(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 27, 2021 |
Exhibit Number | Description | |||||||
“IDEX teams continued to navigate a tremendously challenging supply chain environment and achieved strong operating results in the third quarter. We saw broad-based strength across our portfolio, resulting in record orders and sales of $774 million and $712 million, respectively. Today's global challenges will increasingly drive growth towards problem solvers like IDEX, but in the short term, our focus remains on overcoming the macro constraints that inhibit customer satisfaction while staying committed to investments needed to thrive in the future. | |||||
Our 80/20 principles serve us well by providing a framework to identify how to best support our customers in a difficult environment. I want to thank all IDEX team members across the globe who have tirelessly worked through these challenges and contributed to our success. | |||||
Our price capture continues to outpace material inflation and drive sequential improvements in gross margin. Despite targeted increases in discretionary costs and continued investment in the business, we achieved solid flow through, resulting in an adjusted operating margin of 24.3 percent and a record adjusted EPS of $1.63. | |||||
The acquisitions we made in the first half of the year are performing extremely well. ABEL Pumps is fully integrated and performing above expectations. Airtech is ahead of our integration timeline and is delivering on its growth potential. Our expanded corporate strategy and development team continues to actively work our M&A funnel as we look to deploy more capital. The balance sheet remains strong, with ample capital to support organic investments in business innovations and strategic M&A. | |||||
As we look to the fourth quarter, we expect organic sales growth of 9 to 10 percent with EPS in the range of $1.55 to $1.58. This assumes similar output to our third quarter results, coupled with a step up in targeted investments and the potential for year-end logistics challenges. For the full year, we are maintaining our projection of 11 to 12 percent organic sales growth and narrowing our adjusted EPS range to $6.30 to $6.33.” | |||||
Eric D. Ashleman | |||||
Chief Executive Officer and President |
Three Months Ended September 30, 2021 | Nine Months Ended September 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||
FMT | HST | FSDP | IDEX | FMT | HST | FSDP | IDEX | ||||||||||||||||||||||||||||||||||||||||
Change in net sales | 14 | % | 37 | % | 13 | % | 23 | % | 12 | % | 25 | % | 16 | % | 18 | % | |||||||||||||||||||||||||||||||
- Net impact from acquisitions/divestitures | 6 | % | 12 | % | — | % | 7 | % | 4 | % | 4 | % | — | % | 3 | % | |||||||||||||||||||||||||||||||
- Impact from foreign currency | 1 | % | 1 | % | 1 | % | 1 | % | 2 | % | 3 | % | 3 | % | 3 | % | |||||||||||||||||||||||||||||||
Change in organic net sales | 7 | % | 24 | % | 12 | % | 15 | % | 6 | % | 18 | % | 13 | % | 12 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Gross profit | $ | 311,569 | $ | 251,500 | $ | 910,264 | $ | 758,256 | |||||||||||||||
+ Fair value inventory step-up charges | 9,100 | — | 11,586 | 4,107 | |||||||||||||||||||
Adjusted gross profit | $ | 320,669 | $ | 251,500 | $ | 921,850 | $ | 762,363 | |||||||||||||||
Net sales | $ | 712,019 | $ | 581,113 | $ | 2,050,002 | $ | 1,736,824 | |||||||||||||||
Gross margin | 43.8 | % | 43.3 | % | 44.4 | % | 43.7 | % | |||||||||||||||
Adjusted gross margin | 45.0 | % | 43.3 | % | 45.0 | % | 43.9 | % |
Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FMT | HST | FSDP | Corporate | IDEX | FMT | HST | FSDP | Corporate | IDEX | ||||||||||||||||||||||||||||||||||||||||||||||||||
Reported operating income (loss) | $ | 69,020 | $ | 70,374 | $ | 39,126 | $ | (17,335) | $ | 161,185 | $ | 58,402 | $ | 49,912 | $ | 37,103 | $(14,204) | $ | 131,213 | ||||||||||||||||||||||||||||||||||||||||
+ Restructuring expenses and asset impairments | 1,934 | 626 | (55) | 699 | 3,204 | 585 | 978 | 1,249 | 105 | 2,917 | |||||||||||||||||||||||||||||||||||||||||||||||||
+ Fair value inventory step-up charges | — | 9,100 | — | — | 9,100 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
+ Corporate transaction indemnity | — | — | — | (400) | (400) | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted operating income (loss) | $ | 70,954 | $ | 80,100 | $ | 39,071 | $ | (17,036) | $ | 173,089 | $ | 58,987 | $ | 50,890 | $ | 38,352 | $(14,099) | $ | 134,130 | ||||||||||||||||||||||||||||||||||||||||
Net sales (eliminations) | $ | 251,297 | $ | 302,287 | $ | 159,106 | $ | (671) | $ | 712,019 | $ | 220,747 | $ | 220,378 | $ | 140,896 | $ | (908) | $ | 581,113 | |||||||||||||||||||||||||||||||||||||||
Reported operating margin | 27.5 | % | 23.3 | % | 24.6 | % | n/m | 22.6 | % | 26.5 | % | 22.6 | % | 26.3 | % | n/m | 22.6 | % | |||||||||||||||||||||||||||||||||||||||||
Adjusted operating margin | 28.2 | % | 26.5 | % | 24.6 | % | n/m | 24.3 | % | 26.7 | % | 23.1 | % | 27.2 | % | n/m | 23.1 | % |
Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FMT | HST | FSDP | Corporate | IDEX | FMT | HST | FSDP | Corporate | IDEX | ||||||||||||||||||||||||||||||||||||||||||||||||||
Reported operating income (loss) | $ | 195,384 | $ | 212,987 | $ | 126,483 | $ | (59,866) | $ | 474,988 | $ | 176,111 | $ | 150,562 | $ | 103,977 | $ | (48,902) | $ | 381,748 | |||||||||||||||||||||||||||||||||||||||
+ Restructuring expenses and asset impairments | 4,787 | 1,693 | 161 | 1,927 | 8,568 | 2,433 | 2,162 | 1,890 | 273 | 6,758 | |||||||||||||||||||||||||||||||||||||||||||||||||
+ Fair value inventory step-up charges | 2,486 | 9,100 | — | — | 11,586 | 4,107 | — | — | — | 4,107 | |||||||||||||||||||||||||||||||||||||||||||||||||
+ Corporate transaction indemnity | — | — | — | 3,500 | 3,500 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted operating income (loss) | $202,657 | $223,780 | $126,644 | $(54,439) | $498,642 | $182,651 | $152,724 | $105,867 | $(48,629) | $392,613 | |||||||||||||||||||||||||||||||||||||||||||||||||
Net sales (eliminations) | $ | 745,939 | $ | 827,668 | $ | 479,402 | $ | (3,007) | $ | 2,050,002 | $ | 666,720 | $ | 660,105 | $ | 412,296 | $ | (2,297) | $ | 1,736,824 | |||||||||||||||||||||||||||||||||||||||
Reported operating margin | 26.2 | % | 25.7 | % | 26.4 | % | n/m | 23.2 | % | 26.4 | % | 22.8 | % | 25.2 | % | n/m | 22.0 | % | |||||||||||||||||||||||||||||||||||||||||
Adjusted operating margin | 27.2 | % | 27.0 | % | 26.4 | % | n/m | 24.3 | % | 27.4 | % | 23.1 | % | 25.7 | % | n/m | 22.6 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Reported net income attributable to IDEX | $ | 115,742 | $ | 103,848 | $ | 330,645 | $ | 276,710 | |||||||||||||||
+ Restructuring expenses and asset impairments | 3,204 | 2,917 | 8,568 | 6,758 | |||||||||||||||||||
+ Tax impact on restructuring expenses and asset impairments | (771) | (703) | (2,060) | (1,540) | |||||||||||||||||||
+ Fair value inventory step-up charges | 9,100 | — | 11,586 | 4,107 | |||||||||||||||||||
+ Tax impact on fair value inventory step-up charges | (1,961) | — | (2,707) | (932) | |||||||||||||||||||
+ Loss on early debt redemption | — | — | 8,561 | 8,421 | |||||||||||||||||||
+ Tax impact on loss on early debt redemption | — | — | (1,841) | (1,912) | |||||||||||||||||||
+ Termination of the U.S. pension plan | — | — | 9,688 | — | |||||||||||||||||||
+ Tax impact on termination of the U.S. pension plan | — | — | (2,083) | — | |||||||||||||||||||
+ Corporate transaction indemnity | (400) | — | 3,500 | — | |||||||||||||||||||
+ Tax impact on Corporate transaction indemnity | 85 | — | (754) | — | |||||||||||||||||||
Adjusted net income attributable to IDEX | $ | 124,999 | $ | 106,062 | $ | 363,103 | $ | 291,612 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Reported diluted EPS attributable to IDEX | $ | 1.51 | $ | 1.37 | $ | 4.33 | $ | 3.64 | |||||||||||||||
+ Restructuring expenses and asset impairments | 0.04 | 0.04 | 0.11 | 0.09 | |||||||||||||||||||
+ Tax impact on restructuring expenses and asset impairments | (0.01) | (0.01) | (0.03) | (0.02) | |||||||||||||||||||
+ Fair value inventory step-up charges | 0.12 | — | 0.15 | 0.05 | |||||||||||||||||||
+ Tax impact on fair value inventory step-up charges | (0.03) | — | (0.04) | (0.01) | |||||||||||||||||||
+ Loss on early debt redemption | — | — | 0.11 | 0.11 | |||||||||||||||||||
+ Tax impact on loss on early debt redemption | — | — | (0.02) | (0.02) | |||||||||||||||||||
+ Termination of the U.S. pension plan | — | — | 0.13 | — | |||||||||||||||||||
+ Tax impact on termination of the U.S. pension plan | — | — | (0.03) | — | |||||||||||||||||||
+ Corporate transaction indemnity | — | — | 0.05 | — | |||||||||||||||||||
+ Tax impact on Corporate transaction indemnity | — | — | (0.01) | — | |||||||||||||||||||
Adjusted diluted EPS attributable to IDEX | $ | 1.63 | $ | 1.40 | $ | 4.75 | $ | 3.84 | |||||||||||||||
Diluted weighted average shares outstanding | 76,452 | 75,960 | 76,408 | 76,119 |
Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FMT | HST | FSDP | Corporate | IDEX | FMT | HST | FSDP | Corporate | IDEX | ||||||||||||||||||||||||||||||||||||||||||||||||||
Reported operating income (loss) | $ | 69,020 | $ | 70,374 | $ | 39,126 | $ | (17,335) | $ | 161,185 | $ | 58,402 | $ | 49,912 | $ | 37,103 | $(14,204) | $ | 131,213 | ||||||||||||||||||||||||||||||||||||||||
- Other expense (income) - net | 384 | (236) | 50 | 432 | 630 | (719) | (32) | 340 | (293) | (704) | |||||||||||||||||||||||||||||||||||||||||||||||||
+ Depreciation and amortization | 7,737 | 15,335 | 3,787 | 110 | 26,969 | 7,163 | 10,230 | 3,854 | 104 | 21,351 | |||||||||||||||||||||||||||||||||||||||||||||||||
EBITDA | 76,373 | 85,945 | 42,863 | (17,657) | 187,524 | 66,284 | 60,174 | 40,617 | (13,807) | 153,268 | |||||||||||||||||||||||||||||||||||||||||||||||||
- Interest expense | 9,498 | 10,642 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
- Provision for income taxes | 35,343 | 17,427 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
- Depreciation and amortization | 26,969 | 21,351 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reported net income | $ | 115,714 | $ | 103,848 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net sales (eliminations) | $ | 251,297 | $ | 302,287 | $ | 159,106 | $ | (671) | $ | 712,019 | $ | 220,747 | $ | 220,378 | $ | 140,896 | $ | (908) | $ | 581,113 | |||||||||||||||||||||||||||||||||||||||
Reported operating margin | 27.5 | % | 23.3 | % | 24.6 | % | n/m | 22.6 | % | 26.5 | % | 22.6 | % | 26.3 | % | n/m | 22.6 | % | |||||||||||||||||||||||||||||||||||||||||
EBITDA margin | 30.4 | % | 28.4 | % | 26.9 | % | n/m | 26.3 | % | 30.0 | % | 27.3 | % | 28.8 | % | n/m | 26.4 | % | |||||||||||||||||||||||||||||||||||||||||
EBITDA interest coverage | 19.7 | 14.4 |
Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FMT | HST | FSDP | Corporate | IDEX | FMT | HST | FSDP | Corporate | IDEX | ||||||||||||||||||||||||||||||||||||||||||||||||||
Reported operating income (loss) | $ | 195,384 | $ | 212,987 | $ | 126,483 | $ | (59,866) | $ | 474,988 | $176,111 | $150,562 | $103,977 | $(48,902) | $381,748 | ||||||||||||||||||||||||||||||||||||||||||||
- Other expense (income) - net | 5,968 | (290) | 1,833 | 9,446 | 16,957 | (35) | (91) | 148 | 7,299 | 7,321 | |||||||||||||||||||||||||||||||||||||||||||||||||
+ Depreciation and amortization | 22,743 | 38,382 | 11,510 | 327 | 72,962 | 19,370 | 30,806 | 11,409 | 389 | 61,974 | |||||||||||||||||||||||||||||||||||||||||||||||||
EBITDA | 212,159 | 251,659 | 136,160 | (68,985) | 530,993 | 195,516 | 181,459 | 115,238 | (55,812) | 436,401 | |||||||||||||||||||||||||||||||||||||||||||||||||
- Interest expense | 31,479 | 33,958 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
- Provision for income taxes | 95,987 | 63,759 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
- Depreciation and amortization | 72,962 | 61,974 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reported net income | $330,565 | $276,710 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net sales (eliminations) | $ | 745,939 | $ | 827,668 | $ | 479,402 | $ | (3,007) | $ | 2,050,002 | $ | 666,720 | $ | 660,105 | $ | 412,296 | $ | (2,297) | $ | 1,736,824 | |||||||||||||||||||||||||||||||||||||||
Reported operating margin | 26.2 | % | 25.7 | % | 26.4 | % | n/m | 23.2 | % | 26.4 | % | 22.8 | % | 25.2 | % | n/m | 22.0 | % | |||||||||||||||||||||||||||||||||||||||||
EBITDA margin | 28.4 | % | 30.4 | % | 28.4 | % | n/m | 25.9 | % | 29.3 | % | 27.5 | % | 28.0 | % | n/m | 25.1 | % | |||||||||||||||||||||||||||||||||||||||||
EBITDA interest coverage | 16.9 | 12.9 |
Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FMT | HST | FSDP | Corporate | IDEX | FMT | HST | FSDP | Corporate | IDEX | ||||||||||||||||||||||||||||||||||||||||||||||||||
EBITDA(1) | $ | 76,373 | $ | 85,945 | $ | 42,863 | $ | (17,657) | $ | 187,524 | $ | 66,284 | $ | 60,174 | $ | 40,617 | $ | (13,807) | $ | 153,268 | |||||||||||||||||||||||||||||||||||||||
+ Restructuring expenses and asset impairments | 1,934 | 626 | (55) | 699 | 3,204 | 585 | 978 | 1,249 | 105 | 2,917 | |||||||||||||||||||||||||||||||||||||||||||||||||
+ Fair value inventory step-up charges | — | 9,100 | — | — | 9,100 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
+ Corporate transaction indemnity | — | — | — | (400) | (400) | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 78,307 | $ | 95,671 | $ | 42,808 | $ | (17,358) | $ | 199,428 | $ | 66,869 | $ | 61,152 | $ | 41,866 | $ | (13,702) | $ | 156,185 | |||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA margin | 31.2 | % | 31.6 | % | 26.9 | % | n/m | 28.0 | % | 30.3 | % | 27.7 | % | 29.7 | % | n/m | 26.9 | % | |||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA interest coverage | 21.0 | 14.7 |
Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FMT | HST | FSDP | Corporate | IDEX | FMT | HST | FSDP | Corporate | IDEX | ||||||||||||||||||||||||||||||||||||||||||||||||||
EBITDA(1) | $ | 212,159 | $ | 251,659 | $ | 136,160 | $ | (68,985) | $ | 530,993 | $ | 195,516 | $ | 181,459 | $ | 115,238 | $ | (55,812) | $ | 436,401 | |||||||||||||||||||||||||||||||||||||||
+ Restructuring expenses and asset impairments | 4,787 | 1,693 | 161 | 1,927 | 8,568 | 2,433 | 2,162 | 1,890 | 273 | 6,758 | |||||||||||||||||||||||||||||||||||||||||||||||||
+ Fair value inventory step-up charges | 2,486 | 9,100 | — | — | 11,586 | 4,107 | — | — | — | 4,107 | |||||||||||||||||||||||||||||||||||||||||||||||||
+ Loss on early debt redemption | — | — | — | 8,561 | 8,561 | — | — | — | 8,421 | 8,421 | |||||||||||||||||||||||||||||||||||||||||||||||||
+ Termination of the U.S. pension plan | 6,293 | — | 1,782 | 1,613 | 9,688 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
+ Corporate transaction indemnity | — | — | — | 3,500 | 3,500 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 225,725 | $ | 262,452 | $ | 138,103 | $ | (53,384) | $ | 572,896 | $ | 202,056 | $ | 183,621 | $ | 117,128 | $ | (47,118) | $ | 455,687 | |||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA margin | 30.3 | % | 31.7 | % | 28.8 | % | n/m | 27.9 | % | 30.3 | % | 27.8 | % | 28.4 | % | n/m | 26.2 | % | |||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA interest coverage | 18.2 | 13.4 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
September 30, | June 30, | September 30, | |||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2021 | 2020 | |||||||||||||||||||||||||
Cash flows from operating activities | $ | 156,633 | $ | 153,686 | $ | 136,272 | $ | 402,229 | $ | 407,899 | |||||||||||||||||||
- Capital expenditures | 14,894 | 18,353 | 15,984 | 45,487 | 39,438 | ||||||||||||||||||||||||
Free cash flow | $ | 141,739 | $ | 135,333 | $ | 120,288 | $ | 356,742 | $ | 368,461 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net sales | $ | 712,019 | $ | 581,113 | $ | 2,050,002 | $ | 1,736,824 | |||||||||||||||
Cost of sales | 400,450 | 329,613 | 1,139,738 | 978,568 | |||||||||||||||||||
Gross profit | 311,569 | 251,500 | 910,264 | 758,256 | |||||||||||||||||||
Selling, general and administrative expenses | 147,180 | 117,370 | 426,708 | 369,750 | |||||||||||||||||||
Restructuring expenses and asset impairments | 3,204 | 2,917 | 8,568 | 6,758 | |||||||||||||||||||
Operating income | 161,185 | 131,213 | 474,988 | 381,748 | |||||||||||||||||||
Other expense (income) - net | 630 | (704) | 16,957 | 7,321 | |||||||||||||||||||
Interest expense | 9,498 | 10,642 | 31,479 | 33,958 | |||||||||||||||||||
Income before income taxes | 151,057 | 121,275 | 426,552 | 340,469 | |||||||||||||||||||
Provision for income taxes | 35,343 | 17,427 | 95,987 | 63,759 | |||||||||||||||||||
Net income | $ | 115,714 | $ | 103,848 | $ | 330,565 | $ | 276,710 | |||||||||||||||
Net loss attributable to noncontrolling interest | 28 | — | 80 | — | |||||||||||||||||||
Net income attributable to IDEX | $ | 115,742 | $ | 103,848 | $ | 330,645 | $ | 276,710 | |||||||||||||||
Earnings per Common Share: | |||||||||||||||||||||||
Basic earnings per common share attributable to IDEX | $ | 1.52 | $ | 1.38 | $ | 4.35 | $ | 3.66 | |||||||||||||||
Diluted earnings per common share attributable to IDEX | $ | 1.51 | $ | 1.37 | $ | 4.33 | $ | 3.64 | |||||||||||||||
Share Data: | |||||||||||||||||||||||
Basic weighted average common shares outstanding | 76,010 | 75,352 | 75,957 | 75,423 | |||||||||||||||||||
Diluted weighted average common shares outstanding | 76,452 | 75,960 | 76,408 | 76,119 |
September 30, 2021 | December 31, 2020 | ||||||||||
Assets | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | 806,497 | $ | 1,025,851 | |||||||
Receivables - net | 366,779 | 293,146 | |||||||||
Inventories | 353,924 | 289,910 | |||||||||
Other current assets | 56,161 | 48,324 | |||||||||
Total current assets | 1,583,361 | 1,657,231 | |||||||||
Property, plant and equipment - net | 314,631 | 298,273 | |||||||||
Goodwill and intangible assets | 2,810,450 | 2,311,137 | |||||||||
Other noncurrent assets | 146,137 | 147,757 | |||||||||
Total assets | $ | 4,854,579 | $ | 4,414,398 | |||||||
Liabilities and equity | |||||||||||
Current liabilities | |||||||||||
Trade accounts payable | $ | 175,864 | $ | 151,993 | |||||||
Accrued expenses | 252,092 | 208,828 | |||||||||
Short-term borrowings | 35 | 88 | |||||||||
Dividends payable | 41,117 | 38,149 | |||||||||
Total current liabilities | 469,108 | 399,058 | |||||||||
Long-term borrowings | 1,190,078 | 1,044,354 | |||||||||
Other noncurrent liabilities | 469,110 | 430,660 | |||||||||
Total liabilities | 2,128,296 | 1,874,072 | |||||||||
Shareholders' equity | 2,726,245 | 2,540,203 | |||||||||
Noncontrolling interest | 38 | 123 | |||||||||
Total equity | 2,726,283 | 2,540,326 | |||||||||
Total liabilities and equity | $ | 4,854,579 | $ | 4,414,398 |
Nine Months Ended September 30, | |||||||||||
2021 | 2020 | ||||||||||
Cash flows from operating activities | |||||||||||
Net income | $ | 330,565 | $ | 276,710 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Asset impairments | 815 | 85 | |||||||||
Depreciation and amortization | 32,281 | 30,851 | |||||||||
Amortization of intangible assets | 40,681 | 31,123 | |||||||||
Amortization of debt issuance expenses | 1,354 | 1,351 | |||||||||
Share-based compensation expense | 18,575 | 21,155 | |||||||||
Deferred income taxes | (7,070) | 1,323 | |||||||||
Non-cash interest expense associated with forward starting swaps | 3,275 | 5,153 | |||||||||
Termination of the U.S. pension plan | 9,688 | — | |||||||||
Changes in (net of the effect from acquisitions/divestitures): | |||||||||||
Receivables | (59,249) | 33,291 | |||||||||
Inventories | (28,072) | 17,920 | |||||||||
Other current assets | 6,041 | (27,655) | |||||||||
Trade accounts payable | 20,962 | (11,496) | |||||||||
Deferred revenue | 14,817 | 27,179 | |||||||||
Accrued expenses | 17,595 | 125 | |||||||||
Other - net | (29) | 784 | |||||||||
Net cash flows provided by operating activities | 402,229 | 407,899 | |||||||||
Cash flows from investing activities | |||||||||||
Purchases of property, plant and equipment | (45,487) | (39,438) | |||||||||
Acquisition of businesses, net of cash acquired | (575,606) | (118,159) | |||||||||
Note receivable from collaborative partner | (4,200) | — | |||||||||
Proceeds from disposal of fixed assets | 250 | 2,230 | |||||||||
Other - net | 874 | (238) | |||||||||
Net cash flows used in investing activities | (624,169) | (155,605) | |||||||||
Cash flows from financing activities | |||||||||||
Borrowings under revolving credit facilities | — | 150,000 | |||||||||
Proceeds from issuance of 3.00% Senior Notes | — | 499,100 | |||||||||
Proceeds from issuance of 2.625% Senior Notes | 499,380 | — | |||||||||
Payment of 4.50% Senior Notes | — | (300,000) | |||||||||
Payment of 4.20% Senior Notes | (350,000) | — | |||||||||
Payments under revolving credit facilities | — | (150,000) | |||||||||
Payment of make-whole redemption premium | (6,659) | (6,756) | |||||||||
Debt issuance costs | (4,626) | (4,741) | |||||||||
Dividends paid | (120,289) | (114,248) | |||||||||
Proceeds from stock option exercises | 12,497 | 28,729 | |||||||||
Repurchases of common stock | — | (110,342) | |||||||||
Shares surrendered for tax withholding | (5,680) | (12,198) | |||||||||
Other - net | (74) | (352) | |||||||||
Net cash flows provided by (used in) financing activities | 24,549 | (20,808) | |||||||||
Effect of exchange rate changes on cash and cash equivalents | (21,963) | 13,691 | |||||||||
Net (decrease) increase in cash | (219,354) | 245,177 | |||||||||
Cash and cash equivalents at beginning of year | 1,025,851 | 632,581 | |||||||||
Cash and cash equivalents at end of period | $ | 806,497 | $ | 877,758 |
Three Months Ended September 30, (a) | Nine Months Ended September 30, (a) | |||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
Fluid & Metering Technologies | ||||||||||||||||||||||||||
Net sales | $ | 251,297 | $ | 220,747 | $ | 745,939 | $ | 666,720 | ||||||||||||||||||
Operating income (b) | 69,020 | 58,402 | 195,384 | 176,111 | ||||||||||||||||||||||
Operating margin | 27.5 | % | 26.5 | % | 26.2 | % | 26.4 | % | ||||||||||||||||||
EBITDA(c) | $ | 76,373 | $ | 66,284 | $ | 212,159 | $ | 195,516 | ||||||||||||||||||
EBITDA margin(c) | 30.4 | % | 30.0 | % | 28.4 | % | 29.3 | % | ||||||||||||||||||
Depreciation and amortization | $ | 7,737 | $ | 7,163 | $ | 22,743 | $ | 19,370 | ||||||||||||||||||
Capital expenditures | 4,644 | 2,452 | 12,928 | 8,774 | ||||||||||||||||||||||
Health & Science Technologies | ||||||||||||||||||||||||||
Net sales | $ | 302,287 | $ | 220,378 | $ | 827,668 | $ | 660,105 | ||||||||||||||||||
Operating income (b) | 70,374 | 49,912 | 212,987 | 150,562 | ||||||||||||||||||||||
Operating margin | 23.3 | % | 22.6 | % | 25.7 | % | 22.8 | % | ||||||||||||||||||
EBITDA(c) | $ | 85,945 | $ | 60,174 | $ | 251,659 | $ | 181,459 | ||||||||||||||||||
EBITDA margin(c) | 28.4 | % | 27.3 | % | 30.4 | % | 27.5 | % | ||||||||||||||||||
Depreciation and amortization | $ | 15,335 | $ | 10,230 | $ | 38,382 | $ | 30,806 | ||||||||||||||||||
Capital expenditures | 8,645 | 10,558 | 27,339 | 20,842 | ||||||||||||||||||||||
Fire & Safety/Diversified Products | ||||||||||||||||||||||||||
Net sales | $ | 159,106 | $ | 140,896 | $ | 479,402 | $ | 412,296 | ||||||||||||||||||
Operating income (b) | 39,126 | 37,103 | 126,483 | 103,977 | ||||||||||||||||||||||
Operating margin | 24.6 | % | 26.3 | % | 26.4 | % | 25.2 | % | ||||||||||||||||||
EBITDA(c) | $ | 42,863 | $ | 40,617 | $ | 136,160 | $ | 115,238 | ||||||||||||||||||
EBITDA margin(c) | 26.9 | % | 28.8 | % | 28.4 | % | 28.0 | % | ||||||||||||||||||
Depreciation and amortization | $ | 3,787 | $ | 3,854 | $ | 11,510 | $ | 11,409 | ||||||||||||||||||
Capital expenditures | 1,365 | 2,340 | 4,524 | 6,534 | ||||||||||||||||||||||
Corporate Office and Eliminations | ||||||||||||||||||||||||||
Intersegment sales eliminations | $ | (671) | $ | (908) | $ | (3,007) | $ | (2,297) | ||||||||||||||||||
Operating income (b) | (17,335) | (14,204) | (59,866) | (48,902) | ||||||||||||||||||||||
EBITDA(c) | (17,657) | (13,807) | (68,985) | (55,812) | ||||||||||||||||||||||
Depreciation and amortization (d) | 110 | 104 | 327 | 389 | ||||||||||||||||||||||
Capital expenditures | 240 | 3,003 | 696 | 3,288 | ||||||||||||||||||||||
Company | ||||||||||||||||||||||||||
Net sales | $ | 712,019 | $ | 581,113 | $ | 2,050,002 | $ | 1,736,824 | ||||||||||||||||||
Operating income | 161,185 | 131,213 | 474,988 | 381,748 | ||||||||||||||||||||||
Operating margin | 22.6 | % | 22.6 | % | 23.2 | % | 22.0 | % | ||||||||||||||||||
EBITDA(c) | $ | 187,524 | $ | 153,268 | $ | 530,993 | $ | 436,401 | ||||||||||||||||||
EBITDA margin(c) | 26.3 | % | 26.4 | % | 25.9 | % | 25.1 | % | ||||||||||||||||||
Depreciation and amortization (d) | $ | 26,969 | $ | 21,351 | $ | 72,962 | $ | 61,974 | ||||||||||||||||||
Capital expenditures | 14,894 | 18,353 | 45,487 | 39,438 | ||||||||||||||||||||||
Three Months Ended September 30, (a) | Nine Months Ended September 30, (a) | |||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
Fluid & Metering Technologies | ||||||||||||||||||||||||||
Net sales | $ | 251,297 | $ | 220,747 | $ | 745,939 | $ | 666,720 | ||||||||||||||||||
Adjusted operating income (b)(c) | 70,954 | 58,987 | 202,657 | 182,651 | ||||||||||||||||||||||
Adjusted operating margin(c) | 28.2 | % | 26.7 | % | 27.2 | % | 27.4 | % | ||||||||||||||||||
Adjusted EBITDA(c) | $ | 78,307 | $ | 66,869 | $ | 225,725 | $ | 202,056 | ||||||||||||||||||
Adjusted EBITDA margin(c) | 31.2 | % | 30.3 | % | 30.3 | % | 30.3 | % | ||||||||||||||||||
Depreciation and amortization | $ | 7,737 | $ | 7,163 | $ | 22,743 | $ | 19,370 | ||||||||||||||||||
Capital expenditures | 4,644 | 2,452 | 12,928 | 8,774 | ||||||||||||||||||||||
Health & Science Technologies | ||||||||||||||||||||||||||
Net sales | $ | 302,287 | $ | 220,378 | $ | 827,668 | $ | 660,105 | ||||||||||||||||||
Adjusted operating income (b)(c) | 80,100 | 50,890 | 223,780 | 152,724 | ||||||||||||||||||||||
Adjusted operating margin(c) | 26.5 | % | 23.1 | % | 27.0 | % | 23.1 | % | ||||||||||||||||||
Adjusted EBITDA(c) | $ | 95,671 | $ | 61,152 | $ | 262,452 | $ | 183,621 | ||||||||||||||||||
Adjusted EBITDA margin(c) | 31.6 | % | 27.7 | % | 31.7 | % | 27.8 | % | ||||||||||||||||||
Depreciation and amortization | $ | 15,335 | $ | 10,230 | $ | 38,382 | $ | 30,806 | ||||||||||||||||||
Capital expenditures | 8,645 | 10,558 | 27,339 | 20,842 | ||||||||||||||||||||||
Fire & Safety/Diversified Products | ||||||||||||||||||||||||||
Net sales | $ | 159,106 | $ | 140,896 | $ | 479,402 | $ | 412,296 | ||||||||||||||||||
Adjusted operating income (b)(c) | 39,071 | 38,352 | 126,644 | 105,867 | ||||||||||||||||||||||
Adjusted operating margin(c) | 24.6 | % | 27.2 | % | 26.4 | % | 25.7 | % | ||||||||||||||||||
Adjusted EBITDA(c) | $ | 42,808 | $ | 41,866 | $ | 138,103 | $ | 117,128 | ||||||||||||||||||
Adjusted EBITDA margin(c) | 26.9 | % | 29.7 | % | 28.8 | % | 28.4 | % | ||||||||||||||||||
Depreciation and amortization | $ | 3,787 | $ | 3,854 | $ | 11,510 | $ | 11,409 | ||||||||||||||||||
Capital expenditures | 1,365 | 2,340 | 4,524 | 6,534 | ||||||||||||||||||||||
Corporate Office and Eliminations | ||||||||||||||||||||||||||
Intersegment sales eliminations | $ | (671) | $ | (908) | $ | (3,007) | $ | (2,297) | ||||||||||||||||||
Adjusted operating income (b)(c) | (17,036) | (14,099) | (54,439) | (48,629) | ||||||||||||||||||||||
Adjusted EBITDA(c) | (17,358) | (13,702) | (53,384) | (47,118) | ||||||||||||||||||||||
Depreciation and amortization(d) | 110 | 104 | 327 | 389 | ||||||||||||||||||||||
Capital expenditures | 240 | 3,003 | 696 | 3,288 | ||||||||||||||||||||||
Company | ||||||||||||||||||||||||||
Net sales | $ | 712,019 | $ | 581,113 | $2,050,002 | $1,736,824 | ||||||||||||||||||||
Adjusted operating income(c) | 173,089 | 134,130 | 498,642 | 392,613 | ||||||||||||||||||||||
Adjusted operating margin(c) | 24.3 | % | 23.1 | % | 24.3 | % | 22.6 | % | ||||||||||||||||||
Adjusted EBITDA(c) | $ | 199,428 | $ | 156,185 | $ | 572,896 | $ | 455,687 | ||||||||||||||||||
Adjusted EBITDA margin(c) | 28.0 | % | 26.9 | % | 27.9 | % | 26.2 | % | ||||||||||||||||||
Depreciation and amortization (d) | $ | 26,969 | $ | 21,351 | $ | 72,962 | $ | 61,974 | ||||||||||||||||||
Capital expenditures | 14,894 | 18,353 | 45,487 | 39,438 | ||||||||||||||||||||||
(a) | Three and nine month data includes the results of both the ABEL Pumps acquisition (March 2021) and the Flow MD acquisition (February 2020) in the Fluid & Metering Technologies segment and the Airtech acquisition (June 2021) in the Health & Science Technologies segment from the date of acquisition. Three and nine month data also includes the results of CiDRA Precision Services (March 2021) in the Health & Science Technologies segment through the date of disposition. | |||||||||||||||||||||||||
(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 and debt discounts. |
>81&-/+7R8R(QP" 0Q%)@>P_"[P+#X!T2&R51]KF59;R3N\S#)7/]
MR+/EQCI@%OO,Q+7<#T:F(Y+Q[IT6J^'M2M)P"DEE<=2 %98V='R>!L=5<$\
MC-)[#1\C_LNZ1]IUN]U(C*V=H(P?1[B0;3]=D,@^A-+J!]RU0@H * "@#&U[
MP_8>)K-].U6%+FVDZHXZ$=&5AAD)S_ +7JM1GG\G@/XF_#M=^F27,MO$.EC<-/%Q_TZ/AF]O\
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M4%+9!90M],F-EZ _'$WBG2)[34KE[K4K2=F;S7+2M;R*AC
M?).2H?>AQPN%SC<,BTT ^@J8CY<_:6\8V4&E)X;B9);ZXFCFD08)@ACRP9C_
M O(^T*O4Q[R< KNG]!GJ7P:\.3>%_"EE:72F.XD5[B5#D%3.YD52#]UEC**
MZ]G# \TUW ]$U'4;?2+:6^O'$-O;HTDLASA$499B "3@=@"3V!-/81@^&O&^
MB^,#*-%NEO/LVSS=B2*$\S=LR711\VQ\ 9/RFD/8ZNF(* "@ H * /(/B=?9
M>WLE/0-,P^OR)_)_SKV<%#XJGR7YO]#AKO:/S_K\3RBO8.(* "@ H * "@ H
M * "@#UOX86/_'Q>D?W85/\ X^X_]%UXV-E\-/YO\E^IW4%O+Y?Y_H>LLP0%
MF. !DGT ZUXYVGRUJEZ=1NYKH_\ +61G'L"3M'X# _"OK:9PC#LDOGU_$\
M:3YFWW90K0D* "@ H * "@ H L9]-O5$EO=1M$
MZD=F&,CT93AE/56 8<@4O(-CXO\ V7I98O$-];*=T#6#,Q&=I>.XA6,C..JR
M2XR,X].009]R4Q!0!6N;R"S7?<2)"OK(ZH.PZL0.I _$>M*Z6^@>@ZWNH;I=
M\#I*O]Y#\U)%%UT GI@% 'S!^U'J_V71;+3%.&O+II6'M*Z6^@>@MO=0W:[[>1)4_O(RL/S4D4)KH&Q
M8I@% !0 4 48]3M)9/)CGA:0=461"PS_ +(.>X[=Z5UW0[%ZF(* "@"*:>.W
M7?*RQH.K,0H'XD@4MMP(+6_MKW/V:6*;'7RW5\8QUVD^H_,>M%T]A[%RF(*
M"@ H * "@ H * "@#S7XEWWDV<5HIP9Y-Q'^S&/_ (IE/X5ZF"C>;G_*OQ?_
M +G)7=HJ/=_D>)U[IYX4 % !0 4 % !0 4 % 'HOPVL?/OWNB/EMHSCV>3Y
M1_XZ'KS,9+E@H+[3_!?\&QU4%[S?9?G_ $SW&O!/1/FWQ;??VAJEQ(#E4?RU
M],1_)Q[$@M^-?3X>')2BNZN_GK^6AY51\TF_E]QS==1B% !0 4 % !0 4 %
M!0 4 % !0 4 % !0!WGP\U'['J7V=CA+I"GMO7YD/Z,H_P!ZO.QD.:GS+>+O
M\GH_T^XZ:,K2MW/:M4U&+2;62[F^[$N<=V/15'NQP!]>>*\.$'4DH1W?]7/0
ME)03D^A\R7U[+J,[W4YS)*Q8^G/0#T & !V KZJ$53BH1V1Y#;DVV5*LD*
M"@ H * "@ H * "@ H VM.\/:AJHW6L#NG]\X5/P=RJG'?!)K"=:G2TG))]M
MW]R-(PE+X5^AOCX>:L1G;$/8R#^@(KF^N4O/[C7V,_+[Q?\ A7>K>D7_ '\'
M^%'URE_>^[_@A[&?E]X?\*[U;TB_[^#_ H^N4O[WW?\$/8S\OO(V^'VKKTC
MC;Z2+_4BFL72[M?(7L9KI^(S_A -8_YY)_W]C_\ BJ?UNEW?W,/8S[?B@_X0
M#6/^>2?]_8__ (JCZW2[O[F'L9]OQ1Z)X&\-SZ<EXH264JJ@,&PB@G.5R/
MF8\C_9%>9B:T:KBH;*_EJ_\ AOQ.JE!PNY;L[^O/.D* /+OB/H?G1+J<0^:+
M"2X[H3\K?\!8X/LP[+7K8.KRMTGL]5Z]?O7Y>9QUX:W 'XUS^PI_R1^XTYY=W]XO_ DVJ_\ /U/_
M -_&_P :/84OY(_<'/+^9_>'_"3:K_S]3_\ ?QO\:/84OY(_<'/+^9_>'_"3
M:K_S]3_]_&_QH]A2_DC]P<\OYG]X?\)-JO\ S]3_ /?QO\:/84OY(_<'/+^9
M_>'_ DVJ_\ /U/_ -_&_P :/84OY(_<'/+^9_>'_"3:K_S]3_\ ?QO\:/84
MOY(_<'/+^9_>:NAZMJNJ7T-I]JGQ(XW?O&^X/F<]>R@UC5ITJ<)3Y(Z+33J]
M%^)<)2E)1N_O/H2OG#U H * "@#S?XB:)]KM1J$0_>VW#XZF(G_V1CGV4L3T
MKT\)5Y)>S>TMO7_@[>MCEK0NN9;K\CQ&O>/."@ H * "@ H * "@ H * "@
MH * "@#U/P9X+^T;=1U!?W?#11,/O^CN/[G=5/WNI^7 ;R,3B;7I4GKU?;R7
MGW?3UV[*5+[4MNB/8J\4[Q: "@ H * "@ H * "@ H * /#/V@YW;PW'I^
MMU:_M+10.Y+F8<=QNB4?4BI>GYC1[9:VZ6<*6\0Q'"BQJ/14 4?H!36F@B>F
M 4 % !0 4 % !0 4 ?"'C'_BM?BK'8CYX8;RUMR.O[NV59+@?]]+-]._2H[^
M?_#%;'W?5DA0!!2 ]=_P"&5+3_ *"LW_@*G_QZF ?\,J6G
M_05F_P# 5/\ X]0 H_94L\\ZK-C_ *]D'_M8_P J-0/K".-85$:#"H H'H ,
M ?E3VT$?$/B/_BJ/B]#:R'=%;7=LBJNO#1YZL5T6OW;?C8QJOE@_/3[_ /@'SK7TQY04 % !0 4
M% !0 4 % '4>#;'[?JL"$96-O-;Z1C
V #Z!XI
M/Q)H7]?U\P/H2F(^*]-_XK#XP2S?>AT^>0GN%%C!Y"D>QN%4_P# JC_/^OP1
M1]J59)2U*^CTRTFO9O\ 5VT4DS_[L:%V_0&D] /D7]F*QDU#4=6UZXYD*I%O
M/\3W$C338/7@Q1D^NX=>:2TT709]CU0CR;XX:O\ V-X.U!U.'N42U4=,^?(J
M2#_OT9#^';J$^W]=QHYO]F_1_P"S?":W1&&U"YGGST.U"+=1],PLP_WL]Z$!
M[7K&HIH]C TV3[
M9%\KM XC#$=2T,J[HF]5WL,YQM'RAZ]!&7JWQH\5?$C=I'@_3Y;59OW;S1DR
MS -US-M2&U4C(+M\PZK(II>OW#/7OA!\'HO $9U'4"MQK$Z[6=L_ NKW9&81"I_BE8+^:C<__ ([7/+%4H[._DE_PR_$T5*;Z6]3N=*^&
MMO!A[^0SG_GFF43Z%OOL/ILK@GC)/2FN7S>K_P E^)TQH)?$[^6W]?@>BVMI
M#8QB&W18HUZ*@ 'UXZD]R>3WKS)2Y8F()]*[0W4,@PZ'\JT+"Y
ML(67Y4'/>N6K@J\=D==+'4)_:,:#P]=R6ZJL)!^E=+;:%?QZ24>(].U;UOJ=
MB8QM95VO
M8PYE@=ZAN;G:A"CI3I7PN*KKAB=W(KLPT+)U+''B9WDJ=]RG:ZI'/.8B=K
M#L:T,;N:QKK2RNHK<0_*/XL5L0G*BM*Z56C[2UF9T'*E6]DW=$D;[6VMTI9(
MOXA367)J:!@WRFO(:Y7='J+56*-V,6KGVKRV_D=;^1T8J0W!%>JZLACM'/;%
M>2WQS=/]3753:9G+0Z+P]XUNM,E5+AV://WNXKU;3/$-IJMNN75MPKY\K0TS
M5[K2Y@\+G;GE2>*)TD]@4K'L^M^%+/5XB1&"3W'45Y;K_A"]T=V=4:2'U Z5
MW_A;QK#=A4D;YQU4GFNV>.QU>W/W22.
'I+IR$;@=:[JV^>W\O':LRZ86K'!(!%:2Z,B#M='E&NE=+L
MY;*>3"OPO?FO-KC6[RVMY; DMM)"/C!&?2O7];T8ZO=>9*A(#=*YO6_#MI:;
MV$>\[,[V'W<=JUI22W)J1/.+":\TF_M]2DB8N'#!I!DFM7Q;#97=G;:W;RGS
M[UR7B[@#J3^/\ZI7\4SV7GL1(&SC(^XO^-8\DSM;I"P&U"=I[\]J[H2YM3FG
M"QTFAZI;P6]A$\I0ARK