SIFCO Industries Inc (SIF, Financial) filed Quarterly Report for the period ended 2009-03-31.
SIFCO Industries Inc. is engaged in the production and sale of a variety of metalworking processes services and products produced primarily to the specific design requirements of its customers. The processes include forging heat treating coating welding machining and electroplating; and the products include forgings machined forgings and other machined metal parts remanufactured component parts for turbine engines and electroplating solutions and equipment. SIFCO Industries Inc has a market cap of $44 million; its shares were traded at around $8.3 with a P/E ratio of 7.5 and P/S ratio of 0.4.
Net sales in the first six months of fiscal 2009 increased 4.7% to $35.9 million, compared with $34.3 million in the comparable period of fiscal 2008. For purposes of the following discussion, the ACM Group considers aircraft that can accommodate less than 100 passengers to be small aircraft and those that can accommodate 100 or more passengers to be large aircraft. Net sales of airframe components for small aircraft increased $2.3 million to $19.4 million in the first six months of fiscal 2009, compared with $17.1 million in the comparable period in fiscal 2008. Net sales of turbine engine components for small aircraft, which consist primarily of business and regional jets, as well as military transport and surveillance aircraft, increased $1.2 million to $11.2 million in the first six months of fiscal 2009, compared with $10.0 million in the comparable period in fiscal 2008. Net sales of airframe components for large aircraft decreased $1.1 million to $2.6 million in the first six months of fiscal 2009, compared with $3.7 million in the comparable period in fiscal 2008. Net sales of turbine engine components for large aircraft decreased $0.4 million to $1.3 million in the first six months of fiscal 2009, compared with $1.7 million in the comparable period in fiscal 2008. Commercial product sales and other revenues were $1.4 million and $1.8 million in the first six months of fiscal 2009 and 2008, respectively.
Net sales from continuing operations in the second quarter of fiscal 2009 decreased 0.6% to $25.9 million, compared with $26.1 million in the comparable period in fiscal 2008. Income from continuing operations in the second quarter of fiscal 2009 was $2.1 million, compared with $2.2 million in the comparable period in fiscal 2008. Income (loss) from discontinued operations, net of tax, was income of $0.3 million in the second quarter of fiscal 2009, compared with a $0.3 million loss in the comparable period in fiscal 2008. Net income in the second quarter of fiscal 2009 was $2.4 million, compared with $1.9 million in the comparable period in fiscal 2008.
Net sales in the second quarter of fiscal 2009 increased 6.4% to $19.6 million, compared with $18.4 million in the comparable period of fiscal 2008. For purposes of the following discussion, the ACM Group considers aircraft that can accommodate less than 100 passengers to be small aircraft and those that can accommodate 100 or more passengers to be large aircraft. Net sales of airframe components for small aircraft increased $1.6 million to $10.6 million in the second quarter of fiscal 2009, compared with $9.0 million in the comparable period in fiscal 2008. Net sales of turbine engine components for small aircraft, which consist primarily of business and regional jets, as well as military transport and surveillance aircraft, increased $0.5 million to $6.1 million in the second quarter of fiscal 2009, compared with $5.6 million in the comparable period in fiscal 2008. Net sales of airframe components for large aircraft decreased $0.3 million to $1.4 million in the second quarter of fiscal 2009, compared with $1.7 million in the comparable period in fiscal 2008. Net sales of turbine engine components for large aircraft decreased $0.5 million to $0.6 million in the second quarter of fiscal 2009, compared with $1.1 million in the comparable period in fiscal 2008. Commercial product sales and other revenues were $0.9 million and $1.0 million in the second quarters of fiscal 2009 and 2008, respectively.
The Companys operating activities provided $3.0 million of cash (of which $2.9 million was provided by continuing operations) in the first six months of fiscal 2009 compared with $1.3 million of cash provided by operating activities (of which $2.0 million was provided by continuing operations) in the first six months of fiscal 2008. The $2.9 million of cash provided by operating activities of continuing operations in first six months of fiscal 2009 was primarily due to (i) income from continuing operations, before depreciation expense and deferred taxes, of $4.8 million, (ii) a $0.3 million decrease in inventory and (iii) $0.9 million due to the collection of refundable income taxes, offset by (i) a $1.1 million increase in accounts receivable and (ii) a $1.4 million decrease in accounts payable. These changes in the components of working capital were due to factors resulting from normal business conditions of the Company, including (i) the ACM Groups focused efforts to optimize its in-process inventory levels partially offset by higher consignment inventory levels, (ii) the relative timing of collections from customers being impacted by the current global economic climate, including the selective extension by customers of payment terms, and (iii) the relative timing of our payments to suppliers and tax authorities.
Capital expenditures, all of which were from continuing operations, were $2.1 million in the first six months of fiscal 2009 compared with $1.2 million in the comparable fiscal 2008 period. Capital expenditures during the first six months of fiscal 2009 consist of $1.4 million by the ACM Group, $0.1 million by the ASC Group, $0.1 million by the Repair Group and $0.5 million for the initial implementation of a new company-wide management information system. The Company anticipates that total fiscal 2009 capital expenditures will be within the range of $3.0 to $4.0 million. In addition to the $2.1 million expended during the first six months of fiscal 2009, $1.3 million has been committed as of March 31, 2009, which includes $0.5 million for the further implementation of the new company-wide management information system.
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SIFCO Industries Inc. is engaged in the production and sale of a variety of metalworking processes services and products produced primarily to the specific design requirements of its customers. The processes include forging heat treating coating welding machining and electroplating; and the products include forgings machined forgings and other machined metal parts remanufactured component parts for turbine engines and electroplating solutions and equipment. SIFCO Industries Inc has a market cap of $44 million; its shares were traded at around $8.3 with a P/E ratio of 7.5 and P/S ratio of 0.4.
Highlight of Business Operations:
Net sales from continuing operations in the first six months of fiscal 2009 increased 0.6% to $49.5 million, compared with $49.2 million in the comparable period in fiscal 2008. Income from continuing operations in the first six months of fiscal 2009 was $3.6 million, compared with $3.3 million in the comparable period in fiscal 2008. Included in the $3.3 million of income from continuing operations in the first six months of fiscal 2008 was expense of $0.5 million related to the business settlement of a product dispute that originated in fiscal 2007. Income (loss) from discontinued operations, net of tax, was $0.4 million of income in the first six months of fiscal 2009, compared with a $0.3 million loss in the comparable period in fiscal 2008. Net income in the first six months of fiscal 2009 was $4.0 million, compared with $3.0 million in the comparable period in fiscal 2008.Net sales in the first six months of fiscal 2009 increased 4.7% to $35.9 million, compared with $34.3 million in the comparable period of fiscal 2008. For purposes of the following discussion, the ACM Group considers aircraft that can accommodate less than 100 passengers to be small aircraft and those that can accommodate 100 or more passengers to be large aircraft. Net sales of airframe components for small aircraft increased $2.3 million to $19.4 million in the first six months of fiscal 2009, compared with $17.1 million in the comparable period in fiscal 2008. Net sales of turbine engine components for small aircraft, which consist primarily of business and regional jets, as well as military transport and surveillance aircraft, increased $1.2 million to $11.2 million in the first six months of fiscal 2009, compared with $10.0 million in the comparable period in fiscal 2008. Net sales of airframe components for large aircraft decreased $1.1 million to $2.6 million in the first six months of fiscal 2009, compared with $3.7 million in the comparable period in fiscal 2008. Net sales of turbine engine components for large aircraft decreased $0.4 million to $1.3 million in the first six months of fiscal 2009, compared with $1.7 million in the comparable period in fiscal 2008. Commercial product sales and other revenues were $1.4 million and $1.8 million in the first six months of fiscal 2009 and 2008, respectively.
Net sales from continuing operations in the second quarter of fiscal 2009 decreased 0.6% to $25.9 million, compared with $26.1 million in the comparable period in fiscal 2008. Income from continuing operations in the second quarter of fiscal 2009 was $2.1 million, compared with $2.2 million in the comparable period in fiscal 2008. Income (loss) from discontinued operations, net of tax, was income of $0.3 million in the second quarter of fiscal 2009, compared with a $0.3 million loss in the comparable period in fiscal 2008. Net income in the second quarter of fiscal 2009 was $2.4 million, compared with $1.9 million in the comparable period in fiscal 2008.
Net sales in the second quarter of fiscal 2009 increased 6.4% to $19.6 million, compared with $18.4 million in the comparable period of fiscal 2008. For purposes of the following discussion, the ACM Group considers aircraft that can accommodate less than 100 passengers to be small aircraft and those that can accommodate 100 or more passengers to be large aircraft. Net sales of airframe components for small aircraft increased $1.6 million to $10.6 million in the second quarter of fiscal 2009, compared with $9.0 million in the comparable period in fiscal 2008. Net sales of turbine engine components for small aircraft, which consist primarily of business and regional jets, as well as military transport and surveillance aircraft, increased $0.5 million to $6.1 million in the second quarter of fiscal 2009, compared with $5.6 million in the comparable period in fiscal 2008. Net sales of airframe components for large aircraft decreased $0.3 million to $1.4 million in the second quarter of fiscal 2009, compared with $1.7 million in the comparable period in fiscal 2008. Net sales of turbine engine components for large aircraft decreased $0.5 million to $0.6 million in the second quarter of fiscal 2009, compared with $1.1 million in the comparable period in fiscal 2008. Commercial product sales and other revenues were $0.9 million and $1.0 million in the second quarters of fiscal 2009 and 2008, respectively.
The Companys operating activities provided $3.0 million of cash (of which $2.9 million was provided by continuing operations) in the first six months of fiscal 2009 compared with $1.3 million of cash provided by operating activities (of which $2.0 million was provided by continuing operations) in the first six months of fiscal 2008. The $2.9 million of cash provided by operating activities of continuing operations in first six months of fiscal 2009 was primarily due to (i) income from continuing operations, before depreciation expense and deferred taxes, of $4.8 million, (ii) a $0.3 million decrease in inventory and (iii) $0.9 million due to the collection of refundable income taxes, offset by (i) a $1.1 million increase in accounts receivable and (ii) a $1.4 million decrease in accounts payable. These changes in the components of working capital were due to factors resulting from normal business conditions of the Company, including (i) the ACM Groups focused efforts to optimize its in-process inventory levels partially offset by higher consignment inventory levels, (ii) the relative timing of collections from customers being impacted by the current global economic climate, including the selective extension by customers of payment terms, and (iii) the relative timing of our payments to suppliers and tax authorities.
Capital expenditures, all of which were from continuing operations, were $2.1 million in the first six months of fiscal 2009 compared with $1.2 million in the comparable fiscal 2008 period. Capital expenditures during the first six months of fiscal 2009 consist of $1.4 million by the ACM Group, $0.1 million by the ASC Group, $0.1 million by the Repair Group and $0.5 million for the initial implementation of a new company-wide management information system. The Company anticipates that total fiscal 2009 capital expenditures will be within the range of $3.0 to $4.0 million. In addition to the $2.1 million expended during the first six months of fiscal 2009, $1.3 million has been committed as of March 31, 2009, which includes $0.5 million for the further implementation of the new company-wide management information system.
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