Sparton Reports Positive Fiscal 2017 Q4 Results

Reading time ( words)

Sparton Corp. has announced consolidated net sales of $104.4 million for the fourth quarter ended July 2, 2017. Gross profit margin was 20.9%, an increase of 320 bps from prior quarter. Earnings per share was $0.17, while adjusted earnings per share was $0.38.

"We are pleased to report our organic growth produced over $23 million in new programs wins for the quarter. A clear indication of the progress we are making in building a business model that supports profitable revenue growth through business development. Additionally, while a significant amount of time and effort was directed toward arriving at a merger agreement with Ultra Electronics Holdings plc on July 7, 2017, we were able to focus on delivering improved operating performance for the quarter while exceeding fourth quarter guidance on revenue and gross margins,” says Joseph J. Hartnett, interim president and CEO.

Joseph G. McCormack, Sr. VP and CFO, comments, "We are pleased that the continued improvement in operating performance across both segments allowed us to significantly pay down our debt during the fourth quarter of fiscal 2017 and reduce our debt leverage below 3.0x EBITDA at year-end."

MDS Segment:

  • Gross sales of $67.0 million
  • Gross profit margin of 13.6%, an increase of 260 bps from the prior quarter
  • Operating income of $1.6 million
  • Adjusted EBITDA of $6.4 million, a 9.6% adjusted EBITDA margin
  • New program wins in Q4 have expected revenue of $23.2 million when fully ramped up into production
  • Trailing four quarter new program win revenue of $62.4 million, which continues to support our future organic growth

ECP Segment:

  • Gross sales of $40.3 million
  • Gross profit margin of 31.5%, an increase of 390 bps from the prior quarter
  • Operating income of $7.8 million
  • Adjusted EBITDA of $9.9 million, a 24.5% adjusted EBITDA margin

About Sparton Corporation

Sparton Corporation (NYSE:SPA), now in its 118th year, is a provider of complex and sophisticated electromechanical devices with capabilities that include concept development, industrial design, design and manufacturing engineering, production, distribution, field service, and refurbishment. The primary markets served are Medical & Biotechnology, Military & Aerospace, and Industrial & Commercial. Headquartered in Schaumburg, IL, Sparton currently has thirteen manufacturing locations and engineering design centers worldwide.


Suggested Items

Tips & Tricks: Generating Stencil Tooling

12/13/2017 | Ken Horky, Peterson Manufacturing
Many engineers are leaving the editing up to the stencil fabricator these days. From the outside, this may appear as a time saver for process engineers, but considering how many stencil redos have been required and how many processes that have run 'sort of OK,' there's a tremendous amount of scrap and rework that could be saved from just a little more attention paid to stencil tooling.

HDI Considerations: Interview with ACDi's Garret Maxson

11/10/2017 | Stephen Las Marias, I-Connect007
Garret Maxson, manager of engineering services at American Computer Development Inc. (ACDi), discusses the PCB assembly challenges when dealing with high-density interconnect (HDI) boards, parameters to consider, and strategies to help facilitate a smooth assembly process when using HDI boards.

Should I Involve My EMS Partner in DFM?

10/26/2017 | Neil Sharp, JJS Manufacturing
OEMs are seeking the support of EMS providers with more than just manufacturing, but with design elements too. One of the main design services EMS providers will be likely to offer is design for manufacture (DFM). This article highlights why engaging your EMS partner in DFM is worthwhile, and will be valuable in securing the longevity of your product.

Copyright © 2017 I-Connect007. All rights reserved.