Standex International Corporation · NYSE:SXI

Standex International — Q2 FY2012 Earnings Presentation

20 slides from Standex International's earnings presentation, Feb 14, 2012

  1. Slide 1: Second Quarter Fiscal 2012 Conference Call

    Food Service Equipment INTERNATIONAL CORPORATION Engraving Engineering Electronics Technologies Hydraulics Second Quarter Fiscal 2012 Conference Call February 14, 2012 1

  2. Slide 2: Agenda

    Agenda Overview  Roger Fix – President & Chief Executive Officer Financial Review  Tom DeByle – Chief Financial Officer Segment Results and Outlook  Roger Fix – President & Chief Executive Officer Statements in this presentation include, or may be based upon, management's current expectations, es

  3. Slide 3: Planned ADP Divestiture

    Planned ADP Divestiture Taking the next step in our Focused Diversity strategy  Rationale for divestiture:  ADP is not aligned with our commitment to value-added, technically-driven businesses that provide superior returns  Current and near term expected financial performance of ADP is dilutive t

  4. Slide 4: ADP Divestiture Analysis

    ADP Divestiture Analysis Proposed divestiture results in improved margins and returns ($ in millions, except per share data) Trailing Twelve Months W/O ADP W/ADP 12/31/2011 12/31/2011 Delta Sales $ 610.189 $ 665.574 $ (55.385) Gross Profit Margin % 32.4% 31.2% 120 bps Operating Income ex. Special It

  5. Slide 5: Second Quarter 2012 Overview

    Second Quarter 2012 Overview  Good quarter for our remaining businesses  Strong YOY sales growth in Q2  Q2 total sales up 9.0%  Organic sales +5.6%  Acquisition growth +3.3%  FX impact was nominal  Non-GAAP operating income +10% and non-GAAP EPS +14% for Q2 All four operating groups reported

  6. Slide 6: A Story of Transformation

    A Story of Transformation TTM EPS exceeds pre-recession peak by 82%  Achieved TTM non-GAAP EPS of $3.16/share vs. pre-recession TTM EPS of $1.74/share in Q1 FY 09  Delivered 82% increase in non-GAAP TTM EPS despite sales still being below our pre-recession peak in 1Q09 $3.50 Start of New Cost Stru

  7. Slide 7: Quarterly Results

    Quarterly Results Q2 Q2 FY 2012 FY 2011 Delta ($ in millions, except per share data) Sales $ 154.868 $ 142.078 9.0% Operating Income $ 14.376 $ 13.379 7.5% Operating Income Margin 9.28% 9.42% -13 bps Operating Income excl Special Items $ 15.077 $ 13.721 9.9% Operating Income Margin % excl Special It

  8. Slide 8: Quarterly Bridge

    Quarterly Bridge Proforma net income and EPS at +13% improvement YOY ($ in thousands, except per share data) Net Income Q2 EPS Q2 Quarter Comparison Prior Year FY 12 FY 11 % Change FY 12 FY 11 % Change Net Income Continuing Operations $ 10,077 $ 9,328 8.0% $ 0.79 $ 0.73 8.2% Add: Restructuring (Tax

  9. Slide 9: Year to Date Results

    Year to Date Results YTD YTD ($ in millions, except per share data) FY 2012 FY 2011 Delta Sales $ 314.174 $ 285.354 10.1% Operating Income $ 30.490 $ 31.556 -3.4% Operating Income Margin 9.70% 11.06% -135 bps Operating Income excl Special Items $ 31.713 $ 29.890 6.1% Operating Income Margin % excl S

  10. Slide 10: Year to Date Bridge

    Year to Date Bridge Proforma net income and EPS at 11% improvement YOY ($ in thousands, except per share data) YTD EPS YTD YTD Comparison FY 12 FY 11 % Change FY 12 FY 11 % Change Net Income Continuing Operations $ 21,896 $ 21,207 3.3% $ 1.72 $ 1.66 3.6% Add: Restructuring (Tax Affected) $ 801 $ 853

  11. Slide 11: Working Capital & WC Turns

    Working Capital & WC Turns 350,000 7.0 6.3 5.9 5.9 5.8 5.8 5.7 5.7 300,000 6.0 5.5 5.5 5.5 5.4 5.4 5.4 5.3 5.3 5.3 5.3 5.2 5.2 5.1 5.1 5.1 5.1 5.0 5.0 5.0 4.9 4.9 4.8 4.7 250,000 5.0 4.3 4.3 4.2 4.0 4.0 4.0 3.8 3.7 200,000 4.0 3.5 3.5 3.5 3.3 3.2 150,000 3.0 •Continued focus on 100,000 2.0 managing

  12. Slide 12: Free Cash Flow

    Free Cash Flow Continuing Operations: Q2 Q2 Free operating cash flow: FY2012 FY2011 Net cash provided by operating activities, as reported $ 11,688 $ 12,098 Less: Capital Expeditures (2,806) (1,896) Free operating cash flow $ 8,882 $ 10,202 Net Income 10,077 9,328 Conversion of free operating cash f

  13. Slide 13: Debt Profile

    Debt Profile $250,000 Capital Structure 12/31/2011 $200,000 Revolver $ 61,000 $150,000 Industrial Revenue Bond $ 3,300 Cash $ (26,745) $100,000 Net Debt $ 37,555 $50,000 Shareholder's Equity $ 244,510 Total Capitalization $ 282,065 $0 Net Debt / Capitalization 13.3% New Facility Net Debt / Pro forma

  14. Slide 14: Second Quarter FY12 Operational Segment Review

    Second Quarter FY12 Operational Segment Review 14

  15. Slide 15: Food Service Equipment Group

    Food Service Equipment Group Q2’12 (‘000s) $ Δ% (yoy) Revenues $95,962 4.3% Operating Income $9,678 (2.7)%  Refrigerated Solutions  Strong demand from quick serve restaurant segment  Reported first substantial orders from dollar store segment  Growth offset by softer drug retail and scientific s

  16. Slide 16: Engraving Group

    Engraving Group Q2’12 (‘000s) $ Δ% (yoy) Revenues $23,133 11.2% Operating Income $4,411 30.4%  Excellent performance driven by strong Mold Tech sales  Strength in North America and China, with solid sales in Europe as well  Opened fourth China facility (Fujian province) on schedule  Actively eng

  17. Slide 17: Engineering Technologies Group

    Engineering Technologies Group Q2’12 (‘000s) $ Δ% (yoy) Revenues $18,012 33.5% Operating Income $3,679 13.7%  Metal Spinners acquisition drove top-line growth  Strong demand from oil & gas market  Legacy Spincraft business continues to be affected by inventory correction at a major land based gas

  18. Slide 18: Electronics & Hydraulics Group

    Electronics & Hydraulics Group Electronics and Hydraulics YOY Revenue Change Q2’12 (‘000s) $ Δ% 30,000 (yoy) 37.7%36.5% 25,000 31.8% 28.5% Revenues $17,761 12.4% 20,000 8.4% 18.1% 12.2%12.4% -1.2% -2.3% 0.3% -2.8% 15,000 -5.6% Operating Income $2,560 14.8% -19.9% 10,000 -25.4% -39.5% -40.6% 5,000 -4

  19. Slide 19: Summary

    Summary Continuing to execute on Focused Diversity strategy  Uncertain macro-economic environment, but better prepared for potential downturn than ever before  Expected divestiture of ADP will allow us to focus resources on strategic opportunities  Operational objectives for fiscal 2012:  Drivin

  20. Slide 20: Q&A Session

    Q&A Session 20

Standex International — Q2 FY2012 Earnings Presentation on 6ix