SIFCO Industries, Inc. (SIF) saw its loss widen to $1.66 million, or $0.30 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $0.30 million, or $0.05 a share.
Revenue during the quarter grew 7.66 percent to $31.30 million from $29.08 million in the previous year period. Gross margin for the quarter contracted 56 basis points over the previous year period to 11.69 percent. Operating margin for the quarter stood at negative 4.19 percent as compared to a negative 0.73 percent for the previous year period.
Operating loss for the quarter was $1.31 million, compared with an operating loss of $0.21 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $2.35 million compared with $1.98 million in the prior year period. At the same time, adjusted EBITDA margin improved 68 basis points in the quarter to 7.51 percent from 6.83 percent in the last year period.
President and CEO Peter W. Knapper stated, "In the second quarter, we've continued to execute on our plans to turn around our business. Our consolidation into a new facility in Orange, CA was completed in April. Getting past the disruption and costs inherent in a move of this significance is important to any operation. We have shown improvement in operations as we increased revenue while reducing inventory by $3.0 million in the first 6 months of fiscal 2017. We also reduced debt by $5.0 million this quarter. The new sales organization structure implemented earlier this year is uncovering new opportunities for our business and we will continue to focus on serving our customers, associates, and shareholders."
Operating cash flow drops significantly
SIFCO Industries, Inc. has generated cash of $5.27 million from operating activities during the first half, down 55.17 percent or $6.49 million, when compared with the last year period.
The company has spent $0.92 million cash to meet investing activities during the first six months as against cash outgo of $1.18 million in the last year period.
The company has spent $3.47 million cash to carry out financing activities during the first six months as against cash outgo of $10.32 million in the last year period.
Cash and cash equivalents stood at stood at $1.36 million as at Mar. 31, 2017.
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