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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended June 30, 1998 Commission File Number 1-7233
STANDEX INTERNATIONAL CORPORATION
(Exact name of Registrant as specified in its Charter)
DELAWARE 31-0596149
(State of incorporation) (I.R.S. Employer Identification No.)
6 MANOR PARKWAY, SALEM, NEW HAMPSHIRE 03079
(Address of principal executive office) (Zip Code)
(603) 893-9701
(Registrant's telephone number, including area code)
SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE
SECURITIES EXCHANGE ACT OF 1934:
Title of Each Class Name of Each Exchange on Which Registered
Common Stock, Par Value $1.50 Per Share New York Stock Exchange
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. YES X NO
Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein and will not be contained, to the
best of Registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to
this Form 10-K. [ ]
The aggregate market value of the voting and non-voting common equity held
by non-affiliates of the Registrant at the close of business on July 31, 1998
was approximately $341,124,000. Registrant's closing price as reported on the
New York Stock Exchange for July 31, 1998 was $28.00 per share.
The number of shares of Registrant's Common Stock outstanding on September
9, 1998 was 13,042,305.
Portions of the 1998 Annual Report to Stockholders of Registrant are
incorporated in Parts I, II and IV of this report. Portions of the Proxy
Statement and Proxy Supplement of Registrant dated September 18, 1998 are
incorporated in Part III of this report.
PART I
ITEM 1. BUSINESS
Standex1 is a diversified manufacturing and marketing company with
operations in three product segments: Food Service, Industrial and Consumer.
Standex was incorporated in 1975 and is the successor of a corporation
organized in 1955.
1 References in this Annual Report on Form 10-K to "Standex" or the "Company"
shall mean Standex International Corporation and its subsidiaries.
The business of the Company is carried on within the three segments by a
number of operating units, each with its own organization. The management of
each operating unit has responsibility for product development, manufacturing,
marketing and for achieving a return on investment in accordance with the
standards established by Standex. Overall supervision, coordination and
financial control are maintained by the executive staff from its corporate
headquarters located at 6 Manor Parkway, Salem, New Hampshire. As of June 30,
1998, the Company had approximately 5,500 employees.
The principal products produced and services rendered by each of the
segments of Standex are incorporated herein by reference to pages 4 through 15
of the Annual Report to Stockholders for the fiscal year ended June 30, 1998
(the "1998 Annual Report"). Sales are made both directly to customers and by
or through manufacturers representatives, dealers and distributors.
The major markets for the Company's products and services are as follows:
Food Service Products
. Master-Bilt(R) refrigerated cabinets, cases, display units, modular
structures, coolers and freezers; Barbecue King(R) and BKI(R) commercial
cook and hold units, rotisseries, pressure fryers, ovens and baking
equipment; and Federal Industries bakery and deli heated and refrigerated
display cases for hospitals, schools, fast food industry, restaurants,
hotels, clubs, supermarkets, bakeries, convenience stores and delicatessens.
. USECO food service equipment and patient feeding systems for hospitals,
schools, nursing homes, correctional facilities and restaurants.
. Procon(R) rotary vane pumps for the carbonated beverage industry (including
espresso coffee machine markets), water purification industry and coolant
recirculation systems.
Industrial Products
. Wire-O(R) machinery and complete binding system for printers, publishers and
binders of checkbooks, calendars, diaries, appointment books, cookbooks,
catalogs and manuals.
. Jarvis, Can-Am Casters and WheelsTM and PEMCO(R) casters and wheels and
industrial hardware for general industry, hospitals, supermarkets, hotels and
restaurants.
. Roehlen(R) embossing rolls, texturizing systems, machines and plates; Mold-
Tech(R) mold engraving; Keller-Dorian print rolls and calendering equipment;
Mullen(R) Burst Testers; Perkins converting and finishing machinery and
systems for general industry (e.g., automotive, plastics, textiles, paper,
building products, synthetic materials, OEMs, converting, textile and paper
industry, computer, housewares and construction industries).
. Spincraft(R) power metal spinning, custom formed components for aircraft
engines, space launch vehicles, gas turbines, nuclear reactors, military
ordnance, commercial satellites and similar products for OEMs, U.S.
Government, energy, aircraft, aerospace and commercial satellite industry and
commercial industries.
. Custom Hoists single and double acting telescopic and piston rod hydraulic
cylinders for dump trucks and trailers used in the construction and waste
hauling industries.
. Standex Electronics reed switches, electrical connectors, sensors, toroids
and relays, fixed and variable inductors and electronic assemblies, fluid
sensors and tunable inductors for telecommunications, consumer electronics,
automotive, security systems, communications equipment, computers, air
conditioning and refrigeration industries.
Consumer Products
. Standard Publishing(R) commercial printing for general commerce and industry.
Publishing and marketing of religious periodicals, curricula, Sunday school
literature, children's books and supplies for Sunday schools, churches,
vacation Bible schools and Christian bookstores.
. Berean(R) Christian Stores a chain of 23 Berean(R) Christian bookstores which
serve as distribution centers and retail outlets for religious books and
merchandise.
. Snappy(R), ACME and ALCO metal ducting and fittings for heating, ventilating
and air conditioning distributors throughout the continental United States.
. Frank Lewis(R) Grapefruit Club gift packages, Red CooperR fresh grapefruit,
Harry's Crestview Groves(R) grapefruit packages, grapefruit juice, grapefruit
sections, onions, melons and roses; Salsa Express(R) salsas and other related
food products; The Vidalia(R)2 Onion Store Vidalia(R)2 onions for mail order
consumer direct sales.
. Williams chiropractic and traction tables and electrotherapy and ultrasound
equipment (Zenith(R), CombiTM and Intertron(R) brands) for chiropractors and
physical therapists.
. National Metal fabricated metal products including Christmas tree stands,
specialty hardware and metal furniture for the food service industry, retail
stores, office furniture markets, stationary supply houses and other
industries.
Financial information on each of the product groups of Standex as well as
financial information of non-U.S. operations is incorporated by reference to
2 A registered trademark of the Georgia Department of Agriculture
the note to the consolidated financial statements entitled Industry Segment
Information on page 24 of the 1998 Annual Report.
Raw Materials
Raw materials and components necessary for the fabrication of products
and the rendering of services for the Company are generally available from
numerous sources. The Company does not foresee any unavailability of materials
or components which would have any material adverse effect on its overall
business, or any of its business segments, in the near term.
Patents and Trademarks
The Company owns or is licensed under a number of patents and trademarks
in each of its product groups. However, the loss of any single patent or
trademark would not, in the opinion of the Company, materially affect any
segment or the overall business.
Backlog
Backlog orders believed to be firm at June 30, 1998 and 1997 are as
follows (in thousands):
1998 1997
Food Service ................. $22,242 $21,886
Industrial ................... 68,726 48,064
Consumer ..................... 11,352 11,650
Total................... $102,320 $81,600
All but approximately $17,024,000 of the 1998 backlog, and $3,209,000 of
the 1997 backlog, was expected to be realized as sales in the following fiscal
year.
Competition
Standex manufactures and markets products many of which have achieved a
unique or leadership position in their market. However, the Company encounters
competition in varying degrees in all product groups and for each product line.
Competitors include domestic and foreign producers of the same and similar
products. The principal methods of competition are price, delivery schedule,
quality of services, product performance and other terms and conditions of
sale. During fiscal 1998, the Company invested $19,849,000 in new plant and
equipment in order to upgrade facilities to become more competitive in all
segments.
International Operations
Substantially all international operations of the Company are related to
domestic operations and are included in the Food Service and Industrial
business segments. International operations are conducted at 33 plants,
principally in Western Europe. The industry segment information regarding non-
U.S. operations on page 24 of the 1998 Annual Report is incorporated herein by
reference.
Research and Development
Due to the nature of the manufacturing operations of Standex and the
types of products manufactured, expenditures for research and development are
not material to any segment.
Environmental and Other Matters
To the best of its knowledge, the Company believes that it is presently
in substantial compliance with all existing applicable environmental laws and
does not anticipate that such compliance will have a material effect on its
future capital expenditures, earnings or competitive position.
ITEM 2. PROPERTIES
At June 30, 1998, Standex operated a total of 92 principal plants and
warehouses located through the United States, Western Europe, Canada,
Australia, Singapore and Mexico. The Company owned 51 of the facilities and
the balance were leased. In addition, the Company operated 23 retail stores in
various sections of the United States, of which all were leased. The
approximate building space utilized by each product group of Standex at June
30, 1998 is as follows (in thousands):
Area in Square Feet
Owned Leased
Food Service ....................... 679 394
Industrial ......................... 1,051 396
Consumer ........................... 1,511 491
General Corporate................... 29 -
Total......................... 3,270 1,281
In general, the buildings are in good condition, are considered to be
adequate for the uses to which they are being put and are in regular use.
The Company utilizes machinery and equipment which is necessary to
conduct its operations. Substantially all of such machinery and equipment is
owned by Standex.
ITEM 3. LEGAL PROCEEDINGS
There are no material pending legal proceedings.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE
OF SECURITY HOLDERS
No matters were submitted to stockholders during the fourth quarter of
the fiscal year.
EXECUTIVE OFFICERS OF STANDEX
Name Age Principal Occupation During the Past Five Years
Thomas L. King 68 Chairman of the Board of the Company since
January 1992; President of the Company from
August 1984 to July 1994; and Chief Executive
Officer of the Company from July 1985 to June
1995.
Edward J. Trainor 58 Chief Executive Officer of the Company since July
1995; President of the Company since July 1994;
Chief Operating Officer of the Company from July
1994 to June 1995; Vice President of the Company
from July 1992 to July 1994; and President of the
Standex Institutional Products Group of the
Company from February 1987 to July 1994.
David R. Crichton 60 Executive Vice President/Operations of the
Company since June 1989.
Thomas H. DeWitt 56 Executive Vice President/Administration of the
Company from January 1987 to December 1997; and
General Counsel of the Company from October 1985
to December 1997.
Lindsay M. Sedwick 63 Senior Vice President of Finance/CFO of the
Company from January 1996 to June 1998; Vice
President of the Company from January 1990 to
January 1996; and Treasurer of the Company from
January 1986 to June 1998.
Edward F. Paquette 62 Vice President/CFO of the Company since July
1998; Assistant to the President/CEO of the
Company from September 1997 to June 1998 and
prior thereto Partner of Deloitte & Touche LLP.
Robert R. Kettinger 56 Corporate Controller of the Company since July
1991.
Deborah A. Rosen 43 General Counsel of the Company since January
1998; Secretary of the Company since October
1997; Assistant General Counsel and Assistant
Secretary of the Company from January 1997 to
December 1997 and prior thereto Senior Corporate
Attorney and Assistant Secretary of the Company.
Richard H. Booth 51 Corporate Counsel of the Company from June 1992
to December 1997 and Secretary of the Company
from July 1992 to October 1997.
The executive officers are elected each year by the Board of Directors to
serve for one-year terms of office. There are no family relationships between
any of the directors or executive officers of the Company.
PART II
ITEM 5. MARKET FOR STANDEX COMMON STOCK
AND RELATED STOCKHOLDER MATTERS
The principal market in which the Common Stock of Standex is traded is
the New York Stock Exchange. The high and low sales prices for the Common
Stock on the New York Stock Exchange and the dividends paid per Common Share
for each quarter in the last two fiscal years are incorporated by reference to
page 18 of the 1998 Annual Report. The approximate number of stockholders of
record on September 9, 1998 was 3,500.
ITEM 6. SELECTED FINANCIAL DATA
Selected financial data for the five years ended June 30, 1998 is
incorporated by reference to the table entitled "Five-Year Financial Review" on
page 18 of the 1998 Annual Report. This summary should be read in conjunction
with the consolidated financial statements and related notes included in the
1998 Annual Report on pages 19 through 27.
ITEM 7. MANAGEMENT'S DISCUSSION
AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Management's discussion and analysis of financial condition and results
of operations of the Company is incorporated by reference to pages 16 and 17 of
the 1998 Annual Report.
ITEM 7A. QUANTITATIVE AND
QUALITATIVE DISCLOSURES
ABOUT MARKET RISK
The Company is exposed to a number of market risks, primarily the effects
of changes in foreign currency exchange rates and interest rates. Investments
in foreign subsidiaries and branches, and their resultant operations,
denominated in foreign currencies, create exposures to changes in exchange
rates. The Company's use of its bank credit agreements creates an exposure to
changes in interest rates. The effect of changes in exchange rates and
interest rates on the Company's earnings has been relatively insignificant
compared to other factors that also affect earnings, such as business unit
sales and operating margins. For more information on these market risks and
financial exposures, see the Notes to Consolidated Financial Statements on
pages 22 to 27 of the 1998 Annual Report. The Company does not hold or issue
financial instruments for trading, profit or speculative purposes.
Based on historical foreign currency rate movements and the fair value of
market-rate sensitive instruments at year-end, the Company does not believe
that near term changes in foreign currency or interest rates will have a
material impact on its future earnings, fair values or cash flows.
ITEM 8. FINANCIAL STATEMENTS
AND SUPPLEMENTARY DATA
The information required by this item is incorporated by reference to
pages 18 through 28 of the 1998 Annual Report.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH
ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
None
PART III
ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS
OF STANDEX
Certain information concerning the directors of the Company is
incorporated by reference to pages 2 through 5 and pages 14 and 19 of the Proxy
Statement of the Company, dated September 18, 1998 (the "1998 Proxy
Statement"). Certain information concerning the executive officers of the
Company is set forth in Part I under the caption "Executive Officers of
Standex."
ITEM 11. EXECUTIVE COMPENSATION
Information regarding executive compensation is incorporated by reference
to pages 9 through 14 of the 1998 Proxy Statement and pages 1 through 3 of the
1998 Proxy Supplement.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN
BENEFICIAL OWNERS AND MANAGEMENT
The stock ownership of each person known to Standex to be the beneficial
owner of more than 5% of its Common Stock and the stock ownership of all
directors and executive officers of Standex as a group are incorporated by
reference to pages 3 through 5 of the 1998 Proxy Statement. The beneficial
ownership of Standex Common Stock of all directors and executive officers of
the Company is incorporated by reference to pages 3 through 5 of the 1998 Proxy
Statement.
ITEM 13. CERTAIN RELATIONSHIPS AND
RELATED TRANSACTIONS
Information regarding certain relationships and related transactions is
incorporated by reference to page 14 of the 1998 Proxy Statement.
PART IV
ITEM 14. EXHIBITS, FINANCIAL STATEMENT
SCHEDULES, AND REPORTS ON FORM 8-K
(a) Financial Statements and Schedule
(i) The financial statements listed in the accompanying index to
financial Statements and Schedules are incorporated by
reference into this Item 14.
(ii) The financial statement schedule listed in the accompanying
index to the Consolidated Financial Statements and Schedule
is filed as part of this Annual Report on Consolidated Form
10-K.
(b) Reports on Form 8-K
Standex filed no reports on Form 8-K with the Securities and Exchange
Commission during the last quarter of the fiscal year ended June 30, 1998.
(c) Exhibits
3. (i) Restated Certificate of Incorporation of Standex,
dated October 16, 1986, is incorporated by reference
to the exhibits to the Quarterly Report of Standex on
Form 10-Q for the fiscal quarter ended December 31,
1986.
(ii) By-Laws of Standex, as amended, and restated on July
27, 1994 are incorporated by reference to the exhibits
to the Annual Report of Standex on Form 10-K for the
fiscal year ended June 30, 1994 (the "1994 10-K").
4. (a) Agreement of the Company, dated September 15, 1981, to
furnish a copy of any instrument with respect to
certain other long-term debt to the Securities and
Exchange Commission upon its request is incorporated by
reference to the exhibits to the Annual Report of
Standex on Form 10-K for the fiscal year ended June 30,
1981.
(b) Shareholder Rights Plan and Trust Indenture of the
Company is incorporated by reference to Amendment No. 1
to Form 8A filed with the Securities and Exchange
Commission on May 16, 1989 and the Form 8A filed with
the Securities and Exchange Commission on February 3,
1989.
10. (a) Employment Agreement, dated July 1, 1988, between the
Company and Thomas L. King is incorporated by
reference to the exhibits to the Annual Report of
Standex on Form 10-K for the fiscal year ended June
30, 1988 (the "1988 10-K") and Agreement to Amend
Employment Agreement dated September 18, 1989 is
incorporated by reference to the exhibits to the
Annual Report of Standex on Form 10-K for the fiscal
year ended June 30, 1990.
(c) Exhibits (Continued)
(b) Employment Agreement - 1993 Amendment dated July 28,
1993 between the Company and Thomas L. King is
incorporated by reference to the exhibits to the
Annual Report of Standex on Form 10-K for the fiscal
year ended June 30, 1993 ("1993 10-K").
(c) Employment Agreement dated January 29, 1993, between
the Company and Thomas H. DeWitt is incorporated by
reference to the exhibits to the 1993 10-K.
(d) Employment Agreement dated February 1, 1998, between
the Company and David R. Crichton is incorporated by
reference to the exhibits to the Quarterly Report of
Standex on Form 10-Q for the fiscal quarter ended
March 31, 1998.
(e) Employment Agreement dated January 29, 1993, between
the Company and Lindsay M. Sedwick is incorporated by
reference to the exhibits to the 1993 10-K.
(f) Employment Agreement dated January 29, 1993, between
the Company and Edward J. Trainor is incorporated by
reference to the exhibits to the 1993 10-K.
(g) Employment Agreement dated September 20, 1997 between
the Company and Edward F. Paquette is incorporated by
reference to the exhibits to the Quarterly Report of
Standex on Form 10-Q for the quarter ended September
30, 1997.
(h) Standex International Corporation Profit Improvement
Participation Shares Plan as amended and restated on
April 26, 1995 is incorporated by reference to the
exhibits to the Annual Report of Standex on Form 10-K
for the fiscal year ended June 30, 1995 ("1995 10-K").
(i) Standex International Corporation Stock Option Loan
Plan, effective January 1, 1985, as amended and
restated on January 26, 1994, is incorporated by
reference to the exhibits to the 1994 10-K.
(j) Standex International Corporation Executive Security
Program, as amended and restated on July 27, 1994, and
as further amended and restated on October 29, 1996 is
incorporated by reference to the exhibits to the
Quarterly Report of Standex on Form 10-Q for the
fiscal quarter ended December 31, 1996 (the "December
31, 1996 10-Q).
(k) Standex International Corporation 1985 Stock Option
Plan effective July 31, 1985, as amended on October
30, 1990, is incorporated by reference to the exhibits
to the Annual Report of Standex on Form 10-K for the
fiscal year ended June 30, 1991.
(c) Exhibits (Continued)
(l) Standex International Corporation Executive Life
Insurance Plan effective April 27, 1994 and amended on
April 24, 1996 and as further amended and restated on
October 29, 1996 is incorporated by reference to the
exhibits to the December 31, 1996 10-Q.
(m) Standex International Corporation 1994 Stock Option
Plan effective July 27, 1994 is incorporated by
reference to the exhibits to the 1994 10-K.
(n) Standex International Corporation Supplemental
Retirement Plan adopted April 26, 1995 and amended on
July 26, 1995 is incorporated by reference to the
exhibits to the 1995 10-K.
13. The Annual Report to Stockholders of the Company for the
fiscal year ended June 30, 1998 (except for the pages and
information thereof expressly incorporated by reference in
this Form 10-K, the Annual Report to Shareholders is
provided solely for the information of the Securities and
Exchange Commission and is not deemed "filed" as part of
this Form 10-K).
21. Subsidiaries of Standex.
23. Independent Auditors' Consent.
24. Powers of Attorney of William L. Brown, David R. Crichton,
Samuel S. Dennis, 3d, William R. Fenoglio, Daniel B. Hogan,
Thomas L. King, C. Kevin Landry, H. Nicholas Muller, III,
Ph.D. and Sol Sackel.
27. Financial Data Schedule.
(d) Schedule
The schedule listed in the accompanying Index to Financial Statements and
Schedule is filed as part of this Annual Report on Form 10-K.
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, Standex International Corporation has duly caused this
annual report on Form 10-K to be signed on its behalf by the undersigned,
thereunto duly authorized, on September 23, 1998.
STANDEX INTERNATIONAL CORPORATION
(Registrant)
By: /s/ Edward J. Trainor
Edward J. Trainor, President/
Chief Executive Officer
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of Standex
International Corporation and in the capacities indicated on September 23,
1998:
Signature Title
/s/ Edward J. Trainor President/Chief Executive Officer
Edward J. Trainor
/s/ Edward F. Paquette Vice President/Chief Financial Officer
Edward F. Paquette
/s/ Robert R. Kettinger Corporate Controller (Chief Accounting
Robert R. Kettinger Officer)
Edward J. Trainor, pursuant to powers of attorney which are being filed
with this Annual Report on Form 10-K, has signed below on September 14, 1998 as
attorney-in-fact for the following directors of the Registrant:
William L. Brown Daniel B. Hogan
David R. Crichton Thomas L. King
Samuel S. Dennis, 3d C. Kevin Landry
William R. Fenoglio H. Nicholas Muller, III, Ph.D.
Sol Sackel
/s/ Edward J. Trainor
Edward J. Trainor
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS AND SCHEDULE
Page No. in
Annual Report
("AR")
Financial Statements
Statements of Consolidated Income for the
Years Ended June 30, 1998, 1997 and 1996........... AR 19
Consolidated Balance Sheets at June 30, 1998 and 1997 AR 20
Statements of Consolidated Stockholders' Equity for
the Years Ended June 30, 1998, 1997 and 1996....... AR 19
Statements of Consolidated Cash Flows for
the Years Ended June 30, 1998, 1997 and 1996....... AR 21
Notes to Consolidated Financial Statements. .......... AR 22 - 27
Independent Auditors' Report relating to the
Consolidated Financial Statements and Notes thereto AR 28
Schedule
Schedule VIII Valuation and Qualifying Accounts
Independent Auditors' Report relating to Schedule VIII
Schedules (consolidated) not listed above are omitted because of the
absence of conditions under which they are required or because the required
information is included in the financial statements submitted.
INDEX TO ITEMS INCORPORATED BY REFERENCE
Page No. in
Annual Report
("AR"), Proxy
Statement
("P")
or Proxy
Supplement
("PS")
PART I
Item 1 Business..................................... AR 4 - 15
Industry Segment Information................. AR 24
INDEX TO ITEMS INCORPORATED BY REFERENCE
Page No. in
Annual Report
("AR"), Proxy
Statement
("P")
or Proxy
Supplement
("PS")
PART II
Item 5 Market for Standex Common Stock and Related
Stockholder Matters....................... AR 18
Item 6 Selected Financial Data...................... AR 18
Item 7 Management's Discussion and Analysis of Financial
Condition and Results of Operations....... AR 16 - 17
Item 8 Financial Statements and Supplementary Data........ AR 18 - 28
PART III
Item 10 Directors and Executive Officers of Standex.. P 2 - 5; 14 and 19
Item 11 Executive Compensation....................... P 9 _ 14;
PS 1 - 3
Item 12 Security Ownership of Certain Beneficial Owners and
Management................................ P 3 - 5
Item 13 Certain Relationships and Related Transactions..... P 14
INDEPENDENT AUDITORS' REPORT
To the Board of Directors and Stockholders of
STANDEX INTERNATIONAL CORPORATION
We have audited the consolidated financial statements of Standex International
Corporation and subsidiaries as of June 30, 1998 and 1997, and for each of the
three years in the period ended June 30, 1998, and have issued our report
thereon dated August 20, 1998; such financial statements and report are
included in your 1998 Annual Report to Stockholders and are incorporated herein
by reference. Our audits also included the financial statement schedule of
Standex International Corporation and subsidiaries, listed in Item 14 (a)(ii).
This financial statement schedule is the responsibility of the Corporation's
management. Our responsibility is to express an opinion based on our audits.
In our opinion, such financial statement schedule, when considered in relation
to the basic financial statements taken as a whole, presents fairly in all
material respects the information set forth therein.
/s/ DELOITTE & TOUCHE LLP
DELOITTE & TOUCHE LLP
Boston, Massachusetts
August 20, 1998
Schedule VIII
STANDEX INTERNATIONAL CORPORATION AND SUBSIDIARIES
VALUATION AND QUALIFYING ACCOUNTS
For the Years Ended June 30, 1998, 1997 and 1996
Column A Column B Column C Column D Column E
Balance at Additions
Beginning Charged to Costs Charged to Balance at
Description of Year and Expenses Other Accounts Deductions End of Year
Allowances deducted from assets to
which they apply--for doubtful
accounts receivable:
June 30, 1998 $2,535,535 $2,587,540 $(1,572,390)(1) $3,550,685
June 30, 1997 $2,666,005 $2,276,847 $(2,407,317)(1) $2,535,535
June 30, 1996 $2,853,681 $1,105,008 $(1,292,684)(1) $2,666,005
(1) Accounts written off--net of recoveries.
INDEX TO EXHIBITS
PAGE
13. The Annual Report to Stockholders of the Company
for the fiscal year ended June 30, 1997 (except
for the pages and information thereof expressly
incorporated by reference in this Form 10-K, the
Annual Report to Shareholders is provided solely
for the information of the Securities and Exchange
Commission and is not deemed "filed" as part of
this Form 10-K).................................
21. Subsidiaries of Registrant .....................
23. Independent Auditors' Consent ..................
24. Powers of Attorney of William L. Brown, David R.
Crichton, Samuel S. Dennis, 3rd, William R. Fenoglio,
Daniel B. Hogan, Thomas L. King, C. Kevin Landry,
H. Nicholas Muller, III, Ph.D. and Sol Sackel...
27. Financial Data Schedule.........................