Standex(SXI) - 2024 Q4 - Annual Results

Financial Performance - In Q4 FY24, net sales decreased by 4.3% to $180.2 million, with fast growth market sales increasing approximately 13% year-on-year to $27 million[1][2][3] - Net income from continuing operations for Q4 FY24 was $19.7 million, a decrease of 2.5% year-on-year[2][11] - Net income for the year ended June 30, 2024, was $73,074, a decrease of 47.4% compared to $138,992 in 2023[19] - Net sales for the three months ended June 30, 2024, were $180,194, a decrease of 4.0% from $188,327 in the same period of 2023[20] - Income from operations for the three months ended June 30, 2024, was $27,147, a slight decrease of 4.7% compared to $28,476 in 2023[20] - The Electronics segment reported net sales of $80,417, a 0.6% increase from $79,906 in the prior year[20] - The Engraving segment experienced a decline in net sales to $32,749, down 22.5% from $42,445 in the previous year[20] Margins and Earnings - GAAP operating margin for Q4 FY24 was 15.1%, while adjusted operating margin improved to 16.0%, up 60 basis points year-on-year[1][2] - The company reported a GAAP gross margin of 39.1% and an adjusted gross margin of 39.4%, both up 90 basis points year-on-year[1][2] - Basic earnings per share for continuing operations was $1.67 for the three months ended June 30, 2024, compared to $1.71 in 2023[16] - Diluted earnings per share from continuing operations for the three months ended June 30, 2024, was $1.66, a decline of 1.2% from $1.68 in the previous year[22] - Adjusted diluted earnings per share from continuing operations for the three months ended June 30, 2024, was $1.76, unchanged from the prior year[22] - The income from operations margin remained stable at 15.1% for the three months ended June 30, 2024, compared to 15.1% in the same period of 2023[21] - The adjusted income from continuing operations margin improved to 16.0% for the three months ended June 30, 2024, compared to 15.4% in the same period last year[21] Cash Flow and Investments - Free cash flow generation for FY24 was $73 million, with Q4 free cash flow at $22.2 million, representing a 32.3% decline year-on-year[1][2][11] - Total net cash provided by operating activities for continuing operations was $93,346, an increase of 2.4% from $90,768 in the previous year[19] - Net cash used in investing activities was $(61,629), a significant decrease from $41,563 provided in the prior year[19] - Cash and cash equivalents at the end of the period were $154,203, a decrease of 21.2% from $195,706 at the beginning of the year[19] - Expenditures for acquisitions totaled $(48,835), indicating active investment in growth opportunities[19] Assets and Liabilities - Total current assets decreased to $430,095 thousand as of June 30, 2024, from $483,253 thousand a year earlier, reflecting a decline of 11.0%[17] - Total assets as of June 30, 2024, were $1,005,057 thousand, down from $1,024,929 thousand in 2023, representing a decrease of 1.9%[17] - Long-term debt decreased to $148,876 thousand as of June 30, 2024, from $173,441 thousand in the previous year, a reduction of 14.1%[17] - Stockholders' equity increased to $621,503 thousand as of June 30, 2024, compared to $607,449 thousand in 2023, reflecting an increase of 2.3%[17] Future Outlook - The company plans to release over a dozen new products in FY25, expecting these to contribute over 100 basis points of growth[1][4] - Fast growth market sales are projected to exceed $110 million in FY25, with an expected growth rate of over 20% year-on-year[1][4] - Capital expenditures for Q4 FY24 were $6.5 million, with expectations for FY25 capital expenditures between $35 million and $40 million[1][10] Restructuring and Costs - The company reported restructuring costs of $903 thousand for the three months ended June 30, 2024, compared to $3,831 thousand in the same period last year[16] - The company incurred restructuring charges of $903 for the three months ended June 30, 2024, compared to $501 in the same period of 2023[21]