SIFCO INDUSTRIES INC - FORM 8-K - EX-99.1 - PRESS RELEASE - December 2, 2014

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SIFCO Industries, Inc. (“SIFCO”) Announces
Fiscal 2014 Financial Results

Cleveland - SIFCO Industries, Inc. (NYSE MKT: SIF) today announced financial results for its fiscal year 2014 and fourth quarter, which ended September 30, 2014.
Fiscal Year
•
Net sales in fiscal 2014 increased 3.2% to $119.7 million, compared with $116.0 million in fiscal 2013.
•
Income from continuing operations in fiscal 2014 was $5.6 million, or $1.03 per diluted share, compared with $9.8 million, or $1.81 per diluted share, in fiscal 2013.
•
Net income for fiscal 2014 was $5.0 million, or $0.92 per diluted share, compared with net income of $10.2 million, or $1.90 per diluted share, in fiscal 2013.

Fourth Quarter
•
Net sales in the fourth quarter of fiscal 2014 increased 3.4% to $33.0 million, compared with $31.9 million in the fourth quarter of fiscal 2013.
•
Income from continuing operations in the fourth quarter of fiscal 2014 was $1.0 million, or $0.17 per diluted share, compared with $3.9 million, or $0.73 per diluted share, in the fourth quarter of fiscal 2013.
•
Net income for the fourth quarter of fiscal 2014 was $0.7 million, or $0.13 per diluted share, compared with net income of $2.9 million, or $0.54 per diluted share, in the fourth quarter of fiscal 2013.

CEO Michael S. Lipscomb stated, “Fiscal 2014 was a year of consolidation for SIFCO, in which the transformative changes set in motion in the previous years created the pure play, aerospace and energy (A&E) focused forging business that SIFCO is today.  In continuing to take steps to support our strategic vision, the Company significantly invested in infrastructure to support future growth, including beginning an ERP implementation that will eventually be company-wide and replacing legacy equipment with next-generation technology to achieve sustainable cost savings.  SIFCO also reached a milestone as a public company.  Because our market capitalization surpassed certain thresholds, SIFCO became an accelerated filer and is no longer a non-accelerated, smaller reporting company. While this required the Company to incur additional unplanned costs associated with meeting expanded reporting and internal controls requirements, the process has strengthened SIFCO as a company.  Overall, we believe that our strategy remains sound, the outlook in our target markets is favorable, and we will continue to provide sustained, long-term growth for our shareholders."

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, competition and other uncertainties detailed from time to time in the Company's Securities and Exchange Commission filings.





The Company's Form 10-K for the year ended September 30, 2014 can be accessed through its 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.





Fiscal Year Ended September 30
(Amounts in thousands, except per share data)


 
 
Fiscal Year Ended September 30,
 
 
2014
 
2013
Net sales
 
$
119,654

 
$
116,001

Cost of goods sold
 
93,729

 
87,986

Gross margin
 
25,925

 
28,015

Selling, general and administrative expenses
 
15,680

 
12,262

Amortization of intangible assets
 
2,161

 
2,076

Loss (gain) on disposal of operating assets
 
(3
)
 
(89
)
Operating income
 
8,087

 
13,766

Interest income
 
(17
)
 
(24
)
Interest expense
 
201

 
342

Foreign currency exchange (gain) loss, net
 
(20
)
 
23

Other income, net
 
(433
)
 
(421
)
Income from continuing operations before income tax provision
 
8,356

 
13,846

Income tax provision
 
2,753

 
4,088

Income from continuing operations
 
5,603

 
9,758

Income (loss) from discontinued operations, net of tax
 
(580
)
 
476

Net income
 
$
5,023

 
$
10,234

Income per share from continuing operations
 
 
 
 
Basic
 
$
1.04

 
$
1.82

Diluted
 
$
1.03

 
$
1.81

Income (loss) per share from discontinued operations, net of tax
 
 
 
 
Basic
 
$
(0.11
)
 
$
0.09

Diluted
 
$
(0.11
)
 
$
0.09

Net income per share
 
 
 
 
Basic
 
$
0.93

 
$
1.91

Diluted
 
$
0.92

 
$
1.90

 
 
 
 
 
Weighted-average number of common shares (basic)
 
5,402

 
5,363

Weighted-average number of common shares (diluted)
 
5,424

 
5,401













Quarter Ended September 30
(Amounts in thousands, except per share data)
 
 
Quarter Ended September 30,
 
 
2014
 
2013
Net sales
 
$
32,959

 
$
31,880

 Gross profit
 
6,894

 
8,534

 
 
 
 
 
 Income from continuing operations
 
955

 
3,947

 
 
 
 
 
(Loss) from discontinued operations, net of tax
 
(212
)
 
(1,041
)
Net income
 
$
743

 
$
2,906

 
 
 
 
 
Income per share from continuing operations
 
 
 
 
Basic
 
$
0.17

 
$
0.74

Diluted
 
$
0.17

 
$
0.73

Income (loss) per share from discontinued operations, net of tax
 
 
 
 
Basic
 
$
(0.04
)
 
$
(0.20
)
Diluted
 
$
(0.04
)
 
$
(0.19
)
Net Income (loss) per share
 
 
 
 
Basic
 
$
0.13

 
$
0.54

Diluted
 
$
0.13

 
$
0.54

______________________________________________________________________________________________________
Contacts

SIFCO Industries, Inc.
Catherine M. Kramer, 216-881-8600
www.sifco.com


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