SigmaTron International, Inc. (NASDAQ: SGMA), an electronic
manufacturing services company, today reported revenues and
earnings for the fiscal year ended April 30, 2021. Revenues
decreased to $277.7 million in fiscal year 2021 from $281.0 million
in the prior fiscal year. Net income increased to $1,541,019 in
fiscal year 2021 compared to a net income of $443,102 in fiscal
year 2020. Basic and diluted earnings per share for the fiscal year
ended April 30, 2021 were $0.36 each, compared to basic and diluted
earnings per share of $0.10 each in fiscal year 2020.
For the fourth quarter of fiscal year 2021, revenues increased
to $76.0 million compared to $64.8 million for the same quarter in
the prior fiscal year. Net income increased to $1,565,559 in the
fourth fiscal quarter of 2021 compared to a net loss of $362,067 in
fiscal year 2020. Basic and diluted earnings per share for the
fiscal year 2021 fourth quarter were $0.37 and $0.36, respectively,
compared to basic and diluted loss per share of $0.09 each for the
same period of fiscal year 2020.
Commenting on SigmaTron’s results for both the fourth quarter
and fiscal year ending April 30, 2021, Gary R. Fairhead, President,
Chief Executive Officer, and Chairman of the Board, said,
“SigmaTron is pleased to report a very strong fourth quarter for
fiscal 2021. We posted pre-tax profits of $1.9 million on
revenue of $76.0 million. This is one of the strongest
quarters in recent memory for SigmaTron. It continued the
positive trend that we saw starting in our second quarter and
accelerating in our third quarter of fiscal 2021. Due to the
strong results for the fourth quarter, I am also pleased to report
that SigmaTron posted pre-tax profits of $2.1 million on revenue of
$277.7 million for the fiscal year. These results were
achieved in spite of a horrible first quarter which was at the
height of the COVID pandemic for SigmaTron.
“These results were obtained after incurring significant
non-reoccurring expenses during the year. These were related
to changing our bank, COVID related expenses including
reconfiguring our operations to provide a safe environment, and
expenses related to our proposed acquisition of Wagz, Inc.
Furthermore, the continuing electronic component shortages in the
marketplace have certainly led to a lower productivity on occasion,
as the marketplace has remained volatile. Putting all that
together and remembering where we were a year ago, it is satisfying
to end the year on such a strong note and to have a profitable
fiscal 2021.
“Going forward, our backlog remains at an all-time high with
demand staying strong across the vast majority of markets and
customers we serve. That’s the good news. Furthermore,
we have several new customers of significance that are starting in
the first half of fiscal 2022 that are expected to result in
continued revenue growth like we experienced in the fourth quarter
of fiscal 2021. The bad news is that the electronic component
marketplace remains volatile in terms of both supply and price and
it could well negatively impact our ability to ship the backlog on
time. This is a problem faced by almost every customer and
competitor in the EMS industry, and we do not see it getting better
anytime soon. Our supply chain and operations teams have
risen to the occasion day after day but challenges continue for the
foreseeable future and it would seem they will remain for fiscal
2022. We do not see any signs of weakening in the
semiconductor demand across all markets, nor do we see any
additional capacity coming online anytime soon.
“On July 13, 2021 we announced that we received full forgiveness
of our Small Business Administration (“SBA”) Paycheck Protection
Program (“PPP”) loan in the amount of approximately $6.3 million,
which we had received pursuant to the Coronavirus Aid, Relief and
Economic Security Act (the “CARES Act”) on April 23, 2020.
“Regarding the acquisition of Wagz, we signed an Agreement on
July 19, 2021 and expect to close the transaction by September 30,
2021. Please refer to our press release dated July 21, 2021. A
proxy will be sent to our shareholders in the second fiscal quarter
of 2022. We remain excited about the opportunities we believe
the acquisition will bring to SigmaTron and its shareholders.
“As always, I want to thank our customers, supply chain, our
bank, JPMorgan Chase, our Board of Directors and our dedicated
employees who have persevered during this most difficult
year. In many cases, I believe the challenges raised by the
pandemic have created stronger relationships with both our
customers and our suppliers, which is rewarding in and of
itself. I’m pleased that we were able to report a profit for
the entire fiscal year after the way the year started.”
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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Twelve
Months |
Twelve
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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April
30, |
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April
30, |
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April
30, |
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April
30, |
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2021 |
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2020 |
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2021 |
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2020 |
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Net
sales |
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76,043,944 |
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64,769,921 |
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277,718,672 |
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281,042,482 |
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Cost of
products sold |
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68,036,179 |
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59,276,626 |
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252,766,475 |
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255,937,592 |
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Gross
profit |
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8,007,765 |
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5,493,295 |
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24,952,197 |
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25,104,890 |
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Selling and
administrative expenses |
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5,868,520 |
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5,295,041 |
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21,562,413 |
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22,292,309 |
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Operating
income |
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2,139,245 |
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198,254 |
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3,389,784 |
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2,812,581 |
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Other
expense |
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212,144 |
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370,779 |
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1,291,024 |
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1,719,447 |
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Income
(loss) before income tax |
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1,927,101 |
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(172,525 |
) |
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2,098,760 |
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1,093,134 |
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Income tax
expense |
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361,542 |
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189,542 |
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557,741 |
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650,032 |
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Net income
(loss) |
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$1,565,559 |
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($362,067 |
) |
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$1,541,019 |
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$443,102 |
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Net income
(loss) per common share - basic |
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$0.37 |
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($0.09 |
) |
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$0.36 |
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$0.10 |
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Net income (loss) per common share - assuming dilution |
$0.36 |
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($0.09 |
) |
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$0.36 |
|
$0.10 |
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Weighted
average number of common equivalent |
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shares outstanding - assuming dilution |
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4,357,478 |
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4,242,508 |
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4,301,981 |
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4,270,050 |
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CONDENSED CONSOLIDATED BALANCE SHEETS |
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April
30, |
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April 30, |
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2021 |
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2020 |
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Assets: |
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Current
assets |
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141,553,863 |
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130,616,797 |
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Machinery
and equipment-net |
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34,186,918 |
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33,935,760 |
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Deferred
income taxes |
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|
1,647,143 |
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284,435 |
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Intangibles |
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1,996,749 |
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2,350,949 |
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Other
assets |
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|
14,788,734 |
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8,891,090 |
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Total
assets |
|
$194,173,407 |
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$176,079,031 |
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Liabilities
and stockholders' equity: |
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Current
liabilities |
|
|
85,315,249 |
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70,048,041 |
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Long-term
obligations |
|
|
48,309,097 |
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47,155,191 |
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Stockholders' equity |
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60,549,061 |
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58,875,799 |
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Total
liabilities and stockholders' equity |
|
$194,173,407 |
|
$176,079,031 |
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For Further Information Contact:SigmaTron International,
Inc.Linda K. Frauendorfer1-800-700-9095
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