Second Quarter 2024
Highlights
(All comparisons are against the second quarter of 2023 unless
otherwise noted)
- Sales of $807 million, down 5% overall and 4% organically
- Reported diluted EPS of $1.86, up 2%, and adjusted diluted EPS
of $2.06, down 6%, exceeding second quarter expectations
- Operating cash flow of $134 million, down 5%; free cash flow of
$118 million, down 2%
Revised Full Year and Third Quarter
2024 Outlook
- Full year organic sales growth is projected to decline 1% to 2%
versus the prior year, down from previous guidance of an increase
of 0% to 2%
- Full year GAAP diluted EPS of $6.85 - $6.95 (adjusted diluted
EPS of $7.80 - $7.90), down from previous guidance of $7.13 - $7.43
(adjusted diluted EPS of $8.15 - $8.45)
- Third quarter organic sales are projected to be 0% to 1% over
the prior year period
- Third quarter GAAP diluted EPS of $1.61 - $1.66 (adjusted
diluted EPS of $1.85 - $1.90)
IDEX Corporation (NYSE: IEX) today announced its financial
results for the three-month period ended June 30, 2024.
“IDEX teams delivered strong execution in the second quarter,
expanding margins sequentially despite stronger uncertainty-fueled
macro headwinds,” said Eric D. Ashleman, IDEX Corporation Chief
Executive Officer and President.
“As we tune the portfolio for sustained growth performance, our
business leaders are deploying focused resources to our best long
term growth initiatives within attractive application areas. We are
bolstering those efforts through thoughtful and disciplined capital
deployment. Our recently announced acquisition of Mott Corporation
is a powerful example given its outstanding fit with our businesses
and strategy.”
Consolidated Financial
Results
Three Months Ended June
30,
(Dollars in millions, except per share
amounts)
2024
2023
Increase (Decrease)
Orders
$
773.3
$
765.9
$
7.4
Change in organic orders*
2
%
Net sales
807.2
846.2
(39.0
)
Change in organic net sales*
(4
%)
Gross profit(a)
366.8
378.0
(11.2
)
Net income attributable to IDEX
141.3
138.6
2.7
Adjusted net income attributable to
IDEX*
156.1
165.4
(9.3
)
Adjusted EBITDA*
224.2
240.7
(16.5
)
Diluted EPS attributable to
IDEX
1.86
1.82
0.04
Adjusted diluted EPS attributable to
IDEX*
2.06
2.18
(0.12
)
Cash flows from operating
activities
133.6
141.2
(7.6
)
Free cash flow*
117.7
119.6
(1.9
)
Gross margin(a)
45.4
%
44.7
%
70 bps
Net income margin
17.5
%
16.4
%
110 bps
Adjusted EBITDA margin*
27.8
%
28.4
%
(60) bps
*These are non-GAAP measures. See the
definitions of these non-GAAP measures in the section in this
release titled “Non-GAAP Measures of Financial Performance” and
reconciliations to their most directly comparable GAAP financial
measures in the reconciliation tables at the end of this
release.
(a) There were no non-GAAP adjustments to
Gross profit or Gross margin during the periods presented.
- Organic net sales were down 4%, primarily driven by lower
volumes in our Health & Science Technologies segment, partially
offset by price capture across all segments.
- Gross margin of 45.4% increased 70 bps primarily due to strong
price/cost and favorable operational productivity, partially offset
by unfavorable mix, higher employee-related costs and lower volume
leverage.
- Net income margin of 17.5% increased 110 bps and reported
Diluted EPS of $1.86 increased $0.04. In addition to results
discussed above, Net income margin and reported Diluted EPS were
favorably impacted by the absence of a reserve recorded in the
prior year period on an investment with a collaborative partner,
lower interest expense, the gain on sale of Alfa Valvole, Srl
during the current year period and lower restructuring charges, all
of which was mostly offset by higher selling, general and
administrative expenses. Adjusted diluted EPS of $2.06 decreased
$0.12, and excluded the year over year benefit from non-GAAP
adjusted items during the period.
- Adjusted EBITDA margin of 27.8% decreased 60 bps driven by
lower volume leverage, unfavorable mix and higher variable
compensation and discretionary spending, partially offset by strong
price/cost and favorable operational productivity.
Segment Financial
Results
Three Months Ended June 30,
(a)
2024
2023
Increase (Decrease)
Fluid &
Metering Technologies ("FMT")
Net sales
$
319.4
$
325.1
$
(5.7
)
Change in organic net sales*
—
%
Adjusted EBITDA(b)
107.7
114.1
(6.4
)
Adjusted EBITDA margin
33.7
%
35.1
%
(140) bps
Health &
Science Technologies ("HST")
Net sales
$
303.8
$
339.5
$
(35.7
)
Change in organic net sales*
(11
%)
Adjusted EBITDA(b)
84.2
93.7
(9.5
)
Adjusted EBITDA margin
27.7
%
27.6
%
10 bps
Fire &
Safety/Diversified Products ("FSDP")
Net sales
$
185.4
$
184.8
$
0.6
Change in organic net sales*
1
%
Adjusted EBITDA(b)
53.8
54.5
(0.7
)
Adjusted EBITDA margin
29.0
%
29.4
%
(40) bps
*These are non-GAAP measures. See the
definitions of these non-GAAP measures in the section in this
release titled “Non-GAAP Measures of Financial Performance” and
reconciliations to their most directly comparable GAAP financial
measures in the reconciliation tables at the end of this
release.
(a) Three month data includes the results
of the acquisitions of Iridian Spectral Technologies (May 2023) and
STC Material Solutions (December 2023) in the HST segment. Three
month data also includes the results of Micropump, Inc. (August
2023) and Novotema, SpA (December 2023) in the HST segment and Alfa
Valvole Srl (June 2024) in the FMT segment through the dates of
disposition.
(b) Segment Adjusted EBITDA excludes
unallocated corporate costs which are included in Corporate and
other.
Fluid & Metering Technologies
Segment
- Organic net sales for the second quarter 2024 were flat
period-over-period with strong price capture offsetting the impact
of lower volumes.
- Adjusted EBITDA margin for the second quarter 2024 decreased
primarily due to higher discretionary spending, lower volume
leverage and higher employee-related costs, partially offset by
strong price/cost and favorable operational productivity.
Health & Science Technologies
Segment
- Organic net sales for the second quarter 2024 were negatively
impacted by lower volumes driven by continued broad based market
softness, which began in the second half of 2023. This decrease was
partially offset by price capture across all markets.
- Adjusted EBITDA margin for the second quarter 2024 increased
primarily due to the accretive impact of divestitures. Excluding
the impact of acquisitions and divestitures, Adjusted EBITDA margin
decreased 20 bps as a result of lower volume leverage, unfavorable
mix and higher employee-related costs, partially offset by
favorable operational productivity, strong price/cost and lower
discretionary spending.
Fire & Safety/Diversified Products
Segment
- Organic net sales for the second quarter 2024 were positively
impacted by price capture across all markets, which more than
offset the impact of slightly lower volumes.
- Adjusted EBITDA margin for the second quarter 2024 decreased
primarily due to higher employee-related costs and lower volume
leverage, partially offset by strong price/cost and favorable
operational productivity.
Other Items
- Entered into a definitive agreement on July 23, 2024 to acquire
Mott Corporation and its subsidiaries for cash consideration of
$1.0 billion, subject to customary adjustments, with expected
closing by the end of the third quarter of 2024.
- Divested Alfa Valvole Srl for $45.5 million cash, resulting in
a gain of $4.6 million.
- Repaid $25.0 million of the $50.0 million previously
outstanding under our term facility.
Conference Call to be Broadcast over
the Internet
IDEX will broadcast its second quarter earnings conference call
over the Internet on Thursday, August 1, 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 #13742104.
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 third 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
the expected timing for the closing of the Mott Corporation
acquisition, 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 catastrophic 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 (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 communications across outer space, 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 June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Net sales
$
807.2
$
846.2
$
1,607.7
$
1,691.6
Cost of sales
440.4
468.2
883.5
931.1
Gross profit
366.8
378.0
724.2
760.5
Selling, general and administrative
expenses
182.8
174.3
377.9
364.0
Restructuring expenses and asset
impairments
1.3
3.6
2.4
4.1
Operating income
182.7
200.1
343.9
392.4
Gain on sale of business
(4.6
)
—
(4.6
)
—
Other expense (income) – net
—
8.3
(2.7
)
7.7
Interest expense - net
8.1
13.3
17.5
26.4
Income before income taxes
179.2
178.5
333.7
358.3
Provision for income taxes
38.0
40.0
71.2
80.0
Net income
141.2
138.5
262.5
278.3
Net loss attributable to noncontrolling
interest
0.1
0.1
0.2
0.1
Net income attributable to IDEX
$
141.3
$
138.6
$
262.7
$
278.4
Earnings per Common Share:
Basic earnings per common share
attributable to IDEX
$
1.86
$
1.83
$
3.46
$
3.68
Diluted earnings per common share
attributable to IDEX
$
1.86
$
1.82
$
3.46
$
3.66
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
IDEX CORPORATION
Condensed Consolidated Balance
Sheets
(in millions)
(unaudited)
June 30, 2024
December 31, 2023
Assets
Current assets
Cash and cash equivalents
$
700.7
$
534.3
Receivables - net
426.2
427.8
Inventories - net
427.9
420.8
Other current assets
74.7
63.4
Total current assets
1,629.5
1,446.3
Property, plant and equipment -
net
419.1
430.3
Goodwill
2,787.2
2,838.3
Intangible assets - net
930.9
1,011.8
Other noncurrent assets
136.6
138.5
Total assets
$
5,903.3
$
5,865.2
Liabilities and equity
Current liabilities
Trade accounts payable
$
172.4
$
179.7
Accrued expenses
252.0
271.5
Current portion of long-term
borrowings
0.6
0.6
Dividends payable
52.4
48.5
Total current liabilities
477.4
500.3
Long-term borrowings - net
1,297.3
1,325.1
Deferred income taxes
281.3
291.9
Other noncurrent liabilities
193.9
206.7
Total liabilities
2,249.9
2,324.0
Shareholders' equity
Preferred stock
—
—
Common stock
0.9
0.9
Treasury stock
(1,179.1
)
(1,187.0
)
Additional paid-in capital
855.9
839.0
Retained earnings
4,092.5
3,934.3
Accumulated other comprehensive
loss
(116.4
)
(45.8
)
Total shareholders' equity
3,653.8
3,541.4
Noncontrolling interest
(0.4
)
(0.2
)
Total equity
3,653.4
3,541.2
Total liabilities and equity
$
5,903.3
$
5,865.2
IDEX CORPORATION
Condensed Consolidated Statements
of Cash Flows
(in millions)
(unaudited)
Six Months Ended June
30,
2024
2023
Cash flows from operating
activities
Net income
$
262.5
$
278.3
Adjustments to reconcile net income to
net cash flows provided by operating activities:
Gain on sale of business
(4.6
)
—
Credit loss on note receivable from
collaborative partner
—
7.7
Depreciation
32.5
27.2
Amortization of intangible
assets
48.5
46.8
Share-based compensation
expense
16.9
17.0
Deferred income taxes
0.4
—
Changes in (net of the effect from
acquisitions/divestitures and foreign currency
translation):
Receivables - net
(11.9
)
(5.8
)
Inventories - net
(19.8
)
(2.0
)
Other current assets
(12.2
)
(18.6
)
Trade accounts payable
0.3
(17.9
)
Deferred revenue
0.3
4.2
Accrued expenses
(21.9
)
(52.5
)
Other - net
(0.8
)
4.7
Net cash flows provided by operating
activities
290.2
289.1
Cash flows from investing
activities
Capital expenditures
(35.9
)
(48.2
)
Acquisition of business, net of cash
acquired
1.6
(110.3
)
Proceeds from sale of business, net of
cash remitted
45.5
—
Purchases of marketable
securities
—
(19.1
)
Other - net
0.5
1.0
Net cash flows provided by (used in)
investing activities
11.7
(176.6
)
Cash flows from financing
activities
Proceeds from issuance of long-term
borrowings
—
100.0
Payment of long-term borrowings
(25.0
)
(100.0
)
Cash dividends paid to
shareholders
(100.7
)
(93.9
)
Proceeds from share issuances, net of
shares withheld for taxes
7.9
3.4
Repurchases of common stock
—
(1.0
)
Other - net
(0.4
)
(0.5
)
Net cash flows used in financing
activities
(118.2
)
(92.0
)
Effect of exchange rate changes on cash
and cash equivalents
(17.3
)
6.3
Net increase in cash and cash
equivalents
166.4
26.8
Cash and cash equivalents at beginning
of year
534.3
430.2
Cash and cash equivalents at end of
period
$
700.7
$
457.0
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. 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 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.
Table 1: Reconciliations of the Change in Net Sales to
Organic Net Sales
FMT
HST
FSDP
IDEX
Three Months Ended June 30,
2024
Change in net sales
(2%)
(11%)
—%
(5%)
Less:
Net impact from
acquisitions/divestitures(1)
(1%)
—%
—%
—%
Impact from foreign currency
(1%)
—%
(1%)
(1%)
Change in organic net sales
—%
(11%)
1%
(4%)
Six Months Ended June 30,
2024
Change in net sales
(2%)
(11%)
1%
(5%)
Less:
Net impact from
acquisitions/divestitures(1)
—%
1%
—%
—%
Impact from foreign currency
(1%)
—%
—%
—%
Change in organic net sales
(1%)
(12%)
1%
(5%)
Table 2: Reconciliations of Reported-to-Adjusted Gross Profit
and Gross Margin (dollars in millions)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Gross profit
$
366.8
$
378.0
$
724.2
$
760.5
Fair value inventory step-up
charge
—
—
2.5
—
Adjusted gross profit
$
366.8
$
378.0
$
726.7
$
760.5
Net sales
$
807.2
$
846.2
$
1,607.7
$
1,691.6
Gross margin
45.4
%
44.7
%
45.0
%
45.0
%
Adjusted gross margin
45.4
%
44.7
%
45.2
%
45.0
%
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 June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Reported net income attributable to
IDEX
$
141.3
$
138.6
$
262.7
$
278.4
Fair value inventory step-up
charge
—
—
2.5
—
Tax impact on fair value inventory
step-up charge
—
—
(0.5
)
—
Restructuring expenses and asset
impairments
1.3
3.6
2.4
4.1
Tax impact on restructuring expenses
and asset impairments
(0.3
)
(0.8
)
(0.6
)
(0.9
)
Gain on sale of business
(4.6
)
—
(4.6
)
—
Tax impact on gain of sale of
business
—
—
—
—
Credit loss on note receivable from
collaborative partner(2)
—
7.7
—
7.7
Tax impact on credit loss on note
receivable from collaborative partner
—
(1.6
)
—
(1.6
)
Acquisition-related intangible asset
amortization
23.9
23.2
48.5
46.8
Tax impact on acquisition-related
intangible asset amortization
(5.5
)
(5.3
)
(11.1
)
(10.5
)
Adjusted net income attributable to
IDEX
$
156.1
$
165.4
$
299.3
$
324.0
Reported diluted EPS attributable to
IDEX
$
1.86
$
1.82
$
3.46
$
3.66
Fair value inventory step-up
charge
—
—
0.03
—
Tax impact on fair value inventory
step-up charge
—
—
(0.01
)
—
Restructuring expenses and asset
impairments
0.02
0.05
0.03
0.06
Tax impact on restructuring expenses
and asset impairments
—
(0.01
)
(0.01
)
(0.01
)
Gain on sale of business
(0.06
)
—
(0.06
)
—
Tax impact on gain of sale of
business
—
—
—
—
Credit loss on note receivable from
collaborative partner(2)
—
0.10
—
0.10
Tax impact on credit loss on note
receivable from collaborative partner
—
(0.02
)
—
(0.02
)
Acquisition-related intangible asset
amortization
0.31
0.31
0.64
0.62
Tax impact on acquisition-related
intangible asset amortization
(0.07
)
(0.07
)
(0.14
)
(0.14
)
Adjusted diluted EPS attributable to
IDEX
$
2.06
$
2.18
$
3.94
$
4.27
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 June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Reported net income
$
141.2
$
138.5
$
262.5
$
278.3
Provision for income taxes
38.0
40.0
71.2
80.0
Interest expense - net
8.1
13.3
17.5
26.4
Gain on sale of business
(4.6
)
—
(4.6
)
—
Depreciation
16.3
14.4
32.5
27.2
Amortization
23.9
23.2
48.5
46.8
Fair value inventory step-up
charges
—
—
2.5
—
Restructuring expenses and asset
impairments
1.3
3.6
2.4
4.1
Credit loss on note receivable from
collaborative partner(2)
—
7.7
—
7.7
Adjusted EBITDA
$
224.2
$
240.7
$
432.5
$
470.5
Adjusted EBITDA Components
FMT
$
107.7
$
114.1
$
213.1
$
220.3
HST
84.2
93.7
165.6
194.4
FSDP
53.8
54.5
105.2
104.2
Corporate and other
(21.5
)
(21.6
)
(51.4
)
(48.4
)
Total Adjusted EBITDA
$
224.2
$
240.7
$
432.5
$
470.5
Net sales
$
807.2
$
846.2
$
1,607.7
$
1,691.6
Net income margin
17.5
%
16.4
%
16.3
%
16.4
%
Adjusted EBITDA margin
27.8
%
28.4
%
26.9
%
27.8
%
Table 5: Reconciliations of Cash Flows from Operating
Activities to Free Cash Flow (dollars in millions)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Cash flows from operating
activities
$
133.6
$
141.2
$
290.2
$
289.1
Less: Capital expenditures
15.9
21.6
35.9
48.2
Free cash flow
$
117.7
$
119.6
$
254.3
$
240.9
Table 6: Reconciliation of Estimated 2024 Change in Net Sales
to Change in Organic Net Sales
Guidance
Third Quarter 2024
Full Year 2024
Low End
High End
Low End
High End
Change in net sales
(1%)
—%
(2%)
(1%)
Less:
Net impact from
acquisitions/divestitures
(1%)
(1%)
—%
—%
Impact from foreign currency
—%
—%
—%
—%
Change in organic net sales
—%
1%
(2%)
(1%)
Table 7: Reconciliation of Estimated 2024 Diluted EPS
Attributable to IDEX to Adjusted Diluted EPS Attributable to
IDEX
Guidance
Third Quarter 2024
Full Year 2024
Estimated diluted EPS attributable to
IDEX
$1.61 - $1.66
$6.85 - $6.95
Fair value inventory step-up
charge
—
0.03
Tax impact on fair value inventory
step-up charge
—
(0.01)
Restructuring expenses and asset
impairments
—
0.03
Tax impact on restructuring expenses
and asset impairments
—
(0.01)
Gain on sale of business
—
(0.06)
Tax impact on gain of sale of
business
—
—
Acquisition-related intangible asset
amortization
0.31
1.25
Tax impact on acquisition-related
intangible asset amortization
(0.07)
(0.28)
Estimated adjusted diluted EPS
attributable to IDEX
$1.85 - $1.90
$7.80 - $7.90
Table 8: Reconciliation of Estimated 2024 Net Income to
Adjusted EBITDA (dollars in millions)
Guidance
Third Quarter 2024
Full Year 2024
Low End
High End
Low End
High End
Reported net income
$
123.1
$
127.0
$
520.2
$
527.9
Provision for income taxes
36.8
37.9
148.1
150.4
Interest expense - net
9.8
9.8
37.1
37.1
Gain on sale of business
—
—
(4.6
)
(4.6
)
Depreciation
16.9
16.9
66.7
66.7
Amortization of intangible
assets
23.7
23.7
95.8
95.8
Fair value inventory step-up
charge
—
—
2.5
2.5
Restructuring expenses and asset
impairments
—
—
2.4
2.4
Adjusted EBITDA
$
210.3
$
215.3
$
868.2
$
878.2
Net sales
$
782.0
$
791.5
$
3,195.7
$
3,230.0
Net income margin
15.7
%
16.0
%
16.3
%
16.3
%
Adjusted EBITDA margin
26.9
%
27.2
%
27.2
%
27.2
%
(1)
Represents the sales from acquired or
divested businesses during the first 12 months of ownership or
prior to divestiture.
(2)
Represents a reserve on an investment with
a collaborative partner recorded in Other expense (income) – net
during the three and six months ended June 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240731833426/en/
Investor Contact: Wendy Palacios Vice President FP&A
and Investor Relations (847) 498-7070
Grafico Azioni IDEX (NYSE:IEX)
Storico
Da Nov 2024 a Dic 2024
Grafico Azioni IDEX (NYSE:IEX)
Storico
Da Dic 2023 a Dic 2024
