- In Q4 FY24, Sales Declined 4.3% with Contributions from Acquisitions and Fast Growth Markets Partially Offsetting Organic Decline; Fast Growth Market Sales Increased ~13% YOY to $27 Million
- Q4 FY24 GAAP Operating Margin of 15.1%; Adjusted Operating Margin of 16.0%, Up 60 bps Sequentially and YOY
- Record Profit and Cash Generation in FY24:
- GAAP Gross Margin of 39.1%; Adjusted Gross Margin of 39.4%, up 90 bps YOY
- GAAP Operating Margin of 14.1%; Adjusted Operating Margin of 15.8%, up 60 bps YOY
- Free Cash Flow Generation of $73 Million
- Continued Investments to Support Growth; R&D Spend Increased $3.3 Million to 2.8% of Sales in FY24
- In FY25, Plan to Release Over a Dozen New Products, At Least One in Every Business, Contributing Over 100 bps of Growth; Fast Growth Market Sales Expected to Grow>20% and Exceed $110 million
- Continued Improvement in General Market Conditions Expected to Lead to Healthier Backdrop for Growth in 2H FY25
SALEM, N.H., Aug. 1, 2024 /PRNewswire/ -- Standex International Corporation (NYSE: SXI) today reported financial results for the fourth quarter of fiscal year 2024 ended June 30, 2024.
Summary Financial Results - Total | |||||
($M except EPS and Dividends) | 4Q24 | 4Q23 | 3Q24 | Y/Y | Q/Q |
Net Sales | $180.2 | $188.3 | $177.3 | -4.3 % | 1.7 % |
Operating Income - GAAP | $27.1 | $28.5 | $21.8 | -4.7 % | 24.3 % |
Operating Income - Adjusted | $28.7 | $29.1 | $27.3 | -1.0 % | 5.1 % |
Operating Margin % - GAAP | 15.1 % | 15.1 % | 12.3 % | 0 bps | + 280 bps |
Operating Margin % - Adjusted | 16.0 % | 15.4 % | 15.4 % | + 60 bps | + 60 bps |
Net Income from Continuing Ops - GAAP | $19.7 | $20.2 | $15.9 | -2.5 % | 23.5 % |
Net Income from Continuing Ops - Adjusted | $20.9 | $21.2 | $20.7 | -1.3 % | 1.0 % |
EBITDA | $33.9 | $35.6 | $28.4 | -4.9 % | 19.3 % |
EBITDA margin | 18.8 % | 18.9 % | 16.0 % | - 10 bps | + 280 bps |
Adjusted EBITDA | $35.5 | $36.2 | $34.5 | -2.0 % | 2.9 % |
Adjusted EBITDA margin | 19.7 % | 19.2 % | 19.5 % | + 50 bps | + 20 bps |
Diluted EPS - GAAP | $1.66 | $1.68 | $1.35 | -1.2 % | 23.0 % |
Diluted EPS - Adjusted | $1.76 | $1.76 | $1.75 | 0.0 % | 0.6 % |
Dividends per Share | $0.30 | $0.28 | $0.30 | 7.1 % | 0.0 % |
Free Cash Flow | $22.2 | $32.8 | $19.3 | -32.3 % | 15.3 % |
Net Debt to EBITDA | 0.0x | -0.2x | 0.0x | NM | NM |
Fourth Quarter Fiscal 2024 Results
Commenting on the quarter's results, President and Chief Executive Officer David Dunbar said, "We concluded our fiscal year with yet another solid operational performance in the fourth quarter, which demonstrates the resilient character of our employees to adapt and execute on initiatives under our control, despite continued softness in general market conditions. Sales from fast growth markets such as electric vehicles, renewable energy, smart grid, and the commercialization of space increased 13% year-on-year to $27 million in fiscal fourth quarter 2024. We achieved adjusted gross margin of 38.7% and adjusted operating margin of 16.0%, up 60 bps sequentially and year-on-year. Four of our business segments finished the quarter with operating margin above 20%. From a cash perspective, we generated free operating cash flow of $22.2 million in the fourth quarter, which represented 112% of GAAP net income."
"Following record profitability in fiscal year 2023, we delivered new records in fiscal year 2024 in adjusted gross margin, adjusted operating income, adjusted operating margin, adjusted earnings per share, and free cash flow. We remain optimistic about our long-term operating margin potential as we leverage better general market conditions and a higher sales contribution from new products and new applications."
"We remain confident about the secular trends in our fast growth end markets. In fiscal year 2024, our fast growth market sales grew 13% year-on-year to $94 million. We anticipate sales into fast growth end markets to accelerate over our long-term target time horizon and beyond, as secular trends develop."
"We are beginning fiscal year 2025 in a strong position for continued improvements in financial performance. Our balance sheet remains in a strong position to consider an active funnel of organic and inorganic opportunities."
Outlook
In the fiscal first quarter 2025, on a sequential basis, the Company expects similar to slightly higher revenue, as higher sales into fast growth markets are mostly offset by less favorable project timing in the Engineering Technologies segment. The Company expects sequentially similar to slightly higher gross margin and slightly lower to similar adjusted operating margin due to higher investments in selling, marketing, and R&D.
In fiscal year 2025, the Company expects general market conditions to stabilize in the first half and strengthen in the second half. The Company plans to release over a dozen new products, at least one in every business, which it expects will contribute over 100 bps of incremental growth. Sales from fast growth markets are expected to grow above 20% year-on-year and exceed $110 million.
Fourth Quarter Segment Operating Performance
Electronics (45% of sales; 45% of segment operating income)
4Q24 | 4Q23 | % Change | |
Electronics ($M) | |||
Revenue | 80.4 | 79.9 | 0.6 % |
GAAP Operating Income | 16.1 | 16.8 | -4.0 % |
GAAP Operating Margin % | 20.1 | 21.0 | |
Adjusted Operating Income* | 16.5 | 16.8 | -2.2 % |
Adjusted Operating Margin %* | 20.5 | 21.0 |
* Excludes purchase accounting expenses of $0.3M associated with Minntronix in Q4 FY24 |
Revenue increased approximately $0.5 million or 0.6% year-on-year reflecting a 14.6% benefit from recent acquisitions, mostly offset by a foreign currency impact of 1.6% and an organic decline of 12.3%. The organic decline was due to continued softness in the appliances and general industrial end markets in China and Europe and prior overstocking in certain large customer accounts. Adjusted operating income decreased approximately $0.4 million or 2.2% year-on-year due to lower volume, mostly offset by contribution from recent acquisitions and realization of pricing and productivity initiatives.
Electronics segment backlog realizable in under one year of approximately $95 million decreased 27% year-on-year. The segment had a book to bill ratio of 0.76 in the fiscal fourth quarter.
In fiscal first quarter 2025, on a sequential basis, the Company expects similar to slightly higher revenue, driven by higher sales into fast growth end markets, and similar adjusted operating margin, as higher investments in selling, marketing, and R&D offset pricing and productivity initiatives.
Engraving (18% of sales; 11% of segment operating income)
4Q24 | 4Q23 | % Change | |
Engraving ($M) | |||
Revenue | 32.7 | 42.4 | -22.8 % |
Operating Income | 3.9 | 7.9 | -50.0 % |
Operating Margin % | 12.0 | 18.6 |
Revenue decreased approximately $9.7 million or 22.8% year-on-year reflecting a 21.0% organic decline, primarily due to delays in new platform rollouts in North America, and a foreign currency impact of 1.9%. Operating income decreased approximately $3.9 million or 50.0% year-on-year due to the slower demand in North America.
In fiscal first quarter 2025, on a sequential basis, the Company expects moderately higher revenue and operating margin due to more favorable project timing in Europe and Asia.
Scientific (10% of sales; 14% of segment operating income)
4Q24 | 4Q23 | % Change | |
Scientific ($M) | |||
Revenue | 17.5 | 18.3 | -4.1 % |
Operating Income | 4.9 | 4.7 | 5.7 % |
Operating Margin % | 28.1 | 25.5 |
Revenue decreased approximately $0.8 million or 4.1% year-on-year reflecting lower demand from retail pharmacies. Operating income increased approximately $0.2 million or 5.7% year-on-year as productivity actions and lower freight costs were partially offset by the impact of lower volume.
In fiscal first quarter 2025, on a sequential basis, the Company expects similar revenue and slightly lower operating margin due to R&D investments and higher freight cost.
Engineering Technologies (14% of sales; 15% of segment operating income)
4Q24 | 4Q23 | % Change | |
Engineering Technologies ($M) | |||
Revenue | 25.3 | 21.8 | 15.7 % |
Operating Income | 5.3 | 3.1 | 70.4 % |
Operating Margin % | 20.9 | 14.2 |
Revenue increased approximately $3.4 million or 15.7% year-on-year primarily driven by improvement in the aviation end markets, more favorable project timing, and growth in new applications. Operating income increased approximately $2.2 million or 70.4% year-on-year reflecting leverage on higher sales and pricing and productivity initiatives, partially offset by investments in research and development.
In fiscal first quarter 2025, on a sequential basis, the Company expects moderately to significantly lower revenue and slightly lower operating margin due to unfavorable project timing.
Specialty Solutions (13% of sales; 15% of segment operating income)
4Q24 | 4Q23 | % Change | |
Specialty Solutions ($M) | |||
Revenue | 24.2 | 25.9 | -6.3 % |
Operating Income | 5.4 | 6.4 | -16.2 % |
Operating Margin % | 22.2 | 24.8 |
Specialty Solutions revenue decreased approximately $1.6 million or 6.3% year-on-year, reflecting normalization in the Display Merchandising business, partially offset by organic growth in the Hydraulics business. Operating income decreased approximately $1.1 million or 16.2% year-on-year due to lower volume in the Display Merchandising business, partially offset by higher volume in the Hydraulics business.
In fiscal first quarter 2025, on a sequential basis, the Company expects similar revenue and operating margin.
Capital Allocation
- Share Repurchase: During the fiscal fourth quarter 2024, the Company did not repurchase shares. There was $33.3 million remaining on the Company's current share repurchase authorization at the end of the fiscal fourth quarter 2024.
- Capital Expenditures: In fiscal fourth quarter 2024, Standex's capital expenditures were $6.5 million compared to $7.6 million in the fiscal fourth quarter of 2023. The Company now expects fiscal year 2025 capital expenditures between $35 million and $40 million. Capital expenditures were $20.3 million in fiscal 2024.
- Dividend: On July 26, 2024, the Company declared a quarterly cash dividend of $0.30 per share, an approximately 7.1% year-on-year increase. The dividend is payable August 23, 2024, to shareholders of record on August 9, 2024.
Balance Sheet and Cash Flow Highlights
- Net Debt: Standex had net (cash) debt of ($5.3) million on June 30, 2024, compared to ($22.3) million at the end of fiscal fourth quarter 2023. Net debt for the fourth quarter of 2024 consisted primarily of long-term debt of $148.9 million and cash and equivalents of $154.2 million.
- Cash Flow: Net cash provided by continuing operating activities for the three months ended June 30, 2024, was $28.7 million compared to $40.4 million in the prior year's quarter. Free cash flow after capital expenditures was $22.2 million compared to free cash flow after capital expenditures of $32.8 million in the fiscal fourth quarter of 2023.
Conference Call Details
Standex will host a conference call for investors tomorrow, August 2, 2024, 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 2, 2025. To listen to the teleconference playback, please dial in the U.S. (888) 660-6345 or (646) 517-4150 internationally; the passcode is 88790#. The audio playback via phone will be available through August 9, 2024. 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, 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.
Standex International Corporation | ||||||||||||
Consolidated Statement of Operations | ||||||||||||
(unaudited) | ||||||||||||
Three Months Ended | Year Ended | |||||||||||
June 30, | June 30, | |||||||||||
(In thousands, except per share data) | 2024 | 2023 | 2024 | 2023 | ||||||||
Net sales | $ | 180,194 | 188,327 | $ | 720,635 | $ | 741,048 | |||||
Cost of sales | 110,781 | 114,701 | 438,634 | 455,952 | ||||||||
Gross profit | 69,413 | 73,626 | 282,001 | 285,096 | ||||||||
Selling, general and administrative expenses | 40,974 | 44,579 | 169,599 | 172,335 | ||||||||
(Gain) loss on sale of business | - | - | (274) | (62,105) | ||||||||
Restructuring costs | 903 | 501 | 8,206 | 3,831 | ||||||||
Acquisition related costs | 389 | 70 | 2,622 | 557 | ||||||||
Other operating (income) expense, net | - | - | 110 | (611) | ||||||||
Income from operations | 27,147 | 28,476 | 101,738 | 171,089 | ||||||||
Interest expense | 1,300 | 1,237 | 4,544 | 5,405 | ||||||||
Other non-operating (income) expense, net | 266 | 40 | 2,071 | 1,735 | ||||||||
Total | 1,566 | 1,277 | 6,615 | 7,140 | ||||||||
Income from continuing operations before income taxes | 25,581 | 27,199 | 95,123 | 163,949 | ||||||||
Provision for income taxes | 5,893 | 7,013 | 21,532 | 24,796 | ||||||||
Net income from continuing operations | 19,688 | 20,186 | 73,591 | 139,153 | ||||||||
Income (loss) from discontinued operations, net of tax | (97) | (17) | (517) | (161) | ||||||||
Net income | $ | 19,591 | $ | 20,169 | $ | 73,074 | $ | 138,992 | ||||
Basic earnings per share: | ||||||||||||
Income (loss) from continuing operations | $ | 1.67 | $ | 1.71 | $ | 6.26 | $ | 11.78 | ||||
Income (loss) from discontinued operations | - | - | (0.04) | (0.01) | ||||||||
Total | $ | 1.67 | $ | 1.71 | $ | 6.22 | $ | 11.77 | ||||
Diluted earnings per share: | ||||||||||||
Income (loss) from continuing operations | $ | 1.66 | $ | 1.68 | $ | 6.18 | $ | 11.59 | ||||
Income (loss) from discontinued operations | (0.01) | - | (0.04) | (0.01) | ||||||||
Total | $ | 1.65 | $ | 1.68 | $ | 6.14 | $ | 11.58 | ||||
Average Shares Outstanding | ||||||||||||
Basic | 11,761 | 11,767 | 11,763 | 11,810 | ||||||||
Diluted | 11,892 | 12,009 | 11,904 | 12,009 | ||||||||
Standex International Corporation | ||||||
Condensed Consolidated Balance Sheets | ||||||
(unaudited) | ||||||
June 30, | June 30, | |||||
(In thousands) | 2024 | 2023 | ||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 154,203 | 195,706 | |||
Accounts receivable, net | 121,365 | 123,440 | ||||
Inventories | 87,106 | 98,537 | ||||
Prepaid expenses and other current assets | 67,421 | 65,570 | ||||
Total current assets | 430,095 | 483,253 | ||||
Property, plant, equipment, net | 134,963 | 130,937 | ||||
Intangible assets, net | 78,673 | 75,651 | ||||
Goodwill | 281,283 | 264,821 | ||||
Deferred tax asset | 17,450 | 14,602 | ||||
Operating lease right-of-use asset | 37,078 | 33,273 | ||||
Other non-current assets | 25,515 | 22,392 | ||||
Total non-current assets | 574,962 | 541,676 | ||||
Total assets | $ | 1,005,057 | $ | 1,024,929 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
Current liabilities: | ||||||
Accounts payable | $ | 63,364 | 68,601 | |||
Accrued liabilities | 56,698 | 62,031 | ||||
Income taxes payable | 7,503 | 10,335 | ||||
Total current liabilities | 127,565 | 140,967 | ||||
Long-term debt | 148,876 | 173,441 | ||||
Operating lease long-term liabilities | 30,725 | 25,774 | ||||
Accrued pension and other non-current liabilities | 76,388 | 77,298 | ||||
Total non-current liabilities | 255,989 | 276,513 | ||||
Stockholders' equity: | ||||||
Common stock | 41,976 | 41,976 | ||||
Additional paid-in capital | 106,193 | 100,555 | ||||
Retained earnings | 1,086,277 | 1,027,279 | ||||
Accumulated other comprehensive loss | (182,956) | (158,477) | ||||
Treasury shares | (429,987) | (403,884) | ||||
Total stockholders' equity | 621,503 | 607,449 | ||||
Total liabilities and stockholders' equity | $ | 1,005,057 | $ | 1,024,929 | ||
Standex International Corporation and Subsidiaries | ||||||
Statements of Consolidated Cash Flows | ||||||
(unaudited) | ||||||
Year Ended | ||||||
June 30, | ||||||
(In thousands) | 2024 | 2023 | ||||
Cash Flows from Operating Activities | ||||||
Net income | $ | 73,074 | 138,992 | |||
Income (loss) from discontinued operations | (517) | (161) | ||||
Income from continuing operations | 73,591 | 139,153 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Depreciation and amortization | 28,140 | 28,474 | ||||
Stock-based compensation | 9,811 | 11,710 | ||||
Non-cash portion of restructuring charge | 151 | (444) | ||||
(Gain) loss on sale of business | (274) | (62,105) | ||||
Contributions to defined benefit plans | (10,238) | (451) | ||||
Net changes in operating assets and liabilities | (7,835) | (25,569) | ||||
Net cash provided by operating activities - continuing operations | 93,346 | 90,768 | ||||
Net cash provided by (used in) operating activities - discontinued operations | (690) | 33 | ||||
Net cash provided by (used in) operating activities | 92,656 | 90,801 | ||||
Cash Flows from Investing Activities | ||||||
Expenditures for property, plant and equipment | (20,298) | (24,270) | ||||
Expenditures for acquisitions, net of cash acquired | (48,835) | - | ||||
Proceeds from the sale of business | 7,774 | 67,023 | ||||
Other investing activities | (270) | (1,190) | ||||
Net cash provided by (used in) investing activities | (61,629) | 41,563 | ||||
Cash Flows from Financing Activities | ||||||
Proceeds from borrowings | - | 224,500 | ||||
Payments of debt | (25,000) | (226,200) | ||||
Contingent consideration payment | - | (1,167) | ||||
Activity under share-based payment plans | 1,525 | 1,341 | ||||
Purchase of treasury stock | (31,824) | (25,527) | ||||
Cash dividends paid | (13,902) | (12,985) | ||||
Net cash provided by (used in) financing activities | (69,201) | (40,038) | ||||
Effect of exchange rate changes on cash | (3,329) | (1,464) | ||||
Net changes in cash and cash equivalents | (41,503) | 90,862 | ||||
Cash and cash equivalents at beginning of year | 195,706 | 104,844 | ||||
Cash and cash equivalents at end of period | $ | 154,203 | $ | 195,706 | ||
Standex International Corporation | ||||||||||||
Selected Segment Data | ||||||||||||
(unaudited) | ||||||||||||
Three Months Ended | Year Ended | |||||||||||
June 30, | June 30, | |||||||||||
(In thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||
Net Sales | ||||||||||||
Electronics | $ | 80,417 | $ | 79,906 | $ | 321,956 | $ | 305,872 | ||||
Engraving | 32,749 | 42,445 | 150,685 | 152,067 | ||||||||
Scientific | 17,521 | 18,278 | 68,931 | 74,924 | ||||||||
Engineering Technologies | 25,271 | 21,835 | 83,476 | 81,079 | ||||||||
Specialty Solutions | 24,236 | 25,863 | 95,587 | 127,106 | ||||||||
Total | $ | 180,194 | $ | 188,327 | $ | 720,635 | $ | 741,048 | ||||
Income from operations | ||||||||||||
Electronics | $ | 16,146 | $ | 16,819 | $ | 64,030 | $ | 68,979 | ||||
Engraving | 3,943 | 7,882 | 26,708 | 25,462 | ||||||||
Scientific | 4,926 | 4,660 | 19,000 | 17,109 | ||||||||
Engineering Technologies | 5,270 | 3,093 | 15,216 | 11,050 | ||||||||
Specialty Solutions | 5,381 | 6,424 | 19,631 | 25,368 | ||||||||
Restructuring | (903) | (501) | (8,206) | (3,831) | ||||||||
Gain (loss) on sale of business | - | - | 274 | 62,105 | ||||||||
Acquisition related costs | (389) | (70) | (2,622) | (557) | ||||||||
Corporate | (7,227) | (9,831) | (32,183) | (35,207) | ||||||||
Other operating income (expense), net | - | - | (110) | 611 | ||||||||
Total | $ | 27,147 | $ | 28,476 | $ | 101,738 | $ | 171,089 | ||||
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) | 2024 | 2023 | % Change | 2024 | 2023 | % Change | |||||||||||
Adjusted income from operations and adjusted net income from continuing operations: | |||||||||||||||||
Net Sales | $ | 180,194 | $ | 188,327 | -4.3 % | $ | 720,635 | $ | 741,048 | -2.8 % | |||||||
Income from operations, as reported | $ | 27,147 | $ | 28,476 | -4.7 % | $ | 101,738 | $ | 171,089 | -40.5 % | |||||||
Income from operations margin | 15.1 % | 15.1 % | 14.1 % | 23.1 % | |||||||||||||
Adjustments: | |||||||||||||||||
Restructuring charges | 903 | 501 | 8,206 | 3,831 | |||||||||||||
Acquisition-related costs | 389 | 70 | 2,622 | 557 | |||||||||||||
Litigation (settlement refund) charge | - | - | - | (882) | |||||||||||||
(Gain) loss on sale of business | - | - | (274) | (62,105) | |||||||||||||
Environmental remediation | - | - | 110 | 271 | |||||||||||||
Property insurance deductible | - | - | - | - | |||||||||||||
Purchase accounting expenses | 305 | - | 1,768 | - | |||||||||||||
Adjusted income from operations | $ | 28,744 | $ | 29,047 | -1.0 % | $ | 114,170 | $ | 112,761 | 1.2 % | |||||||
Adjusted income from operations margin | 16.0 % | 15.4 % | 15.8 % | 15.2 % | |||||||||||||
Interest and other income (expense), net | (1,566) | (1,277) | (6,615) | (7,140) | |||||||||||||
Foreign currency related (gain) loss on acquisition and divestiture activities | - | - | 309 | - | |||||||||||||
Life insurance benefit | - | - | - | - | |||||||||||||
Provision for income taxes | (5,893) | (7,013) | (21,532) | (24,796) | |||||||||||||
Discrete and other tax items | - | - | 100 | 100 | |||||||||||||
Tax impact of above adjustments | (396) | 416 | (2,964) | (353) | |||||||||||||
Net income from continuing operations, as adjusted | $ | 20,889 | $ | 21,173 | -1.3 % | $ | 83,468 | $ | 80,572 | 3.6 % | |||||||
EBITDA and Adjusted EBITDA: | |||||||||||||||||
Net income (loss) from continuing operations, as reported | $ | 19,688 | $ | 20,186 | -2.5 % | $ | 73,591 | $ | 139,153 | ||||||||
Net income from continuing operations margin | 10.9 % | 10.7 % | 10.2 % | 18.8 % | |||||||||||||
Add back: | |||||||||||||||||
Provision for income taxes | 5,893 | 7,013 | 21,532 | 24,796 | |||||||||||||
Interest expense | 1,300 | 1,237 | 4,544 | 5,405 | |||||||||||||
Depreciation and amortization | 6,994 | 7,200 | 28,140 | 28,474 | |||||||||||||
EBITDA | $ | 33,875 | $ | 35,636 | -4.9 % | $ | 127,807 | $ | 197,828 | -35.4 % | |||||||
EBITDA Margin | 18.8 % | 18.9 % | 17.7 % | 26.7 % | |||||||||||||
Adjustments: | |||||||||||||||||
Restructuring charges | 903 | 501 | 8,206 | 3,831 | |||||||||||||
Acquisition-related costs | 389 | 70 | 2,622 | 557 | |||||||||||||
Litigation (settlement refund) charge | - | - | - | (882) | |||||||||||||
(Gain) loss on sale of business | - | - | (274) | (62,105) | |||||||||||||
Foreign currency related (gain) loss on acquisition and divestiture activities | - | - | 309 | - | |||||||||||||
Environmental remediation | - | - | 110 | 271 | |||||||||||||
Life insurance benefit | - | - | - | - | |||||||||||||
Purchase accounting expenses | 305 | - | 1,768 | - | |||||||||||||
Adjusted EBITDA | $ | 35,472 | $ | 36,207 | -2.0 % | $ | 140,548 | $ | 139,500 | 0.8 % | |||||||
Adjusted EBITDA Margin | 19.7 % | 19.2 % | 19.5 % | 18.8 % | |||||||||||||
Free operating cash flow: | |||||||||||||||||
Net cash provided by operating activities - continuing operations, as reported | $ | 28,737 | $ | 40,413 | $ | 93,346 | $ | 90,768 | |||||||||
Add back: Voluntary pension contribution | - | - | - | - | |||||||||||||
Less: Capital expenditures | (6,533) | (7,622) | (20,298) | (24,270) | |||||||||||||
Free cash flow from continuing operations | $ | 22,204 | $ | 32,791 | $ | 73,048 | $ | 66,498 | |||||||||
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, | |||||||||||||||
2024 | 2023 | % | 2024 | 2023 | % Change | ||||||||||||
Diluted earnings per share from continuing operations, as reported | $ | 1.66 | $ | 1.68 | -1.2 % | $ | 6.18 | $ | 11.59 | -46.7 % | |||||||
Adjustments: | |||||||||||||||||
Restructuring charges | 0.06 | 0.03 | 0.53 | 0.24 | |||||||||||||
Acquisition-related costs | 0.02 | - | 0.17 | 0.03 | |||||||||||||
Litigation (settlement refund) charge | - | - | - |
(0.06) | |||||||||||||
(Gain) loss on sale of business | - | 0.05 | (0.02) | (5.13) | |||||||||||||
Foreign currency related (gain) loss on acquisition and divestiture activities | - | - | 0.02 | ||||||||||||||
Environmental remediation | - | - | 0.01 | 0.02 | |||||||||||||
Discrete tax items | - | - | 0.01 | 0.01 | |||||||||||||
Purchase accounting expenses | 0.02 | - | 0.11 | - | |||||||||||||
Diluted earnings per share from continuing operations, as adjusted | $ | 1.76 | $ | 1.76 | 0.0 % | $ | 7.01 | $ | 6.70 | 4.6 % | |||||||
SOURCE Standex International Corporation
