Company: SIF
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0000090168-25-000012
Chunk: 16

Company: SIFCO INDUSTRIES INC
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 2
Chunk 16
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ed EBITDA may not be comparable to the calculation of similarly titled measures reported by other companies.

The following table sets forth a reconciliation of net loss to EBITDA and Adjusted EBITDA:

  Dollars in thousands                                        2024                   2023               
 ────────────────────────────────────────────────────────────────────────────────────────────────────────
  Net loss                                                       $      (2,316)         $      (3,422)  
  Less: Income from discontinued operations, net of tax        106                    647               
  Loss from continuing operations                                       (2,422)                (4,069)  
  Adjustments:                                                                                          
  Depreciation and amortization expense                                   1,181                  1,232  
  Interest expense, net                                        469                    342               
  Income tax expense                                             5                      6               
  EBITDA                                                     (767)                             (2,489)  
  Adjustments:                                                                                          
  Foreign currency exchange (gain) loss, net (1)               (2)                      4               
  Other expense, net (2)                                        38                     69               
  Non-recurring severance expense adjustments (3)             (22)                      —               
  Equity compensation (3)                                       21                     86               
  Transaction-related expense adjustments (4)                 (17)                      —               
  LIFO impact (5)                                              501                    293               
  IT incident costs, net (6)                                     —                    (1)               
  Strategic alternative expense (7)                              —                    187               
  Adjusted EBITDA                                                $        (248)         $      (1,851)  

(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 grant income.

(3) 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.

(4) Represents credits related to transaction-related legal fees incurred primarily in connection with the unsuccessful acquisition of another company.

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

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

(7)