Standex Reports Fiscal Fourth Quarter 2021 Financial Results

SALEM, N.H., Aug. 12, 2021 /PRNewswire/ — Standex International Corporation (NYSE: SXI) today reported financial results for the fourth quarter of…

SALEM, N.H., Aug. 12, 2021 /PRNewswire/ — Standex International Corporation (NYSE: SXI) today reported financial results for the fourth quarter of fiscal year 2021 ending June 30, 2021.

Summary Financial Results – Total Standex

 






($M except EPS and Dividends)

4Q21

4Q20

3Q21

Y/Y

Q/Q

Net Sales

$176.4

$139.4

$172.2

26.6%

2.4%

Operating Income – GAAP

$22.4

$10.1

$5.7

121.4%

296.8%

Operating Income – Adjusted

$23.5

$12.1

$21.0

94.0%

11.9%

Operating Margin – Adjusted

13.3%

8.7%

12.2%

+460 bps

+110 bps

Net Income from Continuing Ops – GAAP

$14.4

$6.1

$1.8

136.7%

720.9%

Net Income from Continuing Ops – Adjusted

$17.1

$8.0

$14.6

113.3%

17.2%







EBITDA

$30.4

$18.6

$13.7

63.8%

122.6%

EBITDA margin

17.2%

13.3%

7.9%

+390 bps

+930 bps

Adjusted EBITDA

$31.5

$20.6

$29.0

53.2%

8.5%

Adjusted EBITDA margin

17.9%

14.8%

16.9%

+310 bps

+100 bps







Diluted EPS – GAAP

$1.18

$0.50

$0.14

136.0%

742.9%

Diluted EPS – Adjusted

$1.40

$0.65

$1.19

115.4%

17.6%

Dividends per share

$0.24

$0.22

$0.24

9.1%

0.0%







Free Cash Flow

$26.4

$19.5

$12.4

35.5%

113.4%

Net Debt to EBITDA

0.6x

0.8x

0.8x

-29.6%

-30.5%

Fourth Quarter Fiscal 2021 Results 

Commenting on the quarter’s results, President and Chief Executive Officer David Dunbar said, «We completed a very successful fiscal 2021 with strong fourth quarter results and solid execution on our growth strategy. Our Electronics, Engineering Technologies, and Engraving segments all reported meaningful sequential margin improvement.  These trends were complemented by robust free cash flow generation further adding to our substantial financial flexibility.  We expect stronger financial results in fiscal 2022 reflecting positive demand trends, further leveraging of our productivity initiatives, and our significantly strengthened operating profile.  

«The transformation of our portfolio around businesses with attractive growth and margin profiles, as well as strong customer value propositions, was evident in the quarter on several fronts.  From a revenue perspective, four of our five segments reported year-over-year growth led by the Electronics and Scientific segments.  Total company backlog realizable in under one year increased approximately 19% compared to fiscal third quarter 2021.»

«Our deep technical and applications expertise and innovative solutions continue to resonate with customers. For example, at our Engraving segment, we recently delivered prototype modules to support projects in the renewable energy sector for a global energy company.  We are very excited about the potential opportunity to further scale up our production to support this client’s plans and expand our range of organic growth opportunities,» continued Mr. Dunbar.

«In addition, our consolidated adjusted operating margin of 12% in fiscal 2021 represented a ninety-basis point increase year-over-year, and our fourth quarter margin of 13.3% is the highest quarterly margin that Standex has ever reported, despite experiencing a work stoppage in Specialty Solutions plants during the fourth quarter. This work stoppage has since been resolved but did have a moderate impact on our fourth quarter financial results in this segment.  In fiscal 2022, we have a healthy pipeline of productivity and efficiency initiatives which will provide further margin opportunity. In particular, our focus on mitigating material inflation and improving our cost position in the Electronics segment through changes in reed switch production and material substitution are expected to be substantially complete by the end of fiscal 2022.

«We also had a very strong quarter for cash generation reflecting solid working capital management.  We reported free cash flow of approximately $26 million, a nearly 36% year-over-year increase, and generated a free cash flow to GAAP net income conversion rate of 118% in fiscal 2021.  At year-end, the Company had approximately $245 million in available liquidity and a net debt to adjusted EBITDA ratio of approximately 0.57x. We continued to repatriate cash in the quarter bringing the total to  $38 million in fiscal 2021, slightly ahead of our initial guidance.  For fiscal 2022, we expect to repatriate between $30 million and $35 million.

«We are entering fiscal 2022 well-positioned for improved financial performance as we continue to build on our portfolio of high-quality businesses. We expect positive trends in end markets such as electric vehicles, renewable energy, and smart grid.  In addition, there are new business opportunities in the space and aviation sectors complemented by ongoing company-wide new product development efforts.   Our consistent free cash flow generation and significant financial strength provide a strong foundation for future growth,» concluded Dunbar.

Outlook

In fiscal first quarter 2022, the Company expects a slight decrease in revenue, but similar operating margin compared to fiscal fourth quarter 2021.  Revenue and operating margin will increase year-over-year compared to fiscal first quarter 2021.

Compared to fiscal fourth quarter 2021, the Company expects a slight increase in Electronics and Specialty segment revenue with continued broad-based end market strength and growth in these segments.  Revenue in the Engraving and Engineering Technologies segments is expected to have a slight to moderate decrease due to the timing of projects.  The Scientific segment is expected to have a moderate revenue decrease due to lower demand for COVID-19 vaccine storage refrigeration units.  

Fourth Quarter Segment Operating Performance

Electronics (41% of sales; 50% of segment operating income)


4Q21

4Q20

% Change

Electronics ($M)




Revenue

$72.8

$44.8

62.7%

Operating Income

15.7

5.9

168.8%

Operating Margin

21.6%

13.1%


Revenue increased $28.0 million or 62.7% year-over-year reflecting a 42.2% organic growth rate with approximately $1.9 million of the total revenue increase or 4.2% related to foreign exchange.  Organic revenue growth was due to a continued broad-based geographical recovery as well as increased demand for relays in solar and electric vehicle applications.  The recent Renco acquisition contributed revenue of $7.3 million or approximately 26% of the increase in year-over-year segment revenue growth. 

Operating income increased approximately $9.9 million or 168.8% year-over-year which reflected operating leverage associated with revenue growth, profit contribution from Renco and pricing and productivity initiatives.

In fiscal first quarter 2022, the company expects a slight increase in revenue and a moderate operating margin increase reflecting continued end market strength compared to fiscal fourth quarter 2021.

Engraving (21% of sales; 18% of segment operating income)


4Q21

4Q20

% Change

Engraving ($M)




Revenue

$36.6

$31.6

15.9%

Operating Income

5.6

2.6

119.0%

Operating Margin

15.4%

8.1%


Revenue increased approximately $5.0 million or 15.9% year-over-year with operating income growth of approximately $3.1 million or 119% year-over-year reflecting a favorable geographic mix, timing of projects, and increased soft trim product demand leveraged over segment productivity and cost initiatives.   

In fiscal first quarter 2022, the Company expects a slight to moderate revenue and operating margin decrease compared to fiscal fourth quarter 2021, primarily due to the timing of projects and regional mix.

Scientific (12% of sales; 13% of segment operating income)


4Q21

4Q20

% Change

Scientific ($M)




Revenue

$20.6

$12.7

62.7%

Operating Income

4.1

2.8

48.7%

Operating Margin

20.0%

21.9%


Revenue increased approximately $8.0 million or 62.7% year-over-year reflecting positive trends at pharmaceutical channels, clinical laboratories, and academic institutions primarily attributable to demand for COVID-19 vaccine storage compared to fourth quarter fiscal 2020.   

Operating income increased $1.4 million or 48.7% year-over-year, reflecting the volume increase balanced with investments to support future growth opportunities and higher freight costs. 

In fiscal first quarter 2022, the Company expects a moderate sequential decrease in revenue and slight decline in margin reflecting lower demand for COVID-19 vaccine storage refrigeration and increased freight costs partially offset by pricing actions. 

Engineering Technologies (11% of sales; 10% of segment operating income)


4Q21

4Q20

% Change

Engineering Technologies ($M)




Revenue

$20.5

$26.2

-21.8%

Operating Income

3.1

4.1

-25.6%

Operating Margin

15.1%

15.8%


On a year-over-year basis, revenue decreased $5.7 million or 21.8% and operating income was $1.1 million lower, representing a 25.6% decrease.  This primarily reflected the absence of the recently divested Enginetics business which contributed $3.6 million in revenue to fiscal fourth quarter 2020 and the economic impact of COVID-19 on this segment’s end markets.

On a sequential basis, operating margin increased to 15.1% compared to 6.2% in fiscal third quarter 2021 reflecting a continued broad-based sequential end market recovery and favorable mix complemented by ongoing productivity initiatives.    

In fiscal first quarter 2022, the Company expects a slight to moderate decrease in revenue and operating margin reflecting the timing of projects. 

Specialty Solutions (15% of sales; 9% of segment operating income)


4Q21

4Q20

% Change

Specialty Solutions ($M)




Revenue

$25.8

$24.1

7.1%

Operating Income

3.0

3.7

-18.7%

Operating Margin

11.6%

15.2%


On a year-over-year basis, Specialty Solutions revenue increased approximately $1.7 million or 7.1% as its end markets, particularly in food service and specialty retail continued to recover.  Operating income decreased $0.7 million or 18.7%. This reflected the impact of a work stoppage in the segment’s plants and material inflation which the Company is seeking to recover through pricing actions.

In fiscal first quarter 2022, the Company expects a slight sequential increase in revenue and operating margin primarily due to growth in Merchandising and Pumps businesses partially offset by the impact of a prior work stoppage at one of the plants.

Balance Sheet and Cash Flow Highlights

  • Net Debt: Standex had net debt of $63.1 million at June 30, 2021 compared to $82.1 million at the end of the fiscal third quarter of 2021 and $80.3 million at the end of fiscal 2020.  Net debt for the fourth quarter of 2021 consisted primarily of long-term debt of $200 million and cash and equivalents of $136.4 million of which $92.2 million was held by foreign subsidiaries.

                             

    Standex repatriated approximately $6.8 million in fiscal fourth quarter 2021 and $37.6 million in fiscal 2021. The company expects to repatriate between $30 million and $35 million in fiscal 2022. The Company’s net debt to adjusted EBITDA leverage ratio was approximately 0.57x at the end of the fiscal fourth quarter 2021.

                             
  • Cash Flow:  Net cash provided by continuing operating activities for the three months ended June 30, 2021 was $32.5 million compared to net cash provided by continuing operating activities of $25.2 million in the prior year. The Company generated free cash flow after capital expenditures of $26.4 million compared to free cash flow of $19.5 million in the fiscal fourth quarter of 2020. The year-over-year increase is primarily a result of improvement in working capital metrics.  

 Capital Allocation

  • Share Repurchase: During the fiscal fourth quarter, the Company repurchased approximately 50,000 shares for $5.0 million.  There is approximately $22 million remaining under the Board’s current share repurchase authorization.

                                
  • Capital Expenditures: In fiscal fourth quarter 2021, Standex’s capital expenditures were $6.1 million compared to $5.7 million in the fiscal fourth quarter of 2020.  Investments were focused on maintenance, safety, and the Company’s highest priority growth initiatives.  The Company expects fiscal year 2022 capital expenditures to be between $25 million and $30 million compared to $21.5 million in fiscal 2021.

                           
  • Dividends: On July 22, 2021, the Company declared a quarterly cash dividend of $0.24 per share, a 9% year-over-year increase.  The dividend is payable on August 25, 2021 to shareholders of record on August 2, 2021. 

Conference Call Details

Standex will host a conference call for investors tomorrow, August 13, 2021 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 August 13, 2022. To listen to the teleconference playback, please dial (877) 344-7529 in the U.S. or (412) 317-0088 internationally; the passcode is 10158341.  The audio playback via phone will be available through August 20, 2021. 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 including the impact of restructuring charges, purchase accounting, insurance recoveries, discrete tax events, loss on sale of a business unit, and acquisition 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, Brazil, 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 such as the current coronavirus 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, 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; 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; and our ability to increase manufacturing production to meet demand; 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



Year Ended




June 30,



June 30,

(In thousands, except per share data)



2021



2020



2021



2020














Net sales


$

176,435


$

139,386


$

656,232


$

604,535

Cost of sales



110,627



92,468



414,971



389,080

Gross profit



65,808



46,918



241,261



215,455














Selling, general and administrative expenses



42,305



34,802



163,063



148,499

Restructuring costs



1,000



1,877



3,478



4,669

Loss on sale of business







14,624



Acquisition related costs



81



110



931



1,759














Income from operations



22,422



10,129



59,165



60,528














Interest expense



1,589



1,655



5,992



7,475

Other non-operating (income) / expense



400



(456)



473



(1,021)

Total



1,989



1,199



6,465



6,454














Income from continuing operations before income taxes



20,433



8,930



52,700



54,074

Provision for income taxes



6,002



2,832



14,157



13,060

Net income from continuing operations



14,431



6,098



38,543



41,014














Income (loss) from discontinued operations, net of tax



(482)



(4,263)



(2,070)



(20,826)














Net income (loss)


$

13,949


$

1,835


$

36,473


$

20,188














Basic earnings per share:













Income (loss) from continuing operations


$

1.20


$

0.50


$

3.17


$

3.33

Income (loss) from discontinued operations



(0.04)



(0.35)



(0.17)



(1.69)

Total


$

1.16


$

0.15


$

3.00


$

1.64














Diluted earnings per share:













Income (loss) from continuing operations


$

1.18


$

0.50


$

3.14


$

3.31

Income (loss) from discontinued operations



(0.04)



(0.35)



(0.17)



(1.68)

Total


$

1.14


$

0.15


$

2.97


$

1.63














Average Shares Outstanding













   Basic



12,068



12,249



12,156



12,324

   Diluted



12,213



12,281



12,258



12,387

 

 

Standex International Corporation

Condensed Consolidated Balance Sheets

(unaudited)











June 30,



June 30,

(In thousands)



2021



2020








ASSETS







Current assets:







  Cash and cash equivalents


$

136,367


$

118,809

  Accounts receivable, net



109,883



98,157

  Inventories



91,862



85,031

  Prepaid expenses and other current assets



23,504



18,870

  Income taxes receivable



12,750



8,194

  Current assets- Discontinued Operations





2,936

    Total current assets



374,366



331,997








Property, plant, equipment, net



133,373



132,533

Intangible assets, net



98,929



106,412

Goodwill



278,054



271,221

Deferred tax asset



9,566



17,322

Operating lease right-of-use asset



37,276



44,788

Other non-current assets



30,659



26,605

    Total non-current assets



587,857



598,881








Total assets


$

962,223


$

930,878








LIABILITIES AND STOCKHOLDERS’ EQUITY













Current liabilities:







  Accounts payable


$

74,756


$

54,910

  Accrued liabilities



61,717



60,539

  Income taxes payable



7,236



7,428

    Total current liabilities



143,709



122,877








Long-term debt



199,490



199,150

Operating lease long-term liabilities



29,041



36,293

Accrued pension and other non-current liabilities


83,558



110,926

    Total non-current liabilities



312,089



346,369








Stockholders’ equity:







  Common stock



41,976



41,976

  Additional paid-in capital



80,788



72,752

  Retained earnings



852,489



827,656

  Accumulated other comprehensive loss



(116,140)



(147,659)

  Treasury shares



(352,688)



(333,093)

     Total stockholders’ equity



506,425



461,632








Total liabilities and stockholders’ equity


$

962,223


$

930,878

 

 

Standex International Corporation and Subsidiaries

Statements of Consolidated Cash Flows

(unaudited)




Year Ended




June 30,

(In thousands)



2021



2020








Cash Flows from Operating Activities







Net income


$

36,473


$

20,188

Income (loss) from discontinued operations



(2,070)



(20,826)

Income from continuing operations



38,543



41,014








Adjustments to reconcile net income to net cash provided by operating activities:





Depreciation and amortization



33,241



32,294

Stock-based compensation



8,368



7,026

Non-cash portion of restructuring charge



(489)



386

Gain from extinguishment of debt – PPP loan 



(713)



Loss on sale of business



14,624



Life insurance benefit





(1,302)

Contributions to defined benefit plans



(8,120)



(4,040)

Net changes in operating assets and liabilities



(3,588)



(20,701)

Net cash provided by operating activities – continuing operations



81,866



54,677

Net cash provided by (used in) operating activities – discontinued operations



1,716



(7,435)

Net cash provided by (used in) operating activities



83,582



47,242

Cash Flows from Investing Activities







    Expenditures for property, plant and equipment



(21,752)



(21,521)

    Expenditures for acquisitions, net of cash acquired



(27,406)



(622)

    Proceeds from sale of business



11,678



    Other investing activities



(1,611)



1,523

Net cash (used in) investing activities from continuing operations



(39,091)



(20,620)

Net cash provided by investing activities from discontinued operations





20,003

Net cash (used in) investing activities



(39,091)



(617)

Cash Flows from Financing Activities







    Proceeds from borrowings



(17,000)



106,500

    Payments of debt



17,000



(105,300)

    Contingent consideration payment



(356)



(872)

    Activity under share-based payment plans



1,273



1,738

    Purchase of treasury stock



(21,200)



(10,437)

    Cash dividends paid



(11,449)



(10,606)

Net cash provided by (used in) financing activities



(31,732)



(18,977)








Effect of exchange rate changes on cash



4,799



(1,984)








Net changes in cash and cash equivalents



17,558



25,664

Cash and cash equivalents at beginning of year



118,809



93,145

Cash and cash equivalents at end of period


$

136,367


$

118,809

 

Standex International Corporation

Selected Segment Data

(unaudited)

















Three Months Ended



Year Ended




June 30,



June 30,

(In thousands)



2021



2020



2021



2020

Net Sales













Electronics


$

72,844


$

44,773


$

253,369


$

185,294

Engraving



36,639



31,618



147,016



143,736

Scientific



20,645



12,689



79,421



57,523

Engineering Technologies



20,471



26,178



75,562



104,047

Specialty Solutions



25,836



24,128



100,864



113,935

Total


$

176,435


$

139,386


$

656,232


$

604,535














Income from operations













Electronics


$

15,739


$

5,856


$

46,600


$

29,749

Engraving



5,626



2,569



22,510



20,493

Scientific



4,127



2,775



18,240



13,740

Engineering Technologies



3,088



4,149



6,164



14,027

Specialty Solutions



2,990



3,678



14,358



18,546

Restructuring



(1,000)



(1,877)



(3,478)



(4,669)

Acquisition Related Costs



(81)



(110)



(931)



(1,759)

Loss on Sale of Business







(14,624)



Corporate



(8,067)



(6,911)



(29,674)



(29,599)

Total


$

22,422


$

10,129


$

59,165


$

60,528

 

Standex International Corporation



Reconciliation of GAAP to Non-GAAP Financial Measures



(unaudited)

























Three Months Ended





Year Ended







June 30,





June 30,



(In thousands, except percentages)



2021



2020


% Change



2021



2020


% Change

Adjusted income from operations and adjusted net income from continuing operations:

















Net Sales


$

176,435


$

139,386


26.6%


$

656,232


$

604,535


8.6%

Income from operations, as reported


$

22,422


$

10,129


121.4%


$

59,165


$

60,528


-2.3%


Income from operations margin



12.7%



7.3%





9.0%



10.0%



Adjustments:


















Restructuring charges



1,000



1,877





3,478



4,669




Acquisition-related costs



81



110





931



1,759




Loss on sale of business









14,624






Property insurance deductible














Purchase accounting expenses









592





Adjusted income from operations


$

23,503


$

12,116


94.0%


$

78,790


$

66,956


17.7%


Adjusted income from operations margin



13.3%



8.7%





12.0%



11.1%




Interest and other income (expense), net



(1,989)



(1,199)





(6,465)



(6,454)




Life insurance benefit












(1,302)




Provision for income taxes



(6,002)



(2,832)





(14,157)



(13,060)




Discrete and other tax items



1,774



253





1,578



(1,164)




Tax impact of above adjustments



(224)



(338)





(3,434)



(1,716)



Net income from continuing operations, as adjusted


$

17,062


$

8,000


113.3%


$

56,312


$

43,260


30.2%



















EBITDA and Adjusted EBITDA:

















Net income (loss) from continuing operations, as reported


$

14,431


$

6,098


136.7%


$

38,543


$

41,014




Net income from continuing operations margin



8.2%



4.4%





5.9%



6.8%



Add back:


















Provision for income taxes



6,002



2,832





14,157



13,060




Interest expense



1,589



1,655





5,992



7,475




Depreciation and amortization



8,398



7,992





33,241



32,294



EBITDA


$

30,420


$

18,577


63.8%


$

91,933


$

93,843


-2.0%


EBITDA Margin



17.2%



13.3%





14.0%



15.5%



Adjustments:


















Restructuring charges



1,000



1,877





3,478



4,669




Acquisition-related costs



81



110





931



1,759




Loss on sale of business









14,624






Life insurance benefit











(1,302)




Purchase accounting expenses









592





Adjusted EBITDA


$

31,501


$

20,564


53.2%


$

111,558


$

98,969


12.7%


Adjusted EBITDA Margin



17.9%



14.8%





17.0%



16.4%





















Free operating cash flow:

















Net cash provided by operating activities – continuing operations, as reported


$

32,528


$

25,188




$

81,866


$

54,677



Less: Capital expenditures



(6,140)



(5,715)





(21,752)



(21,521)



Free operating cash flow


$

26,388


$

19,473




$

60,114


$

33,156



 

Standex International Corporation

Reconciliation of GAAP to Non-GAAP Financial Measures

(unaudited)























Three Months Ended





Year Ended



Adjusted earnings per share from continuing

operations



June 30,





June 30,





2021



2020


%

Change



2021



2020


%

Change



















Diluted earnings per share from continuing

operations, as reported


$

1.18


$

0.50


136.0%


$

3.14


$

3.31


-5.1%



















Adjustments:


















Restructuring charges



0.06



0.12





0.22



0.28




Acquisition-related costs



0.01



0.01





0.06



0.10




Loss on sale of business









1.01






Life insurance benefit











(0.11)




Discrete tax items



0.15



0.02





0.13



(0.09)




Purchase accounting expenses









0.04





Diluted earnings per share from continuing

operations, as adjusted


$

1.40


$

0.65


115.4%


$

4.60


$

3.49


31.8%

 

 

 

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SOURCE Standex International Corporation