IDEX Corporation's CEO Discusses Q3 2011 Results - Earnings Call Transcript

IDEX Corporation ( IEX)

Q3 2011 Earnings Call

October 20, 2011 10:30 am ET

Executives

Michael J. Yates – Vice President, Chief Accounting Officer

Lawrence D. Kingsley - Chairman

Andrew K. Silvernail – Chief Executive Officer

Heath A. Mitts – Chief Financial Officer, Vice President – Corporate Finance

Analysts

Jim Lucas – Janney Montgomery Scott

Robert Barry – UBS

Scott Graham – Jefferies & Co.

Allison Poliniak – Wells Fargo Securities, Llc

Charles Brady – BMO Capital

Wendy Caplan – SunTrust Robinson Humphrey

Matt Summerville – KeyBanc Capital Markets

Walter Liptak – Barrington Research Associates, Inc.

Presentation

Operator

Good morning. My name is Vitania, and I’ll be your conference operator today. At this time, I would like to welcome everyone to the IDEX Corporation Q3 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks there will be a question-and-answer session. (Operator Instructions)

Thank you. I would now like to turn the call over to today’s host Mr. Michael Yates, Chief Accounting Officer. Sir, you may begin your conference.

Michael J. Yates

Thank you, Vitania. Good morning, everyone. And thank you for joining us for our discussion of the IDEX third quarter 2011 financial highlights. Last night we issued a press release outlining our company’s financial and operating performance for the three-month period ended September 30, 2011. The press release along with the presentation slides to be used during today’s webcast can be accessed on our company’s website at www.idexcorp.com.

Joining me today from IDEX management are Larry Kingsley, our Chairman; Andy Silvernail, our CEO; and Heath Mitts, Vice President and Chief Financial Officer.

The format for our call is as follows, we will begin with our longer term view of the business as we approach the end of 2011 and have recently completely our three year strategic planning process. We will then discuss our third quarter company results and our four business segments. And finally, we will wrap up with an update to our 2011 guidance. Following our prepared remarks, we will then open the call for your questions.

If you should need to exit the call for any reason, you may access a complete replay beginning approximately two hours after the call concludes by dialing the toll free number 855-859-2056 and entering conference ID number 66069195 or simply log on to our company homepage for the webcast replay.

As we begin, a brief reminder, this call may contain certain forward-looking statements that are subject to the Safe Harbor language in today’s press release and in IDEX’s filings with the Securities and Exchange Commission.

With that, I’ll now turn this call over to our Chairman, Larry Kingsley. Larry?

Lawrence D. Kingsley

Thanks, Mike. I’m very pleased to introduce Andy Silvernail as IDEX’s new CEO. On August 8, we announced that Andy would succeed me as Chief Executive Officer, and I will remain on as Chairman of the Board for the reminder of the year as long as necessary to transition all responsibilities.

Andy joined IDEX in January of 2009, and most recently held the position of Vice President and Group Executive, leading three of the company's business segments: Health & Science Technologies, Fire & Safety and Dispensing, comprising more than half the company's annual revenue. He significantly increased revenue and earnings and expanded operating margins through stringent cost control and improved efficiency all while driving substantial international growth.

My plan to leave IDEX would not be possible if the Board and I were not extremely in Andy’s leadership. I know we found the best leader to align the company and execute the initiatives we develop together over the last three years to ensure we went today and invest for tomorrow. Over the past several years, we built a world-class team and this will ensure continuity. Andy is surrounded with excellent talent to drive continued growth and operational improvement.

Now, let me hand it over to Andy. Andy?

Andrew K. Silvernail

Thank you, Larry. Before moving on to the results, I want to take this opportunity to thank Larry for his leadership during the past seven years. Larry has achieved an impressive list of accomplishments while at IDEX. I’m honored to succeed him as CEO and have the opportunity, along with our great team, to lead the company into the future. I appreciate the support Larry has provided me over the last three years. He’s been a terrific leader and an outstanding mentor. I hope you’ll all join me in wishing him success both personally and professionally.

With that, I’d also like to quickly address my top priorities as CEO. First and foremost, I want to reiterate that our strategy has been and will continue to be focused on our global growth platforms and executing with a disciplined operating model. Specifically, we will continue to focus on our company-wide priorities.

First, we’ll improve our growth profile through organic investments and acquisitions. Second, we’ll build a great global team and develop our people to support our continued growth. Third, we’ll advance our operational and commercial excellence initiatives, which have been the foundation of our success. Through execution on these priorities, we’ll be more flexible, innovative and responsive in filling customers’ needs. Ultimately, these make IDEX stronger and even more competitive.

As Mike laid out our comment on our longer-term prospects and our view of the economic environment, we’ll present detailed guidance for 2012 in our fourth quarter earnings call. But today, I’ll share my perspective on the performance on our end markets and our longer-term outlook. We’ve just completed our three-year strategic planning process, and after reviewing the individual business units plans over the past couple of months, we remain bullish as we look 2012 and beyond.

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