Attached files
| file | filename |
|---|---|
| EX-99.2 - EXHIBIT 99.2 - IDEX CORP /DE/ | iex-201801302018xex992.htm |
| 8-K - 8-K - IDEX CORP /DE/ | iex-201801302018.htm |
IDEX Proprietary & Confidential
Fourth Quarter & Full Year 2017 Earnings
January 30, 2018
IDEX Proprietary & Confidential
Brand names shown in this presentation are registered trademarks of IDEX Corporation and/or its subsidiaries
• IDEX’s Outlook
• 2017 Financial Performance
• Segment Performance
• Fluid & Metering
• Health & Science
• Fire & Safety / Diversified Products
• 2018 Guidance
• Bridge
• Summary
• Q&A
AGENDA
2
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: #13675214
• Log on to: www.idexcorp.com
Replay Information
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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- and twelve-month periods ending December 31, 2017, which is
available on our website.
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IDEX Proprietary & Confidential
Brand names shown in this presentation are registered trademarks of IDEX Corporation and/or its subsidiaries
$0
$100
$200
$300
$400
Q4 Year
$106
$362
$120
$389
2016 2017
18.0%
20.0%
22.0%
24.0%
Q4 Year
20.6% 20.7%
22.1% 21.9%
2016 2017
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
Q4 Year
$0.96
$3.75
$1.12
$4.31
2016 2017
$0
$500
$1,000
$1,500
$2,000
$2,500
Q4 Year
$530
$2,113
586
$2,287
2016 2017
IDEX 2017 Financial Performance
Sales Adjusted EPS*
Adjusted Operating Margin* Free Cash Flow
120 bps increase
15% increase
117% conversion
Record 4th quarter for IDEX in all four categories
Organic: 6% increase
(Dollars in millions, excl. EPS)
* Operating data adjusted for restructuring expenses ($3.7M in Q4 2017 and $8.5M in FY 2017; $3.7M in Q4 and FY 2016) and loss/(gain) on
divestitures ($9.3M gain in Q4 and FY 2017; $20.2M loss in Q4 2016 and $22.3M loss in FY 2016.) EPS adjusted for the impact of the Tax
Cuts and Job Acts.
Organic: 9% increase 17% increase
150 bps increase
139% conversion
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IDEX Proprietary & Confidential
Brand names shown in this presentation are registered trademarks of IDEX Corporation and/or its subsidiaries
Fluid & Metering Technologies
Orders Sales
Q4 Sales Mix: Organic 7%
Divestiture -2%
FX 2%
Reported Sales 7%
Highlights:
The agriculture market had a great year and a strong pre-order season
indicative of continued momentum
Water continues to focus on new product development and is leveraging
technology to gain market share
Pumps delivered strong orders and sales throughout the year driven by
strength in LACT pumps and distribution
Energy market experienced share gains in LPG Mobile and increasing truck
builds
Adjusted Operating Margin*
9 percent organic order growth in Q4
$0
$200
$400
$600
$800
$1,000
Q4 Year
$205
$845
$226
$893
2016 2017
24.0%
26.0%
28.0%
30.0%
Q4 Year
27.4%
25.7%
28.4%
27.7%
2016 2017
$0
$200
$400
$600
$800
$1,000
Q4 Year
$207
$8 9
$222
$881
2016 2017
200 bps increase Organic: 7% increase
Organic: 6% increase
(Dollars in millions)
Organic: 9% increase Organic: 7% increase
100 bps increase
* Operating margin data adjusted for restructuring expenses ($1.8M in Q4 2017 and $3.4M in FY 2017; $0.9M in Q4 and FY 2016.)
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IDEX Proprietary & Confidential
Brand names shown in this presentation are registered trademarks of IDEX Corporation and/or its subsidiaries
Health & Science Technologies
Orders Sales
Q4 Sales Mix: Organic 11%
Acquisition/Divestitures -2%
FX 2%
Reported Sales 11%
Highlights:
Very strong performance by the Scientific Fluidics and Optics business as a
result of strength in the AI, IVD/Bio and DNA Sequencing markets
Sealing continues to benefit from strength in the semicon market
MPT is solid with increased demand in the US food and pharma markets
along with a strong project funnel
Industrial market remains strong
Adjusted Operating Margin*
6 consecutive quarters of organic order growth
$0
$200
$400
$600
$800
$1,000
Q4 Year
$201
$761
$216
$841
2016 2017
16.0%
18.0%
20.0%
22.0%
24.0%
Q4 Year
19.0%
20.8%
22.3%
22.5%
2016 2017
$0
$200
$400
$600
$800
$1,000
Q4 Year
$188
$745
$209
$820
2016 2017
170 bps increase Organic: 8% increase
Organic: 8% increase
(Dollars in millions)
Organic: 7% increase Organic: 11% increase
330 bps increase
* Operating margin data adjusted for restructuring expenses ($1.7M in Q4 2017 and $4.7M in FY 2017; $1.1M in Q4 and FY 2016.)
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IDEX Proprietary & Confidential
Brand names shown in this presentation are registered trademarks of IDEX Corporation and/or its subsidiaries
Fire & Safety / Diversified Products
Orders Sales
Q4 Sales Mix: Organic 12%
Acquisitions -
FX 3%
Reported Sales 15%
Highlights:
Dispensing is seeing traction on our growth initiatives as new products are
being launched globally
Band-It continues to deliver across various markets including transportation
and industrial end markets
Fire and Rescue muni and North American OEM markets remain positive
Akron Brass and AWG margin improvement plans are ahead of schedule
Adjusted Operating Margin*
11 percent organic order growth in Q4
$0
$200
$400
$600
Q4 Year
$141
$527
$161
$599
2016 2017
22.0%
24.0%
26.0%
28.0%
Q4 Year
24.0% 24.0%
26.5%
25.1%
2016 2017
$0
$200
$400
$600
Q4 Year
$135
$520
$156
$588
2016 2017
110 bps increase
Organic: 5% increase Organic: 4% increase
(Dollars in millions)
Organic: 11% increase
Organic: 12% increase
250 bps increase
* Operating margin data adjusted for restructuring expenses ($0.2M in Q4 and $0.3M in FY 2017; $1.4M in Q4 and FY 2016.)
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IDEX Proprietary & Confidential
Brand names shown in this presentation are registered trademarks of IDEX Corporation and/or its subsidiaries
2018 Guidance Bridge
2018 Growth Expectations
• ~ 5% organic revenue growth
• Future acquisitions not contemplated below
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IDEX Proprietary & Confidential
Brand names shown in this presentation are registered trademarks of IDEX Corporation and/or its subsidiaries
Q1 2018
– EPS estimate range: $1.20 - $1.24
– Organic revenue growth: ~ 5 - 6%
– Operating margin: ~ 22.0%
– Tax rate: ~ 22.5%
– FX impact: ~ 3.0% topline tailwind based on December 31, 2017 FX rates
– Corporate costs: ~ $17 - $18 million
FY 2018
– EPS estimate range: $4.90 - $5.10
– Organic revenue growth: ~ 5.0%
– Operating margin: ~ 22.5 - 23.0%
– FX impact: ~ 1% topline tailwind based on December 31, 2017 FX Rates
– Other modeling items:
• Tax rate: ~ 22 - 23%
• Cap Ex: ~ $50M
• Free Cash Flow will be 115% to 120% of net income
• EPS estimate excludes all future acquisitions and associated costs and any future restructuring expenses
• Corporate costs ~ $70 - $74 million
2018 Guidance Summary
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