- Orders increased 20 percent compared to the prior year (+11 percent organic, +10 percent acquisition and -1 percent foreign currency translation).
- Sales increased 15 percent compared to the prior year (+6 percent organic, +10 percent acquisition and -1 percent foreign currency translation).
- Reported net income of $52 million was $4 million, or 9 percent, higher than the prior year. Excluding restructuring related charges, adjusted net income was $56 million or 16 percent higher than prior-year net income.
- Reported diluted EPS of 62 cents was 5 cents, or 9 percent, higher than the prior-year EPS. Adjusted EPS of 66 cents was 9 cents, or 16 percent, higher than the prior-year EPS.
- EBITDA of $104 million was 21 percent of sales and covered interest expense by nearly 10 times.
- Free cash flow was $52 million, representing a first quarter record and 100 percent of net income.
- The Company completed the repurchase of 239 thousand shares of common stock for $10.2 million.
- The Board of Directors approved an 18 percent increase in the quarterly cash dividend in April.
Our restructuring actions are paying off, and combined with our continued focus on operational excellence, we achieved an adjusted operating margin of 18.3 percent. Excluding restructuring charges, first quarter diluted EPS of 66 cents was up 16 percent from the first quarter 2011. Overall, I am extremely pleased with the performance of the company and I am excited about the prospects for the second quarter and full year 2012.Based on our current outlook, projected second quarter 2012 diluted EPS is in the range of 70 to 72 cents. Our full year outlook for 2012 has improved. We are increasing our guidance for full year 2012 diluted EPS to $2.80 to $2.85 with mid-single digit organic revenue growth.” Andrew K. SilvernailChairman and Chief Executive Officer First Quarter 2012 Business Highlights (2012 operating margin excludes restructuring related charges) Fluid & Metering Technologies
- Sales in the first quarter of $213 million reflected a 7 percent increase compared to the first quarter of 2011 (+8 percent organic and -1 percent foreign currency translation).
- Operating margin of 22.2 percent represented a 120 basis point improvement compared with the first quarter of 2011 due to higher volumes and operational excellence initiatives.
- Sales in the first quarter of $174 million reflected a 35 percent increase compared to the first quarter of 2011 (+2 percent organic and +33 percent acquisitions).
- Operating margin of 18.3 percent represented a 450 basis point decrease compared with the first quarter of 2011 due to the dilutive impact from acquisitions.
- Sales in the first quarter of $104 million reflected a 5 percent increase compared to the first quarter of 2011 (+7 percent organic and -2 percent foreign currency translation).
- Operating margin of 23.3 percent represented a 190 basis point improvement compared with the first quarter of 2011 primarily due to higher volume and cost productivity, including the benefit from our recent restructuring actions.
|EBITDA and Free Cash Flow bridge||For the Quarter Ended|
|March 31,||December 31,|
|Income before Taxes||$74.0||$70.4||5||%||$67.2||10||%|
|Depreciation and Amortization||19.2||15.6||23||19.3||-|
|Cash Flow from Operating Activities||$58.7||$29.1||102||%||$41.6||41||%|
|Excess Tax Benefit from Stock-Based Compensation||2.1||2.4||(11)||0.4||n/m|
|Free Cash Flow||$52.3||$20.1||161||$34.8||50|
About IDEXIDEX Corporation is an applied solutions company specializing in fluid and metering technologies, health and science technologies, and fire, safety and other diversified products built to its customers’ exacting specifications. Its products are sold in niche markets to a wide range of industries throughout the world. IDEX shares are traded on the New York Stock Exchange and Chicago Stock Exchange under the symbol “IEX”. For further information on IDEX Corporation and its business units, visit the company’s website at www.idexcorp.com . (Tables follow)
|Condensed Statements of Consolidated Operations|
|(in thousands except per share amounts)|
|Three Months Ended|
|Cost of sales||286,528||248,389|
|Selling, general and administrative expenses||113,382||100,979|
|Other expense (income) - net||(117||)||907|
|Income before income taxes||74,024||70,360|
|Provision for income taxes||21,853||22,409|
|Earnings per Common Share:|
|Basic earnings per common share (a)||$||0.63||$||0.58|
|Diluted earnings per common share (a)||$||0.62||$||0.57|
|Basic weighted average common shares outstanding||82,804||81,430|
|Diluted weighted average common shares outstanding||83,902||83,248|
|Condensed Consolidated Balance Sheets|
|March 31,||December 31,|
|Cash and cash equivalents||$||245,543||$||230,259|
|Receivables - net||270,825||252,845|
|Other current assets||59,137||51,799|
|Total current assets||829,069||789,161|
|Property, plant and equipment - net||214,153||213,717|
|Goodwill and intangible assets||1,816,271||1,813,588|
|Other noncurrent assets||19,633||19,641|
|Liabilities and shareholders' equity|
|Trade accounts payable||$||116,209||$||110,977|
|Total current liabilities||249,260||258,278|
|Other noncurrent liabilities||259,445||258,328|
|Total liabilities and shareholders' equity||$||2,879,126||$||2,836,107|
|Company and Business Group Financial Information|
|(dollars in thousands)|
|Three Months Ended|
|March 31, (b)|
|Fluid & Metering Technologies|
|Net sales||$ 212,718||$ 199,674|
|Operating income (d)||47,185||41,852|
|Depreciation and amortization||$ 7,540||$ 7,998|
|Health & Science Technologies|
|Net sales||$ 173,786||$ 129,234|
|Operating income (d)||31,725||29,499|
|Depreciation and amortization||$ 9,461||$ 4,984|
|Fire & Safety/Diversified Products (c)|
|Net sales||$ 104,050||$ 98,887|
|Operating income (d)||24,232||21,142|
|Depreciation and amortization||$ 1,779||$ 2,342|
|Net sales||$ 489,417||$ 427,089|
|Operating income (d)||89,507||77,721|
|Depreciation and amortization (e)||$ 19,190||$ 15,622|
|(a)||Calculated by applying the two-class method of allocating earnings to common stock and participating securities as required by ASC 260, Earnings Per Share.|
|(b)||Three month data includes acquisitions of CVI Melles Griot (June 2011), Microfluidics (March 2011) and Advanced Thin Films (January 2011) in the Health & Science Technologies segment from the date of acquisition.|
|(c)||Financial data for 2011 has been revised to reflect the transfer of our Trebor business unit from the Health & Science Technologies segment to the Fluid & Metering Technologies segment as well as the movement of the Dispensing Equipment segment into the Fire & Safety/Diversified Products segment.|
|(d)||Group operating income excludes unallocated corporate operating expenses while both Group and Company operating income excludes restructuring related charges.|
|(e)||Depreciation and amortization excludes amortization of debt issuance expenses.|