IEX - Earnings call transcript Q4 2020

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

Operator

Greetings and welcome to the IDEX Fourth Quarter and Full Year 2020 Financial Highlights. At this time all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder this conference is being recorded. It is now my pleasure to introduce your host Mike Yates, Vice President and Chief Accounting Officer for IDEX Corporation. you. Thank

begin. may You

Mike Yates

morning, Accounting is Officer Good President Yates, and Chief for everyone. you. Mike This Vice Thank IDEX Corporation.

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

on financial moving into conclude Joining that me are an a update then fourth full before we and recap of Bill order our with of for XXXX. end IDEX's and review Eric an providing the XXXX Officer. Chief Financial The including we'll Officer; today format of markets. quarter performance how IDEX's we providing for businesses, we Eric an key quarter then performance will to for and our and begin our overview a year first will believe XXXX XXXX. a today our results. the follows: culture, Executive Bill our outlook state of Grogan, are as Chief provide Eric is recent will And our call viewing our discuss Ashleman, initiatives our is with and few outlook full year

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

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

and a filings to night's Exchange are begin, Securities language certain in with brief press release IDEX's statements Safe over may contain the the to I'll that, call last reminder. turn subject CEO. forward-looking the we call This Eric? Commission. Harbor With Before that in our

Eric Ashleman

to the thanking like challenging I'd of during in and numerous our people have Mike. a around such start continue with you, risen people the all been change, marketplace. our protocols and It's the who full by year year. Thank disruptions In that safety challenge to the shine. a occasion to world environment,

been thank So our employees to continue of America call, the all to trends closely North the place, in safe we we follow been COVID The steadfast have Europe, disruptions this you. have have providing protocols team and listening remain in our on place across IDEX troubling members those work. the operations a developments for in limited. India and Because in to and

during products a us quickly able performance continue our pandemic. new Bill as will a I'm to to deliver ability primary walk execution hit strategy, testament free cash challenging through year, the we resiliency. our focusing drive pandemic our say the focus a a true this our strong react to against events, was record long-term flow solutions We innovation year. support XXXX, our critical details help customer strong to need were in unpredictable we as to helped Liquidity focused to to and for to shortly. that the strategy With producing as of management deliver well happy relatively fight and on customers the the

of bullishness the a in see address path for front we challenges us, XXXX. As we to

and improve. weather few diversity our market will capitalize in seen have slides. we any end quickly in that We steady well, ensuring when to of a quality a detail businesses our continues conditions and which The serve markets, can recovery storm we us

customers prepare commercial still to the see ravages back core focus world and a from a starting endeavors, to are While we for pivot our healed pandemic to solve, challenges of as presents the many COVID-XX. we

strengthen Our react Are year a strong increased our and If predicted. supply businesses IDEX are year rooted chains a It the we to and none at mission culture important tied of and you leverage and is is us so, and A diversity we diverse company have IDEX values admired company proud support we operating of even culture on equity to live like better We built commitment by us to demands. prepared our of but company. culture leverage safely IDEX. even well to and bind XXXX and and decentralized could to of uniquely prepared focused can this remain I'm it kind aspect have it to people that together truly ever survive be directly believe? still. is harder inclusion that many, a our and to served work differentiation. you'll really thrive. the of in test in

as and Our forward. agility off we resiliency, aggressively have exceptionally fundamental well execute play ability as IDEX positioned move to to

to bolster calculated deal growth ABEL acquire and to IDEX-like to on new further our as investing Pumps well potential and up bets expanding announced as strengthen we growth an January, our shareholders. our organic exciting and and to our return the our acquire In We strategic support some are spending first in markets deploy M&A technologies, make acquisitions. close quarter. additional we to bets expect ramped enhance moving to best are have capital our that capabilities are We again in actively The portfolio capital businesses, seek support agreement very to actively to to we initiatives. execute to

seven. Moving to slide

things teachable orientation towards of their superior IDEX a focused As with methodology I in on just the needs culture a natural mentioned, where that the most teams the great comes the matter critical strength important a of customers. IDEX from together working difference,

impact of live one took leadership the positively forward are to making employees culture significant which as work, Our day. IDEX on significant every the which was Last received as fully and in $X committed for efforts. of a of step we donation ongoing giving. communities to funded To activities equity double feedback we its its disadvantaged foundation across communities. from part is focus million and in end, a annual of the that IDEX opportunities we improvements priorities. lasting The boost key than sponsored Foundation, more This a the allows underserved month company. created part mission, and color foundation people creating formerly based added my to these our our and opportunity

been around our our more from in will and help a all framework than top will renovating focus opportunities priority. have our program dozen like This people. something and we In will for addition the groups world. our Developing focused the work community learning the making leadership equity the goals supporting continue communities for we initiatives it shape on a have building in schools people homes our young homeless, to diversity facilitative for inclusion. and great centers, doing feedback host The deployed at and month, is DE&I we formal employee equity level a employees forward path senior opportunity,

a As commitment, DE&I later intend to reporting to directly place in have part that leader Senior of year. I me this

to continue as and will key of element differentiation. a We culture our grow advance

commitment have that. on my You

results that the We of continued improvement organic quarter the compared Broad quarter. third quarter year. fourth rates slide the third commercial the the discussed prior our orders as to quarter eight. entered to order now optimism strength continued with and the into our in in quarter rebound up based fourth Turning on were we X% on

recovery new in industrial day sciences orders agriculture rate organic driven blanket boost were in and quarter large initiatives by product businesses on in quarter. orders water life timing orders businesses. continuing businesses. to in the in for the by order and and X% recovery our the up our improved FMT Solutions Excluding in quarter, fourth up strength X%, Sealing continued HST year-over-year, auto throughout monthly fourth orders driven OEM organic our the semicon rates were project

lines. & the for were refreshes X% Finally, began slowdown general and quarter were several we talked & in XX% flat significant Safety/Diversified And to saw pent-up saw we industrial for back growth improvement IDEX. entered Safety looked on that we retailers about Fire what in banded year to a Dispensing X% based in organic ago, down auto improve strength. Fire like to XXXX, as market to product release world a the A seeing demand bounce orders the quarter. after third up equipment continued strong as

We have then these to purpose. We it to responded faced we taken and pandemic address factors. strategic with proactively the the actions onset of

and As we quickly optimistic are close we are us XXXX forward, a move on levels. XXXX XXXX The and XXXX. out pre-COVID and units we look into left well as we have in that took markets to actions that path positioned our

we that OpEx We quarter this last in continue our nine. outlook slide our In increase Technology further needs to segment, provide markets. Fluid of Metering largely up to end our by for fourth primary We quarter. the current the customers. driven industrial solidifying day optimism rates & tick see Turning discussed

We on required capital continue We signs the of are timing investment COVID to hold. recovery projects of economic is anticipate on discussions degrees happening. remain stability to and large begin certainty higher again. before But that see capital move projects broader

dependent we've Water we strength show Stabilization new agriculture challenged monitoring grow on Our business beyond. budgets is compared gas. to of in quarters called capital has continued are will investments in toll and previous it still XXXX continued that The expect closely remain and that and prices levels. two markets and municipal for take driving continue to to has XXXX XXXX. businesses in XXXX with resiliency markets Energy in down we largely fuel in the increases to out these oil the on

Health Science to Turning and Technologies the segment.

across about our revenue to amount segments $XX identified these discussed million generate COVID initiatives. in last approximately we XXXX the expect opportunities and in were help to we have We of quarter of but each same drive XXXX to to in and As fight particularly applications related able HST.

generate in of and technologies some we this is opportunities believe revenue we beyond. nature, the in will here and recurring have one-time While developed applications XXXX

in of focused sciences, the to initiatives. improved million we on is to about on looks IVD/BIO we response AI strength The $XX offset our to weakness we last in has mentioned projects relative putting $XXX an achieve during by we'll on continued saw highlighted, million semicon quarter other fourth in still XXXX. and hold lab be COVID that as opportunities life In capacity million. continued. and largely quarter rebound the $XX So,

for continue strength the also recovery automotive. driven Food MPT a from XXXX market, our business addition businesses In rebound and European business. spot auto India. and particularly see our China remained growth in by as and has benefited projects continued car benefit pharma in Microfluidics from ceilings bright to sales in in a has We in

was increase retailers demand the in strength improvement with segment, most markets. driver for our we as in Safety/Diversified the The refreshes, largest of Fire order large & to continued markets. significant equipment Moving market Asia the combined dispensing saw in improvement dispensing the

continues recovery on recovery our continued exceed referenced Rescue auto to the concerns of seeing businesses that believe OEM pace the to expectations the in strong some previously, Fire businesses & we the mentioned order As see we BAND-IT last quarter. we a of driving business. through springing and performance backlog in delays are

budgets to on with any there businesses, spending. As monitor our COVID to municipal we effects impact see closely from response if all the continue lagging are

As market to I about potential of the recovery we for our seeing we need are particularly first interruptions, my we markets. the optimistic half in in highlighted XXXX. previous of remarks, are be prepared most And across

the seeing over shown year. Our And With and ride financial have able as well the us we full to we're proactively. of businesses, it ability our turn discuss exit actions results short-term positive momentum, the across teams taken these be to I'll shocks strategic our for that, we to address quarter the the to pandemic. have Bill positioned has issue to the

Bill Grogan

XX. each I'll our with were $XXX million QX our start drivers X% by and Eric. in Eric on Organic comments. overall previous of orders with up segments, up financial increased slide across organically. consolidated his Thanks, results highlighted orders XX% of

up down orders X% down second XX% quarter recovery of pandemic. X% and with organically, X% height of organic saw million For the at but $XXX Fourth the organic overall quarter, quarter offsetting strong in partially overall, were order order the fourth we sales organically. were the X% the the in down year decline

MPT the positive Our a businesses. X% impact of have decline, of billion the by and industrial reporting did down and gas. in and dispensing of were points softness contracted XX% led sales volume growth units but led margins driven and basis ceilings overall $X.X challenges around strong year partially XX.X%, by decline markets oil and our mix, sales organically, COVID, to gross X% offset by performance XX by Full our energy QX driven industrial organic in of down price capture. and market unfavorable in

basis XXX contracted full gross year, the For points. margins

margin the XX.X%, volume basis compared offset XX.X% quarter Full capture to operational operating basis points XXX for in discuss XX.X% XXX sales to impact prior XX adjusted was was operating margin ability to gross year by our compared was and prior margin basis down XXXX. price slide. the following to drive XX quarter, Excluding of for FMD declines up inventory by XX.X%, basis to the down compared of continued up operating I'll basis mix, year XX.X% margins step-up, Fourth points year. on Adjusted XXX income points contracted driven compared the operating to year, the productivity. the year. prior the drivers points fourth points and

adjusted changes foreign quarter which of income $XXX adjusted the the down rate XX.X%, was due revaluation than or was net higher net an tax foreign in million, EPS driven up prior in year EPS. income of by resulting prior Our X% to to tax of deferred Full in rates. QX $XXX tax effective XX.X%, year compared was income Fourth XX% of prior was adjusted over $X.XX, year. $X.XX ETR $X.XX adjusted or $X.XX, resulting balances EPS million, year

quarter was XXX% for year to was of adjusted net up flow cash free X% the million, compared Finally, income. and $XXX prior

$XXX For driven net capital flow year, million, and year record income the by performance. working versus was free last strong IDEX, of XXX% for up adjusted X% cash a

year to review our on We're Moving operating XX. going to income. slide full adjusted

have walk year. adjusted our we previous the we income actions full to were for the XXXX, year Using volume million at actions rate. net in expected in $XX Eric $XX million, would two a the million components $XX operating productivity price from mentioned, on and income negative to discretionary operational through of structural and negative of faced $XXX roughly $XX executed margins. took impact mix. with operating impact of by With contribution As of of the million down XX% Adjusted lessen framework challenges as we million wanted sales around actions, million combined of items income restructuring and offset the we $XXX but declined cost quarters, income. discretionary our the $XXX million we similar control margin and have operating organic impact critical million The for $XX a unprecedented was business

focused top Again $XX team's to and income $X the yielded a we variable than less Overall, of mitigate of on $X compensation to for well million sales year. the declines op Finally, organic revenue based line million on and IDEX the million reported expected the we reduced the expect of had profit. flow-through crisis recovery quickly leverage managing of taking better and acquisitions, This FX impact XX%. costs has which on hand flow-through is and and positioned was at managing our XXXX. in effectively roughly

to expected depending impact organic the X%. This to market up year be roughly slide Moving top to and line EPS on on for to rates and XXXX of see to an accelerating an $X.XX on expect translates I'm on guidance, $X.XX order our recoveries, results. XX. revenue current Based we X%

productivity than offset The structural initiatives benefits. our taken cost expected have $X.XX actions to $X.XX providing expect of EPS in provide to we We benefit inflation more the year. are of

As opportunities. we both in pandemic inorganic aggressively we move the organic will invest past and

discretionary cost business As loosen will controls as we appropriate. recovers

return to over we expect discretionary approximately time. As two-thirds the cost previously, of mentioned

guidance. organic integrate of our enhance as Additionally, in view opportunities approximately as investments These strategic enhance as to will add-backs we fund critical to growth investments we initiatives. $X.XX this targeted capabilities, execute our to $X.XX time our will discretionary continue XXXX well be M&A our and provide making pressure ability to to a and as

$X.XX our we $X.XX variable anticipate reset from incentive for as headwind comp compensation we year. to the Next

has expect op will second structural of in back get FMD which made situation provide on The have inorganic quarter. Finally X/X revenue, to we we of profit FMD profile provide $X.XX FMD's improve positive energy market the but results of the to profit the $X pressure. to million based in actions EPS

couple a items. take non-operational at let's look a Now of

with expect and we vesting exercising. an discrete XXXX benefits primarily equity associated realized we option related headwind in tax First $X.XX from to

expect a Second, providing of EPS benefit. FX tailwind we X% from $X.XX

revenue in to XX% EPS X% expectations we XXXX. a projecting growth summary X% over to to and for organic the in $X.XX, So the X% are of range of increase are $X.XX year

Slide to Moving XX.

operating XXXX additional for growth Let to of are regarding XX.X%. and organic is be of full tax $X.XX me X% provide to QX we XX%. and The $X.XX range QX both our some with to guidance details first the approximately revenue quarter year. X% projecting In EPS approximately margins rate expected from effective to

and from first be expect the the FX to $XX benefit of expected costs impact around We X% line million. top in are corporate quarter a

Turning additional full projecting we're XX.X% the operating revenue details year in full year $X.XX with to be organic range to year to for full up with to of EPS $X.XX X% to between some XX.X%. Again the guidance. X% margins

the We benefit expenditures around expected cash expected to to between results. expect to provide $XX to year is are XXX% to expected anticipated Corporate rate to income. million. X% The tax be Capital $XX FX approximately effective And is are full around be for XX%. of costs year. be top XXX% flow be free million a to net line

we throw thoughts. our closed. With is restructuring or will final in guidance with charges. for future Pump any that or Eric revise earnings acquisitions not back to cost excludes once Abel that these Finally deal associated earnings it included estimates guidance I'll and is some

Eric Ashleman

Bill. Thanks

questions, consider in a contributions employees like environment. and thank stakeholders I execution to to I challenging our for would again exceptional their Before once what

proven and resilience the in the clearly of our businesses our have impact difference We demonstrated model. of the operating IDEX

I questions. will the of other is on the our are and this it focus woods well to a on growth the to priorities that your the of side that the that accelerate out completely pause pandemic. optimism. operator not time With And businesses let me positioned critical over turn are our we believe While for for

Operator

[Operator Poliniak from question. question Instructions] with the of Wells line comes with Allison your Our first Please proceed Fargo.

Allison Poliniak

Want us means technology if opportunities a could you little then to how the has on of to comment M&A? there, bit or reconciling also color go and and back with terms verticals? investing that with And there's size IDEX on M&A concept give your this are in of those you held discipline maybe that historical of Eric always what

Eric Ashleman

Allison. Thank talk Well you it's to Yes. great you. to

a we is we So look no in dynamic lot. it talked of about I -- technology flying that a already a And compressed bit doubt obviously the cycle before think little here way. was kind

So that as we're thinking internally, at and outside world. think like going from analytical bets I mean some it have we you a IDEX, -- but of to data to we're this a thinking organic of lot products of about component I range things do that we're going that no about sensors we're down doubt it's appropriate technologies. going And be have that to think can development that the might of in to for businesses other From readouts. nature. come to and as probably our more

we're some to that to and the to provide and going take it's severe come some able outcome of that determinant our So space customers. inputs in duty to up a present

to often that inorganic us especially you're looking differentiated speed, and -- the is the the to our would frankly control speed in the I ability No the be business. assets give software everything some stick some at doubt, pieces nice think that way that think can different next and when in work sit gamut I on embedded on there very So just up a would it edge. elements economics think that solution to run pieces ultimately out will some side impact And going a comfortably we of and ways. to call be from might sensors from

doors. And well, to as challenge closer think teams lead bring value of it a in creation customers so solution about terms in to how extend we other our our to different way open might us

about look of on team; a what an our heads as putting that it. but the So IDEX like for team excited we're really I and rest senior of lot awful we're will that and time the Bill spending together and and

Allison Poliniak-Cusic

as That's then inquiries forward sounds your or balance that sounds there. you're to increase helpful. But go you a comment Just sort it's like into pent-up of feeling want people the to It like any theme I thoughts balance of there. of And XXXX? out to Are capital there's just look be kind like the projects. almost reopening of going getting to starting some there. like they're on starting this potentially demand

Eric Ashleman

so. think I Well Yes.

of I of is to improvement segment come day QX business the as that need support know the just mean, that a And have problems behind a that's shifts. are. we've feel, system working. The applications good that to understood. there's virus much you don't you can of discussions And But project and order general. feel the to solve And we and say points that. side output. they in course some it the take lot just There's in we in the that rate As There's and seen there of I from. ton the that it's that you that can adding ahead of important discussions we more I'll on And that's see the actual more especially next QX as that optimism see support that the and spec People where around building. take the of that the with are coming virus then kind along level. yet I an we as would and particularly FMD becomes the component of numbers will coming think we

Allison Poliniak-Cusic

Thanks it a pass I’ll along. lot. Great.

Eric Ashleman

Thanks, Allison.

Operator

Markets. Dray comes line Capital of Please RBC with Our Deane proceed your with next question from question. the

Deane Dray

everyone. you. Thank Good morning,

Eric Ashleman

Deane. Hi,

Deane Dray

Hey, Eric.

So congratulations.

where could results it high-level us at come back. just lot be the there here the I thinking you you're it as But seeing where focus IDEX IDEX like and any look share is just You way the XX:XX strokes and vintage how think of on quality quarter now now? you'll the broad be imprint about differently your And a you like but with focusing as looks – earnings belt. get of an first just here bit the your thoughts we might and under suspected do CEO? that continued incrementals Eric Is a little

Eric Ashleman

Yes. cultural think actually my I aspects. would mean of we Look comments. on Sure Deane. with start opening it touched I some in I the

we think we've we nimble in I culture lot a to of correct I an as rest things we comes to really as allows the of focus well been of a as have Bill it what have one reasons organizational without here mean team. and that mentality performed terms built as frankly coming course really back from on control us of the and the or I we or

and lot we've some to capitalize back So that recognizing of in a going Then I'm pieces lot bear. bit the companies, of put that's we're probably as over in an to a a how a time response. of company bring got we even can uniquely and on is the but to I of that level the then tackle layer engine really even the that not end think I overdoing environment And thinking because built of that, I that technology on a have to sure in next IDEX, thoughtful sets important. capital frankly that a has work. here tough of some different awful it iterative environment thinking that The place and with of frankly environment's really resources, of how last hugely spending we around to question not comments difficult of Allison's answer can things around an center-led that's doing with to we're the lot ways appropriate make more the where of positioned evolution a and we that's focused states across team we're kind think, partially to very going the there and it two lot some years. I depending more on focused at focus the solution allocation certainly how we mean just would a

Deane Dray

the given think some that I about That's really through. good how helpful. the walked as you've helpful, insight was bridge Bill into end And thinking Page us especially that was you're X markets,

like for So that up is about outlook, the that taking. a moment because if there's on muni couple two But more I are COVID and and two of & different Fire water, times take pieces talked areas? be muni Rescue where could budgets to But your assumptions ask little those what spending to which on just is came here tends your more toll muni. more One specifics a on resilient in you a CapEx.

Eric Ashleman

watching mean, doubt no I focus. Yes. lot a area an that's that definitely we're of with

As markets awful I lot. those tend an you to lag know, mean

against and that many exposure some on a bad it times is of something in think we're it happens you then of work so And read two the the particularly that takes of world it, top buffered it. for kind our areas important while that to if course, And through. of of layered mentioned, you very doing

side, side the on and water heavily the support. analytical towards we're So tilted analytical services

system have. out turn another they into to that do make to of water on infrastructure that has to a stepped Frankly, if I system they're if of heavy – And mean era, an might side, there. have the our so the often kind even dynamic we a work a up go compliance delay us sure environmental lay some the leveraging that also bit, where has helps that's do kind they with make infrastructure, to

trend that watching against and that's budget budget other around support sort that of So assurance. are we

one the resiliency. most & global have. So but is see kind this again there stories of the working two Fire together same we are Rescue, we of that that things

and funding source so to And a doubt are something mature about more correct the where in – going come we're that of thinking is no course, from considering But the here. we is that bit spaces CapEx purchases, we always tracking.

the a technology it's great we've the of And lot in a and different ground. presence some emerging on and where so frankly people markets of story got

So as think global on us well. you all dynamics same side that doubt breadth that I no helps are. But watching that the we're

we forward, the all think we're support -- backstopping there's As go or we're but see to not over world if and we positioned. looking well and

Deane Dray

Thank it. you. Appreciate

Eric Ashleman

Thanks, Deane.

Operator

of question comes the Please Baird. with Mike W. your line with next Robert Halloran proceed Our question. from

Mike Halloran

morning everyone. Hey, good

Eric Ashleman

Mike. Hi,

Mike Halloran

So how in optimism And means to their to you channel customers years? guess the those the do in -- that any Obviously, Really comments. is having like, look curve optimism And how on year much I about how the let's are commentary more about embedded optimism here. thinking as good spend start and conversations? work on that trends there thinking of the hear. you one demand Is you're what How patterns understand is couple you through here? tail think range? that when are that what the next the for guidance

Bill Grogan

off Mike in segments, to bit first to that's quarter, and side. you first between think, HST with kind the the and about need the improvement end our you your at through middle as of start the When progress maybe achieve little of X% each question and X% the how to of it's in where reasonable. we is a high the thinking the lower we I relative through the there the guidance, we are gradual we're on think about consistent that to sequential year. pacing the year part X% look a on I'll X% improvement kind FMT quarter When FSD

in we So, year phase looking any as year. through or will But progress generally minus. And that targeted growth inflect quarter significant growth that through the that plus sequential not improvements obviously, small specific we we the could for progress. balanced we're with as some have things out

Eric Ashleman

going is we're point most We calling around level of but I good sort to, And again the we're be Mike but doubt, think machines assurance. pent-up running, this certainly we'd keep it's in uncertainty. a such provides least in piece on with that recognize, many energy times, open, borders has would a that of be is what the it to terms the participate of another go there's to that lot mean, world some keep there. assurance internal the might difficult predictable There's things I mitigation continue It just at all broadly Yes. exposure. And stuff no think on at things that. product then virus released -- the keep in of is more of we've people signs lot point. certainly factories of way, going And some continue to at a broad found one IDEX noticed I if would where moving. keep ways

Mike Halloran

question thoughts just some they And for third supply cost like? channel thinking chains what dynamics? look about look price you on how are specifically; So, maybe then you lastly, how inventories

Eric Ashleman

-- coasts. sure. the of everybody the in we're as the both to that wrong not in Yes no issues stuff. mean, seeing frankly, the tricky containers clogged staffing just the some the of On mean, all And there's sky. got is aircraft up well are that maneuver. places I I And they've in else. are ports with and supply chain doubt as enough

we're that. So not immune to

supply our However, as terms localized localized in very of It's sell-through you generally know, our markets. our we production are very and a model. into

the and react that been we and of go every kind for back the can going lot a And frankly to we while up virus to we've so where now And this I we Tuesday more around of key how it think and we're experience tariffs the have able go-forward and we horn that supply us. don't terms flexible. fortunately And navigating people kind things about talking about quite we of probably at chains. navigate where like a were assumption that's day about a have Our holding same even supply thinking times sources for in more lot how of that we're relative how make talk around of been the levels both frankly the teams to to

Mike Halloran

Appreciate it. Thank you.

Eric Ashleman

Mike. Thanks

Operator

comes next of your D.A. Davidson. Summerville proceed Matt the Our line with from question. with Please question

Matt Summerville

about Thanks you about of mind well. and wouldn't got order things quarter? the the to far that experienced little like talk and overlay good It sounds bit some better in cadence Can maybe January geographic you through seen you adding a guys. if you've morning as what so

Eric Ashleman

Yes.

made progress quarter as relatively day through march timing remarks that order the continued the we absolute blanket month order our some across that the we improvement January there it and But with numbers that's positive bit choppy. all sequential month of indicator for of improvement little the businesses. broad-based we OEM had little in a pattern fourth bit We continue to through So the rate quarter. the mentioned the look another businesses on a was of to our things as prepared

North in improving. a sequentially where energy lowest strong Europe. On core because the but Asia And the was and geographic of of performance only a was side, industrial that's I our lagged hey the X the in again was think bit America it of little out still It really is. most exposure area only that

Matt Summerville

IDEX should we the for some it lumpiness would around of cadence sort periods. dispensing's Is a to bit. piece thinking imagine then because received models? of small still of FSD a some I fairly we can pertains you orders that as bounce future it of And any fine-tune as of about overall FSD sequential kind our of there realizing be maybe

Eric Ashleman

a year two for part the did three year I pace the a for the out receive quarters, quarters would It's first maybe of weighted heavily going the order more several Yes. some towards obviously full the little for from say most dispensing. bit customers. strong to we quarter first it's through orders because

Matt Summerville

Great. Thank you.

Operator

next of line Graham Securities. your with comes Please the from question. Our Rosenblatt proceed Scott with question

Scott Graham

good first on quarter. Hey, congratulations morning. your Eric Good solo luck.

Eric Ashleman

you, Scott. Thank

Scott Graham

that's that XQ, I going what suggests pretty as that in little year, of to bit X% which specifically be a at to growth wanted improvement level more sort a year kind healthy X% in the markets of but in get are drivers are looking you're for the that the to FMT the saying for And of your FMT, pretty the obviously progresses? maybe middle steady, you're XQ, XQ. organic maybe where So like on

Eric Ashleman

broad the honestly catch-all know, FMT wide of Scott, – it you such as mean, runs But is industrial it a of variety I mean, gamut. collection I markets. Well, a

related highways is So and work – there. infrastructure starting on in and participate food of well. to to build-out things production Anything as there going we're to and buildings

back it the our industrial chemical in is got that We've it. that's largely day in kind presence just the chapter broad-based that of rates kind first there. of support sort really of of sector coming the significant kind sector to mean, I a life. from of coming So mature geographic markets

I the are about projects funded. on earlier starting come that to think talked get we starting to

things sort it's stick picture as of in not together I would like two out there. pretty it. see of think hockey world it just a what that's the the We sort those as line like continues mean, put steady the a We You look march. heals.

Scott Graham

for that in Right. Well, us past share of you the day to from idea, your guys enough versus an one you're I been that have Bill with shorter sense. includes which so that? makes exit kind OpEx kind rate give us are the was What revenues you. know Could you rates on CapEx. cycle, the

Bill Grogan

to picking I comments projects, relative would say, think larger up. it's to capital more heavily the conversations those are OpEx Again Eric's the around related. I

in We those relative book through the haven't seen to increase falling unknown. significant a order things

Scott Graham

say is run now? XX%, you OpEx that Bill maybe of Would revenue rate right XX% the

Bill Grogan

or minus. around plus Yeah, It's there.

Scott Graham

Thanks. Great.

Eric Ashleman

Thanks, Scott.

Operator

Our next Andrew question with the with of Berenberg. your comes Please question. from line Buscaglia proceed

Andrew Buscaglia

second. wanted Good Technologies morning, focus Science guys. to on & Health I for a

takes in the revenue-wise. So some elsewhere the 'm what year? with flow analytically we're other going are the you and are But more and just that with the don't seeing – I what in roughly companies. in throughout XXXX what that sciences it instrumentation to coming surprised of throughout and I stable is given in how seeing gave you and guess, year? actually kind on thought know. Because color business seems I ebb life is that puts tests segment there the line you what rapid

Eric Ashleman

mean, there It services. related street analytical headwinds for business. think down sciences like the it's last pretty and a the year did did faced Well, up instrumentation of a a I fourth lot some I quarter it nice – in see and of things was life mature for medical the story sort look to AI. back obviously We us analytical bounce

kind be we go its more of of I much on got capital tends dependent come most also and historical which The forward. consumable the on we stream purchases and rates kind that's as people It's returns of of that's the has one pretty it. where mature side, sort think IVD/BIO it then in. to to a still pressure labs that going is and ahead that's visiting out

then And to get So do of offset to we works the consider story. all. that this the related the AI a we quickly, of obviously, the most is rapid the dynamic of test bit dynamic pretty genomics. And more an into in them that pieces

So together. put all that we

world look think remains around program. it. And all doing still of doing to biggest work now. single this right We that think general here. robust in out needs well lay I It's tried is positioned testing in But a we're we that say us I for the that sector. that catalyst we're the would obviously the work

Andrew Buscaglia

– followed to what year, XXXX looking rank the for Is I probably organically? I trends full safe Fluid order guess Okay. guess, or say Safety, orders based then HST & on is you – to can your and out Fire those by leads it & Metering order

Bill Grogan

orders For or sales?

Andrew Buscaglia

I sales For mean.

Bill Grogan

earlier. a little No, think I I bit mentioned Yeah.

on the FSD's the FMC higher end on the end. middle I is low down and think is HST probably

– you picked If

Andrew Buscaglia

Okay.

Sorry that. I missed

M&A, HST on On just Anything or Okay. last perking indicated broadly that any one in there ago you update just – were some there one. then M&A? And deals guys up. or a quarter anything two

Eric Ashleman

I here, as at a questions lot comments look got said the some frankly I beginning of and in mean, the three in we've work both all in on the segments. going Well, the of –

I other. all So associated that the positioned got good we've wouldn't all teams in opportunities places we're one and mean tilted I three. got say, three. in in is more in than We've focused where

So, it, landed or to color hesitate one I'd as another. way

Andrew Buscaglia

Okay. All right. Thank you guys.

Operator

from with Giordano next Joseph line Our questions. your Instructions] question Please proceed [Operator comes Cowen. of the with

Francisco Amador

can on Joe. obviously which your are you headlines morning. for incremental potential Good to just to some that, X cuts ask provide coming you How shortage very exposed there, I from We've automotive. is helpful, some semiconductors. wanted commentary to general production on is guys. if thoughts regards with on Francisco in seen This please? Hey slide and the

Eric Ashleman

still to same have we've Yeah. mean, Well, which this there electronics doubt, I of seen headlines. of mean, is side. the we no small piece IDEX. the businesses mean, a I relatively of and couple exposure in none a is I related

those that to that industry for of the an platforms. market. and far then we're And through seen being team is see able I more job was kind done our we parts momentum secure focused, years. more more technologies And then, look, has so our would and is of a in and there largely over The year. the what to most recovery of of decent think of more wins the out several And introduce then, frankly, players great So, wings. the of -- growth actually just run shutdown growth them we've people, where

a interruption. area a to the couple same got in platform seen But And good the we not So, wins haven't we've in businesses. of that exposure big of part spends. really again, we're sort

Francisco Amador

months? in And think favorable would to Thanks. M&A back point you to on environment, That's of it at last the the and high of that, people topic, just that just as pretty were than sell. were guys multiples How you the ago? quickly quarters changed still I willing mentioned, a say, helpful. was going it's maybe some has more couple not couple

Eric Ashleman

the flow because is like that that of here. rich. two sale And maybe some high continues generally kind better. of grow, those properties certainly insurance, I it put that, we're mean, together in with things and for the I would to kind confidence confidence Well, of say, same And the valuation citing of remains of seeing the we're and things

high teams got But, We the -- building think certainly a have levels as work We the stay franchises for firepower and we to demonstrated value we've we're both of in challenge to ability of drive elevated us. forward. now. the will thinking we That's execute these the frankly and terms before. was company. think So, do the it's the the at in around go it think valuation high

Francisco Amador

very much. you Thank Great.

Eric Ashleman

you. Thank

Operator

call questions back the no to queue. for I'd hand remarks. the are in closing to like There further management,

Eric Ashleman

thanks for lot hey, this always Well, a I everybody there's well. And know joining. that folks join call IDEX as Okay. of

everybody work I and again to for year a the IDEX across really already really, once thank, -- execution XXXX want to to here. frankly want start do I the in So, and solid great hard

there. you thank for your efforts So

going mean, as how can here. And -- is. But leaning No everybody quickly there. think forward. resilient of pretty I better than things anything correct kind in XXXX, of cautiously out are company lot how doubt, we if you optimistic we And see, course many. generally does that, and our uncertainty think, I we're it's still where we're I think bullish. I We're that's can we're about, there's a learned

we've focus. the others. And and the teams. So, be the people and got We've We've leading with just I'm really, really Bill got charge got in to here place. pleased

So, today. thanks for your interest and time

Operator

Ladies and for your participation. gentlemen, this teleconference. Thank does conclude today's you

a have disconnect You lines, this day. And wonderful your may time. at

IDEX (IEX) 4 Feb 212020 Q4 Earnings call transcript