 Exhibit 99.2 Fiscal 2012 Second Quarter Financial Results Conference Call February 8, 2012 |
 2 Safe Harbor Statement Safe Harbor Statement Certain statements herein constitute forward-looking statements within the meaning of the Securities Act of 1933, as amended and the Securities Exchange Act of 1934, as amended. When used herein, words such as “believe,” “expect,” “anticipate,” “project,” “plan,” “estimate,” “will” or “intend” and similar words or expressions as they relate to the Company or its management constitute forward-looking statements. These forward-looking statements reflect our current views with respect to future events and are based on currently available financial, economic and competitive data and our current business plans. The Company is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements whether as a result of such changes, new information, subsequent events or otherwise. Actual results could vary materially depending on risks and uncertainties that may affect our operations, markets, prices and other factors. Important factors that could cause actual results to differ materially from those forward-looking statements include those contained under the heading of risk factors and in the management’s discussion and analysis contained from time-to-time in the Company’s filings with the Securities and Exchange Commission. Adjusted operating income, adjusted net income and adjusted income per share – basic and diluted and adjusted earnings before interest, taxes, depreciation and amortization (”adjusted EBIDTA”) are non-GAAP financial measures that exclude or add the effect of certain gains and charges, including, for fiscal 2011, imputing taxes at a 36% effective rate. Sparton believes that the presentation of non- GAAP financial information provides useful supplemental information to management and investors regarding financial and business trends relating to the Company’s financial results. More detailed information, including period over period segment comparisons, non-GAAP reconciliation tables and the reasons management believes non-GAAP measures provide useful information to investors, is included in the Fiscal 2012 Second Quarter Financial Results press release and Form 10-Q dated February 7, 2012. |
 3 • 2 nd Quarter Highlights • Fiscal 2012 Second Quarter Results • 2 nd Quarter Segmented Operating Results • Liquidity & Capital Resources • Sonobuoy Contract Review • Siemens Dual Sourcing Impact • Outlook • Q & A Today’s Agenda Today’s Agenda |
 4 • Net • Complex Systems gross margin percentage increased to 10.4% of sales from 7.1% in the prior year quarter and 5.0% in the second quarter of fiscal 2010. • Selling and administrative expenses decreased from the prior year quarter. • Adjusted earnings per share increased by 80% compared to the prior year quarter. • Completed the integration of Byers Peak into the Frederick, Colorado facility. • Awarded seven new business programs from new and existing customers during quarter. • Adjusted EBITDA increased by 65%. • Cash and cash equivalents increased by $3.6 million. 2 2 nd Quarter Highlights Quarter Highlights sales increased by 20% from the same quarter last year (up 14%, net of acquisitions). |
 5 Consolidated Financial Results Consolidated Financial Results Fiscal 2012 Second Quarter Fiscal 2012 Second Quarter (Adjusted) 2011 2010 2011 2010 Net Sales $ 55,370 $ 46,331 $ 55,370 $ 46,331 $ 9,039 Gross Profit 8,736 7,547 8,736 7,547 1,189 15.8% 16.3% 15.8% 16.3% Selling and Administrative Expense 5,535 5,689 5,535 5,689 154 10.0% 12.3% 10.0% 12.3% Internal R&D Expense 218 155 218 155 (63) Amortization of intangible assets 110 110 110 110 - Restructuring and Impairment Charges (59) - - - - Other operationg expense, net 13 12 13 12 (1) Operating Income 2,919 1,581 2,860 1,581 1,279 5.3% 3.4% 5.2% 3.4% Income Before Provision For Income Tax 3,011 1,549 2,825 1,549 1,276 Provision For Income Taxes 1,069 114 1,002 558 (444) Net Income $ 1,942 $ 1,435 $ 1,823 $ 991 $ 832 3.5% 3.1% 3.3% 2.1% Income per Share, Basic and Diluted $ 0.19 $ 0.14 $ 0.18 $ 0.10 $ 0.08 ($ in 000’s, except per share) (adjusted removes certain gains and charges, including imputing taxes at 36% effective rate) Quarter Ended Dec 31, Quarter Ended Dec 31, YoY Variance (Reported) (Adjusted) |
 6 Operating Results Operating Results Medical Medical SEGMENT 2011 % of Total 2010 % Change 2011 % of Total 2010 % Change Medical $ 28,027 51% $ 25,650 9% $ 55,487 52% $ 44,695 24% Complex Systems 12,549 23% 10,512 19% 25,109 23% 22,840 10% DSS 18,476 33% 13,179 40% 33,763 32% 30,776 10% Eliminations (3,682) -7% (3,010) 22% (7,156) -7% (6,213) 15% Totals $ 55,370 100% $ 46,331 20% $ 107,203 100% $ 92,098 16% SEGMENT 2011 GP % 2010 GP % 2011 GP % 2010 GP % Medical $ 3,883 14% $ 3,790 15% $ 7,497 14% $ 5,657 13% Complex Systems 1,306 10% 749 7% 2,394 10% 1,656 7% DSS 3,547 19% 3,008 23% 7,189 21% 7,260 24% Totals $ 8,736 16% $ 7,547 16% $ 17,080 16% $ 14,573 16% ($ in 000’s) 3 Months Ended December 31, 3 Months Ended December 31, 6 Months Ended December 31, 6 Months Ended December 31, |
 7 Operating Results Operating Results Complex Systems Complex Systems SEGMENT 2011 % of Total 2010 % Change 2011 % of Total 2010 % Change Medical $ 28,027 51% $ 25,650 9% $ 55,487 52% $ 44,695 24% Complex Systems 12,549 23% 10,512 19% 25,109 23% 22,840 10% DSS 18,476 33% 13,179 40% 33,763 32% 30,776 10% Eliminations (3,682) -7% (3,010) 22% (7,156) -7% (6,213) 15% Totals $ 55,370 100% $ 46,331 20% $ 107,203 100% $ 92,098 16% SEGMENT 2011 GP % 2010 GP % 2011 GP % 2010 GP % Medical $ 3,883 14% $ 3,790 15% $ 7,497 14% $ 5,657 13% Complex Systems 1,306 10% 749 7% 2,394 10% 1,656 7% DSS 3,547 19% 3,008 23% 7,189 21% 7,260 24% Totals $ 8,736 16% $ 7,547 16% $ 17,080 16% $ 14,573 16% ($ in 000’s) 3 Months Ended December 31, 3 Months Ended December 31, 6 Months Ended December 31, 6 Months Ended December 31, |
 8 Operating Results Operating Results Defense & Security Systems Defense & Security Systems SEGMENT 2011 % of Total 2010 % Change 2011 % of Total 2010 % Change Medical $ 28,027 51% $ 25,650 9% $ 55,487 52% $ 44,695 24% Complex Systems 12,549 23% 10,512 19% 25,109 23% 22,840 10% DSS 18,476 33% 13,179 40% 33,763 32% 30,776 10% Eliminations (3,682) -7% (3,010) 22% (7,156) -7% (6,213) 15% Totals $ 55,370 100% $ 46,331 20% $ 107,203 100% $ 92,098 16% SEGMENT 2011 GP % 2010 GP % 2011 GP % 2010 GP % Medical $ 3,883 14% $ 3,790 15% $ 7,497 14% $ 5,657 13% Complex Systems 1,306 10% 749 7% 2,394 10% 1,656 7% DSS 3,547 19% 3,008 23% 7,189 21% 7,260 24% Totals $ 8,736 16% $ 7,547 16% $ 17,080 16% $ 14,573 16% ($ in 000’s) 3 Months Ended December 31, 3 Months Ended December 31, 6 Months Ended December 31, 6 Months Ended December 31, |
 9 Liquidity & Capital Resources Liquidity & Capital Resources 25,588 22,989 1,917 1,796 1,735 0.36 0.42 0.03 0.02 0.02 0 0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 0.45 0 25,000 50,000 Jun-08 Jun-09 Jun-10 June-11 Dec-11 ($ in '000) Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Cash and equivalents 29,941 26,119 24,550 26,984 30,610 LOC Availability 17,389 17,497 17,541 17,533 17,290 Total 47,330 43,616 42,091 44,517 47,900 ($ in '000) Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Credit Revolver - - - - - IRB (Ohio) 1,856 1,826 1,796 1,766 1,735 Total 1,856 1,826 1,796 1,766 1,735 ($ in '000) Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Net Inventory 35,076 40,282 38,752 41,816 38,545 Cash Availability Debt Inventory |
 10 Sonobuoy Contract Review Sonobuoy Contract Review GFY2009 GFY2010 GFY2011 GFY2012 ADAR 19,295 $ 14,405 $ 10,046 $ Proj March Award Q125 - - - Proj March Award Q36 - 2,143 1,885 2,135 Q53 20,952 16,660 21,832 18,068 Q62 13,174 10,048 7,812 4,721 Total 53,421 $ 43,256 $ 41,575 $ 24,923 $ SFY2009 SFY2010 SFY2011 SFY2012 YTD U.S. Navy 24,618 $ 35,975 $ 52,632 $ 14,243 $ Foreign 10,648 13,853 4,843 14,174 Total 35,266 $ 49,828 $ 57,475 $ 28,417 $ GFY = Government Fiscal Year; SFY = Sparton Fiscal Year ($ in thousands) U.S. Navy Sonobuoy Contracts Sonobuoy Revenue |
 11 Siemens Dual Sourcing Impact Siemens Dual Sourcing Impact 2nd Half FY2011 1st Half FY2012 Variance Siemens Dual Sourced Programs 15,472 $ 7,524 $ (7,948) $ Other Programs 4,873 4,673 (200) Siemens Total 20,345 12,197 (8,148) Medical Other 32,989 43,290 10,301 Medical Total 53,334 $ 55,487 $ 2,153 $ ($ in thousands) |
 12 • Focus on sustained profitability – Continue margin improvements in Complex Systems – Backfill Medical revenue losses with new business – Offset reduced U.S. Navy sonobuoy contracts with foreign sonobuoy sales – Continue improvements in operating performance through lean and quality efforts • Implementation of the strategic growth plan – Continue refining the new business development process to increase the new business opportunity funnel and win more new business – Continue to target the right trade show venues – Continue to invest in internal R&D for new product introductions – Challenge the technical staff to develop new & innovative ideas – Continue to look at complementary and compatible acquisitions • Continue to participate in upcoming trade shows and investor relations events Fiscal 2012 Outlook Fiscal 2012 Outlook |
 13 Q & A |