Standex International Corporation · NYSE:SXI
Standex International — Q4 2024 Earnings Presentation
17 slides from Standex International's earnings presentation, Aug 2, 2024
Slide 1: Fiscal Fourth Quarter and Fiscal Year 2024 Earnings Call Presentation
Fiscal Fourth Quarter and Fiscal Year 2024 Earnings Call Presentation August 2, 2024
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT Statements contained in this Quarterly Report 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 terminolo
Slide 3: Key Q4 FY24 and FY24 Messages
KEY Q4 FY24 AND FY24 MESSAGES SALES PROFILE ▪ In Q4 FY24, sales declined 4.3% with contributions from acquisitions and fast growth markets partially offsetting organic decline ▪ Fast growth market sales increased ~13% YOY to $27 million in Q4 FY24; In FY24, fast growth market sales increased ~13% YO
Slide 4: Stage Set for Record Number of Releases in FY25
STAGE SET FOR RECORD NUMBER OF RELEASES IN FY25 $25.0 3.5% 2.8% 3.0% $20.0 2.3% 2.5% $15.0 1.7% 2.0% 1.5% $10.0 1.1% $20.5 1.5% 1.0% $17.2 1.0% $12.2 $5.0 $9.5 $6.3 $6.9 0.5% $0.0 0.0% 2019 2020 2021 2022 2023 2024 (USD in Millions) R&D as % of Sales R&D R&D Spending Began to Ramp 5 Years Ago and Re
Slide 5: Q4 FY24 Summary
Q4 FY24 SUMMARY Standex International Corporation Fourth Quarter Ended June 30 ($ in millions) Q4 FY24 Q4 FY23 Y/Y △% Comments Net sales 180.2 188.3 -4.3% Organic growth: (9.4%) Acquisitions/Divestitures: 6.2% F/X: (1.1%) Adjusted operating income 28.7 29.1 -1.0% Interest expense 1.3 1.2 5.1% Non-Op
Slide 6: Electronics
ELECTRONICS YOY Comparison Q4 FY24 Summary $ in millions Q4 FY24 Q4 FY23 % Change ▪ Revenue increased approximately $0.5 million or 0.6% YOY reflecting a 14.6% benefit from recent Revenue 80.4 79.9 0.6% acquisitions, mostly offset by a foreign currency impact of 1.6% and an organic decline of 12.3%
Slide 7: Engraving and Scientific
ENGRAVING YOY Comparison Q4 FY24 Summary ▪ Organic decline of 21.0% YOY due to delays in $ in millions Q4 FY24 Q4 FY23 % Change new platform rollouts in North America Revenue 32.7 42.4 -22.8% ▪ Operating income decreased 50.0% due to slower demand in North America Operating Income 3.9 7.9 -50.0% OI
Slide 8: Engineering Technologies and Specialty Solutions
ENGINEERING TECHNOLOGIES YOY Comparison Q4 FY24 Summary $ in millions Q4 FY24 Q4 FY23 % Change ▪ YOY organic growth of 15.9% driven by improvement in aviation end markets, more Revenue 25.3 21.8 15.7% favorable project timing, and growth in new Operating Income 5.3 3.1 70.4% applications OI Margin %
Slide 9: Q4 FY24 Capitalization
Q4 FY24 CAPITALIZATION Standex International Corporation CAPITAL SPENDING AND D&A ($ in millions) 6/30/2024 3/31/2024 ▪ $6.5M of CAPEX in Q4 FY24 compared to Debt including issuance costs 148.9 148.8 $7.6M in Q4 FY23 Cash 154.2 138.8 ▪ CAPEX expected to be between $35M to $40M in FY25 Net (Cash) Deb
Slide 10: Key Takeaways
KEY TAKEAWAYS ▪ Record financial performance in FY24 driven by operational execution and higher sales into fast growth end markets ▪ Record adjusted gross margin of 39.4% increased 90 bps YOY ▪ Record adjusted operating margin of 15.8% increased 60 bps YOY ▪ Record adjusted EPS of $7.01 increased 4.
Slide 11: Appendix
APPENDIX 11
Slide 12: Standex Financial Framework
STANDEX FINANCIAL FRAMEWORK LONGER-TERM TARGETS (by FY28) Sales > $1B (High-single-digit organic growth) Adj. Operating Margin * > 19% FCF Conversion ~100% GAAP Net Income ROIC ** > 15% EXPECT SALES TO EXCEED $1 BILLION WITHIN 5 YEARS * Adjusted figures exclude the impact of restructuring charges, p
Slide 13: Q4 FY24 Segment Snapshot
Q4 FY24 SEGMENT SNAPSHOT Segment Breakdown ($ in millions) Q4 FY24 Q4 FY23 Y/Y △% Comments Net Sales by Segment Electronics 80.4 79.9 0.6% Organic decline of 12.3%; Acquisitions: 14.6%; F/X: -1.6% Engraving 32.7 42.4 -22.8% Organic decline of 21.0%; F/X: -1.9% Scientific 17.5 18.3 -4.1% Organic decl
Slide 14: Q4 FY24 Revenue Drivers
Q4 FY24 REVENUE DRIVERS Q4 FY24 Electronics Engraving Scientific Engineering Specialty Total YOY Change % Technologies Solutions Organic (12.3%) (21.0%) (4.1%) 15.9% (6.3%) (9.4%) Divestiture 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Acquisitions 14.6% 0.0% 0.0% 0.0% 0.0% 6.2% Currency (1.6%) (1.9%) 0.0% (0.2%)
Slide 15: FY24 Segment Snapshot
FY24 SEGMENT SNAPSHOT Segment Breakdown ($ in millions) FY24 FY23 Y/Y △% Comments Net Sales by Segment Electronics 322.0 305.9 5.3% Organic decline of 7.4%; Acquisitions: 13.2%; F/X: -0.5% Engraving 150.7 152.1 -0.9% Organic decline of 0.7%; F/X: -0.2% Scientific 68.9 74.9 -8.0% Organic decline of 8
Slide 16: Total Year FY24 Revenue Drivers
TOTAL YEAR FY24 REVENUE DRIVERS FY24 YTD Electronics Engraving Scientific Engineering Specialty Total YOY Change % Technologies Solutions Organic (7.4%) (0.7%) (8.0%) 2.9% (8.1%) (5.1%) Divestiture 0.0% 0.0% 0.0% 0.0% (16.7%) (2.9%) Acquisitions 13.2% 0.0% 0.0% 0.0% 0.0% 5.5% Currency (0.5%) (0.2%)
Slide 17: Q4 FY24 GAAP to Non-GAAP Income Bridge
Q4 FY24 GAAP TO NON-GAAP INCOME BRIDGE Standex International Corporation Q4 FY24 Q4 FY23 % Change Pre-tax Net Pre-tax Net Pre-tax Net Income Tax Income EPS Income Tax Income EPS Income Income EPS Reported - GAAP $25.6 $(5.9) $19.7 $1.66 $27.2 $(7.0) $20.2 $1.68 -6.0 -2.5 -1.2 Add: Restructuring char
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