SigmaTron International, Inc. Reports First Quarter Financial Results for Fiscal 2013
September 11 2012 - 11:15AM
SigmaTron International, Inc. (Nasdaq:SGMA), an electronic
manufacturing services company, today reported revenues and
earnings for the fiscal quarter ended July 31, 2012.
Revenues increased to $47.6 million in first quarter of fiscal
2013 from $38.9 million for the same quarter in the prior year. A
net loss of $93,144 was recorded for the period ended July 31, 2012
compared to net income of $240,961 for the same period in the prior
year. Basic and diluted loss per share for the quarter ended July
31, 2012, were each $0.02, compared to basic and diluted earnings
per share of $0.06 for the same quarter ended July 31, 2011.
Commenting on SigmaTron's first quarter fiscal 2013 results,
Gary R. Fairhead, President, Chief Executive Officer and Chairman
of the Board, said, "The first quarter saw two significant events
driven to closure. The first, and most important, was the
acquisition of Spitfire Control, Inc. ("Spitfire"), as previously
announced on June 1, 2012. As part of the acquisition we
created the Spitfire Controls division of SigmaTron that will focus
on design and sales of electronic appliance controls to the white
goods market. Through this acquisition, we also acquired
manufacturing locations in Chihuahua, Mexico and Ho Chi Minh City,
Vietnam, bringing our manufacturing locations to seven locations in
four countries on two continents.
"The second event was the relocation of our Tijuana operation to
a larger, brand new building in Tijuana. Our new landlord is
Vesta Baja California, S. de R.L. de C.V. a well known, substantial
and publicly traded real estate company in Mexico. We look
forward to building a long-term relationship with them. As I
have stated several times, we continue to see a shift in supply
chain strategies that I believe will increase the manufacturing
opportunities in Mexico. One driver in the Tijuana relocation
was our desire to be well-positioned as these opportunities become
available.
"The new building in Tijuana has been well-received by our
customers and employees. The Spitfire acquisition also appears
to have been well-received by the marketplace. Additionally,
several new product launches that were scheduled have started,
which is a positive sign.
"In reporting our results for the quarter, I look at them in the
context of the Spitfire acquisition and the Tijuana
relocation. During the quarter, SigmaTron incurred $589K of
one-time expenses related to the acquisition and $392K of one-time
expenses related to the relocation. When looking at our
results in light of those expenses, the quarter was decent from an
operational perspective. The majority of these non-recurring
expenses are behind us, but there will be some one-time expenses in
the second quarter related to the Spitfire acquisition.
"We continue to see a choppy and volatile general
economy. International events and our upcoming election in the
United States have caused the economy to be managed cautiously, and
we are taking the same approach. Until the economy
strengthens, we expect continuing margin pressures and we plan to
focus on opportunities to add new revenue and control
expenses. Our results, given the one-time expenses incurred
during the quarter, lead us to believe we are heading in the right
direction, strategically and operationally."
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-Wujiang, China, and Ho Chi Minh City,
Vietnam. SigmaTron International, Inc. maintains engineering
and materials sourcing offices in Carpentersville, 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
our 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 our operating
results; the results of long-lived assets impairment testing; the
variability of our customers' requirements; the availability and
cost of necessary components and materials; the ability of the
Company and our customers to keep current with technological
changes within our industries; regulatory compliance; the continued
availability and sufficiency of our 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, including its integration of the
Spitfire operation acquired in May 2012. 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 and 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
INCOME |
|
|
|
|
|
|
Three Months Ended July 31,
2012 |
Three Months Ended July
31, 2011 |
|
|
|
Net sales |
$47,629,229 |
$38,892,011 |
|
|
|
Cost of products sold |
42,923,331 |
35,349,503 |
|
|
|
Gross profit |
4,705,898 |
3,542,508 |
|
|
|
Selling and administrative expenses |
4,665,405 |
2,909,136 |
|
|
|
Operating income |
40,493 |
633,372 |
|
|
|
Other expense |
188,337 |
250,885 |
|
|
|
(Loss) income from operations before income
tax |
(147,844) |
382,487 |
|
|
|
Income tax (benefit) expense |
(54,700) |
141,526 |
|
|
|
Net (loss) income |
($93,144) |
$240,961 |
|
|
|
|
|
|
Net (loss) income per common share
-- basic |
($0.02) |
$0.06 |
|
|
|
Net (loss) income per common share
-- assuming dilution |
($0.02) |
$0.06 |
|
|
|
|
|
|
Weighted average number of common equivalent
shares outstanding - assuming dilution |
3,922,478 |
3,890,760 |
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED BALANCE
SHEETS |
|
|
|
|
|
|
July 31, 2012 |
April 30, 2012 |
|
|
|
Assets: |
|
|
|
|
|
Current assets |
$76,807,425 |
$74,139,130 |
|
|
|
Machinery and equipment-net |
25,355,966 |
24,373,494 |
|
|
|
Intangibles |
6,168,548 |
86,925 |
Goodwill |
3,602,228 |
-- |
Other assets |
767,151 |
547,334 |
|
|
|
Total assets |
$112,701,318 |
$99,146,883 |
|
|
|
Liabilities and stockholders' equity: |
|
|
|
|
|
Current liabilities |
$30,941,560 |
$24,930,482 |
|
|
|
Long-term obligations |
30,531,097 |
23,195,330 |
|
|
|
Stockholders' equity |
51,228,661 |
51,021,071 |
|
|
|
Total liabilities and stockholders'
equity |
$112,701,318 |
$99,146,883 |
CONTACT: SigmaTron International, Inc.
Linda K. Frauendorfer
1-800-700-9095
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