EX-99.1 2 iex-20190725xex991.htm EXHIBIT 99.1
For further information: TRADED: NYSE (IEX) EX-99.1
Investor Contact:
William K. Grogan
Senior Vice President and Chief Financial Officer
(847) 498-7070
THURSDAY, JULY 25, 2019
IDEX REPORTS SECOND QUARTER RESULTS;
DELIVERS RECORD OPERATING MARGIN AND EPS;
RAISES LOW END OF FULL YEAR EPS GUIDANCE
LAKE FOREST, IL, JULY 25 - IDEX Corporation (NYSE: IEX) today announced its financial results for the three month period ended June 30, 2019.
Second Quarter 2019 Highlights

• | Sales were up 1 percent overall and 3 percent organically

• | Reported operating margin was 24.2 percent with adjusted operating margin of 24.5 percent, up 90 bps

• | Reported EPS was $1.48 with adjusted EPS of $1.50, up 7 percent

• | Acquired Velcora Holding AB in July

Second Quarter 2019
Orders of $628.1 million were down 2 percent compared with the prior year period (flat organic and -2 percent foreign currency translation).
Sales of $642.1 million were up 1 percent compared with the prior year period (+3 percent organic and -2 percent foreign currency translation).
Gross margin of 45.5 percent was up 20 basis points compared with the prior year period primarily due to price, volume leverage and productivity initiatives, partially offset by higher engineering investments across all three segments.
Operating income of $155.3 million resulted in an operating margin of 24.2 percent. Excluding $2.1 million of restructuring expenses, adjusted operating income was $157.4 million with an adjusted operating margin of 24.5 percent, up 90 basis points compared with the adjusted prior year period primarily due to gross margin expansion, lower 2019 amortization and variable compensation costs and the stamp duty charge included in the prior year. Adjusted operating income drove adjusted EBITDA of $177.0 million which was 28 percent of sales and covered interest expense by 16 times.
Provision for income taxes of $31.4 million in the second quarter of 2019 resulted in an effective tax rate (ETR) of 21.7 percent, which was flat compared with the prior year ETR. The 21.7 percent second quarter ETR was 80 basis points lower than our previously guided rate mainly due to a higher excess tax benefit from stock option exercises.
Net income was $113.2 million which resulted in EPS of $1.48. Excluding restructuring expenses, adjusted EPS was $1.50, an increase of 10 cents, or 7 percent, from the adjusted prior year period EPS.
Cash from operations of $131.2 million led to free cash flow of $118.3 million, which was up 8 percent from the prior year period and 103 percent of adjusted net income. The increase in free cash flow was primarily due to increased earnings and favorable operating working capital, partially offset by higher capital expenditures in the second quarter of 2019.

The Company repurchased 19 thousand shares of common stock for $3.0 million in the second quarter of 2019, at an average price of $154.73.

“Our performance in the second quarter was a great example of how our teams can execute in a volatile environment. Lingering trade tensions during the second quarter caused growth to decelerate across the global economy as companies are employing a wait and see approach in the near term. We also continue to see specific market pressure within our agriculture, semiconductor and auto end markets. In spite of this pressure, we grew organic sales by 3 percent across all three segments. Adjusted operating margin remains a great story, increasing 90 basis points and reaching an all-time quarterly high. Adjusted EPS grew 7 percent and reached a record high of $1.50. Overall, I am pleased with our second quarter operating results in this choppy environment.
Our commitment to invest in the best organic growth opportunities continues to be paramount as the second quarter was our tenth consecutive quarter of organic sales growth. M&A remains a top priority for the Company as well, and last week we announced the acquisition of Velcora Holding, a great addition to our Sealing Solutions platform within our Health & Science segment. The M&A funnel is strong, and our balance sheet has significant capacity to support additional opportunities.
Despite the flat order growth in the second quarter and an uncertain macro environment, we expect to continue our streak of quarterly organic sales growth and margin expansion for the balance of the year. As a result, we are raising the low end of our full year earnings guidance by 8 cents. Full year 2019 adjusted EPS is now projected to be $5.78 to $5.85, with full year organic revenue growth expectations of 3 to 4 percent. Third quarter EPS is projected to be $1.45 to $1.47, with organic revenue growth of approximately 3 percent.”
| Andrew K. Silvernail
| Chairman and Chief Executive Officer

Second Quarter 2019 Segment Highlights
Fluid & Metering Technologies

• | Sales of $246.2 million reflected a 1 percent increase compared to the second quarter of 2018 (+3 percent organic and -2 percent foreign currency translation).

• | Operating income of $74.1 million resulted in an operating margin of 30.1 percent. Excluding $0.9 million of restructuring expenses, adjusted operating income was $75.0 million with an adjusted operating margin of 30.5 percent, a 100 basis point increase compared to the adjusted prior year period primarily due to higher volume, price and productivity initiatives, partially offset by higher engineering investments.

• | EBITDA of $79.5 million resulted in an EBITDA margin of 32.3 percent. Excluding $0.9 million of restructuring expenses, adjusted EBITDA of $80.4 million resulted in an adjusted EBITDA margin of 32.7 percent, a 110 basis point increase compared to the adjusted prior year period primarily due to increased operating income.

Health & Science Technologies

• | Sales of $232.3 million reflected a 2 percent increase compared to the second quarter of 2018 (+3 percent organic, +1 percent acquisition and -2 percent foreign currency translation).

• | Operating income of $56.8 million resulted in an operating margin of 24.4 percent. Excluding $0.3 million of restructuring expenses, adjusted operating income was $57.1 million with an adjusted operating margin of 24.6 percent, a 100 basis point increase compared to the adjusted prior year period primarily due to higher volume and lower amortization, partially offset by higher engineering investments.

• | EBITDA of $66.3 million resulted in an EBITDA margin of 28.6 percent. Excluding $0.3 million of restructuring expenses, adjusted EBITDA of $66.6 million resulted in an adjusted EBITDA margin of 28.7 percent, a 40 basis point increase compared to the adjusted prior year period primarily due to increased operating income.

Fire & Safety/Diversified Products

• | Sales of $164.0 million were flat compared to the second quarter of 2018 (+3 percent organic and -3 percent foreign currency translation).

• | Operating income of $43.6 million resulted in an operating margin of 26.6 percent. Excluding $0.8 million of restructuring expenses, adjusted operating income was $44.4 million with an adjusted operating margin of 27.1 percent, a 100 basis point decrease compared to the adjusted prior year period primarily due to product mix and higher engineering investments.

• | EBITDA of $47.5 million resulted in an EBITDA margin of 28.9 percent. Excluding $0.8 million of restructuring expenses, adjusted EBITDA of $48.3 million resulted in an adjusted EBITDA margin of 29.4 percent, a 90 basis point decrease compared to the adjusted prior year period primarily due to a decrease in operating income.

For the second quarter of 2019, Fluid & Metering Technologies contributed 38 percent of sales, 42 percent of operating income and 41 percent of EBITDA; Health & Science Technologies accounted for 36 percent of sales, 33 percent of operating income and 34 percent of EBITDA; and Fire & Safety/Diversified Products represented 26 percent of sales, 25 percent of operating income and 25 percent of EBITDA.
Corporate Costs
Corporate costs decreased to $19.2 million in the second quarter of 2019 compared to $21.6 million in the second quarter of 2018, primarily due to the prior year period including a $2.2 million stamp duty in Switzerland associated with the restructuring of intercompany loans.
Acquisition
In July 2019, the Company acquired Velcora Holding AB and its Roplan and Steridose businesses. Roplan is a global manufacturer of custom mechanical and shaft seals for a variety of end markets including food & beverage, marine, chemical, wastewater and water treatment. Steridose develops engineered hygienic mixers and valves for the global biopharmaceutical industry. Roplan and Steridose, with annual revenue of approximately $40 million, will operate within the Health & Science Technologies segment.
Non-U.S. GAAP Measures of Financial Performance
The Company supplements certain U.S. GAAP financial performance metrics with non-U.S. GAAP financial performance metrics in order to provide investors with better insight and increased transparency while also allowing for a more comprehensive understanding of the financial information used by management in its decision making. Reconciliations of non-U.S. GAAP financial performance metrics to their most comparable U.S. GAAP financial performance metrics are defined and presented below and should not be considered a substitute for, nor superior to, the financial data prepared in accordance with U.S. GAAP. There were no adjustments to U.S. GAAP financial performance metrics other than the items noted below.

• | Organic orders and sales are calculated excluding amounts from acquired or divested businesses during the first twelve months of ownership or divestiture and the impact of foreign currency translation.

• | Adjusted operating income is calculated as operating income plus restructuring expenses.

• | Adjusted operating margin is calculated as adjusted operating income divided by net sales.

• | Adjusted net income is calculated as net income plus restructuring expenses, net of the statutory tax expense or benefit.

• | EBITDA is calculated as net income plus interest expense plus provision for income taxes plus depreciation and amortization. We reconciled EBITDA to net income on a consolidated basis as we do not allocate consolidated interest expense or consolidated provision for income taxes to our segments.

• | Adjusted EBITDA is calculated as EBITDA plus restructuring expenses.

• | Free cash flow is calculated as cash flow from operating activities less capital expenditures.

Table 1: Reconciliations of the Change in Net Sales to Organic Net Sales

| Three Months Ended June 30, 2019 |  | Six Months Ended June 30, 2019
| FMT |  | HST |  | FSDP |  | IDEX |  | FMT |  | HST |  | FSDP |  | IDEX
Change in net sales | 1 | % |  | 2 | % |  | — | % |  | 1 | % |  | 3 | % |  | 2 | % |  | (1 | )% |  | 1 | %
- Net impact from acquisitions | — | % |  | 1 | % |  | — | % |  | — | % |  | — | % |  | 1 | % |  | — | % |  | — | %
- Impact from FX | (2 | )% |  | (2 | )% |  | (3 | )% |  | (2 | )% |  | (2 | )% |  | (2 | )% |  | (3 | )% |  | (2 | )%
Change in organic net sales | 3 | % |  | 3 | % |  | 3 | % |  | 3 | % |  | 5 | % |  | 3 | % |  | 2 | % |  | 3 | %

Table 2: Reconciliations of Reported-to-Adjusted Operating Income and Margin (dollars in thousands)

| Three Months Ended June 30,
| 2019 |  | 2018
| FMT |  | HST |  | FSDP |  | Corporate |  | IDEX |  | FMT |  | HST |  | FSDP |  | Corporate |  | IDEX
Reported operating income (loss) | $ | 74,146 |  |  | $ | 56,763 |  |  | $ | 43,614 |  |  | $ | (19,240 | ) |  | $ | 155,283 |  |  | $ | 71,228 |  |  | $ | 52,569 |  |  | $ | 45,882 |  |  | $ | (21,848 | ) |  | $ | 147,831 |
+ Restructuring expenses | 930 |  |  | 330 |  |  | 819 |  |  | 47 |  |  | 2,126 |  |  | 343 |  |  | 1,123 |  |  | 267 |  |  | 255 |  |  | 1,988 |
Adjusted operating income (loss) | $ | 75,076 |  |  | $ | 57,093 |  |  | $ | 44,433 |  |  | $ | (19,193 | ) |  | $ | 157,409 |  |  | $ | 71,571 |  |  | $ | 53,692 |  |  | $ | 46,149 |  |  | $ | (21,593 | ) |  | $ | 149,819 |
Net sales (eliminations) | $ | 246,189 |  |  | $ | 232,253 |  |  | $ | 164,043 |  |  | $ | (386 | ) |  | $ | 642,099 |  |  | $ | 242,800 |  |  | $ | 227,403 |  |  | $ | 164,300 |  |  | $ | (143 | ) |  | $ | 634,360 |
Reported operating margin | 30.1 | % |  | 24.4 | % |  | 26.6 | % |  | n/m |  |  | 24.2 | % |  | 29.3 | % |  | 23.1 | % |  | 27.9 | % |  | n/m |  |  | 23.3 | %
Adjusted operating margin | 30.5 | % |  | 24.6 | % |  | 27.1 | % |  | n/m |  |  | 24.5 | % |  | 29.5 | % |  | 23.6 | % |  | 28.1 | % |  | n/m |  |  | 23.6 | %

| Six Months Ended June 30,
| 2019 |  | 2018
| FMT |  | HST |  | FSDP |  | Corporate |  | IDEX |  | FMT |  | HST |  | FSDP |  | Corporate |  | IDEX
Reported operating income (loss) | $ | 146,012 |  |  | $ | 110,917 |  |  | $ | 83,942 |  |  | $ | (37,806 | ) |  | $ | 303,065 |  |  | $ | 137,394 |  |  | $ | 104,375 |  |  | $ | 85,436 |  |  | $ | (42,691 | ) |  | $ | 284,514 |
+ Restructuring expenses | 930 |  |  | 330 |  |  | 819 |  |  | 47 |  |  | 2,126 |  |  | 486 |  |  | 2,182 |  |  | 367 |  |  | 595 |  |  | 3,630 |
Adjusted operating income (loss) | $ | 146,942 |  |  | $ | 111,247 |  |  | $ | 84,761 |  |  | $ | (37,759 | ) |  | $ | 305,191 |  |  | $ | 137,880 |  |  | $ | 106,557 |  |  | $ | 85,803 |  |  | $ | (42,096 | ) |  | $ | 288,144 |
Net sales (eliminations) | $ | 488,711 |  |  | $ | 457,543 |  |  | $ | 320,202 |  |  | $ | (2,126 | ) |  | $ | 1,264,330 |  |  | $ | 475,133 |  |  | $ | 448,478 |  |  | $ | 323,473 |  |  | $ | (400 | ) |  | $ | 1,246,684 |
Reported operating margin | 29.9 | % |  | 24.2 | % |  | 26.2 | % |  | n/m |  |  | 24.0 | % |  | 28.9 | % |  | 23.3 | % |  | 26.4 | % |  | n/m |  |  | 22.8 | %
Adjusted operating margin | 30.1 | % |  | 24.3 | % |  | 26.5 | % |  | n/m |  |  | 24.1 | % |  | 29.0 | % |  | 23.8 | % |  | 26.5 | % |  | n/m |  |  | 23.1 | %

Table 3: Reconciliations of Reported-to-Adjusted Net Income and EPS (in thousands, except EPS)

| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2019 |  | 2018 |  | 2019 |  | 2018
Reported net income | $ | 113,209 |  |  | $ | 107,126 |  |  | $ | 223,477 |  |  | $ | 206,084 |
+ Restructuring expenses | 2,126 |  |  | 1,988 |  |  | 2,126 |  |  | 3,630 |
+ Tax impact on restructuring expenses | (560 | ) |  | (494 | ) |  | (560 | ) |  | (873 | )
Adjusted net income | $ | 114,775 |  |  | $ | 108,620 |  |  | $ | 225,043 |  |  | $ | 208,841 |

| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2019 |  | 2018 |  | 2019 |  | 2018
Reported diluted EPS | $ | 1.48 |  |  | $ | 1.38 |  |  | $ | 2.92 |  |  | $ | 2.65 |
+ Restructuring expenses | 0.03 |  |  | 0.03 |  |  | 0.03 |  |  | 0.05 |
+ Tax impact on restructuring expenses | (0.01 | ) |  | (0.01 | ) |  | (0.01 | ) |  | (0.01 | )
Adjusted diluted EPS | $ | 1.50 |  |  | $ | 1.40 |  |  | $ | 2.94 |  |  | $ | 2.69 |
Diluted weighted average shares outstanding | 76,387 |  |  | 77,704 |  |  | 76,334 |  |  | 77,722 |

Table 4: Reconciliations of EBITDA to Net Income (dollars in thousands)

| Three Months Ended June 30,
| 2019 |  | 2018
| FMT |  | HST |  | FSDP |  | Corporate |  | IDEX |  | FMT |  | HST |  | FSDP |  | Corporate |  | IDEX
Reported operating income (loss) | $ | 74,146 |  |  | $ | 56,763 |  |  | $ | 43,614 |  |  | $ | (19,240 | ) |  | $ | 155,283 |  |  | $ | 71,228 |  |  | $ | 52,569 |  |  | $ | 45,882 |  |  | $ | (21,848 | ) |  | $ | 147,831 |
- Other (income) expense - net | 239 |  |  | 80 |  |  | (140 | ) |  | (557 | ) |  | (378 | ) |  | 511 |  |  | (463 | ) |  | (45 | ) |  | (53 | ) |  | (50 | )
+ Depreciation and amortization | 5,640 |  |  | 9,635 |  |  | 3,717 |  |  | 172 |  |  | 19,164 |  |  | 5,707 |  |  | 10,090 |  |  | 3,597 |  |  | 176 |  |  | 19,570 |
EBITDA | 79,547 |  |  | 66,318 |  |  | 47,471 |  |  | (18,511 | ) |  | 174,825 |  |  | 76,424 |  |  | 63,122 |  |  | 49,524 |  |  | (21,619 | ) |  | 167,451 |
- Interest expense |  |  |  |  |  |  |  |  | 11,011 |  |  |  |  |  |  |  |  |  |  | 11,140 |
- Provision for income taxes |  |  |  |  |  |  |  |  | 31,441 |  |  |  |  |  |  |  |  |  |  | 29,615 |
- Depreciation and amortization |  |  |  |  |  |  |  |  | 19,164 |  |  |  |  |  |  |  |  |  |  | 19,570 |
Reported net income |  |  |  |  |  |  |  |  | $ | 113,209 |  |  |  |  |  |  |  |  |  |  | $ | 107,126 |
Net sales (eliminations) | $ | 246,189 |  |  | $ | 232,253 |  |  | $ | 164,043 |  |  | $ | (386 | ) |  | $ | 642,099 |  |  | $ | 242,800 |  |  | $ | 227,403 |  |  | $ | 164,300 |  |  | $ | (143 | ) |  | $ | 634,360 |
Reported operating margin | 30.1 | % |  | 24.4 | % |  | 26.6 | % |  | n/m |  |  | 24.2 | % |  | 29.3 | % |  | 23.1 | % |  | 27.9 | % |  | n/m |  |  | 23.3 | %
EBITDA margin | 32.3 | % |  | 28.6 | % |  | 28.9 | % |  | n/m |  |  | 27.2 | % |  | 31.5 | % |  | 27.8 | % |  | 30.1 | % |  | n/m |  |  | 26.4 | %

| Six Months Ended June 30,
| 2019 |  | 2018
| FMT |  | HST |  | FSDP |  | Corporate |  | IDEX |  | FMT |  | HST |  | FSDP |  | Corporate |  | IDEX
Reported operating income (loss) | $ | 146,012 |  |  | $ | 110,917 |  |  | $ | 83,942 |  |  | $ | (37,806 | ) |  | $ | 303,065 |  |  | $ | 137,394 |  |  | $ | 104,375 |  |  | $ | 85,436 |  |  | $ | (42,691 | ) |  | $ | 284,514 |
- Other (income) expense - net | 317 |  |  | 364 |  |  | 365 |  |  | (1,564 | ) |  | (518 | ) |  | 645 |  |  | (1,060 | ) |  | (3,666 | ) |  | (418 | ) |  | (4,499 | )
+ Depreciation and amortization | 11,146 |  |  | 19,142 |  |  | 7,179 |  |  | 356 |  |  | 37,823 |  |  | 11,401 |  |  | 21,479 |  |  | 7,371 |  |  | 373 |  |  | 40,624 |
EBITDA | 156,841 |  |  | 129,695 |  |  | 90,756 |  |  | (35,886 | ) |  | 341,406 |  |  | 148,150 |  |  | 126,914 |  |  | 96,473 |  |  | (41,900 | ) |  | 329,637 |
- Interest expense |  |  |  |  |  |  |  |  | 21,932 |  |  |  |  |  |  |  |  |  |  | 22,140 |
- Provision for income taxes |  |  |  |  |  |  |  |  | 58,174 |  |  |  |  |  |  |  |  |  |  | 60,789 |
- Depreciation and amortization |  |  |  |  |  |  |  |  | 37,823 |  |  |  |  |  |  |  |  |  |  | 40,624 |
Reported net income |  |  |  |  |  |  |  |  | $ | 223,477 |  |  |  |  |  |  |  |  |  |  | $ | 206,084 |
Net sales (eliminations) | $ | 488,711 |  |  | $ | 457,543 |  |  | $ | 320,202 |  |  | $ | (2,126 | ) |  | $ | 1,264,330 |  |  | $ | 475,133 |  |  | $ | 448,478 |  |  | $ | 323,473 |  |  | $ | (400 | ) |  | $ | 1,246,684 |
Reported operating margin | 29.9 | % |  | 24.2 | % |  | 26.2 | % |  | n/m |  |  | 24.0 | % |  | 28.9 | % |  | 23.3 | % |  | 26.4 | % |  | n/m |  |  | 22.8 | %
EBITDA margin | 32.1 | % |  | 28.3 | % |  | 28.3 | % |  | n/m |  |  | 27.0 | % |  | 31.2 | % |  | 28.3 | % |  | 29.8 | % |  | n/m |  |  | 26.4 | %

Table 5: Reconciliations of EBITDA to Adjusted EBITDA (dollars in thousands)

| Three Months Ended June 30,
| 2019 |  | 2018
| FMT |  | HST |  | FSDP |  | Corporate |  | IDEX |  | FMT |  | HST |  | FSDP |  | Corporate |  | IDEX
EBITDA | $ | 79,547 |  |  | $ | 66,318 |  |  | $ | 47,471 |  |  | $ | (18,511 | ) |  | $ | 174,825 |  |  | $ | 76,424 |  |  | $ | 63,122 |  |  | $ | 49,524 |  |  | $ | (21,619 | ) |  | $ | 167,451 |
+ Restructuring expenses | 930 |  |  | 330 |  |  | 819 |  |  | 47 |  |  | 2,126 |  |  | 343 |  |  | 1,123 |  |  | 267 |  |  | 255 |  |  | 1,988 |
Adjusted EBITDA | $ | 80,477 |  |  | $ | 66,648 |  |  | $ | 48,290 |  |  | $ | (18,464 | ) |  | $ | 176,951 |  |  | $ | 76,767 |  |  | $ | 64,245 |  |  | $ | 49,791 |  |  | $ | (21,364 | ) |  | $ | 169,439 |
Adjusted EBITDA margin | 32.7 | % |  | 28.7 | % |  | 29.4 | % |  | n/m |  |  | 27.6 | % |  | 31.6 | % |  | 28.3 | % |  | 30.3 | % |  | n/m |  |  | 26.7 | %

| Six Months Ended June 30,
| 2019 |  | 2018
| FMT |  | HST |  | FSDP |  | Corporate |  | IDEX |  | FMT |  | HST |  | FSDP |  | Corporate |  | IDEX
EBITDA | $ | 156,841 |  |  | $ | 129,695 |  |  | $ | 90,756 |  |  | $ | (35,886 | ) |  | $ | 341,406 |  |  | $ | 148,150 |  |  | $ | 126,914 |  |  | $ | 96,473 |  |  | $ | (41,900 | ) |  | $ | 329,637 |
+ Restructuring expenses | 930 |  |  | 330 |  |  | 819 |  |  | 47 |  |  | 2,126 |  |  | 486 |  |  | 2,182 |  |  | 367 |  |  | 595 |  |  | 3,630 |
Adjusted EBITDA | $ | 157,771 |  |  | $ | 130,025 |  |  | $ | 91,575 |  |  | $ | (35,839 | ) |  | $ | 343,532 |  |  | $ | 148,636 |  |  | $ | 129,096 |  |  | $ | 96,840 |  |  | $ | (41,305 | ) |  | $ | 333,267 |
Adjusted EBITDA margin | 32.3 | % |  | 28.4 | % |  | 28.6 | % |  | n/m |  |  | 27.2 | % |  | 31.3 | % |  | 28.8 | % |  | 29.9 | % |  | n/m |  |  | 26.7 | %

Table 6: Reconciliations of Cash Flows from Operating Activities to Free Cash Flow (in thousands)

| Three Months Ended |  | Six Months Ended
| June 30, |  | March 31, |  | June 30,
| 2019 |  | 2018 |  | 2019 |  | 2019 |  | 2018
Cash flows from operating activities | $ | 131,175 |  |  | $ | 120,697 |  |  | $ | 88,663 |  |  | $ | 219,838 |  |  | $ | 192,426 |
- Capital expenditures | 12,867 |  |  | 10,959 |  |  | 12,875 |  |  | 25,742 |  |  | 20,968 |
Free cash flow | $ | 118,308 |  |  | $ | 109,738 |  |  | $ | 75,788 |  |  | $ | 194,096 |  |  | $ | 171,458 |

Conference Call to be Broadcast over the Internet
IDEX will broadcast its second quarter earnings conference call over the Internet on Friday, July 26, 2019 at 9:30 a.m. CT. Chairman and Chief Executive Officer Andy Silvernail and Senior Vice President and Chief Financial Officer William Grogan will discuss the Company’s recent financial performance and respond to questions from the financial analyst community. IDEX invites interested investors to listen to the call and view the accompanying slide presentation, which will be carried live on its website at www.idexcorp.com. Those who wish to participate should log on several minutes before the discussion begins. After clicking on the presentation icon, investors should follow the instructions to ensure their systems are set up to hear the event and view the presentation slides, or download the correct applications at no charge. Investors will also be able to hear a replay of the call by dialing 877.660.6853 (or 201.612.7415 for international participants) using the ID #13684163.

Forward-Looking Statements
This news release 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, capital expenditures, acquisitions, cost reductions, cash flow, revenues, earnings, market conditions, global economies and operating improvements, and are indicated by words or phrases such as “anticipates,” “estimates,” “plans,” “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 news release. The risks and uncertainties include, but are not limited to, the following: economic and political consequences resulting from terrorist attacks and wars; levels of industrial activity and economic conditions in the U.S. and other countries around the world; pricing pressures and other competitive factors and levels of capital spending in certain industries, all of which could have a material impact on order rates and the Company's results, particularly in light of the low levels of order backlogs it typically maintains; the Company's ability to make acquisitions and to integrate and operate acquired businesses on a profitable basis; 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; market conditions and material costs; 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 filed with the 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 news release, 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.
About IDEX
IDEX (NYSE: IEX) is a company that has undoubtedly touched your life in some way. In fact, IDEX businesses make thousands of products that are mission-critical components in everyday activities. Chances are the car you’re driving has a BAND-IT® clamp holding your side airbag safely in place. If you were ever in a car accident, a Hurst Jaws of Life® rescue tool may have saved your life. If you or a family member is battling cancer, your doctor may have tested your DNA in a quest to find the best targeted medicine for you. It’s likely your DNA test was run on equipment that contains components made by our growing IDEX Health & Science team. Founded in 1988 with three small, entrepreneurial manufacturing companies, we’re proud to say that we now call 40 diverse businesses around the world part of the IDEX family. With 7,000 employees and manufacturing operations in more than 20 countries, IDEX is a high-performing, global $2+ billion company committed to making trusted solutions that improve lives. IDEX shares are traded on the New York Stock Exchange under the symbol “IEX”.
For further information on IDEX Corporation and its business units, visit the company’s website at www.idexcorp.com.
(Financial reports follow)

IDEX CORPORATION
Condensed Consolidated Statements of Operations
(in thousands except per share amounts)
(unaudited)

| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2019 |  | 2018 |  | 2019 |  | 2018
Net sales | $ | 642,099 |  |  | $ | 634,360 |  |  | $ | 1,264,330 |  |  | $ | 1,246,684 |
Cost of sales | 349,762 |  |  | 346,993 |  |  | 688,159 |  |  | 682,665 |
Gross profit | 292,337 |  |  | 287,367 |  |  | 576,171 |  |  | 564,019 |
Selling, general and administrative expenses | 134,928 |  |  | 137,548 |  |  | 270,980 |  |  | 275,875 |
Restructuring expenses | 2,126 |  |  | 1,988 |  |  | 2,126 |  |  | 3,630 |
Operating income | 155,283 |  |  | 147,831 |  |  | 303,065 |  |  | 284,514 |
Other (income) expense - net | (378 | ) |  | (50 | ) |  | (518 | ) |  | (4,499 | )
Interest expense | 11,011 |  |  | 11,140 |  |  | 21,932 |  |  | 22,140 |
Income before income taxes | 144,650 |  |  | 136,741 |  |  | 281,651 |  |  | 266,873 |
Provision for income taxes | 31,441 |  |  | 29,615 |  |  | 58,174 |  |  | 60,789 |
Net income | $ | 113,209 |  |  | $ | 107,126 |  |  | $ | 223,477 |  |  | $ | 206,084 |
Earnings per Common Share: |  |  |  |  |  |  |
Basic earnings per common share | $ | 1.50 |  |  | $ | 1.40 |  |  | $ | 2.96 |  |  | $ | 2.69 |
Diluted earnings per common share | $ | 1.48 |  |  | $ | 1.38 |  |  | $ | 2.92 |  |  | $ | 2.65 |
Share Data: |  |  |  |  |  |  |
Basic weighted average common shares outstanding | 75,460 |  |  | 76,539 |  |  | 75,450 |  |  | 76,479 |
Diluted weighted average common shares outstanding | 76,387 |  |  | 77,704 |  |  | 76,334 |  |  | 77,722 |

IDEX CORPORATION
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)

| June 30, 2019 |  | December 31, 2018
Assets |  |  |
Current assets |  |  |
Cash and cash equivalents | $ | 543,189 |  |  | $ | 466,407 |
Receivables - net | 326,358 |  |  | 312,192 |
Inventories | 301,006 |  |  | 279,995 |
Other current assets | 46,329 |  |  | 33,938 |
Total current assets | 1,216,882 |  |  | 1,092,532 |
Property, plant and equipment - net | 275,025 |  |  | 281,220 |
Goodwill and intangible assets | 2,063,073 |  |  | 2,081,282 |
Other noncurrent assets | 85,235 |  |  | 18,823 |
Total assets | $ | 3,640,215 |  |  | $ | 3,473,857 |
Liabilities and shareholders' equity |  |  |
Current liabilities |  |  |
Trade accounts payable | $ | 160,579 |  |  | $ | 143,196 |
Accrued expenses | 162,838 |  |  | 187,536 |
Short-term borrowings | 452 |  |  | 483 |
Dividends payable | 37,922 |  |  | 33,446 |
Total current liabilities | 361,791 |  |  | 364,661 |
Long-term borrowings | 848,555 |  |  | 848,335 |
Other noncurrent liabilities | 317,828 |  |  | 266,221 |
Total liabilities | 1,528,174 |  |  | 1,479,217 |
Shareholders' equity | 2,112,041 |  |  | 1,994,640 |
Total liabilities and shareholders' equity | $ | 3,640,215 |  |  | $ | 3,473,857 |

IDEX CORPORATION
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)

| Six Months Ended June 30,
| 2019 |  | 2018
Cash flows from operating activities |  |  |
Net income | $ | 223,477 |  |  | $ | 206,084 |
Adjustments to reconcile net income to net cash provided by operating activities: |  |  |
Depreciation and amortization | 19,870 |  |  | 19,957 |
Amortization of intangible assets | 17,953 |  |  | 20,667 |
Amortization of debt issuance expenses | 669 |  |  | 664 |
Share-based compensation expense | 14,413 |  |  | 13,252 |
Deferred income taxes | 10,685 |  |  | (3,021 | )
Non-cash interest expense associated with forward starting swaps | 3,171 |  |  | 3,259 |
Changes in (net of the effect from acquisitions): |  |  |
Receivables | (14,177 | ) |  | (40,044 | )
Inventories | (21,007 | ) |  | (28,011 | )
Other current assets | (12,382 | ) |  | 17,798 |
Trade accounts payable | 17,276 |  |  | 5,432 |
Accrued expenses | (39,602 | ) |  | (21,131 | )
Other - net | (508 | ) |  | (2,480 | )
Net cash flows provided by operating activities | 219,838 |  |  | 192,426 |
Cash flows from investing activities |  |  |
Purchases of property, plant and equipment | (25,742 | ) |  | (20,968 | )
Purchase of intellectual property | — |  |  | (4,000 | )
Proceeds from disposal of fixed assets | 780 |  |  | — |
Other - net | 501 |  |  | (861 | )
Net cash flows used in investing activities | (24,461 | ) |  | (25,829 | )
Cash flows from financing activities |  |  |
Dividends paid | (71,283 | ) |  | (61,916 | )
Proceeds from stock option exercises | 20,761 |  |  | 13,616 |
Purchases of common stock | (54,668 | ) |  | (19,499 | )
Shares surrendered for tax withholding | (11,509 | ) |  | (10,750 | )
Settlement of foreign exchange contracts | — |  |  | 6,593 |
Other - net | (1,929 | ) |  | — |
Net cash flows used in financing activities | (118,628 | ) |  | (71,956 | )
Effect of exchange rate changes on cash and cash equivalents | 33 |  |  | (11,840 | )
Net increase in cash | 76,782 |  |  | 82,801 |
Cash and cash equivalents at beginning of year | 466,407 |  |  | 375,950 |
Cash and cash equivalents at end of period | $ | 543,189 |  |  | $ | 458,751 |

IDEX CORPORATION
Company and Segment Financial Information - Reported
(dollars in thousands)
(unaudited)

|  | Three Months Ended June 30, (a) |  | Six Months Ended June 30, (a)
|  | 2019 |  | 2018 |  | 2019 |  | 2018
| Fluid & Metering Technologies |  |  |  |  |  |  |
| Net sales | $ | 246,189 |  |  | $ | 242,800 |  |  | $ | 488,711 |  |  | $ | 475,133 |
| Operating income (b) | 74,146 |  |  | 71,228 |  |  | 146,012 |  |  | 137,394 |
| Operating margin | 30.1 | % |  | 29.3 | % |  | 29.9 | % |  | 28.9 | %
| EBITDA | $ | 79,547 |  |  | $ | 76,424 |  |  | $ | 156,841 |  |  | $ | 148,150 |
| EBITDA margin | 32.3 | % |  | 31.5 | % |  | 32.1 | % |  | 31.2 | %
| Depreciation and amortization | $ | 5,640 |  |  | $ | 5,707 |  |  | $ | 11,146 |  |  | $ | 11,401 |
| Capital expenditures | 3,350 |  |  | 3,981 |  |  | 6,580 |  |  | 8,655 |
| Health & Science Technologies |  |  |  |  |  |  |
| Net sales | $ | 232,253 |  |  | $ | 227,403 |  |  | $ | 457,543 |  |  | $ | 448,478 |
| Operating income (b) | 56,763 |  |  | 52,569 |  |  | 110,917 |  |  | 104,375 |
| Operating margin | 24.4 | % |  | 23.1 | % |  | 24.2 | % |  | 23.3 | %
| EBITDA | $ | 66,318 |  |  | $ | 63,122 |  |  | $ | 129,695 |  |  | $ | 126,914 |
| EBITDA margin | 28.6 | % |  | 27.8 | % |  | 28.3 | % |  | 28.3 | %
| Depreciation and amortization | $ | 9,635 |  |  | $ | 10,090 |  |  | $ | 19,142 |  |  | $ | 21,479 |
| Capital expenditures | 5,913 |  |  | 5,351 |  |  | 11,217 |  |  | 8,682 |
| Fire & Safety/Diversified Products |  |  |  |  |  |  |
| Net sales | $ | 164,043 |  |  | $ | 164,300 |  |  | $ | 320,202 |  |  | $ | 323,473 |
| Operating income (b) | 43,614 |  |  | 45,882 |  |  | 83,942 |  |  | 85,436 |
| Operating margin | 26.6 | % |  | 27.9 | % |  | 26.2 | % |  | 26.4 | %
| EBITDA | $ | 47,471 |  |  | $ | 49,524 |  |  | $ | 90,756 |  |  | $ | 96,473 |
| EBITDA margin | 28.9 | % |  | 30.1 | % |  | 28.3 | % |  | 29.8 | %
| Depreciation and amortization | $ | 3,717 |  |  | $ | 3,597 |  |  | $ | 7,179 |  |  | $ | 7,371 |
| Capital expenditures | 3,534 |  |  | 1,627 |  |  | 6,487 |  |  | 3,445 |
| Corporate Office and Eliminations |  |  |  |  |  |  |
| Intersegment sales eliminations | $ | (386 | ) |  | $ | (143 | ) |  | $ | (2,126 | ) |  | $ | (400 | )
| Operating income (b) | (19,240 | ) |  | (21,848 | ) |  | (37,806 | ) |  | (42,691 | )
| EBITDA | (18,511 | ) |  | (21,619 | ) |  | (35,886 | ) |  | (41,900 | )
| Depreciation and amortization | 172 |  |  | 176 |  |  | 356 |  |  | 373 |
| Capital expenditures | 70 |  |  | — |  |  | 1,458 |  |  | 186 |
| Company |  |  |  |  |  |  |
| Net sales | $ | 642,099 |  |  | $ | 634,360 |  |  | $ | 1,264,330 |  |  | $ | 1,246,684 |
| Operating income | 155,283 |  |  | 147,831 |  |  | 303,065 |  |  | 284,514 |
| Operating margin | 24.2 | % |  | 23.3 | % |  | 24.0 | % |  | 22.8 | %
| EBITDA | $ | 174,825 |  |  | $ | 167,451 |  |  | $ | 341,406 |  |  | $ | 329,637 |
| EBITDA margin | 27.2 | % |  | 26.4 | % |  | 27.0 | % |  | 26.4 | %
| Depreciation and amortization (c) | $ | 19,164 |  |  | $ | 19,570 |  |  | $ | 37,823 |  |  | $ | 40,624 |
| Capital expenditures | 12,867 |  |  | 10,959 |  |  | 25,742 |  |  | 20,968 |

IDEX CORPORATION
Company and Segment Financial Information - Adjusted
(dollars in thousands)
(unaudited)

|  | Three Months Ended June 30, (a) |  | Six Months Ended June 30, (a)
|  | 2019 |  | 2018 |  | 2019 |  | 2018
| Fluid & Metering Technologies |  |  |  |  |  |  |
| Net sales | $ | 246,189 |  |  | $ | 242,800 |  |  | $ | 488,711 |  |  | $ | 475,133 |
| Adjusted operating income (b) | 75,076 |  |  | 71,571 |  |  | 146,942 |  |  | 137,880 |
| Adjusted operating margin | 30.5 | % |  | 29.5 | % |  | 30.1 | % |  | 29.0 | %
| Adjusted EBITDA | $ | 80,477 |  |  | $ | 76,767 |  |  | $ | 157,771 |  |  | $ | 148,636 |
| Adjusted EBITDA margin | 32.7 | % |  | 31.6 | % |  | 32.3 | % |  | 31.3 | %
| Depreciation and amortization | $ | 5,640 |  |  | $ | 5,707 |  |  | $ | 11,146 |  |  | $ | 11,401 |
| Capital expenditures | 3,350 |  |  | 3,981 |  |  | 6,580 |  |  | 8,655 |
| Health & Science Technologies |  |  |  |  |  |  |
| Net sales | $ | 232,253 |  |  | $ | 227,403 |  |  | $ | 457,543 |  |  | $ | 448,478 |
| Adjusted operating income (b) | 57,093 |  |  | 53,692 |  |  | 111,247 |  |  | 106,557 |
| Adjusted operating margin | 24.6 | % |  | 23.6 | % |  | 24.3 | % |  | 23.8 | %
| Adjusted EBITDA | $ | 66,648 |  |  | $ | 64,245 |  |  | $ | 130,025 |  |  | $ | 129,096 |
| Adjusted EBITDA margin | 28.7 | % |  | 28.3 | % |  | 28.4 | % |  | 28.8 | %
| Depreciation and amortization | $ | 9,635 |  |  | $ | 10,090 |  |  | $ | 19,142 |  |  | $ | 21,479 |
| Capital expenditures | 5,913 |  |  | 5,351 |  |  | 11,217 |  |  | 8,682 |
| Fire & Safety/Diversified Products |  |  |  |  |  |  |
| Net sales | $ | 164,043 |  |  | $ | 164,300 |  |  | $ | 320,202 |  |  | $ | 323,473 |
| Adjusted operating income (b) | 44,433 |  |  | 46,149 |  |  | 84,761 |  |  | 85,803 |
| Adjusted operating margin | 27.1 | % |  | 28.1 | % |  | 26.5 | % |  | 26.5 | %
| Adjusted EBITDA | $ | 48,290 |  |  | $ | 49,791 |  |  | $ | 91,575 |  |  | $ | 96,840 |
| Adjusted EBITDA margin | 29.4 | % |  | 30.3 | % |  | 28.6 | % |  | 29.9 | %
| Depreciation and amortization | $ | 3,717 |  |  | $ | 3,597 |  |  | $ | 7,179 |  |  | $ | 7,371 |
| Capital expenditures | 3,534 |  |  | 1,627 |  |  | 6,487 |  |  | 3,445 |
| Corporate Office and Eliminations |  |  |  |  |  |  |
| Intersegment sales eliminations | $ | (386 | ) |  | $ | (143 | ) |  | $ | (2,126 | ) |  | $ | (400 | )
| Adjusted operating income (b) | (19,193 | ) |  | (21,593 | ) |  | (37,759 | ) |  | (42,096 | )
| Adjusted EBITDA | (18,464 | ) |  | (21,364 | ) |  | (35,839 | ) |  | (41,305 | )
| Depreciation and amortization | 172 |  |  | 176 |  |  | 356 |  |  | 373 |
| Capital expenditures | 70 |  |  | — |  |  | 1,458 |  |  | 186 |
| Company |  |  |  |  |  |  |
| Net sales | $ | 642,099 |  |  | $ | 634,360 |  |  | $ | 1,264,330 |  |  | $ | 1,246,684 |
| Adjusted operating income | 157,409 |  |  | 149,819 |  |  | 305,191 |  |  | 288,144 |
| Adjusted operating margin | 24.5 | % |  | 23.6 | % |  | 24.1 | % |  | 23.1 | %
| Adjusted EBITDA | $ | 176,951 |  |  | $ | 169,439 |  |  | $ | 343,532 |  |  | $ | 333,267 |
| Adjusted EBITDA margin | 27.6 | % |  | 26.7 | % |  | 27.2 | % |  | 26.7 | %
| Depreciation and amortization (c) | $ | 19,164 |  |  | $ | 19,570 |  |  | $ | 37,823 |  |  | $ | 40,624 |
| Capital expenditures | 12,867 |  |  | 10,959 |  |  | 25,742 |  |  | 20,968 |
(a) | Three and six month data includes the results of Finger Lakes Instrumentation (July 2018) in the Health & Science Technologies segment from the date of acquisition.
(b) | Segment operating income excludes unallocated corporate operating expenses which are included in Corporate Office and Eliminations.
(c) | Depreciation and amortization excludes amortization of debt issuance costs.