and +2 percent acquisition).
  *Gross margin of 43.1 percent was up 200 basis points from the prior year.
  *Operating margin of 19.5 percent was up 110 basis points from the adjusted
    prior year.
  *Net income of $255 million represents an increase of 14 percent compared
    to the adjusted prior year net income of $224 million.
  *EPS of $3.09 was 41 cents, or 15 percent, higher than the adjusted prior
    year EPS of $2.68.
  *EBITDA of $475 million, which represents an 8 percent increase from the
    adjusted prior year, was 23 percent of sales and covered interest expense
    by over 11 times.
  *Free cash flow of $379 million, which represents a 28 percent increase
    from the prior year, was 148 percent of net income.
  *The Company completed the repurchase of 2.9 million shares of common stock
    for $166 million in 2013.

Fourth Quarter 2013

Orders in the quarter of $519 million were up 8 percent from the prior year
period. Sales in the quarter totaled $521 million, 6 percent higher than the
prior year period. For the quarter, on an organic basis, orders were 7 percent
higher and sales were 5 percent higher than the prior year period.

Fourth quarter 2013 operating income was $104 million, up 14% from the
adjusted prior year period. This resulted in an operating margin of 20
percent, up 150 basis points from the adjusted prior year operating margin,
primarily due to volume leverage and productivity. Operating income includes
$6 million of charges associated with cost-out actions across our three
segments partially offset by a $4 million gain on the settlement of the
contingent consideration agreement related to the Matcon business acquired in
July 2012.

Fourth quarter net income was $68 million, an increase of 18 percent from the
adjusted prior year. Fourth quarter earnings per share were 82 cents, an
increase of 13 cents, or 19 percent, from the adjusted prior year.

Free cash flow of $95 million was a 20 percent increase from the prior year
and 140 percent of net income.

“IDEX finished 2013 with a strong fourth quarter, culminating in a record
year. Our flexible operating model allowed us to improve our cost structure
and reinvest in organic growth. For the full year 2013, we delivered 7 percent
order growth, expanded operating margins to 19.5 percent, generated record
free cash flow of $379 million, and achieved 15 percent EPS growth.

The fourth quarter saw markets continue to stabilize, and sustained order
growth in the second half of 2013 provides solid momentum heading into 2014.
In the fourth quarter, we took targeted cost-out actions across our three
segments to further optimize our operating footprint. Based on these actions
and improved performance throughout 2013, we now expect the Company’s
operating margins for 2014 to exceed 20 percent. I am proud of our 2013
accomplishments and I am confident in IDEX’s ability to capitalize on
long-term growth opportunities.

Fueled by free cash flow conversion of 148 percent in 2013, we returned a
record $240 million to shareholders via dividends and share repurchases. Our
balance sheet and ability to generate cash are stronger than ever.

As we enter 2014, we will continue to rigorously allocate our capital and
people where we can create advantage and value. Our strategy of fully funding
organic growth is unchanged, and we are committed to further increasing
shareholder value through strategic acquisitions, shareholder dividends and
share repurchases.

We expect global end market demand to remain uneven. Regardless, with our
focused efforts, we anticipate 3 to 5 percent organic revenue growth in 2014
and EPS of $3.33 to $3.43, up 8 to 11 percent compared to 2013. We expect
first quarter 2014 EPS to be in the range of 83 to 85 cents, up 12 to 15
percent.”

      Andrew K. Silvernail
            Chairman and Chief Executive Officer
            

Fourth Quarter 2013 Business Highlights (Operating margin excludes non-cash
impairment and restructuring charges in 2012)

Fluid & Metering Technologies

  *Sales in the fourth quarter of $222 million reflected a 5 percent increase
    compared to the fourth quarter of 2012 (+4 percent organic and +1 percent
    foreign currency translation).
  *Operating margin of 24.9 percent represented a 390 basis point improvement
    compared with the fourth quarter of 2012 primarily due to higher volume
    and productivity initiatives partially offset by $2 million of charges
    associated with cost-out actions taken during the quarter.

Health & Science Technologies

  *Sales in the fourth quarter of $182 million reflected a 4 percent increase
    compared to the fourth quarter of 2012 (+2 percent organic, +3 percent
    acquisitions and -1 percent foreign currency translation).
  *Operating margin of 18.2 percent represented a 20 basis point decrease
    compared with the fourth quarter of 2012 primarily due to $3 million of
    charges associated with cost-out actions taken during the quarter,
    partially offset by higher volume and productivity initiatives.

Fire & Safety/Diversified Products

  *Sales in the fourth quarter of $118 million reflected a 9 percent increase
    compared to the fourth quarter of 2012 (+8 percent organic and +1 percent
    foreign currency translation).
  *Operating margin of 24.3 percent represented a 10 basis point increase
    compared with the fourth quarter of 2012 primarily due to higher volume
    and productivity initiatives partially offset by $1 million of charges
    associated with cost-out actions taken during the quarter.

For the fourth quarter of 2013, Fluid & Metering Technologies contributed 42
percent of sales and 47 percent of operating income; Health & Science
Technologies accounted for 35 percent of sales and 28 percent of operating
income; and Fire & Safety/Diversified Products represented 23 percent of sales
and 25 percent of operating income.

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 Flow Bridge (dollars in millions)

               For the Quarter Ended                                  For the Year Ended
                December 31,                      September 30,        December 31,
                2013       2012        Change    2013       Change   2013       2012       Change
Income (loss)   $ 92.7      $ (135.9 )   n/m       $ 86.6      7   %    $ 353.1     $ 86.2      n/m
before Taxes
Depreciation
and               19.6        20.4       (4   %)     19.8      (1  %)     79.3        78.3      1    %
Amortization
Interest         10.5      10.5      -          10.6     (1  %)    42.2      42.3     -
Expense
EBITDA            122.8       (105.0 )   n/m         117.0     5   %      474.6       206.8     n/m
Restructuring     -           17.9       (100 %)     -         -          -           32.5      (100 %)
Charge
Impairment       -         198.5     (100 %)    -        -         -         198.5    (100 %)
Charge
Adjusted        $ 122.8    $ 111.4     10   %    $ 117.0    5   %    $ 474.6    $ 437.8    8    %
EBITDA
                                                                                                
Cash Flow
from            $ 101.6     $ 85.7       19   %    $ 118.4     (14 %)   $ 401.5     $ 326.1     23   %
Operating
Activities
Capital           (8.4  )     (7.7   )   9    %      (7.3  )   15  %      (31.5 )     (35.8 )   (12  %)
Expenditures
Excess Tax
Benefit from     1.7       1.2       42   %     2.1      (19 %)    8.6       4.5      91   %
Stock-Based
Compensation
Free Cash       $ 94.9     $ 79.2      20   %    $ 113.2    (16 %)   $ 378.6    $ 294.8    28   %
Flow
                                                                                                

Conference Call to be Broadcast over the Internet

IDEX will broadcast its fourth quarter earnings conference call over the
Internet on Thursday, January 30, 2014 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 #
30410743.

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,
                     2013       2012          2013          2012
                                                                 
Net sales              $ 520,620   $ 490,838      $  2,024,130   $ 1,954,258
Cost of sales          293,611   287,980      1,150,766   1,150,558 
Gross profit             227,009     202,858         873,364       803,700
Selling, general and
administrative           123,136     112,059         477,851       444,490
expenses
Impairment               -           198,519         -             198,519
Restructuring          -         17,869       -           32,473    
expenses
Operating income         103,873     (125,589 )      395,513       128,218
(loss)
Other (income)           696         (217     )      178           (236      )
expense - net
Interest expense       10,482    10,516       42,206      42,250    
Income (loss) before     92,695      (135,888 )      353,129       86,204
income taxes
Provision (benefit)    25,140    (16,869  )    97,914      48,574    
for income taxes
Net income (loss)     $ 67,555   $ (119,019 )  $  255,215    $ 37,630    
                                                                 
                                                                 
Earnings per Common
Share:
                                                                 
Basic earnings
(loss) per common      $ 0.83      $ (1.45    )   $  3.11        $ 0.45
share ^(a)
                                                                 
Diluted earnings
(loss) per common      $ 0.82      $ (1.45    )   $  3.09        $ 0.45
share ^(a)
                                                                 
                                                                 
Share Data:
                                                                 
Basic weighted
average common           80,782      82,296          81,517        82,689
shares outstanding
                                                                 
Diluted weighted
average common           81,854      82,296          82,489        83,641
shares outstanding
                                                                 
                                                                 
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
                                                  December 31,   December 31,
                                            2013          2012
                                                                 
Assets
Current assets
Cash and cash                                     $  439,629     $ 318,864
equivalents
Receivables - net                                    253,226       256,095
Inventories                                          230,967       234,950
Other current assets                           67,131      71,956    
Total current assets                                 990,953       881,865
Property, plant and                                  213,488       219,161
equipment - net
Goodwill and                                         1,660,683     1,663,099
intangible assets
Other noncurrent                               22,453      21,265    
assets
Total assets                                 $  2,887,577  $ 2,785,390 
                                                                 
Liabilities and
shareholders' equity
Current liabilities
Trade accounts                                    $  133,312     $ 117,341
payable
Accrued expenses                                     150,751       150,176
Short-term                                           1,871         7,335
borrowings
Dividends payable                              18,675      16,575    
Total current                                        304,609       291,427
liabilities
Long-term borrowings                                 772,005       779,241
Other noncurrent                               237,974     249,724   
liabilities
Total liabilities                                    1,314,588     1,320,392
Shareholders' equity                           1,572,989   1,464,998 
Total liabilities
and shareholders'                            $  2,887,577  $ 2,785,390 
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)
                       2013         2012 ^(c)    2013           2012 ^(c)
                                                                                 
                                                                                 
    Fluid & Metering
    Technologies
    Net sales            $ 222,234     $ 211,855     $ 871,814       $ 833,288
    Operating income       55,326        44,455        211,256         180,630
    ^(c)
    Operating margin       24.9    %     21.0    %     24.2      %     21.7      %
    Depreciation and     $ 6,680       $ 7,445       $ 27,633        $ 29,637
    amortization
    Capital                3,455         3,784         11,581          13,535
    expenditures
                                                                                 
    Health & Science
    Technologies
    Net sales            $ 182,287     $ 174,661     $ 714,650       $ 695,235
    Operating income       33,143        32,214        136,707         122,708
    ^(c)
    Operating margin       18.2    %     18.4    %     19.1      %     17.6      %
    Depreciation and     $ 10,959      $ 10,687      $ 43,496        $ 39,981
    amortization
    Capital                2,503         2,704         12,280          13,140
    expenditures
                                                                                 
    Fire &
    Safety/Diversified
    Products
    Net sales            $ 118,223     $ 108,880     $ 445,049       $ 437,053
    Operating income       28,703        26,296        102,730         104,461
    ^(c)
    Operating margin       24.3    %     24.2    %     23.1      %     23.9      %
    Depreciation and     $ 1,677       $ 1,881       $ 6,852         $ 7,107
    amortization
    Capital                2,043         1,471         5,040           6,654
    expenditures
                                                                                 
    Company
    Net sales            $ 520,620     $ 490,838     $ 2,024,130     $ 1,954,258
    Operating income       103,873       90,799        395,513         359,210
    ^(c)
    Operating margin       20.0    %     18.5    %     19.5      %     18.4      %
    Depreciation and     $ 19,639      $ 20,374      $ 79,334        $ 78,312
    amortization ^(d)
    Capital                8,396         8,254         31,536          35,520
    expenditures
                                                                                 
                                                                     
                                                                                 
(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.
                                                                                 
    Three and twelve month data includes acquisitions of FTL (March 2013),
(b) Matcon (July 2012) and ERC (April 2012) in the Health & Science Technologies
    segment from the date of acquisition.
                                                                                 
    Group operating income excludes unallocated corporate operating expenses while
(c) both Group and Company operating income excludes the impairment charge (for
    the Fluid & Metering Technologies and Health & Science Technologies segments)
    and restructuring related charges for 2012.
                                                                                 
(d) Depreciation and amortization excludes amortization of debt issuance
    expenses.

Contact:

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