Company: SIF
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0000090168-25-000025
Chunk: 18

Company: SIFCO INDUSTRIES INC
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 2
Chunk 18
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 favorable mix of products sold.

Selling, General and Administrative Expenses

Selling, general and administrative (“ SG& A”) expenses were $2.4 million, or 12.4% of net sales, during the second quarter of fiscal 2025, compared with $2.8 million, or 13.7% of net sales, in the comparable period of fiscal 2024. The decrease in SG& A expenses was primarily due to lower employee-related expenses attributable to previous headcount reductions, as well as reduced spend related to cost reduction initiatives and legal and strategic alternative expenses.

Other/General

The following table sets forth the weighted average interest rates and weighted average outstanding balances under the Company’s debt agreements in the second quarter of fiscal 2025 and 2024:

  (Dollars in millions)                            Weighted Average                Weighted Average                                            
                                                      Interest Rate                Outstanding Balance                                         
                                       Three Months Ended March 31,                Three Months Ended March 31,                                
                                                               2025      2024      2025                                        2024            
 ───────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Revolving credit agreement                                    9.7       8.1      $                                 11.7      $         16.8  
  Term loan                                                    10.0         —      $                                  2.8      $            —  
  Other debt                                                    2.3       0.8      $                                  0.4      $          0.3  
  Promissory note (related party)                                 —      13.2      $                                    —      $          3.2  

Income Taxes

The Company’s effective tax rate through the second quarter of fiscal 2025 was (5.9)%, compared with (0.2)% for the same period of fiscal 2024. The decrease in the effective rate was primarily attributable to changes in jurisdictional mix of income in fiscal 2025 compared with the same period of fiscal 2024. The effective tax rate differs from the U. S. federal statutory rate due primarily to the valuation allowance against the Company’s U. S. deferred tax assets and income in foreign jurisdictions that are taxed at different rates than the U. S. statutory tax rate.

Loss from Continuing Operations

Loss from continuing operations was $1.2 million during the second quarter of fiscal 2025, compared with $2.2 million in the comparable period of