Sparton (SPA) Misses Q4 EPS by 3c

Sparton (NYSE: SPA) reported Q4 EPS of ($0.03). Revenue for the quarter came in at $100.47 million versus the consensus estimate of $82.76 million.

Joseph J. Hartnett, Interim President & CEO, commented, "We are pleased to report that we closed the 2018 fiscal year with a total backlog of $320 million, made up of $148 million in our MDS segment and $172 million in our ECP segment. Gross margins also closed strong with consolidated gross margins reported at 21.9% for the quarter and 21.2% for the year. While this has been a year of significant challenges on a number of fronts, the management team remains committed to taking the steps necessary to improve our long-term operating performance."

Joseph G. McCormack, Senior Vice President & CFO, commented, “During the 2018 fiscal year, we reduced our total adjusted SG&A to $49.1 million from $50.9 million in the prior fiscal year. While we generated free cash flow of $13.8 million in the fourth quarter of fiscal 2018, we experienced a net outflow of cash for the year of $8.3 million as a result of working capital needs. Working capital was impacted in the current fiscal year by supply shortages in the marketplace of certain electronic components, resulting in higher prices and higher inventory levels caused by accelerated component purchases, and increased accounts receivables principally related to the timing of payments from the U.S. Navy for shipments near year-end.”

Consolidated:

• Net sales of $100.5 million
• Gross profit margin of 21.9%
• SG&A expenses of $15.8 million or 15.7% of sales; adjusted SG&A of $12.4 million, 12.3% of sales
• Earnings per share of $(0.03), adjusted earnings per share of $0.32
• Adjusted EBITDA of $9.3 million, a 9.3% adjusted EBITDA margin

For earnings history and earnings-related data on Sparton (SPA) click here.

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