Slide Presentation for conference call dated February 8, 2012

Exhibit 99.2

Fiscal 2012 Second Quarter

Financial Results

Conference Call

February 8, 2012

Safe Harbor Statement

Certain statements herein constitute forward-looking statements within the meaning of the Securities

Act of 1933, as amended and the Securities Exchange Act of 1934, as amended. When used herein,

words such as “believe,” “expect,” “anticipate,” “project,” “plan,” “estimate,” “will” or “intend” and similar

words or expressions as they relate to the Company or its management constitute forward-looking

statements. These forward-looking statements reflect our current views with respect to future events

and are based on currently available financial, economic and competitive data and our current

business plans. The Company is under no obligation to, and expressly disclaims any obligation to,

update or alter its forward-looking statements whether as a result of such changes, new information,

subsequent events or otherwise. Actual results could vary materially depending on risks and

uncertainties that may affect our operations, markets, prices and other factors. Important factors that

could cause actual results to differ materially from those forward-looking statements include those

contained under the heading of risk factors and in the management’s discussion and analysis

contained from time-to-time in the Company’s filings with the Securities and Exchange Commission.

Adjusted operating income, adjusted net income and adjusted income per share – basic and diluted

and adjusted earnings before interest, taxes, depreciation and amortization (”adjusted EBIDTA”) are

non-GAAP financial measures that exclude or add the effect of certain gains and charges, including,

for fiscal 2011, imputing taxes at a 36% effective rate. Sparton believes that the presentation of non-

GAAP financial information provides useful supplemental information to management and investors

regarding financial and business trends relating to the Company’s financial results. More detailed

information, including period over period segment comparisons, non-GAAP reconciliation tables and

the reasons management believes non-GAAP measures provide useful information to investors, is

included in the Fiscal 2012 Second Quarter Financial Results press release and Form 10-Q dated

February 7, 2012.

•

Quarter Highlights

•

Fiscal 2012 Second Quarter Results

•

Quarter Segmented Operating Results

•

Liquidity & Capital Resources

•

Sonobuoy Contract Review

•

Siemens Dual Sourcing Impact

•

Outlook

•

Q & A

Today’s Agenda

•

Net

•

Complex Systems gross margin percentage increased to 10.4% of sales from 7.1% in the

prior year quarter and 5.0% in the second quarter of fiscal 2010.

•

Selling and administrative expenses decreased from the prior year quarter.

•

Adjusted earnings per share increased by 80% compared to the prior year quarter.

•

Completed the integration of Byers Peak into the Frederick, Colorado facility.

•

Awarded seven new business programs from new and existing customers during quarter.

•

Adjusted EBITDA increased by 65%.

•

Cash and cash equivalents increased by $3.6 million.

Quarter Highlights

sales increased by 20% from the same quarter last year (up 14%, net of acquisitions).

Consolidated Financial Results

Fiscal 2012 Second Quarter

(Adjusted)

2011

2010

2011

2010

Net Sales

$ 55,370

$ 46,331

$ 55,370

$ 46,331

$ 9,039

Gross Profit

8,736

7,547

8,736

7,547

1,189

15.8%

16.3%

15.8%

16.3%

Selling and Administrative Expense

5,535

5,689

5,535

5,689

154

10.0%

12.3%

10.0%

12.3%

Internal R&D Expense

218

155

218

155

(63)

Amortization of intangible assets

110

Restructuring and Impairment Charges

(59)

Other operationg expense, net

(1)

Operating Income

2,919

1,581

2,860

1,581

1,279

5.3%

3.4%

5.2%

3.4%

Income Before Provision For Income Tax

3,011

1,549

2,825

1,549

1,276

Provision For Income Taxes

1,069

114

1,002

558

(444)

Net Income

$ 1,942

$ 1,435

$ 1,823

$ 991

$ 832

3.5%

3.1%

3.3%

2.1%

Income per Share, Basic and Diluted

$ 0.19

$ 0.14

$ 0.18

$ 0.10

$ 0.08

($ in 000’s, except per share)

(adjusted removes certain gains and charges, including imputing taxes at 36% effective rate)

Quarter Ended Dec 31,

YoY

Variance

(Reported)

(Adjusted)

Operating Results

Medical

SEGMENT

2011

% of Total

2010

% Change

2011

% of Total

2010

% Change

Medical

$ 28,027

51%

$ 25,650

$ 55,487

52%

$ 44,695

24%

Complex Systems

12,549

23%

10,512

19%

25,109

23%

22,840

10%

DSS

18,476

33%

13,179

40%

33,763

32%

30,776

10%

Eliminations

(3,682)

-7%

(3,010)

22%

(7,156)

-7%

(6,213)

15%

Totals

$ 55,370

100%

$ 46,331

20%

$ 107,203

100%

$ 92,098

16%

SEGMENT

2011

GP %

2010

GP %

2011

GP %

2010

GP %

Medical

$ 3,883

14%

$ 3,790

15%

$ 7,497

14%

$ 5,657

13%

Complex Systems

1,306

10%

749

2,394

10%

1,656

DSS

3,547

19%

3,008

23%

7,189

21%

7,260

24%

Totals

$ 8,736

16%

$ 7,547

16%

$ 17,080

16%

$ 14,573

16%

($ in 000’s)

3 Months Ended December 31,

6 Months Ended December 31,

Operating Results

Complex Systems

SEGMENT

2011

% of Total

2010

% Change

2011

% of Total

2010

% Change

Medical

$ 28,027

51%

$ 25,650

$ 55,487

52%

$ 44,695

24%

Complex Systems

12,549

23%

10,512

19%

25,109

23%

22,840

10%

DSS

18,476

33%

13,179

40%

33,763

32%

30,776

10%

Eliminations

(3,682)

-7%

(3,010)

22%

(7,156)

-7%

(6,213)

15%

Totals

$ 55,370

100%

$ 46,331

20%

$ 107,203

100%

$ 92,098

16%

SEGMENT

2011

GP %

2010

GP %

2011

GP %

2010

GP %

Medical

$ 3,883

14%

$ 3,790

15%

$ 7,497

14%

$ 5,657

13%

Complex Systems

1,306

10%

749

2,394

10%

1,656

DSS

3,547

19%

3,008

23%

7,189

21%

7,260

24%

Totals

$ 8,736

16%

$ 7,547

16%

$ 17,080

16%

$ 14,573

16%

($ in 000’s)

3 Months Ended December 31,

6 Months Ended December 31,

Operating Results

Defense & Security Systems

SEGMENT

2011

% of Total

2010

% Change

2011

% of Total

2010

% Change

Medical

$ 28,027

51%

$ 25,650

$ 55,487

52%

$ 44,695

24%

Complex Systems

12,549

23%

10,512

19%

25,109

23%

22,840

10%

DSS

18,476

33%

13,179

40%

33,763

32%

30,776

10%

Eliminations

(3,682)

-7%

(3,010)

22%

(7,156)

-7%

(6,213)

15%

Totals

$ 55,370

100%

$ 46,331

20%

$ 107,203

100%

$ 92,098

16%

SEGMENT

2011

GP %

2010

GP %

2011

GP %

2010

GP %

Medical

$ 3,883

14%

$ 3,790

15%

$ 7,497

14%

$ 5,657

13%

Complex Systems

1,306

10%

749

2,394

10%

1,656

DSS

3,547

19%

3,008

23%

7,189

21%

7,260

24%

Totals

$ 8,736

16%

$ 7,547

16%

$ 17,080

16%

$ 14,573

16%

($ in 000’s)

3 Months Ended December 31,

6 Months Ended December 31,

Liquidity & Capital Resources

25,588

22,989

1,917

1,796

1,735

0.36

0.42

0.03

0.02

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

0.45

25,000

50,000

Jun-08

Jun-09

Jun-10

June-11

Dec-11

($ in '000)

Dec-10

Mar-11

Jun-11

Sep-11

Dec-11

Cash and equivalents

29,941

26,119

24,550

26,984

30,610

LOC Availability

17,389

17,497

17,541

17,533

17,290

Total

47,330

43,616

42,091

44,517

47,900

($ in '000)

Dec-10

Mar-11

Jun-11

Sep-11

Dec-11

Credit Revolver

IRB (Ohio)

1,856

1,826

1,796

1,766

1,735

Total

1,856

1,826

1,796

1,766

1,735

($ in '000)

Dec-10

Mar-11

Jun-11

Sep-11

Dec-11

Net Inventory

35,076

40,282

38,752

41,816

38,545

Cash Availability

Debt

Inventory

Sonobuoy Contract Review

GFY2009

GFY2010

GFY2011

GFY2012

ADAR

19,295

14,405

10,046

Proj March Award

Q125

Proj March Award

Q36

2,143

1,885

2,135

Q53

20,952

16,660

21,832

18,068

Q62

13,174

10,048

7,812

4,721

Total

53,421

43,256

41,575

24,923

SFY2009

SFY2010

SFY2011

SFY2012 YTD

U.S. Navy

24,618

35,975

52,632

14,243

Foreign

10,648

13,853

4,843

14,174

Total

35,266

49,828

57,475

28,417

GFY = Government Fiscal Year; SFY = Sparton Fiscal Year

($ in thousands)

U.S. Navy Sonobuoy Contracts

Sonobuoy Revenue

Siemens Dual Sourcing Impact

2nd Half

FY2011

1st Half

FY2012

Variance

Siemens

Dual Sourced Programs

15,472

7,524

(7,948)

Other Programs

4,873

4,673

(200)

Siemens Total

20,345

12,197

(8,148)

Medical Other

32,989

43,290

10,301

Medical Total

53,334

55,487

2,153

($ in thousands)

•

Focus on sustained profitability

–

Continue margin improvements in Complex Systems

–

Backfill Medical revenue losses with new business

–

Offset reduced U.S. Navy sonobuoy contracts with foreign sonobuoy sales

–

Continue improvements in operating performance through lean and quality efforts

•

Implementation of the strategic growth plan

–

Continue refining the new business development process to increase the new business opportunity

funnel and win more new business

–

Continue to target the right trade show venues

–

Continue to invest in internal R&D for new product introductions

–

Challenge the technical staff to develop new & innovative ideas

–

Continue to look at complementary and compatible acquisitions

•

Continue to participate in upcoming trade shows and investor relations events

Fiscal 2012 Outlook

Q & A