Multi-industry manufacturer Standex International Corp. (SXI:NYSE) today announced financial results for the fourth quarter of fiscal year 2019 ending June 30, 2019.
For Q4/19 Standex reported that that overall sales increased 2.8% to $209.2 million compared to $203.5 million in Q4/18, with net income from continuing operations increasing 16.3% in Q4/19 to $13.1 million versus $11.3 million in Q4/18. The firm reported adjusted EBITDA of $28.3 million in Q4/19, a decrease of 11.7% from the $32.2 million in Q4/18, and adjusted earnings per share of $1.16 for Q4/19 compared to $1.48 in Q4/18.
The firm operates through five major business segments and provided results for each as follows:
Hydraulics segment sales (7% of sales) increased 7.5% year-over-year due to strong OEM demand, particularly in the North American refuse market, as well as new product application offerings for vacuum trucks, sweepers and hydro-excavators. Income from operations gained 38.8% year-over-year due to higher sales and cost structure efficiencies. Food service equipment sales (35% of sales) declined 4.3% reflecting lower sales in refrigeration, pumps and merchandising businesses partially offset by growth in scientific sales led by demand in clinical and drug retail markets. David Dunbar, Standex's president and CEO, commented, "Fourth quarter results were in line with our expectations as performance in Engineering Technologies, Hydraulics and Scientific remained strong. While macro-economic headwinds continued to impact results in Engraving and Electronics, we are effectively managing costs, our restructuring efforts are on plan and we delivered solid free cash flow...Despite challenges in some of our end markets, we continued to make significant progress in the quarter and fiscal year in regard to our strategic priorities and we are well-positioned to further execute on our transformation and long-term goals for growth and profitability...From a growth perspective, our targeted investments are paying off with growth laneways increasing 61% year-over-year in fiscal 2019 to $58 million and the positive repositioning of Engineering Technologies as evidenced by its results. The recent GS Engineering acquisition and successful divestiture of the Cooking Solutions business furthered our portfolio reshaping toward building our higher margin growth businesses into significant platforms. The restructuring plan we began to implement in the third quarter is on track to achieve $3.8 million in annual savings by Q2/20. We have also identified a significant number of additional productivity projects that we plan to implement in FY/20". In a separate release today, the company announced the departure of Thomas DeByle, COO/CFO, who will be leaving the company to pursue a new opportunity. Standex recently announced the promotion of DeByle to COO and named Ademir Sarcevic to replace him as CFO effective September 9, 2019. As previously announced, Sarcevic, who has over two decades of financial management experience in industrial businesses, will be joining Standex from Pentair plc where he has been serving as its SVP and Chief Accounting Officer. It is now apparent that DeByle will be moving to work at diversified industrial company NN Inc. (NNBR:NASDAQ) as that firm today announced the approval of the appointment of Thomas DeByle as the company's SVP and CFO, to be effective on or before September 23, 2019. The NN Inc. statement indicated that DeByle brings over 30 years of public company finance and capital markets experience, a deep background in financial planning and operational management, and extensive knowledge of the diversified industrial manufacturing industry. Standex International was founded in 1955 and is based in Salem, New Hampshire. The company characterizes itself as a multi-industry manufacturer in five broad business segments: Engraving, Electronics, Engineering Technologies, Hydraulics and Food Service Equipment with operations in the United States, Europe, Canada, Japan, Singapore, Mexico, Brazil, Turkey, South Africa, India and China. SXI shares opened today at $68.18 (+$6.56, +10.66%) over the yesterday's close of $61.52. Shares have traded today between $66.07 and $78.79 and are presently trading at $77.79 (+$16.24, +26.77%). Disclosure:
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