10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒     QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2022

☐    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 001-07233

STANDEX INTERNATIONAL CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	31-0596149
(State of incorporation)	(IRS Employer Identification No.)

23 Keewaydin drive, Salem, New Hampshire	03079
(Address of principal executive offices)	(Zip Code)

(603) 893-9701

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, Par Value $1.50 Per Share	SXI	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 ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☒	Accelerated filer ☐
Non-accelerated filer ☐	Smaller reporting company ☐
	Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes ☐    No ☒

The number of shares of Registrant's Common Stock outstanding on May 3, 2022 was 12,069,658.

1

STANDEX INTERNATIONAL CORPORATION

INDEX

		Page No.
PART I.  FINANCIAL INFORMATION:
Item 1.
	Condensed Consolidated Balance Sheets as of March 31, 2022 and June 30, 2021 (unaudited)	3
	Condensed Consolidated Statements of Operations for the three and nine months ended March 31, 2022 and 2021 (unaudited)	4
	Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended March 31, 2022 and 2021 (unaudited)	5
	Condensed Consolidated Statements of Stockholders’ Equity for the three and nine months ended March 31, 2022 and 2021 (unaudited)	6
	Condensed Consolidated Statements of Cash Flows for the nine months ended March 31, 2022 and 2021 (unaudited)	8
	Notes to Unaudited Condensed Consolidated Financial Statements	9
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	25
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	37
Item 4.	Controls and Procedures	38
PART II.  OTHER INFORMATION:
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	39
Item 6.	Exhibits	40

2

PART I. FINANCIAL INFORMATION

ITEM 1

STANDEX INTERNATIONAL CORPORATION

Unaudited Condensed Consolidated Balance Sheets

	March 31,			June 30,
(In thousands, except per share data)	2022			2021
ASSETS
Current Assets:
Cash and cash equivalents	$	133,902		$	136,367
Accounts receivable, less allowance for credit losses of $1,997 and $1,588 at March 31, 2022 and June 30, 2021, respectively		115,428			109,883
Inventories		103,930			91,862
Prepaid expenses and other current assets		41,800			23,504
Income taxes receivable		15,584			12,750
Total current assets		410,644			374,366
Property, plant, and equipment, net		128,181			133,373
Intangible assets, net		91,545			98,929
Goodwill		275,127			278,054
Deferred tax asset		5,369			9,566
Operating lease right-of-use asset		35,558			37,276
Other non-current assets		27,144			30,659
Total non-current assets		562,924			587,857
Total assets	$	973,568		$	962,223
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable	$	75,275		$	74,756
Accrued liabilities		57,185			61,717
Income taxes payable		9,279			7,236
Total current liabilities		141,739			143,709
Long-term debt		199,745			199,490
Operating lease long-term liabilities		28,683			29,041
Accrued pension and other non-current liabilities		75,781			83,558
Total non-current liabilities		304,209			312,089
Contingencies (Note 15)
Stockholders' equity:
Common stock, par value $1.50 per share, 60,000,000 shares authorized, 27,984,278 shares issued, 11,929,389 and 12,044,405 shares outstanding at March 31, 2022 and June 30, 2021		41,976			41,976
Additional paid-in capital		88,197			80,788
Retained earnings		891,303			852,489
Accumulated other comprehensive loss		(121,870	)		(116,140	)
Treasury shares: 16,054,889 and 15,939,873 shares at March 31, 2022 and June 30, 2021		(371,986	)		(352,688	)
Total stockholders' equity		527,620			506,425
Total liabilities and stockholders' equity	$	973,568		$	962,223

See notes to unaudited condensed consolidated financial statements 

3

STANDEX INTERNATIONAL CORPORATION

Unaudited Condensed Consolidated Statements of Operations

	Three Months Ended						Nine Months Ended
	March 31,						March 31,
(In thousands, except per share data)	2022			2021			2022			2021
Net sales	$	189,281		$	172,216		$	550,600		$	479,797
Cost of sales		120,900			109,516			347,210			304,344
Gross profit		68,381			62,700			203,390			175,453
Selling, general, and administrative expenses		42,306			41,689			128,589			120,758
Loss on sale of business		-			14,624			-			14,624
Restructuring costs		1,186			482			2,469			2,478
Acquisition related costs		419			255			1,561			850
Other operating (income) expense, net		-			-			1,700			-
Total operating expenses		43,911			57,050			134,319			138,710
Income from operations		24,470			5,650			69,071			36,743
Interest expense		1,238			1,317			4,484			4,403
Other non-operating (income) expense, net		340			306			651			73
Income from continuing operations before income taxes		22,892			4,027			63,936			32,267
Provision for income taxes		5,484			2,269			15,677			8,155
Income from continuing operations		17,408			1,758			48,259			24,112
Income (loss) from discontinued operations, net of tax		(86	)		(331	)		(135	)		(1,588	)
Net income	$	17,322		$	1,427		$	48,124		$	22,524
Basic earnings (loss) per share:
Continuing operations	$	1.45		$	0.14		$	4.02		$	1.98
Discontinued operations		(0.01	)		(0.03	)		(0.01	)		(0.13	)
Total	$	1.44		$	0.11		$	4.01		$	1.85
Diluted earnings (loss) per share:
Continuing operations	$	1.44		$	0.14		$	3.98		$	1.97
Discontinued operations		(0.01	)		(0.03	)		(0.01	)		(0.13	)
Total	$	1.43		$	0.11		$	3.97		$	1.84
Weighted average number of shares:
Basic		11,982			12,136			12,009			12,185
Diluted		12,089			12,253			12,121			12,267

See notes to unaudited condensed consolidated financial statements 

4

STANDEX INTERNATIONAL CORPORATION 

Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss)

	Three Months Ended						Nine Months Ended
	March 31,						March 31,
(In thousands)	2022			2021			2022			2021
Net income	$	17,322		$	1,427		$	48,124		$	22,524
Other comprehensive income (loss):
Defined benefit pension plans:
Actuarial gains (losses) and other changes in unrecognized costs, net of tax	$	88		$	22		$	189		$	(351	)
Amortization of unrecognized costs, net of tax		1,103			1,275			3,320			3,810
Derivative instruments:
Change in unrealized gains (losses), net of tax		4,340			3,185			5,949			3,089
Amortization of unrealized gains (losses) into interest expense, net of tax		627			(77	)		2,155			767
Foreign currency translation gains (losses), net of tax		(8,018	)		(11,299	)		(17,343	)		9,301
Other comprehensive income (loss), net of tax	$	(1,860	)	$	(6,894	)	$	(5,730	)	$	16,616
Comprehensive income	$	15,462		$	(5,467	)	$	42,394		$	39,140

See notes to unaudited condensed consolidated financial statements 

5

STANDEX INTERNATIONAL CORPORATION AND SUBSIDIARIES 

Unaudited Condensed Consolidated Statements of Stockholders' Equity 

									Accumulated Other
For the nine month period ended			Additional						Comprehensive									Total
March 31, 2022	Common		Paid-in			Retained			Income			Treasury Stock						Stockholders’
(in thousands, except as specified)	Stock		Capital			Earnings			(Loss)			Shares			Amount			Equity
Balance, June 30, 2021	$	41,976	$	80,788		$	852,489		$	(116,140	)		15,940		$	(352,688	)	$	506,425
Stock issued under incentive compensation plans and employee purchase plans		-		(804	)		-			-			(94	)		2,122			1,318
Stock-based compensation		-		8,213			-			-			-			-			8,213
Treasury stock acquired		-		-			-			-			209			(21,420	)		(21,420	)
Comprehensive income:
Net income		-		-			48,124			-			-			-			48,124
Foreign currency translation adjustment		-		-			-			(17,343	)		-			-			(17,343	)
Pension, net of tax of $1.1 million		-		-			-			3,509			-			-			3,509
Change in fair value of derivatives, net of tax of $2.4 million		-		-			-			8,104			-			-			8,104
Dividends declared ($0.76 per share)		-		-			(9,310	)		-			-			-			(9,310	)
Balance, March 31, 2022	$	41,976	$	88,197		$	891,303		$	(121,870	)		16,055		$	(371,986	)	$	527,620
For the nine month period ended March 31, 2021
(in thousands, except as specified)
Balance, June 30, 2020	$	41,976	$	72,752		$	827,656		$	(147,659	)		15,748		$	(333,093	)	$	461,632
Stock issued under incentive compensation plans and employee purchase plans		-		(432	)		-			-			(72	)		1,549			1,117
Stock-based compensation		-		5,658			-			-			-			-			5,658
Treasury stock acquired		-		-			-			-			217			(16,205	)		(16,205	)
Comprehensive income:																			-
Net income		-		-			22,524			-			-			-			22,524
Foreign currency translation adjustment		-		-			-			9,301			-			-			9,301
Pension, net of tax of $1.1 million		-		-			-			3,459			-			-			3,459
Change in fair value of derivatives, net of tax of $0.9 million		-		-			-			3,856			-			-			3,856
Dividends declared ($0.70 per share)		-		-			(8,689	)		-			-			-			(8,689	)
Balance, March 31, 2021	$	41,976	$	77,978		$	841,491		$	(131,043	)		15,893		$	(347,749	)	$	482,653

6

STANDEX INTERNATIONAL CORPORATION AND SUBSIDIARIES 

Unaudited Condensed Consolidated Statements of Stockholders' Equity 

								Accumulated Other
For the three month period ended			Additional					Comprehensive									Total
March 31, 2022	Common		Paid-in		Retained			Income			Treasury Stock						Stockholders’
(in thousands, except as specified)	Stock		Capital		Earnings			(Loss)			Shares			Amount			Equity
Balance, December 31, 2021	$	41,976	$	84,560	$	877,158		$	(120,010	)		15,948		$	(360,234	)	$	523,450
Stock issued under incentive compensation plans and employee purchase plans		-		49		-			-			(5	)		122			171
Stock-based compensation		-		3,588		-			-			-			-			3,588
Treasury stock acquired		-		-		-			-			112			(11,874	)		(11,874	)
Comprehensive income:
Net income		-		-		17,322			-			-			-			17,322
Foreign currency translation adjustment		-		-		-			(8,018	)		-			-			(8,018	)
Pension, net of tax of $0.4 million		-		-		-			1,191			-			-			1,191
Change in fair value of derivatives, net of tax of $1.6 million		-		-		-			4,967			-			-			4,967
Dividends declared ($0.26 per share)		-		-		(3,177	)		-			-			-			(3,177	)
Balance, March 31, 2022	$	41,976	$	88,197	$	891,303		$	(121,870	)		16,055		$	(371,986	)	$	527,620
For the three month period ended March 31, 2021
(in thousands, except as specified)
Balance, December 31, 2020	$	41,976	$	76,548	$	843,038		$	(124,149	)		15,803		$	(339,223	)	$	498,190
Stock issued under incentive compensation plans and employee purchase plans		-		60		-			-			(4	)		86			146
Stock-based compensation		-		1,370		-			-			-			-			1,370
Treasury stock acquired		-		-		-			-			94			(8,612	)		(8,612	)
Comprehensive income:
Net income		-		-		1,427			-			-			-			1,427
Foreign currency translation adjustment		-		-		-			(11,299	)		-			-			(11,299	)
Pension, net of tax of $0.4 million		-		-		-			1,297			-			-			1,297
Change in fair value of derivatives, net of tax of $0.7 million		-		-		-			3,108			-			-			3,108
Dividends declared ($0.24 per share)		-		-		(2,974	)		-			-			-			(2,974	)
Balance, March 31, 2021	$	41,976	$	77,978	$	841,491		$	(131,043	)		15,893		$	(347,749	)	$	482,653

7

STANDEX INTERNATIONAL CORPORATION

 Unaudited Condensed Consolidated Statements of Cash Flows

	Nine Months Ended
	March 31,
(In thousands)	2022			2021
Cash flows from operating activities
Net income	$	48,124		$	22,524
Income (loss) from discontinued operations		(135	)		(1,588	)
Income from continuing operations		48,259			24,112
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization		22,411			24,843
Stock-based compensation		8,213			5,658
Non-cash portion of restructuring charge		595			(538	)
Loss on sale of business		-			14,624
Contributions to defined benefit plans		(157	)		(7,962	)
Changes in operating assets and liabilities, net		(30,693	)		(11,399	)
Net cash provided by operating activities - continuing operations		48,628			49,338
Net cash provided by (used in) operating activities - discontinued operations		(375	)		2,225
Net cash provided by operating activities		48,253			51,563
Cash flows from investing activities
Expenditures for property, plant, and equipment		(13,138	)		(15,612	)
Expenditures for acquisitions, net of cash acquired		(9,902	)		(27,406	)
Proceeds from sale of business		-			11,678
Other investing activity		5,718			(1,449	)
Net cash provided by (used in) investing activities		(17,322	)		(32,789	)
Cash flows from financing activities
Proceeds from borrowings		-			17,000
Payments of debt		-			(17,000	)
Contingent consideration payment		(1,167	)		-
Activity under share-based payment plans		1,318			1,117
Purchases of treasury stock		(21,420	)		(16,205	)
Cash dividends paid		(9,148	)		(8,547	)
Net cash provided by (used in) financing activities		(30,417	)		(23,635	)
Effect of exchange rate changes on cash and cash equivalents		(2,979	)		4,092
Net change in cash and cash equivalents		(2,465	)		(769	)
Cash and cash equivalents at beginning of year		136,367			118,809
Cash and cash equivalents at end of period	$	133,902		$	118,040
Supplemental Disclosure of Cash Flow Information:
Cash paid during the year for:
Interest	$	3,791		$	3,754
Income taxes, net of refunds	$	14,797		$	14,631

See notes to unaudited condensed consolidated financial statements

8

STANDEX INTERNATIONAL CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

1)     Management Statement

In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments necessary to present fairly the results of operations for the three and nine months ended March 31, 2022 and 2021, the cash flows for the nine months ended March 31, 2022 and 2021 and the financial position of Standex International Corporation (“Standex”, the “Company”, “we”, “us”, or “our”), at March 31, 2022. The interim results are not necessarily indicative of results for a full year. The following unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. The unaudited condensed consolidated financial statements and notes do not contain information which would substantially duplicate the disclosures contained in the audited annual consolidated financial statements and notes for the year ended June 30, 2021. The condensed consolidated balance sheet at June 30, 2021 was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. The financial statements contained herein should be read in conjunction with the Annual Report on Form 10-K and in particular the audited consolidated financial statements for the year ended June 30, 2021. Unless otherwise noted, references to years are to the Company’s fiscal years. Currently our fiscal year end is June 30.  For further clarity, our fiscal year 2022 includes the twelve-month period from July 1, 2021 to June 30, 2022.

The estimates and assumptions used in the preparation of the consolidated financial statements have considered the implications on the Company as a result of the COVID-19 pandemic and its related economic impacts. As a result of the COVID-19 pandemic, there is heightened volatility and uncertainty around supply chain performance, labor availability, and customer demand. However, the magnitude of such impact on the Company’s business and its duration is uncertain. The Company is not aware of any specific event or circumstance that would require an update to its estimates or adjustments to the carrying value of its assets and liabilities as of  March 31, 2022 and the issuance date of the Quarterly Report on Form 10-Q.

The Company considers events or transactions that occur after the balance sheet date but before the financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. The Company evaluated subsequent events through the date and time its unaudited condensed consolidated financial statements were issued. 

Recently Issued Accounting Pronouncements

In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance, which requires business entities to provide certain disclosures when they (1) have received government assistance and (2) use a grant or contribution accounting model by analogy to other accounting guidance. The guidance in ASU 2021-10 is effective for all entities for fiscal years beginning after December 15, 2021 with early adoption permitted. The Company does not expect the adoption of this ASU to have a significant impact on its Consolidated Financial Statements. 

2)     Acquisitions

The Company's recent acquisitions are strategically significant to the future growth prospects of the Company. At the time of the acquisition and March 31, 2022, the Company evaluated the significance of each acquisition on a standalone basis and in aggregate, considering both qualitative and quantitative factors.

Sensor Solutions

During the third quarter of fiscal year 2022, the Company acquired Sensor Solutions, a designer and manufacturer of customized standard magnetic sensor products including hall effect switch and latching sensors, linear and rotary sensors, and specialty sensors. Sensor Solutions' customer base in automotive, industrial, medical, aerospace, military and consumer electronics end markets are a strategic fit and expand the Company's presence in these markets. Sensor Solutions operates one light manufacturing facility in Colorado. Sensor Solutions' results are reported within the Company's Electronics segment.

9

 

The Company paid $9.9 million in cash for all the issued and outstanding equity interests of Sensor Solutions. The purchase price was allocated to the net tangible and identifiable intangible assets acquired and liabilities assumed based on a valuation of their fair values on the closing date. Goodwill recorded from this transaction is attributable to Sensor Solutions' technical and applications expertise in sectors such as electric vehicles, industrial automation and medical end markets, which is highly complementary to the Company's existing business.

Identifiable intangible assets of $2.8 million consist primarily of $0.8 million for indefinite lived tradenames, and $2.0 million of customer relationships to be amortized over 10 years. The goodwill of $6.0 million created by the transaction is deductible for income tax purposes. The accounting for business combinations requires estimates and judgments regarding expectations for future cash flows of the acquired business, and the allocations of those cash flows to identifiable tangible and intangible assets, in determining the assets acquired and liabilities assumed. The fair values assigned to tangible and intangible assets acquired and liabilities assumed are based on management's best estimates and assumptions, as well as other information compiled by management, including valuations that utilize customary valuation procedures and techniques. 

The components of the fair value of the Sensor Solutions acquisition, including the preliminary allocation of the purchase price at March 31, 2022, are as follows (in thousands): 

	Preliminary Allocation as of March 31, 2022
Fair value of business combination:
Cash payments	$	10,016
Less cash acquired		(114	)
Total	$	9,902

	Preliminary Allocation as of March 31, 2022
Identifiable assets acquired and liabilities assumed:
Other acquired assets	$	490
Inventories		531
Property, plant, & equipment		232
Identifiable intangible assets		2,800
Goodwill		6,001
Liabilities assumed		(152	)
Total	$	9,902

Renco Electronics

During the first quarter of fiscal year 2021, the Company acquired Renco Electronics ("Renco"), a designer and manufacturer of customized standard magnetics components and products including transformers, inductors, chokes and coils for power and RF applications.  Renco’s end markets and customer base in areas such as consumer and industrial applications are highly complementary to our existing business with the potential to further expand key account relationships and capitalize on cross selling opportunities between the two companies.  Renco operates one manufacturing facility in Florida and is supported by contract manufacturers in Asia. Renco’s results are reported within our Electronics segment.

The Company paid $27.4 million in cash for all of the issued and outstanding equity interests of Renco Electronics. The purchase price was allocated to the net tangible and identifiable intangible assets acquired and liabilities assumed based on a valuation of their fair values on the closing date. Goodwill recorded from this transaction is attributable to Renco’s significant engineering and technical expertise in end markets supported by strong engineer-to-engineer relationships. In addition, Renco’s end markets and customer base in areas such as consumer and industrial are highly complementary to the Company’s existing business.

10

 

Identifiable intangible assets of $10.4 million consist primarily of $3.6 million for indefinite lived tradenames, and $6.8 million of customer relationships to be amortized over 12 years. The goodwill of $14.0 million created by the transaction is deductible for income tax purposes. The accounting for business combinations requires estimates and judgments regarding expectations for future cash flows of the acquired business, and the allocations of those cash flows to identifiable tangible and intangible assets, in determining the assets acquired and liabilities assumed. The fair values assigned to tangible and intangible assets acquired and liabilities assumed, including contingent consideration, are based on management’s best estimates and assumptions, as well as other information compiled by management, including valuations that utilize customary valuation procedures and techniques. 

The components of the fair value of the Renco Electronics acquisition, including the final allocation of the purchase price are as follows (in thousands):

	Final Allocation
Fair value of business combination:
Cash payments	$	29,613
Less, cash acquired		(2,207	)
Fair value of contingent consideration		3,000
Total	$	30,406

	Final Allocation
Identifiable assets acquired and liabilities assumed:
Other acquired assets	$	4,522
Inventories		5,446
Property, plant, & equipment		410
Identifiable intangible assets		10,400
Goodwill		13,991
Debt assumed		(712	)
Liabilities assumed		(3,651	)
Total	$	30,406

Acquisition Related Costs

Acquisition related costs include costs related to acquired businesses and other pending acquisitions. These costs consist of (i) deferred compensation arrangements and (ii) acquisition related professional service fees and expenses, including financial advisory, legal, accounting, and other outside services incurred in connection with acquisition activities, and regulatory matters related to acquired entities. These costs do not include purchase accounting expenses, which we define as acquired backlog and the step-up of inventory to fair value, or the amortization of the acquired intangible assets.

Acquisition related costs for the three months ended March 31, 2022, and 2021 were $0.4 million and $0.3 million, respectively. Acquisition related costs for the nine months ended March 31, 2022, and 2021 were $1.6 million and $0.9 million, respectively. 

11

 

3)     Revenue From Contracts With Customers

Most of the Company’s contracts have a single performance obligation which represents the product or service being sold to the customer. Some contracts include multiple performance obligations such as a product and the related installation and/or extended warranty. Additionally, most of the Company’s contracts offer assurance type warranties in connection with the sale of a product to customers. Assurance type warranties provide a customer with assurance that the product complies with agreed-upon specifications. Assurance type warranties do not represent a separate performance obligation.

In general, the Company recognizes revenue at the point in time control transfers to its customer based on predetermined shipping terms. Revenue is recognized over time under certain long-term contracts within the Engineering Technologies and Engraving groups for highly customized customer products that have no alternative use and in which the contract specifies the Company has a right to payment for its costs, plus a reasonable margin. For products manufactured over time, the transfer of control is measured pro rata, based upon current estimates of costs to complete such contracts. Losses on contracts are fully recognized in the period in which the losses become determinable. Revisions in profit estimates are reflected on a cumulative basis in the period in which the basis for such revision becomes known.

Disaggregation of Revenue from Contracts with Customers

The following table presents revenue disaggregated by product line and segment (in thousands):

	Three Months Ended
Revenue by Product Line	March 31, 2022		March 31, 2021
Electronics	$	79,889	$	65,085
Engraving Services		34,399		33,655
Engraving Products		2,824		2,371
Total Engraving		37,223		36,026
Scientific		18,914		24,221
Engineering Technologies		20,890		19,951
Hydraulics Cylinders and Systems		15,306		13,629
Merchandising & Display		8,438		6,276
Pumps		8,621		7,028
Total Specialty Solutions		32,365		26,933
Total revenue by product line	$	189,281	$	172,216

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The following table presents revenue disaggregated by product line and segment (in thousands):

	Nine Months Ended
Revenue by Product Line	March 31, 2022		March 31, 2021
Electronics	$	232,351	$	180,524
Engraving Services		101,637		102,950
Engraving Products		7,400		7,427
Total Engraving		109,037		110,377
Scientific		65,079		58,777
Engineering Technologies		56,558		55,091
Hydraulics Cylinders and Systems		39,207		36,583
Merchandising & Display		23,548		19,515
Pumps		24,820		18,930
Total Specialty Solutions		87,575		75,028
Total revenue by product line	$	550,600	$	479,797

The following table presents revenue from continuing operations disaggregated by geography based on company’s locations (in thousands):

	Three Months Ended		Three Months Ended		Nine Months Ended		Nine Months Ended
Net sales	March 31, 2022		March 31, 2021		March 31, 2022		March 31, 2021
United States	$	110,076	$	103,005	$	314,657	$	286,522
Asia Pacific		37,441		31,715		116,842		89,189
EMEA (1)		37,963		34,367		108,841		93,549
Other Americas		3,801		3,129		10,260		10,537
Total	$	189,281	$	172,216	$	550,600	$	479,797

⁽¹⁾ EMEA consists primarily of Europe, Middle East and S. Africa. 

The following table presents revenue from continuing operations disaggregated by timing of recognition (in thousands) for the three months ended:

	Three Months Ended
Timing of Revenue Recognition	March 31, 2022		March 31, 2021
Products and services transferred at a point in time	$	170,949	$	163,356
Products transferred over time		18,332		8,860
Net sales	$	189,281	$	172,216

	Nine Months Ended
Timing of Revenue Recognition	March 31, 2022		March 31, 2021
Products and services transferred at a point in time	$	510,988	$	454,007
Products transferred over time		39,612		25,790
Net sales	$	550,600	$	479,797

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Contract Balances

Contract assets represent sales recognized in excess of billings related to work completed but not yet shipped for which revenue is recognized over time. Contract assets are recorded as prepaid expenses and other current assets. Contract liabilities are customer deposits for which revenue has not been recognized. Current contract liabilities are recorded as accrued liabilities.

The timing of revenue recognition, invoicing and cash collections results in billed receivables, contract assets and contract liabilities on the consolidated balance sheets. When consideration is received from a customer prior to transferring goods or services to the customer under the terms of a contract, a contract liability is recorded. Contract liabilities are recognized as revenue after control of the goods and services are transferred to the customer and all revenue recognition criteria have been met.

The following table provides information about contract assets and liability balances (in thousands):

	Balance at Beginning of Period		Additions		Amount Recognized		Balance at End of Period
Nine months ended March 31, 2022
Contract assets:
Prepaid expenses and other current assets	$	15,013	$	35,091	$	25,711	$	24,393
Contract liabilities:
Customer deposits		471		10,293		10,721		43

	Balance at Beginning of Period		Additions		Amount Recognized		Balance at End of Period
Nine months ended March 31, 2021
Contract assets:
Prepaid expenses and other current assets	$	9,140	$	21,055	$	18,422	$	11,773
Contract liabilities:
Customer deposits		2,298		6,497		7,871		924

We recognized the following revenue which was included in the contract liability beginning balances (in thousands):

	March 31, 2022
Revenue recognized in the period from:	Three months ended		Nine months ended
Amounts included in the contract liability balance at the beginning of the period	$	252	$	471

	March 31, 2021
Revenue recognized in the period from:	Three months ended		Nine months ended
Amounts included in the contract liability balance at the beginning of the period	$	365	$	2,298

4)      Fair Value Measurements

The financial instruments shown below are presented at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models may be applied.

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Assets and liabilities recorded at fair value in the consolidated balance sheet are categorized based upon the level of judgment associated with the inputs used to measure their fair values. Hierarchical levels directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities and the methodologies used in valuation are as follows:

Level 1 – Quoted prices (unadjusted) in active markets for identical assets and liabilities. The Company’s deferred compensation plan assets consist of shares in various mutual funds (investments are participant-directed) which invest in a broad portfolio of debt and equity securities. These assets are valued based on publicly quoted market prices for the funds’ shares as of the balance sheet dates.

Level 2 – Inputs, other than quoted prices in an active market, that are observable either directly or indirectly through correlation with market data. For foreign exchange forward contracts and interest rate swaps, the Company values the instruments based on the market price of instruments with similar terms, which are based on spot and forward rates as of the balance sheet dates. The Company has considered the creditworthiness of counterparties in valuing all assets and liabilities.

Level 3 – Unobservable inputs based upon the Company’s best estimate of what market participants would use in pricing the asset or liability.

There were no transfers of assets or liabilities between any levels of the fair value measurement hierarchy at March 31, 2022 and June 30, 2021. The Company’s policy is to recognize transfers between levels as of the date they occur.

Cash and cash equivalents, accounts receivable, accounts payable, and debt are carried at cost, which approximates fair value.

The fair values of financial instruments were as follows (in thousands):

	March 31, 2022
	Total		Level 1		Level 2		Level 3
Assets
Marketable securities - deferred compensation plan	$	3,281	$	3,281	$	-	$	-
Foreign exchange contracts		169		-		169		-
Interest rate swaps		6,881		-		6,881		-
Liabilities
Foreign exchange contracts	$	-	$	-		-	$	-
Interest rate swaps		331		-		331		-
Contingent acquisition payments (a)		2,167		-		-		2,167

	June 30, 2021
	Total		Level 1		Level 2		Level 3
Assets
Marketable securities - deferred compensation plan	$	2,988	$	2,988	$	-	$	-
Foreign exchange contracts		255		-		255		-
Liabilities
Foreign exchange contracts	$	1,222	$	-	$	1,222	$	-
Interest rate swaps		3,096		-		3,096		-
Contingent acquisition payments (a)		3,333		-		-		3,333

^(a) The fair value of contingent consideration arrangements is determined based on the Company's evaluation as to the probability and amount of any contingent consideration that has been earned to date.

The financial liabilities based upon Level 3 inputs include contingent consideration arrangements relating to the acquisitions of Renco Electronics and GS Engineering. The Company is contractually obligated to pay contingent consideration payments to the Sellers of these businesses based on the achievement of certain criteria.

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The Company is contractually obligated to pay contingent consideration to the sellers of GS Engineering in the event that certain revenue and gross margin targets are achieved during the five years following acquisition. The targets set in the GS Engineering stock purchase agreement were not met for the first or second year, which concluded in the fourth quarter of fiscal years 2020 and 2021, respectively. As of March 31, 2022, the Company could be required to pay up to $12.8 million for contingent consideration arrangements if the revenue and gross margin targets are met in fiscal years 2022 through 2024.

In connection with its acquisition of Renco Electronics, the Company was obligated to pay contingent consideration over a three year period of up to $3.5 million to the sellers of Renco. During the first quarter of fiscal year 2022, the Company paid $1.2 million to the sellers as Renco exceeded the earnings targets during the first year of the measurement period. During the third quarter of fiscal year 2022, the parties agreed to reduce and fix the aggregate earnout payments to a total of $3.4 million. The parties also agreed to accelerate the payment of the remaining unpaid amounts as follows: $1.0 million in April 2022 and the remaining $1.2 million in August 2022.

The Company has determined the fair value of the liabilities for the contingent consideration based on a probability-weighted discounted cash flow analysis. This fair value measurement is based on significant inputs not observable in the market and thus represents a Level 3 measurement within the fair value hierarchy. The fair value of the contingent consideration liability associated with future payments was based on several factors, the most significant of which are the financial performance of the acquired businesses and the risk-adjusted discount rate for the fair value measurement.

The Company will update its assumptions each reporting period based on new developments and record such amounts at fair value based on the revised assumptions until the agreements expire.

5)     Inventories

Inventories from continuing operations are comprised of the following (in thousands):

	March 31, 2022		June 30, 2021
Raw materials	$	53,415	$	47,000
Work in process		22,740		22,539
Finished goods		27,775		22,323
Total	$	103,930	$	91,862

Distribution costs associated with the sale of inventory, which are recorded as a component of selling, general and administrative expenses in the accompanying unaudited condensed consolidated statements of operations were $2.5 million and $3.0 million for the three months ended  March 31, 2022 and 2021, respectively. Distribution costs were $11.1 million and $8.4 million for the nine months ended March 31, 2022 and 2021, respectively.

6)     Goodwill

Changes to goodwill by segment during the period were as follows (in thousands):

	June 30, 2021		Acquisitions		Translation Adjustment			March 31, 2022
Electronics	$	144,832	$	6,001	$	(7,814	)	$	143,019
Engraving		77,378		-		(632	)		76,746
Scientific		15,454		-		-			15,454
Engineering Technologies		37,085		-		(482	)		36,603
Specialty Solutions		3,305		-		-			3,305
Total	$	278,054	$	6,001	$	(8,928	)	$	275,127

7)     Warranty Reserves

The expected cost associated with warranty obligations on our products is recorded as a component of cost of sales when the revenue is recognized. The Company’s estimate of warranty cost is based on contract terms and historical warranty loss experience that is periodically adjusted for recent actual experience. Since warranty estimates are forecasts based on the best available information, claims costs may differ from amounts provided. Adjustments to initial obligations for warranties are made as changes in the obligations become reasonably estimable.

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The changes in warranty reserves from continuing operations, which are recorded as a component of accrued liabilities were as follows (in thousands):

	March 31, 2022			June 30, 2021
Balance at beginning of year	$	2,086		$	1,781
Acquisitions and other charges		(68	)		68
Warranty expense		856			2,007
Warranty claims		(960	)		(1,770	)
Balance at end of period	$	1,914		$	2,086

8)     Debt

Long-term debt is comprised of the following (in thousands):

	March 31, 2022			June 30, 2021
Bank credit agreements	$	200,000		$	200,000
Total funded debt		200,000			200,000
Issuance cost		(255	)		(510	)
Total long-term debt	$	199,745		$	199,490

Bank Credit Agreements

During the second quarter of fiscal year 2019, the Company entered into a five-year Amended and Restated Credit Agreement (“Credit Facility”, or “facility”). The facility has a borrowing limit of $500 million, which can be increased by an amount of up to $250 million, in accordance with specified conditions contained in the agreement. The facility also includes a $10 million sublimit for swing line loans and a $35 million sublimit for letters of credit.

At March 31, 2022, the Company had standby letters of credit outstanding, primarily for insurance purposes, of $6.2 million and had the ability to borrow $299.5 million under the facility. Funds borrowed under the facility  may be used for the repayment of debt, working capital, capital expenditures, acquisitions (so long as certain conditions, including a specified funded debt to EBITDA leverage ratio is maintained), and other general corporate purposes.  The facility contains customary representations, warranties and restrictive covenants, as well as specific financial covenants which the Company was compliant with as of  March 31, 2022.  At March 31, 2022, the carrying value of the current borrowings approximate fair value.

9) Accrued Liabilities

Accrued liabilities consist of the following (in thousands):

	March 31, 2022		June 30, 2021
Payroll and employee benefits	$	27,137	$	32,550
Workers' compensation		2,118		2,118
Warranty reserves		1,914		2,086
Fair value of derivatives		331		4,318
Operating lease current liability		6,820		7,933
Other		18,865		12,712
Total	$	57,185	$	61,717

10)      Derivative Financial Instruments

The Company is exposed to market risks from changes in interest rates, commodity prices and changes in foreign currency rates. The Company selectively uses derivative financial instruments in order to manage certain of these risks. Information about the Company’s derivative financial instruments is as follows:

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Interest Rate Swaps

From time to time as dictated by market opportunities, the Company enters into interest rate swap agreements designed to manage exposure to interest rates on the Company’s variable rate indebtedness. The Company recognizes all derivatives on its balance sheet at fair value. The Company has designated its interest rate swap agreements, including those that may be forward-dated, as cash flow hedges, and changes in the fair value of the swaps are recognized in other comprehensive income until the hedged items are recognized in earnings. Hedge ineffectiveness, if any, associated with the swaps will be reported by the Company in interest expense.

The Company’s effective swap agreements convert the base borrowing rate on $200 million of debt due under our revolving credit agreement from a variable rate equal to 1 month LIBOR to a weighted average fixed rate of 1.27% at March 31, 2022. The fair value of the swaps, recognized in accrued liabilities and in other comprehensive income, is as follows (in thousands, except percentages):

Effective Date	Notional Amount	Fixed Interest Rate	Maturity	March 31, 2022			June 30, 2021
May 24, 2017	25,000	1.88%	April 24, 2022	$	(32	)	$	(374	)
August 6, 2018	25,000	2.83%	August 6, 2023		(299	)		(1,401	)
March 23, 2020	100,000	0.91%	March 23, 2025		4,540			(907	)
April 24, 2020	25,000	0.88%	April 24, 2025		1,203			(192	)
May 24, 2020	25,000	0.91%	March 24, 2025		1,138			(222	)
				$	6,550		$	(3,096	)

The Company reported no losses for the three and nine months ended March 31, 2022, as a result of hedge ineffectiveness. Future changes in these swap arrangements, including termination of the agreements, may result in a reclassification of any gain or loss reported in accumulated other comprehensive income (loss) into earnings as an adjustment to interest expense. Accumulated other comprehensive income (loss) related to these instruments is being amortized into interest expense concurrent with the hedged exposure.

Foreign Exchange Contracts

Forward foreign currency exchange contracts are used to limit the impact of currency fluctuations on certain anticipated foreign cash flows, such as collections from customers and loan payments between subsidiaries. The Company enters into such contracts for hedging purposes only. The Company has designated certain of these currency contracts as hedges, and changes in the fair value of these contracts are recognized in other comprehensive income until the hedged items are recognized in earnings. Hedge ineffectiveness, if any, associated with these contracts will be reported in net income. At March 31, 2022 and June 30, 2021, the Company had outstanding forward contracts related to hedges of intercompany loans with net unrealized assets of $0.2 million and losses of $1.0 million, respectively, which approximate the unrealized gains and losses on the related loans. The contracts have maturity dates ranging from fiscal year 2022 to 2024, which correspond to the related intercompany loans.

The notional amounts of the Company’s forward contracts, by currency, are as follows (in thousands):

Currency	March 31, 2022		June 30, 2021
USD		-		987
EUR		5,750		5,750
SGD		5,000		21,836
CAD		16,600		20,600

The table below presents the fair value of derivative financial instruments as well as their classification on the balance sheet (in thousands):

	Asset Derivatives
	March 31, 2022			June 30, 2021
Derivative designated	Balance			Balance
as hedging instruments	Sheet			Sheet
	Line Item	Fair Value		Line Item	Fair Value
Interest rate swaps	Prepaid expenses and other current assets	$	6,881		$	-
Foreign exchange contracts	Prepaid expenses and other current assets		169	Prepaid expenses and other current assets		255
		$	7,050		$	255

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	Liability Derivatives
	March 31, 2022			June 30, 2021
Derivative designated	Balance			Balance
as hedging instruments	Sheet			Sheet
	Line Item	Fair Value		Line Item	Fair Value
Interest rate swaps	Accrued liabilities	$	331	Accrued liabilities	$	3,096
Foreign exchange contracts	Accrued liabilities		-	Accrued liabilities		1,222
		$	331		$	4,318

The table below presents the amount of gain (loss) recognized in comprehensive income on our derivative financial instruments (effective portion) designated as hedging instruments and their classification within comprehensive income for the periods ended (in thousands):

	Three Months Ended					Nine Months Ended
	March 31,					March 31,
	2022			2021		2022		2021
Interest rate swaps	$	6,045		$	2,282	$	7,885	$	1,801
Foreign exchange contracts		(217	)		1,465		5		1,731
	$	5,828		$	3,747	$	7,890	$	3,532

The table below presents the amount reclassified from accumulated other comprehensive income (loss) to net income for the periods ended (in thousands):

Details about Accumulated											Affected line item
Other Comprehensive	Three Months Ended					Nine Months Ended					in the Unaudited
Income (Loss) Components	March 31,					March 31,					Condensed Statements
	2022		2021			2022		2021			of Operations
Interest rate swaps	$	557	$	570		$	1,761	$	1,698		Interest expense
Foreign exchange contracts		207		(506	)		826		(513	)	Other non-operating (income) expense, net
	$	764	$	64		$	2,587	$	1,185

11)     Retirement Benefits

The Company has defined benefit pension plans covering certain current and former employees both inside and outside of the U.S. The Company’s pension plan for U.S. employees is frozen for substantially all participants and has been replaced with a defined contribution benefit plan.

Net periodic benefit cost for the Company’s U.S. and Foreign pension benefit plans for the periods ended consisted of the following components (in thousands):

	U.S. Plans						Non-U.S. Plans
	Three Months Ended						Three Months Ended
	March 31,						March 31,
	2022			2021			2022			2021
Service cost	$	1		$	1		$	58		$	55
Interest cost		1,830			1,860			193			185
Expected return on plan assets		(3,260	)		(3,253	)		(215	)		(161	)
Recognized net actuarial loss		1,384			1,483			84			193
Amortization of prior service cost		-			-			(1	)		(1	)
Net periodic benefit cost	$	(45	)	$	91		$	119		$	271

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	U.S. Plans						Non-U.S. Plans
	Nine Months Ended						Nine Months Ended
	March 31,						March 31,
	2022			2021			2022			2021
Service cost	$	3		$	3		$	179		$	164
Interest cost		5,490			5,579			576			539
Expected return on plan assets		(9,779	)		(9,759	)		(641	)		(468	)
Recognized net actuarial loss		4,151			4,450			253			562
Amortization of prior service cost		-			-			(3	)		(4	)
Net periodic benefit cost	$	(135	)	$	273		$	364		$	793

The following table sets forth the amounts recognized for the Company's defined benefit pension plans (in thousands):

Amounts recognized in the consolidated balance sheets consist of:	March 31, 2022			June 30, 2021
Prepaid benefit cost	$	5,485		$	5,661
Current liabilities		(596	)		(517	)
Non-current liabilities		(42,311	)		(47,425	)
Net amount recognized	$	(37,422	)	$	(42,281	)

The contributions made to defined benefit plans are presented below along with remaining contributions to be made for fiscal year 2022 (in thousands):

	Fiscal Year 2022				Fiscal Year 2021				Remaining
	Three Months Ended		Nine Months Ended		Three Months Ended		Nine Months Ended		Contributions
Contributions to defined benefit plans	March 31, 2022		March 31, 2022		March 31, 2021		March 31, 2021		FY 2022
United States, funded plan	$	-	$	-	$	3,030	$	7,805	$	-
United States, unfunded plan		52		157		53		157		54
United Kingdom		-		-		-		-		-
Germany, unfunded plan		-		-		-		-		280
Ireland		-		-		-		-		65
	$	52	$	157	$	3,083	$	7,962	$	399

12)     Income Taxes

The Company's effective tax rate from continuing operations for the third quarter of fiscal year 2022 was 24.0% compared with 56.3% for the prior year quarter. The tax rate was impacted in the current period by the following items: (i) a discrete benefit related to a reduction in an uncertain tax position, (ii) a discrete benefit related to a return to provision adjustment, and (iii) the jurisdictional mix of earnings. The tax rate was impacted in the prior period by the following items: (i) reduction of global intangible low-taxed income, (ii) the jurisdictional mix of earnings and (iii) the establishment of a valuation allowance against our deferred tax asset attributable to the divestiture of Enginetics Corporation during the quarter. The divestiture of the Enginetics business gave rise to a capital loss carryforward, which, if unused, will expire after 5 years. Capital losses are allowed only to the extent of capital gains; however, because the Company did not have capital gains in the prior period or the applicable carryback period, the capital loss was carried forward. The Company believes it is more likely than not that the capital loss carryforward will expire unutilized. Therefore, a full valuation allowance was established, which negatively impacted the effective tax rate. The valuation allowance could be released if it is determined that the Company will have sufficient taxable income of the appropriate character within the carryforward period.

The Company's effective tax rate from continuing operations for the first nine months of the fiscal year ending June 30, 2022 was 24.5% compared with 25.3% for the prior year period. The tax rate was impacted in the current period by the following items: (i) a discrete tax benefit related to equity compensation, (ii) a discrete benefit related to a reduction in an uncertain tax position, (iii) a discrete benefit related to a return to provision adjustment, (iv) the jurisdictional mix of earnings, and (v) foreign withholding taxes.

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13)     Earnings Per Share

The following table sets forth a reconciliation of the number of shares (in thousands) used in the computation of basic and diluted earnings per share:

	Three Months Ended				Nine Months Ended
	March 31,				March 31,
	2022		2021		2022		2021
Basic - Average shares outstanding		11,982		12,136		12,009		12,185
Dilutive effect of unvested, restricted stock awards		107		117		112		82
Diluted - Average shares outstanding		12,089		12,253		12,121		12,267

Earnings available to common stockholders are the same for computing both basic and diluted earnings per share. There were no outstanding instruments that had an anti-dilutive effect at March 31, 2022 or 2021.

Performance stock units of 142,170 and 129,427 for the nine months ended March 31, 2022 and 2021, respectively, are excluded from the diluted earnings per share calculation as the performance criteria have not been met.

14)     Accumulated Other Comprehensive Income (Loss)

The components of the Company’s accumulated other comprehensive income (loss) are as follows (in thousands):

	March 31, 2022			June 30, 2021
Foreign currency translation adjustment	$	(38,587	)	$	(21,244	)
Unrealized pension losses, net of tax		(88,863	)		(92,372	)
Unrealized gains (losses) on derivative instruments, net of tax		5,580			(2,524	)
Total	$	(121,870	)	$	(116,140	)

15)     Contingencies

From time to time, the Company is subject to various claims and legal proceedings, including claims related to environmental remediation, either asserted or unasserted, that arise in the ordinary course of business. While the outcome of these proceedings and claims cannot be predicted with certainty, the Company’s management does not believe that the outcome of any of the currently existing legal matters will have a material impact on the Company’s consolidated financial position, results of operations or cash flow. The Company accrues for losses related to a claim or litigation when the Company’s management considers a potential loss probable and can reasonably estimate such potential loss.

Litigation

In the second quarter of fiscal year 2019, a lawsuit was filed against Standex Electronics, Inc. ("Electronics"), a wholly owned subsidiary of the Company, by Miniature Precision Components, Inc. ("MPC"), a customer, seeking damages in connection with allegedly faulty sensors designed and manufactured by Electronics.  The subject sensors were incorporated by MPC into a subassembly sold by MPC to its customer, an automotive manufacturer. MPC alleges that the sensors incorrectly activated a diagnostic code in vehicles for which MPC’s customer issued a service bulletin, resulting in significant warranty costs for MPC. In the litigation, which is pending in the U.S. District Court for the Eastern District of Wisconsin, MPC seeks indemnification from Electronics for its costs. Electronics has numerous defenses to MPC’s claims. Trial for this case is currently scheduled for July 2022. During the second quarter of fiscal year 2022, the Company engaged in unsuccessful mediation with MPC, during which the Company offered to settle the matter in order to avoid the inherent risk of litigation as well as the cost of diverting internal resources. As a result, the Company has recorded $1.7 million as accrued liabilities related to this litigation. Based upon developments to date, the Company believes that the range of any reasonably possible loss, in excess of amounts accrued, would be between $0 and $6.3 million. The estimated range of reasonably possible loss is based upon currently available information and is subject to significant judgement and a variety of assumptions and known and unknown uncertainties.

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16)     Industry Segment Information

The Company has five reportable segments organized around the types of products sold:

• Electronics – manufactures and sells electronic components for applications throughout the end user market spectrum;

• Engraving – provides mold texturizing, slush molding tools, project management and design services, roll engraving, hygiene product tooling, low observation vents for stealth aircraft, and process machinery for a number of industries; 

• Scientific – sells specialty temperature-controlled equipment for the medical, scientific, pharmaceutical, biotech and industrial markets; 

• Engineering Technologies – provides net and near net formed single-source customized solutions in the manufacture of engineered components for the aviation, aerospace, defense, energy, industrial, medical, marine, oil and gas, and manned and unmanned space markets; 

• Specialty Solutions – an aggregation of three operating segments that manufacture and sell refrigerated, heated and dry merchandizing display cases, custom fluid pump solutions, and single and double acting telescopic and piston rod hydraulic cylinders. 

Net sales and income (loss) from continuing operations by segment were as follows (in thousands):

	Three Months Ended March 31,
	Net Sales				Income from Operations
	2022		2021		2022			2021
Industry segment:
Electronics	$	79,889	$	65,085	$	19,194		$	12,364
Engraving		37,223		36,026		5,728			4,510
Scientific		18,914		24,221		4,155			5,803
Engineering Technologies		20,890		19,951		2,327			1,245
Specialty Solutions		32,365		26,933		3,632			4,251
Corporate		-		-		(8,961	)		(7,162	)
Restructuring costs		-		-		(1,186	)		(482	)
Loss on sale of business		-		-		-			(14,624	)
Acquisition related costs		-		-		(419	)		(255	)
Other operating income (expense), net		-		-		-			-
Sub-total	$	189,281	$	172,216	$	24,470		$	5,650
Interest expense						1,238			1,317
Other non-operating (income) expense						340			306
Income from continuing operations before income taxes					$	22,892		$	4,027

	Nine Months Ended March 31,
	Net Sales				Income from Operations
	2022		2021		2022			2021
Industry segment:
Electronics	$	232,351	$	180,524	$	54,624		$	30,861
Engraving		109,037		110,377		15,806			16,884
Scientific		65,079		58,777		14,153			14,113
Engineering Technologies		56,558		55,091		5,540			3,076
Specialty Solutions		87,575		75,028		10,185			11,368
Corporate		-		-		(25,507	)		(21,607	)
Restructuring costs		-		-		(2,469	)		(2,478	)
Loss on sale of business		-		-		-			(14,624	)
Acquisition related costs		-		-		(1,561	)		(850	)
Other operating income (expense), net		-		-		(1,700	)		-
Sub-total	$	550,600	$	479,797	$	69,071		$	36,743
Interest expense						4,484			4,403
Other non-operating (income) expense						651			73
Income from continuing operations before income taxes					$	63,936		$	32,267

22

Net sales include only transactions with unaffiliated customers and include no intersegment sales. Income (loss) from operations by segment excludes interest expense and other non-operating (income) expense.

17)      Restructuring

The Company has undertaken a number of initiatives that have resulted in severance, restructuring, and related charges.

2022 Restructuring Initiatives

The Company continues to focus its efforts to reduce cost and improve productivity across its businesses, particularly through headcount reductions, facility closures, and consolidations. Restructuring expenses primarily related to headcount reductions and other cost saving initiatives. The Company expects the 2022 restructuring activities to be completed by 2023. 

Prior Year Restructuring Initiatives 

Restructuring expenses primarily related to headcount reductions and facility rationalization within our Specialty Solutions segment. The Company also incurred restructuring expenses related to third party assistance with analysis and implementation of these activities. The Company expects the prior year restructuring activities to be completed by 2022.

A summary of charges by initiative is as follows (in thousands):

	Three Months Ended						Nine Months Ended
	March 31, 2022						March 31, 2022
Fiscal Year 2022	Involuntary Employee Severance and Benefit Costs		Other		Total		Involuntary Employee Severance and Benefit Costs		Other		Total
Current year initiatives	$	966	$	220	$	1,186	$	1,637	$	832	$	2,469

	Three Months Ended						Nine Months Ended
	March 31, 2021						March 31, 2021
Fiscal Year 2021	Involuntary Employee Severance and Benefit Costs		Other		Total		Involuntary Employee Severance and Benefit Costs		Other		Total
Current year initiatives	$	292	$	178	$	470	$	755	$	540	$	1,295
Prior year initiatives		12		-		12		906		277		1,183
	$	304	$	178	$	482	$	1,661	$	817	$	2,478

Activity in the reserve related to the initiatives is as follows (in thousands):

Current Year Initiatives	Involuntary Employee Severance and Benefit Costs			Other			Total
Restructuring liabilities at June 30, 2021	$	-		$	-		$	-
Additions and adjustments		1,637			832			2,469
Payments		(1,060	)		(765	)		(1,825	)
Restructuring liabilities at March 31, 2022	$	577		$	67		$	644

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Prior Year Initiatives	Involuntary Employee Severance and Benefit Costs			Other			Total
Restructuring liabilities at June 30, 2021	$	39		$	10		$	49
Additions and adjustments		-			-			-
Payments		(39	)		(10	)		(49	)
Restructuring liabilities at March 31, 2022	$	-		$	-		$	-

Prior Year Initiatives	Involuntary Employee Severance and Benefit Costs			Other			Total
Restructuring liabilities at June 30, 2020	$	520		$	18		$	538
Additions and adjustments		1,661			817			2,478
Payments		(2,181	)		(835	)		(3,016	)
Restructuring liabilities at March 31, 2021	$	-		$	-		$	-

The Company’s total restructuring expenses by segment are as follows (in thousands):

	Three Months Ended						Nine Months Ended
	March 31, 2022						March 31, 2022
	Involuntary Employee Severance and Benefit Costs		Other		Total		Involuntary Employee Severance and Benefit Costs		Other		Total
Electronics	$	441	$	65	$	506	$	513	$	83	$	596
Engraving		379		149		528		832		679		1,511
Engineering Technologies		97		6		103		238		6		244
Specialty Solutions		-		-		-		-		64		64
Corporate		49		-		49		54		-		54
	$	966	$	220	$	1,186	$	1,637	$	832	$	2,469

	Three Months Ended						Nine Months Ended
	March 31, 2021						March 31, 2021
	Involuntary Employee Severance and Benefit Costs		Other		Total		Involuntary Employee Severance and Benefit Costs		Other		Total
Electronics	$	56	$	16	$	72	$	307	$	21	$	328
Engraving		248		162		410		528		510		1,038
Engineering Technologies		-		-		-		37		-		37
Specialty Solutions		-		-		-		673		286		959
Corporate		-		-		-		116		-		116
	$	304	$	178	$	482	$	1,661	$	817	$	2,478

Restructuring expense is expected to be approximately $1.5 million for the remainder of fiscal year 2022.

18)      Subsequent Events 

On April 28, 2022, the Company's Board of Directors authorized a new share repurchase program of up to $100 million following the completion of the $0.6 million remaining under the current share repurchase authorization at March 31, 2022. 

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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

Statements contained in this Quarterly Report that are not based on historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of forward-looking terminology such as “should,” “could,” “may,” “will,” “expect,” “believe,” “estimate,” “anticipate,” “intend,” “continue,” or similar terms or variations of those terms or the negative of those terms. There are many factors that affect the Company’s business and the results of its operations and that may cause the actual results of operations in future periods to differ materially from those currently expected or anticipated. These factors include, but are not limited to: the impact of pandemics such as the current coronavirus on employees, our supply chain, and the demand for our products and services around the world; materially adverse or unanticipated legal judgments, fines, penalties or settlements; conditions in the financial and banking markets, including fluctuations in exchange rates and the inability to repatriate foreign cash; domestic and international economic conditions, including the impact, length and degree of economic downturns on the customers and markets we serve and more specifically conditions in the automotive, construction, aerospace, defense, transportation, food service equipment, consumer appliance, energy, oil and gas and general industrial markets; lower-cost competition; the relative mix of products which impact margins and operating efficiencies in certain of our businesses; the impact of higher raw material and component costs, particularly steel, certain materials used in electronics parts, petroleum based products, and refrigeration components; the impact of higher transportation and logistics costs, especially with respect to transportation of goods from Asia; the impact of inflation on the costs of providing our products and services; an inability to realize the expected cost savings from restructuring activities including effective completion of plant consolidations, cost reduction efforts including procurement savings and productivity enhancements, capital management improvements, strategic capital expenditures, and the implementation of lean enterprise manufacturing techniques; the potential for losses associated with the exit from or divestiture of businesses that are no longer strategic or no longer meet our growth and return expectations; the inability to achieve the savings expected from global sourcing of raw materials and diversification efforts in emerging markets; the impact on cost structure and on economic conditions as a result of actual and threatened increases in trade tariffs; the inability to attain expected benefits from acquisitions and the inability to effectively consummate and integrate such acquisitions and achieve synergies envisioned by the Company; market acceptance of our products; our ability to design, introduce and sell new products and related product components; the ability to redesign certain of our products to continue meeting evolving regulatory requirements; the impact of delays initiated by our customers; our ability to increase manufacturing production to meet demand including as a result of labor shortages; and potential changes to future pension funding requirements. In addition, any forward-looking statements represent management's estimates only as of the day made and should not be relied upon as representing management's estimates as of any subsequent date. While the Company may elect to update forward-looking statements at some point in the future, the Company and management specifically disclaim any obligation to do so, even if management's estimates change.

Overview

We are a diversified industrial manufacturer with leading positions in a variety of products and services that are used in diverse commercial and industrial markets. We have seven operating segments aggregated into five reportable segments: Electronics, Engraving, Scientific, Engineering Technologies, and Specialty Solutions. Three operating segments are aggregated into Specialty Solutions. Our segments differentiate themselves by collaborating with our customers in order to develop and deliver custom solutions or engineered components that solve problems for our customers or otherwise meet their needs (a business model we refer to as “Customer Intimacy”). Overall management, strategic development and financial control are led by the executive staff at our corporate headquarters located in Salem, New Hampshire. 

Our long-term strategy is to enhance shareholder value by building larger, more profitable focused industrial platforms through our Standex Value Creation System that assists management in meeting specific corporate and business unit financial and strategic performance goals in order to create, improve, and enhance shareholder value. In so doing, we expect to focus our financial assets and managerial resources on our higher growth and operating margin businesses while considering divestiture of those businesses that we feel are not strategic or do not meet our growth and return expectations. 

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The Standex Value Creation System is a methodology which provides standard work and consistent tools used throughout the Company in order to achieve our organization’s goals. The Standex Value Creation System employs four components: Balanced Performance Plan, Growth Disciplines, Operational Excellence, and Talent Management. The Balanced Performance Plan process aligns annual goals throughout the Company and provides a standard reporting, management and review process.  It is focused on setting, tracking and reviewing annual and quarterly targets that support our short and long-term goals.  The Growth Disciplines use a standard playbook of tools and processes including market maps, market tests and growth laneways to identify, explore and execute on opportunities that expand the business organically and through acquisitions.  Operational Excellence also employs a standard playbook of tools and processes, based on Lean, to improve operating execution (effectiveness), eliminate waste (efficiency) and thereby improve profitability, cash flow and customer satisfaction.  Finally, Talent Management is an organizational development process that provides recruitment, training, development, and succession planning for employees throughout our worldwide organization.  Through the use of our Standex Value Creation System, we have developed a balanced approach to value creation.  We intend to continue investing acquisition capital in high margin and growth businesses, and we will continue to support all of our businesses as they enhance value through deployment of the Standex Valuation Creation System.

It is our objective to grow larger and more profitable business units through both organic initiatives and acquisitions.  We seek to identify and implement organic growth initiatives such as new product development, geographic expansion, the introduction of products and technologies into new markets, key accounts and strategic sales channel partners, and the introduction of new technologies into existing markets. To advance this strategy, we recently established an innovation and technology function focused on accelerating new growth opportunities for emerging technologies, including our ongoing development project with a global solar energy company. Also, we have a long-term objective to create sizable business platforms by adding strategically aligned or “bolt on” acquisitions to strengthen the individual businesses, create both sales and cost synergies with our core business platforms, and accelerate their growth and margin improvement.  We look to create both sales and cost synergies within our core business platforms, accelerate growth and improve margins.  We have a particular focus on identifying and investing in opportunities that complement our products and will increase the global presence and capabilities of our businesses.  From time to time, we have divested, and likely will continue to divest, businesses that we feel are not strategic or do not meet our growth and return expectations.

As part of our ongoing strategy:

● In the third quarter of fiscal year 2022, we acquired Sensor Solutions, a designer and manufacturer of customized standard magnetic sensor products including hall effect switch and latching sensors, linear and rotary sensors, and specialty sensors. Sensor Solutions' customer base in automotive, industrial, medical, aerospace, military and consumer electronics end markets are a strategic fit and expand our presence in these markets. Sensor Solution's operates one light manufacturing facility in Colorado. Its results are reported within our Electronics segment. 

● In the third quarter of fiscal year 2021, we divested Enginetics Corporation (“Enginetics”), our jet engine components business reported within our Engineering Technologies segment, to Enjet Aero, LLC, a privately-held aerospace engine component manufacturing company. This divestiture allowed us to focus on the higher growth and margin opportunities of our core spin forming solutions business that serves the space, commercial aviation and defense end markets. We received $11.7 million cash consideration and recorded a loss on the sale of $14.6 million in the Consolidated Financial Statements. 

● In the first quarter of fiscal year 2021, we acquired Renco Electronics (“Renco”), a designer and manufacturer of customized standard magnetics components and products including transformers, inductors, chokes and coils for power and RF applications.  Renco’s end markets and customer base in areas such as consumer and industrial applications are highly complementary to our existing business with the potential to further expand key account relationships and capitalize on cross selling opportunities.  Renco operates one manufacturing facility in Florida and is supported by contract manufacturers in Asia.  Renco’s results are reported within our Electronics segment.

As a result of our portfolio moves over the past several years, we have transformed Standex to a company with a more focused group of businesses selling customized solutions to high value end markets via a compelling customer value proposition.  The narrowing of the portfolio allows for greater management focus on driving operational disciplines and positions us well to continue benefitting from the economic rebound associated with the emergence from the end of the COVID-19 crisis and to use our cash flow from operations to invest selectively in our ongoing pipeline of organic and inorganic opportunities.

We develop “Customer Intimacy” by utilizing the Standex Growth Disciplines to partner with our customers in order to develop and deliver custom solutions or engineered components. By partnering with our customers during long-term product development cycles, we become an extension of their development teams. Through this Partner, Solve, Deliver® approach, we are able to secure our position as a preferred long-term solution provider for our products and components. This strategy results in increased sales and operating margins that enhance shareholder returns. 

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Standex Operational Excellence drives continuous improvement in the efficiency of our businesses, both on the shop floor and in the office environment.  We recognize that our businesses are competing in a global economy that requires us to improve our competitive position.  We have deployed a number of management competencies to drive improvements in the cost structure of our business units including operational excellence through lean enterprise, the use of low-cost manufacturing facilities, the consolidation of manufacturing facilities to achieve economies of scale and leveraging of fixed infrastructure costs, alternate sourcing to achieve procurement cost reductions, and capital improvements to increase productivity.

The Company’s strong historical cash flow has been a cornerstone for funding our capital allocation strategy.  We use cash flow generated from operations to fund investments in capital assets to upgrade our facilities, improve productivity and lower costs, invest in the strategic growth programs described above, including organic growth and acquisitions, and to return cash to our shareholders through payment of dividends and stock buybacks. 

Restructuring expenses reflect costs associated with our efforts of continuously improving operational efficiency and expanding globally in order to remain competitive in our end user markets. We incur costs for actions to size our businesses to a level appropriate for current economic conditions, improve our cost structure, enhance our competitive position and increase operating margins. Such expenses include costs for moving facilities to locations that allow for lower fixed and variable costs, external consultants who provide additional expertise starting up plants after relocation, downsizing operations because of changing economic conditions, and other costs resulting from asset redeployment decisions.  Shutdown costs include severance, benefits, stay bonuses, lease and contract terminations, asset write-downs, costs of moving fixed assets, and moving and relocation costs. Vacant facility costs include maintenance, utilities, property taxes and other costs.

Because of the diversity of the Company’s businesses, end user markets and geographic locations, management does not use specific external indices to predict the future performance of the Company, other than general information about broad macroeconomic trends.  Each of our individual business units serves niche markets and attempts to identify trends other than general business and economic conditions which are specific to its business and which could impact its performance. Those units report pertinent information to senior management, which uses it to the extent relevant to assess the future performance of the Company. A description of any such material trends is described below in the applicable segment analysis.

We monitor a number of key performance indicators (“KPIs”) including net sales, income from operations, backlog, effective income tax rate, gross profit margin, and operating cash flow. A discussion of these KPIs is included below. We may also supplement the discussion of these KPIs by identifying the impact of foreign exchange rates, acquisitions, and other significant items when they have a material impact on a specific KPI. 

We believe the discussion of these items provides enhanced information to investors by disclosing their impact on the overall trend which provides a clearer comparative view of the KPI, as applicable.  For discussion of the impact of foreign exchange rates on KPIs, we calculate the impact as the difference between the current period KPI calculated at the current period exchange rate as compared to the KPI calculated at the historical exchange rate for the prior period.  For discussion of the impact of acquisitions, we isolate the effect on the KPI amount that would have existed regardless of such acquisition.  Sales resulting from synergies between the acquisition and existing operations of the Company are considered organic growth for the purposes of our discussion.

Unless otherwise noted, references to years are to fiscal years.

Impact of COVID-19 Pandemic on the Company

Given the global nature of our business and the number of our facilities worldwide, we continue to be impacted globally by COVID-19 related issues. We have taken effective action around the world to protect our health and safety, continue to serve our customers, support our communities and manage our cash flows.  Our priority was and remains the health and safety of all of our employees. Each of our facilities is following safe practices as defined in their local jurisdictions as well as sharing experiences and innovative ways of overcoming challenges brought on by the crisis during updates with global site leaders.  We are rigorously following health protocols in our plants, including changing work cell configurations and revising shift schedules when appropriate, in order to do our best to maintain operations. Initially, we experienced revenue reductions in many of our businesses due to the impact that the pandemic had on our customers. Conversely, public and private sector responses to COVID-19 vaccine distribution, especially in the United States, have resulted in increased sales of scientific refrigeration equipment to customers within our Scientific reporting segment. While overall customer demand has rebounded from the impact of the pandemic, more recently we have been impacted by (i) supply chain shortages, (ii) increased material costs and (iii) labor shortages, especially in North America. Like other industrial manufacturers, we are impacted by the impact of rising inflation which we attempt to manage through appropriate pricing actions and enhanced production efficiency measures.

27

We exited the third quarter of fiscal year 2022 with $133.9 million in cash and $199.7 million of borrowings under our revolving credit facility.  Our leverage ratio covenant, as defined in our revolving credit agreement, was 1.15 to 1 and allowed us the capacity to borrow an additional $299.5 million at March 31, 2022. We believe that we have sufficient liquidity around the world and access to financing to execute on our short and long-term strategic plans. 

Finally, we continue to monitor our ability to participate in any governmental assistance programs available to us in each of our global locations and participate in these programs as available and appropriate. 

Results from Continuing Operations

	Three Months Ended						Nine Months Ended
	March 31,						March 31,
(In thousands, except percentages)	2022			2021			2022			2021
Net sales	$	189,281		$	172,216		$	550,600		$	479,797
Gross profit margin		36.1	%		36.4	%		36.9	%		36.6	%
Income from operations		24,470			5,650			69,071			36,743

	Three Months Ended			Nine Months Ended
(In thousands)	March 31, 2022			March 31, 2022
Net sales, prior year period	$	172,216		$	479,797
Components of change in sales:
Organic sales change		25,012			82,623
Effect of acquisitions		394			394
Effect of business divestitures		(3,901	)		(9,239	)
Effect of exchange rates		(4,440	)		(2,975	)
Net sales, current period	$	189,281		$	550,600

Net sales increased in the third quarter of fiscal year 2022 by $17.1 million or 9.9% when compared to the prior year quarter. Organic sales increased $25.0 million or 14.5%, primarily due to pricing actions and strong demand in our Electronics segment, while foreign currency had a $4.4 million or 2.6% negative impact on sales. Sales in the prior year quarter included revenue of $3.9 million related to our divested Enginetics business. The Sensor Solutions acquisition in the third quarter of fiscal year 2022 added $0.4 million in sales for the year.

Net sales increased in the nine months ended March 31, 2022 by $70.8 million or 14.8% when compared to the prior year period. Organic sales increased $82.6 million or 17.2%, primarily due to pricing actions and strong demand in our Electronics and Scientific segments, while foreign currency had a $3.0 million or 0.6% negative impact on sales. Sales in the prior year period included revenue of $9.2 million related to our divested Enginetics business. The Sensor Solutions acquisition in the third quarter of fiscal year 2022 added $0.4 million in sales for the year.

Gross Profit Margin

Our gross margin for the third quarter of fiscal year 2022 was 36.1%, which declined slightly from the prior year quarter’s gross margin of 36.4%. This decline is primarily the result of project mix, and raw material and ocean freight cost headwinds, offset by organic sales increases and price and productivity initiatives across our segments.

Our gross margin for the nine months ended March 31, 2022 was 36.9%, which increased from the prior year quarter’s gross margin of 36.6%. This increase is a result of organic sales increases and price and productivity initiatives, partially offset by raw material and ocean freight cost headwinds, a one-time project related charge at Engineering Technologies in the first quarter, along with production decreases due to a temporary work stoppage in our Specialty Solutions segment which was resolved during the first quarter.

Selling, General, and Administrative Expenses

Selling, General, and Administrative (“SG&A”) expenses for the third quarter of fiscal year 2022 were $42.3 million, or 22.4% of sales, compared to $41.7 million, or 24.2% of sales, during the prior year quarter. SG&A expenses during the quarter were impacted by increased compensation related accruals and research and development costs.

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SG&A expenses for the nine months ended March 31, 2022 were $128.6 million, or 23.4% of sales, compared to $120.8 million, or 25.2% of sales, during the nine months ended March 31, 2021.  SG&A expenses during the period were impacted by increases in compensation related accruals, distribution expense of approximately $2.7 million associated with the customer mix and higher organic sales volume and increased research and development costs.

Restructuring Charges

We incurred restructuring expenses of $1.2 million in the third quarter of fiscal year 2022 and $2.5 million for the nine months ended March 31, 2022, primarily related to productivity improvements and global headcount reductions within our Engraving and Electronics segments.

We expect to incur restructuring costs of approximately $1.5 million throughout the remainder of fiscal year 2022, as we continue to focus our efforts to reduce cost and improve productivity across our businesses, particularly through headcount reductions and productivity initiatives.

Acquisition Related Expenses

We incurred acquisition related expenses of $0.4 million in the third quarter of fiscal year 2022 and $1.6 million for the nine months ended March 31, 2022. Acquisition related expenses typically consist of due diligence, integration, and valuation expenses incurred in connection with recent or pending acquisitions.

Income from Operations

Income from operations for the third quarter of fiscal year 2022 was $24.5 million, compared to $5.7 million during the prior year quarter.  The increase of $18.8 million, or 333.1%, is primarily due to the impact of the loss recognized on the sale of our Enginetics business in the third quarter of fiscal year 2021, organic sales growth, productivity and cost savings initiatives, offset by increases in material, logistics and labor costs.

Income from operations for the nine months ended March 31, 2022 was $69.1 million, compared to $36.7 million during the prior year quarter.  The increase of $32.3 million, or 88.0%, is primarily due to the impact of the sale of our Enginetics business in the third quarter of fiscal year 2021, organic sales growth, productivity and cost savings initiatives, offset by increases in material costs.

Interest Expense

Interest expense for the third quarter of fiscal year 2022 was $1.2 million, a 6.0% decrease from interest expense of $1.3 million during the prior year quarter. Interest expense for the nine months ended March 31, 2022 was $4.5 million, a 1.8% increase from interest expense of $4.4 million during the prior year. Our effective interest rate in the third quarter of fiscal year 2022 was 2.63%.

Income Taxes

Our effective tax rate from continuing operations for the third quarter of fiscal year 2022 was 24.0% compared with 56.3% for the prior year quarter. The tax rate was impacted in the current period by the following items: (i) a discrete benefit related to a reduction in an uncertain tax position, (ii) a discrete benefit related to a return to provision adjustment, and (iii) the jurisdictional mix of earnings. The tax rate was impacted in the prior period by the following items: (i) reduction of global intangible low-taxed income, (ii) the jurisdictional mix of earnings and (iii) the establishment of a valuation allowance against our deferred tax asset attributable to the divestiture of Enginetics Corporation during the quarter. The divestiture of the Enginetics business gave rise to a capital loss carryforward, which, if unused, will expire after 5 years. Capital losses are allowed only to the extent of capital gains; however, because we did not have capital gains in the prior period or the applicable carryback period, the capital loss was carried forward. We believe it is more likely than not that the capital loss carryforward will expire unutilized. Therefore, a full valuation allowance was established, which negatively impacted the effective tax rate. The valuation allowance could be released if it is determined that we will have sufficient taxable income of the appropriate character within the carryforward period.

Our effective tax rate from continuing operations for the first nine months of the fiscal year ending June 30, 2022 was 24.5% compared with 25.3% for the prior year period. The tax rate was impacted in the current period by the following items: (i) a discrete tax benefit related to equity compensation, (ii) a discrete benefit related to a reduction in an uncertain tax position, (iii) a discrete benefit related to a return to provision adjustment, (iv) the jurisdictional mix of earnings, and (v) foreign withholding taxes.

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Backlog

Backlog includes all active or open orders for goods and services. Backlog also includes any future deliveries based on executed customer contracts, so long as such deliveries are based on agreed upon delivery schedules. Backlog orders are not necessarily an indicator of future sales levels because of variations in lead times and customer production demand pull systems, with the exception of Engineering Technologies. Customers may delay delivery of products or cancel orders prior to shipment, subject to possible cancellation penalties. Due to the nature of long-term agreements in the Engineering Technologies segment, the timing of orders and delivery dates can vary considerably resulting in significant backlog changes from one period to another. 

	As of March 31, 2022				As of March 31, 2021
	Total Backlog		Backlog under 1 year		Total Backlog		Backlog under 1 year
Electronics	$	164,786	$	151,033	$	97,241	$	96,331
Engraving		26,097		19,868		20,108		13,901
Scientific		6,542		6,542		9,344		9,344
Engineering Technologies		55,564		41,197		67,615		39,574
Specialty Solutions		51,948		48,342		20,776		17,957
Total	$	304,937	$	266,982	$	215,084	$	177,107

Total backlog realizable under one year increased $89.9 million, or 50.7%, to $267.0 million at March 31, 2022 from $177.1 million at March 31, 2021. Electronics total backlog increased 67% in all geographic markets in response to the beginning of the global recovery from the pandemic and new business opportunities, plus an additional $2.4 million due to the acquisition of Sensor Solutions. Backlog declines in the Engineering Technologies segment are primarily due to project related timing, particularly in the space end market. 

Changes in backlog under one year are as follows (in thousands):

	As of
(In thousands)	March 31, 2022
Backlog under 1 year, prior year period	$	177,107
Components of change in backlog:
Organic change		87,455
Effect of acquisitions		2,420
Backlog under 1 year, current period	$	266,982

Segment Analysis

Overall

Looking forward to the remainder of fiscal year 2022, we expect to be well positioned to build on fiscal year 2021 and the nine months ended March 31, 2022 momentum, with anticipated year over year improvement in key financial metrics, supported by orders growth and productivity initiatives.

In general, for the fourth quarter of fiscal year 2022, we expect: 

● continued end market strength in reed switch and relay products as well as growth in magnetics in our Electronics segment;

● an increase in soft trim demand in our Engraving segment;

● a decline in demand for COVID-19 related vaccine storage in our Scientific segment;

● continued strength in the commercial aviation market and growth in the space market in our Engineering Technologies segment;

● strong demand in the food service equipment market in our Specialty Solutions segment; and

● a delay in sales due to the impact of the COVID related lockdown in China, primarily in our Electronics segment.

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Electronics Group

	Three Months Ended									Nine Months Ended
	March 31,						%			March 31,						%
(In thousands, except percentages)	2022			2021			Change			2022			2021			Change
Net sales	$	79,889		$	65,085			22.7	%	$	232,351		$	180,524			28.7	%
Income from operations		19,194			12,364			55.2	%		54,624			30,861			77.0	%
Operating income margin		24.0	%		19.0	%					23.5	%		17.1	%

Net sales in the third quarter of fiscal year 2022 increased $14.8 million, or 22.7%, when compared to the prior year quarter.  Organic sales increased by $17.6 million or 27.1%, reflecting a broad-based geographical recovery with continued strong demand for all product groups as well as new business opportunities. Sensor Solutions was acquired in the third quarter of fiscal year 2022, adding $0.4 million in sales for the quarter. The foreign currency impact decreased sales by $3.2 million, or 5.0%.

Income from operations in the third quarter of fiscal year 2022 increased by $6.8 million, or 55.2%, when compared to the prior year quarter. The operating income increase was the result of organic sales growth, various price actions and cost saving initiatives, partially offset by material and freight cost increases.

Net sales in the nine months ended March 31, 2022 increased $51.8 million, or 28.7%, when compared to the prior year period. Organic sales increased by $54.4 million or 30.1%, reflecting a broad-based geographical recovery with a strengthening in demand for all product groups including relays in renewable energy and electric vehicle applications as well as reed switch demand in transportation end markets and the impact of pricing actions. The acquisition of Sensor Solutions during the third quarter of fiscal year 2022 added $0.4 million in sales. The foreign currency impact decreased sales by $2.9 million, or 1.6%. 

Income from operations in the nine months ended March 31, 2022 increased by $23.8 million, or 77.0% when compared to the prior year period. The operating income increase was the result of organic sales growth, various price actions and cost saving initiatives, partially offset by material and freight cost increases.

Sequentially during the fourth quarter of fiscal year 2022, we expect moderate decline in revenue and operating margin mostly due to the COVID lockdown in China, partially offset by continued strong global demand across all key markets.

Engraving Group

	Three Months Ended									Nine Months Ended
	March 31,						%			March 31,						%
(In thousands, except percentages)	2022			2021			Change			2022			2021			Change
Net sales	$	37,223		$	36,026			3.3	%	$	109,037		$	110,377			(1.2	%)
Income from operations		5,728			4,510			27.0	%		15,806			16,884			(6.4	%)
Operating income margin		15.4	%		12.5	%					14.5	%		15.3	%

Net sales in the third quarter of fiscal year 2022 increased by $1.2 million, or 3.3%, when compared to the prior year quarter. Organic sales increased by $2.0 million, or 5.5% as a result of timing of projects and geographic mix. The sales increase was offset by foreign exchange impacts of $0.8 million, or 2.2%. 

Income from operations in the third quarter of fiscal year 2022 increased by $1.2 million, when compared to the prior year quarter.  Operating income increased during the quarter reflecting timing of projects, geographic mix and productivity initiatives.

Net sales in the nine months ended March 31, 2022 decreased by $1.3 million, or 1.2%, when compared to the prior year period. Organic sales decreased by $1.7 million, or 1.5% as a result of timing of projects.  Foreign exchange impacts increased sales by $0.4 million, or 0.3%.

Income from operations in the nine months ended March 31, 2022 decreased by $1.1 million, when compared to the prior year period.  Operating income decreased during the period due to the volume decline and sales mix, partially offset by productivity initiatives.

Sequentially during the fourth quarter of fiscal year 2022, we expect a slight decline in revenue and operating margin due to the timing of projects and geographic mix. In addition, we are implementing new cost savings and margin improvement actions targeting $2 million of annualized savings upon completion.

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Scientific

	Three Months Ended									Nine Months Ended
	March 31,						%			March 31,						%
(In thousands, except percentages)	2022			2021			Change			2022			2021			Change
Net sales	$	18,914		$	24,221			(21.9	%)	$	65,079		$	58,777			10.7	%
Income from operations		4,155			5,803			(28.4	%)		14,153			14,113			0.3	%
Operating income margin		22.0	%		24.0	%					21.7	%		24.0	%

Net sales in the third quarter of fiscal year 2022 decreased by $5.3 million, or 21.9% when compared to the prior year quarter. The net sales decrease reflects ongoing sales in pharmaceutical, clinical laboratories, and academic institution end markets, offset by lower demand associated with COVID-19 vaccination storage.

Income from operations in the third quarter of fiscal year 2022 decreased $1.6 million, or 28.4% when compared to the prior year quarter. The decrease reflects lower volume and higher freight costs, partially offset by price and productivity actions.

Net sales for the nine months ended March 31, 2022 increased $6.3 million, or 10.7%, compared to the prior year period. The net sales increase reflects overall growth in end markets, such as pharmaceutical channels, clinical settings, and academic laboratories, including continued strong demand for cold storage surrounding COVID-19 vaccine distribution and the general market recovery as well as pricing actions.

Income from operations in the nine months ended March 31, 2022 increased by less than $0.1 million compared to the prior period. This reflects revenue growth and pricing actions, offset by higher freight costs and investments in new product development.

Sequentially during the fourth quarter of fiscal year 2022, we expect similar revenue and a slight decline in operating margin due to product mix. 

Engineering Technologies Group

	Three Months Ended									Nine Months Ended
	March 31,						%			March 31,						%
(In thousands, except percentages)	2022			2021			Change			2022			2021			Change
Net sales	$	20,890		$	19,951			4.7	%	$	56,558		$	55,091			2.7	%
Income from operations		2,327			1,245			86.9	%		5,540			3,076			80.1	%
Operating income margin		11.1	%		6.2	%					9.8	%		5.6	%

Net sales in the third quarter of fiscal year 2022 increased by $0.9 million, or 4.7%, compared to the prior year quarter. Sales in the prior year quarter included revenue of $3.9 million related to our divested Enginetics business.  Excluding the impact of the divestiture, sales increased $4.9 million or 24.7% primarily due to strong demand in the commercial aviation industry, defense and medical end markets.

Income from operations increased $1.1 million, or 86.9%, in the third quarter of fiscal year 2022 compared to the prior year quarter primarily due to increased volume, along with the absences of losses associated with the Enginetics business.

Net sales in the nine months ended March 31, 2022 increased by $1.5 million, or 2.7%, compared to the prior year period. Sales in the prior year period included revenue of $9.2 million related to our divested Enginetics business.  Excluding the impact of the divestiture, sales increased $10.7 million primarily due to customer demand in the commercial aviation and defense markets, along with an increase in sales into the space end market, particularly related to commercialization of space.

Income from operations increased $2.5 million, or 80.1%, in the nine months ended March 31, 2022 compared to the prior year period primarily due to cost saving measures implemented during the pandemic and maintained as economic activity resumed along with the absences of losses associated with the Enginetics business, offset by a $1.1 million one-time project-related charge during the first quarter.

Sequentially during the fourth quarter of fiscal year 2022, we expect revenue to remain similar or slightly higher due to strength in the commercial space and aviation end markets. Operating margin is expected to increase slightly to moderately due to end market strength particularly in the commercial space end market, combined with productivity initiatives and reduced labor shortages.

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Specialty Solutions Group

	Three Months Ended									Nine Months Ended
	March 31,						%			March 31,						%
(In thousands, except percentages)	2022			2021			Change			2022			2021			Change
Net sales	$	32,365		$	26,933			20.2	%	$	87,575		$	75,028			16.7	%
Income from operations		3,632			4,251			(14.6	%)		10,185			11,368			(10.4	%)
Operating income margin		11.2	%		15.8	%					11.6	%		15.2	%

Net sales in the third quarter of fiscal year 2022 increased $5.4 million or 20.2% when compared to the prior year quarter. Organic sales increased $5.8 million, or 21.4%. Increased sales volume is primarily due to positive trends in food service equipment and refuse end markets, as well as various pricing actions. 

Income from operations decreased $0.6 million or 14.6% in the third quarter of fiscal year 2022 when compared to the prior year quarter reflecting the impact of material inflation and increased freight costs primarily in our Hydraulics business partially offset by volume growth and pricing actions.

Net sales in the nine months ended March 31, 2022 increased $12.5 million or 16.7% when compared to the prior year period. Organic sales increased $13.0 million, or 17.3%. Increased sales volume is primarily due to a continued recovery in the Pumps and Merchandising businesses and pricing actions, partially offset by the impact of a temporary work stoppage which was resolved during the first quarter.

Income from operations decreased $1.2 million or 10.4% in the nine months ended March 31, 2022 when compared to the prior year period primarily as a result of higher costs of labor, including the temporary work stoppage in the first quarter and higher raw material and ocean freight costs, partially offset by pricing actions.

Sequentially during the fourth quarter of fiscal year 2022, we expect revenue to increase slightly due to increased production levels at our Hydraulics business, and solid demand in our display merchandising business. We expect a moderate increase to operating margin due to increased demand and productivity initiatives.

Corporate and Other

	Three Months Ended									Nine Months Ended
	March 31,						%			March 31,						%
(In thousands, except percentages)	2022			2021			Change			2022			2021			Change
Income (loss) from operations:
Corporate	$	(8,961	)	$	(7,162	)		25.1	%	$	(25,507	)	$	(21,607	)		18.0	%
Loss on sale of business		-			(14,624	)		(100	%)		-			(14,624	)		(100.0	%)
Restructuring		(1,186	)		(482	)		146.1	%		(2,469	)		(2,478	)		(0.4	%)
Acquisition related costs		(419	)		(255	)		64.3	%		(1,561	)		(850	)		83.6	%
Other income (expense), net		-			-			0.0	%		(1,700	)		-			100.0	%

Corporate expenses in the third quarter of fiscal year 2022 and in the nine months ended March 31, 2022 increased by 25.1%, and 18.0%, respectively, when compared to the prior year period. The increase is related to employee related compensation accruals and research and development costs.

The restructuring and acquisition related costs have been discussed above in the Company Overview. The increase in other expenses in the nine months ended March 31, 2022 reflects a $1.7 million litigation accrual in the second quarter of fiscal year 2022.

Discontinued Operations

In pursuing our business strategy, the Company may divest certain businesses.  Future divestitures may be classified as discontinued operations based on their strategic significance to the Company. Net loss from discontinued operations was $0.1 million and $0.3 million for the three months ended March 31, 2022 and 2021, respectively. Net loss from discontinued operations was $0.1 million and $1.6 million for the nine months ended March 31, 2022 and 2021, respectively.

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Liquidity and Capital Resources

At March 31, 2022, our total cash balance was $133.9 million, of which $100.6 million was held by foreign subsidiaries.  During the third quarter and in the first nine months of fiscal year 2022, we repatriated $4.5 million and $20.4 million, respectively to the United States from our foreign subsidiaries. We expect to repatriate between $10.0 million and $15.0 million during the fourth quarter of fiscal year 2022, however, the amount and timing of cash repatriation during the fiscal year will be dependent upon each business unit’s operational needs including requirements to fund working capital, capital expenditures, and jurisdictional tax payments. The repatriation of cash balances from certain of our subsidiaries could have adverse tax consequences or be subject to capital controls; however, those balances are generally available without legal restrictions to fund ordinary business operations.

Net cash provided by continuing operating activities for the nine months ended March 31, 2022, was $48.6 million compared to net cash provided by continuing operating activities of $49.3 million in the prior year.  We generated $31.2 million from income statement activities and used $30.9 million of cash to fund working capital and other balance sheet increases.  Cash flow used in investing activities for the nine months ended March 31, 2022 totaled $17.3 million and primarily consisted of $13.1 million used for capital expenditures, $9.9 million used for the acquisition of Sensor Solutions, $5.0 million generated by proceeds from a life insurance policy related to the death of a retired Company executive, $1.7 million generated by sales of property, plant, and equipment, and $1.0 million used in other investing activities. Cash used by financing activities for the nine months ended March 31, 2022 was $30.4 million and consisted primarily of purchases of stock of $21.4 million, cash paid for dividends of $9.1 million, and contingent consideration payments due to the seller of the Renco business of $1.2 million.

During the second quarter of fiscal year 2019, we entered into a five-year Amended and Restated Credit Agreement (“credit agreement”, or “facility”) with a borrowing limit of $500 million.  The facility can be increased by an amount of up to $250 million, in accordance with specified conditions contained in the agreement.  The facility also includes a $10 million sublimit for swing line loans and a $35 million sublimit for letters of credit. 

Under the terms of the Credit Facility, we pay a variable rate of interest and a commitment fee on borrowed amounts as well as a commitment fee on unused amounts under the facility.  The amount of the commitment fee depends upon both the undrawn amount remaining available under the facility and the Company’s funded debt to EBITDA (as defined in the agreement) ratio at the last day of each quarter.  As our funded debt to EBITDA ratio increases, the commitment fee increases. 

Funds borrowed under the facility may be used for the repayment of debt, working capital, capital expenditures, acquisitions (so long as certain conditions, including a specified funded debt to EBITDA leverage ratio is maintained), and other general corporate purposes.  As of March 31, 2022, the Company used $6.2 million against the letter of credit sub-facility and had the ability to borrow $299.5 million under the facility based on our current trailing twelve-month EBITDA.  The facility contains customary representations, warranties and restrictive covenants, as well as specific financial covenants. The Company’s current financial covenants under the facility are as follows:

Interest Coverage Ratio - The Company is required to maintain a ratio of Earnings Before Interest and Taxes, as Adjusted (“Adjusted EBIT per the Credit Facility”), to interest expense for the trailing twelve months of at least 2.75:1.  Adjusted EBIT per the Credit Facility specifically excludes extraordinary and certain other defined items such as cash restructuring and acquisition related charges up to the lower of $20.0 million or 10% of EBITDA.  The facility also allows for unlimited non-cash charges including purchase accounting and goodwill adjustments.  At March 31, 2022, the Company’s Interest Coverage Ratio was 15.9.

Leverage Ratio - The Company’s ratio of funded debt to trailing twelve month Adjusted EBITDA per the Credit Facility, calculated as Adjusted EBIT per the Credit Facility plus depreciation and amortization, may not exceed 3.5:1.  Under certain circumstances in connection with a Material Acquisition (as defined in the Facility), the Facility allows for the leverage ratio to go as high as 4.0:1 for a four-fiscal quarter period.  At March 31, 2022, the Company’s Leverage Ratio was 1.15.

As of March 31, 2022, we had borrowings under our facility of $200.0 million. In order to manage our interest rate exposure on these borrowings, we are party to $200.0 million of active floating to fixed rate swaps.  These swaps convert our interest payments from LIBOR to a weighted average fixed rate of 1.27%.  The effective rate of interest for our outstanding borrowings, including the impact of the interest rate swaps, was 2.63%.

Our primary cash requirements in addition to day-to-day operating needs include interest payments, capital expenditures, acquisitions, share repurchases, and dividends.  Our primary sources of cash for these requirements are cash flows from continuing operations and borrowings under the facility.  We expect fiscal year 2022 capital spending to be approximately $25.0 million which includes amounts not spent in fiscal year 2021.  We also expect that fiscal year 2022 depreciation and amortization expense will be an estimated $21.0 million and $12.0 million, respectively.

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The following table sets forth our capitalization:

(In thousands)	March 31, 2022			June 30, 2021
Long-term debt	$	199,745		$	199,490
Less cash and cash equivalents		(133,902	)		(136,367	)
Net debt		65,843			63,123
Stockholders' equity		527,620			506,425
Total capitalization	$	593,463		$	569,548

We sponsor a number of defined benefit and defined contribution retirement plans.  The U.S. pension plan is frozen for substantially all participants.  We have evaluated the current and long-term cash requirements of these plans, and our existing sources of liquidity are expected to be sufficient to cover required contributions under ERISA and other governing regulations.

The fair value of the Company's U.S. defined benefit pension plan assets was $186.9 million at March 31, 2022, as compared to $212.6 million at the most recent measurement date, which occurred as of June 30, 2021. The next measurement date to determine plan assets and benefit obligations will be on June 30, 2022.

The Company expects to pay $0.4 million in contributions to its defined benefit plans during the remainder of fiscal year 2022. Contributions of $0.1 million and $0.2 million were made during the three and nine months ended March 31, 2022 compared to $3.1 million and $8.0 million during the three and nine months ended March 31, 2021, respectively. The Company does not expect to make additional contributions during fiscal year 2022 to its U.S. defined benefit plan.  The Company expects to make contributions during fiscal year 2022 of $0.1 million and $0.3 million to its unfunded defined benefit plans in the U.S. and Germany, respectively.  Any subsequent plan contributions will depend on the results of future actuarial valuations.

We have an insurance program in place to fund supplemental retirement income benefits for four retired executives.  Current executives and new hires are not eligible for this program.  At March 31, 2022, the underlying policies had a cash surrender value of $6.0 million and are reported net of loans of $5.1 million for which we have the legal right of offset, these amounts are reported net on our balance sheet.

Other Matters

Inflation – Certain of our expenses, such as wages and benefits, occupancy costs, freight and equipment repair and replacement, are subject to normal inflationary pressures. Inflation for medical costs can impact both our employee benefit costs as well as our reserves for workers' compensation claims. We monitor the inflationary rate and make adjustments to reserves whenever it is deemed necessary. Our ability to control worker compensation insurance medical cost inflation is dependent upon our ability to manage claims and purchase insurance coverage to limit the maximum exposure for us. Each of our segments is subject to the effects of changing raw material costs caused by the underlying commodity price movements. We have experienced price fluctuations for a number of materials including rhodium, steel, and other metal commodities. These materials are some of the key elements in the products manufactured in these segments.  Wherever possible, we will implement price increases to offset the impact of changing prices.  The ultimate acceptance of these price increases will be impacted by our affected divisions’ respective competitors and the timing of their price increases. In general, we do not enter into purchase contracts that extend beyond one operating cycle. While Standex considers our relationship with our suppliers to be good, there can be no assurances that we will not experience any supply shortage.

Foreign Currency Translation – Our primary functional currencies used by our non-U.S. subsidiaries are the Euro, British Pound Sterling (Pound), Japanese (Yen), and Chinese (Yuan).

Defined Benefit Pension Plans – We record expenses related to these plans based upon various actuarial assumptions such as discount rates, mortality rates, and assumed rates of returns.  The Company’s pension plan is frozen for substantially all eligible U.S. employees and participants in the plan ceased accruing future benefits. 

Environmental Matters – To the best of our knowledge, we believe that we are presently in substantial compliance with all existing applicable environmental laws and regulations and do not anticipate any instances of non-compliance that will have a material effect on our future capital expenditures, earnings or competitive position.

Seasonality – We are a diversified business with generally low levels of seasonality.

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Employee Relations – The Company has labor agreements with several union locals in the United States and several European employees belong to European trade unions. 

Critical Accounting Policies

The condensed consolidated financial statements include the accounts of Standex International Corporation and all of its subsidiaries. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make estimates and assumptions in certain circumstances that affect amounts reported in the accompanying condensed consolidated financial statements.  Although we believe that materially different amounts would not be reported due to the accounting policies adopted, the application of certain accounting policies involves the exercise of judgment and use of assumptions as to future uncertainties and, as a result, actual results could differ from these estimates.  Our Annual Report on Form 10-K for the year ended June 30, 2021 lists a number of accounting policies which we believe to be the most critical.

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Risk Management

We are exposed to market risks from changes in interest rates, commodity prices and changes in foreign currency exchange.  To reduce these risks, we selectively use, from time to time, financial instruments and other proactive management techniques.  We have internal policies and procedures that place financial instruments under the direction of the Treasurer and restrict all derivative transactions to those intended for hedging purposes only.  The use of financial instruments for trading purposes (except for certain investments in connection with the non-qualified defined contribution plan) or speculation is strictly prohibited.  The Company has no majority-owned subsidiaries that are excluded from the consolidated financial statements.  Further, we have no interests in or relationships with any special purpose entities. 

Exchange Rate Risk

We are exposed to both transactional risk and translation risk associated with exchange rates.  The transactional risk is mitigated, in large part, by natural hedges developed with locally denominated debt service on intercompany accounts.  We also mitigate certain of our foreign currency exchange rate risks by entering into forward foreign currency contracts from time to time.  The contracts are used as a hedge against anticipated foreign cash flows, such as loan payments, customer remittances, and materials purchases, and are not used for trading or speculative purposes.  The fair values of the forward foreign currency exchange contracts are sensitive to changes in foreign currency exchange rates, as an adverse change in foreign currency exchange rates from market rates would decrease the fair value of the contracts.  However, any such losses or gains would generally be offset by corresponding gains and losses, respectively, on the related hedged asset or liability.  At March 31, 2022 the fair value, in the aggregate, of the Company’s open foreign exchange contracts was an asset of $0.2 million.

Our primary translation risk is with the Euro, British Pound Sterling, Peso, Japanese Yen and Chinese Yuan.  A hypothetical 10% appreciation or depreciation of the value of any these foreign currencies to the U.S. Dollar at March 31, 2022, would not result in a material change in our operations, financial position, or cash flows.  We hedge our most significant foreign currency translation risks primarily through cross currency swaps and other instruments, as appropriate.

Interest Rate Risk

The Company’s effective interest rate on borrowings was 2.63% at March 31, 2022.  Our interest rate exposure is limited primarily to interest rate changes on our variable rate borrowings and is mitigated by our use of interest rate swap agreements to modify our exposure to interest rate movements.  At March 31, 2022, we have $200.0 million of active floating to fixed rate swaps with terms ranging from one to four years.  These swaps convert our interest payments from LIBOR to a weighted average rate of 1.27%.  At March 31, 2022 the fair value, in the aggregate, of the Company’s interest rate swaps was assets of $6.6 million. A 25-basis point increase in interest rates would not change our annual interest expense as all of our outstanding debt is currently converted to fixed rate debts by means of interest rate swaps.

Concentration of Credit Risk

We have a diversified customer base. As such, the risk associated with concentration of credit risk is inherently minimized. As of March 31, 2022, no one customer accounted for more than 5% of our consolidated outstanding receivables or of our sales.

Commodity Prices

The Company is exposed to fluctuating market prices for all commodities used in its manufacturing processes.  Each of our segments is subject to the effects of changing raw material costs caused by the underlying commodity price movements.  In general, we do not enter into purchase contracts that extend beyond one operating cycle.  While Standex considers our relationship with our suppliers to be good, there can be no assurances that we will not experience any supply shortage.

The Engineering Technologies, Specialty Solutions, and Electronics segments are all sensitive to price increases for steel and aluminum products, other metal commodities such as rhodium and copper, and petroleum-based products.  We have experienced price fluctuations for a number of materials including rhodium, steel, and other metal commodities.  These materials are some of the key elements in the products manufactured in these segments.  Wherever possible, we will implement price increases to offset the impact of changing prices.  The ultimate acceptance of these price increases, if implemented, will be impacted by our affected divisions’ respective competitors and the timing of their price increases.

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ITEM 4.     CONTROLS AND PROCEDURES

At the end of the period covered by this Report, the management of the Company, including the Chief Executive Officer and the Chief Financial Officer, evaluated the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended (“Exchange Act”)). Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective as of March 31, 2022 in ensuring that the information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's ("SEC") rules and forms, and that such information is accumulated and communicated to the Company’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

There was no change in the Company's internal control over financial reporting during the quarterly period ended March 31, 2022 that has materially affected or is reasonably likely to materially affect the Company's internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 5. Unregistered Sales of Equity Securities and Use of Proceeds

(c) The following table provides information about purchases by the Company of equity securities that are registered by the Company pursuant to Section 12 of the Exchange Act:

Issuer Purchases of Equity Securities⁽¹⁾

Quarter Ended March 31, 2022

Period	(a) Total number of shares (or units) purchased		(b) Average price paid per share (or unit)		(c) Total number of shares (or units) purchased as part of publicly announced plans or programs		(d) Maximum number (or appropriate dollar value) of shares (or units) that may yet be purchased under the plans or programs
January 1 - January 31, 2022		-	$	-		-	$	12,522
February 1 - February 28, 2022		112,008		105.91		112,008		659
March 1 - March 31, 2022		108		103.06		108		648
Total		112,116	$	105.91		112,116	$	648

⁽¹⁾ The Company has a Stock Buyback Program (the “Program”) which was originally announced on January 30, 1985 and most recently amended on April 26, 2016. Under the Program, the Company was authorized to repurchase up to an aggregate of $100 million of its shares. Under the program, purchases may be made from time to time on the open market, including through 10b5-1 trading plans, or through privately negotiated transactions, block transactions, or other techniques in accordance with prevailing market conditions and the requirements of the Securities and Exchange Commission. The Board’s authorization is open-ended and does not establish a timeframe for the purchases. The Company is not obligated to acquire a particular number of shares, and the program may be discontinued at any time at the Company’s discretion.

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Item 6. Exhibits

(a) Exhibits

31.1	Principal Executive Officer’s Certification Pursuant to Rule 13a-14(a)/15d-14(a) and Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Principal Financial Officer’s Certification Pursuant to Rule 13a-14(a)/15d-14(a) and Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32	Principal Executive Officer and Principal Financial Officer Certifications Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101	The following materials from this Quarterly Report on Form 10-Q, formatted in Inline Extensible Business Reporting Language (iXBRL): (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Operations, (iii) Condensed Consolidated Statements of Comprehensive Income, (iv) Condensed Consolidated Statements of Cash Flows, and (v) Notes to Unaudited Condensed Consolidated Financial Statements.
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

ALL OTHER ITEMS ARE INAPPLICABLE 

40

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		STANDEX INTERNATIONAL CORPORATION
Date:	May 6, 2022	/s/ ADEMIR SARCEVIC
		Ademir Sarcevic
		Vice President/Chief Financial Officer
		(Principal Financial & Accounting Officer)
Date:	May 6, 2022	/s/  SEAN C. VALASHINAS
		Sean C. Valashinas
		Vice President/Chief Accounting Officer/Assistant Treasurer

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EX-31.1

EXHIBIT 31.1

RULE 13a-14(a) CERTIFICATION

I, David Dunbar, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Standex International Corporation for the quarter ending March 31, 2022;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 6, 2022

/s/ David Dunbar

______________________________

David Dunbar

President/Chief Executive Officer

EX-31.2

EXHIBIT 31.2

RULE 13a-14(a) CERTIFICATION

I, Ademir Sarcevic, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Standex International Corporation for the quarter ending March 31, 2022;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 6, 2022

/s/ Ademir Sarcevic

______________________________

Ademir Sarcevic

Vice President/Chief Financial Officer

EX-32

EXHIBIT 32

Certification

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

(18 U.S.C. Sec. 1350)

With Respect to the Standex International Corporation

Quarterly Report on Form 10-Q

For the Fiscal Quarter Ended March 31, 2022

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code), the undersigned Chief Executive Officer and Chief Financial Officer respectively of Standex International Corporation, a Delaware corporation (the “Company”) do hereby certify that:

1. The Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2022 (the “Form 10-Q”) fully complies with the requirements of Section 13(a) or 15(d) as applicable, of the Securities Exchange Act of 1934, as amended; and

2. Information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated:         May 6, 2022	/s/ David Dunbar
	David Dunbar
	Chief Executive Officer
Dated:         May 6, 2022	/s/ Ademir Sarcevic
	Ademir Sarcevic
	Chief Financial Officer

XML

Document And Entity Information - shares	9 Months Ended
	Mar. 31, 2022	May 03, 2022
Document Information [Line Items]
Entity Central Index Key	0000310354
Entity Registrant Name	STANDEX INTERNATIONAL CORP/DE/
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2022
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2022
Document Transition Report	false
Entity File Number	001-07233
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	31-0596149
Entity Address, Address Line One	23 Keewaydin drive
Entity Address, City or Town	Salem
Entity Address, State or Province	NH
Entity Address, Postal Zip Code	03079
City Area Code	603
Local Phone Number	893-9701
Title of 12(b) Security	Common Stock, Par Value $1.50 Per Share
Trading Symbol	SXI
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		12,069,658

XML

Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2022	Jun. 30, 2021
Current Assets:
Cash and cash equivalents	$ 133,902	$ 136,367
Accounts receivable, less allowance for credit losses of $1,997 and $1,588 at March 31, 2022 and June 30, 2021, respectively	115,428	109,883
Inventories	103,930	91,862
Prepaid expenses and other current assets	41,800	23,504
Income taxes receivable	15,584	12,750
Total current assets	410,644	374,366
Property, plant, and equipment, net	128,181	133,373
Intangible assets, net	91,545	98,929
Goodwill	275,127	278,054
Deferred tax asset	5,369	9,566
Operating lease right-of-use asset	35,558	37,276
Other non-current assets	27,144	30,659
Total non-current assets	562,924	587,857
Total assets	973,568	962,223
Current Liabilities:
Accounts payable	75,275	74,756
Accrued liabilities	57,185	61,717
Income taxes payable	9,279	7,236
Total current liabilities	141,739	143,709
Long-term debt	199,745	199,490
Operating lease long-term liabilities	28,683	29,041
Accrued pension and other non-current liabilities	75,781	83,558
Total non-current liabilities	304,209	312,089
Contingencies (Note 15)
Stockholders' equity:
Common stock, par value $1.50 per share, 60,000,000 shares authorized, 27,984,278 shares issued, 11,929,389 and 12,044,405 shares outstanding at March 31, 2022 and June 30, 2021	41,976	41,976
Additional paid-in capital	88,197	80,788
Retained earnings	891,303	852,489
Accumulated other comprehensive loss	(121,870)	(116,140)
Treasury shares: 16,054,889 and 15,939,873 shares at March 31, 2022 and June 30, 2021	(371,986)	(352,688)
Total stockholders' equity	527,620	506,425
Total liabilities and stockholders' equity	$ 973,568	$ 962,223

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Unaudited Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Mar. 31, 2022	Jun. 30, 2021
Reserve for doubtful accounts	$ 1,997	$ 1,588
Common stock, par value (in dollars per share)	$ 1.50	$ 1.50
Common stock, shares authorized (in shares)	60,000,000	60,000,000
Common stock, shares issued (in shares)	27,984,278	27,984,278
Common stock, shares outstanding (in shares)	11,929,389	12,044,405
Treasury stock, shares (in shares)	16,054,889	15,939,873

XML

Unaudited Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Net sales	$ 189,281	$ 172,216	$ 550,600	$ 479,797
Cost of sales	120,900	109,516	347,210	304,344
Gross profit	68,381	62,700	203,390	175,453
Selling, general, and administrative expenses	42,306	41,689	128,589	120,758
Loss on sale of business	0	14,624	0	14,624
Restructuring costs	1,186	482	2,469	2,478
Acquisition related costs	419	255	1,561	850
Other operating (income) expense, net	0	0	1,700	0
Total operating expenses	43,911	57,050	134,319	138,710
Income from operations	24,470	5,650	69,071	36,743
Interest expense	1,238	1,317	4,484	4,403
Other non-operating (income) expense, net	340	306	651	73
Income from continuing operations before income taxes	22,892	4,027	63,936	32,267
Provision for income taxes	5,484	2,269	15,677	8,155
Income from continuing operations	17,408	1,758	48,259	24,112
Income (loss) from discontinued operations, net of tax	(86)	(331)	(135)	(1,588)
Net income (loss)	$ 17,322	$ 1,427	$ 48,124	$ 22,524
Basic earnings (loss) per share:
Continuing operations (in dollars per share)	$ 1.45	$ 0.14	$ 4.02	$ 1.98
Discontinued operations (in dollars per share)	(0.01)	(0.03)	(0.01)	(0.13)
Total (in dollars per share)	1.44	0.11	4.01	1.85
Diluted earnings (loss) per share:
Continuing operations (in dollars per share)	1.44	0.14	3.98	1.97
Discontinued operations (in dollars per share)	(0.01)	(0.03)	(0.01)	(0.13)
Total (in dollars per share)	$ 1.43	$ 0.11	$ 3.97	$ 1.84
Weighted average number of shares:
Basic (in shares)	11,982	12,136	12,009	12,185
Diluted (in shares)	12,089	12,253	12,121	12,267

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Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Net income	$ 17,322	$ 1,427	$ 48,124	$ 22,524
Defined benefit pension plans:
Actuarial gains (losses) and other changes in unrecognized costs, net of tax	88	22	189	(351)
Amortization of unrecognized costs, net of tax	1,103	1,275	3,320	3,810
Derivative instruments:
Change in unrealized gains (losses), net of tax	4,340	3,185	5,949	3,089
Foreign currency translation gains (losses), net of tax	(8,018)	(11,299)	(17,343)	9,301
Other comprehensive income (loss), net of tax	(1,860)	(6,894)	(5,730)	16,616
Comprehensive income	15,462	(5,467)	42,394	39,140
Interest Expense [Member]
Derivative instruments:
Amortization of unrealized gains (losses) into interest expense, net of tax	$ 627	$ (77)	$ 2,155	$ 767

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Unaudited Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Treasury Stock [Member]	Total
Balance at Jun. 30, 2020	$ 41,976	$ 72,752	$ 827,656	$ (147,659)	$ (333,093)	$ 461,632
Balance (in shares) at Jun. 30, 2020					15,748
Stock issued under incentive compensation plans and employee purchase plans	0	(432)	0	0	$ 1,549	1,117
Stock issued under incentive compensation plans and employee purchase plans (in shares)					(72)
Stock-based compensation	0	5,658	0	0	$ 0	5,658
Treasury stock acquired	0	0	0	0	$ (16,205)	(16,205)
Treasury stock acquired (in shares)					217
Net income (loss)	0	0	22,524	0	$ 0	22,524
Foreign currency translation adjustment	0	0	0	9,301	0	9,301
Pension, net of tax	0	0	0	3,459	0	3,459
Change in fair value of derivatives, net of tax	0	0	0	3,856	0	3,856
Dividends declared	0	0	(8,689)	0	0	(8,689)
Balance at Mar. 31, 2021	41,976	77,978	841,491	(131,043)	$ (347,749)	482,653
Balance (in shares) at Mar. 31, 2021					15,893
Balance at Dec. 31, 2020	41,976	76,548	843,038	(124,149)	$ (339,223)	498,190
Balance (in shares) at Dec. 31, 2020					15,803
Stock issued under incentive compensation plans and employee purchase plans	0	60	0	0	$ 86	146
Stock issued under incentive compensation plans and employee purchase plans (in shares)					(4)
Stock-based compensation	0	1,370	0	0	$ 0	1,370
Treasury stock acquired	0	0	0	0	$ (8,612)	(8,612)
Treasury stock acquired (in shares)					94
Net income (loss)	0	0	1,427	0	$ 0	1,427
Foreign currency translation adjustment	0	0	0	(11,299)	0	(11,299)
Pension, net of tax	0	0	0	1,297	0	1,297
Change in fair value of derivatives, net of tax	0	0	0	3,108	0	3,108
Dividends declared	0	0	(2,974)	0	0	(2,974)
Balance at Mar. 31, 2021	41,976	77,978	841,491	(131,043)	$ (347,749)	482,653
Balance (in shares) at Mar. 31, 2021					15,893
Balance at Jun. 30, 2021	41,976	80,788	852,489	(116,140)	$ (352,688)	506,425
Balance (in shares) at Jun. 30, 2021					15,940
Stock issued under incentive compensation plans and employee purchase plans	0	(804)	0	0	$ 2,122	1,318
Stock issued under incentive compensation plans and employee purchase plans (in shares)					(94)
Stock-based compensation	0	8,213	0	0	$ 0	8,213
Treasury stock acquired	0	0	0	0	$ (21,420)	(21,420)
Treasury stock acquired (in shares)					209
Net income (loss)	0	0	48,124	0	$ 0	48,124
Foreign currency translation adjustment	0	0	0	(17,343)	0	(17,343)
Pension, net of tax	0	0	0	3,509	0	3,509
Change in fair value of derivatives, net of tax	0	0	0	8,104	0	8,104
Dividends declared	0	0	(9,310)	0	0	(9,310)
Balance at Mar. 31, 2022	41,976	88,197	891,303	(121,870)	$ (371,986)	527,620
Balance (in shares) at Mar. 31, 2022					16,055
Balance at Dec. 31, 2021	41,976	84,560	877,158	(120,010)	$ (360,234)	523,450
Balance (in shares) at Dec. 31, 2021					15,948
Stock issued under incentive compensation plans and employee purchase plans	0	49	0	0	$ 122	171
Stock issued under incentive compensation plans and employee purchase plans (in shares)					(5)
Stock-based compensation	0	3,588	0	0	$ 0	3,588
Treasury stock acquired	0	0	0	0	(11,874)	(11,874)
Net income (loss)	0	0	17,322	0	0	17,322
Foreign currency translation adjustment	0	0	0	(8,018)	0	(8,018)
Pension, net of tax	0	0	0	1,191	0	1,191
Change in fair value of derivatives, net of tax	0	0	0	4,967	0	4,967
Dividends declared	0	0	(3,177)	0	0	(3,177)
Balance at Mar. 31, 2022	$ 41,976	$ 88,197	$ 891,303	$ (121,870)	$ (371,986)	$ 527,620
Balance (in shares) at Mar. 31, 2022					16,055

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Unaudited Condensed Consolidated Statements of Stockholders' Equity (Parentheticals) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Pension and OPEB adjustments, tax	$ 0.4	$ 0.4	$ 1.1	$ 1.1
Change in fair value of derivatives, tax	$ 1.6	$ 0.7	$ 2.4	$ 0.9
Dividends declared, per share (in dollars per share)	$ 0.26	$ 0.24	$ 0.76	$ 0.70

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Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash flows from operating activities
Net income (loss)	$ 48,124	$ 22,524
Income (loss) from discontinued operations	(135)	(1,588)
Income from continuing operations	48,259	24,112
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	22,411	24,843
Stock-based compensation	8,213	5,658
Non-cash portion of restructuring charge	595	(538)
Loss on sale of business	0	14,624
Contributions to defined benefit plans	(157)	(7,962)
Changes in operating assets and liabilities, net	(30,693)	(11,399)
Net cash provided by operating activities - continuing operations	48,628	49,338
Net cash provided by (used in) operating activities - discontinued operations	(375)	2,225
Net cash provided by operating activities	48,253	51,563
Cash flows from investing activities
Expenditures for property, plant, and equipment	(13,138)	(15,612)
Expenditures for acquisitions, net of cash acquired	(9,902)	(27,406)
Proceeds from sale of business	0	11,678
Other investing activity	5,718	(1,449)
Net cash provided by (used in) investing activities	(17,322)	(32,789)
Cash flows from financing activities
Proceeds from borrowings	0	17,000
Payments of debt	0	(17,000)
Contingent consideration payment	(1,167)	0
Activity under share-based payment plans	1,318	1,117
Purchases of treasury stock	(21,420)	(16,205)
Cash dividends paid	(9,148)	(8,547)
Net cash provided by (used in) financing activities	(30,417)	(23,635)
Effect of exchange rate changes on cash and cash equivalents	(2,979)	4,092
Net change in cash and cash equivalents	(2,465)	(769)
Cash and cash equivalents at beginning of year	136,367	118,809
Cash and cash equivalents at end of period	133,902	118,040
Supplemental Disclosure of Cash Flow Information:
Interest	3,791	3,754
Income taxes, net of refunds	$ 14,797	$ 14,631

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Note 1 - Management Statement

9 Months Ended

Mar. 31, 2022

Notes to Financial Statements

Business Description and Basis of Presentation [Text Block]

1)     Management Statement

In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments necessary to present fairly the results of operations for the three and nine months ended March 31, 2022 and 2021, the cash flows for the nine months ended March 31, 2022 and 2021 and the financial position of Standex International Corporation (“Standex”, the “Company”, “we”, “us”, or “our”), at March 31, 2022. The interim results are not necessarily indicative of results for a full year. The following unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. The unaudited condensed consolidated financial statements and notes do not contain information which would substantially duplicate the disclosures contained in the audited annual consolidated financial statements and notes for the year ended June 30, 2021. The condensed consolidated balance sheet at June 30, 2021 was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. The financial statements contained herein should be read in conjunction with the Annual Report on Form 10-K and in particular the audited consolidated financial statements for the year ended June 30, 2021. Unless otherwise noted, references to years are to the Company’s fiscal years. Currently our fiscal year end is June 30.  For further clarity, our fiscal year 2022 includes the twelve-month period from July 1, 2021 to June 30, 2022.

The estimates and assumptions used in the preparation of the consolidated financial statements have considered the implications on the Company as a result of the COVID-19 pandemic and its related economic impacts. As a result of the COVID-19 pandemic, there is heightened volatility and uncertainty around supply chain performance, labor availability, and customer demand. However, the magnitude of such impact on the Company’s business and its duration is uncertain. The Company is not aware of any specific event or circumstance that would require an update to its estimates or adjustments to the carrying value of its assets and liabilities as of  March 31, 2022 and the issuance date of the Quarterly Report on Form 10-Q.

The Company considers events or transactions that occur after the balance sheet date but before the financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. The Company evaluated subsequent events through the date and time its unaudited condensed consolidated financial statements were issued. 

Recently Issued Accounting Pronouncements

In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance, which requires business entities to provide certain disclosures when they (1) have received government assistance and (2) use a grant or contribution accounting model by analogy to other accounting guidance. The guidance in ASU 2021-10 is effective for all entities for fiscal years beginning after December 15, 2021 with early adoption permitted. The Company does not expect the adoption of this ASU to have a significant impact on its Consolidated Financial Statements. 

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Note 2 - Acquisitions

9 Months Ended

Mar. 31, 2022

Notes to Financial Statements

Business Combination Disclosure [Text Block]

2)     Acquisitions

The Company's recent acquisitions are strategically significant to the future growth prospects of the Company. At the time of the acquisition and March 31, 2022, the Company evaluated the significance of each acquisition on a standalone basis and in aggregate, considering both qualitative and quantitative factors.

Sensor Solutions

During the third quarter of fiscal year 2022, the Company acquired Sensor Solutions, a designer and manufacturer of customized standard magnetic sensor products including hall effect switch and latching sensors, linear and rotary sensors, and specialty sensors. Sensor Solutions' customer base in automotive, industrial, medical, aerospace, military and consumer electronics end markets are a strategic fit and expand the Company's presence in these markets. Sensor Solutions operates one light manufacturing facility in Colorado. Sensor Solutions' results are reported within the Company's Electronics segment.

The Company paid $9.9 million in cash for all the issued and outstanding equity interests of Sensor Solutions. The purchase price was allocated to the net tangible and identifiable intangible assets acquired and liabilities assumed based on a valuation of their fair values on the closing date. Goodwill recorded from this transaction is attributable to Sensor Solutions' technical and applications expertise in sectors such as electric vehicles, industrial automation and medical end markets, which is highly complementary to the Company's existing business.

Identifiable intangible assets of $2.8 million consist primarily of $0.8 million for indefinite lived tradenames, and $2.0 million of customer relationships to be amortized over 10 years. The goodwill of $6.0 million created by the transaction is deductible for income tax purposes. The accounting for business combinations requires estimates and judgments regarding expectations for future cash flows of the acquired business, and the allocations of those cash flows to identifiable tangible and intangible assets, in determining the assets acquired and liabilities assumed. The fair values assigned to tangible and intangible assets acquired and liabilities assumed are based on management's best estimates and assumptions, as well as other information compiled by management, including valuations that utilize customary valuation procedures and techniques. 

The components of the fair value of the Sensor Solutions acquisition, including the preliminary allocation of the purchase price at March 31, 2022, are as follows (in thousands): 

	Preliminary Allocation as of March 31, 2022
Fair value of business combination:
Cash payments	$	10,016
Less cash acquired		(114	)
Total	$	9,902

	Preliminary Allocation as of March 31, 2022
Identifiable assets acquired and liabilities assumed:
Other acquired assets	$	490
Inventories		531
Property, plant, & equipment		232
Identifiable intangible assets		2,800
Goodwill		6,001
Liabilities assumed		(152	)
Total	$	9,902

Renco Electronics

During the first quarter of fiscal year 2021, the Company acquired Renco Electronics ("Renco"), a designer and manufacturer of customized standard magnetics components and products including transformers, inductors, chokes and coils for power and RF applications.  Renco’s end markets and customer base in areas such as consumer and industrial applications are highly complementary to our existing business with the potential to further expand key account relationships and capitalize on cross selling opportunities between the two companies.  Renco operates one manufacturing facility in Florida and is supported by contract manufacturers in Asia. Renco’s results are reported within our Electronics segment.

The Company paid $27.4 million in cash for all of the issued and outstanding equity interests of Renco Electronics. The purchase price was allocated to the net tangible and identifiable intangible assets acquired and liabilities assumed based on a valuation of their fair values on the closing date. Goodwill recorded from this transaction is attributable to Renco’s significant engineering and technical expertise in end markets supported by strong engineer-to-engineer relationships. In addition, Renco’s end markets and customer base in areas such as consumer and industrial are highly complementary to the Company’s existing business.

Identifiable intangible assets of $10.4 million consist primarily of $3.6 million for indefinite lived tradenames, and $6.8 million of customer relationships to be amortized over 12 years. The goodwill of $14.0 million created by the transaction is deductible for income tax purposes. The accounting for business combinations requires estimates and judgments regarding expectations for future cash flows of the acquired business, and the allocations of those cash flows to identifiable tangible and intangible assets, in determining the assets acquired and liabilities assumed. The fair values assigned to tangible and intangible assets acquired and liabilities assumed, including contingent consideration, are based on management’s best estimates and assumptions, as well as other information compiled by management, including valuations that utilize customary valuation procedures and techniques. 

The components of the fair value of the Renco Electronics acquisition, including the final allocation of the purchase price are as follows (in thousands):

	Final Allocation
Fair value of business combination:
Cash payments	$	29,613
Less, cash acquired		(2,207	)
Fair value of contingent consideration		3,000
Total	$	30,406

	Final Allocation
Identifiable assets acquired and liabilities assumed:
Other acquired assets	$	4,522
Inventories		5,446
Property, plant, & equipment		410
Identifiable intangible assets		10,400
Goodwill		13,991
Debt assumed		(712	)
Liabilities assumed		(3,651	)
Total	$	30,406

Acquisition Related Costs

Acquisition related costs include costs related to acquired businesses and other pending acquisitions. These costs consist of (i) deferred compensation arrangements and (ii) acquisition related professional service fees and expenses, including financial advisory, legal, accounting, and other outside services incurred in connection with acquisition activities, and regulatory matters related to acquired entities. These costs do not include purchase accounting expenses, which we define as acquired backlog and the step-up of inventory to fair value, or the amortization of the acquired intangible assets.

Acquisition related costs for the three months ended March 31, 2022, and 2021 were $0.4 million and $0.3 million, respectively. Acquisition related costs for the nine months ended March 31, 2022, and 2021 were $1.6 million and $0.9 million, respectively. 

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Note 3 - Revenue From Contracts With Customers

9 Months Ended

Mar. 31, 2022

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

3)     Revenue From Contracts With Customers

Most of the Company’s contracts have a single performance obligation which represents the product or service being sold to the customer. Some contracts include multiple performance obligations such as a product and the related installation and/or extended warranty. Additionally, most of the Company’s contracts offer assurance type warranties in connection with the sale of a product to customers. Assurance type warranties provide a customer with assurance that the product complies with agreed-upon specifications. Assurance type warranties do not represent a separate performance obligation.

In general, the Company recognizes revenue at the point in time control transfers to its customer based on predetermined shipping terms. Revenue is recognized over time under certain long-term contracts within the Engineering Technologies and Engraving groups for highly customized customer products that have no alternative use and in which the contract specifies the Company has a right to payment for its costs, plus a reasonable margin. For products manufactured over time, the transfer of control is measured pro rata, based upon current estimates of costs to complete such contracts. Losses on contracts are fully recognized in the period in which the losses become determinable. Revisions in profit estimates are reflected on a cumulative basis in the period in which the basis for such revision becomes known.

Disaggregation of Revenue from Contracts with Customers

The following table presents revenue disaggregated by product line and segment (in thousands):

	Three Months Ended
Revenue by Product Line	March 31, 2022		March 31, 2021
Electronics	$	79,889	$	65,085
Engraving Services		34,399		33,655
Engraving Products		2,824		2,371
Total Engraving		37,223		36,026
Scientific		18,914		24,221
Engineering Technologies		20,890		19,951
Hydraulics Cylinders and Systems		15,306		13,629
Merchandising & Display		8,438		6,276
Pumps		8,621		7,028
Total Specialty Solutions		32,365		26,933
Total revenue by product line	$	189,281	$	172,216

The following table presents revenue disaggregated by product line and segment (in thousands):

	Nine Months Ended
Revenue by Product Line	March 31, 2022		March 31, 2021
Electronics	$	232,351	$	180,524
Engraving Services		101,637		102,950
Engraving Products		7,400		7,427
Total Engraving		109,037		110,377
Scientific		65,079		58,777
Engineering Technologies		56,558		55,091
Hydraulics Cylinders and Systems		39,207		36,583
Merchandising & Display		23,548		19,515
Pumps		24,820		18,930
Total Specialty Solutions		87,575		75,028
Total revenue by product line	$	550,600	$	479,797

The following table presents revenue from continuing operations disaggregated by geography based on company’s locations (in thousands):

	Three Months Ended		Three Months Ended		Nine Months Ended		Nine Months Ended
Net sales	March 31, 2022		March 31, 2021		March 31, 2022		March 31, 2021
United States	$	110,076	$	103,005	$	314,657	$	286,522
Asia Pacific		37,441		31,715		116,842		89,189
EMEA (1)		37,963		34,367		108,841		93,549
Other Americas		3,801		3,129		10,260		10,537
Total	$	189,281	$	172,216	$	550,600	$	479,797

⁽¹⁾ EMEA consists primarily of Europe, Middle East and S. Africa. 

The following table presents revenue from continuing operations disaggregated by timing of recognition (in thousands) for the three months ended:

	Three Months Ended
Timing of Revenue Recognition	March 31, 2022		March 31, 2021
Products and services transferred at a point in time	$	170,949	$	163,356
Products transferred over time		18,332		8,860
Net sales	$	189,281	$	172,216

	Nine Months Ended
Timing of Revenue Recognition	March 31, 2022		March 31, 2021
Products and services transferred at a point in time	$	510,988	$	454,007
Products transferred over time		39,612		25,790
Net sales	$	550,600	$	479,797

Contract Balances

Contract assets represent sales recognized in excess of billings related to work completed but not yet shipped for which revenue is recognized over time. Contract assets are recorded as prepaid expenses and other current assets. Contract liabilities are customer deposits for which revenue has not been recognized. Current contract liabilities are recorded as accrued liabilities.

The timing of revenue recognition, invoicing and cash collections results in billed receivables, contract assets and contract liabilities on the consolidated balance sheets. When consideration is received from a customer prior to transferring goods or services to the customer under the terms of a contract, a contract liability is recorded. Contract liabilities are recognized as revenue after control of the goods and services are transferred to the customer and all revenue recognition criteria have been met.

The following table provides information about contract assets and liability balances (in thousands):

	Balance at Beginning of Period		Additions		Amount Recognized		Balance at End of Period
Nine months ended March 31, 2022
Contract assets:
Prepaid expenses and other current assets	$	15,013	$	35,091	$	25,711	$	24,393
Contract liabilities:
Customer deposits		471		10,293		10,721		43

	Balance at Beginning of Period		Additions		Amount Recognized		Balance at End of Period
Nine months ended March 31, 2021
Contract assets:
Prepaid expenses and other current assets	$	9,140	$	21,055	$	18,422	$	11,773
Contract liabilities:
Customer deposits		2,298		6,497		7,871		924

We recognized the following revenue which was included in the contract liability beginning balances (in thousands):

	March 31, 2022
Revenue recognized in the period from:	Three months ended		Nine months ended
Amounts included in the contract liability balance at the beginning of the period	$	252	$	471

	March 31, 2021
Revenue recognized in the period from:	Three months ended		Nine months ended
Amounts included in the contract liability balance at the beginning of the period	$	365	$	2,298

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Note 4 - Fair Value Measurements

9 Months Ended

Mar. 31, 2022

Notes to Financial Statements

Fair Value Disclosures [Text Block]

4)      Fair Value Measurements

The financial instruments shown below are presented at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models may be applied.

Assets and liabilities recorded at fair value in the consolidated balance sheet are categorized based upon the level of judgment associated with the inputs used to measure their fair values. Hierarchical levels directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities and the methodologies used in valuation are as follows:

Level 1 – Quoted prices (unadjusted) in active markets for identical assets and liabilities. The Company’s deferred compensation plan assets consist of shares in various mutual funds (investments are participant-directed) which invest in a broad portfolio of debt and equity securities. These assets are valued based on publicly quoted market prices for the funds’ shares as of the balance sheet dates.

Level 2 – Inputs, other than quoted prices in an active market, that are observable either directly or indirectly through correlation with market data. For foreign exchange forward contracts and interest rate swaps, the Company values the instruments based on the market price of instruments with similar terms, which are based on spot and forward rates as of the balance sheet dates. The Company has considered the creditworthiness of counterparties in valuing all assets and liabilities.

Level 3 – Unobservable inputs based upon the Company’s best estimate of what market participants would use in pricing the asset or liability.

There were no transfers of assets or liabilities between any levels of the fair value measurement hierarchy at March 31, 2022 and June 30, 2021. The Company’s policy is to recognize transfers between levels as of the date they occur.

Cash and cash equivalents, accounts receivable, accounts payable, and debt are carried at cost, which approximates fair value.

The fair values of financial instruments were as follows (in thousands):

	March 31, 2022
	Total		Level 1		Level 2		Level 3
Assets
Marketable securities - deferred compensation plan	$	3,281	$	3,281	$	-	$	-
Foreign exchange contracts		169		-		169		-
Interest rate swaps		6,881		-		6,881		-
Liabilities
Foreign exchange contracts	$	-	$	-		-	$	-
Interest rate swaps		331		-		331		-
Contingent acquisition payments (a)		2,167		-		-		2,167

	June 30, 2021
	Total		Level 1		Level 2		Level 3
Assets
Marketable securities - deferred compensation plan	$	2,988	$	2,988	$	-	$	-
Foreign exchange contracts		255		-		255		-
Liabilities
Foreign exchange contracts	$	1,222	$	-	$	1,222	$	-
Interest rate swaps		3,096		-		3,096		-
Contingent acquisition payments (a)		3,333		-		-		3,333

^(a) The fair value of contingent consideration arrangements is determined based on the Company's evaluation as to the probability and amount of any contingent consideration that has been earned to date.

The financial liabilities based upon Level 3 inputs include contingent consideration arrangements relating to the acquisitions of Renco Electronics and GS Engineering. The Company is contractually obligated to pay contingent consideration payments to the Sellers of these businesses based on the achievement of certain criteria.

The Company is contractually obligated to pay contingent consideration to the sellers of GS Engineering in the event that certain revenue and gross margin targets are achieved during the five years following acquisition. The targets set in the GS Engineering stock purchase agreement were not met for the first or second year, which concluded in the fourth quarter of fiscal years 2020 and 2021, respectively. As of March 31, 2022, the Company could be required to pay up to $12.8 million for contingent consideration arrangements if the revenue and gross margin targets are met in fiscal years 2022 through 2024.

In connection with its acquisition of Renco Electronics, the Company was obligated to pay contingent consideration over a three year period of up to $3.5 million to the sellers of Renco. During the first quarter of fiscal year 2022, the Company paid $1.2 million to the sellers as Renco exceeded the earnings targets during the first year of the measurement period. During the third quarter of fiscal year 2022, the parties agreed to reduce and fix the aggregate earnout payments to a total of $3.4 million. The parties also agreed to accelerate the payment of the remaining unpaid amounts as follows: $1.0 million in April 2022 and the remaining $1.2 million in August 2022.

The Company has determined the fair value of the liabilities for the contingent consideration based on a probability-weighted discounted cash flow analysis. This fair value measurement is based on significant inputs not observable in the market and thus represents a Level 3 measurement within the fair value hierarchy. The fair value of the contingent consideration liability associated with future payments was based on several factors, the most significant of which are the financial performance of the acquired businesses and the risk-adjusted discount rate for the fair value measurement.

The Company will update its assumptions each reporting period based on new developments and record such amounts at fair value based on the revised assumptions until the agreements expire.

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Note 5 - Inventories

9 Months Ended

Mar. 31, 2022

Notes to Financial Statements

Inventory Disclosure [Text Block]

5)     Inventories

Inventories from continuing operations are comprised of the following (in thousands):

	March 31, 2022		June 30, 2021
Raw materials	$	53,415	$	47,000
Work in process		22,740		22,539
Finished goods		27,775		22,323
Total	$	103,930	$	91,862

Distribution costs associated with the sale of inventory, which are recorded as a component of selling, general and administrative expenses in the accompanying unaudited condensed consolidated statements of operations were $2.5 million and $3.0 million for the three months ended  March 31, 2022 and 2021, respectively. Distribution costs were $11.1 million and $8.4 million for the nine months ended March 31, 2022 and 2021, respectively.

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Note 6 - Goodwill

9 Months Ended

Mar. 31, 2022

Notes to Financial Statements

Goodwill Disclosure [Text Block]

6)     Goodwill

Changes to goodwill by segment during the period were as follows (in thousands):

	June 30, 2021		Acquisitions		Translation Adjustment			March 31, 2022
Electronics	$	144,832	$	6,001	$	(7,814	)	$	143,019
Engraving		77,378		-		(632	)		76,746
Scientific		15,454		-		-			15,454
Engineering Technologies		37,085		-		(482	)		36,603
Specialty Solutions		3,305		-		-			3,305
Total	$	278,054	$	6,001	$	(8,928	)	$	275,127

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Note 7 - Warranty Reserves

9 Months Ended

Mar. 31, 2022

Notes to Financial Statements

Product Warranty Disclosure [Text Block]

7)     Warranty Reserves

The expected cost associated with warranty obligations on our products is recorded as a component of cost of sales when the revenue is recognized. The Company’s estimate of warranty cost is based on contract terms and historical warranty loss experience that is periodically adjusted for recent actual experience. Since warranty estimates are forecasts based on the best available information, claims costs may differ from amounts provided. Adjustments to initial obligations for warranties are made as changes in the obligations become reasonably estimable.

The changes in warranty reserves from continuing operations, which are recorded as a component of accrued liabilities were as follows (in thousands):

	March 31, 2022			June 30, 2021
Balance at beginning of year	$	2,086		$	1,781
Acquisitions and other charges		(68	)		68
Warranty expense		856			2,007
Warranty claims		(960	)		(1,770	)
Balance at end of period	$	1,914		$	2,086

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Note 8 - Debt

9 Months Ended

Mar. 31, 2022

Notes to Financial Statements

Debt Disclosure [Text Block]

8)     Debt

Long-term debt is comprised of the following (in thousands):

	March 31, 2022			June 30, 2021
Bank credit agreements	$	200,000		$	200,000
Total funded debt		200,000			200,000
Issuance cost		(255	)		(510	)
Total long-term debt	$	199,745		$	199,490

Bank Credit Agreements

During the second quarter of fiscal year 2019, the Company entered into a five-year Amended and Restated Credit Agreement (“Credit Facility”, or “facility”). The facility has a borrowing limit of $500 million, which can be increased by an amount of up to $250 million, in accordance with specified conditions contained in the agreement. The facility also includes a $10 million sublimit for swing line loans and a $35 million sublimit for letters of credit.

At March 31, 2022, the Company had standby letters of credit outstanding, primarily for insurance purposes, of $6.2 million and had the ability to borrow $299.5 million under the facility. Funds borrowed under the facility  may be used for the repayment of debt, working capital, capital expenditures, acquisitions (so long as certain conditions, including a specified funded debt to EBITDA leverage ratio is maintained), and other general corporate purposes.  The facility contains customary representations, warranties and restrictive covenants, as well as specific financial covenants which the Company was compliant with as of  March 31, 2022.  At March 31, 2022, the carrying value of the current borrowings approximate fair value.

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Note 9 - Accrued Liabilities

9 Months Ended

Mar. 31, 2022

Notes to Financial Statements

Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block]

9) Accrued Liabilities

Accrued liabilities consist of the following (in thousands):

	March 31, 2022		June 30, 2021
Payroll and employee benefits	$	27,137	$	32,550
Workers' compensation		2,118		2,118
Warranty reserves		1,914		2,086
Fair value of derivatives		331		4,318
Operating lease current liability		6,820		7,933
Other		18,865		12,712
Total	$	57,185	$	61,717

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Note 10 - Derivative Financial Instruments

9 Months Ended

Mar. 31, 2022

Notes to Financial Statements

Derivative Instruments and Hedging Activities Disclosure [Text Block]

10)      Derivative Financial Instruments

The Company is exposed to market risks from changes in interest rates, commodity prices and changes in foreign currency rates. The Company selectively uses derivative financial instruments in order to manage certain of these risks. Information about the Company’s derivative financial instruments is as follows:

Interest Rate Swaps

From time to time as dictated by market opportunities, the Company enters into interest rate swap agreements designed to manage exposure to interest rates on the Company’s variable rate indebtedness. The Company recognizes all derivatives on its balance sheet at fair value. The Company has designated its interest rate swap agreements, including those that may be forward-dated, as cash flow hedges, and changes in the fair value of the swaps are recognized in other comprehensive income until the hedged items are recognized in earnings. Hedge ineffectiveness, if any, associated with the swaps will be reported by the Company in interest expense.

The Company’s effective swap agreements convert the base borrowing rate on $200 million of debt due under our revolving credit agreement from a variable rate equal to 1 month LIBOR to a weighted average fixed rate of 1.27% at March 31, 2022. The fair value of the swaps, recognized in accrued liabilities and in other comprehensive income, is as follows (in thousands, except percentages):

Effective Date	Notional Amount	Fixed Interest Rate	Maturity	March 31, 2022			June 30, 2021
May 24, 2017	25,000	1.88%	April 24, 2022	$	(32	)	$	(374	)
August 6, 2018	25,000	2.83%	August 6, 2023		(299	)		(1,401	)
March 23, 2020	100,000	0.91%	March 23, 2025		4,540			(907	)
April 24, 2020	25,000	0.88%	April 24, 2025		1,203			(192	)
May 24, 2020	25,000	0.91%	March 24, 2025		1,138			(222	)
				$	6,550		$	(3,096	)

The Company reported no losses for the three and nine months ended March 31, 2022, as a result of hedge ineffectiveness. Future changes in these swap arrangements, including termination of the agreements, may result in a reclassification of any gain or loss reported in accumulated other comprehensive income (loss) into earnings as an adjustment to interest expense. Accumulated other comprehensive income (loss) related to these instruments is being amortized into interest expense concurrent with the hedged exposure.

Foreign Exchange Contracts

Forward foreign currency exchange contracts are used to limit the impact of currency fluctuations on certain anticipated foreign cash flows, such as collections from customers and loan payments between subsidiaries. The Company enters into such contracts for hedging purposes only. The Company has designated certain of these currency contracts as hedges, and changes in the fair value of these contracts are recognized in other comprehensive income until the hedged items are recognized in earnings. Hedge ineffectiveness, if any, associated with these contracts will be reported in net income. At March 31, 2022 and June 30, 2021, the Company had outstanding forward contracts related to hedges of intercompany loans with net unrealized assets of $0.2 million and losses of $1.0 million, respectively, which approximate the unrealized gains and losses on the related loans. The contracts have maturity dates ranging from fiscal year 2022 to 2024, which correspond to the related intercompany loans.

The notional amounts of the Company’s forward contracts, by currency, are as follows (in thousands):

Currency	March 31, 2022		June 30, 2021
USD		-		987
EUR		5,750		5,750
SGD		5,000		21,836
CAD		16,600		20,600

The table below presents the fair value of derivative financial instruments as well as their classification on the balance sheet (in thousands):

	Asset Derivatives
	March 31, 2022			June 30, 2021
Derivative designated	Balance			Balance
as hedging instruments	Sheet			Sheet
	Line Item	Fair Value		Line Item	Fair Value
Interest rate swaps	Prepaid expenses and other current assets	$	6,881		$	-
Foreign exchange contracts	Prepaid expenses and other current assets		169	Prepaid expenses and other current assets		255
		$	7,050		$	255

	Liability Derivatives
	March 31, 2022			June 30, 2021
Derivative designated	Balance			Balance
as hedging instruments	Sheet			Sheet
	Line Item	Fair Value		Line Item	Fair Value
Interest rate swaps	Accrued liabilities	$	331	Accrued liabilities	$	3,096
Foreign exchange contracts	Accrued liabilities		-	Accrued liabilities		1,222
		$	331		$	4,318

The table below presents the amount of gain (loss) recognized in comprehensive income on our derivative financial instruments (effective portion) designated as hedging instruments and their classification within comprehensive income for the periods ended (in thousands):

	Three Months Ended					Nine Months Ended
	March 31,					March 31,
	2022			2021		2022		2021
Interest rate swaps	$	6,045		$	2,282	$	7,885	$	1,801
Foreign exchange contracts		(217	)		1,465		5		1,731
	$	5,828		$	3,747	$	7,890	$	3,532

The table below presents the amount reclassified from accumulated other comprehensive income (loss) to net income for the periods ended (in thousands):

Details about Accumulated											Affected line item
Other Comprehensive	Three Months Ended					Nine Months Ended					in the Unaudited
Income (Loss) Components	March 31,					March 31,					Condensed Statements
	2022		2021			2022		2021			of Operations
Interest rate swaps	$	557	$	570		$	1,761	$	1,698		Interest expense
Foreign exchange contracts		207		(506	)		826		(513	)	Other non-operating (income) expense, net
	$	764	$	64		$	2,587	$	1,185

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Note 11 - Retirement Benefits

9 Months Ended

Mar. 31, 2022

Notes to Financial Statements

Retirement Benefits [Text Block]

11)     Retirement Benefits

The Company has defined benefit pension plans covering certain current and former employees both inside and outside of the U.S. The Company’s pension plan for U.S. employees is frozen for substantially all participants and has been replaced with a defined contribution benefit plan.

Net periodic benefit cost for the Company’s U.S. and Foreign pension benefit plans for the periods ended consisted of the following components (in thousands):

	U.S. Plans						Non-U.S. Plans
	Three Months Ended						Three Months Ended
	March 31,						March 31,
	2022			2021			2022			2021
Service cost	$	1		$	1		$	58		$	55
Interest cost		1,830			1,860			193			185
Expected return on plan assets		(3,260	)		(3,253	)		(215	)		(161	)
Recognized net actuarial loss		1,384			1,483			84			193
Amortization of prior service cost		-			-			(1	)		(1	)
Net periodic benefit cost	$	(45	)	$	91		$	119		$	271

	U.S. Plans						Non-U.S. Plans
	Nine Months Ended						Nine Months Ended
	March 31,						March 31,
	2022			2021			2022			2021
Service cost	$	3		$	3		$	179		$	164
Interest cost		5,490			5,579			576			539
Expected return on plan assets		(9,779	)		(9,759	)		(641	)		(468	)
Recognized net actuarial loss		4,151			4,450			253			562
Amortization of prior service cost		-			-			(3	)		(4	)
Net periodic benefit cost	$	(135	)	$	273		$	364		$	793

The following table sets forth the amounts recognized for the Company's defined benefit pension plans (in thousands):

Amounts recognized in the consolidated balance sheets consist of:	March 31, 2022			June 30, 2021
Prepaid benefit cost	$	5,485		$	5,661
Current liabilities		(596	)		(517	)
Non-current liabilities		(42,311	)		(47,425	)
Net amount recognized	$	(37,422	)	$	(42,281	)

The contributions made to defined benefit plans are presented below along with remaining contributions to be made for fiscal year 2022 (in thousands):

	Fiscal Year 2022				Fiscal Year 2021				Remaining
	Three Months Ended		Nine Months Ended		Three Months Ended		Nine Months Ended		Contributions
Contributions to defined benefit plans	March 31, 2022		March 31, 2022		March 31, 2021		March 31, 2021		FY 2022
United States, funded plan	$	-	$	-	$	3,030	$	7,805	$	-
United States, unfunded plan		52		157		53		157		54
United Kingdom		-		-		-		-		-
Germany, unfunded plan		-		-		-		-		280
Ireland		-		-		-		-		65
	$	52	$	157	$	3,083	$	7,962	$	399

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Note 12 - Income Taxes

9 Months Ended

Mar. 31, 2022

Notes to Financial Statements

Income Tax Disclosure [Text Block]

12)     Income Taxes

The Company's effective tax rate from continuing operations for the third quarter of fiscal year 2022 was 24.0% compared with 56.3% for the prior year quarter. The tax rate was impacted in the current period by the following items: (i) a discrete benefit related to a reduction in an uncertain tax position, (ii) a discrete benefit related to a return to provision adjustment, and (iii) the jurisdictional mix of earnings. The tax rate was impacted in the prior period by the following items: (i) reduction of global intangible low-taxed income, (ii) the jurisdictional mix of earnings and (iii) the establishment of a valuation allowance against our deferred tax asset attributable to the divestiture of Enginetics Corporation during the quarter. The divestiture of the Enginetics business gave rise to a capital loss carryforward, which, if unused, will expire after 5 years. Capital losses are allowed only to the extent of capital gains; however, because the Company did not have capital gains in the prior period or the applicable carryback period, the capital loss was carried forward. The Company believes it is more likely than not that the capital loss carryforward will expire unutilized. Therefore, a full valuation allowance was established, which negatively impacted the effective tax rate. The valuation allowance could be released if it is determined that the Company will have sufficient taxable income of the appropriate character within the carryforward period.

The Company's effective tax rate from continuing operations for the first nine months of the fiscal year ending June 30, 2022 was 24.5% compared with 25.3% for the prior year period. The tax rate was impacted in the current period by the following items: (i) a discrete tax benefit related to equity compensation, (ii) a discrete benefit related to a reduction in an uncertain tax position, (iii) a discrete benefit related to a return to provision adjustment, (iv) the jurisdictional mix of earnings, and (v) foreign withholding taxes.

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Note 13 - Earnings Per Share

9 Months Ended

Mar. 31, 2022

Notes to Financial Statements

Earnings Per Share [Text Block]

13)     Earnings Per Share

The following table sets forth a reconciliation of the number of shares (in thousands) used in the computation of basic and diluted earnings per share:

	Three Months Ended				Nine Months Ended
	March 31,				March 31,
	2022		2021		2022		2021
Basic - Average shares outstanding		11,982		12,136		12,009		12,185
Dilutive effect of unvested, restricted stock awards		107		117		112		82
Diluted - Average shares outstanding		12,089		12,253		12,121		12,267

Earnings available to common stockholders are the same for computing both basic and diluted earnings per share. There were no outstanding instruments that had an anti-dilutive effect at March 31, 2022 or 2021.

Performance stock units of 142,170 and 129,427 for the nine months ended March 31, 2022 and 2021, respectively, are excluded from the diluted earnings per share calculation as the performance criteria have not been met.

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Note 14 - Accumulated Other Comprehensive Income (Loss)

9 Months Ended

Mar. 31, 2022

Notes to Financial Statements

Comprehensive Income (Loss) Note [Text Block]

14)     Accumulated Other Comprehensive Income (Loss)

The components of the Company’s accumulated other comprehensive income (loss) are as follows (in thousands):

	March 31, 2022			June 30, 2021
Foreign currency translation adjustment	$	(38,587	)	$	(21,244	)
Unrealized pension losses, net of tax		(88,863	)		(92,372	)
Unrealized gains (losses) on derivative instruments, net of tax		5,580			(2,524	)
Total	$	(121,870	)	$	(116,140	)

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Note 15 - Contingencies

9 Months Ended

Mar. 31, 2022

Notes to Financial Statements

Contingencies Disclosure [Text Block]

15)     Contingencies

From time to time, the Company is subject to various claims and legal proceedings, including claims related to environmental remediation, either asserted or unasserted, that arise in the ordinary course of business. While the outcome of these proceedings and claims cannot be predicted with certainty, the Company’s management does not believe that the outcome of any of the currently existing legal matters will have a material impact on the Company’s consolidated financial position, results of operations or cash flow. The Company accrues for losses related to a claim or litigation when the Company’s management considers a potential loss probable and can reasonably estimate such potential loss.

Litigation

In the second quarter of fiscal year 2019, a lawsuit was filed against Standex Electronics, Inc. ("Electronics"), a wholly owned subsidiary of the Company, by Miniature Precision Components, Inc. ("MPC"), a customer, seeking damages in connection with allegedly faulty sensors designed and manufactured by Electronics.  The subject sensors were incorporated by MPC into a subassembly sold by MPC to its customer, an automotive manufacturer. MPC alleges that the sensors incorrectly activated a diagnostic code in vehicles for which MPC’s customer issued a service bulletin, resulting in significant warranty costs for MPC. In the litigation, which is pending in the U.S. District Court for the Eastern District of Wisconsin, MPC seeks indemnification from Electronics for its costs. Electronics has numerous defenses to MPC’s claims. Trial for this case is currently scheduled for July 2022. During the second quarter of fiscal year 2022, the Company engaged in unsuccessful mediation with MPC, during which the Company offered to settle the matter in order to avoid the inherent risk of litigation as well as the cost of diverting internal resources. As a result, the Company has recorded $1.7 million as accrued liabilities related to this litigation. Based upon developments to date, the Company believes that the range of any reasonably possible loss, in excess of amounts accrued, would be between $0 and $6.3 million. The estimated range of reasonably possible loss is based upon currently available information and is subject to significant judgement and a variety of assumptions and known and unknown uncertainties.

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Note 16 - Industry Segment Information

9 Months Ended

Mar. 31, 2022

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

16)     Industry Segment Information

The Company has five reportable segments organized around the types of products sold:

• Electronics – manufactures and sells electronic components for applications throughout the end user market spectrum;

• Engraving – provides mold texturizing, slush molding tools, project management and design services, roll engraving, hygiene product tooling, low observation vents for stealth aircraft, and process machinery for a number of industries; 

• Scientific – sells specialty temperature-controlled equipment for the medical, scientific, pharmaceutical, biotech and industrial markets; 

• Engineering Technologies – provides net and near net formed single-source customized solutions in the manufacture of engineered components for the aviation, aerospace, defense, energy, industrial, medical, marine, oil and gas, and manned and unmanned space markets; 

• Specialty Solutions – an aggregation of three operating segments that manufacture and sell refrigerated, heated and dry merchandizing display cases, custom fluid pump solutions, and single and double acting telescopic and piston rod hydraulic cylinders. 

Net sales and income (loss) from continuing operations by segment were as follows (in thousands):

	Three Months Ended March 31,
	Net Sales				Income from Operations
	2022		2021		2022			2021
Industry segment:
Electronics	$	79,889	$	65,085	$	19,194		$	12,364
Engraving		37,223		36,026		5,728			4,510
Scientific		18,914		24,221		4,155			5,803
Engineering Technologies		20,890		19,951		2,327			1,245
Specialty Solutions		32,365		26,933		3,632			4,251
Corporate		-		-		(8,961	)		(7,162	)
Restructuring costs		-		-		(1,186	)		(482	)
Loss on sale of business		-		-		-			(14,624	)
Acquisition related costs		-		-		(419	)		(255	)
Other operating income (expense), net		-		-		-			-
Sub-total	$	189,281	$	172,216	$	24,470		$	5,650
Interest expense						1,238			1,317
Other non-operating (income) expense						340			306
Income from continuing operations before income taxes					$	22,892		$	4,027

	Nine Months Ended March 31,
	Net Sales				Income from Operations
	2022		2021		2022			2021
Industry segment:
Electronics	$	232,351	$	180,524	$	54,624		$	30,861
Engraving		109,037		110,377		15,806			16,884
Scientific		65,079		58,777		14,153			14,113
Engineering Technologies		56,558		55,091		5,540			3,076
Specialty Solutions		87,575		75,028		10,185			11,368
Corporate		-		-		(25,507	)		(21,607	)
Restructuring costs		-		-		(2,469	)		(2,478	)
Loss on sale of business		-		-		-			(14,624	)
Acquisition related costs		-		-		(1,561	)		(850	)
Other operating income (expense), net		-		-		(1,700	)		-
Sub-total	$	550,600	$	479,797	$	69,071		$	36,743
Interest expense						4,484			4,403
Other non-operating (income) expense						651			73
Income from continuing operations before income taxes					$	63,936		$	32,267

Net sales include only transactions with unaffiliated customers and include no intersegment sales. Income (loss) from operations by segment excludes interest expense and other non-operating (income) expense.

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Note 17 - Restructuring

9 Months Ended

Mar. 31, 2022

Notes to Financial Statements

Restructuring and Related Activities Disclosure [Text Block]

17)      Restructuring

The Company has undertaken a number of initiatives that have resulted in severance, restructuring, and related charges.

2022 Restructuring Initiatives

The Company continues to focus its efforts to reduce cost and improve productivity across its businesses, particularly through headcount reductions, facility closures, and consolidations. Restructuring expenses primarily related to headcount reductions and other cost saving initiatives. The Company expects the 2022 restructuring activities to be completed by 2023. 

Prior Year Restructuring Initiatives 

Restructuring expenses primarily related to headcount reductions and facility rationalization within our Specialty Solutions segment. The Company also incurred restructuring expenses related to third party assistance with analysis and implementation of these activities. The Company expects the prior year restructuring activities to be completed by 2022.

A summary of charges by initiative is as follows (in thousands):

	Three Months Ended						Nine Months Ended
	March 31, 2022						March 31, 2022
Fiscal Year 2022	Involuntary Employee Severance and Benefit Costs		Other		Total		Involuntary Employee Severance and Benefit Costs		Other		Total
Current year initiatives	$	966	$	220	$	1,186	$	1,637	$	832	$	2,469

	Three Months Ended						Nine Months Ended
	March 31, 2021						March 31, 2021
Fiscal Year 2021	Involuntary Employee Severance and Benefit Costs		Other		Total		Involuntary Employee Severance and Benefit Costs		Other		Total
Current year initiatives	$	292	$	178	$	470	$	755	$	540	$	1,295
Prior year initiatives		12		-		12		906		277		1,183
	$	304	$	178	$	482	$	1,661	$	817	$	2,478

Activity in the reserve related to the initiatives is as follows (in thousands):

Current Year Initiatives	Involuntary Employee Severance and Benefit Costs			Other			Total
Restructuring liabilities at June 30, 2021	$	-		$	-		$	-
Additions and adjustments		1,637			832			2,469
Payments		(1,060	)		(765	)		(1,825	)
Restructuring liabilities at March 31, 2022	$	577		$	67		$	644

Prior Year Initiatives	Involuntary Employee Severance and Benefit Costs			Other			Total
Restructuring liabilities at June 30, 2021	$	39		$	10		$	49
Additions and adjustments		-			-			-
Payments		(39	)		(10	)		(49	)
Restructuring liabilities at March 31, 2022	$	-		$	-		$	-

Prior Year Initiatives	Involuntary Employee Severance and Benefit Costs			Other			Total
Restructuring liabilities at June 30, 2020	$	520		$	18		$	538
Additions and adjustments		1,661			817			2,478
Payments		(2,181	)		(835	)		(3,016	)
Restructuring liabilities at March 31, 2021	$	-		$	-		$	-

The Company’s total restructuring expenses by segment are as follows (in thousands):

	Three Months Ended						Nine Months Ended
	March 31, 2022						March 31, 2022
	Involuntary Employee Severance and Benefit Costs		Other		Total		Involuntary Employee Severance and Benefit Costs		Other		Total
Electronics	$	441	$	65	$	506	$	513	$	83	$	596
Engraving		379		149		528		832		679		1,511
Engineering Technologies		97		6		103		238		6		244
Specialty Solutions		-		-		-		-		64		64
Corporate		49		-		49		54		-		54
	$	966	$	220	$	1,186	$	1,637	$	832	$	2,469

	Three Months Ended						Nine Months Ended
	March 31, 2021						March 31, 2021
	Involuntary Employee Severance and Benefit Costs		Other		Total		Involuntary Employee Severance and Benefit Costs		Other		Total
Electronics	$	56	$	16	$	72	$	307	$	21	$	328
Engraving		248		162		410		528		510		1,038
Engineering Technologies		-		-		-		37		-		37
Specialty Solutions		-		-		-		673		286		959
Corporate		-		-		-		116		-		116
	$	304	$	178	$	482	$	1,661	$	817	$	2,478

Restructuring expense is expected to be approximately $1.5 million for the remainder of fiscal year 2022.

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Note 18 - Subsequent Events

9 Months Ended

Mar. 31, 2022

Notes to Financial Statements

Subsequent Events [Text Block]

18)      Subsequent Events 

On April 28, 2022, the Company's Board of Directors authorized a new share repurchase program of up to $100 million following the completion of the $0.6 million remaining under the current share repurchase authorization at March 31, 2022. 

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Note 2 - Acquisitions (Tables)

9 Months Ended

Mar. 31, 2022

Renco Electronics [Member]

Notes Tables

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

	Preliminary Allocation as of March 31, 2022
Fair value of business combination:
Cash payments	$	10,016
Less cash acquired		(114	)
Total	$	9,902

	Preliminary Allocation as of March 31, 2022
Identifiable assets acquired and liabilities assumed:
Other acquired assets	$	490
Inventories		531
Property, plant, & equipment		232
Identifiable intangible assets		2,800
Goodwill		6,001
Liabilities assumed		(152	)
Total	$	9,902

	Final Allocation
Fair value of business combination:
Cash payments	$	29,613
Less, cash acquired		(2,207	)
Fair value of contingent consideration		3,000
Total	$	30,406

	Final Allocation
Identifiable assets acquired and liabilities assumed:
Other acquired assets	$	4,522
Inventories		5,446
Property, plant, & equipment		410
Identifiable intangible assets		10,400
Goodwill		13,991
Debt assumed		(712	)
Liabilities assumed		(3,651	)
Total	$	30,406

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Note 3 - Revenue From Contracts With Customers (Tables)

9 Months Ended

Mar. 31, 2022

Notes Tables

Disaggregation of Revenue [Table Text Block]

	Three Months Ended
Revenue by Product Line	March 31, 2022		March 31, 2021
Electronics	$	79,889	$	65,085
Engraving Services		34,399		33,655
Engraving Products		2,824		2,371
Total Engraving		37,223		36,026
Scientific		18,914		24,221
Engineering Technologies		20,890		19,951
Hydraulics Cylinders and Systems		15,306		13,629
Merchandising & Display		8,438		6,276
Pumps		8,621		7,028
Total Specialty Solutions		32,365		26,933
Total revenue by product line	$	189,281	$	172,216

	Nine Months Ended
Revenue by Product Line	March 31, 2022		March 31, 2021
Electronics	$	232,351	$	180,524
Engraving Services		101,637		102,950
Engraving Products		7,400		7,427
Total Engraving		109,037		110,377
Scientific		65,079		58,777
Engineering Technologies		56,558		55,091
Hydraulics Cylinders and Systems		39,207		36,583
Merchandising & Display		23,548		19,515
Pumps		24,820		18,930
Total Specialty Solutions		87,575		75,028
Total revenue by product line	$	550,600	$	479,797

	Three Months Ended		Three Months Ended		Nine Months Ended		Nine Months Ended
Net sales	March 31, 2022		March 31, 2021		March 31, 2022		March 31, 2021
United States	$	110,076	$	103,005	$	314,657	$	286,522
Asia Pacific		37,441		31,715		116,842		89,189
EMEA (1)		37,963		34,367		108,841		93,549
Other Americas		3,801		3,129		10,260		10,537
Total	$	189,281	$	172,216	$	550,600	$	479,797

	Three Months Ended
Timing of Revenue Recognition	March 31, 2022		March 31, 2021
Products and services transferred at a point in time	$	170,949	$	163,356
Products transferred over time		18,332		8,860
Net sales	$	189,281	$	172,216

	Nine Months Ended
Timing of Revenue Recognition	March 31, 2022		March 31, 2021
Products and services transferred at a point in time	$	510,988	$	454,007
Products transferred over time		39,612		25,790
Net sales	$	550,600	$	479,797

Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block]

	Balance at Beginning of Period		Additions		Amount Recognized		Balance at End of Period
Nine months ended March 31, 2022
Contract assets:
Prepaid expenses and other current assets	$	15,013	$	35,091	$	25,711	$	24,393
Contract liabilities:
Customer deposits		471		10,293		10,721		43

	Balance at Beginning of Period		Additions		Amount Recognized		Balance at End of Period
Nine months ended March 31, 2021
Contract assets:
Prepaid expenses and other current assets	$	9,140	$	21,055	$	18,422	$	11,773
Contract liabilities:
Customer deposits		2,298		6,497		7,871		924

	March 31, 2022
Revenue recognized in the period from:	Three months ended		Nine months ended
Amounts included in the contract liability balance at the beginning of the period	$	252	$	471

	March 31, 2021
Revenue recognized in the period from:	Three months ended		Nine months ended
Amounts included in the contract liability balance at the beginning of the period	$	365	$	2,298

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Note 4 - Fair Value Measurements (Tables)

9 Months Ended

Mar. 31, 2022

Notes Tables

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

	March 31, 2022
	Total		Level 1		Level 2		Level 3
Assets
Marketable securities - deferred compensation plan	$	3,281	$	3,281	$	-	$	-
Foreign exchange contracts		169		-		169		-
Interest rate swaps		6,881		-		6,881		-
Liabilities
Foreign exchange contracts	$	-	$	-		-	$	-
Interest rate swaps		331		-		331		-
Contingent acquisition payments (a)		2,167		-		-		2,167

	June 30, 2021
	Total		Level 1		Level 2		Level 3
Assets
Marketable securities - deferred compensation plan	$	2,988	$	2,988	$	-	$	-
Foreign exchange contracts		255		-		255		-
Liabilities
Foreign exchange contracts	$	1,222	$	-	$	1,222	$	-
Interest rate swaps		3,096		-		3,096		-
Contingent acquisition payments (a)		3,333		-		-		3,333

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Note 5 - Inventories (Tables)

9 Months Ended

Mar. 31, 2022

Notes Tables

Schedule of Inventory, Current [Table Text Block]

	March 31, 2022		June 30, 2021
Raw materials	$	53,415	$	47,000
Work in process		22,740		22,539
Finished goods		27,775		22,323
Total	$	103,930	$	91,862

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Note 6 - Goodwill (Tables)

9 Months Ended

Mar. 31, 2022

Notes Tables

Schedule of Goodwill [Table Text Block]

	June 30, 2021		Acquisitions		Translation Adjustment			March 31, 2022
Electronics	$	144,832	$	6,001	$	(7,814	)	$	143,019
Engraving		77,378		-		(632	)		76,746
Scientific		15,454		-		-			15,454
Engineering Technologies		37,085		-		(482	)		36,603
Specialty Solutions		3,305		-		-			3,305
Total	$	278,054	$	6,001	$	(8,928	)	$	275,127

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Note 7 - Warranty Reserves (Tables)

9 Months Ended

Mar. 31, 2022

Notes Tables

Schedule of Product Warranty Liability [Table Text Block]

	March 31, 2022			June 30, 2021
Balance at beginning of year	$	2,086		$	1,781
Acquisitions and other charges		(68	)		68
Warranty expense		856			2,007
Warranty claims		(960	)		(1,770	)
Balance at end of period	$	1,914		$	2,086

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Note 8 - Debt (Tables)

9 Months Ended

Mar. 31, 2022

Notes Tables

Schedule of Long-Term Debt Instruments [Table Text Block]

	March 31, 2022			June 30, 2021
Bank credit agreements	$	200,000		$	200,000
Total funded debt		200,000			200,000
Issuance cost		(255	)		(510	)
Total long-term debt	$	199,745		$	199,490

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Note 9 - Accrued Liabilities (Tables)

9 Months Ended

Mar. 31, 2022

Notes Tables

Schedule of Accrued Liabilities [Table Text Block]

	March 31, 2022		June 30, 2021
Payroll and employee benefits	$	27,137	$	32,550
Workers' compensation		2,118		2,118
Warranty reserves		1,914		2,086
Fair value of derivatives		331		4,318
Operating lease current liability		6,820		7,933
Other		18,865		12,712
Total	$	57,185	$	61,717

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Note 10 - Derivative Financial Instruments (Tables)

9 Months Ended

Mar. 31, 2022

Notes Tables

Schedule of Interest Rate Derivatives [Table Text Block]

Effective Date	Notional Amount	Fixed Interest Rate	Maturity	March 31, 2022			June 30, 2021
May 24, 2017	25,000	1.88%	April 24, 2022	$	(32	)	$	(374	)
August 6, 2018	25,000	2.83%	August 6, 2023		(299	)		(1,401	)
March 23, 2020	100,000	0.91%	March 23, 2025		4,540			(907	)
April 24, 2020	25,000	0.88%	April 24, 2025		1,203			(192	)
May 24, 2020	25,000	0.91%	March 24, 2025		1,138			(222	)
				$	6,550		$	(3,096	)

Schedule of Foreign Exchange Contracts, Statement of Financial Position [Table Text Block]

Currency	March 31, 2022		June 30, 2021
USD		-		987
EUR		5,750		5,750
SGD		5,000		21,836
CAD		16,600		20,600

Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) [Table Text Block]

	Asset Derivatives
	March 31, 2022			June 30, 2021
Derivative designated	Balance			Balance
as hedging instruments	Sheet			Sheet
	Line Item	Fair Value		Line Item	Fair Value
Interest rate swaps	Prepaid expenses and other current assets	$	6,881		$	-
Foreign exchange contracts	Prepaid expenses and other current assets		169	Prepaid expenses and other current assets		255
		$	7,050		$	255

	Liability Derivatives
	March 31, 2022			June 30, 2021
Derivative designated	Balance			Balance
as hedging instruments	Sheet			Sheet
	Line Item	Fair Value		Line Item	Fair Value
Interest rate swaps	Accrued liabilities	$	331	Accrued liabilities	$	3,096
Foreign exchange contracts	Accrued liabilities		-	Accrued liabilities		1,222
		$	331		$	4,318

Derivative Instruments, Gain (Loss) [Table Text Block]

	Three Months Ended					Nine Months Ended
	March 31,					March 31,
	2022			2021		2022		2021
Interest rate swaps	$	6,045		$	2,282	$	7,885	$	1,801
Foreign exchange contracts		(217	)		1,465		5		1,731
	$	5,828		$	3,747	$	7,890	$	3,532

Reclassification out of Accumulated Other Comprehensive Income [Table Text Block]

Details about Accumulated											Affected line item
Other Comprehensive	Three Months Ended					Nine Months Ended					in the Unaudited
Income (Loss) Components	March 31,					March 31,					Condensed Statements
	2022		2021			2022		2021			of Operations
Interest rate swaps	$	557	$	570		$	1,761	$	1,698		Interest expense
Foreign exchange contracts		207		(506	)		826		(513	)	Other non-operating (income) expense, net
	$	764	$	64		$	2,587	$	1,185

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Note 11 - Retirement Benefits (Tables)

9 Months Ended

Mar. 31, 2022

Notes Tables

Schedule of Defined Benefit Plan Contributions [Table Text Block]

	Fiscal Year 2022				Fiscal Year 2021				Remaining
	Three Months Ended		Nine Months Ended		Three Months Ended		Nine Months Ended		Contributions
Contributions to defined benefit plans	March 31, 2022		March 31, 2022		March 31, 2021		March 31, 2021		FY 2022
United States, funded plan	$	-	$	-	$	3,030	$	7,805	$	-
United States, unfunded plan		52		157		53		157		54
United Kingdom		-		-		-		-		-
Germany, unfunded plan		-		-		-		-		280
Ireland		-		-		-		-		65
	$	52	$	157	$	3,083	$	7,962	$	399

Pension Plan [Member]

Notes Tables

Schedule of Net Benefit Costs [Table Text Block]

	U.S. Plans						Non-U.S. Plans
	Three Months Ended						Three Months Ended
	March 31,						March 31,
	2022			2021			2022			2021
Service cost	$	1		$	1		$	58		$	55
Interest cost		1,830			1,860			193			185
Expected return on plan assets		(3,260	)		(3,253	)		(215	)		(161	)
Recognized net actuarial loss		1,384			1,483			84			193
Amortization of prior service cost		-			-			(1	)		(1	)
Net periodic benefit cost	$	(45	)	$	91		$	119		$	271

	U.S. Plans						Non-U.S. Plans
	Nine Months Ended						Nine Months Ended
	March 31,						March 31,
	2022			2021			2022			2021
Service cost	$	3		$	3		$	179		$	164
Interest cost		5,490			5,579			576			539
Expected return on plan assets		(9,779	)		(9,759	)		(641	)		(468	)
Recognized net actuarial loss		4,151			4,450			253			562
Amortization of prior service cost		-			-			(3	)		(4	)
Net periodic benefit cost	$	(135	)	$	273		$	364		$	793

Schedule of Net Funded Status [Table Text Block]

Amounts recognized in the consolidated balance sheets consist of:	March 31, 2022			June 30, 2021
Prepaid benefit cost	$	5,485		$	5,661
Current liabilities		(596	)		(517	)
Non-current liabilities		(42,311	)		(47,425	)
Net amount recognized	$	(37,422	)	$	(42,281	)

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Note 13 - Earnings Per Share (Tables)

9 Months Ended

Mar. 31, 2022

Notes Tables

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	Three Months Ended				Nine Months Ended
	March 31,				March 31,
	2022		2021		2022		2021
Basic - Average shares outstanding		11,982		12,136		12,009		12,185
Dilutive effect of unvested, restricted stock awards		107		117		112		82
Diluted - Average shares outstanding		12,089		12,253		12,121		12,267

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Note 14 - Accumulated Other Comprehensive Income (Loss) (Tables)

9 Months Ended

Mar. 31, 2022

Notes Tables

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

	March 31, 2022			June 30, 2021
Foreign currency translation adjustment	$	(38,587	)	$	(21,244	)
Unrealized pension losses, net of tax		(88,863	)		(92,372	)
Unrealized gains (losses) on derivative instruments, net of tax		5,580			(2,524	)
Total	$	(121,870	)	$	(116,140	)

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Note 16 - Industry Segment Information (Tables)

9 Months Ended

Mar. 31, 2022

Notes Tables

Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block]

	Three Months Ended March 31,
	Net Sales				Income from Operations
	2022		2021		2022			2021
Industry segment:
Electronics	$	79,889	$	65,085	$	19,194		$	12,364
Engraving		37,223		36,026		5,728			4,510
Scientific		18,914		24,221		4,155			5,803
Engineering Technologies		20,890		19,951		2,327			1,245
Specialty Solutions		32,365		26,933		3,632			4,251
Corporate		-		-		(8,961	)		(7,162	)
Restructuring costs		-		-		(1,186	)		(482	)
Loss on sale of business		-		-		-			(14,624	)
Acquisition related costs		-		-		(419	)		(255	)
Other operating income (expense), net		-		-		-			-
Sub-total	$	189,281	$	172,216	$	24,470		$	5,650
Interest expense						1,238			1,317
Other non-operating (income) expense						340			306
Income from continuing operations before income taxes					$	22,892		$	4,027

	Nine Months Ended March 31,
	Net Sales				Income from Operations
	2022		2021		2022			2021
Industry segment:
Electronics	$	232,351	$	180,524	$	54,624		$	30,861
Engraving		109,037		110,377		15,806			16,884
Scientific		65,079		58,777		14,153			14,113
Engineering Technologies		56,558		55,091		5,540			3,076
Specialty Solutions		87,575		75,028		10,185			11,368
Corporate		-		-		(25,507	)		(21,607	)
Restructuring costs		-		-		(2,469	)		(2,478	)
Loss on sale of business		-		-		-			(14,624	)
Acquisition related costs		-		-		(1,561	)		(850	)
Other operating income (expense), net		-		-		(1,700	)		-
Sub-total	$	550,600	$	479,797	$	69,071		$	36,743
Interest expense						4,484			4,403
Other non-operating (income) expense						651			73
Income from continuing operations before income taxes					$	63,936		$	32,267

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Note 17 - Restructuring (Tables)

9 Months Ended

Mar. 31, 2022

Notes Tables

Restructuring and Related Costs [Table Text Block]

	Three Months Ended						Nine Months Ended
	March 31, 2022						March 31, 2022
Fiscal Year 2022	Involuntary Employee Severance and Benefit Costs		Other		Total		Involuntary Employee Severance and Benefit Costs		Other		Total
Current year initiatives	$	966	$	220	$	1,186	$	1,637	$	832	$	2,469

	Three Months Ended						Nine Months Ended
	March 31, 2021						March 31, 2021
Fiscal Year 2021	Involuntary Employee Severance and Benefit Costs		Other		Total		Involuntary Employee Severance and Benefit Costs		Other		Total
Current year initiatives	$	292	$	178	$	470	$	755	$	540	$	1,295
Prior year initiatives		12		-		12		906		277		1,183
	$	304	$	178	$	482	$	1,661	$	817	$	2,478

Schedule of Restructuring Reserve by Type of Cost [Table Text Block]

Current Year Initiatives	Involuntary Employee Severance and Benefit Costs			Other			Total
Restructuring liabilities at June 30, 2021	$	-		$	-		$	-
Additions and adjustments		1,637			832			2,469
Payments		(1,060	)		(765	)		(1,825	)
Restructuring liabilities at March 31, 2022	$	577		$	67		$	644

Prior Year Initiatives	Involuntary Employee Severance and Benefit Costs			Other			Total
Restructuring liabilities at June 30, 2021	$	39		$	10		$	49
Additions and adjustments		-			-			-
Payments		(39	)		(10	)		(49	)
Restructuring liabilities at March 31, 2022	$	-		$	-		$	-

Prior Year Initiatives	Involuntary Employee Severance and Benefit Costs			Other			Total
Restructuring liabilities at June 30, 2020	$	520		$	18		$	538
Additions and adjustments		1,661			817			2,478
Payments		(2,181	)		(835	)		(3,016	)
Restructuring liabilities at March 31, 2021	$	-		$	-		$	-

Restructuring Expenses By Segment [Table Text Block]

	Three Months Ended						Nine Months Ended
	March 31, 2022						March 31, 2022
	Involuntary Employee Severance and Benefit Costs		Other		Total		Involuntary Employee Severance and Benefit Costs		Other		Total
Electronics	$	441	$	65	$	506	$	513	$	83	$	596
Engraving		379		149		528		832		679		1,511
Engineering Technologies		97		6		103		238		6		244
Specialty Solutions		-		-		-		-		64		64
Corporate		49		-		49		54		-		54
	$	966	$	220	$	1,186	$	1,637	$	832	$	2,469

	Three Months Ended						Nine Months Ended
	March 31, 2021						March 31, 2021
	Involuntary Employee Severance and Benefit Costs		Other		Total		Involuntary Employee Severance and Benefit Costs		Other		Total
Electronics	$	56	$	16	$	72	$	307	$	21	$	328
Engraving		248		162		410		528		510		1,038
Engineering Technologies		-		-		-		37		-		37
Specialty Solutions		-		-		-		673		286		959
Corporate		-		-		-		116		-		116
	$	304	$	178	$	482	$	1,661	$	817	$	2,478

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Note 2 - Acquisitions (Details Textual) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Sep. 30, 2020	Mar. 31, 2022	Mar. 31, 2021	Jun. 30, 2021
Payments to Acquire Businesses, Net of Cash Acquired, Total				$ 9,902	$ 27,406
Goodwill, Ending Balance	$ 275,127			275,127		$ 278,054
Business Combination, Acquisition Related Costs	419	$ 255		1,561	850
Sensor Solutions [Member]
Payments to Acquire Businesses, Net of Cash Acquired, Total	9,900
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill, Total	2,800			2,800
Goodwill, Ending Balance	6,001			6,001
Sensor Solutions [Member] | Customer-Related Intangible Assets [Member]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	$ 2,000			2,000
Finite-Lived Intangible Asset, Useful Life (Year)	10 years
Sensor Solutions [Member] | Trademarks [Member]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets	$ 800			800
Renco Electronics [Member]
Payments to Acquire Businesses, Net of Cash Acquired, Total			$ 27,400
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill, Total	10,400		10,400	10,400
Goodwill, Ending Balance	13,991			13,991
Business Acquisition, Goodwill, Expected Tax Deductible Amount			14,000
Business Combination, Acquisition Related Costs	$ 400	$ 300		$ 1,600	$ 900
Renco Electronics [Member] | Customer Relationships [Member]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill, Total			$ 6,800
Finite-Lived Intangible Asset, Useful Life (Year)			12 years
Renco Electronics [Member] | Indefinite Trademarks [Member]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill, Total			$ 3,600

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Note 2 - Acquisitions - Components of Fair Value of Acquisitions and Allocation of Purchase Price For Acquisition of Renco (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Jun. 30, 2021	Sep. 30, 2020
Goodwill	$ 275,127	$ 278,054
Sensor Solutions [Member]
Cash payments	10,016
Less cash acquired	(114)
Total	9,902
Other acquired assets	490
Inventories	531
Property, plant, & equipment	232
Identifiable intangible assets	2,800
Goodwill	6,001
Liabilities assumed	(152)
Renco Electronics [Member]
Cash payments	29,613
Less cash acquired	(2,207)
Total	30,406
Other acquired assets	4,522
Inventories	5,446
Property, plant, & equipment	410
Identifiable intangible assets	10,400		$ 10,400
Goodwill	13,991
Liabilities assumed	(3,651)
Fair value of contingent consideration	3,000
Debt assumed	$ (712)

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Note 3 - Revenue From Contracts With Customers - Revenue Disaggregated (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Net sales		$ 189,281	$ 172,216	$ 550,600	$ 479,797
Transferred at Point in Time [Member]
Net sales		170,949	163,356	510,988	454,007
Transferred over Time [Member]
Net sales		18,332	8,860	39,612	25,790
UNITED STATES
Net sales		110,076	103,005	314,657	286,522
Asia Pacific [Member]
Net sales		37,441	31,715	116,842	89,189
EMEA [Member]
Net sales	[1]	37,963	34,367	108,841	93,549
Other Americas [Member]
Net sales		3,801	3,129	10,260	10,537
Electronics Products Group [Member]
Net sales		79,889	65,085	232,351	180,524
Engraving Group [Member]
Net sales		37,223	36,026	109,037	110,377
Engraving Group [Member] | Engraving Services [Member]
Net sales		34,399	33,655	101,637	102,950
Engraving Group [Member] | Engraving Products [Member]
Net sales		2,824	2,371	7,400	7,427
Scientific Group [Member]
Net sales		18,914	24,221	65,079	58,777
Scientific Group [Member] | Scientific Products and Services [Member]
Net sales		18,914	24,221	65,079	58,777
Engineering Technologies Group [Member]
Net sales		20,890	19,951	56,558	55,091
Engineering Technologies Group [Member] | Engineering Technologies Components [Member]
Net sales		20,890	19,951	56,558	55,091
Specialty Solutions Group [Member]
Net sales		32,365	26,933	87,575	75,028
Specialty Solutions Group [Member] | Hydraulics Cylinders and Systems [Member]
Net sales		15,306	13,629	39,207	36,583
Specialty Solutions Group [Member] | Merchandising & Display [Member]
Net sales		8,438	6,276	23,548	19,515
Specialty Solutions Group [Member] | Pumps [Member]
Net sales		$ 8,621	$ 7,028	$ 24,820	$ 18,930

[1] EMEA consists primarily of Europe, Middle East and S. Africa.

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Note 3 - Revenue From Contracts With Customers - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Contract assets	$ 15,013	$ 9,140
Contract assets, additions	35,091	21,055
Contract assets, deduction	25,711	18,422
Contract assets	24,393	11,773	$ 24,393	$ 11,773
Contract liabilities	471	2,298
Contract liabilities, additions	10,293	6,497
Contract liabilities, deductions	10,721	7,871
Contract liabilities	43	924	43	924
Amounts included in the contract liability balance at the beginning of the period	$ 252	$ 365	$ 471	$ 2,298

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Note 4 - Fair Value Measurements (Details Textual) - USD ($) $ in Thousands		1 Months Ended		3 Months Ended	9 Months Ended
		Aug. 31, 2022	Apr. 30, 2022	Mar. 31, 2022	Mar. 31, 2022	Mar. 31, 2021	Jun. 30, 2021
Payment for Contingent Consideration Liability, Financing Activities					$ 1,167	$ (0)
Business Combination, Contingent Consideration, Liability, Total	[1]			$ 2,167	2,167		$ 3,333
GS Engineering [Member]
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High				12,800	12,800
Renco Electronics [Member]
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High				3,500	3,500
Payment for Contingent Consideration Liability, Financing Activities				1,200
Business Combination, Contingent Consideration, Liability, Total				$ 3,400	$ 3,400
Renco Electronics [Member] | Forecast [Member]
Payment for Contingent Consideration Liability, Financing Activities		$ 1,200
Renco Electronics [Member] | Subsequent Event [Member]
Payment for Contingent Consideration Liability, Financing Activities			$ 1,000

[1] The fair value of contingent consideration arrangements is determined based on the Company's evaluation as to the probability and amount of any contingent consideration that has been earned to date.

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Note 4 - Fair Value Measurements - Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands		Mar. 31, 2022	Jun. 30, 2021
Foreign exchange contracts, assets		$ 169	$ 255
Interest rate swaps		6,881
Foreign exchange contracts		0	1,222
Interest rate swaps		331	3,096
Business Combination, Contingent Consideration, Liability, Total	[1]	2,167	3,333
Fair Value, Inputs, Level 1 [Member]
Foreign exchange contracts, assets		0	0
Interest rate swaps		0
Foreign exchange contracts		0	0
Interest rate swaps		0	0
Business Combination, Contingent Consideration, Liability, Total	[1]	0	0
Fair Value, Inputs, Level 2 [Member]
Foreign exchange contracts, assets		169	255
Interest rate swaps		6,881
Foreign exchange contracts		0	1,222
Interest rate swaps		331	3,096
Business Combination, Contingent Consideration, Liability, Total	[1]	0	0
Fair Value, Inputs, Level 3 [Member]
Foreign exchange contracts, assets		0	0
Interest rate swaps		0
Foreign exchange contracts		0	0
Interest rate swaps		0	0
Business Combination, Contingent Consideration, Liability, Total	[1]	2,167	3,333
Deferred Compensation Plan [Member]
Marketable securities - deferred compensation plan		3,281	2,988
Deferred Compensation Plan [Member] | Fair Value, Inputs, Level 1 [Member]
Marketable securities - deferred compensation plan		3,281	2,988
Deferred Compensation Plan [Member] | Fair Value, Inputs, Level 2 [Member]
Marketable securities - deferred compensation plan		0	0
Deferred Compensation Plan [Member] | Fair Value, Inputs, Level 3 [Member]
Marketable securities - deferred compensation plan		$ 0	$ 0

[1] The fair value of contingent consideration arrangements is determined based on the Company's evaluation as to the probability and amount of any contingent consideration that has been earned to date.

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Note 5 - Inventories (Details Textual) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Selling Expense	$ 2.5	$ 3.0	$ 11.1	$ 8.4

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Note 5 - Inventories - Summary of Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Jun. 30, 2021
Raw materials	$ 53,415	$ 47,000
Work in process	22,740	22,539
Finished goods	27,775	22,323
Total	$ 103,930	$ 91,862

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Note 6 - Goodwill - Changes to Goodwill (Details) $ in Thousands	9 Months Ended
	Mar. 31, 2022 USD ($)
Balance	$ 278,054
Acquisitions	6,001
Translation adjustment	(8,928)
Balance	275,127
Electronics Products Group [Member]
Balance	144,832
Acquisitions	6,001
Translation adjustment	(7,814)
Balance	143,019
Engraving Group [Member]
Balance	77,378
Acquisitions	0
Translation adjustment	(632)
Balance	76,746
Scientific Group [Member]
Balance	15,454
Acquisitions	0
Translation adjustment	0
Balance	15,454
Engineering Technologies Group [Member]
Balance	37,085
Acquisitions	0
Translation adjustment	(482)
Balance	36,603
Specialty Solutions Group [Member]
Balance	3,305
Acquisitions	0
Translation adjustment	0
Balance	$ 3,305

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Note 7 - Warranty Reserves - Changes in Warranty Reserve (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Mar. 31, 2022	Jun. 30, 2021
Balance at beginning of year	$ 2,086	$ 1,781
Acquisitions and other charges	(68)	68
Warranty expense	856	2,007
Warranty claims	(960)	(1,770)
Balance at end of period	$ 1,914	$ 2,086

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Note 8 - Debt (Details Textual) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2019	Mar. 31, 2022
Amended and Restated Credit Agreement [Member]
Debt Instrument, Term (Year)	5 years
Line of Credit Facility, Maximum Borrowing Capacity	$ 500.0
Line Of Credit, Accordion Feature	250.0
Swing Line Loan [Member]
Line of Credit Facility, Maximum Borrowing Capacity	10.0
Letter of Credit [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 35.0
Standby Letters of Credit [Member]
Long-Term Line of Credit, Total		$ 6.2
Line of Credit Facility, Remaining Borrowing Capacity		$ 299.5

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Note 8 - Debt - Long-term Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Jun. 30, 2021
Funded debt	$ 200,000	$ 200,000
Issuance cost	(255)	(510)
Total long-term debt	199,745	199,490
Line of Credit [Member]
Funded debt	$ 200,000	$ 200,000

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Note 9 - Accrued Liabilities - Accrued Expenses (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Jun. 30, 2021
Payroll and employee benefits	$ 27,137	$ 32,550
Workers' compensation	2,118	2,118
Warranty reserves	1,914	2,086
Fair value of derivatives	331	4,318
Operating lease current liability	6,820	7,933
Other	18,865	12,712
Total	$ 57,185	$ 61,717

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Note 10 - Derivative Financial Instruments (Details Textual) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Mar. 31, 2022	Mar. 31, 2022	Jun. 30, 2021
Derivative, Notional Amount
Derivative Instruments, Loss Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing	0	0
Interest Rate Swap [Member]
Derivative, Notional Amount	$ 200,000	$ 200,000
Derivative, Average Fixed Interest Rate	1.27%	1.27%
Foreign Exchange Forward [Member]
Outstanding Forward Contracts, Net Unrealized Gain (Loss)	$ 200	$ 200	$ (1,000)

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Note 10 - Derivative Financial Instruments - Fair Value of Swaps Recognized in Accrued Liabilities and in Other Comprehensive Income (Details) - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2022	Jun. 30, 2021
Notional Amount
Fixed Rate
Fair Value, Liability	$ (6,550)	$ (3,096)
Fair Value, Liability	6,550	3,096
Interest Rate Swap Effective May 24, 2017 Number One [Member]
Notional Amount	$ 25,000
Fixed Rate	1.88%
Maturity	Apr. 24, 2022
Fair Value, Liability	$ (32)	(374)
Fair Value, Liability	32	374
Interest Rate Swap Effective August 6, 2018 [Member]
Notional Amount	$ 25,000
Fixed Rate	2.83%
Maturity	Aug. 06, 2023
Fair Value, Liability	$ (299)	(1,401)
Fair Value, Liability	299	1,401
Interest Rate Swap Effective March 23, 2020 [Member]
Notional Amount	$ 100,000
Fixed Rate	0.91%
Maturity	Mar. 23, 2025
Fair Value, Liability	$ 4,540	(907)
Fair Value, Liability	(4,540)	907
Interest Rate Swap Effective April 24, 2020 [Member]
Notional Amount	$ 25,000
Fixed Rate	0.88%
Maturity	Apr. 24, 2025
Fair Value, Liability	$ 1,203	(192)
Fair Value, Liability	(1,203)	192
Interest Rate Swap Effective May 24, 2020 [Member]
Notional Amount	$ 25,000
Fixed Rate	0.91%
Maturity	Mar. 24, 2025
Fair Value, Liability	$ 1,138	(222)
Fair Value, Liability	$ (1,138)	$ 222

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Note 10 - Derivative Financial Instruments - Foreign Currency Exchange Contracts (Details) € in Thousands, $ in Thousands, $ in Thousands, $ in Millions	Mar. 31, 2022 USD ($)	Mar. 31, 2022 EUR (€)	Mar. 31, 2022 SGD ($)	Mar. 31, 2022 CAD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2021 EUR (€)	Jun. 30, 2021 SGD ($)	Jun. 30, 2021 CAD ($)
Derivative, Notional Amount
Foreign Exchange Contract [Member]
Derivative, Notional Amount	$ 0	€ 5,750	$ 5,000	$ 16.6	$ 987	€ 5,750	$ 21,836	$ 20.6

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Note 10 - Derivative Financial Instruments - Amounts Reclassified From Accumulated Other Comprehensive Income (Loss) to Net Income (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Jun. 30, 2021
Derivative liability, fair value	$ 6,550	$ 3,096
Designated as Hedging Instrument [Member]
Derivative, fair value	7,050	255
Derivative liability, fair value	331	4,318
Prepaid Expenses and Other Current Assets [Member] | Interest Rate Swap [Member] | Designated as Hedging Instrument [Member]
Derivative, fair value	6,881
Prepaid Expenses and Other Current Assets [Member] | Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member]
Derivative, fair value	169	255
Accrued Liabilities [Member] | Interest Rate Swap [Member] | Designated as Hedging Instrument [Member]
Derivative liability, fair value	331	3,096
Accrued Liabilities [Member] | Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member]
Derivative liability, fair value	$ 0	$ 1,222

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Note 10 - Derivative Financial Instruments - Gain (Loss) Recognized in Comprehensive Income on Derivative Financial Instruments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Change in unrealized gains (losses)	$ 5,828	$ 3,747	$ 7,890	$ 3,532
Interest Rate Swap [Member]
Change in unrealized gains (losses)	6,045	2,282	7,885	1,801
Foreign Exchange Contract [Member]
Change in unrealized gains (losses)	$ (217)	$ 1,465	$ 5	$ 1,731

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Note 10 - Derivative Financial Instruments - Details About Accumulated Other Comprehensive Income (Loss) Components (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Accumulated other comprehensive income (loss) component	$ 764	$ 64	$ 2,587	$ 1,185
Interest Rate Swap [Member] | Interest Expense [Member] | Cash Flow Hedging [Member]
Accumulated other comprehensive income (loss) component	557	570	1,761	1,698
Foreign Exchange Contract [Member] | Other Nonoperating Income (Expense) [Member] | Cash Flow Hedging [Member]
Accumulated other comprehensive income (loss) component	$ 207	$ (506)	$ 826	$ (513)

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Note 11 - Retirement Benefits - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
UNITED STATES
Service cost	$ 1	$ 1	$ 3	$ 3
Interest cost	1,830	1,860	5,490	5,579
Expected return on plan assets	(3,260)	(3,253)	(9,779)	(9,759)
Recognized net actuarial loss	1,384	1,483	4,151	4,450
Amortization of prior service cost	0	0	0	0
Net periodic benefit cost	(45)	91	(135)	273
Foreign Plan [Member]
Service cost	58	55	179	164
Interest cost	193	185	576	539
Expected return on plan assets	(215)	(161)	(641)	(468)
Recognized net actuarial loss	84	193	253	562
Amortization of prior service cost	(1)	(1)	(3)	(4)
Net periodic benefit cost	$ 119	$ 271	$ 364	$ 793

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Note 11 - Retirement Benefits - Funded Status for Pension Plan (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Jun. 30, 2021
Prepaid benefit cost	$ 5,485	$ 5,661
Current liabilities	(596)	(517)
Non-current liabilities	(42,311)	(47,425)
Net amount recognized	$ (37,422)	$ (42,281)

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Note 11 - Retirement Benefits - Contributions to Defined Benefit Plans (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Contributions to defined benefit plans	$ 52	$ 3,083	$ 157	$ 7,962
Remaining contributions to be made	399		399
UNITED STATES | Defined Benefit Plan, Funded Plan [Member]
Contributions to defined benefit plans	0	3,030	0	7,805
Remaining contributions to be made	0		0
UNITED STATES | Defined Benefit Plan, Unfunded Plan [Member]
Contributions to defined benefit plans	52	53	157	157
Remaining contributions to be made	54		54
UNITED KINGDOM
Contributions to defined benefit plans	0	0	0	0
Remaining contributions to be made	0		0
GERMANY | Defined Benefit Plan, Unfunded Plan [Member]
Contributions to defined benefit plans	0	0	0	0
Remaining contributions to be made	280		280
IRELAND
Contributions to defined benefit plans	0	$ 0	0	$ 0
Remaining contributions to be made	$ 65		$ 65

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Note 12 - Income Taxes (Details Textual)	3 Months Ended		9 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Effective Income Tax Rate Reconciliation, Percent, Total	24.00%	56.30%	24.50%	25.30%
Operating Loss Carryforwards, Expiration Term (Year)	5 years

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Note 13 - Earnings Per Share (Details Textual) - shares	6 Months Ended	9 Months Ended
	Dec. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Share-Based Payment Arrangement, Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares)	0
Performance Shares [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares)		142,170	129,427

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Note 13 - Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Basic (in shares)	11,982	12,136	12,009	12,185
Dilutive effect of unvested, restricted stock awards (in shares)	107	117	112	82
Diluted - Average shares outstanding (in shares)	12,089	12,253	12,121	12,267

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Note 14 - Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Jun. 30, 2021
Foreign currency translation adjustment	$ (38,587)	$ (21,244)
Unrealized pension losses, net of tax	(88,863)	(92,372)
Unrealized gains (losses) on derivative instruments, net of tax	5,580	(2,524)
Total	$ (121,870)	$ (116,140)

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Note 15 - Contingencies (Details Textual) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021	Jun. 30, 2021
Accrued Liabilities, Current, Total	$ 57,185		$ 61,717
Lawsuit Filed Against Electronics [Member]
Accrued Liabilities, Current, Total		$ 1,700
Lawsuit Filed Against Electronics [Member] | Minimum [Member]
Loss Contingency, Estimate of Possible Loss		0
Lawsuit Filed Against Electronics [Member] | Maximum [Member]
Loss Contingency, Estimate of Possible Loss		$ 6,300

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Note 16 - Industry Segment Information (Details Textual)	9 Months Ended
	Mar. 31, 2022
Number of Reportable Segments	5

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Note 16 - Industry Segment Information - Net Sales and Income (Loss) by Industry Segments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Net sales	$ 189,281	$ 172,216	$ 550,600	$ 479,797
Income from operations	24,470	5,650	69,071	36,743
Restructuring costs	(1,186)	(482)	(2,469)	(2,478)
Loss on sale of business	(0)	(14,624)	(0)	(14,624)
Acquisition related costs	(419)	(255)	(1,561)	(850)
Other operating income (expense), net	0	0	(1,700)	0
Interest expense	1,238	1,317	4,484	4,403
Other non-operating (income) expense	340	306	651	73
Income from continuing operations before income taxes	22,892	4,027	63,936	32,267
Restructuring costs	(1,186)	(482)	(2,469)	(2,478)
Loss on sale of business	(0)	(14,624)	(0)	(14,624)
Acquisition related costs	(419)	(255)	(1,561)	(850)
Other operating income (expense), net	0	0	(1,700)	0
Electronics Products Group [Member]
Net sales	79,889	65,085	232,351	180,524
Income from operations	19,194	12,364	54,624	30,861
Restructuring costs	(506)	(72)	(596)	(328)
Restructuring costs	(506)	(72)	(596)	(328)
Engraving Group [Member]
Net sales	37,223	36,026	109,037	110,377
Income from operations	5,728	4,510	15,806	16,884
Restructuring costs	(528)	(410)	(1,511)	(1,038)
Restructuring costs	(528)	(410)	(1,511)	(1,038)
Scientific Group [Member]
Net sales	18,914	24,221	65,079	58,777
Income from operations	4,155	5,803	14,153	14,113
Engineering Technologies Group [Member]
Net sales	20,890	19,951	56,558	55,091
Income from operations	2,327	1,245	5,540	3,076
Restructuring costs	(103)	0	(244)	(37)
Restructuring costs	(103)	0	(244)	(37)
Specialty Solutions Group [Member]
Net sales	32,365	26,933	87,575	75,028
Income from operations	3,632	4,251	10,185	11,368
Restructuring costs	0	0	(64)	(959)
Restructuring costs	0	0	(64)	(959)
Corporate and Other [Member]
Income from operations	$ (8,961)	$ (7,162)	$ (25,507)	$ (21,607)

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Note 17 - Restructuring (Details Textual) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021	Jun. 30, 2022
Restructuring Costs, Total	$ 1,186	$ 482	$ 2,469	$ 2,478
Forecast [Member]
Restructuring Costs, Total					$ 1,500

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Note 17 - Restructuring - Summary of Severance, Restructuring, and Related Charges by Initiative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Restructuring charges	$ 1,186	$ 482	$ 2,469	$ 2,478
Involuntary Employee Severance And Benefit Costs [Member]
Restructuring charges	966	304	1,637	1,661
Other Restructuring [Member]
Restructuring charges	220	178	832	817
Current Year Restructuring Initiatives [Member]
Restructuring charges	1,186	470	2,469	1,295
Current Year Restructuring Initiatives [Member] | Involuntary Employee Severance And Benefit Costs [Member]
Restructuring charges	966	292	1,637	755
Current Year Restructuring Initiatives [Member] | Other Restructuring [Member]
Restructuring charges	$ 220	178	$ 832	540
Prior Year Initiatives [Member]
Restructuring charges		12		1,183
Prior Year Initiatives [Member] | Involuntary Employee Severance And Benefit Costs [Member]
Restructuring charges		12		906
Prior Year Initiatives [Member] | Other Restructuring [Member]
Restructuring charges		$ 0		$ 277

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Note 17 - Restructuring - Summary of Activity in Reserves Related to Restructuring Initiatives (Details) - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Current Year Restructuring Initiatives [Member]
Restructuring liabilities	$ 0
Additions and adjustments	2,469
Payments	(1,825)
Restructuring liabilities	644
Current Year Restructuring Initiatives [Member] | Involuntary Employee Severance And Benefit Costs [Member]
Restructuring liabilities	0
Additions and adjustments	1,637
Payments	(1,060)
Restructuring liabilities	577
Current Year Restructuring Initiatives [Member] | Other Restructuring [Member]
Restructuring liabilities	0
Additions and adjustments	832
Payments	(765)
Restructuring liabilities	67
Prior Year Initiatives [Member]
Restructuring liabilities	49	$ 538
Additions and adjustments	0	2,478
Payments	(49)	(3,016)
Restructuring liabilities	0	0
Prior Year Initiatives [Member] | Involuntary Employee Severance And Benefit Costs [Member]
Restructuring liabilities	39	520
Additions and adjustments	0	1,661
Payments	(39)	(2,181)
Restructuring liabilities	0	0
Prior Year Initiatives [Member] | Other Restructuring [Member]
Restructuring liabilities	10	18
Additions and adjustments	0	817
Payments	(10)	(835)
Restructuring liabilities	$ 0	$ 0

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Note 17 - Restructuring - Summary of Restructuring Expenses by Segment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Restructuring charges	$ 1,186	$ 482	$ 2,469	$ 2,478
Involuntary Employee Severance And Benefit Costs [Member]
Restructuring charges	966	304	1,637	1,661
Other Restructuring [Member]
Restructuring charges	220	178	832	817
Electronics Products Group [Member]
Restructuring charges	506	72	596	328
Electronics Products Group [Member] | Involuntary Employee Severance And Benefit Costs [Member]
Restructuring charges	441	56	513	307
Electronics Products Group [Member] | Other Restructuring [Member]
Restructuring charges	65	16	83	21
Engraving Group [Member]
Restructuring charges	528	410	1,511	1,038
Engraving Group [Member] | Involuntary Employee Severance And Benefit Costs [Member]
Restructuring charges	379	248	832	528
Engraving Group [Member] | Other Restructuring [Member]
Restructuring charges	149	162	679	510
Engineering Technologies Group [Member]
Restructuring charges	103	0	244	37
Engineering Technologies Group [Member] | Involuntary Employee Severance And Benefit Costs [Member]
Restructuring charges	97	0	238	37
Engineering Technologies Group [Member] | Other Restructuring [Member]
Restructuring charges	6	0	6	0
Specialty Solutions Group [Member]
Restructuring charges	0	0	64	959
Specialty Solutions Group [Member] | Involuntary Employee Severance And Benefit Costs [Member]
Restructuring charges	0	0	0	673
Specialty Solutions Group [Member] | Other Restructuring [Member]
Restructuring charges	0	0	64	286
Corporate Segment [Member]
Restructuring charges	49	0	54	116
Corporate Segment [Member] | Involuntary Employee Severance And Benefit Costs [Member]
Restructuring charges	49	0	54	116
Corporate Segment [Member] | Other Restructuring [Member]
Restructuring charges	$ 0	$ 0	$ 0	$ 0

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Note 18 - Subsequent Events (Details Textual) - USD ($) $ in Millions, shares in Billions	Apr. 28, 2022	Mar. 31, 2022
Stock Repurchase Program, Remaining Authorized Repurchase Amount		$ 0.6
Subsequent Event [Member]
Stock Repurchase Program, Number of Shares Authorized to be Repurchased (in shares)	0.1