First Quarter 2024
Highlights
(All comparisons are against the first quarter of 2023 unless
otherwise noted)
- Sales of $801 million, down 5% overall and 6% organically, in
line with expectations
- Reported diluted EPS of $1.60, down 13%, and adjusted diluted
EPS of $1.88, down 10%, exceeding first quarter expectations
- Strong operating cash flow of $157 million, up 6%; free cash
flow of $137 million, up 13%
Full Year and Second Quarter 2024
Outlook
- Full year organic sales growth is projected to be 0% to 2% over
the prior year
- Full year GAAP diluted EPS of $7.13 - $7.43 (adjusted diluted
EPS of $8.15 - $8.45)
- Second quarter organic sales are projected to decline 2% to 3%
over the prior year period
- Second quarter GAAP diluted EPS of $1.75 - $1.80 (adjusted
diluted EPS of $2.00 - $2.05)
IDEX Corporation (NYSE: IEX) today announced its financial
results for the three-month period ended March 31, 2024.
“Our IDEX teams delivered solid results in the first quarter,
expanding margins within our Fluid & Metering Technologies and
Fire & Safety / Diversified Products segments while driving
strong cash flow across the company,” said Eric D. Ashleman, IDEX
Corporation Chief Executive Officer and President.
“We experienced an encouraging lift in sequential orders from
our core industrial and municipal markets after an extended period
of destocking. The Health & Science Technologies segment
performed to expectations, but there are differing rates of
recovery within its targeted markets. We will deploy resources
accordingly to build momentum in these advantaged markets through
the remainder of the year.”
“We remain committed to creating superior long-term value by
aggressively deploying resources to drive growth both in our
current businesses and acquiring new businesses in advantaged
markets.”
Consolidated Financial
Results
Three Months Ended March
31,
(Dollars in millions, except per share
amounts)
2024
2023
Increase (Decrease)
Orders
$
820.3
$
825.5
$
(5.2
)
Change in organic orders*
(1
%)
Net sales
800.5
845.4
(44.9
)
Change in organic net sales*
(6
%)
Gross profit
357.4
382.5
(25.1
)
Adjusted gross profit*
359.9
382.5
(22.6
)
Net income attributable to IDEX
121.4
139.8
(18.4
)
Adjusted net income attributable to
IDEX*
143.2
158.6
(15.4
)
Adjusted EBITDA*
208.3
229.8
(21.5
)
Diluted EPS attributable to
IDEX
1.60
1.84
(0.24
)
Adjusted diluted EPS attributable to
IDEX*
1.88
2.09
(0.21
)
Cash flows from operating
activities
156.6
147.9
8.7
Free cash flow*
136.6
121.3
15.3
Gross margin
44.6
%
45.2
%
(60) bps
Adjusted gross margin*
45.0
%
45.2
%
(20) bps
Net income margin
15.2
%
16.5
%
(130) bps
Adjusted EBITDA margin*
26.0
%
27.2
%
(120) bps
*These are non-GAAP measures. See the
definitions of these non-GAAP measures in the section in this
release titled “Non-GAAP Measures of Financial Performance” and
reconciliations to their most directly comparable GAAP financial
measures in the reconciliation tables at the end of this
release.
- Organic net sales were down 6% primarily driven by lower
volumes in our Health & Science Technologies segment.
- Gross margin of 44.6% decreased 60 bps and Net income margin of
15.2% decreased 130 bps primarily due to lower volume leverage and
higher employee-related costs, partially offset by strong
price/cost and favorable operational productivity. Additionally,
these margins were unfavorably impacted by restructuring and fair
value inventory step-up charges, while lower interest expense and
lower income taxes benefited Net income margin.
- Adjusted gross margin of 45% decreased 20 bps and Adjusted
EBITDA margin of 26% decreased 120 bps excluding the impacts of
restructuring and fair value inventory step-up charges.
- Reported and Adjusted diluted EPS benefited from lower interest
expense and a discrete tax benefit recognized during the current
year period, which partly mitigated the impacts discussed
above.
Segment Financial
Results
Three Months Ended March 31,
(a)
2024
2023
Increase (Decrease)
Fluid &
Metering Technologies ("FMT")
Net sales
$
313.7
$
321.8
$
(8.1
)
Change in organic net sales*
(3
%)
Adjusted EBITDA(b)
105.4
106.2
(0.8
)
Adjusted EBITDA margin
33.6
%
33.0
%
60 bps
Health &
Science Technologies ("HST")
Net sales
$
310.1
$
351.0
$
(40.9
)
Change in organic net sales*
(13
%)
Adjusted EBITDA(b)
81.4
100.7
(19.3
)
Adjusted EBITDA margin
26.2
%
28.7
%
(250) bps
Fire &
Safety/Diversified Products ("FSDP")
Net sales
$
178.0
$
174.4
$
3.6
Change in organic net sales*
2
%
Adjusted EBITDA(b)
51.4
49.7
1.7
Adjusted EBITDA margin
28.9
%
28.5
%
40 bps
Corporate Office
and Eliminations
Intersegment sales eliminations
$
(1.3
)
$
(1.8
)
$
0.5
Adjusted EBITDA(b)
(29.9
)
(26.8
)
(3.1
)
*These are non-GAAP measures. See the
definitions of these non-GAAP measures in the section in this
release titled “Non-GAAP Measures of Financial Performance” and
reconciliations to their most directly comparable GAAP financial
measures in the reconciliation tables at the end of this
release.
(a) Three month data includes the results
of the acquisitions of Iridian Spectral Technologies (May 2023) and
STC Material Solutions (December 2023) in the HST segment. Three
month data also includes the results of Micropump, Inc. (August
2023) and Novotema, SpA (December 2023) in the HST segment through
the dates of disposition.
(b) Segment Adjusted EBITDA excludes
unallocated corporate costs which are included in Corporate Office
and Eliminations.
Fluid & Metering Technologies
Segment
- Organic net sales for the first quarter 2024 were negatively
impacted by lower volumes, primarily in the industrial markets,
largely driven by non-repeat of projects from the prior year and
greater reduction of backlog in the prior year. This decrease was
partially offset by price capture across all markets.
- Organic Adjusted EBITDA margin for the first quarter 2024
increased primarily due to favorable operational productivity and
strong price/cost, partially offset by lower volume leverage,
unfavorable mix, higher employee-related costs and higher
discretionary spending.
Health & Science Technologies
Segment
- Organic net sales for the first quarter 2024 were negatively
impacted by lower volumes, primarily in the analytical
instrumentation, life sciences and semiconductor markets, largely
driven by inventory recalibration and the carryover of market
slowness from 2023. This decrease was partially offset by price
capture across all markets.
- Organic Adjusted EBITDA margin for the first quarter 2024
decreased primarily due to lower volume leverage, higher
employee-related costs and unfavorable mix, partially offset by
favorable operational productivity, lower discretionary spending,
and strong price/cost.
Fire & Safety/Diversified Products
Segment
- Organic net sales for the first quarter 2024 were positively
impacted by price capture across all markets. Volumes were flat
period over period.
- Organic Adjusted EBITDA margin for the first quarter 2024
increased primarily due to strong price/cost and lower
discretionary spending, partially offset by higher employee-related
costs.
Conference Call to be Broadcast over
the Internet
IDEX will broadcast its first quarter earnings conference call
over the Internet on Wednesday, April 24, 2024 at 9:30 a.m. CT.
Chief Executive Officer and President Eric Ashleman and Senior Vice
President and Chief Financial Officer Abhi Khandelwal 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 available 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 #13742103.
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 second quarter 2024 and full year 2024
outlook including expected sales, expected organic sales, expected
earnings per share, expected adjusted earnings per share, estimated
net income and estimated adjusted EBITDA and the assumptions
underlying these expectations, anticipated future acquisition
behavior, resource deployment and focus and organic and inorganic
growth, anticipated trends in end markets, and the anticipated
benefits of the Company’s recent acquisitions, 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: levels of industrial activity and economic conditions in
the U.S. and other countries around the world, including
uncertainties in the financial markets; pricing pressures,
including inflation and rising interest rates, and other
competitive factors and levels of capital spending in certain
industries; the impact of catastrophic weather events, natural
disasters and public health threats; economic and political
consequences resulting from terrorist attacks and wars; the
Company’s ability to make acquisitions and to integrate and operate
acquired businesses on a profitable basis; cybersecurity incidents;
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 conditions; market conditions and material
costs; risks related to environmental, social and corporate
governance issues, including those related to climate change and
sustainability; 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 Securities and Exchange Commission (“SEC”) and the
other risks discussed in the Company’s filings with the SEC. The
forward-looking statements included here are only made as of the
date of this news release, and management undertakes no obligation
to publicly update them to reflect subsequent events or
circumstances, except as may be required by law. Investors are
cautioned not to rely unduly on forward-looking statements when
evaluating the information presented here.
About IDEX
IDEX (NYSE: IEX) makes thousands of products and
mission-critical components that improve everyday life all around
you. If you enjoy chocolate, it quite possibly passed through a
Viking® internal gear pump at the candy factory. If you were ever
in a car accident, emergency workers may have used the Hurst Jaws
of Life® rescue tool to save your life. If your doctor ordered a
DNA test to predict your risk of disease or determine a course of
treatment, the lab may have used equipment containing components
made by IDEX Health & Science. Founded in 1988 with three
small, entrepreneurial manufacturing companies, we’re proud to say
that we now call over 50 diverse businesses around the world part
of the IDEX family. With approximately 8,800 employees and
manufacturing operations in more than 20 countries, IDEX is a
high-performing, global company with approximately $3.3 billion in
annual 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 Income
(in millions, except per share
amounts)
(unaudited)
Three Months Ended March
31,
2024
2023
Net sales
$
800.5
$
845.4
Cost of sales
443.1
462.9
Gross profit
357.4
382.5
Selling, general and administrative
expenses
195.1
189.7
Restructuring expenses and asset
impairments
1.1
0.5
Operating income
161.2
192.3
Other (income) expense - net
(2.7)
(0.6)
Interest expense - net
9.4
13.1
Income before income taxes
154.5
179.8
Provision for income taxes
33.2
40.0
Net income
121.3
139.8
Net loss attributable to noncontrolling
interest
0.1
—
Net income attributable to IDEX
$
121.4
$
139.8
Earnings per Common Share:
Basic earnings per common share
attributable to IDEX
$
1.60
$
1.85
Diluted earnings per common share
attributable to IDEX
$
1.60
$
1.84
Share Data:
Basic weighted average common shares
outstanding
75.7
75.6
Diluted weighted average common shares
outstanding
75.9
75.9
IDEX CORPORATION
Condensed Consolidated Balance
Sheets
(in millions)
(unaudited)
March 31, 2024
December 31, 2023
Assets
Current assets
Cash and cash equivalents
$
616.3
$
534.3
Receivables - net
437.9
427.8
Inventories - net
426.0
420.8
Other current assets
74.3
63.4
Total current assets
1,554.5
1,446.3
Property, plant and equipment -
net
428.2
430.3
Goodwill
2,803.0
2,838.3
Intangible assets - net
969.1
1,011.8
Other noncurrent assets
134.6
138.5
Total assets
$
5,889.4
$
5,865.2
Liabilities and equity
Current liabilities
Trade accounts payable
$
185.8
$
179.7
Accrued expenses
274.1
271.5
Current portion of long-term
borrowings
0.7
0.6
Dividends payable
—
48.5
Total current liabilities
460.6
500.3
Long-term borrowings - net
1,322.9
1,325.1
Deferred income taxes
286.0
291.9
Other noncurrent liabilities
201.6
206.7
Total liabilities
2,271.1
2,324.0
Shareholders' equity
Preferred stock
—
—
Common stock
0.9
0.9
Additional paid-in capital
851.5
839.0
Retained earnings
4,055.7
3,934.3
Treasury stock
(1,179.3
)
(1,187.0
)
Accumulated other comprehensive
loss
(110.2
)
(45.8
)
Total shareholders' equity
3,618.6
3,541.4
Noncontrolling interest
(0.3
)
(0.2
)
Total equity
3,618.3
3,541.2
Total liabilities and equity
$
5,889.4
$
5,865.2
IDEX CORPORATION
Condensed Consolidated Statements
of Cash Flows
(in millions)
(unaudited)
Three Months Ended March
31,
2024
2023
Cash flows from operating
activities
Net income
$
121.3
$
139.8
Adjustments to reconcile net income to
net cash flows provided by operating activities:
Depreciation
16.2
12.8
Amortization of intangible
assets
24.6
23.6
Share-based compensation
expense
12.5
12.8
Deferred income taxes
0.2
(0.2
)
Changes in (net of the effect from
acquisitions and foreign currency translation):
Receivables - net
(12.2
)
(0.7
)
Inventories - net
(9.5
)
(23.3
)
Other current assets
(10.9
)
(11.1
)
Trade accounts payable
8.9
7.6
Deferred revenue
6.8
10.2
Accrued expenses
(1.5
)
(24.9
)
Other - net
0.2
1.3
Net cash flows provided by operating
activities
156.6
147.9
Cash flows from investing
activities
Capital expenditures
(20.0
)
(26.6
)
Purchases of marketable
securities
—
(3.2
)
Other - net
—
0.6
Net cash flows used in investing
activities
(20.0
)
(29.2
)
Cash flows from financing
activities
Cash dividends paid to
shareholders
(48.5
)
(45.5
)
Proceeds from share issuances, net of
shares withheld for taxes
7.7
0.3
Other - net
(0.2
)
—
Net cash flows used in financing
activities
(41.0
)
(45.2
)
Effect of exchange rate changes on cash
and cash equivalents
(13.6
)
7.0
Net increase in cash and cash
equivalents
82.0
80.5
Cash and cash equivalents at beginning
of year
534.3
430.2
Cash and cash equivalents at end of
period
$
616.3
$
510.7
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, as
identified in the reconciliations below. Reconciliations of
non-GAAP financial performance metrics to their most directly
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.
Due to rounding, numbers presented throughout this and other
documents may not add up or recalculate precisely. There were no
adjustments to GAAP financial performance metrics other than the
items noted below.
- Organic orders and net 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 net income attributable to IDEX is calculated as net
income attributable to IDEX plus fair value inventory step-up
charges, plus restructuring expenses and asset impairments, plus
acquisition-related intangible asset amortization, all net of the
statutory tax expense or benefit.
- Adjusted diluted EPS attributable to IDEX is calculated as
adjusted net income attributable to IDEX divided by the diluted
weighted average shares outstanding.
- Consolidated Adjusted EBITDA is calculated as consolidated
earnings before interest expense - net, taxes, depreciation and
amortization, or consolidated EBITDA, plus fair value inventory
step-up charges plus restructuring expenses and asset
impairments.
- Consolidated Adjusted EBITDA margin is calculated as
Consolidated Adjusted EBITDA divided by net sales.
- 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 March 31,
2024
FMT
HST
FSDP
IDEX
Change in net sales
(3
%)
(12
%)
2
%
(5
%)
Less:
Net impact from
acquisitions/divestitures(1)
—
%
1
%
—
%
1
%
Impact from foreign currency
—
%
—
%
—
%
—
%
Change in organic net sales
(3
%)
(13
%)
2
%
(6
%)
(1) Represents the sales from acquired or
divested businesses during the first 12 months of ownership or
prior to divestiture.
Table 2: Reconciliations of Reported-to-Adjusted Gross Profit
and Gross Margin (dollars in millions)
Three Months Ended March
31,
2024
2023
Gross profit
$
357.4
$
382.5
Fair value inventory step-up
charge
2.5
—
Adjusted gross profit
$
359.9
$
382.5
Net sales
$
800.5
$
845.4
Gross margin
44.6
%
45.2
%
Adjusted gross margin
45.0
%
45.2
%
Table 3: Reconciliations of Reported-to-Adjusted Net Income
Attributable to IDEX and Diluted EPS Attributable to IDEX (in
millions, other than per share amounts)
Three Months Ended March
31,
2024
2023
Reported net income attributable to
IDEX
$
121.4
$
139.8
Fair value inventory step-up
charge
2.5
—
Tax impact on fair value inventory
step-up charge
(0.5
)
—
Restructuring expenses and asset
impairments
1.1
0.5
Tax impact on restructuring expenses
and asset impairments
(0.3
)
(0.1
)
Acquisition-related intangible asset
amortization
24.6
23.6
Tax impact on acquisition-related
intangible asset amortization
(5.6
)
(5.2
)
Adjusted net income attributable to
IDEX
$
143.2
$
158.6
Reported diluted EPS attributable to
IDEX
$
1.60
$
1.84
Fair value inventory step-up
charge
0.03
—
Tax impact on fair value inventory
step-up charge
(0.01
)
—
Restructuring expenses and asset
impairments
0.01
0.01
Tax impact on restructuring expenses
and asset impairments
—
—
Acquisition-related intangible asset
amortization
0.32
0.31
Tax impact on acquisition-related
intangible asset amortization
(0.07
)
(0.07
)
Adjusted diluted EPS attributable to
IDEX
$
1.88
$
2.09
Diluted weighted average shares
outstanding
75.9
75.9
Table 4: Reconciliations of Net Income to Adjusted EBITDA
(dollars in millions)
Three Months Ended March
31,
2024
2023
FMT
HST
FSDP
Corporate
IDEX
FMT
HST
FSDP
Corporate
IDEX
Reported net income
$
—
$
—
$
—
$
—
$
121.3
$
—
$
—
$
—
$
—
$
139.8
Provision for income taxes
—
—
—
—
33.2
—
—
—
—
40.0
Interest expense - net
—
—
—
—
9.4
—
—
—
—
13.1
Other (income) expense - net
—
—
—
—
(2.7
)
—
—
—
—
(0.6
)
Operating income (loss)
94.8
49.2
47.7
(30.5
)
161.2
96.5
77.5
46.0
(27.7
)
192.3
Other income (expense) - net
0.5
2.1
(0.2
)
0.3
2.7
0.5
(0.3
)
(0.2
)
0.6
0.6
Depreciation
4.3
9.4
2.3
0.2
16.2
3.1
7.3
2.1
0.3
12.8
Amortization
5.3
17.7
1.6
—
24.6
6.0
15.9
1.7
—
23.6
Fair value inventory step-up
charge
—
2.5
—
—
2.5
—
—
—
—
—
Restructuring expenses and asset
impairments
0.5
0.5
—
0.1
1.1
0.1
0.3
0.1
—
0.5
Adjusted EBITDA
$
105.4
$
81.4
$
51.4
$
(29.9
)
$
208.3
$
106.2
$
100.7
$
49.7
$
(26.8
)
$
229.8
Net sales (eliminations)
$
313.7
$
310.1
$
178.0
$
(1.3
)
$
800.5
$
321.8
$
351.0
$
174.4
$
(1.8
)
$
845.4
Net income margin
15.2
%
16.5
%
Adjusted EBITDA margin
33.6
%
26.2
%
28.9
%
n/m
26.0
%
33.0
%
28.7
%
28.5
%
n/m
27.2
%
Table 5: Reconciliations of Cash Flows from Operating
Activities to Free Cash Flow (dollars in millions)
Three Months Ended March
31,
2024
2023
Cash flows from operating
activities
$
156.6
$
147.9
Less: Capital expenditures
20.0
26.6
Free cash flow
$
136.6
$
121.3
Table 6: Reconciliation of Estimated 2024 Change in Net Sales
to Change in Organic Net Sales
Guidance
Second Quarter 2024
Full Year 2024
Low End
High End
Low End
High End
Change in net sales
(3
%)
(2
%)
1
%
3
%
Less:
Net impact from
acquisitions/divestitures
—
%
—
%
1
%
1
%
Impact from foreign currency
—
%
—
%
—
%
—
%
Change in organic net sales
(3
%)
(2
%)
—
%
2
%
Table 7: Reconciliation of Estimated 2024 Diluted EPS
Attributable to IDEX to Adjusted Diluted EPS Attributable to
IDEX
Guidance
Second Quarter 2024
Full Year 2024
Estimated diluted EPS attributable to
IDEX
$1.75 - $1.80
$7.13 - $7.43
Fair value inventory step-up
charge
—
0.03
Tax impact on fair value inventory
step-up charge
—
(0.01)
Restructuring expenses and asset
impairments
—
0.01
Tax impact on restructuring expenses
and asset impairments
—
—
Acquisition-related intangible asset
amortization
0.32
1.28
Tax impact on acquisition-related
intangible asset amortization
(0.07)
(0.29)
Estimated adjusted diluted EPS
attributable to IDEX
$2.00 - $2.05
$8.15 - $8.45
Table 8: Reconciliation of Estimated 2024 Net Income to
Adjusted EBITDA (dollars in millions)
Guidance
Second Quarter 2024
Full Year 2024
Low End
High End
Low End
High End
Reported net income
$
133.3
$
136.4
$
541.5
$
564.5
Provision for income taxes
39.8
40.8
162.0
168.9
Interest expense - net
10.4
10.4
42.6
42.6
Depreciation
17.4
17.4
70.8
70.8
Amortization of intangible
assets
24.2
24.2
97.5
97.5
Fair value inventory step-up
charge
—
—
2.5
2.5
Restructuring expenses and asset
impairments
—
—
1.1
1.1
Adjusted EBITDA
$
225.1
$
229.2
$
918.0
$
947.9
Net sales
$
819.1
$
828.1
$
3,320.3
$
3,385.6
Net income margin
16.3
%
16.5
%
16.3
%
16.7
%
Adjusted EBITDA margin
27.5
%
27.7
%
27.6
%
28.0
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240423003033/en/
Investor Contact: Wendy Palacios Vice President FP&A
and Investor Relations (847) 498-7070
IDEX (NYSE:IEX)
과거 데이터 주식 차트
부터 10월(10) 2024 으로 11월(11) 2024
IDEX (NYSE:IEX)
과거 데이터 주식 차트
부터 11월(11) 2023 으로 11월(11) 2024
