SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): APRIL 16, 2002
IDEX CORPORATION
(Exact Name of Registrant as Specified in Charter)
Delaware 1-10235 36-3555336
(State or Other Jurisdiction of (Commission File Number) (IRS Employer
Incorporation) Identification No.)
630 DUNDEE ROAD 60062
NORTHBROOK, ILLINOIS (Zip Code)
(Address of Principal Executive Offices)
Registrant's telephone number, including area code: (847) 498-7070
ITEM 5. OTHER EVENTS.
IDEX Corporation (NYSE:IEX) today reported that orders, sales and earnings for
the three months ended March 31, 2002, were improving from fourth quarter levels
but lower than the comparable quarter of last year.
Sales in the first quarter were $174.9 million, which represented a 4 percent
improvement from the fourth quarter of 2001. This was 7 percent lower than first
quarter 2001 performance, when stronger business conditions prevailed throughout
the manufacturing sector. Compared with the first quarter last year,
acquisitions accounted for a 2 percent sales improvement, which was offset by an
8 percent decline in base business shipments and a 1 percent unfavorable
currency translation effect. International sales declined by 8 percent and
domestic sales were 6 percent lower. Sales to international customers were 40
percent of the total, down slightly from 41 percent last year. First quarter
2002 operating margins were 12.9 percent of sales. Compared on the same
accounting basis (excluding goodwill amortization in accordance with new
accounting rules effective January 1, 2002), margins, before restructuring
charges, showed a .5 percentage point improvement from the fourth quarter but
were 1.0 percentage point below last year's first quarter. These differences
were largely attributable to changes in sales volume versus the two prior-year
quarters. Net income for the current quarter was $11.5 million. After adjusting
prior-year results to exclude restructuring charges and goodwill amortization,
this represents a 6 percent improvement from last year's fourth quarter but a 15
percent decline from the first. Comparing diluted earnings per share on this
same basis shows the current quarter's 37 cents exceeded the fourth quarter by
2 cents but was lower than last year by 7 cents. IDEX's first quarter diluted
earnings per share on an "as reported" basis was significantly better than last
year's first quarter of 23 cents and fourth quarter of 14 cents due to the
restructuring and goodwill expenses recorded in 2001.
New orders for the latest three months totaled $184.1 million, 14 percent
stronger than the fourth quarter of 2001 but 3 percent lower than the first
quarter of last year. Excluding the impact of foreign currency and the June 2001
Versa-Matic acquisition, orders were 4 percent lower than in the first quarter
of 2001. During the first quarter of this year, IDEX built $9.2 million of
backlog. At March 31, IDEX had a typical unfilled order backlog of slightly over
one month's sales.
For the quarter, the Pump Products Group contributed 58 percent of sales and 62
percent of operating income, the Dispensing Equipment Group accounted for 19
percent of sales and 16 percent of operating income, and the Other Engineered
Products Group represented 23 percent of sales and 22 percent of operating
income.
IDEX ended the quarter with total assets of $839 million and working capital of
$131 million. Total debt decreased $16 million during the period. First quarter
free cash flow (cash flow from operations activities less capital expenditures)
was $19 million and 1.7 times net income. For the last 12 months, free cash flow
totaled $90 million and was nearly 1.8 times net income excluding restructuring
charges and goodwill amortization. Trailing 12-month EBITDA (earnings before
interest, taxes, depreciation and amortization) before the 2001 restructuring
charge totaled $126 million and covered interest expense by more than 6 times.
Debt to total capitalization at the end of the first quarter was 40 percent.
A copy of the press release issued by IDEX with respect to these matters is
attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated
by reference herein.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(a) Financial Statements of Business Acquired.
Not applicable.
(b) Pro Forma Financial Information.
Not applicable.
(c) Exhibits.
99.1 Press Release, issued April 16, 2002
SIGNATURES
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Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
IDEX CORPORATION
Date: April 16, 2002 By: /s/ WAYNE P. SAYATOVIC
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Name: Wayne P. Sayatovic
Title: Senior Vice President - Finance, and
Chief Financial Officer
EXHIBIT INDEX
Exhibit
Number Description
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99.1 Press Release, issued April 16, 2002