(State or other jurisdiction | (Commission File Number) | (IRS Employer | ||||||||||||
of incorporation) | Identification No.) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | ||||||||||||
Emerging growth company | ||||||||||||||||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ |
IDEX CORPORATION | ||||||||
By: | /s/ WILLIAM K. GROGAN | |||||||
William K. Grogan | ||||||||
Senior Vice President and Chief Financial Officer | ||||||||
July 24, 2020 |
Exhibit Number | Description | |||||||
“I want to thank our employees around the world for their exceptional work over the past several months under the most difficult circumstances. With safety as our first priority, these women and men continued to provide our essential products across the globe while adhering to a myriad of new safety protocols, from taking temperatures to social distancing and face coverings. The second quarter of 2020 was unprecedented, but the resiliency of our businesses and the resolve of our teams were on full display, with strong operating performance and the fast-track development of several new products to support the battle against COVID-19. | |||||
The global health pandemic continued to impact our commercial performance, with second quarter organic orders decreasing 18 percent and organic sales decreasing 17 percent. Sales of $561 million drove adjusted operating margin of 21.1 percent and adjusted EPS of $1.10. Our recent acquisitions negatively impacted adjusted gross margin and adjusted operating margin by 100 basis points and 70 basis points, respectively. As expected with the steep decline in revenue, the balance sheet delevered resulting in record quarterly free cash flow of $161 million. We ended the quarter with record cash of $746 million and nearly $800 million available under our revolving credit facility. Our balance sheet and liquidity position are key strengths and we are well positioned to deploy capital when opportunities arise. | |||||
Our business continues to demonstrate durability given the mission critical nature of our products. Our businesses and products supporting maintenance, repair and operating fared better than our businesses and products that are more reliant on the deployment of new capital. We believe we hit the bottom in the second quarter, but we still face much uncertainty regarding the future path of the economy due to the evolving global pandemic. As the timing and pace of an economic recovery are uncertain, we are unable to provide detailed financial guidance other than based on currently available information we now expect third quarter organic sales to be down approximately 12 to 17 percent versus prior year." | |||||
Andrew K. Silvernail | |||||
Chairman and Chief Executive Officer |
Three Months Ended June 30, 2020 | Six Months Ended June 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||
FMT | HST | FSDP | IDEX | FMT | HST | FSDP | IDEX | ||||||||||||||||||||||||||||||||||||||||
Change in net sales | (11) | % | (7) | % | (23) | % | (13) | % | (9) | % | (4) | % | (15) | % | (9) | % | |||||||||||||||||||||||||||||||
- Net impact from acquisitions | 10 | % | 4 | % | — | % | 5 | % | 5 | % | 4 | % | — | % | 3 | % | |||||||||||||||||||||||||||||||
- Impact from FX | (1) | % | (1) | % | (1) | % | (1) | % | (1) | % | (1) | % | (1) | % | (1) | % | |||||||||||||||||||||||||||||||
Change in organic net sales | (20) | % | (10) | % | (22) | % | (17) | % | (13) | % | (7) | % | (14) | % | (11) | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Gross profit | $ | 234,800 | $ | 292,337 | $ | 506,756 | $ | 576,171 | |||||||||||||||
+ Fair value inventory step-up charge | 4,107 | — | 4,107 | — | |||||||||||||||||||
Adjusted gross profit | $ | 238,907 | $ | 292,337 | $ | 510,863 | $ | 576,171 | |||||||||||||||
Net sales | $ | 561,249 | $ | 642,099 | $ | 1,155,711 | $ | 1,264,330 | |||||||||||||||
Gross margin | 41.8 | % | 45.5 | % | 43.8 | % | 45.6 | % | |||||||||||||||
Adjusted gross margin | 42.6 | % | 45.5 | % | 44.2 | % | 45.6 | % |
Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FMT | HST | FSDP | Corporate | IDEX | FMT | HST | FSDP | Corporate | IDEX | ||||||||||||||||||||||||||||||||||||||||||||||||||
Reported operating income (loss) | $ | 50,938 | $ | 48,007 | $ | 28,837 | $ | (17,188) | $ | 110,594 | $ | 74,146 | $ | 56,763 | $ | 43,614 | $ | (19,240) | $ | 155,283 | |||||||||||||||||||||||||||||||||||||||
+ Restructuring expenses | 1,848 | 1,184 | 641 | 168 | 3,841 | 930 | 330 | 819 | 47 | 2,126 | |||||||||||||||||||||||||||||||||||||||||||||||||
+ Fair value inventory step-up charge | 4,107 | — | — | — | 4,107 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted operating income (loss) | $ | 56,893 | $ | 49,191 | $ | 29,478 | $ | (17,020) | $ | 118,542 | $ | 75,076 | $ | 57,093 | $ | 44,433 | $ | (19,193) | $ | 157,409 | |||||||||||||||||||||||||||||||||||||||
Net sales (eliminations) | $ | 219,112 | $ | 215,668 | $ | 127,076 | $ | (607) | $ | 561,249 | $ | 246,189 | $ | 232,253 | $ | 164,043 | $ | (386) | $ | 642,099 | |||||||||||||||||||||||||||||||||||||||
Reported operating margin | 23.2 | % | 22.3 | % | 22.7 | % | n/m | 19.7 | % | 30.1 | % | 24.4 | % | 26.6 | % | n/m | 24.2 | % | |||||||||||||||||||||||||||||||||||||||||
Adjusted operating margin | 26.0 | % | 22.8 | % | 23.2 | % | n/m | 21.1 | % | 30.5 | % | 24.6 | % | 27.1 | % | n/m | 24.5 | % |
Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FMT | HST | FSDP | Corporate | IDEX | FMT | HST | FSDP | Corporate | IDEX | ||||||||||||||||||||||||||||||||||||||||||||||||||
Reported operating income (loss) | $ | 117,709 | $ | 100,650 | $ | 66,874 | $ | (34,698) | $ | 250,535 | $ | 146,012 | $ | 110,917 | $ | 83,942 | $ | (37,806) | $ | 303,065 | |||||||||||||||||||||||||||||||||||||||
+ Restructuring expenses | 1,848 | 1,184 | 641 | 168 | 3,841 | 930 | 330 | 819 | 47 | 2,126 | |||||||||||||||||||||||||||||||||||||||||||||||||
+ Fair value inventory step-up charge | 4,107 | — | — | — | 4,107 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted operating income (loss) | $ | 123,664 | $ | 101,834 | $ | 67,515 | $ | (34,530) | $ | 258,483 | $ | 146,942 | $ | 111,247 | $ | 84,761 | $ | (37,759) | $ | 305,191 | |||||||||||||||||||||||||||||||||||||||
Net sales (eliminations) | $ | 445,973 | $ | 439,727 | $ | 271,400 | $ | (1,389) | $ | 1,155,711 | $ | 488,711 | $ | 457,543 | $ | 320,202 | $ | (2,126) | $ | 1,264,330 | |||||||||||||||||||||||||||||||||||||||
Reported operating margin | 26.4 | % | 22.9 | % | 24.6 | % | n/m | 21.7 | % | 29.9 | % | 24.2 | % | 26.2 | % | n/m | 24.0 | % | |||||||||||||||||||||||||||||||||||||||||
Adjusted operating margin | 27.7 | % | 23.2 | % | 24.9 | % | n/m | 22.4 | % | 30.1 | % | 24.3 | % | 26.5 | % | n/m | 24.1 | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Reported net income | $ | 70,864 | $ | 113,209 | $ | 172,862 | $ | 223,477 | |||||||||||||||
+ Restructuring expenses | 3,841 | 2,126 | 3,841 | 2,126 | |||||||||||||||||||
+ Tax impact on restructuring expenses | (837) | (560) | (837) | (560) | |||||||||||||||||||
+ Fair value inventory step-up charge | 4,107 | — | 4,107 | — | |||||||||||||||||||
+ Tax impact on fair value inventory step-up charge | (932) | — | (932) | — | |||||||||||||||||||
+ Loss on early debt redemption | 8,421 | — | 8,421 | — | |||||||||||||||||||
+ Tax impact on loss on early debt redemption | (1,912) | — | (1,912) | — | |||||||||||||||||||
Adjusted net income | $ | 83,552 | $ | 114,775 | $ | 185,550 | $ | 225,043 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Reported diluted EPS | $ | 0.93 | $ | 1.48 | $ | 2.27 | $ | 2.92 | |||||||||||||||
+ Restructuring expenses | 0.05 | 0.03 | 0.05 | 0.03 | |||||||||||||||||||
+ Tax impact on restructuring expenses | (0.01) | (0.01) | (0.01) | (0.01) | |||||||||||||||||||
+ Fair value inventory step-up charge | 0.05 | — | 0.05 | — | |||||||||||||||||||
+ Tax impact on fair value inventory step-up charge | (0.01) | — | (0.01) | — | |||||||||||||||||||
+ Loss on early debt redemption | 0.11 | — | 0.11 | — | |||||||||||||||||||
+ Tax impact on loss on early debt redemption | (0.02) | — | (0.02) | — | |||||||||||||||||||
Adjusted diluted EPS | $ | 1.10 | $ | 1.50 | $ | 2.44 | $ | 2.94 | |||||||||||||||
Diluted weighted average shares outstanding | 75,937 | 76,387 | 76,198 | 76,334 |
Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FMT | HST | FSDP | Corporate | IDEX | FMT | HST | FSDP | Corporate | IDEX | ||||||||||||||||||||||||||||||||||||||||||||||||||
Reported operating income (loss) | $ | 50,938 | $ | 48,007 | $ | 28,837 | $ | (17,188) | $ | 110,594 | $ | 74,146 | $ | 56,763 | $ | 43,614 | $ | (19,240) | $ | 155,283 | |||||||||||||||||||||||||||||||||||||||
- Other (income) expense - net | (82) | 472 | 123 | 5,947 | 6,460 | 239 | 80 | (140) | (557) | (378) | |||||||||||||||||||||||||||||||||||||||||||||||||
+ Depreciation and amortization | 6,809 | 9,917 | 3,796 | 104 | 20,626 | 5,640 | 9,635 | 3,717 | 172 | 19,164 | |||||||||||||||||||||||||||||||||||||||||||||||||
EBITDA | 57,829 | 57,452 | 32,510 | (23,031) | 124,760 | 79,547 | 66,318 | 47,471 | (18,511) | 174,825 | |||||||||||||||||||||||||||||||||||||||||||||||||
- Interest expense | 12,439 | 11,011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
- Provision for income taxes | 20,831 | 31,441 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
- Depreciation and amortization | 20,626 | 19,164 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reported net income | $ | 70,864 | $ | 113,209 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net sales (eliminations) | $ | 219,112 | $ | 215,668 | $ | 127,076 | $ | (607) | $ | 561,249 | $ | 246,189 | $ | 232,253 | $ | 164,043 | $ | (386) | $ | 642,099 | |||||||||||||||||||||||||||||||||||||||
Reported operating margin | 23.2 | % | 22.3 | % | 22.7 | % | n/m | 19.7 | % | 30.1 | % | 24.4 | % | 26.6 | % | n/m | 24.2 | % | |||||||||||||||||||||||||||||||||||||||||
EBITDA margin | 26.4 | % | 26.6 | % | 25.6 | % | n/m | 22.2 | % | 32.3 | % | 28.6 | % | 28.9 | % | n/m | 27.2 | % |
Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FMT | HST | FSDP | Corporate | IDEX | FMT | HST | FSDP | Corporate | IDEX | ||||||||||||||||||||||||||||||||||||||||||||||||||
Reported operating income (loss) | $ | 117,709 | $ | 100,650 | $ | 66,874 | $ | (34,698) | $ | 250,535 | $ | 146,012 | $ | 110,917 | $ | 83,942 | $ | (37,806) | $ | 303,065 | |||||||||||||||||||||||||||||||||||||||
- Other (income) expense - net | 684 | (59) | (192) | 7,592 | 8,025 | 317 | 364 | 365 | (1,564) | (518) | |||||||||||||||||||||||||||||||||||||||||||||||||
+ Depreciation and amortization | 12,207 | 20,576 | 7,555 | 285 | 40,623 | 11,146 | 19,142 | 7,179 | 356 | 37,823 | |||||||||||||||||||||||||||||||||||||||||||||||||
EBITDA | 129,232 | 121,285 | 74,621 | (42,005) | 283,133 | 156,841 | 129,695 | 90,756 | (35,886) | 341,406 | |||||||||||||||||||||||||||||||||||||||||||||||||
- Interest expense | 23,316 | 21,932 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
- Provision for income taxes | 46,332 | 58,174 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
- Depreciation and amortization | 40,623 | 37,823 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reported net income | $ | 172,862 | $ | 223,477 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net sales (eliminations) | $ | 445,973 | $ | 439,727 | $ | 271,400 | $ | (1,389) | $ | 1,155,711 | $ | 488,711 | $ | 457,543 | $ | 320,202 | $ | (2,126) | $ | 1,264,330 | |||||||||||||||||||||||||||||||||||||||
Reported operating margin | 26.4 | % | 22.9 | % | 24.6 | % | n/m | 21.7 | % | 29.9 | % | 24.2 | % | 26.2 | % | n/m | 24.0 | % | |||||||||||||||||||||||||||||||||||||||||
EBITDA margin | 29.0 | % | 27.6 | % | 27.5 | % | n/m | 24.5 | % | 32.1 | % | 28.3 | % | 28.3 | % | n/m | 27.0 | % |
Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FMT | HST | FSDP | Corporate | IDEX | FMT | HST | FSDP | Corporate | IDEX | ||||||||||||||||||||||||||||||||||||||||||||||||||
EBITDA(1) | $ | 57,829 | $ | 57,452 | $ | 32,510 | $ | (23,031) | $ | 124,760 | $ | 79,547 | $ | 66,318 | $ | 47,471 | $ | (18,511) | $ | 174,825 | |||||||||||||||||||||||||||||||||||||||
+ Restructuring expenses | 1,848 | 1,184 | 641 | 168 | 3,841 | 930 | 330 | 819 | 47 | 2,126 | |||||||||||||||||||||||||||||||||||||||||||||||||
+ Fair value inventory step-up charge | 4,107 | — | — | — | 4,107 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
+ Loss on early debt redemption | — | — | — | 8,421 | 8,421 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 63,784 | $ | 58,636 | $ | 33,151 | $ | (14,442) | $ | 141,129 | $ | 80,477 | $ | 66,648 | $ | 48,290 | $ | (18,464) | $ | 176,951 | |||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA margin | 29.1 | % | 27.2 | % | 26.1 | % | n/m | 25.1 | % | 32.7 | % | 28.7 | % | 29.4 | % | n/m | 27.6 | % |
Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FMT | HST | FSDP | Corporate | IDEX | FMT | HST | FSDP | Corporate | IDEX | ||||||||||||||||||||||||||||||||||||||||||||||||||
EBITDA(1) | $ | 129,232 | $ | 121,285 | $ | 74,621 | $ | (42,005) | $ | 283,133 | $ | 156,841 | $ | 129,695 | $ | 90,756 | $ | (35,886) | $ | 341,406 | |||||||||||||||||||||||||||||||||||||||
+ Restructuring expenses | 1,848 | 1,184 | 641 | 168 | 3,841 | 930 | 330 | 819 | 47 | 2,126 | |||||||||||||||||||||||||||||||||||||||||||||||||
+ Fair value inventory step-up charge | 4,107 | — | — | — | 4,107 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
+ Loss on early debt redemption | — | — | — | 8,421 | 8,421 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 135,187 | $ | 122,469 | $ | 75,262 | $ | (33,416) | $ | 299,502 | $ | 157,771 | $ | 130,025 | $ | 91,575 | $ | (35,839) | $ | 343,532 | |||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA margin | 30.3 | % | 27.9 | % | 27.7 | % | n/m | 25.9 | % | 32.3 | % | 28.4 | % | 28.6 | % | n/m | 27.2 | % |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||
June 30, | March 31, | June 30, | ||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2020 | 2019 | ||||||||||||||||||||||||||||
Cash flows from operating activities | $ | 169,453 | $ | 131,175 | $ | 84,760 | $ | 254,213 | $ | 219,838 | ||||||||||||||||||||||
- Capital expenditures | 8,323 | 12,867 | 12,762 | 21,085 | 25,742 | |||||||||||||||||||||||||||
Free cash flow | $ | 161,130 | $ | 118,308 | $ | 71,998 | $ | 233,128 | $ | 194,096 | ||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Net sales | $ | 561,249 | $ | 642,099 | $ | 1,155,711 | $ | 1,264,330 | |||||||||||||||
Cost of sales | 326,449 | 349,762 | 648,955 | 688,159 | |||||||||||||||||||
Gross profit | 234,800 | 292,337 | 506,756 | 576,171 | |||||||||||||||||||
Selling, general and administrative expenses | 120,365 | 134,928 | 252,380 | 270,980 | |||||||||||||||||||
Restructuring expenses | 3,841 | 2,126 | 3,841 | 2,126 | |||||||||||||||||||
Operating income | 110,594 | 155,283 | 250,535 | 303,065 | |||||||||||||||||||
Other (income) expense - net | 6,460 | (378) | 8,025 | (518) | |||||||||||||||||||
Interest expense | 12,439 | 11,011 | 23,316 | 21,932 | |||||||||||||||||||
Income before income taxes | 91,695 | 144,650 | 219,194 | 281,651 | |||||||||||||||||||
Provision for income taxes | 20,831 | 31,441 | 46,332 | 58,174 | |||||||||||||||||||
Net income | $ | 70,864 | $ | 113,209 | $ | 172,862 | $ | 223,477 | |||||||||||||||
Earnings per Common Share: | |||||||||||||||||||||||
Basic earnings per common share | $ | 0.94 | $ | 1.50 | $ | 2.29 | $ | 2.96 | |||||||||||||||
Diluted earnings per common share | $ | 0.93 | $ | 1.48 | $ | 2.27 | $ | 2.92 | |||||||||||||||
Share Data: | |||||||||||||||||||||||
Basic weighted average common shares outstanding | 75,171 | 75,460 | 75,459 | 75,450 | |||||||||||||||||||
Diluted weighted average common shares outstanding | 75,937 | 76,387 | 76,198 | 76,334 |
June 30, 2020 | December 31, 2019 | ||||||||||
Assets | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | 746,348 | $ | 632,581 | |||||||
Receivables - net | 270,255 | 298,186 | |||||||||
Inventories | 324,931 | 293,467 | |||||||||
Other current assets | 55,716 | 37,211 | |||||||||
Total current assets | 1,397,250 | 1,261,445 | |||||||||
Property, plant and equipment - net | 281,852 | 280,316 | |||||||||
Goodwill and intangible assets - net | 2,264,958 | 2,167,776 | |||||||||
Other noncurrent assets | 129,532 | 104,375 | |||||||||
Total assets | $ | 4,073,592 | $ | 3,813,912 | |||||||
Liabilities and shareholders' equity | |||||||||||
Current liabilities | |||||||||||
Trade accounts payable | $ | 137,413 | $ | 138,463 | |||||||
Accrued expenses | 225,931 | 180,290 | |||||||||
Short-term borrowings | 228 | 388 | |||||||||
Dividends payable | 37,735 | 38,736 | |||||||||
Total current liabilities | 401,307 | 357,877 | |||||||||
Long-term borrowings | 1,044,445 | 848,864 | |||||||||
Other noncurrent liabilities | 366,803 | 343,942 | |||||||||
Total liabilities | 1,812,555 | 1,550,683 | |||||||||
Total shareholders' equity | 2,261,037 | 2,263,229 | |||||||||
Total liabilities and shareholders' equity | $ | 4,073,592 | $ | 3,813,912 |
Six Months Ended June 30, | |||||||||||
2020 | 2019 | ||||||||||
Cash flows from operating activities | |||||||||||
Net income | $ | 172,862 | $ | 223,477 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 20,591 | 19,870 | |||||||||
Amortization of intangible assets | 20,032 | 17,953 | |||||||||
Amortization of debt issuance expenses | 976 | 669 | |||||||||
Share-based compensation expense | 13,665 | 14,413 | |||||||||
Deferred income taxes | 2,421 | 10,685 | |||||||||
Non-cash interest expense associated with forward starting swaps | 4,284 | 3,171 | |||||||||
Changes in (net of the effect from acquisitions): | |||||||||||
Receivables | 34,253 | (14,177) | |||||||||
Inventories | (9,529) | (21,007) | |||||||||
Other current assets | (18,421) | (12,382) | |||||||||
Trade accounts payable | (6,842) | 17,276 | |||||||||
Accrued expenses | 17,776 | (39,602) | |||||||||
Other - net | 2,145 | (508) | |||||||||
Net cash flows provided by operating activities | 254,213 | 219,838 | |||||||||
Cash flows from investing activities | |||||||||||
Purchases of property, plant and equipment | (21,085) | (25,742) | |||||||||
Acquisition of businesses, net of cash acquired | (120,839) | — | |||||||||
Proceeds from disposal of fixed assets | 2,114 | 780 | |||||||||
Other - net | (636) | 501 | |||||||||
Net cash flows used in investing activities | (140,446) | (24,461) | |||||||||
Cash flows from financing activities | |||||||||||
Borrowings under revolving credit facilities | 150,000 | — | |||||||||
Proceeds from issuance of 3.0% Senior Notes | 499,100 | — | |||||||||
Payment of 4.5% Senior Notes | (300,000) | — | |||||||||
Payments under revolving credit facilities | (150,000) | — | |||||||||
Payment of make-whole redemption premium | (6,756) | — | |||||||||
Debt issuance costs | (4,166) | — | |||||||||
Dividends paid | (76,498) | (71,283) | |||||||||
Proceeds from stock option exercises | 13,111 | 20,761 | |||||||||
Repurchases of common stock | (110,342) | (54,668) | |||||||||
Shares surrendered for tax withholding | (12,148) | (11,509) | |||||||||
Other - net | (251) | (1,929) | |||||||||
Net cash flows provided by (used in) financing activities | 2,050 | (118,628) | |||||||||
Effect of exchange rate changes on cash and cash equivalents | (2,050) | 33 | |||||||||
Net increase in cash | 113,767 | 76,782 | |||||||||
Cash and cash equivalents at beginning of year | 632,581 | 466,407 | |||||||||
Cash and cash equivalents at end of period | $ | 746,348 | $ | 543,189 |
Three Months Ended
June 30, (a) | Six Months Ended
June 30, (a) | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
Fluid & Metering Technologies | ||||||||||||||||||||||||||
Net sales | $ | 219,112 | $ | 246,189 | $ | 445,973 | $ | 488,711 | ||||||||||||||||||
Operating income (b) | 50,938 | 74,146 | 117,709 | 146,012 | ||||||||||||||||||||||
Operating margin | 23.2 | % | 30.1 | % | 26.4 | % | 29.9 | % | ||||||||||||||||||
EBITDA(c) | $ | 57,829 | $ | 79,547 | $ | 129,232 | $ | 156,841 | ||||||||||||||||||
EBITDA margin(c) | 26.4 | % | 32.3 | % | 29.0 | % | 32.1 | % | ||||||||||||||||||
Depreciation and amortization | $ | 6,809 | $ | 5,640 | $ | 12,207 | $ | 11,146 | ||||||||||||||||||
Capital expenditures | 1,794 | 3,350 | 6,322 | 6,580 | ||||||||||||||||||||||
Health & Science Technologies | ||||||||||||||||||||||||||
Net sales | $ | 215,668 | $ | 232,253 | $ | 439,727 | $ | 457,543 | ||||||||||||||||||
Operating income (b) | 48,007 | 56,763 | 100,650 | 110,917 | ||||||||||||||||||||||
Operating margin | 22.3 | % | 24.4 | % | 22.9 | % | 24.2 | % | ||||||||||||||||||
EBITDA(c) | $ | 57,452 | $ | 66,318 | $ | 121,285 | $ | 129,695 | ||||||||||||||||||
EBITDA margin(c) | 26.6 | % | 28.6 | % | 27.6 | % | 28.3 | % | ||||||||||||||||||
Depreciation and amortization | $ | 9,917 | $ | 9,635 | $ | 20,576 | $ | 19,142 | ||||||||||||||||||
Capital expenditures | 4,955 | 5,913 | 10,284 | 11,217 | ||||||||||||||||||||||
Fire & Safety/Diversified Products | ||||||||||||||||||||||||||
Net sales | $ | 127,076 | $ | 164,043 | $ | 271,400 | $ | 320,202 | ||||||||||||||||||
Operating income (b) | 28,837 | 43,614 | 66,874 | 83,942 | ||||||||||||||||||||||
Operating margin | 22.7 | % | 26.6 | % | 24.6 | % | 26.2 | % | ||||||||||||||||||
EBITDA(c) | $ | 32,510 | $ | 47,471 | $ | 74,621 | $ | 90,756 | ||||||||||||||||||
EBITDA margin(c) | 25.6 | % | 28.9 | % | 27.5 | % | 28.3 | % | ||||||||||||||||||
Depreciation and amortization | $ | 3,796 | $ | 3,717 | $ | 7,555 | $ | 7,179 | ||||||||||||||||||
Capital expenditures | 1,310 | 3,534 | 4,194 | 6,487 | ||||||||||||||||||||||
Corporate Office and Eliminations | ||||||||||||||||||||||||||
Intersegment sales eliminations | $ | (607) | $ | (386) | $ | (1,389) | $ | (2,126) | ||||||||||||||||||
Operating income (b) | (17,188) | (19,240) | (34,698) | (37,806) | ||||||||||||||||||||||
EBITDA(c) | (23,031) | (18,511) | (42,005) | (35,886) | ||||||||||||||||||||||
Depreciation and amortization (d) | 104 | 172 | 285 | 356 | ||||||||||||||||||||||
Capital expenditures | 264 | 70 | 285 | 1,458 | ||||||||||||||||||||||
Company | ||||||||||||||||||||||||||
Net sales | $ | 561,249 | $ | 642,099 | $ | 1,155,711 | $ | 1,264,330 | ||||||||||||||||||
Operating income | 110,594 | 155,283 | 250,535 | 303,065 | ||||||||||||||||||||||
Operating margin | 19.7 | % | 24.2 | % | 21.7 | % | 24.0 | % | ||||||||||||||||||
EBITDA(c) | $ | 124,760 | $ | 174,825 | $ | 283,133 | $ | 341,406 | ||||||||||||||||||
EBITDA margin(c) | 22.2 | % | 27.2 | % | 24.5 | % | 27.0 | % | ||||||||||||||||||
Depreciation and amortization (d) | $ | 20,626 | $ | 19,164 | $ | 40,623 | $ | 37,823 | ||||||||||||||||||
Capital expenditures | 8,323 | 12,867 | 21,085 | 25,742 | ||||||||||||||||||||||
Three Months Ended June 30, (a) | Six Months Ended June 30, (a) | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
Fluid & Metering Technologies | ||||||||||||||||||||||||||
Net sales | $ | 219,112 | $ | 246,189 | $ | 445,973 | $ | 488,711 | ||||||||||||||||||
Adjusted operating income (b)(c) | 56,893 | 75,076 | 123,664 | 146,942 | ||||||||||||||||||||||
Adjusted operating margin(c) | 26.0 | % | 30.5 | % | 27.7 | % | 30.1 | % | ||||||||||||||||||
Adjusted EBITDA(c) | $ | 63,784 | $ | 80,477 | $ | 135,187 | $ | 157,771 | ||||||||||||||||||
Adjusted EBITDA margin(c) | 29.1 | % | 32.7 | % | 30.3 | % | 32.3 | % | ||||||||||||||||||
Depreciation and amortization | $ | 6,809 | $ | 5,640 | $ | 12,207 | $ | 11,146 | ||||||||||||||||||
Capital expenditures | 1,794 | 3,350 | 6,322 | 6,580 | ||||||||||||||||||||||
Health & Science Technologies | ||||||||||||||||||||||||||
Net sales | $ | 215,668 | $ | 232,253 | $ | 439,727 | $ | 457,543 | ||||||||||||||||||
Adjusted operating income (b)(c) | 49,191 | 57,093 | 101,834 | 111,247 | ||||||||||||||||||||||
Adjusted operating margin(c) | 22.8 | % | 24.6 | % | 23.2 | % | 24.3 | % | ||||||||||||||||||
Adjusted EBITDA(c) | $ | 58,636 | $ | 66,648 | $ | 122,469 | $ | 130,025 | ||||||||||||||||||
Adjusted EBITDA margin(c) | 27.2 | % | 28.7 | % | 27.9 | % | 28.4 | % | ||||||||||||||||||
Depreciation and amortization | $ | 9,917 | $ | 9,635 | $ | 20,576 | $ | 19,142 | ||||||||||||||||||
Capital expenditures | 4,955 | 5,913 | 10,284 | 11,217 | ||||||||||||||||||||||
Fire & Safety/Diversified Products | ||||||||||||||||||||||||||
Net sales | $ | 127,076 | $ | 164,043 | $ | 271,400 | $ | 320,202 | ||||||||||||||||||
Adjusted operating income (b)(c) | 29,478 | 44,433 | 67,515 | 84,761 | ||||||||||||||||||||||
Adjusted operating margin(c) | 23.2 | % | 27.1 | % | 24.9 | % | 26.5 | % | ||||||||||||||||||
Adjusted EBITDA(c) | $ | 33,151 | $ | 48,290 | $ | 75,262 | $ | 91,575 | ||||||||||||||||||
Adjusted EBITDA margin(c) | 26.1 | % | 29.4 | % | 27.7 | % | 28.6 | % | ||||||||||||||||||
Depreciation and amortization | $ | 3,796 | $ | 3,717 | $ | 7,555 | $ | 7,179 | ||||||||||||||||||
Capital expenditures | 1,310 | 3,534 | 4,194 | 6,487 | ||||||||||||||||||||||
Corporate Office and Eliminations | ||||||||||||||||||||||||||
Intersegment sales eliminations | $ | (607) | $ | (386) | $ | (1,389) | $ | (2,126) | ||||||||||||||||||
Adjusted operating income (b)(c) | (17,020) | (19,193) | (34,530) | (37,759) | ||||||||||||||||||||||
Adjusted EBITDA(c) | (14,442) | (18,464) | (33,416) | (35,839) | ||||||||||||||||||||||
Depreciation and amortization(d) | 104 | 172 | 285 | 356 | ||||||||||||||||||||||
Capital expenditures | 264 | 70 | 285 | 1,458 | ||||||||||||||||||||||
Company | ||||||||||||||||||||||||||
Net sales | $ | 561,249 | $ | 642,099 | $ | 1,155,711 | $ | 1,264,330 | ||||||||||||||||||
Adjusted operating income(c) | 118,542 | 157,409 | 258,483 | 305,191 | ||||||||||||||||||||||
Adjusted operating margin(c) | 21.1 | % | 24.5 | % | 22.4 | % | 24.1 | % | ||||||||||||||||||
Adjusted EBITDA(c) | $ | 141,129 | $ | 176,951 | $ | 299,502 | $ | 343,532 | ||||||||||||||||||
Adjusted EBITDA margin(c) | 25.1 | % | 27.6 | % | 25.9 | % | 27.2 | % | ||||||||||||||||||
Depreciation and amortization (d) | $ | 20,626 | $ | 19,164 | $ | 40,623 | $ | 37,823 | ||||||||||||||||||
Capital expenditures | 8,323 | 12,867 | 21,085 | 25,742 | ||||||||||||||||||||||
(a) | Three and six month data includes the results of the Velcora acquisition (July 2019) in the Health & Science Technologies segment and the Flow MD acquisition (February 2020) in the Fluid & Metering Technologies segment. | |||||||||||||||||||||||||
(b) | Segment operating income excludes unallocated corporate operating expenses which are included in Corporate Office and Eliminations. | |||||||||||||||||||||||||
(c) | These are non-GAAP financial measures. For a reconciliation of these non-GAAP financial measures to their most comparable measure calculated and presented in accordance with GAAP, see the reconciliation tables above | |||||||||||||||||||||||||
(d) | Depreciation and amortization excludes amortization of debt issuance costs. |
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