Standex Reports Second-Quarter 2016 Financial Results
Operating Income Rises 1.3% and Adjusted Operating Income Increases 0.6%
on 3.9% Lower Sales
Food Service Equipment Group Expands Operating Margins 40 bps to 7.4%
Adjusted Earnings Per Diluted Shares Rises 5.2% to $1.02
Standex
International Corporation (NYSE:SXI) today reported financial
results for the second quarter of fiscal year 2016.
Second Quarter Fiscal 2016 Results from Continuing Operations
-
Net sales decreased 3.9% to $181.9 million from $189.3 million in the
second quarter of fiscal 2015. Organic sales decreased 2.4%, foreign
exchange had a negative effect of 2.5%, and acquisitions contributed
positive 1.0% year over year.
-
Income from operations was $16.1 million, compared with $15.9 million
in the second quarter of fiscal 2015. Net income from continuing
operations was $12.4 million, or $0.97 per diluted share, including
tax-effected $1.1 million of restructuring charges, $0.3 million of
acquisition-related charges, and discrete and other tax benefits of
$0.7 million. This compares with second quarter fiscal 2015 net income
from continuing operations of $11.3 million, or $0.88 per diluted
share, including tax-effected $0.8 million of restructuring charges,
$0.7 million of purchase accounting, and $0.2 million in discrete and
other tax benefits. Excluding the aforementioned items from both
periods, non-GAAP net income from continuing operations was $13.1
million, or $1.02 per diluted share, compared with $12.5 million, or
$0.97 per diluted share, in the second quarter of fiscal 2015.
-
EBITDA (earnings before interest, income taxes, depreciation and
amortization) was $20.7 million, compared with $20.3 million in the
second quarter of fiscal 2015. Excluding the previously mentioned
items from both periods, adjusted EBITDA for the second quarter of
fiscal 2016 was $22.6 million, compared with $22.3 million in the
year-earlier quarter.
-
Net working capital (defined as accounts receivable plus inventories
less accounts payable) was $144.2 million at the end of the second
quarter of fiscal 2016, compared with $147.2 million a year earlier.
Working capital turns were 5.0 in the second quarter fiscal 2016 and
5.1 in the year-earlier quarter.
-
The Company closed the quarter with net debt of $4.7 million, compared
with $41.8 million at December 31, 2014 and $5.6 million at June 30,
2015.
-
A reconciliation of net income, earnings per share and net income from
continuing operations from reported GAAP amounts to non-GAAP amounts
is included later in this release.
Management Comments
“We performed well operationally in the second fiscal quarter, reporting
margin expansion in four of our five businesses, excluding purchase
accounting,” said President and CEO David Dunbar. “Second-quarter
revenues were down 3.9% from the prior year to $181.9 million, with
foreign exchange having a negative effect of 2.5% and acquisitions
contributing positive 1%. Second-quarter adjusted EPS was up 5.2%
year-over-year. In the Food Service Equipment Group, our focus continues
to be on operational improvement initiatives and lowering material
costs. We generated a 7.4% EBIT margin in Q2 in Food Service, up from
7.0% last year, despite a 7.7% decline in sales. Engraving had another
record quarter, and we maintained the positive momentum at Electronics
and Hydraulics. While Engineering Technologies continued to be affected
by the decline in the oil and gas markets, we are making progress in
capitalizing on aviation opportunities.”
Segment Review
Food
Service Equipment Group sales decreased 7.7%
year-over-year, and operating income was down 3.0%.
“Margin improvement continues to be a key area of focus for us within
Food Service, and we achieved a 40 basis point increase year over year
in Q2,” said Dunbar. “This is even more impressive given the decline in
sales, driven primarily by lower volume at Refrigeration. We are
encouraged that our operational excellence initiatives are achieving the
intended results, both in the short and long-term. With these
operational excellence initiatives in place and performance heading in
the right direction, the team is currently reviewing its commercial
strategic initiatives, ensuring that the business remains aligned with
the Standex 2020 Vision.”
Engraving
Group sales increased 19.9% year-over-year, partially
offset by a 9.9% negative effect from foreign exchange, while operating
income was up 25.2%, compared with last year.
“The Engraving Group had another strong quarter, achieving record sales
and operating income,” said Dunbar. “Sales growth of 19.9% was primarily
driven by a double-digit increase in our Mold Tech business across all
of our regions, as demand for automotive molds remain strong. In
addition to the strong performance at Mold Tech, sales also increased at
our Roll, Plate and Machinery business due to large plate orders. The
demand trends and momentum at Engraving are strong and we expect this to
continue throughout fiscal 2016.1”
Engineering
Technologies Group sales declined 22.2% year-over-year, and
operating income decreased 35.0%.
“Organic sales were down 21.7% in constant currency year-over-year,
primarily due to lower energy market sales. Sales declines were
partially offset by increased sales in aviation,” said Dunbar. “We have
put cost reductions in place to offset the lower demand in the oil and
gas markets and we have shifted our focus to the aviation market, where
we are seeing good demand. We exited Q1 with an operating margin of
3.6%. Sequentially, operating margins have improved to 10.1% in Q2.
Looking forward, we anticipate exiting the fourth quarter of 2016 with
margin improvements generated from sales and margin growth in aviation
and an easier year-over-year comparison in the oil and gas market. 1
Operating margins should be in the mid-teens for Q4.1 We
continue to be excited about our Enginetics acquisition and aviation
opportunities as we invest capital and install capacity for the ramp up
of our long-term awards.1”
Electronics
Products Group sales were up 1.9% year-over-year. Acquisitions
contributed 7.2%, partially offset by a negative currency effect of
5.2%. Operating income was down 4.5%.
“Electronics sales increased 1.9%, primarily due to the acquisition of
Northlake at the beginning of Q2,” said Dunbar. “China and Europe grew,
but were offset by softness and continued customer inventory adjustments
in North America. Northlake directly supports our Electronics Group
strategy to expand our high-reliability magnetics business into adjacent
markets, such as medical equipment and power generation, to drive growth
and profitability. We remain optimistic about the Electronics business
long term.1 Going forward, we are focused on new business
opportunities, strategic laneways and market tests aimed at increased
volumes.1”
The Hydraulics
Products Group reported a 2.7% year-over-year sales increase, while
operating income rose 4.6%.
“Sales were up 2.7% year-over-year, primarily related to the dump truck
and trailer market, which is tied to the strong North American
construction environment,” said Dunbar. “We are gaining share in the
U.S. in mobile hydraulic cylinders by having quick turnaround in custom
quotations and short delivery times. Looking ahead, we are focused on
developing unique custom engineering capabilities to solve customer
issues and utilizing our dual production capabilities in North America
and China. 1”
Business Outlook
“While foreign exchange and the oil and gas market have taken their toll
on our results in recent quarters, we are fortunate that our exposure to
these areas and to China is relatively low,” said Dunbar. “Moving
forward, we’ll continue to exercise caution around currency
expectations, the oil and gas markets and regional economic conditions.1
Across the organization we are focused on executing on the four
pillars of the Standex Value Creation System to drive performance in the
business. These include the balanced performance plan process, the
growth disciplines, operational excellence, and talent management. This
is a long-term journey, but we are reaping the rewards from these
initiatives and look forward to continued success in these areas.1”
Conference Call Details
Standex will host a conference call for investors today, February 2,
2016 at 10:00 a.m. ET. On the call, David Dunbar, President and CEO, and
Thomas DeByle, CFO, will review the Company’s financial results and
business and operating highlights. Interested parties may access the
call by dialing (877) 847-6070 in the U.S. and (631) 813-4923
internationally; the passcode is 19890649. The live audio feed of the
call, which will be supplemented by a slide presentation, can be
accessed in the “Webcasts
and Presentations” tab in the “Investors” section of the company’s
website, located at: www.standex.com. For those unable to participate in
the live conference call, a playback will be available through February
9, 2016. To listen to the playback, please dial (800) 585-8367 in the
U.S. or (404) 537-3406 internationally; the passcode is 19890649. The
webcast replay also can be accessed in the “Investor Relations” section
of the Company’s website, located at www.standex.com.
Use of Non-GAAP Financial Measures
EBITDA, which is "Earnings Before Interest, Taxes, Depreciation and
Amortization," non-GAAP income from operations, non-GAAP net income from
continuing operations and free cash flow are non-GAAP financial measures
and are intended to serve as a complement to results provided in
accordance with accounting principles generally accepted in the United
States. Standex believes that such information provides an additional
measurement and consistent historical comparison of the Company's
performance. A reconciliation of the non-GAAP financial measures to the
most directly comparable GAAP measures is available in this news release.
About Standex
Standex
International Corporation is a multi-industry manufacturer in five
broad business segments: Food Service Equipment Group, Engineering
Technologies Group, Engraving Group, Electronics Products Group, and
Hydraulics Products Group with operations in the United States, Europe,
Canada, Australia, Singapore, Mexico, Brazil, Argentina, Turkey, South
Africa, India and China. For additional information, visit the Company's
website at http://standex.com/.
1 Safe Harbor Language
Statements in this news release 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 Act of 1995. Actual results may materially differ from those
indicated by such forward-looking statements as a result of certain
risks, uncertainties and assumptions that are difficult to predict.
Among the factors that could cause actual results to differ are the
impact of implementation of government regulations and programs
affecting our businesses, unforeseen legal judgments, fines or
settlements, uncertainty in conditions in the financial and banking
markets, general domestic and international economy including more
specifically economic conditions in the oil and gas market, the impact
of foreign exchange, increases in raw material costs, the ability to
substitute less expensive alternative raw materials, the heavy
construction vehicle market, the ability to continue to successfully
implement productivity improvements, increase market share, access new
markets, introduce new products, enhance our presence in strategic
channels, the successful expansion and automation of manufacturing
capabilities and diversification efforts in emerging markets, the
ability to continue to achieve cost savings through lean manufacturing,
cost reduction activities, and low cost sourcing, effective completion
of plant consolidations, successful completion and integration of
acquisitions and the other factors discussed in the Annual Report of
Standex on Form 10-K for the fiscal year ending June 30, 2015, which is
on file with the Securities and Exchange Commission, and any subsequent
periodic reports filed by the Company with the Securities and Exchange
Commission. In addition, any forward-looking statements represent
management's estimates only as of the day made and should not be relied
upon as representing management's estimates as of any subsequent date.
While the Company may elect to update forward-looking statements at some
point in the future, the Company and management specifically disclaim
any obligation to do so, even if management's estimates change.
|
Standex International Corporation
|
Consolidated Statement of Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Six Months Ended
|
|
|
|
|
December 31,
|
|
|
|
December 31,
|
(In thousands, except share data)
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$
|
181,948
|
|
|
$
|
189,337
|
|
|
$
|
380,346
|
|
|
$
|
391,364
|
Cost of sales
|
|
|
|
123,713
|
|
|
|
130,537
|
|
|
|
253,559
|
|
|
|
266,452
|
Gross profit
|
|
|
|
58,235
|
|
|
|
58,800
|
|
|
|
126,787
|
|
|
|
124,912
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
|
|
40,696
|
|
|
|
41,854
|
|
|
|
84,626
|
|
|
|
85,808
|
Restructuring costs
|
|
|
|
1,477
|
|
|
|
1,094
|
|
|
|
2,996
|
|
|
|
1,956
|
Other operating (income) expense, net
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
59
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations
|
|
|
|
16,062
|
|
|
|
15,852
|
|
|
|
39,165
|
|
|
|
37,089
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
731
|
|
|
|
788
|
|
|
|
1,375
|
|
|
|
1,431
|
Other (income) expense, net
|
|
|
|
(294)
|
|
|
|
(188)
|
|
|
|
(484)
|
|
|
|
(453)
|
Total
|
|
|
|
437
|
|
|
|
600
|
|
|
|
891
|
|
|
|
978
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations before income taxes
|
|
|
|
15,625
|
|
|
|
15,252
|
|
|
|
38,274
|
|
|
|
36,111
|
Provision for income taxes
|
|
|
|
3,179
|
|
|
|
3,989
|
|
|
|
9,687
|
|
|
|
9,921
|
Net income from continuing operations
|
|
|
|
12,446
|
|
|
|
11,263
|
|
|
|
28,587
|
|
|
|
26,190
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from discontinued operations, net of tax
|
|
|
|
(75)
|
|
|
|
(79)
|
|
|
|
(235)
|
|
|
|
(454)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
12,371
|
|
|
$
|
11,184
|
|
|
$
|
28,352
|
|
|
$
|
25,736
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
|
$
|
0.98
|
|
|
$
|
0.89
|
|
|
$
|
2.26
|
|
|
$
|
2.07
|
Income (loss) from discontinued operations
|
|
|
|
(0.01)
|
|
|
|
(0.01)
|
|
|
|
(0.02)
|
|
|
|
(0.04)
|
Total
|
|
|
$
|
0.97
|
|
|
$
|
0.88
|
|
|
$
|
2.24
|
|
|
$
|
2.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
|
$
|
0.97
|
|
|
$
|
0.88
|
|
|
$
|
2.24
|
|
|
$
|
2.04
|
Income (loss) from discontinued operations
|
|
|
|
(0.01)
|
|
|
|
(0.01)
|
|
|
|
(0.02)
|
|
|
|
(0.04)
|
Total
|
|
|
$
|
0.96
|
|
|
$
|
0.87
|
|
|
$
|
2.22
|
|
|
|
2.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Shares Outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
12,692
|
|
|
|
12,656
|
|
|
|
12,675
|
|
|
|
12,655
|
Diluted
|
|
|
|
12,791
|
|
|
|
12,802
|
|
|
|
12,777
|
|
|
|
12,818
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Standex International Corporation
|
Condensed Consolidated Balance Sheets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
June 30,
|
(In thousands)
|
|
|
|
2015
|
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
104,214
|
|
|
$
|
96,128
|
Accounts receivable, net
|
|
|
|
91,977
|
|
|
|
110,478
|
Inventories
|
|
|
|
108,987
|
|
|
|
108,305
|
Prepaid expenses and other current assets
|
|
|
|
5,692
|
|
|
|
7,070
|
Income taxes receivable
|
|
|
|
7,100
|
|
|
|
747
|
Deferred tax asset
|
|
|
|
12,700
|
|
|
|
12,674
|
Total current assets
|
|
|
|
330,670
|
|
|
|
335,402
|
|
|
|
|
|
|
|
|
|
Property, plant, equipment, net
|
|
|
|
109,240
|
|
|
|
108,536
|
Intangible assets, net
|
|
|
|
40,456
|
|
|
|
38,048
|
Goodwill
|
|
|
|
160,241
|
|
|
|
154,732
|
Deferred tax asset
|
|
|
|
850
|
|
|
|
917
|
Other non-current assets
|
|
|
|
19,000
|
|
|
|
21,428
|
Total non-current assets
|
|
|
|
329,787
|
|
|
|
323,661
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
$
|
660,457
|
|
|
$
|
659,063
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
56,802
|
|
|
$
|
80,764
|
Accrued liabilities
|
|
|
|
49,957
|
|
|
|
47,742
|
Income taxes payable
|
|
|
|
9,049
|
|
|
|
10,285
|
Total current liabilities
|
|
|
|
115,808
|
|
|
|
138,791
|
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
|
108,933
|
|
|
|
101,753
|
Accrued pension and other non-current liabilities
|
|
|
|
69,622
|
|
|
|
69,949
|
Total non-current liabilities
|
|
|
|
178,555
|
|
|
|
171,702
|
|
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
|
|
|
Common stock
|
|
|
|
41,976
|
|
|
|
41,976
|
Additional paid-in capital
|
|
|
|
50,085
|
|
|
|
47,254
|
Retained earnings
|
|
|
|
657,887
|
|
|
|
632,864
|
Accumulated other comprehensive loss
|
|
|
|
(101,824)
|
|
|
|
(93,017)
|
Treasury shares
|
|
|
|
(282,030)
|
|
|
|
(280,507)
|
Total stockholders' equity
|
|
|
|
366,094
|
|
|
|
348,570
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
|
|
$
|
660,457
|
|
|
$
|
659,063
|
|
|
|
|
|
|
|
|
|
|
Standex International Corporation and Subsidiaries
|
Statements of Consolidated Cash Flows
|
|
|
|
|
Six Months Ended
|
|
|
|
|
December 31,
|
(In thousands)
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
Cash Flows from Operating Activities
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
28,352
|
|
|
$
|
25,736
|
Income (loss) from discontinued operations
|
|
|
|
(235)
|
|
|
|
(454)
|
Income from continuing operations
|
|
|
|
28,587
|
|
|
|
26,190
|
|
|
|
|
|
|
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
8,804
|
|
|
|
8,305
|
Stock-based compensation
|
|
|
|
2,806
|
|
|
|
1,669
|
Non-cash portion of restructuring charge
|
|
|
|
1,941
|
|
|
|
(74)
|
Excess tax benefit from share-based payment activity
|
|
|
|
(809)
|
|
|
|
(1,644)
|
Contributions to defined benefit plans
|
|
|
|
(645)
|
|
|
|
(491)
|
Net changes in operating assets and liabilities
|
|
|
|
(9,817)
|
|
|
|
(22,157)
|
Net cash provided by operating activities - continuing operations
|
|
|
|
30,867
|
|
|
|
11,798
|
Net cash provided by (used in) operating activities - discontinued
operations
|
|
|
|
(652)
|
|
|
|
(657)
|
Net cash provided by (used in) operating activities
|
|
|
|
30,215
|
|
|
|
11,141
|
Cash Flows from Investing Activities
|
|
|
|
|
|
|
|
|
Expenditures for property, plant and equipment
|
|
|
|
(8,724)
|
|
|
|
(13,961)
|
Expenditures for acquisitions, net of cash acquired
|
|
|
|
(13,544)
|
|
|
|
(57,149)
|
Proceeds from sale of real estate and equipment
|
|
|
|
235
|
|
|
|
115
|
Other investing activities
|
|
|
|
-
|
|
|
|
1,128
|
Net cash (used in) investing activities from continuing operations
|
|
|
|
(22,033)
|
|
|
|
(69,867)
|
Net cash (used in )investing activities from discontinued operations
|
|
|
|
2,803
|
|
|
|
-
|
Net cash (used in) investing activities
|
|
|
|
(19,230)
|
|
|
|
(69,867)
|
Cash Flows from Financing Activities
|
|
|
|
|
|
|
|
|
Proceeds from borrowings
|
|
|
|
48,500
|
|
|
|
245,500
|
Payments of debt
|
|
|
|
(41,500)
|
|
|
|
(164,700)
|
Activity under share-based payment plans
|
|
|
|
745
|
|
|
|
613
|
Excess tax benefit from share-based payment activity
|
|
|
|
809
|
|
|
|
1,644
|
Purchase of treasury stock
|
|
|
|
(3,053)
|
|
|
|
(8,067)
|
Cash dividends paid
|
|
|
|
(3,294)
|
|
|
|
(2,783)
|
Net cash provided by (used in) financing activities
|
|
|
|
2,207
|
|
|
|
72,207
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash
|
|
|
|
(5,106)
|
|
|
|
(5,170)
|
|
|
|
|
|
|
|
|
|
Net changes in cash and cash equivalents
|
|
|
|
8,086
|
|
|
|
8,311
|
Cash and cash equivalents at beginning of year
|
|
|
|
96,128
|
|
|
|
74,260
|
Cash and cash equivalents at end of period
|
|
|
$
|
104,214
|
|
|
$
|
82,571
|
|
|
|
|
|
|
|
|
|
|
Standex International Corporation
|
Selected Segment Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Six Months Ended
|
|
|
|
|
December 31,
|
|
|
|
December 31,
|
(In thousands)
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
2015
|
|
|
|
2014
|
Net Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Food Service Equipment
|
|
|
$
|
90,936
|
|
|
$
|
98,533
|
|
|
$
|
198,149
|
|
|
$
|
212,366
|
Engraving
|
|
|
|
31,935
|
|
|
|
26,625
|
|
|
|
65,456
|
|
|
|
54,713
|
Engineering Technologies
|
|
|
|
20,711
|
|
|
|
26,605
|
|
|
|
39,422
|
|
|
|
46,724
|
Electronics Products
|
|
|
|
28,350
|
|
|
|
27,823
|
|
|
|
56,336
|
|
|
|
57,293
|
Hydraulics Products
|
|
|
|
10,016
|
|
|
|
9,751
|
|
|
|
20,983
|
|
|
|
20,268
|
Total
|
|
|
$
|
181,948
|
|
|
$
|
189,337
|
|
|
$
|
380,346
|
|
|
$
|
391,364
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Food Service Equipment
|
|
|
$
|
6,704
|
|
|
$
|
6,912
|
|
|
$
|
20,728
|
|
|
$
|
18,585
|
Engraving
|
|
|
|
7,443
|
|
|
|
5,947
|
|
|
|
17,350
|
|
|
|
12,890
|
Engineering Technologies
|
|
|
|
2,093
|
|
|
|
3,218
|
|
|
|
2,768
|
|
|
|
5,438
|
Electronics Products
|
|
|
|
4,525
|
|
|
|
4,738
|
|
|
|
10,075
|
|
|
|
10,284
|
Hydraulics Products
|
|
|
|
1,519
|
|
|
|
1,452
|
|
|
|
3,495
|
|
|
|
3,174
|
Restructuring
|
|
|
|
(1,477)
|
|
|
|
(1,094)
|
|
|
|
(2,996)
|
|
|
|
(1,956)
|
Other operating income (expense), net
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(59)
|
Corporate
|
|
|
|
(4,745)
|
|
|
|
(5,321)
|
|
|
|
(12,255)
|
|
|
|
(11,267)
|
Total
|
|
|
$
|
16,062
|
|
|
$
|
15,852
|
|
|
$
|
39,165
|
|
|
$
|
37,089
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Standex International Corporation
|
Reconciliation of GAAP to Non-GAAP Financial Measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
|
|
|
December 31,
|
|
|
|
(In thousands, except percentages)
|
|
|
|
2015
|
|
|
2014
|
|
|
% Change
|
|
|
|
2015
|
|
|
2014
|
|
|
% Change
|
Adjusted income from operations and adjusted net income from
continuing operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations, as reported
|
|
|
$
|
16,062
|
|
$
|
15,852
|
|
|
1.3%
|
|
|
$
|
39,165
|
|
$
|
37,089
|
|
|
5.6%
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring charges
|
|
|
|
1,477
|
|
|
1,094
|
|
|
|
|
|
|
2,996
|
|
|
1,956
|
|
|
|
Acquisition-related costs
|
|
|
|
423
|
|
|
911
|
|
|
|
|
|
|
423
|
|
|
1,696
|
|
|
|
Adjusted income from operations
|
|
|
$
|
17,962
|
|
$
|
17,857
|
|
|
0.6%
|
|
|
$
|
42,584
|
|
$
|
40,741
|
|
|
4.5%
|
Interest and other income (expense), net
|
|
|
|
(437)
|
|
|
(600)
|
|
|
|
|
|
|
(891)
|
|
|
(978)
|
|
|
|
Provision for income taxes
|
|
|
|
(3,179)
|
|
|
(3,989)
|
|
|
|
|
|
|
(9,687)
|
|
|
(9,921)
|
|
|
|
Discrete and other tax items
|
|
|
|
(721)
|
|
|
(239)
|
|
|
|
|
|
|
(721)
|
|
|
(239)
|
|
|
|
Tax impact of above adjustments
|
|
|
|
(490)
|
|
|
(525)
|
|
|
|
|
|
|
(882)
|
|
|
(957)
|
|
|
|
Net income from continuing operations, as adjusted
|
|
|
$
|
13,135
|
|
$
|
12,504
|
|
|
5.0%
|
|
|
$
|
30,403
|
|
$
|
28,646
|
|
|
6.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA and Adjusted EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations before income taxes, as reported
|
|
|
$
|
15,625
|
|
$
|
15,252
|
|
|
|
|
|
$
|
38,274
|
|
$
|
36,111
|
|
|
|
Add back:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
731
|
|
|
788
|
|
|
|
|
|
|
1,375
|
|
|
1,431
|
|
|
|
Depreciation and amortization
|
|
|
|
4,390
|
|
|
4,294
|
|
|
|
|
|
|
8,804
|
|
|
8,305
|
|
|
|
EBITDA
|
|
|
$
|
20,746
|
|
$
|
20,334
|
|
|
2.0%
|
|
|
$
|
48,453
|
|
$
|
45,847
|
|
|
5.7%
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring charges
|
|
|
|
1,477
|
|
|
1,094
|
|
|
|
|
|
|
2,996
|
|
|
1,956
|
|
|
|
Acquisition-related costs
|
|
|
|
423
|
|
|
911
|
|
|
|
|
|
|
423
|
|
|
1,696
|
|
|
|
Adjusted EBITDA
|
|
|
$
|
22,646
|
|
$
|
22,339
|
|
|
1.4%
|
|
|
$
|
51,872
|
|
$
|
49,499
|
|
|
4.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free operating cash flow:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities - continuing
operations, as reported
|
|
|
$
|
22,994
|
|
$
|
22,757
|
|
|
|
|
|
$
|
30,867
|
|
$
|
11,798
|
|
|
|
Less: Capital expenditures
|
|
|
|
(3,387)
|
|
|
(6,762)
|
|
|
|
|
|
|
(8,724)
|
|
|
(13,961)
|
|
|
|
Free operating cash flow
|
|
|
$
|
19,607
|
|
$
|
15,995
|
|
|
|
|
|
$
|
22,143
|
|
$
|
(2,163)
|
|
|
|
Net income from continuing operations
|
|
|
|
12,446
|
|
|
11,263
|
|
|
|
|
|
|
28,587
|
|
|
26,190
|
|
|
|
Conversion of free operating cash flow
|
|
|
|
157.5%
|
|
|
142.0%
|
|
|
|
|
|
|
77.5%
|
|
|
-8.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Standex International Corporation
|
Reconciliation of GAAP to Non-GAAP Financial Measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
Adjusted earnings per share from continuing
|
|
|
|
December 31,
|
|
|
|
|
|
|
December 31,
|
|
|
|
operations
|
|
|
|
2015
|
|
|
2014
|
|
|
%
Change
|
|
|
|
2015
|
|
|
2014
|
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share from continuing operations, as reported
|
|
|
$
|
0.97
|
|
|
$
|
0.88
|
|
|
10.2%
|
|
|
$
|
2.24
|
|
$
|
2.04
|
|
|
9.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring charges
|
|
|
|
0.09
|
|
|
|
0.06
|
|
|
|
|
|
|
0.17
|
|
|
0.11
|
|
|
|
Acquisition-related costs
|
|
|
|
0.02
|
|
|
|
0.05
|
|
|
|
|
|
|
0.02
|
|
|
0.10
|
|
|
|
Discrete and other tax items
|
|
|
|
(0.06)
|
|
|
|
(0.02)
|
|
|
|
|
|
|
(0.06)
|
|
|
(0.02)
|
|
|
|
Diluted earnings per share from continuing operations, as adjusted
|
|
|
$
|
1.02
|
|
|
$
|
0.97
|
|
|
5.2%
|
|
|
$
|
2.37
|
|
$
|
2.23
|
|
|
6.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160202005978/en/ Copyright Business Wire 2016
Source: Business Wire
(February 2, 2016 - 8:45 AM EST)
News by QuoteMedia
www.quotemedia.com
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