SPARTON CORP

CIK:0000092679|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 30, 2018	Dec. 31, 2017	Dec. 30, 2018	Dec. 31, 2017
Income Statement [Abstract]
Net sales	$ 105,248	$ 97,819	$ 194,710	$ 180,582
Cost of goods sold	82,176	76,070	153,999	142,909
Gross profit	23,072	21,749	40,711	37,673
Operating expense
Selling and administrative expenses	14,734	14,074	27,104	29,279
Internal research and development expenses	1,442	669	2,791	1,241
Amortization of intangible assets	1,641	1,893	3,311	3,816
Total operating expense	17,817	16,636	33,206	34,336
Operating income	5,255	5,113	7,505	3,337
Other expense
Interest expense, net	(1,790)	(1,507)	(3,739)	(2,773)
Other, net	(57)	13	(71)	3
Total other expense, net	(1,847)	(1,494)	(3,810)	(2,770)
Income before income taxes	3,408	3,619	3,695	567
Income taxes	1,491	11,703	1,566	10,635
Net income (loss)	$ 1,917	$ (8,084)	$ 2,129	$ (10,068)
Income (loss) per share of common stock:
Basic (in dollars per share)	$ 0.19	$ (0.82)	$ 0.22	$ (1.02)
Diluted (in dollars per share)	$ 0.19	$ (0.82)	$ 0.22	$ (1.02)
Weighted average shares of common stock outstanding:
Basic (in shares)	9,834,723	9,834,723	9,834,723	9,845,686
Diluted (in shares)	9,834,723	9,834,723	9,834,723	9,845,686

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Dec. 30, 2018	Dec. 31, 2017
Cash Flows from Operating Activities:
Net income (loss)	$ 2,129	$ (10,068)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation	2,774	2,990
Amortization of intangible assets	3,311	3,816
Deferred income taxes	2,980	10,122
Stock-based compensation expense	47	221
Amortization of deferred financing costs	748	597
Loss on sale of property, plant and equipment, net	0	31
Changes in operating assets and liabilities:
Accounts receivable	5,397	(9,119)
Inventories and cost of contracts in progress	(4,088)	(5,175)
Prepaid expenses and other assets	3,370	341
Advance billings on customer contracts	(174)	0
Performance based payments on customer contracts	(4,934)	(1,749)
Accounts payable and accrued expenses	11,153	7,119
Net cash provided by (used in) operating activities	22,713	(874)
Cash Flows from Investing Activities:
Purchases of property, plant and equipment	(1,953)	(3,099)
Proceeds from sale of property, plant and equipment	0	14
Net cash used in investing activity	(1,953)	(3,085)
Cash Flows from Financing Activities:
Borrowings under credit facility	83,400	104,800
Repayments under credit facility	(103,800)	(100,400)
Payments under capital lease agreements	(135)	(136)
Payment of debt financing costs	0	(189)
Net cash provided by (used in) financing activities	(20,535)	4,075
Net increase in cash and cash equivalents	225	116
Cash and cash equivalents at beginning of period	1,160	988
Cash and cash equivalents at end of period	1,385	1,104
Supplemental disclosure of cash flow information:
Cash paid for interest	2,958	1,880
Cash paid for income taxes	$ 1,783	$ 603

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 30, 2018	Jul. 01, 2018
Current Assets:
Cash and cash equivalents	$ 1,385	$ 1,160
Accounts receivable, net of allowance for doubtful accounts of $146 and $169, respectively	47,280	60,454
Inventories and cost of contracts in progress, net	86,295	72,406
Legal settlements - insurance receivable	0	4,500
Prepaid expenses and other current assets	8,131	3,944
Total current assets	143,091	142,464
Property, plant and equipment, net	31,969	32,790
Goodwill	12,663	12,663
Other intangible assets, net	17,797	21,108
Deferred income taxes	14,786	17,646
Other non-current assets	4,416	5,331
Total assets	224,722	232,002
Current Liabilities:
Accounts payable	45,682	28,636
Accrued salaries	10,538	11,341
Accrued health benefits	1,246	947
Accrued legal settlements	0	5,500
Performance based payments on customer contracts	8,827	3,868
Advances from customers	5,775	5,949
Current portion of capital lease obligations	32	163
Other accrued expenses	7,805	10,718
Credit facility	64,100	0
Total current liabilities	144,005	67,122
Credit facility	0	84,500
Environmental remediation	4,598	4,866
Pension liability	633	690
Other non-current liabilities	0	1,220
Total liabilities	149,236	158,398
Commitments and contingencies
Shareholders’ Equity:
Preferred stock, no par value; 200,000 shares authorized, none issued	0	0
Common stock, $1.25 par value; 15,000,000 shares authorized, 9,834,723 and 9,834,723 shares issued and outstanding, respectively	12,293	12,293
Capital in excess of par value	17,646	17,599
Retained earnings	46,497	44,713
Accumulated other comprehensive loss	(950)	(1,001)
Total shareholders’ equity	75,486	73,604
Total liabilities and shareholders’ equity	$ 224,722	$ 232,002