Standex Earnings 2020-03-31

Balance Sheet	Income Statement	Cash Flow
Assets, Equity	Rev, G Profit, Net Income	Ops, Inv, Fin

sxi20191231_10q.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2020

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 1-7233

STANDEX INTERNATIONAL CORPORATION

(Exact name of registrant as specified in its charter)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Delaware	31-0596149
(State of incorporation)	(IRS Employer Identification No.)

11 KEEWAYDIN DRIVE, Salem, New Hampshire	03079
(Address of principal executive offices)	(Zip Code)

(603) 893-9701

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, Par Value $1.50 Per Share	SXI	New York Stock Exchange

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☒			Accelerated filer ☐
Non-accelerated filer ☐			Smaller reporting company ☐
			Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES ☐ NO ☒

The number of shares of Registrant's Common Stock outstanding on May 6, 2020 was 12,409,429.

STANDEX INTERNATIONAL CORPORATION

INDEX

		Page No.
PART I. FINANCIAL INFORMATION:

Item 1.

	Condensed Consolidated Balance Sheets as of March 31, 2020 (unaudited) and June 30, 2019	3

	Condensed Consolidated Statements of Operations for the three and nine months ended March 31, 2020 and 2019 (unaudited)	4

	Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended March 31, 2020 and 2019 (unaudited)	5

	Condensed Consolidated Statement of Stockholders’ Equity for the three and nine months ended March 31, 2020 and 2019 (unaudited)	6

	Condensed Consolidated Statements of Cash Flows for the nine months ended March 31, 2020 and 2019 (unaudited)	8

	Notes to Unaudited Condensed Consolidated Financial Statements	9

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	29

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	40

Item 4.	Controls and Procedures	41

PART II. OTHER INFORMATION:

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	41

Item 6.	Exhibits	42

PART I. FINANCIAL INFORMATION

ITEM 1

STANDEX INTERNATIONAL CORPORATION

Condensed Consolidated Balance Sheets

(In thousands, except per share data)	*March 31, 2020 (unaudited)*			*June 30, 2019*
ASSETS
Current Assets:
Cash and cash equivalents	$	109,297		$	93,145
Accounts receivable, net of reserve for doubtful accounts of $1,729 and $1,250 at March 31, 2020 and June 30, 2019		101,331			103,374
Inventories		85,274			76,302
Prepaid expenses and other current assets		21,829			21,820
Income taxes receivable		5,232			1,622
Current assets-Discontinued Operations		37,518			37,610
Total current assets		360,481			333,873
Property, plant, and equipment, net		134,171			134,239
Intangible assets, net		109,264			118,660
Goodwill		270,044			273,843
Deferred tax asset		10,876			14,140
Operating lease right-of-use asset		40,901			-
Other non-current assets		26,306			25,105
Long-term assets-Discontinued Operations		4,879			22,029
Total non-current assets		596,441			588,016
Total assets	$	956,922		$	921,889

LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable	$	54,188		$	54,201
Accrued liabilities		55,729			50,176
Income taxes payable		524			5,735
Current liabilities-Discontinued Operations		26,362			31,503
Total current liabilities		136,803			141,615
Long-term debt		212,065			197,610
Operating lease long-term liabilities		32,084			-
Accrued pension and other non-current liabilities		106,446			116,128
Non-current liabilities-Discontinued Operations		2,720			2,223
Total non-current liabilities		353,315			315,961
Stockholders' equity:
Common stock, par value $1.50 per share, 60,000,000 shares authorized, 27,984,278 issued, 12,263,025 and 12,334,607 outstanding at March 31, 2020 and June 30, 2019		41,976			41,976
Additional paid-in capital		70,910			65,515
Retained earnings		828,556			818,282
Accumulated other comprehensive loss		(142,916	)		(137,278	)
Treasury shares: 15,721,253 shares at March 31, 2020 and 15,649,671 shares at June 30, 2019		(331,722	)		(324,182	)
Total stockholders' equity		466,804			464,313
Total liabilities and stockholders' equity	$	956,922		$	921,889

STANDEX INTERNATIONAL CORPORATION

Unaudited Condensed Consolidated Statements of Operations

	*Three Months Ended*						*Nine Months Ended*
	*March 31,*						*March 31,*
(In thousands, except per share data)	*2020*			*2019*			*2020*			*2019*
Net sales	$	155,474		$	160,455		$	465,150		$	471,189
Cost of sales		102,959			105,340			296,613			296,722
Gross profit		52,515			55,115			168,537			174,467
Selling, general, and administrative expenses		34,893			36,913			113,697			111,237
Acquisition related costs		120			805			1,650			2,352
Restructuring costs		593			549			2,792			826
Total operating expenses		35,606			38,267			118,139			114,415
Income from operations		16,909			16,848			50,398			60,052
Interest expense		(1,774	)		(3,230	)		(5,820	)		(8,598	)
Other non-operating expenses, net		238			(679	)		566			(1,694	)
Income from continuing operations before income taxes		15,373			12,939			45,144			49,760
Provision for income taxes		3,321			4,284			10,229			14,086
Net income (loss) from continuing operations		12,052			8,655			34,915			35,674
Net income (loss) from discontinued operations		(18,375	)		17,614			(16,562	)		19,847
Net income (loss)	$	(6,323	)	$	26,269		$	18,353		$	55,521

Basic earnings per share:
Continuing operations	$	0.98		$	0.69		$	2.83		$	2.83
Discontinued operations		(1.49	)		1.41			(1.34	)		1.57
Total	$	(0.51	)	$	2.10		$	1.49		$	4.40
Diluted earnings per share:
Continuing operations	$	0.97		$	0.69		$	2.81		$	2.81
Discontinued operations		(1.48	)		1.40			(1.33	)		1.57
Total	$	(0.51	)	$	2.09		$	1.48		$	4.38

Cash dividends per share	$	0.22		$	0.20		$	0.64		$	0.58

See notes to unaudited condensed consolidated financial statements

STANDEX INTERNATIONAL CORPORATION

Unaudited Condensed Consolidated Statements of Comprehensive Income

	*Three Months Ended*						*Nine Months Ended*
	*March 31,*						*March 31,*
(In thousands)	*2020*			*2019*			*2020*			*2019*
Net income (loss)	$	(6,323	)	$	26,269		$	18,353		$	55,521
Other comprehensive income (loss):
Defined benefit pension plans:
Actuarial gains (losses) and other changes in unrecognized costs	$	278		$	(30	)	$	273		$	250
Amortization of unrecognized costs		1,441			1,116			4,315			3,347
Derivative instruments:
Change in unrealized (losses)		(1,595	)		1,449			(1,832	)		(2,226	)
Amortization of unrealized gains and into interest expense		(2,110	)		(506	)		(2,129	)		1,767
Foreign currency translation gains (losses)		(4,691	)		410			(5,860	)		(5,252	)
Other comprehensive income (loss) before tax	$	(6,677	)	$	2,439		$	(5,233	)	$	(2,114	)

Income tax provision (benefit):
Defined benefit pension plans:
Actuarial gains (losses) and other changes in unrecognized costs	$	(50	)	$	1		$	(28	)	$	(25	)
Amortization of unrecognized costs		(348	)		(273	)		(1,041	)		(818	)
Derivative instruments:
Change in unrealized gains and (losses)		588			172			697			338
Amortization of unrealized gains and (losses) into interest expense		(25	)		21			(33	)		61
Income tax provision (benefit) to other comprehensive income (loss)	$	165		$	(79	)	$	(405	)	$	(444	)

Other comprehensive income (loss), net of tax		(6,512	)		2,360			(5,638	)		(2,558	)
Comprehensive income (loss)	$	(12,835	)	$	28,629		$	12,715		$	52,963

See notes to unaudited condensed consolidated financial statements

Consolidated Statements of Stockholders' Equity

Standex International Corporation and Subsidiaries

									*Accumulated Other*
			*Additional*						*Comprehensive*									*Total*
For the Nine month period ended March 31, 2020	*Common*		*Paid-in*			*Retained*			*Income*			*Treasury Stock*						*Stockholders’*
(in thousands, except as specified)	*Stock*		*Capital*			*Earnings*			*(Loss)*			*Shares*			*Amount*			*Equity*
Balance, June 30, 2019	$	41,976	$	65,515		$	818,282		$	(137,278	)		15,650		$	(324,182	)	$	464,313
Stock issued for employee stock option and purchase plans, including related income tax benefit and other		-		110			-			-			(71	)		1,468			1,578
Stock-based compensation		-		5,285			-			-			-			-			5,285
Treasury stock acquired		-		-			-			-			142			(9,008	)		(9,008	)
Adoption of ASC 606		-		-			(55	)		-			-			-			(55	)
Comprehensive income:		-		-			-			-			-			-			-
Net Income		-		-			18,353			-			-			-			18,353
Foreign currency translation adjustment		-		-			-			(5,860	)		-			-			(5,860	)
Pension and OPEB adjustments, net of tax of $1.1 million		-		-			-			3,519			-			-			3,519
Change in fair value of derivatives, net of tax of $0.7 million		-		-			-			(3,297	)		-			-			(3,297	)
Dividends declared ($0.64 per share)		-		-			(8,024	)		-			-			-			(8,024	)
Balance, March 31, 2020	$	41,976	$	70,910		$	828,556		$	(142,916	)		15,721		$	(331,722	)	$	466,804

For the Nine month period ended March 31, 2019
(in thousands, except as specified)
Balance, June 30, 2018	$	41,976	$	61,328		$	761,430		$	(121,859	)		15,279		$	(292,080	)	$	450,795
Stock issued for employee stock option and purchase plans, including related income tax benefit and other		-		(234	)		-			-			(62	)		1,186			952
Stock-based compensation		-		2,680			-			-			-			-			2,680
Treasury stock acquired		-		-			-			-			236			(19,239	)		(19,239	)
Adoption of ASC 606		-		-			(1,106	)		-			-			-			(1,106	)
Comprehensive income:																			-
Net Income		-		-			55,521			-			-			-			55,521
Foreign currency translation adjustment		-		-			-			(5,252	)		-			-			(5,252	)
Pension and OPEB adjustments, net of tax of $0.8 million		-		-			-			2,754			-			-			2,754
Change in fair value of derivatives, net of tax of $0.4 million		-		-			-			(60	)		-			-			(60	)
Dividends declared ($0.58 per share)		-		-			(7,428	)		-			-			-			(7,428	)
Balance, March 31, 2019	$	41,976	$	63,774		$	808,417		$	(124,417	)		15,453		$	(310,133	)	$	479,617

Consolidated Statements of Stockholders' Equity

Standex International Corporation and Subsidiaries

								*Accumulated Other*
			*Additional*					*Comprehensive*									*Total*
For the Three month period ended March 31, 2020	*Common*		*Paid-in*		*Retained*			*Income*			*Treasury Stock*						*Stockholders’*
(in thousands, except as specified)	*Stock*		*Capital*		*Earnings*			*(Loss)*			*Shares*			*Amount*			*Equity*
Balance, December 31, 2019	$	41,976	$	70,206	$	837,698		$	(136,404	)		15,602		$	(323,872	)	$	489,604
Stock issued for employee stock option and purchase plans, including related income tax benefit and other		-		238		-			-			(10	)		212			450
Stock-based compensation		-		466		-			-			-			-			466
Treasury stock acquired		-		-		-			-			129			(8,062	)		(8,062	)
Adoption of ASC 606		-		-		(55	)		-			-			-			(55	)
Comprehensive income:		-		-		-			-			-			-			-
Net Income		-		-		(6,323	)		-			-			-			(6,323	)
Foreign currency translation adjustment		-		-		-			(4,691	)		-			-			(4,691	)
Pension and OPEB adjustments, net of tax of $0.4 million		-		-		-			1,321			-			-			1,321
Change in fair value of derivatives, net of tax of $0.6 million		-		-		-			(3,142	)		-			-			(3,142	)
Dividends declared ($0.22 per share)		-		-		(2,764	)		-			-			-			(2,764	)
Balance, March 31, 2020	$	41,976	$	70,910	$	828,556		$	(142,916	)		15,721		$	(331,722	)	$	466,804

For the Three month period ended March 31, 2019
(in thousands, except as specified)
Balance, December 31, 2018	$	41,976	$	63,024	$	784,687		$	(126,777	)		15,454		$	(310,084	)	$	452,826
Stock issued for employee stock option and purchase plans, including related income tax benefit and other		-		99		-			-			(2	)		55			154
Stock-based compensation		-		651		-			-			-			-			651
Treasury stock acquired		-		-		-			-			1			(104	)		(104	)
Comprehensive income:																		-
Net Income		-		-		26,269			-			-			-			26,269
Foreign currency translation adjustment		-		-		-			410			-			-			410
Pension and OPEB adjustments, net of tax of $0.3 million		-		-		-			813		&

Price	73.84	EPS	5
Shares	12	P/E	14
MCap	916	P/FCF	15
Net Debt	100	EBIT	93
TEV	1,016	TEV/EBIT	11
TTM 2019-09-30, in MM, except price, ratios

10-Q	2020-03-31	Filed 2020-05-08
10-Q	2019-12-31	Filed 2020-02-04
10-Q	2019-09-30	Filed 2019-11-06
10-K	2019-06-30	Filed 2019-08-27
10-Q	2019-04-29	Filed 2019-04-30
10-Q	2018-12-31	Filed 2019-01-31
10-Q	2018-09-30	Filed 2018-10-29
10-K	2018-06-30	Filed 2018-08-28
10-Q	2018-03-31	Filed 2018-05-01
10-Q	2017-12-31	Filed 2018-01-30
10-Q	2017-09-30	Filed 2017-11-01
10-K	2017-06-30	Filed 2017-08-28
10-Q	2017-03-31	Filed 2017-05-02
10-Q	2016-12-31	Filed 2017-02-03
10-Q	2016-09-30	Filed 2016-10-28
10-K	2016-06-30	Filed 2016-08-25
10-Q	2016-03-31	Filed 2016-05-03
10-Q	2015-12-31	Filed 2016-02-02
10-Q	2015-09-30	Filed 2015-10-29
10-K	2015-06-30	Filed 2015-08-27
10-Q	2015-03-31	Filed 2015-05-01
10-Q	2014-12-31	Filed 2015-02-03
10-Q	2014-09-30	Filed 2014-10-31
10-K	2014-06-30	Filed 2014-08-28
10-Q	2014-03-31	Filed 2014-05-02
10-Q	2013-09-30	Filed 2013-11-07
10-Q	2013-06-30	Filed 2014-02-03
10-K	2013-06-30	Filed 2013-08-27
10-Q	2013-03-31	Filed 2013-05-06
10-Q	2012-12-31	Filed 2013-02-01
10-Q	2012-09-30	Filed 2012-11-01
10-K	2012-06-30	Filed 2012-08-28
10-Q	2012-03-31	Filed 2012-05-02
10-Q	2011-12-31	Filed 2012-02-13
10-Q	2011-09-30	Filed 2011-10-27
10-K	2011-06-30	Filed 2011-09-08
10-Q	2011-03-31	Filed 2011-04-29
10-Q	2010-12-31	Filed 2011-01-28
10-Q	2010-09-30	Filed 2010-10-28
10-K	2010-06-30	Filed 2010-08-27
10-Q	2010-03-31	Filed 2010-04-29
10-Q	2009-12-31	Filed 2010-01-28

8-K	2020-07-15	Other Events, Exhibits
8-K	2020-05-07
8-K	2020-04-01
8-K	2020-03-12
8-K	2020-02-03
8-K	2019-12-02
8-K	2019-10-22
8-K	2019-08-26
8-K	2019-08-23
8-K	2019-08-08
8-K	2019-04-01
8-K	2019-03-31
8-K	2019-01-30
8-K	2019-01-16
8-K	2018-12-21
8-K	2018-10-23
8-K	2018-10-05
8-K	2018-09-30
8-K	2018-09-28
8-K	2018-06-30
8-K	2018-05-01
8-K	2017-12-31

EX-31.1	ex_179514.htm
EX-31.2	ex_179515.htm
EX-32	ex_179516.htm

SXI 10Q Quarterly Report

Standex Earnings 2020-03-31