IEX - Earnings call transcript Q2 2018

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings and welcome to IDEX Corporation's second quarter 2018 earnings conference call. At this time, all participants are in a listen-only mode and a brief question-and-answer session will follow the formal presentation. [Operator Instructions]. And as a reminder, this conference is being recorded. I would now like to turn the conference over to Bill Grogan. you. Thank ahead. go Please

Bill Grogan

introduction. Good for This stepping IDEX this cover Mike Brenda. Chief in Bill Financial Yates the will I Officer Corporation. quarter. morning you is everyone. Grogan, for Thank I am

for Let me XX-Q later start issued highlights. slides on at today for saying, and accessed same thank a we financial three press IDEX quarter ending night, during June our for the XX, our along presentation the company www.idexcorp.com. The our company's file the today's operating XXXX joining to release, press website second financial and on you the Last our discussion be for by us period. will we release months used outlining webcast, performance with can be

our CEO. Andy format follows. Joining The our is is call me today Chairman and today as Silvernail, of

overview quarter Andy conditions, our He finally, begin second with segments. geographies We performance year for the And and up our the full within each our we operating outlook providing will XXXX. capital and quarter market of third with will update strategies. our financial you walk deployment and an wrap on through will the discuss results then and

the Following our remarks, call we for open prepared your questions. will

XXXXXXXXX, dialing need by If replay. you the replay may may access toll-free the beginning company webcast for XXX-XXX-XXXX exit a or to homepage you concludes to any our number should entering complete the simply after approximately call the reason, ID conference call for you log two on and hours

release that, the CEO, will subject language Andy and Commission. are call Securities a filings certain begin, statements contain Chairman to in and to call I that With with IDEX's safe we our Exchange reminder. the the turn This harbor and Silvernail. in now over may Before brief today's press forward-looking

Andy Silvernail

quarter our you Bill. to joining everybody. second Good I morning you results. discuss appreciate us Thank

with had Let another we quarter. me a start outstanding brief Look, overview.

half CEO, as seven a we of year. overall would it's fact, resulted the quarter say of first years matter in have I a had strong the As in my and strongest very

am most outstanding. growth solid I of outperformance high across all Just the on operating in The organic sales terrific numbers proud of has achieving on categories. orders in segments sales, results, rates quarter each minute. both growth global growth. in is driven all Of income we performance. digit the the team's despite XX%. here. continued up organically. second was seeing let and and record all-time margin up up I X% and record conditions And Orders overall, I were highlights our our will and hit growth but just Strong X% details more half market and have that with into are up X% first XXX are overview quarter what up we in with in quick to some free geographies Sales healthy $XXX points quarter, me about we a or conditions that we XX%. $X.XX, quarter Adjusted Adjusted $X.XX, EPS After detail we a the three first highs in positive by go provide and for quarterly operating XX%, operating strong delivered these market every once was trade. execution drove for truly and am the solid shown market XX.X%. sustained pleased million, all-time and was EPS IDEX. I economy operating this basis topped single results. again up orders, highs very cash shortly, flow more give will another were Overall, organically.

science strategic gap I that Instrumentation, Finger that the will results, me nice which acquisition to specific add more Lakes we also and just through let of in portfolio. be go asset health thrilled I financial Before nice June. fill on IDEX acquisitions of with announced add made am Controls excited am will I purchase a that our These complement and details the in we a Phantom portfolio. our

to embracing IDEX It's in teams XXXX company difference continue by and Great a show customer our of obsession. the driven live we are watch culture results. embrace initiatives daily. nice Finally, financial our the up to

and year. Midstream global gas and have continued year that project see oil look the business has and Now Day really had in we markets, In high balance continue serve. fluidics do momentum have remained remains Energy, upstream relative strong. the talk and have and to optics, to really, rates increased we remains and remains strong. nice will forward OEMs about semicon, have markets demand levels markets In and take and let that but production for me life picked really forward. regions the in a a performance going our to continuing. up the we perform overall. markets strong, the rebound minute scientific, to continues. remained here industrial activity we the market. to industrial, the We and the for In we agriculture, In markets to we concern In the positive to all this play have municipal orders. book outlook of that within converting the trade have bill affirmed we strength sciences at some a monitor

New nice have been product has for a emerging well. really done benefit us and in water markets development

well. saw talk is $X are Once to America. XXXX. enacted And what has million in million well solid. us experience let's are in the Europe we look going with with summary, geographies. XXXX both to I continues going Based to would we tariffs. estimate the of in In very Overall, China to $X are accelerated on be for what like seen in and impact see to our about we a tariffs, best see XXXX. again, for minute we begin India, Asia, things in going North in Now at things that

we strategies all balancing to the to pricing a impact overall options of overall look have our margin job including really nice continue We at the alternative of done and business. and sourcing

Let talk second a me inflation. take and about

very impact uptick realization. very, very, on inflation, through the concern that we very well, but a successful and a higher good a a job starting forward team With price been the remains have from are go to doing monitoring is impact said, and productivity basis. very inflation mitigating see We this in of the

Let's deployment our would minute turn capital I recap strategy. a deployment. to to to like capital take

our As priority us evaluate team for always, continue organic opportunities. lot revenue overall dedicated product remains targeted number growth to one performance. initiatives. by growth a With organic the we order development a and focus to our and and evidenced and organic it is This outstanding M&A, is of our new remains

We possible focused are on delivering shareholders. our going to the best remain to disciplined and returns

the come along, when it. capitalize right Our balance is sheet we on strong deals will and

will right assets and help accelerate Speaking our the our will optical I portfolio Controls our Monday, waterflow be Instrumentation. of to Phantom and and excited our adding overall fluidics expanded on family. suppression a Lakes nicely Lakes the of strategy. Finger business. This we current health to am welcome by deals, nice Finger fire And business The science been with and both Controls match Phantom add to

into to work both and the integrate of We short them order. quickly family bring acquisitions in the will these

it approved quarter, the All XX% a a committed quarter. In dividend, increase. million the to deployed quarter, increase shareholder We repurchasing the repurchases, to the during shares $XX in strategy equated when create repurchase second of value. shares This will of in which of in to million approximately our XXX,XXX we $X.XX the terms long-term right. dividend to share remain quarterly In payout shareholders Board our resulted a $XX stock. our

and in were duty excellence period. efficiencies Switzerland the approximately and our within for XXX million $X.XX. investment the which due offset quarter, QX QX margins HST Again, investments X% XX.X%, partially X%. higher the strong by the in XX%, the was backlog restructuring income up new Consolidated up was impacted was also EPS engineering. all here the We am results Rochester, margin York. overall $XX leverage, due XX% segments, X% organically, first I million and $X margin an $XXX three the quarter production our That the $X resulting the prior million costs, QX points organically. FMT to three growth $X in on optics gross in from by orders with was operating of for adjusted of results revenue and XX of was to expanded the million million was operate positive second up $XXX adjusted on FSD half up volume overall expenses. built year-over-year. of million associated by also built of $X.X to in QX was the restructuring in operating New X% now QX the first up turn of X% with restructuring was intercompany by $XXX second compared strength to four. million me order primarily expenses for we confidence in Similar million loan. in up net stamp QX us majority points the the XX.X%, We basis of $XXX.X orders corporate million, to restructuring basis income the mainly in slide top HST was quarter. up center Let that XX% segments. all associated to provides the driven in of are of was quarter. first were and the half.

Excluding expenses, an of year. EPS the $X.XX, restructuring was XX% increase last or $X.XX, over

midpoint was XXXX of the XX.X%, tax to of $XXX our Our XXX% the XX% ETR of the year. lower end than our of which beat in offset sales. story, The operational In net second flow up mainly had to amount. last Overall, over XX% to points tax lower basis great QX earlier. very balance The driven positive I This reform. This our prior rate healthy. ETR effective our it's $X.XX XX.X% strategies tax basically tax adjusted was effort Free at the reform tax the the modify cash XX.X% finally, income the versus to is And by due enactment through million, was another was EPS mentioned sheet, flow was the last from to quarter previously year. same was our regards of versus guide. of impact over our and was by XX we guided and favorable guide continuous period.

net times, and X.X We of $X of have capital over debt deploy. debt to X.X in well billion gross times

slide in out of is back It fluid now The well metering. and watching basis and was organically. X% initiatives QX XX% China driving well-positioned discussion. up Op have business, very order put productivity. to to orders in and QX And the gas X% expected to oil new the for distribution mentioned, progressing is for I with solid new of strength leverage Let me XX.X%, continued revenue adjusted from are an both numbers, water, organically. had day solid industrial starting strong we prices volume up orders growth and by to the the in as to and improve. and Valves, project impressive. driven well due funnel business strong oil we overall for continues overall, opportunities future am of the Europe year. segment performed provide points turn book restructuring are continues In the and fluids, and were on sales. The mainly our FMT five, pump up to product sales market XXX ship up I energy, the year, in the for over development margin ag the products. prior and half are as impact In continue tariffs. record be is perspective. for quarter. targeted business rates Increased U.S. as LACT. is and

XX% MPT. with last on quarter. results wins move organically. science. science had but tough X% and only in very Orders up X% QX on very six. slide overall, comp and I am in were X% am up revenues a HST project large to overall, the pleased year were due health organically. Let's health up I the some

remember, last year orders XX%. to up Just were HST

mainly basis points was Excluding adjusted productivity. the margin increase quarter operating XXX due in and to restructuring an higher volume XX.X%, of expenses,

I the overperform. last on operating recent to once Instrumentation continue XX% and I XX% performing continue our the call, like will team end-markets of for market. Lakes optics, acquisition to the would stated to what life I is within the performance. this expect again As margin expansion and much to commend in closer segment our science to In The Finger improved be IVD/BIO

very global robust but MPT, do solutions, these In activity to here encouraged remains sealing on comp and are quarter optical you In recall, basis. are add that tough them also have the Lakes a the fluidics, industrial, in slide on and third bring moving detection I business. Finger technologies HST microfluidics up our will a Transportation oil if and remains on an positive, funnel strong. did illumination seven. organically. excited last final orders we been and We pretty that, large organically. our up market we bring doing gas But semicon demand exclude very to overall, MPT. and well. remains to in the In year into were for am XX% a were overall, push quarter. I Revenues would overall second comp even XX% now diversified. segment, project easy XX% had Dispensing half. have am QX if we double as X% orders digits the up have the

and This market strong with Muni points. increased orders fire OEM and development American Excluding and attributable is and have And was China activity steady. XX.X% across along is markets globe Emerging growth adjusted In remained productivity. pick with markets in fire operating volume business our XXX In and activity. to safety, from mainly basis India, penetration. across and the product of significant remained North upside, and restructuring European strong project project East. dispensing new steady expenses, margin Middle rescue positive up the and we increased

order demand mentioned a incorporate to Controls. of And assets AWG. growth, At to we least, revenue ahead Brass organic we and I Band-It, share the double-digit are of purchased not earlier, very They have experienced expectations. recently strong gains across driven and Phantom finally, excited continued improve but Akron overall margins by both last at and the globe. As are

topline I organic the eight. some $X.XX in In on the now estimating XXXX me conclude we year. growth guidance EPS am our range to quarter QX, $X.XX with the with Let additional the to details of for XX%. for margin based of are slide in QX revenue approximately and the be FX June than X% XX range estimated the on costs of rate tax and headwind is million. with operating are less The to be X% $XX XX.X% to expected X% effective approximately Corporate rates. from expected

full to year. Turning

X%, Full-year We organic a have increased be in to EPS of guidance to nice $X.XX well. approximately so revenue is guidance expected revenue range organic growth our full-year a $X.XX. as increase

and in we you If to to before operating of range at XX%. X%. have remember, expected the guided X% be Full-year margin XX.X% is

rates, about expenditures will million, around on will tailwind be The stamp back of we net range million costs it's I more the worth should before. from XXX% $XX strong Capital to to we the of mentioned flow based than For that have be headwind for us. little $XX cash $XX going are tax around tax with corporate million. but in at what be year, and happens anticipated to remain that's FX, is a million X% is that half reform. to tax up $X Free the in the about the XX to we will be rate June see XX%, but here $X.XX full-year effective going income

associated guidance acquisitions cost Finally, me people With turn let any of restructuring. that, to questions have. future excludes or any over Brenda, our it earnings

Operator

Instructions]. [Operator

UBS. Our Winoker of first question comes line Steve from the with

Steve Winoker

orders, to be lumpy against we think Hi. the level the Thanks good company To pull-forward, there. time, I what single Great anything growth should these are this that see on I and on up one to of you agree, a easy increase kind of comps. impressive. year? XX% all. extent sense fall get I expecting wasn't are order back FSDP of It to would morning organic love it's side. that high rest else to mean and

Andy Silvernail

Yes.

digit And is But business. It's ship half a you the I strong. some we double-digit that the in year. the some saw, if have overall did and So That's expect orders at back larger first that increase, to one we very, But into the double too take next orders pretty of even would the looking project businesses. remain in of strength overall, will not it a ambitious. good. order very even out part year every of of was in the the activity in territory. singular it's not

Steve Winoker

All all right. Is here? playing deceleration. last it thinking more something Is into there you guidance And quarter year. think your comp least it? I is? to at fourth Again, that tariffs have X% implies, forward some your Is

Andy Silvernail

No. impact. is tariffs, to The some have Certainly to mentioned, going of as we think the cost about structure into $X business, million. we million the $X

just factored overall we haven't comps as have We much forward. for go global a in growth. We slowdown tougher

last year. really don't the those tougher. have sequentially, think comps mentioned, at to decelerate get same we see at last we the of I started the I but just half As are back to And quarter, time going acceleration

Steve Winoker

just changing you then if any Are more, one mentioned, the the forward interesting. And And invested side plan return out acquisitions, front would should capital one about sounds going them? These financial we helpful. of I How be kind on on recent significantly? think pretty Okay. strategic could. call the most the of

Andy Silvernail

really Both it. The them neat for through It able time. other safety. bring us of you revenue overall optimizes technology the parts integration to on size the to going for really most business It's with real of very, components be intellectual when very with plays, property. firefighters pull fire from a today. right us protected relatively and in is are Phantom set the productivity And well valuable to down of It's benefit immaterial is all being a together technologies. of get really truck. helps the Phantom over

to it as gets and having technology smaller we get it's positive more a integrate our we now, to very difficult buy off-the-shelf which, efficient, do. announced, optical into more that camera systems. allows to on that are things we fundamentally us So Lakes Right are just componentry that. that Finger

to integrate be yourself. to need able that really You

the a is down in into of our technology purchase center from road it's excellence. Rochester right will that so go nicely and it current business our And

Steve Winoker

Very helpful always. Thanks as luck. and good

Andy Silvernail

Thank you.

Operator

line RBC. Deane with Please go ahead. comes question our And next Dray from of the

Deane Dray

you. Thank Good morning everyone.

Andy Silvernail

Good morning.

Deane Dray

in both. we Maybe price, quarter start on the of and cost separate then can kind

price So you the offsetting lots other pricing, side, plan cost pricing the on What's much contributed? labor, that? then tariffs? of then of And the are has seeing And how increases? inflation, material how

Andy Silvernail

Yes.

of got the around sustained and X% which saw. than front a So been we have pickup inflation. quarter, side, this we and just nice pricing more on year, is a a Even in the our really in out that's is first little time uptick what of from last where being we the strategies

So aggressive it easier environment obviously we have The integrity with with inflation have been more And makes customers. conversations generally. there those the picked has up. also to

We kept our spread. somewhere said, that. price have kept inflation at historically point over shot and We XX we to we spread XX on have have versus

And so, really pickup tariffs It's help that universal. inflation we we situation. are labor. continue. It's it's to everywhere. And material. It's and expect obviously And seeing that don't

our with don't conversations the those how you in customers having tariffs have who business. line the be to, that to be impacted try having ahead about conversation are We of What is everything. person again, XXth

roll some down actual growth. in I that would those roll XX-XX. balancing in and the back deceleration if we then The inflation while. actually back tariffs price of about I the we been off. the and on it's is a surcharges, threat will for fire. the could that tariffs where combination my really kind cases, what the flip cause gasoline side. a inflation broken they threat impact. of term, It's about the off think with But concerns causes call And about in are have the long short-term, are the I And talking In that, see short-term increases in are

Deane Dray

what higher more are some technology pricing maybe power. on descriptions dialogue you side, have and That's because Good. CEOs and that pricing And just the got the we is of you component real at end pricing effectiveness then the from about heard helpful. have

Are helpful. when the put some would you So pricing getting back? color price? through, all be you are pushed you Just there getting

Andy Silvernail

get all it. of never You

discussions the market OEM if in conversation distribution the easier go have probably in contracts, than is is effectively And you much have those to difficult range what that's more and think of have. to sticks. XX% I what long-term over obviously somewhere it realization to with, with time you a it's

And and get we are we in, get at so, less HST. and FMT will will diversified typically looking if in price overall we more price

Deane Dray

they at outlook Gast Got Steve's it. you before, whether and Band-It question talked of the just indicator the and is last take demand Warren Rupp, businesses and sustained? about have growth just kind about barometers this to this follow-on and how just short key those kind of the maybe is, tell is industrial of it do we And on and leading demand question a when look you what and cycle long pace

Andy Silvernail

industrial look of They our are fluids industrial businesses, very at they are the our businesses, strongest businesses positive If overall. you our

economy signs global very And start things. Band-It, discussion is that if fast the they Warren So slow. positive overall will particular, have look, with the things show means in obviously to in up necessarily that slip, am slow. that are Rupp, and very they economy. signaling global what Gast to relatively if to don't We going quickly hesitant I businesses. any see the industrial, trade those starts to will you

Deane Dray

That's Thank real helpful. you.

Andy Silvernail

you. Thank

Operator

line Fargo. And Wells our question Please comes with Poliniak from of ahead. next go Allison the

Allison Poliniak

Good Hi morning. Good guys. morning.

Allison Poliniak

supplier growth keep to at concerns you talk you side? be you both to and to, have level, just adjust suppliers that that are capacity, With from been any able guess, this for? for Can up, side your the it have that to your I going won't adjusting

Andy Silvernail

Yes, it's Allison. real,

From talk we of really perspective, our me a from have first. it constraints. let about don't our lot perspective So physical

ton. you buildings, a you look If machinery, at don't have

We increasing automation or semi-automation. overall are our definitely

that machining centers. We are doing mostly through

that's in going to the way. do what's that's not investment people, think get as are difficult and across skilled going goes drive time everybody more people that's continue constrained so, in And And to on. and more us really biggest that and The is globe to for constraints going highly that and automation for we semi-automation. I

time. absolutely we and are have been seeing our terms for supply In some chain, issues of we

have look extended. you times, at If lead they

this quarter, seen last we last built customers, extend pretty that. to we no were supply really it way chain. it way of because job some to that's protect we are is constraints cycle to good see a starting play the is are we the had And there our think environment. I quarter, times seeing some you I and why about global lead talked generally capital inventory in trying out think have because we in done we As But avoid

Allison Poliniak

great. I touch to full-year just outlook. And That's then on want margin the

low-end You that a in are something from range. still be to did mix-related about back keeping bit down QX? should the the that we what thinking of there that Is you bring half in that number could little

Bill Grogan

our you rate margin No. the mean XX.X%. over when little a average and I there look quarter at first second quarter, bit is

mix So concern. no major

top where think spread, the depending will the things be of wanted we ourselves to of range. to a half. go I little probably But that give we closer in bit back

Allison Poliniak

you. Thank Perfect.

Andy Silvernail

Thank Allison. bet, You you.

Operator

next go from line Jones Nathan of question Our comes the ahead. of Stifel. Please

Nathan Jones

Good morning everyone.

Andy Silvernail

Hi Nathan.

Nathan Jones

growth, may long? be there. that of are corporate maybe you as growth it best I Andy, company doesn't And for hope the you support support worst in kind had with this kind the into as to of businesses higher have the then you back has at to level the With way growth of need the you high your about run be back slowdown year, been than growth, office start always been of kind of add the you of guys are how kind may that level in G&A coming the stay over and expense that for significantly prepared any growth? guess, opinion seeing planned functions, the functions, business of functions thinking tariff higher pretty

Andy Silvernail

So would we to I have business. call, the very cautiously added, overhead what

the globe, years. overall only last across at If modestly it's you headcount of look changed the couple in our

got no we to are people, have is productivity people going a And a at the bunch added There of corporate. lot add add of to need we are businesses. Where at we really so have there. where people

it's As businesses. pretty you group the finance pretty Otherwise, at a anyway. IT, everything know, and HR. is It's much small

talked I today. a ago lot our of five are really was unlike there in big years we the that that or that's people lot XX The where a about where don't with so focus doesn't trim to for see a downturn, one investment. years that is, I to And thing exist need change. to fat ago, going to

will about And downturn, in come, right. and so to be have in how in particular, of the going which and that smart people to we terms else next deal very, us everybody are very with

the of So shortage skilled that here, really people get get exists better. of is it's going going to the across to globe folks not exacerbated

to are going when think you you everything great so sure you And differently people. that it past you you actually downturn, about you in the hurt have are and do a going make curve to thank approached be the approach of and to don't can your ahead

Nathan Jones

Do the that? continue further you have you funding, Are more guys do a you you largely good for, got growth can Fair would you bandwidth, look enough little you the high a have got I that go know enough. warrant that exclusively power as And projects returns good that you here. returns, to income pretty but here, then, or list down have much still that funded people there funding? of don't all to opportunities enough potential have other have at internal growth

Andy Silvernail

much people, this said on feel funding sense. a times, big a we makes have businesses. so I are we but it's as many thing it's think confident that any of right. front limitation, again is that I very don't If us there the I that a are things corporation. And our of across why spend that's us, time Great huge biggest it limitation a difference. people make the that's for in

Nathan Jones

supply Allison's chain. more then on following the up And on just maybe one

starting to inflation? chain. to to and expecting talking you you it supply Are expecting stretch about contributing are there? seeing worse? that lead prices Are Any see? color cash targeting raise to You are that that Is got suppliers in you something times the on have out you look say get to

Andy Silvernail

absolutely to, We there, we seen passing across have at price base suppliers it it. right. and We work our on with and it's constantly, mitigating supply in where diversifying need both

ago, pricing getting years into we our positive see. So are that of It in effectively productivity. chain right. a we were was went zero, range back and was two Today, if you to we the starting eight-tenths are point nothing supply

across is that's change be there continue in and all our strong, is so us this seeing here. uptick the stage foot meaningful And a going no unless leadership our that's are shoots to businesses where demand really, we at there reason to

Nathan Jones

much time. very Thanks Okay. for your

Andy Silvernail

Yes.

Operator

next come is line Our from of Please Brett ahead. Vertical Research. going question Linzey go to the with

Brett Linzey

Hi. all. Good morning

Andy Silvernail

Hi Brett.

Brett Linzey

really terms that with in or come I mix HX? to suggest back guess, point back investment I anything for wanted sales that HX just would I in there They what's then QX. is for to continue further FMT half or the stepping stepped sequentially full-year? impress in balanced, profit versus margins and expansion relatively with margins. segment Hi. HX to down the HX the up guess, to expectation of here And

Andy Silvernail

Bill?

Bill Grogan

sequentially will Within where Banjo they FMT, more down little seasonality, bit here Example, one a and revenue half. of seasonality in half businesses. are margin the go related there highest is are back the our some they first

mid to the be but huge will they that a it's as as robust XX% So the not second impact, upper quarter, probably you see but not margins still range. were within in

Andy Silvernail

businesses the of the us company just mean that one has to superior have the industrial of the handful a of for profitability across and the major contribution pricing been I board, of strength of have margins rest power. drivers

mindful very about are that. we so, And

big, or you as flow-through sequential negative. that positive so changes look And at is

that quarter-to-quarter. watch to have certainly you so And

Brett Linzey

And in being actionable returns here M&A release, breaking I how about anything in versus at then talked near-term? cultivated? what's current between see and active. delineate guess you you would are valuations just the relationships that Okay. You the being pipeline the for you

Andy Silvernail

close things. have We on been some awfully

billion almost from walked players to recently, last We away and couple away the we of and away brought we $X.X on with we the price. deal Just a got walked down discipline we to walked that bear. just

So environment. a of lack it is certainly opportunities. really It It the lack effort. isn't isn't of a pricing

have And very so we been disciplined.

we and this disciplined. or come the to to doesn't and market quarter-to-quarter driven have be cultivating, to year-to-year. that continue That was The we year will by expect we a that seen into stuff We with come looks what's It valuations. continue same. lot of change market really elevated magnitude are activity these really

Brett Linzey

on maybe our product just one And new more Okay. vitality.

years share taken number? As are sales. couple the three from last the need guess, percent What here businesses, these where on guys of curve does of new have products years in a you climb And target what's guys the over be? orders today? and technology many for to You right of that sales I

Andy Silvernail

of and ago Brett, incentives a it reason is the It's number. rename people be we easily things increase not to time a stuff lot to to for measuring some real new what like and tends and I is, stopped something auditable also that it vitality found bad that's not complexity product creates for that.

tend So we to do not that.

durability. have very and incredible The other the have decades beauty of product long very, last life really is, and IDEX to we tend things thing is cycles, that

over growth don't really so by that And we product doesn't accelerating we ourselves new is growth, you about new And development. are we that around look market from organic changed. half coming that product of to want be half shoot said, of driving. most change need X% the that would aggressive I That and we having, it that at is are the to And argue that of being if are the development.

Brett Linzey

along. will sense. Thanks. Makes I Great. it pass Okay.

Andy Silvernail

Thanks.

Operator

is question ahead. Our of to and line Please - Giordano Cowen next Company. from Joe the going come go

Joe Giordano

Hi guys. Good morning.

Andy Silvernail

Joe. morning Good

Joe Giordano

What you of consistently, just generally guy high-end the conservative pretty has how are it Andy, than I trying was wanted, a but guys the but couple what guidance, are pretty things like were above to long now, magnitude you is what that your But most get a come wow, the you quarter the ticket were knows been than this of lot stuff already. and were, God are obviously So last, in of that, guiding that top you my like been. of has the better this kind what couple you not things asked even with more thought? we

Andy Silvernail

of with points you into there? and what's that and about of Bill, here quarter the the So changed A couple book don't come know, quarter XX% by? I

Bill Grogan

Yes.

Andy Silvernail

change a doesn't It by lot.

really quarter the So really happened what drove it. was turn And It the the you that happens portfolio. two more across across business. or that happened businesses It get and it book in business. wasn't is that and one

would were that my a overall to expectation the you quarter. start not sequential see it. see that was so I modulate the going thought and economy, in second acceleration And to did we

surprise little did us that bit. so a And

and does strength hadn't and turn business, that that expected do we sequentially book stronger that a right. think So I really slowdown,

seven sequential what, now of six had have quarters or We acceleration?

Bill Grogan

Yes, six.

Andy Silvernail

Yes.

So that's or quarter going about making to And a slowdown. no doubt early in that call. it. There probably is I we think two were

Bill Grogan

digits. at XX% of look were up double Yes. I our the mean we businesses internally, stat

the the that to growth of portfolio. pretty that's have segments across broad-based So across magnitude external

Joe Giordano

not guidance your say, to fair of updated that extrapolating it's then? acceleration So king are you into

Andy Silvernail

going it's it second tends the is that weaker I anyway. just from some second going whatnot. quarter don't overall get we than before, to from it's a robust. see is to don't still be us I unless the for be suspect stronger we growth first. going accelerate issues thought don't driven quarter And that and be quarter quarter accelerate. the think I saw but like weaker by of to third again, it's with the to we Seasonally But The to going accelerating trade pretty the think

Bill Grogan

Yes.

our to going are growth are confident relative numbers in half back more last what in So be. guide, the the to we

Joe Giordano

margin. That be second is real, last there? the segment size we on me, just segment diversified model, for the And hard of what's on for to just what orders. the the Like so Okay. should given half the thinking

Bill Grogan

mentioned to made the current lever been well able the have or XX% surpassed extremely earlier, front, think our progress with expectations. I At Andy acquisitions well on two the rate, have we that it's the and growth integration they XX%.

more close were to are to where pr-deal. So much they they going

Joe Giordano

guys. Thanks

Andy Silvernail

Thank you.

Operator

line from of question our Graham And comes Scott with next the BMO.

Scott Graham

hear morning. Can Good Hi. you me?

Andy Silvernail

Hi Scott.

Scott Graham

kind of a better. questions The on going am it? how are here, hearing guys of like somehow to doing interesting got and I even to kind am you ask through I similar some organic shine continues

give are maybe my the sales share sauce can bit you are funding, detail more little consistently? of a specific this are Andy? most opportunities you where from little possible? you So you tell mind us if you more maybe segment? grab us simple this land little here, market Can willing how ones is, by a are a you my doing guess maybe that share, Can secret to simple Maybe I so is, on question which prevalent get and

Andy Silvernail

you give relatively answer. boring will I a

is very, kind back, of three I the back. years If to if go aggressive businesses. XXXX We look go you segmenting very got back actually aggressive, our about in making, this XXXX. and We got really

some moved for to big four time the am and because, or investment change you markets over the deeply principles And we people we our have where product segmenting profit where resources had in segmenting areas headcount a where here segmenting years, with what really think around understanding moving quite the is seen distinctive done about that people within three really we haven't I have the the advantage earlier you really pools where reason the around advantage, and and in didn't to XXXX our I businesses, company. level have to about using where and businesses moving so that have had we and we resources as mentioned talking were, aggressively and we aggressively are advantage.

And great a give example so I of will that.

viability refreshed the entered years our us. entire portfolio. just if We with or We fundamentally turned ago, should the refreshed and line. business, product business, the really has have, our the IDEX. X-Smart went have same the not if market product done, dispensing exited and can real lines the that marks that as we And segment entire nonexistent we be a Ashleman across example of six business business If you I be and outstanding whether look at Chief said, aggressively. team handful dispensing it back that or an seven into a category about have Officer, product across Eric previously about That you Eric's of for question Operating used had in look at you and what

can You six by to sell businesses. business business. We go opted

a you As advantage about that reticent in sell I with. organic didn't to know, past of out want three, we had we year? to each four, of been got growth a we say, we Bill, anything in exited had four row businesses think We years the an point and

Bill Grogan

Yes.

Andy Silvernail

more distinct because we it million, in businesses the up time, are like about it we a out ton. per se, That include we talking about in numbers, didn't of talk if we if you over got actually what advantage, exited. we And show didn't than $XXX $XXX where advantage. didn't of But really a an period a exited optics that more you million, probably have

slowly. the of now in pay relatively think, so And seeing a lot seeing are And you scrappy, very is it's And off. what work itself dirt a work. business, in things hard It's are relatively our I move boring answer. you that

Scott Graham

in example, Would of ask Okay. That you. possible for us sort me it can an pumps? if was you comprehensive. give a you example, be Thank gave to you us maybe dispensing

Andy Silvernail

sure. Oh,

say we The us we always for And has culture to Let's distinctive Viking would great it's Viking, a a said business everything. yes had what flagship I business example. is, where been a us.

had We So that relied lead unbelievable in we that modifications We on Viking the plant. that were you had brand. really doing that times ridiculous. were

seven even if we exact through the the that modestly years now. last been with done ago, have three thing. walked at growing I strength in, is playbook and segments same years really that markets And Viking, in the Viking volumes you of competition. that market have ventured that has for five, moment exact a technologies six, were away they LACT incredible Our The market take We growth right distinctive best business that you advantage their in outstanding. the of versus are a doubling rates the multiple

in we half cut three lead times, years. in them overall Our have

you service our ability matter. are like to aggressive this, And the so on environment unique. really in when in lead times be And is an marketplace incredibly

do And been so have things at of those we sorts to able Viking.

that in I of I Gast. can at So go give you of could HST. examples that the can you across you examples give business.

a we have and of by Except right. that's decisions across You have magic IDEX allocation our the There tough business have can businesses distinctive is here, say, and portfolio done XX capital business to we this do and really we made a advantage. people right. around key, where

Scott Graham

Great Got a quarter. it. Thanks lot.

Andy Silvernail

Scott. you Thank

Operator

Global. Seaport Liptak the is with from of coming Walter question next line Our

Walter Liptak

organic on especially Thanks. the say, Good I will and morning Hi. too, growth congratulations the consistency.

Andy Silvernail

you Thank Walt.

Walter Liptak

are half to other growth talking that share, I growth, wanted ask you that point. I market market thought on I market. you a about say half a Is right? to data market the attribute the you share heard clarification versus the just to When

Andy Silvernail

not literally I share Yes. entering exactly places right haven't are the is because use, market been some term, we in. that would we in And businesses

it's new half could distinctively. are business you but it share, market and growth that half call you could we So it's winning

Walter Liptak

something of there business a lot is right. are there All And work Got you little quick Maybe is could what Where Is And you there that's specifically, why out I think pricing? this we projects? truck a a called then bit is I you some building? does if funnel that and how project seeing talk that realizing build. that, wondered cycle? visibility,, Is go? and the that about LPG are and long your Okay. low it. turn in

Andy Silvernail

make I me sure let Well, this. got

generally, work then and So you LPG. a have pricing project on question

three all So let of sure me get make I those.

Walter Liptak

Yes.

right. Thank All you. Okay.

Andy Silvernail

up. it's yes, work, project On picked

that heard say XX we that you million really XX turn we what is $X or ago months, projects. back is to and the on you months don't XX lot generally. come we and book were $XXX,XXX has be improve. As They And And to tend went know, really start have you continued living a business. months, to see if in project range have large work to to would tend back of XX

the So change absolutely that been here. big has

last couple seen have If come you years, certainly over the of we look has work that. project where back,

not What terms clarify pricing. that am me? the of In your for Walt, angle I on pricing, sure was what Can exactly question? was you

Walter Liptak

bid, the get down? Just of to out and rounds to bidding is try price multiple goes there work the project sometimes some longer

Andy Silvernail

these to Okay. the be tend really case. is projects. We part of That a small certainly

price don't there. we be a so of pressure see tend here. in And to that something would particularly not mentionable lot That's

And now a really it we been big pricing then mid been just improved. environment overall think the on anything long look the early picked it. cycle? actually builds for not in up deal. to yes, have are it's more than truck you particularly are that. time. the at no, finally has That say, stage we LPG, still if a in would I And favorable I So is much in right Where year, this

builds truck you as know Now are overall, astronomical.

U.S. think trucks, But obviously, major to not that early I tied Class right. as still say, truck on XXX,XXX It's LPG expansion. the I is that, mid build. the are big to if remember at seeing number. we we but And a industry VIII is would I overall are

Walter Liptak

Okay. Great. Thank you.

Andy Silvernail

You bet, Walt.

Operator

Thank you.

over the reached to have now like session. management I back to comments. We turn end would our any the question-and-answer floor of for closing

Andy Silvernail

by day. table The to them. am each the do Eric the Well, Most first, to I importantly, that business, in work due what teams. for results bring operating And just led and with following they Ashleman, you have that really you been thank the get just very outstanding. teams us. here and our of want The we IDEX is to I thank every very, appreciative

and care. time your forward to in talking Take appreciate I again, days. to XX here look So you

Operator

concludes today's teleconference. This

lines you You time. for this participation. your And thank may disconnect your at

IDEX (IEX) 25 Jul 182018 Q2 Earnings call transcript