SIFCO Industries (NYSEAM) Q4 2011 earnings summary

Executive summary

• FY11 net sales rose 28.9% to $107.4 million; net income increased to $7.4 million from $5.4 million.

• Growth reflected higher Forge and Applied Surface Concepts sales and the T&W Forge acquisition; the Repair segment recorded an impairment-related operating loss.

Financial highlights

• FY11 operating income was $10.9 million versus $7.9 million; income before tax was $11.2 million versus $8.4 million.

• FY11 diluted EPS was $1.40 versus $1.00; basic EPS was $1.41 versus $1.01.

• Q4 FY11 sales were $30.3 million versus $22.6 million; net income was $2.2 million versus $1.4 million, and diluted EPS was $0.41 versus $0.26.

Outlook and guidance

• FY12 capital expenditures were expected at $3.0–$4.0 million, focused on production and product-offering capabilities across the three segments.

• Cash flow, cash reserves and available revolving credit were expected to cover working-capital needs through FY12.

• Forge backlog reached $92.2 million at FY11 year-end, with $74.3 million scheduled for FY12 delivery; extended material lead times may make backlog less indicative of future sales.