Attached files
| file | filename |
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| 8-K - FORM 8-K - IDEX CORP /DE/ | d246441d8k.htm |
| EX-99.2 - EX-99.2 - IDEX CORP /DE/ | d246441dex992.htm |
EXHIBIT 99.1
Third Quarter 2011 Earnings Release
October 20, 2011
Agenda
IDEX Market Assessment / Outlook Q3 2011 Summary Q3 2011 Segment Performance
Fluid & Metering
Health & Science Dispensing Equipment Fire & Safety
2011 Guidance Update Q&A
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Replay Information
Dial toll–free: 855.859.2056 International: 404.537.3406 Conference ID: #66069195 Log on to: www.idexcorp. com
IDEX Proprietary & Confidential
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Cautionary Statement Under the Private Securities Litigation Reform Act
This presentation and discussion will include forward ? looking statements. Our actual performance may differ materially from that indicated or suggested by any such statements. There are a number of factors that could cause those differences, including those presented in our most recent annual report and other company filings with the SEC.
IDEX Proprietary & Confidential
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Long Term – Planning for Growth
Remain bullish on our business in 2012 & beyond
Expect organic growth in 2012
Positive order trends remain in our base businesses
Improve our growth profile
Increased exposure to high? growth regions
Increased focus on high? value end markets
Improve our margin profile
Deliver savings through operational excellence and integrated supply chain
Aftermarket penetration on our large install base
Innovation
New Products New Markets Acquisitions
Growth
Operational
Excellence
Commercial
Excellence
Conversion
IDEX Proprietary & Confidential
Strategy remains: Focus on growing global platforms and execute with a disciplined operating model
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IDEX Served Markets Assessment
Long? Term / Near? Term Observation
Chemical / Industrial
+ / + Chem / Industrial investments in China and emerging markets
+ / + U.S. expansion modest / MRO continues
+ / ? European slowing
Energy
+ / + Global growth; oil, gas and mining are very strong
+ / + Mid and downstream particularly strong
Food / Beverage
+ / + Global growth; increased regulatory environment
Agriculture
+ / + OEM global growth
+ / + Aftermarket very strong
Healthcare / Scientific
+ / ? Governmental funding
+ / + Both big Pharma and generic to grow in 2012
Municipal
+ / + International water growth
+ / ? US Muni – water continues to struggle
+ / + Rescue international growth
+ / ? US Muni – pumper truck builds still weak
IDEX Proprietary & Confidential
85%+ of IDEX markets growing …with international growth outpacing domestic
Current Revenue Mix
Rest of the World
Europe
North America
IDEX Markets Served
Chem/Industrial
Healthcare /Scientific Municipal Energy Food /Beverage Agriculture Other
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IDEX Q3 2011 Financial Performance
Total Revenue
$500 $250 $0
$477 $374
Organic: 9%
2010
2011
Q3
Operating Margin*
70 bps expansion
25% 20% 15% 10%
18.3% 17.6%
2010
2011
Q3
* EPS / Op Margin data adjusted for $3.5M restructuring expense (2010) and $12.8M CVI inventory step? up expense and $2.9M restructuring expense (2011).
EPS*
42% Growth
$1.00
$0.00
$0.71
$0.50
Free Cash Flow
59% Growth
$100 $50 $0
$86
$54
2010
2011
2010
2011
IDEX Proprietary & Confidential
Outstanding free cash flow, continued top? line growth and margin expansion
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Fluid & Metering
Total Orders
Organic: 6%
Total Revenue
Organic: 16%
Operating Margin*
160 bps expansion
$300 $200 $100 $0
$195 $179
Q3
2010
2011
$300 $200 $100 $0
$170 $202
25% 20% 15% 10%
Q3
2010
2011
Q3
2010
2011
Q3 Sales Mix: Organic +16%
Acquisition ?Fx +3% Total +19%
Q3 Summary :
Adjusted organic order growth 16% (excluding water platform) Strong top line growth; executing organic growth initiatives Energy, Chemical, Agriculture very strong globally Water/Waste Water globally stable, US muni spend challenged Margin expansion; productivity / price offsetting inflation
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Op Margin data adjusted for restructuring expense |
IDEX Proprietary & Confidential
16% organic revenue growth… margin expanded 160 bps
Health & Science
Total Orders
Organic: 6%
$300 $200 $100 $0
$173 $109
Q3
2010
2011
Total Revenue
Organic: 4%
$300 $200 $100 $0
$177 $111
25% 20% 15% 10%
Q3
2010
2011
Operating Margin*
380 bps compression
23.0%
19.2%
Q3
2010
[Graphic Appears Here]
Q3 Sales Mix: Organic +4%
Acquisition +54% Fx +1% Total +59%
Q3 Summary :
Excluding CVI Melles Griot and other recent HST acquisitions margins improved 70 bps YoY
New products and increased content within L.S. and A.I.
Industrial, environmental, and pharma strong
Completed CVI Melles Griot acquisition, integration well underway
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Op Margin data adjusted for restructuring expense and $12.8M CVI inventory step? up expense (Q311) |
IDEX Proprietary & Confidential
CVI Integration well under way
Dispensing
Total Orders
Organic: 23%
$50 $25 $0
$31 $24
Q3
2010
2011
Total Revenue
Organic: (11)%
$50 $25 $0
$26 $25
Q3
2010
2011
Operating Margin*
120 bps compression
20% 10% 0%
10.2% 9.0%
Q3
2010
2011
Q3 Sales Mix: Organic ? 11%
Acquisition ?Fx +6% Total 5%
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Op Margin data adjusted for restructuring expense (Q311) |
IDEX Proprietary & Confidential
Operating margins will improve through structural actions taken
Q3 Summary :
Eastern Europe, Asia and Latin America markets performing well
Holding share in N.A.; wins on retrofits and spare parts
Structural actions taken will improve margins
10
Fire & Safety/Diversified
Total Orders
Organic: 13%
$90
$60
$30
$0
$81 $70
Q3
2010
2011
Q3 Sales Mix: Organic +6%
Acquisition ?Fx +4% Total +10%
$90
$60
$30
$0
Total Revenue
Organic: 6%
$74 $67
Q3
2010 2011
Operating Margin*
30% 20% 10%
25.4% 25.4%
Q3
2010 2011
Q3 Summary :
Rescue winning internationally and domestically with eDraulic
BAND IT growing nicely with continued development of new applications
North American Fire markets stable, Int’l share growing
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Op Margin data adjusted for restructur ing expense (Q311) |
IDEX Proprietary & Confidential
Great performance in challenging end markets
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Outlook: 2011 Guidance Summary
Q4 2011
Adjusted EPS estimate range: $0.60 – $0.63
Organic revenue growth of 4% – 5%
Positive Fx impact of ~2% to sales (at September 30 rates) Positive impact of 10% from acquisitions
FY 2011
Adjusted EPS estimate range: $2.51 – $2.54
Organic revenue growth in the high single digits Operating margin of ~18%
Positive Fx impact of ~2% to sales (at September 30 rates) Positive impact of 9% from acquisitions
Other modeling items
Tax rate = 30% Cap Ex $36? 38M
Free Cash Flow will exceed net income
EPS estimate excludes future restructuring, acquisitions and acquisition –related costs
IDEX Proprietary & Confidential
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Q&A
IDEX Proprietary & Confidential
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