Sales for the fiscal 2019 second quarter were $78,107,000, compared to $56,546,000 for the same period last year. The 38.1% increase in fiscal 2019 second quarter net sales was primarily due to the contribution from the Veth Propulsion acquisition, improved demand for the Company’s 8500 series transmission systems and aftermarket components from North American fracking customers, and improved activity in the global industrial and commercial marine markets. Year-to-date sales increased 50.4% to $152,796,000, compared to $101,611,000 for the fiscal 2018 first half.
Gross profit for the fiscal 2019 second quarter was 33.4%, compared to 32.2% for the same period last year. The 120-basis point increase in gross profit percent for the fiscal 2019 second quarter was primarily due to higher volumes, a more profitable mix of revenues and improved operating efficiencies. Year-to-date, gross margin was 32.8% compared to 31.7% for the fiscal 2018 first half.
For the fiscal 2019 second quarter, marketing, engineering and administrative (ME&A) expenses increased $3,839,000 to $18,909,000, compared to $15,070,000 for the fiscal 2018 second quarter. The 25.5% increase in ME&A expenses in the quarter was primarily due to the addition of Veth, including the amortization of purchase accounting intangibles of $539,000. Other changes included increased professional fees, salaries, travel and marketing expenses related to the Veth acquisition. As a percent of revenues, ME&A expenses fell to 24.2% for the fiscal 2019 second quarter, compared to 26.7% for the same period last fiscal year. Year-to-date, ME&A expenses were $37,894,000, compared to $28,464,000 for the fiscal 2018 first half. As a percent of revenues, ME&A expenses fell to 24.8% for the fiscal 2019 first half, compared to 28.0% for the same period last fiscal year.
Twin Disc recorded restructuring charges of $434,000 in the fiscal 2019 second quarter, compared to restructuring charges of $831,000 in the same period last fiscal year. Restructuring activities during the fiscal 2019 second quarter related primarily to ongoing cost reduction and productivity actions at the Company’s European operations. Year-to-date, the Company recorded restructuring charges of $607,000, compared to $2,049,000 for the same period last fiscal year.
The fiscal 2019 second quarter tax rate of 26.2% reflects the impact of the U.S. Tax Cuts and Jobs Act signed in December 2017. The fiscal 2018 second quarter tax expense reflects the impact of the implementation of the Tax Act, which resulted in a non-cash tax expense of $4.6 million due to a remeasurement of deferred tax assets and liabilities due to the revised rate structure. Similarly, a rate change in Belgium resulted in a $0.4 million non-cash tax expense due to the remeasurement of deferred tax assets and liabilities.
Net income attributable to Twin Disc for the fiscal 2019 second quarter was $4,073,000, or $0.31 per diluted share, compared to a net loss attributable to Twin Disc of ($4,113,000), or ($0.36) per share, for the fiscal 2018 second quarter. Year-to-date, the net income attributable to Twin Disc was $6,935,000, or $0.56 per diluted share, compared to a net loss attributable to Twin Disc of ($722,000), or ($0.06) per share for the fiscal 2018 first half.
Earnings income before interest, taxes, depreciation and amortization (EBITDA)* were $9,104,000 for the fiscal 2019 second quarter, compared to $3,514,000 for the fiscal 2018 second quarter. For the fiscal 2019 first half, EBITDA was $17,090,000, compared to $3,955,000 for the fiscal 2018 comparable period.
Twin Disc
ir.twindisc.com