Standex International Corporation · NYSE:SXI
Standex International — Q4 2015 Earnings Presentation
21 slides from Standex International's earnings presentation, Aug 25, 2015
Slide 1: Fourth Quarter Fiscal 2015 Conference Call
Fourth Quarter Fiscal 2015 Conference Call August 25, 2015
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
Slide 3: Fourth Quarter 2015 Overview
Fourth Quarter 2015 Overview YOY sales were up 1.2% to $199.8M Organic sales -0.5% Acquisitions +5.4% FX impact of -3.7% Q4 non-GAAP operating income +8.8% and non-GAAP EPS of $1.31 share up 5.6% from prior year Net debt position of $6.9M at end of Q4 Strong operating income performanc
Slide 4: Full Year Fiscal 2015 Overview
Full Year Fiscal 2015 Overview Full year sales grew 7.8% Organic sales +4.8% Acquisitive growth +5.3% FX impact -2.3% Non-GAAP EPS of $4.56/share up 8.1% YOY Strong cash generation: free cash flow per share from continuing operations at $3.41 Year of important milestones Began Transf
Slide 5: Non-GAAP Earnings Per Share Trend
Non-GAAP Earnings Per Share Trend $800 $4.56 $5.00 $4.22 $4.50 $750 $3.60 $4.00 $700 $3.33 $3.50 $2.96 $650 Adj EPS $3.00 Sales $600 $2.50 $550 $2.00 $1.50 $500 $1.00 $450 $0.50 $400 $0.00 FY 11 FY 12 FY 13 FY 14 FY 15 Sales Adj EPS Sales and EPS up YOY 7.8% and 8.1% respectively on a non-GAAP basis
Slide 6: Revenue Changes
Revenue Changes Q4 2015 Food Service Engraving Engineering Electronics Hydraulics Total YOY Change Technologies % Organic -3.5% 13.1% -14.8% 5.8% 6.3% -0.5% Acquisitions 3.5% 0.0% 29.8% 0.6% 0.0% 5.4% Currency -1.0% -11.0% -1.8% -8.7% -0.2% -3.7% Total -1.0% 2.1% 13.2% -2.4% 6.1% 1.2% YTD 2015 Food
Slide 7: Quarter Financials
Quarter Financials Q4 Q4 FY15 FY14 Delta Sales $ 199.779 $ 197.340 1.2% Operating Income $ 23.723 $ 19.218 23.4% Operating Income Margin 11.87% 9.74% 213 bps Operating Income excl Special Items $ 24.315 $ 22.352 8.8% Operating Income Margin excl Special Items 12.17% 11.33% 84 bps EBITDA $ 27.883 $ 2
Slide 8: Quarter Bridge
Quarter Bridge Net Income Q4 EPS Q4 FY 15 FY 14 % Change FY 15 FY 14 % Change Net Income Continuing Operations $ 16,288 $ 13,643 19.4% $ 1.27 $ 1.07 18.7% Add: Restructuring Charges $ 791 $ 3,028 $ 0.07 $ 0.24 Management Transition $ - $ 234 $ - $ 0.02 Acquisition-related costs $ - $ 43 $ - $ - Less
Slide 9: Full Year Fiscal 2015 Financials
Full Year Fiscal 2015 Financials YTD YTD 6/30/2015 6/30/2014 Delta Sales $ 772.142 $ 716.180 7.8% Operating Income $ 78.644 $ 65.868 19.4% Operating Income Margin 10.19% 9.20% 99 bps Operating Income excl Special Items $ 83.286 $ 76.461 8.9% Operating Income Margin % excl Special Items 10.79% 10.68%
Slide 10: Full Year FY 15 Bridge
Full Year FY 15 Bridge YTD Net Income YTD EPS 6/30/2015 6/30/2014 % Change 6/30/2015 6/30/2014 % Change Net Income Continuing Operations $ 55,243 $ 49,749 11.0% $ 4.31 $ 3.89 10.8% Add: Restructuring Charges $ 2,501 $ 7,185 $ 0.20 $ 0.56 Management Transition - Non cash stock comp $ - $ 1,206 $ - $
Slide 11: Net Working Capital NWC Turns
Net Working Capital $160 6.3 6.3 6.3 6.6 7.0 5.8 $140 6.0 $120 5.0 NWC Turns $100 NWC $’s 4.0 $80 3.0 $60 2.0 $40 $20 1.0 $- 0.0 Q4-11 Q4-12 Q4-13 Q4-14 Q4-15 NWC NWC Turns • Working capital turns were 5.8 in fiscal 2015, slightly short of our goal of 6.0. • In the prior fiscal year, working capital
Slide 12: Net Debt to Capital Ratio
Debt Management $140 20% $120 15% Net Debt to Capital Ratio $100 10% $80 Debt $60 5% $40 0% $20 -5% $- $(20) -10% $(40) -15% Q1 FY 15 Q1 FY 12 Q2 FY 12 Q3 FY 12 Q4 FY 12 Q1 FY 13 Q2 FY 13 Q3 FY 13 Q4 FY 13 Q1 FY 14 Q2 FY 14 Q3 FY 14 Q4 FY 14 Q2 FY 15 Q3 FY 15 Q4 FY 15 Net Debt Funded Debt Net Debt t
Slide 13: Capital Spending Overview
Capital Spending Overview $30 $25 $20 $15 $10 $5 $- FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 CAPEX Depreciation Amortization FY 16 capital spending is estimated to be between $24-$26M of which $6M to build facility dedicated to Aviation wins Capital spending in FY 16 supports Standex Growth Disci
Slide 14: Non-GAAP FCF Per Share Trend
Non-GAAP FCF Per Share Trend Generated Free Cash Flow over $3.00 per share in the past 5 years 14
Slide 15: Fourth Quarter FY 2015 Operational Segment Review
Fourth Quarter FY 2015 Operational Segment Review 15
Slide 16: Food Service Equipment Group
Food Services Food Service Equipment Group Q4 FY 2015 (’000s) $ Delta YOY Q4 Summary • Focus on operating performance raised group Revenues $105,276 -1.0% margins to 11.8% Operating Income $12,467 +7.7% • Refrigeration: Sales declined driven by softness OI Margin 11.8% in QSR’s. Dollar Store sales w
Slide 17: Engraving
Engraving Engraving Q4 Summary Q4 FY 2015 (’000s) $ Delta YOY • Double digit organic growth in orders and Revenues $29,172 +2.1% backlog for the quarter Operating Income $5,603 +0.1% • Strong organic growth in Europe and Asia offset by currency headwinds OI Margin 19.2% • In North America some Q4 wo
Slide 18: Engineering Technologies
Engineering Technologies Engineering Technologies Q4 Summary Q4 FY 2015 (’000s) $ Delta YOY • Sales increases year over year were driven Revenues $25,704 +13.2% by the Enginetics acquisition • Legacy business sales declined 13.8% due to Operating Income $4,004 +4.2% lower Oil, Gas and Medical sales
Slide 19: Electronics
Electronics Electronics Q4 FY 2015 (’000s) $ Delta YOY Q4 Summary Revenues $28,897 -2.4% • Orders and backlog were up due to growth in industrial, automotive and security markets Operating Income $5,302 +7.8% • Europe and Asia showed double digit organic OI Margin 18.3% sales growth offset by foreig
Slide 20: Hydraulics
Hydraulics Hydraulics Q4 FY 2015 (’000s) $ Delta YOY Revenues $10,730 +6.1% Q4 Summary Operating Income $2,116 +2.2% • Strong sales into the construction for dump OI Margin 19.7% truck and dump trailer markets • Continued to capture refuse business through Custom Hoist at Waste Expo Las Vegas produc
Slide 21: Summary
Summary Q4 showed operating income improvements in all five businesses Adjusted EPS expanded 5.6% Balance sheet is well positioned to fund growth, CAPEX, and acquisitions Will continue to develop the Standex Value Creation System to drive organic growth initiatives and cost reduction efforts
Standex International — Q4 2015 Earnings Presentation on 6ix