Standex International Corporation · NYSE:SXI
Standex International — Q3 2023 Earnings Presentation
15 slides from Standex International's earnings presentation, May 5, 2023
Slide 1: Third Quarter Fiscal 2023 Earnings Call Presentation
Third Quarter Fiscal 2023 Earnings Call Presentation May 5, 2023
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 Q3 FY23 Messages
KEY Q3 FY23 MESSAGES GROWTH PROFILE ▪ Organic growth of ~ 1.5%; fast growth market sales increased ~40% YOY to $23 million in Q3 FY23 ▪ Fast growth market sales expected to increase ~50% from ~$57M in FY22 to ~$85M in FY23 ▪ Expect organic revenue growth in FY23 from four of five business segments O
Slide 4: How We Participate in Fast Growth End Markets
HOW WE PARTICIPATE IN FAST GROWTH END MARKETS Renewable Energy Electric Vehicles Soft Trim Commercialization Defense of Space ▪ Isolation relays play a ▪ 3X to 5X more ▪ Highly efficient soft ▪ Standex is a leading ▪ New defense critical role in solar electronics trim tool improves solutions supplie
Slide 5: Q3 FY23 Summary
Q3 FY23 SUMMARY Standex International Corporation Third Quarter Ended March 31 ($ in millions) Q3/23 Q3/22 Y/Y △% Comments Net sales 184.3 189.3 -2.6% Organic growth: 1.5% Acquisitions/Divestitures: -1.6% F/X: -2.5% Adjusted operating income 27.9 26.1 7.0% Interest expense 1.4 1.2 14.3% Provision fo
Slide 6: Electronics
ELECTRONICS YOY Comparison Q3 FY23 Summary $ in millions Q3 FY23 Q3 FY22 % Change ▪ Positive YOY organic revenue growth of 1.3%, driven by strength of our fast growth end Revenue 78.2 79.9 -2.1% markets, offset by continued softness in the appliances end market GAAP Operating 17.0 19.2 -11.2% Income
Slide 7: Engraving and Scientific
ENGRAVING YOY Comparison Q3 FY23 Summary ▪ Positive YOY organic revenue growth of 3.9%, $ in millions Q3 FY23 Q3 FY22 % Change driven by strong performance in North America Revenue 36.9 37.2 -0.8% and Europe, more than offset by foreign exchange Operating Income 5.4 5.7 -6.5% ▪ Operating income decr
Slide 8: Engineering Technologies and Specialty Solutions
ENGINEERING TECHNOLOGIES YOY Comparison Q3 FY23 Summary $ in millions Q3 FY23 Q3 FY22 % Change ▪ Revenue decreased reflecting lower volume due to the timing of projects, partially offset by Revenue 18.1 20.9 -13.6% higher revenue from new product development Operating Income 2.4 2.3 1.0% ▪ Operating
Slide 9: Q3 FY23 Capitalization
Q3 FY23 CAPITALIZATION Standex International Corporation CAPITAL SPENDING AND D&A ($ in millions) 3/31/2023 12/31/2022 ▪ $5.6M of CAPEX in Q3 FY23 compared to Debt including issuance costs $173.3 $187.5 $3.4M in Q3 FY22 Cash 175.3 113.5 ▪ CAPEX expected to be between $25M to $30M in FY23 Net (Cash)
Slide 10: Key Takeaways
KEY TAKEAWAYS ▪ Record level adjusted operating margin for the eighth consecutive quarter ▪ Organic growth of 1.5% ▪ Fast Growth market sales grew by ~40% ▪ Adjusted operating margin of 15.2% increased 140 bps year-on-year ▪ Adjusted EPS growth of 7.1% ▪ Expect continued organic growth across majori
Slide 11: Appendix
APPENDIX 11
Slide 12: Standex Financial Framework
STANDEX FINANCIAL FRAMEWORK UPDATED 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 $1 BILLION WITHIN 5 YEARS ▪ Prior longer-term targets (January 2021) were mid-single-dig
Slide 13: Q3 FY23 Segment Snapshot
Q3 FY23 SEGMENT SNAPSHOT Segment Breakdown ($ in millions) Q3/23 Q3/22 Y/Y △% Comments Net Sales by Segment Electronics 78.2 79.9 -2.1% Organic growth: 1.3%; F/X: -3.4% Engraving 36.9 37.2 -0.8% Organic growth: 3.9%; F/X: -4.7% Scientific 18.9 18.9 -0.1% Higher sales in research & academics offset b
Slide 14: Q3 FY23 Revenue Drivers
Q3 FY23 REVENUE DRIVERS Q3 FY23 Electronics Engraving Scientific Engineering Specialty Total YOY Change % Technologies Solutions Organic 1.3% 3.9% (0.1%) (12.1%) 9.3% 1.5% Divestiture 0.0% 0.0% 0.0% 0.0% (9.6%) (1.6%) Acquisitions 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Currency (3.4%) (4.7%) 0.0% (1.5%) 0.0%
Slide 15: Q3 FY23 GAAP to Non-GAAP Income Bridge
Q3 FY23 GAAP TO NON-GAAP INCOME BRIDGE Standex International Corporation Q3 FY23 Q3 FY22 % Change Pre-tax Net Pre-tax Net Pre-tax Net Income Tax Income EPS Income Tax Income EPS Income Income EPS Reported - GAAP $86.4 $(5.8) $80.6 $6.77 $22.9 $(5.5) $17.4 $1.44 277.2 362.8 370.1 Add: Restructuring c
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