STANDEX REPORTS FISCAL THIRD QUARTER 2024 FINANCIAL RESULTS
Standex International (NYSE: SXI) reported financial results for the third quarter of fiscal year 2024, with total net sales of $177.3 million, GAAP gross margin of 38.5%, adjusted gross margin of 39.0%, and GAAP operating margin of 12.3%. The company completed the acquisition of Japanese-based Sanyu Switch Co., The fast growth market sales increased by 9% year-on-year to $26 million. Despite a 5.7% organic sales decline, the company expects a return to organic growth rates in FY25. Standex aims to achieve a long-term target of greater than 19% operating margin by fiscal year 2028. The company generated record free cash flow of $19.3 million in the fiscal third quarter and remains optimistic about the long-term trends in fast growth end markets.
Record fiscal third quarter free cash flow of $19.3 million and year-to-date free cash flow of $50.8 million.
Completed acquisition of Japanese-based Sanyu Switch Co.,
Fast growth market sales increased by 9% year-on-year to $26 million.
Optimistic about long-term secular trends in fast growth end markets.
Operating margin near 40%, with a target of greater than 19% by fiscal year 2028.
5.7% organic sales decline year-on-year.
Softness in appliances and general industrial end markets in China and Europe.
Transitory headwinds affecting several end markets.
Continued softness in general market conditions impacting top line.
Lower volume in certain end markets like retail pharmacies and Display Merchandising business.
Insights
The third quarter fiscal results for Standex International Corporation show some noteworthy trends that investors might find significant. The company's fast growth market sales exhibited an impressive
The report also indicates a GAAP gross margin of
The mention of a record fiscal third quarter free cash flow of
Standex's completion of the acquisition of Sanyu Switch Co., Ltd. aligns with their strategy to enhance their product offerings and presence in the test and measurement market. The acquisition is expected to be accretive to earnings and deliver a double-digit return on invested capital in its first year, which should be attractive to investors looking for companies with a proactive approach to growth.
Delving deeper into the various segments, Standex's Electronics segment, which constitutes
The Specialty Solutions segment experienced a notable
Overall, the company's strategic focus on fast growth markets and their optimistic view on long-term secular trends are points of interest. They point to potential for long-term growth in high-opportunity sectors such as smart grid infrastructure and space exploration – industries that are increasingly relevant in today's economy. However, the immediate challenge posed by the 5.7% organic decline in sales and the softness in general market conditions should not be overlooked, as these could affect short-term performance.
Standex's financial results reveal several strategic maneuvers such as the focus on fast growth markets and recent acquisitions. For an investor with a balanced portfolio strategy, these moves might be seen as an endeavor to diversify product offerings and revenue streams, likely to stabilize earnings over time. Conversely, the organic sales decline and the overall softness in general market conditions reflect vulnerabilities that could impact the company's ability to sustain growth in the short term.
The company's long-term targets and reassertion of achieving an operating margin of greater than 19% by fiscal year 2028 should be of interest to investors with a long investment horizon. Standex's solid adjusted gross margins and record free cash flow speak to their operational efficiency and could cushion the business against economic dips.
The capital allocation strategies underscored by share repurchases and dividend growth reiterate the company's confidence in its financial stability and commitment to returning value to shareholders. The share repurchase program, in particular, may be positively perceived as it often suggests that the company believes its stock is undervalued and is a sign of optimism regarding future prospects.
- Fast Growth Market Sales Increased ~
9% Year-On-Year to~ $26 Million - Organic Sales Decline of
5.7% Year-on-Year; In FY25, Expect Return to Organic Growth Rates In Line with Previously Communicated Long Term Financial Objectives. - GAAP Gross Margin of
38.5% and Adjusted Gross Margin of39.0% , Up 50 bps Year-on-Year - GAAP Operating Margin of
12.3% - Adjusted Operating Margin of
15.4% , up 20 bps Year-On-Year; Includes 70 bps Charge from One-Time Stock Compensation - Record Fiscal Third Quarter' Free Cash Flow of
$19.3 Million $50.8 Million - Completed Acquisition of Japanese-Based Sanyu Switch Co., Ltd
Summary Financial Results - Total | |||||
($M except EPS and Dividends) | 3Q24 | 3Q23 | 2Q24 | Y/Y | Q/Q |
Net Sales | -3.8 % | -0.6 % | |||
Operating Income – GAAP | -75.3 % | -15.4 % | |||
Operating Income – Adjusted | -2.2 % | -4.7 % | |||
Operating Margin % - GAAP | 12.3 % | 48.0 % | 14.5 % | - 3,570 bps | - 220 bps |
Operating Margin % - Adjusted | 15.4 % | 15.2 % | 16.1 % | + 20 bps | - 70 bps |
Net Income from Continuing Ops – GAAP | -80.2 % | -16.4 % | |||
Net Income from Continuing Ops – Adjusted | 5.4 % | -1.9 % | |||
EBITDA | -70.1 % | -12.3 % | |||
EBITDA margin | 16.0 % | 51.6 % | 18.2 % | - 3,560 bps | - 220 bps |
Adjusted EBITDA | -0.1 % | -1.4 % | |||
Adjusted EBITDA margin | 19.5 % | 18.7 % | 19.6 % | + 80 bps | - 10 bps |
Diluted EPS – GAAP | -80.1 % | -16.1 % | |||
Diluted EPS – Adjusted | 6.1 % | -1.7 % | |||
Dividends per Share | 7.1 % | 0.0 % | |||
Free Cash Flow | 9.2 % | -1.3 % | |||
Net Debt to EBITDA | 0.1x | 0.0x | 0.0x | NM | NM |
Third Quarter Fiscal 2024 Results
Commenting on the quarter's results, President and Chief Executive Officer David Dunbar said, "I am pleased with our third quarter operating performance despite continued softness in general market conditions impacting our top line. We again achieved solid adjusted gross margin of near
"We remain optimistic about the long-term secular trends in our fast growth end markets. These markets will benefit from trends like the transition from internal combustion to hybrid and electric in automotive, infrastructure spending in smart grid, defense applications and next generation aerospace development, and from the evolution of space exploration, all of which are still in the earlier stages. In the fiscal third quarter, our fast growth market sales grew
"Overall, we continued to experience transitory headwinds in several of our end markets which led to a
"In late February, we completed our acquisition of Japanese-based Sanyu Switch Company. The integration is on track, and we are excited about our breadth of applications in the test and measurement market. We still expect the acquisition to be accretive to earnings and to achieve a double-digit return on invested capital in the first year of ownership."
Outlook
In the fiscal fourth quarter 2024, on a sequential basis, the Company expects slightly to moderately higher revenue due to favorable project timing in the Engineering Technologies segment, increased market demand in the Specialty Solutions segment, and the impact of the Company's recent acquisition of Sanyu. The Company expects slightly to moderately higher adjusted operating margin sequentially due to leverage on higher sales and pricing and productivity actions.
Third Quarter Segment Operating Performance
Electronics (45% of sales;
3Q24 | 3Q23 | % Change | |
Electronics ($M) | |||
Revenue | 80.4 | 78.2 | 2.8 % |
GAAP Operating Income | 15.7 | 17.0 | -7.9 % |
GAAP Operating Margin % | 19.5 | 21.8 | |
Adjusted Operating Income | 16.5 | 17.0 | -3.1 % |
Adjusted Operating Margin % | 20.5 | 21.8 |
*Excludes purchase accounting expenses of |
Revenue increased approximately
Electronics segment backlog realizable in under one year of approximately
In fiscal fourth quarter 2024, on a sequential basis, the Company expects similar revenue and slightly lower to similar adjusted operating margin due to unfavorable mix.
Engraving (
3Q24 | 3Q23 | % Change | |
Engraving ($M) | |||
Revenue | 36.3 | 36.9 | -1.7 % |
Operating Income | 6.3 | 5.4 | 16.9 % |
Operating Margin % | 17.2 | 14.5 |
Revenue decreased approximately
In fiscal fourth quarter 2024, on a sequential basis, the Company expects slightly lower revenue and slightly to moderately lower operating margin due to unfavorable project timing in
Scientific (
3Q24 | 3Q23 | % Change | |
Scientific ($M) | |||
Revenue | 16.9 | 18.9 | -10.4 % |
Operating Income | 4.9 | 4.6 | 7.3 % |
Operating Margin % | 28.9 | 24.1 |
Revenue decreased approximately
In fiscal fourth quarter 2024, on a sequential basis, the Company expects slightly higher revenue and similar operating margin.
Engineering Technologies (
3Q24 | 3Q23 | % Change | |
Engineering Technologies ($M) | |||
Revenue | 20.1 | 18.1 | 11.3 % |
Operating Income | 3.5 | 2.4 | 49.9 % |
Operating Margin % | 17.5 | 13.0 |
Revenue increased approximately
In fiscal fourth quarter 2024, on a sequential basis, the Company expects moderately to significantly higher revenue and moderately higher operating margin due to favorable project timing.
Specialty Solutions (
3Q24 | 3Q23 | % Change | |
Specialty Solutions ($M) | |||
Revenue | 23.5 | 32.3 | -27.1 % |
Operating Income | 4.7 | 7.2 | -34.7 % |
Operating Margin % | 19.9 | 22.2 |
Specialty Solutions revenue decreased approximately
In fiscal fourth quarter 2024, on a sequential basis, the Company expects moderately higher revenue and operating margin due to improved end market demand and leverage on higher sales.
Capital Allocation
- Share Repurchase: During the fiscal third quarter 2024, the Company repurchased approximately 34,000 shares for
$5.1 million $33.3 million - Capital Expenditures: In fiscal third quarter 2024, Standex's capital expenditures were
$5.2 million $5.6 million $28 million $32 million $24.3 million - Dividend: On April 25, 2024, the Company declared a quarterly cash dividend of
$0.30 7.1% year-on-year increase. The dividend is payable May 24, 2024, to shareholders of record on May 10, 2024.
Balance Sheet and Cash Flow Highlights
- Net Debt: Standex had net (cash) debt of
$10.0 million ( at the end of fiscal third quarter 2023. Net debt for the third quarter of 2024 consisted primarily of long-term debt of$2.0) million $148.8 million $138.8 million
- Cash Flow: Net cash provided by continuing operating activities for the three months ended March 31, 2024, was
$24.4 million compared to$23.3 $19.3 million compared to free cash flow after capital expenditures of$17.6 million in the fiscal third quarter of 2023.
Conference Call Details
Standex will host a conference call for investors tomorrow, May 3, 2024, at 8:30 a.m. ET. On the call, David Dunbar, President, and CEO, and Ademir Sarcevic, CFO, will review the Company's financial results and business and operating highlights. Investors interested in listening to the webcast and viewing the slide presentation should log on to the "Investors" section of Standex's website under the subheading, "Events and Presentations," located at www.standex.com.
A replay of the webcast will also be available on the Company's website shortly after the conclusion of the presentation online through May 3, 2025. To listen to the teleconference playback, please dial in the
Use of Non-GAAP Financial Measures
In addition to the financial measures prepared in accordance with generally accepted accounting principles ("GAAP"), the Company uses certain non-GAAP financial measures, including non-GAAP adjusted income from operations, non-GAAP adjusted net income from continuing operations, free operating cash flow, EBITDA (earnings before interest, taxes, depreciation and amortization) adjusted EBITDA, adjusted EBITDA to net debt, and adjusted earnings per share. The attached financial tables reconcile non-GAAP measures used in this press release to the most directly comparable GAAP measures. The Company believes that the use of non-GAAP measures which include the impact of restructuring charges, purchase accounting, insurance recoveries, discrete tax events, gain or loss on sale of a business unit, acquisition costs, and litigation costs help investors to obtain a better understanding of our operating results and prospects, consistent with how management measures and forecasts the Company's performance, especially when comparing such results to previous periods. An understanding of the impact in a particular quarter of specific restructuring costs, acquisition expenses, or other gains and losses, on net income (absolute as well as on a per-share basis), operating income or EBITDA can give management and investors additional insight into core financial performance, especially when compared to quarters in which such items had a greater or lesser effect, or no effect. Non-GAAP measures should be considered in addition to, and not as a replacement for, the corresponding GAAP measures, and may not be comparable to similarly titled measures reported by other companies.
About Standex
Standex International Corporation is a multi-industry manufacturer in five broad business segments: Electronics, Engraving, Scientific, Engineering Technologies, and Specialty Solutions with operations in
Forward-Looking Statements
Statements contained in this Press Release that are not based on historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of forward-looking terminology such as "should," "could," "may," "will," "expect," "believe," "estimate," "anticipate," "intend," "continue," or similar terms or variations of those terms or the negative of those terms. There are many factors that affect the Company's business and the results of its operations and that may cause the actual results of operations in future periods to differ materially from those currently expected or anticipated. These factors include, but are not limited to: the impact of pandemics and other global crises or catastrophic events on employees, our supply chain, and the demand for our products and services around the world; materially adverse or unanticipated legal judgments, fines, penalties or settlements; conditions in the financial and banking markets, including fluctuations in exchange rates and the inability to repatriate foreign cash; domestic and international economic conditions, including the impact, length and degree of economic downturns on the customers and markets we serve and more specifically conditions in the automotive, construction, aerospace, defense, transportation, food service equipment, consumer appliance, energy, oil and gas and general industrial markets; lower-cost competition; the relative mix of products which impact margins and operating efficiencies in certain of our businesses; the impact of higher raw material and component costs, particularly steel, certain materials used in electronics parts, petroleum based products, and refrigeration components; the impact of higher transportation and logistics costs, especially with respect to transportation of goods from
Standex International Corporation | ||||||||||||
Consolidated Statement of Operations | ||||||||||||
(unaudited) | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
March 31, | March 31, | |||||||||||
(In thousands, except per share data) | 2024 | 2023 | 2024 | 2023 | ||||||||
Net sales | $ | 177,267 | 184,332 | $ | 540,441 | $ | 552,721 | |||||
Cost of sales | 108,977 | 113,435 | 327,853 | 341,251 | ||||||||
Gross profit | 68,290 | 70,897 | 212,588 | 211,470 | ||||||||
Selling, general and administrative expenses | 41,764 | 42,954 | 128,625 | 127,756 | ||||||||
(Gain) loss on sale of business | - | (62,105) | (274) | (62,105) | ||||||||
Restructuring costs | 4,037 | 2,237 | 7,303 | 3,330 | ||||||||
Acquisition related costs | 537 | 21 | 2,233 | 487 | ||||||||
Other operating (income) expense, net | 110 | (727) | 110 | (611) | ||||||||
Income from operations | 21,842 | 88,517 | 74,591 | 142,613 | ||||||||
Interest expense | 949 | 1,415 | 3,244 | 4,168 | ||||||||
Other non-operating (income) expense, net | 627 | 747 | 1,805 | 1,695 | ||||||||
Total | 1,576 | 2,162 | 5,049 | 5,863 | ||||||||
Income from continuing operations before income taxes | 20,266 | 86,355 | 69,542 | 136,750 | ||||||||
Provision for income taxes | 4,327 | 5,788 | 15,639 | 17,783 | ||||||||
Net income from continuing operations | 15,939 | 80,567 | 53,903 | 118,967 | ||||||||
Income (loss) from discontinued operations, net of tax | (141) | (57) | (420) | (144) | ||||||||
Net income | $ | 15,798 | $ | 80,510 | $ | 53,483 | $ | 118,823 | ||||
Basic earnings per share: | ||||||||||||
Income (loss) from continuing operations | $ | 1.35 | $ | 6.82 | $ | 4.58 | $ | 10.06 | ||||
Income (loss) from discontinued operations | (0.01) | - | (0.03) | (0.01) | ||||||||
Total | $ | 1.34 | $ | 6.82 | $ | 4.55 | $ | 10.05 | ||||
Diluted earnings per share: | ||||||||||||
Income (loss) from continuing operations | $ | 1.35 | $ | 6.77 | $ | 4.54 | $ | 9.98 | ||||
Income (loss) from discontinued operations | (0.02) | - | (0.04) | (0.01) | ||||||||
Total | $ | 1.33 | $ | 6.77 | $ | 4.50 | $ | 9.97 | ||||
Average Shares Outstanding | ||||||||||||
Basic | 11,772 | 11,811 | 11,764 | 11,825 | ||||||||
Diluted | 11,849 | 11,895 | 11,876 | 11,917 | ||||||||
Standex International Corporation | ||||||
Condensed Consolidated Balance Sheets | ||||||
(unaudited) | ||||||
March 31, | June 30, | |||||
(In thousands) | 2024 | 2023 | ||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 138,799 | 195,706 | |||
Accounts receivable, net | 120,501 | 123,440 | ||||
Inventories | 95,170 | 98,537 | ||||
Prepaid expenses and other current assets | 62,066 | 64,739 | ||||
Income taxes receivable | 2,617 | 831 | ||||
Total current assets | 419,153 | 483,253 | ||||
Property, plant, equipment, net | 135,003 | 130,937 | ||||
Intangible assets, net | 81,881 | 75,651 | ||||
Goodwill | 282,000 | 264,821 | ||||
Deferred tax asset | 15,047 | 14,602 | ||||
Operating lease right-of-use asset | 34,421 | 33,273 | ||||
Other non-current assets | 26,001 | 22,392 | ||||
Total non-current assets | 574,353 | 541,676 | ||||
Total assets | $ | 993,506 | $ | 1,024,929 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
Current liabilities: | ||||||
Accounts payable | $ | 58,448 | 68,601 | |||
Accrued liabilities | 55,447 | 62,031 | ||||
Income taxes payable | 8,453 | 10,335 | ||||
Total current liabilities | 122,348 | 140,967 | ||||
Long-term debt | 148,768 | 173,441 | ||||
Operating lease long-term liabilities | 29,001 | 25,774 | ||||
Accrued pension and other non-current liabilities | 74,407 | 77,298 | ||||
Total non-current liabilities | 252,176 | 276,513 | ||||
Stockholders' equity: | ||||||
Common stock | 41,976 | 41,976 | ||||
Additional paid-in capital | 104,753 | 100,555 | ||||
Retained earnings | 1,070,255 | 1,027,279 | ||||
Accumulated other comprehensive loss | (168,005) | (158,477) | ||||
Treasury shares | (429,997) | (403,884) | ||||
Total stockholders' equity | 618,982 | 607,449 | ||||
Total liabilities and stockholders' equity | $ | 993,506 | $ | 1,024,929 | ||
Standex International Corporation and Subsidiaries | ||||||
Statements of Consolidated Cash Flows | ||||||
(unaudited) | ||||||
Nine Months Ended | ||||||
March 31, | ||||||
(In thousands) | 2024 | 2023 | ||||
Cash Flows from Operating Activities | ||||||
Net income | $ | 53,483 | 118,823 | |||
Income (loss) from discontinued operations | (420) | (144) | ||||
Income from continuing operations | 53,903 | 118,967 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Depreciation and amortization | 21,146 | 21,275 | ||||
Stock-based compensation | 8,524 | 8,508 | ||||
Non-cash portion of restructuring charge | 895 | 129 | ||||
(Gain) loss on sale of business | (274) | (62,105) | ||||
Contributions to defined benefit plans | (8,506) | (151) | ||||
Net changes in operating assets and liabilities | (11,079) | (36,268) | ||||
Net cash provided by operating activities - continuing operations | 64,609 | 50,355 | ||||
Net cash provided by (used in) operating activities - discontinued operations | (497) | (37) | ||||
Net cash provided by (used in) operating activities | 64,112 | 50,318 | ||||
Cash Flows from Investing Activities | ||||||
Expenditures for property, plant and equipment | (13,765) | (16,648) | ||||
Expenditures for acquisitions, net of cash acquired | (47,696) | - | ||||
Proceeds from the sale of business | 7,774 | 67,023 | ||||
Other investing activities | (270) | (1,321) | ||||
Net cash (used in) investing activities from continuing operations | (53,957) | 49,054 | ||||
Net cash provided by investing activities from discontinued operations | - | - | ||||
Net cash provided by (used in) investing activities | (53,957) | 49,054 | ||||
Cash Flows from Financing Activities | ||||||
Proceeds from borrowings | - | 224,500 | ||||
Payments of debt | (25,000) | (226,200) | ||||
Contingent consideration payment | - | (1,167) | ||||
Activity under share-based payment plans | 1,325 | 1,170 | ||||
Purchase of treasury stock | (31,781) | (18,582) | ||||
Cash dividends paid | (10,375) | (9,699) | ||||
Net cash provided by (used in) financing activities | (65,831) | (29,978) | ||||
Effect of exchange rate changes on cash | (1,231) | 1,046 | ||||
Net changes in cash and cash equivalents | (56,907) | 70,440 | ||||
Cash and cash equivalents at beginning of year | 195,706 | 104,844 | ||||
Cash and cash equivalents at end of period | $ | 138,799 | $ | 175,284 | ||
Standex International Corporation | ||||||||||||
Selected Segment Data | ||||||||||||
(unaudited) | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
March 31, | March 31, | |||||||||||
(In thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||
Net Sales | ||||||||||||
Electronics | $ | 80,431 | $ | 78,211 | $ | 241,538 | $ | 225,966 | ||||
Engraving | 36,297 | 36,909 | 117,936 | 109,622 | ||||||||
Scientific | 16,925 | 18,898 | 51,410 | 56,646 | ||||||||
Engineering Technologies | 20,098 | 18,052 | 58,205 | 59,244 | ||||||||
Specialty Solutions | 23,516 | 32,262 | 71,352 | 101,243 | ||||||||
Total | $ | 177,267 | $ | 184,332 | $ | 540,441 | $ | 552,721 | ||||
Income from operations | ||||||||||||
Electronics | $ | 15,700 | $ | 17,047 | $ | 47,884 | $ | 52,160 | ||||
Engraving | 6,260 | 5,353 | 22,765 | 17,580 | ||||||||
Scientific | 4,896 | 4,561 | 14,074 | 12,449 | ||||||||
Engineering Technologies | 3,524 | 2,351 | 9,946 | 7,957 | ||||||||
Specialty Solutions | 4,668 | 7,151 | 14,250 | 18,944 | ||||||||
Restructuring | (4,037) | (2,237) | (7,303) | (3,330) | ||||||||
Gain (loss) on sale of business | - | 62,105 | 274 | 62,105 | ||||||||
Acquisition related costs | (537) | (21) | (2,233) | (487) | ||||||||
Corporate | (8,522) | (8,520) | (24,956) | (25,376) | ||||||||
Other operating income (expense), net | (110) | 727 | (110) | 611 | ||||||||
Total | $ | 21,842 | $ | 88,517 | $ | 74,591 | $ | 142,613 | ||||
Standex International Corporation | |||||||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures | |||||||||||||||||
(unaudited) | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
(In thousands, except percentages) | 2024 | 2023 | % Change | 2024 | 2023 | % Change | |||||||||||
Adjusted income from operations and adjusted net income from continuing | |||||||||||||||||
Net Sales | $ | 177,267 | $ | 184,332 | -3.8 % | $ | 540,441 | $ | 552,721 | -2.2 % | |||||||
Income from operations, as reported | $ | 21,842 | $ | 88,517 | -75.3 % | $ | 74,591 | $ | 142,613 | -47.7 % | |||||||
Income from operations margin | 12.3 % | 48.0 % | 13.8 % | 25.8 % | |||||||||||||
Adjustments: | |||||||||||||||||
Restructuring charges | 4,037 | 2,237 | 7,303 | 3,330 | |||||||||||||
Acquisition-related costs | 537 | 21 | 2,233 | 487 | |||||||||||||
Litigation (settlement refund) charge | - | (996) | - | (881) | |||||||||||||
(Gain) loss on sale of business | - | (62,105) | (274) | (62,105) | |||||||||||||
Environmental remediation | 110 | 271 | 110 | 271 | |||||||||||||
Property insurance deductible | - | - | - | - | |||||||||||||
Purchase accounting expenses | 818 | - | 1,463 | - | |||||||||||||
Adjusted income from operations | $ | 27,344 | $ | 27,945 | -2.2 % | $ | 85,426 | $ | 83,715 | 2.0 % | |||||||
Adjusted income from operations margin | 15.4 % | 15.2 % | 15.8 % | 15.1 % | |||||||||||||
Interest and other income (expense), net | (1,576) | (2,162) | (5,049) | (5,863) | |||||||||||||
Foreign currency related (gain) loss on acquisition and divestiture activities | 591 | - | 309 | - | |||||||||||||
Provision for income taxes | (4,327) | (5,788) | (15,639) | (17,783) | |||||||||||||
Discrete and other tax items | - | - | 100 | 100 | |||||||||||||
Tax impact of above adjustments | (1,342) | (370) | (2,568) | (769) | |||||||||||||
Net income from continuing operations, as adjusted | $ | 20,690 | $ | 19,625 | 5.4 % | $ | 62,579 | $ | 59,400 | 5.4 % | |||||||
EBITDA and Adjusted EBITDA: | |||||||||||||||||
Net income (loss) from continuing operations, as reported | $ | 15,939 | $ | 80,567 | -80.2 % | $ | 53,903 | $ | 118,967 | ||||||||
Net income from continuing operations margin | 9.0 % | 43.7 % | 10.0 % | 21.5 % | |||||||||||||
Add back: | |||||||||||||||||
Provision for income taxes | 4,327 | 5,788 | 15,639 | 17,783 | |||||||||||||
Interest expense | 949 | 1,415 | 3,244 | 4,168 | |||||||||||||
Depreciation and amortization | 7,177 | 7,309 | 21,146 | 21,275 | |||||||||||||
EBITDA | $ | 28,392 | $ | 95,079 | -70.1 % | $ | 93,932 | $ | 162,193 | -42.1 % | |||||||
EBITDA Margin | 16.0 % | 51.6 % | 17.4 % | 29.3 % | |||||||||||||
Adjustments: | |||||||||||||||||
Restructuring charges | 4,037 | 2,237 | 7,303 | 3,330 | |||||||||||||
Acquisition-related costs | 537 | 21 | 2,233 | 487 | |||||||||||||
Litigation (settlement refund) charge | - | (996) | - | (881) | |||||||||||||
(Gain) loss on sale of business | - | (62,105) | (274) | (62,105) | |||||||||||||
Foreign currency related (gain) loss on acquisition and divestiture activities | 591 | - | 309 | - | |||||||||||||
Environmental remediation | 110 | 271 | 110 | 271 | |||||||||||||
Life insurance benefit | - | - | - | - | |||||||||||||
Purchase accounting expenses | 818 | - | 1,463 | - | |||||||||||||
Adjusted EBITDA | $ | 34,485 | $ | 34,507 | -0.1 % | $ | 105,076 | $ | 103,295 | 1.7 % | |||||||
Adjusted EBITDA Margin | 19.5 % | 18.7 % | 19.4 % | 18.7 % | |||||||||||||
Free operating cash flow: | |||||||||||||||||
Net cash provided by operating activities - continuing operations, as reported | $ | 24,442 | $ | 23,265 | $ | 64,609 | $ | 50,356 | |||||||||
Less: Capital expenditures | (5,178) | (5,620) | (13,765) | (16,648) | |||||||||||||
Free cash flow from continuing operations | $ | 19,264 | $ | 17,645 | $ | 50,844 | $ | 33,708 | |||||||||
Standex International Corporation | |||||||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures | |||||||||||||||||
(unaudited) | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
Adjusted earnings per share from continuing operations | March 31, | March 31, | |||||||||||||||
2024 | 2023 | % | 2024 | 2023 | % Change | ||||||||||||
Diluted earnings per share from continuing operations, as reported | $ | 1.35 | $ | 6.77 | -80.1 % | $ | 4.54 | $ | 9.98 | -54.5 % | |||||||
Adjustments: | |||||||||||||||||
Restructuring charges | 0.26 | 0.14 | 0.48 | 0.21 | |||||||||||||
Acquisition-related costs | 0.04 | 0.14 | 0.03 | ||||||||||||||
Litigation (settlement refund) charge | - | (0.06) | - | (0.06) | |||||||||||||
(Gain) loss on sale of business | - | (5.22) | (0.02) | (5.22) | |||||||||||||
Foreign currency related (gain) loss on acquisition and divestiture activities | 0.04 | - | 0.02 | - | |||||||||||||
Environmental remediation | 0.01 | 0.02 | 0.01 | 0.02 | |||||||||||||
Discrete tax items | - | - | 0.01 | 0.01 | |||||||||||||
Purchase accounting expenses | 0.05 | - | 0.09 | - | |||||||||||||
Diluted earnings per share from continuing operations, as adjusted | $ | 1.75 | $ | 1.65 | 6.1 % | $ | 5.27 | $ | 4.97 | 6.0 % | |||||||
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SOURCE Standex International Corporation
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