- Organic Growth of 7.8%; Fast Growth Market Sales
Increased ~67% year-on-year to ~$24
million
- GAAP Operating Margin of 15.1%; Record Adjusted Operating
Margin of 15.4%, up 150 bps year-on-year; Ninth Consecutive Quarter
of Record Level Adjusted Operating Margin
- Record Gross Margin, Operating Margin, EPS, and Free Cash
Flow in FY 2023 on GAAP and Adjusted Basis
- Minntronix Acquisition Expands Electronics' Engineering
Capability, Key Customer Account Access, and Presence in Fast
Growth Markets
- In FY 2024, Expect High Single Digit Sales Growth; Expect
Continued Margin Expansion in FY 2024 Ahead of the Long-Term
Outlook; Fast Growth Market Sales Expected to Increase >20% to
>$100M
SALEM,
N.H., Aug. 3, 2023 /PRNewswire/ -- Standex
International Corporation (NYSE: SXI) today reported
financial results for the fourth quarter of fiscal year 2023 ended
June 30, 2023.
Summary Financial
Results - Total
|
|
|
|
|
|
($M except EPS and
Dividends)
|
4Q23
|
4Q22
|
3Q23
|
Y/Y
|
Q/Q
|
Net Sales
|
$188.3
|
$184.7
|
$184.3
|
1.9 %
|
2.2 %
|
Operating Income -
GAAP
|
$28.5
|
$19.2
|
$88.5
|
48.2 %
|
-67.8 %
|
Operating Income -
Adjusted
|
$29.1
|
$25.7
|
$27.9
|
13.2 %
|
4.0 %
|
Operating Margin % -
GAAP
|
15.1 %
|
10.4 %
|
48.0 %
|
+ 470 bps
|
- 3290 bps
|
Operating Margin % -
Adjusted
|
15.4 %
|
13.9 %
|
15.2 %
|
+ 150 bps
|
+ 20 bps
|
Net Income from
Continuing Ops - GAAP
|
$20.2
|
$13.2
|
$80.6
|
52.7 %
|
-74.9 %
|
Net Income from
Continuing Ops - Adjusted
|
$21.2
|
$18.6
|
$19.6
|
13.7 %
|
7.9 %
|
|
|
|
|
|
|
EBITDA
|
$35.6
|
$26.0
|
$95.1
|
36.9 %
|
-62.5 %
|
EBITDA
margin
|
18.9 %
|
14.1 %
|
51.6 %
|
+ 480
bps
|
- 3270 bps
|
Adjusted
EBITDA
|
$36.2
|
$32.5
|
$34.5
|
11.5 %
|
4.9 %
|
Adjusted EBITDA
margin
|
19.2 %
|
17.6 %
|
18.7 %
|
+ 160 bps
|
+ 50
bps
|
|
|
|
|
|
|
Diluted EPS -
GAAP
|
$1.68
|
$1.10
|
$6.77
|
52.7 %
|
-75.2 %
|
Diluted EPS -
Adjusted
|
$1.76
|
$1.54
|
$1.65
|
14.3 %
|
6.7 %
|
Dividends per
Share
|
$0.28
|
$0.26
|
$0.28
|
7.7 %
|
0.0 %
|
|
|
|
|
|
|
Free Cash
Flow
|
$32.8
|
$18.8
|
$17.6
|
74.8 %
|
85.8 %
|
Net Debt to
EBITDA
|
-0.2x
|
0.5x
|
0.0x
|
NM
|
NM
|
Fourth Quarter Fiscal 2023 Results
Commenting on the quarter's results, President and Chief
Executive Officer David Dunbar said, "We concluded a
record fiscal year with a strong fourth quarter performance. On the
top line, we delivered 7.8% organic growth, offset by foreign
currency exchange and the divestiture of our Procon business unit.
Sales from fast growth markets such as electric vehicles, renewable
energy, smart grid, and the commercialization of space increased
approximately 67% year on year to $24
million in fiscal fourth quarter 2023. We achieved record
gross margin of 39.1%, up 280 bps year on year, and record
consolidated adjusted operating margin of 15.4% in fiscal fourth
quarter 2023 - our ninth consecutive quarter of record level
adjusted operating margin performance. This margin growth reflects
solid execution of our pricing and productivity initiatives and the
benefit from lower freight cost."
"For fiscal year 2023, we achieved record gross margin, adjusted
operating profit, adjusted operating margin, adjusted earnings per
share, and free cash flow. This record fiscal performance was
driven by our operating execution and strengthening of and enhanced
focus on our fast growth end markets. In addition, Standex's
substantial financial flexibility continues to position us well to
pursue an active pipeline of organic and inorganic growth
opportunities."
"We believe our recent acquisition of Minntronix is a great
strategic fit. Minntronix offers customized magnetics that expand
our presence in fast growth end markets like 5G, smart grid, and
industrial automation. It provides a highly complementary customer
base and product line and high performing engineering organization
and access to new geographies."
"Our free cash flow conversion remained healthy at 158% of GAAP
net income in the fiscal fourth quarter and we generated record
free cash flow of $66.5 million in
fiscal year 2023, up 23% year-on-year."
"We are beginning fiscal year 2024 in a strong position for
continued improvements in financial performance and remain on track
to achieve our long-term financial targets by fiscal 2028. We
continue to drive growth across our business and with a focus on
fast growth end markets, while continuing to realize steady growth
from our strong customer relationships in new applications. We are
cautiously optimistic for improvement in China and Europe in the second half of our fiscal year
2024."
Outlook
In fiscal year 2024, the Company expects high single digit sales
growth. The Company also expects continued margin expansion in
fiscal year 2024 ahead of its long-term outlook.
In the fiscal first quarter 2024, on a year-on-year basis,
the Company expects a slight increase in revenue, as organic growth
in Engraving and the contribution from the Minntronix acquisition
are partially offset by a slow recovery in China and Europe markets served by Electronics and the
impact of the Procon divestiture. The Company expects a moderate
increase in adjusted operating margin.
On a sequential basis, the Company expects slightly lower
revenue as the contribution from the Minntronix acquisition is more
than offset by unfavorable project timing in Engineering
Technologies and continued slow recovery in China and Europe markets served by Electronics. The
Company expects similar to slightly higher adjusted operating
margin.
Fourth Quarter Segment Operating Performance
Electronics (42% of sales; 43% of segment operating
income)
|
4Q23
|
4Q22
|
%
Change
|
Electronics
($M)
|
|
|
|
Revenue
|
79.9
|
71.9
|
11.1 %
|
Operating
Income
|
16.8
|
15.8
|
6.4 %
|
Operating Margin
%
|
21.0
|
22.0
|
|
Adjusted Operating
Income*
|
16.8
|
16.2
|
3.8 %
|
Adjusted Operating
Margin %*
|
21.0
|
22.5
|
|
*Excludes purchase accounting expenses of $0.4M associated with Sensor Solutions in Q4
FY22
Revenue increased approximately $8.0
million or 11.1% year-on-year reflecting organic growth
of 12.3%, partially offset by a 1.2% impact from foreign exchange.
Revenue attributable to fast growth end markets grew throughout the
year in markets like industrial automation, power management,
renewable energy technologies, and EV-related applications.
Electronics segment backlog realizable in under one year of
approximately $130 million decreased
13% year-on-year. The segment had a book to bill ratio of 0.94 at
the end of the fiscal fourth quarter.
Adjusted operating income increased approximately $0.6 million or 3.8% year-on-year due to higher
volume and realization of pricing and productivity initiatives,
partially offset by unfavorable mix and inflation.
In fiscal first quarter 2024, on a sequential basis, the Company
expects slightly higher revenue primarily due to the Minntronix
acquisition and continued strength in fast growth end markets,
partially offset by continued slow recovery in China and Europe. Sequentially, the company expects
similar operating margin.
Engraving (23% of sales; 20% of segment operating
income)
|
4Q23
|
4Q22
|
%
Change
|
Engraving
($M)
|
|
|
|
Revenue
|
42.4
|
37.2
|
14.0 %
|
Operating
Income
|
7.9
|
6.0
|
30.9 %
|
Operating Margin
%
|
18.6
|
16.2
|
|
Revenue increased approximately $5.2
million or 14.0% year-on-year reflecting 15.5% organic
growth due to strong demand in Europe and growth in soft trim applications in
Asia, partially offset by a 1.4%
impact from exchange. Operating income increased $1.9 million or 30.9% year-on-year, primarily
driven by higher sales and realization of productivity actions.
In fiscal first quarter 2024, on a sequential basis, the Company
expects slightly lower revenue, reflecting timing of customer
projects, and slightly higher operating margin.
Scientific (10% of sales; 12% of segment
operating income)
|
4Q23
|
4Q22
|
%
Change
|
Scientific
($M)
|
|
|
|
Revenue
|
18.3
|
18.8
|
-2.6 %
|
Operating
Income
|
4.7
|
3.7
|
25.7 %
|
Operating Margin
%
|
25.5
|
19.8
|
|
Revenue decreased approximately $0.5
million or 2.6% year-on-year reflecting higher sales into
research and academic end markets, offset by lower demand for COVID
vaccine storage units. Operating income increased approximately
$1.0 million or 25.7%
year-on-year primarily driven by lower freight cost and realization
of productivity actions.
In fiscal first quarter 2024, on a sequential basis, the Company
expects similar revenue and operating margin.
Engineering Technologies (12% of sales; 8% of segment
operating income)
|
4Q23
|
4Q22
|
%
Change
|
Engineering
Technologies ($M)
|
|
|
|
Revenue
|
21.8
|
21.6
|
1.3 %
|
Operating
Income
|
3.1
|
3.2
|
-4.4 %
|
Operating Margin
%
|
14.2
|
15.0
|
|
Revenue increased approximately $0.2
million or 1.3% year-on-year. Operating income decreased
approximately $0.1 million or 4.4%
year-on-year reflecting an increase in the number of new platform
development projects, mostly offset by the impact of productivity
and efficiency initiatives.
In fiscal first quarter 2024, on a sequential basis, the Company
expects a significant decrease in revenue reflecting timing of
projects and a slight to moderate decrease in operating margin,
with productivity initiatives mostly offsetting the impact of
volume decline and higher mix of development projects. The
long-term demand remains robust with the current backlog and new
platform development funnel expected to provide solid foundation
for growth in the second half of fiscal 2024 and beyond.
Specialty Solutions (14% of sales; 17% of segment
operating income)
|
4Q23
|
4Q22
|
%
Change
|
Specialty Solutions
($M)
|
|
|
|
Revenue
|
25.9
|
35.3
|
-26.6 %
|
Operating
Income
|
6.4
|
5.4
|
19.1 %
|
Operating Margin
%
|
24.8
|
15.3
|
|
Specialty Solutions revenue decreased approximately $9.4 million or 26.6% year-on-year, reflecting an
organic decline in the Hydraulics business and the Procon
divestiture, partially offset by robust organic growth in the
Display Merchandising business. On a pro-forma basis, excluding
Procon, revenue decreased approximately $0.6
million or 2.1% year-on-year. Operating income increased
approximately $1.0 million or 19.1%
year-on-year driven by higher sales in the Display Merchandising
business (driven by new product introductions) and operational
improvements and aftermarket focus in the Hydraulics business. On a
pro-forma basis, excluding Procon, operating income increased
approximately $2.8 million or 75.3%
year-on-year.
In fiscal first quarter 2024, on a sequential basis, the Company
expects a slight decrease in revenue and operating margin.
Capital Allocation
- Share Repurchase: During the fiscal fourth quarter 2023,
the Company repurchased approximately 50,900 shares for
$7.0 million. There was $65.1 million remaining on the Company's current
share repurchase authorization at the end of the fiscal fourth
quarter 2023.
- Capital Expenditures: In fiscal fourth quarter 2023,
Standex's capital expenditures were $7.6
million compared to $10.8
million in the fiscal fourth quarter of 2022. The Company
expects fiscal year 2024 capital expenditures between $35 million and $40
million with key investments focused on growth initiatives
and capacity expansion. Capital expenditures were $24.3 million in fiscal 2023.
- Dividend: On July 27,
2023, the Company declared a quarterly cash dividend of
$0.28 per share, an approximately
7.7% year-on-year increase. The dividend is payable August 25, 2023, to shareholders of record on
August 9, 2023.
Balance Sheet and Cash Flow Highlights
- Net Debt: Standex had net (cash) debt of
($22.3) million on June 30, 2023, compared to $70.0 million at the end of fiscal fourth quarter
2022. Net debt for the fourth quarter of 2023 consisted primarily
of long-term debt of $173.3 million
and cash and equivalents of $195.7
million.
- Cash Flow: Net cash provided by continuing
operating activities for the three months ended June 30, 2023, was $40.4
million compared to $29.5
million in the prior year's quarter. Free cash flow after
capital expenditures was $32.8 million compared to free
cash flow after capital expenditures of $18.7 million in
the fiscal fourth quarter of 2022.
Conference Call Details
Standex will host a conference call for investors tomorrow,
August 4, 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 August 4, 2024. To listen to
the teleconference playback, please dial in the U.S. (877)
344-7529 or (412) 317-0088 internationally; the passcode is
2752964. The audio playback via phone will be available through
August 11, 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 such as the current coronavirus 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; 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.
Standex International
Corporation
|
Consolidated Statement of
Operations
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
|
|
June 30,
|
|
|
June 30,
|
(In thousands, except
per share data)
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
188,327
|
|
|
184,739
|
|
$
|
741,048
|
|
$
|
735,339
|
Cost of
sales
|
|
|
114,701
|
|
|
118,183
|
|
|
455,952
|
|
|
465,393
|
Gross profit
|
|
|
73,626
|
|
|
66,556
|
|
|
285,096
|
|
|
269,946
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
|
44,579
|
|
|
41,301
|
|
|
172,335
|
|
|
169,890
|
(Gain) loss on sale of
business
|
|
|
-
|
|
|
-
|
|
|
(62,105)
|
|
|
-
|
Restructuring
costs
|
|
|
501
|
|
|
1,930
|
|
|
3,831
|
|
|
4,399
|
Acquisition related
costs
|
|
|
70
|
|
|
57
|
|
|
557
|
|
|
1,618
|
Other operating
(income) expense, net
|
|
|
-
|
|
|
4,045
|
|
|
(611)
|
|
|
5,745
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
|
28,476
|
|
|
19,223
|
|
|
171,089
|
|
|
88,294
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
1,237
|
|
|
1,390
|
|
|
5,405
|
|
|
5,874
|
Other non-operating
(income) expense, net
|
|
|
40
|
|
|
480
|
|
|
1,735
|
|
|
1,131
|
Total
|
|
|
1,277
|
|
|
1,870
|
|
|
7,140
|
|
|
7,005
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations before income taxes
|
|
|
27,199
|
|
|
17,353
|
|
|
163,949
|
|
|
81,289
|
Provision for income
taxes
|
|
|
7,013
|
|
|
4,130
|
|
|
24,796
|
|
|
19,807
|
Net income from
continuing operations
|
|
|
20,186
|
|
|
13,223
|
|
|
139,153
|
|
|
61,482
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
discontinued operations, net of tax
|
|
|
(17)
|
|
|
46
|
|
|
(161)
|
|
|
(89)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
20,169
|
|
$
|
13,269
|
|
$
|
138,992
|
|
$
|
61,393
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
|
$
|
1.71
|
|
$
|
1.11
|
|
$
|
11.78
|
|
$
|
5.13
|
Income (loss) from
discontinued operations
|
|
|
-
|
|
|
0.01
|
|
|
(0.01)
|
|
|
-
|
Total
|
|
$
|
1.71
|
|
$
|
1.12
|
|
$
|
11.77
|
|
$
|
5.13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
|
$
|
1.68
|
|
$
|
1.10
|
|
$
|
11.59
|
|
$
|
5.07
|
Income (loss) from
discontinued operations
|
|
|
-
|
|
|
-
|
|
|
(0.01)
|
|
|
(0.01)
|
Total
|
|
$
|
1.68
|
|
$
|
1.10
|
|
$
|
11.58
|
|
$
|
5.06
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Shares Outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
11,767
|
|
|
11,876
|
|
|
11,810
|
|
|
11,974
|
Diluted
|
|
|
12,009
|
|
|
12,033
|
|
|
12,009
|
|
|
12,123
|
Standex International
Corporation
|
Condensed Consolidated Balance
Sheets
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
|
June 30,
|
(In
thousands)
|
|
|
2023
|
|
|
2022
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
195,706
|
|
$
|
104,844
|
Accounts
receivable, net
|
|
|
123,440
|
|
|
117,075
|
Inventories
|
|
|
98,537
|
|
|
105,339
|
Prepaid expenses
and other current assets
|
|
|
64,739
|
|
|
45,210
|
Income taxes
receivable
|
|
|
831
|
|
|
6,530
|
Total current assets
|
|
|
483,253
|
|
|
378,998
|
|
|
|
|
|
|
|
Property, plant,
equipment, net
|
|
|
130,937
|
|
|
128,584
|
Intangible assets,
net
|
|
|
75,651
|
|
|
85,770
|
Goodwill
|
|
|
264,821
|
|
|
267,906
|
Deferred tax
asset
|
|
|
14,602
|
|
|
8,186
|
Operating lease
right-of-use asset
|
|
|
33,273
|
|
|
39,119
|
Other non-current
assets
|
|
|
22,392
|
|
|
25,876
|
Total non-current assets
|
|
|
541,676
|
|
|
555,441
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
1,024,929
|
|
$
|
934,439
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
68,601
|
|
$
|
74,520
|
Accrued
liabilities
|
|
|
62,031
|
|
|
67,773
|
Income taxes
payable
|
|
|
10,335
|
|
|
8,475
|
Total current liabilities
|
|
|
140,967
|
|
|
150,768
|
|
|
|
|
|
|
|
Long-term
debt
|
|
|
173,441
|
|
|
174,830
|
Operating lease
long-term liabilities
|
|
|
25,774
|
|
|
31,357
|
Accrued pension and
other non-current liabilities
|
|
77,298
|
|
|
78,141
|
Total non-current liabilities
|
|
|
276,513
|
|
|
284,328
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
Common
stock
|
|
|
41,976
|
|
|
41,976
|
Additional
paid-in capital
|
|
|
100,555
|
|
|
91,200
|
Retained
earnings
|
|
|
1,027,279
|
|
|
901,421
|
Accumulated
other comprehensive loss
|
|
|
(158,477)
|
|
|
(153,312)
|
Treasury
shares
|
|
|
(403,884)
|
|
|
(381,942)
|
Total stockholders'
equity
|
|
|
607,449
|
|
|
499,343
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
|
$
|
1,024,929
|
|
$
|
934,439
|
Standex International Corporation and
Subsidiaries
|
|
|
|
|
Statements of Consolidated Cash
Flows
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
Year Ended
|
|
|
|
June 30,
|
(In
thousands)
|
|
|
2023
|
|
|
2022
|
|
|
|
|
|
|
|
Cash Flows from Operating
Activities
|
|
|
|
|
|
|
Net income
|
|
$
|
138,992
|
|
$
|
61,393
|
Income (loss) from
discontinued operations
|
|
|
(161)
|
|
|
(89)
|
Income from continuing
operations
|
|
|
139,153
|
|
|
61,482
|
|
|
|
|
|
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
|
|
28,474
|
|
|
29,697
|
Stock-based
compensation
|
|
|
11,710
|
|
|
11,169
|
Non-cash portion of
restructuring charge
|
|
|
(444)
|
|
|
1,691
|
(Gain) loss on sale of
business
|
|
|
(62,105)
|
|
|
-
|
Contributions to
defined benefit plans
|
|
|
(451)
|
|
|
(209)
|
Net changes in
operating assets and liabilities
|
|
|
(25,569)
|
|
|
(25,693)
|
Net cash provided by
operating activities - continuing operations
|
|
|
90,768
|
|
|
78,137
|
Net cash provided by
(used in) operating activities - discontinued operations
|
|
|
33
|
|
|
(421)
|
Net cash provided by
(used in) operating activities
|
|
|
90,801
|
|
|
77,716
|
Cash Flows from Investing
Activities
|
|
|
|
|
|
|
Expenditures for property, plant and equipment
|
|
|
(24,270)
|
|
|
(23,891)
|
Expenditures for acquisitions, net of cash acquired
|
|
|
-
|
|
|
(12,978)
|
Proceeds from the sale of business
|
|
|
67,023
|
|
|
-
|
Other investing activities
|
|
|
(1,190)
|
|
|
5,825
|
Net cash provided by
(used in) investing activities
|
|
|
41,563
|
|
|
(31,044)
|
Cash Flows from Financing
Activities
|
|
|
|
|
|
|
Proceeds from borrowings
|
|
|
224,500
|
|
|
|
Payments of debt
|
|
|
(226,200)
|
|
|
(25,000)
|
Contingent consideration payment
|
|
|
(1,167)
|
|
|
(2,167)
|
Activity under share-based payment plans
|
|
|
1,341
|
|
|
1,415
|
Purchase of treasury stock
|
|
|
(25,527)
|
|
|
(31,425)
|
Cash
dividends paid
|
|
|
(12,985)
|
|
|
(12,249)
|
Net cash provided by
(used in) financing activities
|
|
|
(40,038)
|
|
|
(69,426)
|
|
|
|
|
|
|
|
Effect of exchange rate
changes on cash
|
|
|
(1,464)
|
|
|
(8,769)
|
|
|
|
|
|
|
|
Net changes in cash and
cash equivalents
|
|
|
90,862
|
|
|
(31,523)
|
Cash and cash
equivalents at beginning of year
|
|
|
104,844
|
|
|
136,367
|
Cash and cash
equivalents at end of period
|
|
$
|
195,706
|
|
$
|
104,844
|
Standex International
Corporation
|
Selected Segment Data
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
|
|
June 30,
|
|
|
June 30,
|
(In
thousands)
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
Net Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
Electronics
|
|
$
|
79,906
|
|
$
|
71,939
|
|
$
|
305,872
|
|
$
|
304,290
|
Engraving
|
|
|
42,445
|
|
|
37,218
|
|
|
152,067
|
|
|
146,255
|
Scientific
|
|
|
18,278
|
|
|
18,771
|
|
|
74,924
|
|
|
83,850
|
Engineering
Technologies
|
|
|
21,835
|
|
|
21,559
|
|
|
81,079
|
|
|
78,117
|
Specialty
Solutions
|
|
|
25,863
|
|
|
35,252
|
|
|
127,106
|
|
|
122,827
|
Total
|
|
$
|
188,327
|
|
$
|
184,739
|
|
$
|
741,048
|
|
$
|
735,339
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations
|
|
|
|
|
|
|
|
|
|
|
|
|
Electronics
|
|
$
|
16,819
|
|
$
|
15,804
|
|
$
|
68,979
|
|
$
|
70,428
|
Engraving
|
|
|
7,882
|
|
|
6,019
|
|
|
25,462
|
|
|
21,825
|
Scientific
|
|
|
4,660
|
|
|
3,708
|
|
|
17,109
|
|
|
17,861
|
Engineering
Technologies
|
|
|
3,093
|
|
|
3,236
|
|
|
11,050
|
|
|
8,776
|
Specialty
Solutions
|
|
|
6,424
|
|
|
5,394
|
|
|
25,368
|
|
|
15,579
|
Restructuring
|
|
|
(501)
|
|
|
(1,930)
|
|
|
(3,831)
|
|
|
(4,399)
|
(Gain) loss on sale of
business
|
|
|
-
|
|
|
-
|
|
|
62,105
|
|
|
-
|
Acquisition related
costs
|
|
|
(70)
|
|
|
(57)
|
|
|
(557)
|
|
|
(1,618)
|
Corporate
|
|
|
(9,831)
|
|
|
(8,906)
|
|
|
(35,207)
|
|
|
(34,413)
|
Other operating income
(expense), net
|
|
|
-
|
|
|
(4,045)
|
|
|
611
|
|
|
(5,745)
|
Total
|
|
$
|
28,476
|
|
$
|
19,223
|
|
$
|
171,089
|
|
$
|
88,294
|
Standex International
Corporation
|
|
|
Reconciliation of GAAP to Non-GAAP Financial
Measures
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
Year Ended
|
|
|
|
|
|
|
June 30,
|
|
|
|
|
June 30,
|
|
|
(In thousands, except
percentages)
|
|
|
2023
|
|
|
2022
|
|
%
Change
|
|
|
2023
|
|
|
2022
|
|
%
Change
|
Adjusted income from operations and adjusted net
income from continuing operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
|
$
|
188,327
|
|
$
|
184,739
|
|
1.9 %
|
|
$
|
741,048
|
|
$
|
735,339
|
|
0.8 %
|
Income from operations, as
reported
|
|
$
|
28,476
|
|
$
|
19,223
|
|
48.1 %
|
|
$
|
171,089
|
|
$
|
88,294
|
|
93.8 %
|
|
Income from operations
margin
|
|
|
15.1 %
|
|
|
10.4 %
|
|
|
|
|
23.1 %
|
|
|
12.0 %
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
charges
|
|
|
501
|
|
|
1,930
|
|
|
|
|
3,831
|
|
|
4,399
|
|
|
|
Acquisition-related
costs
|
|
|
70
|
|
|
57
|
|
|
|
|
557
|
|
|
1,618
|
|
|
|
Litigation (settlement
refund) charge
|
|
|
-
|
|
|
4,045
|
|
|
|
|
(882)
|
|
|
5,745
|
|
|
|
(Gain) loss on sale of
business
|
|
|
-
|
|
|
-
|
|
|
|
|
(62,105)
|
|
|
-
|
|
|
|
Environmental
remediation
|
|
|
-
|
|
|
-
|
|
|
|
|
271
|
|
|
-
|
|
|
|
Property insurance
deductible
|
|
|
-
|
|
|
-
|
|
|
|
|
-
|
|
|
-
|
|
|
|
Purchase accounting
expenses
|
|
|
-
|
|
|
404
|
|
|
|
|
-
|
|
|
435
|
|
|
Adjusted income from operations
|
|
$
|
29,047
|
|
$
|
25,659
|
|
13.2 %
|
|
$
|
112,761
|
|
$
|
100,491
|
|
12.2 %
|
|
Adjusted income from
operations margin
|
|
|
15.4 %
|
|
|
13.9 %
|
|
|
|
|
15.2 %
|
|
|
13.7 %
|
|
|
|
Interest and other
income (expense), net
|
|
|
(1,277)
|
|
|
(1,870)
|
|
|
|
|
(7,140)
|
|
|
(7,005)
|
|
|
|
Life insurance
benefit
|
|
|
-
|
|
|
-
|
|
|
|
|
-
|
|
|
-
|
|
|
|
Provision for income
taxes
|
|
|
(7,013)
|
|
|
(4,130)
|
|
|
|
|
(24,796)
|
|
|
(19,807)
|
|
|
|
Discrete and other tax
items
|
|
|
-
|
|
|
397
|
|
|
|
|
100
|
|
|
397
|
|
|
|
Tax impact of above
adjustments
|
|
|
416
|
|
|
(1,429)
|
|
|
|
|
(353)
|
|
|
(2,919)
|
|
|
Net income from continuing operations, as
adjusted
|
|
$
|
21,173
|
|
$
|
18,627
|
|
13.7 %
|
|
$
|
80,572
|
|
$
|
71,157
|
|
13.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA and Adjusted EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) from continuing operations, as
reported
|
|
$
|
20,186
|
|
$
|
13,223
|
|
52.7 %
|
|
$
|
139,153
|
|
$
|
61,482
|
|
|
|
Net income from
continuing operations margin
|
|
|
10.7 %
|
|
|
7.2 %
|
|
|
|
|
18.8 %
|
|
|
8.4 %
|
|
|
Add back:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
|
7,013
|
|
|
4,130
|
|
|
|
|
24,796
|
|
|
19,807
|
|
|
|
Interest
expense
|
|
|
1,237
|
|
|
1,390
|
|
|
|
|
5,405
|
|
|
5,874
|
|
|
|
Depreciation and
amortization
|
|
|
7,200
|
|
|
7,286
|
|
|
|
|
28,474
|
|
|
29,697
|
|
|
EBITDA
|
|
$
|
35,636
|
|
$
|
26,029
|
|
36.9 %
|
|
$
|
197,828
|
|
$
|
116,860
|
|
69.3 %
|
|
EBITDA
Margin
|
|
|
18.9 %
|
|
|
14.1 %
|
|
|
|
|
26.7 %
|
|
|
15.9 %
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
charges
|
|
|
501
|
|
|
1,930
|
|
|
|
|
3,831
|
|
|
4,399
|
|
|
|
Acquisition-related
costs
|
|
|
70
|
|
|
57
|
|
|
|
|
557
|
|
|
1,618
|
|
|
|
Litigation (settlement
refund) charge
|
|
|
-
|
|
|
4,045
|
|
|
|
|
(882)
|
|
|
5,745
|
|
|
|
(Gain) loss on sale of
business
|
|
|
-
|
|
|
-
|
|
|
|
|
(62,105)
|
|
|
-
|
|
|
|
Environmental
remediation
|
|
|
-
|
|
|
-
|
|
|
|
|
271
|
|
|
-
|
|
|
|
Purchase accounting
expenses
|
|
|
-
|
|
|
404
|
|
|
|
|
-
|
|
|
435
|
|
|
Adjusted EBITDA
|
|
$
|
36,207
|
|
$
|
32,465
|
|
11.5 %
|
|
$
|
139,500
|
|
$
|
129,057
|
|
8.1 %
|
|
Adjusted EBITDA
Margin
|
|
|
19.2 %
|
|
|
17.6 %
|
|
|
|
|
18.8 %
|
|
|
17.6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free operating cash flow:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities -
continuing operations, as reported
|
|
$
|
40,413
|
|
$
|
29,510
|
|
|
|
$
|
90,768
|
|
$
|
78,137
|
|
|
Less: Capital
expenditures
|
|
|
(7,622)
|
|
|
(10,753)
|
|
|
|
|
(24,270)
|
|
|
(23,891)
|
|
|
Free cash flow from continuing
operations
|
|
$
|
32,791
|
|
$
|
18,757
|
|
|
|
$
|
66,498
|
|
$
|
54,246
|
|
|
Standex International
Corporation
|
Reconciliation of GAAP to Non-GAAP Financial
Measures
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
Year Ended
|
|
|
Adjusted earnings per share from continuing
operations
|
|
|
June 30,
|
|
|
|
|
June 30,
|
|
|
|
|
2023
|
|
|
2022
|
|
%
Change
|
|
|
2023
|
|
|
2022
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share from continuing
operations, as reported
|
|
$
|
1.68
|
|
$
|
1.10
|
|
52.8 %
|
|
$
|
11.59
|
|
$
|
5.07
|
|
128.6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
charges
|
|
|
0.03
|
|
|
0.12
|
|
|
|
|
0.24
|
|
|
0.28
|
|
|
|
Acquisition-related
costs
|
|
|
-
|
|
|
-
|
|
|
|
|
0.03
|
|
|
0.10
|
|
|
|
Litigation (settlement
refund) charge
|
|
|
-
|
|
|
0.26
|
|
|
|
|
(0.06)
|
|
|
0.36
|
|
|
|
(Gain) loss on sale of
business
|
|
|
0.05
|
|
|
-
|
|
|
|
|
(5.13)
|
|
|
-
|
|
|
|
Environmental
remediation
|
|
|
-
|
|
|
-
|
|
|
|
|
0.02
|
|
|
-
|
|
|
|
Discrete tax
items
|
|
|
-
|
|
|
0.03
|
|
|
|
|
0.01
|
|
|
0.03
|
|
|
|
Purchase accounting
expenses
|
|
|
-
|
|
|
0.03
|
|
|
|
|
-
|
|
|
0.03
|
|
|
Diluted earnings per share from continuing
operations, as adjusted
|
|
$
|
1.76
|
|
$
|
1.54
|
|
14.3 %
|
|
$
|
6.70
|
|
$
|
5.87
|
|
14.1 %
|
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SOURCE Standex International Corporation