有關詳細信息： 已交易：紐交所（IEX） EX-99.1
投資者聯繫人：
Wendy Palacios
財務規劃副總裁兼投資者關係
(847) 498-7070
IDEX報告第三季度業績
2024年第三季度業績亮點
（所有比較均基於2023年第三季度，除非另有說明）
•銷售額爲79800萬美元，整體上漲1%，有機增長持平
•報告攤薄後每股收益爲1.57美元，下降43%，調整後攤薄後每股收益爲1.90美元，下降10%
•經營現金流爲20500萬美元，下降9%; 相當於淨利潤的172%，高於108%
•自由現金流爲$19200萬，下降 佔調整後淨利潤的7％；佔比從129％上升至133％
•2024年9月5日完成了對Mott公司的收購。
•完成了發行總額爲50000萬美元的4.950%高級票據，截止時間爲2029年9月
2024全年展望
•全年有機銷售增長預計將比去年同比下降1%至2%
•全年普通會計淨攤薄每股收益爲6.65美元至6.70美元，與之前的指導範圍6.85美元至6.95美元相比。當前指引包括購買會計影響，例如與收購Mott Corporation有關的攤銷費用。
•攤薄後每股收益調整爲7.85美元至7.90美元，而之前的指引爲7.80美元至7.90美元。
2024年10月29日，紐約州NORTHBROOK - IDEX公司（紐交所：IEX）今天宣佈了截至2024年9月30日的三個月期間的財務業績。
我們對第三季度的表現感到鼓舞。在不確定的經濟背景下，我們的流體與計量技術以及消防與安全/多元化產品部門的團隊推動了有機增長，同時通過運營執行實現了強勁的利潤率。IDEX公司首席執行官兼總裁埃裏克·D·阿什曼表示：「我們的健康與科學技術領域訂單出現了健康的有機增長，增強了我們的業務定位，同時在尋找生命科學和半導體領域持續復甦跡象的過程中。」
「與此同時，自我們收購了Mott不到兩個月時間，合作伙伴關係已經快速啓動。IDEX的其他業務團隊已經與Mott的同事展開合作，共同設計結合了Mott的高度工程化過濾產品的新原型。自交易結束以來，才華橫溢的IDEX員工已經融入Mott的領導團隊，幫助啓動了平穩的整合，」Ashleman表示。「Mott服務的核心先進技術市場，包括半導體硅片製造、能源變革解決方案、醫療技術和水淨化，有望在長期內表現優越。」
IDEX保持良好地位，與處於新技術前沿的客戶解決複雜問題。我們期望繼續在我們的投資組合中部署資源，以我們的80/20思維加速增長，將我們定位爲推動長期價值創造。
合併財務結果
| 截至9月30日的三個月 | |||||||||||||||||
| （金額單位爲百萬美元，每股金額除外） | 2024 | 2023 | 增加（減少） | ||||||||||||||
| 訂單 | $ | 780.5 | $ | 712.3 | $ | 68.2 | |||||||||||
| 有機訂單的變化* | 8 | % | |||||||||||||||
| 淨銷售額 | 798.2 | 793.4 | 4.8 | ||||||||||||||
| 有機淨銷售額變化* | — | ||||||||||||||||
| 毛利潤 | 353.9 | 349.6 | 4.3 | ||||||||||||||
| 調整後的毛利潤* | 356.0 | 350.8 | 5.2 | ||||||||||||||
| 歸屬IDEX的淨收入 | 119.1 | 209.1 | (90.0) | ||||||||||||||
| 歸屬IDEX的調整後淨利潤* | 144.1 | 160.6 | (16.5) | ||||||||||||||
| 調整後的EBITDA* | 214.3 | 225.5 | (11.2) | ||||||||||||||
| 攤薄後每股收益歸屬IDEX | 1.57 | 2.75 | (1.18) | ||||||||||||||
| 歸屬IDEX的調整後攤薄每股收益* | 1.90 | 2.12 | (0.22) | ||||||||||||||
| 經營活動現金流 | 205.3 | 226.6 | (21.3) | ||||||||||||||
| 自由現金流* | 191.6 | 206.5 | (14.9) | ||||||||||||||
| 毛利率 | 44.3 | % | 44.1 | % | 20 bps | ||||||||||||
| 調整後的毛利率* | 44.6 | % | 44.2 | % | 40個點子 | ||||||||||||
| 淨利潤率 | 14.9 | % | 26.3 | % | (1,140) 點子 | ||||||||||||
| 調整後的EBITDA利潤率* | 26.9 | % | 28.4 | % | (150) 點子 | ||||||||||||
*這些是非按照通用會計準則（GAAP）計算的指標。請參閱本報告中「財務表現的非GAAP指標」部分中這些非GAAP指標的定義，並在本報告末尾的調和表中找到它們與最直接可比的GAAP財務指標之間的調和。 | |||||||||||||||||
•淨銷售額較去年同期增長1%， 這是收購和剝離的淨影響的結果。有機淨銷售額持平，受我們的Health & Science Technologies板塊銷量下降所影響，但在所有板塊中價格的上漲有所緩解。
•44.3%的毛利率提高了20個基本點，主要是因爲強勁的價格/成本，部分抵消了較高的與員工相關的成本。
•淨利潤率爲14.9%，下降了1,140個點子，報告的每股攤薄後收益爲1.57美元，下降了1.18美元，主要是因爲去年同期未發生Micropump, Inc.（「Micropump」）業務出售收益的缺失。攤薄後每股收益受到較低的營運業績和較高的實際稅率的影響。去年同期的實際稅率包括一次性紓困措施，降低了實際稅率，部分抵消了Micropump業務出售所得利潤上繳的稅款。
•調整後的EBITDA利潤率爲26.9%，下降了150個點子，調整後的每股收益爲1.90美元，減少了0.22美元，反映了較強的價格/成本，這超過了較高的與員工相關的成本和較低的成交量。此外，當前年度期間包括與收購Mott Corporation及其子公司（「Mott」）相關的370萬元較高的交易相關費用。
•攤薄後每股收益還反映了高於前一年同期的$0.11的影響，如上所討論的。 前一年同期的調整後有效稅率不包括Micropump出售的收益和相關稅收影響。
業務部門財務結果。
截至9月30日的三個月結束時，(a) | |||||||||||||||||
(金額單位：百萬美元) | 2024 | 2023 | 增加（減少） | ||||||||||||||
| Fluid & Metering Technologies（"FMT"） | |||||||||||||||||
| 淨銷售額 | $ | 300.8 | $ | 301.1 | $ | (0.3) | |||||||||||
| 有機淨銷售額變動* | 2 | % | |||||||||||||||
調整後的EBITDA(b) | 98.5 | 103.6 | (5.1) | ||||||||||||||
| 調整後的EBITDA率 | 32.8 | % | 34.4 | % | (160) 個點子 | ||||||||||||
| 健康與科學技術（"HST"） | |||||||||||||||||
| 淨銷售額 | $ | 311.0 | $ | 313.2 | $ | (2.2) | |||||||||||
| 有機淨銷售額變化* | (5 | %) | |||||||||||||||
調整後的EBITDA(b) | 82.6 | 84.4 | (1.8) | ||||||||||||||
| 調整後的EBITDA率 | 26.5 | % | 26.9 | % | (40)個點子 | ||||||||||||
| 消防與安全/多元化產品（"FSDP"） | |||||||||||||||||
| 淨銷售額 | $ | 188.0 | $ | 180.6 | $ | 7.4 | |||||||||||
| 有機淨銷售變化* | 4 | % | |||||||||||||||
調整後的EBITDA(b) | 54.7 | 52.8 | 1.9 | ||||||||||||||
| 調整後的EBITDA率 | 29.1 | % | 29.3 | % | (20) 點子 | ||||||||||||
| 公司總部和消除 | |||||||||||||||||
| 分部間銷售消除 | $ | (1.6) | $ | (1.5) | $ | (0.1) | |||||||||||
調整後的EBITDA(b) | (21.5) | (15.3) | (6.2) | ||||||||||||||
*這些是非GAAP措施。請參閱本公告中標題爲「財務績效的非GAAP措施定義」部分中這些非GAAP措施的定義，並查看本公告末尾的協調錶，以了解它們與最直接可比的GAAP財務措斷的相關性。 | |||||||||||||||||
（a）三個月數據包括HSt部門在2023年12月收購STC Material Solutions和2024年9月收購Mott Corporation的成果。三個月數據還包括HSt部門在2023年8月收購Micropump和2023年12月收購Novotema, SpA，以及FMt部門在2024年6月通過相應日期處置獲取Alfa Valvole, Srl的結果。 | |||||||||||||||||
（b）分部調整EBITDA不包括已計入企業及其他成本的未分配公司成本。 | |||||||||||||||||
Fluid & Metering Technologies Segment
•Net sales were relatively flat compared to the prior year period while organic net sales were up 2%. Positive impacts of price capture were offset by the impact of divestitures. Volumes were relatively flat period over period with improvement in the industrial market and strength in our water business, offset by a down agriculture cycle and softness in the energy market.
•Adjusted EBITDA margin for the third quarter 2024 decreased primarily due to higher employee-related costs, higher discretionary spending and unfavorable mix, partially offset by price/cost.
Health & Science Technologies Segment
•Net sales for the third quarter 2024 were relatively flat while organic net sales were down 5%. Net sales were negatively impacted by lower volumes driven by continued broad based market softness. This decrease was partially offset by price capture and the positive net impact of acquisitions and divestitures.
•Adjusted EBITDA margin for the third quarter 2024 decreased primarily due to lower volume and higher employee-related costs, partially offset by price/cost, favorable operational productivity and the net accretive impact of acquisitions and divestitures.
Fire & Safety/Diversified Products Segment
•Both reported and organic net sales for the third quarter 2024 were up 4% and positively impacted by price capture and higher volumes. The benefit of key growth initiatives and strength in the aerospace market was partially offset by the cyclical nature of project sales in our North American dispensing business.
•Adjusted EBITDA margin for the third quarter 2024 decreased due to unfavorable mix. Positive price/cost offset higher employee related costs.
Mott Acquisition
On September 5, 2024, IDEX acquired Mott for cash consideration of $986.2 million, net of cash acquired of $3.1 million. When adjusted for the present value of expected tax benefits of approximately $100 million, the net transaction value is approximately $900 million. This represents approximately 19x Mott’s forecasted full year 2024 EBITDA and a mid-teens multiple based on Mott’s forecasted 2025 EBITDA. The acquisition is expected to be accretive to IDEX’s adjusted earnings per share in fiscal year 2026.
Conference Call to be Broadcast over the Internet
IDEX will broadcast its third quarter earnings conference call over the Internet on Wednesday, October 30, 2024 at 9:30 a.m. CT. Chief Executive Officer and President Eric Ashleman and Senior Vice President and Chief Financial Officer Abhi Khandelwal 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 available 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 #13742105.
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 fourth quarter 2024 and full year 2024 outlook including expected sales, expected organic sales, expected earnings per share, expected adjusted earnings per share, estimated net income and estimated adjusted EBITDA and the assumptions underlying these expectations, anticipated future acquisition behavior, resource deployment and focus and organic and inorganic growth, anticipated trends in end markets, anticipated growth initiatives, the anticipated benefits of the Company’s recent acquisitions and integration plans, including the projected EBITDA of Mott and the related impact and timing for such impact on the Company’s earnings, 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: levels of industrial activity and economic conditions in the U.S. and other countries around the world, including uncertainties in the financial markets; pricing pressures, including inflation and rising interest rates, and other competitive factors and levels of capital spending in certain industries; the impact of severe weather events, natural disasters and public health threats; economic and political consequences resulting from terrorist attacks and wars; the Company’s ability to make acquisitions and to integrate and operate acquired businesses on a profitable basis; cybersecurity incidents; 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; supply chain conditions; market conditions and material costs; risks related to environmental, social and corporate governance issues, including those related to climate change and sustainability; 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 Securities and Exchange Commission (“SEC”) and 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 Corporation (NYSE: IEX) designs and builds engineered products and mission-critical components that make everyday life better. IDEX precision components help craft the microchip powering your
electronics, treat water so it is safe to drink, and protect communities and the environment from sewer overflows. Our optics enable global broadband satellite communications, and our pumps move challenging fluids that range from hot, to viscous, to caustic. IDEX components assist healthcare professionals in saving lives as part of many leading diagnostic machines, including DNA sequencers that help doctors personalize treatment. And our fire and rescue tools, including the industry-leading Hurst Jaws of Life®, are trusted by rescue workers around the world. These are just some of the thousands of products that help IDEX live its purpose – Trusted Solutions, Improving Lives™. Founded in 1988 with three small, entrepreneurial manufacturing companies, IDEX now includes more than 50 diverse businesses around the world. With about 8,800 employees and manufacturing operations in more than 20 countries, IDEX is a diversified, high-performing, global company with approximately $3.3 billion in annual sales.
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 Income
(in millions, except per share amounts)
(unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Net sales | $ | 798.2 | $ | 793.4 | $ | 2,405.9 | $ | 2,485.0 | |||||||||||||||
| Cost of sales | 444.3 | 443.8 | 1,327.8 | 1,374.9 | |||||||||||||||||||
| Gross profit | 353.9 | 349.6 | 1,078.1 | 1,110.1 | |||||||||||||||||||
| Selling, general and administrative expenses | 182.9 | 165.9 | 560.8 | 529.9 | |||||||||||||||||||
| Restructuring expenses and asset impairments | 3.0 | 4.1 | 5.4 | 8.2 | |||||||||||||||||||
| Operating income | 168.0 | 179.6 | 511.9 | 572.0 | |||||||||||||||||||
Gain on sale of business(1) | 0.6 | (93.8) | (4.0) | (93.8) | |||||||||||||||||||
| Other expense (income) – net | 2.7 | (2.1) | — | 5.6 | |||||||||||||||||||
| Interest expense - net | 10.3 | 13.7 | 27.8 | 40.1 | |||||||||||||||||||
| Income before income taxes | 154.4 | 261.8 | 488.1 | 620.1 | |||||||||||||||||||
| Provision for income taxes | 35.5 | 52.8 | 106.7 | 132.8 | |||||||||||||||||||
| Net income | 118.9 | 209.0 | 381.4 | 487.3 | |||||||||||||||||||
| Net loss attributable to noncontrolling interest | 0.2 | 0.1 | 0.4 | 0.2 | |||||||||||||||||||
| Net income attributable to IDEX | $ | 119.1 | $ | 209.1 | $ | 381.8 | $ | 487.5 | |||||||||||||||
| Earnings per Common Share: | |||||||||||||||||||||||
| Basic earnings per common share attributable to IDEX | $ | 1.57 | $ | 2.76 | $ | 5.03 | $ | 6.44 | |||||||||||||||
| Diluted earnings per common share attributable to IDEX | $ | 1.57 | $ | 2.75 | $ | 5.02 | $ | 6.42 | |||||||||||||||
| Share Data: | |||||||||||||||||||||||
| Basic weighted average common shares outstanding | 75.7 | 75.6 | 75.7 | 75.6 | |||||||||||||||||||
| Diluted weighted average common shares outstanding | 75.9 | 75.9 | 75.9 | 75.9 | |||||||||||||||||||
(1) Activity recorded during the three months ended September 30, 2024 represents the finalization of the gain on the sale of Alfa Valvole, Srl resulting in a $0.6 million downward adjustment during the third quarter of 2024.
IDEX CORPORATION
Condensed Consolidated Balance Sheets
(in millions)
(unaudited)
| September 30, 2024 | December 31, 2023 | ||||||||||
| Assets | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | $ | 633.2 | $ | 534.3 | |||||||
| Receivables - net | 475.1 | 427.8 | |||||||||
| Inventories - net | 488.2 | 420.8 | |||||||||
| Other current assets | 81.3 | 63.4 | |||||||||
| Total current assets | 1,677.8 | 1,446.3 | |||||||||
| Property, plant and equipment - net | 468.6 | 430.3 | |||||||||
| Goodwill | 3,316.0 | 2,838.3 | |||||||||
| Intangible assets - net | 1,349.4 | 1,011.8 | |||||||||
| Other noncurrent assets | 155.7 | 138.5 | |||||||||
| Total assets | $ | 6,967.5 | $ | 5,865.2 | |||||||
| Liabilities and equity | |||||||||||
| Current liabilities | |||||||||||
| Trade accounts payable | $ | 210.4 | $ | 179.7 | |||||||
| Accrued expenses | 301.2 | 271.5 | |||||||||
| Current portion of long-term borrowings | 0.6 | 0.6 | |||||||||
| Dividends payable | 52.4 | 48.5 | |||||||||
| Total current liabilities | 564.6 | 500.3 | |||||||||
| Long-term borrowings - net | 2,075.1 | 1,325.1 | |||||||||
| Deferred income taxes | 301.3 | 291.9 | |||||||||
| Other noncurrent liabilities | 208.2 | 206.7 | |||||||||
| Total liabilities | 3,149.2 | 2,324.0 | |||||||||
| Shareholders' equity | |||||||||||
| Preferred stock | — | — | |||||||||
| Common stock | 0.9 | 0.9 | |||||||||
| Treasury stock | (1,176.5) | (1,187.0) | |||||||||
| Additional paid-in capital | 859.9 | 839.0 | |||||||||
| Retained earnings | 4,159.3 | 3,934.3 | |||||||||
| Accumulated other comprehensive loss | (24.7) | (45.8) | |||||||||
| Total shareholders' equity | 3,818.9 | 3,541.4 | |||||||||
| Noncontrolling interest | (0.6) | (0.2) | |||||||||
| Total equity | 3,818.3 | 3,541.2 | |||||||||
| Total liabilities and equity | $ | 6,967.5 | $ | 5,865.2 | |||||||
IDEX CORPORATION
Condensed Consolidated Statements of Cash Flows
(in millions)
(unaudited)
| Nine Months Ended September 30, | |||||||||||
| 2024 | 2023 | ||||||||||
| Cash flows from operating activities | |||||||||||
| Net income | $ | 381.4 | $ | 487.3 | |||||||
| Adjustments to reconcile net income to net cash flows provided by operating activities: | |||||||||||
| Gain on sale of business | (4.0) | (93.8) | |||||||||
| Credit loss on note receivable from collaborative partner | — | 7.7 | |||||||||
| Depreciation | 49.9 | 41.9 | |||||||||
| Amortization of intangible assets | 75.0 | 70.6 | |||||||||
| Share-based compensation expense | 20.9 | 18.9 | |||||||||
| Deferred income taxes | 0.4 | (1.8) | |||||||||
| Changes in (net of the effect from acquisitions/divestitures and foreign currency translation): | |||||||||||
| Receivables - net | (14.5) | 11.6 | |||||||||
| Inventories - net | (21.6) | 24.5 | |||||||||
| Other current assets | (4.6) | 0.3 | |||||||||
| Trade accounts payable | 15.3 | (30.2) | |||||||||
| Deferred revenue | (4.3) | 5.6 | |||||||||
| Accrued expenses | (0.5) | (34.0) | |||||||||
| Other - net | 2.1 | 7.1 | |||||||||
| Net cash flows provided by operating activities | 495.5 | 515.7 | |||||||||
| Cash flows from investing activities | |||||||||||
| Capital expenditures | (49.6) | (68.3) | |||||||||
| Acquisition of businesses, net of cash acquired | (984.5) | (110.3) | |||||||||
| Proceeds from sale of business, net of cash remitted | 45.1 | 110.3 | |||||||||
| Purchases of marketable securities | — | (24.6) | |||||||||
| Proceeds from sale of marketable securities | 4.5 | — | |||||||||
| Other - net | (7.3) | 2.9 | |||||||||
| Net cash flows used in investing activities | (991.8) | (90.0) | |||||||||
| Cash flows from financing activities | |||||||||||
| Borrowings under revolving credit facilities | 279.3 | — | |||||||||
| Proceeds from issuance of long-term borrowings | 496.7 | 100.0 | |||||||||
| Payment of long-term borrowings | (25.0) | (250.0) | |||||||||
| Debt issuance costs | (1.2) | — | |||||||||
| Cash dividends paid to shareholders | (153.0) | (142.3) | |||||||||
| Proceeds from share issuances, net of shares withheld for taxes | 10.5 | 7.7 | |||||||||
| Repurchases of common stock | — | (1.1) | |||||||||
| Other - net | (0.6) | (1.0) | |||||||||
| Net cash flows provided by (used in) financing activities | 606.7 | (286.7) | |||||||||
| Effect of exchange rate changes on cash and cash equivalents | 6.6 | (6.5) | |||||||||
| Net increase in cash and cash equivalents and restricted cash | 117.0 | 132.5 | |||||||||
Cash and cash equivalents at beginning of year(1) | 534.3 | 430.2 | |||||||||
Cash and cash equivalents and restricted cash at end of period(1) | $ | 651.3 | $ | 562.7 | |||||||
(1) Includes $18.1 million of restricted cash at September 30, 2024. The restricted cash has been included in Other current assets in the Condensed Consolidated Balance Sheets. There was no restricted cash as of September 30, 2023, December 31, 2023, or December 31, 2022.
IDEX CORPORATION
Company and Segment Financial Information
(in millions)
(unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Fluid & Metering Technologies | |||||||||||||||||||||||
| Depreciation | $ | 4.3 | $ | 3.1 | $ | 12.9 | $ | 10.3 | |||||||||||||||
| Amortization of intangible assets | 5.2 | 5.6 | 15.7 | 17.3 | |||||||||||||||||||
| Restructuring expenses and asset impairments | 1.0 | 1.7 | 1.6 | 2.4 | |||||||||||||||||||
| Health & Science Technologies | |||||||||||||||||||||||
| Depreciation | $ | 10.6 | $ | 9.0 | $ | 29.5 | $ | 24.1 | |||||||||||||||
| Amortization of intangible assets | 19.7 | 16.7 | 54.6 | 48.5 | |||||||||||||||||||
| Restructuring expenses and asset impairments | 1.7 | 1.5 | 3.3 | 4.5 | |||||||||||||||||||
| Fire & Safety/Diversified Products | |||||||||||||||||||||||
| Depreciation | $ | 2.2 | $ | 2.3 | $ | 6.7 | $ | 6.7 | |||||||||||||||
| Amortization of intangible assets | 1.6 | 1.5 | 4.7 | 4.8 | |||||||||||||||||||
| Restructuring expenses and asset impairments | 0.1 | 0.4 | 0.2 | 0.8 | |||||||||||||||||||
| Corporate Office and Eliminations | |||||||||||||||||||||||
| Depreciation | $ | 0.3 | $ | 0.3 | $ | 0.8 | $ | 0.8 | |||||||||||||||
| Restructuring expenses and asset impairments | 0.2 | 0.5 | 0.3 | 0.5 | |||||||||||||||||||
| Total IDEX | |||||||||||||||||||||||
| Depreciation | $ | 17.4 | $ | 14.7 | $ | 49.9 | $ | 41.9 | |||||||||||||||
| Amortization of intangible assets | 26.5 | 23.8 | 75.0 | 70.6 | |||||||||||||||||||
| Restructuring expenses and asset impairments | 3.0 | 4.1 | 5.4 | 8.2 | |||||||||||||||||||
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, as identified in the reconciliations below. Reconciliations of non-GAAP financial performance metrics to their most directly 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. Due to rounding, numbers presented throughout this and other documents may not add up or recalculate precisely. The Company has not provided a reconciliation of Mott’s expected EBITDA for fiscal year 2024 or fiscal year 2025 because it is unable to quantify certain amounts that would be required to be included in Mott’s contribution to net income without unreasonable efforts. In addition, the Company believes such reconciliation would imply a degree of precision that would be confusing or misleading to investors.
All table footnotes can be found at the end of this Non-GAAP Measures section. There were no adjustments to GAAP financial performance metrics other than the items noted below.
•Organic orders and net sales are calculated excluding amounts from acquired or divested businesses during the first twelve months of ownership or prior to divestiture and excluding 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 net income attributable to IDEX is calculated as net income attributable to IDEX plus fair value inventory step-up charges, plus restructuring expenses and asset impairments, less the gain on sale of a business, plus the credit loss on a note receivable from a collaborative partner, plus acquisition-related intangible asset amortization, all net of the statutory tax expense or benefit.
•Adjusted diluted EPS attributable to IDEX is calculated as adjusted net income attributable to IDEX divided by the diluted weighted average shares outstanding.
•Consolidated Adjusted EBITDA is calculated as consolidated earnings before interest expense - net, taxes, depreciation and amortization, or consolidated EBITDA, less the gain on sale of a business, plus fair value inventory step-up charges, plus restructuring expenses and asset impairments, plus the credit loss on a note receivable from a collaborative partner.
•Consolidated Adjusted EBITDA margin is calculated as Consolidated Adjusted EBITDA divided by net sales.
•Free cash flow is calculated as cash flows from operating activities less capital expenditures. Free cash flow conversion is calculated as free cash flow divided by adjusted net income attributable to IDEX.
Table 1: Reconciliations of the Change in Net Sales to Organic Net Sales
| FMT | HST | FSDP | IDEX | ||||||||||||||||||||
| Three Months Ended September 30, 2024 | |||||||||||||||||||||||
| Change in net sales | — | % | (1 | %) | 4 | % | 1 | % | |||||||||||||||
| Less: | |||||||||||||||||||||||
Net impact from acquisitions/divestitures(1) | (3 | %) | 4 | % | — | % | 1 | % | |||||||||||||||
| Impact from foreign currency | 1 | % | — | % | — | % | — | % | |||||||||||||||
| Change in organic net sales | 2 | % | (5 | %) | 4 | % | — | % | |||||||||||||||
| Nine Months Ended September 30, 2024 | |||||||||||||||||||||||
| Change in net sales | (1 | %) | (8 | %) | 2 | % | (3 | %) | |||||||||||||||
| Less: | |||||||||||||||||||||||
Net impact from acquisitions/divestitures(1) | (1 | %) | 2 | % | — | % | — | % | |||||||||||||||
| Impact from foreign currency | — | % | — | % | — | % | — | % | |||||||||||||||
| Change in organic net sales | — | % | (10 | %) | 2 | % | (3 | %) | |||||||||||||||
Table 2: Reconciliations of Reported-to-Adjusted Gross Profit and Gross Margin (dollars in millions)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Gross profit | $ | 353.9 | $ | 349.6 | $ | 1,078.1 | $ | 1,110.1 | |||||||||||||||
| Fair value inventory step-up charge | 2.1 | 1.2 | 4.6 | 1.2 | |||||||||||||||||||
| Adjusted gross profit | $ | 356.0 | $ | 350.8 | $ | 1,082.7 | $ | 1,111.3 | |||||||||||||||
| Net sales | $ | 798.2 | $ | 793.4 | $ | 2,405.9 | $ | 2,485.0 | |||||||||||||||
| Gross margin | 44.3 | % | 44.1 | % | 44.8 | % | 44.7 | % | |||||||||||||||
| Adjusted gross margin | 44.6 | % | 44.2 | % | 45.0 | % | 44.7 | % | |||||||||||||||
Table 3: Reconciliations of Reported-to-Adjusted Net Income Attributable to IDEX and Diluted EPS Attributable to IDEX (in millions, other than per share amounts)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
| Reported net income attributable to IDEX | $ | 119.1 | $ | 209.1 | $ | 381.8 | $ | 487.5 | ||||||||||||||||||
| Fair value inventory step-up charge | 2.1 | 1.2 | 4.6 | 1.2 | ||||||||||||||||||||||
| Tax impact on fair value inventory step-up charge | (0.5) | (0.3) | (1.0) | (0.3) | ||||||||||||||||||||||
| Restructuring expenses and asset impairments | 3.0 | 4.1 | 5.4 | 8.2 | ||||||||||||||||||||||
| Tax impact on restructuring expenses and asset impairments | (0.7) | (0.9) | (1.3) | (1.8) | ||||||||||||||||||||||
Gain on sale of business(2) | 0.6 | (93.8) | (4.0) | (93.8) | ||||||||||||||||||||||
| Tax impact on gain of sale of business | — | 22.7 | — | 22.7 | ||||||||||||||||||||||
Credit loss on note receivable from collaborative partner(3) | — | — | — | 7.7 | ||||||||||||||||||||||
| Tax impact on credit loss on note receivable from collaborative partner | — | — | — | (1.6) | ||||||||||||||||||||||
| Acquisition-related intangible asset amortization | 26.5 | 23.8 | 75.0 | 70.6 | ||||||||||||||||||||||
| Tax impact on acquisition-related intangible asset amortization | (6.0) | (5.3) | (17.1) | (15.8) | ||||||||||||||||||||||
| Adjusted net income attributable to IDEX | $ | 144.1 | $ | 160.6 | $ | 443.4 | $ | 484.6 | ||||||||||||||||||
| Reported diluted EPS attributable to IDEX | $ | 1.57 | $ | 2.75 | $ | 5.02 | $ | 6.42 | ||||||||||||||||||
| Fair value inventory step-up charge | 0.03 | 0.02 | 0.06 | 0.02 | ||||||||||||||||||||||
| Tax impact on fair value inventory step-up charge | — | — | (0.01) | — | ||||||||||||||||||||||
| Restructuring expenses and asset impairments | 0.04 | 0.06 | 0.07 | 0.11 | ||||||||||||||||||||||
| Tax impact on restructuring expenses and asset impairments | (0.01) | (0.01) | (0.02) | (0.03) | ||||||||||||||||||||||
Gain on sale of business(2) | 0.01 | (1.24) | (0.05) | (1.24) | ||||||||||||||||||||||
| Tax impact on gain of sale of business | — | 0.30 | — | 0.30 | ||||||||||||||||||||||
Credit loss on note receivable from collaborative partner(3) | — | — | — | 0.10 | ||||||||||||||||||||||
| Tax impact on credit loss on note receivable from collaborative partner | — | — | — | (0.02) | ||||||||||||||||||||||
| Acquisition-related intangible asset amortization | 0.35 | 0.31 | 0.99 | 0.93 | ||||||||||||||||||||||
| Tax impact on acquisition-related intangible asset amortization | (0.09) | (0.07) | (0.22) | (0.21) | ||||||||||||||||||||||
| Adjusted diluted EPS attributable to IDEX | $ | 1.90 | $ | 2.12 | $ | 5.84 | $ | 6.38 | ||||||||||||||||||
| Diluted weighted average shares outstanding | 75.9 | 75.9 | 75.9 | 75.9 | ||||||||||||||||||||||
Table 4: Reconciliations of Net Income to Adjusted EBITDA (dollars in millions)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Reported net income | $ | 118.9 | $ | 209.0 | $ | 381.4 | $ | 487.3 | |||||||||||||||
| Provision for income taxes | 35.5 | 52.8 | 106.7 | 132.8 | |||||||||||||||||||
| Interest expense - net | 10.3 | 13.7 | 27.8 | 40.1 | |||||||||||||||||||
Gain on sale of business(2) | 0.6 | (93.8) | (4.0) | (93.8) | |||||||||||||||||||
| Depreciation | 17.4 | 14.7 | 49.9 | 41.9 | |||||||||||||||||||
| Amortization | 26.5 | 23.8 | 75.0 | 70.6 | |||||||||||||||||||
| Fair value inventory step-up charges | 2.1 | 1.2 | 4.6 | 1.2 | |||||||||||||||||||
| Restructuring expenses and asset impairments | 3.0 | 4.1 | 5.4 | 8.2 | |||||||||||||||||||
Credit loss on note receivable from collaborative partner(3) | — | — | — | 7.7 | |||||||||||||||||||
| Adjusted EBITDA | $ | 214.3 | $ | 225.5 | $ | 646.8 | $ | 696.0 | |||||||||||||||
| Adjusted EBITDA Components: | |||||||||||||||||||||||
| FMT | $ | 98.5 | $ | 103.6 | $ | 311.6 | $ | 323.9 | |||||||||||||||
| HST | 82.6 | 84.4 | 248.2 | 278.8 | |||||||||||||||||||
| FSDP | 54.7 | 52.8 | 159.9 | 157.0 | |||||||||||||||||||
| Corporate and other | (21.5) | (15.3) | (72.9) | (63.7) | |||||||||||||||||||
| Total Adjusted EBITDA | $ | 214.3 | $ | 225.5 | $ | 646.8 | $ | 696.0 | |||||||||||||||
| Net sales | $ | 798.2 | $ | 793.4 | $ | 2,405.9 | $ | 2,485.0 | |||||||||||||||
| Net income margin | 14.9 | % | 26.3 | % | 15.9 | % | 19.6 | % | |||||||||||||||
| Adjusted EBITDA margin | 26.9 | % | 28.4 | % | 26.9 | % | 28.0 | % | |||||||||||||||
Table 5: Reconciliations of Cash Flows from Operating Activities to Free Cash Flow (dollars in millions)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Cash flows from operating activities | $ | 205.3 | $ | 226.6 | $ | 495.5 | $ | 515.7 | |||||||||||||||
| Less: Capital expenditures | 13.7 | 20.1 | 49.6 | 68.3 | |||||||||||||||||||
| Free cash flow | $ | 191.6 | $ | 206.5 | $ | 445.9 | $ | 447.4 | |||||||||||||||
| Reported net income attributable to IDEX | $ | 119.1 | $ | 209.1 | $ | 381.8 | $ | 487.5 | |||||||||||||||
| Adjusted net income attributable to IDEX | 144.1 | 160.6 | 443.4 | 484.6 | |||||||||||||||||||
| Operating cash flow conversion | 172 | % | 108 | % | 130 | % | 106 | % | |||||||||||||||
| Free cash flow conversion | 133 | % | 129 | % | 101 | % | 92 | % | |||||||||||||||
Table 6: Reconciliation of Estimated 2024 Change in Net Sales to Change in Organic Net Sales
| Guidance | |||||||||||||||||||||||
| Fourth Quarter 2024 | Full Year 2024 | ||||||||||||||||||||||
| Low End | High End | Low End | High End | ||||||||||||||||||||
| Change in net sales | 10 | % | 11 | % | — | % | 1 | % | |||||||||||||||
| Less: | |||||||||||||||||||||||
| Net impact from acquisitions/divestitures | 6 | % | 6 | % | 2 | % | 2 | % | |||||||||||||||
| Impact from foreign currency | 1 | % | 1 | % | — | % | — | % | |||||||||||||||
| Change in organic net sales | 3 | % | 4 | % | (2 | %) | (1 | %) | |||||||||||||||
Table 7: Reconciliation of Estimated 2024 Diluted EPS Attributable to IDEX to Adjusted Diluted EPS Attributable to IDEX
| Guidance | ||||||||||||||
| Fourth Quarter 2024 | Full Year 2024 | |||||||||||||
| Estimated diluted EPS attributable to IDEX | $1.64 - $1.69 | $6.65 - $6.70 | ||||||||||||
| Fair value inventory step-up charge | 0.05 | 0.12 | ||||||||||||
| Tax impact on fair value inventory step-up charge | (0.01) | (0.03) | ||||||||||||
| Restructuring expenses and asset impairments | — | 0.08 | ||||||||||||
| Tax impact on restructuring expenses and asset impairments | — | (0.02) | ||||||||||||
| Gain on sale of business | — | (0.05) | ||||||||||||
| Tax impact on gain of sale of business | — | — | ||||||||||||
| Acquisition-related intangible asset amortization | 0.43 | 1.42 | ||||||||||||
| Tax impact on acquisition-related intangible asset amortization | (0.10) | (0.32) | ||||||||||||
| Estimated adjusted diluted EPS attributable to IDEX | $2.01 - $2.06 | $7.85 - $7.90 | ||||||||||||
Table 8: Reconciliation of Estimated 2024 Net Income to Adjusted EBITDA (dollars in millions)
| Guidance | |||||||||||||||||||||||
| Fourth Quarter 2024 | Full Year 2024 | ||||||||||||||||||||||
| Low End | High End | Low End | High End | ||||||||||||||||||||
Estimated Reported net income | $ | 123.1 | $ | 127.4 | $ | 504.5 | $ | 508.8 | |||||||||||||||
| Provision for income taxes | 38.0 | 39.4 | 144.7 | 146.1 | |||||||||||||||||||
| Interest expense - net | 18.2 | 18.2 | 46.0 | 46.0 | |||||||||||||||||||
| Gain on sale of business | — | — | (4.0) | (4.0) | |||||||||||||||||||
| Depreciation | 19.3 | 19.3 | 69.2 | 69.2 | |||||||||||||||||||
| Amortization of intangible assets | 32.6 | 32.6 | 107.6 | 107.6 | |||||||||||||||||||
| Fair value inventory step-up charge | 4.2 | 4.2 | 8.8 | 8.8 | |||||||||||||||||||
| Restructuring expenses and asset impairments | 0.4 | 0.4 | 5.8 | 5.8 | |||||||||||||||||||
Estimated Adjusted EBITDA | $ | 235.8 | $ | 241.5 | $ | 882.6 | $ | 888.3 | |||||||||||||||
Estimated Net sales | $ | 874.3 | $ | 882.3 | $ | 3,280.2 | $ | 3,288.2 | |||||||||||||||
Estimated Net income margin | 14.1% | 14.4% | 15.4% | 15.5% | |||||||||||||||||||
Estimated Adjusted EBITDA margin | 27.0% | 27.4% | 26.9% | 27.0% | |||||||||||||||||||
(1) Represents the sales from acquired or divested businesses during the first 12 months of ownership or prior to divestiture.
(2) Activity recorded during the three months ended September 30, 2024 represents the finalization of the gain on the sale of Alfa Valvole, Srl resulting in a $0.6 million downward adjustment during the third quarter of 2024.
(3) Represents a reserve on an investment with a collaborative partner recorded in Other expense (income) – net during the nine months ended September 30, 2023. During the fourth quarter of 2023, the Company converted the promissory note receivable from the collaborative partner to equity, resulting in a cost method investment with zero value.