Standex International Corporation · NYSE:SXI
Standex International — Q4 2012 Earnings Presentation
25 slides from Standex International's earnings presentation, Aug 28, 2012
Slide 1: Fourth Quarter Fiscal 2012 Conference Call
Food Service Equipment INTERNATIONAL CORPORATION Engraving Engineering Electronics Hydraulics Technologies FFourth h Quarter Q Fi Fiscall 2012 Conference Call August 28, 2012
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: Fourth Quarter 2012 Overview
Fourth Quarter 2012 Overview Positive results demonstrate success of growth strategy Strong YOY sales growth in Q4 Q4 total sales up 5.0% Organic sales +6.5% FX impact of -1.5% 1 5% Four of five groups reported YOY sales growth 3 groups grew the top line double digits All five groups
Slide 4: Full Year Fiscal 2012 Overview
Full Year Fiscal 2012 Overview • Full year sales grew 9.2% – Organic sales +6.9% – Acquisitive growth +2.4% – FX impact -0.2% • Second consecutive record year for non-GAAP EPS – Non-GAAP EPS of $3.39/share $3 39/share up 14.1% 14 1% YOY • Ended the year in a net cash position of $4.7M after making $
Slide 5: Acquisition of Meder Electronics
Acquisition of Meder Electronics • Meder will become part of Electronics reporting segment integrated with Standex Electronics • Meder CY2011 financial performance – Sales €46M – EBITDA > 13% • Combined business proforma financials – Sales ≈ $104M – EBITDA≈ $17M • Anticipated accretion – FY13 $.08-$
Slide 6: Sales by Country
Sales by Country Europe Asia 6% 9% Europe (Other) 22% Germany Canada 41% 10% USA & Canada 17% USA Asia 75% 20% Europe (Other) 14% Asia 15% USA & Canada 48% Germany 23% 6
Slide 7: Sales by Product Category
‘ standex Sales by Product Category Connectors Other 9% M E D E R Connectors r A Standex electronic 4% a Electronics acStandex
Slide 8: Sales by Industry Segment
Sales by Industry Segment _ Other Utilities Other security 8% Household_ 3% Test & Security__5% Measurement 6% Se 12% HVAC (oR 6% Medical 12% Military / i! Aerospace 11% =< Military/ jyyqc Utilities Other = Standex Aerospace. “3, 1% 7% 8) Electronics Security 6% | Test & Measurement 7% HStandex [MED
Slide 9: Historical Financial Performance
Historical Financial Performance Cost structure in place, organic and acquisition initiatives working = EPS Expansion $4 00 $4.00 $640 $3.50 $3.39 $620 Recession and $2.97 $3.00 Major Restructuring $600 $2.41 $580 $2.50 $560 $2.00 $1.60 $540 $1 50 $1.50 $1.32 $520 $1.00 $500 FY 2008 FY 2009 FY 2010
Slide 10: Quarterly Results
Quarterly Results Q4 Q4 FY 2012 FY 2011 Delta ($ in thousands, except per share data) Sales $ 169.800 $ 161.694 5.0% Operating Income $ 18.525 $ 15.548 19.1% Operating Income Margin 10.91% 9.62% 129 bps Operating Income excl Special Items $ 19.220 $ 16.499 16.5% Operating Income Margin % excl Specia
Slide 11: Quarterly Bridge
Quarterly Bridge Proforma net income and EPS at +12% improvement YOY ($ in thousands,, except p pper share data)) Net Income Q4 EPS Q4 Quarter Comparison Prior Year FY 12 FY 11 % Change FY 12 FY 11 % Change Net Income Continuing Operations $ 13,486 $ 10,921 23.5% $ 1.05 $ 0.86 22.1% Add: Restructuri
Slide 12: Full Year Results
Full Year Results Full Year Full Year ($ in thousands, except per share data) FY 2012 FY 2011 Delta Sales $ 634.640 $ 581.369 9.2% Operating Income $ 64.580 $ 55.256 16.9% Operating Income Margin 10.18% 9.50% 67 bps Operating Income excl Special Items $ 61.951 $ 55.586 11.5% Operating Income Margin
Slide 13: Full Year Bridge
Full Year Bridge Proforma net income and EPS at +14% improvement YOY ($ in thousands,, except p pper share data)) YTD EPS YTD YTD Comparison FY 12 FY 11 % Change FY 12 FY 11 % Change Net Income Continuing Operations $ 46,907 $ 38,026 23.4% $ 3.67 $ 2.98 23.2% Add: Restructuring (Tax Affected) $ 1,10
Slide 14: Net Working Capital
Net Working Capital 6/30/2012 Net Receivables $ 99,432 350,000 7.0 Days Sales Outstanding 52 6.3 6.2 5.9 5.9 5.8 5.8 300,000 6.0 5..4 5.4 4 Inventories 72,955 5.1 250,000 5.0 Turns 6.0 4.3 3.7 200,000 4.0 3.5 Accounts Payable (61,992) 150,000 3.0 Days Payable Outstanding 45 100,000 2.0 Net Working C
Slide 15: Debt Management
Debt Management 6/30/2012 $180,000 Short Term Debt $ - $160,000 55% Long Term Debt 50,000 $140,000 45% Funded Debt 50,000 $120 000 $120,000 35% Less: Cash (54,749) $100,000 $80,000 Net Debt $ (4,749) 25% $60,000 $40,000 15% Shareholder's Equity $ 242,907 $20,000 5% $0 ($20,000) Q4 01 Q4 02 Q4 03 Q4
Slide 16: SXI Free Cash Flow
SXI Free Cash Flow FCF Per Share $5.00 $4.50 $4.31 $4.00 $3 50 $3.50 $3.40 $3.00 $2.84 $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 FY 2010* FY 2011 FY 2012* FCF Per Share *Adjusted for Voluntary Pension Contributions Continuing Operations Q4 Q4 Free operating cash flow: FY2012 FY2011 FY2012 FY2011 Net cash
Slide 17: Capital Spending
Capital Spending $20,000 $15,000 $13,000 to $16,000 $12,000 to $13,000 $10,901 $10,778 $10,233 $10,000 $6,772 $4,000 to $5,000 $4,500 $2,374 $2,712 $0 FY 2011 FY 2012 FY 2013 CAPEX Depreciation Amortization • Key CAPEX Projects – Food F d Service S i – Further F th investments i t t in i metalt l fo
Slide 18: Fourth Quarter FY12 Operational Segment Review
Fourth QQuarter FY12 Operational Segment Review 18
Slide 19: Food Service Equipment Group
Food Service Equipment Group Q4’12 (‘000s) $ Δ% (yoy) Revenues $100,749 3.9% Operating Income $11,111 11.2% • Good sales growth at Refrigerated Solutions – Continuing strength at Quick Serve Chains – Progress in Dollar Store segment – New Products (rack refrigeration and value line refrigeration) sh
Slide 20: Engraving Group
Engraving Group Q4’12 (‘000s) $ Δ% (yoy) Revenues $24,762 13.5% Operating Income $4,896 48.0% • Strong demand and record year performance for mold texturizing business g oba y globally – Share gains driven by global infrastructure and technology • Improvements in Innovent business driven by new prod
Slide 21: Engineering Technologies Group
Engineering Technologies Group Q4’12 (‘000s) $ Δ% (yoy) Revenues $22,673 -5.7% Operating Income $4,964 2.9% • Difficult YOY comparison as prior year included large aerospace and navyy nuclear shipments p • Metal Spinners continues to benefit from oil and gas segment – Expect first half oil and gas s
Slide 22: Electronics Group
Electronics Group Electronics YOY Revenue Change Q4’12 (‘000s) $ Δ% 20,000 (yoy) 18,000 16,000 Revenues $13,355 11.5% 51.5% 14,000 42.8% 35.3% 12 000 12,000 23.0% 10,000 16.3% 11.5% 6.9% 8,000 -0.1%-0.5%-2.3% 4.3% 0.6% -0.7% 0.6% 1.9% Operating Income $2,556 34.8% 6,000 4,000 -11.2% -33.5% -19.8% -3
Slide 23: Hydraulics Group
Hydraulics Group Hydraulics YOY Revenue Q4’12 (‘000s) $ Δ% 10,000 60% 43.8%42.7%42.0% (yoy) 9,000 39.4%39.8% 40% 8,000 28.1% 24.3% 19.9% Revenues $8,261 19.9% 7,000 20% 6,000 -2.1%-2.4%-5.0% 0 8% 0.8% 5,000 -7.5% -5.5% 0% -12.2% 4,000 Operating Income $1,402 74.4% 3,000 2,000 -32.7% -37.0% -20% -46.
Slide 24: Summary
Summary • Q4 was a record quarterly finish to a record year in FY12 • Success in Q4 and FY12 is the result of organic and acquisitive growth initiatives and focus on operational excellence • Exited FY12 in a net cash position for the first time in company history • Some headwinds expected for FY13 •
Slide 25: Q & A Session
Q&A Session 25
Standex International — Q4 2012 Earnings Presentation on 6ix