SIFCO Industries, Inc. (“SIFCO”) Announces
Third Quarter Fiscal 2015 Financial Results
Cleveland - SIFCO Industries, Inc. (NYSE MKT: SIF) today announced financial results for its third quarter of fiscal year 2015, which ended June 30, 2015.
Third Quarter
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| • | Net sales from continuing operations in third quarter fiscal 2015 decreased 7.4% to $28.7 million, compared to $31.0 million in third quarter fiscal 2014. |
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| • | Loss from continuing operations before income tax provision in third quarter fiscal 2015 was $1.5 million compared with income of $2.6 million in third quarter fiscal 2014. |
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| • | Loss from continuing operations for third quarter fiscal 2015 was $1.0 million, or $0.19 per diluted share, compared with income of $2.0 million, or $0.37 per diluted share, in third quarter fiscal 2014. |
First Nine Months
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| • | Net sales from continuing operations in the first nine months of fiscal 2015 decreased 15.3% to $73.4 million, compared to $86.7 million in the comparable period in fiscal 2014. |
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| • | Loss from continuing operations before income tax provision in the first nine months of fiscal 2015 was $4.6 million compared with income of $6.6 million in the comparable period in fiscal 2014. |
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| • | Loss from continuing operations in the first nine months of fiscal 2015 was $3.2 million, or $0.59 per diluted share, compared with income of $4.6 million, or $0.86 per diluted share, in the comparable period in fiscal 2014. |
Chairman and CEO Michael S. Lipscomb stated, “Our operations team has done an excellent job of addressing the challenges that the Company faced in the first half of the year. The Company’s results in Q3 reflect the highest quarterly sales and gross margin percentage year to date. If you adjust for the $1.8 million in transaction costs we booked in Q3 related to the C*Blade acquisition, the Company also realized its highest quarterly net income on a year to date basis. While we know there are continued challenges in our businesses, we’re confident that the improvements that we saw in Q3 will continue into Q4. We also look forward to the added benefit of having C*Blade as part of the SIFCO family.”
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.
The Company's Form 10-K for the year ended September 30, 2014 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.
Third Quarter Ended June 30
(Amounts in thousands, expect per share data)
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| | | | | | | | | | | | | | | |
| | Three Months Ended
June 30, | | Nine Months Ended
June 30, |
| | 2015 | | 2014 | | 2015 | | 2014 |
| Net sales | $ | 28,717 |
| | $ | 30,999 |
| | $ | 73,412 |
| | $ | 86,696 |
|
| Cost of goods sold | 23,750 |
| | 23,977 |
| | 61,742 |
| | 68,118 |
|
| Gross profit | 4,967 |
| | 7,022 |
| | 11,670 |
| | 18,578 |
|
| Selling, general and administrative expenses | 5,863 |
| | 3,927 |
| | 14,793 |
| | 10,512 |
|
| Amortization of intangible assets | 520 |
| | 545 |
| | 1,560 |
| | 1,635 |
|
| Loss (gain) on disposal of operating assets | 61 |
| | (1 | ) | | 63 |
| | (3 | ) |
| Operating income (loss) | (1,477 | ) | | 2,551 |
| | (4,746 | ) | | 6,434 |
|
| Interest income | (3 | ) | | (4 | ) | | (10 | ) | | (14 | ) |
| Interest expense | 83 |
| | 45 |
| | 191 |
| | 181 |
|
| Foreign currency exchange (gain) loss, net | 109 |
| | (2 | ) | | 52 |
| | 4 |
|
| Other income, net | (180 | ) | | (108 | ) | | (394 | ) | | (325 | ) |
| Income (loss) from continuing operations before income tax provision (benefit) | (1,486 | ) | | 2,620 |
| | (4,585 | ) | | 6,588 |
|
| Income tax provision (benefit) | (479 | ) | | 637 |
| | (1,373 | ) | | 1,940 |
|
| Income (loss) from continuing operations | (1,007 | ) | | 1,983 |
| | (3,212 | ) | | 4,648 |
|
| Income (loss) from discontinued operations, net of tax | — |
| | (76 | ) | | 736 |
| | (368 | ) |
| Net income (loss) | $ | (1,007 | ) | | $ | 1,907 |
| | $ | (2,476 | ) | | $ | 4,280 |
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| | | | | | | | |
| | | | | | | | |
| Income (loss) per share from continuing operations | | | | | | | |
| Basic | $ | (0.19 | ) | | $ | 0.37 |
| | $ | (0.59 | ) | | $ | 0.86 |
|
| Diluted | $ | (0.19 | ) | | $ | 0.37 |
| | $ | (0.59 | ) | | $ | 0.86 |
|
| | | | | | | | |
| Income (loss) per share from discontinued operations, net of tax | | | | | | | |
| Basic | $ | — |
| | $ | (0.01 | ) | | $ | 0.14 |
| | $ | (0.07 | ) |
| Diluted | $ | — |
| | $ | (0.01 | ) | | $ | 0.14 |
| | $ | (0.07 | ) |
| | | | | | | | |
| Net income (loss) per share | | | | | | | |
| Basic | $ | (0.19 | ) | | $ | 0.36 |
| | $ | (0.45 | ) | | $ | 0.79 |
|
| Diluted | $ | (0.19 | ) | | $ | 0.36 |
| | $ | (0.45 | ) | | $ | 0.79 |
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| | | | | | | | |
| Weighted-average number of common shares (basic) | 5,448 |
| | 5,413 |
| | 5,435 |
| | 5,399 |
|
| Weighted-average number of common shares (diluted) | 5,454 |
| | 5,431 |
| | 5,449 |
| | 5,420 |
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Contacts
SIFCO Industries, Inc.
Salvatore Incanno, 216-881-8600
www.sifco.com
