Standex International Corporation · NYSE:SXI
Standex International — Q1 2025 Earnings Presentation
20 slides from Standex International's earnings presentation, Oct 30, 2024
Slide 1: Fiscal First Quarter 2025 Earnings | Acquisition of Amran & Narayan
Fiscal First Quarter 2025 Earnings | Acquisition of Amran Instrument Transformers & Narayan Powertech Pvt., Ltd. October 29, 2024
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 SALES PROFILE ▪ In Q1 FY25, sales declined 7.7% with contributions from acquisitions partially offsetting organic decline ▪ Fast growth market sales were flat YOY at $20 million in Q1 FY25; Expect sequential and YOY improvement in the fiscal second quarter; New product sales totaled $11
Slide 4: Amran/Narayan Group – Company Overview
AMRAN/NARAYAN GROUP – COMPANY OVERVIEW Business Overview Revenue Profile1 ($ in millions) ▪ Amran was founded in 2004 and Narayan Powertech was founded in 1996 CAGR: ~30% ▪ Amran and Narayan are family-owned businesses, headquartered in Sugar Land, Texas ~$100 and in Gujarat, India, respectively; th
Slide 5: Combination Creates Strong Presence Across Power Value Chain
COMBINATION CREATES STRONG PRESENCE ACROSS POWER VALUE CHAIN Amran / Narayan’s products provide Standex with a significant position in the power transmission and power distribution markets x No existing presence ✓ Partial presence ✓ Strong presence Power Generation Non-core strategy / no market pres
Slide 6: Secular Tailwinds Are Driving Transformer Market Growth
SECULAR TAILWINDS ARE DRIVING TRANSFORMER MARKET GROWTH Infrastructure investments are required to facilitate growing energy demand and the shift to a clean energy economy, requiring significant investment in transformers, transmission & distribution infrastructure Aging Infrastructure and Grid Resi
Slide 7: Amran/Narayan Provides Complementary Capabilities
AMRAN/NARAYAN PROVIDES COMPLEMENTARY CAPABILITIES Comprehensive Electric Grid Strengthen position in electric grid Market Knowledge market with all products Instrument Transformer Expertise Broaden Standex’s product offering North American Manufacturing Incremental capacity enables Capacity Amran/Na
Slide 8: Detailed Transaction Summary
DETAILED TRANSACTION SUMMARY ▪ Standex has acquired Amran Instrument Transformers (“Amran”) and Narayan Powertech Pvt., Ltd (“Narayan”) (collectively, “Amran / Narayan”) in separate transactions for a total enterprise value of $462 million on a cash-free, Valuation & debt-free basis Financial Impact
Slide 9: Enhanced Financial Profile and Higher Exposure to Fast Growth Markets
ENHANCED FINANCIAL PROFILE AND HIGHER EXPOSURE TO FAST GROWTH MARKETS 1 Adj. EBITDA >200 bps of expansion Margin 19.5% in the first full year 10% 8% 12% 45% 10% Significant addition 13% 12% 51% to Standex’s Revenue Mix Electronics portfolio 18% 21% Electronics Engraving Specialty Solutions Engineeri
Slide 10: Highly Strategic and Transformative Acquisition
HIGHLY STRATEGIC AND TRANSFORMATIVE ACQUISITION Amran/Narayan represents a key milestone in the expansion of Standex’s capabilities ▪ Addition of Amran/Narayan Group significantly enhances the value proposition Standex offers to the world’s most recognizable, global OEM customers through leading spe
Slide 11: Q1 FY25 Summary
Q1 FY25 SUMMARY Standex International Corporation First Quarter Ended September 30 ($ in millions) Q1 FY25 Q1 FY24 Y/Y △% Comments Net sales 170.5 184.8 (7.7%) Organic growth: (11.4%) Acquisitions/Divestitures: 3.8% F/X: (0.1%) Adjusted operating income 27.0 29.4 (8.0%) Interest expense 1.0 1.3 (23.
Slide 12: Electronics
ELECTRONICS Q1 FY25 Summary YOY Comparison ▪ Revenue decreased approximately $4.0 $ in millions Q1 FY25 Q1 FY24 % Change million or 4.8% YOY reflecting an 8.5% benefit from recent acquisitions and a 0.3% benefit Revenue 77.7 81.7 -4.8% from foreign currency, more than offset by an organic decline of
Slide 13: Engraving and Scientific
ENGRAVING Q1 FY25 Summary YOY Comparison ▪ Organic decline of 17.5% YOY due to delays in $ in millions Q1 FY25 Q1 FY24 % Change new platform rollouts in North America and delays and general market softness in Europe Revenue 33.4 40.8 (18.2%) ▪ Operating income decreased 23.3% due to Operating Income
Slide 14: Engineering Technologies and Specialty Solutions
ENGINEERING TECHNOLOGIES Q1 FY25 Summary YOY Comparison ▪ YOY organic growth of 13.3% driven by more $ in millions Q1 FY25 Q1 FY24 % Change favorable project timing in the space end markets that drove growth in new product Revenue 20.5 18.2 12.7% development and new applications Operating Income 4.0
Slide 15: Q1 FY25 Capitalization
Q1 FY25 CAPITALIZATION Standex International Corporation CAPITAL SPENDING AND D&A 1 ($ in millions) 9/30/2024 6/30/2024 ▪ $6.7M of CAPEX in Q1 FY25 compared to $4.3M Debt including issuance costs $149.0 $148.9 in Q1 FY24 Cash 164.6 154.2 ▪ CAPEX expected to be between $35M to $40M Net (Cash) Debt (1
Slide 16: Key Takeaways
KEY TAKEAWAYS ▪ Q1 FY25 highlights: ▪ Record adjusted gross margin of 41.1% increased 160 bps YOY ▪ Adjusted operating margin of 15.9% ▪ Adjusted EPS of $1.71 decreased 1.7% YOY ▪ Free Cash Flow of $10.8 million ▪ Amran/Narayan Group acquisition significantly expands presence in fast-growing, high-
Slide 17: Appendix
APPENDIX
Slide 18: Q1 FY25 Segment Snapshot
Q1 FY25 SEGMENT SNAPSHOT Segment Breakdown ($ in millions) Q1 FY25 Q1 FY24 Y/Y △% Comments Net Sales by Segment Electronics 77.7 81.7 (4.8%) Organic decline of 13.7%; Acquisitions: 8.5%; F/X: 0.3% Engraving 33.4 40.8 (18.2%) Organic decline of 17.5%; F/X: -0.7% Scientific 17.7 18.2 (2.7%) Organic de
Slide 19: Q1 FY25 Revenue Drivers
Q1 FY25 REVENUE DRIVERS Q1 FY25 Electronics Engraving Scientific Engineering Specialty Total YOY Change % Technologies Solutions Organic (13.7%) (17.5%) (2.7%) 13.3% (18.3%) (11.4%) Divestiture 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Acquisitions 8.5% 0.0% 0.0% 0.0% 0.0% 3.8% Currency 0.3% (0.7%) 0.0% (0.6%)
Slide 20: Q1 FY25 GAAP to Non-GAAP Income Bridge
Q1 FY25 GAAP TO NON-GAAP INCOME BRIDGE Standex International Corporation Q1 FY25 Q1 FY24 % Change Pre-tax Net Pre-tax Net Pre-tax Net Income Tax Income EPS Income Tax Income EPS Income Income EPS Reported - GAAP $23.2 $(5.0) $18.2 $1.53 $24.8 $(5.9) $18.9 $1.58 (6.6%) (3.7%) (3.2%) Add: Restructurin
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