Standex International (SXI) Tops Q4 EPS by 4c, Beats on Revenues
Standex International (NYSE: SXI) reported Q4 EPS of $1.40, $0.04 better than the analyst estimate of $1.36. Revenue for the quarter came in at $217.1 million versus the consensus estimate of $210.05 million.
- Achieves 12% Sales Increase and 4.4% Organic Growth for Q4
- Q4 GAAP Operating Income Increases 46.9% and Non-GAAP Operating Income Grows 16.5%
- Q4 GAAP EPS Up 18.1% while Non-GAAP EPS Increases 6.9%
- Engraving, Engineering Technologies and Electronics Report Organic Sales Growth
“As we enter fiscal 2018, we expect strong momentum to continue in Engraving, Engineering Technologies and Electronics. In Hydraulics, our markets are fundamentally sound and we plan to capitalize on our healthy pipeline of growth opportunities. In Food Service, we are taking organizational structure and plant optimization actions in those businesses that sell standard products to enable them to grow margins and better compete on cost, delivery and quality. In the new fiscal year, we will continue to deploy the Standex Value Creation System to drive shareholder value as we achieve our vision of become an operating company with higher value businesses serving attractive markets that are differentiated and have good growth prospects.”
Fourth-Quarter Fiscal 2017 Results
- Net sales increased 12.0% year over year to $217.1 million with organic sales up 4.4%. Foreign exchange had a negative effect of 0.9%, acquisitions contributed positive 10.7%, and the U.S. Roll, Plate and Machinery (“RPM”) divestiture had a negative effect of 2.2%.
- Income from operations was $20.6 million, compared with $14.0 million in the fourth quarter of fiscal 2016. Net income from continuing operations was $14.1 million, or $1.11 per diluted share, including tax-effected $0.7 million of acquisition-related costs, $2.0 million of restructuring charges, and $1.5 million of purchase accounting expenses offset by a $0.5 million gain from the sale of real estate. This compares with fourth-quarter fiscal 2016 net income from continuing operations of $12.1 million, or $0.94 per diluted share, including tax-effected $4.5 million of charges related to the sale of the RPM business, a $0.1 million loss on the sale of real estate, and $0.6 million of restructuring charges, all offset by $0.3 million of discrete tax benefits and $0.2 million of income related to RPM activity. Excluding the aforementioned items from both periods, non-GAAP net income from continuing operations was $17.9 million, or $1.40 per diluted share, compared with $16.8 million, or $1.31 per diluted share, in the prior-year period.
- Net working capital (defined as accounts receivable plus inventories less accounts payable) was $150.0 million at the end of the fourth quarter of fiscal 2017, compared with $132.3 million a year earlier. Working capital turns were 5.8 in the fourth quarter of fiscal 2017 and 5.9 in the year-earlier quarter.
- The Company closed the quarter with net debt (defined as debt less cash) of $103.4 million, compared with a net cash position of $29.9 million a year ago.
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