SigmaTron International, Inc. Reports Third Quarter Financial Results for Fiscal 2018
March 14 2018 - 10:45AM
SigmaTron International, Inc. (NASDAQ:SGMA), an electronic
manufacturing services company, today reported revenues and
earnings for the third quarter ended January 31, 2018.
Revenues increased to $65.7 million for the third quarter of
fiscal 2018 from $62.2 million for the same quarter in the prior
year. Net income for the quarter was $31,338 compared to a
net loss of $47,852 for the same period in the prior year.
Basic and diluted earnings per share were each $0.01 for the
quarter ended January 31, 2018, compared to basic and diluted loss
per share each $0.01 for the same quarter in fiscal 2017.
For the nine months ended January 31, 2018, revenues increased
to $209.9 million compared to $187.5 million for the same period in
the prior year. Net income for the nine month period ended
January 31, 2018 was $1,150,335 compared to net income of $132,040
for the same period in the prior year. Basic and diluted
earnings per share for the nine months ended January 31, 2018, were
each $0.27, compared to basic and diluted earnings per share each
of $0.03 for the nine months ended January 31, 2017.
Commenting on SigmaTron’s third quarter, fiscal 2018 results,
Gary R. Fairhead, President, Chief Executive Officer and Chairman
of the Board, said, “I’m disappointed to report a small profit for
the third quarter. As stated in our second quarter press
release we saw some slowing trends in revenue that negatively
impacted our results. This is the same thing we saw last year
for the third quarter. The third quarter has both the holiday
period and companies evaluating their inventory levels while making
adjustments to start the new year. Making the situation worse
was the fact that component shortages continued through the third
quarter and will likely continue through the fourth quarter.
This has the dual effect of lowering revenue and increasing
inventory as we wait for parts to arrive. The component
shortages have been driven by the overall stronger economy and
increased emphasis on electric vehicles and server farms as well as
cell phones. It takes a significant period of time to
increase semiconductor manufacturing capacity so we expect to
continue to face headwinds in the component marketplace during much
if not all of 2018.
On a positive note, the new programs that I referred to in our
prior press release are beginning production and they will add
additional revenue at reasonable margins going forward. We
continue to see more and more new opportunities from both current
customers and prospective customers as overall the economy seems to
be heading in a positive direction.”
Headquartered in Elk Grove Village, IL, SigmaTron International,
Inc. is an electronic manufacturing services company that provides
printed circuit board assemblies and completely assembled
electronic products. SigmaTron International, Inc. operates
manufacturing facilities in Elk Grove Village, Illinois; Acuna,
Chihuahua, and Tijuana Mexico; Union City, California; Suzhou,
China, and Ho Chi Minh City, Vietnam. SigmaTron
International, Inc. maintains engineering and materials sourcing
offices in Elgin, Illinois and Taipei, Taiwan.
Note: This press release contains
forward-looking statements. Words such as “continue,”
“anticipate,” “will,” “expect,” “believe,” “plan,” and similar
expressions identify forward-looking statements. These
forward-looking statements are based on the current expectations of
the Company. Because these forward-looking statements involve
risks and uncertainties, the Company’s plans, actions and actual
results could differ materially. Such statements should be
evaluated in the context of the risks and uncertainties inherent in
the Company’s business including, but not necessarily limited to,
the Company’s continued dependence on certain significant
customers; the continued market acceptance of products and services
offered by the Company and its customers; pricing pressures from
the Company’s customers, suppliers and the market; the activities
of competitors, some of which may have greater financial or other
resources than the Company; the variability of the Company’s
operating results; the results of long-lived assets and goodwill
impairment testing; the variability of the Company’s customers’
requirements; the availability and cost of necessary components and
materials; the ability of the Company and its customers to keep
current with technological changes within its industries;
regulatory compliance, including conflict minerals; the continued
availability and sufficiency of the Company’s credit arrangements;
changes in U.S., Mexican, Chinese, Vietnamese or Taiwanese
regulations affecting the Company’s business; the turmoil in the
global economy and financial markets; the stability of the U.S.,
Mexican, Chinese, Vietnamese and Taiwanese economic, labor and
political systems and conditions; currency exchange fluctuations;
and the ability of the Company to manage its growth. These
and other factors which may affect the Company’s future business
and results of operations are identified throughout the Company’s
Annual Report on Form 10-K, and as risk factors, may be detailed
from time to time in the Company’s filings with the Securities and
Exchange Commission. These statements speak as of the date of
such filings, and the Company undertakes no obligation to update
such statements in light of future events or otherwise unless
otherwise required by law.
Financial tables to follow…
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CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
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Three Months |
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Three Months |
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Nine Months |
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Nine Months |
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Ended |
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Ended |
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Ended |
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Ended |
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January 31, |
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January 31, |
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January 31, |
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January 31, |
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2018 |
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2017 |
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2018 |
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2017 |
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Net sales |
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$65,733,723 |
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$62,164,167 |
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$209,917,090 |
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$187,509,084 |
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Cost of products
sold |
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59,836,383 |
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56,477,208 |
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190,159,128 |
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170,232,866 |
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Gross profit |
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5,897,340 |
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5,686,959 |
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19,757,962 |
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17,276,218 |
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Selling and
administrative expenses |
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5,637,680 |
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5,353,020 |
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17,192,099 |
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16,268,296 |
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Operating income |
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259,660 |
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333,939 |
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2,565,863 |
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1,007,922 |
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Other expense |
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375,532 |
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244,903 |
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949,436 |
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665,412 |
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(Loss) income from
operations before income tax |
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(115,872) |
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89,036 |
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1,616,427 |
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342,510 |
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Income tax (benefit)
expense |
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(147,210) |
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136,888 |
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466,092 |
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210,470 |
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Net income (loss) |
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$31,338 |
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($47,852) |
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$1,150,335 |
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$132,040 |
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Net income (loss) per
common share - basic |
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$0.01 |
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($0.01) |
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$0.27 |
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$0.03 |
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Net income (loss) per
common share - assuming dilution |
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$0.01 |
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($0.01) |
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$0.27 |
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$0.03 |
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Weighted average number
of common equivalent |
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shares
outstanding - assuming dilution |
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4,356,509 |
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4,186,813 |
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4,325,197 |
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4,223,395 |
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CONDENSED
CONSOLIDATED BALANCE SHEETS |
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January 31, |
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April
30, |
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2018 |
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2017 |
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Assets: |
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Current assets |
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$121,930,279 |
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$109,031,913 |
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Machinery and
equipment-net |
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35,734,560 |
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33,008,714 |
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Deferred income
taxes |
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282,979 |
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236,087 |
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Intangibles |
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3,885,676 |
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4,213,235 |
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Goodwill |
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3,222,899 |
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3,222,899 |
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Other assets |
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1,075,961 |
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1,472,816 |
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Total assets |
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$166,132,354 |
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$151,185,664 |
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Liabilities and
stockholders' equity: |
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Current
liabilities |
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$56,614,176 |
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$55,611,214 |
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Long-term
obligations |
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46,316,022 |
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33,702,305 |
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Stockholders'
equity |
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63,202,156 |
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61,872,145 |
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Total liabilities and
stockholders' equity |
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$166,132,354 |
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$151,185,664 |
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For Further Information Contact:SigmaTron International,
Inc.Linda K. Frauendorfer1-800-700-9095
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