First Quarter 2024 Earnings
April 24, 2024
Cautionary Statement
Cautionary Statement Under the Private Securities Litigation Reform Act; Non-GAAP Measures
This presentation contains "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. These statements may relate to, among other things, the Company's second quarter 2024 and full year 2024 outlook including expected sales, expected organic sales, expected earnings per share, expected adjusted earnings per share, estimated net income and estimated adjusted EBITDA and the assumptions underlying these expectations, anticipated future acquisition behavior, resource deployment and focus and organic and inorganic growth, anticipated trends in end markets, and the anticipated benefits of the Company's recent acquisitions, and are indicated by words or phrases such as "anticipates," "estimates," "plans," "guidance," "expects," "projects," "forecasts," "should," "could," "will," "management believes," "the Company believes," "the Company intends" and similar words or phrases. These statements are subject to inherent uncertainties and risks that could cause actual results to differ materially from those anticipated at the date of this presentation.
The risks and uncertainties include, but are not limited to, the following: levels of industrial activity and economic conditions in the U.S. and other countries around the world, including uncertainties in the financial markets; pricing pressures, including inflation and rising interest rates, and other competitive factors and levels of capital spending in certain industries; the impact of catastrophic weather events, natural disasters and public health threats; economic and political consequences resulting from terrorist attacks and wars; the Company's ability to make acquisitions and to integrate and operate acquired businesses on a profitable basis; cybersecurity incidents; the relationship of the U.S. dollar to other currencies and its impact on pricing and cost competitiveness; political and economic conditions in foreign countries in which the Company operates; developments with respect to trade policy and tariffs; interest rates; capacity utilization and the effect this has on costs; labor markets; supply chain conditions; market conditions and material costs; risks related to environmental, social and corporate governance issues, including those related to climate change and sustainability; and developments with respect to contingencies, such as litigation and environmental matters.
Additional factors that could cause actual results to differ materially from those reflected in the forward looking statements include, but are not limited to, the risks discussed in the "Risk Factors" section included in the Company's most recent annual report on Form 10-K and the Company's subsequent quarterly reports filed with the Securities and Exchange Commission ("SEC") and the other risks discussed in the Company's filings with the SEC. The forward-looking statements included here are only made as of the date of this presentation, and management undertakes no obligation to publicly update them to reflect subsequent events or circumstances, except as may be required by law. Investors are cautioned not to rely unduly on forward-looking statements when evaluating the information presented here.
This presentation contains non-GAAP financial information. Reconciliations of non-GAAP measures are included either in this presentation or our earnings release which is available on our website.
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IDEX Overview
First Quarter Results
- Solid execution and strong cash generation
- Sequential orders lift in Industrials & Water
- Differing rates of recovery in HST targeted markets
- Dispensing better performance than expected
Looking Ahead
- Strength in Water due to global municipal budgets
- Industrial day rates steady
- Life Science & Analytical Instrumentation recovery timing remains uncertain
- Continued focus on targeted growth bets, M&A, talent and execution
Q1 2024 Financial Performance
($ in millions excl. EPS)
Sales | Adj. EBITDA Margin* | ||||
-6% Organic* | -120 bps | ||||
$845 | $801 | 27.2% | 26.0% | ||
Q1'23 | Q1'24 | Q1'23 | Q1'24 | ||
Organic | FX | M&A | YoY∆ | ||
Sales Growth | -6% | - | 1% | -5% |
Adj. EPS*
-10% | |
$2.09 | $1.88 |
Q1'23 | Q1'24 |
Free Cash Flow*
+13% | |
$121 | $137 |
Q1'23 | Q1'24 |
Solid results despite challenging comps and strong Free Cash Flow
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*This presentation contains non-GAAP financial information. Reconciliations of non-GAAP measures are included either in this presentation or in our Q1 '24 earnings release.
Q1 2024 Adjusted EBITDA Walk
($ in millions)
1Q'23 Act | Organic Flow | Price / | Mix | Resource | Acq / Div / FX 1Q'24 ACT |
Adj. EBITDA | Thru | Productivity / | Investment / | Adj. EBITDA | |
Inflation | Discretionary |
Flow thru @
PY GM%*
45.2%
Organic flow | Total flow | |
thru** | through | |
(50%) | (48%) |
**Excludes Acquisition, Divestiture, FX
Price & Productivity performance mitigating volume headwinds
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*This presentation contains non-GAAP financial information. Reconciliations of non-GAAP measures are included either in this presentation or in our Q1 '24 earnings release.
Q1 2024: Fluid & Metering Technologies
($ in millions)
Orders | Sales | Adj. EBITDA Margin* | ||||
-7% Organic* | -3% Organic* | +60 bps | ||||
$336 | $314 | $322 | $314 | 33.0% | 33.6% | |
Q1'23 | Q1'24 | Q1'23 | Q1'24 | Q1'23 | Q1'24 | |
Organic | FX | M&A | YoY∆ | |||
Sales Growth | -3% | - | - | -3% |
Highlights
- Water project timing headwind
- Energy market remains stable
- Ag cyclically down
- Profitability improvement driven by price/cost and productivity
Key Markets Health
2024
Water Solutions & Services
Diversified Industrials
Agriculture
Positive | Stable / | Flat / No signs of bounce | |
Catalysts | moderate lift | back / Cyclically down | |
Positive market signals continue excluding Agriculture
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*This presentation contains non-GAAP financial information. Reconciliations of non-GAAP measures are included either in this presentation or in our Q1 '24 earnings release.
Q1 2024: Health & Science Technologies
($ in millions)
Orders | Sales | Adj. EBITDA Margin* | ||||
-2% Organic* | -13% Organic* | -250 bps | ||||
$318 | $314 | $351 | $310 | 28.7% | 26.2% | |
Q1'23 | Q1'24 | Q1'23 | Q1'24 | Q1'23 | Q1'24 | |
Organic | FX | M&A | YoY∆ | |||
Sales Growth | -13% | - | 1% | -12% |
Highlights
- Life Science / Analytical Instrumentation in line with expectation
- Semiconductor improving
- Industrials stable
- Lower volume leverage partially offset by price/cost and operational productivity
Key Markets Health
2024
Industrials
Semiconductor
Life Sciences
Analytical Instrumentation
Positive | Stable / | Flat / No signs of bounce | |
Catalysts | moderate lift | back / Cyclically down | |
Mixed Market Signals, Focus on Growth Bets
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*This presentation contains non-GAAP financial information. Reconciliations of non-GAAP measures are included either in this presentation or in our Q1 '24 earnings release.
Q1 2024: Fire & Safety / Diversified Products
($ in millions)
Orders | Sales | Adj. EBITDA Margin* | ||||
+10% Organic* | +2% Organic* | +40 bps | ||||
$194 | $174 | $178 | 28.5% | 28.9% | ||
$176 | ||||||
Q1'23 | Q1'24 | Q1'23 | Q1'24 | Q1'23 | Q1'24 | |
Organic | FX | M&A | YoY∆ | |||
Sales Growth | 2% | - | 2% |
Highlights
- Dispensing project wins in emerging markets
- Stability in Fire & Rescue
- BAND-ITstrength in automotive
- Profitability improvement driven by price/cost performance
Key Markets Health
2024
Fire & Rescue
Auto, Aero & Defense
Dispensing
Positive | Stable / | Flat / No signs of bounce | |
Catalysts | moderate lift | back / Cyclically down | |
Dispensing wins in emerging markets with margin expansion
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*This presentation contains non-GAAP financial information. Reconciliations of non-GAAP measures are included either in this presentation or in our Q1 '24 earnings release.
2024 Guidance Summary
Second Quarter | Full Year | ||||
Current Guidance | Current Guidance | ||||
Revenue % vs Prior Year | Organic* | (3%) - (2%) | 0% - 2% growth | ||
EBITDA % | Adjusted* | ~27.5% | ~28% | ||
Earnings Per Share | Reported* | ||||
$1.75 - $1.80 | $7.13 - $7.43 | ||||
Earnings Per Share | Adjusted* | $2.00 - $2.05 | $8.15 - $8.45 |
Other Modeling Items: | ||
FX Impact on Sales | 0% -a) | 0% |
Acquisition/Divesture impact on Sales | 0% | ~1% |
Depreciation $ | ~$17 Million | ~$71 Million |
Amortization $ | ~$24 Million | ~$98 Million |
Net Interest $ | ~$10 Million | ~$43 Million |
Capital Expenditures | $75+ Million | |
Tax Rate | ~23% | ~23% |
Free Cash Flow % of Adjusted Net Income | 100%+ | |
Corporate costs | ~$22 Million | ~$95 Million |
(a - Based on 3/31/2024 FX Rate
Earnings per share estimates exclude all future acquisitions and any future restructuring expenses
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*This presentation contains non-GAAP financial information. Reconciliations of non-GAAP measures are included either in this presentation or in our Q1 '24 earnings release.
IDEX Value Drivers
ORGANIC | INORGANIC | MARGIN |
GROWTH | GROWTH | EXPANSION |
• | Leading market entitlement | • Strong funnel of M&A opportunities | • Leading the IDEX Op Model | ||
• | Pricing Execution | • | Fast growing companies | • | 80/20 |
• | Growth Bets Prioritization | • | Disciplined capital deployment | • | Leverage |
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IDEX Corporation published this content on 24 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 April 2024 13:26:05 UTC.