Business
ARC Group Worldwide Announces Return to Profitability for the Fiscal First Quarter 2021
ARC Group Worldwide Announces Return to Profitability for the Fiscal First Quarter 2021.
About this update from Rm2 International, Inc.
[{"type":"text","content":"DELAND, FL / ACCESSWIRE / January 25, 2021 / ARC Group Worldwide, Inc. (OTC PINK:ARCW) ("ARC" or the "Company"), a leading global provider of advanced manufacturing, today reports its results for the first fiscal quarter ending September 27, 2020. ARC reports net income for the three months and continued improvement compared to the prior period last year.Highlights for the first quarter of fiscal year 2021 compared to the first quarter fiscal year 2020 for Continuing Operations:Net sales were $11.4 million, increasing by 7.7%;Gross profit was $2.1 million, increasing by 73.9%;Operating expenses were $1.7 million, decreasing by 23.9%;Income from continuing operations was $0.1 million, as compared to an operating loss of $1.8 million in the prior period last year.Interest and financing costs were $0.3 million, decreasing by 66.3%;EBITDA was $1.6 million, increasing by 97.4%;Adjusted EBITDA for the three months ended September 27, 2020 was also $1.6 million. Adjusted EBITDA is a non-GAAP financial measure, which is reconciled to the most directly comparable GAAP financial measure and more fully defined in the enclosed table.Prior year financials for the fiscal first quarter include the results of ARC Metal Stamping, LLC ("AMS"), which was divested in December 2019 and are presented as discontinued operations.Quarterly Financial SummaryThe following analysis is performed over Sales, Gross Profit, and EBITDA from Continuing Operations for the comparative periods identified unless otherwise noted.Fiscal first-quarter net sales were $11.4 million, compared to $10.6 million in our fiscal first quarter of 2020. The increase in revenue was primarily driven by strength in the defense and firearms sector but partially offset by reductions in automotive, aerospace, and medical industries associated with COVID-19.Fiscal first-quarter gross profit was $2.1 million, compared to $1.2 million in our fiscal first quarter of 2020. Gross profit increases were primarily driven by increases in operational productivity and proactive cost reduction measures implemented to balance costs with specific industry performance. These cost balancing measures allowed improvements despite sales mix challenges in historically higher-margin industries like aerospace and medical.EBITDA was $1.6 million for the fiscal first quarter, comp...