|Standex Reports Fourth Quarter Earnings|
SALEM, N.H.--(BUSINESS WIRE)--Aug. 17, 2000--Standex International Corporation (NYSE: SXI) reported today, for the fourth quarter ended June 30, 2000, a net income of 33 cents per share (diluted). These earnings were after taking an after tax 35 cents per share restructuring charge in the fourth quarter. Before restructuring, the Company's earnings were 68 cents per share, which compares to 55 cents per share in the prior year. Fourth quarter net sales were $158.0 million and net income was $4.1 million, compared to net sales of $160.6 million and net income of $7.4 million in the prior year.
For the full year ended June 30, 2000, net sales totaled $637.0 million compared to $641.4 million for the prior year. Taking into account approximately $10.8 million of prior year's sales of product lines that were disposed of during fiscal year 1999, sales for the current year increased approximately 1 percent. Net income for the current year, after the 35 cents per share or $4.4 million, after tax impact of restructuring, was $2.17 per share on a diluted basis, or $27.7 million. These earnings include an unusual gain of $1.7 million after tax or 13 cents per share, resulting from the receipt of marketable stock of an insurance company, in which Standex owned life policies, that "demutualized." Before the unusual gain and restructuring, net income was $30.4 million or $2.39 on a diluted basis, which compares to $30.8 million or $2.36 per share in the prior year.
Edward J. Trainor, President and CEO of Standex said, "While we are somewhat disappointed that our full year results did not meet our full expectations, we are very pleased with our fourth quarter results. Food Service showed some early signs of recovering from the impacts of supermarket consolidations and delays in healthcare projects but continued to experience a significant shortfall in earnings. The Consumer segment reported a solid annual earnings performance, despite relatively flat quarterly results. The Industrial segment reported exceptional performances across most of its business units. The quarter benefited from a sales price adjustment on certain products that were shipped in the third quarter. This combination in performances resulted in a near record level of corporate-wide operating earnings, before taking into account restructuring. The gains in our Industrial segment were largely the result of our continued emphasis on operational improvement and technology development.
Our backlogs continue to remain strong in most business segments. Assuming the economy remains stable, a modest rebound in the Food Service group, combined with continued strong performance for our Consumer and Industrial segments, provide a promising outlook for fiscal year 2001."(1)
Standex International Corporation, with sales of $637 million in fiscal 2000, and operations in the United States, Western Europe, Canada, Australia, Singapore and Mexico, is a multi-industry manufacturer in three broad business segments: Food Service, Industrial and Consumer.
CONSOLIDATED SUMMARY OF INCOME (In thousands except per share data) THREE MONTHS YEAR ENDED JUNE 30 ENDED JUNE 30 2000 1999 2000 1999 NET SALES $158,038 $160,605 $637,049 $641,400 INCOME BEFORE TAXES $7,896 $11,635 $46,853 $51,491 PROVISION FOR TAXES 3,783 4,266 19,150 20,130 NET INCOME $4,113(a) $7,369(c) $27,703(a)(b) $31,361(c) EARNINGS PER SHARE Basic $.34(a) $.57(c) $2.19(a)(b) $2.42(c) Diluted $.33(a) $.57(c) $2.17(a)(b) $2.41(c) AVERAGE SHARES OUTSTANDING Basic 12,377 12,873 12,672 12,972 Diluted 12,521 12,942 12,763 13,037 SEGMENT DATA NET SALES Food Service $36,518 $41,268 $144,089 $151,782 Consumer 51,768 50,118 220,724 216,272 Industrial 69,752 69,219 272,236 273,346 TOTAL $158,038 $160,605 $637,049 $641,400 OPERATING INCOME Food Service $3,122 $5,045 $12,119 $17,498 Consumer 4,703 4,799 25,426 24,171 Industrial 9,507 5,589 31,789 27,837 Corporate (1,402) (1,880) (9,197) (8,578) Restructuring (Charge) Credit (5,408) 316 (5,408) 1,016 TOTAL $10,522 $13,869 $54,729 $61,944
--(a) Includes a net of tax restructuring charge of $4.4 million, or 35 cents per share.
--(b) Includes an unusual gain, after taxes of $1.7 million, equal to 13 cents per share realized in the first quarter relating to the demutualization of an insurance company.
--(c) The fourth quarter 1999 includes a net of tax credit of $183 thousand, or 2 cents per share and the full year 1999 includes a net of tax credit of $589 thousand, or 5 cents per share, for the adjustment of a portion of the restructuring charge provided in the fourth quarter of fiscal year 1998.
(1) These "forward-looking" statements are necessarily dependent upon uncertainties in the economy, of consolidations in our markets, competitive pricing pressures, timely release of funded healthcare projects, market demand and effects of technological improvements at our units.
CONTACT: Standex International Corporation
Edward F. Paquette