Sparton Corporation Reports Fiscal 2017 Fourth Quarter Results

SCHAUMBURG, Ill.–(BUSINESS WIRE)–Sep. 14, 2017–Sparton Corporation (NYSE:SPA) today announced results for the fourth quarter of fiscal year 2017 ended July 2, 2017.

Fourth Quarter Financial Results and Highlights

Joseph J. Hartnett, Interim President & CEO, commented, “We are pleased to report our organic growth produced over $23 million in new programs wins for the quarter. A clear indication of the progress we are making in building a business model that supports profitable revenue growth through business development. Additionally, while a significant amount of time and effort was directed toward arriving at a merger agreement with Ultra Electronics Holdings plc on July 7, 2017, we were able to focus on delivering improved operating performance for the quarter while exceeding fourth quarter guidance on revenue and gross margins.”

Joseph G. McCormack, Senior Vice President and CFO, commented, “We are pleased that the continued improvement in operating performance across both segments allowed us to significantly pay down our debt during the fourth quarter of fiscal 2017 and reduce our debt leverage below 3.0x EBITDA at year-end.”

Consolidated:

•Net sales of $104.4 million

• Gross profit margin of 20.9%, an increase of 320 bps from prior quarter

• SG&A expenses of $14.9 million or 14.3% of sales; adjusted SG&A of $13.8 million, 13.2% of sales

• Earnings per share of $0.17, adjusted earnings per share of $0.38

• Adjusted EBITDA of $9.7 million, a 9.3% adjusted EBITDA margin

• Credit Facility of $74.5 million, a reduction of $22.7 million (23.4%) from the prior fiscal year-end

• Debt leverage as calculated per Credit Facility of 2.98x compared to 3.45x at the end of the previous quarter

MDS Segment:

•Gross sales of $67.0 million

• Gross profit margin of 13.6%, an increase of 260 bps from the prior quarter

• Operating income of $1.6 million

• Adjusted EBITDA of $6.4 million, a 9.6% adjusted EBITDA margin

• New program wins in Q4 have expected revenue of $23.2 million when fully ramped up into production

• Trailing four quarter new program win revenue of $62.4 million, which continues to support our future organic growth

ECP Segment:

•Gross sales of $40.3 million

• Gross profit margin of 31.5%, an increase of 390 bps from the prior quarter

• Operating income of $7.8 million

• Adjusted EBITDA of $9.9 million, a 24.5% adjusted EBITDA margin

View the full release of results

 

About Sparton Corporation

Sparton Corporation (NYSE:SPA), now in its 118th 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.


Contact

Investors:
Institutional Marketing Services (IMS)
John Nesbett/Jennifer Belodeau, 203-972-9200
jnesbett@institutionalms.com
or
Company:
Sparton Corporation
Joseph McCormack, 847-762-5812
jmccormack@sparton.com