Earnings call transcript Q2 2023

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, and welcome to the Standex International Fiscal Second Quarter 2023 Financial Results Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. Please note, this event is being recorded.

I'd now like to turn the conference over to Chris Howe, Director of Investor Relations. ahead. go Please

Chris Howe

and operator, Thank good you, morning.

Harbor that can remarks note website www.standex.com. Standex's accompanying X. of management's found on at Safe to refer presentation be Please on the company's Slide Please the the statement Investor portion Relations

discuss management differ statements. predictions, could forward-looking today's conference statements cause uncertainties materially. that are subject actual Matters estimates, will call and to expectations that on Standex and results other These include to risks

well as other You detailed report to on and should announcements SEC Standex's annual public XX-K refer filings recent list most Form of as for a risk factors.

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

refer margin, measures, from continuing other also and income earnings share, per to We non-GAAP adjusted debt operating net net operating cash net adjusted including income, operating pro flow adjusted operations, will EBITDA. to free adjusted income, forma adjusted

in serve generally Standex financial comparison the intended non-GAAP are measurement consistent results accounting additional such and information a that company's performance. accepted historical believes of with to measures to complement provided in These the States. financial accordance principles as United provides an

and Chairman, Executive and and Standex's the David President Ademir Financial Chief Treasurer, call is today On Officer Chief Officer, Sarcevic. Dunbar;

David Dunbar

XXXX to fiscal quarter call. morning, conference welcome and Thank Good our you, Chris. second

for adjustments. Procon divest a announced to signed customary pumps post-closing release, to prior Yesterday, earnings subject to business Investindustrial to million, our our $XX we agreement

allocation us wish much the February. capital chapter to business. and market transaction fast further like We thank supports expect acquisition model. to start growth and use to their program and this enables new end organic focus they our our to our of occur as of opportunities divestiture for the Procon consistent We them with portfolio our fund on businesses growth month and success attractive the closing larger Standex colleagues I of proceeds during continued for simplification opportunities. The the to a would plan to contributions

second our performance. quarter to Shifting

We markets in growth financial our segments. were The our execution management and our position trend to in able expectations. teams results, by of which growing while improving double-digit of continue are metrics. than in with of strong growth our key and our three organic proud continue better margin came to improvement other our global demand We sequential sustaining organically, fast us upon our

We I continue about employees, and our applications of new Directors businesses. our to and want across to continued our be developments executives support. Board and product for their thank our dedication optimistic

messages. X, to key everyone if can turn Now, Slide

scientific very our markets another greater year-on-year, three are We the energy, impacted end vaccine lower demand as defense commercial five margin by for in and growth X.X% XX%. renewable pleased revenue of the quarter. record and expected, sales We revenue strong, aviation segment, reported business growth as performance exhibited with remained vehicles, organic while storage. segments COVID Electric than our organic was

million. XX% million from stream to energy backlog of remained Order X% revenue XX% by trends this green in realizable second year-on-year vehicles, $XXX healthy commercialization space contribution anticipate 'XX. such one in Revenue grew We approximately increased to the as and FY XXXX. markets to and under year-on-year high-growth approximately quarter in $XX grow year electric approximately fiscal

of Consolidated record XXX was fiscal operating increase point a adjusted our operating adjusted price actions The 'XX improved quarter margin effectiveness XX.X% the in profile our Standex's of our and seventh of sequentially, consecutive productivity of our improvement margin quarter second point produced basis margin. environment. five margin points in continued segments Four expanded margin All and business showing more. quarter five margin XX%. segments year-on-year and basis operating basis of with XX or expansion a a XXX segments reported despite three year-on-year, global over challenging of

our the part to G&A have lean across initiatives of continue further focus value leveraging business operating system, active creation of and in standardization an on units, all we As structure. disciplines our turn

in As and a discuss ROIC liquidity QX metric, ROIC in capital continued result, Ademir 'XX the performance, allocation are improvement will we seeing in detail position financial annualized XX.X%. greater FY our with our later call. at

the divestiture. quarter to decrease Procon third fiscal we basis, due on foreign a in sequential moderate impact and 'XX, slight expect In the a of unfavorable exchange revenue to

We quarter similar and productivity lower fiscal margin sales. actions offset mostly price adjusted expect operating lower compared second to slightly to 'XX, as

We expect ago. to a the compared higher year adjusted same period operating margin

turn of a organic decline please of X.X% end our to industrial begin $XX for will particularly beginning Slide EV-related management, to the exchange Now, Segment I applications, X.X% energy remained revenue trends an and impact than negative from offset X% from Electronics. outlook segment renewable technologies of more decreased and market Most with contribution X, markets. X% performance and acquisitions. year-on-year favorable, million discuss power foreign as and

From Europe improving demand, strong, New a in China to demand soft. regional appliances Year. while the standpoint, North primarily market do and the China after American remained market start demand was expect We end very market, Chinese

lower increased period, initiatives offsetting impact. XXX of volume primarily the XX.X% versus basis year-ago currency points due the to and productivity Operating margin

the X as the critical the transformers provide In Slide performance can this such Electronics you we expansion inductors of on modernization example, and the pictures segment's utility focus monitor essential on mission substations. see The electrical markets, and grid. to highlights in growth

slightly fiscal slightly across markets increased sales America in The and in North early Germany, were third demand to revenue improve completed margin end operating markets. into unfavorable mix in expect fast company January. China which expects lower growth strong to moves similar to quarter and we to with Sequentially, and plant our due moderately in product

exchange. a organic 'XX Europe. margin to XX.X% to of growth of turn continues fiscal to strong XXX laser points the finishing. XX% second see Engraving productivity North a a and in X% realization foreign segment. positive to increased basis million, trends X offset Slide of Please tools, more in for of segment from headwind year-on-year announced than due Operating discussion previously The engraving Revenue $XX increased America soft tool trim actions in quarter and X.X%

allowed hard illustrates schedules. customer both then simultaneous on parts implement with design global These customers' on first also parts. chain Slide delivery presence Verify, and to texture Design, vehicles, is coordinated solutions. and leveraged launch intimacy supply new them used in to X projects seamless provide The global the picture how deployed trim process soft a OEMs meet model business the was The for develop Engraving our and a the trim concepts broad to several large Produce

and a In quarter, operating next revenue our on to margin fiscal basis, to due project to moderately decrease mix. decrease we slightly unfavorable expect sequential

move in expect continued reflecting increasing more mix fiscal quarter interior trim textures. auto higher We favorable surfaces in manufacturers' growth soft well and as demand, quality fourth as to 'XX

Please turn to Slide X, Scientific segment.

demand due lower year-on-year than primarily basis margin more storage. XX.X% expected, by to COVID-XX revenue to lower actions freight million offsetting $XX with associated Scientific Operating vaccine lower points and cost. As XX% productivity XX driven year-on-year volume price, decreased of decreased

differentiated storage X a newly in and research used industrial cabinet The product This and academic illustrates designed regulatory is location picture standards. Slide that hazardous primarily material settings. meets required on flammable

and similar of expect On fiscal volume freight operating a projected slightly sequential productivity a actions costs as basis, revenue to 'XX, and decline. quarter margin lower we in lower second the offset are

increased of to basis and margin productivity all Engineering volume impact points turn Operating Now, increased Revenue reflecting markets. page strong the XXX of segment Slide initiatives. across on XX.X% XX% of the Technologies X. due $XX year-on-year, higher year-on-year to efficiency million growth and

As a prototype to pictured ZEROe for the contract advanced to We manufacture X, is hardware on the forming world's metal Airbus' announced team enable zero-emission powered our first leveraging recently aircraft. Slide hydrogen engineering aircraft. its capability

decrease a XXXX, operating third project expect fiscal we basis, in quarter timing a decrease volume revenue projects fiscal to In margin productivity significant of of decline. supported backlog. 'XX, in a timing favorable healthy the and fourth is We by slight offset on expect a quarter as do sequential which in more actions due

the segment. Solutions XX.X%, increased Slide and realization and year-on-year of price increases Operating Specialty actions. margin revenue productivity to $XX turn to in increased businesses. of Solutions reflecting basis and merchandising to due X, growth volume hydraulics XXX Please XX% healthy points organic Specialty million display

on existing products, pictured of to merchandising display sales. is our which X, Slide has As business growth represents redesigns its offering continued about and enhance of fueling to business quarter a

to the fiscal quarter significantly, due revenue to In Operating the hydraulics to and third margin divestiture. display in actions productivity we businesses. increase pricing a Procon to basis, the moderately slightly sequential expect is merchandising and to decrease due expected primarily moderately ongoing 'XX, to on

discuss to in the over performance turn call Ademir now greater will I our detail. financial to

Ademir Sarcevic

and you, good Thank everyone. morning, David,

second our from of takeaways key which few a in expectations. XXXX provide came our ahead will I First, quarter results,

continued earnings related and of actions productivity effectiveness our the performance pricing operating and Our reflected strength initiatives.

seventh adjusted of with adjusted quarter a earnings of As $X.XX. share record achieved our result, consecutive consolidated operating we per margin

our addition, end ended ratio to X. around as an remain quarter second the demand stable bill market In we trends overall book with

and the second total X.X% $XXX.X revenue a organic from year-on-year exchange. turn X.X% impact contribution Sensor On basis, X, to revenue let's increased Slide by X.X% foreign of Now, consolidated to summary. offset acquisition, XXXX quarter X.X% partially Solution growth million. a reflected from This

X.X% operating of Second our income points the the approximately margin highest year-on-year history on adjusted basis year-on-year. a XXXX operating XX.X%, consolidated revenue as increase our XXX to increased quarter in XX.X% grew adjusted company,

Our the XXX XXXX tax expect tax decreased XX%. between quarter rate in second basis a points XXXX and a full Sequentially, fiscal we similar third rate XX.X% tax with quarter year-on-year. of rate

quarter Adjusted approximately year earnings second year-on-year. compared of to XX% growth were in XXXX a per the fiscal $X.XX share $X.XX ago,

second shared reflects Net linear million implementation. by a a more million $XX.X management sales cash ago. the compared activities our services year with $XX.X of The continued was of focus quarter inventory around improvement to and impact operating of XXXX the distribution provided a in

expenditures compared year Capital ago. million were million a to $X.X $X.X

quarter to $XX cash As cash million free quarter in fiscal compared of flow a free $XX.X second million second approximately flow XXXX fiscal in was XXXX. result,

approximately the GAAP net flow income cash Our quarter was conversion XXX% free second of XXXX. of in level

the above the of balance to remain expect or We at through year. fiscal XXX%

continues flexibility to opportunities Our provide and active growth inorganic organic as capital. balance well support pipeline as substantial an investment sheet R&D to interest and in of

at above XX.X%. FY Technologies three segments perspective, a our segment XX, exhibited highlighted 'XX Slide by From to snapshot. turn segment year-on-year of Please organic Engineering growth XX%, five

lower segment XX.X% to As declined due vaccine expected, Scientific storage. for COVID sales demand organically

headwind revenue [Technical in Engraving respectively. was X.X% the Electronics Foreign and Difficulty] headwind, currency X.X% growth primarily and segments a to

of year-on-year. decline actions our due and operating organic four The to over favorable XX% an Technologies by points. basis Engineering XX% segments revenue despite margins Scientific improved expanded XXX standpoint, freight operating operating productivity margins costs. segment and From maintained five margin segments Difficulty] pricing each [Technical

$XX strong. remains Standex XXXX had Next, please fiscal year. turn prior the approximately the liquidity Standex's second XXXX. liquidity, $XX.X of summary $XX quarter, to increase available the second of At at second Slide end XX and net Standex million at end of quarter ended of the million fiscal to fiscal which compared million an of XXXX from capitalization for $XXX the the million statistics million with of of the $XX quarter end and structure, debt

debt million, now XXXX $XXX.X totaled $XX quarter. Standex's expect million. XXXX. $XXX subs $XX long-term fiscal million was of repatriate by We $XXX.X equivalents and held net quarter million Cash second in at in between foreign second subs. the $X.X fiscal million million end with We repatriated from approximately cash the foreign to and in cash

$XX.X in allocation, current authorization. capital and under to we the shares regards $X.X million approximately second is the quarter repurchase With XX,XXX for million repurchased remaining

dividend We XXXth $X.XX an per of quarterly cash also year-on-year. X.X% share, increase declared approximately our

XXXX, year-on-year to XXXX. as deepen between compared actions we million The fiscal our $XX and capacity approximately fiscal and be $XX efforts investment growth expansion, expenditures we includes growth capital in markets. high In to now $XX additional for expect capital million presence increased in million productivity

discuss over and call to our from longer-term results. outlook the turn key takeaways quarter now will our I David second to

David Dunbar

Thank you, Ademir.

Please turn XX. to Slide

plans record transitioning and with past updated Over all and like to markets. starting on would company. the we demonstrated share years, of growth-focused our key the with financial revised predictable and our consistent have the We've outlook, to businesses a delivering recently improving our and track of few strategic long-term our fast operating financial view results metrics, operating performance growth

long-term five in plus which the sales this fast our market million sales of $XXX next XXXX. total reach represent believe XX% fiscal or year As by of part growth will greater years, sales within we would view,

in fiscal XX% grow market fiscal expected and Our fast growth to grew another million more sales $XX are XX% 'XX to year $XX than 'XX. year-on-year million year to in

trends fiscal applications at XXXX, we fast Beyond investments the to upon CAGR and to with these sales we will trends scenarios We approximate new and will through align secular customer our strategic XX% believe markets focus products relationships. strong to and continue expand continue under expect year economic growth grow our XXXX. an different

our We annual updated digit billion rate financial Please growth target turn year single in excludes over growth XX, compounded high the XXXX. sales organic acquisitions. five targets. than longer-term impact $X fiscal next a by greater the to Slide target at potential years, continued of This reaching

operating margin 'XX from year or XX.X% adjusted of by in point improvement. fiscal XXXX target margin We XXX fiscal than higher an year-to-date approximate basis XX%

have replaced adjusted better segment adjusted align an business We our reporting target EBITDA to internal and our margin operating margin previous with with target operating process.

return XX% margin on reach of capital better to adjusted fiscal than XX% next our invested previous targets the than better expect We within EBITDA and year.

from investments 'XX. X% approximately our up ramp expect with over a year-to-date continue We target of fiscal X% to in to R&D

expectation this prior we greater an improvement financial our performance, XX%, on increase invested with XX%. of to greater It from our will is capital return than that than our target

invested applies of on our current return capital portfolio businesses target to excludes acquisitions. impact potential Our of the and

cash net income. We target expect flow remain ratio at our approximately of to XXX% free GAAP conversion

on flexibility, substantial energy investments, we to related to targets These organic continue inorganic growth with and pipeline our financial of ENEL. solar our with active opportunities. to potential profits an Finally, exclude plan and project revenue execute

XX. of margin sustainable Slide businesses of stronger and turn Standex company, to attractive positioned Please with deliver operating as to higher an mix profitable well rates is high-quality growth profiles. growth a comprised

Engraving Solutions Specialty business remain our Technologies, segments. and organic growth in in long-term our across We Engineering are rates organic healthy growth in confident and potential our with pleased that

advantageous announcement, opportunities. to through optimize As we and pumps growth our focus to Procon our seen continue will larger portfolio on businesses

strong We continue in our fast growth growth see to markets.

optimistic products, forward, efforts. with align and Looking we're applications global and about trends research our development that

customer the model. about opportunities, long for they intimacy evolve We as our excited ahead are these runway with

to that presented and pricing are to global adapt disciplines different Our OpEx us to the business our scenarios fundamental this actions environment. allow for by

durable be of opportunistic sheet funnel an positions us pipeline internal active Our balance an of to candidates. inorganic active and on investments

We will questions. now open the for line

Operator

now first session. go Securities. Moore CJS will [Operator question-and-answer question from the Our We Please Chris from Instructions] ahead. comes begin

Chris Moore

couple taking Thanks guys. morning, of a Good for questions.

David Dunbar

Good morning.

Chris Moore

it basis more five-year talk -- basis the XX targets. Maybe years, margin XX% good a little updated Certainly morning. Appreciate operating The five target around in XX% very obviously, just the attractive, in 'XX. year are targeting there? improvement, Are fiscal more per a what be you about likely drivers that big XXX roughly points is to bit points or to lumpy? bit

Ademir Sarcevic

Ademir. Yes, Chris, it's

as market pretty and could lumpy I handicap. general think get improvements feel it a on up But well little we we're our fast through depending improvement that's our organic opportunities, as confident put numbers probably environment. good regarding about that do feel bit rates going year-on-year growth we to Obviously, we growth to a the end those some get continued our businesses. operational in economic

five-year LRP, process just for our and it's kind well. finished a that our businesses of long result we as with all it. of basis of range that's And the So planning,

David Dunbar

of we'd you'll had I the the expansion, anticipate rate, steady in be relatively improvement terms as five through guess years steady years? the pretty recent see we've to just in

Ademir Sarcevic

right. That's

Chris Moore

it. much just just impact there? is with operating two overall ones there there. terms of in Got or Procon, margin the margin operating And of same is Specialty relatively an associated as quick The Procon

Ademir Sarcevic

rest Solution the of as margins businesses. operating similar assume would I the Specialty

Chris Moore

the And Procon. it. last Got on one

thinking do about tax anything protect the Is those of Procon Just there how should most we be proceeds? the you on to implication sales? can

Ademir Sarcevic

me. all man, Oh Chris, for this

able in after proceeds -- the to balance should of million. so we have closing on those of tax divestitures. $XX yes, our net for We we north deferred adjustments using assets be prior of some believe sheet majority the customary So, do

Chris Moore

maybe one the it. for Got And me. last

a -- can know I see softer backlog that visibility Just in Is terms that to softer, of if soon or obviously, stronger the QX unique -- too to 'XX, to trying QX on was not a Just fiscal to far stronger, 'XX? ETG, one was it understand QX. that or signaled you you there's trying progression and pattern there, is QX, tell understand out. for

David Dunbar

years seasonal function no look you completely If Technologies, will It's of pattern. schedule. Engineering of a over back see annual discernible years you customer and

Airbus, So, into affect schedules pandemic and this, out production the aviation and their their and has and up defense. pandemic. the the gone down the side, rate launches on Commercial ramp up the recent of military in space

that We're a a those for confident got following So, our a great seasonal guidance business. follow But things And don't being very good a visibility to backlog. little QX strong very is schedule. very in softer. we've calendar our QX

Chris Moore

leave Got it will there. it. I I it. appreciate

David Dunbar

you, Chris. Thank

Operator

comes go from question Please Benchmark. Legg next Michael Our from ahead.

Michael Legg

and nice quarter. a Good Thanks. congratulations morning, on

David Dunbar

Michael. Thanks,

Michael Legg

dig to nice that to -- obviously Was Was a sale -- into X mean, dig -- price -- a approached something were you sale. a into little the you got had Wanted for by buyer? the wanted times approached you the for put I Procon up deeper deeper or were little that over you sales.

David Dunbar

step back we years Well, to a We businesses. I'd in needed if were say really the divest, focus we've you businesses. could little bit, made just divestitures troubled the so on past better

with have They They good in all the competitive the we of their perform sectors. businesses well. divestiture advantage. Now have Refrigeration, are

And has when our portfolio, pick prospects approach in divestiture the so, our think that time the been have market itself, either we to and those the -- don't long-term when healthy. to choose opportunity is for the presents

we in we respect inbound this calls divestiture, a in So, other companies strength given that businesses, and acquisition. position to interested the receive other the year are in regularly thought make were businesses. And a could with from Procon that we our we

think opportunity for in good there. saw We a there prospects of the We found different for emphasize team. We the happy And the a compared capabilities run knew good home were management outcome. There businesses. did we're Proton that that interested business process. will really and competence very So, out the brings participation long-term we we process. was just the the the kind here. buyers the of We with

this good So, aligns and a deal. timing to everything make good

Michael Legg

want M&A about the then, pipeline. Okay, little to great. And talk I bit a

Now that -- basically had once you at Procon, debt zero. close you net

David Dunbar

Yes.

Michael Legg

you talk the this makes firepower opportunity, ahead maybe M&A, of it clearing you me feel balance have opportunities -- was pipeline you -- have after nice you a M&A like, please? of you what Talk like on Can your about now front great this looks that almost all M&A the kind some go to sheet. because

David Dunbar

without even have a have available Well, it. of liquidity divestiture, we million of that plenty needed we -- had $XXX-some we

So, feel constrained. didn't we

So, there the in that these use in want and rapid moving was five if progress or pressure about on capital portfolios, do relatively progress. no want to front. problem six and we you we But our a to continue in make put dimensional to order think growth to through sales

opportunities few have pipeline. do we actionable that could coming a wood. There So, relatively knock We're months. an there be in active on in are the

You together. get are those right away. We're never know proceeds when actionable. put we there these work are to to things trying them to think good and line, finish But will over come opportunities

Ademir Sarcevic

And as we opportunities. disciplined Michael, on as look Yes. side are on at M&A a to pretty process far

the at of out look how are pretty you If since CEO. record, our acquisitions our pleased with David played we became track most

continue a David's similar very M&A you acting pipeline. So, point, capital. have we us active expect a to be manner and can allocators disciplined of in And to

Michael Legg

in to million of one you're been question, million back CapEx for more that year. about you now The second It's just works $XX run what's the for get $XX the queue. Can the half talk for obviously still And not the year? projecting I'll the at in rate. Great. CapEx,

Ademir Sarcevic

focused prior investments is CapEx, a we than in some the more I maybe Yes. this growth lot not lot of over mean, years. -- probably of have year CapEx a

CapEx fast us -- So, putting targeting this our market primarily work some growth fast of of and et expansion, would see opportunities, to Electronics, and cetera. some you are that capacity and in

in our first the 'XX the second So, of half we fiscal versus pick do to up half. expect CapEx

Michael Legg

Great. Thank you.

Ademir Sarcevic

Thanks, Michael.

Operator

from Instructions] next Ross question Blair. go [Operator William Sparenblek Please from Our ahead. comes

Ross Sparenblek

guys. good morning, Hi,

David Dunbar

Hey, Ross.

Ross Sparenblek

Hey.

of some third if down, I like into And also organic just there? to of been walk the Just revenue. of year, out us puts implies quarter take can also -- year-over-year. looks mean, through like to coming Electronics, of and speaking organically flat it sales the roughly you takes it the guidance kind looking probably maybe you deferred kind I flat down looks mean, forward, have

the profile like can this supposed how consumer or mean, margin margin is mean, quarter kind on that maybe first too favorable be for the I of all with it weaker commentary low but -- the to we're the don't Because kind mix? I high appliance? gel So, the mean of now believe the here. too I we year, seems decelerating is -- point I

mean, So, of I mean, positive? does start coming starts revert? does reflecting trend this I China back, mean, does kind if this this I

David Dunbar

Yes. team Ademir and this tag on one. I can

deliver look you think first at of come are that to million said fast have $XX from our we growth Electronic, to I We're the opportunities. well. track that. continue within if million-or-more new composition So, Electronics, Those Electronics. $XX -- look you the what sales progress of at sales on we'll applications, in of how Nearly new business, year, business this

China serves of slowness and the about appliance, But of we've couple large Europe. talked of in in there's economy. kind that a the general the business And quarters last piece

happening offset And appliances, these of things little slowdown in those largely so, markets. got of both Asia We bit simultaneously. end we growth got by and a

Year would are reopening be turn seems pick of we say think around. orders that terms that activity I that China. to the could seeing New the Asia, in China Ademir? We more after business up Chinese This promising. in help

Ademir Sarcevic

in end -- weird said But be indications expect QX from growth, it, that bit of I that's QX of stronger I fuel quarters know and is of growth for reopening to with right. we QX and organic I sounds QX. QX, No, Yes. growth are QX China an our market kind much way fast kind the than a Electronics to in it's -- standpoint, think, organic some growth softer of us. a Ross,

fiscal this business in has grown and -- significantly 'XX. that's So,

XX% look growth organic growth if our FY posted in organic kind you rate almost we overall of 'XX, rate. So, at

in QX and We we and going are a to to itself having economic in resolve usual primarily over QX, general rate. run bit impact our it's that little we'll of Electronics get expect back time

Ross Sparenblek

providing I to transferring mean, the $X targets, seems thanks Okay. well I maybe That's to digit those, over helpful. helpful. imply it very XXXX And High-single billion. over growth, then, organic know the looking that years. guys think to -- from to product I growth next you initiations over spoken XXXX, like you're have at five double-digit double you're previously R&D and new for going And

what as above are $X the there? a some about maybe case, kind guys spare kind we So, of how case, assumptions do mean, base we billion I bake of of think XXXX? it and in that what get you by

David Dunbar

Two think -- than all five XX%, rolling them, said last this just complete few basically mid-single market years our this fast EBITDA and -- rate five as years ago, of we outlook. this margin up came we digit update last the we three businesses, now then and growth out have roll we'll risk Well, get years. less we impact. those longer-term it in We're growth, longer-term kind based to we at on And targets the year, and kind strategic growth up the our outlook, XX%. of we've took given years to ROIC them with of reviews the longer assess

hit and since months the basically later, we're XX at we we the numbers. number updated -- now, a now ROIC we'll these next So, that the EBITDA we've here and strategy again within are And are number. year review updating

the than maybe faster So, what's growth with and three five, our faster performance, little a depending the said earlier it's growth in the opportunities. update fast -- of but in opportunity years, deliver five time going we Rather to that to growth and past at just some economy there's look some on markets them. top on general to --

that we last to markets. -- themselves businesses are stronger our basically few process we're these better And continue -- very follow in we have position years. confident that the same in So the

We mid-single always single mentioned -- We've double-digit growth. upper you so, digit. get the said started we could we And digit. to

think when to I answer a our question position And we for as upper would or could be we ago, see new I our on my growth? vector, now, don't double think hit R&D a these the I year products years we there growth or provided. a our in know, that we're digit was in announce confident single a we two few, in was, and digit and But be to pronounce out outlook a rolling the we would and effectiveness position fast grow with at in that. then so foothold

Ross Sparenblek

biggest XX%. kind tapped out the more note is Okay. operating vaguely at should like I in How mean, us it I going leverage? that the businesses? And productivity then there there maybe overall couple Difficulty] deltas of where looking I buckets is And the mean, Electronics? upside maybe margin versus the Scientific of low ago. [Technical to XX% in the get I years across target think in just remember of there, savings a here are that

kind on what the to of this So, going are the earnings drive side? engines that

David Dunbar

I about things that it will -- presentation say and turn over a back just couple talk here. I'll update our and a and growth. differently little preparing an we're mean, of Well, the Ademir investor growth step in to

we've we business next as accretive come down to so, And in broken few and that and margins new look and And the margins. new applications our in our our out new growth are core products. the applications at years, products new

increase volume. is mixing from advantage, that And the to R&D bottom-line. there's in that of more expectation, us in So, and one those a our -- productivity drive stronger comes COGS businesses the value up every things introducing of There year some growth products an fund the X% margin every propositions new competitive better mentioned. help with you will of plans

Ademir Sarcevic

we I shows potential up those Ross, I segment that mean think of segment. you each few the put kind slides by remember margin Yes. of if

the volume and that segments of margins specifically drive slide. get and more purely those Some those Technologies, we But in need Engineering Engraving in that to pricing. growth to to couple and -- a are hit we to will is of be levels actions there summarized that there productivity

this focus continue really a well And we to as years, on hitting those the have last targets. growth it's as on in as we're So, and of going few mix driving productivity to focused everything. and over businesses, our

Ross Sparenblek

right. All

Operator

our like would any question-and-answer to closing conference session. to This concludes Dunbar David I for back turn the remarks. over

David Dunbar

Thank you. right. All

fiscal joining our again thank again, enjoy And to forward and contributions. speaking We progress for and third to reporting on continued in for Standex. the employees you look want us I for thank to our your want call. finally, We with shareholders call. I with quarter support our everybody XXXX

Operator

for concluded. now presentation. has you today's attending Thank Conference

disconnect. now may You

Standex International (SXI) 3 Feb 232023 Q2 Earnings call transcript