8-K
Standex International Corp/De/ (SXI)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 2, 2023
STANDEX INTERNATIONAL CORPORATION
(Exact name of registrant as specified in its charter)
| Delaware | 1-7233 | 31-0596149 |
|---|---|---|
| (State or other jurisdiction of<br><br> <br>incorporation or organization) | (Commission<br><br> <br>File Number) | (IRS Employer<br><br> <br>Identification No.) |
| 23 Keewaydin Drive , Salem, New Hampshire | 03079 | |
| --- | --- | |
| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code: (603) 893-9701
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, Par Value $1.50 Per Share | SXI | New York Stock Exchange |
Not applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| --- | --- |
Emerging growth company ☐
If an emerging growth company, indicates by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Standex International Corporation
SECTION 2 – FINANCIAL INFORMATION
ITEM 2.02 – RESULTS OF OPERATIONS AND FINANCIAL CONDITIONS
On November 2, 2023, the registrant issued a press release announcing earnings for the first quarter ended September 30, 2023. A copy of the release is furnished herewith as Exhibit 99 and is incorporated herein by reference. This Current Report on Form 8-K and the press release attached hereto are being furnished by Standex International Corporation pursuant to item 2.02 of Form 8-K.
SECTION 9 - FINANCIAL STATEMENTS AND EXHIBITS
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
| (c) | Exhibits – The following exhibits are provided as part of the information furnished under Items 2.02 of this Current Report on Form 8-K. |
|---|---|
| Exhibit No. | Description |
| --- | --- |
| 99 | Press Release of Standex International Corporation dated November 2, 2023 regarding First Quarter Financial Results |
| --- | --- |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
FORWORD-LOOKING STATEMENTS
This current report on Form 8-K contains “forward-looking statements” within the meaning of the Private Securities Litigation Act of 1995 (the “Act”) that are intended to come within the safe harbor protection provided by the Act. By their nature, all forward-looking statements involve risks and uncertainties, and actual results may differ materially from those contemplated by the forward-looking statements. Several factors that could materially effect the Corporation’s actual results are identified in the press release as well as in the Corporation’s Annual Report on Form 10-K for the fiscal year ended June 30, 2023.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
STANDEX INTERNATIONAL CORPORATION
(Registrant)
| /s/ Ademir Sarcevic | |
|---|---|
| Ademir Sarcevic<br><br> <br>Chief Financial Officer | |
| Date: November 3, 2023 | |
| Signing on behalf of the registrant and as principal financial officer |
ex_590701.htm
Exhibit 99
| NEWS RELEASE |
|---|
STANDEX INTERNATIONAL CORPORATION ■ SALEM, NH 03079 ■ TEL (603) 893-9701 ■ WEB www.standex.com
STANDEX REPORTS FISCAL FIRST QUARTER 2024 FINANCIAL RESULTS
| ● | Organic Growth of 2.5% Led by Engraving and Engineering Technologies; Fast Growth Market Sales Increased ~20% Year-On-Year to ~$20 Million and Expected to Reach $100 Million in FY24 |
|---|---|
| ● | Record GAAP Gross Margin of 39.3% and Adjusted Gross Margin of 39.5% |
| --- | --- |
| ● | GAAP Operating Margin of 14.6%; Record Adjusted Operating Margin of 15.9%, up 90 bps Year-On-Year; 10 ^th^ Consecutive Quarter of Record Level Adjusted Operating Margin |
| --- | --- |
| ● | Free Cash Flow of $12.1 Million; Record Fiscal First Quarter Free Cash Flow Generation |
| --- | --- |
| ● | Entered Into a Definitive Agreement to Acquire Japanese-Based Sanyu Switch Co., Ltd; Acquisition will Strengthen Electronics Relay Product Line and Deepen Access to Key Customer Accounts |
| --- | --- |
SALEM, NH – November 2, 2023 – Standex International Corporation (NYSE: SXI) today reported financial results for the first quarter of fiscal year 2024 ended September 30, 2023.
| Summary Financial Results - Total | |||||
|---|---|---|---|---|---|
| ($M except EPS and Dividends) | 1Q24 | 1Q23 | 4Q23 | Y/Y | Q/Q |
| Net Sales | $184.8 | $180.6 | $188.3 | 2.3% | -1.9% |
| Operating Income - GAAP | $26.9 | $26.3 | $28.5 | 2.4% | -5.5% |
| Operating Income - Adjusted | $29.4 | $27.2 | $29.1 | 8.2% | 1.2% |
| Operating Margin % - GAAP | 14.6% | 14.6% | 15.1% | 0 bps | - 50 bps |
| Operating Margin % - Adjusted | 15.9% | 15.0% | 15.4% | + 90 bps | + 50 bps |
| Net Income from Continuing Ops - GAAP | $18.9 | $18.3 | $20.2 | 3.1% | -6.4% |
| Net Income from Continuing Ops - Adjusted | $20.8 | $19.1 | $21.2 | 9.0% | -1.7% |
| EBITDA | $33.2 | $32.3 | $35.6 | 2.7% | -7.0% |
| EBITDA margin | 17.9% | 17.9% | 18.9% | 0 bps | - 100 bps |
| Adjusted EBITDA | $35.6 | $33.2 | $36.2 | 7.5% | -1.6% |
| Adjusted EBITDA margin | 19.3% | 18.4% | 19.2% | + 90 bps | + 10 bps |
| Diluted EPS - GAAP | $1.58 | $1.53 | $1.68 | 3.3% | -6.0% |
| Diluted EPS - Adjusted | $1.74 | $1.60 | $1.76 | 8.7% | -1.1% |
| Dividends per Share | $0.28 | $0.26 | $0.28 | 7.7% | 0.0% |
| Free Cash Flow | $12.1 | ($8.0) | $32.8 | NM | -63.2% |
| Net Debt to EBITDA | 0.2x | 0.7x | -0.2x | NM | NM |
First Quarter Fiscal 2024 Results
Commenting on the quarter’s results, President and Chief Executive Officer David Dunbar said, “We followed a record fiscal year 2023 with a strong fiscal first quarter performance that further highlights the quality of our businesses. On the top line, we delivered 2.5% organic growth as the strong customer demand in Engraving and more favorable project timing in Engineering Technologies were partially offset by continued softness in general industrial and appliances end markets in China and Europe served by Electronics. Sales from fast growth markets such as electric vehicles, renewable energy, smart grid, and the commercialization of space increased approximately 20% year on year to $20 million in fiscal first quarter 2024. In addition, we achieved the record adjusted gross margin of 39.5%, up 170 bps year on year, and record adjusted operating margin of 15.9% in fiscal first quarter 2024 - our tenth consecutive quarter of record level adjusted operating margin performance. This margin growth reflects the continued solid execution of our pricing and productivity initiatives. In addition, we generated free cash flow of $12.1 million, our highest ever in a fiscal first quarter, following record free cash flow in fiscal year 2023.”
“In late July, we announced the acquisition of Minntronix, which provides customized magnetics across fast growth end markets such as 5G, smart grid, and industrial automation. The integration of Minntronix is progressing well and we remain excited about the growth and margin potential due to the highly complementary customer base, product line, and very strong engineering talent. In addition, as we just announced, we have signed an agreement to acquire Japanese-based Sanyu Switch Company. The addition of Sanyu strengthens Electronics’ relay product line and technology and provides a highly complementary customer base and strengthens our global reach. We anticipate that the transaction will close by January 31, 2024, subject to regulatory approvals. We expect the acquisition to be accretive to earnings and to achieve a double-digit return on invested capital in the first year of ownership.”
"We remain confident in our ability to navigate regional macro-economic challenges and continue to deliver improved operating results. We are entering our fiscal second quarter in a strong position for continued improvements in operating performance and remain on track to achieve our long-term financial targets by fiscal 2028. In addition, Standex’s consistent cash generation and substantial financial flexibility position us well to pursue a very active pipeline of organic and inorganic growth opportunities.”
Outlook
In the fiscal second quarter 2024, on a sequential basis, the Company expects slightly lower revenue due to softness in general industrial and appliances end markets in China and Europe served by Electronics and unfavorable foreign currency, partially offset by more favorable project timing and additional development work in Engineering Technologies and contribution from the Minntronix acquisition. The Company expects similar to slightly higher adjusted operating margin due to continued realization of pricing and productivity initiatives.
First Quarter Segment Operating Performance
Electronics (44% of sales; 44% of segment operating income)
| 1Q23 | % Change | |||||
|---|---|---|---|---|---|---|
| Electronics (M) | ||||||
| Revenue | 81.7 | 75.2 | 8.6 | % | ||
| GAAP Operating Income | 16.3 | 18.1 | -10.0 | % | ||
| GAAP Operating Margin % | 24.1 | |||||
| Adjusted Operating Income* | 16.7 | 18.1 | -8.1 | % | ||
| Adjusted Operating Margin %* | 24.1 |
All values are in US Dollars.
*Excludes purchase accounting expenses of $0.3 million associated with Minntronix in Q1 FY24
Revenue increased approximately $6.5 million or 8.6% year-on-year reflecting a 10% impact from the recent Minntronix acquisition and a 0.4% benefit from foreign currency, partially offset by an organic decline of 1.8%. Adjusted operating income decreased approximately $1.5 million or 8.1% year-on-year due to lower organic sales and unfavorable mix, partially offset by contribution from the Minntronix acquisition and realization of pricing and productivity initiatives.
Electronics segment backlog realizable in under one year of approximately $131 million decreased 11% year-on-year. The segment had a book to bill ratio of 0.68 at the end of the fiscal first quarter, reflecting continued softness in appliances and general industrial end markets in China and Europe. As a response to current market conditions in China and Europe, the Company is implementing additional cost saving and productivity actions in non-growth-related areas.
In fiscal second quarter 2024, on a sequential basis, the Company expects slightly lower revenue and similar adjusted operating margin due to continued focus on price and productivity actions.
Revenue attributable to fast growth end markets is expected to grow throughout the remainder of the fiscal year in markets like industrial automation, power management, renewable energy technologies, and EV-related applications.
Engraving (22% of sales; 20% of segment operating income)
| 1Q23 | % Change | |||||
|---|---|---|---|---|---|---|
| Engraving (M) | ||||||
| Revenue | 40.8 | 35.0 | 16.5 | % | ||
| Operating Income | 7.6 | 5.9 | 29.7 | % | ||
| Operating Margin % | 18.6 | 16.7 |
All values are in US Dollars.
Revenue increased approximately $5.8 million or 16.5% year-on-year reflecting 15.5% organic growth due to strong demand in Europe and growth in soft trim applications in Asia, and a 1.0% benefit from foreign currency. Operating income increased $1.7 million or 29.7% year-on-year, primarily driven by higher volume and realization of productivity actions.
In fiscal second quarter 2024, on a sequential basis, the Company expects similar revenue and slightly higher operating margin.
Scientific (10% of sales; 13% of segment operating income)
| 1Q23 | % Change | |||||
|---|---|---|---|---|---|---|
| Scientific (M) | ||||||
| Revenue | 18.2 | 18.5 | -1.4 | % | ||
| Operating Income | 4.9 | 3.7 | 32.4 | % | ||
| Operating Margin % | 27.1 | 20.2 |
All values are in US Dollars.
Revenue decreased approximately $0.3 million or 1.4% year-on-year reflecting lower demand for COVID vaccine storage units from retail pharmacies, mostly offset by increased sales into research and academic end markets. Operating income increased approximately $1.2 million or 32.4% year-on-year primarily driven by lower freight cost and pricing initiatives.
In fiscal second quarter 2024, on a sequential basis, the Company expects similar revenue and operating margin.
Engineering Technologies (10% of sales; 8% of segment operating income)
| 1Q23 | % Change | |||||
|---|---|---|---|---|---|---|
| Engineering Technologies (M) | ||||||
| Revenue | 18.2 | 17.0 | 7.2 | % | ||
| Operating Income | 3.0 | 1.9 | 61.8 | % | ||
| Operating Margin % | 16.6 | 11.0 |
All values are in US Dollars.
Revenue increased approximately $1.2 million or 7.2% year-on-year reflecting 6.1% organic growth and a 1.1% benefit from foreign currency. Operating income increased approximately $1.2 million or 61.8% year-on-year reflecting pricing and productivity initiatives, mostly offset by research and development expenses related to new product development and new applications.
In fiscal second quarter 2024, on a sequential basis, the Company expects moderately higher revenue reflecting more favorable project timing and higher level of development activities and similar operating margin.
Specialty Solutions (14% of sales; 15% of segment operating income)
| 1Q23 | % Change | |||||
|---|---|---|---|---|---|---|
| Specialty Solutions (M) | ||||||
| Revenue | 25.9 | 34.9 | -25.9 | % | ||
| Operating Income | 5.6 | 6.1 | -7.6 | % | ||
| Operating Margin % | 21.7 | 17.4 |
All values are in US Dollars.
Specialty Solutions revenue decreased approximately $9.0 million or 25.9% year-on-year, primarily reflecting the impact of the Procon divestiture. Operating income decreased approximately $0.5 million or 7.6% year-on-year due to the Procon divestiture, partially offset by improved operating performance in the Display Merchandising and Hydraulics businesses.
In fiscal second quarter 2024, on a sequential basis, the Company expects a slight decrease in revenue and operating margin primarily due to lower number of shipping days in the quarter and seasonality in the Display Merchandising business.
Capital Allocation
| ● | Share Repurchase: During the fiscal first quarter 2024, the Company repurchased approximately 140,000 shares for $22.2 million, which included $10.2 million of share repurchases to satisfy taxes on vesting of restricted shares held by employees. There was $42.9 million remaining on the Company’s current share repurchase authorization at the end of the fiscal first quarter 2024. |
|---|---|
| ● | Capital Expenditures: In fiscal first quarter 2024, Standex’s capital expenditures were $4.3 million compared to $5.3 million in the fiscal first quarter of 2023. The Company expects fiscal year 2024 capital expenditures between $30 million and $35 million with key investments focused on growth initiatives and capacity expansion. Capital expenditures were $24.3 million in fiscal 2023. |
| --- | --- |
| ● | Dividend: On October 26, 2023, the Company declared a quarterly cash dividend of $0.30 per share, an approximately 7.1% year-on-year increase. The dividend is payable November 22, 2023, to shareholders of record on November 8, 2023. |
| --- | --- |
Balance Sheet and Cash Flow Highlights
| ● | Net Debt: Standex had net debt of $21.7 million on September 30, 2023, compared to $95.5 million at the end of fiscal first quarter 2023. Net debt for the first quarter of 2024 consisted primarily of long-term debt of $148.6 million and cash and equivalents of $126.8 million. |
|---|---|
| ● | Cash Flow: Net cash provided by (used in) continuing operating activities for the three months ended September 30, 2023, was $16.4 million compared to ($2.7) million in the prior year’s quarter. Free cash flow after capital expenditures was $12.1 million compared to free cash flow after capital expenditures of ($8.0) million in the fiscal first quarter of 2023. |
| --- | --- |
Conference Call Details
Standex will host a conference call for investors tomorrow, November 3, 2023, at 8:30 a.m. ET. On the call, David Dunbar, President, and CEO, and Ademir Sarcevic, CFO, will review the Company’s financial results and business and operating highlights. Investors interested in listening to the webcast and viewing the slide presentation should log on to the “Investors” section of Standex’s website under the subheading, “Events and Presentations,” located at www.standex.com.
A replay of the webcast will also be available on the Company’s website shortly after the conclusion of the presentation online through November 3, 2024. To listen to the teleconference playback, please dial in the U.S. (877) 344-7529 or (412) 317-0088 internationally; the passcode is 8974890. The audio playback via phone will be available through November 10, 2023. The webcast replay can be accessed in the “Investor Relations” section of the Company’s website, located at www.standex.com.
Use of Non-GAAP Financial Measures
In addition to the financial measures prepared in accordance with generally accepted accounting principles (“GAAP”), the Company uses certain non-GAAP financial measures, including non-GAAP adjusted income from operations, non-GAAP adjusted net income from continuing operations, free operating cash flow, EBITDA (earnings before interest, taxes, depreciation and amortization) adjusted EBITDA, adjusted EBITDA to net debt, and adjusted earnings per share. The attached financial tables reconcile non-GAAP measures used in this press release to the most directly comparable GAAP measures. The Company believes that the use of non-GAAP measures which include the impact of restructuring charges, purchase accounting, insurance recoveries, discrete tax events, gain or loss on sale of a business unit, acquisition costs, and litigation costs help investors to obtain a better understanding of our operating results and prospects, consistent with how management measures and forecasts the Company's performance, especially when comparing such results to previous periods. An understanding of the impact in a particular quarter of specific restructuring costs, acquisition expenses, or other gains and losses, on net income (absolute as well as on a per-share basis), operating income or EBITDA can give management and investors additional insight into core financial performance, especially when compared to quarters in which such items had a greater or lesser effect, or no effect. Non-GAAP measures should be considered in addition to, and not as a replacement for, the corresponding GAAP measures, and may not be comparable to similarly titled measures reported by other companies.
About Standex
Standex International Corporation is a multi-industry manufacturer in five broad business segments: Electronics, Engraving, Scientific, Engineering Technologies, and Specialty Solutions with operations in the United States, Europe, Canada, Japan, Singapore, Mexico, Turkey, South Africa, India, and China. For additional information, visit the Company's website at http://standex.com/.
Forward-Looking Statements
Statements contained in this Press Release that are not based on historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of forward-looking terminology such as “should,” “could,” “may,” “will,” “expect,” “believe,” “estimate,” “anticipate,” “intend,” “continue,” or similar terms or variations of those terms or the negative of those terms. There are many factors that affect the Company’s business and the results of its operations and that may cause the actual results of operations in future periods to differ materially from those currently expected or anticipated. These factors include, but are not limited to: the impact of pandemics and other global crises or catastrophic events on employees, our supply chain, and the demand for our products and services around the world; materially adverse or unanticipated legal judgments, fines, penalties or settlements; conditions in the financial and banking markets, including fluctuations in exchange rates and the inability to repatriate foreign cash; domestic and international economic conditions, including the impact, length and degree of economic downturns on the customers and markets we serve and more specifically conditions in the automotive, construction, aerospace, defense, transportation, food service equipment, consumer appliance, energy, oil and gas and general industrial markets; lower-cost competition; the relative mix of products which impact margins and operating efficiencies in certain of our businesses; the impact of higher raw material and component costs, particularly steel, certain materials used in electronics parts, petroleum based products, and refrigeration components; the impact of higher transportation and logistics costs, especially with respect to transportation of goods from Asia; the impact of inflation on the costs of providing our products and services; an inability to realize the expected cost savings from restructuring activities including effective completion of plant consolidations, cost reduction efforts including procurement savings and productivity enhancements, capital management improvements, strategic capital expenditures, and the implementation of lean enterprise manufacturing techniques; the potential for losses associated with the exit from or divestiture of businesses that are no longer strategic or no longer meet our growth and return expectations; the inability to achieve the savings expected from global sourcing of raw materials and diversification efforts in emerging markets; the impact on cost structure and on economic conditions as a result of actual and threatened increases in trade tariffs; the inability to attain expected benefits from acquisitions and the inability to effectively consummate and integrate such acquisitions and achieve synergies envisioned by the Company; market acceptance of our products; our ability to design, introduce and sell new products and related product components; the ability to redesign certain of our products to continue meeting evolving regulatory requirements; the impact of delays initiated by our customers; our ability to increase manufacturing production to meet demand including as a result of labor shortages; the impact on our operations of any successful cybersecurity attacks; and potential changes to future pension funding requirements. In addition, any forward-looking statements represent management's estimates only as of the day made and should not be relied upon as representing management's estimates as of any subsequent date. While the Company may elect to update forward-looking statements at some point in the future, the Company and management specifically disclaim any obligation to do so, even if management's estimates change.
Contact:
Christopher Howe
Director of Investor Relations
(773) 754-5394
e-mail: InvestorRelations@Standex.com
| Standex International Corporation | ||||||
|---|---|---|---|---|---|---|
| Consolidated Statement of Operations | ||||||
| (unaudited) | ||||||
| --- | --- | --- | --- | --- | --- | --- |
| Three Months Ended | ||||||
| September 30, | ||||||
| (In thousands, except per share data) | 2023 | 2022 | ||||
| Net sales | $ | 184,774 | 180,600 | |||
| Cost of sales | 112,139 | 112,347 | ||||
| Gross profit | 72,635 | 68,253 | ||||
| Selling, general and administrative expenses | 43,585 | 41,089 | ||||
| (Gain) loss on sale of business | (274 | ) | - | |||
| Restructuring costs | 1,906 | 582 | ||||
| Acquisition related costs | 501 | 292 | ||||
| Income from operations | 26,917 | 26,290 | ||||
| Interest expense | 1,276 | 1,187 | ||||
| Other non-operating (income) expense, net | 846 | 1,018 | ||||
| Total | 2,122 | 2,205 | ||||
| Income from continuing operations before income taxes | 24,795 | 24,085 | ||||
| Provision for income taxes | 5,903 | 5,769 | ||||
| Net income from continuing operations | 18,892 | 18,316 | ||||
| Income (loss) from discontinued operations, net of tax | (78 | ) | (46 | ) | ||
| Net income | $ | 18,814 | $ | 18,270 | ||
| Basic earnings per share: | ||||||
| Income (loss) from continuing operations | $ | 1.61 | $ | 1.55 | ||
| Income (loss) from discontinued operations | (0.01 | ) | - | |||
| Total | $ | 1.60 | $ | 1.55 | ||
| Diluted earnings per share: | ||||||
| Income (loss) from continuing operations | $ | 1.58 | $ | 1.53 | ||
| Income (loss) from discontinued operations | - | - | ||||
| Total | $ | 1.58 | $ | 1.53 | ||
| Average Shares Outstanding | ||||||
| Basic | 11,742 | 11,823 | ||||
| Diluted | 11,933 | 11,952 |
| Standex International Corporation | ||||||
|---|---|---|---|---|---|---|
| Condensed Consolidated Balance Sheets | ||||||
| (unaudited) | ||||||
| September 30, | June 30, | |||||
| --- | --- | --- | --- | --- | --- | --- |
| (In thousands) | 2023 | 2023 | ||||
| ASSETS | **** | **** | **** | **** | **** | **** |
| Current assets: | ||||||
| Cash and cash equivalents | $ | 126,830 | $ | 195,706 | ||
| Accounts receivable, net | 127,164 | 123,440 | ||||
| Inventories | 98,290 | 98,537 | ||||
| Prepaid expenses and other current assets | 66,819 | 64,739 | ||||
| Income taxes receivable | 944 | 831 | ||||
| Total current assets | 420,047 | 483,253 | ||||
| Property, plant, equipment, net | 129,234 | 130,937 | ||||
| Intangible assets, net | 83,551 | 75,651 | ||||
| Goodwill | 275,358 | 264,821 | ||||
| Deferred tax asset | 13,984 | 14,602 | ||||
| Operating lease right-of-use asset | 35,309 | 33,273 | ||||
| Other non-current assets | 23,950 | 22,392 | ||||
| Total non-current assets | 561,386 | 541,676 | ||||
| Total assets | $ | 981,433 | $ | 1,024,929 | ||
| LIABILITIES AND STOCKHOLDERS' EQUITY | **** | **** | **** | **** | **** | **** |
| Current liabilities: | ||||||
| Accounts payable | $ | 62,071 | $ | 68,601 | ||
| Accrued liabilities | 59,687 | 62,031 | ||||
| Income taxes payable | 9,899 | 10,335 | ||||
| Total current liabilities | 131,657 | 140,967 | ||||
| Long-term debt | 148,550 | 173,441 | ||||
| Operating lease long-term liabilities | 27,390 | 25,774 | ||||
| Accrued pension and other non-current liabilities | 79,197 | 77,298 | ||||
| Total non-current liabilities | 255,137 | 276,513 | ||||
| Stockholders' equity: | ||||||
| Common stock | 41,976 | 41,976 | ||||
| Additional paid-in capital | 98,713 | 100,555 | ||||
| Retained earnings | 1,042,695 | 1,027,279 | ||||
| Accumulated other comprehensive loss | (167,576 | ) | (158,477 | ) | ||
| Treasury shares | (421,169 | ) | (403,884 | ) | ||
| Total stockholders' equity | 594,639 | 607,449 | ||||
| Total liabilities and stockholders' equity | $ | 981,433 | $ | 1,024,929 |
| Standex International Corporation and Subsidiaries | ||||||
|---|---|---|---|---|---|---|
| Statements of Consolidated Cash Flows | ||||||
| (unaudited) | ||||||
| Three Months Ended | ||||||
| --- | --- | --- | --- | --- | --- | --- |
| September 30, | ||||||
| (In thousands) | 2023 | 2022 | ||||
| Cash Flows from Operating Activities | **** | **** | **** | **** | **** | **** |
| Net income | $ | 18,814 | $ | 18,270 | ||
| Income (loss) from discontinued operations | (78 | ) | (46 | ) | ||
| Income from continuing operations | 18,892 | 18,316 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
| Depreciation and amortization | 7,082 | 7,008 | ||||
| Stock-based compensation | 2,193 | 2,564 | ||||
| Gain from exinguishment of debt - PPP loan | - | - | ||||
| Non-cash portion of restructuring charge | 397 | (1,066 | ) | |||
| (Gain) loss on sale of business | (274 | ) | - | |||
| Contributions to defined benefit plans | (49 | ) | (52 | ) | ||
| Net changes in operating assets and liabilities | (11,834 | ) | (29,475 | ) | ||
| Net cash provided by operating activities - continuing operations | 16,407 | (2,705 | ) | |||
| Net cash provided by (used in) operating activities - discontinued operations | (227 | ) | 2 | |||
| Net cash provided by (used in) operating activities | 16,180 | (2,703 | ) | |||
| Cash Flows from Investing Activities | **** | **** | **** | **** | **** | **** |
| Expenditures for property, plant and equipment | (4,338 | ) | (5,267 | ) | ||
| Expenditures for acquisitions, net of cash acquired | (29,229 | ) | - | |||
| Proceeds from the sale of business | 274 | - | ||||
| Other investing activities | - | 43 | ||||
| Net cash (used in) investing activities from continuing operations | (33,293 | ) | (5,224 | ) | ||
| Net cash provided by investing activities from discontinued operations | - | - | ||||
| Net cash provided by (used in) investing activities | (33,293 | ) | (5,224 | ) | ||
| Cash Flows from Financing Activities | **** | **** | **** | **** | **** | **** |
| Proceeds from borrowings | - | 24,000 | ||||
| Payments of debt | (25,000 | ) | - | |||
| Contingent consideration payment | - | (1,167 | ) | |||
| Activity under share-based payment plans | 768 | 835 | ||||
| Purchase of treasury stock | (22,158 | ) | (8,393 | ) | ||
| Cash dividends paid | (3,288 | ) | (3,074 | ) | ||
| Net cash provided by (used in) financing activities | (49,678 | ) | 12,201 | |||
| Effect of exchange rate changes on cash | (2,085 | ) | (5,690 | ) | ||
| Net changes in cash and cash equivalents | (68,876 | ) | (1,416 | ) | ||
| Cash and cash equivalents at beginning of year | 195,706 | 104,844 | ||||
| Cash and cash equivalents at end of period | $ | 126,830 | $ | 103,428 |
| Selected Segment Data | ||||||
|---|---|---|---|---|---|---|
| (unaudited) | ||||||
| Three Months Ended | ||||||
| --- | --- | --- | --- | --- | --- | --- |
| September 30, | ||||||
| (In thousands) | 2023 | 2022 | ||||
| Net Sales | **** | **** | **** | **** | **** | **** |
| Electronics | $ | 81,688 | $ | 75,199 | ||
| Engraving | 40,794 | 35,024 | ||||
| Scientific | 18,193 | 18,456 | ||||
| Engineering Technologies | 18,220 | 16,999 | ||||
| Specialty Solutions | 25,879 | 34,922 | ||||
| Total | $ | 184,774 | $ | 180,600 | ||
| Income from operations | **** | **** | **** | **** | **** | **** |
| Electronics | $ | 16,334 | $ | 18,141 | ||
| Engraving | 7,595 | 5,854 | ||||
| Scientific | 4,930 | 3,723 | ||||
| Engineering Technologies | 3,017 | 1,865 | ||||
| Specialty Solutions | 5,617 | 6,077 | ||||
| Restructuring | (1,906 | ) | (582 | ) | ||
| (Gain) loss on sale of business | 274 | - | ||||
| Acquisition related costs | (501 | ) | (292 | ) | ||
| Corporate | (8,443 | ) | (8,496 | ) | ||
| Total | $ | 26,917 | $ | 26,290 |
| Standex International Corporation | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Reconciliation of GAAP to Non-GAAP Financial Measures | |||||||||
| (unaudited) | |||||||||
| Three Months Ended | **** | **** | **** | ||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| September 30, | **** | **** | **** | ||||||
| (In thousands, except percentages) | 2023 | 2022 | % Change | ||||||
| Adjusted income from operations and adjusted net income from continuing operations: | |||||||||
| Net Sales | $ | 184,774 | $ | 180,600 | 2.3 | % | |||
| Income from operations, as reported | $ | 26,917 | $ | 26,290 | 2.4 | % | |||
| Income from operations margin | 14.6 | % | 14.6 | % | |||||
| Adjustments: | |||||||||
| Restructuring charges | 1,906 | 582 | |||||||
| Acquisition-related costs | 501 | 292 | |||||||
| (Gain) loss on sale of business | (274 | ) | - | ||||||
| Purchase accounting expenses | 340 | - | |||||||
| Adjusted income from operations | $ | 29,390 | $ | 27,164 | 8.2 | % | |||
| Adjusted income from operations margin | 15.9 | % | 15.0 | % | |||||
| Interest and other income (expense), net | (2,122 | ) | (2,205 | ) | |||||
| Provision for income taxes | (5,903 | ) | (5,769 | ) | |||||
| Discrete and other tax items | 100 | 100 | |||||||
| Tax impact of above adjustments | (654 | ) | (206 | ) | |||||
| Net income from continuing operations, as adjusted | $ | 20,811 | $ | 19,084 | 9.0 | % | |||
| EBITDA and Adjusted EBITDA: | |||||||||
| Net income (loss) from continuing operations, as reported | $ | 18,892 | $ | 18,316 | 3.1 | % | |||
| Net income from continuing operations margin | 10.2 | % | 10.1 | % | |||||
| Add back: | |||||||||
| Provision for income taxes | 5,903 | 5,769 | |||||||
| Interest expense | 1,276 | 1,187 | |||||||
| Depreciation and amortization | 7,082 | 7,008 | |||||||
| EBITDA | $ | 33,153 | $ | 32,280 | 2.7 | % | |||
| EBITDA Margin | 17.9 | % | 17.9 | % | |||||
| Adjustments: | |||||||||
| Restructuring charges | 1,906 | 582 | |||||||
| Acquisition-related costs | 501 | 292 | |||||||
| (Gain) loss on sale of business | (274 | ) | - | ||||||
| Purchase accounting expenses | 340 | - | |||||||
| Adjusted EBITDA | $ | 35,626 | $ | 33,154 | 7.5 | % | |||
| Adjusted EBITDA Margin | 19.3 | % | 18.4 | % | |||||
| Free operating cash flow: | |||||||||
| Net cash provided by operating activities - continuing operations, as reported | $ | 16,407 | $ | (2,705 | ) | ||||
| Less: Capital expenditures | (4,338 | ) | (5,267 | ) | |||||
| Free cash flow from continuing operations | $ | 12,069 | $ | (7,972 | ) |
| Standex International Corporation | ||||||||
|---|---|---|---|---|---|---|---|---|
| Reconciliation of GAAP to Non-GAAP Financial Measures | ||||||||
| (unaudited) | ||||||||
| Three Months Ended | **** | **** | **** | |||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Adjusted earnings per share from continuing operations | September 30, | **** | **** | **** | ||||
| 2023 | 2022 | % Change | ||||||
| Diluted earnings per share from continuing operations, as reported | $ | 1.58 | $ | 1.53 | 3.3 | % | ||
| Adjustments: | ||||||||
| Restructuring charges | 0.12 | 0.04 | ||||||
| Acquisition-related costs | 0.03 | 0.02 | ||||||
| (Gain) loss on sale of business | (0.02 | ) | - | |||||
| Discrete tax items | 0.01 | 0.01 | ||||||
| Purchase accounting expenses | 0.02 | - | ||||||
| Diluted earnings per share from continuing operations, as adjusted | $ | 1.74 | $ | 1.60 | 8.8 | % |