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Net sales of $25.2 million decreased 15% from last year’s fourth quarter, mainly due to lower sales into material handling markets. Q4 bookings of $26.3 million increased 6% over last year.
Q4 net income from continuing operations was $0.7 million, or $.22 per share, compared to $0.8 million, or $.25 per share last year. Q4 adjusted EBITDA (see attached reconciliation) totaled nearly $3.0 million, or 11.7% of sales, compared to $4.7 million, or 15.8% of sales, for the same period last year.
Cash balances totaled $15.2 million as of December 29, 2013. Liquidity remains strong despite Q4 cash contributions to pension plan assets of $8.9 million.
Fiscal Year 2013 Highlights
FY 2013 sales totaled $103.3 million, a decrease of nearly 10% from the same period last year, mainly due to lower sales into material handling and mining markets, as well as the Company’s withdrawal from renewable energy markets.
Adjusted EBITDA decreased to $12.5 million, or 12.1% of sales, from $17.9 million, or 15.7% of sales, in fiscal 2012.
The Company’s pension obligation declined by $54 million during fiscal 2013 to $48 million as of December 29, 2013, from a combination of contributions to pension assets, rising interest rates, and positive asset returns.
Magnetek, Inc. (“Magnetek” or “the Company,” NASDAQ: MAG) today reported the results of its fourth quarter and 2013 fiscal year, ended December 29, 2013.
Fourth Quarter Results
In the fourth quarter of fiscal 2013, Magnetek recorded revenue of $25.2 million, a 15% decrease from the prior year fourth quarter, primarily reflecting lower sales of products for material handling applications, which decreased $4.2 million year-over-year to $18.6 million. Current year fourth quarter operating income was impacted by $0.4 million of unusual charges related to severance, professional fees, and finalization of the Company’s pension expense for fiscal 2013. Despite these charges, the Company’s continuing operations remained firmly profitable, with after-tax income of $0.7 million, or $.22 on a per share basis.