Ladies and gentlemen, thank you for standing by, and welcome to the Standex International Third Quarter Fiscal Year 2014 Earnings Conference Call. [Operator Instructions] Thank you. I will now turn the call over to David Calusdian, from Sharon Merrill Associates. Please go ahead, sir.

Thank you. Please note that the presentation accompanying management's remarks can be found on Standex's Investor Relations website, www.standex.com. Please see Standex's Safe Harbor passage on Slide 2. Matters that Standex management will discuss on today's conference call include predictions, estimates, expectations and other forward-looking statements. These statements are subject to risks and uncertainties that could cause actual results to differ materially. You should refer to Standex's recent SEC filings and public announcements for a detailed list of risk factors. In addition, I would like to remind you that today's discussion will include references to EBITDA, which is earnings before interest, taxes, depreciation and amortization; adjusted EBITDA, which is EBITDA excluding restructuring expenses and one-time items; non-GAAP net income; non-GAAP income from operations; non-GAAP net income from continuing operations; and free cash flow. These non-GAAP financial measures are intended to serve as a complement to results provided in accordance with accounting principles generally accepted in the United States. Standex believes that such information provides an additional measurement and consistent historical comparison of the company's performance. A reconciliation of the non-GAAP financial measures to the most comparable GAAP measures is available in Standex's third quarter news release. On the call today is Standex's President and Chief Executive Officer, David Dunbar; and Chief Financial Officer, Tom DeByle. Please turn to Slide 3 as I turn the call over to David.

Thank you, David. I'd like to welcome everybody listening to today's earnings call. This is my first solo [ph] call and I look forward to sharing our performance with you. We reported record results in the third quarter. Overall sales increased 7.7%, organic sales were up 7.2%, and foreign exchange contributed about 0.5%. Looking at the bottom line, non-GAAP operating income was up 27.5%, non-GAAP EPS was up 25.7%, to $0.93 a share. We ended the quarter with a net cash position of $12.4 million on the balance sheet. All of our businesses contributed to these results. We were pleased with the strengthening of demand in food service, and with the operational improvements in that segment, although we have work to do on our margin improvement initiatives there. Our other 4 segments reported double-digit sales increases and are growing at faster rates than the markets they serve. I've spent the past few months visiting Standex's facilities around the world, and meeting with key customers and shareholders. I'd first like to thank Roger Fix, our recently retired CEO, for an intensive and effective leadership transition. Roger made tremendous contributions to Standex during his tenure as CEO and we wish him well in his retirement. I would also like to mark the recent passing of Ted Trainer, who is Standex's CEO from 1996 to 2001, whose influence on our management systems and the leadership style of the company can still be felt. In my time here, I found that at the core, our businesses thrive by building close customer relationships to deliver differentiated engineered solutions. We have a passionate workforce, regardless of where they are around the globe, and we're serving very good markets with above GDP prospects. In a few segments where growth is not above GDP, we're generating growth through market share gains. The company has made tremendous progress in the development of the portfolio and improved operating disciplines during the past several years. Now we're focusing on profitable growth. As I mentioned, we have good brands and attractive markets, with excellent investment opportunities. It's our mission now to find the best investment opportunities to leverage our strong balance sheet to create meaningful shareholder value. With that, Tom will discuss our results for the third quarter. After that, I'll discuss the performance and outlook in each of our business segments. Tom?

Thank you, David, and good morning, everyone. Please turn to Slide 4. In taking a long view, you can see that our trailing 12-month EPS is $3.85, up 4% from the full year fiscal 2013. This demonstrates the impact of our lower cost structure and the success of our growth initiative, both through acquisition and organic growth. Slide 5 summarizes our third quarter results. As David mentioned, net sales for the third quarter increased 7.7%, to $178.8 million, from $166 million in the third quarter last year. Excluding special items, operating income grew 27.5%, to $17 million, from $13.3 million a year ago. Adjusted EBITDA grew 22.7%, to $20.8 million, or $0.93 per diluted share, compared with $17 million or $0.74 per diluted share in the third quarter of fiscal 2013. Please turn to Slide 6, which is a quarterly bridge that illustrates the impact of special items on the net income from continuing operations. These items included tax effected $1 million of restructuring charges; $1 million of nonrecurring management transition expense; and life insurance proceeds of $3.4 million. In the comparable period of fiscal 2013, there was $0.8 million of tax effected restructuring charges, $2 million expense related to a legal assessment; a $1.6 million life insurance benefit; and $1.4 million benefit from discrete tax items. Turning to Slide 7, net working capital at the end of the third quarter was $131 million, compared with $117.4 million at the end of the fourth quarter of fiscal 2013, and $138.3 million at the end of Q3 last year. Working capital turns were 5.5 in third quarter of fiscal 2014. Slide 8 illustrates our debt management. We ended the third quarter in a net cash position of approximately $12.4 million. This compares with a net debt of $40.7 million a year…

Well, thank you, Tom. Please turn to slide 12, Food Service Equipment Group. Sales in food service increased to 2.6% from Q3 last year. Operating income was up 35.6% as a result of volume leverage, operational improvement and an easier year-over-year comparison due to nonrecurring expenses in Q3 a year ago. On the Refrigeration side of the business, we continued to see good growth in the dollar store segment, where we've been successful with our new line of value-engineered endless merchandising cabinets. We also had strength in the dealer channel during the quarter after some sluggishness in Q2. This growth was partially offset by weakness in the quick service restaurant segment as a result of weather-related store opening delays and continuing softness at retail drugstores. It's important to note the growth at the dollar store segment is now more than offsetting the sustained weakness at the retail drug segment to lower margins. Our backlog in Refrigerated Solutions was up by about 30% in the quarter due to slow orders and weather-related delays. In Cooking Solutions, we have strong sales in the U.S. grocery store segment, and the project pipeline continues to improve. Sales at the dealer channel and the convenience store segment also reported year-over-year gains in the quarter. Our new products continue to be well received by customers and backlog at this group increased by 69% due to strong order intake. At our Customer Solutions business, sales were down in the dealer channel, partially as a result of weather-related construction delays. Sales and profitability increased on a year-over-year basis, and our Procon Pump business, conditions improved in Europe. We continue to focus on improving our bottom line performance at Food Services Group. I look at the Food Service segment is one where shareholder value creation over the next few…

[Operator Instructions] Your first question comes from the line of Chris McGinnis of Sidoti & Company.

I guess, just the overall -- I mean, maybe just a starting point, just in the food service, has that strengthened for us? I guess, exiting the quarter, as the weather got better. Maybe just talk about that a little bit.

Yes, I think, if you look at the demand profile through the quarter, January and February, relatively slow largely related to weather. We did see strengthening through the end of the quarter, which is continuing.

So that comp is getting better as we exit the quarter and is kind of -- is holding tight right now in the turn quarter?

Yes.

And then, I guess, just on the overall profitability improvement, on a year-over-year basis, how much of that is sustainable and how much of it is maybe just due to the strength in the current quarter, when you look out going forward, just how sustainable is that?

Well, if you look across the 5 segments -- is your question Food Service or all the segments?

I'd say, in all, across-the-board, I guess.

Yes, I'll tell you -- I think -- let's deal with Food Service separately. The other 4 segments are all operating at very solid levels of profitability and margin. We like them in that region and we just want them to grow and give us more of that good margin. On Food Service, our priorities right now are to steadily increase the margin. And over the next 2 years, our expectation is Cheyenne consolidation, some other internal actions we have planned, can add 200 basis points to that business. So whether you say that the specific progress this quarter, year-over-year, is sustainable, we do see steady increase in our margin.

Great. And then just a follow-up on the Cheyenne. Did that start day 1 or how does that progress through fiscal '15 in that cost-reduction initiative?

We'll start to see some of the savings this quarter. Product lines are being moved as we speak. We've had some early lines already moved, and the program is on track and going well. The project will be complete in June. And the full savings of roughly $4 million will begin to flow in July.

Great. And then, maybe just -- can you just maybe touch on the acquisition, your strategy and just where you're at and how you feel about the environment?

Well, yes. Standex as a company is -- have made a lot of acquisitions over the past. And we have a sweet spot of companies, privately held companies, when acquired by Standex, we can bring them some operating discipline, similar experience, help make them stronger, better-performing companies. And recently we did that with Meder, and with the Master Spinners, both part of Engineering Technologies. Both of these businesses are helping drive our growth. So we still believe there are many attractive opportunities out there like that. Our focus in the short-term will vary business-by-business. Food Service primarily focuses internally on the operating improvement. But you can't choose the timing of a deal. So if an attractive opportunity comes up in food service that brings complementary products or customers, somehow enhances our business, I would look at it. I would say, we'll be more, probably more proactive in investing more energy and looking at opportunities in other segments, particularly Electronics and the Engineering Technology.

[Operator Instructions] At this time, there are no further questions. I will now turn the call over to David Dunbar for any additional or closing remarks.

All right. Thank you, thank you all for listening in today. I'd like to note that we'll be hosting an Investor Tour at our Engineering Technologies Spincraft facility in Billerica, Massachusetts on May 14. Please email sxi@investorrelations.com, if you are interested in attending. I hope to see you there. Otherwise, we look forward to speaking with you during our full year fiscal 2014 results conference in the summer. Thank you.

Thank you for participating in today's conference call. You may now disconnect.