Standex International Corporation · NYSE:SXI
Standex International — Roth 24th Annual OC Growth Stock Conference (March 2012)
17 slides from Standex International's conference presentation, Mar 12, 2012
Slide 1: Roth 24th Annual OC Growth Stock Conference
Electronics INTERNATIONAL CORPORATION Hydraulics Food Service Engraving Engineering Equipment Technologies Air Distribution Roth 24th Annual OC Growth Stock Conference March 12, 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: Overview
Overview Listed on NYSE (Symbol SXI) 2Q 2012 TTM Sales = $610M and Adjusted EBITDA = $71.2M Enterprise Value ≈ $500M as of February 2012 Diversified manufacturing company Strong brands operating in more than a dozen major end-user segments Broad global presence – ongoing expansion into e
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 Recession New Cost Structure and Moderate Recovery $3.16 $640 Achieved 2Q12 TTM $3.00 $2.97 $3.06 $620 $3.16/share vs. pre- Major Restructuring $2.71 $2.77 $600 recession TTM $1.74/share in Q1 FY 09 $2.51 $2.50 $2.40 $580 $2.15 $2.00 $1.74 $1.85 $560
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: Engraving Group
Engraving Group The technological leader with a global presence in mold texturizing, roll and plate engraving, process machinery, and nickel shell tooling Customers Brands Industries Automotive Tissue & Towels White Goods Packaging Toys Hygiene Electronics Aircraft Household Filtration Building Mate
Slide 9: 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 Customers Industries Brands •Energy •Aerospace •Aviation •Defense •Marine
Slide 10: 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 Customers Brands Industries •Industrial •Medical •Militar
Slide 11: Hydraulics
Hydraulics Manufacturer of single and double-acting telescopic cylinders and single and double-acting stage piston rod cylinders Customers Brand Industries •Infrastructure Construction Applications •Oil & Gas •Mining •Refuse Compactors Manufacturing •United States •China Dump Trailers Lift Vehicles
Slide 12: Standex YOY% Revenue Change
Standex YOY% Revenue Change Eight 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% 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 -8.8% -
Slide 13: 2Q12 TTM Results
2Q12 TTM Results TTM TTM 12/31/2011 12/31/2010 Delta ($ in millions, except per share data) Sales $ 610.189 $ 549.268 11.1% Operating Income $ 54.189 $ 53.149 2.0% Operating Income Margin 8.88% 9.68% -80 bps Operating Income ex. Special Items $ 57.408 $ 53.003 8.3% Operating Income Margin % ex. Spec
Slide 14: 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 15: 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 16: 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 17: 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 will allow us to focus resources on strategic opportunities Operational objectives for remainder of fiscal 20
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