SigmaTron International, Inc. (NASDAQ: SGMA), an electronic
manufacturing services company (the “Company”), today reported
revenues and earnings for the fiscal quarter ended January 31,
2024.
Revenues from continuing operations increased $3.2 million, or 3
percent, to $95.9 million in the third quarter of fiscal 2024,
compared to $92.7 million for the same quarter in the prior year.
Net income from continuing operations for the third quarter ended
January 31, 2024, was $0.6 million, compared to $2.7 million for
the same quarter in the prior year. Diluted income per share from
continuing operations for the quarter ended January 31, 2024 was
$0.10, compared to $0.44 income per share for the same quarter in
the prior year.
For the nine months ended January 31, 2024, revenues from
continuing operations decreased $13.4 million, or 4 percent, to
$292.7 million, compared to $306.1 million for the same period in
the prior year. Net income from continuing operations for the nine
months ended January 31, 2024, was $0.9 million, compared to net
income of $8.9 million for the same period in the prior year.
Diluted income per share from continuing operations for the nine
months ended January 31, 2024 was $0.14, compared to $1.47 income
per share for the same period in the prior year.
As previously reported, the Company sold a majority position of
its wholly owned subsidiary, Wagz, Inc. (“Wagz”), effective April
1, 2023. As a result, the Company has reported results from Wagz
for fiscal 2023 as discontinued operations. For the third quarter
ended January 31, 2023, net loss from discontinued operations was
$25.8 million. For the nine months ended January 31, 2023, net loss
from discontinued operations was $29.8 million. Diluted net loss
per share from discontinued operations for the third quarter ended
January 31, 2023 was $4.25 and was $4.91 for the nine month period
ending January 31, 2023.
Commenting on SigmaTron’s third quarter, fiscal 2024 results,
Gary R. Fairhead, Chief Executive Officer and Chairman of the
Board, said “I’m pleased to report pre-tax profits of $676,742 for
our third quarter of fiscal 2024. As mentioned in our second
quarter press release, as we were heading into the quarter, our
short-term backlog was soft and our third quarter historically is
our weakest quarter. Accordingly, it was good to be profitable. We
did see a modest increase in revenue compared to the third quarter
of the prior year, but at lower margins. This is related to both
mix and cost structure. As you can see, our year-to-date revenue is
still running significantly behind the prior year. We are
continuing to see that trend in the short-term. There is a general
softness from our customer base overall. I think it reflects the
uncertainty of the general economy overall and we will continue to
manage expenses and working capital accordingly. The Company has
reduced inventory by $30 million during the first nine months of
our fiscal year.
“In addition to the modest softness overall, several new
projects have not come to market as anticipated. They all remain on
track to launch but just further out. This should bode well for
fiscal 2025 but short-term, they will not contribute to our
performance. However, we remain optimistic about those projects as
well as several new ones that are under discussion with our
customers.
“The report on the electronic component marketplace remains the
same as the second quarter. There are still supply chain issues but
there have been some modest improvements. The uncertainty related
to the geopolitical situations as well as the upcoming elections
have negatively affected the overall economy. We remain positive
regarding the future but there will definitely be some short-term
volatility for the next quarter or two.”
About SigmaTron International, Inc.
Headquartered in Elk Grove Village, Illinois, SigmaTron
International, Inc. operates in one reportable segment as an
independent provider of electronic manufacturing services (“EMS”).
The EMS segment includes printed circuit board assemblies,
electro-mechanical subassemblies and completely assembled
(box-build) electronic products. The Company and its wholly-owned
subsidiaries operate manufacturing facilities in Elk Grove Village,
Illinois; Acuna, Chihuahua, and Tijuana Mexico; Union City,
California; Suzhou, China; and Biên Hòa City, Vietnam. In addition,
the Company maintains an International Procurement Office and
Compliance and Sustainability Center in Taipei, Taiwan. The Company
also provides design services in Elgin, Illinois, U.S.
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 and goodwill impairment testing; the risks
inherent in any merger, acquisition or business combination,
including the ability to achieve the expected benefits of
acquisitions as well as the expenses of acquisitions; the
collectability of aged account receivables; the variability of the
Company’s customers’ requirements; the impact of inflation on the
Company’s operating results; the availability and cost of necessary
components and materials; the impact acts of war may have to the
supply chain; 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;
the costs of borrowing under the Company’s senior and subordinated
credit facilities, including under the rate indices that replaced
LIBOR; increasing interest rates; the ability to meet the Company’s
financial and restrictive covenants under its loan agreements;
changes in U.S., Mexican, Chinese, Vietnamese or Taiwanese
regulations affecting the Company’s business; the turmoil in the
global economy and financial markets; public health crises,
including COVID-19 and variants; the continued availability of
scarce raw materials, exacerbated by global supply chain
disruptions, necessary for the manufacture of products by the
Company; the stability of the U.S., Mexican, Chinese, Vietnamese
and Taiwanese economic, labor and political systems and conditions;
global business disruption caused by the Russian invasion of
Ukraine and related sanctions and the Israel-Hamas conflict;
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.
For Further Information Contact:SigmaTron International,
Inc.James J. Reiman1-800-700-9095
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CONDENSED CONSOLIDATED STATEMENT 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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2024 |
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2023 |
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|
2024 |
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2023 |
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Net
sales |
95,919,888 |
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92,736,725 |
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|
292,741,928 |
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306,147,772 |
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Cost of
products sold |
85,992,928 |
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81,575,820 |
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263,475,993 |
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270,103,569 |
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Gross
profit |
9,926,960 |
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11,160,905 |
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29,265,935 |
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36,044,203 |
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Selling and
administrative expenses |
6,683,488 |
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6,358,591 |
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20,139,927 |
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19,394,529 |
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Operating
income |
3,243,472 |
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4,802,314 |
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9,126,008 |
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16,649,674 |
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Other
expense |
(2,566,730 |
) |
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(1,909,630 |
) |
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(7,969,374 |
) |
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(4,768,389 |
) |
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Income
before income tax |
676,742 |
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2,892,684 |
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1,156,634 |
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11,881,285 |
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Income tax
expense |
(77,736 |
) |
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(196,473 |
) |
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(267,267 |
) |
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(2,948,323 |
) |
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Net income
from continuing operations |
$599,006 |
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$2,696,211 |
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$889,367 |
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$8,932,962 |
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Discontinued
operations: |
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Loss before
tax from discontinued operations |
- |
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(26,027,124 |
) |
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- |
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(30,981,811 |
) |
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Tax benefit
from discontinued operations |
- |
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253,249 |
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- |
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1,219,732 |
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Net loss
from discontinued operations |
- |
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(25,773,875 |
) |
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- |
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(29,762,079 |
) |
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Net income
(loss) |
$599,006 |
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($23,077,664 |
) |
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$889,367 |
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($20,829,117 |
) |
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Net income
(loss) per common share - basic |
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Net income
per common share - basic from continuing operations |
0.10 |
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0.44 |
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0.15 |
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|
1.47 |
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Net loss per
common share - basic from discontinued operations |
- |
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(4.25 |
) |
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- |
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(4.91 |
) |
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Net income
(loss) per common share - basic |
$0.10 |
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($3.81 |
) |
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$0.15 |
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($3.44 |
) |
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Net income
(loss) per common share - diluted |
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Net income
per common share - diluted from continuing operations |
0.10 |
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0.44 |
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0.14 |
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|
1.47 |
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Net loss per
common share - diluted from discontinued operations |
- |
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(4.25 |
) |
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- |
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(4.91 |
) |
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Net income
(loss) per common share - diluted |
$0.10 |
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($3.81 |
) |
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$0.14 |
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($3.44 |
) |
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Weighted
average number of common equivalent |
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shares outstanding - assuming dilution |
6,120,317 |
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6,071,288 |
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6,152,073 |
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6,067,161 |
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CONDENSED CONSOLIDATED BALANCE SHEETS |
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January
31, |
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April
30, |
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2024 |
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2023 |
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Assets: |
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Current
assets |
$194,481,791 |
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220,466,442 |
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Machinery
and equipment-net |
35,498,047 |
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35,788,357 |
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Deferred
income taxes |
3,049,434 |
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2,640,902 |
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Intangibles |
1,061,997 |
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1,311,030 |
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Other
assets |
9,449,861 |
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8,420,468 |
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Total
assets |
$243,541,130 |
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$268,627,199 |
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Liabilities
and stockholders' equity: |
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Current
liabilities |
$85,186,560 |
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|
152,308,599 |
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Long-term
obligations |
88,986,827 |
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48,227,573 |
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Stockholders' equity |
69,367,743 |
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68,091,027 |
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Total
liabilities and stockholders' equity |
$243,541,130 |
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|
$268,627,199 |
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Sigmatron (NASDAQ:SGMA)
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De Nov 2024 à Déc 2024
Sigmatron (NASDAQ:SGMA)
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De Déc 2023 à Déc 2024