Standex International Corporation (SXI) has reported 33.61 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $7.64 million, or $0.60 a share in the quarter, compared with $11.52 million, or $0.91 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $12.38 million, or $0.98 a share compared with $11.68 million or $0.92 a share, a year ago. 

Revenue during the quarter grew 4.09 percent to $184.72 million from $177.46 million in the previous year period. Gross margin for the quarter expanded 17 basis points over the previous year period to 33.21 percent. Total expenses were 93.81 percent of quarterly revenues, up from 90.33 percent for the same period last year. That has resulted in a contraction of 348 basis points in operating margin to 6.19 percent.

Operating income for the quarter was $11.44 million, compared with $17.16 million in the previous year period.

However, the adjusted operating income for the quarter stood at $17.88 million compared to $17.30 million in the prior year period. At the same time, adjusted operating margin contracted 7 basis points in the quarter to 9.68 percent from 9.75 percent in the last year period.

"Increased demand and growth laneway sales drove the top line in Electronics, Engraving and Engineering Technologies," said president and chief executive officer David Dunbar. "Momentum is building in these businesses as the Standex Value Creation System takes hold. Increased sales in Food Service were driven by the recent acquisition of Horizon Scientific. Demand for Refrigeration was strong during the quarter, however we were not able to capitalize on the increased orders and backlog due to operational difficulties tied to the introduction of new foam for our walk-in freezer panels in one of our facilities. During the quarter we completed the acquisition of the OKI Sensor Device Corporation and the integration is going well. This is a very well run operation, it accelerates our strategy to grow the Electronics group in Asia, and we are excited by opportunities from this business."

The company has spent $171.35 million cash to meet investing activities during the nine month period as against cash outgo of $24.32 million in the last year period.

Cash flow from financing activities was $111.08 million for the nine month period as against cash outgo of $2.63 million in the last year period.

Cash and cash equivalents stood at $87.95 million as on Mar. 31, 2017, down 22.44 percent or $25.45 million from $113.40 million on Mar. 31, 2016.

Working capital declines
Standex International Corporation has witnessed a decline in the working capital over the last year. It stood at $215.22 million as at Mar. 31, 2017, down 5.78 percent or $13.19 million from $228.41 million on Mar. 31, 2016. Current ratio was at 2.61 as on Mar. 31, 2017, down from 2.94 on Mar. 31, 2016.

Cash conversion cycle (CCC) has decreased to 49 days for the quarter from 90 days for the last year period. Days sales outstanding were almost stable at 53 days for the quarter, when compared with the last year period.

Days inventory outstanding has decreased to 44 days for the quarter compared with 83 days for the previous year period. At the same time, days payable outstanding went up to 48 days for the quarter from 46 for the same period last year.