SigmaTron International, Inc. Reports First Quarter Financial Results for Fiscal 2022
September 10 2021 - 11:20AM
SigmaTron International, Inc. (NASDAQ: SGMA), an electronic
manufacturing services company, today reported revenues and
earnings for the fiscal quarter ended July 31, 2021.
Revenues increased to $85.7 million in the first quarter of
fiscal 2022 from $60.5 million for the same quarter in the prior
year. Net income for the first quarter ended July 31, 2021, was
$8,796,716 compared to a net loss of $900,666 for the same period
in the prior year. Basic and diluted earnings per share for the
quarter ended July 31, 2021, were $2.06 and $2.02, respectively,
compared to basic and diluted loss per share of $0.21 each for the
same quarter ended July 31, 2020.
Commenting on SigmaTron’s first quarter, fiscal 2022 results,
Gary R. Fairhead, President, Chief Executive Officer and Chairman
of the Board, said, “I am pleased to report an excellent
quarter to start fiscal 2022. Our pre-tax profits were
$9,553,661 and included the forgiveness of our Small Business
Administration Paycheck Protection Program Loan (“PPP Loan”) in the
amount of $6,282,973 during the quarter, which was announced on
July 13, 2021. Excluding the forgiveness of the PPP Loan, we
recorded pre-tax profits of $3,270,688 and revenue of $85.7
million. The quarterly operating results and revenues are a
record for SigmaTron.
“As previously reported, our backlog had hit an all time high
and these results are driven by the significant increase we have
experienced in topline growth. Each of our customers was
affected differently by the COVID pandemic. Some experienced
significant and unanticipated increases in demand while others are
still recovering. However, it does seem that the
implementation of the vaccine program has unleashed some pent-up
demand from the prior year and our customers are benefitting.
The ability to achieve this quarterly revenue number, given the
electronic component marketplace and the continuing pandemic
challenges, is a testimony to what an excellent job our operating
teams were able to execute during the first quarter.
“While our backlog remains strong, we continue to face
continuing challenges on the supply chain side. Semiconductor
products, in particular, remain difficult to locate and often are
purchased at a premium. We have seen several customers start
to push out orders, but other customers continue to ramp up and
push for more product. It’s difficult to predict how this will sort
itself out going forward. The one thing that seems probable is that
the shortage of certain components will be with us through calendar
2022 and perhaps part or all of 2023. All of this, of course,
is dependent upon a continuing strong economy, which we have
experienced so far during calendar 2021. The continuing trade
war with China also creates uncertainty and it’s hard to predict
how that will play itself out as well. On the customer side,
several of our new customers have started to ramp up and we see our
revenue growing with them going forward, especially in the safety
and renewable energy markets.
“Finally, on July 21, 2021, we signed a definitive Agreement and
Plan of Merger to acquire Wagz, Inc., a privately-held pet
technology company, in a merger transaction. On September 8, 2021 a
proxy statement was mailed to stockholders announcing a Special
Meeting of Stockholders to be held on September 29, 2021 with
regard to the transaction for submission to our stockholders and
hope to close the transaction shortly thereafter. We continue to
believe the upside is significant for the stockholders of
SigmaTron.”
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 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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Ended |
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Ended |
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July 31, |
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July 31, |
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2021 |
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2020 |
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Net sales |
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85,739,434 |
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60,524,956 |
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Cost of products sold |
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76,156,956 |
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56,252,765 |
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Gross profit |
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9,582,478 |
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4,272,191 |
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Selling and administrative expenses |
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6,111,015 |
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5,059,525 |
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Operating income (loss) |
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3,471,463 |
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(787,334 |
) |
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Gain on extinguishment of long-term debt |
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(6,282,973 |
) |
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- |
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Other expense |
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200,775 |
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334,166 |
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Income (loss) before income tax |
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9,553,661 |
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(1,121,500 |
) |
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Income tax expense (benefit) |
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756,945 |
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(220,834 |
) |
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Net income (loss) |
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$ |
8,796,716 |
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$ |
(900,666 |
) |
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Net income (loss) per common share - basic |
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$ |
2.06 |
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$ |
(0.21 |
) |
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Net income (loss) per common share - assuming dilution |
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$ |
2.02 |
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$ |
(0.21 |
) |
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Weighted average number of common equivalent |
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shares outstanding - assuming dilution |
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4,353,912 |
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4,250,986 |
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CONDENSED CONSOLIDATED BALANCE SHEETS |
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July 31, |
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April 30, |
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2021 |
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2021 |
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Assets: |
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Current assets |
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164,721,162 |
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$ |
141,553,863 |
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Machinery and equipment-net |
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35,328,032 |
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34,186,918 |
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Deferred income taxes |
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1,685,937 |
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1,647,143 |
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Intangibles |
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1,909,627 |
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1,996,749 |
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Other assets |
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13,943,235 |
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14,788,734 |
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Total assets |
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$ |
217,587,993 |
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$ |
194,173,407 |
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Liabilities and stockholders' equity: |
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Current liabilities |
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97,583,914 |
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$ |
85,315,249 |
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Long-term obligations |
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50,624,910 |
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48,309,097 |
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Stockholders' equity |
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69,379,169 |
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60,549,061 |
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Total liabilities and stockholders' equity |
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$ |
217,587,993 |
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$ |
194,173,407 |
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For Further Information Contact:SigmaTron International,
Inc.Linda K. Frauendorfer1-800-700-9095
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