Standex International Corporation · NYSE:SXI
Standex International — Q4 2020 Earnings Presentation
17 slides from Standex International's earnings presentation, Aug 25, 2020
Slide 1: Fourth Quarter Fiscal 2020 Conference Call Presentation
Fourth Quarter Fiscal 2020 Conference Call Presentation August 25, 2020
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 Q4 FY20 Messages
Key Q4 FY20 Messages • Continued focus on safety and health of employees, customers and suppliers; high degree of global collaboration Q4 FY20 RESULTS • Q4 FY20 results in line with Company expectations, despite very challenging operating environment &TRENDS • Since the end of April, end markets hav
Slide 4: Electronics
Electronics Electronics Q4 FY20 Summary $ in 000’s Q4 FY20 Q4 FY19 % Change • Sales decrease primarily reflected COVID-19 impact on North Revenue $44,773 $49,726 -10.0% America and European markets partially offset by a modest recovery in Asia Operating Income $5,856 $8,645 -32.3% OI Margin 13.1% 17
Slide 5: Engraving
Engraving Engraving Q4 FY20 Summary $ in 000’s Q4 FY20 Q4 FY19 % Change • Revenue decrease primarily due to delays in the receipt of tools Revenue $31,618 $38,091 -17.0% from customers; some volume shifting to Q1 FY21 with auto OEMs continuing to hold their new program rollout schedules Operating In
Slide 6: Scientific
Scientific Scientific Q4 FY20 Summary $ in 000s Q4 FY20 Q4 FY19 % Change • Revenue and operating income decreased YOY reflecting a market shift toward consumable protective equipment due to the Revenue $12,689 $15,292 -17.0% COVID-19 pandemic with less emphasis on capital equipment Operating Income
Slide 7: Engineering Technologies
Engineering Technologies Engineering Technologies $ in 000s Q4 FY20 Q4 FY19 % Q4 FY20 Summary Change • Sales decreased YOY reflecting lower aviation-related sales offset Revenue $26,178 $33,452 -21.7% partially by increased sales in the space end market Operating Income $4,149 $4,534 -8.5% • Despite
Slide 8: Specialty Solutions
Specialty Solutions Specialty Solutions Q4 FY20 Summary $ in 000s Q4 FY20 Q4 FY19 % Change • As expected, revenue decreased YOY associated with the Revenue $24,128 $32,182 -25.0% economic impact of COVID-19 on several end markets including food service equipment and hospitality markets at the Operat
Slide 9: Q4 FY20 Income Statement Summary
Q4 FY20 Income Statement Summary ($ in M's) Q4 FY20 Q4 FY19 YOY Comments Revenue $139.4 $168.7 -17.4% Components of revenue decline: Organic -16.4% Acquisitions +0.1% F/X impact of -1.1% Gross Margin 33.7% 35.7% -200 bps Contribution margin decline due to volume loss, partially offset by productivit
Slide 10: Q4 FY20 Free Cash Flow
Q4 FY20 Free Cash Flow Q4 Q4 AS REPORTED ($M) FY 20 FY 19 Net cash provided by operating activities, as reported $ 25.2 $ 43.4 Less: Capital Expenditures (5.7) (15.6) Free operating cash flow $ 19.5 $ 27.8 • Net cash provided by operating activities decrease primarily reflects lower net income year-
Slide 11: Q4 FY20 Capitalization
Q4 FY20 Capitalization Favorable Liquidity Profile • Net debt to adj. EBITDA of 0.81x • Net debt to total capital of 14.8% (in $M) Q4 FY20 Q3 FY20 Debt (with-issuance costs) 199.1 212.1 • ~9x interest coverage ratio Cash 118.8 109.3 • ~$200M of available liquidity Net Debt 80.3 102.8 Net Debt to Cap
Slide 12: Q4 FY20 Reporting Segment Realignment
Q4 FY20 Reporting Segment Realignment Prior Reporting Segments Current Reporting Segments Q4 FY20 Revenue ($ in 000's) Q4 FY20 Revenue ($ in 000's) Electronics $44,773 Electronics $44,773 Engraving 31,618 Engraving 31,618 Engineering Technologies 26,178 Scientific 12,689 Hydraulics 13,108 Engineerin
Slide 13: Key Takeaways
Key Takeaways Standex expects revenue to be flat to slightly above fiscal fourth quarter and operating 1 margin to improve on a sequential basis in fiscal first quarter 2021 Proactively managing portfolio and building higher margin growth businesses into 2 more significant platforms; divested Refrig
Slide 14: Q&A
Q&A HT Standex
Slide 15: Appendix
APPENDIX = 5 Standex
Slide 16: Q4 FY20 GAAP to Non-GAAP Bridge
Q4 FY20 GAAP to Non-GAAP Bridge Q4 FY20 Q4 FY19 % Change Pre-tax Net Pre-tax Net Pre-tax Net Income Tax Income EPS Income Tax Income EPS Income Income EPS Reported - GAAP $ 8.9 $ (2.8) $ 6.1 $ 0.50 $ 17.2 $ (4.9) $ 12.4 $ 0.99 -48% -51% -50% Add: Restructuring Charges 1.9 (0.4) 1.5 0.12 0.5 (0.1) 0.
Slide 17: Fiscal 2020 Quarterly Results Under New Reporting Structure
Fiscal 2020 Quarterly Results Under New Reporting Structure 1Q20A 2Q20A 3Q20A 4Q20A FY20A Revenue ($ in 000's) Electronics $46,617 $45,834 $48,069 $44,773 $185,294 Engraving 38,431 38,256 35,431 31,618 143,736 Scientific 14,750 15,414 14,670 12,689 57,523 Engineering Technologies 24,644 26,495 26,73
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