Facility EBITDA from Continuing Operations consists of EBITDA from our operating segments, which excludes Corporate Expenses. We believe this is a meaningful measurement of the operating performance of our manufacturing facilities. Corporate Expenses primarily consist of costs not allocated to our manufacturing facilities, such as compensation related costs for employees assigned to corporate, board of directors’ fees and expenses, professional fees, insurance costs, and marketing costs.
Adjusted Earnings removes the impact of reorganization/transaction related expenses and the impact of discontinued operations. Reorganization expenses are primarily labor and labor related costs associated with the termination of employees. Transaction expenses are primarily professional fees related to the refinancing of debt and the sale of non-core assets.
About ARC Group Worldwide
ARC Group Worldwide, Inc. is a global advanced manufacturing provider focused on accelerating speed to market for its customers. ARC provides a holistic set of precision manufacturing solutions, from design and prototyping through full run production. These solutions include metal injection molding, metal 3D printing, metal stamping, plastic injection molding, clean room injection molding, thixomolding, and rapid and conformal tooling. Further, ARC utilizes technology to improve automation in manufacturing through robotics, software and process automation, and lean manufacturing to improve efficiency.
Forward Looking Statements
This press release may contain "forward-looking" statements as defined in the Private Securities Litigation Reform Act of 1995, which are based on ARC's current expectations, estimates, and projections about future events. These include, but are not limited to, statements, if any, regarding business plans, pro-forma statements, and financial projections, including ARC's ability to expand its services and realize growth. These statements are not historical facts or guarantees of future performance, events, or results. Such statements involve potential risks and uncertainties, and the general effects of financial, economic, and regulatory conditions affecting our industries. Accordingly, actual results may differ materially. ARC does not have any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. For further information on risks and uncertainties that could affect ARC’s business, financial condition and results of operations, readers are encouraged to review Item 1A. – Risk Factors and all other disclosures appearing in ARC’s Form 10-K for the fiscal year ended June 30, 2018, as well as other documents ARC files from time to time with the Securities and Exchange Commission.
CONTACT:
Investor Relations
PHONE: (303) 467-5236
Email:
InvestorRelations@arcw.com
ARC Group Worldwide, Inc.
Consolidated Statements of Operations
(in thousands, except for share and per share amounts)
| For the three months ended | ||||||||
| December 30, | December 31, | |||||||
| 2018 | 2017 | |||||||
| Sales | $ | 20,907 | $ | 17,428 | ||||
| Cost of sales | 19,415 | 17,725 | ||||||
| Gross profit | 1,492 | (297 | ) | |||||
| Selling, general and administrative | 3,345 | 3,357 | ||||||
| Income from operations | (1,853 | ) | (3,654 | ) | ||||
| Other (expense) income, net | 64 | 165 | ||||||
| Interest expense, net | (898 | ) | (912 | ) | ||||
| Loss before income taxes | (2,687 | ) | (4,401 | ) | ||||
| Income tax benefit (expense) | (33 | ) | 366 | |||||
| Net loss from continuing operations | (2,720 | ) | (4,035 | ) | ||||
| Loss on sale of subsidiaries and loss from discontinued operations, net of tax | (822 | ) | (287 | ) | ||||
| Net loss | $ | (3,542 | ) | $ | (4,322 | ) | ||
| Net loss per common share, basic and diluted: | ||||||||
| Continuing operations | $ | (0.12 | ) | $ | (0.22 | ) | ||
| Discontinued operations | $ | (0.04 | ) | $ | (0.02 | ) | ||
| Attributable to ARC Group Worldwide, Inc. | $ | (0.15 | ) | $ | (0.24 | ) | ||
| Weighted average common shares outstanding: | ||||||||
| Basic and diluted | 23,349,478 | 18,265,323 | ||||||
