Delaware | 1-10235 | 36-3555336 | ||||||||||||
(State or other jurisdiction | (Commission File Number) | (IRS Employer | ||||||||||||
of incorporation) | Identification No.) |
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Common Stock, par value $.01 per share | IEX | New York Stock Exchange |
Emerging growth company | ☐ | |||||||||||||||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ |
IDEX CORPORATION | ||||||||
By: | /s/ ALLISON S. LAUSAS | |||||||
Allison S. Lausas | ||||||||
Interim Chief Financial Officer and Chief Accounting Officer | ||||||||
October 26, 2023 |
Three Months Ended September 30, | |||||||||||||||||
(Dollars in millions, except per share amounts) | 2023 | 2022 | Increase (Decrease) | ||||||||||||||
Net sales | $ | 793.4 | $ | 824.0 | $ | (30.6) | |||||||||||
Adjusted net sales* | 793.4 | 806.1 | (12.7) | ||||||||||||||
Organic net sales growth* | (6 | %) | |||||||||||||||
Gross profit | 349.6 | 381.8 | (32.2) | ||||||||||||||
Adjusted gross profit* | 350.8 | 363.9 | (13.1) | ||||||||||||||
Net income attributable to IDEX | 209.1 | 178.7 | 30.4 | ||||||||||||||
Adjusted net income attributable to IDEX* | 160.6 | 161.9 | (1.3) | ||||||||||||||
Adjusted EBITDA* | 225.5 | 231.4 | (5.9) | ||||||||||||||
Diluted EPS attributable to IDEX | 2.75 | 2.36 | 0.39 | ||||||||||||||
Adjusted diluted EPS attributable to IDEX* | 2.12 | 2.14 | (0.02) | ||||||||||||||
Cash flows from operating activities | 226.6 | 198.1 | 28.5 | ||||||||||||||
Free cash flow* | 206.5 | 181.8 | 24.7 | ||||||||||||||
Gross margin | 44.1 | % | 46.3 | % | (220) bps | ||||||||||||
Adjusted gross margin* | 44.2 | % | 45.1 | % | (90) bps | ||||||||||||
Net income margin | 26.3 | % | 21.7 | % | 460 bps | ||||||||||||
Adjusted EBITDA margin* | 28.4 | % | 28.7 | % | (30) bps | ||||||||||||
*These are non-GAAP measures. See the definitions of these non-GAAP measures in the section in this release titled “Non-GAAP Measures of Financial Performance” and reconciliations to their most directly comparable GAAP financial measures in the reconciliation tables at the end of this release. |
Three Months Ended September 30, | |||||||||||||||||
(Dollars in millions) | 2023 | 2022 | Increase (Decrease) | ||||||||||||||
Net sales | $ | 301.1 | $ | 307.6 | $ | (6.5) | |||||||||||
Adjusted EBITDA | 103.6 | 104.4 | (0.8) | ||||||||||||||
Adjusted EBITDA margin | 34.4 | % | 33.9 | % | 50 bps |
Three Months Ended September 30, | |||||||||||||||||
(Dollars in millions) | 2023 | 2022 | Increase (Decrease) | ||||||||||||||
Net sales | $ | 313.2 | $ | 345.0 | $ | (31.8) | |||||||||||
Adjusted net sales* | 313.2 | 327.1 | (13.9) | ||||||||||||||
Adjusted EBITDA | 84.4 | 101.4 | (17.0) | ||||||||||||||
Adjusted EBITDA margin | 26.9 | % | 31.0 | % | (410) bps | ||||||||||||
*This is a non-GAAP measure. See the definition of this non-GAAP measure in the section in this release titled “Non-GAAP Measures of Financial Performance” and reconciliation to its most directly comparable GAAP financial measure in the reconciliation tables at the end of this release. |
Three Months Ended September 30, | |||||||||||||||||
(Dollars in millions) | 2023 | 2022 | Increase (Decrease) | ||||||||||||||
Net sales | $ | 180.6 | $ | 172.4 | $ | 8.2 | |||||||||||
Adjusted EBITDA | 52.8 | 47.8 | 5.0 | ||||||||||||||
Adjusted EBITDA margin | 29.3 | % | 27.8 | % | 150 bps |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net sales | $ | 793.4 | $ | 824.0 | $ | 2,485.0 | $ | 2,371.2 | |||||||||||||||
Cost of sales | 443.8 | 442.2 | 1,374.9 | 1,290.0 | |||||||||||||||||||
Gross profit | 349.6 | 381.8 | 1,110.1 | 1,081.2 | |||||||||||||||||||
Selling, general and administrative expenses | 165.9 | 161.9 | 529.9 | 483.7 | |||||||||||||||||||
Restructuring expenses and asset impairments | 4.1 | 17.7 | 8.2 | 21.1 | |||||||||||||||||||
Operating income | 179.6 | 202.2 | 572.0 | 576.4 | |||||||||||||||||||
Gain on sale of business | (93.8) | (34.8) | (93.8) | (34.8) | |||||||||||||||||||
Other (income) expense - net | (2.1) | (1.0) | 5.6 | (3.3) | |||||||||||||||||||
Interest expense | 13.7 | 9.6 | 40.1 | 28.6 | |||||||||||||||||||
Income before income taxes | 261.8 | 228.4 | 620.1 | 585.9 | |||||||||||||||||||
Provision for income taxes | 52.8 | 49.7 | 132.8 | 129.2 | |||||||||||||||||||
Net income | 209.0 | 178.7 | 487.3 | 456.7 | |||||||||||||||||||
Net loss attributable to noncontrolling interest | 0.1 | — | 0.2 | 0.2 | |||||||||||||||||||
Net income attributable to IDEX | $ | 209.1 | $ | 178.7 | $ | 487.5 | $ | 456.9 | |||||||||||||||
Earnings per Common Share: | |||||||||||||||||||||||
Basic earnings per common share attributable to IDEX | $ | 2.76 | $ | 2.37 | $ | 6.44 | $ | 6.02 | |||||||||||||||
Diluted earnings per common share attributable to IDEX | $ | 2.75 | $ | 2.36 | $ | 6.42 | $ | 6.00 | |||||||||||||||
Share Data: | |||||||||||||||||||||||
Basic weighted average common shares outstanding | 75.6 | 75.4 | 75.6 | 75.8 | |||||||||||||||||||
Diluted weighted average common shares outstanding | 75.9 | 75.8 | 75.9 | 76.1 |
September 30, 2023 | December 31, 2022 | ||||||||||
Assets | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | 562.7 | $ | 430.2 | |||||||
Receivables - net | 430.6 | 442.8 | |||||||||
Inventories - net | 446.6 | 470.9 | |||||||||
Other current assets | 78.3 | 55.4 | |||||||||
Total current assets | 1,518.2 | 1,399.3 | |||||||||
Property, plant and equipment - net | 421.5 | 382.1 | |||||||||
Goodwill and intangible assets - net | 3,596.9 | 3,585.9 | |||||||||
Other noncurrent assets | 133.0 | 144.6 | |||||||||
Total assets | $ | 5,669.6 | $ | 5,511.9 | |||||||
Liabilities and equity | |||||||||||
Current liabilities | |||||||||||
Trade accounts payable | $ | 176.3 | $ | 208.9 | |||||||
Accrued expenses | 262.0 | 289.1 | |||||||||
Current portion of long-term borrowings - net | 0.7 | — | |||||||||
Dividends payable | 48.5 | 45.6 | |||||||||
Total current liabilities | 487.5 | 543.6 | |||||||||
Long-term borrowings - net | 1,320.8 | 1,468.7 | |||||||||
Other noncurrent liabilities | 474.1 | 460.0 | |||||||||
Total liabilities | 2,282.4 | 2,472.3 | |||||||||
Shareholders' equity | 3,387.1 | 3,039.3 | |||||||||
Noncontrolling interest | 0.1 | 0.3 | |||||||||
Total equity | 3,387.2 | 3,039.6 | |||||||||
Total liabilities and equity | $ | 5,669.6 | $ | 5,511.9 |
Nine Months Ended September 30, | |||||||||||
2023 | 2022 | ||||||||||
Cash flows from operating activities | |||||||||||
Net income | $ | 487.3 | $ | 456.7 | |||||||
Adjustments to reconcile net income to net cash flows provided by operating activities: | |||||||||||
Gain on sale of business | (93.8) | (34.8) | |||||||||
Asset impairments | 0.8 | 17.0 | |||||||||
Credit loss on note receivable from collaborative partner | 7.7 | — | |||||||||
Depreciation | 41.9 | 37.0 | |||||||||
Amortization of intangible assets | 70.6 | 49.2 | |||||||||
Share-based compensation expense | 18.9 | 16.4 | |||||||||
Deferred income taxes | (1.8) | 0.2 | |||||||||
Changes in (net of the effect from acquisitions/divestitures and foreign currency translation): | |||||||||||
Receivables | 11.6 | (62.5) | |||||||||
Inventories | 24.5 | (99.6) | |||||||||
Other current assets | 0.3 | (4.8) | |||||||||
Trade accounts payable | (30.2) | 25.6 | |||||||||
Deferred revenue | 5.6 | (24.7) | |||||||||
Accrued expenses | (34.0) | 13.1 | |||||||||
Other - net | 6.3 | 1.3 | |||||||||
Net cash flows provided by operating activities | 515.7 | 390.1 | |||||||||
Cash flows from investing activities | |||||||||||
Capital expenditures | (68.3) | (48.0) | |||||||||
Acquisition of businesses, net of cash acquired | (110.3) | (232.6) | |||||||||
Proceeds from sale of business, net of cash remitted | 110.3 | 49.4 | |||||||||
Purchases of marketable securities | (24.6) | — | |||||||||
Other - net | 2.9 | 6.8 | |||||||||
Net cash flows used in investing activities | (90.0) | (224.4) | |||||||||
Cash flows from financing activities | |||||||||||
Borrowings under revolving credit facilities | — | 40.0 | |||||||||
Payments under revolving credit facilities | — | (40.0) | |||||||||
Proceeds from issuance of long-term borrowings | 100.0 | — | |||||||||
Payment of long-term borrowings | (251.0) | — | |||||||||
Dividends paid | (142.3) | (132.2) | |||||||||
Proceeds from stock option exercises | 7.7 | 3.9 | |||||||||
Repurchases of common stock | (1.1) | (146.3) | |||||||||
Net cash flows used in financing activities | (286.7) | (274.6) | |||||||||
Effect of exchange rate changes on cash and cash equivalents | (6.5) | (65.8) | |||||||||
Net increase (decrease) in cash and cash equivalents | 132.5 | (174.7) | |||||||||
Cash and cash equivalents at beginning of year | 430.2 | 855.4 | |||||||||
Cash and cash equivalents at end of period | $ | 562.7 | $ | 680.7 |
Three Months Ended September 30, (a) |
Nine Months Ended September 30, (a) |
|||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Fluid & Metering Technologies | ||||||||||||||||||||||||||
Net sales | $ | 301.1 | $ | 307.6 | $ | 948.0 | $ | 879.5 | ||||||||||||||||||
Adjusted net sales (b) |
301.1 | 307.6 | 948.0 | 879.5 | ||||||||||||||||||||||
Adjusted EBITDA(c) |
103.6 | 104.4 | 323.9 | 287.8 | ||||||||||||||||||||||
Adjusted EBITDA margin | 34.4 | % | 33.9 | % | 34.2 | % | 32.7 | % | ||||||||||||||||||
Depreciation | 3.1 | 3.9 | 10.3 | 12.0 | ||||||||||||||||||||||
Amortization of intangible assets | 5.6 | 5.8 | 17.3 | 15.1 | ||||||||||||||||||||||
Capital expenditures | 6.4 | 7.7 | 19.4 | 17.4 | ||||||||||||||||||||||
Health & Science Technologies | ||||||||||||||||||||||||||
Net sales | $ | 313.2 | $ | 345.0 | $ | 1,003.7 | $ | 986.2 | ||||||||||||||||||
Adjusted net sales(b) |
313.2 | 327.1 | 1,003.7 | 968.3 | ||||||||||||||||||||||
Adjusted EBITDA(c) |
84.4 | 101.4 | 278.8 | 304.8 | ||||||||||||||||||||||
Adjusted EBITDA margin | 26.9 | % | 31.0 | % | 27.8 | % | 31.5 | % | ||||||||||||||||||
Depreciation | 9.0 | 6.2 | 24.1 | 18.4 | ||||||||||||||||||||||
Amortization of intangible assets | 16.7 | 9.6 | 48.5 | 29.2 | ||||||||||||||||||||||
Capital expenditures | 12.2 | 6.4 | 40.9 | 22.9 | ||||||||||||||||||||||
Fire & Safety/Diversified Products | ||||||||||||||||||||||||||
Net sales | $ | 180.6 | $ | 172.4 | $ | 539.8 | $ | 508.3 | ||||||||||||||||||
Adjusted net sales(b) |
180.6 | 172.4 | 539.8 | 508.3 | ||||||||||||||||||||||
Adjusted EBITDA(c) |
52.8 | 47.8 | 157.0 | 137.3 | ||||||||||||||||||||||
Adjusted EBITDA margin | 29.3 | % | 27.8 | % | 29.1 | % | 27.0 | % | ||||||||||||||||||
Depreciation | 2.3 | 2.1 | 6.7 | 6.3 | ||||||||||||||||||||||
Amortization of intangible assets | 1.5 | 1.6 | 4.8 | 4.9 | ||||||||||||||||||||||
Capital expenditures | 1.5 | 2.2 | 7.4 | 7.5 | ||||||||||||||||||||||
Corporate Office and Eliminations | ||||||||||||||||||||||||||
Intersegment sales eliminations | $ | (1.5) | $ | (1.0) | $ | (6.5) | $ | (2.8) | ||||||||||||||||||
Adjusted EBITDA(c) |
(15.3) | (22.2) | (63.7) | (64.6) | ||||||||||||||||||||||
Depreciation | 0.3 | 0.1 | 0.8 | 0.3 | ||||||||||||||||||||||
Capital expenditures | — | — | 0.6 | 0.2 | ||||||||||||||||||||||
Company | ||||||||||||||||||||||||||
Net sales | $ | 793.4 | $ | 824.0 | $ | 2,485.0 | $ | 2,371.2 | ||||||||||||||||||
Adjusted net sales(b) |
793.4 | 806.1 | 2,485.0 | 2,353.3 | ||||||||||||||||||||||
Adjusted EBITDA(b) |
225.5 | 231.4 | 696.0 | 665.3 | ||||||||||||||||||||||
Adjusted EBITDA margin(b) |
28.4 | % | 28.7 | % | 28.0 | % | 28.3 | % | ||||||||||||||||||
Depreciation | 14.7 | 12.3 | 41.9 | 37.0 | ||||||||||||||||||||||
Amortization of intangible assets | 23.8 | 17.0 | 70.6 | 49.2 | ||||||||||||||||||||||
Capital expenditures | 20.1 | 16.3 | 68.3 | 48.0 | ||||||||||||||||||||||
(a) | Three and nine month data includes the results of the acquisition of Iridian Spectral Technologies (May 2023) and the Muon Group acquisition (November 2022) in the HST segment from the dates of acquisition and nine month data includes the results of the acquisition of KZ CO. (May 2022) and the acquisition of Nexsight, LLC and its businesses Envirosight, WinCan, MyTana and Pipeline Renewal Technologies (February 2022) in the FMT segment from the dates of acquisition. Three and nine month data also includes the results of Micropump (August 2023) in the HST segment and Knight (September 2022) in the FMT segment through the dates of disposition. | |||||||||||||||||||||||||
(b) | These are non-GAAP financial measures. For a reconciliation of these non-GAAP financial measures to their most directly comparable measure calculated and presented in accordance with GAAP, see the reconciliation tables below. | |||||||||||||||||||||||||
(c) | Segment Adjusted EBITDA excludes unallocated corporate costs which are included in Corporate Office and Eliminations. |
Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||
FMT | HST | FSDP | IDEX | FMT | HST | FSDP | IDEX | ||||||||||||||||||||||||||||||||||||||||
Change in net sales | (2 | %) | (9 | %) | 5 | % | (4 | %) | 8 | % | 2 | % | 6 | % | 5 | % | |||||||||||||||||||||||||||||||
Net impact from acquisitions/divestitures | 2 | % | (10 | %) | — | % | (3 | %) | (2 | %) | (10 | %) | — | % | (5 | %) | |||||||||||||||||||||||||||||||
Impact from foreign currency | (1 | %) | (1 | %) | (2 | %) | (1 | %) | — | % | — | % | 1 | % | — | % | |||||||||||||||||||||||||||||||
Impact from the exit of a COVID-19 testing application(1) |
— | % | 5 | % | — | % | 2 | % | — | % | 2 | % | — | % | 1 | % | |||||||||||||||||||||||||||||||
Change in organic net sales | (1 | %) | (15 | %) | 3 | % | (6 | %) | 6 | % | (6 | %) | 7 | % | 1 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Gross profit | $ | 349.6 | $ | 381.8 | $ | 1,110.1 | $ | 1,081.2 | |||||||||||||||
Impact from the exit of a COVID-19 testing application(1) |
— | (17.9) | — | (17.9) | |||||||||||||||||||
Fair value inventory step-up charges | 1.2 | — | 1.2 | 0.4 | |||||||||||||||||||
Adjusted gross profit | $ | 350.8 | $ | 363.9 | $ | 1,111.3 | $ | 1,063.7 | |||||||||||||||
Net sales | $ | 793.4 | $ | 824.0 | $ | 2,485.0 | $ | 2,371.2 | |||||||||||||||
Impact from the exit of a COVID-19 testing application(1) |
— | (17.9) | — | (17.9) | |||||||||||||||||||
Adjusted net sales | $ | 793.4 | $ | 806.1 | $ | 2,485.0 | $ | 2,353.3 | |||||||||||||||
Gross margin | 44.1 | % | 46.3 | % | 44.7 | % | 45.6 | % | |||||||||||||||
Adjusted gross margin | 44.2 | % | 45.1 | % | 44.7 | % | 45.2 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Reported net income attributable to IDEX | $ | 209.1 | $ | 178.7 | $ | 487.5 | $ | 456.9 | ||||||||||||||||||
Fair value inventory step-up charges | 1.2 | — | 1.2 | 0.4 | ||||||||||||||||||||||
Tax impact on fair value inventory step-up charges | (0.3) | — | (0.3) | (0.1) | ||||||||||||||||||||||
Restructuring expenses and asset impairments | 4.1 | — | 8.2 | 2.8 | ||||||||||||||||||||||
Tax impact on restructuring expenses and asset impairments | (0.9) | — | (1.8) | (0.7) | ||||||||||||||||||||||
Net impact from the exit of a COVID-19 testing application(1) |
— | (1.1) | — | (1.1) | ||||||||||||||||||||||
Tax impact on the exit of a COVID-19 testing application | — | 0.3 | — | 0.3 | ||||||||||||||||||||||
Gain on sale of business | (93.8) | (34.8) | (93.8) | (34.8) | ||||||||||||||||||||||
Tax impact on gain on sale of business | 22.7 | 5.5 | 22.7 | 5.5 | ||||||||||||||||||||||
Gains on sales of assets | — | — | — | (2.7) | ||||||||||||||||||||||
Tax impact on gains on sales of assets | — | — | — | 0.6 | ||||||||||||||||||||||
Credit loss on note receivable from collaborative partner(2) |
— | — | 7.7 | — | ||||||||||||||||||||||
Tax impact on credit loss on note receivable from collaborative partner | — | — | (1.6) | — | ||||||||||||||||||||||
Acquisition-related intangible asset amortization | 23.8 | 17.0 | 70.6 | 49.2 | ||||||||||||||||||||||
Tax impact on acquisition-related intangible asset amortization | (5.3) | (3.7) | (15.8) | (11.0) | ||||||||||||||||||||||
Adjusted net income attributable to IDEX | $ | 160.6 | $ | 161.9 | $ | 484.6 | $ | 465.3 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Reported diluted EPS attributable to IDEX | $ | 2.75 | $ | 2.36 | $ | 6.42 | $ | 6.00 | ||||||||||||||||||
Fair value inventory step-up charges | 0.02 | — | 0.02 | — | ||||||||||||||||||||||
Tax impact on fair value inventory step-up charges | — | — | — | — | ||||||||||||||||||||||
Restructuring expenses and asset impairments | 0.06 | — | 0.11 | 0.04 | ||||||||||||||||||||||
Tax impact on restructuring expenses and asset impairments | (0.01) | — | (0.03) | (0.01) | ||||||||||||||||||||||
Net impact from the exit of a COVID-19 testing application(1) |
— | (0.01) | — | (0.01) | ||||||||||||||||||||||
Tax impact on the exit of a COVID-19 testing application | — | — | — | — | ||||||||||||||||||||||
Gain on sale of business | (1.24) | (0.46) | (1.24) | (0.46) | ||||||||||||||||||||||
Tax impact on gain on sale of business | 0.30 | 0.07 | 0.30 | 0.07 | ||||||||||||||||||||||
Gains on sales of assets | — | — | — | (0.03) | ||||||||||||||||||||||
Tax impact on gains on sales of assets | — | — | — | 0.01 | ||||||||||||||||||||||
Credit loss on note receivable from collaborative partner(2) |
— | — | 0.10 | — | ||||||||||||||||||||||
Tax impact on credit loss on note receivable from collaborative partner | — | — | (0.02) | — | ||||||||||||||||||||||
Acquisition-related intangible asset amortization | 0.31 | 0.23 | 0.93 | 0.65 | ||||||||||||||||||||||
Tax impact on acquisition-related intangible asset amortization | (0.07) | (0.05) | (0.21) | (0.14) | ||||||||||||||||||||||
Adjusted diluted EPS attributable to IDEX | $ | 2.12 | $ | 2.14 | $ | 6.38 | $ | 6.12 | ||||||||||||||||||
Diluted weighted average shares outstanding | 75.9 | 75.8 | 75.9 | 76.1 |
Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FMT | HST | FSDP | Corporate | IDEX | FMT | HST | FSDP | Corporate | IDEX | ||||||||||||||||||||||||||||||||||||||||||||||||||
Reported net income | $ | — | $ | — | $ | — | $ | — | $ | 209.0 | $ | — | $ | — | $ | — | $ | — | $ | 178.7 | |||||||||||||||||||||||||||||||||||||||
Provision for income taxes | — | — | — | — | 52.8 | — | — | — | — | 49.7 | |||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | — | — | — | — | 13.7 | — | — | — | — | 9.6 | |||||||||||||||||||||||||||||||||||||||||||||||||
Other (income) expense - net | — | — | — | — | (2.1) | — | — | — | — | (1.0) | |||||||||||||||||||||||||||||||||||||||||||||||||
(Gain) on sale of business | — | — | — | — | (93.8) | — | — | — | — | (34.8) | |||||||||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | 92.1 | 54.7 | 48.4 | (15.6) | 179.6 | 94.5 | 85.6 | 43.6 | (21.5) | 202.2 | |||||||||||||||||||||||||||||||||||||||||||||||||
Other income (expense) - net | 1.1 | 1.3 | 0.2 | (0.5) | 2.1 | 0.2 | 1.1 | 0.5 | (0.8) | 1.0 | |||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation | 3.1 | 9.0 | 2.3 | 0.3 | 14.7 | 3.9 | 6.2 | 2.1 | 0.1 | 12.3 | |||||||||||||||||||||||||||||||||||||||||||||||||
Amortization | 5.6 | 16.7 | 1.5 | — | 23.8 | 5.8 | 9.6 | 1.6 | — | 17.0 | |||||||||||||||||||||||||||||||||||||||||||||||||
Fair value inventory step-up charges | — | 1.2 | — | — | 1.2 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring expenses and asset impairments | 1.7 | 1.5 | 0.4 | 0.5 | 4.1 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Net impact from the exit of a COVID-19 testing application(1) |
— | — | — | — | — | — | (1.1) | — | — | (1.1) | |||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 103.6 | $ | 84.4 | $ | 52.8 | $ | (15.3) | $ | 225.5 | $ | 104.4 | $ | 101.4 | $ | 47.8 | $ | (22.2) | $ | 231.4 | |||||||||||||||||||||||||||||||||||||||
Net sales (eliminations) | $ | 301.1 | $ | 313.2 | $ | 180.6 | $ | (1.5) | $ | 793.4 | $ | 307.6 | $ | 345.0 | $ | 172.4 | $ | (1.0) | $ | 824.0 | |||||||||||||||||||||||||||||||||||||||
Impact from the exit of a COVID-19 testing application(1) |
— | — | — | — | — | — | (17.9) | — | — | (17.9) | |||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted net sales (eliminations) | $ | 301.1 | $ | 313.2 | $ | 180.6 | $ | (1.5) | $ | 793.4 | $ | 307.6 | $ | 327.1 | $ | 172.4 | $ | (1.0) | $ | 806.1 | |||||||||||||||||||||||||||||||||||||||
Net income margin | 26.3% | 21.7% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA margin | 34.4% | 26.9% | 29.3% | n/m | 28.4% | 33.9% | 31.0% | 27.8% | n/m | 28.7% |
Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FMT | HST | FSDP | Corporate | IDEX | FMT | HST | FSDP | Corporate | IDEX | ||||||||||||||||||||||||||||||||||||||||||||||||||
Reported net income | $ | — | $ | — | $ | — | $ | — | $ | 487.3 | $ | — | $ | — | $ | — | $ | — | $ | 456.7 | |||||||||||||||||||||||||||||||||||||||
Provision for income taxes | — | — | — | — | 132.8 | — | — | — | — | 129.2 | |||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | — | — | — | — | 40.1 | — | — | — | — | 28.6 | |||||||||||||||||||||||||||||||||||||||||||||||||
Other (income) expense - net | — | — | — | — | 5.6 | — | — | — | — | (3.3) | |||||||||||||||||||||||||||||||||||||||||||||||||
(Gain) on sale of business | — | — | — | — | (93.8) | — | — | — | — | (34.8) | |||||||||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | 291.9 | 199.7 | 145.0 | (64.6) | 572.0 | 257.8 | 255.7 | 124.0 | (61.1) | 576.4 | |||||||||||||||||||||||||||||||||||||||||||||||||
Other income (expense) - net | 2.0 | 0.8 | (0.3) | (8.1) | (5.6) | 2.0 | 2.5 | 2.6 | (3.8) | 3.3 | |||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation | 10.3 | 24.1 | 6.7 | 0.8 | 41.9 | 12.0 | 18.4 | 6.3 | 0.3 | 37.0 | |||||||||||||||||||||||||||||||||||||||||||||||||
Amortization | 17.3 | 48.5 | 4.8 | — | 70.6 | 15.1 | 29.2 | 4.9 | — | 49.2 | |||||||||||||||||||||||||||||||||||||||||||||||||
Fair value inventory step-up charges | — | 1.2 | — | — | 1.2 | 0.4 | — | — | — | 0.4 | |||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring expenses and asset impairments | 2.4 | 4.5 | 0.8 | 0.5 | 8.2 | 1.7 | 0.1 | 1.0 | — | 2.8 | |||||||||||||||||||||||||||||||||||||||||||||||||
Net impact from the exit of a COVID-19 testing application(1) |
— | — | — | — | — | — | (1.1) | — | — | (1.1) | |||||||||||||||||||||||||||||||||||||||||||||||||
Gains on sales of assets | — | — | — | — | — | (1.2) | — | (1.5) | — | (2.7) | |||||||||||||||||||||||||||||||||||||||||||||||||
Credit loss on note receivable from collaborative partner(2) |
— | — | — | 7.7 | 7.7 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 323.9 | $ | 278.8 | $ | 157.0 | $ | (63.7) | $ | 696.0 | $ | 287.8 | $ | 304.8 | $ | 137.3 | $ | (64.6) | $ | 665.3 | |||||||||||||||||||||||||||||||||||||||
Net sales (eliminations) | $ | 948.0 | $ | 1,003.7 | $ | 539.8 | $ | (6.5) | $ | 2,485.0 | $ | 879.5 | $ | 986.2 | $ | 508.3 | $ | (2.8) | $ | 2,371.2 | |||||||||||||||||||||||||||||||||||||||
Impact from the exit of a COVID-19 testing application(1) |
— | — | — | — | — | — | (17.9) | — | — | (17.9) | |||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted net sales (eliminations) | $ | 948.0 | $ | 1,003.7 | $ | 539.8 | $ | (6.5) | $ | 2,485.0 | $ | 879.5 | $ | 968.3 | $ | 508.3 | $ | (2.8) | $ | 2,353.3 | |||||||||||||||||||||||||||||||||||||||
Net income margin | 19.6% | 19.3% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA margin | 34.2% | 27.8% | 29.1% | n/m | 28.0% | 32.7% | 31.5% | 27.0% | n/m | 28.3% |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Cash flows from operating activities | $ | 226.6 | $ | 198.1 | $ | 515.7 | $ | 390.1 | |||||||||||||||
Less: Capital expenditures | 20.1 | 16.3 | 68.3 | 48.0 | |||||||||||||||||||
Free cash flow | $ | 206.5 | $ | 181.8 | $ | 447.4 | $ | 342.1 |
Guidance | |||||||||||||||||||||||
Fourth Quarter 2023 | Full Year 2023 | ||||||||||||||||||||||
Low End | High End | Low End | High End | ||||||||||||||||||||
Change in net sales | (6 | %) | (5 | %) | 1 | % | 2 | % | |||||||||||||||
Net impact from acquisitions/divestitures | (2 | %) | (2 | %) | (4 | %) | (4 | %) | |||||||||||||||
Impact from foreign currency | (1 | %) | (1 | %) | — | % | — | % | |||||||||||||||
Impact from the exit of a COVID-19 testing application(1) |
— | % | — | % | 1 | % | 1 | % | |||||||||||||||
Change in organic net sales | (9 | %) | (8 | %) | (2 | %) | (1 | %) |
Guidance | ||||||||||||||
Fourth Quarter 2023 | Full Year 2023 | |||||||||||||
Estimated diluted EPS attributable to IDEX | $1.50 - $1.55 | $7.91 - $7.96 | ||||||||||||
Fair value inventory step-up charges | — | 0.02 | ||||||||||||
Tax impact on fair value inventory step-up charges | — | — | ||||||||||||
Restructuring expenses and asset impairments | — | 0.12 | ||||||||||||
Tax impact on restructuring expenses and asset impairments | — | (0.02) | ||||||||||||
Gain on sale of business | — | (1.24) | ||||||||||||
Tax impact on gain on sale of business | — | 0.30 | ||||||||||||
Credit loss on note receivable from collaborative partner(1) |
— | 0.10 | ||||||||||||
Tax impact on credit loss on note receivable from collaborative partner | — | (0.02) | ||||||||||||
Acquisition-related intangible asset amortization | 0.32 | 1.25 | ||||||||||||
Tax impact on acquisition-related intangible asset amortization | (0.08) | (0.29) | ||||||||||||
Estimated adjusted diluted EPS attributable to IDEX | $1.74 - $1.79 | $8.13 - $8.18 |
Guidance | |||||||||||||||||||||||
Fourth Quarter 2023 | Full Year 2023 | ||||||||||||||||||||||
Low End | High End | Low End | High End | ||||||||||||||||||||
Reported net income | $ | 113.4 | $ | 117.1 | $ | 600.7 | $ | 604.3 | |||||||||||||||
Provision for income taxes | 32.7 | 33.6 | 165.3 | 166.2 | |||||||||||||||||||
Interest expense | 11.6 | 11.6 | 51.7 | 51.7 | |||||||||||||||||||
Gain on sale of business | — | — | (93.8) | (93.8) | |||||||||||||||||||
Depreciation | 16.1 | 16.1 | 58.1 | 58.1 | |||||||||||||||||||
Amortization of intangible assets | 24.1 | 24.1 | 94.7 | 94.7 | |||||||||||||||||||
Fair value inventory step-up charges | — | — | 1.2 | 1.2 | |||||||||||||||||||
Restructuring expenses and asset impairments | — | — | 8.2 | 8.2 | |||||||||||||||||||
Credit loss on note receivable from collaborative partner(1) |
— | — | 7.7 | 7.7 | |||||||||||||||||||
Adjusted EBITDA | $ | 197.9 | $ | 202.5 | $ | 893.8 | $ | 898.3 | |||||||||||||||
Net sales | $ | 765.1 | $ | 770.8 | $ | 3,250.1 | $ | 3,255.8 | |||||||||||||||
Net income margin | 15% | 15% | 19% | 19% | |||||||||||||||||||
Adjusted EBITDA margin | 26% | 26% | 27.5% | 27.5% |