Business Context and Reporting Period
Company: Standex International Corp.
Filing Type: Form 10-K (Annual Report)
Reporting Period: Fiscal year ended June 30, 1995
Headquarters: Salem, New Hampshire
Standex is a diversified manufacturing and marketing company operating in three segments: Graphics/Mail Order, Institutional, and Industrial. As of June 30, 1995, the Company employed approximately 5,000 people and operated 87 principal plants and warehouses globally, with 48 owned and the remainder leased. International operations are conducted at 33 plants, primarily in Western Europe.
Key Financial Metrics
Backlog (in thousands):
| Segment | June 30, 1995 | June 30, 1994 |
|---|---|---|
| Graphics/Mail Order | $9,268 | $7,599 |
| Institutional | $38,043 | $30,569 |
| Industrial | $33,151 | $36,374 |
| Total | $80,462 | $74,542 |
Capital Expenditures: $12,006,000 invested in new plant and equipment during fiscal 1995 to upgrade facilities.
Allowance for Doubtful Accounts: Ending balance of $2,853,681 as of June 30, 1995.
Revenue, Profit, Cash Flow, Margins, Debt, and Liquidity: The filing text incorporates the Consolidated Statements of Income, Balance Sheets, and Cash Flows by reference to the 1995 Annual Report to Stockholders (pages 16-18). Specific numerical values for revenue, net income, operating cash flow, debt levels, and liquidity ratios are not explicitly stated in the provided text.
Material Changes
- Backlog Growth: Total backlog increased by approximately $5.9 million (7.9%) from the prior year, driven by growth in the Graphics/Mail Order and Institutional segments, partially offset by a decline in the Industrial segment.
- Leadership Transition: Thomas L. King served as CEO until June 1995. Edward J. Trainor became Chief Executive Officer in July 1995.
- Facility Expansion: Significant investment of $12 million in new plant and equipment to enhance competitiveness across all segments.
Outlook, Risks, and Management Commentary
Outlook: Substantially all of the $80.5 million backlog is expected to be realized as sales in fiscal 1996.
Competition: The Company faces competition from domestic and foreign producers. Principal competitive methods include price, delivery schedule, quality, and product performance.
Risks and Contingencies:
- Raw Materials: The Company does not foresee unavailability of materials that would materially affect operations.
- Intellectual Property: While the Company holds numerous patents and trademarks, the loss of any single one is not expected to materially affect any segment.
- Legal Proceedings: No material pending legal proceedings were reported.
- Environmental: The Company believes it is in substantial compliance with environmental laws and does not anticipate material effects on future capital expenditures or earnings.
Investor Verification Checklist
- Verify the specific revenue, net income, and cash flow figures in the 1995 Annual Report to Stockholders (pages 16-18), as they are incorporated by reference in this filing.
- Review the "Industry Segment Information" on page 21 of the 1995 Annual Report for detailed financial performance by product group and non-U.S. operations.
- Confirm the details of the "Five-Year Financial Review" on page 15 of the 1995 Annual Report for historical trend analysis.
- Assess the impact of the $12 million capital expenditure on future depreciation and cash flow requirements.
- Monitor the realization of the $80.5 million backlog in fiscal 1996 to validate sales projections.