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Standex International Corporation (SXI+1.85%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing reports net sales of $189.8 million for the quarter, an increase from $178.4 million in the same quarter the previous year. This increase was driven by recent acquisitions, which contributed $27.2 million to sales, while organic sales decreased by $14.7 million.
Gross profit for the quarter was $71.4 million, with a gross margin of 37.6%, compared to $71.7 million and a margin of 40.2% in the previous year. The decrease in gross margin was attributed to purchase accounting expenses and inflationary impacts.
Selling, general, and administrative expenses were $45.7 million, representing 24.1% of sales, compared to $43.3 million or 24.3% of sales in the prior year quarter.
Restructuring costs for the quarter amounted to $0.9 million, primarily related to facility closures and headcount reductions.
Acquisition-related costs were reported at $16.4 million for the quarter, reflecting expenses associated with recent acquisitions.
Income from operations was $8.5 million, a decrease from $25.8 million in the previous year, largely due to acquisition-related costs and lower organic sales.
Interest expense increased significantly to $5.6 million from $1.0 million in the prior year quarter, with an effective interest rate of 6.00%.
The company's effective tax rate for the quarter was 35.5%, impacted by a discrete tax expense related to the write-off of foreign deferred tax assets and other factors.
Standex reported a total backlog of $269.2 million as of December 31, 2024, with $238.9 million expected to be realized within one year, up from $209.3 million in the previous year.
The Electronics segment saw a 20.8% increase in net sales to $95.9 million, driven by recent acquisitions, while the Engraving segment experienced a 23.0% decrease in sales to $31.5 million.
The Scientific segment reported a 13.4% increase in sales to $18.5 million, and the Engineering Technologies segment saw a 13.9% increase to $22.6 million.
The Specialty Solutions segment experienced a 2.9% decline in sales to $21.3 million, reflecting softness in general market conditions.
Standex's liquidity position included $121.1 million in cash, with $106.0 million held by foreign subsidiaries. The company had $535.2 million in borrowings under its credit facility.
Looking forward, Standex anticipates continued improvement in financial metrics, supported by productivity initiatives and increased exposure to high-growth markets.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Standex International Corporation quarterly 10-Q report dated January 31, 2025. To report an error, please email earnings@qz.com.