Document


 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
 
FORM 8-K
 
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The
Securities Exchange Act of 1934
Date of report: July 24, 2018
(Date of earliest event reported)
 
 

IDEX CORPORATION
(Exact name of registrant as specified in its charter)

 
 
Delaware
 
1-10235
 
36-3555336
(State or other jurisdiction
 
(Commission File Number)
 
(IRS Employer
of incorporation)
 
 
 
Identification No.)
1925 W. Field Court
Lake Forest, Illinois 60045
(Address of principal executive offices, including zip code)
(847) 498-7070
(Registrant’s telephone number, including area code)
 
 
 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 






Item 2.02 – Results of Operations and Financial Condition.

On July 24, 2018, IDEX Corporation (the “Company”) issued a press release announcing financial results for the period ended June 30, 2018.

A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

The information in this Current Report furnished pursuant to Item 2.02 shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. This information shall not be incorporated by reference into any registration statement pursuant to the Securities Act of 1933, as amended.


Item 7.01 – Regulation FD Disclosure.

Q2 2018 Presentation Slides

Presentation slides discussing IDEX Corporation’s quarterly operating results are attached to this Current Report on Form 8-K as Exhibit 99.2 and are incorporated herein by reference.

The Securities and Exchange Commission encourages companies to disclose forward-looking information so that investors can better understand the future prospects of a company and make informed investment decisions. This Current Report and the Exhibits hereto may contain “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 Current Report. 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 IDEX’s most recent annual report on Form 10-K 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 in this Current Report and the Exhibits hereto are only made as of the date of this Current Report, 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 herein.

The information in this Current Report furnished pursuant to Items 7.01 and 9.01 shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. This information shall not be incorporated by reference into any registration statement pursuant to the Securities Act of 1933, as amended. The furnishing of the information in this Current Report is not intended to, and does not, constitute a representation that such furnishing is required by Regulation FD or that the information this Current Report contains is material investor information that is not otherwise publicly available.





Item 9.01 – Financial Statements and Exhibits.

(a)
Exhibits

99.1
Press release dated July 24, 2018 announcing IDEX Corporation’s quarterly operating results

99.2
Presentation slides of IDEX Corporation’s quarterly operating results






SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
IDEX CORPORATION
 
 
 
 
By:
/s/  WILLIAM K. GROGAN

 
 
William K. Grogan
 
 
Senior Vice President and Chief Financial Officer
July 25, 2018
 
 






EXHBIT INDEX

Exhibit
Number
 
Description
 
 
 
 
 



Exhibit


https://cdn.kscope.io/03ea8c784fbfbd771779d7a9d5a2d6bd-idexlogowtaglinejul21.jpg                                        

For further information:         TRADED: NYSE (IEX)                            EX-99.1
Investor Contact:                
William K. Grogan                         
Senior Vice President and Chief Financial Officer                     
(847) 498-7070        

TUESDAY, JULY 24, 2018

IDEX REPORTS RECORD SECOND QUARTER RESULTS; RAISES FULL YEAR GUIDANCE;
Q2 SALES UP 11 PERCENT OVERALL AND 9 PERCENT ORGANICALLY;
Q2 REPORTED EPS WAS $1.38 WITH ADJUSTED EPS OF $1.40

LAKE FOREST, IL, JULY 24 - IDEX Corporation (NYSE: IEX) today announced its financial results for the three month period ended June 30, 2018.

Second Quarter 2018 Highlights
Orders were up 9 percent overall and 8 percent organically
Sales were up 11 percent overall and 9 percent organically
Reported operating margin was 23.3 percent with adjusted operating margin of 23.6 percent, up 180 bps
Reported EPS was $1.38 with adjusted EPS of $1.40, up 30 percent
Full year adjusted EPS guidance raised to $5.27 to $5.35

Second Quarter 2018

Orders of $639.5 million were up 9 percent compared with the prior year period (+8 percent organic, -1 percent divestiture and +2 percent foreign currency translation).

Sales of $634.4 million were up 11 percent compared with the prior year period (+9 percent organic and +2 percent foreign currency translation).
  
Gross margin of 45.3 percent was up 50 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 $147.8 million resulted in an operating margin of 23.3 percent. Excluding $2.0 million of restructuring expenses, adjusted operating income was $149.8 million with an adjusted operating margin of 23.6 percent, up 180 basis points from the prior year period adjusted operating margin. Adjusted operating income drove adjusted EBITDA of $169.4 million which was 27 percent of sales and covered interest expense by 15 times.

Provision for income taxes of $29.6 million in the second quarter of 2018 resulted in an effective tax rate (ETR) of 21.7 percent, which was lower than the prior year period ETR of 26.1 percent primarily due to the enactment of U.S. tax reform in 2017.

Net income was $107.1 million which resulted in EPS of $1.38. Excluding restructuring expenses, adjusted EPS of $1.40 increased 32 cents, or 30 percent, from prior year period adjusted EPS.

Cash from operations of $120.7 million led to free cash flow of $109.7 million, which was up 40 percent from the prior year period and 101 percent of adjusted net income. The increase in free cash flow was primarily due to higher earnings and lower income tax payments.

The Company repurchased 147 thousand shares of common stock for $20.5 million in the second quarter.





“Strength across the board led to record second quarter operating results as we again achieved quarterly all-time highs in orders, sales, operating income and EPS. We delivered strong organic order and sales growth of 8 percent and 9 percent, respectively. Organic revenue growth was strong in all three segments as FMT delivered 10 percent growth, while HST and FSDP both achieved 8 percent growth. Even with robust revenue growth, we still built $5 million of backlog during the quarter, led by organic order growth of 18 percent in FSDP and 7 percent in FMT. Adjusted operating margin increased 180 basis points with margin expansion across all three segments.

 
 
We continued our commitment to fund our most promising organic opportunities across the Company and our organic growth over the past several quarters has been outstanding. We have now delivered eight consecutive quarters of organic order growth and six consecutive quarters of organic sales growth. M&A remains a priority for the Company and our acquisition funnel is healthy. In June, we purchased the intellectual property assets of Phantom Controls, which will accelerate our water-flow management capabilities within our Fire Suppression businesses. Additionally, just yesterday, we completed the acquisition of Finger Lakes Instrumentation, which will fill an important strategic gap and be a fantastic complement to our existing IDEX Health & Science operations. Over the last several years, IDEX Health & Science has brought together innovative technology companies in fluidics, microfluidics, as well as optical illumination and detection to better serve the fast-growing needs of life science instrument developers. Finally, we distributed $33 million in dividends to shareholders and repurchased 147 thousand shares of common stock for approximately $20 million.

 
 
Based on our record first half operating results and continued strength across the portfolio, we are raising full year adjusted EPS guidance to $5.27 to $5.35, with third quarter EPS of $1.29 to $1.32. We are also increasing full year organic revenue growth expectations to approximately 7 percent, with 6 to 7 percent expected in the third quarter.”

 
 
 
Andrew K. Silvernail
 
Chairman and Chief Executive Officer

Second Quarter 2018 Segment Highlights

Fluid & Metering Technologies
Sales of $242.8 million reflected a 10 percent increase compared to the second quarter of 2017 (+10 percent organic, -2 percent divestiture and +2 percent foreign currency translation).
Operating income of $71.2 million resulted in an operating margin of 29.3 percent. Excluding $0.3 million of restructuring expenses, adjusted operating income was $71.5 million with an adjusted operating margin of 29.5 percent, a 240 basis point increase compared to the prior year period primarily due to higher volume and productivity initiatives.
EBITDA of $76.4 million resulted in an EBITDA margin of 31.5 percent. Excluding $0.3 million of restructuring expenses, adjusted EBITDA of $76.7 million resulted in an adjusted EBITDA margin of 31.6 percent, a 200 basis point increase compared to the prior year period.

Health & Science Technologies
Sales of $227.4 million reflected an 11 percent increase compared to the second quarter of 2017 (+8 percent organic, +1 percent acquisition and +2 percent foreign currency translation).
Operating income of $52.6 million resulted in an operating margin of 23.1 percent. Excluding $1.1 million of restructuring expenses, adjusted operating income was $53.7 million with an adjusted operating margin of 23.6 percent, a 100 basis point increase compared to the prior year period primarily due to higher volume and productivity initiatives.
EBITDA of $63.1 million resulted in an EBITDA margin of 27.8 percent. Excluding $1.1 million of restructuring expenses, adjusted EBITDA of $64.2 million resulted in an adjusted EBITDA margin of 28.3 percent, a 20 basis point increase compared to the prior year period.

Fire & Safety/Diversified Products
Sales of $164.3 million reflected an 11 percent increase compared to the second quarter of 2017 (+8 percent organic and +3 percent foreign currency translation).





Operating income of $45.9 million resulted in an operating margin of 27.9 percent. Excluding $0.3 million of restructuring expenses, adjusted operating income was $46.2 million with an adjusted operating margin of 28.1 percent, a 300 basis point increase compared to the prior year period primarily due to higher volume and productivity initiatives.
EBITDA of $49.5 million resulted in an EBITDA margin of 30.1 percent. Excluding $0.3 million of restructuring expenses, adjusted EBITDA of $49.8 million resulted in an adjusted EBITDA margin of 30.3 percent, a 310 basis point increase compared to the prior year period.

For the second quarter of 2018, Fluid & Metering Technologies contributed 38 percent of sales, 42 percent of operating income and 41 percent of EBITDA; Health & Science Technologies accounted for 36 percent of sales, 31 percent of operating income and 33 percent of EBITDA; and Fire & Safety/Diversified Products represented 26 percent of sales, 27 percent of operating income and 26 percent of EBITDA.

Corporate Costs
Corporate costs, excluding restructuring expenses, increased to $21.6 million in the second quarter of 2018 compared to $18.4 million in the second quarter of 2017, primarily driven by a $2.2 million stamp duty in Switzerland associated with the restructuring of intercompany loans as well as higher acquisition costs.

Acquisitions
In June 2018, the Company acquired the intellectual property assets of Phantom Controls, which serve to complement our existing businesses within the Fire & Safety/Diversified Products segment. The operational capabilities and innovative pump operations of Phantom Controls combined with the water-flow expertise within our existing fire businesses improve ground safety operations and also reduce operational complexity during mission critical response.

In July 2018, the Company acquired Finger Lakes Instrumentation, a technology leader in the design, development and production of high speed/sensitivity CCD and CMOS cameras and related automation for the astronomy and life science markets. Finger Lakes Instrumentation, with annual revenue of approximately $10 million, will operate within the Health & Science Technologies segment.

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 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.
Adjusted operating margin is calculated as adjusted operating income divided by net sales.
Adjusted net income is calculated as net income plus restructuring expenses, 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.
Free cash flow is calculated as cash flow from operating activities less capital expenditures.








Table 1: Reconciliations of the Change in Net Sales to Organic Net Sales
 
Three Months Ended 
 June 30, 2018
 
Six Months Ended 
 June 30, 2018
 
FMT
 
HST
 
FSDP
 
IDEX
 
FMT
 
HST
 
FSDP
 
IDEX
Change in net sales
10
 %
 
11
%
 
11
%
 
11
%
 
8
 %
 
11
%
 
13
%
 
11
%
 - Net impact from acquisitions/divestitures
(2
)%
 
1
%
 
%
 
%
 
(2
)%
 
1
%
 
%
 
%
 - Impact from FX
2
 %
 
2
%
 
3
%
 
2
%
 
3
 %
 
3
%
 
4
%
 
3
%
Change in organic net sales
10
 %
 
8
%
 
8
%
 
9
%
 
7
 %
 
7
%
 
9
%
 
8
%

Table 2: Reconciliations of Reported-to-Adjusted Operating Income and Margin (dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30,
 
2018
 
2017
 
FMT
 
HST
 
FSDP
 
Corporate
 
IDEX
 
FMT
 
HST
 
FSDP
 
Corporate
 
IDEX
Reported operating income (loss)
$
71,228

 
$
52,569

 
$
45,882

 
$
(21,848
)
 
$147,831
 
$
60,029

 
$
46,294

 
$
37,197

 
$
(18,387
)
 
$125,133
 + Restructuring expenses
343

 
1,123

 
267

 
255

 
1,988

 

 

 

 

 

Adjusted operating income (loss)
$
71,571

 
$
53,692

 
$
46,149

 
$
(21,593
)
 
$
149,819

 
$
60,029

 
$
46,294

 
$
37,197

 
$
(18,387
)
 
$
125,133

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales (eliminations)
$
242,800

 
$
227,403

 
$
164,300

 
$
(143
)
 
$
634,360

 
$
221,182

 
$
204,409

 
$
147,983

 
$
(208
)
 
$
573,366

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reported operating margin
29.3
%
 
23.1
%
 
27.9
%
 
n/m

 
23.3
%
 
27.1
%
 
22.6
%
 
25.1
%
 
n/m

 
21.8
%
Adjusted operating margin
29.5
%
 
23.6
%
 
28.1
%
 
n/m

 
23.6
%
 
27.1
%
 
22.6
%
 
25.1
%
 
n/m

 
21.8
%
 
Six Months Ended June 30,
 
2018
 
2017
 
FMT
 
HST
 
FSDP
 
Corporate
 
IDEX
 
FMT
 
HST
 
FSDP
 
Corporate
 
IDEX
Reported operating income (loss)
$
137,394

 
$
104,375

 
$
85,436

 
$
(42,691
)
 
$
284,514

 
$
117,842

 
$
88,532

 
$
69,823

 
$
(35,393
)
 
$
240,804

 + Restructuring expenses
486

 
2,182

 
367

 
595

 
3,630

 
1,566

 
3,028

 
73

 
130

 
4,797

Adjusted operating income (loss)
$
137,880

 
$
106,557

 
$
85,803

 
$
(42,096
)
 
$
288,144

 
$
119,408

 
$
91,560

 
$
69,896

 
$
(35,263
)
 
$
245,601

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales (eliminations)
$
475,133

 
$
448,478

 
$
323,473

 
$
(400
)
 
$
1,246,684

 
$
437,952

 
$
404,088

 
$
285,430

 
$
(552
)
 
$
1,126,918

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reported operating margin
28.9
%
 
23.3
%
 
26.4
%
 
n/m

 
22.8
%
 
26.9
%
 
21.9
%
 
24.5
%
 
n/m

 
21.4
%
Adjusted operating margin
29.0
%
 
23.8
%
 
26.5
%
 
n/m

 
23.1
%
 
27.3
%
 
22.7
%
 
24.5
%
 
n/m

 
21.8
%

Table 3: Reconciliations of Reported-to-Adjusted Net Income and EPS (in thousands, except EPS)

 
Three Months Ended 
 June 30,
 
Six Months Ended 
 June 30,
 
2018
 
2017
 
2018
 
2017
Reported net income
$
107,126

 
$
83,844

 
$
206,084

 
$
159,743

 + Restructuring expenses
1,988

 

 
3,630

 
4,797

 + Tax impact on restructuring expenses
(494
)
 

 
(873
)
 
(1,529
)
Adjusted net income
$
108,620

 
$
83,844

 
$
208,841

 
$
163,011






 
Three Months Ended 
 June 30,
 
Six Months Ended 
 June 30,
 
2018
 
2017
 
2018
 
2017
Reported diluted EPS
$
1.38

 
$
1.08

 
$
2.65

 
$
2.07

 + Restructuring expenses
0.03

 

 
0.05

 
0.06

 + Tax impact on restructuring expenses
(0.01
)
 

 
(0.01
)
 
(0.02
)
Adjusted diluted EPS
$
1.40

 
$
1.08

 
$
2.69

 
$
2.11

 
 
 
 
 
 
 
 
Diluted weighted average shares
77,704

 
77,320

 
77,722

 
77,107


Table 4: Reconciliations of EBITDA to Net Income (dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30,
 
2018
 
2017
 
FMT
 
HST
 
FSDP
 
Corporate
 
IDEX
 
FMT
 
HST
 
FSDP
 
Corporate
 
IDEX
Reported operating income (loss)
$
71,228

 
$
52,569

 
$
45,882

 
$
(21,848
)
 
$
147,831

 
$
60,029

 
$
46,294

 
$
37,197

 
$
(18,387
)
 
$
125,133

 - Other (income) expense - net
511

 
(463
)
 
(45
)
 
(53
)
 
(50
)
 
447

 
924

 
583

 
(1,582
)
 
372

 + Depreciation and amortization
5,707

 
10,090

 
3,597

 
176

 
19,570

 
5,987

 
11,994

 
3,652

 
201

 
21,834

EBITDA
76,424

 
63,122

 
49,524

 
(21,619
)
 
167,451

 
65,569

 
57,364

 
40,266

 
(16,604
)
 
146,595

 - Interest expense
 
 
 
 
 
 
 
 
11,140

 
 
 
 
 
 
 
 
 
11,304

 - Provision for income taxes
 
 
 
 
 
 
 
 
29,615

 
 
 
 
 
 
 
 
 
29,613

 - Depreciation and amortization
 
 
 
 
 
 
 
 
19,570

 
 
 
 
 
 
 
 
 
21,834

Reported net income
 
 
 
 
 
 
 
 
$
107,126

 
 
 
 
 
 
 
 
 
$
83,844

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales (eliminations)
$
242,800

 
$
227,403

 
$
164,300

 
$
(143
)
 
$
634,360

 
$
221,182

 
$
204,409

 
$
147,983

 
$
(208
)
 
$
573,366

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reported operating margin
29.3
%
 
23.1
%
 
27.9
%
 
n/m

 
23.3
%
 
27.1
%
 
22.6
%
 
25.1
%
 
n/m

 
21.8
%
EBITDA margin
31.5
%
 
27.8
%
 
30.1
%
 
n/m

 
26.4
%
 
29.6
%
 
28.1
%
 
27.2
%
 
n/m

 
25.6
%
 
Six Months Ended June 30,
 
2018
 
2017
 
FMT
 
HST
 
FSDP
 
Corporate
 
IDEX
 
FMT
 
HST
 
FSDP
 
Corporate
 
IDEX
Reported operating income (loss)
$
137,394

 
$
104,375

 
$
85,436

 
$
(42,691
)
 
$
284,514

 
$
117,842

 
$
88,532

 
$
69,823

 
$
(35,393
)
 
$
240,804

 - Other (income) expense - net
645

 
(1,060
)
 
(3,666
)
 
(418
)
 
(4,499
)
 
477

 
1,067

 
619

 
(2,099
)
 
64

 + Depreciation and amortization
11,401

 
21,479

 
7,371

 
373

 
40,624

 
11,631

 
23,258

 
7,229

 
408

 
42,526

EBITDA
148,150

 
126,914

 
96,473

 
(41,900
)
 
329,637

 
128,996

 
110,723

 
76,433

 
(32,886
)
 
283,266

 - Interest expense
 
 
 
 
 
 
 
 
22,140

 
 
 
 
 
 
 
 
 
22,856

 - Provision for income taxes
 
 
 
 
 
 
 
 
60,789

 
 
 
 
 
 
 
 
 
58,141

 - Depreciation and amortization
 
 
 
 
 
 
 
 
40,624

 
 
 
 
 
 
 
 
 
42,526

Reported net income
 
 
 
 
 
 
 
 
$
206,084

 
 
 
 
 
 
 
 
 
$
159,743

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales (eliminations)
$
475,133

 
$
448,478

 
$
323,473

 
$
(400
)
 
$
1,246,684

 
$
437,952

 
$
404,088

 
$
285,430

 
$
(552
)
 
$
1,126,918

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reported operating margin
28.9
%
 
23.3
%
 
26.4
%
 
n/m

 
22.8
%
 
26.9
%
 
21.9
%
 
24.5
%
 
n/m

 
21.4
%
EBITDA margin
31.2
%
 
28.3
%
 
29.8
%
 
n/m

 
26.4
%
 
29.5
%
 
27.4
%
 
26.8
%
 
n/m

 
25.1
%






Table 5: Reconciliations of EBITDA to Adjusted EBITDA (dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30,
 
2018
 
2017
 
FMT
 
HST
 
FSDP
 
Corporate
 
IDEX
 
FMT
 
HST
 
FSDP
 
Corporate
 
IDEX
EBITDA
$
76,424

 
$
63,122

 
$
49,524

 
$
(21,619
)
 
$
167,451

 
$
65,569

 
$
57,364

 
$
40,266

 
$
(16,604
)
 
$
146,595

 + Restructuring expenses
343

 
1,123

 
267

 
255

 
1,988

 

 

 

 

 

Adjusted EBITDA
$
76,767

 
$
64,245

 
$
49,791

 
$
(21,364
)
 
$
169,439

 
$
65,569

 
$
57,364

 
$
40,266

 
$
(16,604
)
 
$
146,595

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted EBITDA margin
31.6
%
 
28.3
%
 
30.3
%
 
n/m

 
26.7
%
 
29.6
%
 
28.1
%
 
27.2
%
 
n/m

 
25.6
%
 
Six Months Ended June 30,
 
2018
 
2017
 
FMT
 
HST
 
FSDP
 
Corporate
 
IDEX
 
FMT
 
HST
 
FSDP
 
Corporate
 
IDEX
EBITDA
$
148,150

 
$
126,914

 
$
96,473

 
$
(41,900
)
 
$
329,637

 
$
128,996

 
$
110,723

 
$
76,433

 
$
(32,886
)
 
$
283,266

 + Restructuring expenses
486

 
2,182

 
367

 
595

 
3,630

 
1,566

 
3,028

 
73

 
130

 
4,797

Adjusted EBITDA
$
148,636

 
$
129,096

 
$
96,840

 
$
(41,305
)
 
$
333,267

 
$
130,562

 
$
113,751

 
$
76,506

 
$
(32,756
)
 
$
288,063

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted EBITDA margin
31.3
%
 
28.8
%
 
29.9
%
 
n/m

 
26.7
%
 
29.8
%
 
28.2
%
 
26.8
%
 
n/m

 
25.6
%

Table 6: Reconciliations of Cash Flows from Operating Activities to Free Cash Flow (in thousands)
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
March 31,
 
June 30,
 
2018
 
2017
 
2018
 
2018
 
2017
Cash flows from operating activities
$
120,697

 
$
87,601

 
$
71,729

 
192,426

 
$
172,580

 - Capital expenditures
10,959

 
9,377

 
10,009

 
20,968

 
19,539

Free cash flow
$
109,738

 
$
78,224

 
$
61,720

 
$
171,458

 
$
153,041



Conference Call to be Broadcast over the Internet
IDEX will broadcast its second quarter earnings conference call over the Internet on Wednesday, July 25, 2018 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 #13675420.






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, 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 is a global fluidics leader serving high growth specialized markets. We are best known for our expertise in highly engineered fluidics systems and components, as well as for our expertise in fire and safety products including the Jaws of Life® family of rescue and recovery tools. Our products touch lives every day. Whether it’s a life-saving rescue operation, dispensing fresh juice to a first grader or fueling aircraft, IDEX is a leader in creating enabling technology used in many of the most common everyday activities. For more information, please visit www.idexcorp.com. IDEX shares are traded on the New York Stock Exchange under the symbol “IEX”.
 
(Financial reports follow)





IDEX CORPORATION
Condensed Consolidated Statements of Operations
(in thousands except per share amounts)
(unaudited)
 
Three Months Ended 
 June 30,
 
Six Months Ended 
 June 30,
 
2018
 
2017
 
2018
 
2017
Net sales
$
634,360

 
$
573,366

 
$
1,246,684

 
$
1,126,918

Cost of sales
346,993

 
316,441

 
682,665

 
619,052

Gross profit
287,367

 
256,925

 
564,019

 
507,866

Selling, general and administrative expenses
137,548

 
131,792

 
275,875

 
262,265

Restructuring expenses
1,988

 

 
3,630

 
4,797

Operating income
147,831

 
125,133

 
284,514

 
240,804

Other (income) expense - net
(50
)
 
372

 
(4,499
)
 
64

Interest expense
11,140

 
11,304

 
22,140

 
22,856

Income before income taxes
136,741

 
113,457

 
266,873

 
217,884

Provision for income taxes
29,615

 
29,613

 
60,789

 
58,141

Net income
$
107,126

 
$
83,844

 
$
206,084

 
$
159,743

 
 
 
 
 
 
 
 
Earnings per Common Share:
 
 
 
 
 
 
 
Basic earnings per common share
$
1.40

 
$
1.10

 
$
2.69

 
$
2.09

Diluted earnings per common share
$
1.38

 
$
1.08

 
$
2.65

 
$
2.07

 
 
 
 
 
 
 
 
Share Data:
 
 
 
 
 
 
 
Basic weighted average common shares outstanding
76,539

 
76,220

 
76,479

 
76,167

Diluted weighted average common shares outstanding
77,704

 
77,320

 
77,722

 
77,107







IDEX CORPORATION
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)

 
June 30, 
 2018
 
December 31, 
 2017
Assets
 
 
 
Current assets
 
 
 
Cash and cash equivalents
$
458,751

 
$
375,950

Receivables - net
329,692

 
294,166

Inventories
283,854

 
259,724

Other current assets
41,448

 
74,203

Total current assets
1,113,745

 
1,004,043

Property, plant and equipment - net
267,828

 
258,350

Goodwill and intangible assets
2,083,659

 
2,118,904

Other noncurrent assets
18,226

 
18,331

Total assets
$
3,483,458

 
$
3,399,628

 
 
 
 
Liabilities and shareholders' equity
 
 
 
Current liabilities
 
 
 
Trade accounts payable
$
150,532

 
$
147,067

Accrued expenses
162,962

 
184,705

Short-term borrowings
496

 
258

Dividends payable
33,040

 
28,945

Total current liabilities
347,030

 
360,975

Long-term borrowings
858,661

 
858,788

Other noncurrent liabilities
288,616

 
293,323

Total liabilities
1,494,307

 
1,513,086

Shareholders' equity
1,989,151

 
1,886,542

Total liabilities and shareholders' equity
$
3,483,458

 
$
3,399,628







IDEX CORPORATION
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
 
Six Months Ended June 30,
 
2018
 
2017
Cash flows from operating activities
 
 
 
Net income
$
206,084

 
$
159,743

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation and amortization
19,957

 
18,633

Amortization of intangible assets
20,667

 
23,893

Amortization of debt issuance expenses
664

 
659

Share-based compensation expense
13,252

 
12,398

Deferred income taxes
(3,021
)
 
2,414

Non-cash interest expense associated with forward starting swaps
3,259

 
3,323

Changes in (net of the effect from acquisitions):
 
 
 
Receivables
(40,044
)
 
(31,110
)
Inventories
(28,011
)
 
(4,796
)
Other current assets
17,798

 
(8,446
)
Trade accounts payable
5,432

 
6,469

Accrued expenses
(21,131
)
 
(9,799
)
Other - net
(2,480
)
 
(801
)
Net cash flows provided by operating activities
192,426

 
172,580

Cash flows from investing activities
 
 
 
Purchases of property, plant and equipment
(20,968
)
 
(19,539
)
Purchase of intellectual property
(4,000
)
 

Other - net
(861
)
 
96

Net cash flows used in investing activities
(25,829
)
 
(19,443
)
Cash flows from financing activities
 
 
 
Borrowings under revolving credit facilities

 
33,000

Payments under revolving credit facilities

 
(166,297
)
Dividends paid
(61,916
)
 
(54,572
)
Proceeds from stock option exercises
13,616

 
12,984

Purchases of common stock
(19,499
)
 
(9,799
)
Shares surrendered for tax withholding
(10,750
)
 
(5,814
)
Settlement of foreign exchange contracts
6,593

 
4,406

Net cash flows used in financing activities
(71,956
)
 
(186,092
)
Effect of exchange rate changes on cash and cash equivalents
(11,840
)
 
15,352

Net increase (decrease) in cash
82,801

 
(17,603
)
Cash and cash equivalents at beginning of year
375,950

 
235,964

Cash and cash equivalents at end of period
$
458,751

 
$
218,361







IDEX CORPORATION
Company and Segment Financial Information - Reported
(dollars in thousands)
(unaudited)
 
 
 Three Months Ended
 June 30, (a)
 
 Six Months Ended
 June 30, (a)
 
 
2018
 
2017
 
2018
 
2017
 
Fluid & Metering Technologies
 
 
 
 
 
 
 
 
Net sales
$
242,800

 
$
221,182

 
$
475,133

 
$
437,952

 
Operating income (b)
71,228

 
60,029

 
137,394

 
117,842

 
Operating margin
29.3
%
 
27.1
%
 
28.9
%
 
26.9
%
 
EBITDA
$
76,424

 
$
65,569

 
$
148,150

 
$
128,996

 
EBITDA margin
31.5
%
 
29.6
%
 
31.2
%
 
29.5
%
 
Depreciation and amortization
$
5,707

 
$
5,987

 
$
11,401

 
$
11,631

 
Capital expenditures
3,981

 
2,829

 
8,655

 
8,215

 
 
 
 
 
 
 
 
 
 
Health & Science Technologies
 
 
 
 
 
 
 
 
Net sales
$
227,403

 
$
204,409

 
$
448,478

 
$
404,088

 
Operating income (b)
52,569

 
46,294

 
104,375

 
88,532

 
Operating margin
23.1
%
 
22.6
%
 
23.3
%
 
21.9
%
 
EBITDA
$
63,122

 
$
57,364

 
$
126,914

 
$
110,723

 
EBITDA margin
27.8
%
 
28.1
%
 
28.3
%
 
27.4
%
 
Depreciation and amortization
$
10,090

 
$
11,994

 
$
21,479

 
$
23,258

 
Capital expenditures
5,351

 
4,901

 
8,682

 
8,474

 
 
 
 
 
 
 
 
 
 
Fire & Safety/Diversified Products
 
 
 
 
 
 
 
 
Net sales
$
164,300

 
$
147,983

 
$
323,473

 
$
285,430

 
Operating income (b)
45,882

 
37,197

 
85,436

 
69,823

 
Operating margin
27.9
%
 
25.1
%
 
26.4
%
 
24.5
%
 
EBITDA
$
49,524

 
$
40,266

 
$
96,473

 
$
76,433

 
EBITDA margin
30.1
%
 
27.2
%
 
29.8
%
 
26.8
%
 
Depreciation and amortization
$
3,597

 
$
3,652

 
$
7,371

 
$
7,229

 
Capital expenditures
1,627

 
1,477

 
3,445

 
2,672

 
 
 
 
 
 
 
 
 
 
Corporate Office and Eliminations
 
 
 
 
 
 
 
 
Intersegment sales eliminations
$
(143
)
 
$
(208
)
 
$
(400
)
 
$
(552
)
 
Operating income (b)
(21,848
)
 
(18,387
)
 
(42,691
)
 
(35,393
)
 
EBITDA
(21,619
)
 
(16,604
)
 
(41,900
)
 
(32,886
)
 
Depreciation and amortization
176

 
201

 
373

 
408

 
Capital expenditures

 
170

 
186

 
178

 
 
 
 
 
 
 
 
 
 
Company
 
 
 
 
 
 
 
 
Net sales
$
634,360

 
$
573,366

 
$
1,246,684

 
$
1,126,918

 
Operating income
147,831

 
125,133

 
284,514

 
240,804

 
Operating margin
23.3
%
 
21.8
%
 
22.8
%
 
21.4
%
 
EBITDA
$
167,451

 
$
146,595

 
$
329,637

 
$
283,266

 
EBITDA margin
26.4
%
 
25.6
%
 
26.4
%
 
25.1
%
 
Depreciation and amortization (c)
$
19,570

 
$
21,834

 
$
40,624

 
$
42,526

 
Capital expenditures
10,959

 
9,377

 
20,968

 
19,539

 
 
 
 
 
 
 
 
 





IDEX CORPORATION
Company and Segment Financial Information - Adjusted
(dollars in thousands)
(unaudited)
 
 
Three Months Ended
June 30, (a)
 
Six Months Ended
June 30, (a)
 
 
2018
 
2017 
 
2018
 
2017 
 
Fluid & Metering Technologies
 
 
 
 
 
 
 
 
Net sales
$
242,800

 
$
221,182

 
$
475,133

 
$
437,952

 
Adjusted operating income (b)
71,571

 
60,029

 
137,880

 
119,408

 
Adjusted operating margin
29.5
%
 
27.1
%
 
29.0
%
 
27.3
%
 
Adjusted EBITDA
$
76,767

 
$
65,569

 
$
148,636

 
$
130,562

 
Adjusted EBITDA margin
31.6
%
 
29.6
%
 
31.3
%
 
29.8
%
 
Depreciation and amortization
$
5,707

 
$
5,987

 
$
11,401

 
$
11,631

 
Capital expenditures
3,981

 
2,829

 
8,655

 
8,215

 
 
 
 
 
 
 
 
 
 
Health & Science Technologies
 
 
 
 
 
 
 
 
Net sales
$
227,403

 
$
204,409

 
$
448,478

 
$
404,088

 
Adjusted operating income (b)
53,692

 
46,294

 
106,557

 
91,560

 
Adjusted operating margin
23.6
%
 
22.6
%
 
23.8
%
 
22.7
%
 
Adjusted EBITDA
$
64,245

 
$
57,364

 
$
129,096

 
$
113,751

 
Adjusted EBITDA margin
28.3
%
 
28.1
%
 
28.8
%
 
28.2
%
 
Depreciation and amortization
$
10,090

 
$
11,994

 
$
21,479

 
$
23,258

 
Capital expenditures
5,351

 
4,901

 
8,682

 
8,474

 
 
 
 
 
 
 
 
 
 
Fire & Safety/Diversified Products
 
 
 
 
 
 
 
 
Net sales
$
164,300

 
$
147,983

 
$
323,473

 
$
285,430

 
Adjusted operating income (b)
46,149

 
37,197

 
85,803

 
69,896

 
Adjusted operating margin
28.1
%
 
25.1
%
 
26.5
%
 
24.5
%
 
Adjusted EBITDA
$
49,791

 
$
40,266

 
$
96,840

 
$
76,506

 
Adjusted EBITDA margin
30.3
%
 
27.2
%
 
29.9
%
 
26.8
%
 
Depreciation and amortization
$
3,597

 
$
3,652

 
$
7,371

 
$
7,229

 
Capital expenditures
1,627

 
1,477

 
3,445

 
2,672

 
 
 
 
 
 
 
 
 
 
Corporate Office and Eliminations
 
 
 
 
 
 
 
 
Intersegment sales eliminations
$
(143
)
 
$
(208
)
 
$
(400
)
 
$
(552
)
 
Adjusted operating income (b)
(21,593
)
 
(18,387
)
 
(42,096
)
 
(35,263
)
 
Adjusted EBITDA
(21,364
)
 
(16,604
)
 
(41,305
)
 
(32,756
)
 
Depreciation and amortization
176

 
201

 
373

 
408

 
Capital expenditures

 
170

 
186

 
178

 
 
 
 
 
 
 
 
 
 
Company
 
 
 
 
 
 
 
 
Net sales
$
634,360

 
$
573,366

 
$
1,246,684

 
$
1,126,918

 
Adjusted operating income 
149,819

 
125,133

 
288,144

 
245,601

 
Adjusted operating margin
23.6
%
 
21.8
%
 
23.1
%
 
21.8
%
 
Adjusted EBITDA
$
169,439

 
$
146,595

 
$
333,267

 
$
288,063

 
Adjusted EBITDA margin
26.7
%
 
25.6
%
 
26.7
%
 
25.6
%
 
Depreciation and amortization (c)
$
19,570

 
$
21,834

 
$
40,624

 
$
42,526

 
Capital expenditures
10,959

 
9,377

 
20,968

 
19,539

 
 
 
 
 
 
 
 
 
(a)
Three and six month data include the results of thinXXS (December 2017) in the Health & Science Technologies segment from the date of acquisition and the results of Faure Herman (October 2017) in the Fluid & Metering Technologies segment through the date of disposition.
(b)
Segment operating income excludes unallocated corporate operating expenses which are included in Corporate Office and Eliminations.
(c)
Depreciation and amortization excludes amortization of debt issuance costs.



q218slides
Second Quarter 2018 Earnings July 25, 2018 IDEX Proprietary & Confidential


 
AGENDA • IDEX’s Overview and Outlook • Q2 Financial Performance • Segment Performance • Fluid & Metering Technologies • Health & Science Technologies • Fire & Safety / Diversified Products • 2018 Guidance Summary • Q&A Brand names shown in this presentation are registered trademarks of IDEX Corporation and/or its subsidiaries IDEX Proprietary & Confidential 1


 
Replay Information • Dial toll–free: 877.660.6853 • International: 201.612.7415 • Conference ID: #13675420 • Log on to: www.idexcorp.com Brand names shown in this presentation are registered trademarks of IDEX Corporation and/or its subsidiaries IDEX Proprietary & Confidential 2


 
Cautionary Statement Under the Private Securities Litigation Reform Act; Non-GAAP Measures This presentation and discussion will include 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 in this presentation and discussion are only made as of today’s date, 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 in this presentation and discussion. This presentation contains non-GAAP financial information. Reconciliations of non-GAAP measures are included either in this presentation or our earnings release for the three-month period ending June 30, 2018, which is available on our website. Brand names shown in this presentation are registered trademarks of IDEX Corporation and/or its subsidiaries IDEX Proprietary & Confidential 3


 
IDEX Q2 Financial Performance (Dollars in millions, excl. EPS) Sales Adjusted EPS* 30% increase Organic: 9% increase $1.40 $1.08 $634 $573 $1.50 $700 $1.00 $500 $0.50 $300 $0.00 Q2 Q2 2017 2018 2017 2018 Adjusted Operating Margin* Free Cash Flow 180 bps increase 40% increase 23.6% $110 21.8% 24.0% $120 $78 22.0% $90 20.0% $60 18.0% $30 Q2 Q2 2017 2018 2017 2018 * Operating margin and EPS data adjusted for restructuring expenses ($2.0M in Q2 2018). Organic sales growth of 9 percent drove a 30 percent increase in EPS Brand names shown in this presentation are registered trademarks of IDEX Corporation and/or its subsidiaries IDEX Proprietary & Confidential 4


 
Fluid & Metering Technologies (Dollars in millions) Orders Sales Adjusted Operating Margin* Organic: 7% increase Organic: 10% increase 240 bps increase $243 $232 $246 $221 29.5% $300 $300 30.0% 27.1% $200 $200 28.0% $100 $100 26.0% $0 $0 24.0% Q2 Q2 Q2 2017 2018 2017 2018 2017 2018 Q2 Sales Mix: Organic 10% Q2 Highlights:  Industrial market continues to show strength across all markets Divestiture -2%  Ag market continues to be positive with an optimistic outlook for remainder of year FX 2%  Water remains solid as new products drove sales and margin growth  Truck builds within Energy remain strong and LPG project activity has Reported Sales 10% increased * Operating margin data adjusted for restructuring expenses ($0.3M in Q2 2018). Organic orders up 7 percent with double-digit organic sales growth Brand names shown in this presentation are registered trademarks of IDEX Corporation and/or its subsidiaries IDEX Proprietary & Confidential 5


 
Health & Science Technologies (Dollars in millions) Orders Sales Adjusted Operating Margin* Organic: 2% increase Organic: 8% increase 100 bps increase 23.6% $227 $212 $222 22.6% $204 $250 $250 24.0% $200 $200 22.0% $150 $150 20.0% $100 $100 18.0% Q2 Q2 Q2 2017 2018 2017 2018 2017 2018 Q2 Sales Mix: Organic 8% Q2 Highlights:  IVD and Bio market remains solid within Scientific Fluidics and Optics Acquisition 1%  Sealing Solutions had double-digit growth led by semiconductor and FX 2% transportation market demand  MPT had a very strong quarter executing on their project backlog Reported Sales 11%  Finger Lakes acquisition will continue the expansion of our Health & Science businesses * Operating margin data adjusted for restructuring expenses ($1.1M in Q2 2018). Strong revenue growth across all businesses drove margin expansion of 100 bps Brand names shown in this presentation are registered trademarks of IDEX Corporation and/or its subsidiaries IDEX Proprietary & Confidential 6


 
Fire & Safety / Diversified Products (Dollars in millions) Orders Sales Adjusted Operating Margin* Organic: 18% increase Organic: 8% increase 300 bps increase 28.1% $172 $164 $200 $148 30.0% $200 $142 25.1% $150 $150 25.0% $100 $100 20.0% $50 $50 Q2 Q2 Q2 2017 2018 2017 2018 2017 2018 Q2 Sales Mix: Organic 8% Q2 Highlights:  Dispensing continues its strong performance providing double-digit revenue FX 3% growth and op margin expansion  Rescue tool business remains solid with emerging market project activity Reported Sales 11%  Fire’s OEM & Muni businesses remain steady globally  Band-IT continues to over-deliver with NPD and new project wins * Operating margin data adjusted for restructuring expenses ($0.3M in Q2 2018). Strong organic order and sales growth drove a 300 bps op margin improvement Brand names shown in this presentation are registered trademarks of IDEX Corporation and/or its subsidiaries IDEX Proprietary & Confidential 7


 
2018 Guidance Summary Q3 2018 – EPS estimate range: $1.29 – $1.32 – Organic revenue growth: 6 – 7% – Operating margin: ~ 23.0% – Tax rate: ~ 22.5% – FX impact: ~ 1.0% topline headwind based on June 30, 2018 FX rates – Corporate costs: ~ $20 million FY 2018 – EPS estimate range: $5.27 – $5.35 – Organic revenue growth: ~ 7% – Operating margin: 22.5 – 23.0% – FX impact: ~ 1.0% topline tailwind based on June 30, 2018 FX rates – Other modeling items: • Tax rate: ~ 23% • Cap Ex: ~ $45M • Free cash flow will be approximately 110% of net income • Corporate costs: $76 – $80 million • EPS estimate excludes all future acquisitions and associated costs and any future restructuring expenses Brand names shown in this presentation are registered trademarks of IDEX Corporation and/or its subsidiaries IDEX Proprietary & Confidential 8