Second Quarter 2012 Earnings Release July 24, 2012 Exhibit 99.1 |
Agenda 2 • IDEX Mid Year Assessment • Q2 2012 Summary • 2012 Segment Performance Fluid & Metering Health & Science Fire & Safety / Diversified • 2012 Guidance Update • Q&A |
IDEX Proprietary & Confidential Replay Information Dial toll–free: 855.859.2056 International: 404.537.3406 Conference ID: #40917655 Log on to: www.idexcorp.com 3 |
IDEX Proprietary & Confidential Cautionary Statement Under the Private Securities Litigation Reform Act This presentation and discussion will include forward-looking statements. Our actual performance may differ materially from that indicated or suggested by any such statements. There are a number of factors that could cause those differences, including those presented in our most recent annual report and other company filings with the SEC. 4 |
IDEX Proprietary & Confidential IDEX Mid-Year Assessment 5 Solid performance in spite of global economic uncertainty Operational Excellence Growth Conversion Innovation New Products New Markets Acquisitions Commercial Excellence Global Deceleration Strong first quarter followed by slowing second quarter North America remains strong for industrial and infrastructure-related markets Weak demand in Europe and slowing growth in China Growth rates in 2H will slow modestly Exceptional Operating Performance in Attractive Market Segments Defensible diversified business with strong global teams delivering exceptional value Execution: operating margin expansion with laser focus on cash conversion Strong balance sheet and disciplined approach to deployment of capital IOP Challenged HST Performance Uncertainty in several OEM end markets CVI restructuring continues through year-end |
IDEX Proprietary & Confidential Total Revenue Operating Margin* Free Cash Flow EPS* IDEX Q2 2012 Financial Performance Continued growth, margin expansion and strong cash generation 6 * EPS / Op Margin data adjusted for $2.6M restructuring expense (2012) and $3M CVI inventory step-up expense (2011) Organic: 6% Growth 8% Growth 30 bps expansion 54% Growth |
IDEX Proprietary & Confidential Fluid & Metering Productivity and strong execution generated margin expansion of 220 bps 7 Q2 Sales Mix: Organic +3% Acquisition -% Fx -2% Total +1% Q2 Summary: Order softness experienced in Europe and China Energy, Chemical, Ag strong in NA and emerging markets Water / Waste water outlook improving in NA, while still challenged internationally 2H market environment will be volatile; expecting continued slower markets in Europe Total Orders Total Revenue Operating Margin* Organic: 3% Growth 220 bps expansion Organic: 2% Decline * Op Margin data adjusted for restructuring expense (2012) $0 $100 $200 $300 Q2 $209 $211 2011 2012 10% 15% 20% 25% Q2 19.9% 22.1% 2011 2012 $0 $100 $200 $300 Q2 $211 $202 2011 2012 |
IDEX Proprietary & Confidential Health & Science 8 Q2 Sales Mix: Organic +3% Acquisition +19% Fx -1% Total +21% Q2 Summary: Acquired Matcon LTD (Material Process Technology “MPT” Platform) MPT platform performed well, driven by strong demand for food and pharma processing equipment (particularly in Asia) Scientific Fluidics experiencing market softness on inconsistent OEM demand Optics end markets challenged; right-sizing the business for the bottom of the cycle Excluding acquisitions, Op margins expanded modestly * Op Margin data adjusted for restructuring expense (2012) and $3M CVI inventory step-up expense (2011) Total Orders Operating Margin* $0 $100 $200 $300 Q2 $132 $166 2011 2012 $0 $100 $200 $300 Q2 $140 $171 2011 2012 10% 15% 20% 25% Q2 21.3% 16.6% 2011 2012 Total Revenue Right-sizing Optics platform and global positioning are key to segment recovery Organic: 7% Growth Organic: 3% Growth 470 bps contraction |
IDEX Proprietary & Confidential Fire & Safety/Diversified Great performance across diversified businesses 9 Q2 Sales Mix: Organic +15% Acquisition - Fx -5% Total +10% Q2 Summary: North American Fire markets stabilized, now growing through adjacencies Fire restructuring activities will begin to provide benefit in FY13 Rescue continues to win internationally despite headline challenges Dispensing initiated delivery on large replenishment order; domestic markets improving while European markets are uncertain Op margins are up 50 bps excluding PY gain on sale of property * Op Margin data adjusted for restructuring expense (2012) Total Orders Total Revenue Operating Margin* Organic: 15% Growth 210 bps contraction Organic: 3% Growth $0 $50 $100 $150 10% 20% 30% Q2 25.5% 23.4% 2011 2012 $0 $50 $100 $150 Q2 $104 $102 2011 2012 2011 2012 Q2 $105 $116 |
IDEX Proprietary & Confidential Outlook: Revised Guidance 10 FY12 Revenue Adjusted EPS April 2012 - Prior Guidance ~$2.0 B $2.80 - $2.85 Q2 miss (Compared to midpoint of prior guidance) (15) (0.04) Slower 2H Organic / Cost actions (30) (0.06) Optics (Challenging end markets) (10) (0.04) Fx impact (20) (0.03) ERC acquisition impact 15 0.02 July 2012 - Revised Guidance ~$1.94 B $2.65 - $2.70 |
IDEX Proprietary & Confidential Outlook: 2012 Guidance Summary Q3 2012 Adjusted EPS estimate range: $0.62 – $0.64 Organic revenue growth of ~ 3% Negative Fx impact of ~3% to sales (at June 30 rates) FY 2012 Adjusted EPS estimate range: $2.65 – $2.70 Organic revenue growth ~ 4-5% Positive impact of 4% from acquisitions Operating margin of ~18.5% Negative Fx impact of ~2% to sales (at June 30 rates) Other modeling items Tax rate = ~30% Cap Ex ~$40M Free Cash Flow will exceed net income Continued selective share repurchase EPS estimate excludes future restructuring, acquisitions and acquisition–related costs and charges 11 |
IDEX Proprietary & Confidential Q&A 12 |