Standex International Corp. 10-K Summary
Business Context and Reporting Period
Company: Standex International Corporation
Reporting Period: Fiscal year ended June 30, 1994
Headquarters: Salem, New Hampshire
Employees: Approximately 5,100 as of June 30, 1994
Standex is a diversified manufacturing and marketing company operating in three segments: Graphics/Mail Order, Institutional, and Industrial. The company operates 86 principal plants and warehouses globally, with 48 owned and the remainder leased. International operations are conducted at 34 plants, primarily in Western Europe.
Key Financial Metrics
Note: Specific revenue, net income, cash flow, and debt figures are incorporated by reference to the 1994 Annual Report to Stockholders and are not explicitly detailed in the provided text.
- Backlog: Total backlog was $74,542,000 at June 30, 1994, compared to $74,208,000 in 1993. Substantially all is expected to be realized in fiscal 1995.
- Capital Expenditures: The company invested $13,238,000 in new plant and equipment during fiscal 1994.
- Property, Plant, and Equipment (PPE): Total PPE at cost was $213,563,251 at June 30, 1994. Accumulated depreciation was $123,866,069.
- Allowance for Doubtful Accounts: $2,587,145 at June 30, 1994.
- Advertising Costs: $8,128,263 for the year ended June 30, 1994.
- Maintenance and Repairs: $8,019,546 for the year ended June 30, 1994.
- Stock Information: Common stock trades on the NYSE. Approximately 14,601,491 shares were outstanding on September 7, 1994.
Material Changes vs. Prior Period
- Backlog Shifts: While total backlog remained relatively flat, the Institutional segment backlog increased from $27,026,000 to $30,569,000. Conversely, the Industrial segment backlog decreased from $39,126,000 to $36,374,000.
- Leadership Change: Edward J. Trainor became President of the Company in July 1994, succeeding Thomas L. King, who remains Chairman and CEO.
- Capital Investment: Capital additions to PPE increased significantly to $13,237,820 in 1994 compared to $10,727,300 in 1993, reflecting a strategic push to upgrade facilities.
- Advertising Spend: Advertising costs decreased by approximately $434,000 compared to the prior year.
Outlook, Risks, and Management Commentary
- Outlook: Management expects substantially all of the $74.5 million backlog to be realized as sales in fiscal 1995.
- Competition: The company faces competition from domestic and foreign producers. Competitive methods include price, delivery, quality, and product performance.
- Raw Materials: Materials are generally available from numerous sources; no material adverse effects from unavailability are foreseen.
- Intellectual Property: The company holds numerous patents and trademarks, but the loss of any single one is not expected to materially affect any segment.
- Environmental: The company believes it is in substantial compliance with environmental laws and does not anticipate material effects on future capital expenditures or earnings.
- Legal: There are no material pending legal proceedings.
Investor Verification Checklist
- Verify the specific revenue, net income, and cash flow figures in the "Five-Year Financial Review" and Consolidated Financial Statements (pages 14-23 of the 1994 Annual Report), as these are not explicitly listed in the 10-K text provided.
- Review the "Industry Segment Information" (page 20 of the 1994 Annual Report) for detailed financial performance of the Graphics/Mail Order, Institutional, and Industrial segments.
- Confirm the impact of the $13.2 million capital expenditure on future depreciation schedules and operating margins.
- Monitor the realization of the $74.5 million backlog in fiscal 1995 to validate management's sales projections.
- Check the 1994 Proxy Statement for details on executive compensation and security ownership of directors and officers.