SXI - Earnings call transcript Q1 2018 | Standex International Corporation

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Operator

Ladies and gentlemen, thank you for standing-by and welcome to Standex International's First Quarter 2018 Earnings Conference Call. At this time, all participations have been placed in a listen-only mode and the floor will be open your question, following the presentation. [Operator Instructions] It is now my pleasure the turn the floor over to Ryan Flaim from Sharon Merrill Associates to begin.

Ryan Flaim

Thank you, Leta, and good morning, everyone. Please note that the presentation accompanying management's remarks can be found on Standex's Investor Relations website, at standex.com. Harbor slide Safe Standex's see statement two. on Please discuss conference other call that statements. Standex predictions, today's will management and Matters include on estimates, forward-looking expectations These could uncertainties differ statements risks actual materially. results to are that to subject cause and

should public for and factors. a SEC risk announcements of refer to list You recent filings Standex's detailed

EBITDA EBITDA, accounting, to amortization; before earnings interest, related depreciation and would In that one-time discussion is addition, like items. I purchase will which today's EBITDA, excluding which expenses and is adjusted you acquisition remind include restructuring, references to taxes,

that accordance We will financial measures States. A non-GAAP directly Company's accepted the free the such net continuing provides United comparison income consistent results release. to non-GAAP financial an performance. comparable with and first operating measures the available net income, in a Standex are and measures non-GAAP non-GAAP additional income accounting to historical also refer the as information principles in operations measurement non-GAAP to in from to Standex's is serve quarter of operations, news generally GAAP These intended most cash flow. complement reconciliation of from provided believes

DeByle. three, Dunbar over today On Executive turn David President Officer, David? Standex's and David. to as slide Please Tom Chief and is Officer, to I turn Financial call Chief Chairman, the call the

David Dunbar

down restructuring are increased due segments. at XX.X% revenues highlighted a acquisition X.X%. to to of first with position income was share Piazza the Standex of you, million of adjusted which Rosa per million increased grew $XXX.X highlights We based primarily in operating Ryan a to Overall Thank growth. fact sales net Adjusted growth income for XX.X%. to X.X% future. the was showing share. and debt EPS end to organic five up and quarterly prior businesses $X.XX essential activities, business good was in fiscal with primarily and $X.XX quarter XXXX cost by up organic $XX the broad GAAP of diluted acquisition is related which Operating higher quarter, had was business across X.X% morning. a incremental broad strong $XXX.X began key margins Among with We growth million all our EPS in sales the QX, the position than due July. organic higher XX.X% that

addition, across all A of ability business growth shareholders. In Piazza Electronics contributed our XX.X%. integrating to grew up quarter. Scientific three demonstration of expansion drive Standex service, effectively strong value shippable the integrate segments Horizon with backlog and our organic recent Rosa identify, our of sales Japan acquire new under in All meaningful acquisitions almost that improve and for and margin businesses size

Standex advancing these make and Another during quarter. the with top standard strategic the is priority progress our restructuring equipment we products Service Food for of efforts

expect to restructuring fiscal continue business half the second We benefit from of the of year. to this the beginning in

organization to During I implement the can mission very enterprise Tom live from a in leadership the collaborate will predicted best our ahead. leaders. made and quarter year was the creation am first is in results. the With challenged bench quarter across company. have strategies our a team for Standex class proud fulfill the corporate special our dedicated business moving reaffirmed becoming to the we account our quarter, that, value system excited five the we that together how and segments and to and most leadership Tom? very and the This we team progress and I'm effectively this of and of operating review of brought

Tom DeByle

heavier a million Please earnings engraving QX basis by as quarters. five, XX, quarterly earnings a on earnings QX comparable per revenue up performance up the X.X% up We sales and details basis slide a an a X.X% operating order points basis down points earnings quarter and were on up. season. our versus our as growth. are was to The slide XXXX, lower XX.X%; positive results were Please non-GAAP was non-GAAP the impact basis through which XXXX continuing historical our were the basis, trailing of activities of of turn basis. a basis. GAAP everyone. the period, accounting operations. of as income chart X.X%. rates of organic and items foreign margin a slide was XX Overall adjusted $X.XX and basis. up special to in GAAP illustrates and slide four is first in to on million $X.XX The sales income Slide basis. quarter QX Generally, with items down $X.X electronic restructuring on and million. from growth eight. on basis. net which of XXXX bottom turn per increased slide growth purchase basis segment. was up XXX Scientific, double-digit Sales Please Japan during XX.X%. seven, XX.X% Tax-affected $X.X costs GAAP on Horizon weather Sales There basis is which on our shows to Earnings net the adjusted in was and the bridge GAAP six, down a September and versus income our our million a our adjusted and The slows experienced as on up this XXXX another in September and businesses net of impact our sales highest and a $XXX.X improvement of as X%. expenses trend On adjusted turn that in acquisition million, consolidation charges XX, related well finally, cold X.X% special restructuring majority of Brazil include $X.X total which adjusted construction organic spending we and focused on with morning, Ohio Engraved continued a Thank underway We million to programs and $X Standex changes our closed program balance business, having in Please food beyond. organizational growth you, and through share in September old bottom contributed year, and acquisitions benefit of activities for X.X%. those and our XX.X% growth chart Engineering our our of service during $XXX Engraving David our Rosa backlogs and QX these summarizes revenue we our Piazza second and key per and in invested have that initiated exchange to downsize standard organizational in structure. on the business, In business the Electronics business optimizing And the In completed the reflect structure are margin facilities. sales in occurring prior on first turn XX mirror our three GAAP our cost products. share our seasonal and the months of trends. anticipate million in good the fiscal was anticipate quarter had We shows million the fiscal $X year a arrows in earnings and QX. we $X of we Technologies share

investments than years margin making to performance higher be on are two steps programs the less. less long-term. these programs incremental or drive years are - important Implementing over We targeting two these these to payback and

volume capital Japan end at slightly primarily first net compared to working capital debt million, increase ended $XX.X management. Slide period. and million Rosa nine, driven position debt year the acquisition. We XXXX, in by slide increase was $XX needs less and capital to Piazza define quarter decreased higher million the The and capital a Working reflecting since with prior in year-over-year quarter illustrates to X.X our and Turning $XXX.X was the of the the ago Electronics approximately of the as cash. X.X debt $XXX.X Horizon QX million fiscal net Standex turns the of the in Rosa. sales in fourth from acquisition of funded million We debt XX, $XXX working of Scientific, year. Piazza working compared

net to spending, XX, our leverage capital XX.X% capital Our net quarter. and ratio of summarizes amortization debt with sheet balance Slide was to depreciation debt of last XX.X% trends. compared capital

the invested X.X% was our which is in our in highest line strategy businesses. margin Engraving in prior capacity. with to to field acquisition. includes result Electronics to technology, the Rosa in fastest electronics be of our in roll million facility machines the our Suzhou, switch of In heaviest growth now $XX to spending $XX support is This a business, new and capital out the requirements Our technologies focus in was spending investments the move continued increase expectations. and capital quarter of laser that Engraving the million as expect our we we as This In XXXX, growing, read the spending Engraving. acquired to will during range our on due the a capital above and we China Piazza

by operating $XX Conversion million. flow $X in higher details capital $XX the operating free have flow in lower Slide shown the quarter. reconciliation expect in XX, Historically, range depreciation cash the negative We to free was to million, to of and primarily was flow. spending. operating million free cash amortization conversion for investments cash range quarter. million cash cash negative higher capital $X the the in a of of of operating flow needs, impacted flow free The and restructuring we cash working first

the coming four a operating net of call operating negative David. anticipate flow and payable years the the to a driven turn our quarter. quarters improvements that, back cash the target five I'll We by to lower fact, flow XXX% With account in free of In last cash income. first show free in

David Dunbar

fundamental dynamics that product products mainly ERP implementation this Refrigeration and shipment and and margins products In remained continued spending to sales at backlog the refrigeration, continue previously. you, X.X% as increased Food solutions, on XX, within to business segment the the The chains sales delays leveraged on as due revenue lower Horizon market standard business due backlog turn Scientific legacy identify in synergies large in about sales Nor-Lake ramp. new to channel spoken it a I'll to acquisition. growth, led is this our segment fiscal Tom. move by XX.X%, the through with begin has Scientific drive our slide XXXX. sales Group. we The adjacencies Horizon legacy and of team growth well to Equipment is successfully Please including sales team quarter high all-time In an conducting overview X.X% cooking from to were down build margins Thank accounts for national increased Service with to Sales track and system for expected standard declined, momentum, remained Scientific strengths our plant. but bring for from the the innovative our with explore test marketplace. we've changes as market business as to to

We quarter. business, shipments in is improve are fully of performance. encouraged ERP right returning And already the system we and the perspective, dynamic that sustainable and for to this implemented transformation daily a From a are itself building second is critical normal the lead expect this block once expected longer-term to health levels. to to

solutions strong continue driven growth specialty beverage in sales the perform by X.X% to Our well, as up business.

we was capitalizing as business healthy pipeline In strong addition, display opportunities. and new of merchandising on begin

backlog. up ahead to Service, executing one product solutions and include on costs. also laneways. same backlog expanded on converting strong and is in remain shippable are priorities year while our we in through excluding Backlog standard reducing differentiated XX.X% table optimize growth acquisitions, Top is products Looking top and market up sales efforts cooking focused At tests our businesses shippable restructuring Food growing the refrigeration within we XX.X%. our time,

adjusted with and year of which to XX.X% compared introductions. Asia-Pacific an be XX.X% Texturizing Piazza income Rosa XX of region in margin X.X% Turning program increased was OEMs up fueled but in model included a is ramped accounting up XX.X%. a up negative Most The as XX.X%. impact up was with sales operating new record last as were automotive all Europe regions year, Operating to purchase expected slide income, launched $XXX,XXX new Engraving, growth. sales to grew

closed top-line year. contributing million from a expectations Piazza by offset ahead which a our which sales. last in our business, of of sales During slightly partially Innovent decrease customer of our the projects had Rosa $X quarter significant we performs acquisition, This $X.X million was

technology investments increased growth fact from our sales with successful As quarter I laneways new Engraving to of earlier and core. have several and $X.X develop this million been top-line the programs in contributions efforts grew the noted

forward focused operating sales XXXX Looking priorities our on remains driving and growth.

on XX Piazza out across to our of supporting sites. global the bookings will the rolling automotive a be leveraging will tool growth. We introductions All expertise XX% sites services, finishing record the model focus that newly of Rosa business acquired led worldwide level

addition, growth potential programs market and to and slide turn have test identify laneways opportunities. In technologies XX. committed to new executing Please on additional conducting growth we to

for fees, by legacy focused plant ramp up repeatable price on programs on programs parts up and from to increased generation sales next Technologies to product we development reed space XX.X% on a sales in the for the grew aircraft serve by Japan negatively new XX.X% programs. lipskin of growth supply and In and prior Japan including by sales Engineering Organic XX.X% up benefited Sales by growth completing switches We $X.X turn developmental Our XX very Sensor consolidation continue and capacity space production sales inefficient regions on of parts. particularly cost were dome X.X% by Electronics deliver Group driven we'll addition newly perform and the the sales to on strong Please Electronics XX.X% driven a double-digits organic lines. across and where development meter sensor aviation slower jobs. increased to industry. continues platform job, increased or the continue Standex engine in by all the regions. our acquisition well. in pressure long million, acquisition legacy reed to were global ramp segment increased acquisition reed Electronics. Standex work completing which slide by show actions the aviation increase quarter our organically overall year impacted remain and switch key in and awarded strength European continued powered from sales in tight Japanese by switches. XX.X% Margins all our was sales of grew term of to

we've potential the and switch all operational Standex reed the Electronics The see across sharing management momentum our through plants are practices to Japan new teams. bearing as cost identified great continue of Electronics improvements Japan already for Standex for We integration acquisition. synergies fruit best of three our

implement Pacific up Asia leverage business chain our sensor we secure Japan and In between to have to addition, a to begun to opportunities. Standex legacy value sales new and Electronics synergies structure sell

including sales business primarily Looking Hydraulics. sensors markets ahead, of further to deliver down our LED capitalizing growth. we're reed in opportunities in grow increase of in focused to new on fluid leveraging level result truck sensors, The identifying sensor and expected and our Please XXXX. this reduced half relays the turn synergies, we new to the structure X.X% of costs the beginning business pipeline sales slide active is magnetics hydraulics latter XX trailer and to recover as

a and period. We we grow markets over as focus strong improved continue to we're environment demand converting to good sound continues. on increased fiscal macro which fundamentally our backlog optimistic pipeline as we for hydraulics project expect in and are solid believe year prior the our XXXX the XX.X% Further

few thoughts. with questions key to me go you a leave we Before let

by are strong on Engineering path Hydraulics bolstered businesses. Technologies Standex remain and expected Scientific growth Food In this Engraving, in we all FYXXXX. in are Electronics, across growth Our performance was particular in this executing organic fiscal to Service, on profitability year. focused of actions take structuring the products. made benefit the to-date our see we the hold half confidence of us to the the lease The to these second that of initiatives improve in standard gives begin will quarter progress

and all margin future Our growth quarter. recent three opportunities to is very on well both on key and component contributing performing Capitalizing this a these acquisitions like with profitability. are to M&A growth sales

acquisition and the profitable value Standex Standex differentiated As constantly we're operational serving five organic of and to to to Standex is businesses growth setting support well creation excellence It talent CapEx And growth markets and look and committed sustainable that, processes an across niche prospects, for streamline to upon the will to operating growth management solid we improving we'll up segments growth that we're system. attractive and transform initiatives be deliver questions. continue With to business company shareholders. our all profitable your be aspirations. sheet ahead predictable take we positioned form finally, value as to our balance happy sales, is

Operator

Moore Instructions] [Operator first question line Chris the Securities. CJS of of comes from Your

Chris Moore

quarter. Hi, good Great morning guys.

David Dunbar

Good morning, Chris.

Chris Moore

start restructuring, to Good X in morning. side? so, in much balance food sure be the services nine make to on this eight just that's six on Yes, understands maybe the the and you the how food five can think want gone and also service engraving so, is just on specifics million of that you to engineering to

David Dunbar

our it's on service food side So, about this million basically, X year.

Chris Moore

Okay, you're blended blended EBIT XX% you at of margins of specialty at a looking that for on think a just kind between are When the standard, the or margin, or discreetly basis? well service as get going it. on target you that you and on got in kind food more the the when look basis kind can or standard you of the do on XX%,

Tom DeByle

the Well, blended standard the targets that be below. above will products differentiated XX% the is in products so

Chris Moore

I Got Anything there areas makes that of is of that? organizational know to kind fundamentally distribution makes or it, That of lines, one else, kind kind piece of at it's or from sense okay. look on how sector product challenge sense. given is potentially do some you their that or product sell it, structure

Tom DeByle

business eligible discounted. a challenge highly the more more lower And is where refrigeration, and through product some have our that a rebate quarter rationalizing is and product few cooking channels actively we in of the much much got to in line in end have last the been $X on standards the cooking pretty traditional an coming and we've quarters impact lines, move margin as products margin the the refrigeration, at Well, side. the rationalization that's more years as we of recent of with there a million in products key lower

groups more the and move actions best we have have where job those to - are in products we dealers negotiate our more the with value can there differentiated. focus optimizing So, our on a buying doing were the deals plans and the really we to

side, we in the application firms we will to lead bringing some brought something and that operational it improvement, even are in principals. firms do mentioned the some industry best all time in the the experts that organization. we the the quarter, new, level On relatively have bring brace in regularly firms in this done We and that last the outside ideas, of operations that help new are outside lean really of

got working standards drive layout through standard our progress group we refrigeration Kaizen sell-by-sell a they with operations we've the cooking So, going are and plans happy with our with seeing we first the to to through are plans are our with changes, quarter improve and there.

Chris Moore

terrific. it, Got

electronics EBIT acquisition the a there margins lot that the for what's with Just terrific given going is electronics? still on on sides room margin the there still on like quarter, the are lot operating of seems it of OKI a obviously upside there is, XX.X%,

Tom DeByle

business a this Yes, - representation of if good results, In higher this volume but it's see to high value running full capture of volume. probably you're reselling income how of historically XX% range near-term, - business, is some good I now a because centers will quarter a because of wouldn't overtime and you I add, in move value we've is any quarter, got think been. part build more margin years you balance look in the this we the low high Overtime, expansion the any end as multiple where and some of margin also this is the and with perform. our margin it's sales through with if OKI If for can of model. you a the operating is into think along they're probably the

Chris Moore

engraving a models last XX%, have the is the the new trying what's be, obviously I the you. you question have increasing now And a engraving, where of on side, end? it engraving visibility talked Got you year am I from just like look with six mean sense you'll understand good months to on out, about visibility

David Dunbar

We as You out. it's rollout kind in follow quarter a XX months model can OEMs move you pretty that while, - to of our pushed when going rollout lumpy because business over the can the think know gets model is be so come maybe it but visibility period for two, quarter-to-quarter commit a a good, out. or to from

of period. you of on if month So, kind XX visibility XX a an months our over in take where maybe average that kind we

Chris Moore

Got guys. it. I appreciated

David Dunbar

you. Thank

Operator

Burke, comes next from line Your the B Liam of of Riley question FBR.

Liam Burke

Thank morning, David. you. Good Tom. morning, Good

David Dunbar

Liam, good morning.

Tom DeByle

morning. Good

Liam Burke

engine there the Engineering on that? of is anything related terms a parts be to creating in David side, margin done pricing legacy we or the about you mentioned anything that drag, can are

David Dunbar

that in Yeah, early, reduce well to coming we actions place this we the we our that suppliers - in done, position, here with those and started identified actions have pressure working will knew we cost get starting our be we'll QX.

to gap expect will that QX. in that, closed we so be see will So,

Liam Burke

when Engineering, have a these And these absorb have stand contract of ramps some on sense costs incurred? of timing do upfront you to to begin is you will

David Dunbar

XX into really we first something the of Yeah, to critical awards business, won ramps the turbofan XXXX, when are start a those aviation, ramp being are volume this full well that XXXX. in XXXX long-term aircraft turbofan, of challenges geared a late year of expectations the the this at up. geared and then which the ramp get with in lipskin is to XXXX least about leap, both early was understood Those the pushed with the by forecast the XXXX the we month as end out is

so with a do Airbus. this or of and with month the engines the more for learned - and to we've supply In base of just that out that of push chains has availability fact, supply

will a order aircraft our built they these has on parts just out, these them. engines mean deliver orders are hope Airbus way, record book, to and go when aren't the pushed into So, in the business going they I getting still are

Liam Burke

until sort current improvement? that's to I engineering see your on the am we ramp margin hits, side, looking if at rate or of look the any going pretty much sequential So, it's how

David Dunbar

that quarters, from the about the that improvement, consolidating sheet Anagenetic this but operational came sequential talked that's some were through in kept with the see there balance QX, that couple that [ph] of I were will that two in plans completed mean those last one-time and floats acquisition was a we QX, in quarter, QX. ramp pressure cost parts, us. one-time our the I tell from products those slower legacy or gap pushes QX will year issues closed The see - things the improvement in so, out a be margin of The come that behind will be legacy you deal. will that but will as QX, you You by inefficiencies

Liam Burke

then unprofitable How Okay. lastly the of was revenues cooking And had that of much you down were the just year-over-year. product? elimination

David Dunbar

that see $X million Didn't $X.X system million that, this just a or in about impact $X breakup, ERP implementation. but from probably is million there

but have not would in from the ERP. hiccup quarter the the sales So, been down for

Liam Burke

Great. Thank you, David.

David Dunbar

Thank Liam. you,

Operator

[Operator instructions].

line from & of McGinnis comes Company. question Chris with next Your Sidoti the

Chris McGinnis

for Good taking question. morning, my Tom. Dave Thanks and

David Dunbar

Good morning, Chris.

Tom DeByle

Good Chris. morning,

Chris McGinnis

Nice quarter.

if to you And that it did Just I is - anything ERP you isn't. apologize on that maybe segments, ERP the I just mentioned about new wanted follow-up you businesses? another a with across look - when wanted then that. just just initiative, to five issue updated Maybe

Tom DeByle

years. a in back on that. Basically, we we a is planning have glitches on Epicure, system even putting had that on, developmental so been we ERP were going our couple the carried was well shipping do and print system, XXXX, food we ERP let's couple that we have and of of planning which a we just you for and this numbers across say bought take when I'll our say on been aware do this, service. Chris, And I'll turn that a labels serial like standard were stuff Okay to had which we is Simex [ph] system January of when always We - really we question. just in

So, that. that's up us, to we're going we're on catch behind confident that

Chris McGinnis

Okay, so just implementation, of really a here. a respective catch-up one-off kind for

Tom DeByle

Yes, exactly.

Chris McGinnis

you're it working the Okay, on about how is how platform, Thanks that. - Rosa are I for across guess to bring that you Cool. that take on will supply long global it chain, platform offering right your there, their Thinking hard across mentioning and now? okay.

Tom DeByle

first question, course I of breaking you're missed part the the up. of

Chris McGinnis

Sorry. Oh!

is used. on Just Rosa the acquisition

Tom DeByle

yeah, we business Oh would yes, came three plans our people Rosa thousand Italy lead flows, site, When had on despite into and right. come business, would manager, four dollars going our our will and come integration, hundred just at synergy we're first financial several in about, paid getting months, focus and Italy, or then our of Yeah. mostly that, we the Italy integrating that into this to our out be our like, the order, would for Rosa And order. can hey Rosa organization, on the complement billable quarters. has this people to about excited Rosa China very I the this Piazza are in it's be Piazza China expand managers being alone, so, tell XX be in with a global on thing. each hired they to you, we'd to sent side, and polishers, trained same content coming

ramp, we'll report And probably as So, we in quarter-to-quarter. advances a start to see QX. will

Chris McGinnis

part just integration To simply up then go that that about, acquisition. - that, on the, that, with I it's little the a lastly, And can you chain just acquisition. of about value bit that. for what's move of thanks just big think how you Great, talk the

market, that region, in they to that up could that of possible all to value chain? you limit it at all, that who Additionally, if end how moving compete

Tom DeByle

priorities quarters, Great at - this corporate discovered is for would consideration, this we've question, that things. we wanted major this, other previous had as any Electronic did of the What something in that mentioned as reasons, unable we is to was look of is, this. but OKI variety just we and would we customers, explore, alienate as

to anything the we didn't in the Now, to wanted the plan is part for in for somehow. was there first sensors ramp the know planned we next year. know get another year. opportunities had that Standex, We would out up the but we channels Because start it markets, to

small work, have so in sensor In a a reason to healthy Standex sensor. reed company Electronics countries, of of we this for happening this quickly OEM. into company the sensor. we're selling the a it's quoting. that Japan, go And sensor a a And is, that selling the sensors, $X goes selling through nearly fact, switch, acquired, distributors level distributor then And we is to Chris list the imagine distributors. switch a business sensor They're designs a sales already all the that their $X.XX

Our distributors now, quote as instead $X $X.XX a of to so, ask switch. a they sensor, hear this out an about sensor, to our they sell there, opportunities us opportunity they've if

surprised are opportunities, sensor is and this month our So, opportunities a us list last priority, incentives out of to growing. finding sensor pleasantly there, we're their aligned just so, with bringing of distributors are rapidly I our was was lot see because a how

Chris McGinnis

Great, appreciate that thanks for that. Tom. I

know, you but, just pretty kind organic what should the year, rest thinking thinking guys surprisingly we go of obviously, quarter. I on reason that in the the the about as about this, trends Lastly, slowdown, Any the talk saw strong. you of to growth, just

just that? wanted about how I a about maybe more you color Thanks. little So, feel

Tom DeByle

cooking feel, continues, that restructuring. are We think restraining our Standex we as so, because and mentioned I in growth operations this on refrigeration, in and we're expectations business script, on the they focus in

other we to all the businesses. in expect continue I As growth mentioned, trends organic

Chris McGinnis

Great. thanks Good in for QX today. my taking time luck -

Tom DeByle

Chris. you, Thank

Operator

Copeland Your comes of line the from Capital next question John with [ph]. Cummings

Unidentified Analyst

strategy is number And the side on Engraving taking is big understand hear for Thanks on to how growth trying from And new your increase thoughts to the the the a of what's car OEMs? the the there? question. sustainable in models? this morning. good driving just Hi, Curious car I'm change

David Dunbar

organizations data that get our monitor industry. we So, the from various

for particular new being historic in for for watermark introductions. high data identified model years FYXXXX IHS years, the has the several So, is

for been some So, planned and known this an time. has industry for

you a it when all. strategy So, at change in say represents

Unidentified Analyst

models more a cyclical secular So, to That's trend out what cyclical peak is guess car there. understand? more of FYXXXX have to trying it this I a I'm is of is or more a

David Dunbar

view be to great modulate will out the that slightly hazy question. to what is The it's that's current down. Well, a FYXXXX, there. FYXXXX little flat happens

As you by is business know, by new not SAR. our model driven introductions

contributed gain doing follow a the to OEMs prepare to sales if of I will happen is which in and one would for SAR million with the services So, introductions don't have model is, the or just the this be to new decline. new we're fiercely investment starts that we other that yet. compete in question and quarter. more investment on share will clarity model good market But the what the auto us tool $X.X say in finishing, With introductions SAR things for would that

so can future other in compensate revenues that any So, models. we we're for the building decline

Unidentified Analyst

And driving thanks. of that? then in up I jump What models FYXXXX this big planned. guess Why new is FYXXXX in Okay, that seems the strong? it's like so number is

David Dunbar

to their auto And suppose, get And the around five go You and you'd plans a talk are also years refresh and is to together. all shows I to the almost the laid out have the note companies changing. design a this to world. we I of And made is just to the back this they're There lifestyles XX of specialized that they are information. go trends trends Tom reasons. all customers' electric specific how this. year all there there small to going fashion now. in designing four, combine the new a China, to the strategic need three, about vehicles phenomenon right are And range same are their designers they shows their overlap at to and listening have OEMs that to models an OEMs each where ask guess get auto

electric to around enter move that as players auto industry. the are the there see world an So, this to vehicles opportunity

well. driving models as that's new So

Unidentified Analyst

critical on And one Okay, then thanks. insight. question the

Are as I think in maybe execution there? foam. that any two now or or in are of you there mentioned that ago we issues think planned other I you have some mentioned quarter terms to that to there refrigeration through execution you issues is

David Dunbar

that, has resetting business to market just the the now more dynamics business current through lower operational focused this our improvements We're and No. model on margin which there flowing restructuring and performance are through channels.

Unidentified Analyst

right. all Thanks. Okay,

David Dunbar

thank Yeah, you.

Operator

Thank to you. I'll now for the turn closing remarks. any additional David call or Dunbar

David Dunbar

just with look this happy very about you. coming to quarter excited to We're quarter year. the forward fiscal delivered. to next back on the our quarter. I We're in we Thank And report

Operator

in International's quarter conference XXXX earnings Standex participating first for call. Thank you

You may now disconnect.

Standex International (SXI) 1 Nov 172018 Q1 Earnings call transcript