SCHAUMBURG, IL -- Sparton today announced fiscal fourth quarter sales at its contract manufacturing unit were $62.5 million, down 6.7% from a year ago. 

For the period ended Jul. 1, gross profit margin was 11.3%, and the operating loss was $600,000.

Adjusted EBITDA was $4.4 million, a 7.1% adjusted EBITDA margin. A year ago, the EMS segment reported an operating profit of $1.56 million. The net loss was $703,000, down from net profits of $1.4 million last year.

Sparton generated free cash flow of $13.8 million in the quarter and a net outflow of cash for the year of $8.3 million as a result of working capital needs, in part due to supply shortages for components which resulted in higher prices and higher inventory levels.

Overall net sales were $100.5 million, down from $104.4 million a year ago. Gross profit margin was 21.9%, while adjusted EBITDA was $9.3 million, down from $9.73 million. The net loss was $278,000, down from net income of $1.7 million.

For the year, net sales were $375 million, down from $397.6 million. Operating profit was up 25% to $9.5 million.

In a statement, Joseph Hartnett, interim president and CEO, said, "We are pleased to report that we closed the 2018 fiscal year with a total backlog of $320 million, made up of $148 million in our MDS segment and $172 million in our ECP segment. Gross margins also closed strong with consolidated gross margins reported at 21.9% for the quarter and 21.2% for the year. While this has been a year of significant challenges on a number of fronts, the management team remains committed to taking the steps necessary to improve our long-term operating performance."

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