SigmaTron International, Inc. Reports Second Quarter Financial Results for Fiscal 2018
December 12 2017 - 10:00AM
SigmaTron International, Inc. (NASDAQ:SGMA), an electronic
manufacturing services company, today reported revenues and
earnings for the second quarter ended October 31, 2017.
Revenues increased to $73.0 million for the second quarter of
fiscal 2018 from $66.2 million for the same quarter in the prior
year. Net income increased to $736,115 in the second fiscal
quarter compared to $33,295 for the same period in the prior
year. Basic and diluted earnings per share were $0.18 and
$0.17, respectively, for the quarter ended October 31, 2017
compared to basic and diluted earnings per share each of $0.01 for
the same quarter in fiscal 2017.
For the six months ended October 31, 2017, revenues increased to
$144.2 million compared to $125.3 million for the same period ended
October 31, 2016. Net income for the period ended October 31,
2017 was $1,118,997 compared to $179,892 for the same period in the
prior year. Basic and diluted earnings per share for the six
months ended October 31, 2017, were $0.27 and $0.26, respectively,
compared to basic and diluted earnings per share of each $0.04 for
the six months ended October 31, 2016.
Commenting on SigmaTron’s second quarter, fiscal 2018 results,
Gary R. Fairhead, President, Chief Executive Officer and Chairman
of the Board, said, “I’m pleased to report that SigmaTron had a
good quarter in terms of both revenue growth and bottom line
growth. Revenues increased modestly, but net income increased
significantly from the first quarter of fiscal 2018. As
reported in previous press releases we continue to encounter
shortages in the component marketplace, primarily with
semiconductor products. These shortages negatively affected
our revenue in the second quarter and at this point it appears that
shortages will continue during the third quarter. Shortages
have not only negatively impacted our ability to assemble and ship
finished goods, but in some cases there were price increases which
required customer approval and slowed down production.
“The component shortages are a direct result of the stronger
economic activity we have seen for the past 12 months. We
continue to see positive signs that the economy will continue to
grow and opportunities for SigmaTron should increase. We are
heading into what has historically been a slower quarter, driven by
the calendar year end, holidays, and customers adjusting inventory
for their fiscal year end. While the third quarter may
reflect some slowing short term, we have landed several new
significant customers and their business is projected to start
during our fourth quarter. Several of these programs are
quite exciting and we are looking forward to expanding our customer
base while establishing long term relationships that should provide
for future growth. In summary, we continue to see positive
trends going forward and are optimistic for the balance of this
fiscal year.”
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
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 and goodwill
impairment testing; 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;
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, 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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Six Months |
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Six 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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October 31, |
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October 31, |
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October 31, |
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October 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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$ |
72,959,074 |
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$ |
66,159,586 |
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$ |
144,183,367 |
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$ |
125,344,917 |
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Cost of products
sold |
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65,855,506 |
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60,340,917 |
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130,322,745 |
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113,755,658 |
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Gross profit |
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7,103,568 |
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5,818,669 |
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13,860,622 |
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11,589,259 |
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Selling and
administrative expenses |
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5,642,273 |
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5,555,385 |
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11,554,419 |
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10,915,276 |
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Operating income |
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1,461,295 |
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263,284 |
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2,306,203 |
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673,983 |
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Other expense |
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309,841 |
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236,668 |
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573,904 |
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420,509 |
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Income from operations
before income tax |
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1,151,454 |
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26,616 |
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1,732,299 |
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253,474 |
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Income tax expense
(benefit) |
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415,339 |
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(6,679 |
) |
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613,302 |
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73,582 |
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Net income |
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$ |
736,115 |
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$ |
33,295 |
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$ |
1,118,997 |
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$ |
179,892 |
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Net income per common
share - basic |
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$ |
0.18 |
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$ |
0.01 |
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$ |
0.27 |
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$ |
0.04 |
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Net income per common
share - assuming dilution |
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$ |
0.17 |
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$ |
0.01 |
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$ |
0.26 |
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$ |
0.04 |
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Weighted average number
of common equivalent |
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shares
outstanding - assuming dilution |
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4,326,854 |
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4,225,874 |
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4,302,977 |
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4,225,844 |
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CONDENSED
CONSOLIDATED BALANCE SHEETS |
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October 31, |
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April 30, |
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2017 |
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2017 |
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Assets: |
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Current assets |
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$ |
114,820,430 |
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$ |
109,031,913 |
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Machinery and
equipment-net |
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35,765,579 |
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33,008,714 |
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Deferred income
taxes |
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554,658 |
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236,087 |
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Intangibles |
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3,993,160 |
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4,213,235 |
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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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1,102,564 |
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1,472,816 |
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Total assets |
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$ |
159,459,290 |
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$ |
151,185,664 |
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Liabilities and
stockholders' equity: |
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Current
liabilities |
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$ |
56,971,893 |
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$ |
55,611,214 |
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Long-term
obligations |
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39,369,656 |
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33,702,305 |
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Stockholders'
equity |
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63,117,741 |
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61,872,145 |
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Total liabilities and
stockholders' equity |
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$ |
159,459,290 |
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$ |
151,185,664 |
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For Further Information Contact:SigmaTron International,
Inc.Linda K. Frauendorfer1-800-700-9095
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