Sparton Corporation Reports Fiscal 2018 Second Quarter Results

SCHAUMBURG, Ill.–(BUSINESS WIRE)–Feb. 6, 2018– Sparton Corporation (NYSE:SPA) today announced results for the second quarter of fiscal year 2018 ended December 31, 2017.

Second Quarter Financial Results and Highlights

Joseph J. Hartnett, Interim President & CEO, commented, “The operational improvements we have made over the past two years continues to drive our performance through some very challenging times. Thanks to the collective effort of the entire organization, we were able to achieve significant improvements over our first quarter’s results in many important areas including sales, margins, cash flows, new program wins and borrowings under our credit facility.”

Joseph G. McCormack, Senior Vice President & CFO, commented, “During the second quarter of fiscal year 2018, the Company recorded additional income tax expense of $10.8 million as a result of the newly enacted Tax Cuts and Jobs Act of 2017 which was principally related to a write-down of the Company’s net deferred tax assets as a result of the reduction in the statutory income tax rate.”

Consolidated:

  • Net sales of $97.8 million
  • Gross profit margin of 20.9%
  • SG&A expenses of $14.1 million or 14.4% of sales; adjusted SG&A of $12.7 million, 13.0% of sales
  • Loss per share of $(0.92), adjusted earnings per share of $0.45
  • Adjusted EBITDA of $8.7 million, an 8.9% adjusted EBITDA margin

MDS Segment:

  • Gross sales of $58.4 million
  • Gross profit margin of 12.6%
  • Operating loss of $0.2 million
  • Adjusted EBITDA of $4.2 million, a 7.1% adjusted EBITDA margin
  • New program wins in Q2 have expected revenue of $20.0 million when fully ramped up into production
  • Trailing four quarter new program win revenue of $67.4 million, which continues to support our future organic growth

ECP Segment:

  • Gross sales of $42.5 million
  • Gross profit margin of 31.7%
  • Operating income of $8.9 million
  • Adjusted EBITDA of $10.5 million, a 24.6% 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 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