ARC Group Worldwide, Inc. Reports Consolidated Earnings Results for the Fourth Quarter and Full Year Ended June 30, 2018; Provides Earnings Guidance for the First Quarter of 2019
September 28, 2018 at 04:00 pm EDT
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ARC Group Worldwide, Inc. reported consolidated earnings results for the fourth quarter and full year ended June 30, 2018. For the quarter, the company's sales were $22,673,000 compared to $22,147,000 a year ago. The increase in revenue was primarily driven by higher metal injection molding (MIM) and plastics sales, and the combination of higher sales and with higher order volumes in the aerospace, medical and firearms and defense markets. Loss from operations was $1,473,000 compared to $10,396,000 a year ago. Loss before income taxes was $2,018,000 compared to $11,625,000 a year ago. Net loss from continuing operations was $2,190,000 compared to $10,175,000 a year ago. Net loss was $2,190,000 compared to $10,296,000 a year ago. Net loss attributable to the company was $2,190,000 compared to $10,296,000 a year ago. Net loss per common share, basic and diluted from continuing operations was $0.65 compared to $0.78 a year ago. Net loss per common share attributable to the company, basic and diluted was $0.66 compared to $0.56 a year ago. EBITDA from Continuing Operations was $1,391,000 compared to EBITDA loss of $8,121,000 a year ago. Similar to Gross Profit, EBITDA was positively impacted by the increased revenues and lower costs. Adjusted Earnings was $1,120,000 compared to $452,000 a year ago.
For the year, the company's sales were $82,438,000 compared to $99,069,000 a year ago. The decrease is primarily the result of lower overall demand in the defense industry during the first two quarters of fiscal 2018. The company has seen a material improvement in defense orders in the last two quarters of 2018. Loss from operations was $9,612,000 compared to $12,744,000 a year ago. Loss before income taxes was $12,939,000 compared to $16,805,000 a year ago. Net loss from continuing operations was $12,904,000 compared to $14,174,000 a year ago. Net loss was $13,180,000 compared to $10,173,000 a year ago. Net loss attributable to the company was $13,180,000 compared to $10,147,000 a year ago. Net loss per common share, basic and diluted from continuing operations was $0.65 compared to $0.78 a year ago. Net loss per common share attributable to the company, basic and diluted was $0.66 compared to $0.56 a year ago. Net cash used in operating activities was $556,000 compared to net cash provided by operating activities of $2,850,000 a year ago. The decrease is primarily related to a decrease in accrued expenses and other liabilities of $2.4 million as part of payments made from the proceeds of the rights offering and improved collection efforts on receivables, reducing past due receivables by $1.5 million. Purchases of property and equipment were $5,144,000 compared to $6,641,000 a year ago.
The Company has completed the cost reduction and cost savings efforts as of June 30, 2018. Additionally, the company believe that the increased customer orders noted in fourth quarter of 2018 will continue. Based on these factors, the company believe the sustainable increase in margins and EBITDA will continue into the first quarter of 2019.
RM2 International, Inc. is the owner and operator of the BLOCKPal, a technologically advanced, composite pallet. The Company provides its customers with end-to-end logistics Intelligence Optimization & Tracking (RM2 ELIoT) Internet of Things (IoT) technology for pallet traceability, delivering real-time actionable insights and data to improve the supply chain visibility to the manufacturing and distribution businesses it serves. The BLOCKPal pallets are provided to customers across a range of industries, with a particular focus on those where hygiene and traceability are of critical importance. Its IoT sensor data are transmitted to the cloud via the long-term evolution-machine (LTE-M) network, making visible the palletâs location and condition both indoors and in transit without requiring any additional hardware or information technology (IT) development. The Companyâs RM2 ELIoT is a cloud-based supply chain intelligence platform. It issues more than 1.5 million pallets annually.
ARC Group Worldwide, Inc. Reports Consolidated Earnings Results for the Fourth Quarter and Full Year Ended June 30, 2018; Provides Earnings Guidance for the First Quarter of 2019