SigmaTron International, Inc. (NASDAQ: SGMA), an electronic
manufacturing services company, today reported revenues and
earnings for the third quarter ended January 31, 2021.
Revenues increased to $71.5 million for the third quarter of
fiscal 2021 from $67.4 million for the same quarter in the prior
year. Net income for the quarter was $249,268 compared to a net
loss of $217,039 for the same period in the prior year. Basic and
diluted earnings per share were each $0.06 for the quarter ended
January 31, 2021, compared to basic and diluted loss per share each
of $0.05 for the same quarter in fiscal 2020.
For the nine months ended January 31, 2021, revenues decreased
to $201.7 million compared to $216.3 million for the same period in
the prior year. Net loss for the nine month period ended January
31, 2021 was $24,540 compared to net income of $805,169 for the
same period in the prior year. Basic and diluted loss per share for
the nine months ended January 31, 2021, were each $0.01, compared
to basic and diluted earnings per share each of $0.19 for the nine
months ended January 31, 2020.
Commenting on SigmaTron’s third quarter, fiscal 2021 results,
Gary R. Fairhead, President, Chief Executive Officer, and Chairman
of the Board, said, “SigmaTron’s third quarter was both an
interesting and successful quarter. As previously announced,
SigmaTron changed its primary lender from U.S. Bank to J.P. Morgan
Chase on January 29, 2021. We are excited about the new
relationship and believe that it will better position us for the
opportunities we see in front of us, both with our electronic
manufacturing services core business and our anticipated
acquisition of Wagz.
“The change of banks resulted in a significant hit of
approximately $360,000 to our third quarter pre-tax income.
However, even with that expense, I’m pleased to report a pre-tax
profit for the third quarter of fiscal 2021 and a pre-tax profit
for the first nine months of fiscal 2021. After the
horrendous first quarter we had, when our customers and the Company
were impacted by COVID and our revenue was significantly reduced,
we are pleased to have reached this milestone.
“In addition, heading into the fourth quarter of fiscal 2021 the
Company finds itself with a record backlog going forward. With that
record backlog, we find ourselves facing a new set of challenges
that you may have heard about in the national media and I referred
to in our press release dated December 10, 2020. Tremendous
demand for electronic components and, in particular, semiconductor
products has accelerated beyond what we were seeing even then and
we find the marketplace, in terms of our supply chain,
volatile. Some parts are on allocation. Many parts have
had price increases. In some cases, suppliers missed their
shipping commitments.
“Much has been made of the effect of this component marketplace
on manufacturing, especially in the automobile industry, with
factories being shut down due to the lack of supply. We are
working closely with our supply chain and our customers when these
situations occur but at this time there is every indication that
this will continue through the balance of calendar 2021.
“Also, we were negatively affected in February by the winter
storms that paralyzed Texas and parts of Mexico. Our largest
operation in Acuna/Del Rio was shut down for a week and our
operation in Chihuahua for two days. Both operations returned to
normal later in the month.
“In addition to the record backlog, we have several new
customers that we are starting to work with. We also have a
record number of new opportunities going forward. Uncertainty
remains regarding the future relationship between China and the
United States so we will have to wait and see how that plays itself
out. We have continued to make progress on our proposed
acquisition of Wagz, Inc. and are even more excited about the
opportunities we believe it will bring to both companies.
“While we still have many challenges in our industry, in
general, we see several strong quarters ahead of us and we should
have good momentum closing out fiscal 2021 and heading into fiscal
2022.”
About SigmaTron International, Inc.
Headquartered in Elk Grove Village, Illinois, 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 Biên Hòa City, Vietnam. SigmaTron International,
Inc. maintains engineering and materials sourcing offices in Elgin,
Illinois and Taipei, Taiwan.
Forward-Looking Statements
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 direct and indirect 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 impairment testing; the ability to achieve the
expected benefits of acquisitions; the collection of aged account
receivables; 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,
including the phase-out of LIBOR; the ability to meet the Company’s
financial covenant; 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 spread of
COVID-19 (commonly known as “Coronavirus”) which has threatened the
Company’s financial stability by causing a decrease in consumer
revenues, caused a disruption to the Company’s global supply chain,
caused plant closings or reduced operations thus reducing output at
those facilities; 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, |
|
January
31, |
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|
January
31, |
|
January
31, |
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2021 |
|
2020 |
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|
2021 |
|
2020 |
|
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|
Net
sales |
|
|
71,531,348 |
|
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|
67,407,268 |
|
|
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|
201,674,728 |
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|
216,272,561 |
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|
Cost of
products sold |
|
|
65,618,649 |
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|
61,885,491 |
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|
184,730,296 |
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|
196,660,966 |
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|
Gross
profit |
|
|
5,912,699 |
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|
5,521,777 |
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|
16,944,432 |
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19,611,595 |
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Selling and
administrative expenses |
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|
5,212,629 |
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|
5,469,654 |
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|
15,693,893 |
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|
16,997,268 |
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|
Operating
income |
|
|
700,070 |
|
|
|
52,123 |
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|
|
|
1,250,539 |
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|
2,614,327 |
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Other
expense |
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|
476,712 |
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|
371,893 |
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|
1,078,880 |
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|
1,348,668 |
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|
Income
(loss) before income tax |
|
|
223,358 |
|
|
|
(319,770 |
) |
|
|
|
171,659 |
|
|
|
1,265,659 |
|
|
|
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|
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|
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|
Income tax
(benefit) expense |
|
|
(25,910 |
) |
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|
(102,731 |
) |
|
|
|
196,199 |
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|
460,490 |
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|
Net income
(loss) |
|
$249,268 |
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|
($217,039 |
) |
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($24,540 |
) |
|
$805,169 |
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Net income
(loss) per common share - basic |
|
$0.06 |
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($0.05 |
) |
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|
($0.01 |
) |
|
$0.19 |
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|
Net income (loss) per common share - assuming dilution |
$0.06 |
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|
($0.05 |
) |
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|
($0.01 |
) |
|
$0.19 |
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Weighted
average number of common equivalent |
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shares outstanding - assuming dilution |
|
|
4,310,290 |
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|
4,242,508 |
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|
4,255,334 |
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|
4,260,022 |
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CONDENSED CONSOLIDATED BALANCE SHEETS |
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January
31, |
|
April 30, |
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|
2021 |
|
2020 |
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Assets: |
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|
Current
assets |
|
|
125,864,505 |
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|
$130,616,797 |
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|
Machinery
and equipment-net |
|
|
33,312,831 |
|
|
|
33,935,760 |
|
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|
|
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|
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|
|
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|
Deferred
income taxes |
|
|
284,434 |
|
|
|
284,435 |
|
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|
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|
Intangibles |
|
|
2,085,137 |
|
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|
2,350,949 |
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Other
assets |
|
|
8,387,575 |
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|
8,891,090 |
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|
Total
assets |
|
$169,934,482 |
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|
$176,079,031 |
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|
Liabilities
and stockholders' equity: |
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|
Current
liabilities |
|
|
67,481,312 |
|
|
$70,048,041 |
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|
Long-term
obligations |
|
|
43,568,970 |
|
|
|
47,155,191 |
|
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|
Stockholders' equity |
|
|
58,884,200 |
|
|
|
58,875,799 |
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|
Total
liabilities and stockholders' equity |
|
$169,934,482 |
|
|
$176,079,031 |
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|
For Further Information Contact:SigmaTron International,
Inc.Linda K. Frauendorfer1-800-700-9095
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