Standex International Corporation · NYSE:SXI
Standex International — Q2 2021 Earnings Presentation
17 slides from Standex International's earnings presentation, Feb 5, 2021
Slide 1: Fiscal Second Quarter 2021 Conference Call Presentation
Fiscal Second Quarter 2021 Conference Call Presentation February 5, 2021
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 Q2 FY21 Messages
Key Q2 FY21 Messages • Electronics revenue increased +30% YOY; ~15% organic growth with positive trends in electric vehicles, general automotive, white goods and semiconductor equipment Q2 FY21 RESULTS • Scientific revenue increased 16% YOY; expect high end of previous $10M-$20M range for COVID-19 v
Slide 4: Electronics
Electronics Electronics Q2 FY21 Summary $ in 000’s Q2 FY21 Q2 FY20 % Change • Organic revenue growth of ~ 15% YOY reflecting recovery in all Revenue geographic regions; positive trends in electric vehicles, general $60,156 $45,834 31.2% automotive, appliances, and semiconductor equipment Operating I
Slide 5: Engraving
Engraving Engraving Q2 FY21 Summary $ in 000’s Q2 FY21 Q2 FY20 % Change • Revenue and operating income decrease reflected volume Revenue decline associated with COVID-19 economic impact partially $37,950 $38,256 -0.8% mitigated by ongoing productivity and expense savings Operating Income $6,501 $6,9
Slide 6: Scientific
Scientific Scientific Q2 FY21 Summary $ in 000’s Q2 FY21 Q2 FY20 % Change • Revenue increase reflected positive trends at retail Revenue pharmaceutical chains and medical distribution companies, $17,893 $15,414 16.1% much of it due to demand for COVID vaccine storage Operating Income $4,234 $4,056 4
Slide 7: Engineering Technologies
Engineering Technologies Engineering Technologies $ in 000’s Q2 FY21 Q2 FY20 % Q2 FY21 Summary Change • Revenue and operating income decrease reflected the Revenue economic impact of COVID-19 on the commercial aviation $17,507 $26,495 -33.9% Operating Income market, especially engine parts manufactu
Slide 8: Specialty Solutions
Specialty Solutions Specialty Solutions Q2 FY21 Summary $ in 000’s Q2 FY21 Q2 FY20 % Change • As expected, revenue and operating income decline Revenue reflected the economic impact of COVID-19 pandemic on $22,777 $27,698 -17.8% this segment’s end markets Operating Income $3,211 $4,341 -26.0% OI Mar
Slide 9: Q2 FY21 Income Statement Summary
Q2 FY21 Income Statement Summary ($ in M's) Q2 FY21 Q2 FY20 YOY Comments Revenue $156.3 $153.7 1.7% Reflects Renco contribution and F/X partially offset by COVID-19 economic impact Organic revenue: -4.3% YOY Acquisition-related impact: +3.9% F/X impact: +2.0% Impact of COVID 19 pandemic, increased r
Slide 10: Q2 FY21 Free Cash Flow
Q2 FY21 Free Cash Flow Q2 Q2 AS REPORTED ($M) FY 21 FY 20 Net cash provided by operating activities, as reported $ 22.3 $ 7.3 Less: Capital Expenditures (5.3) (3.7) Free operating cash flow $ 17.0 $ 3.6 • Solid working capital execution and performance • Q2 FY21 Free Cash Flow inclusive of $4.8 mill
Slide 11: Q2 FY21 Capitalization
Q2 FY21 Capitalization Favorable Liquidity Profile • Net debt to adj. EBITDA of 0.9x Q2 FY21 Q1 FY21 • Net debt to total capital of 15.4% ($ in M) 12/31/2020 9/30/2020 • ~10.3x interest coverage ratio • ~$200M of available liquidity Debt including issuance costs $200.0 $199.9 Cash 109.1 93.7 • Repat
Slide 12: Standex Financial Framework
Standex Financial Framework LONGER-TERM TARGETS Organic Mid – single digit organic growth Growth EBITDA EBITDA Margin > 20% Margin Free Cash Flow FCF ~ 100% Net Income Conversion ROIC > 12% ROIC 12
Slide 13: Continued Disciplined Capital Allocation Process
Continued Disciplined Capital Allocation Process Standex cash prioritization Goal: Stay investment grade 1.5x to 3.0xleverage 1: Maintenance Capital 2: Growth Capital: IRR ≥ 20% 3: Pay down debt if highly levered 4:Acquisitions: IRR ≥ 15% 10% 5: Return cash to shareholders in the form of increased d
Slide 14: Key Takeaways
Key Takeaways In Q3 FY21 expect a moderate revenue and operating margin improvement compared to 1 fiscal second quarter 2021 results; well positioned for stronger 2H fiscal 2021 Meaningfully transformed portfolio around businesses with attractive growth and 2 margin profiles, as well as strong end m
Slide 15: Q&A
Q&A i Standex
Slide 16: Appendix
APPENDIX = 5 Standex
Slide 17: Q2 FY21 GAAP to Non-GAAP Income Bridge
Q2 FY21 GAAP to Non-GAAP Income Bridge Q2 FY21 Q2 FY20 % Change Pre-tax Net Pre-tax Net Pre-tax Net Income Tax Income EPS Income Tax Income EPS Income Income EPS Reported - GAAP $ 15.2 $ (3.2) $ 12.0 $ 0.98 $ 15.1 $ (2.8) $ 12.3 $ 0.99 0.5% -2.3% -1.0% Add: Acquisition-Related Costs 0.6 (0.1) 0.5 0.
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