Slide 1: Second Quarter Fiscal 2024 Earnings Call Presentation
Second Quarter Fiscal 2024 Earnings Call Presentation February 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 Q2 FY24 Messages
KEY Q2 FY24 MESSAGES SALES PROFILE ▪ Fast growth market sales increased ~14% YOY to $21 million in Q2 FY24 ▪ Organic decline of ~7.4% primarily due to project timing in the Engineering Technologies Segment and transitory market softness; anticipate market conditions to improve in fiscal fourth quart
Slide 4: Standex Performance Over 10 Years
STANDEX PERFORMANCE OVER 10 YEARS 10 Year Value Creation Market Cap grew from $665M to $1,800M Share Price vs. Indices Jan 2014 – Jan 2024 Russell 2000 ~75% SXI ~160% S&P 500 ~175% Standex appreciation more than 2x Russell 2000 Standex appreciation in line with large cap S&P 500 Financial Performanc
Slide 5: Delivered by Steady Execution of Our Strategy
DELIVERED BY STEADY EXECUTION OF OUR STRATEGY Strategy as communicated 10 years ago: • Become an Operating Company composed of larger strategic business platforms with defensible competitive advantage serving growing end markets • Develop and deploy standard management process • Platform businesses
Slide 6: In Feb. 2021 We Announced 3 to 5 Year Targets
IN FEB. 2021 WE ANNOUNCED 3 TO 5 YEAR TARGETS Which we have essentially met… From February 5, 2021 Now, three years later our recent performance LONGER-TERM TARGETS Sales Three Year CAGR: ~6% Mid-single-digit organic growth Adj. EBITDA Margin > 20% Q2 24 Adj. EBITDA: ~19.6% FCF Conversion ~100% GAAP
Slide 7: Now Applying Ourselves to Our Next Targets
NOW APPLYING OURSELVES TO OUR NEXT TARGETS UPDATED LONGER-TERM TARGETS (by FY28) Sales > $1B (High-single-digit organic growth) Adj. Operating Margin * > 19% FCF Conversion ~100% GAAP Net Income ROIC ** > 15% • Continue to execute the same strategy • Continue to strengthen our standard management pr
Slide 8: Q2 FY24 Summary
Q2 FY24 SUMMARY Standex International Corporation Second Quarter Ended December 31 ($ in millions) Q2 FY24 Q2 FY23 Y/Y △% Comments Net sales 178.4 187.8 -5.0% Organic growth: (7.4%) Acquisitions/Divestitures: 1.8% F/X: 0.6% Adjusted operating income 28.7 28.6 0.3% Interest expense 1.0 1.6 -34.9% Non
Slide 9: Electronics
ELECTRONICS YOY Comparison Q2 FY24 Summary $ in millions Q2 FY24 Q2 FY23 % Change ▪ Revenue increased approximately $6.9 million or 9.5% YOY reflecting a 14.7% benefit from the recent Revenue 79.4 72.6 9.5% Minntronix acquisition and a 0.5% benefit from FX, partially offset by an organic decline of
Slide 10: Engraving and Scientific
ENGRAVING YOY Comparison Q2 FY24 Summary ▪ YOY organic revenue growth of 6.7%, solid $ in millions Q2 FY24 Q2 FY23 % Change demand in Europe Revenue 40.8 37.7 8.4% ▪ Operating income increased 39.8% due to organic growth and continued realization of Operating Income 8.9 6.4 39.8% productivity action
Slide 11: Engineering Technologies and Specialty Solutions
ENGINEERING TECHNOLOGIES YOY Comparison Q2 FY24 Summary $ in millions Q2 FY24 Q2 FY23 % Change ▪ YOY organic decline driven by project timing Revenue 19.9 24.2 -17.8% ▪ Operating income decrease reflects lower volume and higher R&D expenses, mostly offset Operating Income 3.4 3.7 -9.0% by pricing an
Slide 12: Q2 FY24 Capitalization
Q2 FY24 CAPITALIZATION Standex International Corporation CAPITAL SPENDING AND D&A ($ in millions) 12/31/2023 9/30/2023 ▪ $4.3M of CAPEX in Q2 FY24 compared to Debt including issuance costs 148.7 148.6 $5.8M in Q2 FY23 Cash 142.4 126.8 ▪ CAPEX expected to be between $25M to $30M in FY24 Net (Cash) De
Slide 13: Key Takeaways
KEY TAKEAWAYS ▪ Q2 FY24 highlights: ▪ Fast Growth market sales grew by ~14% ▪ Unfavorable project timing in Engineered Technologies segment and transitory market softness impacting top line; Expect improved market conditions in fiscal fourth quarter 2024 ▪ Record adjusted gross margin of 40.3% incre
Slide 14: Appendix
APPENDIX 14
Slide 15: Q2 FY24 Segment Snapshot
Q2 FY24 SEGMENT SNAPSHOT Segment Breakdown ($ in millions) Q2 FY24 Q2 FY23 Y/Y △% Comments Net Sales by Segment Electronics 79.4 72.6 9.5% Organic decline of 5.7%; Acquisitions: 14.7%; F/X: 0.5% Engraving 40.8 37.7 8.4% Organic growth of 6.7%; F/X: 1.7% Scientific 16.3 19.3 -15.6% Organic decline of
Slide 16: Q2 FY24 Revenue Drivers
Q2 FY24 REVENUE DRIVERS Q2 FY24 Electronics Engraving Scientific Engineering Specialty Total YOY Change % Technologies Solutions Organic (5.7%) 6.7% (15.6%) (18.1%) (14.6%) -7.4% Divestiture 0.0% 0.0% 0.0% 0.0% (20.9%) (3.8%) Acquisitions 14.7% 0.0% 0.0% 0.0% 0.0% 5.7% Currency 0.5% 1.7% 0.0% 0.3% 0
Slide 17: Q2 FY24 GAAP to Non-GAAP Income Bridge
Q2 FY24 GAAP TO NON-GAAP INCOME BRIDGE Standex International Corporation Q2 FY24 Q2 FY23 % Change Pre-tax Net Pre-tax Net Pre-tax Net Income Tax Income EPS Income Tax Income EPS Income Income EPS Reported - GAAP $24.5 $(5.4) $19.1 $1.61 $26.3 $(6.2) $20.1 $1.69 -7.0 -5.0 -4.7 Add: Restructuring char