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)) |
(a) | Exhibits |
99.1 | Press release dated January 29, 2019 announcing IDEX Corporation’s quarterly and annual operating results. |
99.2 | Presentation slides of IDEX Corporation’s quarterly operating results |
IDEX CORPORATION | ||
By: | /s/ WILLIAM K. GROGAN | |
William K. Grogan | ||
Senior Vice President and Chief Financial Officer | ||
January 30, 2019 |
• | Orders were up 7 percent overall and 6 percent organically |
• | Sales were up 9 percent overall and 8 percent organically |
• | Reported operating margin was 22.9 percent with adjusted operating margin of 23.4 percent, up 150 bps |
• | Reported EPS was $5.29 with adjusted EPS of $5.41, up 26 percent |
• | Repurchased 1.3 million shares of common stock for $174 million |
• | Acquired Finger Lakes Instrumentation and the intellectual property assets of Phantom Controls |
“Strong demand in the industrial market coupled with solid execution drove a second consecutive record year for IDEX. We delivered annual all-time highs in orders, sales, operating income, operating margin, EPS and free cash flow. Annual organic order and sales growth were 6 and 8 percent, respectively. The 8 percent annual organic sales growth was our highest annual rate in 7 years. I'm very impressed with these growth rates, and I am especially encouraged with the diversity of the growth across all segments. FMT's annual organic revenue growth was 9 percent, FSDP delivered 7 percent and HST achieved 6 percent. Adjusted operating margin increased 150 basis points with robust expansion across each of the segments and we achieved record adjusted EPS of $5.41, up 26 percent from the prior year. Overall, I am extremely pleased with our team’s performance in 2018. | |
We continue to invest in our best organic growth opportunities as evidenced by the record capital expenditures of $56 million in 2018. M&A remains a key priority, we continue to work our solid funnel, and we will remain committed to our disciplined approach to capital deployment. In 2018, we deployed $174 million on stock repurchases, with $122 million occurring in the fourth quarter. We also returned $127 million to our shareholders via dividends in 2018, achieving our goal of distributing over 30 percent of earnings back to our shareholders. | |
Looking forward to 2019, although trade tensions persist and the geopolitical environment remains uncertain, we are confident in our outlook given our market leading positions in our diversified portfolio and our track record of strong execution in volatile times. Consistent with our long-term strategic objective to grow faster than underlying market growth, we are projecting 4 to 5 percent organic revenue growth in 2019. Full year 2019 EPS is expected to be in the range of $5.60 to $5.80 with first quarter EPS in the range of $1.35 to $1.38, which include approximately 15 cents and 6 cents of foreign currency headwind, respectively." | |
Andrew K. Silvernail | |
Chairman and Chief Executive Officer |
• | Sales of $237.2 million reflected a 7 percent increase compared to the fourth quarter of 2017 (+8 percent organic and -1 percent foreign currency translation). |
• | Operating income of $67.9 million resulted in an operating margin of 28.6 percent. Excluding $1.1 million of restructuring expenses, adjusted operating income was $69.0 million with an adjusted operating margin of 29.1 percent, a 70 basis point increase compared to the prior year period primarily due to higher volume and productivity initiatives. |
• | EBITDA of $73.1 million resulted in an EBITDA margin of 30.8 percent. Excluding $1.1 million of restructuring expenses, adjusted EBITDA of $74.2 million resulted in an adjusted EBITDA margin of 31.3 percent, a 50 basis point increase compared to the prior year period. |
• | Sales of $225.5 million reflected an 8 percent increase compared to the fourth quarter of 2017 (+7 percent organic, +2 percent acquisition and -1 percent foreign currency translation). |
• | Operating income of $52.2 million resulted in an operating margin of 23.1 percent. Excluding $0.6 million of restructuring expenses, adjusted operating income was $52.8 million with an adjusted operating margin of 23.4 percent, a 110 basis point increase compared to the prior year period primarily due to higher volume and productivity initiatives, partially offset by higher engineering costs. |
• | EBITDA of $62.2 million resulted in an EBITDA margin of 27.6 percent. Excluding $0.6 million of restructuring expenses, adjusted EBITDA of $62.8 million resulted in an adjusted EBITDA margin of 27.8 percent, a 10 basis point decrease compared to the prior year period. |
• | Sales of $151.7 million reflected a 2 percent decrease compared to the fourth quarter of 2017 (-1 percent organic and -1 percent foreign currency translation). |
• | Operating income of $38.4 million resulted in an operating margin of 25.3 percent. Excluding $1.8 million of restructuring expenses, adjusted operating income was $40.2 million with an adjusted operating margin of 26.5 percent, flat compared to the prior year period primarily due to productivity initiatives offset by lower volume. |
• | EBITDA of $42.1 million resulted in an EBITDA margin of 27.8 percent. Excluding $1.8 million of restructuring expenses, adjusted EBITDA of $43.9 million resulted in an adjusted EBITDA margin of 28.9 percent, a 30 basis point increase compared to the prior year period. |
• | Organic orders and sales are calculated excluding amounts from acquired or divested businesses during the first twelve months of ownership or divestiture and the impact of foreign currency translation. |
• | Adjusted operating income is calculated as operating income plus restructuring expenses plus or minus the net loss or gain on sale of businesses. |
• | Adjusted operating margin is calculated as adjusted operating income divided by net sales. |
• | Adjusted net income is calculated as net income plus restructuring expenses plus or minus the net loss or gain on sale of businesses, net of the statutory tax expense or benefit. |
• | EBITDA is calculated as net income plus interest expense plus provision for income taxes plus depreciation and amortization. We reconciled EBITDA to net income on a consolidated basis as we do not allocate consolidated interest expense or consolidated provision for income taxes to our segments. |
• | Adjusted EBITDA is calculated as EBITDA plus restructuring expenses plus or minus the net loss or gain on sale of businesses. |
• | Free cash flow is calculated as cash flow from operating activities less capital expenditures. |
For the Quarter Ended December 31, 2018 | For the Year Ended December 31, 2018 | ||||||||||||||||||||||
FMT | HST | FSDP | IDEX | FMT | HST | FSDP | IDEX | ||||||||||||||||
Change in net sales | 7 | % | 8 | % | (2 | )% | 5 | % | 8 | % | 9 | % | 8 | % | 9 | % | |||||||
- Net impact from acquisitions/divestitures | — | % | 2 | % | — | % | 1 | % | (2 | )% | 2 | % | — | % | — | % | |||||||
- Impact from FX | (1 | )% | (1 | )% | (1 | )% | (1 | )% | 1 | % | 1 | % | 1 | % | 1 | % | |||||||
Change in organic net sales | 8 | % | 7 | % | (1 | )% | 5 | % | 9 | % | 6 | % | 7 | % | 8 | % |
For the Quarter Ended December 31, | |||||||||||||||||||||||||||||||||||||||
2018 | 2017 | ||||||||||||||||||||||||||||||||||||||
FMT | HST | FSDP | Corporate | IDEX | FMT | HST | FSDP | Corporate | IDEX | ||||||||||||||||||||||||||||||
Reported operating income (loss) | $ | 67,911 | $ | 52,160 | $ | 38,439 | $ | (19,069 | ) | $139,441 | $ | 61,200 | $ | 44,962 | $ | 41,006 | $ | (11,920 | ) | $135,248 | |||||||||||||||||||
+ Restructuring expenses | 1,145 | 606 | 1,757 | 324 | 3,832 | 1,808 | 1,668 | 182 | — | 3,658 | |||||||||||||||||||||||||||||
+ Gain on sale of business | — | — | — | — | — | — | — | — | (9,273 | ) | (9,273 | ) | |||||||||||||||||||||||||||
Adjusted operating income (loss) | $ | 69,056 | $ | 52,766 | $ | 40,196 | $ | (18,745 | ) | $ | 143,273 | $ | 63,008 | $ | 46,630 | $ | 41,188 | $ | (21,193 | ) | $ | 129,633 | |||||||||||||||||
Net sales (eliminations) | $ | 237,206 | $ | 225,515 | $ | 151,723 | $ | (350 | ) | $ | 614,094 | $ | 222,052 | $ | 208,916 | $ | 155,504 | $ | (568 | ) | $ | 585,904 | |||||||||||||||||
Reported operating margin | 28.6 | % | 23.1 | % | 25.3 | % | n/m | 22.7 | % | 27.6 | % | 21.5 | % | 26.4 | % | n/m | 23.1 | % | |||||||||||||||||||||
Adjusted operating margin | 29.1 | % | 23.4 | % | 26.5 | % | n/m | 23.3 | % | 28.4 | % | 22.3 | % | 26.5 | % | n/m | 22.1 | % |
For the Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||
2018 | 2017 | ||||||||||||||||||||||||||||||||||||||
FMT | HST | FSDP | Corporate | IDEX | FMT | HST | FSDP | Corporate | IDEX | ||||||||||||||||||||||||||||||
Reported operating income (loss) | $ | 275,060 | $ | 205,679 | $ | 168,601 | $ | (80,252 | ) | $569,088 | $ | 241,030 | $ | 179,567 | $ | 147,028 | $ | (65,069 | ) | $502,556 | |||||||||||||||||||
+ Restructuring expenses | 2,458 | 5,904 | 2,184 | 1,537 | 12,083 | 3,374 | 4,696 | 255 | 130 | 8,455 | |||||||||||||||||||||||||||||
+ Gain on sale of business | — | — | — | — | — | — | — | — | (9,273 | ) | (9,273 | ) | |||||||||||||||||||||||||||
Adjusted operating income (loss) | $ | 277,518 | $ | 211,583 | $ | 170,785 | $ | (78,715 | ) | $ | 581,171 | $ | 244,404 | $ | 184,263 | $ | 147,283 | $ | (74,212 | ) | $ | 501,738 | |||||||||||||||||
Net sales (eliminations) | $ | 951,552 | $ | 896,419 | $ | 637,028 | $ | (1,333 | ) | $ | 2,483,666 | $ | 880,957 | $ | 820,131 | $ | 587,533 | $ | (1,309 | ) | $ | 2,287,312 | |||||||||||||||||
Reported operating margin | 28.9 | % | 22.9 | % | 26.5 | % | n/m | 22.9 | % | 27.4 | % | 21.9 | % | 25.0 | % | n/m | 22.0 | % | |||||||||||||||||||||
Adjusted operating margin | 29.2 | % | 23.6 | % | 26.8 | % | n/m | 23.4 | % | 27.7 | % | 22.5 | % | 25.1 | % | n/m | 21.9 | % |
For the Quarter Ended December 31, | For the Year Ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Reported net income | $ | 98,137 | $ | 93,746 | $ | 410,573 | $ | 337,257 | |||||||
+ Restructuring expenses | 3,832 | 3,658 | 12,083 | 8,455 | |||||||||||
+ Tax impact on restructuring expenses | (1,029 | ) | (1,243 | ) | (3,032 | ) | (2,772 | ) | |||||||
+ Gain on sale of business | — | (9,273 | ) | — | (9,273 | ) | |||||||||
+ Tax impact on gain on sale of business | — | — | — | — | |||||||||||
Adjusted net income | $ | 100,940 | $ | 86,888 | $ | 419,624 | $ | 333,667 |
For the Quarter Ended December 31, | For the Year Ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Reported EPS | $ | 1.27 | $ | 1.21 | $ | 5.29 | $ | 4.36 | |||||||
+ Restructuring expenses | 0.05 | 0.05 | 0.16 | 0.11 | |||||||||||
+ Tax impact on restructuring expenses | (0.01 | ) | (0.02 | ) | (0.04 | ) | (0.04 | ) | |||||||
+ Gain on sale of business | — | (0.12 | ) | — | (0.12 | ) | |||||||||
+ Tax impact on gain on sale of business | — | — | — | — | |||||||||||
Adjusted EPS | $ | 1.31 | $ | 1.12 | $ | 5.41 | $ | 4.31 | |||||||
Diluted weighted average shares | 77,100 | 77,597 | 77,563 | 77,333 |
For the Quarter Ended December 31, | |||||||||||||||||||||||||||||||||||||||
2018 | 2017 | ||||||||||||||||||||||||||||||||||||||
FMT | HST | FSDP | Corporate | IDEX | FMT | HST | FSDP | Corporate | IDEX | ||||||||||||||||||||||||||||||
Reported operating income (loss) | $ | 67,911 | $ | 52,160 | $ | 38,439 | $ | (19,069 | ) | $ | 139,441 | $ | 61,200 | $ | 44,962 | $ | 41,006 | $ | (11,920 | ) | $ | 135,248 | |||||||||||||||||
- Other (income) expense - net | 295 | (912 | ) | (120 | ) | 317 | (420 | ) | 300 | (892 | ) | 296 | 973 | 677 | |||||||||||||||||||||||||
+ Depreciation and amortization | 5,469 | 9,079 | 3,581 | 185 | 18,314 | 5,764 | 10,840 | 3,603 | 203 | 20,410 | |||||||||||||||||||||||||||||
EBITDA | 73,085 | 62,151 | 42,140 | (19,201 | ) | 158,175 | 66,664 | 56,694 | 44,313 | (12,690 | ) | 154,981 | |||||||||||||||||||||||||||
- Interest expense | 11,036 | 10,969 | |||||||||||||||||||||||||||||||||||||
- Provision for income taxes | 30,688 | 29,856 | |||||||||||||||||||||||||||||||||||||
- Depreciation and amortization | 18,314 | 20,410 | |||||||||||||||||||||||||||||||||||||
Reported net income | $ | 98,137 | $ | 93,746 | |||||||||||||||||||||||||||||||||||
Net sales (eliminations) | $ | 237,206 | $ | 225,515 | $ | 151,723 | $ | (350 | ) | $ | 614,094 | $ | 222,052 | $ | 208,916 | $ | 155,504 | $ | (568 | ) | $ | 585,904 | |||||||||||||||||
Reported operating margin | 28.6 | % | 23.1 | % | 25.3 | % | n/m | 22.7 | % | 27.6 | % | 21.5 | % | 26.4 | % | n/m | 23.1 | % | |||||||||||||||||||||
EBITDA margin | 30.8 | % | 27.6 | % | 27.8 | % | n/m | 25.8 | % | 30.0 | % | 27.1 | % | 28.5 | % | n/m | 26.5 | % |
For the Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||
2018 | 2017 | ||||||||||||||||||||||||||||||||||||||
FMT | HST | FSDP | Corporate | IDEX | FMT | HST | FSDP | Corporate | IDEX | ||||||||||||||||||||||||||||||
Reported operating income (loss) | $ | 275,060 | $ | 205,679 | $ | 168,601 | $ | (80,252 | ) | $ | 569,088 | $ | 241,030 | $ | 179,567 | $ | 147,028 | $ | (65,069 | ) | $ | 502,556 | |||||||||||||||||
- Other (income) expense - net | 1,351 | (1,192 | ) | (3,444 | ) | (700 | ) | (3,985 | ) | 1,007 | (795 | ) | 1,959 | 223 | 2,394 | ||||||||||||||||||||||||
+ Depreciation and amortization | 22,370 | 39,939 | 14,493 | 742 | 77,544 | 23,587 | 45,287 | 14,541 | 801 | 84,216 | |||||||||||||||||||||||||||||
EBITDA | 296,079 | 246,810 | 186,538 | (78,810 | ) | 650,617 | 263,610 | 225,649 | 159,610 | (64,491 | ) | 584,378 | |||||||||||||||||||||||||||
- Interest expense | 44,134 | 44,889 | |||||||||||||||||||||||||||||||||||||
- Provision for income taxes | 118,366 | 118,016 | |||||||||||||||||||||||||||||||||||||
- Depreciation and amortization | 77,544 | 84,216 | |||||||||||||||||||||||||||||||||||||
Reported net income | $410,573 | $337,257 | |||||||||||||||||||||||||||||||||||||
Net sales (eliminations) | $ | 951,552 | $ | 896,419 | $ | 637,028 | $ | (1,333 | ) | $ | 2,483,666 | $ | 880,957 | $ | 820,131 | $ | 587,533 | $ | (1,309 | ) | $ | 2,287,312 | |||||||||||||||||
Reported operating margin | 28.9 | % | 22.9 | % | 26.5 | % | n/m | 22.9 | % | 27.4 | % | 21.9 | % | 25.0 | % | n/m | 22.0 | % | |||||||||||||||||||||
EBITDA margin | 31.1 | % | 27.5 | % | 29.3 | % | n/m | 26.2 | % | 29.9 | % | 27.5 | % | 27.2 | % | n/m | 25.5 | % |
For the Quarter Ended December 31, | |||||||||||||||||||||||||||||||||||||||
2018 | 2017 | ||||||||||||||||||||||||||||||||||||||
FMT | HST | FSDP | Corporate | IDEX | FMT | HST | FSDP | Corporate | IDEX | ||||||||||||||||||||||||||||||
EBITDA | $ | 73,085 | $ | 62,151 | $ | 42,140 | $ | (19,201 | ) | $ | 158,175 | $ | 66,664 | $ | 56,694 | $ | 44,313 | $ | (12,690 | ) | $ | 154,981 | |||||||||||||||||
+ Restructuring expenses | 1,145 | 606 | 1,757 | 324 | 3,832 | 1,808 | 1,668 | 182 | — | 3,658 | |||||||||||||||||||||||||||||
+ Gain on sale of business | — | — | — | — | — | — | — | — | (9,273 | ) | (9,273 | ) | |||||||||||||||||||||||||||
Adjusted EBITDA | $ | 74,230 | $ | 62,757 | $ | 43,897 | $ | (18,877 | ) | $ | 162,007 | $ | 68,472 | $ | 58,362 | $ | 44,495 | $ | (21,963 | ) | $ | 149,366 | |||||||||||||||||
Adjusted EBITDA margin | 31.3 | % | 27.8 | % | 28.9 | % | n/m | 26.4 | % | 30.8 | % | 27.9 | % | 28.6 | % | n/m | 25.5 | % |
For the Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||
2018 | 2017 | ||||||||||||||||||||||||||||||||||||||
FMT | HST | FSDP | Corporate | IDEX | FMT | HST | FSDP | Corporate | IDEX | ||||||||||||||||||||||||||||||
EBITDA | $ | 296,079 | $ | 246,810 | $ | 186,538 | $ | (78,810 | ) | $ | 650,617 | $ | 263,610 | $ | 225,649 | $ | 159,610 | $ | (64,491 | ) | $ | 584,378 | |||||||||||||||||
+ Restructuring expenses | 2,458 | 5,904 | 2,184 | 1,537 | 12,083 | 3,374 | 4,696 | 255 | 130 | 8,455 | |||||||||||||||||||||||||||||
+ Gain on sale of business | — | — | — | — | — | — | — | — | (9,273 | ) | (9,273 | ) | |||||||||||||||||||||||||||
Adjusted EBITDA | $ | 298,537 | $ | 252,714 | $ | 188,722 | $ | (77,273 | ) | $ | 662,700 | $ | 266,984 | $ | 230,345 | $ | 159,865 | $ | (73,634 | ) | $ | 583,560 | |||||||||||||||||
Adjusted EBITDA margin | 31.4 | % | 28.2 | % | 29.6 | % | n/m | 26.7 | % | 30.3 | % | 28.1 | % | 27.2 | % | n/m | 25.5 | % |
For the Quarter Ended | For the Year Ended December 31, | ||||||||||||||||||
December 31, | September 30, | ||||||||||||||||||
2018 | 2017 | 2018 | 2018 | 2017 | |||||||||||||||
Cash flow from operating activities | $ | 153,592 | $ | 136,173 | $ | 133,327 | $ | 479,345 | $ | 432,753 | |||||||||
- Capital expenditures | 16,233 | 15,804 | 18,888 | 56,089 | 43,858 | ||||||||||||||
Free cash flow | $ | 137,359 | $ | 120,369 | $ | 114,439 | $ | 423,256 | $ | 388,895 |
For the Quarter Ended December 31, | For the Year Ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net sales | $ | 614,094 | $ | 585,904 | $ | 2,483,666 | $ | 2,287,312 | |||||||
Cost of sales | 340,451 | 325,022 | 1,365,771 | 1,260,634 | |||||||||||
Gross profit | 273,643 | 260,882 | 1,117,895 | 1,026,678 | |||||||||||
Selling, general and administrative expenses | 130,370 | 131,249 | 536,724 | 524,940 | |||||||||||
Gain on sale of business | — | (9,273 | ) | — | (9,273 | ) | |||||||||
Restructuring expenses | 3,832 | 3,658 | 12,083 | 8,455 | |||||||||||
Operating income | 139,441 | 135,248 | 569,088 | 502,556 | |||||||||||
Other (income) expense - net | (420 | ) | 677 | (3,985 | ) | 2,394 | |||||||||
Interest expense | 11,036 | 10,969 | 44,134 | 44,889 | |||||||||||
Income before income taxes | 128,825 | 123,602 | 528,939 | 455,273 | |||||||||||
Provision for income taxes | 30,688 | 29,856 | 118,366 | 118,016 | |||||||||||
Net income | $ | 98,137 | $ | 93,746 | $ | 410,573 | $ | 337,257 | |||||||
Earnings per Common Share: | |||||||||||||||
Basic earnings per common share | $ | 1.29 | $ | 1.23 | $ | 5.36 | $ | 4.41 | |||||||
Diluted earnings per common share | $ | 1.27 | $ | 1.21 | $ | 5.29 | $ | 4.36 | |||||||
Share Data: | |||||||||||||||
Basic weighted average common shares outstanding | 76,128 | 76,283 | 76,412 | 76,232 | |||||||||||
Diluted weighted average common shares outstanding | 77,100 | 77,597 | 77,563 | 77,333 |
December 31, 2018 | December 31, 2017 | ||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 466,407 | $ | 375,950 | |||
Receivables - net | 314,753 | 294,166 | |||||
Inventories | 279,995 | 259,724 | |||||
Other current assets | 31,377 | 74,203 | |||||
Total current assets | 1,092,532 | 1,004,043 | |||||
Property, plant and equipment - net | 281,220 | 258,350 | |||||
Goodwill and intangible assets | 2,081,282 | 2,118,904 | |||||
Other noncurrent assets | 15,765 | 18,331 | |||||
Total assets | $ | 3,470,799 | $ | 3,399,628 | |||
Liabilities and shareholders' equity | |||||||
Current liabilities | |||||||
Trade accounts payable | $ | 143,196 | $ | 147,067 | |||
Accrued expenses | 187,536 | 184,705 | |||||
Short-term borrowings | 483 | 258 | |||||
Dividends payable | 33,446 | 28,945 | |||||
Total current liabilities | 364,661 | 360,975 | |||||
Long-term borrowings | 848,335 | 858,788 | |||||
Other noncurrent liabilities | 264,627 | 293,323 | |||||
Total liabilities | 1,477,623 | 1,513,086 | |||||
Shareholders' equity | 1,993,176 | 1,886,542 | |||||
Total liabilities and shareholders' equity | $ | 3,470,799 | $ | 3,399,628 |
For the Year Ended December 31, | |||||||
2018 | 2017 | ||||||
Cash flows from operating activities | |||||||
Net income | $ | 410,573 | $ | 337,257 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Loss on sale of fixed assets - net | 946 | 315 | |||||
Gain on sale of business | — | (9,273 | ) | ||||
Depreciation and amortization | 39,049 | 38,314 | |||||
Amortization of intangible assets | 38,495 | 45,902 | |||||
Amortization of debt issuance expenses | 1,332 | 1,320 | |||||
Share-based compensation expense | 24,754 | 24,405 | |||||
Deferred income taxes | (4,346 | ) | (33,742 | ) | |||
Non-cash interest expense associated with forward starting swaps | 6,475 | 6,655 | |||||
Changes in (net of the effect from acquisitions and divestitures): | |||||||
Receivables | (26,063 | ) | (15,803 | ) | |||
Inventories | (23,031 | ) | 760 | ||||
Other current assets | 27,806 | (20,031 | ) | ||||
Trade accounts payable | (1,220 | ) | 12,556 | ||||
Accrued expenses | 4,148 | 19,710 | |||||
Other - net | (19,573 | ) | 24,408 | ||||
Net cash flows provided by operating activities | 479,345 | 432,753 | |||||
Cash flows from investing activities | |||||||
Purchases of property, plant and equipment | (56,089 | ) | (43,858 | ) | |||
Purchase of intellectual property | (4,000 | ) | — | ||||
Acquisition of businesses, net of cash acquired | (20,205 | ) | (38,161 | ) | |||
Proceeds from sale of business | — | 21,795 | |||||
Proceeds from fixed asset disposals | 363 | 6,011 | |||||
Other - net | (1,500 | ) | (533 | ) | |||
Net cash flows used in investing activities | (81,431 | ) | (54,746 | ) | |||
Cash flows from financing activities | |||||||
Borrowings under revolving credit facilities | — | 33,000 | |||||
Payments under revolving credit facilities | (11,284 | ) | (200,618 | ) | |||
Dividends paid | (127,478 | ) | (111,172 | ) | |||
Proceeds from stock option exercises | 27,639 | 22,935 | |||||
Purchases of common stock | (173,926 | ) | (29,074 | ) | |||
Shares surrendered for tax withholding | (11,555 | ) | (6,228 | ) | |||
Settlement of foreign exchange contracts | 6,593 | 13,736 | |||||
Net cash flows used in financing activities | (290,011 | ) | (277,421 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | (17,446 | ) | 39,400 | ||||
Net increase in cash | 90,457 | 139,986 | |||||
Cash and cash equivalents at beginning of year | 375,950 | 235,964 | |||||
Cash and cash equivalents at end of period | $ | 466,407 | $ | 375,950 |
For the Quarter Ended December 31, (a) | For the Year Ended December 31, (a) | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Fluid & Metering Technologies | ||||||||||||||||
Net sales | $ | 237,206 | $ | 222,052 | $ | 951,552 | $ | 880,957 | ||||||||
Operating income (b) | 67,911 | 61,200 | 275,060 | 241,030 | ||||||||||||
Operating margin | 28.6 | % | 27.6 | % | 28.9 | % | 27.4 | % | ||||||||
EBITDA | $ | 73,085 | $ | 66,664 | $ | 296,079 | $ | 263,610 | ||||||||
EBITDA margin | 30.8 | % | 30.0 | % | 31.1 | % | 29.9 | % | ||||||||
Depreciation and amortization | $ | 5,469 | $ | 5,764 | $ | 22,370 | $ | 23,587 | ||||||||
Capital expenditures | 4,399 | 6,059 | 19,541 | 18,218 | ||||||||||||
Health & Science Technologies | ||||||||||||||||
Net sales | $ | 225,515 | $ | 208,916 | $ | 896,419 | $ | 820,131 | ||||||||
Operating income (b) | 52,160 | 44,962 | 205,679 | 179,567 | ||||||||||||
Operating margin | 23.1 | % | 21.5 | % | 22.9 | % | 21.9 | % | ||||||||
EBITDA | $ | 62,151 | $ | 56,694 | $ | 246,810 | $ | 225,649 | ||||||||
EBITDA margin | 27.6 | % | 27.1 | % | 27.5 | % | 27.5 | % | ||||||||
Depreciation and amortization | $ | 9,079 | $ | 10,840 | $ | 39,939 | $ | 45,287 | ||||||||
Capital expenditures | 8,743 | 4,851 | 26,039 | 16,340 | ||||||||||||
Fire & Safety/Diversified Products | ||||||||||||||||
Net sales | $ | 151,723 | $ | 155,504 | $ | 637,028 | $ | 587,533 | ||||||||
Operating income (b) | 38,439 | 41,006 | 168,601 | 147,028 | ||||||||||||
Operating margin | 25.3 | % | 26.4 | % | 26.5 | % | 25.0 | % | ||||||||
EBITDA | $ | 42,140 | $ | 44,313 | $ | 186,538 | $ | 159,610 | ||||||||
EBITDA margin | 27.8 | % | 28.5 | % | 29.3 | % | 27.2 | % | ||||||||
Depreciation and amortization | $ | 3,581 | $ | 3,603 | $ | 14,493 | $ | 14,541 | ||||||||
Capital expenditures | 3,086 | 2,185 | 10,318 | 6,363 | ||||||||||||
Corporate Office and Eliminations | ||||||||||||||||
Intersegment sales eliminations | $ | (350 | ) | $ | (568 | ) | $ | (1,333 | ) | $ | (1,309 | ) | ||||
Operating income (b) | (19,069 | ) | (11,920 | ) | (80,252 | ) | (65,069 | ) | ||||||||
EBITDA | (19,201 | ) | (12,690 | ) | (78,810 | ) | (64,491 | ) | ||||||||
Depreciation and amortization | 185 | 203 | 742 | 801 | ||||||||||||
Capital expenditures | 5 | 2,709 | 191 | 2,937 | ||||||||||||
Company | ||||||||||||||||
Net sales | $ | 614,094 | $ | 585,904 | $ | 2,483,666 | $ | 2,287,312 | ||||||||
Operating income | 139,441 | 135,248 | 569,088 | 502,556 | ||||||||||||
Operating margin | 22.7 | % | 23.1 | % | 22.9 | % | 22.0 | % | ||||||||
EBITDA | $ | 158,175 | $ | 154,981 | $ | 650,617 | $ | 584,378 | ||||||||
EBITDA margin | 25.8 | % | 26.5 | % | 26.2 | % | 25.5 | % | ||||||||
Depreciation and amortization (c) | $ | 18,314 | $ | 20,410 | $ | 77,544 | $ | 84,216 | ||||||||
Capital expenditures | 16,233 | 15,804 | 56,089 | 43,858 |
For the Quarter Ended December 31, (a) | For the Year Ended December 31, (a) | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Fluid & Metering Technologies | ||||||||||||||||
Net sales | $ | 237,206 | $ | 222,052 | $ | 951,552 | $ | 880,957 | ||||||||
Adjusted operating income (b) | 69,056 | 63,008 | 277,518 | 244,404 | ||||||||||||
Adjusted operating margin | 29.1 | % | 28.4 | % | 29.2 | % | 27.7 | % | ||||||||
Adjusted EBITDA | $ | 74,230 | $ | 68,472 | $ | 298,537 | $ | 266,984 | ||||||||
Adjusted EBITDA margin | 31.3 | % | 30.8 | % | 31.4 | % | 30.3 | % | ||||||||
Depreciation and amortization | $ | 5,469 | $ | 5,764 | $ | 22,370 | $ | 23,587 | ||||||||
Capital expenditures | 4,399 | 6,059 | 19,541 | 18,218 | ||||||||||||
Health & Science Technologies | ||||||||||||||||
Net sales | $ | 225,515 | $ | 208,916 | $ | 896,419 | $ | 820,131 | ||||||||
Adjusted operating income (b) | 52,766 | 46,630 | 211,583 | 184,263 | ||||||||||||
Adjusted operating margin | 23.4 | % | 22.3 | % | 23.6 | % | 22.5 | % | ||||||||
Adjusted EBITDA | $ | 62,757 | $ | 58,362 | $ | 252,714 | $ | 230,345 | ||||||||
Adjusted EBITDA margin | 27.8 | % | 27.9 | % | 28.2 | % | 28.1 | % | ||||||||
Depreciation and amortization | $ | 9,079 | $ | 10,840 | $ | 39,939 | $ | 45,287 | ||||||||
Capital expenditures | 8,743 | 4,851 | 26,039 | 16,340 | ||||||||||||
Fire & Safety/Diversified Products | ||||||||||||||||
Net sales | $ | 151,723 | $ | 155,504 | $ | 637,028 | $ | 587,533 | ||||||||
Adjusted operating income (b) | 40,196 | 41,188 | 170,785 | 147,283 | ||||||||||||
Adjusted operating margin | 26.5 | % | 26.5 | % | 26.8 | % | 25.1 | % | ||||||||
Adjusted EBITDA | $ | 43,897 | $ | 44,495 | $ | 188,722 | $ | 159,865 | ||||||||
Adjusted EBITDA margin | 28.9 | % | 28.6 | % | 29.6 | % | 27.2 | % | ||||||||
Depreciation and amortization | $ | 3,581 | $ | 3,603 | $ | 14,493 | $ | 14,541 | ||||||||
Capital expenditures | 3,086 | 2,185 | 10,318 | 6,363 | ||||||||||||
Corporate Office and Eliminations | ||||||||||||||||
Intersegment sales eliminations | $ | (350 | ) | $ | (568 | ) | $ | (1,333 | ) | $ | (1,309 | ) | ||||
Adjusted operating income (b) | (18,745 | ) | (21,193 | ) | (78,715 | ) | (74,212 | ) | ||||||||
Adjusted EBITDA | (18,877 | ) | (21,963 | ) | (77,273 | ) | (73,634 | ) | ||||||||
Depreciation and amortization | 185 | 203 | 742 | 801 | ||||||||||||
Capital expenditures | 5 | 2,709 | 191 | 2,937 | ||||||||||||
Company | ||||||||||||||||
Net sales | $ | 614,094 | $ | 585,904 | $ | 2,483,666 | $ | 2,287,312 | ||||||||
Adjusted operating income | 143,273 | 129,633 | 581,171 | 501,738 | ||||||||||||
Adjusted operating margin | 23.3 | % | 22.1 | % | 23.4 | % | 21.9 | % | ||||||||
Adjusted EBITDA | $ | 162,007 | $ | 149,366 | $ | 662,700 | $ | 583,560 | ||||||||
Adjusted EBITDA margin | 26.4 | % | 25.5 | % | 26.7 | % | 25.5 | % | ||||||||
Depreciation and amortization (c) | $ | 18,314 | $ | 20,410 | $ | 77,544 | $ | 84,216 | ||||||||
Capital expenditures | 16,233 | 15,804 | 56,089 | 43,858 | ||||||||||||
(a) | Three and twelve months data include the results of Finger Lakes Instrumentation (July 2018) and thinXXS (December 2017) in the Health & Science Technologies segment from the date of acquisition and the results of Faure Herman (October 2017) in the Fluid & Metering Technologies segment through the date of disposition. | |||||||||||||||
(b) | Segment operating income excludes unallocated corporate operating expenses which are included in Corporate Office and Eliminations. | |||||||||||||||
(c) | Depreciation and amortization excludes amortization of debt issuance costs. |
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