Standex International Corporation · NYSE:SXI
Standex International — Q4 2023 Earnings Presentation
17 slides from Standex International's earnings presentation, Aug 4, 2023
Slide 1: Fourth Quarter Fiscal 2023 Earnings Call Presentation
Fourth Quarter Fiscal 2023 Earnings Call Presentation August 4, 2023
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT Statements contained in this presentation 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 terminology s
Slide 3: Key Q4 FY23 Messages
KEY Q4 FY23 MESSAGES GROWTH PROFILE ▪ Organic growth of ~ 7.8%; led by Engraving and Electronics with double digits organic growth YOY ▪ Fast growth market sales increased ~67% YOY to $24 million in Q4 FY23. Fast growth market sales expected to increase >20% from $83M in FY23 to >$100M in FY24 ▪ Acq
Slide 4: Minntronix Acquisition Highlights
Minntronix Acquisition Highlights Overview Products Transaction Summary ▪ Headquarters in Watertown, ▪ Transformers and Inductors ▪ Purchase price of $30 million South Dakota ▪ Current Sensors ▪ Valuation at ~8.5x multiple of ▪ Wide applications across Cable ▪ RF Coils and Magnetics LTM June 2023 EB
Slide 5: Q4 FY23 Summary
Q4 FY23 SUMMARY Standex International Corporation Fourth Quarter Ended June 30 ($ in millions) Q4 FY23 Q4 FY22 Y/Y △% Comments Net sales 188.3 184.7 1.9% Organic growth: 7.8% Acquisitions/Divestitures: -5.0% F/X: -0.8% Adjusted operating income 29.1 25.7 13.2% Interest expense 1.2 1.4 -11.0% Provisi
Slide 6: Electronics
ELECTRONICS YOY Comparison Q4 FY23 Summary $ in millions Q4 FY23 Q4 FY22 % Change ▪ Organic revenue growth of 12.3% YOY driven by strength of fast growth end markets, partially Revenue 79.9 71.9 11.1% offset by a slow recovery in China and Europe and foreign exchange impact of 1.2% GAAP Operating 16
Slide 7: Engraving and Scientific
ENGRAVING YOY Comparison Q4 FY23 Summary ▪ Strong YOY organic revenue growth of 15.5%, $ in millions Q4 FY23 Q4 FY22 % Change driven by strong demand in Europe and growth in soft trim applications in Asia, partially offset Revenue 42.4 37.2 14.0% by foreign exchange impact Operating Income 7.9 6.0 3
Slide 8: Engineering Technologies and Specialty Solutions
ENGINEERING TECHNOLOGIES YOY Comparison Q4 FY23 Summary $ in millions Q4 FY23 Q4 FY22 % Change ▪ Revenue increased slightly YOY Revenue 21.8 21.6 1.3% ▪ Operating income decreased reflecting an increase in the number of new platform Operating Income 3.1 3.2 -4.4% development projects, mostly offset
Slide 9: Q4 FY23 Capitalization
Q4 FY23 CAPITALIZATION Standex International Corporation CAPITAL SPENDING AND D&A ($ in millions) 6/30/2023 3/31/2023 ▪ $7.6M of CAPEX in Q4 FY23 compared to Debt including issuance costs 173.4 173.3 $10.8M in Q4 FY22 Cash 195.7 175.3 ▪ CAPEX expected to be between $35M to $40M in FY24 Net (Cash) De
Slide 10: Key Takeaways
KEY TAKEAWAYS ▪ Record financial performance in FY23 driven by operational execution and evolution of fast growth end markets ▪ Organic growth of 5.7% ▪ Fast Growth market sales grew by ~44% ▪ Record gross margin of 38.5% increased 170 bps YOY ▪ Record adjusted operating margin of 15.2% increased 15
Slide 11: Appendix
APPENDIX 11
Slide 12: Standex Financial Framework
STANDEX FINANCIAL FRAMEWORK 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% EXPECT SALES TO EXCEED $1 BILLION WITHIN 5 YEARS ▪ Prior longer-term targets (January 2021) were mid-single-dig
Slide 13: Q4 FY23 Segment Snapshot
Q4 FY23 SEGMENT SNAPSHOT Segment Breakdown ($ in millions) Q4 FY23 Q4 FY22 Y/Y △% Comments Net Sales by Segment Electronics 79.9 71.9 11.1% Organic growth: 12.3%; F/X: -1.2% Engraving 42.4 37.2 14.0% Organic growth: 15.5%; F/X: -1.4% Scientific 18.3 18.8 -2.6% Higher sales in research & academics of
Slide 14: Q4 FY23 Revenue Drivers
Q4 FY23 REVENUE DRIVERS Q4 FY23 Electronics Engraving Scientific Engineering Specialty Total YOY Change % Technologies Solutions Organic 12.3% 15.5% (2.6%) 1.3% (1.6%) 7.8% Divestiture 0.0% 0.0% 0.0% 0.0% (25.1%) (5.0%) Acquisitions 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Currency (1.2%) (1.4%) 0.0% 0.0% 0.0%
Slide 15: FY23 Segment Snapshot
FY23 SEGMENT SNAPSHOT Segment Breakdown ($ in millions) FY23 FY22 Y/Y △% Comments Net Sales by Segment Electronics 305.9 304.3 0.5% Organic growth: 4.5%; Acquisitions: 0.6%; F/X: -4.6% Engraving 152.1 146.3 4.0% Organic growth: 9.8%; F/X: -5.8% Scientific 74.9 83.9 -10.6% Higher sales in research &
Slide 16: Total Year FY23 Revenue Drivers
TOTAL YEAR FY23 REVENUE DRIVERS FY23 YTD Electronics Engraving Scientific Engineering Specialty Total YOY Change % Technologies Solutions Organic 4.5% 9.8% (10.6%) 5.3% 13.6% 5.7% Divestiture 0.0% 0.0% 0.0% 0.0% (10.1%) (1.8%) Acquisitions 0.6% 0.0% 0.0% 0.0% 0.0% 0.3% Currency (4.6%) (5.8%) 0.0% (1
Slide 17: Q4 FY23 GAAP to Non-GAAP Income Bridge
Q4 FY23 GAAP TO NON-GAAP INCOME BRIDGE Standex International Corporation Q4 FY23 Q4 FY22 % Change Pre-tax Net Pre-tax Net Pre-tax Net Income Tax Income EPS Income Tax Income EPS Income Income EPS Reported - GAAP $27.2 $(7.0) $20.2 $1.68 $17.4 $(4.1) $13.2 $1.10 56.8 52.7 52.7 Add: Restructuring char
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