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 July 25, 2019 announcing IDEX Corporation’s quarterly 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 | ||
July 26, 2019 |
• | Sales were up 1 percent overall and 3 percent organically |
• | Reported operating margin was 24.2 percent with adjusted operating margin of 24.5 percent, up 90 bps |
• | Reported EPS was $1.48 with adjusted EPS of $1.50, up 7 percent |
• | Acquired Velcora Holding AB in July |
“Our performance in the second quarter was a great example of how our teams can execute in a volatile environment. Lingering trade tensions during the second quarter caused growth to decelerate across the global economy as companies are employing a wait and see approach in the near term. We also continue to see specific market pressure within our agriculture, semiconductor and auto end markets. In spite of this pressure, we grew organic sales by 3 percent across all three segments. Adjusted operating margin remains a great story, increasing 90 basis points and reaching an all-time quarterly high. Adjusted EPS grew 7 percent and reached a record high of $1.50. Overall, I am pleased with our second quarter operating results in this choppy environment. | |
Our commitment to invest in the best organic growth opportunities continues to be paramount as the second quarter was our tenth consecutive quarter of organic sales growth. M&A remains a top priority for the Company as well, and last week we announced the acquisition of Velcora Holding, a great addition to our Sealing Solutions platform within our Health & Science segment. The M&A funnel is strong, and our balance sheet has significant capacity to support additional opportunities. | |
Despite the flat order growth in the second quarter and an uncertain macro environment, we expect to continue our streak of quarterly organic sales growth and margin expansion for the balance of the year. As a result, we are raising the low end of our full year earnings guidance by 8 cents. Full year 2019 adjusted EPS is now projected to be $5.78 to $5.85, with full year organic revenue growth expectations of 3 to 4 percent. Third quarter EPS is projected to be $1.45 to $1.47, with organic revenue growth of approximately 3 percent.” | |
Andrew K. Silvernail | |
Chairman and Chief Executive Officer |
• | Sales of $246.2 million reflected a 1 percent increase compared to the second quarter of 2018 (+3 percent organic and -2 percent foreign currency translation). |
• | Operating income of $74.1 million resulted in an operating margin of 30.1 percent. Excluding $0.9 million of restructuring expenses, adjusted operating income was $75.0 million with an adjusted operating margin of 30.5 percent, a 100 basis point increase compared to the adjusted prior year period primarily due to higher volume, price and productivity initiatives, partially offset by higher engineering investments. |
• | EBITDA of $79.5 million resulted in an EBITDA margin of 32.3 percent. Excluding $0.9 million of restructuring expenses, adjusted EBITDA of $80.4 million resulted in an adjusted EBITDA margin of 32.7 percent, a 110 basis point increase compared to the adjusted prior year period primarily due to increased operating income. |
• | Sales of $232.3 million reflected a 2 percent increase compared to the second quarter of 2018 (+3 percent organic, +1 percent acquisition and -2 percent foreign currency translation). |
• | Operating income of $56.8 million resulted in an operating margin of 24.4 percent. Excluding $0.3 million of restructuring expenses, adjusted operating income was $57.1 million with an adjusted operating margin of 24.6 percent, a 100 basis point increase compared to the adjusted prior year period primarily due to higher volume and lower amortization, partially offset by higher engineering investments. |
• | EBITDA of $66.3 million resulted in an EBITDA margin of 28.6 percent. Excluding $0.3 million of restructuring expenses, adjusted EBITDA of $66.6 million resulted in an adjusted EBITDA margin of 28.7 percent, a 40 basis point increase compared to the adjusted prior year period primarily due to increased operating income. |
• | Sales of $164.0 million were flat compared to the second quarter of 2018 (+3 percent organic and -3 percent foreign currency translation). |
• | Operating income of $43.6 million resulted in an operating margin of 26.6 percent. Excluding $0.8 million of restructuring expenses, adjusted operating income was $44.4 million with an adjusted operating margin of 27.1 percent, a 100 basis point decrease compared to the adjusted prior year period primarily due to product mix and higher engineering investments. |
• | EBITDA of $47.5 million resulted in an EBITDA margin of 28.9 percent. Excluding $0.8 million of restructuring expenses, adjusted EBITDA of $48.3 million resulted in an adjusted EBITDA margin of 29.4 percent, a 90 basis point decrease compared to the adjusted prior year period primarily due to a decrease in operating income. |
• | 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. |
• | Adjusted operating margin is calculated as adjusted operating income divided by net sales. |
• | Adjusted net income is calculated as net income plus restructuring expenses, 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. |
• | Free cash flow is calculated as cash flow from operating activities less capital expenditures. |
Three Months Ended June 30, 2019 | Six Months Ended June 30, 2019 | ||||||||||||||||||||||
FMT | HST | FSDP | IDEX | FMT | HST | FSDP | IDEX | ||||||||||||||||
Change in net sales | 1 | % | 2 | % | — | % | 1 | % | 3 | % | 2 | % | (1 | )% | 1 | % | |||||||
- Net impact from acquisitions | — | % | 1 | % | — | % | — | % | — | % | 1 | % | — | % | — | % | |||||||
- Impact from FX | (2 | )% | (2 | )% | (3 | )% | (2 | )% | (2 | )% | (2 | )% | (3 | )% | (2 | )% | |||||||
Change in organic net sales | 3 | % | 3 | % | 3 | % | 3 | % | 5 | % | 3 | % | 2 | % | 3 | % |
Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||||||||||||||||||
FMT | HST | FSDP | Corporate | IDEX | FMT | HST | FSDP | Corporate | IDEX | ||||||||||||||||||||||||||||||
Reported operating income (loss) | $ | 74,146 | $ | 56,763 | $ | 43,614 | $ | (19,240 | ) | $ | 155,283 | $ | 71,228 | $ | 52,569 | $ | 45,882 | $ | (21,848 | ) | $ | 147,831 | |||||||||||||||||
+ Restructuring expenses | 930 | 330 | 819 | 47 | 2,126 | 343 | 1,123 | 267 | 255 | 1,988 | |||||||||||||||||||||||||||||
Adjusted operating income (loss) | $ | 75,076 | $ | 57,093 | $ | 44,433 | $ | (19,193 | ) | $ | 157,409 | $ | 71,571 | $ | 53,692 | $ | 46,149 | $ | (21,593 | ) | $ | 149,819 | |||||||||||||||||
Net sales (eliminations) | $ | 246,189 | $ | 232,253 | $ | 164,043 | $ | (386 | ) | $ | 642,099 | $ | 242,800 | $ | 227,403 | $ | 164,300 | $ | (143 | ) | $ | 634,360 | |||||||||||||||||
Reported operating margin | 30.1 | % | 24.4 | % | 26.6 | % | n/m | 24.2 | % | 29.3 | % | 23.1 | % | 27.9 | % | n/m | 23.3 | % | |||||||||||||||||||||
Adjusted operating margin | 30.5 | % | 24.6 | % | 27.1 | % | n/m | 24.5 | % | 29.5 | % | 23.6 | % | 28.1 | % | n/m | 23.6 | % |
Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||||||||||||||||||
FMT | HST | FSDP | Corporate | IDEX | FMT | HST | FSDP | Corporate | IDEX | ||||||||||||||||||||||||||||||
Reported operating income (loss) | $ | 146,012 | $ | 110,917 | $ | 83,942 | $ | (37,806 | ) | $ | 303,065 | $ | 137,394 | $ | 104,375 | $ | 85,436 | $ | (42,691 | ) | $ | 284,514 | |||||||||||||||||
+ Restructuring expenses | 930 | 330 | 819 | 47 | 2,126 | 486 | 2,182 | 367 | 595 | 3,630 | |||||||||||||||||||||||||||||
Adjusted operating income (loss) | $ | 146,942 | $ | 111,247 | $ | 84,761 | $ | (37,759 | ) | $ | 305,191 | $ | 137,880 | $ | 106,557 | $ | 85,803 | $ | (42,096 | ) | $ | 288,144 | |||||||||||||||||
Net sales (eliminations) | $ | 488,711 | $ | 457,543 | $ | 320,202 | $ | (2,126 | ) | $ | 1,264,330 | $ | 475,133 | $ | 448,478 | $ | 323,473 | $ | (400 | ) | $ | 1,246,684 | |||||||||||||||||
Reported operating margin | 29.9 | % | 24.2 | % | 26.2 | % | n/m | 24.0 | % | 28.9 | % | 23.3 | % | 26.4 | % | n/m | 22.8 | % | |||||||||||||||||||||
Adjusted operating margin | 30.1 | % | 24.3 | % | 26.5 | % | n/m | 24.1 | % | 29.0 | % | 23.8 | % | 26.5 | % | n/m | 23.1 | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Reported net income | $ | 113,209 | $ | 107,126 | $ | 223,477 | $ | 206,084 | |||||||
+ Restructuring expenses | 2,126 | 1,988 | 2,126 | 3,630 | |||||||||||
+ Tax impact on restructuring expenses | (560 | ) | (494 | ) | (560 | ) | (873 | ) | |||||||
Adjusted net income | $ | 114,775 | $ | 108,620 | $ | 225,043 | $ | 208,841 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Reported diluted EPS | $ | 1.48 | $ | 1.38 | $ | 2.92 | $ | 2.65 | |||||||
+ Restructuring expenses | 0.03 | 0.03 | 0.03 | 0.05 | |||||||||||
+ Tax impact on restructuring expenses | (0.01 | ) | (0.01 | ) | (0.01 | ) | (0.01 | ) | |||||||
Adjusted diluted EPS | $ | 1.50 | $ | 1.40 | $ | 2.94 | $ | 2.69 | |||||||
Diluted weighted average shares outstanding | 76,387 | 77,704 | 76,334 | 77,722 |
Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||||||||||||||||||
FMT | HST | FSDP | Corporate | IDEX | FMT | HST | FSDP | Corporate | IDEX | ||||||||||||||||||||||||||||||
Reported operating income (loss) | $ | 74,146 | $ | 56,763 | $ | 43,614 | $ | (19,240 | ) | $ | 155,283 | $ | 71,228 | $ | 52,569 | $ | 45,882 | $ | (21,848 | ) | $ | 147,831 | |||||||||||||||||
- Other (income) expense - net | 239 | 80 | (140 | ) | (557 | ) | (378 | ) | 511 | (463 | ) | (45 | ) | (53 | ) | (50 | ) | ||||||||||||||||||||||
+ Depreciation and amortization | 5,640 | 9,635 | 3,717 | 172 | 19,164 | 5,707 | 10,090 | 3,597 | 176 | 19,570 | |||||||||||||||||||||||||||||
EBITDA | 79,547 | 66,318 | 47,471 | (18,511 | ) | 174,825 | 76,424 | 63,122 | 49,524 | (21,619 | ) | 167,451 | |||||||||||||||||||||||||||
- Interest expense | 11,011 | 11,140 | |||||||||||||||||||||||||||||||||||||
- Provision for income taxes | 31,441 | 29,615 | |||||||||||||||||||||||||||||||||||||
- Depreciation and amortization | 19,164 | 19,570 | |||||||||||||||||||||||||||||||||||||
Reported net income | $ | 113,209 | $ | 107,126 | |||||||||||||||||||||||||||||||||||
Net sales (eliminations) | $ | 246,189 | $ | 232,253 | $ | 164,043 | $ | (386 | ) | $ | 642,099 | $ | 242,800 | $ | 227,403 | $ | 164,300 | $ | (143 | ) | $ | 634,360 | |||||||||||||||||
Reported operating margin | 30.1 | % | 24.4 | % | 26.6 | % | n/m | 24.2 | % | 29.3 | % | 23.1 | % | 27.9 | % | n/m | 23.3 | % | |||||||||||||||||||||
EBITDA margin | 32.3 | % | 28.6 | % | 28.9 | % | n/m | 27.2 | % | 31.5 | % | 27.8 | % | 30.1 | % | n/m | 26.4 | % |
Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||||||||||||||||||
FMT | HST | FSDP | Corporate | IDEX | FMT | HST | FSDP | Corporate | IDEX | ||||||||||||||||||||||||||||||
Reported operating income (loss) | $ | 146,012 | $ | 110,917 | $ | 83,942 | $ | (37,806 | ) | $ | 303,065 | $ | 137,394 | $ | 104,375 | $ | 85,436 | $ | (42,691 | ) | $ | 284,514 | |||||||||||||||||
- Other (income) expense - net | 317 | 364 | 365 | (1,564 | ) | (518 | ) | 645 | (1,060 | ) | (3,666 | ) | (418 | ) | (4,499 | ) | |||||||||||||||||||||||
+ Depreciation and amortization | 11,146 | 19,142 | 7,179 | 356 | 37,823 | 11,401 | 21,479 | 7,371 | 373 | 40,624 | |||||||||||||||||||||||||||||
EBITDA | 156,841 | 129,695 | 90,756 | (35,886 | ) | 341,406 | 148,150 | 126,914 | 96,473 | (41,900 | ) | 329,637 | |||||||||||||||||||||||||||
- Interest expense | 21,932 | 22,140 | |||||||||||||||||||||||||||||||||||||
- Provision for income taxes | 58,174 | 60,789 | |||||||||||||||||||||||||||||||||||||
- Depreciation and amortization | 37,823 | 40,624 | |||||||||||||||||||||||||||||||||||||
Reported net income | $ | 223,477 | $ | 206,084 | |||||||||||||||||||||||||||||||||||
Net sales (eliminations) | $ | 488,711 | $ | 457,543 | $ | 320,202 | $ | (2,126 | ) | $ | 1,264,330 | $ | 475,133 | $ | 448,478 | $ | 323,473 | $ | (400 | ) | $ | 1,246,684 | |||||||||||||||||
Reported operating margin | 29.9 | % | 24.2 | % | 26.2 | % | n/m | 24.0 | % | 28.9 | % | 23.3 | % | 26.4 | % | n/m | 22.8 | % | |||||||||||||||||||||
EBITDA margin | 32.1 | % | 28.3 | % | 28.3 | % | n/m | 27.0 | % | 31.2 | % | 28.3 | % | 29.8 | % | n/m | 26.4 | % |
Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||||||||||||||||||
FMT | HST | FSDP | Corporate | IDEX | FMT | HST | FSDP | Corporate | IDEX | ||||||||||||||||||||||||||||||
EBITDA | $ | 79,547 | $ | 66,318 | $ | 47,471 | $ | (18,511 | ) | $ | 174,825 | $ | 76,424 | $ | 63,122 | $ | 49,524 | $ | (21,619 | ) | $ | 167,451 | |||||||||||||||||
+ Restructuring expenses | 930 | 330 | 819 | 47 | 2,126 | 343 | 1,123 | 267 | 255 | 1,988 | |||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 80,477 | $ | 66,648 | $ | 48,290 | $ | (18,464 | ) | $ | 176,951 | $ | 76,767 | $ | 64,245 | $ | 49,791 | $ | (21,364 | ) | $ | 169,439 | |||||||||||||||||
Adjusted EBITDA margin | 32.7 | % | 28.7 | % | 29.4 | % | n/m | 27.6 | % | 31.6 | % | 28.3 | % | 30.3 | % | n/m | 26.7 | % |
Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||||||||||||||||||
FMT | HST | FSDP | Corporate | IDEX | FMT | HST | FSDP | Corporate | IDEX | ||||||||||||||||||||||||||||||
EBITDA | $ | 156,841 | $ | 129,695 | $ | 90,756 | $ | (35,886 | ) | $ | 341,406 | $ | 148,150 | $ | 126,914 | $ | 96,473 | $ | (41,900 | ) | $ | 329,637 | |||||||||||||||||
+ Restructuring expenses | 930 | 330 | 819 | 47 | 2,126 | 486 | 2,182 | 367 | 595 | 3,630 | |||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 157,771 | $ | 130,025 | $ | 91,575 | $ | (35,839 | ) | $ | 343,532 | $ | 148,636 | $ | 129,096 | $ | 96,840 | $ | (41,305 | ) | $ | 333,267 | |||||||||||||||||
Adjusted EBITDA margin | 32.3 | % | 28.4 | % | 28.6 | % | n/m | 27.2 | % | 31.3 | % | 28.8 | % | 29.9 | % | n/m | 26.7 | % |
Three Months Ended | Six Months Ended | ||||||||||||||||||
June 30, | March 31, | June 30, | |||||||||||||||||
2019 | 2018 | 2019 | 2019 | 2018 | |||||||||||||||
Cash flows from operating activities | $ | 131,175 | $ | 120,697 | $ | 88,663 | $ | 219,838 | $ | 192,426 | |||||||||
- Capital expenditures | 12,867 | 10,959 | 12,875 | 25,742 | 20,968 | ||||||||||||||
Free cash flow | $ | 118,308 | $ | 109,738 | $ | 75,788 | $ | 194,096 | $ | 171,458 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net sales | $ | 642,099 | $ | 634,360 | $ | 1,264,330 | $ | 1,246,684 | |||||||
Cost of sales | 349,762 | 346,993 | 688,159 | 682,665 | |||||||||||
Gross profit | 292,337 | 287,367 | 576,171 | 564,019 | |||||||||||
Selling, general and administrative expenses | 134,928 | 137,548 | 270,980 | 275,875 | |||||||||||
Restructuring expenses | 2,126 | 1,988 | 2,126 | 3,630 | |||||||||||
Operating income | 155,283 | 147,831 | 303,065 | 284,514 | |||||||||||
Other (income) expense - net | (378 | ) | (50 | ) | (518 | ) | (4,499 | ) | |||||||
Interest expense | 11,011 | 11,140 | 21,932 | 22,140 | |||||||||||
Income before income taxes | 144,650 | 136,741 | 281,651 | 266,873 | |||||||||||
Provision for income taxes | 31,441 | 29,615 | 58,174 | 60,789 | |||||||||||
Net income | $ | 113,209 | $ | 107,126 | $ | 223,477 | $ | 206,084 | |||||||
Earnings per Common Share: | |||||||||||||||
Basic earnings per common share | $ | 1.50 | $ | 1.40 | $ | 2.96 | $ | 2.69 | |||||||
Diluted earnings per common share | $ | 1.48 | $ | 1.38 | $ | 2.92 | $ | 2.65 | |||||||
Share Data: | |||||||||||||||
Basic weighted average common shares outstanding | 75,460 | 76,539 | 75,450 | 76,479 | |||||||||||
Diluted weighted average common shares outstanding | 76,387 | 77,704 | 76,334 | 77,722 |
June 30, 2019 | December 31, 2018 | ||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 543,189 | $ | 466,407 | |||
Receivables - net | 326,358 | 312,192 | |||||
Inventories | 301,006 | 279,995 | |||||
Other current assets | 46,329 | 33,938 | |||||
Total current assets | 1,216,882 | 1,092,532 | |||||
Property, plant and equipment - net | 275,025 | 281,220 | |||||
Goodwill and intangible assets | 2,063,073 | 2,081,282 | |||||
Other noncurrent assets | 85,235 | 18,823 | |||||
Total assets | $ | 3,640,215 | $ | 3,473,857 | |||
Liabilities and shareholders' equity | |||||||
Current liabilities | |||||||
Trade accounts payable | $ | 160,579 | $ | 143,196 | |||
Accrued expenses | 162,838 | 187,536 | |||||
Short-term borrowings | 452 | 483 | |||||
Dividends payable | 37,922 | 33,446 | |||||
Total current liabilities | 361,791 | 364,661 | |||||
Long-term borrowings | 848,555 | 848,335 | |||||
Other noncurrent liabilities | 317,828 | 266,221 | |||||
Total liabilities | 1,528,174 | 1,479,217 | |||||
Shareholders' equity | 2,112,041 | 1,994,640 | |||||
Total liabilities and shareholders' equity | $ | 3,640,215 | $ | 3,473,857 |
Six Months Ended June 30, | |||||||
2019 | 2018 | ||||||
Cash flows from operating activities | |||||||
Net income | $ | 223,477 | $ | 206,084 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 19,870 | 19,957 | |||||
Amortization of intangible assets | 17,953 | 20,667 | |||||
Amortization of debt issuance expenses | 669 | 664 | |||||
Share-based compensation expense | 14,413 | 13,252 | |||||
Deferred income taxes | 10,685 | (3,021 | ) | ||||
Non-cash interest expense associated with forward starting swaps | 3,171 | 3,259 | |||||
Changes in (net of the effect from acquisitions): | |||||||
Receivables | (14,177 | ) | (40,044 | ) | |||
Inventories | (21,007 | ) | (28,011 | ) | |||
Other current assets | (12,382 | ) | 17,798 | ||||
Trade accounts payable | 17,276 | 5,432 | |||||
Accrued expenses | (39,602 | ) | (21,131 | ) | |||
Other - net | (508 | ) | (2,480 | ) | |||
Net cash flows provided by operating activities | 219,838 | 192,426 | |||||
Cash flows from investing activities | |||||||
Purchases of property, plant and equipment | (25,742 | ) | (20,968 | ) | |||
Purchase of intellectual property | — | (4,000 | ) | ||||
Proceeds from disposal of fixed assets | 780 | — | |||||
Other - net | 501 | (861 | ) | ||||
Net cash flows used in investing activities | (24,461 | ) | (25,829 | ) | |||
Cash flows from financing activities | |||||||
Dividends paid | (71,283 | ) | (61,916 | ) | |||
Proceeds from stock option exercises | 20,761 | 13,616 | |||||
Purchases of common stock | (54,668 | ) | (19,499 | ) | |||
Shares surrendered for tax withholding | (11,509 | ) | (10,750 | ) | |||
Settlement of foreign exchange contracts | — | 6,593 | |||||
Other - net | (1,929 | ) | — | ||||
Net cash flows used in financing activities | (118,628 | ) | (71,956 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | 33 | (11,840 | ) | ||||
Net increase in cash | 76,782 | 82,801 | |||||
Cash and cash equivalents at beginning of year | 466,407 | 375,950 | |||||
Cash and cash equivalents at end of period | $ | 543,189 | $ | 458,751 |
Three Months Ended June 30, (a) | Six Months Ended June 30, (a) | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Fluid & Metering Technologies | ||||||||||||||||
Net sales | $ | 246,189 | $ | 242,800 | $ | 488,711 | $ | 475,133 | ||||||||
Operating income (b) | 74,146 | 71,228 | 146,012 | 137,394 | ||||||||||||
Operating margin | 30.1 | % | 29.3 | % | 29.9 | % | 28.9 | % | ||||||||
EBITDA | $ | 79,547 | $ | 76,424 | $ | 156,841 | $ | 148,150 | ||||||||
EBITDA margin | 32.3 | % | 31.5 | % | 32.1 | % | 31.2 | % | ||||||||
Depreciation and amortization | $ | 5,640 | $ | 5,707 | $ | 11,146 | $ | 11,401 | ||||||||
Capital expenditures | 3,350 | 3,981 | 6,580 | 8,655 | ||||||||||||
Health & Science Technologies | ||||||||||||||||
Net sales | $ | 232,253 | $ | 227,403 | $ | 457,543 | $ | 448,478 | ||||||||
Operating income (b) | 56,763 | 52,569 | 110,917 | 104,375 | ||||||||||||
Operating margin | 24.4 | % | 23.1 | % | 24.2 | % | 23.3 | % | ||||||||
EBITDA | $ | 66,318 | $ | 63,122 | $ | 129,695 | $ | 126,914 | ||||||||
EBITDA margin | 28.6 | % | 27.8 | % | 28.3 | % | 28.3 | % | ||||||||
Depreciation and amortization | $ | 9,635 | $ | 10,090 | $ | 19,142 | $ | 21,479 | ||||||||
Capital expenditures | 5,913 | 5,351 | 11,217 | 8,682 | ||||||||||||
Fire & Safety/Diversified Products | ||||||||||||||||
Net sales | $ | 164,043 | $ | 164,300 | $ | 320,202 | $ | 323,473 | ||||||||
Operating income (b) | 43,614 | 45,882 | 83,942 | 85,436 | ||||||||||||
Operating margin | 26.6 | % | 27.9 | % | 26.2 | % | 26.4 | % | ||||||||
EBITDA | $ | 47,471 | $ | 49,524 | $ | 90,756 | $ | 96,473 | ||||||||
EBITDA margin | 28.9 | % | 30.1 | % | 28.3 | % | 29.8 | % | ||||||||
Depreciation and amortization | $ | 3,717 | $ | 3,597 | $ | 7,179 | $ | 7,371 | ||||||||
Capital expenditures | 3,534 | 1,627 | 6,487 | 3,445 | ||||||||||||
Corporate Office and Eliminations | ||||||||||||||||
Intersegment sales eliminations | $ | (386 | ) | $ | (143 | ) | $ | (2,126 | ) | $ | (400 | ) | ||||
Operating income (b) | (19,240 | ) | (21,848 | ) | (37,806 | ) | (42,691 | ) | ||||||||
EBITDA | (18,511 | ) | (21,619 | ) | (35,886 | ) | (41,900 | ) | ||||||||
Depreciation and amortization | 172 | 176 | 356 | 373 | ||||||||||||
Capital expenditures | 70 | — | 1,458 | 186 | ||||||||||||
Company | ||||||||||||||||
Net sales | $ | 642,099 | $ | 634,360 | $ | 1,264,330 | $ | 1,246,684 | ||||||||
Operating income | 155,283 | 147,831 | 303,065 | 284,514 | ||||||||||||
Operating margin | 24.2 | % | 23.3 | % | 24.0 | % | 22.8 | % | ||||||||
EBITDA | $ | 174,825 | $ | 167,451 | $ | 341,406 | $ | 329,637 | ||||||||
EBITDA margin | 27.2 | % | 26.4 | % | 27.0 | % | 26.4 | % | ||||||||
Depreciation and amortization (c) | $ | 19,164 | $ | 19,570 | $ | 37,823 | $ | 40,624 | ||||||||
Capital expenditures | 12,867 | 10,959 | 25,742 | 20,968 |
Three Months Ended June 30, (a) | Six Months Ended June 30, (a) | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Fluid & Metering Technologies | ||||||||||||||||
Net sales | $ | 246,189 | $ | 242,800 | $ | 488,711 | $ | 475,133 | ||||||||
Adjusted operating income (b) | 75,076 | 71,571 | 146,942 | 137,880 | ||||||||||||
Adjusted operating margin | 30.5 | % | 29.5 | % | 30.1 | % | 29.0 | % | ||||||||
Adjusted EBITDA | $ | 80,477 | $ | 76,767 | $ | 157,771 | $ | 148,636 | ||||||||
Adjusted EBITDA margin | 32.7 | % | 31.6 | % | 32.3 | % | 31.3 | % | ||||||||
Depreciation and amortization | $ | 5,640 | $ | 5,707 | $ | 11,146 | $ | 11,401 | ||||||||
Capital expenditures | 3,350 | 3,981 | 6,580 | 8,655 | ||||||||||||
Health & Science Technologies | ||||||||||||||||
Net sales | $ | 232,253 | $ | 227,403 | $ | 457,543 | $ | 448,478 | ||||||||
Adjusted operating income (b) | 57,093 | 53,692 | 111,247 | 106,557 | ||||||||||||
Adjusted operating margin | 24.6 | % | 23.6 | % | 24.3 | % | 23.8 | % | ||||||||
Adjusted EBITDA | $ | 66,648 | $ | 64,245 | $ | 130,025 | $ | 129,096 | ||||||||
Adjusted EBITDA margin | 28.7 | % | 28.3 | % | 28.4 | % | 28.8 | % | ||||||||
Depreciation and amortization | $ | 9,635 | $ | 10,090 | $ | 19,142 | $ | 21,479 | ||||||||
Capital expenditures | 5,913 | 5,351 | 11,217 | 8,682 | ||||||||||||
Fire & Safety/Diversified Products | ||||||||||||||||
Net sales | $ | 164,043 | $ | 164,300 | $ | 320,202 | $ | 323,473 | ||||||||
Adjusted operating income (b) | 44,433 | 46,149 | 84,761 | 85,803 | ||||||||||||
Adjusted operating margin | 27.1 | % | 28.1 | % | 26.5 | % | 26.5 | % | ||||||||
Adjusted EBITDA | $ | 48,290 | $ | 49,791 | $ | 91,575 | $ | 96,840 | ||||||||
Adjusted EBITDA margin | 29.4 | % | 30.3 | % | 28.6 | % | 29.9 | % | ||||||||
Depreciation and amortization | $ | 3,717 | $ | 3,597 | $ | 7,179 | $ | 7,371 | ||||||||
Capital expenditures | 3,534 | 1,627 | 6,487 | 3,445 | ||||||||||||
Corporate Office and Eliminations | ||||||||||||||||
Intersegment sales eliminations | $ | (386 | ) | $ | (143 | ) | $ | (2,126 | ) | $ | (400 | ) | ||||
Adjusted operating income (b) | (19,193 | ) | (21,593 | ) | (37,759 | ) | (42,096 | ) | ||||||||
Adjusted EBITDA | (18,464 | ) | (21,364 | ) | (35,839 | ) | (41,305 | ) | ||||||||
Depreciation and amortization | 172 | 176 | 356 | 373 | ||||||||||||
Capital expenditures | 70 | — | 1,458 | 186 | ||||||||||||
Company | ||||||||||||||||
Net sales | $ | 642,099 | $ | 634,360 | $ | 1,264,330 | $ | 1,246,684 | ||||||||
Adjusted operating income | 157,409 | 149,819 | 305,191 | 288,144 | ||||||||||||
Adjusted operating margin | 24.5 | % | 23.6 | % | 24.1 | % | 23.1 | % | ||||||||
Adjusted EBITDA | $ | 176,951 | $ | 169,439 | $ | 343,532 | $ | 333,267 | ||||||||
Adjusted EBITDA margin | 27.6 | % | 26.7 | % | 27.2 | % | 26.7 | % | ||||||||
Depreciation and amortization (c) | $ | 19,164 | $ | 19,570 | $ | 37,823 | $ | 40,624 | ||||||||
Capital expenditures | 12,867 | 10,959 | 25,742 | 20,968 | ||||||||||||
(a) | Three and six month data includes the results of Finger Lakes Instrumentation (July 2018) in the Health & Science Technologies segment from the date of acquisition. | |||||||||||||||
(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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