Company: SXI
Filing Date: 2025-08-04
Form Type: 10-K
Source: 0001437749-25-024450
Chunk: 951

Company: STANDEX INTERNATIONAL CORP/DE/
Filing Date: 2025-08-04
Form: 10-K
Item: Item 7A
Chunk 951
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 pro forma operating results of the Company for the year ended  June 30, 2025 and 2024, respectively, which give effect to the acquisition of the Amran/Narayan Group as if it had occurred effective  July 1, 2023. The pro forma results are not necessarily indicative of the operating results that would have occurred had the acquisition been effective as of the date indicated, nor are they intended to be indicative of results that  may occur in the future. The pro forma information does not include the effects of any synergies related to the Amran/Narayan Group acquisition, transactions between the entities prior to acquisition, or the pre-acquisition impact of other businesses acquired by the Company during this period as they were not material to the Company’s historical results of operations. Pro forma earnings during the periods presented were adjusted to include the following adjustments:

       Unaudited  
   Year Ended June 30,  
 (in thousands)   2025    2024  
 Net sales  $826,550  $814,840 
 Net income   87,415   72,034 

     ●  Amortization of inventory step-up to fair value assuming inventory turns within a two-month period; 

     ●  Amortization of definite-lived intangible assets recognized at fair value that exceed one year as if acquired  July 1, 2023; 

     ●  Non-recurring acquisition-related costs have been excluded from net income; 

     ●  Interest expense (including amortization of loan discount) on the Term Loan Credit Agreement entered into in connection with the acquisition as if the loan was obtained  July 1, 2023. The interest rate assumed for purposes of the pro forma financial information was 7.7% on average as the rate in agreement is a variable rate plus certain margins; an 

     ●  Income tax expense (benefit) was adjusted related to the above pro forma adjustments using an estimated tax rate of 22.6%. 

   With respect to each of the McStarlite and Amran/Narayan Group acquisitions, the estimated fair values of the indefinite lived tradenames were determined based on an income approach using the relief from royalty method, which assumes that, in lieu of ownership, a third party would be willing to pay a royalty in order to exploit the related benefits of the tradenames assets. The cash flow projections the Company uses to estimate the fair value of the tradenames