Standex quarterly financials mixed
Standex International reported financials were essentially flat from the previous year, and any modest gains that were made resulted from the sale of several business units.
The Salem-based diversified manufacturer lost ground on sales, netting $149.5 million in the first fiscal quarter of fiscal year 2007, which ended Sept. 30, vs. $149.9 million for the same quarter in fiscal 2006.
Operating income also dipped slightly to $10.2 million, compared to $10.4 million in the same quarter for the previous year. Standex included the tax gains of $1.1 million from the sale of land at the manufacturer’s corporate office.
Income from continuing operations remained unchanged in the first fiscal quarter of 2007, at $6 million, or 48 cents per diluted share, the same numbers posted in the previous year.
The company also reported a $7 million loss in networking capital — accounts receivable plus inventories less accounts payable — at $123 million, down from $130.4 million in the same quarter in fiscal 2006.
Standex also reported a 130 percent jump in net income, from $5.4 million, or 43 cents per share, in the first fiscal quarter of 2006 to $12.1 million, or 48 cents per share, in the first fiscal quarter of 2007
Another bright spot was a 23.5 percent drop in net debt to $64.7 million in the first fiscal quarter of 2007, down from $85 million from the fourth quarter of 2006, ended June 30, 2006.
Both results were primarily due to the sale of Standex’s Standard Publishing and Berean Christian Bookstores units.
“Our performance for the first quarter of fiscal 2007 was mixed,” said Roger Fix, Standex president and chief executive officer. “While three of our five operating groups recorded top- and bottom-line increases for the quarter, lower volume and operational issues at two of our food service businesses and residential housing market conditions at ADP [air distribution products] impacted the company’s results.”
At the same time, he said, “we made significant progress with several strategic initiatives during the quarter. First, we achieved a major milestone with our Focused Diversity strategy by completing the divestiture of our Consumer Products Group. With that accomplished, we are well positioned to leverage the combined strengths of our businesses to better penetrate current markets and take advantage of opportunities to enter new markets.” — CINDY KIBBE