Standex International Corporation · NYSE:SXI
Standex International — Q3 FY2012 Earnings Presentation
21 slides from Standex International's earnings presentation, May 1, 2012
Slide 1: Third Quarter Fiscal 2012 Conference Call
Food Service Equipment INTERNATIONAL CORPORATION Engraving Engineering Electronics Hydraulics Technologies Third Quarter Fiscal 2012 Conference Call May 1, 2012 1
Slide 2: Agenda
Agenda Overview Roger Fix – President & Chief Executive Officer Financial Review Tom DeByle – Chief Financial Officer Segment Results and Outlook Roger Fix – President & Chief Executive Officer Statements in this presentation include, or may be based upon, management's current expectations, es
Slide 3: Third Quarter 2012 Overview
Third Quarter 2012 Overview Positive results demonstrate success of growth strategy Strong YOY sales growth in Q3 Q3 total sales up 12.2% Organic sales +10.4% Acquisition growth +2.3% FX impact of -0.5% All five groups reported YOY sales growth Non-GAAP operating income +19.8% and no
Slide 4: A Story of Transformation
A Story of Transformation TTM EPS 89% higher than pre-recession peak Start of $3.50 Sales and EPS Recession $3.28 continue to grow $3.16 $640 $3.06 $2.97 $3.00 Major Restructuring $620 $2.77 $2.71 $2.51 $600 $2.50 $2.40 $2.15 $580 $2.00 $1.85 $560 $1.74 $1.60 $540 $1.47 $1.50 $1.50 $1.43 $1.37 $1.32
Slide 5: Giorik Overview
Giorik Overview • Giorik is an Italian “hot side” food service equipment company with a full line of products being sold into the European market with annual sales of $17M • SXI to be exclusive distributor of Giorik’s “Steambox” combi oven in North America and the UK – Fills critical product gap in
Slide 6: Giorik Steambox Combi Oven Features
Giorik Steambox Combi Oven Features • Steambox combination steam and convection oven line includes patent pending features: • “Smart Steam” - Small boiler system that offers steam quality of boiler type combi ovens with recovery speed of boilerless technology • “Steam Tuner” - Advanced humidity cont
Slide 7: Transactions Completed During Q3
Transactions Completed During Q3 Completed the sale of the Air Distribution Products (ADP) business Sale price: $16.1M ($13.1M of cash and a secured note for $3M) Recorded additional loss of $.19/share against discontinued operations Completed the sale of Engraving facility in Sao Paulo, Bra
Slide 8: Quarterly Results
Quarterly Results Q3 Q3 FY 2012 FY 2011 Delta ($ in millions, except per share data) Sales $ 150.666 $ 134.321 12.2% Operating Income $ 15.565 $ 8.152 90.9% Operating Income Margin 10.33% 6.07% 426 bps Operating Income excl Special Items $ 11.018 $ 9.197 19.8% Operating Income Margin % excl Special
Slide 9: Quarterly Bridge
Quarterly Bridge Proforma net income and EPS at +26% improvement YOY ($ in thousands, except per share data) Net Income Q3 EPS Q3 Quarter Comparison Prior Year FY 12 FY 11 % Change FY 12 FY 11 % Change Net Income Continuing Operations $ 11,525 $ 5,896 95.5% $ 0.90 $ 0.46 95.7% Add: Restructuring (Ta
Slide 10: Year to Date Results
Year to Date Results YTD YTD ($ in millions, except per share data) FY 2012 FY 2011 Delta Sales $ 464.840 $ 419.675 10.8% Operating Income $ 46.055 $ 39.708 16.0% Operating Income Margin 9.91% 9.46% 45 bps Operating Income excl Special Items $ 42.731 $ 39.087 9.3% Operating Income Margin % excl Spec
Slide 11: Year to Date Bridge
Year to Date Bridge Proforma net income and EPS at +13% improvement YOY ($ in thousands, except per share data) YTD EPS YTD YTD Comparison FY 12 FY 11 % Change FY 12 FY 11 % Change Net Income Continuing Operations $ 33,421 $ 27,103 23.3% $ 2.62 $ 2.13 23.0% Add: Restructuring (Tax Affected) $ 951 $
Slide 12: Working Capital & WC Turns
0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 Q4-01 3.5 3.2 Q2-02 3.5 3.3 Q4-02 3.7 3.8 Q2-03 4.2 4.0 Q4-03 4.3 3.5 Q2-04 4.0 4.0 Q4-04 5.4 4.3 Q2-05 5.4 5.0 Q4-05 5.8 NWC 5.0 Q2-06 5.1 5.3 Q4-06 5.4 4.8 Q2-07 4.7 4.9 Q4-07 5.1 5.2 Q2-08 5.1 5.1 Q4-08 5.9 5.3 NWC Turns Q2-09 4.9 5.2 Q4-09
Slide 13: Free Cash Flow and Net Debt
Free Cash Flow and Net Debt Continuing Operations Q3 Q3 Free operating cash flow: FY2012 FY2011 Net cash provided by operating activities, as reported $ 14,117 $ 8,160 Less: Capital Expeditures (3,149) (1,556) Free operating cash flow $ 10,968 $ 6,604 Net Income 11,525 5,896 Conversion of free opera
Slide 14: Third Quarter FY12 Operational Segment Review
Third Quarter FY12 Operational Segment Review 14
Slide 15: Food Service Equipment Group
Food Service Equipment Group Q3’12 (‘000s) $ Δ% (yoy) Revenues $87,906 5.6% Operating Income $6,418 (5.5)% Refrigerated Solutions Strong demand from both quick serve and national restaurant chain segments Dollar store segment continues to grow Drug retail market still down YOY Introducing
Slide 16: Engraving Group
Engraving Group Q3’12 (‘000s) $ Δ% (yoy) Revenues $24,028 9.3% Operating Income $4,712 32.5% Excellent performance driven by record Mold-Tech sales Strength across North America, China and Europe Gaining share at key global automotive OEM’s Continuing to move forward with emerging economy st
Slide 17: Engineering Technologies Group
Engineering Technologies Group Q3’12 (‘000s) $ Δ% (yoy) Revenues $18,765 70.7% Operating Income $3,083 97.2% Metal Spinners acquisition drove top-line growth Strong demand from oil & gas market Improved land-based gas turbine demand in legacy Spincraft business Visibility remains limited S
Slide 18: Electronics Group
Electronics Group Q3’12 (‘000s) $ Δ% (yoy) Revenues $11,973 3.0% Operating Income $2,226 19.7% Significant operating leverage resulting from cost reduction initiatives Reed switch sales rebounding in Asia Pacific market Excellent new product and new customer pipeline Initial launches in Q3 w
Slide 19: Hydraulics Group
Hydraulics Group Q3’12 (‘000s) $ Δ% Hydraulics YOY Revenue 10,000 60% (yoy) 9,000 39.4%39.8% 43.8%42.7%42.0% 40% 8,000 28.1% 24.3% Revenues $7,994 24.2% 7,000 20% 6,000 -2.1%-2.4% -5.0% 0.8% 5,000 -7.5% -5.5% 0% -12.2% 4,000 Operating Income $1,544 124.1% 3,000 2,000 -32.7% -37.0% -20% -47.4%-46.6%
Slide 20: Summary
Summary Continuing to execute on Focused Diversity strategy Solid performance in third quarter Organic initiatives contributing to sales growth Metal Spinners acquisition a success Significant progress in paying down debt Strong balance sheet to support strategic bolt-on acquisitions and o
Slide 21: Q & A Session
Q&A Session 21
Standex International — Q3 FY2012 Earnings Presentation on 6ix