IDEX(US:IEX)2024-10-30 13:31Financial Performance - Sales for Q3 2024 were $798 million, a 1% increase overall, with organic sales remaining flat[1] - Reported diluted EPS was $1.57, down 43%, while adjusted diluted EPS was $1.90, down 10%[1] - Full year GAAP diluted EPS guidance is revised to $6.65 - $6.70, down from $6.85 - $6.95[1] - Net income attributable to IDEX for Q3 2024 was $119.1 million, down from $209.1 million in Q3 2023, representing a 43% decrease year-over-year[14] - Basic earnings per share attributable to IDEX for Q3 2024 were $1.57, compared to $2.76 in Q3 2023, reflecting a significant decline in earnings[14] - Adjusted net income attributable to IDEX for the nine months ended September 30, 2024, was $443.4 million, down from $484.6 million in the same period of 2023[23] - Reported net income for the three months ended September 30, 2024, was $118.9 million, compared to $209.0 million for the same period in 2023, reflecting a decrease of 43.0%[24] Cash Flow and Liquidity - Operating cash flow decreased by 9% to $205 million, representing 172% of net income, up from 108%[1] - Free cash flow was $192 million, down 7%, and accounted for 133% of adjusted net income, up from 129%[1] - Cash and cash equivalents rose to $633.2 million as of September 30, 2024, compared to $534.3 million at the end of 2023, indicating improved liquidity[15] - Net cash flows provided by operating activities for the nine months ended September 30, 2024, were $495.5 million, slightly down from $515.7 million in the same period last year[16] - Free cash flow for the three months ended September 30, 2024, was $191.6 million, compared to $206.5 million in the same period last year, a decrease of 7.3%[25] - Operating cash flow conversion for the nine months ended September 30, 2024, was 130%, compared to 106% in the prior year[25] Sales and Revenue Trends - Full year 2024 organic sales growth is projected to decline by 1% to 2% compared to the previous year[1] - The Health & Science Technologies segment experienced a 5% decline in organic net sales due to lower volumes[6] - The Fire & Safety/Diversified Products segment reported a 4% increase in both reported and organic net sales[7] - Organic net sales for IDEX decreased by 1% for the nine months ended September 30, 2024, compared to a decrease of 3% for the same period in 2023[21] - The company expects a change in organic net sales of 3% to 4% for the fourth quarter of 2024, after accounting for acquisitions and foreign currency impacts[26] Asset and Liabilities - Total assets increased to $6,967.5 million as of September 30, 2024, up from $5,865.2 million at the end of 2023, driven by higher goodwill and cash reserves[15] - Long-term borrowings increased to $2,075.1 million as of September 30, 2024, compared to $1,325.1 million at the end of 2023, indicating increased leverage[15] Profitability Metrics - Adjusted EBITDA margin for Q3 2024 decreased to 26.9%, down 150 basis points from the previous year[3] - Operating income decreased to $168.0 million in Q3 2024 from $179.6 million in Q3 2023, reflecting a decline in profitability[14] - Adjusted EBITDA for the nine months ended September 30, 2024, was $646.8 million, down from $696.0 million in the prior year, representing a decline of 7.1%[24] - Adjusted EBITDA margin for the full year 2024 is expected to be between 26.9% and 27.0%[28] Acquisitions and Investments - The acquisition of Mott Corporation was completed on September 5, 2024, for a cash consideration of $986.2 million[8] - The company reported a net cash outflow from investing activities of $991.8 million for the nine months ended September 30, 2024, primarily due to acquisitions[16] Other Financial Metrics - Gross profit for Q3 2024 was $353.9 million, compared to $349.6 million in Q3 2023, indicating a gross margin improvement[14] - The gross margin for IDEX in the three months ended September 30, 2024, was 44.3%, slightly up from 44.1% in the same period of 2023[22] - The total depreciation expense for IDEX in the three months ended September 30, 2024, was $17.4 million, an increase from $14.7 million in the same period of 2023[17] - The total amortization of intangible assets for IDEX in the three months ended September 30, 2024, was $26.5 million, compared to $23.8 million in the same period of 2023[17] - The company experienced a fair value inventory step-up charge of $2.1 million for the three months ended September 30, 2024[23] - The company recorded a gain on the sale of business of $0.6 million during the three months ended September 30, 2024[29] Future Projections - Estimated diluted EPS attributable to IDEX for the full year 2024 is projected to be between $6.65 and $6.70[27] - Estimated net sales for the fourth quarter of 2024 are projected to be between $874.3 million and $882.3 million[28] - The impact from foreign currency on net sales is expected to be 1% for the fourth quarter of 2024[26]