Magnetek, Inc. (“Magnetek” or “the Company,” NASDAQ: MAG) today reported the results of its third quarter of fiscal year 2013, ended September 29, 2013.
Third Quarter Results
In the third quarter of fiscal 2013, Magnetek recorded revenue of $26.0 million, a 3% decrease from the third quarter of fiscal 2012. The decrease in sales from the prior year quarter was mainly due to sales declines of products for material handling and, to a lesser extent, elevator markets. The lower sales volume resulted in third quarter earnings from continuing operations decreasing to $.38 per diluted share compared to prior year earnings from continuing operations of $.51 per diluted share.
“Despite the modest decrease in total Company sales from last year’s third quarter, our gross margins exceeded 35%, and our continuing operations remained firmly profitable. In addition, third quarter adjusted EBITDA was more than 13% of sales, we generated healthy levels of cash, and we’ve made a great deal of progress reducing our pension obligation,” said Peter McCormick, Magnetek’s president and chief executive officer.Gross profit amounted to $9.2 million (35.3% of sales) in the third quarter of 2013 versus $9.7 million (36.0% of sales) in the same period a year ago. The decrease in gross profit and gross margin was primarily due to lower sales volumes in the current year quarter. Total operating expenses, consisting of research and development, pension expense, and selling, general and administrative costs, were $7.6 million in the third quarter of 2013, compared to $7.8 million in the third quarter of fiscal 2012. Compared to the prior year, the decrease in operating expenses was mainly due to lower research and development and pension expenses, partially offset by higher payroll-related costs, mainly in the sales and marketing area. Income from continuing operations after provision for income taxes in the third quarter of fiscal 2013 was $1.3 million, or $.38 per diluted share, compared to after-tax income from continuing operations of $1.7 million, or $.51 per diluted share, in the same period last year.