Standex International Corporation · NYSE:SXI
Standex International — Q3 2024 Earnings Presentation
15 slides from Standex International's earnings presentation, May 3, 2024
Slide 1: Third Quarter Fiscal 2024 Earnings Call Presentation
Third Quarter Fiscal 2024 Earnings Call Presentation May 3, 2024
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT Statements contained in this Quarterly Report 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 terminolo
Slide 3: Key Q3 FY24 Messages
KEY Q3 FY24 MESSAGES SALES PROFILE ▪ Fast growth market sales increased ~9% YOY to $26 million in Q3 FY24 ▪ Organic decline of ~5.7% primarily due to transitory market softness ▪ Completed acquisition of Sanyu Switch Co., Ltd, expanding our relay offerings OPERATING PERFORMANCE ▪ Adjusted gross marg
Slide 4: Electronics Business Focus & Market Update
ELECTRONICS BUSINESS FOCUS & MARKET UPDATE ▪ Transitory conditions abating ▪ Reed switch orders have traditionally been a leading indicator in our businesses and orders have now begun to improve sequentially ▪ Orders increasing in Europe and also in Appliances and Consumer ▪ Large Customers in semic
Slide 5: Q3 FY24 Summary
Q3 FY24 SUMMARY Standex International Corporation Third Quarter Ended March 31 ($ in millions) Q3 FY24 Q3 FY23 Y/Y △% Comments Net sales 177.3 184.3 -3.8% Organic growth: (5.7%) Acquisitions/Divestitures: 2.7% F/X: (0.9%) Adjusted operating income 27.3 27.9 -2.2% Interest expense 0.9 1.4 -32.9% Non-
Slide 6: Electronics
ELECTRONICS YOY Comparison Q3 FY24 Summary $ in millions Q3 FY24 Q3 FY23 % Change ▪ Revenue increased approximately $2.2 million or 2.8% YOY reflecting a 13.5% benefit from the recent Revenue 80.4 78.2 2.8% acquisitions, partially offset by a foreign currency impact of 1.3% and an organic decline of
Slide 7: Engraving and Scientific
ENGRAVING YOY Comparison Q3 FY24 Summary ▪ Organic decline of 0.2% YOY due to slower $ in millions Q3 FY24 Q3 FY23 % Change demand in North America Revenue 36.3 36.9 -1.7% ▪ Operating income increased 16.9% due to continued realization of productivity actions Operating Income 6.3 5.4 16.9% OI Margin
Slide 8: Engineering Technologies and Specialty Solutions
ENGINEERING TECHNOLOGIES YOY Comparison Q3 FY24 Summary $ in millions Q3 FY24 Q3 FY23 % Change ▪ YOY organic growth of 11.3% driven by improvement in aviation end markets, partially Revenue 20.1 18.1 11.3% offset by lower defense sales Operating Income 3.5 2.4 49.9% ▪ Operating income increase refle
Slide 9: Q3 FY24 Capitalization
Q3 FY24 CAPITALIZATION Standex International Corporation CAPITAL SPENDING AND D&A ($ in millions) 3/31/2024 12/31/2023 ▪ $5.2M of CAPEX in Q3 FY24 compared to Debt including issuance costs 148.8 148.7 $5.6M in Q3 FY23 Cash 138.8 142.4 ▪ CAPEX expected to be between $28M to $32M in FY24 Net (Cash) De
Slide 10: Key Takeaways
KEY TAKEAWAYS ▪ Q3 FY24 highlights: ▪ Fast Growth market sales grew by ~9% ▪ Transitory market softness continued to impact top line; Expect improved market conditions in fiscal year 2025 ▪ Adjusted gross margin of 39.0% increased 50 bps YOY ▪ Adjusted operating margin of 15.4% increased 20 bps YOY
Slide 11: Appendix
APPENDIX 11
Slide 12: Standex Financial Framework
STANDEX FINANCIAL FRAMEWORK LONGER-TERM TARGETS (by FY28) Sales > $1B (High-single-digit organic growth) Adj. Operating Margin * > 19% FCF Conversion ~100% GAAP Net Income ROIC ** > 15% EXPECT SALES TO EXCEED $1 BILLION WITHIN 5 YEARS * Adjusted figures exclude the impact of restructuring charges, p
Slide 13: Q3 FY24 Segment Snapshot
Q3 FY24 SEGMENT SNAPSHOT Segment Breakdown ($ in millions) Q3 FY24 Q3 FY23 Y/Y △% Comments Net Sales by Segment Electronics 80.4 78.2 2.8% Organic decline of 9.3%; Acquisitions: 13.5%; F/X: -1.3% Engraving 36.3 36.9 -1.7% Organic decline of 0.2%; F/X: -1.5% Scientific 16.9 18.9 -10.4% Organic declin
Slide 14: Q3 FY24 Revenue Drivers
Q3 FY24 REVENUE DRIVERS Q3 FY24 Electronics Engraving Scientific Engineering Specialty Total YOY Change % Technologies Solutions Organic (9.3%) (0.2%) (10.4%) 11.3% (10.0%) (5.7%) Divestiture 0.0% 0.0% 0.0% 0.0% (17.1%) (3.0%) Acquisitions 13.5% 0.0% 0.0% 0.0% 0.0% 5.7% Currency (1.3%) (1.5%) 0.0% 0
Slide 15: Q3 FY24 GAAP to Non-GAAP Income Bridge
Q3 FY24 GAAP TO NON-GAAP INCOME BRIDGE Standex International Corporation Q3 FY24 Q3 FY23 % Change Pre-tax Net Pre-tax Net Pre-tax Net Income Tax Income EPS Income Tax Income EPS Income Income EPS Reported - GAAP $20.3 $(4.3) $15.9 $1.35 $86.4 $(5.8) $80.6 $6.77 -76.5 -80.2 -80.1 Add: Restructuring c
Standex International — Q3 2024 Earnings Presentation on 6ix