Standex International Corp. (SXI, Financial) filed Quarterly Report for the period ended 2009-09-30.
Standex International Corp. is a diversified manufacturer producing and marketing a wide variety of useful quality products. The company enjoys a broad and well-balanced earnings base by virtue of its strong market position in selected areas of operation. (PRESS RELEASE) Standex International Corp. has a market cap of $231.9 million; its shares were traded at around $18.7 with a P/E ratio of 11.5 and P/S ratio of 0.4. The dividend yield of Standex International Corp. stocks is 1%.
Interest expense for the first quarter of 2010 decreased $0.8 million, or 45.6%, to $0.9 million due to decreased borrowings on the Companys revolving credit facility and lower effective aggregate interest rate. The lower interest rate was due to the retirement of substantially all of our private placement debt during 2009 and by the expiration of two interest rate swaps early in the quarter that fixed our interest rate payments on $28.5 million of our revolving credit facility above the current historically low LIBOR rates.
Cash flows provided by continuing operations for the three months ended September 30, 2009, were $8.6 million compared to a use of $2.8 million for the same period last year. Contributing to the inflows was an increase in income from continuing operations of $1.3 million, as well as improved working capital management during the period, as cash outflows from changes in operating assets and liabilities improved $12.6 million over the prior year quarter, and offset by higher non-cash restructuring charges in the first quarter of 2009. During the three months ended September 30, 2009, we used $7.9 million of cash for financing activities. We paid dividends of $0.6 million and made net repayments of debt of $7.0 million during the period.
The Company has undertaken several initiatives to generate cash and reduce debt, including cost reductions, improved working capital management, repatriation of foreign cash, and plant consolidations. These initiatives have resulted in a $50 million funded debt reduction in the past year, as we retired substantially all of our private placement debt during 2009. During the quarter, we further increased our liquidity and generated additional borrowing capacity of $7.0 million under our facility so that as of September 30, 2009, we had borrowings of $84.0 million. We believe that the remaining $66.0 million available provides us with sufficient capacity to meet our liquidity needs.
Our primary cash requirements in addition to day-to-day operating needs include interest and mandatory principal payments, capital expenditures, and dividends. Our primary sources of cash for these requirements are cash flows from continuing operations and borrowings under the facility. We expect to spend between $5 million and $9 million on capital expenditures during the remainder of 2010, and expect that depreciation and amortization expense for the year will be approximately $12.0 million and $2.5 million, respectively.
We have an insurance program in place to fund supplemental retirement income benefits for certain retired executives. Current executives and new hires are not eligible for this program. At September 30, 2009, the underlying policies have a cash surrender value of $19.0 million, less policy loans of $12.0 million. As we have the legal right of offset, these amounts are reported net on our balance sheet. The aggregate present value of future obligations was approximately $1.3 million and $1.4 million at September 30, 2009 and June 30, 2009, respectively.
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Standex International Corp. is a diversified manufacturer producing and marketing a wide variety of useful quality products. The company enjoys a broad and well-balanced earnings base by virtue of its strong market position in selected areas of operation. (PRESS RELEASE) Standex International Corp. has a market cap of $231.9 million; its shares were traded at around $18.7 with a P/E ratio of 11.5 and P/S ratio of 0.4. The dividend yield of Standex International Corp. stocks is 1%.
Highlight of Business Operations:
Income from operations for the first quarter of 2010 was $13.1 million, 21.5% higher than the $10.8 million reported for the same period a year ago. Operating income was negatively impacted in both periods by restructuring costs - $4.3 million of restructuring costs incurred in 2009 related primarily to closure of the ADP facility in Bartonville, Illinois, and $1.6 million of costs in the current quarter primarily related to the closure of Food Service Equipment Group facilities in New York and Texas. Excluding these costs, operating income decreased by $0.5 million or 3.0%, driven primarily by decreased sales in the current recessionary conditions. This decrease was offset by significant improvements in Income from Operations at the Food Service Equipment and Engineering Technologies Groups, which serve end user markets which have been less affected in the current recessionary environment than those served by our other groups.Interest expense for the first quarter of 2010 decreased $0.8 million, or 45.6%, to $0.9 million due to decreased borrowings on the Companys revolving credit facility and lower effective aggregate interest rate. The lower interest rate was due to the retirement of substantially all of our private placement debt during 2009 and by the expiration of two interest rate swaps early in the quarter that fixed our interest rate payments on $28.5 million of our revolving credit facility above the current historically low LIBOR rates.
Cash flows provided by continuing operations for the three months ended September 30, 2009, were $8.6 million compared to a use of $2.8 million for the same period last year. Contributing to the inflows was an increase in income from continuing operations of $1.3 million, as well as improved working capital management during the period, as cash outflows from changes in operating assets and liabilities improved $12.6 million over the prior year quarter, and offset by higher non-cash restructuring charges in the first quarter of 2009. During the three months ended September 30, 2009, we used $7.9 million of cash for financing activities. We paid dividends of $0.6 million and made net repayments of debt of $7.0 million during the period.
The Company has undertaken several initiatives to generate cash and reduce debt, including cost reductions, improved working capital management, repatriation of foreign cash, and plant consolidations. These initiatives have resulted in a $50 million funded debt reduction in the past year, as we retired substantially all of our private placement debt during 2009. During the quarter, we further increased our liquidity and generated additional borrowing capacity of $7.0 million under our facility so that as of September 30, 2009, we had borrowings of $84.0 million. We believe that the remaining $66.0 million available provides us with sufficient capacity to meet our liquidity needs.
Our primary cash requirements in addition to day-to-day operating needs include interest and mandatory principal payments, capital expenditures, and dividends. Our primary sources of cash for these requirements are cash flows from continuing operations and borrowings under the facility. We expect to spend between $5 million and $9 million on capital expenditures during the remainder of 2010, and expect that depreciation and amortization expense for the year will be approximately $12.0 million and $2.5 million, respectively.
We have an insurance program in place to fund supplemental retirement income benefits for certain retired executives. Current executives and new hires are not eligible for this program. At September 30, 2009, the underlying policies have a cash surrender value of $19.0 million, less policy loans of $12.0 million. As we have the legal right of offset, these amounts are reported net on our balance sheet. The aggregate present value of future obligations was approximately $1.3 million and $1.4 million at September 30, 2009 and June 30, 2009, respectively.
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