First Quarter 2023
Highlights
(All comparisons against the first quarter of 2022 unless
otherwise noted)
- Record sales of $845 million, up 13% overall and 6%
organically
- Reported EPS of $1.84, up 1% and adjusted EPS of $2.09, up
7%
- Strong operating cash flow of $148 million, up 86%; free cash
flow of $121 million, up 91%
- Reached agreement in April 2023 to purchase Iridian Spectral
Technologies
IDEX Corporation (NYSE: IEX) today announced its financial
results for the three month period ended March 31, 2023.
“IDEX delivered strong results in the first quarter,” said Eric
D. Ashleman, IDEX Corporation Chief Executive Officer and
President. “We achieved record sales with positive organic growth
across all three of our segments, earnings per share above the high
end of our guidance, and strong free cash flow. Strength in our
Fluid & Metering Technologies and our Fire & Safety /
Diversified Products businesses provided near-term mitigation
against the impacts of the anticipated inventory correction
experienced within our Health & Science Technologies
businesses.”
“As we progressed through the quarter, customers across our
Health & Science Technologies segment indicated a larger, more
prolonged inventory correction than previously communicated. End
market demand is still positive, but we believe our customers have
sufficient inventory of our critical components to support that
demand. With the revised 2023 revenue growth outlook for Health
& Science Technologies now negative, we have proactively
executed targeted cost reductions to offset a portion of this
pressure. Based on our current outlook, we are lowering our full
year 2023 adjusted EPS guidance to $8.25 to $8.55 per share.”
“The markets served by our Health & Science Technologies
businesses have strong fundamental secular growth trends. We remain
well-positioned, solving difficult problems with customers on the
cutting edge of new technologies, and our organic and inorganic
pipeline supports our aspirations to deliver outstanding business
performance.” Ashleman continued, “We continue to execute on our
strong M&A strategy and are excited to announce our intent to
acquire Iridian Spectral Technologies for 150 million Canadian
dollars. This highly strategic asset brings capabilities that
expand our optical filters portfolio serving the space, life
science and telecommunications markets. We expect this transaction
to close in the second quarter, subject to customary closing
conditions.”
2023 Outlook
Full year 2023 organic sales growth is projected to be 0 to 3
percent over the prior year period, with GAAP EPS of $7.30 to $7.60
(adjusted EPS of $8.25 to $8.55).
Second quarter 2023 organic sales growth is projected to be
approximately 3 percent, with GAAP EPS of $1.86 to $1.89 (adjusted
EPS of $2.10 to $2.13).
Consolidated Results
Three Months Ended March
31,
(Dollars in millions, except per share
amounts)
2023
2022
Increase (Decrease)
Net sales
$
845.4
$
751.1
$
94.3
Organic net sales growth*
6
%
Net income attributable to IDEX
139.8
140.0
(0.2
)
Adjusted net income attributable to
IDEX*
158.6
149.8
8.8
Diluted EPS attributable to
IDEX
1.84
1.83
0.01
Adjusted diluted EPS attributable to
IDEX*
2.09
1.96
0.13
Adjusted EBITDA*
229.8
214.7
15.1
Cash flows from operating
activities
147.9
79.7
68.2
Free cash flow*
121.3
63.6
57.7
Gross margin
45.2
%
45.6
%
(40) bps
Net income margin
16.5
%
18.6
%
(210) bps
Adjusted EBITDA margin*
27.2
%
28.6
%
(140) 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.
Orders
First quarter 2023 orders of $825.5 million reflected a 4
percent decrease compared with the prior year period (-10 percent
organic, +8 percent acquisitions/divestitures and -2 percent
foreign currency translation).
Net Sales
First quarter 2023 sales of $845.4 million reflected a 13
percent increase compared with the prior year period (+6 percent
organic, +9 percent acquisitions/divestitures and -2 percent
foreign currency translation).
Gross Margin
First quarter 2023 gross margin of 45.2 percent decreased 40
basis points compared with the prior year period primarily due to
unfavorable mix largely centered in HST, the dilutive impact of
acquisitions and employee-related inflation, partially offset by
favorable productivity and price/cost.
Net Income and Earnings per Share
Attributable to IDEX
First quarter 2023 net income attributable to IDEX of $139.8
million was flat compared with the prior year period and resulted
in EPS attributable to IDEX of $1.84 per share, an increase of 1
cent per share, or 1 percent, from the prior year period. The first
quarter 2023 effective tax rate of 22.2 percent was relatively
consistent compared with the first quarter 2022 effective tax rate
of 22.4 percent. Adjusted EPS attributable to IDEX, which reflects
the impact of non-GAAP adjustments, net of related taxes, was $2.09
per share, an increase of 13 cents per share, or 7 percent, from
the prior year period.
Net Income Margin and Adjusted EBITDA
Margin
First quarter 2023 net income margin of 16.5 percent decreased
210 basis points compared with the prior year period. The decrease
was driven by higher amortization on new acquisitions, increases in
employee-related costs, which includes an additional $5.8 million
of accelerated stock compensation costs for retiree eligible
participants as compared with the prior year period, higher
discretionary spending and unfavorable mix, partially offset by
strong productivity and price/cost as well as higher volume
leverage. First quarter 2023 Adjusted EBITDA margin of 27.2
percent, which reflects the impact of non-GAAP adjustments,
decreased 140 basis points compared with the prior year period.
Cash Flow
First quarter 2023 cash from operations of $147.9 million was up
86% primarily due to lower investments in working capital in 2023
as compared with 2022. First quarter 2023 free cash flow included
higher capital expenditures and was $121.3 million, up 91% compared
with the prior year period and constituted 76 percent of adjusted
net income attributable to IDEX.
Segment Highlights
Fluid & Metering Technologies ("FMT")
Three Months Ended March
31,
(Dollars in millions)
2023
2022
Increase (Decrease)
Net sales
$
321.8
$
272.0
$
49.8
Adjusted EBITDA
106.2
88.4
17.8
Adjusted EBITDA margin
33.0
%
32.5
%
50 bps
- First quarter 2023 sales of $321.8 million reflected an 18
percent increase compared with the first quarter of 2022 (+9
percent organic, +11 percent acquisitions/divestitures and -2
percent foreign currency translation).
- First quarter 2023 Adjusted EBITDA margin was 33.0%, up 50
basis points compared with the prior year period primarily due to
strong price/cost and productivity as well as higher volume
leverage, partially offset by increases in employee-related costs
and discretionary spending and the dilutive impact of
acquisitions.
Health & Science Technologies ("HST")
Three Months Ended March
31,
(Dollars in millions)
2023
2022
Increase (Decrease)
Net sales
$
351.0
$
315.2
$
35.8
Adjusted EBITDA
100.7
99.8
0.9
Adjusted EBITDA margin
28.7
%
31.7
%
(300) bps
- First quarter 2023 sales of $351.0 million reflected an 11
percent increase compared with the first quarter of 2022 (+3
percent organic, +11 percent acquisitions and -3 percent foreign
currency translation).
- First quarter 2023 Adjusted EBITDA margin was 28.7%, down 300
basis points compared with the prior year period primarily due to
increases in employee-related costs, unfavorable mix and lower
volume leverage, partially offset by favorable price/cost and the
accretive impact of the Muon acquisition.
Fire & Safety/Diversified Products ("FSDP")
Three Months Ended March
31,
(Dollars in millions)
2023
2022
Increase (Decrease)
Net sales
$
174.4
$
164.7
$
9.7
Adjusted EBITDA
49.7
44.4
5.3
Adjusted EBITDA margin
28.5
%
26.9
%
160 bps
- First quarter 2023 sales of $174.4 million reflected a 6
percent increase compared with the first quarter of 2022 (+9
percent organic and -3 percent foreign currency translation).
- First quarter 2023 Adjusted EBITDA margin was 28.5%, up 160
basis points compared with the prior year period primarily due to
strong productivity and price/cost as well as higher volume
leverage, partially offset by increases in discretionary spending
and employee-related costs and unfavorable mix.
Corporate Costs
Corporate costs included in consolidated Adjusted EBITDA were
$26.8 million in the first quarter of 2023, an increase of $8.9
million compared with the prior year period due to increases in
employee-related costs, which includes an additional $5.1 million
of accelerated stock compensation costs for retiree eligible
participants as compared with the prior year period, and higher
discretionary spending.
Conference Call to be Broadcast over
the Internet
IDEX will broadcast its first quarter earnings conference call
over the Internet on Thursday, April 27, 2023 at 9:30 a.m. CT.
Chief Executive Officer and President Eric Ashleman 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 #13734462.
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 second quarter 2023 and full year 2023
outlook including expected organic sales growth, expected earnings
per share and adjusted earnings per share, and the assumptions
underlying these expectations, anticipated future acquisition
behavior, availability of cash and financing alternatives, the
completion of pending transactions (including the acquisition of
Iridian Spectral Technologies) and the anticipated benefits of the
Company’s recent acquisitions, including the acquisitions of
Nexsight, LLC and its businesses Envirosight, WinCan, MyTana and
Pipeline Renewal Technologies (“Nexsight”), KZ CO. ("KZValve") and
Muon B.V. and its subsidiaries ("Muon Group"), 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 and adverse developments
affecting the financial services industry; pricing pressures,
including inflation and rising interest rates, and other
competitive factors and levels of capital spending in certain
industries, all of which could have a material impact on order
rates and the Company’s results; the impact of health epidemics and
pandemics and terrorist attacks and wars, including the ongoing
conflict between Russia and Ukraine, which could have an adverse
impact on the Company's business by creating disruptions in the
global supply chain and by potentially having an adverse impact on
the global economy; the Company’s 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;
developments with respect to trade policy and tariffs; interest
rates; capacity utilization and the effect this has on costs; labor
markets; supply chain backlogs, including risks affecting component
availability, labor inefficiencies and freight logistical
challenges; 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) makes thousands of products and
mission-critical components that improve everyday life all around
you. If you enjoy chocolate, it quite possibly passed through a
Viking® internal gear pump at the candy factory. If you were ever
in a car accident, emergency workers may have used the Hurst Jaws
of Life® rescue tool to save your life. If your doctor ordered a
DNA test to predict your risk of disease or determine a course of
treatment, the lab may have used equipment containing components
made by IDEX Health & Science. Founded in 1988 with three
small, entrepreneurial manufacturing companies, we’re proud to say
that we now call over 50 diverse businesses around the world part
of the IDEX family. With more than 8,500 employees and
manufacturing operations in more than 20 countries, IDEX is a
high-performing, global company with over $3.1 billion in annual
sales, committed to making trusted solutions that improve lives.
IDEX shares are traded on the New York 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.
IDEX CORPORATION
Condensed Consolidated Statements
of Income
(in millions, except per share
amounts)
(unaudited)
Three Months Ended March
31,
2023
2022
Net sales
$
845.4
$
751.1
Cost of sales
462.9
408.6
Gross profit
382.5
342.5
Selling, general and administrative
expenses
189.7
154.3
Restructuring expenses and asset
impairments
0.5
0.6
Operating income
192.3
187.6
Other (income) expense - net
(0.6
)
(2.3
)
Interest expense
13.1
9.5
Income before income taxes
179.8
180.4
Provision for income taxes
40.0
40.5
Net income
139.8
139.9
Net loss attributable to noncontrolling
interest
—
0.1
Net income attributable to IDEX
$
139.8
$
140.0
Earnings per Common Share:
Basic earnings per common share
attributable to IDEX
$
1.85
$
1.84
Diluted earnings per common share
attributable to IDEX
$
1.84
$
1.83
Share Data:
Basic weighted average common shares
outstanding
75.6
76.1
Diluted weighted average common shares
outstanding
75.9
76.4
IDEX CORPORATION
Condensed Consolidated Balance
Sheets
(in millions)
(unaudited)
March 31, 2023
December 31, 2022
Assets
Current assets
Cash and cash equivalents
$
510.7
$
430.2
Receivables - net
446.5
442.8
Inventories
497.6
470.9
Other current assets
69.7
55.4
Total current assets
1,524.5
1,399.3
Property, plant and equipment -
net
397.0
382.1
Goodwill and intangible assets
3,591.4
3,585.9
Other noncurrent assets
145.1
144.6
Total assets
$
5,658.0
$
5,511.9
Liabilities and equity
Current liabilities
Trade accounts payable
$
216.0
$
208.9
Accrued expenses
275.9
289.1
Dividends payable
—
45.6
Total current liabilities
491.9
543.6
Long-term borrowings
1,470.7
1,468.7
Other noncurrent liabilities
465.9
460.0
Total liabilities
2,428.5
2,472.3
Shareholders' equity
3,229.2
3,039.3
Noncontrolling interest
0.3
0.3
Total equity
3,229.5
3,039.6
Total liabilities and equity
$
5,658.0
$
5,511.9
IDEX CORPORATION
Condensed Consolidated Statements
of Cash Flows
(in millions)
(unaudited)
Three Months Ended March
31,
2023
2022
Cash flows from operating
activities
Net income
$
139.8
$
139.9
Adjustments to reconcile net income to
net cash provided by operating activities:
Gains on sales of assets
(0.2
)
(2.7
)
Depreciation
12.8
12.2
Amortization of intangible
assets
23.6
15.3
Amortization of debt issuance
expenses
0.4
0.4
Share-based compensation
expense
12.8
6.6
Deferred income taxes
(0.2
)
1.0
Changes in (net of the effect from
acquisitions and foreign exchange):
Receivables
(0.7
)
(49.0
)
Inventories
(23.3
)
(50.2
)
Other current assets
(11.1
)
(12.7
)
Trade accounts payable
7.6
28.1
Deferred revenue
10.2
6.4
Accrued expenses
(24.9
)
(16.3
)
Other - net
1.1
0.7
Net cash flows provided by operating
activities
147.9
79.7
Cash flows from investing
activities
Purchases of property, plant and
equipment
(26.6
)
(16.1
)
Acquisition of businesses, net of cash
acquired
—
(114.7
)
Proceeds from disposal of fixed
assets
0.9
6.5
Purchase of marketable
securities
(3.2
)
—
Other - net
(0.3
)
(0.1
)
Net cash flows used in investing
activities
(29.2
)
(124.4
)
Cash flows from financing
activities
Dividends paid
(45.5
)
(41.4
)
Proceeds from stock option
exercises
4.7
1.4
Repurchases of common stock
—
(26.3
)
Shares surrendered for tax
withholding
(4.4
)
(4.9
)
Other - net
—
(0.1
)
Net cash flows used in financing
activities
(45.2
)
(71.3
)
Effect of exchange rate changes on cash
and cash equivalents
7.0
(6.2
)
Net increase (decrease) in cash
80.5
(122.2
)
Cash and cash equivalents at beginning
of year
430.2
855.4
Cash and cash equivalents at end of
period
$
510.7
$
733.2
IDEX CORPORATION
Company and Segment Financial
Information
(dollars in millions)
(unaudited)
Three Months Ended March 31,
(a)
2023
2022
Fluid & Metering
Technologies
Net sales
$
321.8
$
272.0
Adjusted EBITDA(b)
106.2
88.4
Adjusted EBITDA margin
33.0
%
32.5
%
Depreciation
$
3.1
$
3.9
Amortization of intangible
assets
6.0
3.7
Capital expenditures
7.4
4.9
Health & Science
Technologies
Net sales
$
351.0
$
315.2
Adjusted EBITDA(b)
100.7
99.8
Adjusted EBITDA margin
28.7
%
31.7
%
Depreciation
$
7.3
$
6.1
Amortization of intangible
assets
15.9
9.9
Capital expenditures
16.1
9.2
Fire & Safety/Diversified
Products
Net sales
$
174.4
$
164.7
Adjusted EBITDA(b)
49.7
44.4
Adjusted EBITDA margin
28.5
%
26.9
%
Depreciation
$
2.1
$
2.1
Amortization of intangible
assets
1.7
1.7
Capital expenditures
2.9
2.0
Corporate Office and
Eliminations
Intersegment sales eliminations
$
(1.8
)
$
(0.8
)
Adjusted EBITDA(b)
(26.8
)
(17.9
)
Depreciation
$
0.3
$
0.1
Capital expenditures
0.2
—
Company
Net sales
$
845.4
$
751.1
Adjusted EBITDA(c)
229.8
214.7
Adjusted EBITDA margin(c)
27.2
%
28.6
%
Depreciation
$
12.8
$
12.2
Amortization of intangible
assets
23.6
15.3
Capital expenditures
26.6
16.1
(a)
Three month data includes the results of
the KZValve acquisition (May 2022) and the Nexsight acquisition
(February 2022) in the FMT segment as well as the Muon Group
acquisition (November 2022) in the HST segment from the date of
acquisition. Three month data also includes the results of Knight
LLC ("Knight") (September 2022) in the FMT segment through the date
of disposition.
(b)
Segment Adjusted EBITDA excludes
unallocated corporate costs which are included in Corporate Office
and Eliminations.
(c)
These are non-GAAP financial measures. For
a reconciliation of these non-GAAP financial measures to their most
comparable measure calculated and presented in accordance with
GAAP, see the reconciliation tables below.
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 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. There were no adjustments to 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 prior to divestiture and the impact of foreign
currency translation.
- Adjusted net income attributable to IDEX is calculated as Net
income attributable to IDEX plus restructuring expenses and asset
impairments less gains on sales of assets 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, taxes, depreciation and amortization, or
consolidated EBITDA, plus restructuring expenses and asset
impairments less gains on sales of assets.
- 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
Three Months Ended March 31,
2023
FMT
HST
FSDP
IDEX
Change in net sales
18
%
11
%
6
%
13
%
- Net impact from
acquisitions/divestitures
11
%
11
%
—
%
9
%
- Impact from foreign currency
(2
%)
(3
%)
(3
%)
(2
%)
Change in organic net sales
9
%
3
%
9
%
6
%
Table 2: Reconciliations of Reported-to-Adjusted Net Income
and Diluted EPS (in millions, except per share amounts)
Three Months Ended March
31,
2023
2022
Reported net income attributable to
IDEX
$
139.8
$
140.0
+ Restructuring expenses and asset
impairments
0.5
—
+ Tax impact on restructuring expenses
and asset impairments
(0.1
)
—
- Gains on sales of assets
—
(2.7
)
+ Tax impact on gains on sales of
assets
—
0.6
+ Acquisition-related intangible asset
amortization
23.6
15.3
+ Tax impact on acquisition-related
intangible asset amortization
(5.2
)
(3.4
)
Adjusted net income attributable to
IDEX
$
158.6
$
149.8
Three Months Ended March
31,
2023
2022
Reported diluted EPS attributable to
IDEX
$
1.84
$
1.83
+ Restructuring expenses and asset
impairments
0.01
—
+ Tax impact on restructuring expenses
and asset impairments
—
—
- Gains on sales of assets
—
(0.03
)
+ Tax impact on gains on sales of
assets
—
0.01
+ Acquisition-related intangible asset
amortization
0.31
0.20
+ Tax impact on acquisition-related
intangible asset amortization
(0.07
)
(0.05
)
Adjusted diluted EPS attributable to
IDEX
$
2.09
$
1.96
Diluted weighted average shares
outstanding
75.9
76.4
Table 3: Reconciliations of Net Income to Adjusted EBITDA
(dollars in millions)
Three Months Ended March 31,
2023
FMT
HST
FSDP
Corporate
IDEX
Reported net income
$
—
$
—
$
—
$
—
$
139.8
+ Provision for income taxes
—
—
—
—
40.0
+ Interest expense
—
—
—
—
13.1
- Other income (expense) - net
—
—
—
—
0.6
Operating income (loss)
96.5
77.5
46.0
(27.7
)
192.3
+ Other income (expense) - net
0.5
(0.3
)
(0.2
)
0.6
0.6
+ Depreciation
3.1
7.3
2.1
0.3
12.8
+ Amortization
6.0
15.9
1.7
—
23.6
+ Restructuring expenses and asset
impairments
0.1
0.3
0.1
—
0.5
Adjusted EBITDA
$
106.2
$
100.7
$
49.7
$
(26.8
)
$
229.8
Net sales (eliminations)
$
321.8
$
351.0
$
174.4
$
(1.8
)
$
845.4
Net income margin
16.5
%
Adjusted EBITDA margin
33.0
%
28.7
%
28.5
%
n/m
27.2
%
Three Months Ended March 31,
2022
FMT
HST
FSDP
Corporate
IDEX
Reported net income
$
—
$
—
$
—
$
—
$
139.9
+ Provision for income taxes
—
—
—
—
40.5
+ Interest expense
—
—
—
—
9.5
- Other income (expense) - net
—
—
—
—
2.3
Operating income (loss)
80.4
83.6
40.5
(16.9
)
187.6
+ Other income (expense) - net
1.6
0.2
1.6
(1.1
)
2.3
+ Depreciation
3.9
6.1
2.1
0.1
12.2
+ Amortization
3.7
9.9
1.7
—
15.3
- Gains on sales of assets
(1.2
)
—
(1.5
)
—
(2.7
)
Adjusted EBITDA
$
88.4
$
99.8
$
44.4
$
(17.9
)
$
214.7
Net sales (eliminations)
$
272.0
$
315.2
$
164.7
$
(0.8
)
$
751.1
Net income margin
18.6
%
Adjusted EBITDA margin
32.5
%
31.7
%
26.9
%
n/m
28.6
%
Table 4: Reconciliations of Cash Flows from Operating
Activities to Free Cash Flow (dollars in millions)
Three Months Ended March
31,
2023
2022
Cash flows from operating
activities
$
147.9
$
79.7
- Capital expenditures
26.6
16.1
Free cash flow
$
121.3
$
63.6
Table 5: Reconciliation of Estimated 2023 EPS to Adjusted EPS
Attributable to IDEX
Guidance(1)
Second Quarter 2023
Full Year 2023
Estimated diluted EPS attributable to
IDEX
$1.86 - $1.89
$7.30 - $7.60
+ Restructuring expenses and asset
impairments
$—
$0.01
+ Acquisition-related intangible asset
amortization
$0.31
$1.22
+ Tax impact on acquisition-related
intangible asset amortization
$(0.07)
$(0.28)
Estimated adjusted diluted EPS
attributable to IDEX
$2.10 - $2.13
$8.25 - $8.55
(1) Estimates exclude Iridian Spectral Technologies and all
future acquisitions.
Table 6: Reconciliation of Estimated 2023 Net Income to
Adjusted EBITDA (dollars in millions)
Guidance(1)
Second Quarter 2023
Full Year 2023
Low End
High End
Low End
High End
Reported net income
$
141.0
$
143.0
$
552.5
$
576.5
+ Provision for income taxes
41.0
42.0
159.0
166.0
+ Interest expense
13.0
13.0
52.0
52.0
+ Depreciation
15.0
1
15.0
58.0
58.0
+ Amortization
23.0
23.0
93.0
93.0
+ Restructuring expenses and asset
impairments
—
—
0.5
0.5
Adjusted EBITDA
$
233.0
$
236.0
$
915.0
$
946.0
Net sales
$
853.0
$
853.0
$
3,326.0
$
3,396.0
Net income margin
16.5
%
16.8
%
16.6
%
17.0
%
Adjusted EBITDA margin
27.3
%
27.7
%
27.5
%
27.9
%
(1) Estimates exclude Iridian Spectral Technologies and all
future acquisitions.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230426005825/en/
Allison S. Lausas Vice President and Chief Accounting Officer
(847) 498-7070
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