SIFCO Industries, Inc. (“SIFCO”) Announces Second Quarter Fiscal 2021 Financial Results

Rhea-AI Summary

SIFCO Industries, Inc. (SIF) reported a 18.6% decline in net sales for Q2 fiscal 2021, totaling $24.9 million, down from $30.5 million in Q2 fiscal 2020. The net loss was $1.5 million or ($0.26) per diluted share, contrasting with a net income of $3.3 million or $0.57 per diluted share last year. Year-to-date sales also decreased 12.0% to $49.9 million. Despite challenges posed by the COVID-19 pandemic, the company achieved a $4.6 million reduction in debt. CEO Peter W. Knapper expressed optimism about the recovery of commercial air travel.

Positive

• Achieved a $4.6 million reduction in debt since the beginning of the fiscal year.

Negative

• Q2 net sales decreased by 18.6% to $24.9 million.
• Q2 net loss of $1.5 million compared to net income of $3.3 million last year.
• Year-to-date sales down 12.0% to $49.9 million.
• Q2 EBITDA fell to $0.7 million from $5.4 million a year earlier.

SIFCO Industries, Inc. (NYSE American: SIF) today announced financial results for its second quarter of fiscal 2021, which ended March 31, 2021.

Second Quarter Results

• Net sales in the second quarter of fiscal 2021 decreased 18.6% to $24.9 million, compared with $30.5 million for the same period in fiscal 2020.
• Net loss for the second quarter of fiscal 2021 was $1.5 million, or ($0.26) per diluted share, compared with net income of $3.3 million, or $0.57 per diluted share, in the second quarter of fiscal 2020.
• EBITDA was $0.7 million in the second quarter of fiscal 2021, compared with $5.4 million in the second quarter of fiscal 2020.
• Adjusted EBITDA in the second quarter of fiscal 2021 was $1.2 million, compared with Adjusted EBITDA of $4.5 million in the second quarter of fiscal 2020.

Year to Date Results

• Net sales in the first six months of fiscal 2021 decreased 12.0% to $49.9 million, compared with $56.7 million for the same period in fiscal 2020.
• Net income for the first six months of fiscal 2021 was $1.5 million, or $0.25 per diluted share, compared with net income of $1.9 million, or $0.33 per diluted share, in the first six months of fiscal 2020.
• EBITDA was $4.8 million in the first six months of fiscal 2021, compared with $6.0 million in the first six months of fiscal 2020.
• Adjusted EBITDA in the first six months of fiscal 2021 was $3.1 million, compared with Adjusted EBITDA of $5.2 million in the first six months of fiscal 2020.

Other Highlights

CEO Peter W. Knapper stated, "While our results for the quarter reflect the pressures on the A&E markets caused by the COVID-19 pandemic, we are all thankful that the impacts of the pandemic are finally showing signs of receding in many places in the world and we are excited that commercial air travel is showing signs of recovery. We continue to work with our customers as we navigate the impacts on our markets together. Our focus on controlling costs and managing working capital contributed to a $4.6 million reduction in debt since the beginning of the fiscal year and we continue to actively manage our costs in light of the continued uncertainty around the shape and duration of the recovery in the industries we serve.”

Use of Non-GAAP Financial Measures

The Company uses certain non-GAAP measures in this release. EBITDA and Adjusted EBITDA are non-GAAP financial measures and are intended to serve as supplements to results provided in accordance with accounting principles generally accepted in the United States. SIFCO Industries, Inc. believes that such information provides an additional measurement and consistent historical comparison of the Company’s performance. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures is available in this news release.

Forward-Looking Language

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, concerns with or threats of, or the consequences of, pandemics, contagious diseases or health epidemics, including COVID-19, competition and other uncertainties the Company, its customers, and the industry in which they operate have experienced and continue to experience, detailed from time to time in the Company’s Securities and Exchange Commission filings.

The Company's Annual Report on Form 10-K for the year ended September 30, 2020 and other reports filed with the Securities & Exchange Commission can be accessed through the Company's website: www.sifco.com, or on the Securities and Exchange Commission's website: www.sec.gov.

SIFCO Industries, Inc. is engaged in the production of forgings and machined components primarily for the aerospace and energy markets. The processes and services include forging, heat-treating, coating, and machining.

Second Quarter ended March 31, (Amounts in thousands, except per share data) (Unaudited)
	Three Months Ended March 31,										Six Months Ended March 31,
	2021					2020					2021					2020
Net sales	$	24,866				$	30,537				$	49,944				$	56,744
Cost of goods sold	22,123					24,260					43,278					47,143
Gross profit	2,743					6,277					6,666					9,601
Selling, general and administrative expenses	3,596					3,321					7,423					7,529
Amortization of intangible assets	248					408					517					817
Loss on disposal of operating assets	—					41					—					41
Gain on insurance recoveries	—					(1,000		)			(2,495		)			(1,000		)
Operating income (loss)	(1,101		)			3,507					1,221					2,214
Interest expense	169					262					335					513
Foreign currency exchange loss (income), net	14					(1		)			21					—			<

FAQ

What were SIFCO Industries' earnings for Q2 fiscal 2021?

SIFCO Industries reported a net loss of $1.5 million or ($0.26) per diluted share for Q2 fiscal 2021.

How did SIFCO's sales perform in Q2 fiscal 2021?

Net sales decreased by 18.6% to $24.9 million in Q2 fiscal 2021 compared to $30.5 million in Q2 fiscal 2020.

What was SIFCO's adjusted EBITDA for Q2 fiscal 2021?

Adjusted EBITDA for Q2 fiscal 2021 was $1.2 million, down from $4.5 million for the same period in fiscal 2020.

What are the year-to-date sales figures for SIFCO Industries?

For the first six months of fiscal 2021, SIFCO reported net sales of $49.9 million, a decrease of 12.0% from $56.7 million in the same period last year.