Company: SIF
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0000090168-25-000032
Chunk: 24

Company: SIFCO INDUSTRIES INC
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 24
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 —      (16)                                  —               
  LIFO impact (7)                                            (470)                                475      (606)                               826               
  IT incident costs, net (8)                                 —                                  (628)      —                                 (605)               
  Strategic alternative expense (9)                          —                                     79      —                                   399               
  Adjusted EBITDA                                            $                       4,378          $      $                      3,973          $           79  

(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 other income from ERC.

(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 and executive severance.

(5) Represents expense incurred by its defined benefit pension plans related to settlement of pension obligations.

(6) Represents credits related to transaction-related legal fees incurred primarily in connection with the unsuccessful attempt in which the Company was the acquisition target.

(7) Represents the change in the reserve for inventories for which cost is determined using the last-in, first-out (“ LIFO”) method.

(8) Represents incremental information technology costs (and credits) as it relates to the cybersecurity incident and loss on insurance recovery.

(9) Represents expense related to evaluation of strategic alternatives.

B. Liquidity and Capital Resources

Cash and cash equivalents were $2.0 million and $1.7 million as of June 30, 2025 and September 30, 2024, respectively. A nominal amount of the Company’s cash and cash equivalents were in the possession of its non-U. S. holding company subsidiary, and certain distributions from which to the Company may be subject to adverse tax consequences.

Our primary requirements for liquidity and capital resources besides our growth initiatives, are working capital, capital expenditures, principal and interest payments on our outstanding debt, fulfilling obligations under our loan agreements, and other general corporate needs. Historically, the main sources of liquidity of the Company have been cash flows from operations and borrowings under our debt agreements. As of June 30, 2025, the Company was not party to any off-balance sheet arrangements that have had or are reasonably likely to have