Idex Corp has reported an 11.98 percent rise in profit for the quarter ended Sep. 30, 2014. The company has earned $71.44 million, or $0.88 a share in the quarter, compared with $63.80 million, or $0.78 a share for the same period last year.
Revenue during the quarter grew 8.68 percent to $533.18 million from $490.62 million in the previous year period. Gross margin for the quarter expanded 90 basis points over the previous year period to 44.01 percent. Total expenses were 79.21 percent of quarterly revenues, down from 80.15 percent for the same period last year. This has led to an improvement of 94 basis points in operating margin to 20.79 percent.
Operating income for the quarter was $110.85 million, compared with $97.37 million in the previous year period.
"IDEX's third quarter results were highlighted by continued sales growth and profitability improvements. Organic revenue grew 7 percent and operating margins increased 100 basis points. These gains were present in each segment and demonstrate the focus our teams have on delivering superior results. Third quarter orders were soft primarily due to difficult comparisons from specific projects booked in the prior year within our FSD segment. We expect fourth quarter organic revenue growth to be low-to-mid single digits, resulting in full year organic revenue growth of 5 to 6 percent with operating margins exceeding 20 percent. We also expect fourth quarter EPS in the range of 85 to 88 cents and full year 2014 EPS of $3.52 to $3.55. I am proud of our year-to-date performance and excited about the organic and inorganic opportunities that lie ahead. Our capital deployment plan of growth investments, strategic acquisitions, shareholder dividends and share repurchases remains unaltered. Finally, over the past two years we have more tightly aligned our organization to deliver for our customers, shareholders, and fund organic growth opportunities. This success allows us to take targeted cost-out actions in the fourth quarter that will enable further reinvestment and optimize our cost structure as we enter 2015. The impact of these cost-out actions has not been included in our guidance." Andrew K. Silvernail chairman and chief executive officer
Working Capital
Idex Corp has recorded an increase in the working capital over the last year. It stood at $678.41 million as at Sep. 30, 2014, up 5.72 percent or $36.68 million from $641.73 million on Sep. 30, 2013. Current ratio was at 2.70 as on Sep. 30, 2014, down from 3.08 on Sep. 30, 2013.
Cash conversion cycle (CCC) has decreased to 81 days for the quarter from 84 days for the last year period. Days sales outstanding went down to 47 days for the quarter compared with 49 days for the same period last year.
Days inventory outstanding was almost stable at 78 days for the quarter, when compared with the last year period. At the same time, days payable outstanding was almost stable at 43 days for the quarter, when compared with the previous year period.
Debt Story
Idex Corp has witnessed an increase in total debt over the last one year. It stood at $823.42 million as on Sep. 30, 2014, up 4.97 percent or $39 million from $784.42 million on Sep. 30, 2013. Total debt was 28.01 percent of total assets as on Sep. 30, 2014, compared with 27.53 percent on Sep. 30, 2013.
Debt to equity ratio was almost stable at 0.52 as on Sep. 30, 2014, when compared with the last year. Interest coverage ratio improved to 10.60 for the quarter from 9.21 for the same period last year.
