STANDEX REPORTS FISCAL SECOND QUARTER 2024 FINANCIAL RESULTS
-- Fast Growth Market Sales Increased ~14% Year-On-Year to ~$21 Million
-- Organic Sales Decline of 7.4% Year-on-Year Due to Project Timing in the
Engineering Technologies Segment and Transitory Market Softness;
Partially offset by Contributions from Minntronix Acquisition and
Favorable FX
-- Record GAAP Gross Margin of 40.2% and Adjusted Gross Margin of 40.3%
-- GAAP Operating Margin of 14.5%; Record Adjusted Operating Margin of
16.1%, up 90 bps Year-On-Year; 11(th) Consecutive Quarter of Record
Level Adjusted Operating Margin
-- Record Year-to-Date Free Cash Flow of $31.6 Million
-- Expect to Complete Acquisition of Japanese-Based Sanyu Switch Co., Ltd
During Fiscal Third Quarter 2024
SALEM, N.H., Feb. 1, 2024 /PRNewswire/ -- Standex International Corporation (NYSE: SXI) today reported financial results for the second quarter of fiscal year 2024 ended December 31, 2023.
Summary Financial Results - Total
($M except EPS and Dividends) 2Q24 2Q23 1Q24 Y/Y Q/Q
Net Sales $178.4 $187.8 $184.8 -5.0 % -3.4 %
Operating Income - GAAP $25.8 $27.8 $26.9 -7.1 % -4.0 %
Operating Income - Adjusted $28.7 $28.6 $29.4 0.3 % -2.4 %
Operating Margin % - GAAP 14.5 % 14.8 % 14.6 % -30 bps -10 bps
Operating Margin % - Adjusted 16.1 % 15.2 % 15.9 % + 90 bps + 20 bps
Net Income from Continuing Ops - GAAP $19.1 $20.1 $18.9 -5.0 % 1.0 %
Net Income from Continuing Ops - Adjusted $21.1 $20.7 $20.8 1.9 % 1.3 %
EBITDA $32.4 $34.8 $33.2 -7.0 % -2.3 %
EBITDA margin 18.2 % 18.5 % 17.9 % -30 bps + 30 bps
Adjusted EBITDA $35.0 $35.6 $35.6 -1.9 % -1.9 %
Adjusted EBITDA margin 19.6 % 19.0 % 19.3 % + 60 bps + 30 bps
Diluted EPS - GAAP $1.61 $1.69 $1.58 -4.7 % 1.9 %
Diluted EPS - Adjusted $1.78 $1.74 $1.74 2.3 % 2.3 %
Dividends per Share $0.30 $0.28 $0.28 7.1 % 7.1 %
Free Cash Flow $19.5 $24.0 $12.1 -18.8 % 61.6 %
Net Debt to EBITDA 0.0x 0.6x 0.2x NM NM
Second Quarter Fiscal 2024 Results
Commenting on the quarter's results, President and Chief Executive Officer David Dunbar said, "I am pleased with our second quarter operating performance. Despite the softer top line, we achieved record adjusted gross margin of 40.3%, up 180 bps year on year, and record adjusted operating margin of 16.1%, up 90 bps year on year - our eleventh consecutive quarter of record level adjusted operating margin performance. This margin growth reflects the continued solid execution of our pricing and productivity initiatives, while continuing to prioritize investments in high-growth opportunities. In addition, we generated free operating cash flow of $19.5 million in fiscal second quarter 2024 and record free operating cash flow of $31.6 million year-to-date."
"I am also pleased with the progress of our fast growth market sales which grew 14% year on year to $21 million and R&D investments which grew to 2.9% of sales in fiscal second quarter 2024. These activities position us well to achieve our long-term growth objectives. Nevertheless, as we highlighted last quarter as part of our outlook, we did see the effect of transitory headwinds in several of our end markets which led to a 7.4% organic decline year on year, primarily from unfavorable project timing in our Engineering Technologies segment and softer demand in our Specialty segment. We expect these market conditions to improve in the fiscal fourth quarter 2024."
"Three years ago in February 2021, we communicated a set of long term (three to five years) financial targets. These targets included mid-single-digit organic growth, EBITDA margin above 20%, and return on invested capital above 12%. We are proud to have reached these targets within three years. As such, we remain confident in achieving our updated long-term financial targets by fiscal 2028, which include organic revenue growth at a high-single-digit compounded annual rate, adjusted operating margin above 19%, and a return on invested capital above 15%."
"We anticipate completing our acquisition of Japanese-based Sanyu Switch Company in the fiscal third quarter 2024. Sanyu will enable us to expand our position in the test and measurement market, where the proliferation of consumer electronics, semiconductor devices, and IoT technologies are driving growth. We expect the acquisition to be accretive to earnings and to achieve a double-digit return on invested capital in the first year of ownership. We look forward to welcoming the entire Sanyu team to our company."
Outlook
In the fiscal third quarter 2024, on a sequential basis, the Company expects slightly higher revenue due to a slight recovery in the Electronics and Specialty segments and contribution from the pending acquisition of Sanyu, partially offset by lower sales in the Engraving segment. The Company expects slightly lower adjusted operating margin, primarily resulting from one-time charge due to the CEO reaching retirement eligibility under the stock compensation plan. In the fiscal fourth quarter 2024, on a sequential basis, the company expects meaningfully higher revenue and continued improvement in adjusted operating margin.
Second Quarter Segment Operating Performance
Electronics (45% of sales; 44% of segment operating income)
2Q24 2Q23 % Change
Electronics ($M)
Revenue 79.4 72.6 9.5 %
GAAP Operating Income 15.9 17.0 -6.6 %
GAAP Operating Margin % 20.0 23.4
Adjusted Operating Income 16.2 17.0 -4.8 %
Adjusted Operating Margin % 20.3 23.4
*Excludes purchase accounting expenses of $0.3M associated with Minntronix in Q2 FY24
Revenue increased approximately $6.9 million or 9.5% year-on-year reflecting a 14.7% benefit from the recent Minntronix acquisition and a 0.5% benefit from foreign currency, partially offset by an organic decline of 5.7% due continued softness in the appliances and general industrial end markets in China and Europe. Adjusted operating income decreased approximately $0.8 million or 4.8% year-on-year due to lower organic sales and product mix, partially offset by contribution from the Minntronix acquisition and realization of pricing and productivity initiatives.
Electronics segment backlog realizable in under one year of approximately $112 million decreased 27% year-on-year. The segment's book to bill ratio of 0.78 represented a 15% improvement from the prior quarter.
In fiscal third quarter 2024, on a sequential basis, the Company expects slightly to moderately higher revenue and slightly higher operating margin due to higher volume and contribution from the pending acquisition of Sanyu.
Revenue attributable to fast growth end markets is expected to grow throughout the remainder of the fiscal year in markets like industrial automation, power management, renewable energy technologies, and EV-related applications.
Engraving (23% of sales; 24% of segment operating income)
2Q24 2Q23 % Change
Engraving ($M)
Revenue 40.8 37.7 8.4 %
Operating Income 8.9 6.4 39.8 %
Operating Margin % 21.8 16.9
Revenue increased approximately $3.2 million or 8.4% year-on-year reflecting 6.7% organic growth, primarily due to strong demand in Europe, and a 1.7% benefit from foreign currency. Operating income increased approximately $2.5 million or 39.8% year-on-year due to higher volume and realization of previously announced productivity initiatives.
In fiscal third quarter 2024, on a sequential basis, the Company expects meaningfully lower revenue and operating margin due to the seasonal impact of the Chinese New Year on project timing and fewer new platform rollouts in North America.
Scientific (9% of sales; 12% of segment operating income)
2Q24 2Q23 % Change
Scientific ($M)
Revenue 16.3 19.3 -15.6 %
Operating Income 4.2 4.2 2.0 %
Operating Margin % 26.1 21.6
Revenue decreased approximately $3.0 million or 15.6% year-on-year reflecting lower demand for COVID vaccine storage units from retail pharmacies, slightly offset by an increase in new product sales. Operating income remained relatively flat year-on-year as lower freight cost and productivity initiatives fully offset lower volume.
In fiscal third quarter 2024, on a sequential basis, the Company expects slightly higher revenue and similar to slightly higher operating margin.
Engineering Technologies (11% of sales; 9% of segment operating income)
2Q24 2Q23 % Change
Engineering Technologies ($M)
Revenue 19.9 24.2 -17.8 %
Operating Income 3.4 3.7 -9.0 %
Operating Margin % 17.1 15.5
Revenue decreased approximately $4.3 million or 17.8% year-on-year reflecting 18.1% organic decline due to timing of projects and a 0.3% benefit from foreign currency. Operating income decreased approximately $0.3 million or 9.0% year-on-year reflecting lower volume and higher research and development expenses, mostly offset by pricing and productivity initiatives.
In fiscal third quarter 2024, on a sequential basis, the Company expects similar revenue reflecting improvement across most end markets, offset by lower defense sales caused by delays in government funding, and similar to slightly lower operating margin. The Company anticipates significant sequential growth in the fiscal fourth quarter reflecting more favorable project timing.
Specialty Solutions (12% of sales; 11% of segment operating income)
2Q24 2Q23 % Change
Specialty Solutions ($M)
Revenue 22.0 34.1 -35.5 %
Operating Income 4.0 5.7 -30.6 %
Operating Margin % 18.1 16.8
Specialty Solutions revenue decreased approximately $12.1 million or 35.5% year-on-year, reflecting the impact of the Procon divestiture and an organic decline in the Hydraulics business from an industry-wide chassis shortage. Operating income decreased approximately $1.8 million or 30.6% year-on-year due to the Procon divestiture and lower volume in the Hydraulics business.
In fiscal third quarter 2024, on a sequential basis, the Company expects slightly to moderately higher revenue and operating margin due to improved demand in the Hydraulics business.
Capital Allocation
-- Share Repurchase: During the fiscal second quarter 2024, the Company
repurchased 33,500 shares for $4.5 million. There was $38.5 million
remaining on the Company's current share repurchase authorization at the
end of the fiscal second quarter 2024.
-- Capital Expenditures: In fiscal second quarter 2024, Standex's capital
expenditures were $4.3 million compared to $5.8 million in the fiscal
second quarter of 2023. The Company now expects fiscal year 2024 capital
expenditures between $25 million and $30 million. Capital expenditures
were $24.3 million in fiscal 2023.
-- Dividend: On January 26, 2024, the Company declared a quarterly cash
dividend of $0.30 per share, an approximately 7.1% year-on-year
increase. The dividend is payable February 26, 2024, to shareholders of
record on February 12, 2024.
Balance Sheet and Cash Flow Highlights
-- Net Debt: Standex had net debt of $6.2 million on December 31, 2023,
compared to $74.0 million at the end of fiscal second quarter 2023. Net
debt for the second quarter of 2024 consisted primarily of long-term
debt of $148.7 million and cash and equivalents of $142.4 million.
-- Cash Flow: Net cash provided by (used in) continuing operating
activities for the three months ended December 31, 2023, was $23.8
million compared to $29.8 million in the prior year's quarter. Free cash
flow after capital expenditures was $19.5 million compared to free cash
flow after capital expenditures of $24.0 million in the fiscal second
quarter of 2023.
Conference Call Details
Standex will host a conference call for investors tomorrow, February 2, 2024, at 8:30 a.m. ET. On the call, David Dunbar, President, and CEO, and Ademir Sarcevic, CFO, will review the Company's financial results and business and operating highlights. Investors interested in listening to the webcast and viewing the slide presentation should log on to the "Investors" section of Standex's website under the subheading, "Events and Presentations," located at www.standex.com.
A replay of the webcast will also be available on the Company's website shortly after the conclusion of the presentation online through February 2, 2025. To listen to the teleconference playback, please dial in the U.S. (888) 660-6345 or (646) 517-4150 internationally; the passcode is 83380#. The audio playback via phone will be available through February 9, 2024. The webcast replay can be accessed in the "Investor Relations" section of the Company's website, located at www.standex.com.
Use of Non-GAAP Financial Measures
In addition to the financial measures prepared in accordance with generally accepted accounting principles ("GAAP"), the Company uses certain non-GAAP financial measures, including non-GAAP adjusted income from operations, non-GAAP adjusted net income from continuing operations, free operating cash flow, EBITDA (earnings before interest, taxes, depreciation and amortization) adjusted EBITDA, adjusted EBITDA to net debt, and adjusted earnings per share. The attached financial tables reconcile non-GAAP measures used in this press release to the most directly comparable GAAP measures. The Company believes that the use of non-GAAP measures which include the impact of restructuring charges, purchase accounting, insurance recoveries, discrete tax events, gain or loss on sale of a business unit, acquisition costs, and litigation costs help investors to obtain a better understanding of our operating results and prospects, consistent with how management measures and forecasts the Company's performance, especially when comparing such results to previous periods. An understanding of the impact in a particular quarter of specific restructuring costs, acquisition expenses, or other gains and losses, on net income (absolute as well as on a per-share basis), operating income or EBITDA can give management and investors additional insight into core financial performance, especially when compared to quarters in which such items had a greater or lesser effect, or no effect. Non-GAAP measures should be considered in addition to, and not as a replacement for, the corresponding GAAP measures, and may not be comparable to similarly titled measures reported by other companies.
About Standex
Standex International Corporation is a multi-industry manufacturer in five broad business segments: Electronics, Engraving, Scientific, Engineering Technologies, and Specialty Solutions with operations in the United States, Europe, Canada, Japan, Singapore, Mexico, Turkey, South Africa, India, and China. For additional information, visit the Company's website at http://standex.com/.
Forward-Looking Statements
Statements contained in this Press Release 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 such as "should," "could," "may," "will," "expect," "believe," "estimate," "anticipate," "intend," "continue," or similar terms or variations of those terms or the negative of those terms. There are many factors that affect the Company's business and the results of its operations and that may cause the actual results of operations in future periods to differ materially from those currently expected or anticipated. These factors include, but are not limited to: the impact of pandemics and other global crises or catastrophic events on employees, our supply chain, and the demand for our products and services around the world; materially adverse or unanticipated legal judgments, fines, penalties or settlements; conditions in the financial and banking markets, including fluctuations in exchange rates and the inability to repatriate foreign cash; domestic and international economic conditions, including the impact, length and degree of economic downturns on the customers and markets we serve and more specifically conditions in the automotive, construction, aerospace, defense, transportation, food service equipment, consumer appliance, energy, oil and gas and general industrial markets; lower-cost competition; the relative mix of products which impact margins and operating efficiencies in certain of our businesses; the impact of higher raw material and component costs, particularly steel, certain materials used in electronics parts, petroleum based products, and refrigeration components; the impact of higher transportation and logistics costs, especially with respect to transportation of goods from Asia; the impact of inflation on the costs of providing our products and services; an inability to realize the expected cost savings from restructuring activities including effective completion of plant consolidations, cost reduction efforts including procurement savings and productivity enhancements, capital management improvements, strategic capital expenditures, and the implementation of lean enterprise manufacturing techniques; the potential for losses associated with the exit from or divestiture of businesses that are no longer strategic or no longer meet our growth and return expectations; the inability to achieve the savings expected from global sourcing of raw materials and diversification efforts in emerging markets; the impact on cost structure and on economic conditions as a result of actual and threatened increases in trade tariffs; the inability to attain expected benefits from acquisitions and the inability to effectively consummate and integrate such acquisitions and achieve synergies envisioned by the Company; market acceptance of our products; our ability to design, introduce and sell new products and related product components; the ability to redesign certain of our products to continue meeting evolving regulatory requirements; the impact of delays initiated by our customers; our ability to increase manufacturing production to meet demand including as a result of labor shortages; the impact on our operations of any successful cybersecurity attacks; and potential changes to future pension funding requirements. 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
(unaudited)
Three Months Ended Six Months Ended
December 31, December 31,
(In thousands, except per share data) 2023 2022 2023 2022
Net sales $
178,400 187,789 $
363,174 $
368,389
Cost of sales 106,737 115,469 218,876 227,816
Gross profit 71,663 72,320 144,298 140,573
Selling, general and administrative expenses 43,276 43,713 86,861 84,802
(Gain) loss on sale of business (274)
Restructuring costs 1,360 511 3,266 1,093
Acquisition related costs 1,195 174 1,696 466
Other operating (income) expense, net 116 116
Income from operations 25,832 27,806 52,749 54,096
Interest expense 1,019 1,566 2,295 2,753
Other non-operating (income) expense, net 332 (70) 1,178 948
Total 1,351 1,496 3,473 3,701
Income from continuing operations before income taxes 24,481 26,310 49,276 50,395
Provision for income taxes 5,409 6,226 11,312 11,995
Net income from continuing operations 19,072 20,084 37,964 38,400
Income (loss) from discontinued operations, net of tax (201) (41) (279) (87)
Net income $
18,871 $
20,043 $
37,685 $
38,313
Basic earnings per share:
Income (loss) from continuing operations $
1.62 $
1.69 $
3.22 $
3.25
Income (loss) from discontinued operations (0.02) (0.02) (0.01)
Total $
1.60 $
1.69 $
3.20 $
3.24
Diluted earnings per share:
Income (loss) from continuing operations $
1.61 $
1.69 $
3.19 $
3.22
Income (loss) from discontinued operations (0.02) (0.02) (0.01)
Total $
1.59 $
1.69 $
3.17 $
3.21
Average Shares Outstanding
Basic 11,791 11,852 11,762 11,833
Diluted 11,858 11,917 11,891 11,930
Standex International Corporation
Condensed Consolidated Balance Sheets
(unaudited)
December 31, June 30,
(In thousands) 2023 2023
ASSETS
Current assets:
Cash and cash equivalents $
142,424 $
195,706
Accounts receivable, net 125,575 123,440
Inventories 98,592 98,537
Prepaid expenses and other current assets 65,572 64,739
Income taxes receivable 3,836 831
Total current assets 435,999 483,253
Property, plant, equipment, net 132,599 130,937
Intangible assets, net 82,726 75,651
Goodwill 280,337 264,821
Deferred tax asset 14,027 14,602
Operating lease right-of-use asset 34,026 33,273
Other non-current assets 25,347 22,392
Total non-current assets 569,062 541,676
Total assets $
1,005,061 $
1,024,929
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $
63,883 $
68,601
Accrued liabilities 56,062 62,031
Income taxes payable 10,597 10,335
Total current liabilities 130,542 140,967
Long-term debt 148,659 173,441
Operating lease long-term liabilities 26,080 25,774
Accrued pension and other non-current liabilities 79,209 77,298
Total non-current liabilities 253,948 276,513
Stockholders' equity:
Common stock 41,976 41,976
Additional paid-in capital 101,198 100,555
Retained earnings 1,058,069 1,027,279
Accumulated other comprehensive loss (155,561) (158,477)
Treasury shares (425,111) (403,884)
Total stockholders' equity 620,571 607,449
Total liabilities and stockholders' equity $
1,005,061 $
1,024,929
Standex International Corporation and Subsidiaries
Statements of Consolidated Cash Flows
(unaudited)
Six Months Ended
December 31,
(In thousands) 2023 2022
Cash Flows from Operating Activities
Net income $
37,685 $
38,313
Income (loss) from discontinued operations (279) (87)
Income from continuing operations 37,964 38,400
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 13,969 13,966
Stock-based compensation 4,824 4,699
Non-cash portion of restructuring charge 346 (1,183)
(Gain) loss on sale of business (274)
Contributions to defined benefit plans (1,541) (101)
Net changes in operating assets and liabilities (15,121) (28,690)
Net cash provided by operating activities - continuing operations 40,167 27,091
Net cash provided by (used in) operating activities - discontinued operations (422) (51)
Net cash provided by (used in) operating activities 39,745 27,040
Cash Flows from Investing Activities
Expenditures for property, plant and equipment (8,587) (11,028)
Expenditures for acquisitions, net of cash acquired (29,229)
Proceeds from the sale of business 274
Other investing activities 98
Net cash (used in) investing activities from continuing operations (37,542) (10,930)
Net cash provided by investing activities from discontinued operations
Net cash provided by (used in) investing activities (37,543) (10,930)
Cash Flows from Financing Activities
Proceeds from borrowings 28,500
Payments of debt (25,000) (16,000)
Contingent consideration payment (1,167)
Activity under share-based payment plans 1,189 994
Purchase of treasury stock (26,650) (13,517)
Cash dividends paid (6,840) (6,399)
Net cash provided by (used in) financing activities (57,301) (7,589)
Effect of exchange rate changes on cash 1,816 129
Net changes in cash and cash equivalents (53,283) 8,650
Cash and cash equivalents at beginning of year 195,706 104,844
Cash and cash equivalents at end of period $
142,424 $
113,494
Standex International Corporation
Selected Segment Data
(unaudited)
Three Months Ended Six Months Ended
December 31, December 31,
(In thousands) 2023 2022 2023 2022
Net Sales
Electronics $
79,419 $
72,556 $
161,107 $
147,755
Engraving 40,845 37,689 81,639 72,713
Scientific 16,292 19,292 34,485 37,748
Engineering Technologies 19,887 24,193 38,107 41,192
Specialty Solutions 21,957 34,059 47,836 68,981
Total $
178,400 $
187,789 $
363,174 $
368,389
Income from operations
Electronics $
15,850 $
16,972 $
32,184 $
35,113
Engraving 8,910 6,373 16,505 12,227
Scientific 4,248 4,165 9,178 7,888
Engineering Technologies 3,405 3,741 6,422 5,606
Specialty Solutions 3,965 5,716 9,582 11,793
Restructuring (1,360) (511) (3,266) (1,093)
(Gain) loss on sale of business 274
Acquisition related costs (1,195) (174) (1,696) (466)
Corporate (7,991) (8,360) (16,434) (16,856)
Other operating income (expense), net (116) (116)
Total $
25,832 $
27,806 $
52,749 $
54,096
Standex International Corporation
Reconciliation of GAAP to Non-GAAP Financial Measures
(unaudited)
Three Months Ended Six Months Ended
December 31, December 31,
(In thousands, except percentages) 2023 2022 % Change 2023 2022 % Change
Adjusted income from operations and adjusted net
income from continuing operations:
Net Sales $
178,400 $
187,789 -5.0 % $
363,174 $
368,389 -1.4 %
Income from operations, as reported $
25,832 $
27,806 -7.1 % $
52,749 $
54,096 -2.5 %
Income from operations margin 14.5 % 14.8 % 14.5 % 14.7 %
Adjustments:
Restructuring charges 1,360 511 3,266 1,093
Acquisition-related costs 1,195 174 1,696 466
Litigation (settlement refund) charge 116 116
(Gain) loss on sale of business (274)
Purchase accounting expenses 305 645
Adjusted income from operations $
28,692 $
28,607 0.3 % $
58,082 $
55,771 4.1 %
Adjusted income from operations margin 16.1 % 15.2 % 16.0 % 15.1 %
Interest and other income (expense), net (1,351) (1,496) (3,473) (3,701)
Foreign currency related (gain) loss on
acquisition (282) (282)
and divestiture activities
Provision for income taxes (5,409) (6,226) (11,312) (11,995)
Discrete and other tax items 100 100
Tax impact of above adjustments (569) (190) (1,223) (398)
Net income from continuing operations, as adjusted $
21,081 $
20,695 1.9 % $
41,892 $
39,777 5.3 %
EBITDA and Adjusted EBITDA:
Net income (loss) from continuing operations, as $
19,072 $
20,084 -5.0 % $
37,964 $
38,400
reported
Net income from continuing operations
margin 10.7 % 10.7 % 10.5 % 10.4 %
Add back:
Provision for income taxes 5,409 6,226 11,312 11,995
Interest expense 1,019 1,566 2,295 2,753
Depreciation and amortization 6,887 6,958 13,969 13,966
EBITDA $
32,387 $
34,834 -7.0 % $
65,540 $
67,114 -2.3 %
EBITDA Margin 18.2 % 18.5 % 18.0 % 18.2 %
Adjustments:
Restructuring charges 1,360 511 3,266 1,093
Acquisition-related costs 1,195 174 1,696 466
Litigation (settlement refund) charge 116 116
(Gain) loss on sale of business (274)
Foreign currency related (gain) loss on
acquisition (282) (282)
and divestiture activities
Purchase accounting expenses 305 645
Adjusted EBITDA $
34,965 $
35,635 -1.9 % $
70,591 $
68,789 2.6 %
Adjusted EBITDA Margin 19.6 % 19.0 % 19.4 % 18.7 %
Free operating cash flow:
Net cash provided by operating activities - $
23,760 $
29,796 $
40,167 $
27,091
continuing operations, as reported
Less: Capital expenditures (4,249) (5,760) (8,587) (11,028)
Free cash flow from continuing operations $
19,511 $
24,036 $
31,580 $
16,063
Standex International Corporation
Reconciliation of GAAP to Non-GAAP Financial Measures
(unaudited)
Three Months Ended Six Months Ended
Adjusted earnings per share from continuing operations December 31, December 31,
2023 2022 % 2023 2022 % Change
Change
Diluted earnings per share from continuing operations, as reported $
1.61 $
1.69 -4.7 % $
3.19 $
3.22 -0.9 %
Adjustments:
Restructuring charges 0.09 0.03 0.21 0.07
Acquisition-related costs 0.08 0.01 0.11 0.03
Litigation (settlement refund) charge 0.01 0.01
(Gain) loss on sale of business (0.02)
Foreign currency related (gain) loss on acquisition and
divestiture activities (0.02) (0.02)
Environmental remediation
Discrete tax items 0.01 0.01
Purchase accounting expenses 0.02 0.04
Diluted earnings per share from continuing operations, as adjusted $
1.78 $
1.74 2.3 % $
3.52 $
3.34 5.4 %
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SOURCE Standex International Corporation
