{"id":429534,"date":"2021-02-04T16:27:06","date_gmt":"2021-02-04T21:27:06","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=429534"},"modified":"2021-02-04T16:27:06","modified_gmt":"2021-02-04T21:27:06","slug":"standex-reports-fiscal-second-quarter-2021-financial-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/standex-reports-fiscal-second-quarter-2021-financial-results\/","title":{"rendered":"Standex Reports Fiscal Second Quarter 2021 Financial Results"},"content":{"rendered":"
\n

– Improved Sequential Performance Driven by Revenue Growth at Electronics, Scientific and Engraving Segments<\/h2>\n

– Significant Free Cash Flow Generation Fueled by Strong Working Capital Performance<\/h2>\n

– Previous Cost Actions Remain on Track, Implementing Additional Productivity Actions<\/h2>\n

– Introducing Longer Term Financial Performance Targets<\/h2>\n

PR Newswire<\/p>\n<\/p><\/div>\n

\n

\n SALEM, N.H.<\/span>, Feb. 4, 2021<\/span> \/PRNewswire\/ —\u00a0Standex International Corporation<\/u>(NYSE:SXI)<\/b> today reported financial results for the second quarter of fiscal year 2021 ending December 31, 2020<\/span>. <\/p>\n

\n

\n
\n \"(PRNewsfoto\/Standex
\n <\/a>\n <\/p>\n<\/p><\/div>\n

\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n

\n
\n Summary Financial Results \u2013 <\/b>
\n <\/span>\n <\/p>\n

\n
\n Total Standex<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n
\n ($M except EPS and Dividends)<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n
\n 2Q21<\/u>
\n <\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n
\n 2Q20 1<\/sup><\/u>
\n <\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n
\n 1Q21<\/u>
\n <\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n Y\/Y<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n Q\/Q<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Net Sales<\/span>\n <\/p>\n<\/td>\n

\n

\n $156.3<\/span>\n <\/p>\n<\/td>\n

\n

\n $153.7<\/span>\n <\/p>\n<\/td>\n

\n

\n $151.3<\/span>\n <\/p>\n<\/td>\n

\n

\n 1.7%<\/span>\n <\/p>\n<\/td>\n

\n

\n 3.3%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Operating Income<\/span>\n <\/p>\n<\/td>\n

\n

\n $16.7<\/span>\n <\/p>\n<\/td>\n

\n

\n $17.6<\/span>\n <\/p>\n<\/td>\n

\n

\n $14.4<\/span>\n <\/p>\n<\/td>\n

\n

\n -5.1%<\/span>\n <\/p>\n<\/td>\n

\n

\n 16.6%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Net Income from Continuing Ops<\/span>\n <\/p>\n<\/td>\n

\n

\n $12.0<\/span>\n <\/p>\n<\/td>\n

\n

\n $12.3<\/span>\n <\/p>\n<\/td>\n

\n

\n $10.3<\/span>\n <\/p>\n<\/td>\n

\n

\n -2.3%<\/span>\n <\/p>\n<\/td>\n

\n

\n 16.1%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n EBITDA<\/span>\n <\/p>\n<\/td>\n

\n

\n $25.1<\/span>\n <\/p>\n<\/td>\n

\n

\n $25.1<\/span>\n <\/p>\n<\/td>\n

\n

\n $22.7<\/span>\n <\/p>\n<\/td>\n

\n

\n 0.0%<\/span>\n <\/p>\n<\/td>\n

\n

\n 10.6%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n EBITDA margin<\/span>\n <\/p>\n<\/td>\n

\n

\n 16.1%<\/span>\n <\/p>\n<\/td>\n

\n

\n 16.4%<\/span>\n <\/p>\n<\/td>\n

\n

\n 15.0%<\/span>\n <\/p>\n<\/td>\n

\n

\n -30 bps<\/span>\n <\/p>\n<\/td>\n

\n

\n +110 bps<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Adjusted EBITDA<\/span>\n <\/p>\n<\/td>\n

\n

\n $26.2<\/span>\n <\/p>\n<\/td>\n

\n

\n $26.6<\/span>\n <\/p>\n<\/td>\n

\n

\n $24.8<\/span>\n <\/p>\n<\/td>\n

\n

\n -1.6%<\/span>\n <\/p>\n<\/td>\n

\n

\n 5.6%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Adjusted EBITDA margin<\/span>\n <\/p>\n<\/td>\n

\n

\n 16.8%<\/span>\n <\/p>\n<\/td>\n

\n

\n 17.3%<\/span>\n <\/p>\n<\/td>\n

\n

\n 16.4%<\/span>\n <\/p>\n<\/td>\n

\n

\n – 50 bps<\/span>\n <\/p>\n<\/td>\n

\n

\n +40 bps<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n Diluted EPS<\/span>\n <\/p>\n<\/td>\n

\n

\n $0.98<\/span>\n <\/p>\n<\/td>\n

\n

\n $0.99<\/span>\n <\/p>\n<\/td>\n

\n

\n $0.84<\/span>\n <\/p>\n<\/td>\n

\n

\n -1.0%<\/span>\n <\/p>\n<\/td>\n

\n

\n 16.7%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Adjusted EPS<\/span>\n <\/p>\n<\/td>\n

\n

\n $1.05<\/span>\n <\/p>\n<\/td>\n

\n

\n $0.99<\/span>\n <\/p>\n<\/td>\n

\n

\n $0.96<\/span>\n <\/p>\n<\/td>\n

\n

\n 6.1%<\/span>\n <\/p>\n<\/td>\n

\n

\n 9.4%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Dividends per share<\/span>\n <\/p>\n<\/td>\n

\n

\n 0.24<\/span>\n <\/p>\n<\/td>\n

\n

\n 0.22<\/span>\n <\/p>\n<\/td>\n

\n

\n 0.22<\/span>\n <\/p>\n<\/td>\n

\n

\n 9.1%<\/span>\n <\/p>\n<\/td>\n

\n

\n 9.1%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n 2Q Free Cash Flow<\/span>\n <\/p>\n<\/td>\n

\n

\n $17.0<\/span>\n <\/p>\n<\/td>\n

\n

\n $3.6<\/span>\n <\/p>\n<\/td>\n

\n

\n $4.4<\/span>\n <\/p>\n<\/td>\n

\n

\n 370.7%<\/span>\n <\/p>\n<\/td>\n

\n

\n 284.0%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Net Debt to EBITDA<\/span>\n <\/p>\n<\/td>\n

\n

\n 0.9x<\/span>\n <\/p>\n<\/td>\n

\n

\n 0.8x<\/span>\n <\/p>\n<\/td>\n

\n

\n 1.1x<\/span>\n <\/p>\n<\/td>\n

\n

\n 12.0%<\/span>\n <\/p>\n<\/td>\n

\n

\n -15.5%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

\n\n\n\n
\n \n <\/td>\n<\/tr>\n
\n

\n
\n 1<\/sup>Fiscal second quarter 2020 results have been adjusted to reflect the divestiture of Refrigerated Solutions Group on April 16, 2020<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

\n
\n Second Quarter Fiscal 2021 Results<\/i>\u00a0 <\/b>\n <\/p>\n

Commenting on the quarter’s results, President and Chief Executive Officer David Dunbar<\/span> said, “We are very pleased with our second quarter results as our performance improved sequentially, end markets continued to show signs of recovery, and we are well-positioned for a stronger second half in fiscal 2021. In particular, the Electronics and Scientific segments experienced strong demand and have healthy backlogs. Our productivity initiatives are becoming further embedded within the organization, demonstrated by the sequential increase in adjusted operating margin in the quarter. We remain on track to deliver over $7 million<\/span> in annual savings in fiscal 2021 from our cost actions. <\/p>\n

“Our financial profile also further strengthened in the second quarter.\u00a0\u00a0 We reported free cash flow of $17 million<\/span> and have generated a 95% free cash flow to net income conversion rate through the first half of fiscal 2021.\u00a0 We ended the quarter with approximately $200 million<\/span> in available liquidity and a net debt to adjusted EBITDA ratio of 0.9x. We continued to repatriate cash, approximately $17 million<\/span> in the quarter, and are on track to repatriate about $35 million<\/span> in fiscal 2021.\u00a0 With our financial position further strengthening, we expect to remain active in opportunistically repurchasing shares. <\/p>\n

“In the second quarter, we continued to build on our solid start to the fiscal year and expect stronger results in the second half of fiscal 2021, both sequentially and year-over-year.\u00a0 We are actively engaged with our customers regarding emerging global trends that will shape the future of our end markets such as electric vehicles, renewable energy and 5G.\u00a0 Our technical expertise and strength of client relationships position us well for these opportunities as we continue to build on our portfolio of high-quality businesses.\u00a0 Our ongoing productivity and efficiency initiatives provide further opportunity to leverage these trends,” said Mr. Dunbar.<\/p>\n

\n Outlook<\/b>\n <\/p>\n

“In fiscal third quarter 2021, we expect a moderate revenue and operating margin improvement compared to fiscal second quarter 2021 results.\u00a0 This reflects a sequential revenue increase at the Electronics, Scientific, Engineering Technologies, and Specialty Solutions segments. Engraving revenue is expected to decline sequentially reflecting both geographic mix and timing of projects but recover in fiscal fourth quarter 2021.\u00a0\u00a0\u00a0 <\/p>\n

“Over the past few years, we have meaningfully transformed our portfolio around businesses with attractive growth and margin profiles, as well as strong end market and customer value propositions.\u00a0 As a result of these substantial changes, we believe it is now appropriate to provide a longer-term financial outlook.<\/p>\n

“Specifically, we are targeting mid-single digit organic revenue growth on a compound annual basis, assuming continued macro-economic recovery, and an EBITDA margin in excess of 20%.\u00a0 We believe a free cash flow conversion ratio of approximately 100% is achievable under these assumptions.\u00a0 It is our expectation that with this financial performance we will increase our return on invested capital to above 12%. Finally, with our substantial financial flexibility, we plan to continue to execute on an active pipeline of organic and inorganic growth opportunities,” concluded Dunbar. <\/p>\n

\n Second Quarter Segment Operating Performance<\/b>\n <\/p>\n

\n
\n Electronics (<\/u>
\n <\/b>
\n
\n 39% of sales; 39% of segment operating income)<\/u>
\n <\/b>\n <\/p>\n

\n\n\n\n\n\n\n
\n \n <\/td>\n\n

\n
\n
\n 2Q21<\/u>
\n <\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n
\n 2Q20<\/u>
\n <\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n
\n % Change<\/u>
\n <\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Electronics ($M)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n Revenue<\/span>\n <\/p>\n<\/td>\n

\n

\n $60.2<\/span>\n <\/p>\n<\/td>\n

\n

\n $45.8<\/span>\n <\/p>\n<\/td>\n

\n

\n 31.2%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Operating Income<\/span>\n <\/p>\n<\/td>\n

\n

\n 10.0<\/span>\n <\/p>\n<\/td>\n

\n

\n 7.8<\/span>\n <\/p>\n<\/td>\n

\n

\n 28.1%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Operating Margin<\/span>\n <\/p>\n<\/td>\n

\n

\n 16.6%<\/span>\n <\/p>\n<\/td>\n

\n

\n 17.0%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n<\/table><\/div>\n

Revenue increased approximately $14.3 million<\/span> or 31.2% year-over-year reflecting a 14.5% organic growth rate and 3.6% increase related to foreign exchange.\u00a0 This growth reflected\u00a0a broad-based geographical recovery with positive trends in markets such as automotive, including electric vehicles, appliances, and semiconductor equipment. The recent Renco acquisition contributed approximately $6 million<\/span> to revenue or approximately 42% of the increase in year-over-year growth.\u00a0 <\/p>\n

Operating income increased approximately $2.2 million<\/span> or 28.1% year-over-year reflecting operating leverage associated with revenue growth, productivity initiatives, and profit contribution from Renco partially offset by increased raw material prices.<\/p>\n

The Company expects a moderate increase in revenue and operating margin compared to fiscal second quarter 2021 due to further growth for relays in solar and electric vehicle applications as well as recovery in reed switch demand in transportation end markets.\u00a0 <\/p>\n

\n
\n Engraving (24% of sales; 26% of segment operating income)<\/u>
\n <\/b>\n <\/p>\n

\n\n\n\n\n\n\n
\n \n <\/td>\n\n

\n
\n
\n 2Q21<\/u>
\n <\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n
\n 2Q20<\/u>
\n <\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n
\n % Change<\/u>
\n <\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Engraving ($M)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n Revenue <\/span>\n <\/p>\n<\/td>\n

\n

\n $38.0<\/span>\n <\/p>\n<\/td>\n

\n

\n $38.3<\/span>\n <\/p>\n<\/td>\n

\n

\n -0.8%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Operating Income<\/span>\n <\/p>\n<\/td>\n

\n

\n 6.5<\/span>\n <\/p>\n<\/td>\n

\n

\n 6.9<\/span>\n <\/p>\n<\/td>\n

\n

\n -6.0%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Operating Margin<\/span>\n <\/p>\n<\/td>\n

\n

\n 17.1%<\/span>\n <\/p>\n<\/td>\n

\n

\n 18.1%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n<\/table><\/div>\n

Revenue decreased approximately $0.3 million<\/span> or 0.8% year-over-year and operating income was lower by approximately $0.4 million<\/span> or 6% year-over-year.\u00a0 The results reflected volume decline associated with the economic impact of COVID-19 partially mitigated by ongoing productivity and expense savings initiatives.\u00a0 Sequentially, Engraving revenue increased 4.3% and operating margin improved approximately 100 basis points, reflecting a more favorable geographic mix and read out of productivity and cost actions. \u00a0\u00a0<\/p>\n

In fiscal third quarter 2021, the Company expects a slight revenue decline and a moderate decline in operating margin compared to fiscal second quarter 2021, reflecting a less favorable geographic mix and timing of projects. The Company expects an increase in Engraving revenue and operating margin on a sequential and year-over-year basis in fiscal fourth quarter 2021.\u00a0\u00a0\u00a0 \u00a0\u00a0<\/p>\n

\n
\n Scientific<\/u>
\n <\/b>
\n
\n \u00a0(11% of sales; 17% of segment operating income) <\/u>
\n <\/b>\n <\/p>\n

\n\n\n\n\n\n\n
\n \n <\/td>\n\n

\n
\n
\n 2Q21<\/u>
\n <\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n
\n 2Q20<\/u>
\n <\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n
\n % Change<\/u>
\n <\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Scientific ($M)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n Revenue<\/span>\n <\/p>\n<\/td>\n

\n

\n $17.9<\/span>\n <\/p>\n<\/td>\n

\n

\n $15.4<\/span>\n <\/p>\n<\/td>\n

\n

\n 16.1%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Operating Income<\/span>\n <\/p>\n<\/td>\n

\n

\n 4.2<\/span>\n <\/p>\n<\/td>\n

\n

\n 4.1<\/span>\n <\/p>\n<\/td>\n

\n

\n 4.4%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Operating Margin<\/span>\n <\/p>\n<\/td>\n

\n

\n 23.7%<\/span>\n <\/p>\n<\/td>\n

\n

\n 26.3%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n<\/table><\/div>\n

Revenue increased approximately $2.5 million<\/span> or 16.1% year-over-year, reflecting positive trends at retail pharmaceutical chains and medical distribution companies, much of it associated with the demand for COVID vaccine storage. Operating income increased $0.1 million<\/span> or 4.4% year-over-year, reflecting the volume increase balanced with investments to support growth opportunities.\u00a0 <\/p>\n

In fiscal third quarter 2021, the Company expects a moderate to strong sequential increase in revenue driven by continued COVID-19 vaccine-storage demand. The Company expects operating margin to be slightly ahead of the second quarter results, reflecting volume increase balanced with reinvestment in the business for R&D and growth opportunities. <\/p>\n

\n
\n Engineering Technologies (11% of sales; 5% of segment operating income<\/u>
\n <\/b>
\n
\n )<\/u>
\n <\/b>\n <\/p>\n

\n\n\n\n\n\n\n
\n \n <\/td>\n\n

\n
\n
\n 2Q21<\/u>
\n <\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n
\n 2Q20<\/u>
\n <\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n
\n % Change<\/u>
\n <\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Engineering
Technologies ($M)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n Revenue<\/span>\n <\/p>\n<\/td>\n

\n

\n $17.5<\/span>\n <\/p>\n<\/td>\n

\n

\n $26.5<\/span>\n <\/p>\n<\/td>\n

\n

\n -33.9%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Operating Income<\/span>\n <\/p>\n<\/td>\n

\n

\n 1.4<\/span>\n <\/p>\n<\/td>\n

\n

\n 3.4<\/span>\n <\/p>\n<\/td>\n

\n

\n -60.2%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Operating Margin<\/span>\n <\/p>\n<\/td>\n

\n

\n 7.8%<\/span>\n <\/p>\n<\/td>\n

\n

\n 12.9%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n<\/table><\/div>\n

On a year-over-year basis, Engineering Technologies revenue and operating income decreased approximately $9.0 million<\/span> or 33.9% and $2.1 million<\/span> or 60.2%, respectively.\u00a0 This reflected the economic impact of COVID-19 on the commercial aviation market, especially engine parts manufacturing.\u00a0 On a sequential basis, operating margin increased approximately 500 basis points on a similar revenue level to fiscal first quarter 2021 as a result of product mix and ongoing productivity actions.\u00a0\u00a0\u00a0 <\/p>\n

In fiscal third quarter 2021, the Company expects a moderate increase in revenue primarily due to the early stages of recovery in the commercial aviation end market.\u00a0 However. the Company expects operating margin to be sequentially similar to the second fiscal quarter of 2021 due to a higher sales mix of lower margin engine parts, partially offset by productivity initiatives.\u00a0\u00a0\u00a0\u00a0 <\/p>\n

\n
\n Specialty Solutions<\/u>
\n <\/b>
\n
\n \u00a0(15% of sales; 13% of segment operating income)<\/u>
\n <\/b>\n <\/p>\n

\n\n\n\n\n\n\n
\n \n <\/td>\n\n

\n
\n
\n 2Q21<\/u>
\n <\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n
\n 2Q20<\/u>
\n <\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n
\n % Change<\/u>
\n <\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Specialty Solutions ($M)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n Revenue<\/span>\n <\/p>\n<\/td>\n

\n

\n $22.8<\/span>\n <\/p>\n<\/td>\n

\n

\n $27.7<\/span>\n <\/p>\n<\/td>\n

\n

\n -17.8%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Operating Income<\/span>\n <\/p>\n<\/td>\n

\n

\n 3.2<\/span>\n <\/p>\n<\/td>\n

\n

\n 4.3<\/span>\n <\/p>\n<\/td>\n

\n

\n -26.0%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Operating Margin<\/span>\n <\/p>\n<\/td>\n

\n

\n 14.1%<\/span>\n <\/p>\n<\/td>\n

\n

\n 15.7%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n<\/table><\/div>\n

On a year-over-year basis, Specialty Solutions revenue decreased approximately $4.9 million<\/span> or 17.8% year-over-year with an operating income decline of $1.1 million<\/span> or 26.0%. This reflected the economic impact of the COVID-19 pandemic on this segment’s end markets. \u00a0On a sequential basis, the sales decline was primarily associated with seasonality and a lower number of shipping days in the quarter.\u00a0\u00a0 <\/p>\n

In fiscal third quarter 2021, the Company expects a moderate sequential increase in revenue and in operating margin, reflecting a gradual recovery in the food service industry and strong order trends in the refuse markets. \u00a0<\/p>\n

\n Capital Allocation<\/b>\n <\/p>\n