Standex International (SXI) 5 Feb 212021 Q2 Earnings call transcript

Good morning, and welcome to the Standex Second Quarter 2021 Financial Results Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Gary Farber of Affinity Growth Advisors. ahead. go Please

refer and accompanying Operator, Investor estimates, that are predictions, subject cause and that Please that www.standex.com. note portion and X. to on harbor Thank call remarks good Matters can on presentation Please actual conference at statements. website management's could the the Standex's be the safe of statement differ management you, risks company's morning. to Standex Slide other found Relations materially. results discuss forward-looking will today's include expectations, statements to These uncertainties on

should annual other XX-K, You refer announcements of on to and filings recent Standex's for as report well factors. detailed list most risk as public a Form SEC

to interest, interest the earnings accounting, EBITDA, measures which like purchase expenses, is earnings taxes, restructuring, EBIT and EBIT, is and and before and EBITDA items, non-GAAP margin. addition, related excluding today's you adjusted restructuring, depreciation In items, I'd EBITDA references to margin EBITDA adjusted EBITDA, of one-time accounting, before and one-time is EBIT, remind purchase excluding taxes, include which adjusted amortization, acquisition-related expenses, is that acquisition which discussion will which

These adjusted also earnings operating adjusted accordance with performance. an other to historical that generally consistent intended serve believes will additional measures, income, the non-GAAP operating cash to operations, non-GAAP free principles operations, to provided as accounting are of forma margin, company's We income and debt-to-EBITDA. adjusted per measures in in complement comparison measurement, pro from financial net provides States. the a including accepted net information such Standex United continuing refer from adjusted income net adjusted share, and flow, results

Executive Dunbar; is Officer President and Chief Officer, Sarcevic. Ademir On the Financial Standex's Chairman, call David today and Treasurer, and Chief

then our on our review our position. trends will in to consolidated XXXX results are we Thank and performance outlook. financial will commentary seeing call. our follow provide call, second Ademir with welcome quarter Gary. and Good morning, of businesses. results conference discussion our and On will and today's fiscal I I you, segment the a

the we Finally, introducing on and comments I will today, conclude term with with conclude are takeaways. financial longer framework

at grow related XXXX. to approximately to believe continued a previously productivity, cost a to COVID Engraving improved can everyone discuss segments year-on-year, be to double-digit At demand Scientific semiconductor fiscal electric margin XX% storage. nearly now in basis vaccine half margin is fiscal COVID by range results. revenue year-on-year XX% indicated year-on-year to higher segment, Electronics, growth, actions. our We and sequentially. increase, key pleased organic had our and while revenue appliances, automotive, reflected quarter Engraving very segment equipment. points We're second of demand $XX for driven will general storage messages, in second At likely the XXX We with revenue growth our with million themes of at and at the rate, geographic I with quarter positive sequentially, Scientific increase, if Now, X, turn end results. mix, and strong due Slide solid $XX million the Electronics improved trends vehicles, favorable that

for Looking outlook. trends, exited We XXXX. forward, that's in our never condition, better fiscal second quarter been with us portfolio several and reflected in the positioning has in well half our stronger positive second a

end Specialty and the market increase. Electronics the Solutions. year reflected strength XX% an under recovery realizable one This backlog was segments, $XXX and approximately of quarter, the total sequential second that's approximately the Our million at Scientific gradual on

with engaged on actively emerging and also markets, end in global are vehicles, our renewable energy, customers opportunities such electric We as XG.

leveraging and its are markets. base of our effectively ahead is we plan, Electronics Remco and of integration the customer addition, complimentary In initial end

our saw on progress productivity finance We initiatives. continued and also

manufacturing actions, in additional segment, while and annual track which with Electronics fiscal once on the over over to productivity will the or choice efficiency rhodium two us are will At which rhodium provide we materials, with from also and million addressing into allow price next for actions term, a opportunity cost $X are XXXX. are the in offer we further in implementing rhodium our heading to XXXX are customers We years, implementing of for processes material savings initiatives, near removing exposure all. new switches other fiscal and inflation inflation

in expense XXX rate year-on-year previously points and and reduction resulted basis announced in second approximate an tax reduction interest in quarter fiscal rate XXXX. our Finally, initiatives, interest in XX% tax expense, of

providing generated flexibility strong our profile conversion flow of growth fiscal the quarter. of flow And in achieved first half free second to the portfolio our have cash organic financial pursue in and XXXX, million significant inorganic through XX% of income cash We free strengthened rate. to also We the quarter, further opportunities. net $XX

market, quarter also we automotive, repatriation approximately particular, quarter, repatriated portfolio X. positive $XX.X and have trends reflects reflecting X, Technologies compared million, broad-based for decline million vehicle the foreign supported Scientific, track in and equipment is approximately growth Slide net relays, approximately revenue Electronics, planar return and XXXX During position geographic of announced increase ratio debt million Solutions with of in general revenue including sequential growth on our growing to improvement, and Engineering in Remco In $XX in revenue sequentially, $X revenue recovery, million, and growth projects, are and begin year-on-year. million to Engraving a XX.X% or second the Organic segment we revenue and sequentially timing or in income reflected contribution In recent with quarter, contributed our Please appliances, performance, increased electric organic regard in vehicles, content operating financial acquisition, the initiatives, our mix $XXX from and a with quarter shown fiscal The available XX%. with Slide to leverage, This starting Remco, to geographic to level, times, discuss year-on-year. to Electronics offset and target markets. fiscal margin ended million Specialty year-on-year quarter quarter fiscal with to fourth but approximately outlook, quarter, to I growth productivity $XX.X approximately to the expect million segments. both second semiconductor year-on-year material both of XX.X% to end segment $X.X expected will XXXX growth, profit Electronics. results. turn transformers, XXXX. at third revenue by of electric operating XXXX, In approximately contribution fiscal moderate a a a previously incremental in the by X.X also liquidity. we We coolant EBITDA as picture $XX from charging adjusted the from subsidiaries, operating partially Electronics achieve associated revenue sensors. increased raw sequential prices. our and increased on revenue

$XX new we range Our to Sequentially, expect operating broad of is business deliver across revenue Electronics funnel a margin. and increase opportunity has to in of sales $XX markets, third XXXX. in expected increased a fiscal incremental moderate and million million quarter, the in

well further expect switch electric transportation relays in and We recovery as for markets. growth end demand in as energy vehicle reed in renewable applications,

XXX X year-over-year productivity a tool Engraving the improved approximately our to million, healthy, income increasing partially exchange, And approximately excluding focused $XX X.X%, actions. fiscal decrease. with of and near by backlog billion. Laser Slide economic year, finishing. for Laneway on Revenue of XX.X%, backlog in decreased year-over-year the and X% $XX.X operating or favorable or and margin discussion million, turn Engraving to a under foreign results impact in cost productivity and to The end million COVID-XX the sequentially and Sequentially, operating was the XX% second X% savings our to sales geographic reflecting quarter. Our basis under is approximately quarter. sequentially X% $X.X and reflected segment. markets, Please software realizable term mitigated increased expense revenue mix very around $XX.X tools, increased points just

high global and As slowed slight have left, a global software, and fiscal all revenue in further a of restrictions, at heart reflecting innovated while customer us Sequentially, our businesses, approval to maintaining customer allowing high further operating margin definition in engagement. we year-on-year. collaboration and and was we to engagement our the we model restrictions. given quarter customer fourth design of an remote quarter, enable travel sequentially created design customer travel geographic XD is process, increase Engraving, degree moderate the expect design to our timing. and have pandemic. project cameras and process decline expect margin mix By client and operating the fiscal process, the decline, by a highlighted due approvals, In in a the we related Intensive despite in our third revenue XXXX, and intimacy utilizing COVID of the restrictions to

reflects with the investments increased of trends demand Scientific medical $XX.X second third quarter XX% for balanced moderate we with quarter Sequentially, volume quarter, storage. the segment fiscal to reflecting largely This under year-on-year to associated The million, operating sequentially, balanced increased chains XXXX. approximately increase growth retail reinvestment at X, realizable storage and growth vaccine pharmaceutical R&D vaccine volume business with support the Operating and XXXX. a margin year, growth Slide to by the due X.X% to the segment’s year-on-year to a expect slightly in to COVID Turning ahead Scientific be companies, fiscal XX.X% demand, driven it a $X.X increased for income COVID-XX increase to positive revenue or continued backlog opportunity. much million to fiscal and segment. first of opportunities. in $X distribution strong million, in compared revenue

high fiscal come million indicated We in million to at to vaccine $XX end demand previously in range the sales expect COVID of storage our XXXX. $XX

income, Engineering and revenue the $XX.X decreased million XX.X%, year-over-year $X.X million respectively. X, on to and operating a basis, and Engineering Technology Turning on Technologies to approximately Slide XX.X%, segment

mix result fiscal seeing, growth. the income points first operating economic on we the a Besides aviation COVID-XX On positioned and reflected revenue sequential markets segment as are to early operating product market, basis, expected, increased approximately market engine ongoing for on and impact level also basis manufacturing. a continued space actions. we XXX As stages well our commercial a the are parts and margin our of decrease aviation in end productivity XXXX, quarter of that revenue the similar of especially recovery

markets. on also of in a expect market. In the moderate In space addition support to in to NASA significant and sequential early have the the we primarily third launch stages opportunities commercial end we fiscal a revenue, basis, government recovery national in increase quarter, aviation due projected commercial to security, forecasts

million $X.X turn We Specialty expect a Solutions, $XX.X business, productivity operating mix initiatives. year-on-year income partially X, revenue by to second to lower margin a margin On offset Slide to basis, be sales million, Please year-over-year quarter, higher of XX.X% the operating decreased due at XX% or Specialty to with decrease. sequentially to engine similar parts Solutions. approximately

reflecting who XXXX, manufacturing the equipment As and moderate XX% also we on call recovery increased Sequentially, approximately increase standpoint, revenue capacity greater revenue investment the operating year, economic service roads impact and refuse third is increased a and income from discuss over and infrastructure increasing COVID-XX expect fiscal a with potential on expected, hydraulics in bill, trends this toward food in with food results shifting Ademir, gradual industry year-on-year. turn I'll aftermarket under of beneficiary bridges. outlook, in recovery QX markets. realizable decline operating continues our a a reflecting margin sequential end in higher XX%, in our million a revenue markets. service our and reflected to a quarterly refuse our emphasis in aftermarket the end detail. segment’s opportunities, hydraulics backlog compared quarter, From ongoing Supporting potential markets. strong pandemic to now margin, the order in the sequentially or will this The business strategy fiscal $X.X

Thank you, good and everyone. David, morning,

our results. provide fiscal several the financial XXXX realized improvement on We quarter. I few key will sequential First, from takeaways fronts during quarter a second

we reporting four First, our of revenue five material sequentially, segments. standpoint, costs, in actions, in segments, a adjusted our and revenue by out our third expect in Engraving, From Electronics, increase growth Scientific the revenue impact quarter at raw Electronics margin also primarily partially improved margin productivity continued rise of continue and to growth, efficiency and at EBIT segment. cost reflecting the offset

fiscal continue million over cost efforts productivity to actions. and our our of in announced are to focus related to savings track actions, on We X previously realize ‘XX on

interest expense we addition, national flow free rate, profile and the strengthened to In focused cash on reduced tax initiatives cash repatriation. further generation, up and continued

XXXX. to quarter. net the also generated half fiscal approximately first free the million rate approximately cash of flow of We XX free in cash We second conversion had income flow XX% to

Slide and of to foreign increase increased recent it Remco X.X% sequentially. to turn X, by Year-on-year summary. much our impact let's a exchange, reflected contribution acquisition On revenue basis, consolidated second Organic X.X% of quarter year-on-year, Now, COVID-XX. of offset revenue from revenue XXXX due the statement impact income X.X% the partially total year-on-year, declined the economic pandemic. and

was to weakness due COVID-XX and evident most at Specialty service the food and to market aviation in in end weakness Technology As the we economic equipment the impact hospitality due expected, segment, segment, industries. Engineering Solutions the

exchange Our recent Remco revenue basis. impact, on offset $X consolidated decline contributed million decline. acquisition and revenue, revenue to or the approximately a foreign offset in Remco organic the organic X.X%

offset and year-on-year, interest On costs, basis impact expense decreased addition, of to material productivity by actions. basis, a COVID-XX declined EBIT increase rate Interest EBIT our XX.X%. fixed increases adjusted rate year-on-year sequential X% as variable margin and XX overall due research the increased due decline XX growth. primarily economic to In pandemic, On previously a to This was and swaps. development approximately raw XX% FX implemented contributed revenue a to cost points increased result basis in adjusted points. initiatives, year-on-year lower of basis, margin by primarily to the

rate due implement we tax earlier quarter XX.X% strategies our to the year. second the various optimization fiscal of largely was tax addition, in of In in XXXX, began to

we low to the tax continue quarter, the was second of range in the quarter $X.XX XX% XXXX, rate in fiscal a XXXX. expect and For tax assumes free approximately of ‘XX rate. turn XX, year $X.XX to cash the in Adjusted in share quarter a range to a rate ’XX, Please compared earnings a second per Slide third tax XX% fourth flow. This quarter ago. mid-XX% in the

working $XX We of of pension cash quarter to we income over million conversion flow cash increase X.X inclusive to second continue as to solid XXX% quarter. payment, This free generate reported by consistently free of a sheet in of million balance reflected the $X delevered flow, million We cash in compared year approximately ago. free performance, $X.X million, the capital net with ’XX. a flow the

Standex million turn capitalization at strong. Next, end statistics, which a Slide and remain of had XX, liquidity $XX.X consisted subs. approximately $XXX approximately $XXX end and primarily of September. long-term compared structure $XXX.X Net debt debt the the million of foreign equivalents of by debt cash please of summary quarter for of held and Standex’s at the ‘XX to million of million, net with to $XX second December, million, of

times. debt was million approximately There's approximately ratio XX.X%. on was plan approximately a strength net of metrics. capital $X.X $XX fiscal adjusted $XX increased approximately in several at of shares ratio, the a Our to financial second million at evident perspective, interest XX.X remain left repurchased our with approximately approximately continue total repatriate key coverage ratio second at The cash, with of We debt XX,XXX quarter, X.X net during leverage From Standex current end the capital had of sequentially quarter. we the approximately EBITDA for available to We $XXX liquidity to on allocation million of the the authorization. end million. repatriate $XX million remaining our quarter, repurchase to to and repatriated ’XX. company's

We of also cash consecutive in $X.XX. dividend XXXth quarterly XX declared January a

million. $XX the discuss be million and to expect framework fiscal term Finally, to continue longer capital to to to David I closing approximately $XX between over call comments. turn now financial XXXX expenditures we will our

turn financial introducing of Thank can the Slide you, targets a we're everyone Ademir. today. XX for to If please discussion

margin value high we propositions. growth Over markets with around have businesses and strong transformed quality well customer end our as profiles, the and as attractive years, meaningfully past few portfolio

of to position. a changes, three result been a our is now to better believe is in outlook. financial has that a these portfolio never We As it term, year, substantial appropriate provide longer five

we consolidated digit growth annual are mid-single basis. organic a Specifically, compound targeting on revenue

a Our outlook assumes recovery. continued macroeconomic

energy, as Our well areas electric such vehicles, smart are commercialization, renewable exciting space businesses XG. vaccine grid, storage, to in grow and positioned

product in Electronics, segments. have business, an for new process and active also development Engraving particularly We Scientific,

operating a XX.X% We and rising ongoing in compared continued business leverage standardize across by further believe XXXX. operational to structure. free to achievable actions capital new cost cash our given productivity units, excellence excess are of reported highlight margin under fully focus. conversion initiatives address processes Electronics include, XX% to particularly discipline improving of raw these material assumptions, prices, implementing position A to the in fiscal We targeting ratio continuing working G&A flow to our we our an adjusted EBITDA few manufacturing XXX% is

return turn Finally, to with our disciplined it capital Please and is invested that performance we expectation Slide capital above increase on allocation, this XX. financial will our to XX%.

to illustrated in our continue on discipline this as will exercise process, capital We allocation page.

internal increased investments hurdle our to recently have We over IRR. growth for XX%

an takeaways. addition, for to basis. on shares to XX will Slide Please turn our back buy In continue we key opportunistic some

expect in improvement second to fiscal well XXXX quarter of for fiscal XXXX, margin XXXX. results, stronger operating are second We half positioned a moderate revenue a quarter fiscal compared and and third

a reflecting as meaningfully and We businesses propositions. customer our well growth value as margin also provided outlook longer-term portfolio, around focus strong end financial market with attractive profiles, today, transformed and

growth of be an us financial and flexibility opportunities. allows inorganic substantial with Our active to pipeline opportunistic, organic

ongoing open performance. financial for and provide Operator, opportunity now transfer further leverage these the efficiency Our questions. I'll into productivity to line initiatives,

[Operator We Please Research. question Instructions] The from go Chris will of now begin session. the ahead. question-and-answer first Howe Barrington comes

growth you've million, of end the Ademir, $XX near incremental incremental as Thanks. contribution follow again any Of and and segment, contribution, sure range. for the look is, mentioned million incremental we segment. as can revenue to for a Scientific at for up if this and opportunities Good in, high talk not XX in but start that morning, remaining quarter. And congrats David about the consistent you're it to Wanted that likelihood revenue? Scientific with to coming that relates margin the COVID-XX I'm of at on R&D reinvesting and the you with, opportunities before, it mentioned pricing you the a margin

Okay.

for similar, we already sell. So the identical if that the models cabinets very are these question, not are to some margin, first

the with bit. that So Obviously, our costs to be margins leverage business. of with fixed are we consistent the a volume, going historic margins

pick new So, on, year some announcing up about R&D, question we'd as I some rolls see the The we be will think products. there.

get categories our We in products have product very into we'll products to new core are to releasing business. very active close be a adjacent some the pipeline, new and and those that

pricing approach of takes Every of terms where a relative product In take business we the our kind pricing. very to at thoughtful to a model, fits look competition.

have We price value a good to relationship.

dynamic volume somewhat are delivery right in get of high our to comes and quickly, considerations. it pricing need they shorter call something sometimes we If very customers priced for need delivery. now when parts or We

a another a into the relative works to Specialty timing scenario, how And great. in recovery. you gradual on would end regard markets, as Solutions, mentioned QX, I That's we perhaps come Solutions the and say Specialty out full expect in versus end we're your let's within In question reopening had, you to demand a back look fiscal recovery? there's market

early end November, the year, by and Well affect service and return or December, And of would calendar year food working year, calendar of end our businesses well two to reopening reopening would end next has pre-COVID of that calendar follow. QX levels most that to assumption them. kind dramatically food markets. - And our those those equipment are tied is businesses of the been equipment the so underway this markets

levels just to which pre-COVID the it already? Now, business, within is back also hydraulics

kind more by project of time fiscal pre-COVID that that business around, of there. or less that getting be is where will The to back end our comes It's we levels. the - QX the QX

the half half about specialty, food equipment businesses. of service the that's of So other

something news inorganic of low assuming or it's high Okay. the outlook, perhaps the five-year this period on potentially, of three growth plan, to and in during more growth whether teens organic lastly, because to time nature be tuck a the depending rates additive, meaningful. And long-term good to push I'm will

Yes. Exactly right.

of it If ago made our was we gave inorganic impossible several sales to what would years when numbers like we be, an predict. but you estimate - guidance this,

just would inorganic So absolutely of top it and on out, took Any right. number. we you're activity be that

And and a pretty as we react balance sheet attractive to on you ability know, quickly inorganic strong opportunities. have Chris,

to So, continue we to active. remain project

in I insured seems Thanks of the Yes. There to businesses. these have. not what I Yes. there targets, the I a existing years questions. kind I That’s framework these saying into will, consideration. be - surrounding there of assume, large additional even the was are to was taking term And portfolio could, longer that's my because many taking for targets, simplified under be all more upside come.

The McGinnis next Chris Please question & Company. from go Sidoti comes ahead. of

my taking for to quarter. guess and on questions just Thanks nice I that. up morning. Good follow

the what out Thanks. Just, seeing picking at the pandemic how you're changed through up can the you maybe valuations? they've Are about there you in point, talk they and see M&A opportunities or outlook this

of we past, our the a been many, we've to of And of privately the meetings. Well, - pipeline, other, just many relationship getting in those calls contexts, phone have series each lot and a companies, done that know very part and deals often years building, product and a not process. have the held of are have of a active been

of say the in owners going to the we what's as year, been ever. going a our in on on economy are last as to taking I lot the want develops. see - terms hold as would say how of place hard and kind put would wait on space, those multiples, in thought it's of because deals So be actively with have

don't So, a on have I multiple I changes. perspective guess

Sure.

that the Okay, just business, to I just I COVID. my wasn't I specific had that for And that. guess around product you as just talk of - clarification, piece appreciate COVID. the Scientific about you thought the then

a a on Thanks. when it you just previous for was vaccines flu that bit? product I a thought calls. was Could new expand that is were in - So more or? you little that talking offering

we for cabinets lot or But for five were plus flu Well, cabinets, think degree and same season. COVID the where had the summer there just last XX we summer of a real people in they're And a storage ramp sell they're in the are for we that in get up I there's the production degree. cases the I reporting, press different, the got but storage been minus orders warehouses, a slightly requirements some we storage traditional but of - shouldn't minus confused, minus facilities, was XX, that much ultra confused, for and so vaccine, low large coverage and distribution. of say lot Pfizer temperature their degree, XX

And But so everybody tended mile to think, minus last is the delivery. XX. Oh, COVID XX, vaccine in of storage minus play we equals where

put So offices pharmacies, that plus the get five. minus are cabinets doctors’ into and XX degrees,

degree So the these be minus can of minus plus XX containers, before it it and it's even gets several for taken administered. Pfizer put days refrigerator or transportation five freezer vaccine, out a or in XX

selling the essentially So that selling - flu storage, for seasonal for storage. are products bulk the product flu COVID we're we've of are vaccine the same been

I it. wasn't of that. clarification. appreciate that I aware for Thanks

appreciate So that. I

that come seeing all good business, just side, the maybe just the kind engineering in you're outlook little that just commercial it’s markets, that's you given space kind just that about highlight that the bit. taking and you fairing? talk growth sounds to market? action Thanks. it a with of place Can of how the Just, like the back starting also on seems Can

activity new example, same that putting space number space for domes the commercial ventures everything in for Amazon to the satellites, We to the the virtually that network year mean, follow this. I for for And five activity the years, in next there our our the rockets. in, - market see kind will have And years. great tanks have will double secret, launches. mid-XXs demand the of sales over of our space how five Yes, lot on the and of of quantify large launches, NASA’s add like year Billerica XX trajectory. been a and next a The years, space, traditional for we their in out and planning the many end position was if to up take you no the over products, plant with that

And so, we see that.

thinking just need to And doubling about or support growth, I guess Billerica can almost you that invest effect? a expand accommodate and to and would handle it,

would But be It We hit. different have make would some there additional when depends investment. yes, to those projects some on investments.

in And it in then get out, would current I on - with just what know number? be of just how great. margin Okay, can but getting portfolio, that range, a drivers high to - and that the just, EBITDA to the higher end you the main put XX% you maybe

Well, we're consistently very it's XX% big a let's our get look so the saying, It EBIT Electronics, first, XX because you I no competent. mean, at businesses. well, secret. is XX% business. first,

you few of the is there. mid-XXs. you're (door) low (door), So Engravings in to a Scientific. the have XX% EBIT, points

place the our next grow, rhodium for and once behind they is, all we businesses, will five G&A to group in next as and some in they're get back the years, so we over those infrastructure of XX% closely your So the very exciting predictability improve couple in issue obviously can - already that Engraving put coming which us above so where working But we're with three from. path to Jim where this And efficient there. on more to of with is the Hooven I office labor the kind put the understand efficiency, coming starting years. over question consistency become is

said, power years. us a XX. got he EBITDA. EBITDA. couple Roger, will the here, I of which And the up XX% after you there that - came certainly raised recall, We to And when XX% it I target to We from that picked so then

basically We’re there now.

So we performance continually raise these dictates. targets as matures the our and business

luck and in QX, quarter. on for the taking questions. job thanks No, great Good my

Securities. Please Chris comes of CJS Moore The from next question ahead. go

million in savings for, half was Good roughly track of of morning, recognized of year? in the on the how guys. that kind The first much X that you're

Yes, Chris.

most that kind be sort of year. previously, as of most quarters first of think - of would three readout the we've fiscal I said of this

So that I $X first six recognized million two would probably tell already. months, been thirds you within has maybe the of

there. already for Talking three a the lot to clearer operating is margin. little Electronics now? a Got Engraving XX% Scientific right is the Or for path Safe quicker it. XX% to than segments, Thanks. about say that probably Potential now?

I what and primarily around they wouldn't I think practices has to it’s Engraving team a need do, labor the clear - say consistently world. and the driving idea their best efficiency

that it's rhodium. So, on more with single Electronics, one item of focused

more in it's a way. maybe little simple that So

Got much point And auto you in at Electronics EV just opportunity me, Electronics, how within time? remind it. this in can roughly is the of

through into in XX%, sell Total our last of quarter, goes we in low the sensors EV auto sales the million what applications distribution. $X kind was about is and And business. between example, this that for

it's So number content I it's current applications at twice our is huge on for the traditional vehicles about a beyond combustion that And we're that. and now, pursuing additional growing look not content on, increase engine compared some the vehicle. there's content that - those to our but fast. you projections vehicles, electric mean, could we're a

though even healthy a Electronics number, So years. it's portion a of that see the it the provides five small next relatively in growth will

Fiscal shape. talking way you Got segments, the Big very appears about, Electronics from away. to we're in ‘XX, it. when a picture, to That's helpful. look good long obviously what be

the down. ‘XX. refrigeration are like Specialty there and going as COVID COVID in the course you Of would Scientific, ETG take certainly and seems one margin that to winds put and revenue helped be be standpoint, had sales it

into So thoughts I revenue you thoughts any continuing terms of that COVID any guess do or have the question ‘XX there? in is,

Yes.

adding We storage. pharmacies clinics, offices, - some - is put around number, that we America, storage communication retail in million of that being And unit. XX,XXX sites many about about tell on know based estimated I just That you the those upper we million. estimated this. XXX,XXX one-third a there's million are end share those numbers When to we about that would what kind with of to our would would $XX - segments. outfit of the XX,XXX how facilities. it was that the pharmacies first urgent pace market towards hospitals, to in And $XX be on anticipate care our XX physicians’ So be of the numbers

continued a new pharmacies urgent build So into be, of And fiscal the would out us of the we in care? for clinics into it's, there to last distribution year, will that and question and premature then mile vaccine summer be remaining and once our frankly, say. the get

helpful. in jump Got guys. line. I'll Very Thanks back it.

I closing session. any Dunbar turn like over David question-and-answer conference to our concludes the This for would remarks. to back

to progress closing, support. years. of we’ve you discuss and second our interest to expect at in employees. day, continued your outlook continued fiscal everyone quarter today this in accomplished to and work Last on want in with for and Thank together, get thank In least, the results past the again a XXXX our quarter. not company. and thank all to shareholders second fiscal half few for opportunity every improvement their And the made us in transform to we up and call. you. you forward We thank accomplishments I transformation second pleasure I the Standex look in our It's Long-term want of our our I you. with significant third speaking quarter, allowing fiscal solid XXXX. reflective the of Thank Standex is fiscal

The concluded. presentation. Thank for attending conference has today's you now

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