(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 | ||||||||
October 28, 2020 |
Exhibit Number | Description | |||||||
“Our team continued to execute well in a challenging operating environment during the quarter, delivering essential products safely to our customers and producing better than expected financial results. Business conditions improved in the quarter, with September organic orders posting our first monthly year over year increase since February 2020. The improved commercial performance through the third quarter resulted in organic orders and sales being down 5 percent and 12 percent, respectively. Sales of $581 million in the third quarter drove adjusted operating margin of 23.1 percent and adjusted EPS of $1.40. Adjusted operating margin improved 200 basis points sequentially, primarily due to higher volume and additional cost actions we took in the second quarter. | |||||
Our team aggressively managed working capital, driving free cash flow of $135 million. Despite the global pandemic, the financial durability of our businesses has generated nearly $300 million of free cash flow over the past two quarters. We ended the quarter with record cash of $878 million and nearly $800 million available under our revolving credit facility. Our strong balance sheet and liquidity position are key strengths to leverage as we continue pivoting to offense. In the third quarter, we increased our year over year capital spending by two-thirds as we invest to support our organic growth. | |||||
Some of that investment is targeted at opportunities supporting the COVID-19 battle, including disinfection, testing and vaccines. One of the applications under development is associated with a rapid testing solution that will support the millions of tests needed as the world navigates COVID-19. In the past I have discussed the four different phases of the COVID-19 pandemic. We have entered the third phase, which is living with the virus. While the macro environment remains fluid, I'm encouraged to see our business and the overall economy recover. Against that backdrop, we expect fourth quarter organic sales to continue to improve sequentially and be down approximately 3 to 5 percent versus prior year." | |||||
Andrew K. Silvernail | |||||
Chairman and Chief Executive Officer |
Three Months Ended September 30, 2020 | Nine Months Ended September 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||
FMT | HST | FSDP | IDEX | FMT | HST | FSDP | IDEX | ||||||||||||||||||||||||||||||||||||||||
Change in net sales | (8) | % | (4) | % | (9) | % | (7) | % | (9) | % | (4) | % | (13) | % | (8) | % | |||||||||||||||||||||||||||||||
- Net impact from acquisitions | 8 | % | 1 | % | — | % | 4 | % | 6 | % | 3 | % | — | % | 3 | % | |||||||||||||||||||||||||||||||
- Impact from FX | 1 | % | 1 | % | 1 | % | 1 | % | — | % | — | % | — | % | — | % | |||||||||||||||||||||||||||||||
Change in organic net sales | (17) | % | (6) | % | (10) | % | (12) | % | (15) | % | (7) | % | (13) | % | (11) | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Gross profit | $ | 251,500 | $ | 281,978 | $ | 758,256 | $ | 858,149 | |||||||||||||||
+ Fair value inventory step-up charge | — | 3,340 | 4,107 | 3,340 | |||||||||||||||||||
Adjusted gross profit | $ | 251,500 | $ | 285,318 | $ | 762,363 | $ | 861,489 | |||||||||||||||
Net sales | $ | 581,113 | $ | 624,246 | $ | 1,736,824 | $ | 1,888,576 | |||||||||||||||
Gross margin | 43.3 | % | 45.2 | % | 43.7 | % | 45.4 | % | |||||||||||||||
Adjusted gross margin | 43.3 | % | 45.7 | % | 43.9 | % | 45.6 | % |
Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FMT | HST | FSDP | Corporate | IDEX | FMT | HST | FSDP | Corporate | IDEX | ||||||||||||||||||||||||||||||||||||||||||||||||||
Reported operating income (loss) | $ | 58,402 | $ | 49,912 | $ | 37,103 | $ | (14,204) | $ | 131,213 | $ | 77,481 | $ | 40,170 | $ | 41,967 | $ | (17,853) | $ | 141,765 | |||||||||||||||||||||||||||||||||||||||
+ Restructuring expenses | 585 | 978 | 1,249 | 105 | 2,917 | — | 11,196 | 104 | 656 | 11,956 | |||||||||||||||||||||||||||||||||||||||||||||||||
+ Fair value inventory step-up charge | — | — | — | — | — | — | 3,340 | — | — | 3,340 | |||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted operating income (loss) | $ | 58,987 | $ | 50,890 | $ | 38,352 | $ | (14,099) | $ | 134,130 | $ | 77,481 | $ | 54,706 | $ | 42,071 | $ | (17,197) | -17197000 | $ | 157,061 | ||||||||||||||||||||||||||||||||||||||
Net sales (eliminations) | $ | 220,747 | $ | 220,378 | $ | 140,896 | $ | (908) | $ | 581,113 | $ | 240,861 | $ | 229,610 | $ | 154,543 | $ | (768) | $ | 624,246 | |||||||||||||||||||||||||||||||||||||||
Reported operating margin | 26.5 | % | 22.6 | % | 26.3 | % | n/m | 22.6 | % | 32.2 | % | 17.5 | % | 27.2 | % | n/m | 22.7 | % | |||||||||||||||||||||||||||||||||||||||||
Adjusted operating margin | 26.7 | % | 23.1 | % | 27.2 | % | n/m | 23.1 | % | 32.2 | % | 23.8 | % | 27.2 | % | n/m | 25.2 | % |
Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FMT | HST | FSDP | Corporate | IDEX | FMT | HST | FSDP | Corporate | IDEX | ||||||||||||||||||||||||||||||||||||||||||||||||||
Reported operating income (loss) | $ | 176,111 | $ | 150,562 | $ | 103,977 | $ | (48,902) | $ | 381,748 | $ | 223,493 | $ | 151,087 | $ | 125,909 | $ | (55,659) | $ | 444,830 | |||||||||||||||||||||||||||||||||||||||
+ Restructuring expenses | 2,433 | 2,162 | 1,890 | 273 | 6,758 | 930 | 11,526 | 923 | 703 | 14,082 | |||||||||||||||||||||||||||||||||||||||||||||||||
+ Fair value inventory step-up charge | 4,107 | — | — | — | 4,107 | — | 3,340 | — | — | 3,340 | |||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted operating income (loss) | $ | 182,651 | $ | 152,724 | $ | 105,867 | $ | (48,629) | $ | 392,613 | $ | 224,423 | $ | 165,953 | $ | 126,832 | $ | (54,956) | $ | 462,252 | |||||||||||||||||||||||||||||||||||||||
Net sales (eliminations) | $ | 666,720 | $ | 660,105 | $ | 412,296 | $ | (2,297) | $ | 1,736,824 | $ | 729,572 | $ | 687,153 | $ | 474,745 | $ | (2,894) | $ | 1,888,576 | |||||||||||||||||||||||||||||||||||||||
Reported operating margin | 26.4 | % | 22.8 | % | 25.2 | % | n/m | 22.0 | % | 30.6 | % | 22.0 | % | 26.5 | % | n/m | 23.6 | % | |||||||||||||||||||||||||||||||||||||||||
Adjusted operating margin | 27.4 | % | 23.1 | % | 25.7 | % | n/m | 22.6 | % | 30.8 | % | 24.2 | % | 26.7 | % | n/m | 24.5 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Reported net income | $ | 103,848 | $ | 105,194 | $ | 276,710 | $ | 328,671 | |||||||||||||||
+ Restructuring expenses | 2,917 | 11,956 | 6,758 | 14,082 | |||||||||||||||||||
+ Tax impact on restructuring expenses | (703) | (2,776) | (1,540) | (3,336) | |||||||||||||||||||
+ Fair value inventory step-up charge | — | 3,340 | 4,107 | 3,340 | |||||||||||||||||||
+ Tax impact on fair value inventory step-up charge | — | (735) | (932) | (735) | |||||||||||||||||||
+ Loss on early debt redemption | — | — | 8,421 | — | |||||||||||||||||||
+ Tax impact on loss on early debt redemption | — | — | (1,912) | — | |||||||||||||||||||
Adjusted net income | $ | 106,062 | $ | 116,979 | $ | 291,612 | $ | 342,022 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Reported diluted EPS | $ | 1.37 | $ | 1.37 | $ | 3.64 | $ | 4.30 | |||||||||||||||
+ Restructuring expenses | 0.04 | 0.16 | 0.09 | 0.18 | |||||||||||||||||||
+ Tax impact on restructuring expenses | (0.01) | (0.04) | (0.02) | (0.04) | |||||||||||||||||||
+ Fair value inventory step-up charge | — | 0.04 | 0.05 | 0.04 | |||||||||||||||||||
+ Tax impact on fair value inventory step-up charge | — | (0.01) | (0.01) | (0.01) | |||||||||||||||||||
+ Loss on early debt redemption | — | — | 0.11 | — | |||||||||||||||||||
+ Tax impact on loss on early debt redemption | — | — | (0.02) | — | |||||||||||||||||||
Adjusted diluted EPS | $ | 1.40 | $ | 1.52 | $ | 3.84 | $ | 4.47 | |||||||||||||||
Diluted weighted average shares outstanding | 75,960 | 76,577 | 76,119 | 76,415 |
Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FMT | HST | FSDP | Corporate | IDEX | FMT | HST | FSDP | Corporate | IDEX | ||||||||||||||||||||||||||||||||||||||||||||||||||
Reported operating income (loss) | $ | 58,402 | $ | 49,912 | $ | 37,103 | $ | (14,204) | $ | 131,213 | $ | 77,481 | $ | 40,170 | $ | 41,967 | $ | (17,853) | $ | 141,765 | |||||||||||||||||||||||||||||||||||||||
- Other (income) expense - net | (719) | (32) | 340 | (293) | (704) | 295 | 1,272 | (92) | (256) | 1,219 | |||||||||||||||||||||||||||||||||||||||||||||||||
+ Depreciation and amortization | 7,163 | 10,230 | 3,854 | 104 | 21,351 | 5,507 | 10,296 | 3,566 | 154 | 19,523 | |||||||||||||||||||||||||||||||||||||||||||||||||
EBITDA | 66,284 | 60,174 | 40,617 | (13,807) | 153,268 | 82,693 | 49,194 | 45,625 | (17,443) | 160,069 | |||||||||||||||||||||||||||||||||||||||||||||||||
- Interest expense | 10,642 | 11,330 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
- Provision for income taxes | 17,427 | 24,022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
- Depreciation and amortization | 21,351 | 19,523 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reported net income | $ | 103,848 | $ | 105,194 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net sales (eliminations) | $ | 220,747 | $ | 220,378 | $ | 140,896 | $ | (908) | $ | 581,113 | $ | 240,861 | $ | 229,610 | $ | 154,543 | $ | (768) | $ | 624,246 | |||||||||||||||||||||||||||||||||||||||
Reported operating margin | 26.5 | % | 22.6 | % | 26.3 | % | n/m | 22.6 | % | 32.2 | % | 17.5 | % | 27.2 | % | n/m | 22.7 | % | |||||||||||||||||||||||||||||||||||||||||
EBITDA margin | 30.0 | % | 27.3 | % | 28.8 | % | n/m | 26.4 | % | 34.3 | % | 21.4 | % | 29.5 | % | n/m | 25.6 | % |
Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FMT | HST | FSDP | Corporate | IDEX | FMT | HST | FSDP | Corporate | IDEX | ||||||||||||||||||||||||||||||||||||||||||||||||||
Reported operating income (loss) | $ | 176,111 | $ | 150,562 | $ | 103,977 | $ | (48,902) | $ | 381,748 | $ | 223,493 | $ | 151,087 | $ | 125,909 | $ | (55,659) | $ | 444,830 | |||||||||||||||||||||||||||||||||||||||
- Other (income) expense - net | (35) | (91) | 148 | 7,299 | 7,321 | 612 | 1,636 | 273 | (1,820) | 701 | |||||||||||||||||||||||||||||||||||||||||||||||||
+ Depreciation and amortization | 19,370 | 30,806 | 11,409 | 389 | 61,974 | 16,653 | 29,438 | 10,745 | 510 | 57,346 | |||||||||||||||||||||||||||||||||||||||||||||||||
EBITDA | 195,516 | 181,459 | 115,238 | (55,812) | 436,401 | 239,534 | 178,889 | 136,381 | (53,329) | 501,475 | |||||||||||||||||||||||||||||||||||||||||||||||||
- Interest expense | 33,958 | 33,262 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
- Provision for income taxes | 63,759 | 82,196 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
- Depreciation and amortization | 61,974 | 57,346 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reported net income | $ | 276,710 | $ | 328,671 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net sales (eliminations) | $ | 666,720 | $ | 660,105 | $ | 412,296 | $ | (2,297) | $ | 1,736,824 | $ | 729,572 | $ | 687,153 | $ | 474,745 | $ | (2,894) | $ | 1,888,576 | |||||||||||||||||||||||||||||||||||||||
Reported operating margin | 26.4 | % | 22.8 | % | 25.2 | % | n/m | 22.0 | % | 30.6 | % | 22.0 | % | 26.5 | % | n/m | 23.6 | % | |||||||||||||||||||||||||||||||||||||||||
EBITDA margin | 29.3 | % | 27.5 | % | 28.0 | % | n/m | 25.1 | % | 32.8 | % | 26.0 | % | 28.7 | % | n/m | 26.6 | % |
Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FMT | HST | FSDP | Corporate | IDEX | FMT | HST | FSDP | Corporate | IDEX | ||||||||||||||||||||||||||||||||||||||||||||||||||
EBITDA(1) | $ | 66,284 | $ | 60,174 | $ | 40,617 | $ | (13,807) | $ | 153,268 | $ | 82,693 | $ | 49,194 | $ | 45,625 | $ | (17,443) | $ | 160,069 | |||||||||||||||||||||||||||||||||||||||
+ Restructuring expenses | 585 | 978 | 1,249 | 105 | 2,917 | — | 11,196 | 104 | 656 | 11,956 | |||||||||||||||||||||||||||||||||||||||||||||||||
+ Fair value inventory step-up charge | — | — | — | — | — | — | 3,340 | — | — | 3,340 | |||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 66,869 | $ | 61,152 | $ | 41,866 | $ | (13,702) | $ | 156,185 | $ | 82,693 | $ | 63,730 | $ | 45,729 | $ | (16,787) | $ | 175,365 | |||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA margin | 30.3 | % | 27.7 | % | 29.7 | % | n/m | 26.9 | % | 34.3 | % | 27.8 | % | 29.6 | % | n/m | 28.1 | % |
Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FMT | HST | FSDP | Corporate | IDEX | FMT | HST | FSDP | Corporate | IDEX | ||||||||||||||||||||||||||||||||||||||||||||||||||
EBITDA(1) | $ | 195,516 | $ | 181,459 | $ | 115,238 | $ | (55,812) | $ | 436,401 | $ | 239,534 | $ | 178,889 | $ | 136,381 | $ | (53,329) | $ | 501,475 | |||||||||||||||||||||||||||||||||||||||
+ Restructuring expenses | 2,433 | 2,162 | 1,890 | 273 | 6,758 | 930 | 11,526 | 923 | 703 | 14,082 | |||||||||||||||||||||||||||||||||||||||||||||||||
+ Fair value inventory step-up charge | 4,107 | — | — | — | 4,107 | — | 3,340 | — | — | 3,340 | |||||||||||||||||||||||||||||||||||||||||||||||||
+ Loss on early debt redemption | — | — | — | 8,421 | 8,421 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 202,056 | $ | 183,621 | $ | 117,128 | $ | (47,118) | $ | 455,687 | $ | 240,464 | $ | 193,755 | $ | 137,304 | $ | (52,626) | $ | 518,897 | |||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA margin | 30.3 | % | 27.8 | % | 28.4 | % | n/m | 26.2 | % | 33.0 | % | 28.2 | % | 28.9 | % | n/m | 27.5 | % |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
September 30, | June 30, | September 30, | ||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2020 | 2019 | ||||||||||||||||||||||||||||
Cash flows from operating activities | $ | 153,686 | $ | 157,064 | $ | 169,453 | $ | 407,899 | $ | 376,902 | ||||||||||||||||||||||
- Capital expenditures | 18,353 | 11,031 | 8,323 | 39,438 | 36,773 | |||||||||||||||||||||||||||
Free cash flow | $ | 135,333 | $ | 146,033 | $ | 161,130 | $ | 368,461 | $ | 340,129 | ||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Net sales | $ | 581,113 | $ | 624,246 | $ | 1,736,824 | $ | 1,888,576 | |||||||||||||||
Cost of sales | 329,613 | 342,268 | 978,568 | 1,030,427 | |||||||||||||||||||
Gross profit | 251,500 | 281,978 | 758,256 | 858,149 | |||||||||||||||||||
Selling, general and administrative expenses | 117,370 | 128,257 | 369,750 | 399,237 | |||||||||||||||||||
Restructuring expenses | 2,917 | 11,956 | 6,758 | 14,082 | |||||||||||||||||||
Operating income | 131,213 | 141,765 | 381,748 | 444,830 | |||||||||||||||||||
Other (income) expense - net | (704) | 1,219 | 7,321 | 701 | |||||||||||||||||||
Interest expense | 10,642 | 11,330 | 33,958 | 33,262 | |||||||||||||||||||
Income before income taxes | 121,275 | 129,216 | 340,469 | 410,867 | |||||||||||||||||||
Provision for income taxes | 17,427 | 24,022 | 63,759 | 82,196 | |||||||||||||||||||
Net income | $ | 103,848 | $ | 105,194 | $ | 276,710 | $ | 328,671 | |||||||||||||||
Earnings per Common Share: | |||||||||||||||||||||||
Basic earnings per common share | $ | 1.38 | $ | 1.39 | $ | 3.66 | $ | 4.34 | |||||||||||||||
Diluted earnings per common share | $ | 1.37 | $ | 1.37 | $ | 3.64 | $ | 4.30 | |||||||||||||||
Share Data: | |||||||||||||||||||||||
Basic weighted average common shares outstanding | 75,352 | 75,698 | 75,423 | 75,532 | |||||||||||||||||||
Diluted weighted average common shares outstanding | 75,960 | 76,577 | 76,119 | 76,415 |
September 30, 2020 | December 31, 2019 | ||||||||||
Assets | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | 877,758 | $ | 632,581 | |||||||
Receivables - net | 275,432 | 298,186 | |||||||||
Inventories | 302,410 | 293,467 | |||||||||
Other current assets | 65,152 | 37,211 | |||||||||
Total current assets | 1,520,752 | 1,261,445 | |||||||||
Property, plant and equipment - net | 293,304 | 280,316 | |||||||||
Goodwill and intangible assets - net | 2,280,657 | 2,167,776 | |||||||||
Other noncurrent assets | 130,882 | 104,375 | |||||||||
Total assets | $ | 4,225,595 | $ | 3,813,912 | |||||||
Liabilities and shareholders' equity | |||||||||||
Current liabilities | |||||||||||
Trade accounts payable | $ | 134,782 | $ | 138,463 | |||||||
Accrued expenses | 236,937 | 180,290 | |||||||||
Short-term borrowings | 150 | 388 | |||||||||
Dividends payable | 37,830 | 38,736 | |||||||||
Total current liabilities | 409,699 | 357,877 | |||||||||
Long-term borrowings | 1,044,112 | 848,864 | |||||||||
Other noncurrent liabilities | 375,255 | 343,942 | |||||||||
Total liabilities | 1,829,066 | 1,550,683 | |||||||||
Total shareholders' equity | 2,396,529 | 2,263,229 | |||||||||
Total liabilities and shareholders' equity | $ | 4,225,595 | $ | 3,813,912 |
Nine Months Ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
Cash flows from operating activities | |||||||||||
Net income | $ | 276,710 | $ | 328,671 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Asset impairments | 85 | 9,680 | |||||||||
Depreciation and amortization | 30,851 | 29,599 | |||||||||
Amortization of intangible assets | 31,123 | 27,747 | |||||||||
Amortization of debt issuance expenses | 1,351 | 1,013 | |||||||||
Share-based compensation expense | 21,155 | 20,620 | |||||||||
Deferred income taxes | 1,323 | 11,528 | |||||||||
Non-cash interest expense associated with forward starting swaps | 5,153 | 4,737 | |||||||||
Changes in (net of the effect from acquisitions): | |||||||||||
Receivables | 33,291 | (2,071) | |||||||||
Inventories | 17,920 | (16,987) | |||||||||
Other current assets | (27,655) | (19,186) | |||||||||
Trade accounts payable | (11,496) | 2,807 | |||||||||
Accrued expenses | 24,333 | (23,222) | |||||||||
Other - net | 3,755 | 1,966 | |||||||||
Net cash flows provided by operating activities | 407,899 | 376,902 | |||||||||
Cash flows from investing activities | |||||||||||
Purchases of property, plant and equipment | (39,438) | (36,773) | |||||||||
Acquisition of businesses, net of cash acquired | (118,159) | (87,180) | |||||||||
Proceeds from disposal of fixed assets | 2,230 | 957 | |||||||||
Other - net | (238) | 407 | |||||||||
Net cash flows used in investing activities | (155,605) | (122,589) | |||||||||
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) | — | |||||||||
Payments under other long-term borrowings | (352) | (49,923) | |||||||||
Payment of make-whole redemption premium | (6,756) | — | |||||||||
Debt issuance costs | (4,741) | — | |||||||||
Dividends paid | (114,248) | (109,227) | |||||||||
Proceeds from stock option exercises | 28,729 | 35,595 | |||||||||
Repurchases of common stock | (110,342) | (54,668) | |||||||||
Shares surrendered for tax withholding | (12,198) | (12,583) | |||||||||
Other - net | — | (1,865) | |||||||||
Net cash flows used in financing activities | (20,808) | (192,671) | |||||||||
Effect of exchange rate changes on cash and cash equivalents | 13,691 | (12,064) | |||||||||
Net increase in cash | 245,177 | 49,578 | |||||||||
Cash and cash equivalents at beginning of year | 632,581 | 466,407 | |||||||||
Cash and cash equivalents at end of period | $ | 877,758 | $ | 515,985 |
Three Months Ended September 30, (a) | Nine Months Ended September 30, (a) | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
Fluid & Metering Technologies | ||||||||||||||||||||||||||
Net sales | $ | 220,747 | $ | 240,861 | $ | 666,720 | $ | 729,572 | ||||||||||||||||||
Operating income (b) | 58,402 | 77,481 | 176,111 | 223,493 | ||||||||||||||||||||||
Operating margin | 26.5 | % | 32.2 | % | 26.4 | % | 30.6 | % | ||||||||||||||||||
EBITDA(c) | $ | 66,284 | $ | 82,693 | $ | 195,516 | $ | 239,534 | ||||||||||||||||||
EBITDA margin(c) | 30.0 | % | 34.3 | % | 29.3 | % | 32.8 | % | ||||||||||||||||||
Depreciation and amortization | $ | 7,163 | $ | 5,507 | $ | 19,370 | $ | 16,653 | ||||||||||||||||||
Capital expenditures | 2,452 | 3,627 | 8,774 | 10,207 | ||||||||||||||||||||||
Health & Science Technologies | ||||||||||||||||||||||||||
Net sales | $ | 220,378 | $ | 229,610 | $ | 660,105 | $ | 687,153 | ||||||||||||||||||
Operating income (b) | 49,912 | 40,170 | 150,562 | 151,087 | ||||||||||||||||||||||
Operating margin | 22.6 | % | 17.5 | % | 22.8 | % | 22.0 | % | ||||||||||||||||||
EBITDA(c) | $ | 60,174 | $ | 49,194 | $ | 181,459 | $ | 178,889 | ||||||||||||||||||
EBITDA margin(c) | 27.3 | % | 21.4 | % | 27.5 | % | 26.0 | % | ||||||||||||||||||
Depreciation and amortization | $ | 10,230 | $ | 10,296 | $ | 30,806 | $ | 29,438 | ||||||||||||||||||
Capital expenditures | 10,558 | 4,984 | 20,842 | 16,201 | ||||||||||||||||||||||
Fire & Safety/Diversified Products | ||||||||||||||||||||||||||
Net sales | $ | 140,896 | $ | 154,543 | $ | 412,296 | $ | 474,745 | ||||||||||||||||||
Operating income (b) | 37,103 | 41,967 | 103,977 | 125,909 | ||||||||||||||||||||||
Operating margin | 26.3 | % | 27.2 | % | 25.2 | % | 26.5 | % | ||||||||||||||||||
EBITDA(c) | $ | 40,617 | $ | 45,625 | $ | 115,238 | $ | 136,381 | ||||||||||||||||||
EBITDA margin(c) | 28.8 | % | 29.5 | % | 28.0 | % | 28.7 | % | ||||||||||||||||||
Depreciation and amortization | $ | 3,854 | $ | 3,566 | $ | 11,409 | $ | 10,745 | ||||||||||||||||||
Capital expenditures | 2,340 | 2,257 | 6,534 | 8,744 | ||||||||||||||||||||||
Corporate Office and Eliminations | ||||||||||||||||||||||||||
Intersegment sales eliminations | $ | (908) | $ | (768) | $ | (2,297) | $ | (2,894) | ||||||||||||||||||
Operating income (b) | (14,204) | (17,853) | (48,902) | (55,659) | ||||||||||||||||||||||
EBITDA(c) | (13,807) | (17,443) | (55,812) | (53,329) | ||||||||||||||||||||||
Depreciation and amortization (d) | 104 | 154 | 389 | 510 | ||||||||||||||||||||||
Capital expenditures | 3,003 | 163 | 3,288 | 1,621 | ||||||||||||||||||||||
Company | ||||||||||||||||||||||||||
Net sales | $ | 581,113 | $ | 624,246 | $ | 1,736,824 | $ | 1,888,576 | ||||||||||||||||||
Operating income | 131,213 | 141,765 | 381,748 | 444,830 | ||||||||||||||||||||||
Operating margin | 22.6 | % | 22.7 | % | 22.0 | % | 23.6 | % | ||||||||||||||||||
EBITDA(c) | $ | 153,268 | $ | 160,069 | $ | 436,401 | $ | 501,475 | ||||||||||||||||||
EBITDA margin(c) | 26.4 | % | 25.6 | % | 25.1 | % | 26.6 | % | ||||||||||||||||||
Depreciation and amortization (d) | $ | 21,351 | $ | 19,523 | $ | 61,974 | $ | 57,346 | ||||||||||||||||||
Capital expenditures | 18,353 | 11,031 | 39,438 | 36,773 | ||||||||||||||||||||||
Three Months Ended September 30, (a) | Nine Months Ended September 30, (a) | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
Fluid & Metering Technologies | ||||||||||||||||||||||||||
Net sales | $ | 220,747 | $ | 240,861 | $ | 666,720 | $ | 729,572 | ||||||||||||||||||
Adjusted operating income (b)(c) | 58,987 | 77,481 | 182,651 | 224,423 | ||||||||||||||||||||||
Adjusted operating margin(c) | 26.7 | % | 32.2 | % | 27.4 | % | 30.8 | % | ||||||||||||||||||
Adjusted EBITDA(c) | $ | 66,869 | $ | 82,693 | $ | 202,056 | $ | 240,464 | ||||||||||||||||||
Adjusted EBITDA margin(c) | 30.3 | % | 34.3 | % | 30.3 | % | 33.0 | % | ||||||||||||||||||
Depreciation and amortization | $ | 7,163 | $ | 5,507 | $ | 19,370 | $ | 16,653 | ||||||||||||||||||
Capital expenditures | 2,452 | 3,627 | 8,774 | 10,207 | ||||||||||||||||||||||
Health & Science Technologies | ||||||||||||||||||||||||||
Net sales | $ | 220,378 | $ | 229,610 | $ | 660,105 | $ | 687,153 | ||||||||||||||||||
Adjusted operating income (b)(c) | 50,890 | 54,706 | 152,724 | 165,953 | ||||||||||||||||||||||
Adjusted operating margin(c) | 23.1 | % | 23.8 | % | 23.1 | % | 24.2 | % | ||||||||||||||||||
Adjusted EBITDA(c) | $ | 61,152 | $ | 63,730 | $ | 183,621 | $ | 193,755 | ||||||||||||||||||
Adjusted EBITDA margin(c) | 27.7 | % | 27.8 | % | 27.8 | % | 28.2 | % | ||||||||||||||||||
Depreciation and amortization | $ | 10,230 | $ | 10,296 | $ | 30,806 | $ | 29,438 | ||||||||||||||||||
Capital expenditures | 10,558 | 4,984 | 20,842 | 16,201 | ||||||||||||||||||||||
Fire & Safety/Diversified Products | ||||||||||||||||||||||||||
Net sales | $ | 140,896 | $ | 154,543 | $ | 412,296 | $ | 474,745 | ||||||||||||||||||
Adjusted operating income (b)(c) | 38,352 | 42,071 | 105,867 | 126,832 | ||||||||||||||||||||||
Adjusted operating margin(c) | 27.2 | % | 27.2 | % | 25.7 | % | 26.7 | % | ||||||||||||||||||
Adjusted EBITDA(c) | $ | 41,866 | $ | 45,729 | $ | 117,128 | $ | 137,304 | ||||||||||||||||||
Adjusted EBITDA margin(c) | 29.7 | % | 29.6 | % | 28.4 | % | 28.9 | % | ||||||||||||||||||
Depreciation and amortization | $ | 3,854 | $ | 3,566 | $ | 11,409 | $ | 10,745 | ||||||||||||||||||
Capital expenditures | 2,340 | 2,257 | 6,534 | 8,744 | ||||||||||||||||||||||
Corporate Office and Eliminations | ||||||||||||||||||||||||||
Intersegment sales eliminations | $ | (908) | $ | (768) | $ | (2,297) | $ | (2,894) | ||||||||||||||||||
Adjusted operating income (b)(c) | (14,099) | (17,197) | (48,629) | (54,956) | ||||||||||||||||||||||
Adjusted EBITDA(c) | (13,702) | (16,787) | (47,118) | (52,626) | ||||||||||||||||||||||
Depreciation and amortization(d) | 104 | 154 | 389 | 510 | ||||||||||||||||||||||
Capital expenditures | 3,003 | 163 | 3,288 | 1,621 | ||||||||||||||||||||||
Company | ||||||||||||||||||||||||||
Net sales | $ | 581,113 | $ | 624,246 | $ | 1,736,824 | $ | 1,888,576 | ||||||||||||||||||
Adjusted operating income(c) | 134,130 | 157,061 | 392,613 | 462,252 | ||||||||||||||||||||||
Adjusted operating margin(c) | 23.1 | % | 25.2 | % | 22.6 | % | 24.5 | % | ||||||||||||||||||
Adjusted EBITDA(c) | $ | 156,185 | $ | 175,365 | $ | 455,687 | $ | 518,897 | ||||||||||||||||||
Adjusted EBITDA margin(c) | 26.9 | % | 28.1 | % | 26.2 | % | 27.5 | % | ||||||||||||||||||
Depreciation and amortization (d) | $ | 21,351 | $ | 19,523 | $ | 61,974 | $ | 57,346 | ||||||||||||||||||
Capital expenditures | 18,353 | 11,031 | 39,438 | 36,773 | ||||||||||||||||||||||
(a) | Three and nine 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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