IDEX Reports Second Quarter Results; Raises Full Year Guidance | Financial Buzz

IDEX Reports Second Quarter Results; Raises Full Year Guidance

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

Second Quarter 2021 Highlights

  • Record orders of $751.0 million up 44 percent overall and 39 percent organically compared to Q2 2020
  • Record sales of $685.9 million up 22 percent overall and 17 percent organically compared to Q2 2020
  • Reported operating margin was 23.1 percent with adjusted operating margin of 24.4 percent
  • Reported EPS was $1.34 with adjusted EPS of $1.61
  • Full year adjusted EPS guidance raised to $6.26 to $6.36 compared to prior guidance of $6.05 to $6.20
  • Finalized the termination of the U.S. pension plan and refinanced the 4.2% Senior Notes to 2.625%
  • Completed the acquisition of Airtech Group, Inc., US Valve Corporation and related entities (Airtech)

Second Quarter 2021

Orders of $751.0 million were up 44 percent compared with the prior year period (+39 percent organic, +1 percent acquisitions/divestitures and +4 percent foreign currency translation).

Sales of $685.9 million were up 22 percent compared with the prior year period (+17 percent organic, +1 percent acquisitions/divestitures and +4 percent foreign currency translation).

Gross margin of 44.6 percent was up 280 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. Excluding the $1.8 million pre-tax fair value inventory step-up charge related to our first quarter acquisition of ABEL Pumps, L.P. and certain of its affiliates (ABEL Pumps), adjusted gross margin of 44.9 percent was up 230 basis points compared with the adjusted prior year period.

Operating income of $158.3 million resulted in an operating margin of 23.1 percent, which was up 340 basis points compared with the prior year period primarily as a result of higher volume and price capture, partially offset by inflation, supply chain constraints, a recovery in discretionary spending and a charge related to recording a contingent reserve for a Corporate transaction indemnity. Excluding the $1.8 million pre-tax fair value inventory step-up charge, $3.1 million of restructuring expenses and asset impairments and the $3.9 million charge related to recording a contingent reserve for a Corporate transaction indemnity, adjusted operating income was $167.1 million with an adjusted operating margin of 24.4 percent, up 330 basis points compared with the adjusted prior year period.

Provision for income taxes of $27.7 million in the second quarter of 2021 resulted in an effective tax rate (ETR) of 21.3 percent, which was lower than the prior year period ETR of 22.7 percent primarily due to benefits from foreign sourced income in the second quarter of 2021.

Net income attributable to IDEX was $102.2 million, which resulted in EPS attributable to IDEX of $1.34. Excluding the fair value inventory step-up charge, restructuring expenses and asset impairments, the charge related to recording a contingent reserve for a Corporate transaction indemnity, loss on early debt redemption and the noncash loss related to the termination of the U.S. pension plan, adjusted EPS attributable to IDEX was $1.61, an increase of 51 cents, or 46.4 percent, from the prior year period. EBITDA of $165.5 million was 24.1 percent of sales and covered interest expense by almost 15 times. Adjusted EBITDA of $192.6 million was 28.1 percent of sales and covered interest expense by over 17 times.

Cash from operations of $136.3 million was down 20 percent from the prior year period primarily due to volume driven increases in working capital and timing of tax payments, partially offset by higher earnings, and was 133 percent of net income attributable to IDEX. Cash from operations led to free cash flow of $120.3 million, which was down 25 percent from the prior year period and was 98 percent of adjusted net income attributable to IDEX.

“Our recovery from the COVID-19 pandemic continues as orders of $751 million and sales of $686 million reached record levels in the second quarter. Backlog is at a record level resulting from strong demand across all segments and geographies, with $65 million added in the second quarter. I want to thank all IDEX team members across the globe who are dealing with many obstacles associated with this recovery. Global supply chain constraints, component shortages and inflation are daily challenges, but the teams continue to deliver for our customers, and IDEX continues to perform extremely well. Our price capture continues to outpace material inflation and we drove strong flow through of 39 percent, resulting in an adjusted operating margin of 24.4 percent and a record adjusted EPS of $1.61.

 

 

We deployed a significant amount of capital in the first half of the year. We invested over $575 million in M&A, including the acquisition of Airtech in the second quarter. We also raised our quarterly dividend by 8 percent to $0.54 per share and increased capital spending in our businesses by 45 percent compared to the first half of 2020. Our balance sheet remains healthy as we have over $2.0 billion available to us for potential investments in additional strategic M&A and organic growth initiatives over the next 12 months.

 

 

Based on the continued strength in orders across our portfolio, record backlog and incremental pricing actions, we are now projecting 11 to 12 percent organic sales growth for the full year 2021, with a 14 to 16 percent organic sales increase in the third quarter. Full year 2021 adjusted EPS is now projected to be $6.26 to $6.36, with third quarter adjusted EPS of $1.57 to $1.61. This includes 6 cents in the second half of the year attributable to the Airtech acquisition.”

 

 

 

 

Eric D. Ashleman

 

Chief Executive Officer and President

Second Quarter 2021 Segment Highlights

Fluid & Metering Technologies

  • Sales of $251.3 million reflected a 15 percent increase compared to the second quarter of 2020 (+8 percent organic, +4 percent acquisition and +3 percent foreign currency translation).
  • Operating income of $63.5 million resulted in an operating margin of 25.3 percent, which was up 210 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 a recovery in discretionary spending. Excluding the $1.8 million pre-tax fair value inventory step-up charge and $1.9 million of restructuring expenses and asset impairments, adjusted operating income was $67.2 million with an adjusted operating margin of 26.7 percent, a 70 basis point increase compared to the prior year period.
  • EBITDA of $65.8 million resulted in an EBITDA margin of 26.2 percent. Excluding the $1.8 million pre-tax fair value inventory step-up charge, $1.9 million of restructuring expenses and asset impairments and a $6.3 million noncash loss related to the termination of the U.S. pension plan, adjusted EBITDA of $75.9 million resulted in an adjusted EBITDA margin of 30.2 percent, a 110 basis point increase compared to the prior year period.

Health & Science Technologies

  • Sales of $275.0 million reflected a 28 percent increase compared to the second quarter of 2020 (+25 percent organic, -1 percent divestiture and +4 percent foreign currency translation).
  • Operating income of $76.0 million resulted in an operating margin of 27.6 percent, which was up 530 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 a recovery in discretionary spending. Excluding $0.4 million of restructuring expenses and asset impairments, adjusted operating income was $76.4 million with an adjusted operating margin of 27.8 percent, a 500 basis point increase compared to the prior year period.
  • EBITDA of $88.2 million resulted in an EBITDA margin of 32.1 percent. Excluding $0.4 million of restructuring expenses and asset impairments, adjusted EBITDA of $88.6 million resulted in an adjusted EBITDA margin of 32.2 percent, a 500 basis point increase compared to the prior year period.

Fire & Safety/Diversified Products

  • Sales of $160.8 million reflected a 27 percent increase compared to the second quarter of 2020 (+22 percent organic and +5 percent foreign currency translation).
  • Operating income of $42.8 million resulted in an operating margin of 26.6 percent, which was up 390 basis points compared with the prior year period primarily as a result of higher volume and price capture, partially offset by inflation, supply chain constraints and a recovery in discretionary spending. Excluding $0.1 million of restructuring expenses and asset impairments, adjusted operating income was $42.9 million with an adjusted operating margin of 26.7 percent, a 350 basis point increase compared to the prior year period.
  • EBITDA of $44.6 million resulted in an EBITDA margin of 27.7 percent. Excluding $0.1 million of restructuring expenses and asset impairments and a $1.8 million noncash loss related to the termination of the U.S. pension plan, adjusted EBITDA of $46.5 million resulted in an adjusted EBITDA margin of 28.9 percent, a 280 basis point increase compared to the prior year period.

Corporate Costs

Corporate costs increased to $24.0 million in the second quarter of 2021 from $17.2 million in the second quarter of 2020 primarily as a result of the charge related to recording a contingent reserve for a Corporate transaction indemnity as well as higher professional fees related to acquisitions and a strategy project.

Debt Offering and Redemption

On May 17, 2021, the Company completed a public offering of $500.0 million 2.625% Senior Notes due June 15, 2031. The net proceeds from the offering were $494.8 million. The net proceeds were used to redeem and repay the $350.0 million 4.2% Senior Notes due December 15, 2021 and the related “make-whole” redemption premium of $6.7 million, with the remaining balance used for general corporate purposes. The Company also recognized $1.9 million of deferred costs related to the 4.2% Senior Notes for a total loss on early debt redemption of $8.6 million, which was recorded within Other (income) expense – net.

Acquisition

On June 14, 2021, the Company acquired Airtech. Airtech designs and manufactures a wide range of highly-engineered pressure technology products, including vacuum pumps, regenerative blowers, compressor systems and valves for a variety of end markets, including alternative energy, food processing, medical, packaging and transportation. Headquartered in Rutherford, New Jersey, with manufacturing operations in Werneck, Germany and Shenzhen, China, Airtech operates in our Performance Pneumatic Technologies reporting unit within the Health & Science Technologies segment. Airtech was acquired for cash consideration of $469.3 million. The entire purchase price was funded with cash on hand.

Termination of U.S. Pension Plan

On June 17, 2021, the Company settled its remaining obligations under the U.S. pension plan through a combination of lump-sum payments to eligible participants who elected them, and through the purchase of annuities from Legal and General, an A rated third-party insurer. The Company recognized a net loss of $9.7 million which was recorded within Other (income) expense – net. The net loss consisted of $10.7 million related to previously deferred pension related costs, partially offset by $1.0 million related to an increase in plan assets remaining after the settlement.

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, loss on early debt redemption, noncash loss related to the termination of the U.S. pension plan and a charge related to recording a contingent reserve 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 a charge related to recording a contingent reserve 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 a charge related to recording a contingent reserve 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 a charge related to recording a contingent reserve 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 June 30, 2021

 

Six Months Ended June 30, 2021

 

FMT

 

HST

 

FSDP

 

IDEX

 

FMT

 

HST

 

FSDP

 

IDEX

Change in net sales

15

%

 

28

%

 

27

%

 

22

%

 

11

%

 

19

%

 

18

%

 

16

%

– Net impact from acquisitions/divestitures

4

%

 

(1

%)

 

%

 

1

%

 

3

%

 

%

 

%

 

1

%

– Impact from FX

3

%

 

4

%

 

5

%

 

4

%

 

3

%

 

3

%

 

4

%

 

4

%

Change in organic net sales

8

%

 

25

%

 

22

%

 

17

%

 

5

%

 

16

%

 

14

%

 

11

%

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

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2021

 

2020

 

2021

 

2020

Gross profit

$

306,072

 

 

$

234,800

 

 

$

598,695

 

 

$

506,756

 

+ Fair value inventory step-up charge

1,822

 

 

4,107

 

 

2,486

 

 

4,107

 

Adjusted gross profit

$

307,894

 

 

$

238,907

 

 

$

601,181

 

 

$

510,863

 

 

 

 

 

 

 

 

 

Net sales

$

685,947

 

 

$

561,249

 

 

$

1,337,983

 

 

$

1,155,711

 

 

 

 

 

 

 

 

 

Gross margin

44.6

%

 

41.8

%

 

44.7

%

 

43.8

%

Adjusted gross margin

44.9

%

 

42.6

%

 

44.9

%

 

44.2

%

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

2021

 

2020

 

FMT

 

HST

 

FSDP

 

Corporate

 

IDEX

 

FMT

 

HST

 

FSDP

 

Corporate

 

IDEX

Reported operating income (loss)

$

63,467

 

 

$

75,963

 

 

$

42,797

 

 

$

(23,971)

 

 

$

158,256

 

 

$

50,938

 

 

$

48,007

 

 

$

28,837

 

 

$

(17,188)

 

 

$

110,594

 

+ Restructuring expenses and asset impairments

1,910

 

 

442

 

 

119

 

 

665

 

 

3,136

 

 

1,848

 

 

1,184

 

 

641

 

 

168

 

 

3,841

 

+ Fair value inventory step-up charge

1,822

 

 

 

 

 

 

 

 

1,822

 

 

4,107

 

 

 

 

 

 

 

 

4,107

 

+ Corporate transaction indemnity

 

 

 

 

 

 

3,900

 

 

3,900

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating income (loss)

$67,199

 

$76,405

 

$42,916

 

$(19,406)

 

$167,114

 

$56,893

 

$49,191

 

$29,478

 

$(17,020)

 

$118,542

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales (eliminations)

$

251,277

 

 

$

275,012

 

 

$

160,812

 

 

$

(1,154)

 

 

$

685,947

 

 

$

219,112

 

 

$

215,668

 

 

$

127,076

 

 

$

(607)

 

 

$

561,249

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported operating margin

25.3

%

 

27.6

%

 

26.6

%

 

n/m

 

23.1

%

 

23.2

%

 

22.3

%

 

22.7

%

 

n/m

 

19.7

%

Adjusted operating margin

26.7

%

 

27.8

%

 

26.7

%

 

n/m

 

24.4

%

 

26.0

%

 

22.8

%

 

23.2

%

 

n/m

 

21.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30,

 

2021

 

2020

 

FMT

 

HST

 

FSDP

 

Corporate

 

IDEX

 

FMT

 

HST

 

FSDP

 

Corporate

 

IDEX

Reported operating income

(loss)

$

126,364

 

 

$

142,613

 

 

$

87,357

 

 

$

(42,531)

 

 

$

313,803

 

 

$

117,709

 

 

$

100,650

 

 

$

66,874

 

 

$

(34,698)

 

 

$

250,535

 

+ Restructuring expenses and

asset impairments

2,853

 

 

1,067

 

 

216

 

 

1,228

 

 

5,364

 

 

1,848

 

 

1,184

 

 

641

 

 

168

 

 

3,841

 

+ Fair value inventory step-up

charge

2,486

 

 

 

 

 

 

 

 

2,486

 

 

4,107

 

 

 

 

 

 

 

 

4,107

 

+ Corporate transaction

indemnity

 

 

 

 

 

 

3,900

 

 

3,900

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating income

(loss)

$131,703

 

$143,680

 

$87,573

 

$(37,403)

 

$325,553

 

$123,664

 

$101,834

 

$67,515

 

$(34,530)

 

$258,483

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales (eliminations)

$

494,642

 

 

$

525,381

 

 

$

320,296

 

 

$

(2,336)

 

 

$

1,337,983

 

 

$

445,973

 

 

$

439,727

 

 

$

271,400

 

 

$

(1,389)

 

 

$

1,155,711

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported operating margin

25.5

%

 

27.1

%

 

27.3

%

 

n/m

 

23.5

%

 

26.4

%

 

22.9

%

 

24.6

%

 

n/m

 

21.7

%

Adjusted operating margin

26.6

%

 

27.3

%

 

27.3

%

 

n/m

 

24.3

%

 

27.7

%

 

23.2

%

 

24.9

%

 

n/m

 

22.4

%

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

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2021

 

2020

 

2021

 

2020

Reported net income attributable to IDEX

$

102,195

 

 

$

70,864

 

 

$

214,903

 

 

$

172,862

 

+ Restructuring expenses and asset impairments

3,136

 

 

3,841

 

 

5,364

 

 

3,841

 

+ Tax impact on restructuring expenses and asset impairments

(756)

 

 

(837)

 

 

(1,289)

 

 

(837)

 

+ Fair value inventory step-up charge

1,822

 

 

4,107

 

 

2,486

 

 

4,107

 

+ Tax impact on fair value inventory step-up charge

(547)

 

 

(932)

 

 

(746)

 

 

(932)

 

+ Loss on early debt redemption

8,561

 

 

8,421

 

 

8,561

 

 

8,421

 

+ Tax impact on loss on early debt redemption

(1,841)

 

 

(1,912)

 

 

(1,841)

 

 

(1,912)

 

+ Termination of the U.S. pension plan

9,688

 

 

 

 

9,688

 

 

 

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

(2,083)

 

 

 

 

(2,083)

 

 

 

+ Corporate transaction indemnity

3,900

 

 

 

 

3,900

 

 

 

+ Tax impact on Corporate transaction indemnity

(839)

 

 

 

 

(839)

 

 

 

Adjusted net income attributable to IDEX

$

123,236

 

 

$

83,552

 

 

$

238,104

 

 

$

185,550

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2021

 

2020

 

2021

 

2020

Reported diluted EPS attributable to IDEX

$

1.34

 

 

$

0.93

 

 

$

2.81

 

 

$

2.27

 

+ Restructuring expenses and asset impairments

0.04

 

 

0.05

 

 

0.07

 

 

0.05

 

+ Tax impact on restructuring expenses and asset impairments

(0.01)

 

 

(0.01)

 

 

(0.02)

 

 

(0.01)

 

+ Fair value inventory step-up charge

0.02

 

 

0.05

 

 

0.03

 

 

0.05

 

+ Tax impact on fair value inventory step-up charge

(0.01)

 

 

(0.01)

 

 

(0.01)

 

 

(0.01)

 

+ Loss on early debt redemption

0.11

 

 

0.11

 

 

0.11

 

 

0.11

 

+ Tax impact on loss on early debt redemption

(0.02)

 

 

(0.02)

 

 

(0.02)

 

 

(0.02)

 

+ Termination of the U.S. pension plan

0.13

 

 

 

 

0.13

 

 

 

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

(0.03)

 

 

 

 

(0.03)

 

 

 

+ Corporate transaction indemnity

0.05

 

 

 

 

0.05

 

 

 

+ Tax impact on Corporate transaction indemnity

(0.01)

 

 

 

 

(0.01)

 

 

 

Adjusted diluted EPS attributable to IDEX

$

1.61

 

 

$

1.10

 

 

$

3.11

 

 

$

2.44

 

 

 

 

 

 

 

 

 

Diluted weighted average shares outstanding

76,429

 

 

75,937

 

 

76,385

 

 

76,198

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

2021

 

2020

 

FMT

 

HST

 

FSDP

 

Corporate

 

IDEX

 

FMT

 

HST

 

FSDP

 

Corporate

 

IDEX

Reported operating income (loss)

$

63,467

 

 

$

75,963

 

 

$

42,797

 

 

$

(23,971)

 

 

$

158,256

 

 

$

50,938

 

 

$

48,007

 

 

$

28,837

 

 

$

(17,188)

 

 

$

110,594

 

– Other (income) expense – net

5,575

 

 

291

 

 

2,054

 

 

9,255

 

 

17,175

 

 

(82)

 

 

472

 

 

123

 

 

5,947

 

 

6,460

 

+ Depreciation and amortization

7,953

 

 

12,534

 

 

3,851

 

 

111

 

 

24,449

 

 

6,809

 

 

9,917

 

 

3,796

 

 

104

 

 

20,626

 

EBITDA

65,845

 

 

88,206

 

 

44,594

 

 

(33,115)

 

 

165,530

 

 

57,829

 

 

57,452

 

 

32,510

 

 

(23,031)

 

 

124,760

– Interest expense

 

 

 

 

 

 

 

 

11,205

 

 

 

 

 

 

 

 

 

 

12,439

– Provision for income taxes

 

 

 

 

 

 

 

 

27,697

 

 

 

 

 

 

 

 

 

 

20,831

– Depreciation and amortization

 

 

 

 

 

 

 

 

24,449

 

 

 

 

 

 

 

 

 

 

20,626

Reported net income

 

 

 

 

 

 

 

 

$

102,179

 

 

 

 

 

 

 

 

 

 

$70,864

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales (eliminations)

$251,277

 

$275,012

 

$160,812

 

$(1,154)

 

$685,947

 

$219,112

 

$215,668

 

$127,076

 

$(607)

 

$561,249

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported operating margin

25.3

%

 

27.6

%

 

26.6

%

 

n/m

 

23.1

%

 

23.2

%

 

22.3

%

 

22.7

%

 

n/m

 

19.7

%

EBITDA margin

26.2

%

 

32.1

%

 

27.7

%

 

n/m

 

24.1

%

 

26.4

%

 

26.6

%

 

25.6

%

 

n/m

 

22.2

%

EBITDA interest coverage

 

 

 

 

 

 

 

 

14.8

 

 

 

 

 

 

 

 

 

10.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30,

 

2021

 

2020

 

FMT

 

HST

 

FSDP

 

Corporate

 

IDEX

 

FMT

 

HST

 

FSDP

 

Corporate

 

IDEX

Reported operating income (loss)

$126,364

 

$142,613

 

$87,357

 

$(42,531)

 

$313,803

 

$117,709

 

$100,650

 

$66,874

 

$(34,698)

 

$250,535

– Other (income) expense – net

5,584

 

(54)

 

1,783

 

9,014

 

16,327

 

684

 

(59)

 

(192)

 

7,592

 

8,025

+ Depreciation and amortization

15,006

 

23,047

 

7,723

 

217

 

45,993

 

12,207

 

20,576

 

7,555

 

285

 

40,623

EBITDA

135,786

 

165,714

 

93,297

 

(51,328)

 

343,469

 

129,232

 

121,285

 

74,621

 

(42,005)

 

283,133

– Interest expense

 

 

 

 

 

 

 

 

21,981

 

 

 

 

 

 

 

 

 

23,316

– Provision for income taxes

 

 

 

 

 

 

 

 

60,644

 

 

 

 

 

 

 

 

 

46,332

– Depreciation and amortization

 

 

 

 

 

 

 

 

45,993

 

 

 

 

 

 

 

 

 

40,623

Reported net income

 

 

 

 

 

 

 

 

$214,851

 

 

 

 

 

 

 

 

 

$172,862

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales (eliminations)

$494,642

 

$525,381

 

$320,296

 

$(2,336)

 

$1,337,983

 

$445,973

 

$439,727

 

$271,400

 

$(1,389)

 

$1,155,711

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported operating margin

25.5

%

 

27.1

%

 

27.3

%

 

n/m

 

23.5

%

 

26.4

%

 

22.9

%

 

24.6

%

 

n/m

 

21.7

%

EBITDA margin

27.5

%

 

31.5

%

 

29.1

%

 

n/m

 

25.7

%

 

29.0

%

 

27.6

%

 

27.5

%

 

n/m

 

24.5

%

EBITDA interest coverage

 

 

 

 

 

 

 

 

15.6

 

 

 

 

 

 

 

 

 

12.1

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

2021

 

2020

 

FMT

 

HST

 

FSDP

 

Corporate

 

IDEX

 

FMT

 

HST

 

FSDP

 

Corporate

 

IDEX

EBITDA(1)

$65,845

 

$88,206

 

$44,594

 

$(33,115)

 

$165,530

 

$57,829

 

$57,452

 

$32,510

 

$(23,031)

 

$124,760

+ Restructuring expenses and asset impairments

1,910

 

442

 

119

 

665

 

3,136

 

1,848

 

1,184

 

641

 

168

 

3,841

+ Fair value inventory step-up charge

1,822

 

 

 

 

1,822

 

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

 

 

 

3,900

 

3,900

 

 

 

 

 

Adjusted EBITDA

$75,870

 

$88,648

 

$46,495

 

$(18,376)

 

$192,637

 

$63,784

 

$58,636

 

$33,151

 

$(14,442)

 

$141,129

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA margin

30.2

%

 

32.2

%

 

28.9

%

 

n/m

 

28.1

%

 

29.1

%

 

27.2

%

 

26.1

%

 

n/m

 

25.1

%

Adjusted EBITDA interest coverage

 

 

 

 

 

 

 

 

17.2

 

 

 

 

 

 

 

 

 

11.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30,

 

2021

 

2020

 

FMT

 

HST

 

FSDP

 

Corporate

 

IDEX

 

FMT

 

HST

 

FSDP

 

Corporate

 

IDEX

EBITDA(1)

$135,786

 

$165,714

 

$93,297

 

$(51,328)

 

$343,469

 

$129,232

 

$121,285

 

$74,621

 

$(42,005)

 

$283,133

+ Restructuring expenses and asset impairments

2,853

 

1,067

 

216

 

1,228

 

5,364

 

1,848

 

1,184

 

641

 

168

 

3,841

+ Fair value inventory step-up charge

2,486

 

 

 

 

2,486

 

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

 

 

 

3,900

 

3,900

 

 

 

 

 

Adjusted EBITDA

$147,418

 

$166,781

 

$95,295

 

$(36,026)

 

$373,468

 

$135,187

 

$122,469

 

$75,262

 

$(33,416)

 

$299,502

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA margin

29.8

%

 

31.7

%

 

29.8

%

 

n/m

 

27.9

%

 

30.3

%

 

27.9

%

 

27.7

%

 

n/m

 

25.9

%

Adjusted EBITDA interest coverage

 

 

 

 

 

 

 

 

17.0

 

 

 

 

 

 

 

 

 

12.8

 

(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

 

Six Months Ended

 

June 30,

 

March 31,

 

June 30,

 

2021

 

2020

 

2021

 

2021

 

2020

Cash flows from operating activities

$

136,272

 

 

$

169,453

 

 

$

109,324

 

 

$

245,596

 

 

$

254,213

 

– Capital expenditures

15,984

 

 

8,323

 

 

14,609

 

 

30,593

 

 

21,085

 

Free cash flow

$

120,288

 

 

$

161,130

 

 

$

94,715

 

 

$

215,003

 

 

$

233,128

 

Conference Call to be Broadcast over the Internet

IDEX will broadcast its second quarter earnings conference call over the Internet on Wednesday, July 28, 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 #13712090.

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 the anticipated benefits of the Company’s acquisitions of both 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, particularly in light of the low levels of order backlogs it typically maintains; 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; 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 growing 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 nearly $2.5 billion company 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

June 30,

 

Six Months Ended

June 30,

 

2021

 

2020

 

2021

 

2020

Net sales

$

685,947

 

 

$

561,249

 

 

$

1,337,983

 

 

$

1,155,711

 

Cost of sales

379,875

 

 

326,449

 

 

739,288

 

 

648,955

 

Gross profit

306,072

 

 

234,800

 

 

598,695

 

 

506,756

 

Selling, general and administrative expenses

144,680

 

 

120,365

 

 

279,528

 

 

252,380

 

Restructuring expenses and asset impairments

3,136

 

 

3,841

 

 

5,364

 

 

3,841

 

Operating income

158,256

 

 

110,594

 

 

313,803

 

 

250,535

 

Other (income) expense – net

17,175

 

 

6,460

 

 

16,327

 

 

8,025

 

Interest expense

11,205

 

 

12,439

 

 

21,981

 

 

23,316

 

Income before income taxes

129,876

 

 

91,695

 

 

275,495

 

 

219,194

 

Provision for income taxes

27,697

 

 

20,831

 

 

60,644

 

 

46,332

 

Net income

$

102,179

 

 

$

70,864

 

 

$

214,851

 

 

$

172,862

 

Net (income) loss attributable to noncontrolling interest

16

 

 

 

 

52

 

 

 

Net income attributable to IDEX

$

102,195

 

 

$

70,864

 

 

$

214,903

 

 

$

172,862

 

 

 

 

 

 

 

 

 

Earnings per Common Share:

 

 

 

 

 

 

 

Basic earnings per common share attributable to IDEX

$

1.34

 

 

$

0.94

 

 

$

2.83

 

 

$

2.29

 

Diluted earnings per common share attributable to IDEX

$

1.34

 

 

$

0.93

 

 

$

2.81

 

 

$

2.27

 

 

 

 

 

 

 

 

 

Share Data:

 

 

 

 

 

 

 

Basic weighted average common shares outstanding

75,968

 

 

75,171

 

 

75,930

 

 

75,459

 

Diluted weighted average common shares outstanding

76,429

 

 

75,937

 

 

76,385

 

 

76,198

 

 

IDEX CORPORATION

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

 

 

June 30, 2021

 

December 31, 2020

Assets

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

714,380

 

 

$

1,025,851

 

Receivables – net

356,469

 

 

293,146

 

Inventories

360,079

 

 

289,910

 

Other current assets

62,761

 

 

48,324

 

Total current assets

1,493,689

 

 

1,657,231

 

Property, plant and equipment – net

313,353

 

 

298,273

 

Goodwill and intangible assets

2,837,156

 

 

2,311,137

 

Other noncurrent assets

138,799

 

 

147,757

 

Total assets

$

4,782,997

 

 

$

4,414,398

 

 

 

 

 

Liabilities and equity

 

 

 

Current liabilities

 

 

 

Trade accounts payable

$

178,796

 

 

$

151,993

 

Accrued expenses

230,426

 

 

208,828

 

Short-term borrowings

41

 

 

88

 

Dividends payable

41,096

 

 

38,149

 

Total current liabilities

450,359

 

 

399,058

 

Long-term borrowings

1,189,828

 

 

1,044,354

 

Other noncurrent liabilities

469,946

 

 

430,660

 

Total liabilities

2,110,133

 

 

1,874,072

 

Shareholders’ equity

2,672,796

 

 

2,540,203

 

Noncontrolling interest

68

 

 

123

 

Total equity

2,672,864

 

 

2,540,326

 

Total liabilities and equity

$

4,782,997

 

 

$

4,414,398

 

 

 

IDEX CORPORATION

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

 

Six Months Ended June 30,

 

2021

 

2020

Cash flows from operating activities

 

 

 

Net income

$

214,851

 

 

$

172,862

 

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

 

 

 

Asset impairments

226

 

 

 

Depreciation and amortization

21,480

 

 

20,591

 

Amortization of intangible assets

24,513

 

 

20,032

 

Amortization of debt issuance expenses

961

 

 

976

 

Share-based compensation expense

13,245

 

 

13,665

 

Deferred income taxes

(13,982)

 

 

2,421

 

Non-cash interest expense associated with forward starting swaps

3,275

 

 

4,284

 

Termination of the U.S. pension plan

9,688

 

 

 

Changes in (net of the effect from acquisitions):

 

 

 

Receivables

(46,257)

 

 

34,253

 

Inventories

(20,936)

 

 

(9,529)

 

Other current assets

125

 

 

(18,421)

 

Trade accounts payable

22,569

 

 

(6,842)

 

Deferred revenue

15,502

 

 

20,346

 

Accrued expenses

1,217

 

 

(3,084)

 

Other – net

(881)

 

 

2,659

 

Net cash flows provided by operating activities

245,596

 

 

254,213

 

Cash flows from investing activities

 

 

 

Purchases of property, plant and equipment

(30,593)

 

 

(21,085)

 

Acquisition of businesses, net of cash acquired

(575,606)

 

 

(120,839)

 

Note receivable from collaborative partner

(4,200)

 

 

 

Proceeds from disposal of fixed assets

242

 

 

2,114

 

Other – net

905

 

 

(636)

 

Net cash flows used in investing activities

(609,252)

 

 

(140,446)

 

Cash flows from financing activities

 

 

 

Borrowings under revolving credit facilities

 

 

150,000

 

Proceeds from issuance of 3.0% Senior Notes

 

 

499,100

 

Proceeds from issuance of 2.625% Senior Notes

499,380

 

 

 

Payment of 4.5% Senior Notes

 

 

(300,000)

 

Payment of 4.2% Senior Notes

(350,000)

 

 

 

Payments under revolving credit facilities

 

 

(150,000)

 

Payment of make-whole redemption premium

(6,659)

 

 

(6,756)

 

Debt issuance costs

(4,611)

 

 

(4,166)

 

Dividends paid

(79,242)

 

 

(76,498)

 

Proceeds from stock option exercises

10,687

 

 

13,111

 

Repurchases of common stock

 

 

(110,342)

 

Shares surrendered for tax withholding

(5,534)

 

 

(12,148)

 

Other – net

(60)

 

 

(251)

 

Net cash flows provided by financing activities

63,961

 

 

2,050

 

Effect of exchange rate changes on cash and cash equivalents

(11,776)

 

 

(2,050)

 

Net (decrease) increase in cash

(311,471)

 

 

113,767

 

Cash and cash equivalents at beginning of year

1,025,851

 

 

632,581

 

Cash and cash equivalents at end of period

$

714,380

 

 

$

746,348

 

 

 

IDEX CORPORATION

Company and Segment Financial Information – Reported

(dollars in thousands)

(unaudited)

   

 

 

 

Three Months Ended

June 30, (a)

 

Six Months Ended

June 30, (a)

 

 

 

2021

 

2020

 

2021

 

2020

 

Fluid & Metering Technologies

 

 

 

 

 

 

 

 

 

Net sales

 

$

251,277

 

 

$

219,112

 

 

$

494,642

 

 

$

445,973

 

 

Operating income (b)

 

63,467

 

 

50,938

 

 

126,364

 

 

117,709

 

 

Operating margin

 

25.3

%

 

23.2

%

 

25.5

%

 

26.4

%

 

EBITDA(c)

 

$

65,845

 

 

$

57,829

 

 

$

135,786

 

 

$

129,232

 

 

EBITDA margin(c)

 

26.2

%

 

26.4

%

 

27.5

%

 

29.0

%

 

Depreciation and amortization

 

$

7,953

 

 

$

6,809

 

 

$

15,006

 

 

$

12,207

 

 

Capital expenditures

 

5,004

 

 

1,794

 

 

8,284

 

 

6,322

 

 

 

 

 

 

 

 

 

 

 

 

Health & Science Technologies

 

 

 

 

 

 

 

 

 

Net sales

 

$

275,012

 

 

$

215,668

 

 

$

525,381

 

 

$

439,727

 

 

Operating income (b)

 

75,963

 

 

48,007

 

 

142,613

 

 

100,650

 

 

Operating margin

 

27.6

%

 

22.3

%

 

27.1

%

 

22.9

%

 

EBITDA(c)

 

$

88,206

 

 

$

57,452

 

 

$

165,714

 

 

$

121,285

 

 

EBITDA margin(c)

 

32.1

%

 

26.6

%

 

31.5

%

 

27.6

%

 

Depreciation and amortization

 

$

12,534

 

 

$

9,917

 

 

$

23,047

 

 

$

20,576

 

 

Capital expenditures

 

9,565

 

 

4,955

 

 

18,694

 

 

10,284

 

 

 

 

 

 

 

 

 

 

 

 

Fire & Safety/Diversified Products

 

 

 

 

 

 

 

 

 

Net sales

 

$

160,812

 

 

$

127,076

 

 

$

320,296

 

 

$

271,400

 

 

Operating income (b)

 

42,797

 

 

28,837

 

 

87,357

 

 

66,874

 

 

Operating margin

 

26.6

%

 

22.7

%

 

27.3

%

 

24.6

%

 

EBITDA(c)

 

$

44,594

 

 

$

32,510

 

 

$

93,297

 

 

$

74,621

 

 

EBITDA margin(c)

 

27.7

%

 

25.6

%

 

29.1

%

 

27.5

%

 

Depreciation and amortization

 

$

3,851

 

 

$

3,796

 

 

$

7,723

 

 

$

7,555

 

 

Capital expenditures

 

1,390

 

 

1,310

 

 

3,159

 

 

4,194

 

 

 

 

 

 

 

 

 

 

 

 

Corporate Office and Eliminations

 

 

 

 

 

 

 

 

 

Intersegment sales eliminations

 

$

(1,154)

 

 

$

(607)

 

 

$

(2,336)

 

 

$

(1,389)

 

 

Operating income (b)

 

(23,971)

 

 

(17,188)

 

 

(42,531)

 

 

(34,698)

 

 

EBITDA(c)

 

(33,115)

 

 

(23,031)

 

 

(51,328)

 

 

(42,005)

 

 

Depreciation and amortization (d)

 

111

 

 

104

 

 

217

 

 

285

 

 

Capital expenditures

 

25

 

 

264

 

 

456

 

 

285

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

 

 

 

 

 

 

 

 

Net sales

 

$

685,947

 

 

$

561,249

 

 

$

1,337,983

 

 

$

1,155,711

 

 

Operating income

 

158,256

 

 

110,594

 

 

313,803

 

 

250,535

 

 

Operating margin

 

23.1

%

 

19.7

%

 

23.5

%

 

21.7

%

 

EBITDA(c)

 

$

165,530

 

 

$

124,760

 

 

$

343,469

 

 

$

283,133

 

 

EBITDA margin(c)

 

24.1

%

 

22.2

%

 

25.7

%

 

24.5

%

 

Depreciation and amortization (d)

 

$

24,449

 

 

$

20,626

 

 

$

45,993

 

 

$

40,623

 

 

Capital expenditures

 

15,984

 

 

8,323

 

 

30,593

 

 

21,085

 

 

 

 

 

 

 

 

 

 

 

 

IDEX CORPORATION

Company and Segment Financial Information – Adjusted

(dollars in thousands)

(unaudited)

 

 

 

Three Months Ended

June 30, (a)

 

Six Months Ended

June 30, (a)

 

 

2021

 

2020

 

2021

 

2020

 

Fluid & Metering Technologies

 

 

 

 

 

 

 

 

Net sales

$

251,277

 

 

$

219,112

 

 

$

494,642

 

 

$

445,973

 

 

Adjusted operating income (b)(c)

67,199

 

 

56,893

 

 

131,703

 

 

123,664

 

 

Adjusted operating margin(c)

26.7

%

 

26.0

%

 

26.6

%

 

27.7

%

 

Adjusted EBITDA(c)

$

75,870

 

 

$

63,784

 

 

$

147,418

 

 

$

135,187

 

 

Adjusted EBITDA margin(c)

30.2

%

 

29.1

%

 

29.8

%

 

30.3

%

 

Depreciation and amortization

$

7,953

 

 

$

6,809

 

 

$

15,006

 

 

$

12,207

 

 

Capital expenditures

5,004

 

 

1,794

 

 

8,284

 

 

6,322

 

 

 

 

 

 

 

 

 

 

 

Health & Science Technologies

 

 

 

 

 

 

 

 

Net sales

$

275,012

 

 

$

215,668

 

 

$

525,381

 

 

$

439,727

 

 

Adjusted operating income (b)(c)

76,405

 

 

49,191

 

 

143,680

 

 

101,834

 

 

Adjusted operating margin(c)

27.8

%

 

22.8

%

 

27.3

%

 

23.2

%

 

Adjusted EBITDA(c)

$

88,648

 

 

$

58,636

 

 

$

166,781

 

 

$

122,469

 

 

Adjusted EBITDA margin(c)

32.2

%

 

27.2

%

 

31.7

%

 

27.9

%

 

Depreciation and amortization

$

12,534

 

 

$

9,917

 

 

$

23,047

 

 

$

20,576

 

 

Capital expenditures

9,565

 

 

4,955

 

 

18,694

 

 

10,284

 

 

 

 

 

 

 

 

 

 

 

Fire & Safety/Diversified Products

 

 

 

 

 

 

 

 

Net sales

$160,812

 

 

$

127,076

 

 

$

320,296

 

 

$

271,400

 

 

Adjusted operating income (b)(c)

42,916

 

 

29,478

 

 

87,573

 

 

67,515

 

 

Adjusted operating margin(c)

26.7

%

 

23.2

%

 

27.3

%

 

24.9

%

 

Adjusted EBITDA(c)

$

46,495

 

 

$

33,151

 

 

$

95,295

 

 

$

75,262

 

 

Adjusted EBITDA margin(c)

28.9

%

 

26.1

%

 

29.8

%

 

27.7

%

 

Depreciation and amortization

$

3,851

 

 

$

3,796

 

 

$

7,723

 

 

$

7,555

 

 

Capital expenditures

1,390

 

 

1,310

 

 

3,159

 

 

4,194

 

 

 

 

 

 

 

 

 

 

 

Corporate Office and Eliminations

 

 

 

 

 

 

 

 

Intersegment sales eliminations

$(1,154)

 

 

$

(607)

 

 

$(2,336)

 

 

$

(1,389)

 

 

Adjusted operating income (b)(c)

(19,406)

 

 

(17,020)

 

 

(37,403)

 

 

(34,530)

 

 

Adjusted EBITDA(c)

(18,376)

 

 

(14,442)

 

 

(36,026)

 

 

(33,416)

 

 

Depreciation and amortization(d)

111

 

 

104

 

 

217

 

 

285

 

 

Capital expenditures

25

 

 

264

 

 

456

 

 

285

 

 

 

 

 

 

 

 

 

 

 

Company

 

 

 

 

 

 

 

 

Net sales

$

685,947

 

 

$

561,249

 

 

$1,337,983

 

 

$1,155,711

 

 

Adjusted operating income(c)

167,114

 

 

118,542

 

 

325,553

 

 

258,483

 

 

Adjusted operating margin(c)

24.4

%

 

21.1

%

 

24.3

%

 

22.4

%

 

Adjusted EBITDA(c)

$

192,637

 

 

$

141,129

 

 

$

373,468

 

 

$

299,502

 

 

Adjusted EBITDA margin(c)

28.1

%

 

25.1

%

 

27.9

%

 

25.9

%

 

Depreciation and amortization (d)

$

24,449

 

 

$

20,626

 

 

$

45,993

 

 

$

40,623

 

 

Capital expenditures

15,984

 

 

8,323

 

 

30,593

 

 

21,085

 

 

 

 

 

 

 

 

 

 

(a)

Three and six 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 from the date of acquisition. Three and six 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.

 

Contacts

Investor Contact:

William K. Grogan

Senior Vice President and Chief Financial Officer

(847) 498-7070

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