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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) – May 9, 2024
  
SIFCO Industries, Inc.
(Exact name of registrant as specified in its charter)
 
Ohio
1-5978
34-0553950
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
970 East 64th Street, Cleveland Ohio
44103
(Address of principal executive offices)
(ZIP Code)
Registrant’s telephone number, including area code: (216) 881-8600
N.A.
(Former name or former address, if changed since last report.)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   ☐  
Securities registered pursuant to Section 12(b) of the Act:

Title of each classTrading Symbol(s)Name of each exchange on which registered
Common SharesSIFNYSE American



Item 2.02
Results of Operations and Financial Condition.
On May 9, 2024, SIFCO Industries, Inc. (the "Company" or "SIFCO") issued a press release announcing its financial results for its second quarter ended March 31, 2024. A copy of this press release is furnished with this Report as Exhibit 99.1 and is incorporated herein by reference.

The information contained in this item and in the accompanying exhibit shall not be deemed filed by SIFCO for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Such information will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent that SIFCO specifically incorporates it by reference.


Item 9.01
Financial Statements and Exhibits.

(d) Exhibits

104 Cover Page Interactive Data File (embedded within the Inline XBRL document).


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

SIFCO Industries, Inc.
(Registrant)
Date: May 9, 2024
/s/ Thomas R. Kubera
Thomas R. Kubera
Chief Financial Officer
(Principal Financial Officer)
 
    


SIFCO Industries, Inc. (“SIFCO”) Announces
Second Quarter Fiscal 2024 Financial Results

Cleveland - SIFCO Industries, Inc. (NYSE American: SIF) today announced financial results for its second quarter of fiscal 2024, which ended March 31, 2024.

Second Quarter Results
•Net sales in the second quarter of fiscal 2024 increased 37.9% to $26.5 million, compared with $19.2 million for the same period in fiscal 2023.
•Net loss for the second quarter of fiscal 2024 was $(1.6) million, or $(0.26) per diluted share, compared with net loss of $(2.4) million, or $(0.40) per diluted share, in the second quarter of fiscal 2023.
•EBITDA was $0.9 million in the second quarter of fiscal 2024, compared with $(0.4) million in the second quarter of fiscal 2023.
•Adjusted EBITDA in the second quarter of fiscal 2024 was $1.3 million, compared with Adjusted EBITDA of $0.0 million in the second quarter of fiscal 2023.

Year to Date Results
•Net sales in the first six months of fiscal 2024 increased 17.4% to $47.6 million, compared with $40.5 million for the same period in fiscal 2023.
•Net loss for the first six months of fiscal 2024 was $(5.0) million, or $(0.84) per diluted share, compared with net loss of $(5.0) million, or $(0.84) per diluted share, in the first six month of fiscal 2023.
•EBITDA was $(0.5) million in the first six month of fiscal 2024, compared with $(1.1) million in the first six months of fiscal 2023.
•Adjusted EBITDA in the first six month of fiscal 2024 was $0.5 million, compared with Adjusted EBITDA of ($0.1) million in the first six months of fiscal 2023.

Other Highlights
CEO Peter W. Knapper stated, “EBITDA, at $926k, turned positive for the quarter as we ramp up deliveries. Our backlog continued to grow and stands at $137.8 million. We are pleased with the progress and continue to focus on customer satisfaction.

Use of Non-GAAP Financial Measures
The Company uses certain non-GAAP measures in this release. EBITDA and Adjusted EBITDA are non-GAAP financial measures and are intended to serve as supplements to results provided in accordance with accounting principles generally accepted in the United States. SIFCO Industries, Inc. believes that such information provides an additional measurement and consistent historical comparison of the Company’s performance. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures is available in this news release.



Forward-Looking Language
Certain statements contained in this press release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to financial results and plans for future business development activities, and are thus prospective. Such forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, economic conditions, concerns with or threats of, or the consequences of, pandemics, contagious diseases or health epidemics, including COVID-19, competition and other uncertainties the Company, its customers, and the industry in which they operate have experienced and continue to experience, detailed from time to time in the Company’s Securities and Exchange Commission filings.

The Company's Annual Report on Form 10-K for the year ended September 30, 2023 and other reports filed with the Securities and Exchange Commission can be accessed through the Company's website: www.sifco.com, or on the Securities and Exchange Commission's website: www.sec.gov.

SIFCO Industries, Inc. is engaged in the production of forgings and machined components primarily for the aerospace and energy markets. The processes and services include forging, heat-treating, coating, and machining.























sifcoa11a.jpg
Second Quarter ended March 31,
(Amounts in thousands, except per share data)
(Unaudited)

Three Months Ended
March 31,		Six Months Ended
March 31,
 2024202320242023
Net sales$26,543 $19,242 $47,595 $40,541 
Cost of goods sold23,816 17,522 44,132 37,560 
Gross profit2,727 1,720 3,463 2,981 
Selling, general and administrative expenses3,208 3,849 6,789 7,129 
Amortization of intangible assets41 63 81 124 
Gain on disposal of operating assets3 14 3 3 
Operating loss(525)(2,206)(3,410)(4,275)
Interest expense, net963 339 1,393 614 
Foreign currency exchange loss, net3 12 7 9 
Other expense, net52 (218)105 (35)
Loss before income tax expense(1,543)(2,339)(4,915)(4,863)
Income tax expense47 28 98 93 
Net loss$(1,590)$(2,367)$(5,013)$(4,956)
Net loss per share
Basic$(0.26)$(0.40)$(0.84)$(0.84)
Diluted$(0.26)$(0.40)$(0.84)$(0.84)
Weighted-average number of common shares (basic)6,009 5,940 5,983 5,918 
Weighted-average number of common shares (diluted)6,009 5,940 5,983 5,918 













Consolidated Condensed Balance Sheets
(Amounts in thousands, except per share data)
(Unaudited)

March 31,
2024		September 30,
2023
 (unaudited) 
ASSETS
Current assets:
Cash and cash equivalents$747 $368 
Short-term investments1,730 — 
Receivables, net of allowance for credit losses of $131 and $242, respectively23,125 20,196 
Contract assets9,976 10,091 
Inventories, net13,847 8,853 
Refundable income taxes84 84 
Prepaid expenses and other current assets2,112 1,882 
Total current assets51,621 41,474 
Property, plant and equipment, net34,861 36,287 
Operating lease right-of-use assets, net13,911 14,380 
Intangible assets, net203 278 
Goodwill3,493 3,493 
Other assets99 81 
Total assets$104,188 $95,993 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current maturities of long-term debt$6,364 $3,820 
Promissory note - related party3,256 — 
Revolver17,518 16,289 
Short-term operating lease liabilities894 869 
Accounts payable17,683 13,497 
Accrued liabilities ($760 is related party)7,067 6,477 
Total current liabilities52,782 40,952 
Long-term debt, net of current maturities, net of unamortized debt issuance costs4,075 2,457 
Long-term operating lease liabilities, net of short-term13,561 14,020 
Deferred income taxes, net— 142 
Pension liability3,457 3,417 
Other long-term liabilities657 670 
Shareholders’ equity:
Serial preferred shares, no par value, authorized 1,000 shares; 0 shares issued and outstanding at March 31, 2024 and September 30, 2023— — 
Common shares, par value $1 per share, authorized 10,000 shares; issued and outstanding shares 6,190 at March 31, 2024 and 6,105 at September 30, 20236,190 6,105 
Additional paid-in capital11,663 11,626 
Retained earnings18,252 23,264 
Accumulated other comprehensive loss(6,449)(6,660)
Total shareholders’ equity29,656 34,335 
Total liabilities and shareholders’ equity$104,188 $95,993 




Non-GAAP Financial Measures
Presented below is certain financial information based on the Company's EBITDA and Adjusted EBITDA. References to “EBITDA” mean earnings (losses) from continuing operations before interest, taxes, depreciation and amortization, and references to “Adjusted EBITDA” mean EBITDA plus, as applicable for each relevant period, certain adjustments as set forth in the reconciliations of net income to EBITDA and Adjusted EBITDA.

Neither EBITDA nor Adjusted EBITDA is a measurement of financial performance under generally accepted accounting principles in the United States of America (“GAAP”). The Company presents EBITDA and Adjusted EBITDA because management believes that they are useful indicators for evaluating operating performance and liquidity, including the Company’s ability to incur and service debt and it uses EBITDA to evaluate prospective acquisitions. Although the Company uses EBITDA and Adjusted EBITDA for the reasons noted above, the use of these non-GAAP financial measures as analytical tools has limitations. Therefore, reviewers of the Company’s financial information should not consider them in isolation, or as a substitute for analysis of the Company's results of operations as reported in accordance with GAAP. Some of these limitations include:
•Neither EBITDA nor Adjusted EBITDA reflects the interest expense, or the cash requirements necessary to service interest payments on indebtedness;
•Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and neither EBITDA nor Adjusted EBITDA reflects any cash requirements for such replacements;
•The omission of the amortization expense associated with the Company’s intangible assets further limits the usefulness of EBITDA and Adjusted EBITDA; and
•Neither EBITDA nor Adjusted EBITDA includes the payment of taxes, which is a necessary element of operations.

Because of these limitations, EBITDA and Adjusted EBITDA should not be considered as measures of discretionary cash available to the Company to invest in the growth of its businesses. Management compensates for these limitations by not viewing EBITDA or Adjusted EBITDA in isolation and specifically by using other GAAP measures, such as net income (loss), net sales, and operating income (loss), to measure operating performance. Neither EBITDA nor Adjusted EBITDA is a measurement of financial performance under GAAP, and neither should be considered as an alternative to net loss or cash flow from operations determined in accordance with GAAP. The Company’s calculation of EBITDA and Adjusted EBITDA may not be comparable to the calculation of similarly titled measures reported by other companies.

The following table sets forth a reconciliation of net loss to EBITDA and Adjusted EBITDA:
Dollars in thousandsThree Months EndedSix Months Ended
 March 31,March 31,
 2024202320242023
Net loss$(1,590)$(2,367)$(5,013)$(4,956)
Adjustments:
Depreciation and amortization expense1,506 1,626 3,068 3,198 
Interest expense, net963 339 1,393 614 
Income tax expense47 28 98 93 
EBITDA926 (374)(454)(1,051)
Adjustments:
Foreign currency exchange loss (gain), net (1)3 12 7 9 
Other expense, net (2)52 (328)105 (146)
Gain on disposal of assets (3)3 14 3 3 
Equity compensation (4)85 85 171 207 
LIFO impact (5)58 (461)351 (199)
IT incident costs, net (6)24 1,086 23 1,087 
Strategic alternative expense (7)133 — 321 — 
Adjusted EBITDA$1,284 $34 $527 $(90)





(1)Represents the gain or loss from changes in the exchange rates between the functional currency and the foreign currency in which the transaction is denominated.
(2)Represents miscellaneous non-operating income or expense, such as pension costs or grant income (prior year included $0.1 million in loss on insurance recovery, separately reclassed to IT incident costs, net line).
(3)Represents the difference between the proceeds from the sale of operating equipment and the carrying value shown on the Company's books.
(4)Represents the equity-based compensation expense recognized by the Company under the 2016 Plan due to granting of awards, awards not vesting and/or forfeitures.
(5)Represents the change in the reserve for inventories for which cost is determined using the last-in, first-out ("LIFO") method.
(6)Represents incremental information technology costs as it relates to the cybersecurity incident and loss on insurance recovery (prior year balance includes reclassed amount of $0.1 million from footnote two above).
(7)Represents expense related to evaluation of strategic alternatives.

Reference to the above activities can be found in the consolidated financial statements included in Item 8 of the Company's Annual Report on Form 10-K.

Contacts
SIFCO Industries, Inc.
Thomas R. Kubera, 216-881-8600
www.sifco.com

v3.24.1.u1
Cover
Feb. 14, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date May 09, 2024
Entity Registrant Name SIFCO Industries, Inc.
Entity Incorporation, State or Country Code OH
Entity File Number 1-5978
Entity Tax Identification Number 34-0553950
Entity Address, Postal Zip Code 44103
Entity Address, State or Province OH
Entity Address, City or Town Cleveland
Entity Address, Address Line One 970 East 64th Street,
City Area Code 216
Local Phone Number 881-8600
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Title of 12(b) Security Common Shares
Trading Symbol SIF
Security Exchange Name NYSEAMER
Amendment Flag false
Entity Central Index Key 0000090168
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