Business Context and Reporting Period
Company: Standex International Corp.
Filing Type: Form 10-K (Annual Report)
Reporting Period: Fiscal year ended June 30, 1997
Headquarters: Salem, New Hampshire
Standex is a diversified manufacturing and marketing company operating in three segments: Food Service, Industrial, and Consumer. As of June 30, 1997, the company employed approximately 4,800 people and operated 83 principal plants and warehouses globally, with 45 owned and the remainder leased. The company also operated 21 leased retail stores in the U.S.
Key Financial Metrics
Note: Specific revenue, profit, cash flow, and margin figures are incorporated by reference to the 1997 Annual Report to Stockholders and are not explicitly detailed in the provided text.
- Backlog Orders: Total backlog was $81,600,000 at June 30, 1997, compared to $68,424,000 in 1996.
- Capital Expenditures: The company invested $12,226,000 in new plant and equipment during fiscal 1997.
- Stock Information:
- Shares Outstanding (Sept 10, 1997): 13,109,853
- Market Value of Non-Affiliate Equity (July 31, 1997): ~$359,218,000
- Closing Price (July 31, 1997): $29.50 per share
- Allowance for Doubtful Accounts: Ended at $2,535,535 for 1997.
Material Changes vs. Prior Period
- Backlog Growth: Total backlog increased by approximately 19.3% from $68.4 million in 1996 to $81.6 million in 1997.
- Food Service: Increased from $9.9M to $11.7M.
- Industrial: Increased from $41.5M to $48.1M.
- Consumer: Increased from $17.0M to $21.9M.
- Investment: Significant capital investment of $12.2 million was made to upgrade facilities across all segments to enhance competitiveness.
Outlook, Risks, and Management Commentary
- Outlook: Substantially all of the 1997 backlog is expected to be realized as sales in fiscal 1998.
- Competition: The company faces competition from domestic and foreign producers. Competitive methods include price, delivery, quality, and performance.
- Raw Materials: Materials are available from numerous sources; no material adverse effects on availability are foreseen.
- Intellectual Property: The company holds various patents and trademarks, but the loss of any single one is not expected to materially affect the business.
- Legal and Environmental: No material pending legal proceedings. The company is in substantial compliance with environmental laws and does not anticipate material future capital expenditures related to compliance.
- Research & Development: Expenditures are not considered material to any segment.
Investor Verification Checklist
- Verify the specific revenue, net income, and cash flow figures in the "Five-Year Financial Review" and Consolidated Financial Statements (pages 18-28 of the 1997 Annual Report), as these are not listed in the 10-K text.
- Review the "Industry Segment Information" (page 24 of the 1997 Annual Report) for detailed financial performance of Food Service, Industrial, and Consumer segments.
- Confirm the realization of the $81.6 million backlog in fiscal 1998 sales.
- Assess the impact of the $12.2 million capital expenditure on future depreciation and operating margins.
- Check the "Management's Discussion and Analysis" (pages 16-17 of the 1997 Annual Report) for detailed commentary on financial condition.