SIFCO Industries, Inc. (“SIFCO”) Announces Third Quarter Fiscal 2024 Financial Results
SIFCO Industries, Inc. (NYSE American: SIF) reported strong financial results for its third quarter of fiscal 2024, ending June 30, 2024. Net sales increased 33.9% to $29.3 million, compared to $21.9 million in the same period last year. The company achieved a net income of $0.1 million, or $0.01 per diluted share, a significant improvement from the net loss of $(0.6) million in Q3 2023. EBITDA more than doubled to $2.7 million, while Adjusted EBITDA reached $3.4 million.
Year-to-date results also showed improvement, with net sales up 23.2% to $76.9 million for the first nine months of fiscal 2024. Despite a net loss of $(4.9) million, this represents an improvement from the $(5.6) million loss in the same period last year. The company's backlog grew to $139.2 million, indicating strong future demand.
SIFCO Industries, Inc. (NYSE American: SIF) ha riportato risultati finanziari solidi per il terzo trimestre dell'anno fiscale 2024, conclusosi il 30 giugno 2024. Le vendite nette sono aumentate del 33,9% raggiungendo i 29,3 milioni di dollari, rispetto ai 21,9 milioni di dollari dello stesso periodo dell'anno scorso. L'azienda ha registrato un utile netto di 0,1 milioni di dollari, ovvero 0,01 dollari per azione diluita, un notevole miglioramento rispetto alla perdita netta di $(0,6) milioni nel Q3 2023. L'EBITDA è più che raddoppiato a 2,7 milioni di dollari, mentre l'EBITDA rettificato ha raggiunto i 3,4 milioni di dollari.
I risultati da inizio anno hanno mostrato anch'essi miglioramenti, con vendite nette in crescita del 23,2% a 76,9 milioni di dollari per i primi nove mesi dell'anno fiscale 2024. Nonostante una perdita netta di $(4,9) milioni, questo rappresenta un miglioramento rispetto alla perdita di $(5,6) milioni dello stesso periodo dell'anno scorso. Il portafoglio ordini dell'azienda è cresciuto a 139,2 milioni di dollari, indicando una forte domanda futura.
SIFCO Industries, Inc. (NYSE American: SIF) reportó resultados financieros sólidos para su tercer trimestre del año fiscal 2024, que finalizó el 30 de junio de 2024. Las ventas netas aumentaron un 33,9% alcanzando los 29,3 millones de dólares, en comparación con los 21,9 millones de dólares del mismo período del año pasado. La empresa logró un ingreso neto de 0,1 millones de dólares, o 0,01 dólares por acción diluida, una mejora significativa respecto a la pérdida neta de $(0,6) millones en el Q3 2023. El EBITDA se más que duplicó a 2,7 millones de dólares, mientras que el EBITDA ajustado alcanzó los 3,4 millones de dólares.
Los resultados acumulados hasta la fecha también mostraron mejoras, con ventas netas en aumento del 23,2% a 76,9 millones de dólares durante los primeros nueve meses del año fiscal 2024. A pesar de una pérdida neta de $(4,9) millones, esto representa una mejora respecto a la pérdida de $(5,6) millones en el mismo periodo del año pasado. El backlog de la empresa creció a 139,2 millones de dólares, lo que indica una fuerte demanda futura.
SIFCO Industries, Inc. (NYSE American: SIF)는 2024 회계연도 3분기(2024년 6월 30일 종료)에 대한 강력한 재무 결과를 보고했습니다. 순매출은 33.9% 증가하여 2,930만 달러에 달했으며, 이는 지난해 같은 기간의 2,190만 달러와 비교됩니다. 회사는 순이익 10만 달러, 즉 희석주당 0.01 달러를 기록했으며, 이는 2023년 3분기 $(60만) 달러의 순손실에서 상당히 개선된 수치입니다. EBITDA는 두 배 이상 증가하여 270만 달러에 도달했으며, 조정된 EBITDA는 340만 달러에 이르렀습니다.
연간 누적 결과 역시 개선을 보였으며, 순매출이 23.2% 증가하여 회계연도 2024의 처음 9개월 동안 7,690만 달러에 달했습니다. $(49만) 달러의 순손실에도 불구하고, 이는 지난해 같은 기간의 $(56만) 달러 손실에 비해 개선된 결과입니다. 회사의 주문잔고는 1억 3,920만 달러로 증가하여 강력한 미래 수요를 나타냅니다.
SIFCO Industries, Inc. (NYSE American: SIF) a rapporté des résultats financiers solides pour son troisième trimestre de l'année fiscale 2024, se terminant le 30 juin 2024. Les ventes nettes ont augmenté de 33,9% pour atteindre 29,3 millions de dollars, contre 21,9 millions de dollars à la même période l'année dernière. L'entreprise a réalisé un bénéfice net de 0,1 million de dollars, soit 0,01 dollar par action diluée, une amélioration significative par rapport à la perte nette de $(0,6) million au T3 2023. L'EBITDA a plus que doublé pour atteindre 2,7 millions de dollars, tandis que l'EBITDA ajusté a atteint 3,4 millions de dollars.
Les résultats cumulés depuis le début de l'année montrent également une amélioration, avec les ventes nettes en hausse de 23,2% à 76,9 millions de dollars pour les neuf premiers mois de l'année fiscale 2024. Malgré une perte nette de $(4,9) millions, cela représente une amélioration par rapport à la perte de $(5,6) millions de la même période l'année dernière. Le portefeuille de commandes de l'entreprise a augmenté à 139,2 millions de dollars, indiquant une forte demande future.
SIFCO Industries, Inc. (NYSE American: SIF) hat für das dritte Quartal des Geschäftsjahres 2024, das am 30. Juni 2024 endete, starke Finanzergebnisse gemeldet. Der Nettoumsatz stieg um 33,9% auf 29,3 Millionen USD, verglichen mit 21,9 Millionen USD im selben Zeitraum des Vorjahres. Das Unternehmen erzielte einen Nettoertrag von 0,1 Millionen USD, oder 0,01 USD pro verwässerter Aktie, eine bedeutende Verbesserung im Vergleich zu einem Nettoverlust von $(0,6) Millionen im Q3 2023. EBITDA hat sich mehr als verdoppelt auf 2,7 Millionen USD, während das bereinigte EBITDA 3,4 Millionen USD erreichte.
Die Ergebnisse seit Jahresbeginn zeigen ebenfalls Verbesserungen, wobei der Nettoumsatz um 23,2% auf 76,9 Millionen USD für die ersten neun Monate des Geschäftsjahres 2024 gestiegen ist. Trotz eines Nettoverlusts von $(4,9) Millionen stellt dies eine Verbesserung im Vergleich zum Verlust von $(5,6) Millionen im gleichen Zeitraum des Vorjahres dar. Der Auftragsbestand des Unternehmens ist auf 139,2 Millionen USD gewachsen, was auf eine starke zukünftige Nachfrage hindeutet.
- Net sales increased 33.9% year-over-year in Q3 2024
- Achieved net income of $0.1 million in Q3 2024, compared to a net loss in Q3 2023
- EBITDA more than doubled to $2.7 million in Q3 2024
- Adjusted EBITDA improved to $3.4 million in Q3 2024
- Backlog grew to $139.2 million, indicating strong future demand
- Net loss of $(4.9) million for the first nine months of fiscal 2024
- Year-to-date loss per diluted share of $(0.82)
Insights
SIFCO's Q3 FY2024 results show significant improvement. Net sales increased by
SIFCO's performance reflects positively on the broader industrial manufacturing sector. The
SIFCO's turnaround strategy appears to be gaining traction. The company has successfully increased sales and improved profitability in Q3. The focus now should be on sustaining this momentum and addressing the factors contributing to the year-to-date loss. The growing backlog is a positive sign, but efficient execution will be key to converting it into profitable sales. Management should prioritize cost control and operational efficiency to ensure that increased revenue translates to consistent bottom-line growth. Strategic initiatives to diversify the customer base and expand into high-growth sectors could further strengthen SIFCO's market position.
Third Quarter Results
-
Net sales in the third quarter of fiscal 2024 increased
33.9% to , compared with$29.3 million for the same period in fiscal 2023.$21.9 million -
Net income for the third quarter of fiscal 2024 was
, or$0.1 million per diluted share, compared with net loss of$0.01 , or$(0.6) million per diluted share, in the third quarter of fiscal 2023.$(0.11) -
EBITDA was
in the third quarter of fiscal 2024, compared with$2.7 million in the third quarter of fiscal 2023.$1.3 million -
Adjusted EBITDA in the third quarter of fiscal 2024 was
, compared with Adjusted EBITDA of$3.4 million in the third quarter of fiscal 2023.$1.9 million
Year to Date Results
-
Net sales in the first nine months of fiscal 2024 increased
23.2% to , compared with$76.9 million for the same period in fiscal 2023.$62.4 million -
Net loss for the first nine months of fiscal 2024 was
, or$(4.9) million per diluted share, compared with net loss of$(0.82) , or$(5.6) million per diluted share, in the first nine month of fiscal 2023.$(0.94) -
EBITDA was
in the first nine month of fiscal 2024, compared with$2.3 million in the first nine months of fiscal 2023.$0.3 million -
Adjusted EBITDA in the first nine month of fiscal 2024 was
, compared with Adjusted EBITDA of$3.9 million in the first nine months of fiscal 2023.$1.8 million
Other Highlights
CEO George Scherff stated, “We are pleased with our continued progress this past quarter as revenues rose
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
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, 2023 and other reports filed with the Securities and 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.
Third Quarter ended June 30, (Amounts in thousands, except per share data) (Unaudited) |
|||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net sales |
$ |
29,259 |
|
|
$ |
21,853 |
|
|
$ |
76,854 |
|
|
$ |
62,394 |
|
Cost of goods sold |
|
24,725 |
|
|
|
18,375 |
|
|
|
68,857 |
|
|
|
55,935 |
|
Gross profit |
|
4,534 |
|
|
|
3,478 |
|
|
|
7,997 |
|
|
|
6,459 |
|
Selling, general and administrative expenses |
|
3,150 |
|
|
|
3,388 |
|
|
|
9,939 |
|
|
|
10,517 |
|
Amortization of intangible assets |
|
40 |
|
|
|
63 |
|
|
|
121 |
|
|
|
187 |
|
(Gain) loss on disposal of operating assets |
|
— |
|
|
|
(3 |
) |
|
|
3 |
|
|
|
— |
|
Operating profit (loss) |
|
1,344 |
|
|
|
30 |
|
|
|
(2,066 |
) |
|
|
(4,245 |
) |
Interest expense, net |
|
1,078 |
|
|
|
305 |
|
|
|
2,471 |
|
|
|
919 |
|
Foreign currency exchange (gain) loss, net |
|
(1 |
) |
|
|
1 |
|
|
|
6 |
|
|
|
11 |
|
Other expense, net |
|
139 |
|
|
|
323 |
|
|
|
244 |
|
|
|
287 |
|
Income (loss) before income tax expense |
|
128 |
|
|
|
(599 |
) |
|
|
(4,787 |
) |
|
|
(5,462 |
) |
Income tax expense |
|
56 |
|
|
|
35 |
|
|
|
153 |
|
|
|
128 |
|
Net income (loss) |
$ |
72 |
|
|
$ |
(634 |
) |
|
$ |
(4,940 |
) |
|
$ |
(5,590 |
) |
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per share |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.01 |
|
|
$ |
(0.11 |
) |
|
$ |
(0.82 |
) |
|
$ |
(0.94 |
) |
Diluted |
$ |
0.01 |
|
|
$ |
(0.11 |
) |
|
$ |
(0.82 |
) |
|
$ |
(0.94 |
) |
|
|
|
|
|
|
|
|
||||||||
Weighted-average number of common shares (basic) |
|
6,009 |
|
|
|
5,940 |
|
|
|
5,991 |
|
|
|
5,925 |
|
Weighted-average number of common shares (diluted) |
|
6,105 |
|
|
|
5,940 |
|
|
|
5,991 |
|
|
|
5,925 |
|
Consolidated Condensed Balance Sheets (Amounts in thousands, except per share data) (Unaudited) |
|||||||
|
June 30,
|
|
September 30,
|
||||
|
(unaudited) |
|
|
||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
1,696 |
|
|
$ |
368 |
|
Short-term investments |
|
1,713 |
|
|
|
— |
|
Receivables, net of allowance for credit losses of |
|
26,831 |
|
|
|
20,196 |
|
Contract assets |
|
10,055 |
|
|
|
10,091 |
|
Inventories, net |
|
13,423 |
|
|
|
8,853 |
|
Refundable income taxes |
|
84 |
|
|
|
84 |
|
Prepaid expenses and other current assets |
|
1,200 |
|
|
|
1,882 |
|
Total current assets |
|
55,002 |
|
|
|
41,474 |
|
Property, plant and equipment, net |
|
33,914 |
|
|
|
36,287 |
|
Operating lease right-of-use assets, net |
|
13,673 |
|
|
|
14,380 |
|
Intangible assets, net |
|
161 |
|
|
|
278 |
|
Goodwill |
|
3,493 |
|
|
|
3,493 |
|
Other assets |
|
88 |
|
|
|
81 |
|
Total assets |
$ |
106,331 |
|
|
$ |
95,993 |
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Current maturities of long-term debt |
$ |
6,116 |
|
|
$ |
3,820 |
|
Promissory note - related party |
|
3,366 |
|
|
|
— |
|
Revolver |
|
19,693 |
|
|
|
16,289 |
|
Short-term operating lease liabilities |
|
906 |
|
|
|
869 |
|
Accounts payable |
|
14,965 |
|
|
|
13,497 |
|
Contract liabilities |
|
3,880 |
|
|
|
1,150 |
|
Accrued liabilities (Related party is |
|
6,506 |
|
|
|
5,327 |
|
Total current liabilities |
|
55,432 |
|
|
|
40,952 |
|
Long-term debt, net of current maturities, net of unamortized debt issuance costs |
|
3,620 |
|
|
|
2,457 |
|
Long-term operating lease liabilities, net of short-term |
|
13,333 |
|
|
|
14,020 |
|
Deferred income taxes, net |
|
— |
|
|
|
142 |
|
Pension liability |
|
3,469 |
|
|
|
3,417 |
|
Other long-term liabilities |
|
651 |
|
|
|
670 |
|
Shareholders’ equity: |
|
|
|
||||
Serial preferred shares, no par value, 1,000 shares authorized; 0 shares issued and outstanding at June 30, 2024 and September 30, 2023 |
|
— |
|
|
|
— |
|
Common shares, par value |
|
6,180 |
|
|
|
6,105 |
|
Additional paid-in capital |
|
11,745 |
|
|
|
11,626 |
|
Retained earnings |
|
18,324 |
|
|
|
23,264 |
|
Accumulated other comprehensive loss |
|
(6,423 |
) |
|
|
(6,660 |
) |
Total shareholders’ equity |
|
29,826 |
|
|
|
34,335 |
|
Total liabilities and shareholders’ equity |
$ |
106,331 |
|
|
$ |
95,993 |
|
Non-GAAP Financial Measures
Presented below is certain financial information based on the Company's EBITDA and Adjusted EBITDA. References to “EBITDA” mean earnings (losses) from continuing operations before interest, taxes, depreciation and amortization, and references to “Adjusted EBITDA” mean EBITDA plus, as applicable for each relevant period, certain adjustments as set forth in the reconciliations of net income to EBITDA and Adjusted EBITDA.
Neither EBITDA nor Adjusted EBITDA is a measurement of financial performance under generally accepted accounting principles in
- Neither EBITDA nor Adjusted EBITDA reflects the interest expense, or the cash requirements necessary to service interest payments on indebtedness;
- Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and neither EBITDA nor Adjusted EBITDA reflects any cash requirements for such replacements;
- The omission of the amortization expense associated with the Company’s intangible assets further limits the usefulness of EBITDA and Adjusted EBITDA; and
- Neither EBITDA nor Adjusted EBITDA includes the payment of taxes, which is a necessary element of operations.
Because of these limitations, EBITDA and Adjusted EBITDA should not be considered as measures of discretionary cash available to the Company to invest in the growth of its businesses. Management compensates for these limitations by not viewing EBITDA or Adjusted EBITDA in isolation and specifically by using other GAAP measures, such as net income (loss), net sales, and operating income (loss), to measure operating performance. Neither EBITDA nor Adjusted EBITDA is a measurement of financial performance under GAAP, and neither should be considered as an alternative to net loss or cash flow from operations determined in accordance with GAAP. The Company’s calculation of EBITDA and Adjusted EBITDA may not be comparable to the calculation of similarly titled measures reported by other companies.
The following table sets forth a reconciliation of net loss to EBITDA and Adjusted EBITDA:
Dollars in thousands |
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
June 30, |
|
June 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net income (loss) |
$ |
72 |
|
|
$ |
(634 |
) |
|
$ |
(4,940 |
) |
|
$ |
(5,590 |
) |
Adjustments: |
|
|
|
|
|
|
|
||||||||
Depreciation and amortization expense |
|
1,499 |
|
|
|
1,623 |
|
|
|
4,567 |
|
|
|
4,820 |
|
Interest expense, net |
|
1,078 |
|
|
|
305 |
|
|
|
2,471 |
|
|
|
919 |
|
Income tax expense |
|
56 |
|
|
|
35 |
|
|
|
153 |
|
|
|
128 |
|
EBITDA |
|
2,705 |
|
|
|
1,329 |
|
|
|
2,251 |
|
|
|
277 |
|
Adjustments: |
|
|
|
|
|
|
|
||||||||
Foreign currency exchange loss, net (1) |
|
(1 |
) |
|
|
1 |
|
|
|
6 |
|
|
|
11 |
|
Other expense (income), net (2) |
|
78 |
|
|
|
295 |
|
|
|
184 |
|
|
|
149 |
|
Gain (loss) on disposal of assets (3) |
|
— |
|
|
|
(3 |
) |
|
|
3 |
|
|
|
— |
|
Equity compensation (4) |
|
72 |
|
|
|
85 |
|
|
|
243 |
|
|
|
292 |
|
Pension settlement expense (5) |
|
60 |
|
|
|
78 |
|
|
|
60 |
|
|
|
78 |
|
Severance expense (6) |
|
435 |
|
|
|
— |
|
|
|
435 |
|
|
|
— |
|
LIFO impact (7) |
|
475 |
|
|
|
(73 |
) |
|
|
826 |
|
|
|
(272 |
) |
IT incident (benefit) cost, net (8) |
|
(627 |
) |
|
|
182 |
|
|
|
(605 |
) |
|
|
1,269 |
|
Strategic alternative expense (9) |
|
169 |
|
|
|
29 |
|
|
|
490 |
|
|
|
29 |
|
Adjusted EBITDA |
$ |
3,366 |
|
|
$ |
1,923 |
|
|
$ |
3,893 |
|
|
$ |
1,833 |
|
(1) |
Represents the gain or loss from changes in the exchange rates between the functional currency and the foreign currency in which the transaction is denominated. |
(2) |
Represents miscellaneous non-operating income or expense, such as pension costs or grant income (prior year included |
(3) |
Represents the difference between the proceeds from the sale of operating equipment and the carrying value shown on the Company's books. |
(4) |
Represents the equity-based compensation expense recognized by the Company under the 2016 Plan due to granting of awards, awards not vesting and/or forfeitures. |
(5) |
Represents expense incurred by its defined benefit pension plans related to settlement of pension obligations. |
(6) |
Represents expense incurred for executive severance. |
(7) |
Represents the change in the reserve for inventories for which cost is determined using the last-in, first-out ("LIFO") method. |
(8) |
Represents incremental information technology costs as it relates to the cybersecurity incident and loss on insurance recovery. |
(9) |
Represents expense related to evaluation of strategic alternatives. |
Reference to the above activities can be found in the consolidated financial statements included in Item 8 of the Company's Annual Report on Form 10-K.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240812851038/en/
SIFCO Industries, Inc.
Thomas R. Kubera, 216-881-8600
www.sifco.com
Source: SIFCO Industries, Inc.
FAQ
What was SIFCO Industries' (SIF) net sales growth in Q3 2024?
Did SIFCO Industries (SIF) achieve profitability in Q3 2024?
How much did SIFCO Industries' (SIF) EBITDA grow in Q3 2024?