- Record Adjusted Operating Margin of 15.2%, up 140 bps
year-on-year; Eighth Consecutive Quarter of Record Level Adjusted
Operating Margin
- GAAP Operating Margin of 48.0% Driven by Gain on Procon
Divestiture
- Fast Growth Market Sales Increased ~40% year-on-year to
~$23 million; Fast Growth Market
Sales in Fiscal 2023 Expected to Increase ~50% to ~$85 million
- Expect Organic Revenue Growth in Fiscal Year 2023 from Four
of Five Business Segments
- Generated $17.6 million in
Free Cash Flow
SALEM,
N.H., May 4, 2023 /PRNewswire/ -- Standex
International Corporation (NYSE: SXI) today reported financial
results for the third quarter of fiscal year 2023 ended
March 31, 2023.
Summary Financial
Results - Total Standex
|
|
|
|
|
|
($M except EPS and
Dividends)
|
3Q23
|
3Q22
|
2Q23
|
Y/Y
|
Q/Q
|
Net Sales
|
$184.3
|
$189.3
|
$187.8
|
-2.6 %
|
-1.8 %
|
Operating Income -
GAAP
|
$88.5
|
$24.5
|
$27.8
|
261.7 %
|
218.3 %
|
Operating Income -
Adjusted
|
$27.9
|
$26.1
|
$28.6
|
7.0 %
|
-2.3 %
|
Operating Margin % -
GAAP
|
48.0 %
|
12.9 %
|
14.8 %
|
+ 3510 bps
|
+ 3320 bps
|
Operating Margin % -
Adjusted
|
15.2 %
|
13.8 %
|
15.2 %
|
+ 140 bps
|
+ 0 bps
|
Net Income from
Continuing Ops - GAAP
|
$80.6
|
$17.4
|
$20.1
|
362.8 %
|
301.2 %
|
Net Income from
Continuing Ops - Adjusted
|
$19.6
|
$18.7
|
$20.7
|
5.2 %
|
-5.2 %
|
|
|
|
|
|
|
EBITDA
|
$95.1
|
$31.3
|
$34.8
|
203.6 %
|
172.9 %
|
EBITDA
margin
|
51.6 %
|
16.5 %
|
18.5 %
|
+ 3510
bps
|
+ 3310 bps
|
Adjusted
EBITDA
|
$34.5
|
$33.0
|
$35.6
|
4.7 %
|
-3.2 %
|
Adjusted EBITDA
margin
|
18.7 %
|
17.4 %
|
19.0 %
|
+ 130 bps
|
-30
bps
|
|
|
|
|
|
|
Diluted EPS -
GAAP
|
$6.77
|
$1.43
|
$1.69
|
370.1 %
|
300.6 %
|
Diluted EPS -
Adjusted
|
$1.65
|
$1.54
|
$1.74
|
7.1 %
|
-5.2 %
|
Dividends per
Share
|
$0.28
|
$0.26
|
$0.28
|
7.7 %
|
0.0 %
|
|
|
|
|
|
|
Free Cash
Flow
|
$17.6
|
$8.5
|
$24.0
|
107.3 %
|
-26.6 %
|
Net Debt to
EBITDA
|
0.0x
|
0.5x
|
0.6x
|
NM
|
NM
|
Third Quarter Fiscal 2023 Results
Commenting on the quarter's results, President and Chief
Executive Officer David Dunbar said, "Our third fiscal
quarter results demonstrate our businesses' ability to perform well
in an uncertain macro environment. On the top line, we delivered
1.5% 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 40% year
on year to $23 million in fiscal
third quarter 2023, and we anticipate our fast growth market sales
for fiscal year 2023 to increase approximately 50% versus prior
year. We achieved record gross margin of 38.5%, up 240 bps year on
year and record consolidated adjusted operating margin of 15.2% in
fiscal third quarter 2023 - our eighth consecutive quarter of
record level adjusted operating margin performance. This margin
growth reflects the benefits of our customer intimacy model and
solid execution of our pricing and productivity initiatives.
"We remain confident in our ability to navigate this environment
and continue to deliver improved results. Our regional presence,
strong customer relationships and our disciplined approach to
pricing and productivity have protected us from the challenges
presented by supply chain challenges and inflation. We continue to
benefit from secular trends in our fast growth markets, which are
still in the early stages of evolution. As a result, we expect all
our segments, except Scientific, to contribute to organic growth
for the fiscal year."
"In addition, Standex's consistent cash generation and
substantial financial flexibility continue to position us well to
pursue an active pipeline of organic and inorganic growth
opportunities. Our free cash flow conversion remained healthy at
near 100% in the fiscal third quarter. We have approximately
$344 million in available
liquidity."
Outlook
In fiscal fourth quarter 2023, on a sequential
basis, the Company expects similar revenue with organic sales
growth offsetting the impact of the Procon divestiture. The Company
expects similar to slightly higher adjusted operating margin. On a
year-on-year basis, the Company expects mid to high single digit
organic growth offset by the Procon divestiture and significant
adjusted operating margin improvement due to continued realization
of pricing and productivity initiatives.
Third Quarter Segment Operating Performance
Electronics (42% of sales; 47% of segment operating
income)
|
3Q23
|
3Q22
|
%
Change
|
Electronics
($M)
|
|
|
|
Revenue
|
78.2
|
79.9
|
-2.1 %
|
GAAP Operating
Income
|
17.0
|
19.2
|
-11.2 %
|
GAAP Operating Margin
%
|
21.8
|
24.0
|
|
Adjusted Operating
Income*
|
17.0
|
19.2
|
-11.3 %
|
Adjusted Operating
Margin %*
|
21.8
|
24.1
|
|
|
*3Q22 excludes less
than $0.1M of purchase accounting expenses associated with Sensor
Solutions
|
Revenue decreased approximately $1.7
million or 2.1% year-on-year reflecting organic growth
of 1.3%, more than offset by a 3.4% impact from foreign exchange.
The segment is seeing positive trends in end markets like
industrial applications, power management, renewable energy
technologies, and EV-related applications.
Electronics segment backlog realizable in under one year of
approximately $145 million decreased
4% year-on-year. The segment had a book to bill ratio of 0.92 at
the end of the fiscal third quarter.
Adjusted operating income decreased approximately $2.2 million or 11.3% year-on-year due to lower
sales and product mix, partially offset by pricing and productivity
initiatives.
In fiscal fourth quarter 2023, on a sequential basis, the
Company expects similar revenue and operating margin primarily due
to increased sales into fast growth markets, offset by a slower
recovery in China and Europe.
Engraving (20% of sales; 15% of segment operating
income)
|
3Q23
|
3Q22
|
%
Change
|
Engraving
($M)
|
|
|
|
Revenue
|
36.9
|
37.2
|
-0.8 %
|
Operating
Income
|
5.4
|
5.7
|
-6.5 %
|
Operating Margin
%
|
14.5
|
15.4
|
|
Revenue decreased approximately $0.3
million or 0.8% year-on-year reflecting 3.9% organic growth,
which was more than offset by a 4.7% impact from foreign exchange.
Operating income decreased $0.4
million or 6.5% year-on-year, primarily driven by
unfavorable regional mix. The segment had a book to bill ratio of
1.12, indicating continued end market stability.
In fiscal fourth quarter 2023, on a sequential basis, the
Company expects similar to slightly higher revenue and operating
margin.
Scientific (10% of sales; 13% of segment operating
income)
|
3Q23
|
3Q22
|
%
Change
|
Scientific
($M)
|
|
|
|
Revenue
|
18.9
|
18.9
|
-0.1 %
|
Operating
Income
|
4.6
|
4.2
|
9.8 %
|
Operating Margin
%
|
24.1
|
22.0
|
|
Revenue remained flat at $18.9
million reflecting higher sales into research and academic
end markets, offset by lower demand for COVID vaccine storage
units. Operating income increased approximately $0.4 million or 9.8% year-on-year due to
price and productivity actions and lower freight cost.
In fiscal fourth quarter 2023, on a sequential basis, the
Company expects similar revenue and slightly higher operating
margin.
Engineering Technologies (10% of sales; 7% of segment
operating income)
|
3Q23
|
3Q22
|
%
Change
|
Engineering
Technologies ($M)
|
|
|
|
Revenue
|
18.1
|
20.9
|
-13.6 %
|
Operating
Income
|
2.4
|
2.3
|
1.0 %
|
Operating Margin
%
|
13.0
|
11.1
|
|
Revenue decreased approximately $2.8
million or 13.6% year-on-year reflecting lower volume due to
the timing of projects, partially offset by higher revenue from new
product development. Operating income remained flat at
approximately $2.4 million reflecting
the impact of productivity and efficiency initiatives offsetting
the lower volume.
In fiscal fourth quarter 2023, on a sequential basis, the
Company expects a moderate increase in revenue and operating
margin, reflecting more favorable timing of projects in aviation
and space end markets.
Specialty Solutions (18% of sales; 18% of segment
operating income)
|
3Q23
|
3Q22
|
%
Change
|
Specialty Solutions
($M)
|
|
|
|
Revenue
|
32.3
|
32.4
|
-0.3 %
|
Operating
Income
|
7.2
|
3.6
|
96.9 %
|
Operating Margin
%
|
22.2
|
11.2
|
|
Specialty Solutions revenue remained relatively flat at
$32.3 million, reflecting robust
organic growth in the Display Merchandising business, offset by an
organic decline in the Hydraulics business and the Procon
divestiture. Operating income increased approximately $3.5 million or 96.9% year-on-year driven by
higher sales in the Display Merchandising business and realization
of productivity initiatives in the Hydraulics business.
In fiscal fourth quarter 2023, on a sequential basis, the
Company expects a moderate to significant decline in revenue
primarily due to the Procon divestiture and lower sales in the
Display Merchandising business and slightly lower operating
margin.
Capital Allocation
- Share Repurchase: During the fiscal third quarter, the
Company repurchased approximately 42,500 shares for $5.0 million. There was $72.1
million remaining on the Company's current share repurchase
authorization at the end of the fiscal third quarter
2023.
- Capital Expenditures: In fiscal third quarter 2023,
Standex's capital expenditures were $5.6
million compared to $3.4
million in the fiscal third quarter of 2022. The Company
expects fiscal year 2023 capital expenditures between $25 million and $30
million with key investments focused on growth initiatives
and capacity expansion. Capital expenditures were $23.9 million in fiscal 2022.
- Dividend: On April 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 May 25, 2023, to shareholders of record on
May 10, 2023.
Balance Sheet and Cash Flow Highlights
- Net Debt: Standex had net (cash) debt of
($2.0) million on March 31, 2023, compared to $70.0 million at the end of fiscal 2022 and
$65.8 million at the end of fiscal
third quarter 2022. Net debt for the third quarter of 2023
consisted primarily of long-term debt of $173.3 million and cash and equivalents of
$175.3 million.
- Cash Flow: Net cash provided by continuing operating
activities for the three months ended March
31, 2023, was $23.3 million compared to
$11.9 million in the prior
year's quarter. Free cash flow after capital expenditures
was $17.6 million compared to free cash flow after
capital expenditures of $8.5 million in the fiscal third
quarter of 2022.
Conference Call Details
Standex will host a conference call for investors tomorrow,
May 5, 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 May 5, 2024. To listen to the
teleconference playback, please dial in the U.S. (877)
344-7529 or (412) 317-0088 internationally; the passcode is
7047258. The audio playback via phone will be available through
May 12, 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, Brazil, 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
|
|
|
Nine Months
Ended
|
|
|
|
March
31,
|
|
|
March
31,
|
(In thousands, except
per share data)
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
184,332
|
|
|
189,281
|
|
$
|
552,721
|
|
$
|
550,600
|
Cost of
sales
|
|
|
113,435
|
|
|
120,900
|
|
|
341,251
|
|
|
347,210
|
Gross profit
|
|
|
70,897
|
|
|
68,381
|
|
|
211,470
|
|
|
203,390
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
|
42,954
|
|
|
42,306
|
|
|
127,756
|
|
|
128,589
|
(Gain) loss on sale of
business
|
|
|
(62,105)
|
|
|
-
|
|
|
(62,105)
|
|
|
-
|
Restructuring
costs
|
|
|
2,237
|
|
|
1,186
|
|
|
3,330
|
|
|
2,469
|
Acquisition related
costs
|
|
|
21
|
|
|
419
|
|
|
487
|
|
|
1,561
|
Other operating
(income) expense, net
|
|
|
(727)
|
|
|
-
|
|
|
(611)
|
|
|
1,700
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
|
88,517
|
|
|
24,470
|
|
|
142,613
|
|
|
69,071
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
1,415
|
|
|
1,238
|
|
|
4,168
|
|
|
4,484
|
Other non-operating
(income) expense, net
|
|
|
747
|
|
|
340
|
|
|
1,695
|
|
|
651
|
Total
|
|
|
2,162
|
|
|
1,578
|
|
|
5,863
|
|
|
5,135
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations before income taxes
|
|
|
86,355
|
|
|
22,892
|
|
|
136,750
|
|
|
63,936
|
Provision for income
taxes
|
|
|
5,788
|
|
|
5,484
|
|
|
17,783
|
|
|
15,677
|
Net income from
continuing operations
|
|
|
80,567
|
|
|
17,408
|
|
|
118,967
|
|
|
48,259
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
discontinued operations, net of tax
|
|
|
(57)
|
|
|
(86)
|
|
|
(144)
|
|
|
(135)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
80,510
|
|
$
|
17,322
|
|
$
|
118,823
|
|
$
|
48,124
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
|
$
|
6.82
|
|
$
|
1.45
|
|
$
|
10.06
|
|
$
|
4.02
|
Income (loss) from
discontinued operations
|
|
|
-
|
|
|
(0.01)
|
|
|
(0.01)
|
|
|
(0.01)
|
Total
|
|
$
|
6.82
|
|
$
|
1.44
|
|
$
|
10.05
|
|
$
|
4.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
|
$
|
6.77
|
|
$
|
1.44
|
|
$
|
9.98
|
|
$
|
3.98
|
Income (loss) from
discontinued operations
|
|
|
-
|
|
|
(0.01)
|
|
|
(0.01)
|
|
|
(0.01)
|
Total
|
|
$
|
6.77
|
|
$
|
1.43
|
|
$
|
9.97
|
|
$
|
3.97
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Shares
Outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
11,811
|
|
|
11,982
|
|
|
11,825
|
|
|
12,009
|
Diluted
|
|
|
11,895
|
|
|
12,089
|
|
|
11,917
|
|
|
12,121
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Standex
International Corporation
|
Condensed
Consolidated Balance Sheets
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
|
June
30,
|
(In
thousands)
|
|
|
2023
|
|
|
2022
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
175,284
|
|
$
|
104,844
|
Accounts
receivable, net
|
|
|
121,161
|
|
|
117,075
|
Inventories
|
|
|
104,516
|
|
|
105,339
|
Prepaid expenses
and other current assets
|
|
|
56,611
|
|
|
45,210
|
Income taxes
receivable
|
|
|
3,203
|
|
|
6,530
|
Total current assets
|
|
|
460,775
|
|
|
378,998
|
|
|
|
|
|
|
|
Property, plant,
equipment, net
|
|
|
130,638
|
|
|
128,584
|
Intangible assets,
net
|
|
|
79,562
|
|
|
85,770
|
Goodwill
|
|
|
269,463
|
|
|
267,906
|
Deferred tax
asset
|
|
|
9,213
|
|
|
8,186
|
Operating lease
right-of-use asset
|
|
|
36,069
|
|
|
39,119
|
Other non-current
assets
|
|
|
29,368
|
|
|
25,876
|
Total non-current assets
|
|
|
554,313
|
|
|
555,441
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
1,015,088
|
|
$
|
934,439
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
67,512
|
|
$
|
74,520
|
Accrued
liabilities
|
|
|
55,704
|
|
|
67,773
|
Income taxes
payable
|
|
|
7,371
|
|
|
8,475
|
Total current liabilities
|
|
|
130,587
|
|
|
150,768
|
|
|
|
|
|
|
|
Long-term
debt
|
|
|
173,333
|
|
|
174,830
|
Operating lease
long-term liabilities
|
|
|
28,463
|
|
|
31,357
|
Accrued pension and
other non-current liabilities
|
|
|
77,155
|
|
|
78,141
|
Total non-current liabilities
|
|
|
278,951
|
|
|
284,328
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
Common
stock
|
|
|
41,976
|
|
|
41,976
|
Additional
paid-in capital
|
|
|
97,294
|
|
|
91,200
|
Retained
earnings
|
|
|
1,010,395
|
|
|
901,421
|
Accumulated
other comprehensive loss
|
|
|
(147,175)
|
|
|
(153,312)
|
Treasury
shares
|
|
|
(396,940)
|
|
|
(381,942)
|
Total stockholders'
equity
|
|
|
605,550
|
|
|
499,343
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
|
$
|
1,015,088
|
|
$
|
934,439
|
|
|
|
|
|
|
|
Standex
International Corporation and Subsidiaries
|
|
|
|
|
Statements of
Consolidated Cash Flows
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
|
March
31,
|
(In
thousands)
|
|
|
2023
|
|
|
2022
|
|
|
|
|
|
|
|
Cash Flows from
Operating Activities
|
|
|
|
|
|
|
Net income
|
|
$
|
118,823
|
|
$
|
48,124
|
Income (loss) from
discontinued operations
|
|
|
(144)
|
|
|
(135)
|
Income from continuing
operations
|
|
|
118,967
|
|
|
48,259
|
|
|
|
|
|
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
21,275
|
|
|
22,411
|
Stock-based
compensation
|
|
|
8,508
|
|
|
8,213
|
Non-cash portion of
restructuring charge
|
|
|
129
|
|
|
595
|
(Gain) loss on sale of
business
|
|
|
(62,105)
|
|
|
-
|
Contributions to
defined benefit plans
|
|
|
(151)
|
|
|
(157)
|
Net changes in
operating assets and liabilities
|
|
|
(36,268)
|
|
|
(30,693)
|
Net cash provided by
operating activities - continuing operations
|
|
|
50,355
|
|
|
48,628
|
Net cash provided by
(used in) operating activities - discontinued operations
|
|
|
(37)
|
|
|
(364)
|
Net cash provided by
(used in) operating activities
|
|
|
50,318
|
|
|
36,335
|
Cash Flows from
Investing Activities
|
|
|
|
|
|
|
Expenditures for property, plant and equipment
|
|
|
(16,648)
|
|
|
(13,138)
|
Expenditures for acquisitions, net of cash acquired
|
|
|
-
|
|
|
(9,902)
|
Proceeds from the sale of business
|
|
|
67,023
|
|
|
-
|
Other investing activities
|
|
|
(1,321)
|
|
|
5,718
|
Net cash (used in)
investing activities
|
|
|
49,054
|
|
|
(17,322)
|
Cash Flows from
Financing Activities
|
|
|
|
|
|
|
Proceeds from borrowings
|
|
|
224,500
|
|
|
-
|
Payments of debt
|
|
|
(226,200)
|
|
|
-
|
Contingent consideration payment
|
|
|
(1,167)
|
|
|
(1,167)
|
Activity under share-based payment plans
|
|
|
1,170
|
|
|
1,318
|
Purchase of treasury stock
|
|
|
(18,582)
|
|
|
(21,420)
|
Cash
dividends paid
|
|
|
(9,699)
|
|
|
(9,148)
|
Other financing activities
|
|
|
|
|
|
|
Net cash provided by
(used in) financing activities from continuing
operations
|
|
|
(29,978)
|
|
|
(30,417)
|
Net cash provided by
financing activities from discontinued operations
|
|
|
-
|
|
|
-
|
Net cash provided by
(used in) financing activities
|
|
|
(29,978)
|
|
|
(30,417)
|
|
|
|
|
|
|
|
Effect of exchange rate
changes on cash
|
|
|
1,046
|
|
|
(2,979)
|
|
|
|
|
|
|
|
Net changes in cash and
cash equivalents
|
|
|
70,440
|
|
|
(2,465)
|
Cash and cash
equivalents at beginning of year
|
|
|
104,844
|
|
|
136,367
|
Cash and cash
equivalents at end of period
|
|
$
|
175,284
|
|
$
|
133,902
|
|
|
|
|
|
|
|
Standex
International Corporation
|
Selected Segment
Data
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
|
March
31,
|
|
|
March
31,
|
(In
thousands)
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
Net
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
Electronics
|
|
$
|
78,211
|
|
$
|
79,889
|
|
$
|
225,966
|
|
$
|
232,351
|
Engraving
|
|
|
36,909
|
|
|
37,223
|
|
|
109,622
|
|
|
109,037
|
Scientific
|
|
|
18,898
|
|
|
18,914
|
|
|
56,646
|
|
|
65,079
|
Engineering
Technologies
|
|
|
18,052
|
|
|
20,890
|
|
|
59,244
|
|
|
56,558
|
Specialty
Solutions
|
|
|
32,262
|
|
|
32,365
|
|
|
101,243
|
|
|
87,575
|
Total
|
|
$
|
184,332
|
|
$
|
189,281
|
|
$
|
552,721
|
|
$
|
550,600
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
|
|
|
|
|
|
|
|
|
|
|
Electronics
|
|
$
|
17,047
|
|
$
|
19,194
|
|
$
|
52,160
|
|
$
|
54,624
|
Engraving
|
|
|
5,353
|
|
|
5,728
|
|
|
17,580
|
|
|
15,806
|
Scientific
|
|
|
4,561
|
|
|
4,155
|
|
|
12,449
|
|
|
14,153
|
Engineering
Technologies
|
|
|
2,351
|
|
|
2,327
|
|
|
7,957
|
|
|
5,540
|
Specialty
Solutions
|
|
|
7,151
|
|
|
3,632
|
|
|
18,944
|
|
|
10,185
|
Restructuring
|
|
|
(2,237)
|
|
|
(1,186)
|
|
|
(3,330)
|
|
|
(2,469)
|
(Gain) loss on sale of
business
|
|
|
62,105
|
|
|
-
|
|
|
62,105
|
|
|
-
|
Acquisition related
costs
|
|
|
(21)
|
|
|
(419)
|
|
|
(487)
|
|
|
(1,561)
|
Corporate
|
|
|
(8,520)
|
|
|
(8,961)
|
|
|
(25,376)
|
|
|
(25,507)
|
Other operating income
(expense), net
|
|
|
727
|
|
|
-
|
|
|
611
|
|
|
(1,700)
|
Total
|
|
$
|
88,517
|
|
$
|
24,470
|
|
$
|
142,613
|
|
$
|
69,071
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Standex
International Corporation
|
|
|
Reconciliation of
GAAP to Non-GAAP Financial Measures
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
Nine Months
Ended
|
|
|
|
|
|
|
March
31,
|
|
|
|
|
March
31,
|
|
|
(In thousands, except
percentages)
|
|
|
2023
|
|
|
2022
|
|
%
Change
|
|
|
2023
|
|
|
2022
|
|
%
Change
|
Adjusted income from
operations and adjusted net
income from continuing operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales
|
|
$
|
184,332
|
|
$
|
189,281
|
|
-2.6 %
|
|
$
|
552,721
|
|
$
|
550,600
|
|
0.4 %
|
Income from
operations, as reported
|
|
$
|
88,517
|
|
$
|
24,470
|
|
261.7 %
|
|
$
|
142,613
|
|
$
|
69,071
|
|
106.5 %
|
|
Income from operations
margin
|
|
|
48.0 %
|
|
|
12.9 %
|
|
|
|
|
25.8 %
|
|
|
12.5 %
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
charges
|
|
|
2,237
|
|
|
1,186
|
|
|
|
|
3,330
|
|
|
2,469
|
|
|
|
Acquisition-related
costs
|
|
|
21
|
|
|
419
|
|
|
|
|
487
|
|
|
1,561
|
|
|
|
Litigation (settlement
refund) charge
|
|
|
(996)
|
|
|
-
|
|
|
|
|
(881)
|
|
|
1,700
|
|
|
|
(Gain) loss on sale of
business
|
|
|
(62,105)
|
|
|
-
|
|
|
|
|
(62,105)
|
|
|
-
|
|
|
|
Environmental
remediation
|
|
|
271
|
|
|
-
|
|
|
|
|
271
|
|
|
-
|
|
|
|
Purchase accounting
expenses
|
|
|
-
|
|
|
31
|
|
|
|
|
-
|
|
|
31
|
|
|
Adjusted income from
operations
|
|
$
|
27,945
|
|
$
|
26,106
|
|
7.0 %
|
|
$
|
83,715
|
|
$
|
74,832
|
|
11.9 %
|
|
Adjusted income from
operations margin
|
|
|
15.2 %
|
|
|
13.8 %
|
|
|
|
|
15.1 %
|
|
|
13.6 %
|
|
|
|
Interest and other
income (expense), net
|
|
|
(2,162)
|
|
|
(1,578)
|
|
|
|
|
(5,863)
|
|
|
(5,135)
|
|
|
|
Provision for income
taxes
|
|
|
(5,788)
|
|
|
(5,484)
|
|
|
|
|
(17,783)
|
|
|
(15,677)
|
|
|
|
Discrete and other tax
items
|
|
|
-
|
|
|
-
|
|
|
|
|
100
|
|
|
-
|
|
|
|
Tax impact of above
adjustments
|
|
|
(370)
|
|
|
(392)
|
|
|
|
|
(769)
|
|
|
(1,413)
|
|
|
Net income from
continuing operations, as adjusted
|
|
$
|
19,625
|
|
$
|
18,652
|
|
5.2 %
|
|
$
|
59,400
|
|
$
|
52,607
|
|
12.9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA and Adjusted
EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
from continuing operations, as reported
|
|
$
|
80,567
|
|
$
|
17,408
|
|
362.8 %
|
|
$
|
118,967
|
|
$
|
48,259
|
|
|
|
Net income from
continuing operations margin
|
|
|
43.7 %
|
|
|
9.2 %
|
|
|
|
|
21.5 %
|
|
|
8.8 %
|
|
|
Add back:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
|
5,788
|
|
|
5,484
|
|
|
|
|
17,783
|
|
|
15,677
|
|
|
|
Interest
expense
|
|
|
1,415
|
|
|
1,238
|
|
|
|
|
4,168
|
|
|
4,484
|
|
|
|
Depreciation and
amortization
|
|
|
7,309
|
|
|
7,189
|
|
|
|
|
21,275
|
|
|
22,411
|
|
|
EBITDA
|
|
$
|
95,079
|
|
$
|
31,319
|
|
203.6 %
|
|
$
|
162,193
|
|
$
|
90,831
|
|
78.6 %
|
|
EBITDA
Margin
|
|
|
51.6 %
|
|
|
16.5 %
|
|
|
|
|
29.3 %
|
|
|
16.5 %
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
charges
|
|
|
2,237
|
|
|
1,186
|
|
|
|
|
3,330
|
|
|
2,469
|
|
|
|
Acquisition-related
costs
|
|
|
21
|
|
|
419
|
|
|
|
|
487
|
|
|
1,561
|
|
|
|
Litigation (settlement
refund) charge
|
|
|
(996)
|
|
|
-
|
|
|
|
|
(881)
|
|
|
1,700
|
|
|
|
(Gain) loss on sale of
business
|
|
|
(62,105)
|
|
|
-
|
|
|
|
|
(62,105)
|
|
|
-
|
|
|
|
Environmental
remediation
|
|
|
271
|
|
|
-
|
|
|
|
|
271
|
|
|
-
|
|
|
|
Purchase accounting
expenses
|
|
|
-
|
|
|
31
|
|
|
|
|
-
|
|
|
31
|
|
|
Adjusted
EBITDA
|
|
$
|
34,507
|
|
$
|
32,955
|
|
4.7 %
|
|
$
|
103,295
|
|
$
|
96,592
|
|
6.9 %
|
|
Adjusted EBITDA
Margin
|
|
|
18.7 %
|
|
|
17.4 %
|
|
|
|
|
18.7 %
|
|
|
17.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free operating cash
flow:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities - continuing operations, as
reported
|
|
$
|
23,265
|
|
$
|
11,929
|
|
|
|
$
|
50,356
|
|
$
|
48,628
|
|
|
Less: Capital
expenditures
|
|
|
(5,620)
|
|
|
(3,417)
|
|
|
|
|
(16,648)
|
|
|
(13,138)
|
|
|
Free cash flow from
continuing operations
|
|
$
|
17,645
|
|
$
|
8,512
|
|
|
|
$
|
33,708
|
|
$
|
35,490
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Standex
International Corporation
|
Reconciliation of
GAAP to Non-GAAP Financial Measures
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
Nine Months
Ended
|
|
|
Adjusted earnings
per share from continuing operations
|
|
|
March
31,
|
|
|
|
|
March
31,
|
|
|
|
|
2023
|
|
|
2022
|
|
%
Change
|
|
|
2023
|
|
|
2022
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share from continuing operations, as reported
|
|
$
|
6.77
|
|
$
|
1.44
|
|
370.1 %
|
|
$
|
9.98
|
|
$
|
3.98
|
|
150.8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
charges
|
|
|
0.14
|
|
|
0.07
|
|
|
|
|
0.21
|
|
|
0.16
|
|
|
|
Acquisition-related
costs
|
|
|
-
|
|
|
0.03
|
|
|
|
|
0.03
|
|
|
0.10
|
|
|
|
Litigation (settlement
refund) charge
|
|
|
(0.06)
|
|
|
-
|
|
|
|
|
(0.06)
|
|
|
0.10
|
|
|
|
(Gain) loss on sale of
business
|
|
|
(5.22)
|
|
|
-
|
|
|
|
|
(5.22)
|
|
|
-
|
|
|
|
Environmental
remediation
|
|
|
0.02
|
|
|
-
|
|
|
|
|
0.02
|
|
|
-
|
|
|
|
Discrete tax
items
|
|
|
-
|
|
|
-
|
|
|
|
|
0.01
|
|
|
-
|
|
|
Diluted earnings per
share from continuing operations, as adjusted
|
|
$
|
1.65
|
|
$
|
1.54
|
|
7.1 %
|
|
$
|
4.97
|
|
$
|
4.34
|
|
14.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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SOURCE Standex International Corporation