Standex Reports Second Quarter Earnings
20 January 2000
Standex Reports Second Quarter Earnings
SALEM, N.H.--Jan. 20, 2000--Standex International Corp. reported for the second quarter ended Dec. 31, 1999 earnings of 59 cents per share (diluted) compared to 72 cents per share in the prior year.Net income totaled $7.6 million on second quarter sales of $163.1 million. This compares with net income of $9.4 million generated on sales of $171.2 million in the prior year, which included $3.8 million of sales from divisions that were disposed in the prior year. Per share earnings were based on 12.9 million average shares outstanding in the current year's period and 13.1 million in the prior year.
For the six months ended Dec. 31, 1999, sales totaled $320.9 million compared to $328.5 million for the previous fiscal year, which included $9.2 million from disposed divisions. Net income was $17.1 million and diluted earnings per share was $1.33 compared with $17.4 million and diluted earnings per share of $1.33 in the prior year. The current year's six-month 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" by converting from a mutual company to a stock company.
In announcing the results, Edward J. Trainor, president and CEO said, "The second quarter earnings performance did not come up to our expectations. In our Food Service segment, delays in healthcare projects caused by funding constraints and Y2K concerns, as well as a slowdown in orders resulting from consolidations within the supermarket industry contributed to the sales shortfall. In addition, the European texturizing business was soft in comparison to an extremely strong automotive demand in fiscal year 1999. Although we did not match last year's second quarter record sales and earnings levels, several of our divisions reported record sales levels and our backlogs are 11% higher compared to the prior year as we enter the second half of fiscal year 2000. Additionally, we expect that delayed food service equipment orders will be partially shipped during the second half of the current fiscal year, and some will be rescheduled for our next fiscal year. Although not reaching the levels we originally expected, we continue to anticipate that fiscal 2000 will be a good year for Standex." The immediately preceding statements are "forward-looking" and are necessarily dependent upon uncertainties in the economy, competitive pricing pressures and market demand.
Standex International Corp., with sales for the fiscal year ended June 30, 1999 of $641.4 million, 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.
Standex International Corporation
Consolidated Summary of Income
(In thousands, except per share data)
Second Quarter Ended December 31 1999 1998
Net Sales $163,050 $171,171
Income Before Taxes 12,140 15,440
Provision for Taxes 4,527 6,036
Net Income $7,613 $9,404
Earnings Per Share
Basic $.59 $.72
Diluted $.59 $.72
Average Shares Outstanding
Basic 12,820 13,005
Diluted 12,910 13,073
Six Months Ended December 31 1999 1998
Net Sales $320,853 $328,548
Income Before Taxes 27,608 28,384
Provision for Taxes 10,478 11,023
Net Income $17,130(a) $17,361
Earnings Per Share
Basic $1.33(a) $1.33
Diluted $1.33(a) $1.33
Average Shares Outstanding
Basic 12,851 13,030
Diluted 12,926 13,098
(a) Includes an unusual gain, after taxes, of $1.7 million, equal to
13 cents per share realized in the first quarter.
(Unaudited and subject to year-end adjustments.)