Standex International Corporation reported its financial results for the first quarter of fiscal year 2025, ending September 30, 2024. The company experienced a decline in net sales, which totaled $170.5 million, down 7.7% from $184.8 million in the same period last year. This decrease was attributed to an organic sales decline of $21.1 million, or 11.4%, primarily due to project delays in the Engraving segment and reduced demand in the Specialty Solutions segment. However, acquisitions made in fiscal year 2024 contributed positively, adding $7.0 million to sales.
The company’s gross profit for the quarter was $70.1 million, reflecting a gross margin of 41.1%, compared to $72.6 million and a 39.3% margin in the prior year. The decline in gross profit was influenced by lower organic sales and approximately $1.5 million in inflationary impacts on labor and materials. Income from operations decreased to $24.1 million from $26.9 million year-over-year, while net income fell slightly to $18.2 million from $18.8 million.
Standex's cash and cash equivalents increased to $164.6 million as of September 30, 2024, up from $154.2 million at the end of June 2024. The company’s total assets rose to $1.038 billion, compared to $1.005 billion in the previous quarter. Total stockholders' equity also increased to $658.0 million from $621.5 million.
The company has been active in acquisitions, announcing the purchase of Amran Instrument Transformers and Narayan Powertech Pvt. Ltd. for a combined enterprise value of approximately $462 million, financed primarily through cash and a $250 million term loan. These acquisitions are expected to enhance Standex's Electronics segment starting in the second quarter of fiscal year 2025. Additionally, Standex completed the acquisition of Sanyu Switch Co., Ltd. for $20.9 million and Minntronix for $29.2 million in previous quarters.
Restructuring expenses for the quarter were reported at $1.1 million, with total expected restructuring costs for fiscal year 2025 projected at approximately $4.0 million. The company continues to monitor market conditions, including supply chain performance and customer demand, which have shown heightened volatility.
Overall, Standex International Corporation is focused on strategic growth through acquisitions while managing operational efficiencies and adapting to changing market conditions.
About STANDEX INTERNATIONAL CORP/DE/
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