For further information: TRADED: NYSE (IEX) EX-99.1
William K. Grogan
Senior Vice President and Chief Financial Officer
TUESDAY, OCTOBER 23, 2018
IDEX REPORTS RECORD THIRD QUARTER RESULTS;
Q3 SALES UP 8 PERCENT OVERALL AND 9 PERCENT ORGANICALLY;
Q3 REPORTED EPS WAS $1.37 WITH ADJUSTED EPS OF $1.41
LAKE FOREST, IL, OCTOBER 23 - IDEX Corporation (NYSE: IEX) today announced its financial results for the three month period ended September 30, 2018.
Third Quarter 2018 Highlights
Orders were up 7 percent overall and 8 percent organically
Sales were up 8 percent overall and 9 percent organically
Reported operating margin was 23.3 percent with adjusted operating margin of 24.0 percent, up 200 bps
Reported EPS was $1.37 with adjusted EPS of $1.41, up 31 percent
Third Quarter 2018
Orders of $615.1 million were up 7 percent compared with the prior year period (+8 percent organic and -1 percent foreign currency translation).
Sales of $622.9 million were up 8 percent compared with the prior year period (+9 percent organic and -1 percent foreign currency translation).
Gross margin of 45.0 percent was up 10 basis points compared with the prior year period primarily due to productivity initiatives and volume leverage, partially offset by higher engineering costs.
Operating income of $145.1 million resulted in an operating margin of 23.3 percent. Excluding $4.6 million of restructuring expenses, adjusted operating income was $149.8 million with an adjusted operating margin of 24.0 percent, up 200 basis points compared with the prior year period primarily due to lower amortization and consulting expenses. Adjusted operating income drove adjusted EBITDA of $167.4 million which was 27 percent of sales and covered interest expense by 15 times.
Provision for income taxes of $26.9 million in the third quarter of 2018 resulted in an effective tax rate (ETR) of 20.2 percent, which was lower than the prior year period ETR of 26.4 percent primarily due to the enactment of U.S. tax reform in 2017 as well as a higher excess tax benefit from stock option exercises in the third quarter of 2018.
Net income was $106.4 million which resulted in EPS of $1.37. Excluding restructuring expenses, adjusted EPS of $1.41 increased 33 cents, or 31 percent, from prior year period EPS.
Cash from operations of $133.3 million led to free cash flow of $114.4 million, which was down 1 percent from the prior year period and 104 percent of adjusted net income. The decrease in free cash flow was primarily due to a discretionary defined benefit pension contribution of $10.3 million along with higher capital expenditures in the third quarter of 2018.
The following information was filed by Idex Corp (IEX) on Wednesday, October 24, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.