Standex International Corporation · NYSE:SXI
Standex International — Q3 2020 Earnings Presentation
16 slides from Standex International's earnings presentation, May 8, 2020
Slide 1: Third Quarter Fiscal 2020 Conference Call
Third Quarter Fiscal 2020 Conference Call May 8, 2020
Slide 2: Safe Harbor Statement
Safe Harbor Statement Statements contained in this Presentation 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 s
Slide 3: Key Messages
Key Messages • Deemed an essential business in most plants and have had limited facility shutdowns • Focus on safety and health of employees, customers and suppliers RESPONSE TO COVID-19 • China plants closed for a portion of 3Q20 and now fully operational; provided actionable playbook • Actions inc
Slide 4: Electronics
Electronics Electronics 3Q Summary $ in 000’s 3Q20 3Q19 % • Sales decreased YOY reflecting COVID-19 impact (reduced Change capacity in China plants and shutdowns at certain European Revenue $48,069 $50,197 -4.2% automotive clients) Operating Income $8,017 $9,418 -14.9% • Positive trends in magnetics
Slide 5: Engraving
Engraving Engraving 3Q Summary $ in 000’s 3Q20 3Q19 % • Sales decreased YOY reflecting COVID-19 related delays both in Change the receipt of tools from customers and shipment of the segment’s Revenue $35,431 $37,135 -4.6% completed product Operating Income $4,472 $4,485 -0.3% • Operating income flat
Slide 6: Engineering Technologies
Engineering Technologies Engineering Technologies $ in 000s 3Q20 3Q19 % 3Q Summary Change • Sales decreased YOY reflecting lower aviation-related sales offset partially by increased sales in the space end market Revenue $26,730 $27,467 -2.7% Operating Income $3,098 $2,800 +10.6% • Operating income i
Slide 7: Hydraulics
Hydraulics Hydraulics 3Q Summary $ in 000s 3Q20 3Q19 % • Sales decreased YOY primarily due to a slowdown in the Change dump market and inventory destocking at selected customers Revenue $13,549 $15,106 -10.3% in the refuse market Operating Income $2,354 $2,242 5.0% • Operating income increased YOY r
Slide 8: Food Service Equipment Group
Food Services Food Service Equipment Group 3Q Summary $ in 000s 3Q20 3Q19 % • Sales increased YOY reflecting growth in Scientific, particularly Change in the retail drug sector balanced with relatively flat demand in Merchandising and lower sales in the Pumps business Revenue $31,695 $30,550 3.7% Op
Slide 9: 3Q20 Financial Summary
3Q20 Financial Summary ($ in M's) 3Q20 3Q19 YOY Comments Revenue $155.5 $160.5 -3.1% Decrease reflects economic impact of COVID-19 Organic revenue: -3.2% YOY Acquisition-related impact :+0.9% F/X impact of -0.8% Gross Margin 33.8% 34.3% -50 bps Reflects volume decline, material costs at Electronics
Slide 10: 3Q20 Free Cash Flow
3Q20 Free Cash Flow Q3 Q3 AS REPORTED ($M) FY 2020 FY 2019 Net cash provided by operating activities, as reported $ 12.8 $ 14.4 Less: Capital Expenditures (5.5) (3.1) Free operating cash flow $ 7.3 $ 11.3 Free cash flow reflects: • Increased tax payments in 3Q20, pension contribution payments and hi
Slide 11: 3Q20 Capitalization
3Q20 Capitalization Favorable Liquidity Profile • Net debt to adj. EBITDA of 0.95x Q3 20 Q2 20 • Net debt to total capital of 17.9% (in $M) 3/31/2020 12/31/2019 • ~10x interest coverage ratio Funded Debt 212,065 186,980 Cash 109,297 98,919 • ~$220M of available liquidity Net Debt 102,768 88,061 Capi
Slide 12: Scaling Our Higher Margin Growth Businesses
Scaling Our Higher Margin Growth Businesses FY19 Revenue by End Market Pro Forma post - RSG Divestiture § Common competitive positioning § Leading positions in high value markets with recognized brands Food Service Space & Defense Commercial Aviation 10% 7% § Partnering with customers to solve appli
Slide 13: Key Takeaways
Key Takeaways Rapidly deployed an effective playbook in response to COVID-19; plants have had limited 1 shutdowns In 4Q20, expect all segments to experience sequential revenue decline due to COVID- 2 19 economic impact. Electronics, Engraving and Engineering Technologies slight to moderate sequentia
Slide 14: Q&A
Q&A HT Standex
Slide 15: Appendix
APPENDIX = HT Standex
Slide 16: 3Q20 GAAP to Non-GAAP Bridge
3Q20 GAAP to Non-GAAP Bridge Q3 FY20 Q3 FY19 % Change Pre-tax Net Pre-tax Net Pre-tax Net Income Tax Income EPS Income Tax Income EPS Income Income EPS Reported - GAAP $ 15.4 $ (3.3) $ 12.1 $ 0.97 $ 12.9 $ (4.3) $ 8.7 $ 0.69 18.8% 39.2% 40.6% Add: Restructuring Charges 0.6 (0.2) 0.4 0.04 0.5 (0.2) 0
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