Sparton Corporation 8-K

-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, F52hDzf5/FmMyVl7S+/HDS265kZTuGUtHctTsgHi445GDu1YfCme2iGkN00mW0Pl tcxOOPt6SMFZc7f4YZAw2Q== 0000950152-04-003989.txt : 20040514 0000950152-04-003989.hdr.sgml : 20040514 20040514091348 ACCESSION NUMBER: 0000950152-04-003989 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040514 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20040514 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SPARTON CORP CENTRAL INDEX KEY: 0000092679 STANDARD INDUSTRIAL CLASSIFICATION: MOTOR VEHICLE PARTS & ACCESSORIES [3714] IRS NUMBER: 381054690 STATE OF INCORPORATION: OH FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-01000 FILM NUMBER: 04804668 BUSINESS ADDRESS: STREET 1: 2400 E GANSON ST CITY: JACKSON STATE: MI ZIP: 49202 BUSINESS PHONE: 5177878600 MAIL ADDRESS: STREET 1: 2400 E GANSONS STREET CITY: JACKSON STATE: MI ZIP: 49202 FORMER COMPANY: FORMER CONFORMED NAME: SPARKS WITHINGTON CO DATE OF NAME CHANGE: 19710510 8-K 1 l07603ae8vk.htm SPARTON CORPORATION 8-K Sparton Corporation 8-K

Table of Contents

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): May 14, 2004

SPARTON CORPORATION

(Exact name of registrant as specified in its charter)


OHIO		1-1000		38-1054690

(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)


2400 E. Ganson Street, Jackson, Michigan		49202

(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code (517) 787-8600

1

TABLE OF CONTENTS


ITEM 7. EXHIBITS
ITEM 12. RESULTS OF OPERATION AND FINANCIAL CONDITION.
SIGNATURES
Index to Exhibits
EX-99.1 News Release

Table of Contents

INTRODUCTORY NOTE

On May 14, 2004 Sparton Corporation issued a press release announcing the financial results of the third quarter and nine months ending March 31, 2004.

ITEM 7. EXHIBITS

Exhibit 99.1 Press Release dated May 14, 2004 issued by Sparton Corporation.

ITEM 12. RESULTS OF OPERATION AND FINANCIAL CONDITION

On May 14, 2004, Sparton Corporation, an Ohio Corporation (the “Company”) issued a press release announcing the financial results of the third quarter and nine months ending March 31, 2004.

The foregoing description of the press release is qualified in its entirety by reference to the press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

2

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

SPARTON CORPORATION

/s/ David W. Hockenbrocht
David W. Hockenbrocht
May 14, 2004 Chief Executive Officer

3

Table of Contents

Index to Exhibits


Exhibit No.		Description
Exhibit 99.1		Press Release dated May 14, 2004 issued by Sparton Corporation.

4

EX-99.1 2 l07603aexv99w1.txt EX-99.1 NEWS RELEASE EXHIBIT 99.1 [LOGO OF SPARTON CORPORATION] NEWS RELEASE FOR IMMEDIATE RELEASE Sparton Corporation Releases Fiscal 2004 Third Quarter Results JACKSON, Mich.--(BUSINESS WIRE) -- May 14, 2004--Electronic Design and Manufacturing Service (EMS) provider, Sparton Corporation (NYSE:SPA) announced the financial results for the third quarter and nine months ended March 31, 2004. Sales for the three-month period ended March 31, 2004, totaled $43,566,000, an increase of $2,725,000 (7%) from the same quarter last year. Government sales of $14,061,000 increased $4,223,000 (43%) from prior year, principally due to the successful passage of a number of sonobuoy drop tests during March. Industrial market sales of $11,169,000 showed a significant decline, down 26% from the same period last year. Industrial sales have been adversely impacted by the reduced sales to customers providing detection equipment for U.S. airports. Medical/scientific instrumentation sales were consistent with third quarter sales in fiscal 2003, while aerospace sales of $13,885,000 increased 22% from prior year, an increase mainly attributable to increased orders from existing customers. Sales for the nine-month period ended March 31, 2004, totaled $113,231,000, off $7,658,000 (6%), compared to the same period last year. All markets, with the exception of aerospace, evidenced a decline from prior year. Government sales were $30,746,000 for the nine months ended March 31, 2004, down slightly from prior year's sales of $32,715,000, a decline of 6%. Government sales declined from last year in part due to the overall decline in sonobuoy sales to the U.S. Navy and delayed foreign sonobuoy sales. Industrial sales of $29,089,000 showed a decline of 29%. Industrial sales have declined sharply due to reduced sales for homeland security. Prior year's sales benefited from strong demand from customers with homeland security products, principally driven by the demand for detection equipment in U.S. and Canadian airports. Contrary to other markets, aerospace sales increased $7,155,000 (22%) to $39,899,000, primarily as a result of increased sales to existing customers. An operating profit of $133,000 was reported for the three months ended March 31, 2004, compared to $801,000 for the three months ended March 31, 2003. Gross margin for the three months ended March 31, 2004, was 8%, up from 4% for the previous three months ended December 31, 2003. The improved margin reflects the conclusion of the start-up phase of several programs, as well as the completion of one sonobuoy contract that had experienced technical problems. The 8% gross margin for the three months ended March 31, 2004 was down from 10% in fiscal 2003. The decrease was partially due to a less favorable product mix, as well as several programs in start-up mode which contributed minimal or negative margins. In addition, the provision for pension costs was adjusted by $481,000 to reflect the revised annual estimate of such costs. An operating loss of $5,358,000 was reported for the nine months ended March 31, 2004, versus an operating profit of $8,826,000 for the same period last year. Included in prior year's operating income was a $5,500,000 recovery ($3,630,000 net of tax) of certain environmental remediation costs. It reflects Sparton's settlement with the DOE and others regarding the reimbursement of costs incurred at the Company's Sparton Technology Coors Road property. The Company is focused on continuing to improve margins through cost reductions and/or recoupment of unplanned expenses from several customers. The Company reported net income of $156,000 ($0.02 per share, basic and diluted) and a loss of $3,541,000 ($(0.42) per share, basic and diluted) for the three months and nine months ended March 31, 2004, versus $671,000 ($0.08 per share, basic and diluted) and $6,427,000 ($0.77 per share basic, $0.76 per share diluted) for the corresponding periods last year. At March 31, 2004, the Company had $87,772,000 in shareowners' equity ($10.52 per share), $70,356,000 in working capital, and a 4.84:1.00 working capital ratio. SPARTON CORPORATION AND SUBSIDIARIES Condensed Consolidated Statements of Operations (Unaudited) For the Three-Month and Nine-Month Periods ended March 31, 2004 and 2003

See accompanying notes. [1] All share and per share information have been adjusted to reflect the impact of the 5% stock dividends declared in January and October 2003. Notes: 1. Financial information was taken from the Company's internal records and is unaudited. 2. Basic weighted average shares outstanding for the three-month and nine-month periods, were 8,345,787 and 8,344,863 in 2004, and 8,340,651 and 8,339,249 in 2003, respectively. Differences in basic and diluted earnings (loss) per share were due to the inclusion of employee incentive stock options. 3. Included in prior year's operating income was a $5,500,000 recovery ($3,630,000 net of tax) of certain environmental remediation costs. This recovery reflects Sparton's settlement with the DOE and others regarding the reimbursement of costs incurred at the Company's Sparton Technology Coors Road property. **************************************** SPARTON CORPORATION AND SUBSIDIARIES Condensed Consolidated Balance Sheet as of March 31, 2004 (Unaudited) Current assets $ 88,696,240 Current liabilities $ 18,340,177 Other non-current assets 11,455,275 Environmental remediation 6,601,832 Property, plant & equipment-net 12,562,695 Shareowners' equity 87,772,201 ------------ ------------ Total assets $112,714,210 Total liabilities & shareowners' equity $112,714,210 ============ ============

# # # # # This press release contains forward-looking statements within the scope of the Securities Act Exchange of 1933 and the Securities Exchange Act of 1934. The words "expects," "anticipates," "believes," "intends," "plans," and similar expressions, and the negatives of such expressions, are intended to identify forward-looking statements. Although the Company believes that these statements are based upon reasonable assumptions, such statements involve risks, uncertainties, and assumptions, including but not limited to industry and economic conditions, customer actions, and other factors discussed in the Company's form 10-Q for the quarter ended March 31, 2004, and it's other filings with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated. ~~-----END PRIVACY-ENHANCED MESSAGE-----~~