Sparton Corporation Releases Fiscal 2002 Second Quarter Results
JACKSON, Mich.--Feb. 8, 2002--Electronic Design and Manufacturing Service (EMS) provider, Sparton Corporation (NYSE:SPA) announced the financial results for the second quarter and six months ended December 31, 2001.
Sales for the three-month period ended December 31, 2001, were $41.1 million, down $5.5 million (12%) from the same period last year. Net income for the quarter was $.6 million ($.08 per share) verses a profit $.8 million ($.09 per share) in the same quarter of fiscal 2000.
For the six months ended December 31, 2001, reported sales were $81.9 million, down 8% from the $89.2 million for the same period a year earlier. Earnings (loss) per share for the six months ending December 31, 2001 were $.20 verses $(.05) a year ago.
For the balance of this fiscal year, the Company expects to see increasing government sonobuoy sales and flat to slightly lower commercial EMS sales. Sparton's focus continues to be on increasing manufacturing productivity and reducing support costs each month. Unlike a year ago, the Company has fewer challenges today in securing the electronic components needed for manufacturing at competitive prices. Sparton also does not face the same challenge of finding and attracting talented associates, given the current higher levels of unemployment. Both of these trends appear to be in place for the foreseeable future.
For more information, please contact Rhonda Aldrich, Sparton Corporation at (517) 787-8600 or visit the Sparton website at http://www.sparton.com/.
Sparton Corporation and Subsidiaries
Condensed Consolidated Statements of Operations (Unaudited)
For the Three-Month Periods and Six-Month Periods ended
December 31, 2001 and 2000
Three Months Six Months
----------------------------------------------------
2001 2000 2001 2000
---- ---- ---- ----
Net sales $ 41,065,819 $ 46,556,366 $ 81,875,899 $ 89,238,678
Costs and
expenses:
Costs of goods
sold 37,248,947 41,458,438 73,331,112 82,111,374
Selling and
administrative 3,213,359 4,036,697 6,665,891 7,717,605
------------ ------------ ------------ ------------
40,462,306 45,495,135 79,997,003 89,828,979
------------ ------------ ------------ ------------
603,513 1,061,231 1,878,896 (590,301)
Other income
(expense):
Interest and
investment income 114,344 149,436 242,968 228,252
Interest expense (6,755) -- (6,755) --
Other - net 274,962 (19,117) 233,015 (206,448)
------------ ------------ ------------ ------------
382,551 130,319 469,228 21,804
------------ ------------ ------------ ------------
Income (loss) before
income taxes 986,064 1,191,550 2,348,124 (568,497)
Provision (credit)
for income taxes 365,000 441,000 869,000 (210,000)
------------ ------------ ------------ ------------
Net income (loss) $ 621,064 $ 750,550 $ 1,479,124 $ (358,497)
============ ============ ============ ============
Basic and diluted
earnings (loss)
per share $ .08 $ .09 $ .20 $ (.05)
============ ============ ============ ============
Dividends per
share of
common stock $ 0 $ 0 $ 0 $ 0
============ ============ ============ ============
Notes:
1. Financial information was taken from the Company's internal
records and is unaudited.
2. For the three-month periods and the six-month periods average
shares outstanding were 7,566,560 and 7,568,325, respectively in
2001; and for both the three-month and six-month periods in 2000,
average shares outstanding were 7,828,090. Differences in the
weighted average number of shares outstanding for purposes of
computing diluted earnings per share were due to the inclusion of
employee incentive stock options. These differences in the
calculation of basic and diluted earnings per share were not
material and resulted in no differences in per share amounts.
Assets Liabilities and Shareowners' Equity
Current assets $ 82,922,655 Current liabilities $15,222,544
Deferred income taxes 127,200
Miscellaneous - Environmental remediation 7,373,008
receivables and
other assets 11,328,944
Shareowners' equity:
Common stock 7,560,590
shares outstanding 9,450,737
Property, plant and
equipment-net 9,406,089 Capital in excess of
par value 477,543
Accumulated other
comprehensive income -
Retained earnings 71,006,656
------------
80,934,936
------------ ------------
Total Assets $103,657,688 Total Liabilities and
Shareowners' Equity $103,657,688
============ ============
This release of earnings contains certain forward-looking statements within the scope of the Securities Act of 1933 and the Securities Exchange Act of 1934. The words "expect", "believe", and similar expressions, and the negatives of such expressions, are intended to identify forward-looking statements. Although the Company believes that these statements are based upon reasonable assumptions, such statements involve risks, uncertainties, and assumptions, including but not limited to industry and economic conditions, customer actions, and the other factors discussed in the Company's Form 10-Q for the quarter ended December 31, 2001, and its other filings with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated.