Sparton Corporation Reports Fiscal 2018 Third Quarter Results

SCHAUMBURG, Ill.–(BUSINESS WIRE)–May 9, 2018– Sparton Corporation (NYSE:SPA) today announced results for the third quarter of fiscal year 2018 ended April 1, 2018.

Third Quarter Financial Results and Highlights

Joseph J. Hartnett, Interim President & CEO, commented, “We are pleased with this quarter’s operating performance and the continued progress we have made in our business development efforts and improvements in operations while we continue to explore a potential sale transaction.”

Joseph G. McCormack, Senior Vice President & CFO, commented, “Our year to date free cash flow was affected by an increase in accounts receivable principally derived from domestic sonobuoy production. This increase was as a result of the timing of production and payments on such receivables are anticipated in Q4. Additionally, we continue to work with our banks, and recently amended our credit facility, to provide for liquidity while we complete our exploration of a sale of the Company; if such a sale transaction does not occur, we believe we are well positioned to restructure, if necessary, our long-term debt appropriate for our business today.”

Consolidated:

  • Net sales of $93.9 million
  • Gross profit margin of 18.8%
  • SG&A expenses of $13.3 million or 14.1% of sales; adjusted SG&A of $12.8 million, 13.7% of sales
  • Earnings per share of $0.06, adjusted earnings per share of $0.22
  • Adjusted EBITDA of $6.0 million, a 6.4% adjusted EBITDA margin

MDS Segment:

  • Gross sales of $59.8 million
  • Gross profit margin of 12.0%
  • Operating income of $0.2 million
  • Adjusted EBITDA of $4.5 million, a 7.5% adjusted EBITDA margin
  • New program wins in Q3 have expected revenue of $19.1 million when fully ramped up into production
  • Trailing four quarter new program win revenue of $74.0 million, which continues to support our future organic growth
  • Backlog of $149 million

ECP Segment:

  • Gross sales of $37.2 million
  • Gross profit margin of 28.3%
  • Operating income of $6.4 million
  • Adjusted EBITDA of $8.2 million, a 22.0% adjusted EBITDA margin
  • Backlog of $157 million

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 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 10-K and Form 10-Q. 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