Company: SIF
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0000090168-25-000012
Chunk: 14

Company: SIFCO INDUSTRIES INC
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 2
Chunk 14
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 the first three months of fiscal 2025, compared with $3.1 million, or 20.1% of net sales, in the comparable period of fiscal 2024. The decrease in SG& A expenses was primarily due to lower general operating expenses, particularly legal and strategic alternative costs, of $0.2 million and lower employee-related costs of $0.1 million.

Other/General

The following table sets forth the weighted average interest rates and weighted average outstanding balances under the Company’s debt agreement in the first three months of both fiscal 2025 and 2024:

                                         Weighted Average                Weighted Average                                         
                                            Interest Rate                Outstanding Balance                                      
                                       Three Months Ended                Three Months Ended                                       
                                             December 31,                December 31,                                             
                                                     2024      2023      2024                                  2023               
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Revolving credit agreement                          9.6      7.7       $                        million      $         million  
  Term loan                                          10.5      —         2.4                      million      —         million  
  Other debt                                          8.2      1.0       0.4                      million      0.3       million  
  Promissory note (related party)                       —      —         —                        million      3.2       million  

Income Taxes

The Company’s effective tax rate through the first three months of fiscal 2025 was (0.21)%, compared with (0.15)% 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 $2.4 million during the first three months of fiscal 2025, compared with $4.1 million in the comparable period of fiscal 2024 due to higher sales volumes and gross margins improvements coupled with lower SG& A expenses, partially offset by higher interest expense.

Non-GAAP Financial Measures

Presented below is certain financial information based on the Company’s EBITDA and