• Gross sales Declined 7.7% with Contributions from Acquisitions Partly Offsetting Natural Subside
• Report GAAP and Adjusted Rude Margin of 41.1%; Up 240 bps Sequentially and 160 bps YOY
• GAAP Working Margin of 14.1%; Adjusted Working Margin of 15.9%
• Obtained Amran Software Transformers & Narayan Powertech Pvt., Ltd., Biggest Acquisition in Corporate’s Historical past; Considerably Expands Presence in Rapid-Rising, Top-Margin Electric Grid Finish Marketplace; Anticipated to be Instantly Accretive to Earnings Enlargement, Margins, and EPS

SALEM, N.H., Oct. 29, 2024 /PRNewswire/ — Standex International Corporation (NYSE: SXI) these days reported monetary effects for the primary quarter of fiscal 12 months 2025 ended September 30, 2024.

First Quarter Fiscal 2025 Effects 

Commenting at the quarter’s effects, President and Important Government Officer David Dunbar stated, “Following record profit and cash generation in fiscal year 2024, we delivered another solid operational performance in the fiscal first quarter with record gross margin. Sales from fast growth markets in electric vehicles, defense applications, and commercialization of space improved year-on-year, respectively, but were offset primarily by demand conditions affecting the soft trim business in our Engraving segment. In the fiscal first quarter, we achieved record gross margin of 41.1% and maintained adjusted operating margin near 16.0%, while continuing to support our growth initiatives. We remain optimistic about leading market indicators across most of our businesses.”

“We also announced the acquisitions of Amran Instrument Transformers and Narayan Powertech Pvt., Ltd. (“Amran/Narayan Workforce”), leading US and India based manufacturers of low to medium voltage transformers. This acquisition significantly expands our presence in the fast-growing, high-margin electrical grid end market, which will benefit from infrastructure upgrades, capacity expansion and data center demand. We anticipate this acquisition to be immediately accretive to revenue growth, EBITDA margin, operating margin, earnings per share and free cash flow. We are excited about our combined resources potential to accelerate growth in the electrical grid market.”  

“We remain confident about the secular trends in our defined fast growth end markets and for the added potential in the electrical grid market with the acquisition of the Amran/Narayan Group. In fiscal year 2024, our fast growth market sales grew 13% year-on-year to $94 million. In the fiscal first quarter 2025, sales from fast growth markets were relatively flat year-on-year, but we anticipate sequential and year-on-year improvement in the fiscal second quarter.”

“In fiscal year 2025, based on recent order rates and customer interaction, we continue to expect our end markets to stabilize in the second quarter and strengthen in the second half. In the fiscal first quarter, we launched three new products and remain on track to release over a dozen new products in fiscal year 2025.”

“Overall, we remain in a strong position for continued improvements in financial performance as market conditions improve. In terms of our balance sheet, we are confident in our ability to pay down debt and expect to reduce our net leverage ratio below 1.0x within the first 24 months from the closing of the Amran/Narayan Group.”

Outlook

Within the fiscal 2d quarter 2025, on a sequential foundation, the Corporate expects reasonably to seriously upper income, pushed by way of the have an effect on of the new Amran/Narayan Workforce acquisition, extra favorable undertaking timing in Engraving, and making improvements to general call for in Electronics and Area of expertise. On a sequential foundation, the Corporate expects relatively to reasonably upper adjusted working margin, making the most of upper gross sales in part offset by way of larger investments in promoting, advertising, and R&D. The Corporate additionally expects the Amran/Narayan Workforce acquisition to be relatively accretive to adjusted income according to proportion within the fiscal 2d quarter 2025.

First Quarter Section Working Efficiency

Electronics (46% of gross sales; 48% of section working source of revenue)

Earnings reduced roughly $4.0 million or 4.8% year-on-year reflecting an 8.5% have the benefit of fresh acquisitions and a nil.3% have the benefit of foreign exchange, greater than offset by way of an natural fade of 13.7%. The natural fade used to be because of persisted softness usually business finish markets in Europe, along side the consequences of delays and prior overstocking connected to positive immense buyer accounts. Adjusted working source of revenue larger roughly $0.4 million or 2.3% year-on-year because of the contributions from fresh acquisitions, productiveness projects and product combine, in part offset by way of degrade quantity.

Electronics section backlog realizable in beneath one 12 months of roughly $93 million reduced 30% year-on-year. The section had a keep to invoice ratio of 0.96 within the fiscal first quarter, with orders expanding 15% sequentially to roughly $75 million, the easiest orders quarter in over a 12 months.

In fiscal 2d quarter 2025, on a sequential foundation, the Corporate expects considerably upper income, basically pushed by way of the new Amran/Narayan Workforce acquisition and better gross sales into rapid enlargement finish markets, and relatively to reasonably upper adjusted working margin, as the new acquisition and pricing and productiveness projects are in part offset by way of upper investments in promoting, advertising, and R&D.

Engraving (20% of gross sales; 17% of section working source of revenue)

Earnings reduced roughly $7.4 million or 18.2% year-on-year reflecting a 17.5% natural fade, basically because of delays in unutilized platform rollouts in North The us and delays and normal marketplace softness in Europe, and a foreign exchange have an effect on of 0.7%. Working source of revenue reduced roughly $1.8 million or 23.3% year-on-year because of the slower call for in North The us and Europe. Working deleverage used to be in part offset from the belief of in the past introduced productiveness projects and restructuring movements.

In fiscal 2d quarter 2025, on a sequential foundation, the Corporate expects reasonably upper income and relatively upper working margin because of extra favorable undertaking timing in Asia and Europe and productiveness projects.  

Medical (10% of gross sales; 14% of section working source of revenue)

Earnings reduced roughly $0.5 million or 2.7% year-on-year reflecting degrade call for from retail pharmacies, in part offset by way of upper quantity from unutilized gross sales. Working source of revenue reduced roughly $0.2 million or 3.7% year-on-year because the have an effect on of degrade quantity and better freight prices have been in part offset by way of productiveness movements.

In fiscal 2d quarter 2025, on a sequential foundation, the Corporate expects indistinguishable income and relatively degrade working margin because of R&D investments and better freight prices.

Engineering Applied sciences (12% of gross sales; 11% of section working source of revenue)

Earnings larger roughly $2.3 million or 12.7% year-on-year basically pushed by way of extra favorable undertaking timing within the dimension finish marketplace which helped to pressure enlargement in unutilized product building and unutilized packages. Working source of revenue larger roughly $1.0 million or 32.9% year-on-year reflecting leverage on upper gross sales and pricing and productiveness projects.

In fiscal 2d quarter 2025, on a sequential foundation, the Corporate expects indistinguishable to relatively upper income because of unutilized merchandise and unutilized packages and relatively degrade working margin because of product combine.

Area of expertise Answers (12% of gross sales; 10% of section working source of revenue)

Area of expertise Answers income reduced roughly $4.7 million or 18.3% year-on-year, reflecting softness within the normal marketplace statuses within the Show Vending trade and within the Hydraulics trade. Working source of revenue reduced roughly $2.1 million or 36.8% year-on-year because of degrade quantity.

In fiscal 2d quarter 2025, on a sequential foundation, the Corporate expects relatively upper income and working margin.

Capital Allocation

• Percentage Repurchase: Throughout the fiscal first quarter 2025, the Corporate repurchased roughly 24,810 stocks for $4.4 million. There used to be $28.9 million too much at the Corporate’s fresh proportion repurchase authorization on the finish of the fiscal first quarter 2025.
• Capital Expenditures: In fiscal first quarter 2025, Standex’s capital expenditures have been $6.7 million in comparison to $4.3 million within the fiscal first quarter of 2024. The Corporate expects fiscal 12 months 2025 capital expenditures between $35 million and $40 million. Capital expenditures have been $20.3 million in fiscal 2024.
• Dividend: On October 24, 2024, the Corporate declared a quarterly coins dividend of $0.32 according to proportion, an roughly 6.7% year-on-year building up. The dividend is payable November 22, 2024, to shareholders of file on November 8, 2024.

Stability Sheet and Money Stream Highlights

• Web Debt: Standex had internet (coins) debt of ($15.6) million on September 30, 2024, in comparison to $16.4 million on the finish of fiscal first quarter 2024. Web (coins) debt for the primary quarter of 2025 consisted basically of long-term debt of $149.0 million and coins and equivalents of $164.6 million.
• Money Stream: Web coins equipped by way of proceeding working actions for the 3 months ended September 30, 2024, used to be $17.5 million in comparison to $16.4 million within the prior 12 months’s quarter. Isolated coins current then capital expenditures used to be $10.8 million in comparison to sovereign coins current then capital expenditures of $12.1 million within the fiscal first quarter of 2024. 

Convention Name Main points

Standex will host a convention name for buyers these days, October 29, 2024, at 10:00 a.m. ET. At the name, David Dunbar, President, and CEO, and Ademir Sarcevic, CFO, will evaluation the Corporate’s monetary effects and trade and working highlights. Traders desirous about taking note of the webcast and viewing the slide presentation will have to timber directly to the “Investors” category of Standex’s web site beneath the subheading, “Events and Presentations,” positioned at www.standex.com. 

A replay of the webcast can also be to be had at the Corporate’s web site in a while then the belief of the presentation on-line via October 29, 2025. To hear the teleconference playback, please dial within the U.S. (888) 660-6345 or (646) 517-4150 across the world; the passcode is 60631#. The audio playback by means of telephone shall be to be had via November 5, 2024. The webcast replay can also be accessed within the “Investor Relations” category of the Corporate’s web site, positioned at www.standex.com. 

Worth of Non-GAAP Monetary Measures

Along with the monetary measures ready in keeping with normally authorized accounting ideas (“GAAP”), the Corporate makes use of positive non-GAAP monetary measures, together with non-GAAP adjusted source of revenue from operations, non-GAAP adjusted internet source of revenue from proceeding operations, sovereign working coins current, EBITDA (income sooner than pastime, taxes, depreciation and amortization) adjusted EBITDA, adjusted EBITDA to internet debt, and altered income according to proportion. The connected monetary tables reconcile non-GAAP measures worn on this press shed to essentially the most immediately similar GAAP measures. The Corporate believes that the usefulness of non-GAAP measures which come with the have an effect on of restructuring fees, acquire accounting, insurance coverage fixes, discrete tax occasions, acquire or loss on sale of a trade unit, acquisition prices, and litigation prices assistance buyers to acquire a greater working out of our working effects and potentialities, in step with how control measures and forecasts the Corporate’s efficiency, particularly when evaluating such effects to earlier sessions.  An working out of the have an effect on in a selected quarter of particular restructuring prices, acquisition bills, or alternative positive factors and losses, on internet source of revenue (absolute in addition to on a per-share foundation), working source of revenue or EBITDA can provide control and buyers extra perception into core monetary efficiency, particularly when in comparison to quarters during which such pieces had a better or lesser impact, or incorrect impact.  Non-GAAP measures will have to be thought to be along with, and no longer instead for, the corresponding GAAP measures, and might not be similar to in a similar way titled measures reported by way of alternative corporations.

About Standex

Standex World Company is a multi-industry producer in 5 vast trade departments: Electronics, Engraving, Medical, Engineering Applied sciences, and Area of expertise Answers with operations in the USA, Europe, Canada, Japan, Singapore, Mexico, Turkey, Bharat, and China. For extra data, consult with the Corporate’s web site at http://standex.com/.

Ahead-Having a look Statements

Statements contained on this Press Drop that don’t seem to be in line with historic information are “forward-looking statements“ throughout the which means of the Personal Securities Litigation Reform Office of 1995. Ahead-looking statements is also known by way of the usefulness of forward-looking terminology corresponding to “should,” “could,” “may,” “will,” “expect,” “believe,” “estimate,” “anticipate,” “intend,” “continue,“ or indistinguishable phrases or diversifications of the ones phrases or the adverse of the ones phrases. There are lots of components that impact the Corporate‘s trade and the result of its operations and that can purpose the untouched result of operations in past sessions to range materially from the ones lately anticipated or expected. Those components come with, however don’t seem to be restricted to: the have an effect on of pandemics and alternative world crises or awful occasions on staff, our provide chain, and the call for for our services around the globe; materially adversarial or unanticipated felony judgments, fines, consequences or settlements; statuses within the monetary and banking markets, together with fluctuations in change charges and the lack to repatriate international coins; home and world financial statuses, together with the have an effect on, field and level of financial downturns at the shoppers and markets we handover and extra in particular statuses within the automobile, development, aerospace, protection, transportation, meals provider apparatus, client equipment, power, oil and fuel and normal business markets; lower-cost festival; the relative combine of goods which have an effect on margins and working efficiencies in positive of our companies; the have an effect on of upper uncooked subject material and attribute prices, in particular metal, positive fabrics worn in electronics portions, petroleum founded merchandise, and refrigeration parts; the have an effect on of upper transportation and logistics prices, particularly with recognize to transportation of products from Asia; the have an effect on of inflation at the prices of offering our services; an lack of ability to appreciate the anticipated charge financial savings from restructuring actions together with efficient finishing touch of plant consolidations, charge relief efforts together with procurement financial savings and productiveness improvements, capital control enhancements, strategic capital expenditures, and the implementation of incline endeavor production tactics; the potential of losses related to the progress from or divestiture of companies which can be not strategic or not meet our enlargement and go back expectancies; the lack to succeed in the financial savings anticipated from world sourcing of uncooked fabrics and diversification efforts in rising markets; the have an effect on on charge construction and on financial statuses because of untouched and threatened will increase in business price lists; the lack to score anticipated advantages from acquisitions and the lack to successfully consummate and combine such acquisitions and succeed in synergies envisioned by way of the Corporate; larger prices from acquisitions to make stronger and coordinate managerial, operational, monetary, and administrative techniques, together with inside controls over monetary reporting and  compliance with the Sarbanes-Oxley Office of 2002, and alternative prices connected to such techniques in reference to obtained companies; marketplace acceptance of our merchandise; our talent to design, introduce and promote unutilized merchandise and connected product parts; the facility to revamp positive of our merchandise to proceed assembly evolving regulatory necessities; the have an effect on of delays initiated by way of our shoppers; our talent to extend production manufacturing to fulfill call for together with because of exertions shortages; the have an effect on on our operations of any a success cybersecurity assaults; and possible adjustments to past pension investment necessities. For a extra complete dialogue of those and alternative components, see the “Risk Factors” category of the Corporate’s most up-to-date annual file on Method 10-Ok filed with the SEC and to be had at the Corporate’s web site. As well as, any forward-looking statements constitute control’s estimates most effective as of the future made and will have to no longer be relied upon as representing control’s estimates as of any next hour. Pace the Corporate would possibly elect to replace forward-looking statements some time going forward, the Corporate and control in particular abjure any legal responsibility to take action, although control’s estimates alternate.

SOURCE Standex World Company

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