Standex International Corporation · NYSE:SXI

Standex International — Q2 2013 Earnings Presentation

17 slides from Standex International's earnings presentation, Feb 1, 2013

  1. Slide 1: Second Quarter Fiscal 2013 Conference Call

    Food Service Equipment Engraving Engineering Electronics Hydraulics Technologies Second Quarter Fiscal 2013 Conference Call February 1, 2013

  2. Slide 2: Safe Harbor Statement

    Safe Harbor Statement Statements in this presentation include, or may be based upon, management's current expectations, estimates and/or projections about Standex's markets and industries. These statements are forward-looking statements within the meaning of The Private Securities Litigation Reform

  3. Slide 3: Second Quarter 2013 Overview

    Second Quarter 2013 Overview Modest organic sales growth coupled with improved profitability  Good YOY sales growth in Q2 despite softening demand in certain end user segments  Q2 total sales +8.9%  Organic sales +0.5%  Acquisitions +8.5%  FX impact of -0.1%  Q2 non-GAAP operating income +15.0

  4. Slide 4: Historical Financial Performance

    Historical Financial Performance Continued EPS Expansion $4.00 $700 $3.50 $3.59 $680 $3.50 $3.39 $660 Major Restructuring $2.97 $640 $3.00 $620 $2.50 $2.41 $600 $580 $2.00 $560 $1.60 $540 $1.50 $1.32 $520 $1.00 $500 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 Q1 TTM FY Q2 TTM FY 13 13 Adjusted EPS Sales

  5. Slide 5: Quarterly Results

    Quarterly Results Q2 Q2 FY 2013 FY 2012 Delta Sales $ 168.629 $ 154.868 8.9% Operating Income $ 16.268 $ 14.376 13.2% Operating Income Margin 9.65% 9.28% 36 bps Operating Income excl Special Items $ 17.337 $ 15.077 15.0% Operating Income Margin % excl Special Items 10.28% 9.74% 55 bps EBITDA $ 20.37

  6. Slide 6: Quarterly Bridge

    Quarterly Bridge Net Income Q2 EPS Q2 Quarter Comparison Prior Year FY 13 FY 12 % Change FY 13 FY 12 % Change Net Income Continuing Operations $ 11,026 $ 10,077 9.4% $ 0.86 $ 0.79 8.9% Add: Restructuring (Tax Effected) $ 645 $ 459 $ 0.05 $ 0.04 Acquisition-related expenses $ 59 $ - $ 0.01 $ - Less:

  7. Slide 7: Net Working Capital

    Net Working Capital Working Capital turns show improvement over time 7

  8. Slide 8: Cash Flow

    Cash Flow Q2 Q2 Free operating cash flow (continuing ops): FY2013 FY2012 Net cash provided by operating activities, as reported $ 15,087 $ 11,688 Less: Capital Expeditures (4,818) (2,806) Free operating cash flow $ 10,269 $ 8,882 Net Income 11,026 10,077 Conversion of free operating cash flow 93.1%

  9. Slide 9: Debt Management

    Debt Management  Net Debt to Capital at 9.8% as of December 31, 2012  Includes July 1st acquisition of Meder Electronics  Capacity to fund organic initiatives, productivity improvements and bolt on acquisitions 9

  10. Slide 10: Second Quarter FY 2013 Operational Segment Review

    Second Quarter FY 2013 Operational Segment Review 10

  11. Slide 11: Food Service Equipment Group

    Food Service Equipment Group Δ% Q2'13 ('000s) $ YOY Revenues $ 95,816 -0.2% Operating Income $ 9,694 0.2% OI Margin 10.1%  Strong Refrigerated Solutions sales to quick serve restaurant chains, offset by softness in drug retail stores  Rack refrigeration, ultra low scientific and value line offerin

  12. Slide 12: Engraving Group

    Engraving Group Δ% Q2'13 ('000s) $ YOY Revenues $ 23,663 2.3% Operating Income $ 4,476 1.5% OI Margin 18.9%  Sales driven by strong mold texturizing demand in Europe and China partially offset by weakness in North America  NA auto platform schedules expected to rebound in 2H13  Expect record year

  13. Slide 13: Engineering Technologies Group

    Engineering Technologies Group Δ% Q2'13 ('000s) $ YOY Revenues $ 18,027 0.1% Operating Income $ 3,644 -1.0% OI Margin 20.2%  $0.7 million in operating income related to payment from space customer partially offset lower sales to oil & gas market  Oil & Gas market expected to remain soft for most o

  14. Slide 14: Electronics Group

    Electronics Group Δ% Q2'13 ('000s) $ YOY Revenues $ 24,894 122.5% Operating Income $ 4,101 127.0% OI Margin 16.5%  Legacy business grows due to new programs for magnetics and sensors, partially offset by soft reed switch sales in China and ASIA PAC  Solid pipeline for new products and customer pro

  15. Slide 15: Hydraulics Group

    Hydraulics Group Δ% Q2'13 ('000s) $ YOY Revenues $ 6,229 -5.2% Operating Income $ 963 23.3% OI Margin 15.5%  Decreased demand in North American dump trailer market and weak export sales lead to sales decline  Success continues in penetrating refuse handling application market  Launching new produ

  16. Slide 16: Summary

    Summary  Solid performance in Q2 despite challenging macro-environment in many end markets and geographies  Organic growth initiatives across all segments contributed to sales and operating income  Further roll out of new product and customer specific programs to continue, along with expansion in

  17. Slide 17: Q&A Session

    Fr standex Q&A Session 17

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