Standex Reports Fiscal Second Quarter 2021 Financial Results

Rhea-AI Summary

Standex International Corporation (NYSE:SXI) reported its 2Q21 financial results, demonstrating a modest year-over-year revenue growth of 1.7% to $156.3 million. Operating income decreased by 5.1% to $16.7 million, while net income from continuing operations fell by 2.3% to $12.0 million. Adjusted EBITDA remained stable at $26.2 million, with a 16.8% margin. Free cash flow surged significantly by 370.7% to $17 million. The company aims for a mid-single digit organic revenue growth and a robust EBITDA margin exceeding 20% in the long term.

Positive

• Free cash flow increased by 370.7% to $17 million in 2Q21.
• Achieved a 95% free cash flow to net income conversion rate in the first half of fiscal 2021.
• Electronics segment revenue rose 31.2% year-over-year, contributing significantly to overall growth.
• Targeting mid-single digit organic revenue growth and over 20% EBITDA margin in the long term.

Negative

• Operating income decreased by 5.1% year-over-year.
• Net income from continuing operations fell by 2.3% compared to the previous year.
• Revenue in the Engineering Technologies segment dropped by 33.9% year-over-year.

SALEM, N.H., Feb. 4, 2021 /PRNewswire/ -- Standex International Corporation (NYSE:SXI) today reported financial results for the second quarter of fiscal year 2021 ending December 31, 2020.

Summary Financial Results – Total Standex
($M except EPS and Dividends)	2Q21	2Q20 1	1Q21	Y/Y	Q/Q
Net Sales	$156.3	$153.7	$151.3	1.7%	3.3%
Operating Income	$16.7	$17.6	$14.4	-5.1%	16.6%
Net Income from Continuing Ops	$12.0	$12.3	$10.3	-2.3%	16.1%
EBITDA	$25.1	$25.1	$22.7	0.0%	10.6%
EBITDA margin	16.1%	16.4%	15.0%	-30 bps	+110 bps
Adjusted EBITDA	$26.2	$26.6	$24.8	-1.6%	5.6%
Adjusted EBITDA margin	16.8%	17.3%	16.4%	- 50 bps	+40 bps
Diluted EPS	$0.98	$0.99	$0.84	-1.0%	16.7%
Adjusted EPS	$1.05	$0.99	$0.96	6.1%	9.4%
Dividends per share	0.24	0.22	0.22	9.1%	9.1%
2Q Free Cash Flow	$17.0	$3.6	$4.4	370.7%	284.0%
Net Debt to EBITDA	0.9x	0.8x	1.1x	12.0%	-15.5%

1Fiscal second quarter 2020 results have been adjusted to reflect the divestiture of Refrigerated Solutions Group on April 16, 2020

Second Quarter Fiscal 2021 Results 

Commenting on the quarter's results, President and Chief Executive Officer David Dunbar said, "We are very pleased with our second quarter results as our performance improved sequentially, end markets continued to show signs of recovery, and we are well-positioned for a stronger second half in fiscal 2021. In particular, the Electronics and Scientific segments experienced strong demand and have healthy backlogs. Our productivity initiatives are becoming further embedded within the organization, demonstrated by the sequential increase in adjusted operating margin in the quarter. We remain on track to deliver over $7 million in annual savings in fiscal 2021 from our cost actions.

"Our financial profile also further strengthened in the second quarter.   We reported free cash flow of $17 million and have generated a 95% free cash flow to net income conversion rate through the first half of fiscal 2021.  We ended the quarter with approximately $200 million in available liquidity and a net debt to adjusted EBITDA ratio of 0.9x. We continued to repatriate cash, approximately $17 million in the quarter, and are on track to repatriate about $35 million in fiscal 2021.  With our financial position further strengthening, we expect to remain active in opportunistically repurchasing shares.

"In the second quarter, we continued to build on our solid start to the fiscal year and expect stronger results in the second half of fiscal 2021, both sequentially and year-over-year.  We are actively engaged with our customers regarding emerging global trends that will shape the future of our end markets such as electric vehicles, renewable energy and 5G.  Our technical expertise and strength of client relationships position us well for these opportunities as we continue to build on our portfolio of high-quality businesses.  Our ongoing productivity and efficiency initiatives provide further opportunity to leverage these trends," said Mr. Dunbar.

Outlook

"In fiscal third quarter 2021, we expect a moderate revenue and operating margin improvement compared to fiscal second quarter 2021 results.  This reflects a sequential revenue increase at the Electronics, Scientific, Engineering Technologies, and Specialty Solutions segments. Engraving revenue is expected to decline sequentially reflecting both geographic mix and timing of projects but recover in fiscal fourth quarter 2021.   

"Over the past few years, we have meaningfully transformed our portfolio around businesses with attractive growth and margin profiles, as well as strong end market and customer value propositions.  As a result of these substantial changes, we believe it is now appropriate to provide a longer-term financial outlook.

"Specifically, we are targeting mid-single digit organic revenue growth on a compound annual basis, assuming continued macro-economic recovery, and an EBITDA margin in excess of 20%.  We believe a free cash flow conversion ratio of approximately 100% is achievable under these assumptions.  It is our expectation that with this financial performance we will increase our return on invested capital to above 12%. Finally, with our substantial financial flexibility, we plan to continue to execute on an active pipeline of organic and inorganic growth opportunities," concluded Dunbar.

Second Quarter Segment Operating Performance

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

	2Q21	2Q20	% Change
Electronics ($M)
Revenue	$60.2	$45.8	31.2%
Operating Income	10.0	7.8	28.1%
Operating Margin	16.6%	17.0%

Revenue increased approximately $14.3 million or 31.2% year-over-year reflecting a 14.5% organic growth rate and 3.6% increase related to foreign exchange.  This growth reflected a broad-based geographical recovery with positive trends in markets such as automotive, including electric vehicles, appliances, and semiconductor equipment. The recent Renco acquisition contributed approximately $6 million to revenue or approximately 42% of the increase in year-over-year growth. 

Operating income increased approximately $2.2 million or 28.1% year-over-year reflecting operating leverage associated with revenue growth, productivity initiatives, and profit contribution from Renco partially offset by increased raw material prices.

The Company expects a moderate increase in revenue and operating margin compared to fiscal second quarter 2021 due to further growth for relays in solar and electric vehicle applications as well as recovery in reed switch demand in transportation end markets. 

Engraving (24% of sales; 26% of segment operating income)

	2Q21	2Q20	% Change
Engraving ($M)
Revenue	$38.0	$38.3	-0.8%
Operating Income	6.5	6.9	-6.0%
Operating Margin	17.1%	18.1%

Revenue decreased approximately $0.3 million or 0.8% year-over-year and operating income was lower by approximately $0.4 million or 6% year-over-year.  The results reflected volume decline associated with the economic impact of COVID-19 partially mitigated by ongoing productivity and expense savings initiatives.  Sequentially, Engraving revenue increased 4.3% and operating margin improved approximately 100 basis points, reflecting a more favorable geographic mix and read out of productivity and cost actions.   

In fiscal third quarter 2021, the Company expects a slight revenue decline and a moderate decline in operating margin compared to fiscal second quarter 2021, reflecting a less favorable geographic mix and timing of projects. The Company expects an increase in Engraving revenue and operating margin on a sequential and year-over-year basis in fiscal fourth quarter 2021.      

Scientific (11% of sales; 17% of segment operating income)

	2Q21	2Q20	% Change
Scientific ($M)
Revenue	$17.9	$15.4	16.1%
Operating Income	4.2	4.1	4.4%
Operating Margin	23.7%	26.3%

Revenue increased approximately $2.5 million or 16.1% year-over-year, reflecting positive trends at retail pharmaceutical chains and medical distribution companies, much of it associated with the demand for COVID vaccine storage. Operating income increased $0.1 million or 4.4% year-over-year, reflecting the volume increase balanced with investments to support growth opportunities. 

In fiscal third quarter 2021, the Company expects a moderate to strong sequential increase in revenue driven by continued COVID-19 vaccine-storage demand. The Company expects operating margin to be slightly ahead of the second quarter results, reflecting volume increase balanced with reinvestment in the business for R&D and growth opportunities.

Engineering Technologies (11% of sales; 5% of segment operating income)

	2Q21	2Q20	% Change
Engineering Technologies ($M)
Revenue	$17.5	$26.5	-33.9%
Operating Income	1.4	3.4	-60.2%
Operating Margin	7.8%	12.9%

On a year-over-year basis, Engineering Technologies revenue and operating income decreased approximately $9.0 million or 33.9% and $2.1 million or 60.2%, respectively.  This reflected the economic impact of COVID-19 on the commercial aviation market, especially engine parts manufacturing.  On a sequential basis, operating margin increased approximately 500 basis points on a similar revenue level to fiscal first quarter 2021 as a result of product mix and ongoing productivity actions.   

In fiscal third quarter 2021, the Company expects a moderate increase in revenue primarily due to the early stages of recovery in the commercial aviation end market.  However. the Company expects operating margin to be sequentially similar to the second fiscal quarter of 2021 due to a higher sales mix of lower margin engine parts, partially offset by productivity initiatives.    

Specialty Solutions (15% of sales; 13% of segment operating income)

	2Q21	2Q20	% Change
Specialty Solutions ($M)
Revenue	$22.8	$27.7	-17.8%
Operating Income	3.2	4.3	-26.0%
Operating Margin	14.1%	15.7%

On a year-over-year basis, Specialty Solutions revenue decreased approximately $4.9 million or 17.8% year-over-year with an operating income decline of $1.1 million or 26.0%. This reflected the economic impact of the COVID-19 pandemic on this segment's end markets.  On a sequential basis, the sales decline was primarily associated with seasonality and a lower number of shipping days in the quarter.  

In fiscal third quarter 2021, the Company expects a moderate sequential increase in revenue and in operating margin, reflecting a gradual recovery in the food service industry and strong order trends in the refuse markets.  

Capital Allocation

• Share Repurchase: During the fiscal second quarter, the Company repurchased approximately 36,000 shares for $2.5 million.  There is approximately $35 million remaining under the Board's current repurchase authorization.
  
  
• Capital Expenditures: In fiscal second quarter 2021, Standex's cash capital expenditures were $5.3 million compared to $3.7 million in the fiscal second quarter of 2020.  Investments were focused on maintenance, safety, and the Company's highest priority growth initiatives.   The Company expects fiscal year 2021 capital expenditures between approximately $25 million to $28 million.
  
  
• Dividends: On January 28, the Company declared a quarterly cash dividend of $0.24 per share, a 9% year-over-year increase.  The dividend is payable on February 25, 2021 to shareholders of record on February 10, 2021. 

Balance Sheet and Cash Flow Highlights

• Net Debt: Standex had net debt of $90.9 million at December 31, 2020 compared to $106.2 million at the end of the fiscal first quarter of 2021 and $80.3 million at the end of fiscal 2020.  Net debt for the second quarter of 2021 consisted primarily of long-term debt of $200 million and cash and equivalents of $109.1 of which $80.1 million was held by foreign subsidiaries.
  
  Standex repatriated approximately $17 million in fiscal second quarter 2021 and expects to repatriate $35 million in fiscal 2021. The Company's net debt to Adjusted EBITDA leverage ratio was approximately 0.9x at the end of the fiscal second quarter 2021.
  
  
• Cash Flow: Net cash provided by continuing operating activities for the three months ended December 31, 2020 was $22.3 million. The Company generated free cash flow after capital expenditures of $17.0 million, inclusive of a $4.8 million pension payment, primarily reflecting improvement in working capital management.  

Conference Call Details

Standex will host a conference call for investors tomorrow, February 5, 2021 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 5, 2022. To listen to the teleconference playback, please dial (877) 344-7529 in the U.S. or (412) 317-0088 internationally; the passcode is 10150953.  The audio playback via phone will be available through February 12, 2021. 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, 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, 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; 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; 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
Condensed Consolidated Statements of Operations
(unaudited)
			Three Months Ended						Six Months Ended
			December 31,						December 31,
(In thousands, except per share data)			2020			2019			2020			2019
Net sales		$	156,283		$	153,697		$	307,569		$	309,669
Cost of sales			98,267			95,901			194,816			193,646
Gross profit			58,016			57,796			112,753			116,023
Selling, general and administrative expenses			40,199			38,664			79,069			78,826
Acquisition related costs			570			773			596			1,507
Restructuring costs			509			720			1,996			2,199
Income from operations			16,738			17,639			31,092			33,491
Interest expense			1,601			1,928			3,086			4,050
Other non-operating (income) / expense			(60)			588			(231)			(331)
Total			1,541			2,516			2,855			3,719
Income from continuing operations before income taxes			15,197			15,123			28,237			29,772
Provision for income taxes			3,189			2,831			5,885			6,909
Net income from continuing operations			12,008			12,292			22,352			22,863
Income (loss) from discontinued operations, net of tax			(631)			(54)			(1,258)			1,813
Net income		$	11,377		$	12,238		$	21,094		$	24,676
Basic earnings per share:
Income (loss) from continuing operations		$	0.98		$	0.99		$	1.83		$	1.85
Income (loss) from discontinued operations			(0.05)			-			(0.10)			0.15
Total		$	0.93		$	0.99		$	1.73		$	2.00
Diluted earnings per share:
Income (loss) from continuing operations		$	0.98		$	0.99		$	1.82		$	1.84
Income (loss) from discontinued operations			(0.05)			-			(0.10)			0.15
Total		$	0.93		$	0.99		$	1.72		$	1.99
Average Shares Outstanding
Basic			12,195			12,376			12,213			12,359
Diluted			12,270			12,455			12,277			12,427

 

Standex International Corporation
Condensed Consolidated Balance Sheets
(unaudited)
			December 31,			June 30,
(In thousands)			2020			2020
ASSETS
Current assets:
Cash and cash equivalents		$	109,110		$	118,809
Accounts receivable, net			100,585			98,157
Inventories			90,710			85,031
Prepaid expenses and other current assets			20,430			18,870
Income taxes receivable			6,281			8,194
Current assets- Discontinued Operations			-			2,936
Total current assets			327,116			331,997
Property, plant, equipment, net			135,733			132,533
Intangible assets, net			113,211			106,412
Goodwill			291,836			271,221
Deferred tax asset			16,123			17,322
Operating lease right-of-use asset			44,544			44,788
Other non-current assets			30,094			26,605
Total non-current assets			631,541			598,881
Total assets		$	958,657		$	930,878
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	55,524		$	54,910
Accrued liabilities			59,287			59,929
Income taxes payable			3,075			7,428
Current Liabilities- Discontinued Operations			-			610
Total current liabilities			117,886			122,877
Long-term debt			200,032			199,150
Operating lease long-term liabilities			34,961			36,293
Accrued pension and other non-current liabilities			107,588			110,926
Total non-current liabilities			342,581			346,369
Stockholders' equity:
Common stock			41,976			41,976
Additional paid-in capital			76,548			72,752
Retained earnings			843,038			827,656
Accumulated other comprehensive loss			(124,149)			(147,659)
Treasury shares			(339,223)			(333,093)
Total stockholders' equity			498,190			461,632
Total liabilities and stockholders' equity		$	958,657		$	930,878

 

Standex International Corporation and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(unaudited)
			Six Months Ended
			December 31,
(In thousands)			2020			2019
Cash Flows from Operating Activities
Net income		$	21,094		$	24,676
Income (loss) from discontinued operations			(1,258)			1,813
Income from continuing operations			22,352			22,863
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			16,521			16,066
Stock-based compensation			4,288			4,820
Non-cash portion of restructuring charge			(492)			(149)
Life insurance benefit			-			(1,302)
Contributions to defined benefit plans			(4,880)			(1,932)
Net changes in operating assets and liabilities			(6,281)			(23,636)
Net cash provided by operating activities - continuing operations			31,508			16,730
Net cash provided by (used in) operating activities - discontinued operations			2,254			4,930
Net cash provided by (used in) operating activities			33,762			21,660
Cash Flows from Investing Activities
Expenditures for property, plant and equipment			(10,145)			(10,376)
Expenditures for acquisitions, net of cash acquired			(27,398)			-
Other investing activities			275			2,020
Net cash (used in) investing activities from continuing operations			(37,268)			(8,356)
Net cash provided by (used in) investing activities from discontinued operations			-			9,683
Net cash provided by (used in) investing activities			(37,268)			1,327
Cash Flows from Financing Activities
Proceeds from borrowings			17,000			34,700
Payments of debt			(17,000)			(45,500)
Contingent consideration payment			-			(872)
Activity under share-based payment plans			971			1,127
Purchase of treasury stock			(7,593)			(946)
Cash dividends paid			(5,624)			(5,186)
Net cash provided by (used in) financing activities			(12,246)			(16,677)
Effect of exchange rate changes on cash			6,053			(536)
Net changes in cash and cash equivalents			(9,699)			5,774
Cash and cash equivalents at beginning of year			118,809			93,145
Cash and cash equivalents at end of period		$	109,110		$	98,919

 

Standex International Corporation
Selected Segment Data
(unaudited)
			Three Months Ended						Six Months Ended
			December 31,						December 31,
(In thousands)			2020			2019			2020			2019
Net Sales
Electronics		$	60,156		$	45,834		$	115,427		$	92,452
Engraving			37,950			38,256			74,351			76,687
Scientific			17,893			15,414			34,556			30,164
Engineering Technologies			17,507			26,495			35,140			51,139
Specialty Solutions			22,777			27,698			48,095			59,227
Total		$	156,283		$	153,697		$	307,569		$	309,669
Income from operations
Electronics		$	9,962		$	7,776		$	18,497		$	15,875
Engraving			6,501			6,916			12,374			13,454
Scientific			4,234			4,056			8,310			7,761
Engineering Technologies			1,363			3,422			1,831			6,781
Specialty Solutions			3,211			4,341			7,117			9,990
Restructuring			(509)			(720)			(1,996)			(2,199)
Acquisition Related Costs			(570)			(773)			(596)			(1,507)
Corporate			(7,454)			(7,379)			(14,445)			(16,664)
Total		$	16,738		$	17,639		$	31,092		$	33,491

 

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)				2020			2019		% Change			2020			2019		% Change
Adjusted income from operations and adjusted net income from continuing operations:
Net Sales			$	156,283		$	153,697		1.7%		$	307,569		$	309,669		-0.7%
Income from operations, as reported			$	16,738		$	17,639		-5.1%		$	31,092		$	33,491		-7.2%
	Income from operations margin			10.7%			11.5%					10.1%			10.8%
Adjustments:
	Acquisition-related costs			570			773					596			1,507
	Restructuring charges			509			720					1,996			2,199
	Purchase accounting expenses			-			-					592			-
Adjusted income from operations			$	17,817		$	19,132		-6.9%		$	34,276		$	37,197		-7.9%
	Adjusted income from operations margin			11.4%			12.4%					11.1%			12.0%
Interest and other income (expense), net				(1,541)			(2,516)					(2,855)			(3,719)
	Life insurance benefit			-			-					-			(1,302)
Provision for income taxes				(3,189)			(2,831)					(5,885)			(6,909)
	Other foreign tax adjustments			-			(722)					(196)			(722)
	Tax impact of above adjustments			(226)			(714)					(662)			(973)
Net income from continuing operations, as adjusted			$	12,862		$	12,349		4.1%		$	24,678		$	23,572		4.7%
EBITDA and Adjusted EBITDA:
Net income (loss) from continuing operations, as reported			$	12,008		$	12,292		-2.3%		$	22,352		$	22,863
	Net income from continuing operations margin			7.7%			8.0%					7.3%			7.4%
Add back:
	Provision for income taxes			3,189			2,831					5,885			6,909
	Interest expense			1,601			1,928					3,086			4,050
	Depreciation and amortization			8,328			8,085					16,521			16,066
EBITDA			$	25,126		$	25,136		0.0%		$	47,844		$	49,888		-4.1%
	EBITDA Margin			16.1%			16.4%					15.6%			16.1%
Adjustments:
	Acquisition-related costs			570			773					596			1,507
	Restructuring charges			509			720					1,996			2,199
	Life insurance benefit			-			-					-			(1,302)
	Purchase accounting expenses			-			-					592			-
Adjusted EBITDA			$	26,205		$	26,629		-1.6%		$	51,028		$	52,292		-2.4%
	Adjusted EBITDA Margin			16.8%			17.3%					16.6%			16.9%
Free operating cash flow:
Net cash provided by operating activities - continuing operations, as reported			$	22,276		$	7,289				$	31,508		$	16,730
Less: Capital expenditures				(5,325)			(3,688)					(10,145)			(10,376)
Free operating cash flow			$	16,951		$	3,601				$	21,363		$	6,354

 

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,								December 31,
				2020			2019		% Change			2020			2019		% Change
Diluted earnings per share from continuing operations, as reported			$	0.98		$	0.99		-1.0%		$	1.82		$	1.84		-1.1%
Adjustments:
	Acquisition-related costs			0.04			0.03					0.04			0.09
	Restructuring charges			0.03			0.03					0.13			0.13
	Life insurance benefit			-			-					-			(0.10)
	Other foreign tax adjustments			-			(0.06)					(0.02)			(0.06)
	Purchase accounting expenses			-			-					0.04			-
Diluted earnings per share from continuing operations, as adjusted			$	1.05		$	0.99		6.1%		$	2.01		$	1.90		5.9%

 

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SOURCE Standex International Corporation

FAQ

What were Standex International Corporation's 2Q21 financial results?

Standex reported net sales of $156.3 million, a 1.7% increase year-over-year, with operating income of $16.7 million, a decrease of 5.1%.

What is the forecast for Standex International in fiscal 2021?

Standex expects moderate revenue and operating margin improvement in fiscal 3Q21, with a focus on mid-single digit organic growth and a target EBITDA margin exceeding 20%.

How did the free cash flow change for Standex International in 2Q21?

Free cash flow surged 370.7% to $17 million in 2Q21, reflecting improved operational management.

What is the performance of the Electronics segment for Standex in 2Q21?

The Electronics segment showed strong performance with a 31.2% year-over-year revenue increase.

How much did Standex repurchase in shares during the 2Q21?

During 2Q21, Standex repurchased approximately 36,000 shares for $2.5 million.