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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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 23, 1998
IDEX Corporation
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(Exact name of registrant as specified in its charter)
Delaware 1-10235 36-3555336
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(State or other jurisdiction) (Commission File (I.R.S. Employer
Number) identification
Number)
630 Dundee Road, Suite 400 Northbrook, Illinois 60062
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(Address of principal executive offices)
Registrant's telephone number (847) 498-7070
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Item 5.
In December 1997 IDEX Corporation ("IDEX or the Company") announced its
intention to divest its Strippit and Vibratech businesses. In addition, the
company realigned its historical presentation of business segments into two
new groups: Pump Products and Engineered Equipment. The Company's audited
financial statements and the group financial information included in IDEX's
1997 Annual Report on Form 10-K have been reclassified to reflect Strippit
and Vibratech as discontinued operations and the revised group reporting
structure.
As additional information to assist investors and others, attached hereto are
IDEX's unaudited quarterly condensed statements of consolidated operations and
group financial information for 1997 and 1996 reflecting Strippit and Vibratech
as discontinued operations and the revised group reporting structure. This
unaudited quarterly information should be read in conjunction with IDEX's 1997
Annual Report on Form 10-K.
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IDEX CORPORATION
Condensed Statements of Consolidated Operations
(in thousands except per share amounts)
<TABLE>
<CAPTION>
1997
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First Second Third Fourth Full
Quarter Quarter Quarter Quarter Year
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(unaudited)
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<S> <C> <C> <C> <C> <C>
Net sales $131,375 $141,976 $141,799 $137,013 $552,163
Cost of sales 79,266 84,686 84,811 81,043 329,806
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Gross profit 52,109 57,290 56,988 55,970 222,357
Selling, general and administrative expenses 26,259 29,189 28,345 26,795 110,588
Goodwill amortization 1,884 2,135 2,075 2,080 8,174
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Operating income 23,966 25,966 26,568 27,095 103,595
Other income (expense) - net (95) 1 (363) (236) (693)
Interest expense 4,830 4,754 4,421 4,393 18,398
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Income before income taxes 19,041 21,213 21,784 22,466 84,504
Provision for income taxes 6,940 7,929 8,060 8,100 31,029
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Income from continuing operations 12,101 13,284 13,724 14,366 53,475
Income from discontinued operations, net of taxes 1,294 1,711 760 1,386 5,151
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Net income $ 13,395 $ 14,995 $ 14,484 $ 15,752 $ 58,626
===================================================================================================================================
Earnings Per Common Share - Basic:
Continuing operations $ 0.41 $ 0.46 $ 0.47 $ 0.49 $ 1.83
Discontinued operations 0.05 0.05 0.03 0.05 0.18
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Net income $ 0.46 $ 0.51 $ 0.50 $ 0.54 $ 2.01
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Earnings Per Common Share - Diluted:
Continuing operations $ 0.41 $ 0.44 $ 0.45 $ 0.48 $ 1.78
Discontinued operations 0.04 0.06 0.03 0.04 0.17
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Net income $ 0.45 $ 0.50 $ 0.48 $ 0.52 $ 1.95
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Share Data:
Weighted average common shares outstanding 29,178 29,180 29,226 29,247 29,184
Weighted average common shares outstanding
assuming full dilution 29,809 30,028 30,333 30,210 29,999
===================================================================================================================================
</TABLE>
Company and Business Group Financial Information
<TABLE>
<CAPTION>
1997
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First Second Third Fourth Full
Quarter Quarter Quarter Quarter Year
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(unaudited)
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<S> <C> <C> <C> <C> <C>
Pump Products Group(1)
Net sales $ 64,947 $ 65,612 $ 68,274 $ 67,085 $265,918
Operating income(2) 15,452 14,500 15,397 16,094 61,443
Operating margin 23.8% 22.1% 22.6% 24.0% 23.1%
Depreciation and amortization $ 2,624 $ 2,708 $ 2,654 $ 2,207 $ 10,193
Capital expenditures 1,261 2,150 1,848 1,616 6,875
Engineered Equipment Group(1)
Net sales $ 66,947 $ 76,312 $ 74,782 $ 70,616 $288,657
Operating income(2) 10,857 14,294 13,929 12,982 52,062
Operating margin 16.2% 18.7% 18.6% 18.4% 18.0%
Depreciation and amortization $ 3,393 $ 3,660 $ 3,648 $ 3,307 $ 14,008
Capital expenditures 1,255 1,285 1,446 2,332 6,318
Company(1)
Net sales $131,375 $141,976 $141,799 $137,013 $552,163
Operating income(2) 23,966 25,966 26,568 27,095 103,595
Operating margin 18.2% 18.3% 18.7% 19.8% 18.8%
Depreciation and amortization(3) $ 6,024 $ 6,413 $ 6,377 $ 5,479 $ 24,293
Capital expenditures 2,521 3,709 3,347 3,985 13,562
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</TABLE>
See following page for notes to condensed financial statements.
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IDEX CORPORATION
Condensed Statements of Consolidated Operations
(in thousands except per share amounts)
<TABLE>
<CAPTION>
1996
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First Second Third Fourth Full
Quarter Quarter Quarter Quarter Year
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(unaudited)
-------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net sales $109,445 $109,927 $121,065 $134,262 $474,699
Cost of sales 65,591 65,755 73,449 82,830 287,625
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Gross profit 43,854 44,172 47,616 51,432 187,074
Selling, general and administrative expenses 22,144 21,173 24,536 25,364 93,217
Goodwill amortization 1,206 1,207 1,798 2,030 6,241
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Operating income 20,504 21,792 21,282 24,038 87,616
Other income (expense) - net 5 (121) (19) (561) (696)
Interest expense 3,773 3,632 4,953 5,118 17,476
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Income before income taxes 16,736 18,039 16,310 18,359 69,444
Provision for income taxes 6,038 6,337 5,848 6,797 25,020
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Income from continuing operations 10,698 11,702 10,462 11,562 44,424
Income from discontinued operations, net of taxes 1,516 960 1,366 1,932 5,774
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Net income $ 12,214 $ 12,662 $ 11,828 $ 13,494 $ 50,198
===================================================================================================================================
Earnings Per Common Share - Basic:
Continuing operations $ 0.37 $ 0.41 $ 0.36 $ 0.40 $ 1.54
Discontinued operations 0.06 0.03 0.05 0.07 0.20
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Net income $ 0.43 $ 0.44 $ 0.41 $ 0.47 $ 1.74
===================================================================================================================================
Earnings Per Common Share - Diluted:
Continuing operations $ 0.36 $ 0.39 $ 0.35 $ 0.39 $ 1.49
Discontinued operations 0.05 0.04 0.05 0.06 0.20
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Net income $ 0.41 $ 0.43 $ 0.40 $ 0.45 $ 1.69
===================================================================================================================================
Share Data:
Weighted average common shares outstanding 28,709 28,761 28,902 28,917 28,818
Weighted average common shares outstanding
assuming full dilution 29,726 29,735 29,735 29,711 29,779
===================================================================================================================================
</TABLE>
Company and Business Group Financial Information
<TABLE>
<CAPTION>
1996
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First Second Third Fourth Full
Quarter Quarter Quarter Quarter Year
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(unaudited)
-------------------------------------------------
<S> <C> <C> <C> <C> <C>
Pump Products Group(1)
Net sales $ 61,996 $ 61,935 $ 61,110 $ 60,579 $245,620
Operating income(2) 13,583 14,174 13,196 14,176 55,129
Operating margin 21.9% 22.9% 21.6% 23.4% 22.4%
Depreciation and amortization $ 2,534 $ 2,486 $ 2,516 $ 1,973 $ 9,509
Capital expenditures 918 1,842 1,214 1,201 5,175
Engineered Equipment Group(1)
Net sales $ 47,693 $ 47,854 $ 60,386 $ 74,185 $230,118
Operating income(2) 9,177 9,349 10,553 11,886 40,965
Operating margin 19.2% 19.5% 17.5% 16.0% 17.8%
Depreciation and amortization $ 2,080 $ 2,027 $ 3,262 $ 3,588 $ 10,957
Capital expenditures 908 1,136 1,389 2,992 6,425
Company(1)
Net sales $109,445 $109,927 $121,065 $134,262 $474,699
Operating income(2) 20,504 21,792 21,282 24,038 87,616
Operating margin 18.7% 19.8% 17.6% 17.9% 18.5%
Depreciation and amortization(3) $ 4,677 $ 4,547 $ 5,706 $ 5,742 $ 20,672
Capital expenditures 1,845 2,978 2,613 4,198 11,634
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</TABLE>
(1) In December 1997 IDEX announced its intention to divest the Strippit and
Vibratech businesses. During the fourth quarter it also realigned the
business units into two groups: the Pump Products and Engineered Equipment
Groups. The financial statements and the group financial information have
been reclassified to reflect Strippit and Vibratech as discontinued
operations and IDEX's revised group reporting structure. The revenues from
the discontinued operations amounted to $83.9 million and $87.9 million for
the years ended December 31, 1997 and 1996, respectively.
(2) Group operating income excludes net unallocated corporate operating
expenses.
(3) Excludes amortization of debt issuance expenses.
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SIGNATURES
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
April 23, 1998 /s/ WAYNE P. SAYATOVIC
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Wayne P. Sayatovic
Senior Vice President-Finance
and Chief Financial Officer
(Principal Financial Officer)
