STANDEX REPORTS FISCAL THIRD QUARTER 2024 FINANCIAL RESULTS
-
Fast Growth Market Sales Increased ~9% Year-On-Year to
~$26 Million - Organic Sales Decline of 5.7% Year-on-Year; In FY25, Expect Return to Organic Growth Rates In Line with Previously Communicated Long Term Financial Objectives.
- GAAP Gross Margin of 38.5% and Adjusted Gross Margin of 39.0%, Up 50 bps Year-on-Year
- GAAP Operating Margin of 12.3%
- Adjusted Operating Margin of 15.4%, up 20 bps Year-On-Year; Includes 70 bps Charge from One-Time Stock Compensation
-
Record Fiscal Third Quarter' Free Cash Flow of
$19.3 Million ; Record Year-to-Date Free Cash Flow of$50.8 Million -
Completed Acquisition of
Japanese-Based Sanyu Switch Co., Ltd
Summary Financial Results - Total |
|
|
|
|
|
($M except EPS and Dividends) |
3Q24 |
3Q23 |
2Q24 |
Y/Y |
Q/Q |
|
|
|
|
-3.8 % |
-0.6 % |
Operating Income – GAAP |
|
|
|
-75.3 % |
-15.4 % |
Operating Income – Adjusted |
|
|
|
-2.2 % |
-4.7 % |
Operating Margin % - GAAP |
12.3 % |
48.0 % |
14.5 % |
- 3,570 bps |
- 220 bps |
Operating Margin % - Adjusted |
15.4 % |
15.2 % |
16.1 % |
+ 20 bps |
- 70 bps |
Net Income from Continuing Ops – GAAP |
|
|
|
-80.2 % |
-16.4 % |
Net Income from Continuing Ops – Adjusted |
|
|
|
5.4 % |
-1.9 % |
|
|
|
|
|
|
EBITDA |
|
|
|
-70.1 % |
-12.3 % |
EBITDA margin |
16.0 % |
51.6 % |
18.2 % |
- 3,560 bps |
- 220 bps |
Adjusted EBITDA |
|
|
|
-0.1 % |
-1.4 % |
Adjusted EBITDA margin |
19.5 % |
18.7 % |
19.6 % |
+ 80 bps |
- 10 bps |
|
|
|
|
|
|
Diluted EPS – GAAP |
|
|
|
-80.1 % |
-16.1 % |
Diluted EPS – Adjusted |
|
|
|
6.1 % |
-1.7 % |
Dividends per Share |
|
|
|
7.1 % |
0.0 % |
|
|
|
|
|
|
Free Cash Flow |
|
|
|
9.2 % |
-1.3 % |
Net Debt to EBITDA |
0.1x |
0.0x |
0.0x |
NM |
NM |
Third Quarter Fiscal 2024 Results
Commenting on the quarter's results, President and Chief Executive Officer David Dunbar said, "I am pleased with our third quarter operating performance despite continued softness in general market conditions impacting our top line. We again achieved solid adjusted gross margin of near 40%, which followed a record of 40.3% last quarter. Excluding the one-time charge related to stock compensation, adjusted operating margin would have been similar to our record second quarter performance. Three of our business segments finished the quarter with operating margin near or above 20%, while margin in the Engineering Technologies segment approached nearly 18%. As such, we remain confident in our continued margin performance towards our long-term target by fiscal year 2028 of greater than 19% operating margin. From a cash perspective, we generated record fiscal third quarter' free operating cash flow of
"We remain optimistic about the long-term secular trends in our fast growth end markets. These markets will benefit from trends like the transition from internal combustion to hybrid and electric in automotive, infrastructure spending in smart grid, defense applications and next generation aerospace development, and from the evolution of space exploration, all of which are still in the earlier stages. In the fiscal third quarter, our fast growth market sales grew 9% year on year to
"Overall, we continued to experience transitory headwinds in several of our end markets which led to a 5.7% organic decline year-on-year in the fiscal third quarter. These headwinds include continued softness in appliances and general industrial end markets in
"In late February, we completed our acquisition of Japanese-based
Outlook
In the fiscal fourth quarter 2024, on a sequential basis, the Company expects slightly to moderately higher revenue due to favorable project timing in the Engineering Technologies segment, increased market demand in the Specialty Solutions segment, and the impact of the Company's recent acquisition of Sanyu. The Company expects slightly to moderately higher adjusted operating margin sequentially due to leverage on higher sales and pricing and productivity actions.
Third Quarter Segment Operating Performance
Electronics (45 % of sales; 46% of segment operating income)
|
3Q24 |
3Q23 |
% Change |
Electronics ($M) |
|
|
|
Revenue |
80.4 |
78.2 |
2.8 % |
GAAP Operating Income |
15.7 |
17.0 |
-7.9 % |
GAAP Operating Margin % |
19.5 |
21.8 |
|
Adjusted Operating Income |
16.5 |
17.0 |
-3.1 % |
Adjusted Operating Margin % |
20.5 |
21.8 |
|
*Excludes purchase accounting expenses of |
Revenue increased approximately
Electronics segment backlog realizable in under one year of approximately
In fiscal fourth quarter 2024, on a sequential basis, the Company expects similar revenue and slightly lower to similar adjusted operating margin due to unfavorable mix.
Engraving (20% of sales; 17% of segment operating income)
|
3Q24 |
3Q23 |
% Change |
Engraving ($M) |
|
|
|
Revenue |
36.3 |
36.9 |
-1.7 % |
Operating Income |
6.3 |
5.4 |
16.9 % |
Operating Margin % |
17.2 |
14.5 |
|
Revenue decreased approximately
In fiscal fourth quarter 2024, on a sequential basis, the Company expects slightly lower revenue and slightly to moderately lower operating margin due to unfavorable project timing in
Scientific (10% of sales; 14% of segment operating income)
|
3Q24 |
3Q23 |
% Change |
Scientific ($M) |
|
|
|
Revenue |
16.9 |
18.9 |
-10.4 % |
Operating Income |
4.9 |
4.6 |
7.3 % |
Operating Margin % |
28.9 |
24.1 |
|
Revenue decreased approximately
In fiscal fourth quarter 2024, on a sequential basis, the Company expects slightly higher revenue and similar operating margin.
Engineering Technologies (11% of sales; 10% of segment operating income )
|
3Q24 |
3Q23 |
% Change |
Engineering Technologies ($M) |
|
|
|
Revenue |
20.1 |
18.1 |
11.3 % |
Operating Income |
3.5 |
2.4 |
49.9 % |
Operating Margin % |
17.5 |
13.0 |
|
Revenue increased approximately
In fiscal fourth quarter 2024, on a sequential basis, the Company expects moderately to significantly higher revenue and moderately higher operating margin due to favorable project timing.
Specialty Solutions (13% of sales; 13% of segment operating income)
|
3Q24 |
3Q23 |
% Change |
Specialty Solutions ($M) |
|
|
|
Revenue |
23.5 |
32.3 |
-27.1 % |
Operating Income |
4.7 |
7.2 |
-34.7 % |
Operating Margin % |
19.9 |
22.2 |
|
Specialty Solutions revenue decreased approximately
In fiscal fourth quarter 2024, on a sequential basis, the Company expects moderately higher revenue and operating margin due to improved end market demand and leverage on higher sales.
Capital Allocation
-
Share Repurchase: During the fiscal third quarter 2024, the Company repurchased approximately 34,000 shares for
$5.1 million . There was$33.3 million remaining on the Company's current share repurchase authorization at the end of the fiscal third quarter 2024. -
Capital Expenditures: In fiscal third quarter 2024,
Standex's capital expenditures were$5.2 million compared to$5.6 million in the fiscal third quarter of 2023. The Company now expects fiscal year 2024 capital expenditures between$28 million and$32 million . Capital expenditures were$24.3 million in fiscal 2023. -
Dividend: On
April 25, 2024 , the Company declared a quarterly cash dividend of$0.30 per share, an approximately 7.1% year-on-year increase. The dividend is payableMay 24, 2024 , to shareholders of record onMay 10, 2024 .
Balance Sheet and Cash Flow Highlights
-
Net Debt: Standex had net (cash) debt of
$10.0 million onMarch 31, 2024 , compared to($2.0) million at the end of fiscal third quarter 2023. Net debt for the third quarter of 2024 consisted primarily of long-term debt of$148.8 million and cash and equivalents of$138.8 million .
-
Cash Flow: Net cash provided by continuing operating activities for the three months ended
March 31, 2024 , was $24.4 million compared to$23.3 million in the prior year's quarter. Free cash flow after capital expenditures was $19.3 million compared to free cash flow after capital expenditures of $17.6 million in the fiscal third quarter of 2023.
Conference Call Details
A replay of the webcast will also be available on the Company's website shortly after the conclusion of the presentation online through
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
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
|
||||||||||||
Consolidated Statement of Operations |
||||||||||||
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
||||||
|
|
|
|
|
|
|
||||||
(In thousands, except per share data) |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
177,267 |
|
|
184,332 |
|
$ |
540,441 |
|
$ |
552,721 |
Cost of sales |
|
|
108,977 |
|
|
113,435 |
|
|
327,853 |
|
|
341,251 |
Gross profit |
|
|
68,290 |
|
|
70,897 |
|
|
212,588 |
|
|
211,470 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
|
|
41,764 |
|
|
42,954 |
|
|
128,625 |
|
|
127,756 |
(Gain) loss on sale of business |
|
|
- |
|
|
(62,105) |
|
|
(274) |
|
|
(62,105) |
Restructuring costs |
|
|
4,037 |
|
|
2,237 |
|
|
7,303 |
|
|
3,330 |
Acquisition related costs |
|
|
537 |
|
|
21 |
|
|
2,233 |
|
|
487 |
Other operating (income) expense, net |
|
|
110 |
|
|
(727) |
|
|
110 |
|
|
(611) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations |
|
|
21,842 |
|
|
88,517 |
|
|
74,591 |
|
|
142,613 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
949 |
|
|
1,415 |
|
|
3,244 |
|
|
4,168 |
Other non-operating (income) expense, net |
|
|
627 |
|
|
747 |
|
|
1,805 |
|
|
1,695 |
Total |
|
|
1,576 |
|
|
2,162 |
|
|
5,049 |
|
|
5,863 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations before income taxes |
|
|
20,266 |
|
|
86,355 |
|
|
69,542 |
|
|
136,750 |
Provision for income taxes |
|
|
4,327 |
|
|
5,788 |
|
|
15,639 |
|
|
17,783 |
Net income from continuing operations |
|
|
15,939 |
|
|
80,567 |
|
|
53,903 |
|
|
118,967 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from discontinued operations, net of tax |
|
|
(141) |
|
|
(57) |
|
|
(420) |
|
|
(144) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
15,798 |
|
$ |
80,510 |
|
$ |
53,483 |
|
$ |
118,823 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations |
|
$ |
1.35 |
|
$ |
6.82 |
|
$ |
4.58 |
|
$ |
10.06 |
Income (loss) from discontinued operations |
|
|
(0.01) |
|
|
- |
|
|
(0.03) |
|
|
(0.01) |
Total |
|
$ |
1.34 |
|
$ |
6.82 |
|
$ |
4.55 |
|
$ |
10.05 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations |
|
$ |
1.35 |
|
$ |
6.77 |
|
$ |
4.54 |
|
$ |
9.98 |
Income (loss) from discontinued operations |
|
|
(0.02) |
|
|
- |
|
|
(0.04) |
|
|
(0.01) |
Total |
|
$ |
1.33 |
|
$ |
6.77 |
|
$ |
4.50 |
|
$ |
9.97 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Shares Outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
11,772 |
|
|
11,811 |
|
|
11,764 |
|
|
11,825 |
Diluted |
|
|
11,849 |
|
|
11,895 |
|
|
11,876 |
|
|
11,917 |
|
||||||
Condensed Consolidated Balance Sheets |
||||||
(unaudited) |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands) |
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
138,799 |
|
|
195,706 |
Accounts receivable, net |
|
|
120,501 |
|
|
123,440 |
Inventories |
|
|
95,170 |
|
|
98,537 |
Prepaid expenses and other current assets |
|
|
62,066 |
|
|
64,739 |
Income taxes receivable |
|
|
2,617 |
|
|
831 |
Total current assets |
|
|
419,153 |
|
|
483,253 |
|
|
|
|
|
|
|
Property, plant, equipment, net |
|
|
135,003 |
|
|
130,937 |
Intangible assets, net |
|
|
81,881 |
|
|
75,651 |
|
|
|
282,000 |
|
|
264,821 |
Deferred tax asset |
|
|
15,047 |
|
|
14,602 |
Operating lease right-of-use asset |
|
|
34,421 |
|
|
33,273 |
Other non-current assets |
|
|
26,001 |
|
|
22,392 |
Total non-current assets |
|
|
574,353 |
|
|
541,676 |
|
|
|
|
|
|
|
Total assets |
|
$ |
993,506 |
|
$ |
1,024,929 |
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Accounts payable |
|
$ |
58,448 |
|
|
68,601 |
Accrued liabilities |
|
|
55,447 |
|
|
62,031 |
Income taxes payable |
|
|
8,453 |
|
|
10,335 |
Total current liabilities |
|
|
122,348 |
|
|
140,967 |
|
|
|
|
|
|
|
Long-term debt |
|
|
148,768 |
|
|
173,441 |
Operating lease long-term liabilities |
|
|
29,001 |
|
|
25,774 |
Accrued pension and other non-current liabilities |
|
|
74,407 |
|
|
77,298 |
Total non-current liabilities |
|
|
252,176 |
|
|
276,513 |
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
|
Common stock |
|
|
41,976 |
|
|
41,976 |
Additional paid-in capital |
|
|
104,753 |
|
|
100,555 |
Retained earnings |
|
|
1,070,255 |
|
|
1,027,279 |
Accumulated other comprehensive loss |
|
|
(168,005) |
|
|
(158,477) |
|
|
|
(429,997) |
|
|
(403,884) |
Total stockholders' equity |
|
|
618,982 |
|
|
607,449 |
|
|
|
|
|
|
|
Total liabilities and stockholders' equity |
|
$ |
993,506 |
|
$ |
1,024,929 |
|
|
|
|
|
||
Statements of Consolidated Cash Flows |
|
|
|
|
||
(unaudited) |
|
|
|
|
||
|
|
|
Nine Months Ended |
|||
|
|
|
|
|||
(In thousands) |
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
Cash Flows from Operating Activities |
|
|
|
|
|
|
Net income |
|
$ |
53,483 |
|
|
118,823 |
Income (loss) from discontinued operations |
|
|
(420) |
|
|
(144) |
Income from continuing operations |
|
|
53,903 |
|
|
118,967 |
|
|
|
|
|
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
21,146 |
|
|
21,275 |
Stock-based compensation |
|
|
8,524 |
|
|
8,508 |
Non-cash portion of restructuring charge |
|
|
895 |
|
|
129 |
(Gain) loss on sale of business |
|
|
(274) |
|
|
(62,105) |
Contributions to defined benefit plans |
|
|
(8,506) |
|
|
(151) |
Net changes in operating assets and liabilities |
|
|
(11,079) |
|
|
(36,268) |
Net cash provided by operating activities - continuing operations |
|
|
64,609 |
|
|
50,355 |
Net cash provided by (used in) operating activities - discontinued operations |
|
|
(497) |
|
|
(37) |
Net cash provided by (used in) operating activities |
|
|
64,112 |
|
|
50,318 |
Cash Flows from Investing Activities |
|
|
|
|
|
|
Expenditures for property, plant and equipment |
|
|
(13,765) |
|
|
(16,648) |
Expenditures for acquisitions, net of cash acquired |
|
|
(47,696) |
|
|
- |
Proceeds from the sale of business |
|
|
7,774 |
|
|
67,023 |
Other investing activities |
|
|
(270) |
|
|
(1,321) |
Net cash (used in) investing activities from continuing operations |
|
|
(53,957) |
|
|
49,054 |
Net cash provided by investing activities from discontinued operations |
|
|
- |
|
|
- |
Net cash provided by (used in) investing activities |
|
|
(53,957) |
|
|
49,054 |
Cash Flows from Financing Activities |
|
|
|
|
|
|
Proceeds from borrowings |
|
|
- |
|
|
224,500 |
Payments of debt |
|
|
(25,000) |
|
|
(226,200) |
Contingent consideration payment |
|
|
- |
|
|
(1,167) |
Activity under share-based payment plans |
|
|
1,325 |
|
|
1,170 |
Purchase of treasury stock |
|
|
(31,781) |
|
|
(18,582) |
Cash dividends paid |
|
|
(10,375) |
|
|
(9,699) |
Net cash provided by (used in) financing activities |
|
|
(65,831) |
|
|
(29,978) |
|
|
|
|
|
|
|
Effect of exchange rate changes on cash |
|
|
(1,231) |
|
|
1,046 |
|
|
|
|
|
|
|
Net changes in cash and cash equivalents |
|
|
(56,907) |
|
|
70,440 |
Cash and cash equivalents at beginning of year |
|
|
195,706 |
|
|
104,844 |
Cash and cash equivalents at end of period |
|
$ |
138,799 |
|
$ |
175,284 |
|
||||||||||||
Selected Segment Data |
||||||||||||
(unaudited) |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
||||||
|
|
|
|
|
|
|
||||||
(In thousands) |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Electronics |
|
$ |
80,431 |
|
$ |
78,211 |
|
$ |
241,538 |
|
$ |
225,966 |
Engraving |
|
|
36,297 |
|
|
36,909 |
|
|
117,936 |
|
|
109,622 |
Scientific |
|
|
16,925 |
|
|
18,898 |
|
|
51,410 |
|
|
56,646 |
Engineering Technologies |
|
|
20,098 |
|
|
18,052 |
|
|
58,205 |
|
|
59,244 |
Specialty Solutions |
|
|
23,516 |
|
|
32,262 |
|
|
71,352 |
|
|
101,243 |
Total |
|
$ |
177,267 |
|
$ |
184,332 |
|
$ |
540,441 |
|
$ |
552,721 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations |
|
|
|
|
|
|
|
|
|
|
|
|
Electronics |
|
$ |
15,700 |
|
$ |
17,047 |
|
$ |
47,884 |
|
$ |
52,160 |
Engraving |
|
|
6,260 |
|
|
5,353 |
|
|
22,765 |
|
|
17,580 |
Scientific |
|
|
4,896 |
|
|
4,561 |
|
|
14,074 |
|
|
12,449 |
Engineering Technologies |
|
|
3,524 |
|
|
2,351 |
|
|
9,946 |
|
|
7,957 |
Specialty Solutions |
|
|
4,668 |
|
|
7,151 |
|
|
14,250 |
|
|
18,944 |
Restructuring |
|
|
(4,037) |
|
|
(2,237) |
|
|
(7,303) |
|
|
(3,330) |
Gain (loss) on sale of business |
|
|
- |
|
|
62,105 |
|
|
274 |
|
|
62,105 |
Acquisition related costs |
|
|
(537) |
|
|
(21) |
|
|
(2,233) |
|
|
(487) |
Corporate |
|
|
(8,522) |
|
|
(8,520) |
|
|
(24,956) |
|
|
(25,376) |
Other operating income (expense), net |
|
|
(110) |
|
|
727 |
|
|
(110) |
|
|
611 |
Total |
|
$ |
21,842 |
|
$ |
88,517 |
|
$ |
74,591 |
|
$ |
142,613 |
|
|
|
|||||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures |
|
|
|||||||||||||||
(unaudited) |
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
Nine Months Ended |
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
(In thousands, except percentages) |
|
|
2024 |
|
|
2023 |
|
% Change |
|
|
2024 |
|
|
2023 |
|
% Change |
|
Adjusted income from operations and adjusted net income from continuing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
177,267 |
|
$ |
184,332 |
|
-3.8 % |
|
$ |
540,441 |
|
$ |
552,721 |
|
-2.2 % |
|
Income from operations, as reported |
|
$ |
21,842 |
|
$ |
88,517 |
|
-75.3 % |
|
$ |
74,591 |
|
$ |
142,613 |
|
-47.7 % |
|
|
Income from operations margin |
|
|
12.3 % |
|
|
48.0 % |
|
|
|
|
13.8 % |
|
|
25.8 % |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring charges |
|
|
4,037 |
|
|
2,237 |
|
|
|
|
7,303 |
|
|
3,330 |
|
|
|
Acquisition-related costs |
|
|
537 |
|
|
21 |
|
|
|
|
2,233 |
|
|
487 |
|
|
|
Litigation (settlement refund) charge |
|
|
- |
|
|
(996) |
|
|
|
|
- |
|
|
(881) |
|
|
|
(Gain) loss on sale of business |
|
|
- |
|
|
(62,105) |
|
|
|
|
(274) |
|
|
(62,105) |
|
|
|
Environmental remediation |
|
|
110 |
|
|
271 |
|
|
|
|
110 |
|
|
271 |
|
|
|
Property insurance deductible |
|
|
- |
|
|
- |
|
|
|
|
- |
|
|
- |
|
|
|
Purchase accounting expenses |
|
|
818 |
|
|
- |
|
|
|
|
1,463 |
|
|
- |
|
|
Adjusted income from operations |
|
$ |
27,344 |
|
$ |
27,945 |
|
-2.2 % |
|
$ |
85,426 |
|
$ |
83,715 |
|
2.0 % |
|
|
Adjusted income from operations margin |
|
|
15.4 % |
|
|
15.2 % |
|
|
|
|
15.8 % |
|
|
15.1 % |
|
|
|
Interest and other income (expense), net |
|
|
(1,576) |
|
|
(2,162) |
|
|
|
|
(5,049) |
|
|
(5,863) |
|
|
|
Foreign currency related (gain) loss on acquisition and divestiture activities |
|
|
591 |
|
|
- |
|
|
|
|
309 |
|
|
- |
|
|
|
Provision for income taxes |
|
|
(4,327) |
|
|
(5,788) |
|
|
|
|
(15,639) |
|
|
(17,783) |
|
|
|
Discrete and other tax items |
|
|
- |
|
|
- |
|
|
|
|
100 |
|
|
100 |
|
|
|
Tax impact of above adjustments |
|
|
(1,342) |
|
|
(370) |
|
|
|
|
(2,568) |
|
|
(769) |
|
|
Net income from continuing operations, as adjusted |
|
$ |
20,690 |
|
$ |
19,625 |
|
5.4 % |
|
$ |
62,579 |
|
$ |
59,400 |
|
5.4 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA and Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) from continuing operations, as reported |
|
$ |
15,939 |
|
$ |
80,567 |
|
-80.2 % |
|
$ |
53,903 |
|
$ |
118,967 |
|
|
|
|
Net income from continuing operations margin |
|
|
9.0 % |
|
|
43.7 % |
|
|
|
|
10.0 % |
|
|
21.5 % |
|
|
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
|
4,327 |
|
|
5,788 |
|
|
|
|
15,639 |
|
|
17,783 |
|
|
|
Interest expense |
|
|
949 |
|
|
1,415 |
|
|
|
|
3,244 |
|
|
4,168 |
|
|
|
Depreciation and amortization |
|
|
7,177 |
|
|
7,309 |
|
|
|
|
21,146 |
|
|
21,275 |
|
|
EBITDA |
|
$ |
28,392 |
|
$ |
95,079 |
|
-70.1 % |
|
$ |
93,932 |
|
$ |
162,193 |
|
-42.1 % |
|
|
EBITDA Margin |
|
|
16.0 % |
|
|
51.6 % |
|
|
|
|
17.4 % |
|
|
29.3 % |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring charges |
|
|
4,037 |
|
|
2,237 |
|
|
|
|
7,303 |
|
|
3,330 |
|
|
|
Acquisition-related costs |
|
|
537 |
|
|
21 |
|
|
|
|
2,233 |
|
|
487 |
|
|
|
Litigation (settlement refund) charge |
|
|
- |
|
|
(996) |
|
|
|
|
- |
|
|
(881) |
|
|
|
(Gain) loss on sale of business |
|
|
- |
|
|
(62,105) |
|
|
|
|
(274) |
|
|
(62,105) |
|
|
|
Foreign currency related (gain) loss on acquisition and divestiture activities |
|
|
591 |
|
|
- |
|
|
|
|
309 |
|
|
- |
|
|
|
Environmental remediation |
|
|
110 |
|
|
271 |
|
|
|
|
110 |
|
|
271 |
|
|
|
Life insurance benefit |
|
|
- |
|
|
- |
|
|
|
|
- |
|
|
- |
|
|
|
Purchase accounting expenses |
|
|
818 |
|
|
- |
|
|
|
|
1,463 |
|
|
- |
|
|
Adjusted EBITDA |
|
$ |
34,485 |
|
$ |
34,507 |
|
-0.1 % |
|
$ |
105,076 |
|
$ |
103,295 |
|
1.7 % |
|
|
Adjusted EBITDA Margin |
|
|
19.5 % |
|
|
18.7 % |
|
|
|
|
19.4 % |
|
|
18.7 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free operating cash flow: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities - continuing operations, as reported |
|
$ |
24,442 |
|
$ |
23,265 |
|
|
|
$ |
64,609 |
|
$ |
50,356 |
|
|
|
Less: Capital expenditures |
|
|
(5,178) |
|
|
(5,620) |
|
|
|
|
(13,765) |
|
|
(16,648) |
|
|
|
Free cash flow from continuing operations |
|
$ |
19,264 |
|
$ |
17,645 |
|
|
|
$ |
50,844 |
|
$ |
33,708 |
|
|
|
|||||||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures |
|||||||||||||||||
(unaudited) |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
Nine Months Ended |
|
|
||||||
Adjusted earnings per share from continuing operations |
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
2024 |
|
|
2023 |
|
%
|
|
|
2024 |
|
|
2023 |
|
% Change |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share from continuing operations, as reported |
|
$ |
1.35 |
|
$ |
6.77 |
|
-80.1 % |
|
$ |
4.54 |
|
$ |
9.98 |
|
-54.5 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring charges |
|
|
0.26 |
|
|
0.14 |
|
|
|
|
0.48 |
|
|
0.21 |
|
|
|
Acquisition-related costs |
|
|
0.04 |
|
|
|
|
|
|
|
0.14 |
|
|
0.03 |
|
|
|
Litigation (settlement refund) charge |
|
|
- |
|
|
(0.06) |
|
|
|
|
- |
|
|
(0.06) |
|
|
|
(Gain) loss on sale of business |
|
|
- |
|
|
(5.22) |
|
|
|
|
(0.02) |
|
|
(5.22) |
|
|
|
Foreign currency related (gain) loss on acquisition and divestiture activities |
|
|
0.04 |
|
|
- |
|
|
|
|
0.02 |
|
|
- |
|
|
|
Environmental remediation |
|
|
0.01 |
|
|
0.02 |
|
|
|
|
0.01 |
|
|
0.02 |
|
|
|
Discrete tax items |
|
|
- |
|
|
- |
|
|
|
|
0.01 |
|
|
0.01 |
|
|
|
Purchase accounting expenses |
|
|
0.05 |
|
|
- |
|
|
|
|
0.09 |
|
|
- |
|
|
Diluted earnings per share from continuing operations, as adjusted |
|
$ |
1.75 |
|
$ |
1.65 |
|
6.1 % |
|
$ |
5.27 |
|
$ |
4.97 |
|
6.0 % |
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