SigmaTron International, Inc. Reports Third Quarter Financial Results for Fiscal 2017
March 13 2017 - 9:30AM
SigmaTron International, Inc. (NASDAQ:SGMA), an electronic
manufacturing services company, today reported revenues and
earnings for the third quarter ended January 31, 2017.
Revenues increased to $61.9 million for the third quarter of
fiscal 2017 from $59.2 million for the same quarter in the prior
year. A net loss of $47,852 was incurred in the third fiscal
quarter compared to net income of $218,728 for the same period in
the prior year. Basic and diluted (loss) per share were each
($0.01) for the quarter ended January 31, 2017, compared to basic
and diluted earnings per share each $0.05 for the same quarter in
fiscal 2016.
For the nine months ended January 31, 2017, revenues decreased
to $186.7 million compared to $193.2 million for the same period in
the prior year. Net income for the period ended January 31,
2017 was $132,040 compared to net income of $2,033,832 for the same
period in the prior year. Basic and diluted earnings per
share for the nine months ended January 31, 2017, were each $0.03,
compared to basic and diluted earnings per share of $0.49 and
$0.48, respectively, for the nine months ended January 31,
2016.
Commenting on SigmaTron’s third quarter fiscal 2017 results,
Gary R. Fairhead, President, Chief Executive Officer, and Chairman
of the Board, said, “As stated in our second quarter press release
we had concern that we may have a loss in the third quarter.
However, I’m pleased to report that the post-election activity with
some of our customers was positive allowing revenue to grow
modestly and allowing us to post a small pre-tax profit.
“Based on what we’ve seen since the election, we remain positive
and optimistic regarding our fourth fiscal quarter and
beyond. Many programs with existing customers that were on
hold have been released and in some cases expedited. New
customers with significant programs that we have been working with
for a period of time are finally expected to go to market during
our fourth quarter or during the beginning of fiscal 2018.
Many of these programs are in new markets for us. Based on
these developments we are optimistic for the balance of calendar
2017.
“With that said, ongoing pricing pressures remain from both
customers and suppliers. We will continue to manage those as
we have in the past and believe that the new business and projected
increased volume will improve our profitability. There is
uncertainty regarding the new Administration’s foreign trade
policy, specifically with Mexico and China. While that
remains an unknown, we believe that our footprint will continue to
serve us well as that policy continues to unfold, and generally we
will find ourselves in a similar position to many of our
competitors.”
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
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 and goodwill 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,
including conflict minerals; 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. 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 required
by law.
Financial tables to follow…
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, |
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January 31, |
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January 31, |
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January 31, |
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2017 |
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2016 |
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2017 |
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2016 |
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Net sales |
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$61,896,226 |
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$59,206,344 |
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$186,658,581 |
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$193,150,783 |
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Cost of products
sold |
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56,477,208 |
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53,498,248 |
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170,232,866 |
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173,615,400 |
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Gross profit |
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5,419,018 |
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5,708,096 |
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16,425,715 |
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19,535,383 |
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Selling and
administrative expenses |
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5,085,079 |
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5,120,848 |
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15,417,793 |
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15,700,276 |
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Operating income |
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333,939 |
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587,248 |
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1,007,922 |
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3,835,107 |
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Other expense |
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244,903 |
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209,649 |
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665,412 |
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638,149 |
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Income from operations
before income tax |
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89,036 |
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377,599 |
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342,510 |
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3,196,958 |
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Income tax expense |
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136,888 |
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158,871 |
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210,470 |
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1,163,126 |
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Net (loss) income |
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($47,852 |
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$218,728 |
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$132,040 |
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$2,033,832 |
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Net (loss) income per
common share - basic |
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($0.01 |
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$0.05 |
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$0.03 |
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$0.49 |
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Net (loss) income per
common share - assuming dilution |
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($0.01 |
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$0.05 |
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$0.03 |
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$0.48 |
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Weighted average number
of common equivalent |
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shares
outstanding - assuming dilution |
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4,186,813 |
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4,229,378 |
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4,223,395 |
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4,239,169 |
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CONDENSED
CONSOLIDATED BALANCE SHEETS |
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January 31, |
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April 30, |
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2017 |
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2016 |
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Assets: |
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Current assets |
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$96,581,916 |
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$94,090,884 |
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Machinery and
equipment-net |
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33,648,994 |
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33,080,858 |
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Deferred income
taxes |
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179,934 |
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233,057 |
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Intangibles |
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4,336,100 |
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4,703,245 |
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Goodwill |
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3,222,899 |
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3,222,899 |
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Other assets |
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1,041,149 |
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1,418,398 |
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Total assets |
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$139,010,992 |
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$136,749,341 |
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Liabilities and
stockholders' equity: |
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Current
liabilities |
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$46,514,897 |
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$45,986,309 |
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Long-term
obligations |
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31,982,026 |
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30,687,154 |
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Stockholders'
equity |
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60,514,069 |
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60,075,878 |
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Total liabilities and
stockholders' equity |
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$139,010,992 |
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$136,749,341 |
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For Further Information Contact:
SigmaTron International, Inc.
Linda K. Frauendorfer
1-800-700-9095
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