IDEX CORP. designs, manufactures and markets a broad range of fluid handling and industrial products serving a diverse customer base in the United States and, internationally.
Industry:MACH-GENL INDL Sector: Industrial Products Fiscal Year End:December Last Reported Quarter:03/31/12 Next EPS Date:07/18/12
Capital Structure Solvency and Cash Flow
Cash Flow and Balance Sheet
During 3Q10, IDEX generated free cash flow (cash flow from operating activities less capital expenditures plus the excess tax benefit from stock-based compensation) of $54.1 million versus $60.3 million in 2Q10 and $77.7 million in 3Q09. Cash flow from operations was $61.6 million versus $68.6 million in 2Q10 and $84.8 million in 3Q09. Cash used for capital expenditure was $8.5 million versus $10.0 million in 2Q10 and $7.4 million in 3Q09.
The Company had cash and equivalents of $206.1 million at the end of 3Q10, versus $159.1 at the end of 2Q10. Receivable were $201.2 million at the end of 3Q10, versus $200.4 million at the end of 2Q10. Inventories were $191.7 million, versus $170.1 million at the end of 2Q10.
Long-term debt was $480.6 million at the end of 3Q10, versus $459.8 million in the previous quarter.
Outlook
For FY10, management projects capital expenditure of $36.0 million and expects to continue to convert cash very well, in excess of net income.
Dividend
On December 7, 2010, IDEX’s board of directors announced a quartetly cash dividend of $0.15 per common share, to be paid on January 31, 2011 to shareholders of record as of January 14, 2011.
Last edited Tue Jan 18, 2011 12:26 AM by SreelaBose (Zacks Investment Research)
6
Governance Social Responsibility and Employee Relations
On January 11, 2011, the Company announced that it has signed a definitive agreement to acquire Microfluidics International Corporation, a global leader in the design and manufacture of laboratory and commercial equipment used in the production of materials for the pharmaceutical and chemical markets.
IDEX Corp. will pay cash purchase price of $1.35 per share, a 69.0% premium above its weighted average closing price over the past 30 days.
This deal also includes an arrangement between IDEX and Celgene Corporation, where the latter will sell IDEX a $5.0 million Microfluidics debenture convertible into 28.0% of Microfluidics stock. Celgene Corporation will also cancel all outstanding warrants held for purchasing Microfluidics common stock.
Management stated that Microfluidics will be included in the Company’s Fluid and Metering segment and function as a separate business. This merger will add to the Company’s earnings in FY11.
On November 1, 2010, IDEX announced that it had acquired The Fitzpatrick Company, a global leader in the design and manufacture of process technologies for the pharmaceutical, food and personal care markets.
This acquisition will facilitate expanding the capability of IDEX’s QUADRO Engineering by adding coarse particle sizing, roll compaction and drying systems to QUADRO’s fine particle processing.
Last edited Tue Jan 18, 2011 12:31 AM by SreelaBose (Zacks Investment Research)
• IDEX Corp.’s performance faces the risk of adverse impact of macroeconomic cycles in U.S. and international markets.
• Fluctuations in exchange rates could have a subsequent adverse impact on earnings.
• Integration of acquisitions plays a major part in IDEX’s long-term growth strategy. Uncertainties encompassing integration can affect growth.
• The Company’s businesses operate in a highly competitive market. It faces strong competition in product quality, price, design and engineering capabilities, product development, customer specifications and after sales service.
Last edited Tue Jan 18, 2011 12:32 AM by SreelaBose (Zacks Investment Research)
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