SCHAUMBURG, Ill.–(BUSINESS WIRE)–Nov. 8, 2016–Sparton Corporation (NYSE:SPA) today announced results for the first quarter of fiscal year 2017 ended October 2, 2016.
First Quarter Financial Results
- Net sales of $100.4 million
- Gross profit margin of 17.2%
- SG&A expenses of $13.4 million or 13.3% of sales; adjusted SG&A of $12.6 million, 12.6%
- Earnings per share of $0.01, adjusted EPS of $0.20
- Adjusted EBITDA of $6.1 million, a 6.1% adjusted EBITDA margin
- Borrowings under Credit Facility of $95.8 million
First Quarter Highlights
- 64 new program wins in the MDS Segment with expected annual revenue of $12.2 million when fully ramped up into production.
- MDS has trailing four quarter win revenue of $62 million, which continues to support our future organic growth.
- Backlog of:
- $125 million in the MDS Segment
- $119 million in the ECP Segment principally including:
- $98 million in domestic sonobouys
- $6 million in foreign sonobouys
- $11 million in rugged displays
Joseph J. Hartnett, Interim President & CEO, commented, “First quarter revenues came in just above the midpoint of our guidance range. However, during the quarter we remained engaged in activities related to the exploration of a possible sale of the Company and we have not yet achieved the desired level of success in addressing operating performance issues, implementing cost saving initiatives or carrying out new business development activities. We anticipate that progress in these areas will accelerate upon the completion of the current sale process, whether from an agreement for a sale of the Company or from a determination that no such sale will occur.”
Joe McCormack, Senior Vice President and CFO, commented, “We continue to be focused on actively managing our working capital, driving free cash flow, and reducing our debt and leverage. Despite the costs associated with the exploration of a sale of the Company and increasing health care costs, we have been able to keep our overall SG&A expenses at a consistent run-rate through a continued focus on reducing our operating expenses throughout the Company.”
As previously announced, the Board of Directors of Sparton Corporation is exploring a possible sale of the Company. There can be no assurance that such a sale will occur.
About Sparton Corporation
Sparton Corporation (NYSE:SPA), now in its 117th year, is a provider of complex and sophisticated electromechanical devices with capabilities that include concept development, industrial design, design and manufacturing engineering, production, distribution, field service, and refurbishment. The primary markets served are Medical & Biotechnology, Military & Aerospace, and Industrial & Commercial. Headquartered in Schaumburg, IL, Sparton currently has thirteen manufacturing locations and engineering design centers worldwide. Sparton’s Web site may be accessed at http://www.sparton.com/.
Safe Harbor and Fair Disclosure Statement
Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: To the extent any statements made in this release contain information that is not historical, these statements are essentially forward-looking and are subject to risks and uncertainties, including the difficulty of predicting future results, the regulatory environment, fluctuations in operating results and other risks detailed from time to time in Sparton’s filings with the Securities and Exchange Commission (SEC). The matters discussed in this press release may also involve risks and uncertainties concerning Sparton’s services described in Sparton’s filings with the SEC. In particular, see the risk factors described in Sparton’s most recent Form 10K and Form 10Q. Sparton assumes no obligation to update the forward-looking information contained in this press release.
Institutional Marketing Services (IMS)
John Nesbett/Jennifer Belodeau, 203-972-9200
Joseph McCormack, 847-762-5812