有关详细信息： 已交易：纽交所（IEX） EX-99.1
投资者联系人：
Wendy Palacios
财务规划副总裁兼投资者关系
(847) 498-7070
IDEX报告第三季度业绩
2024年第三季度业绩亮点
（所有比较均基于2023年第三季度，除非另有说明）
•销售额为79800万美元，整体上涨1%，有机增长持平
•报告摊薄后每股收益为1.57美元，下降43%，调整后摊薄后每股收益为1.90美元，下降10%
•经营现金流为20500万美元，下降9%; 相当于净利润的172%，高于108%
•自由现金流为$19200万，下降 占调整后净利润的7％；占比从129％上升至133％
•2024年9月5日完成了对Mott公司的收购。
•完成了发行总额为50000万美元的4.950%高级票据，截止时间为2029年9月
2024全年展望
•全年有机销售增长预计将比去年同比下降1%至2%
•全年普通会计净摊薄每股收益为6.65美元至6.70美元，与之前的指导范围6.85美元至6.95美元相比。当前指引包括购买会计影响，例如与收购Mott Corporation有关的摊销费用。
•摊薄后每股收益调整为7.85美元至7.90美元，而之前的指引为7.80美元至7.90美元。
2024年10月29日，纽约州NORTHBROOK - IDEX公司（纽交所：IEX）今天宣布了截至2024年9月30日的三个月期间的财务业绩。
我们对第三季度的表现感到鼓舞。在不确定的经济背景下，我们的流体与计量技术以及消防与安全/多元化产品部门的团队推动了有机增长，同时通过运营执行实现了强劲的利润率。IDEX公司首席执行官兼总裁埃里克·D·阿什曼表示：“我们的健康与科学技术领域订单出现了健康的有机增长，增强了我们的业务定位，同时在寻找生命科学和半导体领域持续复苏迹象的过程中。”
“与此同时，自我们收购了Mott不到两个月时间，合作伙伴关系已经快速启动。IDEX的其他业务团队已经与Mott的同事展开合作，共同设计结合了Mott的高度工程化过滤产品的新原型。自交易结束以来，才华横溢的IDEX员工已经融入Mott的领导团队，帮助启动了平稳的整合，”Ashleman表示。“Mott服务的核心先进技术市场，包括半导体硅片制造、能源变革解决方案、医疗技术和水净化，有望在长期内表现优越。”
IDEX保持良好地位，与处于新技术前沿的客户解决复杂问题。我们期望继续在我们的投资组合中部署资源，以我们的80/20思维加速增长，将我们定位为推动长期价值创造。
合并财务结果
| 截至9月30日的三个月 | |||||||||||||||||
| （金额单位为百万美元，每股金额除外） | 2024 | 2023 | 增加（减少） | ||||||||||||||
| 订单 | $ | 780.5 | $ | 712.3 | $ | 68.2 | |||||||||||
| 有机订单的变化* | 8 | % | |||||||||||||||
| 净销售额 | 798.2 | 793.4 | 4.8 | ||||||||||||||
| 有机净销售额变化* | — | ||||||||||||||||
| 毛利润 | 353.9 | 349.6 | 4.3 | ||||||||||||||
| 调整后的毛利润* | 356.0 | 350.8 | 5.2 | ||||||||||||||
| 归属IDEX的净收入 | 119.1 | 209.1 | (90.0) | ||||||||||||||
| 归属IDEX的调整后净利润* | 144.1 | 160.6 | (16.5) | ||||||||||||||
| 调整后的EBITDA* | 214.3 | 225.5 | (11.2) | ||||||||||||||
| 摊薄后每股收益归属IDEX | 1.57 | 2.75 | (1.18) | ||||||||||||||
| 归属IDEX的调整后摊薄每股收益* | 1.90 | 2.12 | (0.22) | ||||||||||||||
| 经营活动现金流 | 205.3 | 226.6 | (21.3) | ||||||||||||||
| 自由现金流* | 191.6 | 206.5 | (14.9) | ||||||||||||||
| 毛利率 | 44.3 | % | 44.1 | % | 20 bps | ||||||||||||
| 调整后的毛利率* | 44.6 | % | 44.2 | % | 40个基点 | ||||||||||||
| 净利润率 | 14.9 | % | 26.3 | % | (1,140) 基点 | ||||||||||||
| 调整后的EBITDA利润率* | 26.9 | % | 28.4 | % | (150) 基点 | ||||||||||||
*这些是非按照通用会计准则（GAAP）计算的指标。请参阅本报告中“财务表现的非GAAP指标”部分中这些非GAAP指标的定义，并在本报告末尾的调和表中找到它们与最直接可比的GAAP财务指标之间的调和。 | |||||||||||||||||
•净销售额较去年同期增长1%， 这是收购和剥离的净影响的结果。有机净销售额持平，受我们的Health & Science Technologies板块销量下降所影响，但在所有板块中价格的上涨有所缓解。
•44.3%的毛利率提高了20个基本点，主要是因为强劲的价格/成本，部分抵消了较高的与员工相关的成本。
•净利润率为14.9%，下降了1,140个基点，报告的每股摊薄后收益为1.57美元，下降了1.18美元，主要是因为去年同期未发生Micropump, Inc.（“Micropump”）业务出售收益的缺失。摊薄后每股收益受到较低的营运业绩和较高的实际税率的影响。去年同期的实际税率包括一次性纾困措施，降低了实际税率，部分抵消了Micropump业务出售所得利润上缴的税款。
•调整后的EBITDA利润率为26.9%，下降了150个基点，调整后的每股收益为1.90美元，减少了0.22美元，反映了较强的价格/成本，这超过了较高的与员工相关的成本和较低的成交量。此外，当前年度期间包括与收购Mott Corporation及其子公司（“Mott”）相关的370万元较高的交易相关费用。
•摊薄后每股收益还反映了高于前一年同期的$0.11的影响，如上所讨论的。 前一年同期的调整后有效税率不包括Micropump出售的收益和相关税收影响。
业务部门财务结果。
截至9月30日的三个月结束时，(a) | |||||||||||||||||
(金额单位：百万美元) | 2024 | 2023 | 增加（减少） | ||||||||||||||
| Fluid & Metering Technologies（"FMT"） | |||||||||||||||||
| 净销售额 | $ | 300.8 | $ | 301.1 | $ | (0.3) | |||||||||||
| 有机净销售额变动* | 2 | % | |||||||||||||||
调整后的EBITDA(b) | 98.5 | 103.6 | (5.1) | ||||||||||||||
| 调整后的EBITDA率 | 32.8 | % | 34.4 | % | (160) 个基点 | ||||||||||||
| 健康与科学技术（"HST"） | |||||||||||||||||
| 净销售额 | $ | 311.0 | $ | 313.2 | $ | (2.2) | |||||||||||
| 有机净销售额变化* | (5 | %) | |||||||||||||||
调整后的EBITDA(b) | 82.6 | 84.4 | (1.8) | ||||||||||||||
| 调整后的EBITDA率 | 26.5 | % | 26.9 | % | (40)个基点 | ||||||||||||
| 消防与安全/多元化产品（"FSDP"） | |||||||||||||||||
| 净销售额 | $ | 188.0 | $ | 180.6 | $ | 7.4 | |||||||||||
| 有机净销售变化* | 4 | % | |||||||||||||||
调整后的EBITDA(b) | 54.7 | 52.8 | 1.9 | ||||||||||||||
| 调整后的EBITDA率 | 29.1 | % | 29.3 | % | (20) 基点 | ||||||||||||
| 公司总部和消除 | |||||||||||||||||
| 分部间销售消除 | $ | (1.6) | $ | (1.5) | $ | (0.1) | |||||||||||
调整后的EBITDA(b) | (21.5) | (15.3) | (6.2) | ||||||||||||||
*这些是非GAAP措施。请参阅本公告中标题为“财务绩效的非GAAP措施定义”部分中这些非GAAP措施的定义，并查看本公告末尾的协调表，以了解它们与最直接可比的GAAP财务措斷的相关性。 | |||||||||||||||||
（a）三个月数据包括HSt部门在2023年12月收购STC Material Solutions和2024年9月收购Mott Corporation的成果。三个月数据还包括HSt部门在2023年8月收购Micropump和2023年12月收购Novotema, SpA，以及FMt部门在2024年6月通过相应日期处置获取Alfa Valvole, Srl的结果。 | |||||||||||||||||
（b）分部调整EBITDA不包括已计入企业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.