SCHAUMBURG, IL -- Sparton today announced fiscal fourth-quarter sales rose 35% year-over-year to $126.4 million, boosted by several acquisitions.
For the period ended June 30, the company said operating income was $8.8 million, including a $2.8 million charge to settle a contractual dispute with L-3, up from $5 million a year ago.
Net income for the quarter was $5.1 million, compared to $3 million last year.
For the year, the firm reported revenue of $382.1 million, up 13.6%. New revenue from acquisitions totaled $85 million. Gross profit was up 15.2% to $74.7 million, and operating income fell 14.8% to $17.3 million. Net income for the year was down 15.4% to $11 million.
The company's MDS segment, which includes Hunter Technology, RTEmd and eMT, saw base business sales rise 2.1% for the year to $58.4 million. Including acquisitions, the unit's sales were up 36.4% to $85.8 million.
In a statement, president and chief executive Cary Wood said, “Given the headwinds we faced going into fiscal 2015, we are very pleased with the final results for the year. The seven acquisitions completed in the year added approximately $84.2 million of revenue, representing 22% of fiscal 2015’s revenue. Adjusted EBITDA for the year came in at 9% of sales, 100 basis points below our objective, due to SG&A expenses, primarily from the increased M&A activity of completing seven transactions as compared to three in the prior year, fourth quarter integration activities related to the Hunter acquisition and other key investments.
“As we move into fiscal 2016, I am optimistic that we will achieve our customary annual organic growth target of 3% to 5%. With the addition of Hunter Technology in the fourth quarter and the full-year effect of all acquisition’s made in fiscal 2015, our pro-forma revenue would be approximately $462 million, bringing us very close at accomplishing our targeted run-rate of $500 million of revenue by the end of fiscal 2015. With 14 acquisitions completed in the last five years, seven alone in the past year, we will be taking a short pause to allow for integration activities and other business synergies to be fully realized in the near term."
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