ARC Group Worldwide, Inc., Deland, Florida, USA, a leading global provider of advanced manufacturing solutions including Metal Injection Moulding and metal Additive Manufacturing, has reported its results for the period ending April 1, 2018, its fiscal third quarter 2018.
Fiscal third quarter 2018 revenue from continuing operations was $21.5 million, compared to $18.4 million in the prior sequential period. The increase in revenue was primarily driven by MIM and plastics sales from customers in the aerospace, medical, firearm and defence markets. Separately, the company’s international performance continues to improve with revenues from its Hungarian MIM operations increasing 7.9% sequentially to $2.3 million.
Gross profit from continuing operations was $1.1 million in the fiscal third quarter, compared to $0.4 million in the previous sequential quarter. The aforementioned revenue growth, along with ongoing cost reduction initiatives, were the primary drivers of gross profit improvement. This improvement was achieved despite expenses of $1.3 million incurred due to planned, ongoing inventory reductions, primarily in ARC’s Colorado MIM operation.
EBITDA from continuing operations was $1.3 million in the fiscal third quarter compared to $0.2 million in the prior sequential quarter. EBITDA was positively impacted by increased revenues and lower costs.
ARC also announced that Alan Quasha, Chairman of the Board of Directors of ARC, will assume the dual roles of Chairman and Chief Executive Officer with immediate effect, replacing the Interim Chief Executive Officer, Drew M Kelley.
ARC’s CEO, Alan Quasha, commented, “While we still have a long way to go, we are making great progress. During our fiscal third quarter, we have seen a marked improvement over our prior quarter. Management’s focus on repositioning our sales team, cost reductions, and inventory efficiency efforts all have begun to show meaningful positive impacts. At the same time, we have begun to see some of our key, strategic customers in the defence and firearm industry return to more normal levels of demand.”
“Despite the improving conditions both internally and externally, management remains focused on returning the company to profitability and improving cash flow generation by driving existing product revenue, increasing operational efficiency, and rightsizing the balance sheet. We expect to see continued progress over the coming quarters,” added Quasha.