LAKE FOREST, Ill.--(BUSINESS WIRE)--Oct. 16, 2017-- IDEX Corporation (NYSE: IEX) today announced its financial results for the three month period ended September 30, 2017.

Third Quarter 2017 Highlights

• Orders were up 8 percent overall and 7 percent organically
• Sales were up 8 percent overall and 7 percent organically
• Operating margin was 22.0 percent
• EPS was $1.08, up 17 cents, or 19 percent

Third Quarter 2017

Orders of $573.8 million were up 8 percent (+7 percent organic and +1 percent foreign currency translation) compared with the prior year period.

Sales of $574.5 million were up 8 percent (+7 percent organic and +1 percent foreign currency translation) compared with the prior year period.

Gross margin of 44.9 percent was up 140 basis points from the prior year period. Excluding $4.6 million of pre-tax fair value inventory step-up charges from the prior year period, gross margin would have been up 50 basis points primarily due to volume leverage.

Operating income of $126.5 million resulted in an operating margin of 22.0 percent, up 130 basis points from the prior year operating margin and 90 basis points from the prior year adjusted operating margin. Excluding the $4.6 million fair value step-up charges from the prior year results, operating margin would have been up 10 basis points. Operating income drove EBITDA of $146.1 million which was 25 percent of sales and covered interest expense by more than 13 times.

Net income was $83.8 million which resulted in EPS of $1.08, up 17 cents, or 19 percent, from the prior year period. Excluding the net loss on divestitures from the prior year period, EPS was up 16 cents, or 17 percent from adjusted prior year EPS.

Cash from operations for the third quarter of $124.0 million led to free cash flow of $115.5 million, which converted at 138 percent of net income.

The Company repurchased 116 thousand shares of common stock for $13.8 million in the third quarter of 2017.

“Solid execution, coupled with increasing demand, delivered another strong quarter for IDEX. Third quarter organic orders and sales both grew 7 percent, which drove operating margin of 22.0 percent. HST and FMT continued to lead the way with 10 percent and 7 percent organic revenue growth, respectively. This growth resulted in EPS of $1.08 which was up 16 cents, or 17 percent, from the adjusted prior year period. Free cash flow was very strong with a conversion rate at 138 percent of net income.

I am pleased with the solid organic growth rates we have achieved this year. Consistent with our capital deployment strategy, our number one priority is to fully fund long-term organic growth opportunities. Our commitment to segmenting our businesses and funding our best organic initiatives is helping to deliver on our goal of outperforming our underlying markets. Looking ahead, we will continue to fund these opportunities as an integral part of our capital deployment objectives which include pursuing strategic M&A, funding our dividend and being opportunistic in repurchasing our shares.

Based on our third quarter results and strength in orders across all three segments, we are raising full year 2017 adjusted EPS guidance to $4.25 to $4.27, with fourth quarter EPS of $1.06 to $1.08. We also reaffirm full year 2017 organic revenue growth of 5 percent, with 6 percent organic growth expected in the fourth quarter.”

Andrew K. Silvernail

Chairman and Chief Executive Officer

Third Quarter 2017 Segment Highlights

Fluid & Metering Technologies

• Sales of $221.0 million reflected a 6 percent increase compared to the third quarter of 2016 (+7 percent organic, -2 percent divestitures and +1 percent foreign currency translation).
• Operating income of $62.0 million resulted in an operating margin of 28.1 percent, a 130 basis point increase compared to the prior year period operating margin primarily due to higher volume, cost savings from prior year restructuring initiatives and lower amortization.
• EBITDA of $68.0 million resulted in an EBITDA margin of 30.8 percent, a 60 basis point increase compared to the prior year period EBITDA margin.

Health & Science Technologies

• Sales of $207.1 million reflected a 13 percent increase compared to the third quarter of 2016 (+10 percent organic and +3 percent acquisition/divestitures).
• Operating income of $46.1 million resulted in an operating margin of 22.2 percent, a 190 basis point increase compared to the prior year period operating margin primarily due to higher volume and the inclusion of a fair value inventory step-up charge in the prior year period.
• EBITDA of $58.2 million resulted in an EBITDA margin of 28.1 percent, a 150 basis point increase compared to the prior year period EBITDA margin.

Fire & Safety/Diversified Products

• Sales of $146.6 million reflected a 6 percent increase compared to the third quarter of 2016 (+4 percent organic and +2 percent foreign currency translation).
• Operating income of $36.2 million resulted in an operating margin of 24.7 percent, a 130 basis point increase compared to the prior year period operating margin primarily due to higher volume and the inclusion of a fair value inventory step-up charge in the prior year period.
• EBITDA of $38.9 million resulted in an EBITDA margin of 26.5 percent, a 40 basis point increase compared to the prior year period EBITDA margin.

For the third quarter of 2017, Fluid & Metering Technologies contributed 38 percent of sales, 43 percent of operating income and 41 percent of EBITDA; Health & Science Technologies accounted for 36 percent of sales, 32 percent of operating income and 35 percent of EBITDA; and Fire & Safety/Diversified Products represented 26 percent of sales, 25 percent of operating income and 24 percent of EBITDA.

Non-U.S. GAAP Measures of Financial Performance

The Company supplements certain U.S. GAAP financial performance metrics with non-U.S. GAAP financial performance metrics in order to provide investors with better insight and increased transparency while also allowing for a more comprehensive understanding of the financial information used by management in its decision making. Reconciliations of non-U.S. GAAP financial performance metrics to their most comparable U.S. 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 U.S. GAAP. There were no adjustments to U.S. GAAP financial performance metrics other than the items noted below.

• Organic orders and sales are calculated according to U.S. GAAP excluding amounts from acquired or divested businesses during the first twelve months of ownership or divestiture and the impact of foreign currency translation.
• Adjusted operating income is calculated as operating income plus restructuring expenses plus or minus the net loss or gain on sale of businesses.
• Adjusted operating margin is calculated as adjusted operating income divided by net sales.
• Adjusted net income is calculated as net income plus restructuring expenses plus or minus the net loss or gain on sale of businesses, net of the statutory tax expense or benefit.
• EBITDA is calculated as net income plus interest expense plus provision for income taxes plus depreciation and amortization. We reconciled EBITDA to net income on a consolidated basis as we do not allocate consolidated interest expense or consolidated provision for income taxes to our segments.
• Adjusted EBITDA is calculated as EBITDA plus restructuring expenses plus or minus the net loss or gain on sale of businesses.
• Free cash flow is calculated as cash flow from operating activities less capital expenditures.

Table 1: Reconciliations of the Change in Net Sales to Net Organic Sales
			Quarter Ended									Nine Months Ended
			September 30, 2017									September 30, 2017
			FMT		HST		FSDP		IDEX			FMT		HST		FSDP		IDEX
Change in net sales			6%		13%		6%		8%			3%		10%		12%		8%
- Net impact from acquisitions/divestitures			(2%)		3%		0%		0%			(2%)		4%		12%		4%
- Impact from FX			1%		0%		2%		1%			0%		(1%)		(1%)		(1%)
Change in net organic sales			7%		10%		4%		7%			5%		7%		1%		5%

Table 2: Reconciliations of Reported-to-Adjusted Operating Income and Margin (dollars in thousands)
			Quarter Ended September 30,
			2017																					2016 (e)
			FMT				HST				FSDP				Corporate				IDEX					FMT				HST				FSDP				Corporate				IDEX
Reported operating income (loss)			$	61,988			$	46,073			$	36,199			$	(17,756	)		$	126,504				$	55,907			$	37,195			$	32,492			$	(15,886	)		$	109,708
+Loss (gain) on sale of businesses - net				-				-				-				-				-					-				-				-				2,067				2,067
Adjusted operating income (loss)			$	61,988			$	46,073			$	36,199			$	(17,756	)		$	126,504				$	55,907			$	37,195			$	32,492			$	(13,819	)		$	111,775
Net sales (eliminations)			$	220,953			$	207,127			$	146,599			$	(189	)		$	574,490				$	208,335			$	183,564			$	138,767			$	(310	)		$	530,356
Operating margin				28.1	%			22.2	%			24.7	%			n/m				22.0	%				26.8	%			20.3	%			23.4	%			n/m				20.7	%
Adjusted operating margin				28.1	%			22.2	%			24.7	%			n/m				22.0	%				26.8	%			20.3	%			23.4	%			n/m				21.1	%
			Nine Months Ended September 30,
			2017																					2016 (e)
			FMT				HST				FSDP				Corporate				IDEX					FMT				HST				FSDP				Corporate				IDEX
Reported operating income (loss)			$	179,830			$	134,605			$	106,022			$	(53,149	)		$	367,308				$	161,782			$	118,985			$	92,566			$	(46,457	)		$	326,876
+Restructuring expenses				1,566				3,028				73				130				4,797					-				-				-				-				-
+Loss (gain) on sale of businesses - net				-				-				-				-				-					-				-				-				2,067				2,067
Adjusted operating income (loss)			$	181,396			$	137,633			$	106,095			$	(53,019	)		$	372,105				$	161,782			$	118,985			$	92,566			$	(44,390	)		$	328,943
Net sales (eliminations)			$	658,905			$	611,215			$	432,029			$	(741	)		$	1,701,408				$	641,988			$	556,475			$	384,996			$	(835	)		$	1,582,624
Operating margin				27.3	%			22.0	%			24.5	%			n/m				21.6	%				25.2	%			21.4	%			24.0	%			n/m				20.7	%
Adjusted operating margin				27.5	%			22.5	%			24.6	%			n/m				21.9	%				25.2	%			21.4	%			24.0	%			n/m				20.8	%

Table 3: Reconciliations of Reported-to-Adjusted Net Income and EPS (in thousands, except EPS)
			Quarter								Nine Months
			Ended September 30,								Ended September 30,
			2017			2016					2017				2016
Reported net income			$	83,768		$	69,873				$	243,511			$	213,762
+Restructuring expenses				-			-					4,797				-
+Tax impact on restructuring expenses				-			-					(1,529	)			-
+Loss (gain) on sale of businesses - net				-			2,067					-				2,067
+Tax impact on loss (gain) on sale of businesses - net				-			(1,467	)				-				(1,467	)
Adjusted net income			$	83,768		$	70,473				$	246,779			$	214,362
Reported EPS			$	1.08		$	0.91				$	3.15			$	2.78
+Restructuring expenses				-			-					0.06				-
+Tax impact on restructuring expenses				-			-					(0.02	)			-
+Loss (gain) on sale of businesses - net				-			0.03					-				0.03
+Tax impact on loss (gain) on sale of businesses - net				-			(0.02	)				-				(0.02	)
Adjusted EPS			$	1.08		$	0.92				$	3.19			$	2.79
Diluted weighted average shares				77,523			76,880					77,246				76,742

Table 4: Reconciliations of EBITDA to Net Income (dollars in thousands)
			Quarter Ended September 30,
			2017																				2016 (e)
			FMT				HST				FSDP				Corporate				IDEX				FMT				HST				FSDP				Corporate				IDEX
Operating income (loss)			$	61,988			$	46,073			$	36,199			$	(17,756	)		$	126,504			$	55,907			$	37,195			$	32,492			$	(15,886	)		$	109,708
- Other (income) expense - net				230				(970	)			1,044				1,349				1,653				171				(384	)			(195	)			(1,105	)			(1,513	)
+ Depreciation and amortization				6,192				11,189				3,709				190				21,280				7,168				11,163				3,584				277				22,192
EBITDA				67,950				58,232				38,864				(18,915	)			146,131				62,904				48,742				36,271				(14,504	)			133,413
- Interest expense																				11,064																				11,913
- Provision for income taxes																				30,019																				29,435
- Depreciation and amortization																				21,280																				22,192
Net income																			$	83,768																			$	69,873
Net sales (eliminations)			$	220,953			$	207,127			$	146,599			$	(189	)		$	574,490			$	208,335			$	183,564			$	138,767			$	(310	)		$	530,356
Operating margin				28.1	%			22.2	%			24.7	%			n/m				22.0	%			26.8	%			20.3	%			23.4	%			n/m				20.7	%
EBITDA margin				30.8	%			28.1	%			26.5	%			n/m				25.4	%			30.2	%			26.6	%			26.1	%			n/m				25.2	%
			Nine Months Ended September 30,
			2017																				2016 (e)
			FMT				HST				FSDP				Corporate				IDEX				FMT				HST				FSDP				Corporate				IDEX
Operating income (loss)			$	179,830			$	134,605			$	106,022			$	(53,149	)		$	367,308			$	161,782			$	118,985			$	92,566			$	(46,457	)		$	326,876
- Other (income) expense - net				707				97				1,663				(750	)			1,717				566				(1,548	)			(485	)			(1,029	)			(2,496	)
+ Depreciation and amortization				17,823				34,447				10,938				598				63,806				22,011				33,044				8,316				953				64,324
EBITDA				196,946				168,955				115,297				(51,801	)			429,397				183,227				153,577				101,367				(44,475	)			393,696
- Interest expense																				33,920																				33,607
- Provision for income taxes																				88,160																				82,003
- Depreciation and amortization																				63,806																				64,324
Net income																			$	243,511																			$	213,762
Net sales (eliminations)			$	658,905			$	611,215			$	432,029			$	(741	)		$	1,701,408			$	641,988			$	556,475			$	384,996			$	(835	)		$	1,582,624
Operating margin				27.3	%			22.0	%			24.5	%			n/m				21.6	%			25.2	%			21.4	%			24.0	%			n/m				20.7	%
EBITDA margin				29.9	%			27.6	%			26.7	%			n/m				25.2	%			28.5	%			27.6	%			26.3	%			n/m				24.9	%

Table 5: Reconciliations of EBITDA to Adjusted EBITDA (dollars in thousands)
			Quarter Ended September 30,
			2017																					2016
			FMT				HST				FSDP				Corporate				IDEX					FMT				HST				FSDP				Corporate				IDEX
EBITDA			$	67,950			$	58,232			$	38,864			$	(18,915	)		$	146,131				$	62,904			$	48,742			$	36,271			$	(14,504	)		$	133,413
+Loss (gain) on sale of businesses - net				-				-				-				-				-					-				-				-				2,067				2,067
Adjusted EBITDA			$	67,950			$	58,232			$	38,864			$	(18,915	)		$	146,131				$	62,904			$	48,742			$	36,271			$	(12,437	)		$	135,480
Adjusted EBITDA margin				30.8	%			28.1	%			26.5	%			n/m				25.4	%				30.2	%			26.6	%			26.1	%			n/m				25.5	%
			Nine Months Ended September 30,
			2017																					2016
			FMT				HST				FSDP				Corporate				IDEX					FMT				HST				FSDP				Corporate				IDEX
EBITDA			$	196,946			$	168,955			$	115,297			$	(51,801	)		$	429,397				$	183,227			$	153,577			$	101,367			$	(44,475	)		$	393,696
+Restructuring expenses				1,566				3,028				73				130				4,797					-				-				-				-				-
+Loss (gain) on sale of businesses - net				-				-				-				-				-					-				-				-				2,067				2,067
Adjusted EBITDA			$	198,512			$	171,983			$	115,370			$	(51,671	)		$	434,194				$	183,227			$	153,577			$	101,367			$	(42,408	)		$	395,763
Adjusted EBITDA margin				30.1	%			28.1	%			26.7	%			n/m				25.5	%				28.5	%			27.6	%			26.3	%			n/m				25.0	%

Table 6: Reconciliations of Free Cash Flow (in thousands)
			Quarter Ended											Nine Months Ended
			September 30,							June 30,				September 30,
			2017			2016				2017				2017			2016
Cash flow from operating activities			$	124,000		$	125,480			$	87,601			$	296,580		$	284,324
- Capital expenditures				8,515			11,590				9,377				28,054			28,642
Free cash flow			$	115,485		$	113,890			$	78,224			$	268,526		$	255,682

Conference Call to be Broadcast over the Internet

IDEX will broadcast its third quarter earnings conference call over the Internet on Tuesday, October 17, 2017 at 9:30 a.m. CT. Chairman and Chief Executive Officer Andy Silvernail and Senior Vice President and Chief Financial Officer William Grogan 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 carried live 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 #13652255.

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, capital expenditures, acquisitions, cost reductions, cash flow, revenues, earnings, market conditions, global economies and operating improvements, and are indicated by words or phrases such as “anticipates,” “estimates,” “plans,” “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: economic and political consequences resulting from terrorist attacks and wars; levels of industrial activity and economic conditions in the U.S. and other countries around the world; pricing pressures and other competitive factors, and levels of capital spending in certain industries – all of which could have a material impact on order rates and IDEX’s results, particularly in light of the low levels of order backlogs it typically maintains; its ability to make acquisitions and to integrate and operate acquired businesses on a profitable basis; 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; interest rates; capacity utilization and the effect this has on costs; labor markets; market conditions and material costs; 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 filed with the 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 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.

(Financial reports follow)

IDEX CORPORATION
Condensed Consolidated Statements of Operations
(in thousands except per share amounts)
(unaudited)
			Quarter Ended							Nine Months Ended
			September 30,							September 30,
			2017			2016 (e)				2017			2016 (e)
Net sales			$	574,490		$	530,356			$	1,701,408		$	1,582,624
Cost of sales				316,560			299,467				935,612			884,342
Gross profit				257,930			230,889				765,796			698,282
Selling, general and administrative expenses				131,426			119,114				393,691			369,339
Restructuring expenses				-			-				4,797			-
Loss (gain) on sale of businesses - net				-			2,067				-			2,067
Operating income				126,504			109,708				367,308			326,876
Other (income) expense - net				1,653			(1,513	)			1,717			(2,496	)
Interest expense				11,064			11,913				33,920			33,607
Income before income taxes				113,787			99,308				331,671			295,765
Provision for income taxes				30,019			29,435				88,160			82,003
Net income			$	83,768		$	69,873			$	243,511		$	213,762
Earnings per Common Share (a):
Basic earnings per common share			$	1.09		$	0.92			$	3.19		$	2.81
Diluted earnings per common share			$	1.08		$	0.91			$	3.15		$	2.78
Share Data:
Basic weighted average common shares outstanding				76,309			75,819				76,215			75,753
Diluted weighted average common shares outstanding				77,523			76,880				77,246			76,742
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
										September 30,			December 31,
										2017			2016
Assets
Current assets
Cash and cash equivalents										$	303,291		$	235,964
Receivables - net											307,505			272,813
Inventories											266,705			252,859
Other current assets											77,977			61,085
Total current assets											955,478			822,721
Property, plant and equipment - net											250,889			247,816
Goodwill and intangible assets											2,094,621			2,068,096
Other noncurrent assets											16,773			16,311
Total assets										$	3,317,761		$	3,154,944
Liabilities and shareholders' equity
Current liabilities
Trade accounts payable										$	137,917		$	128,933
Accrued expenses											170,223			152,852
Short-term borrowings											347			1,046
Dividends payable											28,364			26,327
Total current liabilities											336,851			309,158
Long-term borrowings											874,853			1,014,235
Other noncurrent liabilities											295,745			287,657
Total liabilities											1,507,449			1,611,050
Shareholders' equity											1,810,312			1,543,894
Total liabilities and shareholders' equity										$	3,317,761		$	3,154,944

IDEX CORPORATION
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
			Nine Months Ended September 30,
			2017					2016
Cash flows from operating activities
Net income			$	243,511				$	213,762
Adjustments to reconcile net income to net cash provided by operating activities:
Loss (gain) on sale of businesses - net				-					2,067
Depreciation and amortization				28,425					28,360
Amortization of intangible assets				35,381					35,964
Amortization of debt issuance costs				989					1,150
Share-based compensation expense				18,143					15,325
Deferred income taxes				1,888					4,880
Non-cash interest expense associated with forward starting swaps				5,004					5,144
Changes in (net of the effect from acquisitions and divestitures):
Receivables				(28,407	)				(2,178	)
Inventories				(4,869	)				22,250
Other current assets				(15,113	)				(18,276	)
Trade accounts payable				3,681					(16,696	)
Accrued expenses				9,912					(2,982	)
Other — net				(1,965	)				(4,446	)
Net cash flows provided by operating activities				296,580					284,324
Cash flows from investing activities
Purchases of property, plant and equipment				(28,054	)				(28,642	)
Acquisition of businesses, net of cash acquired				-					(510,001	)
Proceeds from sale of businesses, net of cash sold				-					32,529
Proceeds from fixed asset disposals				5,159					-
Other — net				(337	)				(73	)
Net cash flows used in investing activities				(23,232	)				(506,187	)
Cash flows from financing activities
Borrowings under revolving facilities				33,000					460,524
Proceeds from 3.20% Senior Notes				-					100,000
Proceeds from 3.37% Senior Notes				-					100,000
Payments under revolving facilities				(181,692	)				(402,172	)
Debt issuance costs				-					(246	)
Dividends paid				(82,869	)				(77,367	)
Proceeds from stock option exercises				18,980					23,154
Purchase of common stock				(22,650	)				(57,272	)
Unvested shares surrendered for tax withholding				(5,903	)				(4,899	)
Settlement of foreign exchange contracts				4,406					-
Net cash flows provided by (used in) financing activities				(236,728	)				141,722
Effect of exchange rate changes on cash and cash equivalents				30,707					(8,480	)
Net increase (decrease)				67,327					(88,621	)
Cash and cash equivalents at beginning of year				235,964					328,018
Cash and cash equivalents at end of period			$	303,291				$	239,397

IDEX CORPORATION
Company and Segment Financial Information - Reported
(dollars in thousands)
(unaudited)
				Quarter Ended										Nine Months Ended
				September 30, (b)										September 30, (b)
				2017					2016 (e)					2017					2016 (e)
	Fluid & Metering Technologies
	Net sales			$	220,953				$	208,335				$	658,905				$	641,988
	Operating income (c)				61,988					55,907					179,830					161,782
	Operating margin				28.1		%			26.8		%			27.3		%			25.2		%
	EBITDA			$	67,950				$	62,904				$	196,946				$	183,227
	EBITDA margin				30.8		%			30.2		%			29.9		%			28.5		%
	Depreciation and amortization			$	6,192				$	7,168				$	17,823				$	22,011
	Capital expenditures				3,944					5,091					12,159					12,704
	Health & Science Technologies
	Net sales			$	207,127				$	183,564				$	611,215				$	556,475
	Operating income (c)				46,073					37,195					134,605					118,985
	Operating margin				22.2		%			20.3		%			22.0		%			21.4		%
	EBITDA			$	58,232				$	48,742				$	168,955				$	153,577
	EBITDA margin				28.1		%			26.6		%			27.6		%			27.6		%
	Depreciation and amortization			$	11,189				$	11,163				$	34,447				$	33,044
	Capital expenditures				3,015					4,450					11,489					11,455
	Fire & Safety/Diversified Products
	Net sales			$	146,599				$	138,767				$	432,029				$	384,996
	Operating income (c)				36,199					32,492					106,022					92,566
	Operating margin				24.7		%			23.4		%			24.5		%			24.0		%
	EBITDA			$	38,864				$	36,271				$	115,297				$	101,367
	EBITDA margin				26.5		%			26.1		%			26.7		%			26.3		%
	Depreciation and amortization			$	3,709				$	3,584				$	10,938				$	8,316
	Capital expenditures				1,506					2,034					4,178					4,305
	Corporate Office and Eliminations
	Intersegment sales eliminations			$	(189	)			$	(310	)			$	(741	)			$	(835	)
	Operating loss (c)				(17,756	)				(15,886	)				(53,149	)				(46,457	)
	EBITDA				(18,915	)				(14,504	)				(51,801	)				(44,475	)
	Depreciation and amortization				190					277					598					953
	Capital expenditures				50					15					228					178
	Company
	Net sales			$	574,490				$	530,356				$	1,701,408				$	1,582,624
	Operating income				126,504					109,708					367,308					326,876
	Operating margin				22.0		%			20.7		%			21.6		%			20.7		%
	EBITDA			$	146,131				$	133,413				$	429,397				$	393,696
	EBITDA margin				25.4		%			25.2		%			25.2		%			24.9		%
	Depreciation and amortization (d)			$	21,280				$	22,192				$	63,806				$	64,324
	Capital expenditures				8,515					11,590					28,054					28,642

(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 and nine month data includes the results of SFC Koenig (September 2016) in the Health & Science Technologies segment and Akron Brass (March 2016) and AWG Fittings (July 2016) in the Fire & Safety/Diversified Products segment from the date of acquisition. Three and nine month data also includes the results of Hydra-Stop (July 2016) and IETG (October 2016) in the Fluid & Metering Technologies segment and CVI Japan (September 2016) and CVI Korea (December 2016) in the Health & Science Technologies segment through the date of disposition.
(c)		Segment operating income excludes unallocated corporate operating expenses which are included in Corporate Office and Eliminations.
(d)		Depreciation and amortization excludes amortization of debt issuance costs.
(e)		Certain amounts in the prior year presentation have been reclassified to conform to the current presentation due to the early adoption of ASU 2017-07, Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.

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Source: IDEX Corporation

IDEX Corporation
Investor Contact:
William K. Grogan
Senior Vice President and Chief Financial Officer
(847) 498-7070