Business Context and Reporting Period
Company: Standex International Corp.
Filing Type: Form 10-K (Annual Report)
Reporting Period: Fiscal year ended June 30, 1996
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, 1996, the Company employed approximately 4,800 people and operated 85 principal plants and warehouses globally, with 48 owned and 37 leased. International operations are conducted at 33 plants, primarily in Western Europe.
Key Financial Metrics
Note: Specific revenue, net income, cash flow, and debt figures are incorporated by reference to the 1996 Annual Report to Stockholders (pages 15-24) and are not explicitly stated in the provided text.
- Backlog (in thousands): Total backlog was $68,787 at June 30, 1996, compared to $74,905 in 1995.
- Capital Expenditures: The Company invested $15,328,000 in new plant and equipment during fiscal 1996.
- Allowance for Doubtful Accounts: Ended the year at $2,666,005 (down from $2,853,681 in 1995).
- Market Data: Aggregate market value of voting stock held by non-affiliates was approximately $374.3 million as of July 31, 1996. Shares outstanding were 13,375,034 as of September 9, 1996.
Material Changes vs. Prior Period
- Backlog Decline: Total backlog decreased by approximately $6.1 million (8.2%) from 1995 to 1996.
- Graphics/Mail Order: Increased from $8,238 to $8,966 (in thousands).
- Institutional: Decreased from $33,516 to $27,799 (in thousands).
- Industrial: Decreased from $33,151 to $32,022 (in thousands).
- Leadership Transition: Edward J. Trainor became Chief Executive Officer in July 1995, succeeding Thomas L. King, who became Chairman of the Board.
- Facility Investment: Significant capital investment of over $15 million was made to upgrade facilities for competitiveness.
Outlook, Risks, and Management Commentary
- Backlog Realization: Substantially all of the 1996 backlog is expected to be realized as sales in fiscal 1997.
- 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 on availability 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.
- Legal and Environmental: No material pending legal proceedings. The Company believes it is in substantial compliance with environmental laws, with no anticipated material effect on future capital expenditures or earnings.
- R&D: Research and development expenditures are not 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 15-24 of the 1996 Annual Report), as these are not detailed in the 10-K text provided.
- Review the "Industry Segment Information" (page 21 of the 1996 Annual Report) for detailed financial performance of the Graphics/Mail Order, Institutional, and Industrial segments.
- Confirm the impact of the $15.3 million capital expenditure on future depreciation and cash flow.
- Monitor the realization of the $68.8 million backlog in fiscal 1997 to assess revenue stability.
- Check the 1996 Proxy Statement for details on executive compensation and security ownership.