Standex International Corporation · NYSE:SXI
Standex International — Q3 2012 Earnings Presentation
26 slides from Standex International's earnings presentation, 2012
Slide 1: 3rd Quarter 2012 Investor Presentation
Food Service Equipment INTERNATIONAL CORPORATION Engraving Engineering Electronics Hydraulics Technologies 3rd Quarter 2012 Investor Presentation 1
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: Overview
Overview Listed on NYSE (Symbol SXI) 3Q 2012 TTM Sales = $627M and Adjusted EBITDA = $73.3M Enterprise Value ≈ $550M as of March 2012 Diversified manufacturing company Strong brands operating in more than a dozen major end-user segments Broad global presence – ongoing expansion into emer
Slide 4: 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 5: Financial Performance Overview
Financial Performance Overview $3.50 Start of Sales and EPS continue to $3.28 $640 Recession Achieved 3Q12 TTM grow $3.16 $3.06 $2.97 $3.00 Major Restructuring $2.71 $2.77 $620 $3.28/share vs. pre- $2.50 $2.40 $2.51 $600 recession TTM $1.74/share $2.15 $580 in Q1 FY 09 $2.00 $560 $1.85 $1.60 $1.
Slide 6: 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 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 Success Stories
Food Service Success Stories Standex benefiting from expansion, retrofit and Standex penetrating retail C-Stores, Dollar stores and menu changes at leading Food Service Chains Supermarkets with “Hot”, “Cold” and “Custom” solutions Standex’s American Food Service providing high profile Standex’s Fede
Slide 9: 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 Customers Brands TTM Q3’12 $ Δ% (‘000s) (yoy) Revenues $90,682 9.1% Operating Income $16,307 19.4% OI Margin 18.0% Countries Industri
Slide 10: Engraving Success Stories
Engraving Success Stories Design & Execution: Asymmetrical grain flow with different grain size around instruments and from IP to center console and from IP to Door Panels .... Design for the OEM, then texture the tooling. Innovent, a five-time Northrup Grumman “Platinum Source Preferred Supplier” a
Slide 11: 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 Customers TTM Q3’12 $ Δ% (‘000s) (yoy) Revenues $75,453 42.5%
Slide 12: Engineering Technologies Group
Engineering Technologies Group Our Spincraft division is providing a “turnkey” solution for Boeing’s Crew Capsule Development Program using our core competencies of forming, heat treating, machining, and our latest innovation - High Speed Pocket Milling. Our UK division, Metal Spinners Group, provid
Slide 13: 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 Brands Industries TTM Q3’12 $ Δ% •Industrial
Slide 14: Electronics Success Stories
Electronics Success Stories Standex supplies sensors to the growing Standex powers the mobile surgical imaging electric vehicle market with the Chevy Volt market with large toroidal transformers Standex sensors help conserve energy Standex protects your cooling system with by regulating dishwasher w
Slide 15: Hydraulics Group
Hydraulics Group Manufacturer of single and double-acting telescopic cylinders and single and double-acting stage piston rod cylinders Performance Customers TTM Q3’12 $ Δ% (‘000s) (yoy) Revenues $28,581 37.1% Operating Income $3,806 83.1% OI Margin 13.3% Applications Industries Brand •Infrastructure
Slide 16: Custom Hoists Success Stories
Custom Hoists Success Stories Skip Loader for Refuse with 6 rod cylinders for new customer Mega Pacific in Australia Dump Body for mining application for Well Interparts in Bangkok, Thailand; hydraulic cylinder plus entire hydraulic system (pump, housing, hoses, clamps) Recent new applications in th
Slide 17: Standex YOY% Revenue Change
Standex YOY% Revenue Change Nine consecutive quarters of sales growth reflect both acquisitions and top-line growth initiatives Standex YOY Revenue Change ($, in thousands) 180,000 15.6% 18% 13.0% 12.2% 160,000 11.2% 13% 8.9% 8.3% 9.0% 140,000 5.9% 8% 4.0% 4.0% 120,000 3% 100,000 -2% -7.5% 80,000 -8
Slide 18: 3Q12 TTM Results
3Q12 TTM Results TTM TTM 3/31/2012 3/31/2011 Delta ($ in millions, except per share data) Sales $ 626.533 $ 559.511 12.0% Operating Income $ 61.603 $ 52.724 16.8% Operating Income Margin 9.83% 9.42% 41 bps Operating Income ex. Special Items $ 59.230 $ 53.169 11.4% Operating Income Margin % ex. Speci
Slide 19: Working Capital & WC Turns
0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 Q4-01 3.5 3.2 Q2-02 3.5 3.3 Q4-02 3.7 3.8 Q2-03 4.2 4.0 Q4-03 4.3 3.5 Q2-04 4.0 4.0 Q4-04 5.4 4.3 Q2-05 5.4 5.0 Q4-05 5.8 NWC 5.0 Q2-06 5.1 5.3 Q4-06 5.4 4.8 Q2-07 4.7 4.9 Q4-07 5.1 5.2 Q2-08 5.1 5.1 Q4-08 5.9 5.3 NWC Turns Q2-09 4.9 5.2 Q4-09
Slide 20: Debt Management
Debt Management Net Debt to Capital at 7.6% as of March 31, 2012 $180,000 45% $160,000 40% $140,000 35% $120,000 30% $100,000 25% $80,000 20% $60,000 15% $40,000 10% $20,000 5% $0 0% Q4 FY 06 Q1 FY 07 Q2 FY 07 Q3 FY 07 Q4 FY 07 Q1 FY 08 Q2 FY 08 Q3 FY 08 Q4 FY 08 Q1 FY 09 Q2 FY 09 Q3 FY 09 Q4 FY 09
Slide 21: Free Cash Flow and Net Debt
Free Cash Flow and Net Debt Continuing Operations Q3 Q3 Free operating cash flow: FY2012 FY2011 Net cash provided by operating activities, as reported $ 14,117 $ 8,160 Less: Capital Expeditures (3,149) (1,556) Free operating cash flow $ 10,968 $ 6,604 Net Income 11,525 5,896 Conversion of free opera
Slide 22: ADP Divestiture
ADP Divestiture Taking the next step in our Focused Diversity strategy Rationale for divestiture: • ADP is not aligned with our commitment to value-added, technically-driven businesses that provide superior returns • Current and near term expected financial performance of ADP is dilutive to overal
Slide 23: 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 acquisition and integration process led through the use of internal r
Slide 24: 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 “Steambox” combi oven in North America and the UK Fills critical product gap
Slide 25: 2011 Acquisitions
2011 Acquisitions Food Service Equipment Group Acquired Tri-Star range and auxiliary equipment ($5M annual sales) to expand primary cooking equipment category Fills critical product gap New product line is multi-branded at 3 feature/benefit price points and sold through 3 different sales chann
Slide 26: Looking Forward
Looking Forward Continuing to execute on Focused Diversity strategy Uncertain macro-economic environment, but better prepared for potential downturn than ever before Divestiture of ADP allows us to focus resources on strategic opportunities Operational objectives for remainder of fiscal 2012:
Standex International — Q3 2012 Earnings Presentation on 6ix