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 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 d ...

Standex International Corporation (NYSE:SXI) Q2 2021 Earnings Conference Call February 5, 2021 8:30 AM ET Company Participants David Dunbar - Chairman, President and CEO Ademir Sarcevic - CFO and Treasurer Gary Farber - Affinity Growth Advisors, IR Conference Call Participants Chris Howe - Barrington Research Chris McGinnis - Sidoti & Company Chris Moore - CJS Securities Operator Good morning, and welcome to the Standex Second Quarter 2021 Financial Results Conference Call. All participants will be in liste ...

Fiscal Second Quarter 2021 Conference Call Presentation February 5, 2021 NYSE Safe Harbor Statement Statements contained in this Presentation that are not based on historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of forward-looking terminology such as "should," "could," "may," "will," "expect," "believe," "estimate," "anticipate," "intend," "continue," or similar terms or vari ...

Financial Data and Key Metrics Changes - Consolidated revenue increased by 8.5% sequentially, exceeding previous expectations of flat to slightly above the fourth quarter of fiscal 2020 [4] - Adjusted operating margin was 11%, compared to 11.3% a year ago, with gross margin decreasing by 20 basis points year on year [15] - Free cash flow generated was $4.4 million, an increase from $2.8 million in the first quarter of the previous year [15] Business Line Data and Key Metrics Changes - **Electronics Segment**: Revenue increased by 23% sequentially and 18.6% year on year, with operating margin rising by 800 basis points to 16.1% due to cost efficiency initiatives [5][9] - **Engraving Segment**: Revenue decreased by 5.3% year on year but increased by 15.1% sequentially, with operating income improving significantly due to increased customer activity [10] - **Scientific Segment**: Revenue increased by approximately 13% year on year, driven by demand for vaccine storage solutions [11] - **Engineering Technology Segment**: Revenue decreased by 28.4% year on year, reflecting the impact of COVID-19 on the commercial aviation market [12] - **Specialty Solutions Segment**: Revenue decreased by 19.7% year on year, primarily due to the economic impact of COVID-19 on food service and hospitality industries [13] Market Data and Key Metrics Changes - The electronics segment's new business opportunity pipeline is valued at $56 million, expected to deliver $11 million in incremental sales across various end markets [9] - The scientific segment anticipates $10 to $20 million in incremental sales related to COVID-19 vaccine storage [11] Company Strategy and Development Direction - The company is focused on building higher-margin segments, having divested the Refrigerated Solutions business and established scientific as a standalone reporting segment [6] - Cost-saving initiatives are expected to deliver over $7 million in savings for fiscal 2021, with tax-related actions anticipated to result in cash savings of $2 million to $3 million [6][17] - The company is actively pursuing M&A opportunities, with a strong balance sheet and ongoing relationships with potential targets [56] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued growth and margin improvement throughout fiscal 2021, with expectations for consolidated revenue to be flat to slightly above the first quarter [19] - The company is well-positioned to capitalize on opportunities related to COVID-19 vaccine storage and has a healthy funnel of new business opportunities in electronics [19] Other Important Information - The company repatriated approximately $8 million in the first quarter and expects to repatriate a total of $35 million in fiscal 2021 [7][17] - The tax rate for fiscal 2021 is expected to be approximately 22%, significantly lower than the previous year [15][29] Q&A Session Summary Question: Engraving segment margin recovery - Management noted that the engraving margins rebounded due to improved operating disciplines and increased volume as tools were released from tool shops [21] Question: Electronics segment improvement and Renco integration - Management highlighted successful integration with Renco, noting cultural fit and early cross-selling opportunities exceeding expectations [22][24] Question: Cost savings cadence - Management indicated that most of the expected $7 million in cost savings would be realized in the first three quarters of fiscal 2021 [25][27] Question: Tax rate expectations - Management believes the tax rate may increase slightly to around 23% but will remain significantly lower than the previous fiscal year [28][29] Question: Scientific segment margin outlook - Management expects operating margins in the low 20s for the scientific segment, with investments supporting growth while maintaining margin levels [34] Question: Overall business trends and monthly performance - Management reported steady customer activity and backlog, indicating a positive outlook for sequential growth [44]