Idex Corporation · NYSE:IEX
Idex — Q1 2006 Earnings Presentation
21 slides from Idex's earnings presentation, Apr 20, 2006
Slide 1: IDEX Corporation First Quarter 2006 Earnings Release
IDEX Corporation First Quarter 2006 Earnings Release April 20, 2006
Slide 2: Agenda
Agenda Q1 Financial Performance D. Romeo Segment Results Progress Report L. Kingsley – Growth/Innovation – Acquisitions – Operational Excellence Wrap Up Q&A 2
Slide 3: Replay Information
Replay Information Dial toll-free: 800.642.1687 International: 706.645.9291 Conference ID: # 4088283 Log on to: www.idexcorp.com 3
Slide 4: Cautionary Statement Under the Private Securities Litigation Reform Act
Cautionary Statement Under the Private Securities Litigation Reform Act This presentation and discussion will include forward-looking statements. Our actual performance may differ materially from that indicated or suggested by any such statements. There are a number of factors that could cause those
Slide 5: Q1 2006 Performance: Orders and Sales
Q1 2006 Performance Orders +14% Sales +9% $303.3 $305 $290 $275.1 $290 $275 $266.6 $275 $252.1 $260 $260 $245 $245 $230 $230 $215 $215 $200 $200 Q1 '05 Q1 '06 Q1 '05 Q1 '06 Organic Sales Growth of 11 Percent 5
Slide 6: Q1 2006 Performance: Operating Margin
Q1 2006 Performance Operating Margin (+150 bp) 19.0% 18.0% 17.6% 17.0% 16.1% 16.0% 15.0% Q1 '05 Q1 '06 Operating Leverage Driving Margin Expansion 6
Slide 7: Q1 2006 Performance: Net Income and EPS
Q1 2006 Performance Net Income +27% EPS +24% $30.1 $0.56 $30.0 $0.60 $23.6 $25.0 $0.45 $20.0 $0.40 $15.0 $10.0 $0.20 Q1 '05 Q1 '06 Q1 '05 Q1 '06 Continued Strong Earnings Expansion 7
Slide 8: Q1 2006 Performance: Balance Sheet Highlights
Q1 2006 Performance Balance Sheet Highlights Q1 '06 Q4 '05 Total Assets $1,307 $1,244 Inventory $136.7 $126.6 Receivables $154.3 $132.5 Capital Expenditures $4.1 $5.8 Debt–to–Total Capitalization 16% 16% Free Cash Flow (quarter) $20 $11 (Q1 ’06) (Q1 ’05) Strong Balance Sheet and Free Cash Flow Gener
Slide 9: Q1 2006 Segment Performance: Pump Products
Q1 2006 Segment Performance Pump Products Q1 '06 Q1 '05 Change Orders $185.3 $154.0 20% Sales $165.3 $146.3 13% Organic 14% Currency (1)% Operating Income $31.6 $24.3 30% Operating Margin 19.1% 16.6% 250 bp 14 Percent Organic Sales Growth; Strong Margin Expansion 9
Slide 10: Q1 2006 Segment Performance: Dispensing Equipment
Q1 2006 Segment Performance Dispensing Equipment Q1'06 Q1 '05 Change Orders $54.6 $55.4 (1)% Sales $49.6 $51.3 (3)% Organic --% Currency (3)% Operating Income $11.4 $11.6 (1)% Operating Margin 23.0% 22.6% 40 bp Strong Domestic Performance; Continued Challenging Conditions in Europe 10
Slide 11: Q1 2006 Segment Performance: Other Engineered Products
Q1 2006 Segment Performance Other Engineered Products Q1 '06 Q1 '05 Change Orders $64.4 $58.4 10% Sales $61.2 $55.6 10% Organic 14% Currency (4)% Operating Income $13.7 $11.6 18% Operating Margin 22.3% 20.8% 150 bp 14 Percent Organic Growth; Strong Margin Expansion 11
Slide 12: Q1 2006 Progress Report
Q1 2006 Progress Report Innovation → Growth Operational Leverage → Margin Expansion Cash Flow → Refueling Reinvestment Reinvestment – Innovation/Organic – Strategic Acquisitions Discipline That Delivers Growth 12
Slide 13: Growth/Innovation: Pump Products
Growth/Innovation: Pump Products Organic sales growth of 14% Growth in both orders and sales in all business units Continued strong broad based industrial demand driven by CapEx spending Increased biotech and pharmaceutical demand – Asia Pacific generic drug discovery Continued penetration
Slide 14: Growth/Innovation: Dispensing Equipment
Growth/Innovation: Dispensing Equipment Flat year-over-year organic growth – Domestic up 12% – International down 7% Continued European market weakness Continued strong domestic demand – Paint retail expansion – Specific customer program/replacements – Growth in parts and service – New applica
Slide 15: Growth/Innovation: Engineered Products
Growth/Innovation: Engineered Products Organic sales growth 14% Strong global demand for hydraulic products (rescue tools) – OEM rescue tool orders – Re-railing – New products and new markets – China expansion (Dinglee) Continued share gain and wins in fire suppression – London Fire Brigade pu
Slide 16: Acquisition of Airshore
Acquisition of Airshore (January 12, 2006) Expands our capability for first responder/homeland security Product line acquisition: Pneumatic and manual stabilization struts and shoring devices for vehicular and structural collapse Opportunity to leverage IDEX sales and dealer network Signific
Slide 17: Acquisition of JUN-AIR
Acquisition of JUN-AIR (February 28, 2006) Extension of our position in air-moving products Strengthens IDEX’s position in medical equipment market Leading global provider of low decibel, ultra-quiet vacuum compressors Applications include: – Laboratories – Dental clinics – Medical equipment
Slide 18: Building to Demand in a High Mix Environment
High Number of Products Mixed Model Very High Mix Lean (complete customization) Mixed Model Low Lean Lean Low Degree of Customization High PFM X X X X X Product C X X X X X Product E X X MMVSM Product F X X Building to Demand in a High Mix Environment 18
Slide 19: Mixed Model Lean
Mixed Model Lean The way we run our business 20% deployed across IDEX Results: – Improved plant cycle times and lead times – Leveraging plant & equipment – Achieving labor productivity – Expanding available floor space – Reduced inventory requirements – The means for us to expand our applied p
Slide 20: Summary
Summary Encouraged by Q1 performance – Organic sales growth +11% – Continued earnings growth – Solid free cash flow generation Continued operating leverage through operational excellence initiatives and a more integrated approach Recent acquisitions strengthen our existing position and complem
Slide 21: Q&A
|) > ¢ Q1 2006 Performance IDEX CORPORATION "Q&A 21