SIFCO Industries, Inc. ("SIFCO") Announces Second Quarter Fiscal 2018 Financial Results
Cleveland - SIFCO Industries, Inc. (NYSE American: SIF) today announced financial results for its second quarter of fiscal 2018, which ended March 31, 2018.
Second Quarter 2018 Highlights
- Total debt was reduced by $3.0 million.
- Backlog as of March 31, 2018 was $99.8 million. Our delivery requirements for the balance of the fiscal year total $64.3 million. Overall backlog is the highest of the previous three years.
- Significant sequential quarter-over-quarter improvement in pre-tax results after one-time non-GAAP measures are considered. See "Use of Non-GAAP Financial Measures" section and "Supplemental Data" section within release for important information regarding these measures.
CEO Peter W. Knapper stated, "Our focus continues to be on delivering quality products, on time to our customers and growing our company. The Aerospace market was strong for the quarter while we were unfavorably impacted by the softness in our served Energy market. Accounting for one-time items, we see our rationalization efforts discussed previously demonstrate significant improvement quarter over quarter. Our cash management performed well, reducing debt by $3.0 million in the quarter."
Results for the Second Quarter
- Net sales in the second quarter of fiscal 2018 decreased 11.2% to $27.8 million, compared with $31.3 million in the second quarter of fiscal 2017.
- Net loss for the second quarter of fiscal 2018 was $2.0 million, or ($0.37) per diluted share, compared with a loss of $1.7 million or ($0.30) per diluted share, in the second quarter of fiscal 2017.
- EBITDA was $0.5 million in the second quarter of fiscal 2018 compared with $1.2 million in the second quarter of fiscal 2017.
- Adjusted EBITDA in the second quarter of fiscal 2018 was $0.5 million compared with Adjusted EBITDA of $2.4 million in the second quarter of fiscal 2017.
Results for the Year to Date
- Net sales in the first six months of fiscal 2018 decreased 17.1% to $52.0 million, compared with $62.8 million in fiscal 2017.
- Net loss for the first six months of fiscal 2018 was $2.9 million, or $(0.53) per diluted share, compared with net loss of $4.3 million, or $(0.78) per diluted share, in the first six months of fiscal 2017.
- EBITDA was $2.0 million in the first six months of fiscal 2018 compared with $2.1 million in the first six months of fiscal 2017.
- Adjusted EBITDA in the first six months of fiscal 2018 was $0.4 million with Adjusted EBITDA of $4.4 million in the first six months of fiscal 2017.
Use of Non-GAAP Financial Measures
The Company uses certain non-GAAP measures in this release. EBITDA, Adjusted EBITDA and the presentation of measures adjusted for certain items that we do not consider part of on-going operations are non-GAAP financial measures and are intended to serve as supplements to results provided in accordance with accounting principles generally accepted in the United States. Items excluded in the presentation of the non-GAAP financials are discussed in the "Supplemental Data" of this filing. 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 under "Non-GAAP Financial Measures" 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 (including backlog), 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.
The Company's Form 10-K for the year ended September 30, 2017 can be accessed through its website: www.sifco.com, or on the Securities and Exchange Commission's website: www.sec.gov.
SIFCO Industries, Inc. is engaged in the production of forgings and machined components primarily for the aerospace and energy markets. The processes and services include forging, heat-treating, coating, and machining.Press_Release_Q22018.pdf
SIFCO Industries, Inc.
Thomas R. Kubera, 216-881-8600