STANDEX REPORTS FISCAL FOURTH QUARTER 2022 FINANCIAL RESULTS

Rhea-AI Summary

Standex International Corporation (SXI) reported strong fourth quarter results for fiscal 2022, with net sales increasing by 4.7% year-over-year to $184.7 million. The adjusted operating margin reached a record 13.9%, up from 13.3% the previous year. The Electronics segment achieved record sales of $304 million, with total backlog increasing 22% year-over-year. Free cash flow generated in the quarter was approximately $19 million. Standex anticipates similar revenue and operating margins in the first quarter of fiscal 2023, with the Electronics segment expected to drive growth.

Positive

• Record adjusted operating margin of 13.9%, up from 13.3% YoY.
• Free cash flow generation of approximately $19 million in Q4.
• Electronics segment achieved record revenue of $304 million.
• 22% year-over-year increase in total backlog realizable in under one year.
• Strong performance in fast-growing markets such as electric vehicles and renewable energy.

Negative

• GAAP operating income decreased by 14.3% year-over-year.
• EBITDA decreased by 14.4% year-over-year.
• Diluted EPS on a GAAP basis decreased by 6.8% YoY.
• Overall revenue decreased 2.4% quarter-over-quarter.

• GAAP Operating Margin of 10.4% and Record Adjusted Operating Margin of 13.9% in Fiscal Fourth Quarter; Fifth Consecutive Quarter of Record Consolidated Adjusted Operating Margin
• 14.7% Organic Revenue Growth in Fiscal 2022 Including Record Electronics Segment Revenue of $304 Million; Electronics Sales and Earnings Have More Than Doubled Since Fiscal 2017
• Free Cash Flow Generation in Fiscal Fourth Quarter of Approximately $19 Million Adding to Substantial Financial Strength
• Expect To Further Build on Momentum with Continued Improvement in Key Financial Metrics in Fiscal 2023

SALEM, N.H., Aug. 4, 2022 /PRNewswire/ -- Standex International Corporation (NYSE: SXI) today reported financial results for the fourth quarter of fiscal year 2022 ending June 30, 2022.

Summary Financial Results - Total Standex
($M except EPS and Dividends)	4Q22	4Q21	3Q22	Y/Y	Q/Q
Net Sales	$184.7	$176.4	$189.3	4.7 %	-2.4 %
Operating Income - GAAP	$19.2	$22.4	$24.5	-14.3 %	-21.4 %
Operating Income - Adjusted	$25.7	$23.5	$26.1	9.2 %	-1.7 %
Operating Margin - GAAP	10.4 %	12.7 %	12.9 %	- 230 bps	- 250 bps
Operating Margin - Adjusted	13.9 %	13.3 %	13.8 %	+ 60 bps	+10 bps
Net Income from Continuing Ops - GAAP	$13.2	$14.4	$17.4	-8.2 %	-24.0 %
Net Income from Continuing Ops - Adjusted	$18.6	$17.1	$18.7	9.2 %	-0.1 %
EBITDA	$26.0	$30.4	$31.3	-14.4 %	-16.9 %
EBITDA margin	14.1 %	17.2 %	16.5 %	-310 bps	- 240 bps
Adjusted EBITDA	$32.5	$31.5	$33.0	3.1 %	-1.5 %
Adjusted EBITDA margin	17.6 %	17.9 %	17.4 %	- 30 bps	+20 bps
Diluted EPS - GAAP	$1.10	$1.18	$1.44	-6.8 %	-23.6 %
Diluted EPS - Adjusted	$1.54	$1.40	$1.54	10.0 %	0.0 %
Dividends per share	$0.26	$0.24	$0.26	8.3 %	0.0 %
Free Cash Flow	$18.8	$26.4	$8.5	-28.9 %	120.4 %
Net Debt to EBITDA	0.5x	0.6x	0.5x	-5.3 %	5.9 %

 

Fourth Quarter Fiscal 2022 Results 

Commenting on the quarter's results, President and Chief Executive Officer David Dunbar said, "We are pleased with our strong fourth quarter performance which concluded a very successful fiscal 2022. Record consolidated adjusted operating margin of 13.9%, in fiscal fourth quarter 2022 represented a 60 basis point increase year-over-year and a 10 basis point improvement sequentially, despite the impact of the COVID-19 lockdown in China. Each of our five company business segments reported adjusted operating margin of at least 15%, reflecting continued successful company-wide execution on price realization, productivity, and efficiency actions. Sales from fast growth markets such as electric vehicles, green energy, and the commercialization of space increased by 50% to $59 million in fiscal 2022. We are excited about the increasing number of new business opportunities and are well positioned to build on our momentum with improved financial performance in fiscal 2023.

"Highlighting our strengthened operating performance and strategic positioning, the Electronics segment achieved a significant milestone with record sales of $304 million in fiscal 2022. Both revenue and segment operating income have doubled over the past five years as we have aggressively pursued new market opportunities in electric vehicles, renewable energy, and smart grid.  Total company backlog realizable in under one year ended at approximately $256 million, representing an approximately 22% increase year-over-year and 4% decrease sequentially. 

"Standex's consistent cash generation and substantial financial flexibility position us well to pursue a very active pipeline of organic and inorganic growth opportunities. We realized approximately $19 million in free cash flow in fiscal fourth quarter 2022 and had approximately $313 million in available liquidity and a net debt to adjusted EBITDA ratio of approximately 0.5x.

"We are entering fiscal 2023 well positioned for further growth and continued improved financial performance as we continue to build on our portfolio of high-quality businesses. Our deep technical and applications expertise is favorably aligned with emerging and sustainable global trends in areas such as renewable energy, electric vehicles, defense, human health, and commercialization of space. In addition, our ongoing operational excellence initiatives, increased investment in R&D and strong balance sheet provide further leverage to drive our growth strategy and trajectory of profitability." concluded Dunbar.

Fiscal First Quarter 2023 Outlook

In fiscal first quarter 2023, the Company expects revenue and operating margin to be similar to fiscal fourth quarter 2022, with an increase in revenue and operating margin year-over-year. The Company expects that the Electronics segment will be the primary revenue driver with a moderate increase compared to fiscal fourth quarter 2022.  This will be partially offset by the Engineering Technologies segment which is expected to have a moderate to significant decrease in revenue followed by a significant increase in fiscal second quarter 2023 due to project timing. Compared to fiscal fourth quarter 2022, Specialty Solutions segment revenue is expected to be similar, while Engraving and Scientific sales are expected to have a slight sequential revenue decrease.

Fourth Quarter Segment Operating Performance

Electronics (39% of sales; 46% of segment operating income)

	4Q22	4Q21	% Change
Electronics ($M)
Revenue	$71.9	$72.8	-1.2 %
GAAP Operating Income	15.8	15.7	0.4 %
GAAP Operating Margin	22.0 %	21.6 %
Adjusted Operating Income*	16.2	15.7	3.0 %
Adjusted Operating Margin*	22.5 %	21.6 %

*Excludes purchase accounting expenses of $0.4M associated with Sensor Solutions in Q4 FY22

Revenue decreased approximately $0.9 million or 1.2% year-over-year reflecting 2.5% organic growth and a 2.1% contribution from acquisitions offset by a 5.8% impact from foreign exchange. End markets including renewable energy and electric vehicles remained favorable.  However, as expected, the COVID-19 lockdown in China impacted sales by approximately $6 million in fiscal fourth quarter 2022.

Electronics segment backlog realizable in under one year of approximately $149 million increased 26% year-over-year and was sequentially similar to fiscal third quarter 2022.  The segment had a book to bill ratio of 1.2 at the end of the fiscal fourth quarter.

Adjusted operating income increased approximately $0.5 million or 3% year-over-year which primarily reflected price realization and productivity actions. Adjusted operating income excludes approximately $0.4 million of purchase accounting expenses associated with the acquisition of Sensor Solutions.  

In fiscal first quarter 2023, on a sequential basis, the Company expects a moderate increase in revenue due to continued positive end market demand trends and some recovery of sales deferred due to the COVID-19 lockdown in China. The Company expects a slight increase in operating margin reflecting the sales increase partially offset by product mix. 

Engraving (20% of sales; 18% of segment operating income)

	4Q22	4Q21	% Change
Engraving ($M)
Revenue	$37.2	$36.6	1.6 %
Operating Income	6.0	5.6	7.0 %
Operating Margin	16.2 %	15.4 %

           

Revenue increased approximately $0.6 million or 1.6% year-over-year reflecting the impact of project mix.  Operating income increased $0.4 million or 7% year-over-year due to sales growth and productivity and efficiency actions.  In fiscal first quarter 2023, the Company expects a slight sequential decrease in revenue and operating margin due to project mix partially offset by operational improvements.

Scientific (10% of sales; 11% of segment operating income)

	4Q22	4Q21	% Change
Scientific ($M)
Revenue	$18.8	$20.6	-9.1 %
Operating Income	3.7	4.1	-10.2 %
Operating Margin	19.8 %	20.0 %

 

As expected, revenue decreased approximately $1.9 million or 9.1% year-over-year reflecting ongoing sales in core end markets such as pharmaceutical, clinical laboratories, and academic institutions offset by lower demand associated with COVID-19 vaccine storage. Operating income decreased approximately $0.4 million or 10.2% year-over-year due to the lower volume.

In fiscal first quarter 2023, on a sequential basis, the Company expects a slight revenue and operating margin decrease due to lower COVID vaccine storage demand. 

Engineering Technologies (12% of sales; 9% of segment operating income)

	4Q22	4Q21	% Change
Engineering Technologies ($M)
Revenue	$21.6	$20.5	5.3 %
Operating Income	3.2	3.1	4.8 %
Operating Margin	15.0 %	15.1 %

 

Revenue increased approximately $1.1 million or 5.3% year-over-year primarily due to growth in commercial aviation and energy end market demand. Operating income grew approximately $0.1 million or 4.8% year-over-year reflecting volume growth and project mix. 

In fiscal first quarter 2023, on a sequential basis, the Company expects a moderate to significant decrease in revenue reflecting timing of projects and a slight decrease in operating margin, with productivity initiatives mostly offsetting impact of volume decline. Revenue and operating margin are expected to increase significantly due to an increased level of project activity in fiscal second quarter 2023. 

Specialty Solutions (19% of sales; 16% of segment operating income)

	4Q22	4Q21	% Change
Specialty Solutions ($M)
Revenue	$35.3	$25.8	36.4 %
Operating Income	5.4	3.0	80.4 %
Operating Margin	15.5 %	11.6 %

 

Specialty Solutions revenue increased approximately $9.4 million or 36.4% year-over-year due to volume growth in food service equipment and refuse end markets and impact of price realization actions at Hydraulics.  Operating income grew approximately $2.4 million or 80.4% year-over-year reflecting the volume increase combined with pricing and efficiency actions.   

In fiscal first quarter 2023, on a sequential basis, the Company revenue to be similar and operating margin to slightly increase reflecting end market demand trends and the impact of pricing and productivity initiatives.

Capital Allocation

• Share Repurchase: During the fiscal fourth quarter, the Company repurchased approximately 107,314 shares for approximately $10 million. There was approximately $90.6 million remaining on the company's current share repurchase authorization at the end of the fiscal fourth quarter 2022.  
• Capital Expenditures: In fiscal fourth quarter 2022, Standex's capital expenditures were $10.8 million compared to $6.1 million in the fiscal fourth quarter of 2021. The Company expects fiscal year 2023 capital expenditures between $35 million and $40 million with key investments focused on growth initiatives and capacity expansion Capital expenditures were $23.9 million in fiscal 2022.
• Dividend:  On July 28, 2022, the Company declared a quarterly cash dividend of $0.26 per share, an approximately 8.3% year-over-year increase. The dividend is payable on August 25, 2022, to shareholders of record on August   11, 2022.

Balance Sheet and Cash Flow Highlights

• Net Debt: Standex had net debt of $70 million on June 30, 2022, compared to $63.1 million at the end of fiscal 2021 and $65.8 million at the end of fiscal third quarter 2022. Net debt for the fourth quarter of 2022 consisted primarily of long-term debt of approximately $175 million and cash and equivalents of $104.8 million of which approximately $94 million held by foreign subsidiaries.
  Standex repatriated approximately $10 million in fiscal fourth quarter 2022 and $30.8 million in fiscal 2022. The company expects to repatriate between $30 million and $35 million in fiscal 2023.

• Cash Flow:  Net cash provided by continuing operating activities for the three months ended June 30, 2022, was $29.5 million compared to net cash provided by continuing operating activities of $32.5 million in the prior year's quarter. The Company generated free cash flow after capital expenditures of $18.8 million compared to free cash flow after capital expenditures of $26.4 million in the fiscal fourth quarter of 2021. 

Conference Call Details

Standex will host a conference call for investors tomorrow, August 5, 2022, 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 5, 2023. To listen to the teleconference playback, please dial in the U.S. (877)-344-7529  or (412)-317-0088  internationally; the passcode is 8952199. The audio playback via phone will be available through August 12, 2022. 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 including the impact of restructuring charges, purchase accounting, insurance recoveries, discrete tax events, loss on sale of a business unit, 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: 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						Year Ended
			June 30,						June 30,
(In thousands, except per share data)			2022			2021			2022			2021
Net sales		$	184,739		$	176,435		$	735,339		$	656,232
Cost of sales			118,183			110,627			465,393			414,971
Gross profit			66,556			65,808			269,946			241,261
Selling, general and administrative expenses			41,301			42,305			169,890			163,063
Loss on sale of business			-			-			-			14,624
Restructuring costs			1,930			1,000			4,399			3,478
Acquisition related costs			57			81			1,618			931
Other operating (income) expense, net			4,045			-			5,745			-
Income from operations			19,223			22,422			88,294			59,165
Interest expense			1,390			1,589			5,874			5,992
Other non-operating (income) expense, net			480			400			1,131			473
Total			1,870			1,989			7,005			6,465
Income from continuing operations before income taxes			17,353			20,433			81,289			52,700
Provision for income taxes			4,130			6,002			19,807			14,157
Net income from continuing operations			13,223			14,431			61,482			38,543
Income (loss) from discontinued operations, net of tax			46			(482)			(89)			(2,070)
Net income		$	13,269		$	13,949		$	61,393		$	36,473
Basic earnings per share:
Income (loss) from continuing operations		$	1.11		$	1.20		$	5.13		$	3.17
Income (loss) from discontinued operations			0.01			(0.04)			-			(0.17)
Total		$	1.12		$	1.16		$	5.13		$	3.00
Diluted earnings per share:
Income (loss) from continuing operations		$	1.10		$	1.18		$	5.07		$	3.14
Income (loss) from discontinued operations			-			(0.04)			(0.01)			(0.17)
Total		$	1.10		$	1.14		$	5.06		$	2.97
Average Shares Outstanding
Basic			11,876			12,068			11,974			12,156
Diluted			12,033			12,213			12,123			12,258

 

Standex International Corporation
Condensed Consolidated Balance Sheets
(unaudited)
			June 30,			June 30,
(In thousands)			2022			2021
ASSETS
Current assets:
Cash and cash equivalents		$	104,844		$	136,367
Accounts receivable, net			117,075			109,883
Inventories			105,339			91,862
Prepaid expenses and other current assets			45,210			23,504
Income taxes receivable			6,530			12,750
Total current assets			378,998			374,366
Property, plant, equipment, net			128,584			133,373
Intangible assets, net			85,770			98,929
Goodwill			267,906			278,054
Deferred tax asset			8,186			9,566
Operating lease right-of-use asset			39,119			37,276
Other non-current assets			25,876			30,659
Total non-current assets			555,441			587,857
Total assets		$	934,439		$	962,223
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	74,520		$	74,756
Accrued liabilities			67,773			61,717
Income taxes payable			8,475			7,236
Total current liabilities			150,768			143,709
Long-term debt			174,830			199,490
Operating lease long-term liabilities			31,357			29,041
Accrued pension and other non-current liabilities			78,141			83,558
Total non-current liabilities			284,328			312,089
Stockholders' equity:
Common stock			41,976			41,976
Additional paid-in capital			91,200			80,788
Retained earnings			901,421			852,489
Accumulated other comprehensive loss			(153,312)			(116,140)
Treasury shares			(381,942)			(352,688)
Total stockholders' equity			499,343			506,425
Total liabilities and stockholders' equity		$	934,439		$	962,223

 

Standex International Corporation and Subsidiaries
Statements of Consolidated Cash Flows
(unaudited)
				Year Ended
				June 30,
(In thousands)				2022			2021
Cash Flows from Operating Activities
Net income		$		61,393		$	36,473
Income (loss) from discontinued operations				(89)			(2,070)
Income from continuing operations				61,482			38,543
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization				29,697			33,241
Stock-based compensation				11,169			8,368
Non-cash portion of restructuring charge				1,691			(489)
Gain from extinguishment of debt - PPP loan				-			(713)
Loss on sale of business				-			14,624
Contributions to defined benefit plans				(515)			(8,120)
Net changes in operating assets and liabilities				(25,387)			(3,588)
Net cash provided by operating activities - continuing operations				78,137			81,866
Net cash provided by (used in) operating activities - discontinued operations				(421)			1,716
Net cash provided by (used in) operating activities				77,716			83,582
Cash Flows from Investing Activities
Expenditures for property, plant and equipment				(23,891)			(21,752)
Expenditures for acquisitions, net of cash acquired				(12,978)			(27,406)
Proceeds from sale of business				-			11,678
Other investing activities				5,825			(1,611)
Net cash (used in) investing activities				(31,044)			(39,091)
Cash Flows from Financing Activities
Proceeds from borrowings				-			17,000
Payments of debt				(25,000)			(17,000)
Contingent consideration payment				(2,167)			(356)
Activity under share-based payment plans				1,415			1,273
Purchase of treasury stock				(31,425)			(21,200)
Cash dividends paid				(12,249)			(11,449)
Net cash provided by (used in) financing activities				(69,426)			(31,732)
Effect of exchange rate changes on cash				(8,769)			4,799
Net changes in cash and cash equivalents				(31,523)			17,558
Cash and cash equivalents at beginning of year				136,367			118,809
Cash and cash equivalents at end of period		$		104,844		$	136,367

 

Standex International Corporation
Selected Segment Data
(unaudited)
			Three Months Ended						Year Ended
			June 30,						June 30,
(In thousands)			2022			2021			2022			2021
Net Sales
Electronics		$	71,939		$	72,844		$	304,290		$	253,369
Engraving			37,218			36,639			146,255			147,016
Scientific			18,771			20,645			83,850			79,421
Engineering Technologies			21,559			20,471			78,117			75,562
Specialty Solutions			35,252			25,836			122,827			100,864
Total		$	184,739		$	176,435		$	735,339		$	656,232
Income from operations
Electronics		$	15,804		$	15,739		$	70,428		$	46,600
Engraving			6,019			5,626			21,825			22,510
Scientific			3,708			4,127			17,861			18,240
Engineering Technologies			3,236			3,088			8,776			6,164
Specialty Solutions			5,394			2,990			15,579			14,358
Restructuring			(1,930)			(1,000)			(4,399)			(3,478)
Loss on sale of business			-			-			-			(14,624)
Acquisition related costs			(57)			(81)			(1,618)			(931)
Corporate			(8,906)			(8,067)			(34,413)			(29,674)
Other operating income (expense), net			(4,045)			-			(5,745)			-
Total		$	19,223		$	22,422		$	88,294		$	59,165

 

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)				2022			2021		% Change			2022			2021		% Change
Adjusted income from operations and adjusted net income from continuing operations:
Net Sales			$	184,739		$	176,435		4.7 %		$	735,339		$	656,232		12.1 %
Income from operations, as reported			$	19,223		$	22,422		-14.3 %		$	88,294		$	59,165		49.2 %
	Income from operations margin			10.4 %			12.7 %					12.0 %			9.0 %
Adjustments:
	Restructuring charges			1,930			1,000					4,399			3,478
	Acquisition-related costs			57			81					1,618			931
	Litigation charge			4,045			-					5,745			-
	Loss on sale of business			-			-					-			14,624
	Purchase accounting expenses			404			-					435			592
Adjusted income from operations			$	25,659		$	23,503		9.2 %		$	100,491		$	78,790		27.5 %
	Adjusted income from operations margin			13.9 %			13.3 %					13.7 %			12.0 %
	Interest and other income (expense), net			(1,870)			(1,989)					(7,005)			(6,465)
	Provision for income taxes			(4,130)			(6,002)					(19,807)			(14,157)
	Discrete and other tax items			397			1,774					397			1,578
	Tax impact of above adjustments			(1,429)			(224)					(2,919)			(3,434)
Net income from continuing operations, as adjusted			$	18,627		$	17,062		9.2 %		$	71,157		$	56,312		26.4 %
EBITDA and Adjusted EBITDA:
Net income (loss) from continuing operations, as reported			$	13,223		$	14,431		-8.4 %		$	61,482		$	38,543
	Net income from continuing operations margin			7.2 %			8.2 %					8.4 %			5.9 %
Add back:
	Provision for income taxes			4,130			6,002					19,807			14,157
	Interest expense			1,390			1,589					5,874			5,992
	Depreciation and amortization			7,286			8,398					29,697			33,241
EBITDA			$	26,029		$	30,420		-14.4 %		$	116,860		$	91,933		27.1 %
	EBITDA Margin			14.1 %			17.2 %					15.9 %			14.0 %
Adjustments:
	Restructuring charges			1,930			1,000					4,399			3,478
	Acquisition-related costs			57			81					1,618			931
	Litigation charge			4,045			-					5,745			-
	Loss on sale of business			-			-					-			14,624
	Purchase accounting expenses			404			-					435			592
Adjusted EBITDA			$	32,465		$	31,501		3.1 %		$	129,057		$	111,558		15.7 %
	Adjusted EBITDA Margin			17.6 %			17.9 %					17.6 %			17.0 %
Free cash flow:
Net cash provided by operating activities - continuing operations, as reported			$	29,510		$	32,528				$	78,137		$	81,866
Less: Capital expenditures				(10,753)			(6,140)					(23,891)		#	(21,752)
Free operating cash flow			$	18,757		$	26,388				$	54,246		$	60,114

 

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,
				2022			2021		% Change			2022			2021		% Change
Diluted earnings per share from continuing operations, as reported			$	1.10		$	1.18		-6.8 %		$	5.07		$	3.14		61.5 %
Adjustments:
	Restructuring charges			0.12			0.06					0.28			0.22
	Acquisition-related costs			-			0.01					0.10			0.06
	Litigation charge			0.26			-					0.36			-
	Loss on sale of business			-			-								1.01
	Discrete tax items			0.03			0.15					0.03			0.13
	Purchase accounting expenses			0.03			-					0.03			0.04
Diluted earnings per share from continuing operations, as adjusted			$	1.54		$	1.40		10.0 %		$	5.87		$	4.60		27.6 %

 

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SOURCE Standex International Corporation

FAQ

What were Standex's Q4 2022 earnings results for SXI?

Standex reported Q4 2022 net sales of $184.7 million, a 4.7% increase year-over-year, with an adjusted operating margin of 13.9%.

How did Standex's Electronics segment perform in fiscal 2022?

The Electronics segment achieved record sales of $304 million, reflecting strong growth in electric vehicles and renewable energy markets.

What is the outlook for Standex in Q1 2023?

Standex expects Q1 2023 revenue and operating margin to be similar to Q4 2022, driven primarily by the Electronics segment.

What was the free cash flow for Standex in Q4 2022?

Standex generated approximately $19 million in free cash flow during the fiscal fourth quarter.

Did Standex increase its dividend in 2022?

Yes, Standex declared a quarterly dividend of $0.26 per share, an 8.3% increase year-over-year.