Reading time ( words)
Sparton Corp. has released the results for the fourth quarter of fiscal year 2018 ended July 1, 2018. Consolidated net sales reached $100.5 million, with a gross profit margin of 21.9%.
For the MDS segment, gross sales totaled $62.5 million, and gross profit margin was 11.3%. The segment posted an operating loss of $0.6 million. New program wins in the fourth quarter have expected revenue of $12.5 million when fully ramped up into production.
The ECP segment booked gross sales of $41.1 million, gross profit margin of 36.4%, and operating income of $8 million.
"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," said Joseph J. Hartnett, Interim President & CEO.
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."