SALEM, N.H., Feb. 3, 2020 /PRNewswire/ -- Standex
International Corporation (NYSE: SXI) today reported
financial results for the second quarter of fiscal year 2020 ending
December 31, 2019.
Summary Financial
Results - Total Standex
|
|
|
|
($M except EPS and
Dividends)
|
2Q20
|
2Q19
|
Change
|
Net Sales
|
$190.6
|
$195.5
|
-2.5%
|
Operating
Income
|
$17.8
|
$20.2
|
-11.7%
|
Net Income from
Continuing Ops
|
$12.4
|
$12.5
|
-0.5%
|
|
|
|
|
EBITDA
|
$25.7
|
$27.6
|
-6.8%
|
EBITDA
margin
|
13.5%
|
14.1%
|
-60 bps
|
Adjusted
EBITDA
|
$27.2
|
$28.7
|
-5.2%
|
Adjusted EBITDA
margin
|
14.3%
|
14.7%
|
-40 bps
|
|
|
|
|
Diluted
EPS
|
$1.00
|
$0.98
|
2.0%
|
Adjusted
EPS
|
$1.03
|
$0.98
|
5.1%
|
Dividends per
share
|
$0.22
|
$0.20
|
10.0%
|
|
|
|
|
2Q Free Cash
Flow
|
$9.9
|
$7.7
|
28.3%
|
Net Debt to Adjusted
EBITDA
|
0.8x
|
1.6x
|
-50.3%
|
*Second quarter of
fiscal 2019 results have been adjusted to reflect the disposition
of the Cooking Solutions Group on April 1, 2019.
|
Second Quarter Fiscal 2020 Results
"We are pleased with second quarter results as our quarterly
performance continues to trend in line with our expectations.
Engineering Technologies trends remained strong. In addition, the
Engraving segment operating margin increased both sequentially and
year-over-year on flat sales trends. The Electronics segment
continued to face market headwinds, although we see some
indications of potentially modest improvement as we move through
the balance of the fiscal year. While our previously
announced cost restructuring efforts are largely completed, we are
actively implementing additional productivity initiatives
company-wide. Finally, both free cash flow and working
capital metrics improved year-over-year," commented President and
Chief Executive Officer David
Dunbar.
"From a growth perspective, we continue to have an attractive
pipeline of opportunities. Laneway sales increased 17%
year-over-year to $33.4 million. In
addition, our new business opportunity funnel in Electronics North
America increased 6% year-to-date in fiscal 2020. In December, we
announced a definitive agreement to acquire Torotel, Inc., which
specializes in the custom design, manufacture and sale of precision
magnetic components. The Torotel acquisition is a strong
strategic fit, further adding expertise in end markets with
favorable trends including aerospace and defense. We continue
to expect the transaction to close in the first calendar quarter of
2020.
"Our financial position remains solid with net debt to Adjusted
EBITDA of 0.8x and an expected approximately $195 million in available liquidity post-closing
of the Torotel transaction. Working capital turns improved to
5.1x, a 0.4x year-over-year increase. In addition, we
generated free cash flow of $9.9
million in the second quarter, an increase of over 25%
compared to the same period last year."
"Although there remain challenges in the macro environment, we
continue to focus on successfully executing on our strategic
priorities. We are transforming our company's profile toward
higher growth and margin platforms through a combination of
attractive organic and acquisition growth opportunities combined
with ongoing productivity initiatives. Our financial
strength, complemented by consistent free cash flow generation,
provide further runway to opportunistically invest in an active
pipeline of high return internal projects and attractive potential
acquisitions," concluded Mr. Dunbar.
Outlook
In the third fiscal quarter of 2020, the Company expects total
revenue to increase slightly sequentially but be similar to the
third fiscal quarter of 2019. Standex expects operating
income to be sequentially similar to or slightly better than the
second fiscal quarter of 2020 and show significant improvement
year-over-year, as the Company realizes additional benefits from
its cost reduction actions.
Standex's outlook assumes improved Engraving and Food Service
Equipment performance and increased profitability at Engineering
Technologies, year-over-year. The Company expects that performance
in the Electronics segment will improve slightly sequentially,
although continue to be lower on a year-over-basis. In addition,
Hydraulics performance is expected to be similar to the second
fiscal quarter of 2020 but reflect a decrease year-over-year as
customers de-stock inventory against the backdrop of a softer
market environment.
Second Quarter Segment Operating Performance
Engraving (20% of sales; 26% of segment operating
income)
|
2Q20
|
2Q19
|
%
Change
|
Engraving
($M)
|
|
|
|
Net sales
|
$38.3
|
$38.5
|
-0.6%
|
Operating
Income
|
6.9
|
6.9
|
1.0%
|
Operating
Margin
|
18.1%
|
17.9%
|
|
Overall sales and operating income were flat
year-over-year. Sales performance reflected contributions
from recent acquisitions balanced with an organic decline of 2.7%
and negative impact from foreign currency of 2.2%.
Segment operating margin of 18.1% represented an increase of
over 100 basis points sequentially, as well as a 20 basis point
improvement compared to the second fiscal quarter of 2019.
These results reflected improved performance primarily in North
American operations, as well as contribution from growth laneways
in lasers and tool finishing.
In the third fiscal quarter of 2020, Standex expects
year-over-year improvement due to increased automotive model
roll-outs, continued contribution from the GS Engineering
acquisition and operating leverage associated with recent cost
restructuring actions.
Electronics (24% of sales; 29% of segment operating
income)
|
2Q20
|
2Q19
|
%
Change
|
Electronics
($M)
|
|
|
|
Net sales
|
$45.8
|
$52.7
|
-13.0%
|
Operating
Income
|
7.8
|
10.4
|
-25.1%
|
Operating
Margin
|
17.0%
|
19.7%
|
|
Sales decreased 13.0% and operating income declined 25.1%
year-over-year. In line with Standex's previously
communicated outlook, the quarter's results were similar to the
first fiscal quarter of 2020. The decline in sales was
primarily due to continued lower demand in this segment's end
markets such as automotive as well as distributor
de-stocking. The decrease in operating income
year-over-year reflected lower sales volume and the impact of
material inflation.
In the third fiscal quarter of 2020, Standex expects Electronics
sales volume to decrease year-over-year, but increase slightly from
the second fiscal quarter of 2020, as some end markets improve
slightly. The pipeline of new business opportunities is very strong
and expected to have an increasing contribution in future quarters.
The business continues to focus on productivity and cost
initiatives.
Engineering Technologies (14% of sales; 13% of segment
operating income)
|
2Q20
|
2Q19
|
%
Change
|
Engineering
($M)
|
|
|
|
Net sales
|
$26.5
|
$23.6
|
12.4%
|
Operating
Income
|
3.4
|
2.1
|
66.0%
|
Operating
Margin
|
12.9%
|
8.7%
|
|
Engineering Technologies revenue grew 12.4%
year-over-year with continued strength in Aviation, Space and
Defense. Operating income increased 66.0% year-over-year as the
segment successfully leveraged both the volume growth and ongoing
productivity improvements in manufacturing processes and
efficiency.
Standex expects revenue for the segment to decrease
year-over-year in the third fiscal quarter of 2020 primarily due to
the timing of projects in its backlog. As of the second
fiscal quarter of 2020, the segment's backlog was 17% higher versus
the same period last year. Operating income is expected to
increase year-over-year, driven by the productivity improvements
and cost efficiency opportunities.
Hydraulics (6% of sales; 7% of segment operating
income)
|
2Q20
|
2Q19
|
%
Change
|
Hydraulics
($M)
|
|
|
|
Net sales
|
$11.3
|
$12.1
|
-6.6%
|
Operating
Income
|
1.8
|
1.9
|
-5.8%
|
Operating
Margin
|
16.1%
|
15.9%
|
|
Sales for the Hydraulics segment decreased 6.6% year-over-year
as customers focused on reducing existing inventory levels.
Although operating income decreased 5.8% year-over-year due to the
overall volume decline, operating margin increased 20 basis points
reflecting solid expense management and favorable product mix.
In the third fiscal quarter of 2020, Standex expects Hydraulics
revenue and operating income to decrease year-over-year, reflecting
continued customer de-stocking as well as the end of tariff relief
on select products. Hydraulics continues to focus on growing its
aftermarket presence and new business opportunity pipeline.
Food Service Equipment (36% of sales; 25% of segment
operating income)
|
2Q20
|
2Q19
|
%
Change
|
Food Service
($M)
|
|
|
|
Net sales
|
$68.7
|
$68.7
|
0.1%
|
Operating
Income
|
6.8
|
5.2
|
30.5%
|
Operating
Margin
|
9.9%
|
7.6%
|
|
Sales reflected growth in Pumps balanced with relatively flat
demand in Scientific and Refrigeration and lower sales in
Merchandising year-over-year. The 30.5% increase in operating
income was due to a continued solid contribution from Scientific as
well as an improved Refrigeration contribution.
On a year-over-year basis, the Company expects that segment
sales will increase slightly in third fiscal quarter of 2020 driven
by increased Scientific sales and expects improvement in operating
income due to the impact of productivity actions.
Capital Allocation
- Torotel Acquisition: On December
2, 2019, the Company announced that it had entered into a
definitive agreement to acquire Torotel, a leader in custom high
reliability magnetics assemblies for approximately $48 million in cash. In addition to the
purchase price, Standex will absorb approximately $8 million of transaction costs incurred by
Torotel. The transaction continues to be on target to close in the
first calendar quarter of 2020.
- Capital Expenditures: In second fiscal quarter of
2020 Standex's cash capital expenditures were $3.6 million compared to $8.7 million in the second fiscal quarter of
2019. The Company is revising its expectation for fiscal 2020
capital spending to be between approximately $30 to $32 million
from $31 to $34 million previously.
- Dividends: On January
23, the Company declared a quarterly cash dividend of
$0.22 per share, a 10% year-over-year
increase. The dividend will be payable on February 25, 2020 to shareholders of record
February 10, 2020.
Balance Sheet and Cash Flow Highlights
- Net Debt: Standex had net debt of $88.1 million at December
31, 2019 compared to $98.7
million at the end of the first fiscal quarter of 2020 and
$104.5 million at the end of fiscal
2019. Net debt at the end of the second fiscal quarter of
2020 consisted primarily of long-term debt of $187.0 million and cash and equivalents of
$98.9 million of which $86.9 million was held by foreign
subsidiaries. Standex has repatriated approximately $11.9 million year-to-date in fiscal 2020 and
continues to expect to repatriate $35
million in total in fiscal 2020. The Company's net debt to
Adjusted EBITDA leverage ratio was 0.8x at the end of second fiscal
quarter of 2020.
- Cash Flow: Net cash provided by continuing operating
activities for the three months ended December 31, 2019 was $13.5 million compared to net cash provided
by continuing operating activities of $16.4
million in the prior year. The year-over-year decrease was
primarily due to a deferred compensation payment associated with a
prior acquisition which is now complete. Working capital
management continued to improve with working capital turns of 5.1x
in the second fiscal quarter of 2020 compared to 4.7x in the second
fiscal quarter of 2019 driven by focused collection efforts and
improved accounts payable management.
The Company generated free cash flow after capital expenditures of
$9.9 million compared to free cash
flow of $7.7 million in the second
fiscal quarter of 2019.
Conference Call Details
Standex will host a conference call for investors tomorrow,
February 4, 2020 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 February 4, 2020. To listen
to the teleconference playback, please dial (877) 344-7529 in the
U.S. or (412) 317-0088 internationally; the passcode is
10138673. The audio playback via phone will be available
through February 11, 2020. The
webcast replay also 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
including the impact of restructuring charges, purchase accounting,
insurance recoveries, discrete tax events, and acquisition 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: Engraving,
Electronics, Engineering Technologies, Hydraulics, and Food Service
Equipment 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: 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 food service equipment, automotive, construction, aerospace,
energy, oil and gas, transportation, consumer appliance 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, petroleum based products, refrigeration
components and certain materials used in electronics parts; 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 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 impact of the current coronavirus on our China supply chain as well as the demand for
our products and services in China; 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; and our ability to increase
manufacturing production to meet demand; 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
|
|
|
Six Months
Ended
|
|
|
|
December
31,
|
|
|
December
31,
|
(In thousands, except
per share data)
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
190,585
|
|
$
|
195,522
|
|
$
|
387,023
|
|
$
|
388,609
|
Cost of
sales
|
|
|
124,132
|
|
|
128,586
|
|
|
252,286
|
|
|
252,421
|
Gross
profit
|
|
|
66,453
|
|
|
66,936
|
|
|
134,737
|
|
|
136,188
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
|
47,126
|
|
|
45,693
|
|
|
95,801
|
|
|
91,165
|
Restructuring
costs
|
|
|
720
|
|
|
177
|
|
|
2,199
|
|
|
624
|
Acquisition related
costs
|
|
|
773
|
|
|
859
|
|
|
1,507
|
|
|
1,547
|
Other operating
(income) expense, net
|
|
|
-
|
|
|
-
|
|
|
(1,045)
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
|
17,834
|
|
|
20,207
|
|
|
36,275
|
|
|
42,852
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
1,928
|
|
|
3,123
|
|
|
4,050
|
|
|
5,368
|
Other (income)
expense, net
|
|
|
588
|
|
|
750
|
|
|
(328)
|
|
|
1,015
|
Total
|
|
|
2,516
|
|
|
3,873
|
|
|
3,722
|
|
|
6,383
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations before income taxes
|
|
|
15,318
|
|
|
16,334
|
|
|
32,553
|
|
|
36,469
|
Provision for income
taxes
|
|
|
2,909
|
|
|
3,860
|
|
|
7,695
|
|
|
9,702
|
Net income from
continuing operations
|
|
|
12,409
|
|
|
12,474
|
|
|
24,858
|
|
|
26,767
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
discontinued operations, net of tax
|
|
|
(171)
|
|
|
924
|
|
|
(182)
|
|
|
2,488
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
12,238
|
|
$
|
13,398
|
|
$
|
24,676
|
|
$
|
29,255
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
|
$
|
1.00
|
|
$
|
0.99
|
|
$
|
2.01
|
|
$
|
2.11
|
Income (loss) from
discontinued operations
|
|
|
(0.01)
|
|
|
0.07
|
|
|
(0.01)
|
|
|
0.20
|
Total
|
|
$
|
0.99
|
|
$
|
1.06
|
|
$
|
2.00
|
|
$
|
2.31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
|
$
|
1.00
|
|
$
|
0.98
|
|
$
|
2.00
|
|
$
|
2.10
|
Income (loss) from
discontinued operations
|
|
|
(0.01)
|
|
|
0.07
|
|
|
(0.01)
|
|
|
0.20
|
Total
|
|
$
|
0.99
|
|
$
|
1.05
|
|
$
|
1.99
|
|
|
2.30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Shares
Outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
12,376
|
|
|
12,636
|
|
|
12,359
|
|
|
12,667
|
Diluted
|
|
|
12,455
|
|
|
12,685
|
|
|
12,427
|
|
|
12,737
|
Standex
International Corporation
|
Condensed
Consolidated Balance Sheets
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
|
June
30,
|
(In
thousands)
|
|
|
2019
|
|
|
2019
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
98,919
|
|
$
|
93,145
|
Accounts
receivable, net
|
|
|
110,087
|
|
|
119,589
|
Inventories
|
|
|
108,513
|
|
|
88,645
|
Prepaid
expenses and other current assets
|
|
|
19,861
|
|
|
30,872
|
Income taxes
receivable
|
|
|
5,232
|
|
|
1,622
|
Total current assets
|
|
|
342,612
|
|
|
333,873
|
|
|
|
|
|
|
|
Property, plant,
equipment, net
|
|
|
146,245
|
|
|
148,024
|
Intangible assets,
net
|
|
|
111,667
|
|
|
118,660
|
Goodwill
|
|
|
282,207
|
|
|
281,503
|
Deferred tax
asset
|
|
|
12,544
|
|
|
14,140
|
Operating lease right
of use asset
|
|
|
42,959
|
|
|
-
|
Other non-current
assets
|
|
|
29,581
|
|
|
25,689
|
Total non-current assets
|
|
|
625,203
|
|
|
588,016
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
967,815
|
|
$
|
921,889
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
69,737
|
|
$
|
72,603
|
Accrued
liabilities
|
|
|
68,681
|
|
|
62,648
|
Income taxes
payable
|
|
|
6,822
|
|
|
5,744
|
Current Liabilities-
Discontinued Operations
|
|
|
34
|
|
|
620
|
Total current liabilities
|
|
|
145,274
|
|
|
141,615
|
|
|
|
|
|
|
|
Long-term
debt
|
|
|
186,980
|
|
|
197,610
|
Operating lease long
term liabilities
|
|
|
33,728
|
|
|
-
|
Accrued pension and
other non-current liabilities
|
|
112,229
|
|
|
118,351
|
Total non-current liabilities
|
|
|
332,937
|
|
|
315,961
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
Common
stock
|
|
|
41,976
|
|
|
41,976
|
Additional
paid-in capital
|
|
|
70,206
|
|
|
65,515
|
Retained
earnings
|
|
|
837,698
|
|
|
818,282
|
Accumulated
other comprehensive loss
|
|
|
(136,404)
|
|
|
(137,278)
|
Treasury
shares
|
|
|
(323,872)
|
|
|
(324,182)
|
Total stockholders'
equity
|
|
|
489,604
|
|
|
464,313
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
|
$
|
967,815
|
|
$
|
921,889
|
Standex
International Corporation and Subsidiaries
|
Statements of
Consolidated Cash Flows
|
(unaudited)
|
|
|
|
Six Months
Ended
|
|
|
|
December
31,
|
(In
thousands)
|
|
|
2019
|
|
|
2018
|
|
|
|
|
|
|
|
Cash Flows from
Operating Activities
|
|
|
|
|
|
|
Net income
|
|
$
|
24,676
|
|
$
|
29,255
|
Income (loss) from
discontinued operations
|
|
|
(182)
|
|
|
2,488
|
Income from
continuing operations
|
|
|
24,858
|
|
|
26,767
|
|
|
|
|
|
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and amortization
|
|
|
16,869
|
|
|
14,817
|
Stock-based compensation
|
|
|
4,820
|
|
|
2,029
|
Non-cash portion of restructuring charge
|
|
|
(149)
|
|
|
(132)
|
Life insurance benefit
|
|
|
(1,302)
|
|
|
-
|
Contributions to defined benefit plans
|
|
|
(1,932)
|
|
|
(499)
|
Net changes in
operating assets and liabilities
|
|
|
(21,342)
|
|
|
(29,132)
|
Net cash provided by
operating activities - continuing operations
|
|
|
21,822
|
|
|
13,850
|
Net cash provided by
(used in) operating activities - discontinued operations
|
|
|
(162)
|
|
|
5,411
|
Net cash provided by
(used in) operating activities
|
|
|
21,660
|
|
|
19,261
|
Cash Flows from
Investing Activities
|
|
|
|
|
|
|
Expenditures for property, plant and equipment
|
|
|
(10,671)
|
|
|
(16,192)
|
Expenditures for acquisitions, net of cash acquired
|
|
|
-
|
|
|
(95,918)
|
Proceeds from insurance recovery
|
|
|
10,000
|
|
|
-
|
Other investing activities
|
|
|
1,998
|
|
|
3,144
|
Net cash (used in)
investing activities from continuing operations
|
|
|
1,327
|
|
|
(108,966)
|
Net cash (used in
)investing activities from discontinued operations
|
|
|
-
|
|
|
2,690
|
Net cash (used in)
investing activities
|
|
|
1,327
|
|
|
(106,276)
|
Cash Flows from
Financing Activities
|
|
|
|
|
|
|
Proceeds from borrowings
|
|
|
34,700
|
|
|
509,500
|
Payments of debt
|
|
|
(45,500)
|
|
|
(387,500)
|
Contingent consideration payment
|
|
|
(872)
|
|
|
(910)
|
Activity under share-based payment plans
|
|
|
1,127
|
|
|
797
|
Purchase of treasury stock
|
|
|
(946)
|
|
|
(19,135)
|
Cash dividends paid
|
|
|
(5,186)
|
|
|
(4,825)
|
Net cash provided by
(used in) financing activities
|
|
|
(16,677)
|
|
|
97,927
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash
|
|
|
(536)
|
|
|
(2,340)
|
|
|
|
|
|
|
|
Net changes in cash
and cash equivalents
|
|
|
5,774
|
|
|
8,572
|
Cash and cash
equivalents at beginning of year
|
|
|
93,145
|
|
|
109,602
|
Cash and cash
equivalents at end of period
|
|
$
|
98,919
|
|
$
|
118,174
|
Standex
International Corporation
|
Selected Segment
Data
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Six Months
Ended
|
|
|
|
December
31,
|
|
|
December
31,
|
(In
thousands)
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
Net
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
Engraving
|
|
$
|
38,256
|
|
$
|
38,485
|
|
$
|
76,687
|
|
$
|
74,466
|
Electronics
Products
|
|
|
45,834
|
|
|
52,700
|
|
|
92,452
|
|
|
104,150
|
Engineering
Technologies
|
|
|
26,495
|
|
|
23,568
|
|
|
51,139
|
|
|
44,351
|
Hydraulics
Products
|
|
|
11,316
|
|
|
12,116
|
|
|
25,064
|
|
|
24,651
|
Food Service
Equipment
|
|
|
68,684
|
|
|
68,653
|
|
|
141,681
|
|
|
140,991
|
Total
|
|
$
|
190,585
|
|
$
|
195,522
|
|
$
|
387,023
|
|
$
|
388,609
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
|
|
|
|
|
|
|
|
|
|
|
Engraving
|
|
$
|
6,916
|
|
$
|
6,849
|
|
$
|
13,454
|
|
$
|
14,398
|
Electronics
Products
|
|
|
7,776
|
|
|
10,376
|
|
|
15,875
|
|
|
23,163
|
Engineering
Technologies
|
|
|
3,422
|
|
|
2,061
|
|
|
6,781
|
|
|
3,836
|
Hydraulics
Products
|
|
|
1,818
|
|
|
1,929
|
|
|
4,345
|
|
|
3,512
|
Food Service
Equipment
|
|
|
6,773
|
|
|
5,190
|
|
|
15,145
|
|
|
11,857
|
Restructuring
|
|
|
(720)
|
|
|
(177)
|
|
|
(2,199)
|
|
|
(624)
|
Acquisition Related
Costs
|
|
|
(773)
|
|
|
(859)
|
|
|
(1,507)
|
|
|
(1,547)
|
Other operating
(income) expense, net
|
|
|
-
|
|
|
-
|
|
|
1,045
|
|
|
-
|
Corporate
|
|
|
(7,378)
|
|
|
(5,162)
|
|
|
(16,664)
|
|
|
(11,743)
|
Total
|
|
$
|
17,834
|
|
$
|
20,207
|
|
$
|
36,275
|
|
$
|
42,852
|
Standex
International Corporation
|
|
|
Reconciliation of
GAAP to Non-GAAP Financial Measures
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
Six Months
Ended
|
|
|
|
|
|
|
December
31,
|
|
|
|
|
December
31,
|
|
|
(In thousands, except
percentages)
|
|
|
2019
|
|
|
2018
|
|
%
Change
|
|
|
2019
|
|
|
2018
|
|
%
Change
|
Adjusted income
from operations and adjusted net income from continuing
operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations, as reported
|
|
$
|
17,834
|
|
$
|
20,207
|
|
-11.7%
|
|
$
|
36,275
|
|
$
|
42,852
|
|
-15.3%
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
charges
|
|
|
720
|
|
|
177
|
|
|
|
|
2,199
|
|
|
624
|
|
|
Acquisition-related
costs
|
|
|
773
|
|
|
859
|
|
|
|
|
1,507
|
|
|
1,547
|
|
|
Fire insurance
recovery
|
|
|
-
|
|
|
-
|
|
|
|
|
(1,045)
|
|
|
-
|
|
|
Purchase accounting
expenses
|
|
|
-
|
|
|
55
|
|
|
|
|
-
|
|
|
511
|
|
|
Adjusted income
from operations
|
|
$
|
19,327
|
|
$
|
21,298
|
|
-9.3%
|
|
$
|
38,936
|
|
$
|
45,534
|
|
-14.5%
|
Interest and other
income (expense), net
|
|
|
(2,516)
|
|
|
(3,873)
|
|
|
|
|
(3,722)
|
|
|
(6,383)
|
|
|
Life insurance
benefit
|
|
|
-
|
|
|
-
|
|
|
|
|
(1,302)
|
|
|
-
|
|
|
Provision for income
taxes
|
|
|
(2,909)
|
|
|
(3,860)
|
|
|
|
|
(7,695)
|
|
|
(9,702)
|
|
|
Discrete and other tax
items
|
|
|
(722)
|
|
|
(779)
|
|
|
|
|
(722)
|
|
|
(779)
|
|
|
Tax impact of above
adjustments
|
|
|
(407)
|
|
|
(309)
|
|
|
|
|
(725)
|
|
|
(759)
|
|
|
Net income from
continuing operations, as adjusted
|
|
$
|
12,773
|
|
$
|
12,477
|
|
2.4%
|
|
$
|
24,770
|
|
$
|
27,911
|
|
-11.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA and
Adjusted EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
from continuing operations, as reported
|
|
$
|
12,409
|
|
$
|
12,474
|
|
|
|
$
|
24,858
|
|
$
|
26,767
|
|
|
Add back:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
|
2,909
|
|
|
3,860
|
|
|
|
|
7,695
|
|
|
9,702
|
|
|
Interest
expense
|
|
|
1,928
|
|
|
3,123
|
|
|
|
|
4,050
|
|
|
5,368
|
|
|
Depreciation and
amortization
|
|
|
8,489
|
|
|
8,162
|
|
|
|
|
16,869
|
|
|
14,817
|
|
|
EBITDA
|
|
$
|
25,735
|
|
$
|
27,619
|
|
-6.8%
|
|
$
|
53,472
|
|
$
|
56,654
|
|
-5.6%
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
charges
|
|
|
720
|
|
|
177
|
|
|
|
|
2,199
|
|
|
624
|
|
|
Acquisition-related
costs
|
|
|
773
|
|
|
859
|
|
|
|
|
1,507
|
|
|
1,547
|
|
|
Fire insurance
recovery
|
|
|
-
|
|
|
-
|
|
|
|
|
(1,045)
|
|
|
-
|
|
|
Life insurance
benefit
|
|
|
-
|
|
|
-
|
|
|
|
|
(1,302)
|
|
|
-
|
|
|
Purchase accounting
expenses
|
|
|
-
|
|
|
55
|
|
|
|
|
-
|
|
|
511
|
|
|
Adjusted
EBITDA
|
|
$
|
27,228
|
|
$
|
28,710
|
|
-5.2%
|
|
$
|
54,831
|
|
$
|
59,336
|
|
-7.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free operating
cash flow:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided
by operating activities - continuing operations, as
reported
|
|
$
|
13,507
|
|
$
|
16,421
|
|
|
|
$
|
21,822
|
|
$
|
13,850
|
|
|
Less: Capital
expenditures
|
|
|
(3,637)
|
|
|
(8,727)
|
|
|
|
|
(10,671)
|
|
|
(16,192)
|
|
|
Free operating
cash flow
|
|
$
|
9,870
|
|
$
|
7,694
|
|
|
|
$
|
11,151
|
|
$
|
(2,342)
|
|
|
Standex
International Corporation
|
Reconciliation of
GAAP to Non-GAAP Financial Measures
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
Six Months
Ended
|
|
|
Adjusted earnings
per share from continuing operations
|
|
|
December
31,
|
|
%
Change
|
|
|
December
31,
|
|
%
Change
|
|
|
2019
|
|
|
2018
|
|
|
|
2019
|
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per share from continuing operations, as reported
|
|
$
|
1.00
|
|
$
|
0.98
|
|
2.0%
|
|
$
|
2.00
|
|
$
|
2.10
|
|
-4.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
charges
|
|
|
0.04
|
|
|
0.01
|
|
|
|
|
0.13
|
|
|
0.04
|
|
|
|
Acquisition-related
costs
|
|
|
0.05
|
|
|
0.05
|
|
|
|
|
0.09
|
|
|
0.09
|
|
|
|
Discrete tax
items
|
|
|
(0.06)
|
|
|
(0.06)
|
|
|
|
|
(0.06)
|
|
|
(0.06)
|
|
|
|
Fire insurance
recovery
|
|
|
-
|
|
|
-
|
|
|
|
|
(0.06)
|
|
|
-
|
|
|
|
Life insurance
benefit
|
|
|
-
|
|
|
-
|
|
|
|
|
(0.10)
|
|
|
-
|
|
|
|
Purchase accounting
expenses
|
|
|
-
|
|
|
-
|
|
|
|
|
-
|
|
|
0.03
|
|
|
Diluted earnings
per share from continuing operations, as adjusted
|
|
$
|
1.03
|
|
$
|
0.98
|
|
5.1%
|
|
$
|
2.00
|
|
$
|
2.20
|
|
-9.1%
|
View original
content:http://www.prnewswire.com/news-releases/standex-reports-second-quarter-fiscal-2020-financial-results-300997975.html
SOURCE Standex International Corporation