Attached files
| file | filename |
|---|---|
| EX-99.1 - EXHIBIT 99.1 - IDEX CORP /DE/ | iex-20180430xex991.htm |
| 8-K - 8-K - IDEX CORP /DE/ | iex-20180430x8k.htm |
IDEX Proprietary & Confidential
First Quarter 2018 Earnings
April 30, 2018
IDEX Proprietary & Confidential
Brand names shown in this presentation are registered trademarks of IDEX Corporation and/or its subsidiaries
• IDEX’s Overview and Outlook
• Q1 Financial Performance
• Segment Performance
• Fluid & Metering Technologies
• Health & Science Technologies
• Fire & Safety / Diversified Products
• 2018 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: #13675419
• 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 “anticipates,” “estimates,” “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, 2018, 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 7 percent drove a 25 percent increase in EPS
(Dollars in millions, excl. EPS)
* Operating margin and EPS data adjusted for restructuring expenses ($1.6M in Q1 2018 and $4.8M in Q1 2017).
$300
$500
$700
Q1
$554
$612
2017 2018
$0.00
$0.50
$1.00
$1.50
Q1
$1.03
$1.29
2017 2018
18.0%
20.0%
22.0%
24.0%
Q1
21.8%
22.6%
2017 2018
$0
$50
$100
Q1
$75
$62
2017 2018
Organic: 7% increase
25% increase
80 bps increase 18% decrease
IDEX Proprietary & Confidential
Brand names shown in this presentation are registered trademarks of IDEX Corporation and/or its subsidiaries
5
Fluid & Metering Technologies
Orders Sales
Q1 Sales Mix: Organic 5%
Divestiture -1%
FX 3%
Reported Sales 7%
Q1 Highlights:
Industrial market solid across all businesses and showing continued strength
Ag continues to be strong with double-digit organic sales growth
Water remains solid with new products driving growth
Cold winter drove strong truck builds in Energy
Adjusted Operating Margin*
Organic orders up 7 percent with organic sales up 5 percent
* Operating margin data adjusted for restructuring expenses ($0.1M in Q1 2018 and $1.6M in Q1 2017).
$0
$100
$200
$300
Q1
$219 $238
2017 2018
$0
$100
$200
$300
Q1
$217 $232
2017 2018
24.0%
26.0%
28.0%
30.0%
Q1
27.4%
28.5%
2017 2018
Organic: 7% increase Organic: 5% increase 110 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 Technologies
Orders Sales Adjusted Operating Margin*
Q1 Sales Mix: Organic 6%
Acquisition 1%
FX 4%
Reported Sales
11%
Q1 Highlights:
IVD and Bio market remains solid within Scientific Fluidics and Optics
Sealing Solution had double digit growth led by semiconductor and
transportation market demand
MPT had a very strong quarter with an improving project funnel
thinXXS integration going well
Revenue growth across all businesses – with organic sales growth of 6 percent
* Operating margin data adjusted for restructuring expenses ($1.1M in Q1 2018 and $3.0M in Q1 2017).
(Dollars in millions)
$100
$150
$200
$250
Q1
$211
$240
2017 2018
$100
$150
$200
$250
Q1
$200
$221
2017 2018
18.0%
20.0%
22.0%
24.0%
Q1
22.7%
23.9%
2017 2018
Organic: 8% increase Organic: 6% increase 120 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:
Dispensing delivers double-digit revenue growth
Rescue tool business is strong with emerging market project activity picking
up
Fire OEM & Muni business is steady
Band-IT delivers double-digit organic order and revenue growth through new
project wins and NPD
Strong first quarter with organic order and sales growth across all businesses
Q1 Sales Mix: Organic 9%
FX 7%
Reported Sales 16%
* Operating margin data adjusted for restructuring expenses ($0.1M in Q1 2018 and Q1 2017).
(Dollars in millions)
$50
$100
$150
$200
Q1
$139
$154
2017 2018
$50
$100
$150
$200
Q1
$137
$159
2017 2018
20.0%
22.0%
24.0%
26.0%
Q1
23.8%
24.9%
2017 2018
110 bps increase
Organic: 5% increase Organic: 9% increase
IDEX Proprietary & Confidential
Brand names shown in this presentation are registered trademarks of IDEX Corporation and/or its subsidiaries
Q2 2018
– EPS estimate range: $1.30 – $1.32
– Organic revenue growth: 5 – 6%
– Operating margin: ~ 22.5%
– Tax rate: ~ 22.5%
– FX impact: ~ 3.0% topline tailwind based on March 31, 2018 FX rates
– Corporate costs: ~ $20 million
FY 2018
– EPS estimate range: $5.05 – $5.20
– Organic revenue growth: 5 – 6%
– Operating margin: 22.5 – 23.0%
– FX impact: ~ 3.0% topline tailwind based on March 31, 2018 FX rates
– Other modeling items:
• Tax rate: ~ 23%
• Cap Ex: ~ $50 million
• Free Cash Flow will be approximately 110% of net income
• Corporate costs: ~ $73 – $77 million
• EPS estimate excludes all future acquisitions and associated costs and any future restructuring expenses
8
2018 Guidance Summary