AURORA, CO -- Advanced Circuits tallied third-quarter sales of $21.6 million, bringing its year-to-date total to $64.9 million.

The printed circuit board manufacturer's sales were down 2.5% for the quarter and 2.7% for the year through September.

EBITDA decreased 4.9% year-over-year, reflecting lower sales mainly due to the overall economic slowdown, partially offset by growth and assembly sales. Third quarter EBITDA margins fell 80 basis points compared to the year ago period. Adjusted EBITDA was $20.1 million for the three-month period, down from $21.3 million a year ago. Advanced Circuits has an EBITDA margin of about 30%.

Company executives are pointing to a slower defense business for the drop in sales. "[T]he business has been a kind of flattish to down a little bit. We do think that eventually defense will come back. And there is a market for this business that is domestic and it is the higher margin, higher value [products] that we like," said Alan Offenberg, CEO of Compass Diversified Holdings, the parent company of Advanced Circuits.

The company said it expects to be slightly less profitable than last year. In 2015, Advanced Circuits had sales of $87.5 million and adjusted EBITDA of $27.6 million.

"Based on ACI's results to date, we believe full-year 2016 earnings will be slightly below 2015's full-year earnings," Offenberg said.

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