Standex International Corp (NYSE:SXI) Q4 2020 Earnings Conference Call - Final Transcript

Aug 25, 2020 • 08:30 am ET


Standex International Corp (NYSE:SXI) Q4 2020 Earnings Conference Call - Final Transcript


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Good morning and welcome to the Standex International Fourth Quarter 2020 Results Conference Call.

[Operator Instructions]

I would now like to turn the conference over to Gary Farber, Affinity Growth Advisors. Please go ahead.

Gary Farber

Thank you, Elisa, and good morning.

Please note that the presentation accompanying management's remarks can be found on the Investor Relations portion of the company's website at Please refer to Standex's Safe Harbor statement on Slide 2. Matters that Standex management will discuss on today's conference call include predictions, estimates, expectations and other forward-looking statements. These statements are subject to risks and uncertainties that could cause actual results to differ materially. You should refer to Standex's most recent SEC filings and public announcements for a detailed list of risk factors.

In addition, I'd like to remind you today that today's discussion will include references to the non-GAAP measures of EBITDA, which is earnings before interest, taxes, depreciation and amortization, adjusted EBITDA, which is EBITDA excluding restructuring purchase accounting, acquisition related expenses and one-time items, EBITDA margin, and adjusted EBITDA margin. We will also refer to other non-GAAP measures including adjusted net income, adjusted income from operations, adjusted net income from continuing operations, adjusted earnings per share, adjusted operating margin, free operating cash flow and pro forma net debt to EBITDA. These non-GAAP financial measures are intended to serve as a complement to results provided in accordance with accounting principles generally accepted in the United States. Standex believes that such information provides an additional measurement and consistent historical comparison of the company's performance.

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

With that, I'll turn it over to David.

David Dunbar

Thank you, Gary. Good morning and welcome to our Fourth Quarter Fiscal 2020 Conference Call.

Before I discuss this quarter's results and our outlook, I want to thank our employees around the world. I'm very proud of their efforts in this challenging environment and the dedication, creativity and resilience they've demonstrated.

On today's call, I will first provide commentary on the fiscal fourth quarter 2020 results and the trends we are currently seeing. I will then discuss several of the key themes and accomplishments in the quarter. From there, I will discuss the segment performance and trends. Ademir will follow with a discussion of our consolidated results and financial position in greater detail. Finally, I will conclude with some comments on our outlook and key takeaways from our results and initiatives.

Now if everyone can turn to Slide 3, key messages. Overall fiscal fourth quarter results were in line with our expectations despite the very challenging operating environment as our teams displayed a high degree of global collaboration and coordination while maintaining a safe and healthy environment. Importantly, since the end of April, our end markets sequentially have exhibited a gradual increase in the level of customer activity that has continued into our first quarter. Most notably at our Engraving, Electronics and Scientific segments.