SigmaTron International, Inc. Reports First Quarter Financial Results for Fiscal 2020
September 11 2019 - 9:00AM
SigmaTron International, Inc. (NASDAQ: SGMA), an electronic
manufacturing services company, today reported revenues and
earnings for the fiscal quarter ended July 31, 2019.
Revenues increased to $74.0 million in the first quarter of
fiscal 2020 from $71.4 million for the same quarter in the prior
year. Net income increased to $361,025 for the quarter ended
July 31, 2019 compared to a net loss of $526,607 for the same
period in the prior year. Basic and diluted earnings per
share for the quarter ended July 31, 2019, were each $0.09,
compared to basic and diluted loss per share of $0.12 each for the
same quarter ended July 31, 2018.
Commenting on SigmaTron’s first quarter fiscal 2020 results,
Gary R. Fairhead, President, Chief Executive Officer and Chairman
of the Board, said, “I’m pleased to report profitable results for
our first quarter of fiscal 2020. This follows our profitable
fourth quarter of fiscal 2019 and is another indication that we are
heading in the right direction. Our financial results are
primarily driven by an increased revenue level combined with
improved pricing and productivity.
“Based on our current backlog, we expect this trend to continue
going into the second quarter of fiscal 2020, which historically
has been a good quarter for the Company. However, as you have
read consistently in our press releases, uncertainty and volatility
continue in our industry. While there are many factors
driving this uncertainty, the trade wars remain the primary factor
and the trade war with China the primary driver. We continue
to closely manage inventory levels with a focus on accuracy of
customers’ forecasts and lead-times for components.
“As mentioned in our last press release, our projection for
current customer sales remains positive which we believe will
result in continued growth. Additionally, the Company is
launching products with new customers during our second quarter
which should provide significant growth for calendar 2020.
All of these positive developments support our cautious optimism
for fiscal 2020, understanding that conditions can change quickly
and currently are difficult to forecast.”
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; the impact of tariffs; 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…
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months |
|
Three
Months |
|
|
Ended |
|
Ended |
|
|
July
31, |
|
July
31, |
|
|
2019 |
|
2018 |
|
|
|
|
|
Net
sales |
|
$74,009,981 |
|
$71,414,057 |
|
|
|
|
|
|
Cost of products sold |
|
|
67,049,649 |
|
|
65,625,001 |
|
|
|
|
|
|
Gross
profit |
|
|
6,960,332 |
|
|
5,789,056 |
|
|
|
|
|
|
Selling and
administrative expenses |
|
|
5,827,326 |
|
|
5,934,116 |
|
|
|
|
|
|
Operating
income (loss) |
|
|
1,133,006 |
|
|
(145,060 |
) |
|
|
|
|
|
Other
expense |
|
|
524,866 |
|
|
578,553 |
|
|
|
|
|
|
Income
(loss) before income tax |
|
|
608,140 |
|
|
(723,613 |
) |
|
|
|
|
|
Income tax
expense (benefit) |
|
|
247,115 |
|
|
(197,006 |
) |
|
|
|
|
|
Net income
(loss) |
|
$361,025 |
|
($526,607 |
) |
|
|
|
|
|
|
|
|
|
|
Net income
(loss) per common share - basic |
|
$0.09 |
|
($0.12 |
) |
|
|
|
|
|
Net income (loss) per common share - assuming dilution |
$0.09 |
|
($0.12 |
) |
|
|
|
|
|
|
|
|
|
|
Weighted
average number of common equivalent |
|
|
|
|
shares
outstanding - assuming dilution |
|
|
4,241,883 |
|
|
4,223,657 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
|
|
|
|
|
|
|
|
|
|
July
31, |
|
April 30, |
|
|
|
2019 |
|
|
2019 |
|
|
|
|
|
|
Assets: |
|
|
|
|
|
|
|
|
|
Current
assets |
|
$113,118,143 |
|
$123,545,289 |
|
|
|
|
|
|
Machinery
and equipment-net |
|
|
32,681,869 |
|
|
33,232,769 |
|
|
|
|
|
|
Deferred
income taxes |
|
|
384,022 |
|
|
384,022 |
|
Intangibles |
|
|
2,621,940 |
|
|
2,713,360 |
|
Other
assets |
|
|
6,982,585 |
|
|
1,589,325 |
|
|
|
|
|
|
Total
assets |
|
$155,788,559 |
|
$161,464,765 |
|
|
|
|
|
|
Liabilities
and stockholders' equity: |
|
|
|
|
|
|
|
|
|
Current
liabilities |
|
$48,760,967 |
|
$55,606,766 |
|
|
|
|
|
|
Long-term
obligations |
|
|
48,379,123 |
|
|
47,570,550 |
|
|
|
|
|
|
Stockholders' equity |
|
|
58,648,469 |
|
|
58,287,449 |
|
|
|
|
|
|
Total
liabilities and stockholders' equity |
|
$155,788,559 |
|
$161,464,765 |
|
|
|
|
|
|
For Further Information Contact:SigmaTron International,
Inc.Linda K. Frauendorfer1-800-700-9095
Sigmatron (NASDAQ:SGMA)
Historical Stock Chart
From Mar 2024 to Apr 2024
Sigmatron (NASDAQ:SGMA)
Historical Stock Chart
From Apr 2023 to Apr 2024