Standex International Corporation · NYSE:SXI
Standex International — Investor Presentation (September 2012)
31 slides from Standex International's investor presentation, September 2012
Slide 1: Investor Presentation
Food Service Equipment INTERNATIONAL CORPORATION Engineering Engraving Electronics Hydraulics Technologies Investor Presentation i September 2012
Slide 2: Safe Harbor Statement
Safe Harbor Statement Statements in this presentation include, or may be based upon, management's current expectations, estimates and/or projections about Standex's markets and industries. These statements are forward- looking statements within the meaning of The Private Securities Litigation Reform
Slide 3: Investment Highlights
Investment Highlights Strong brands which have leadership positions in their respective markets Proven ability to successfully integrate acquisitions Strong balance sheet Consistent cash flow and disciplined working capital management Dividend-paying company since going public in 1964 Ex
Slide 4: Company Overview
Company Overview Listed on NYSE (Symbol SXI) FY 2012 Sales = $634M and Adjusted EBITDA = $76.0M Enterprise Value ≈ $570M as of August 2012 Diversified manufacturing company Strong brands operating in more than a dozen major end-user segments Broad global presence – ongoing expansion into
Slide 5: Standex “Focused Diversity” Strategy
Standex “Focused Diversity” Strategy Focused Diversity Create fewer, larger and more profitable business units Investment and growth plans focused on building selected strategic business units Top-line growth through organic growth initiatives and acquisitions Enhance global footprint of bus
Slide 6: Company Evolution
Company Evolution Cost structure in place, organic and acquisition initiatives working = EPS Expansion $4.00 $800,000 9%* $640 $60,000 $694,640 $700,000 23%* $3.50 $3.39 $637,049 $634,640 $620 $148 211 $148,211 $600,000 $2.97 34%* $3.00 $600 Recession and Major $500,000 $215,157 Restructuring $2.41
Slide 7: Food Service Equipment Group
Food Service Equipment Group A full-line provider of equipment including walk-in coolers, freezers, reach-in refrigerators/freezers, countertop cooking equipment, ovens, ranges, heated holding cabinets, rotisseries, fryers, merchandising display cases, custom millwork, and beverage handling equipmen
Slide 8: Food Service Customers
Food Service Customers QSR – Fine & Casual Dining Convenience Drugstore, Retail & Institutional Caterers, Stores Dollar Store Schools & Stadiums Beverage Scientific 8
Slide 9: FSEG Products
FSEG Products Hot Cold Specialty Ranges Rotisseries Reach-in Walk-in Refrigerator/Freezer Refrigeration/Freezer Hot/Cold Beverage Pump Display Cases Steam tables Fryers Remote Reach-in Rack Refrigeration Refrigerator/Freezer Countertop Cooking Equipment Under-counter Beverage Dispensing Refrigerator
Slide 10: Engraving Group
Engraving Group The technological leader with a global presence in mold texturizing, roll and plate engraving, process machinery, and nickel shell tooling Performance Sales History FY 12 6/30/12 Δ% $ ('000s) YOY Revenues $ 93,611 9.8% Operating Income $ 17,896 26.2% OI Margin 19.1% Sales by Category
Slide 11: Engraving Customers
Engraving Customers Automotive Fashion & Apparel Household & Electronics Building Materials Heavy Truck Packaging Toys Tissue & Towels Medical Aviation White Goods 11
Slide 12: Engraving Service and Applications
Engraving Service and Applications Molds Rolls Press Plates Machinery Instrument Panels & Fashion Designs Flooring Patterns Continuous Length Plastic Parts Patterns 12
Slide 13: Engineering Technologies Group
Engineering Technologies Group Provides world-class precision manufacturing capabilities including metal spinning, heat treating, machining, press forming, and other fabrication services for virtually all workable metal alloys Performance Sales History FY 12 6/30/12 Δ% $ ('000s) YOY Revenues $ 74,08
Slide 14: Engineering Technologies Customers
Engineering Technologies Customers Energy Aerospace Aviation Defense Healthcare Oil & Gas Marine 14
Slide 15: Engineering Technologies Components and Applications
Engineering Technologies Components and Applications 15
Slide 16: Electronics
Electronics Producer of electronic components and assemblies, including magnetics, reed switches, and sensors with a unique-to-the-market tiered manufacturing model combining stateside engineering capabilities with low-cost foreign production Performance Sales History FY 12 6/30/12 Δ% $ ('000s) YOY
Slide 17: Electronics Customers
Electronics Customers Industrial Mil-Aero Automotive & Housing, Security & Heavy Truck Telecommunications M di l Medical 17
Slide 18: Electronics Components and Applications
Electronics Components and Applications SPACE INDUSTRIAL MEDICAL MILITARY METERING PLANAR CURRENT SENSE ROGOWSKI MIL-AERO TRANSFORMERS TRANSFORMERS TRANSFORMERS COILS/MODULES MAGNETICS AND INDUCTORS SECURITY TESTING AUTOMOTIVE HOUSEHOLD HYDRAULICS FLUID LEVEL PROXIMITY OTHER SENSING REED SWITCHES RE
Slide 19: Hydraulics Group
Hydraulics Group Manufacturer of single and double-acting telescopic cylinders and single and double-acting stage piston rod cylinders Performance Sales History FY 12 6/30/12 Δ% $ ('000s) YOY Revenues $ 29,922 30.5% Operating Income $ 4,403 80.7% OI Margin 14.7% Sales by Category Brand 19
Slide 20: Hydraulics Customers
Hydraulics Customers Refuse Construction & Infrastructure Aftermarket Export Mining , Oil & Gas 20
Slide 21: Custom Hoists Products and Applications
Custom Hoists Products and Applications 21
Slide 22: YOY% Revenue Change
YOY% Revenue Change Ten consecutive quarters of sales growth reflect both acquisitions q and top-line p growth initiatives g ($, in thousands) 22
Slide 23: Full Year Results
Full Year Results Full Year Full Year ($ in thousands, except per share data) FY 2012 FY 2011 Delta Sales $ 634.640 $ 581.369 9.2% Operating Income $ 64.580 $ 55.256 16.9% Operating Income Margin 10.18% 9.50% 67 bps Operating Income excl Special Items $ 61.951 $ 55.586 11.5% Operating Income Margin
Slide 24: Full Year Bridge
Full Year Bridge Proforma net income and EPS at +14% improvement YOY ($ in thousands,, except p per p share data)) YTD EPS YTD YTD Comparison FY 12 FY 11 % Change FY 12 FY 11 % Change Net Income Continuing Operations $ 46,907 $ 38,026 23.4% $ 3.67 $ 2.98 23.2% Add: Restructuring (Tax Affected) $ 1,1
Slide 25: Net Working Capital
Net Working Capital 6/30/2012 Net Receivables $ 99,432 350,000 7.0 Days Sales Outstanding 52 6.3 6.2 5.9 5.9 5.8 5.8 300,000 6.0 5..4 5.4 4 Inventories 72,955 5.1 250,000 5.0 Turns 6.0 4.3 3.7 200,000 4.0 3.5 Accounts Payable (61,992) 150,000 3.0 Days Payable Outstanding 45 100,000 2.0 Net Working C
Slide 26: Debt Management
Debt Management 6/30/2012 $180,000 Short Term Debt $ - $160,000 55% Long Term Debt 50,000 $140,000 45% Funded Debt 50,000 $120 000 $120,000 35% Less: Cash (54,749) $100,000 $80,000 Net Debt $ (4,749) 25% $60,000 $40,000 15% Shareholder's Equity $ 242,907 $20,000 5% $0 ($20,000) Q4 01 Q4 02 Q4 03 Q4
Slide 27: SXI Free Cash Flow
SXI Free Cash Flow FCF Per Share $5.00 $4.50 $4.31 $4.00 $3 50 $3.50 $3.40 $3.00 $2.84 $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 FY 2010* FY 2011 FY 2012* FCF Per Share *Adjusted for Voluntary Pension Contributions Continuing Operations Q4 Q4 Free operating cash flow: FY2012 FY2011 FY2012 FY2011 Net cash
Slide 28: Acquisitions
Acquisitions Acquisition Strategy Execute bolt-on acquisitions that will accelerate profitable growth of strategic platforms via sales and/or cost synergies Emphasis on strong strategic fit to existing businesses Disciplined p acquisition q and integration g p process led through g the use of
Slide 29: Acquisition of Meder Electronics
Acquisition of Meder Electronics Meder will become part of Electronics reporting segment integrated with Standex Electronics Meder CY2011 financial performance Sales €46M EBITDA > 13% Combined business proforma financials Sales ≈ $104M EBITDA≈ $17M Anticipated accretion FY13 $.08-$
Slide 30: Giorik Partnership
Giorik Partnership Giorik is an Italian “hot side” food service equipment company with a full line of products being sold into the European market with annual sales of $17M SXI to be exclusive distributor of Giorik’s Giorik s “Steambox” Steambox combi oven in North America and the UK Fills cri
Slide 31: Summary
Summary Success in FY12 is the result of organic and acquisitive growth initiatives and focus on operational excellence Exited FY12 in a net cash position for the first time in company history Will continue to drive organic growth initiatives and cost reduction efforts Balance sheet is extre
Standex International — Investor Presentation (September 2012) on 6ix