SIFCO Industries, Inc. (“SIFCO”) Announces Third Quarter Fiscal 2017 Financial Results
Cleveland - SIFCO Industries, Inc. (NYSE MKT: SIF) today announced financial results for its third quarter of fiscal 2017, which ended June 30, 2017.
• Net sales from operations in the third quarter of fiscal 2017 decreased 2.7% to $30.2 million, compared with $31.0 million in the third quarter of fiscal 2016.
• Net loss for the third quarter of fiscal 2017 was $6.2 million, or ($1.13) per diluted share, compared with a loss of $1.0 million or ($0.19) per diluted share, in the third quarter of fiscal 2016.
• Adjusted EBITDA in the third quarter of fiscal 2017 was $2.1 million compared with Adjusted EBITDA of $1.3 million in the third quarter of fiscal 2016.
• Cash flow from operating activities for the third quarter of fiscal 2017 was $2.4 million, compared with cash flow used for operating activities of ($0.4) million in the third quarter of fiscal 2016.
First Nine Months
• Net sales from operations in the first nine months of fiscal 2017 increased 6.5% to $92.9 million, compared with $87.2 million in the first nine months of fiscal 2016.
• Net loss for the first nine months of fiscal 2017 was $10.5 million, or ($1.91), per diluted share, compared with a loss of $3.9 million, or ($0.72) per diluted share, in the first nine months of fiscal 2016.
• Adjusted EBITDA in the first nine months of fiscal 2017 was $6.4 million compared with Adjusted EBITDA of $2.6 million in the first nine months of fiscal 2016.
• Cash flow from operating activities for the nine months ended of fiscal 2017 was $7.7 million, compared with cash flow from operating activities of $11.4 million in the nine months of fiscal 2016.
President and CEO Peter W. Knapper stated, "In the third quarter, we've continued to execute on our plans to turn around our business. The new sales organization structure implemented earlier this year continues to find new opportunities for our business and we will continue to focus on serving our customers, associates, and shareholders. We previously announced the decision to close and consolidate our Alliance, Ohio location to our Cleveland, Ohio location in order to improve utilization and reduce fixed costs while maintaining available capacity to be able to handle significant growth. As a result of this decision, we incurred a $4.4 million non-cash asset impairment charge. In addition we've made the decision to sell the property we own in Ireland, identifying this asset as held for sale. We expect to close this transaction in the first quarter of fiscal 2018 and will use the proceeds to repay debt in accordance with our amended credit agreement."
The Company's Form 10-K for the year ended September 30, 2016 can be accessed through its website: www.sifco.com, or on the Securities and Exchange Commission's website: www.sec.gov.
The Company is engaged in the production of forgings and machined components primarily in the Aerospace and Energy markets. The processes and services and services include heat-treating and machining. The Company operates under one segment.
Use of Non-GAAP Financial Measures
The Company uses certain non-GAAP measures in this release. Adjusted EBITDA is a non-GAAP financial measure and is intended to serve as a supplement to results provided in accordance with accounting principles generally accepted in the United States. SIFCO Industries, Inc. believes that such information provides an additional measurement and consistent historical comparison of the Company’s performance. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures is available in this news release.
Certain statements contained in this press release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to financial results and plans for future business development activities, and are thus prospective. Such forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, economic conditions, competition and other uncertainties detailed from time to time in the Company's Securities and Exchange Commission filings.