Standex International Corp. (SXI, Financial) filed Quarterly Report for the period ended 2010-03-31.
Standex International Corp. has a market cap of $375.2 million; its shares were traded at around $30.09 with a P/E ratio of 16.7 and P/S ratio of 0.6. The dividend yield of Standex International Corp. stocks is 0.7%.SXI is in the portfolios of Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Interest expense for the third quarter of 2010 decreased $0.6 million, or 46.2%, to $0.8 million. For the first nine months of the year, interest expense decreased 49.0% from $4.9 million to $2.5 million. These decreases are due to lower overall borrowings on the Companys revolving credit facility and a lower effective aggregate interest rate. The lower interest rate was due to the retirement of substantially all of our private placement debt during 2009.
Other non-operating income for the quarter totaled $0.2 million compared to prior period expense of $0.1 million. Year-to-date, other non-operating income was $0.4 million. Compared to 2009 income of $0.8 million, the year-over-year change reflects a benefit of $1.1 million in the first quarter of 2009, when the Company recorded a gain on its portion of proceeds from a life insurance policy triggered by the death of a former executive.
Our income tax provision for the three months ended March 31, 2010 was $1.6 million, or an effective rate of 25.3%, compared to a benefit of $3.3 million for the same period in the prior year. The effective tax rate for the third quarter of 2010 reflects the impact of the reversal of income tax contingency reserves during the quarter. These reserves were determined to be no longer needed due to the expiration of the applicable statutes of limitations. The provision for the three months ended March 31, 2009 was impacted significantly by (i) the $21.3 million impairment for which only $1.3 of tax benefit could be realized as the goodwill had no tax basis and (ii) a discrete benefit totaling $1.7 million from the reversal of a deferred tax liability that was no longer required due to a change in the U.S. tax classification of one of our foreign entities.
significantly by the following discrete items (i) the $21.3 million impairment for which only $1.3 of tax benefit could be realized as the goodwill had no tax basis (ii) a benefit totaling $1.7 million from the reversal of the deferred tax liability that was no longer required due to a change in the U.S. tax classification of one of our foreign entities, (iii) a benefit of $0.6 million related primarily to the retroactive extension of the R&D (iv) a benefit related to the receipt of $1.1 million of nontaxable life insurance proceeds, as well as other minor adjustments.
Income from operations for the third quarter of 2010 was $5.7 million, up $21.3 million from the same period last year. The prior year third quarter included a $21.3 million impairment of goodwill and intangible assets related to our 2007 acquisition of the American Associated Industries (AAI) operating unit. Also included in the prior year were favorable adjustments of $2.0 million for reversals of bonus and stock compensation expense and the reversal of accruals for calendar year 2008 customer rebates that were not earned due to the recession-induced drop-off in sales. Excluding these items, the groups third quarter income from operations increased 54.5% over the prior year quarter. This increase is attributable to year-over-year volume increases along with cost reductions due to facility consolidations, staffing reductions, supply chain cost reductions and labor productivity increases, which were partially offset by market pricing pressures.
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Standex International Corp. has a market cap of $375.2 million; its shares were traded at around $30.09 with a P/E ratio of 16.7 and P/S ratio of 0.6. The dividend yield of Standex International Corp. stocks is 0.7%.SXI is in the portfolios of Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Income from operations for the third quarter of 2010 was $6.7 million, compared to a loss of $19.9 million reported for the same period a year ago, which included a $21.3 million charge for impairment of goodwill and intangible assets. Excluding the impact of these charges, income from operations increased $5.3 million over the prior year quarter. The increase to operating income was driven primarily by cost reduction efforts achieved through headcount reductions, plant consolidations, procurement savings, manufacturing efficiencies, and other cost reduction efforts. Income from operations in 2009 also benefitted from the aforementioned reversal of stock compensation and bonus expense during the quarter.Interest expense for the third quarter of 2010 decreased $0.6 million, or 46.2%, to $0.8 million. For the first nine months of the year, interest expense decreased 49.0% from $4.9 million to $2.5 million. These decreases are due to lower overall borrowings on the Companys revolving credit facility and a lower effective aggregate interest rate. The lower interest rate was due to the retirement of substantially all of our private placement debt during 2009.
Other non-operating income for the quarter totaled $0.2 million compared to prior period expense of $0.1 million. Year-to-date, other non-operating income was $0.4 million. Compared to 2009 income of $0.8 million, the year-over-year change reflects a benefit of $1.1 million in the first quarter of 2009, when the Company recorded a gain on its portion of proceeds from a life insurance policy triggered by the death of a former executive.
Our income tax provision for the three months ended March 31, 2010 was $1.6 million, or an effective rate of 25.3%, compared to a benefit of $3.3 million for the same period in the prior year. The effective tax rate for the third quarter of 2010 reflects the impact of the reversal of income tax contingency reserves during the quarter. These reserves were determined to be no longer needed due to the expiration of the applicable statutes of limitations. The provision for the three months ended March 31, 2009 was impacted significantly by (i) the $21.3 million impairment for which only $1.3 of tax benefit could be realized as the goodwill had no tax basis and (ii) a discrete benefit totaling $1.7 million from the reversal of a deferred tax liability that was no longer required due to a change in the U.S. tax classification of one of our foreign entities.
significantly by the following discrete items (i) the $21.3 million impairment for which only $1.3 of tax benefit could be realized as the goodwill had no tax basis (ii) a benefit totaling $1.7 million from the reversal of the deferred tax liability that was no longer required due to a change in the U.S. tax classification of one of our foreign entities, (iii) a benefit of $0.6 million related primarily to the retroactive extension of the R&D (iv) a benefit related to the receipt of $1.1 million of nontaxable life insurance proceeds, as well as other minor adjustments.
Income from operations for the third quarter of 2010 was $5.7 million, up $21.3 million from the same period last year. The prior year third quarter included a $21.3 million impairment of goodwill and intangible assets related to our 2007 acquisition of the American Associated Industries (AAI) operating unit. Also included in the prior year were favorable adjustments of $2.0 million for reversals of bonus and stock compensation expense and the reversal of accruals for calendar year 2008 customer rebates that were not earned due to the recession-induced drop-off in sales. Excluding these items, the groups third quarter income from operations increased 54.5% over the prior year quarter. This increase is attributable to year-over-year volume increases along with cost reductions due to facility consolidations, staffing reductions, supply chain cost reductions and labor productivity increases, which were partially offset by market pricing pressures.
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