IDEX (IEX) Q4 2009 earnings summary

Executive summary

• FY09 net sales were $1.330B, down 11%; organic sales fell 14%, acquisitions added 5%, and FX reduced sales 2%.

• Net income was $113.4M, down 11%; operating income was $184.9M, down 10%, and diluted EPS was $1.40, down 8%.

Financial highlights

• Gross profit fell 13% to $522.4M; gross margin declined 80 bps to 39.3%, mainly from lower volume and product mix.

• SG&A decreased to $325.5M from $343.4M; restructuring savings and lower volume-related expenses were partly offset by $22.8M of acquired-business costs.

• Q4 net sales were $343.3M, operating income $52.4M, net income $33.1M, and diluted EPS $0.40.

• Operating cash flow was $212.5M, down 5%; capital expenditures were $25.5M.

Outlook and guidance

• Restructuring-related employee reductions were expected to finish by mid-2010, with $4.0M–$5.0M of additional 2010 costs and severance payments through 2011.

• Available liquidity was expected to cover operating needs, interest, debt repayments, planned capex and dividends over the next 12 months.

• Existing facilities and operational improvement initiatives were expected to support near-term demand and intermediate-term growth needs.