Company: SIF
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0000090168-25-000025
Chunk: 21

Company: SIFCO INDUSTRIES INC
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 2
Chunk 21
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 Revolving credit agreement                                  9.7       7.9      $                               12.5      $         16.2  
  Term loan                                                  10.2         —      $                                2.6      $            —  
  Other debt                                                  5.2       0.9      $                                0.4      $          0.3  
  Promissory note (related party)                               —       6.6      $                                  —      $          3.2  

Income Taxes

The Company’s effective tax rate through the first six months of fiscal 2025 was (2.2)%, 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 $3.7 million during the first six months of fiscal 2025, compared with $6.3 million in the comparable period of fiscal 2024 due to higher sales volumes and gross margins improvements coupled with lower SG& A expenses and lower interest expense attributable to lower average debt outstanding during the period.

Non-GAAP Financial Measures

Presented below is certain financial information based on the Company’s EBITDA and Adjusted EBITDA. References to “ EBITDA” mean earnings (losses) from continuing operations before interest, taxes, depreciation and amortization, and references to “ Adjusted EBITDA” mean EBITDA plus, as applicable for each relevant period, certain adjustments as set forth in the reconciliations of net income to EBITDA and Adjusted EBITDA.

Neither EBITDA nor Adjusted EBITDA is a measurement of financial performance under generally accepted accounting principles in the United States of America (“ GAAP”). The Company presents EBITDA and Adjusted EBITDA because management believes that they are useful indicators for evaluating operating performance, including the Company’s ability to incur and service debt and it uses EBITDA to evaluate prospective acquisitions. Although the Company uses EBITDA and Adjusted EBITDA for the reasons noted above, the use of these non-GAAP financial