- Sales Declined 7.7% with Contributions from Acquisitions Partially Offsetting Organic Decline
- Record GAAP and Adjusted Gross Margin of 41.1%; Up 240 bps Sequentially and 160 bps YOY
- GAAP Operating Margin of 14.1%; Adjusted Operating Margin of 15.9%
- Acquired Amran Instrument Transformers & Narayan Powertech Pvt., Ltd., Largest Acquisition in Company's History; Significantly Expands Presence in Fast-Growing, High-Margin Electrical Grid End Market; Expected to be Immediately Accretive to Revenue Growth, Margins, and EPS
SALEM, N.H., Oct. 29, 2024 /PRNewswire/ -- Standex International Corporation (NYSE: SXI) today reported financial results for the first quarter of fiscal year 2025 ended September 30, 2024.
Summary Financial Results - Total | |||||
($M except EPS and Dividends) | 1Q25 | 1Q24 | 4Q24 | Y/Y | Q/Q |
Net Sales | $170.5 | $184.8 | $180.2 | -7.7 % | -5.4 % |
Operating Income - GAAP | $24.1 | $26.9 | $27.1 | -10.5 % | -11.2 % |
Operating Income - Adjusted | $27.0 | $29.4 | $28.7 | -8.0 % | -6.0 % |
Operating Margin % - GAAP | 14.1 % | 14.6 % | 15.1 % | - 50 bps | - 100 bps |
Operating Margin % - Adjusted | 15.9 % | 15.9 % | 16.0 % | 0 bps | - 10 bps |
Net Income from Continuing Ops - GAAP | $18.2 | $18.9 | $19.7 | -3.7 % | -7.6 % |
Net Income from Continuing Ops - Adjusted | $20.3 | $20.8 | $20.9 | -2.3 % | -2.6 % |
EBITDA | $31.2 | $33.2 | $33.9 | -5.9 % | -7.9 % |
EBITDA margin | 18.3 % | 17.9 % | 18.8 % | + 40 bps | - 50 bps |
Adjusted EBITDA | $34.1 | $35.6 | $35.5 | -4.2 % | -3.8 % |
Adjusted EBITDA margin | 20.0 % | 19.3 % | 19.7 % | + 70 bps | + 30 bps |
Diluted EPS - GAAP | $1.53 | $1.58 | $1.66 | -3.2 % | -7.8 % |
Diluted EPS - Adjusted | $1.71 | $1.74 | $1.76 | -1.7 % | -2.8 % |
Dividends per Share | $0.30 | $0.28 | $0.30 | 7.1 % | 0.0 % |
Free Cash Flow | $10.8 | $12.1 | $22.2 | -10.3 % | -51.3 % |
Net Debt to EBITDA | -0.1x | 0.2x | 0.0x | NM | NM |
First Quarter Fiscal 2025 Results
Commenting on the quarter's results, President and Chief Executive Officer David Dunbar said, "Following record profit and cash generation in fiscal year 2024, we delivered another solid operational performance in the fiscal first quarter with record gross margin. Sales from fast growth markets in electric vehicles, defense applications, and commercialization of space improved year-on-year, respectively, but were offset primarily by demand conditions affecting the soft trim business in our Engraving segment. In the fiscal first quarter, we achieved record gross margin of 41.1% and maintained adjusted operating margin near 16.0%, while continuing to support our growth initiatives. We remain optimistic about leading market indicators across most of our businesses."
"We also announced the acquisitions of Amran Instrument Transformers and Narayan Powertech Pvt., Ltd. ("Amran/Narayan Group"), leading US and India based manufacturers of low to medium voltage transformers. This acquisition significantly expands our presence in the fast-growing, high-margin electrical grid end market, which will benefit from infrastructure upgrades, capacity expansion and data center demand. We anticipate this acquisition to be immediately accretive to revenue growth, EBITDA margin, operating margin, earnings per share and free cash flow. We are excited about our combined resources potential to accelerate growth in the electrical grid market."
"We remain confident about the secular trends in our defined fast growth end markets and for the added potential in the electrical grid market with the acquisition of the Amran/Narayan Group. In fiscal year 2024, our fast growth market sales grew 13% year-on-year to $94 million. In the fiscal first quarter 2025, sales from fast growth markets were relatively flat year-on-year, but we anticipate sequential and year-on-year improvement in the fiscal second quarter."
"In fiscal year 2025, based on recent order rates and customer interaction, we continue to expect our end markets to stabilize in the second quarter and strengthen in the second half. In the fiscal first quarter, we launched three new products and remain on track to release over a dozen new products in fiscal year 2025."
"Overall, we remain in a strong position for continued improvements in financial performance as market conditions improve. In terms of our balance sheet, we are confident in our ability to pay down debt and expect to reduce our net leverage ratio below 1.0x within the first 24 months from the closing of the Amran/Narayan Group."
Outlook
In the fiscal second quarter 2025, on a sequential basis, the Company expects moderately to significantly higher revenue, driven by the impact of the recent Amran/Narayan Group acquisition, more favorable project timing in Engraving, and improving overall demand in Electronics and Specialty. On a sequential basis, the Company expects slightly to moderately higher adjusted operating margin, benefiting from higher sales partially offset by increased investments in selling, marketing, and R&D. The Company also expects the Amran/Narayan Group acquisition to be slightly accretive to adjusted earnings per share in the fiscal second quarter 2025.
First Quarter Segment Operating Performance
Electronics (46% of sales; 48% of segment operating income)
1Q25 | 1Q24 | % Change | |
Electronics ($M) | |||
Revenue | 77.7 | 81.7 | -4.8 % |
GAAP Operating Income | 17.0 | 16.3 | 4.2 % |
GAAP Operating Margin % | 21.9 | 20.0 | |
Adjusted Operating Income* | 17.0 | 16.6 | 2.3 % |
Adjusted Operating Margin %* | 21.9 | 20.4 |
* Excludes purchase accounting expenses of $0.3M associated with Minntronix in Q1 FY24 |
Revenue decreased approximately $4.0 million or 4.8% year-on-year reflecting an 8.5% benefit from recent acquisitions and a 0.3% benefit from foreign currency, more than offset by an organic decline of 13.7%. The organic decline was due to continued softness in general industrial end markets in Europe, along with the effects of delays and prior overstocking related to certain large customer accounts. Adjusted operating income increased approximately $0.4 million or 2.3% year-on-year due to the contributions from recent acquisitions, productivity initiatives and product mix, partially offset by lower volume.
Electronics segment backlog realizable in under one year of approximately $93 million decreased 30% year-on-year. The segment had a book to bill ratio of 0.96 in the fiscal first quarter, with orders increasing 15% sequentially to approximately $75 million, the highest orders quarter in over a year.
In fiscal second quarter 2025, on a sequential basis, the Company expects significantly higher revenue, primarily driven by the recent Amran/Narayan Group acquisition and higher sales into fast growth end markets, and slightly to moderately higher adjusted operating margin, as the recent acquisition and pricing and productivity initiatives are partially offset by higher investments in selling, marketing, and R&D.
Engraving (20% of sales; 17% of segment operating income)
1Q25 | 1Q24 | % Change | |
Engraving ($M) | |||
Revenue | 33.4 | 40.8 | -18.2 % |
Operating Income | 5.8 | 7.6 | -23.3 % |
Operating Margin % | 17.5 | 18.6 |
Revenue decreased approximately $7.4 million or 18.2% year-on-year reflecting a 17.5% organic decline, primarily due to delays in new platform rollouts in North America and delays and general market softness in Europe, and a foreign currency impact of 0.7%. Operating income decreased approximately $1.8 million or 23.3% year-on-year due to the slower demand in North America and Europe. Operating deleverage was partially offset from the realization of previously announced productivity initiatives and restructuring actions.
In fiscal second quarter 2025, on a sequential basis, the Company expects moderately higher revenue and slightly higher operating margin due to more favorable project timing in Asia and Europe and productivity initiatives.
Scientific (10% of sales; 14% of segment operating income)
1Q25 | 1Q24 | % Change | |
Scientific ($M) | |||
Revenue | 17.7 | 18.2 | -2.7 % |
Operating Income | 4.7 | 4.9 | -3.7 % |
Operating Margin % | 26.8 | 27.1 |
Revenue decreased approximately $0.5 million or 2.7% year-on-year reflecting lower demand from retail pharmacies, partially offset by higher volume from new product sales. Operating income decreased approximately $0.2 million or 3.7% year-on-year as the impact of lower volume and higher freight costs were partially offset by productivity actions.
In fiscal second quarter 2025, on a sequential basis, the Company expects similar revenue and slightly lower operating margin due to R&D investments and higher freight costs.
Engineering Technologies (12% of sales; 11% of segment operating income)
1Q25 | 1Q24 | % Change | |
Engineering Technologies ($M) | |||
Revenue | 20.5 | 18.2 | 12.7 % |
Operating Income | 4.0 | 3.0 | 32.9 % |
Operating Margin % | 19.5 | 16.6 |
Revenue increased approximately $2.3 million or 12.7% year-on-year primarily driven by more favorable project timing in the space end market which helped to drive growth in new product development and new applications. Operating income increased approximately $1.0 million or 32.9% year-on-year reflecting leverage on higher sales and pricing and productivity initiatives.
In fiscal second quarter 2025, on a sequential basis, the Company expects similar to slightly higher revenue due to new products and new applications and slightly lower operating margin due to product mix.
Specialty Solutions (12% of sales; 10% of segment operating income)
1Q25 | 1Q24 | % Change | |
Specialty Solutions ($M) | |||
Revenue | 21.1 | 25.9 | -18.3 % |
Operating Income | 3.5 | 5.6 | -36.8 % |
Operating Margin % | 16.8 | 21.7 |
Specialty Solutions revenue decreased approximately $4.7 million or 18.3% year-on-year, reflecting softness in the general market conditions in the Display Merchandising business and in the Hydraulics business. Operating income decreased approximately $2.1 million or 36.8% year-on-year due to lower volume.
In fiscal second quarter 2025, on a sequential basis, the Company expects slightly higher revenue and operating margin.
Capital Allocation
- Share Repurchase: During the fiscal first quarter 2025, the Company repurchased approximately 24,810 shares for $4.4 million. There was $28.9 million remaining on the Company's current share repurchase authorization at the end of the fiscal first quarter 2025.
- Capital Expenditures: In fiscal first quarter 2025, Standex's capital expenditures were $6.7 million compared to $4.3 million in the fiscal first quarter of 2024. The Company expects fiscal year 2025 capital expenditures between $35 million and $40 million. Capital expenditures were $20.3 million in fiscal 2024.
- Dividend: On October 24, 2024, the Company declared a quarterly cash dividend of $0.32 per share, an approximately 6.7% year-on-year increase. The dividend is payable November 22, 2024, to shareholders of record on November 8, 2024.
Balance Sheet and Cash Flow Highlights
- Net Debt: Standex had net (cash) debt of ($15.6) million on September 30, 2024, compared to $16.4 million at the end of fiscal first quarter 2024. Net (cash) debt for the first quarter of 2025 consisted primarily of long-term debt of $149.0 million and cash and equivalents of $164.6 million.
- Cash Flow: Net cash provided by continuing operating activities for the three months ended September 30, 2024, was $17.5 million compared to $16.4 million in the prior year's quarter. Free cash flow after capital expenditures was $10.8 million compared to free cash flow after capital expenditures of $12.1 million in the fiscal first quarter of 2024.
Conference Call Details
Standex will host a conference call for investors today, October 29, 2024, at 10:00 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 October 29, 2025. To listen to the teleconference playback, please dial in the U.S. (888) 660-6345 or (646) 517-4150 internationally; the passcode is 60631#. The audio playback via phone will be available through November 5, 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; increased costs from acquisitions to improve and coordinate managerial, operational, financial, and administrative systems, including internal controls over financial reporting and compliance with the Sarbanes-Oxley Act of 2002, and other costs related to such systems in connection with acquired businesses; 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. For a more comprehensive discussion of these and other factors, see the "Risk Factors" section of the Company's most recent annual report on Form 10-K filed with the SEC and available on the Company's website. 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 | |||||||
September 30, | |||||||
(In thousands, except per share data) | 2024 | 2023 | |||||
Net sales | $ | 170,464 | 184,774 | ||||
Cost of sales | 100,391 | 112,139 | |||||
Gross profit | 70,073 | 72,635 | |||||
Selling, general and administrative expenses | 43,048 | 43,585 | |||||
(Gain) loss on sale of business | - | (274) | |||||
Restructuring costs | 1,086 | 1,906 | |||||
Acquisition related costs | 1,840 | 501 | |||||
Income from operations | 24,099 | 26,917 | |||||
Interest expense | 977 | 1,276 | |||||
Other non-operating (income) expense, net | (28) | 846 | |||||
Total | 949 | 2,122 | |||||
Income from continuing operations before income taxes | 23,150 | 24,795 | |||||
Provision for income taxes | 4,962 | 5,903 | |||||
Net income from continuing operations | 18,188 | 18,892 | |||||
Income (loss) from discontinued operations, net of tax | 9 | (78) | |||||
Net income | $ | 18,197 | $ | 18,814 | |||
Basic earnings per share: | |||||||
Income (loss) from continuing operations | $ | 1.54 | $ | 1.61 | |||
Income (loss) from discontinued operations | - | (0.01) | |||||
Total | $ | 1.54 | $ | 1.60 | |||
Diluted earnings per share: | |||||||
Income (loss) from continuing operations | $ | 1.53 | $ | 1.58 | |||
Income (loss) from discontinued operations | - | - | |||||
Total | $ | 1.53 | $ | 1.58 | |||
Average Shares Outstanding | |||||||
Basic | 11,787 | 11,742 | |||||
Diluted | 11,904 | 11,933 | |||||
Standex International Corporation | ||||||
Condensed Consolidated Balance Sheets | ||||||
(unaudited) | ||||||
September 30, | June 30, | |||||
(In thousands) | 2024 | 2024 | ||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 164,584 | 154,203 | |||
Accounts receivable, net | 118,697 | 121,365 | ||||
Inventories | 90,121 | 87,106 | ||||
Prepaid expenses and other current assets | 73,745 | 67,421 | ||||
Total current assets | 447,147 | 430,095 | ||||
Property, plant, equipment, net | 138,373 | 134,963 | ||||
Intangible assets, net | 78,957 | 78,673 | ||||
Goodwill | 292,180 | 281,283 | ||||
Deferred tax asset | 19,303 | 17,450 | ||||
Operating lease right-of-use asset | 36,128 | 37,078 | ||||
Other non-current assets | 25,794 | 25,515 | ||||
Total non-current assets | 590,735 | 574,962 | ||||
Total assets | $ | 1,037,882 | $ | 1,005,057 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
Current liabilities: | ||||||
Accounts payable | $ | 66,505 | 63,364 | |||
Accrued liabilities | 52,885 | 56,698 | ||||
Income taxes payable | 6,607 | 7,503 | ||||
Total current liabilities | 125,997 | 127,565 | ||||
Long-term debt | 148,985 | 148,876 | ||||
Operating lease long-term liabilities | 29,722 | 30,725 | ||||
Accrued pension and other non-current liabilities | 75,157 | 76,388 | ||||
Total non-current liabilities | 253,864 | 255,989 | ||||
Stockholders' equity: | ||||||
Common stock | 41,976 | 41,976 | ||||
Additional paid-in capital | 108,383 | 106,193 | ||||
Retained earnings | 1,100,924 | 1,086,277 | ||||
Accumulated other comprehensive loss | (160,939) | (182,956) | ||||
Treasury shares | (432,323) | (429,987) | ||||
Total stockholders' equity | 658,021 | 621,503 | ||||
Total liabilities and stockholders' equity | $ | 1,037,882 | $ | 1,005,057 | ||
Standex International Corporation and Subsidiaries | ||||||
Statements of Consolidated Cash Flows | ||||||
(unaudited) | ||||||
Three Months Ended | ||||||
September 30, | ||||||
(In thousands) | 2024 | 2023 | ||||
Cash Flows from Operating Activities | ||||||
Net income | $ | 18,197 | 18,814 | |||
Income (loss) from discontinued operations | 9 | (78) | ||||
Income from continuing operations | 18,188 | 18,892 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Depreciation and amortization | 7,061 | 7,082 | ||||
Stock-based compensation | 2,568 | 2,193 | ||||
Non-cash portion of restructuring charge | (143) | 397 | ||||
(Gain) loss on sale of business | - | (274) | ||||
Contributions to defined benefit plans | (3,379) | (49) | ||||
Net changes in operating assets and liabilities | (6,748) | (11,834) | ||||
Net cash provided by operating activities - continuing operations | 17,547 | 16,407 | ||||
Net cash provided by (used in) operating activities - discontinued operations | 26 | (227) | ||||
Net cash provided by (used in) operating activities | 17,573 | 16,180 | ||||
Cash Flows from Investing Activities | ||||||
Expenditures for property, plant and equipment | (6,725) | (4,338) | ||||
Expenditures for acquisitions, net of cash acquired | - | (29,229) | ||||
Proceeds from the sale of business | - | 274 | ||||
Other investing activities | 411 | - | ||||
Net cash provided by (used in) investing activities | (6,314) | (33,293) | ||||
Cash Flows from Financing Activities | ||||||
Payments of debt | - | (25,000) | ||||
Activity under share-based payment plans | 1,637 | 768 | ||||
Purchase of treasury stock | (4,382) | (22,158) | ||||
Cash dividends paid | (3,528) | (3,288) | ||||
Net cash provided by (used in) financing activities | (6,273) | (49,678) | ||||
Effect of exchange rate changes on cash | 5,395 | (2,085) | ||||
Net changes in cash and cash equivalents | 10,381 | (68,876) | ||||
Cash and cash equivalents at beginning of year | 154,203 | 195,706 | ||||
Cash and cash equivalents at end of period | $ | 164,584 | $ | 126,830 | ||
Standex International Corporation | |||||||
Selected Segment Data | |||||||
(unaudited) | |||||||
Three Months Ended | |||||||
September 30, | |||||||
(In thousands) | 2024 | 2023 | |||||
Net Sales | |||||||
Electronics | $ | 77,733 | $ | 81,688 | |||
Engraving | 33,363 | 40,794 | |||||
Scientific | 17,693 | 18,193 | |||||
Engineering Technologies | 20,530 | 18,220 | |||||
Specialty Solutions | 21,145 | 25,879 | |||||
Total | $ | 170,464 | $ | 184,774 | |||
Income from operations | |||||||
Electronics | $ | 17,027 | $ | 16,334 | |||
Engraving | 5,824 | 7,595 | |||||
Scientific | 4,749 | 4,930 | |||||
Engineering Technologies | 4,010 | 3,017 | |||||
Specialty Solutions | 3,548 | 5,617 | |||||
Restructuring | (1,086) | (1,906) | |||||
Gain (loss) on sale of business | - | 274 | |||||
Acquisition related costs | (1,840) | (501) | |||||
Corporate | (8,133) | (8,443) | |||||
Total | $ | 24,099 | $ | 26,917 | |||
Standex International Corporation | ||||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures | ||||||||||
(unaudited) | ||||||||||
Three Months Ended | ||||||||||
September 30, | ||||||||||
(In thousands, except percentages) | 2024 | 2023 | % | |||||||
Adjusted income from operations and adjusted net income from continuing operations: | ||||||||||
Net Sales | $ | 170,464 | $ | 184,774 | -7.7 % | |||||
Income from operations, as reported | $ | 24,099 | $ | 26,917 | -10.5 % | |||||
Income from operations margin | 14.1 % | 14.6 % | ||||||||
Adjustments: | ||||||||||
Restructuring charges | 1,086 | 1,906 | ||||||||
Acquisition-related costs | 1,840 | 501 | ||||||||
(Gain) loss on sale of business | - | (274) | ||||||||
Purchase accounting expenses | - | 340 | ||||||||
Adjusted income from operations | $ | 27,025 | $ | 29,390 | -8.0 % | |||||
Adjusted income from operations margin | 15.9 % | 15.9 % | ||||||||
Interest and other income (expense), net | (949) | (2,122) | ||||||||
Provision for income taxes | (4,962) | (5,903) | ||||||||
Discrete and other tax items | (72) | 100 | ||||||||
Tax impact of above adjustments | (702) | (654) | ||||||||
Net income from continuing operations, as adjusted | $ | 20,340 | $ | 20,811 | -2.3 % | |||||
EBITDA and Adjusted EBITDA: | ||||||||||
Net income (loss) from continuing operations, as reported | $ | 18,188 | $ | 18,892 | -3.7 % | |||||
Net income from continuing operations margin | 10.7 % | 10.2 % | ||||||||
Add back: | ||||||||||
Provision for income taxes | 4,962 | 5,903 | ||||||||
Interest expense | 977 | 1,276 | ||||||||
Depreciation and amortization | 7,061 | 7,082 | ||||||||
EBITDA | $ | 31,188 | $ | 33,153 | -5.9 % | |||||
EBITDA Margin | 18.3 % | 17.9 % | ||||||||
Adjustments: | ||||||||||
Restructuring charges | 1,086 | 1,906 | ||||||||
Acquisition-related costs | 1,840 | 501 | ||||||||
(Gain) loss on sale of business | - | (274) | ||||||||
Purchase accounting expenses | - | 340 | ||||||||
Adjusted EBITDA | $ | 34,114 | $ | 35,626 | -4.2 % | |||||
Adjusted EBITDA Margin | 20.0 % | 19.3 % | ||||||||
Free operating cash flow: | ||||||||||
Net cash provided by operating activities - continuing operations, as reported | $ | 17,547 | $ | 16,407 | ||||||
Less: Capital expenditures | (6,725) | (4,338) | ||||||||
Free cash flow from continuing operations | $ | 10,822 | $ | 12,069 | ||||||
Standex International Corporation | ||||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures | ||||||||||
(unaudited) | ||||||||||
Three Months Ended | ||||||||||
Adjusted earnings per share from continuing operations | September 30, | |||||||||
2024 | 2023 | % | ||||||||
Diluted earnings per share from continuing operations, as reported | $ | 1.53 | $ | 1.58 | -3.2 % | |||||
Adjustments: | ||||||||||
Restructuring charges | 0.07 | 0.12 | ||||||||
Acquisition-related costs | 0.12 | 0.03 | ||||||||
(Gain) loss on sale of business | - | (0.02) | ||||||||
Discrete tax items | (0.01) | 0.01 | ||||||||
Purchase accounting expenses | - | 0.02 | ||||||||
Diluted earnings per share from continuing operations, as adjusted | $ | 1.71 | $ | 1.74 | -1.7 % | |||||
SOURCE Standex International Corporation
