SCHAUMBURG, IL – Sparton reported fiscal first quarter 2018 net sales of $82.8 million, a decrease of 17.5% year-over-year and 20.7% sequentially.
For the period ended Oct. 1, EBITDA was $337,000, compared to $5 million for the same quarter last year and $8 million for the fiscal fourth quarter of 2017.
Sparton posted an operating loss of $3.1 million during the quarter, compared to operating income of $1.3 million last year and $4.5 million in the prior quarter.
“As a result of our recent growth in new program wins, we experienced some interruptions in production and increased inventory levels, which is typical with new program introductions,” said Joseph J. Hartnett, Interim president and CEO. “We believe the backlog from these programs has us positioned for growth in the upcoming quarters and beyond.”
“We experienced net cash outflows and increasing debt in the quarter,” said Joseph G. McCormack, senior vice president and CFO. “This was principally the result of the timing of a payment from the US Navy, significant transaction-related costs as a result of the signing of the merger agreement during the quarter, increasing inventories as a result of the new product introductions, as well as typical year-end compensation related payments. The underlying fundamentals of the business remain unchanged, and we expect to return to positive free cash flows and reducing our debt levels in the second quarter.”
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