IDEX (IEX) Q4 2011 earnings summary

Executive summary

• FY11 sales rose 22% to $1.838B; organic sales, excluding acquisitions and FX translation, increased 9%. Operating income rose 22% to $304.7M and net income rose 23% to $193.9M.

• Q4'11 sales were $480.7M, gross profit $193.6M, operating income $79.6M, net income $50.2M and diluted EPS $0.57.

Financial highlights

• FY11 gross profit increased 19% to $738.7M; gross margin was 40.2%, down 70 bps YoY. Operating margin was 16.6%, versus 16.5% in FY10.

• Diluted EPS was $2.32, up $0.42 YoY; the reported increase was 22%.

• Operating cash flow rose 18% to $217.2M; capital expenditures were $34.5M, and cash and equivalents ended the year at $230.3M.

Outlook and guidance

• FY12 outlook called for mid-single-digit organic growth and fully diluted EPS of $2.74–$2.82.

• Cash and expected operating cash generation were considered sufficient for the next 12 months of operating needs, planned capex, interest, benefit funding and dividends.