Sparton Corporation Reports Fiscal 2017 Third Quarter Results

SCHAUMBURG, Ill.–(BUSINESS WIRE)–May 9, 2017–Sparton Corporation (NYSE:SPA) today announced results for the third quarter of fiscal year 2017 ended April 2, 2017.

Third Quarter Financial Results and Highlights

Joseph J. Hartnett, Interim President & CEO, commented, “Our Medical facilities are continuing to perform well while certain Mil/Aero and industrial facilities experienced unexpected delays in a couple of customer programs. As expected, our ECP Segment performance improved significantly over the prior quarter. Overall, while we are not satisfied with the quarter’s results, we are making progress in building a stronger more productive infrastructure while continuing to explore a potential acquisition of the Company.”

Joe McCormack, Senior Vice President and CFO, commented, “We are pleased that we were able to hold the line on our long-term debt during the quarter in light of investments in infrastructure and working capital needs in the quarter. The management of debt levels, generation of free cash flow and optimization of earnings continues to be a priority of the Company.”

Consolidated:

• Net sales of $95.4 million

• Gross profit margin increased 140 bps from prior quarter to 17.7%

• SG&A expenses of $12.9 million or 13.5% of sales; adjusted SG&A of $12.2 million, 12.8% of sales

• Earnings per share of $0.04, adjusted Earnings per share of $0.22

• Adjusted EBITDA of $5.3 million, a 5.6% adjusted EBITDA margin

MDS Segment:

• Gross sales of $61.1 million

• Gross profit margin of 11.0%

• Operating loss of $0.7 million

• Adjusted EBITDA of $4.3 million, a 7.1% adjusted EBITDA margin

• New program wins in Q3 have expected revenue of $12.5 million when fully ramped up into production

• Trailing four quarter win revenue of $54.3 million, which continues to support our future organic growth

• Backlog of $118 million

ECP Segment:

• Gross sales of $37.1 million

• Gross profit margin of 27.6%

• Operating income of $5.3 million

• Adjusted EBITDA of $7.1 million, a 19.1% adjusted EBITDA margin

• Backlog of $124 million comprised principally of $105 million in domestic sonobuoys, $7 million in foreign sonobuoys, and $12 million in rugged electronics and other

View the full release of results

 

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.


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