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 Year to Date Results 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 con ...

Financial Performance - Net sales for the first six months of fiscal 2024 increased by $7.1 million to $47.6 million, compared to $40.5 million in the same period of fiscal 2023[89] - Commercial net sales accounted for 64.3% of total net sales in the first six months of fiscal 2024, up from 53.1% in the same period of fiscal 2023[90] - Net sales for the second quarter of fiscal 2024 increased by $7.4 million to $26.6 million, compared to $19.2 million in the same period of fiscal 2023[99] - Commercial net sales were 65.5% of total net sales in the second quarter of fiscal 2024, up from 59.0% in the comparable period of fiscal 2023[100] Cost and Profitability - Cost of goods sold increased by $6.6 million, or 17.5%, to $44.1 million, representing 92.7% of net sales in the first six months of fiscal 2024[91] - Gross profit increased by $0.5 million to $3.5 million in the first six months of fiscal 2024, with a gross profit margin of 7.3%[92] - Gross profit for the second quarter of fiscal 2024 increased by $1.0 million to $2.7 million, with a gross profit margin of 10.3%[102] Expenses and Losses - Selling, general and administrative expenses decreased to $6.8 million, or 14.3% of net sales, from $7.1 million, or 17.6% of net sales in the same period of fiscal 2023[93] - Net loss for the first six months of fiscal 2024 was $5.0 million, consistent with the net loss in the same period of fiscal 2023[98] - Net loss for Q2 fiscal 2024 was $1.6 million, a reduction from a net loss of $2.4 million in Q2 fiscal 2023, attributed to higher sales volume and gross margin improvements[107] EBITDA and Operational Performance - EBITDA for Q2 fiscal 2024 was $926,000, compared to a loss of $374,000 in Q2 fiscal 2023, indicating improved operational performance[111] - Adjusted EBITDA for Q2 fiscal 2024 was $1.3 million, significantly up from $34,000 in Q2 fiscal 2023, reflecting better cost management and revenue generation[111] Cash Flow and Liquidity - Cash and cash equivalents increased to $0.7 million at March 31, 2024, up from $0.4 million at September 30, 2023, indicating improved liquidity[116] - Operating activities used $5.3 million of cash in the first six months of fiscal 2024, primarily due to a net operating loss of $5.0 million[117] - Cash used for investing activities was $3.1 million in the first six months of fiscal 2024, mainly for short-term investments and capital expenditures[119] - Cash provided by financing activities was $8.8 million in the first six months of fiscal 2024, compared to $0.8 million in the same period of fiscal 2023, showing increased financing activity[120] Financing and Capital Expenditures - The Company obtained a bond for approximately $2.2 million with a seven-year term and a second loan for approximately $1.1 million for working capital purposes during the first six months of fiscal 2024[121] - The Company anticipates total capital expenditures for fiscal 2024 to be within the range of $3.0 million to $3.5 million, focusing on enhancing production capabilities[119] Market Conditions and Risks - The credit and capital markets experienced significant volatility during the pandemic, impacting the ability to obtain additional debt financing[126] - Tightening of the credit market and standards could negatively affect financing terms compared to the existing Credit Agreement[126] - Capital market uncertainty may hinder the company's ability to secure equity financing due to its market capitalization and status as a smaller reporting company[126] Accounting Standards - Recent accounting standards adopted and not yet adopted are detailed in the company's Annual Report on Form 10-K for the year ended September 30, 2023[127] Backlog - Total backlog as of March 31, 2024, was $137.8 million, up from $96.7 million a year earlier, with $105.3 million expected to be completed within the next 12 months[88]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-5978 SIFCO Industries, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) 970 East 64th Street, Cleveland Ohio 441 ...

Revenue and Sales Performance - In fiscal 2023, commercial and military revenues accounted for 55.6% and 44.4% of total revenues, respectively, compared to 47.4% and 52.6% in fiscal 2022[16] - Net sales for fiscal 2023 increased by 3.7%, or $3.1 million, to $87.0 million compared to $83.9 million in fiscal 2022, driven by increased demand in the steam turbine power generation market[110] - Commercial net sales accounted for 55.6% of total net sales in fiscal 2023, up from 47.4% in fiscal 2022, with an increase of $8.6 million to $48.4 million[111] - Net sales for the year ended September 30, 2023, were $87,022,000, an increase of 2.66% from $83,902,000 in 2022[193] Financial Position and Performance - The net loss for fiscal 2023 was $8.7 million, a slight improvement from a net loss of $9.6 million in fiscal 2022, primarily due to increased volume and cost reductions[119] - Gross profit increased by $9.4 million to $7.5 million in fiscal 2023, resulting in a gross margin of 8.7%, compared to a loss of $1.9 million and a margin of (2.2%) in fiscal 2022[113] - Operating loss decreased to $6,733,000 in 2023 from $14,070,000 in 2022, reflecting better operational efficiency[193] - The comprehensive loss for the fiscal year 2023 was $6,659,000, compared to a loss of $9,254,000 in 2022, indicating an improvement of about 28.8%[206] Backlog and Orders - Total backlog as of September 30, 2023, increased to $120.1 million, up from $81.9 million as of September 30, 2022, with orders for delivery in fiscal 2024 rising to $89.6 million from $65.5 million in fiscal 2023[27] - As of September 30, 2023, the company's total backlog was $120.1 million, but there is uncertainty regarding the realization of these amounts due to potential order cancellations and modifications[49] Employee and Operational Changes - Approximately 348 full-time employees at the beginning of fiscal 2023 increased to approximately 368 by the end of fiscal 2023[29] - The company employed approximately 378 people as of September 30, 2023, facing competition for management and employees, which could lead to increased costs and operational disruptions[70] Supply Chain and Market Risks - SIFCO experienced increases in pricing for raw materials due to supply chain disruptions and inflationary pressures, which could affect customer demand and costs[19] - The company faces risks from supply chain disruptions, which could adversely affect sales, earnings, financial condition, and liquidity due to reliance on third-party suppliers for raw materials and components[57] - The defense budget in the United States varies yearly, impacting demand and build rates for military contracts[25] - Future levels of U.S. defense spending are uncertain and subject to congressional debate, which could materially affect the company's sales and operating profit[44] Cybersecurity and Operational Risks - The company is exposed to cybersecurity threats and information technology disruptions, which could lead to operational stoppages and increased costs[54] - The company experienced production delays and shipment issues due to a cybersecurity incident during fiscal 2023, which impacted domestic operations[210] - The company has completed data recovery and restoration following the cybersecurity incident, allowing for a return to normal operations[210] Financial Management and Liquidity - The company believes its cash on hand, along with operational cash flows and existing credit facilities, will provide sufficient liquidity for the foreseeable future, but this is subject to significant assumptions[73] - Cash and cash equivalents decreased to $0.4 million at September 30, 2023, down from $1.2 million at September 30, 2022[127] - The company has adequate cash/liquidity available to finance its operations, but future performance is subject to various economic and competitive factors[89] Regulatory and Compliance Issues - The company’s operations are certified under AS 9100D and/or ISO 9001:2015, ensuring compliance with quality standards[17] - The company is subject to income taxes in the United States, Italy, and Ireland, and changes in tax laws could materially affect profitability and cash flow[92] - The company is subject to extensive procurement regulations, and changes in these regulations could materially impact operating margins derived from government contracts[45] Strategic Vision and Market Position - SIFCO's strategic vision focuses on building a leading A&E company positioned for long-term, stable growth and profitability[15] - The company supplies components to the commercial space industry, which is rapidly evolving, presenting opportunities for increased market share[23] - The company operates under one business segment focused on producing forgings and machined components primarily for the Aerospace and Defense, Energy, and Commercial Space markets[105] Asset Management and Valuation - The company reported goodwill of $3.5 million and other intangible assets of $0.3 million, representing a total asset value of $96.5 million as of September 30, 2023[84] - Total assets decreased to $95,993,000 as of September 30, 2023, down from $97,266,000 in 2022[199] - The company has maintained its valuation allowance on U.S. deferred tax assets due to a cumulative loss position since fiscal 2016, continuing through fiscal 2023[167] Challenges and Future Outlook - The company may not be able to attract and retain qualified personnel, which could adversely affect its business and financial condition[51] - The cyclical nature of the aerospace and energy industries could lead to material adverse effects on the company's business due to fluctuations in demand[41] - Labor disruptions or shortages could lead to increased costs and operational challenges, particularly in unionized locations[70] - The company has debt maturing in October 2024, raising substantial doubt about its ability to continue as a going concern[177]

Financial Performance - Net sales for the first nine months of fiscal 2023 decreased by $2.9 million to $62.4 million, down from $65.3 million in the same period of fiscal 2022, primarily due to delayed shipments from a cybersecurity incident [82]. - Gross profit increased to $6.5 million in the first nine months of fiscal 2023, compared to $1.8 million in the same period of fiscal 2022, with a gross profit margin of 10.3% [86]. - Military net sales decreased by $7.8 million to $27.8 million in the first nine months of fiscal 2023, while commercial net sales increased by $4.9 million to $34.6 million [84]. - In the third quarter of fiscal 2023, net sales increased by 1.9% to $21.9 million, compared to $21.4 million in the same period of fiscal 2022 [92]. - Commercial net sales accounted for 59.9% of total net sales in the third quarter of fiscal 2023, up from 55.3% in the comparable period of fiscal 2022 [93]. - Net loss for the first nine months of fiscal 2023 was $5.6 million, compared to a net loss of $2.7 million in the same period of fiscal 2022 [91]. - Net loss decreased to $0.6 million in Q3 2023 from $2.7 million in Q3 2022, attributed to higher volume and net ERC benefit of $1.4 million [101]. - EBITDA for Q3 2023 was $1.3 million, compared to a loss of $0.9 million in Q3 2022, while Adjusted EBITDA was $1.9 million versus a loss of $0.7 million [105]. Cost Management - Cost of goods sold decreased by $7.5 million, or 11.8%, to $55.9 million, representing 89.7% of net sales in the first nine months of fiscal 2023 [85]. - Cost of goods sold was $18.4 million, or 84.1% of net sales, in Q3 2023, down from $21.1 million, or 98.3% of net sales, in Q3 2022 [95]. - Gross profit increased to $3.5 million in Q3 2023, compared to $0.4 million in Q3 2022, resulting in a gross margin of 15.9% versus 1.7% [96]. - Selling, general and administrative expenses rose to $3.4 million, or 15.5% of net sales, in Q3 2023, up from $2.8 million, or 13.1% of net sales, in Q3 2022 [97]. Cash Flow and Liquidity - Cash and cash equivalents were $0.6 million at June 30, 2023, down from $1.2 million at September 30, 2022 [107]. - Operating activities used $2.3 million of cash in the first nine months of fiscal 2023, primarily due to an increase in accounts receivable of $3.2 million [108]. - Cash used for investing activities was $1.9 million in the first nine months of fiscal 2023, compared to $2.5 million in the same period of fiscal 2022 [110]. - Cash provided by financing activities was $3.5 million in the first nine months of fiscal 2023, up from $1.6 million in the same period of fiscal 2022 [111]. - The Company had net borrowings to the revolver under the Credit Agreement of $3.8 million in the first nine months of fiscal 2023, compared to $1.2 million in the same period of fiscal 2022 [113]. - The Company believes it has adequate cash/liquidity to finance operations from expected cash flows and funds available under the Credit Agreement [120]. Debt and Financing - The Company entered into the Seventh Amendment to the Credit Agreement, reducing the Revolving Credit Agreement to $23.0 million and total revolving commitment to $30.0 million [118]. - The loan maturity date for both the Credit Agreement and Export Credit Agreement has been modified to December 31, 2023 [118]. - In fiscal year 2022, the Company secured new financing at its Maniago location to ensure sufficient liquidity [120]. - The credit and capital markets experienced significant volatility during the pandemic, which may impact the Company's ability to obtain additional debt financing [121]. - Capital market uncertainty and the Company's status as a smaller reporting company could negatively affect its ability to secure equity financing [121]. Market Conditions - Total backlog increased to $122.8 million as of June 30, 2023, compared to $69.4 million a year earlier, indicating a recovery in the aerospace and energy markets [80]. - The company faced ongoing challenges in the labor market and supply chain lead times, impacting operations and production schedules [78]. - The effective tax rate for the first nine months of fiscal 2023 was (2.3)%, compared to 1% for the same period in fiscal 2022, primarily due to changes in jurisdictional income mix [90].

Financial Performance - Net sales for fiscal 2022 decreased by 15.8%, or $15.7 million, to $83.9 million compared to $99.6 million in fiscal 2021[118]. - The company reported a net loss of $9.64 million for the fiscal year ended September 30, 2022, compared to a net loss of $0.743 million in 2021[135]. - Gross profit decreased by $13.1 million to a loss of $1.9 million, with a gross margin of (2.2%) in fiscal 2022 compared to a profit of $11.2 million and a margin of 11.3% in fiscal 2021[122]. - Operating loss increased significantly to $14,070 thousand in 2022 from $1,102 thousand in 2021[195]. - Basic and diluted net loss per share was $1.65 in 2022, compared to $0.13 in 2021[195]. - Total assets decreased to $97,266 thousand in 2022 from $110,668 thousand in 2021, a decline of approximately 12%[200]. - Total shareholders' equity decreased to $40,690 thousand in 2022 from $49,622 thousand in 2021, a decline of approximately 18%[200]. Operational Challenges - The company has faced supply chain disruptions and inflationary pressures, leading to increased pricing for raw materials[20]. - The ongoing COVID-19 pandemic has led to production site shutdowns and workplace disruptions, adversely affecting the company's operations and financial condition[90]. - The company anticipates continued challenges due to the pandemic, including potential further material adverse effects on operations, costs, and customer orders[92]. - The company continues to face challenges due to the lingering effects of COVID-19 and geopolitical tensions impacting supply chains and economic conditions[210]. Market Dynamics - Orders for delivery scheduled in fiscal year 2023 increased to $65.5 million from $59.3 million scheduled in fiscal 2022[28]. - Demand from the markets served has been unpredictable, particularly in the A&E industries, resulting in reduced demand for commercial aircraft and negatively impacting net sales[91]. - The defense budget in the U.S. varies yearly, impacting demand and build rates for SIFCO's military components[23]. - The military aerospace cycle is highly dependent on U.S. and foreign government funding, with potential reductions in defense spending posing risks to sales and profitability[44][49]. Customer and Revenue Composition - In fiscal 2022, commercial and military revenues accounted for 47.4% and 52.6% of total revenues, respectively, compared to 36.7% and 63.3% in fiscal 2021[17]. - One direct customer accounted for approximately 11% of consolidated net sales in fiscal 2022, highlighting dependency on a small number of key customers[55]. - The company has maintained business relationships with major customers, with one customer accounting for 11% of consolidated net sales in fiscal 2022[27]. Financial Position and Liquidity - Cash and cash equivalents increased to $1.2 million at September 30, 2022, up from $0.3 million at September 30, 2021[140]. - The company amended its Credit Agreement, maintaining maximum borrowings at $35 million, with a senior secured revolving credit facility of $28 million[145]. - Availability under the Credit Agreement was $9.4 million as of September 30, 2022, with no requirement to meet the fixed charge coverage ratio due to sufficient availability[150]. Risks and Compliance - The company faces risks related to the cyclical nature of the aerospace and energy industries, which could adversely impact demand for its products[42][45]. - Cybersecurity threats and information technology disruptions could negatively impact the company's operations and financial results[57][59]. - The company is exposed to significant risks associated with international operations, including currency fluctuations and political uncertainties[68]. - The company faces risks from environmental laws and regulations, which may require significant capital expenditures for compliance[100]. - The company identified a material weakness in internal controls over financial reporting related to inventory valuation and asset impairment indicators[76]. Strategic Vision - SIFCO's strategic vision includes balancing military and commercial aerospace revenues while expanding into energy and commercial space markets[16]. - The company’s future success relies on timely meeting customer requirements and developing sophisticated manufacturing techniques[66]. Employment and Workforce - The company experienced a decrease in full-time employees from approximately 378 at the beginning of fiscal 2022 to about 348 at the end of the fiscal year[30]. - As of September 30, 2022, the company employed approximately 348 people, facing competition for talent and potential labor disruptions[77]. - The company may not be able to attract and retain qualified personnel, which could adversely affect its business operations and financial results[56].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-5978 SIFCO Industries, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organizat ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-5978 SIFCO Industries, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organiza ...

SIFCO Industries, Inc. UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 (Exact name of registrant as specified in its charter) FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-5978 | Large accelerated filer | ☐ | Accelerated filer | ☐ ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended September 30, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________________ to _____________________ Commission file number 1-5978 SIFCO Industries, Inc. (Exact name of registrant as specified in its charter) Ohi ...