Attached files
| file | filename |
|---|---|
| EX-99.2 - EXHIBIT 99.2 - IDEX CORP /DE/ | iex-20170420ex992.htm |
| 8-K - 8-K - IDEX CORP /DE/ | iex-20170420x8k.htm |
IDEX Proprietary & Confidential
First Quarter 2017 Earnings
April 20, 2017
IDEX Proprietary & Confidential
Brand names shown in this presentation are registered trademarks of IDEX Corporation and/or its subsidiaries
• IDEX’s Outlook
• Q1 Financial Performance
• Segment Performance
• Fluid & Metering
• Health & Science
• Fire & Safety / Diversified Products
• 2017 Guidance Summary
• Q&A
1
AGENDA
IDEX Proprietary & Confidential
Brand names shown in this presentation are registered trademarks of IDEX Corporation and/or its subsidiaries
• Dial toll–free: 877.660.6853
• International: 201.612.7415
• Conference ID: #13652253
• Log on to: www.idexcorp.com
2
Replay Information
IDEX Proprietary & Confidential
Brand names shown in this presentation are registered trademarks of IDEX Corporation and/or its subsidiaries
Cautionary Statement Under the Private Securities Litigation Reform Act; Non-GAAP Measures
This presentation and discussion will include 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, capital expenditures, acquisitions, cost
reductions, cash flow, revenues, earnings, market conditions, global economies and operating improvements, and are
indicated by words or phrases such as “anticipate,” “estimate,” “plans,” “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: 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. 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 filed with the SEC and the other risks
discussed in the company’s filings with the SEC. The forward-looking statements included in this presentation and discussion
are only made as of today’s date, 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 in this presentation and discussion.
This presentation contains non-GAAP financial information. Reconciliations of non-GAAP measures are included either in this
presentation or our earnings release for the three-month period ending March 31, 2017, which is available on our website.
3
IDEX Proprietary & Confidential
Brand names shown in this presentation are registered trademarks of IDEX Corporation and/or its subsidiaries
4
IDEX Q1 Financial Performance
Sales Adjusted EPS*
Adjusted Operating Margin* Free Cash Flow
Organic sales growth of 5 percent, first since fourth quarter 2014
(Dollars in millions, excl. EPS)
* Operating margin and EPS data adjusted for restructuring costs ($4.8M in 2017).
$0
$200
$400
$600
Q1
$503
$554
2016 2017
$0.00
$0.50
$1.00
$1.50
Q1
$0.89 $1.03
2016 2017
16.0%
18.0%
20.0%
22.0%
Q1
20.6%
21.8%
2016 2017
$0
$50
$100
Q1
$62
$75
2016 2017
Organic: 5% increase
16% increase
120 bps increase
21% increase
IDEX Proprietary & Confidential
Brand names shown in this presentation are registered trademarks of IDEX Corporation and/or its subsidiaries
5
Fluid & Metering
Orders Sales
Q1 Sales Mix: Organic 6%
Divestiture -3%
FX -1%
Reported Sales 2%
Q1 Highlights:
Industrial market solid across all businesses
New product development in Water is expected to provide continued growth
Agriculture market showing improvements
Energy market remains challenged due to midstream exposure
Adjusted Operating Margin*
Outstanding rebound – organic orders up 5 percent with organic sales up 6 percent
* Operating margin data adjusted for restructuring costs ($1.6M in 2017).
$0
$100
$200
$300
Q1
$215 $219
2016 2017
$0
$100
$200
$300
Q1
$212 $217
2016 2017
22.0%
24.0%
26.0%
28.0%
Q1
24.4%
27.4%
2016 2017
Organic: 5% increase Organic: 6% increase
300 bps increase
(Dollars in millions)
IDEX Proprietary & Confidential
Brand names shown in this presentation are registered trademarks of IDEX Corporation and/or its subsidiaries
6
Health & Science
Orders Sales Adjusted Operating Margin*
Q1 Sales Mix: Organic 5%
Acquisition/Divestitures 5%
FX -3%
Reported Sales
7%
Q1 Highlights:
Strong results at SFC with new platform wins driving future growth
Sealing group continues to see strength in the Semiconductor market
MPT experiencing strength in Pharma globally
Continuation of strong end markets for Life Sciences
Organic orders up 8 percent
* Operating margin data adjusted for restructuring costs ($3.0M in 2017).
(Dollars in millions)
$0
$100
$200
$300
Q1
$191
$211
2016 2017
$0
$50
$100
$150
$200
$250
Q1
$186 $200
2016 2017
16.0%
18.0%
20.0%
22.0%
24.0%
Q1
21.8%
22.7%
2016 2017
Organic: 8% increase Organic: 5% increase
90 bps increase
IDEX Proprietary & Confidential
Brand names shown in this presentation are registered trademarks of IDEX Corporation and/or its subsidiaries
7
Fire & Safety / Diversified Products
Orders Sales Adjusted Operating Margin*
Q1 Highlights:
Segment order decrease due to difficult comp and timing primarily within
Dispensing
Dispensing projects slowed down compared to 2016
Fire and Safety project funnel, OEM activity and municipal spend improving
Band-It experienced solid growth in the energy and transportation end
markets
Akron Brass and AWG acquisitions are performing well
Q1 Sales Mix: Organic 1%
Acquisitions 33%
FX -3%
Reported Sales 31%
* Operating margin data adjusted for restructuring costs ($0.1M in 2017).
(Dollars in millions)
$0
$50
$100
$150
Q1
$120
$139
2016 2017
$0
$50
$100
$150
Q1
$105
$137
2016 2017
20.0%
22.0%
24.0%
26.0%
Q1
24.5%
23.8%
2016 2017
70 bps decrease
Organic: 11% decrease Organic: 1% increase
IDEX Proprietary & Confidential
Brand names shown in this presentation are registered trademarks of IDEX Corporation and/or its subsidiaries
Q2 2017
• EPS estimate range: $1.04 - $1.06
• Organic revenue growth: 2-3%
• Operating margin: ~21.5%
• Tax rate: ~26.5%
• FX impact: ~2% topline headwind based on March 31, 2017 FX rates
• Corporate costs: ~$16M
FY 2017
• EPS estimate range: $4.00 – $4.10
• Organic revenue growth: 3-4%
• Operating margin: ~21.5%
• FX impact: ~1% topline headwind based on March 31, 2017 FX rates
• Corporate costs: ~$66M
• Other modeling items:
• Tax rate: ~27.5%
• Cap Ex: ~$45M
• Free Cash Flow will be ~120% of net income
• EPS estimate excludes all future acquisitions and associated costs and future restructuring charges
8
2017 Guidance Summary