IDEX Reports Record Third Quarter Results
IDEX Reports Record Third Quarter Results; Similar Fourth Quarter Anticipated; Record Year Expected
NORTHBROOK, Ill., Oct. 17 /PRNewswire/ -- IDEX Corporation (NYSE: IEX),
today reported record sales, net income and earnings per share for the third quarter and nine months ended September 30, 2000.
Third Quarter Highlights
- Sales increased 4 percent to $176.2 million, reflecting a 3 percent increase in base business, 4 percent from acquisitions, and a negative 3 percent currency translation.
- Net income rose 15 percent to $16.6 million, or 54 cents per diluted share.
- Six Sigma training was initiated.
- The global sourcing effort is progressing rapidly.
- New management team structure is expected to bring focus and growth.
- Similar fourth quarter results are expected, making 2000 another record year.
Strong Financial Position
IDEX ended the period with total assets of $759 million and working
capital of $143 million excluding short-term debt. Total debt decreased by $13 million during the first three quarters to $255 million. Borrowings of $34 million, used to complete two acquisitions, were more than offset by debt reductions from cash flow from operations. Nine-month EBITDA (earnings before interest, taxes, depreciation and amortization) totaled $120 million
and covered interest expense by 9 1/2 times. Debt to total capitalization at September 30 was 41 percent, the lowest in the company's history.
Goals of New Management Team Structure
On October 1, IDEX realigned its management structure, allowing the company to more efficiently and effectively pursue profitable growth opportunities and margin-enhancing initiatives. Dennis K. Williams, Chairman, President and CEO said, "We had a number of goals for these changes:
- Flattening IDEX's management structure, to enhance the speed of decision making and execution;
- Aligning businesses with similar attributes and opportunities under the leadership of a single full-time group executive, so we can realize more synergies;
- Emphasizing company-wide profitable growth and margin-enhancing initiatives including Six Sigma, global sourcing, external benchmarking of world-class companies, and rapid deployment of best practices across the company; and
- Providing the clear focus and leadership on IDEX's important corporate-wide initiatives for e-business, distributor relationships
and service growth.
Williams added, "All management positions in the new structure were filled internally, which indicates the depth of IDEX's management team and the confidence I have in their leadership capabilities."
Source: IDEX Corporation