SIGMATRON INTERNATIONAL INC [SGMA] Filings

10-Q 1 sgma-20230131x10q.htm 10-Q sgma-20230131x10q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_________________

Form 10-Q

__________________

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES

EXCHANGE ACT OF 1934

For the quarterly period ended January 31, 2023

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES

EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 0-23248

SIGMATRON INTERNATIONAL, INC.

(Exact name of registrant as specified in its charter)


Delaware	36-3918470
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)

2201 Landmeier Road
Elk Grove Village, Illinois	60007
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (847) 956-8000

Title of each class

Common Stock $0.01 par value per share

Trading Symbol

SGMA

Name of each exchange on which registered

The NASDAQ Capital Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

‎

SigmaTron International, Inc.

January 31, 2023

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files. Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of a “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer ¨ Accelerated Filer ¨

Non-accelerated Filer x Smaller Reporting Company x

Emerging Growth Company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act). Yes ¨ No x

Indicate the number of shares outstanding of the registrant’s common stock, $0.01 par value, as of May 15, 2023: 6,091,288

SigmaTron International, Inc.

Index



PART 1.	FINANCIAL INFORMATION:		Page No.
	Item 1.	Condensed Consolidated Financial Statements
		Condensed Consolidated Balance Sheets – January 31, 2023 (Unaudited) and April 30, 2022	4
		Condensed Consolidated Statements of Operations – (Unaudited)
		Three and Nine Months Ended January 31, 2023 and 2022	6
		Condensed Consolidated Statements of Changes in Stockholders’
		Equity – (Unaudited) Three and Nine Months Ended January 31, 2023 and 2022	7
		Condensed Consolidated Statements of Cash Flows – (Unaudited)
		Nine Months Ended January 31, 2023 and 2022	9
		Notes to Condensed Consolidated Financial Statements – (Unaudited)	11
	Item 2.	Management’s Discussion and Analysis of Financial Condition and
		Results of Operations	38
	Item 3.	Quantitative and Qualitative Disclosures About Market Risks	57
	Item 4.	Controls and Procedures

PART II	OTHER INFORMATION:
	Item 1.	Legal Proceedings	58
	Item 1A.	Risk Factors	58
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	58
	Item 3.	Defaults Upon Senior Securities	58
	Item 4.	Mine Safety Disclosures	58
	Item 5.	Other Information	58
	Item 6.	Exhibits	59
		Signatures	60


SigmaTron International, Inc.
Condensed Consolidated Balance Sheets

		January 31,
		2023		April 30,
		(Unaudited)		2022

Current assets:
Cash and cash equivalents	$	1,472,729	$	3,054,643

Accounts receivable, less allowance for doubtful accounts of
$100,000 at January 31, 2023 and April 30, 2022		41,487,646		41,153,248
Inventories, net		176,792,078		164,965,216
Prepaid expenses and other assets		2,013,648		2,213,895
Refundable and prepaid income taxes		1,545,451		1,238,973
Other receivables		6,277,371		6,318,164

Total current assets		229,588,923		218,944,139

Property, machinery and equipment, net		34,555,988		35,973,215


Intangible assets, net		2,174,836		12,409,478
Goodwill		-		13,320,534
Deferred income taxes		710,928		856,863
Right-of-use assets		8,780,718		10,946,764
Other assets		1,391,784		1,180,284

Total other long-term assets		13,058,266		38,713,923

Total assets	$	277,203,177	$	293,631,277

Liabilities and stockholders' equity:
Current liabilities:
Trade accounts payable	$	69,149,077	$	96,039,209
Accrued wages		6,731,312		9,180,582
Accrued expenses		3,606,471		3,172,922
Income taxes payable		706,532		802,556
Deferred revenue		12,004,161		11,394,820
Current portion of long-term debt		101,162,635		6,991,567
Current portion of finance lease obligations		1,643,565		1,410,675
Current portion of operating lease obligations		3,405,338		3,508,864

Total current liabilities		198,409,091		132,501,195

Long-term debt, less current portion		1,370,520		60,099,402
Income taxes payable		267,998		357,331
Deferred income taxes		363,877		578,732
Finance lease obligations, less current portion		2,959,037		2,805,135
Operating lease obligations, less current portion		5,852,319		7,903,898
Other long-term liabilities		100,946		1,051,587

Total long-term liabilities		10,914,697		72,796,085

Total liabilities		209,323,788		205,297,280


SigmaTron International, Inc.
Condensed Consolidated Balance Sheets - Continued

		January 31,
		2023		April 30,
		(Unaudited)		2022

Commitments and contingencies

Stockholders' equity:
Preferred stock, $0.01 par value; 500,000 shares
authorized, none issued or outstanding		-		-
Common stock, $0.01 par value; 12,000,000 shares
authorized, 6,071,288 and 6,026,788 shares issued and
outstanding at January 31, 2023 and April 30, 2022, respectively		60,571		60,379
Capital in excess of par value		42,028,727		41,654,410
Retained earnings		25,790,091		46,619,208

Total stockholders' equity		67,879,389		88,333,997

Total liabilities and stockholders' equity	$	277,203,177	$	293,631,277

The accompanying notes to the condensed consolidated financial statements are an integral part of these statements.

‎

SigmaTron International, Inc.

Condensed Consolidated Statements of Operations



		Three Months		Three Months		Nine Months		Nine Months
		Ended		Ended		Ended		Ended
		January 31,		January 31,		January 31,		January 31,
		2023		2022		2023		2022
		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)

Net sales	$	93,219,753	$	93,682,451	$	307,469,352	$	279,638,499
Cost of products sold		82,193,416		81,257,305		271,443,967		245,853,289

Gross profit		11,026,337		12,425,146		36,025,385		33,785,210

Selling and administrative expenses		9,154,376		7,758,582		27,260,751		20,675,353
Impairment of notes receivable and investment		-		6,300,235		-		6,300,235
Impairment of goodwill and other long-lived assets		23,096,771		-		23,096,771		-

Operating (loss) income		(21,224,810)		(1,633,671)		(14,332,137)		6,809,622

Gain on extinguishment of long-term debt		-		-		-		(6,282,973)
Other income		(496,507)		(35,813)		(568,137)		(109,516)
Interest expense, net		2,406,137		382,031		5,336,526		964,622
(Loss) income before income tax expense		(23,134,440)		(1,979,889)		(19,100,526)		12,237,489

Income tax (benefit) expense		(56,776)		744,408		1,728,591		3,014,865

Net (loss) income	$	(23,077,664)	$	(2,724,297)	$	(20,829,117)	$	9,222,624


(Loss) earnings per share – basic	$	(3.80)	$	(0.58)	$	(3.43)	$	2.08

(Loss) earnings per share – diluted	$	(3.80)	$	(0.58)	$	(3.43)	$	1.97


Weighted average shares of common stock outstanding
Basic		6,071,288		4,729,619		6,067,161		4,439,551

Weighted average shares of common stock outstanding
Diluted		6,071,288		4,729,619		6,067,161		4,682,598

The accompanying notes to the condensed consolidated financial statements are an integral part of these statements.

‎

SigmaTron International, Inc.

Condensed Consolidated Statements of Changes in Stockholders’ Equity


For the nine months ended January 31, 2023 (Unaudited)
						Capital in				Total
		Preferred		Common		excess of par		Retained		stockholders’
		stock		stock		value		earnings		equity

Balance at May 1, 2022	$	-	$	60,379	$	41,654,410	$	46,619,208	$	88,333,997

Recognition of stock-based ‎compensation		-		-		94,893		-		94,893

Restricted stock awards		-		55		49,818		-		49,873

Net income		-		-		-		1,376,675		1,376,675

Balance at July 31, 2022	$	-

SIGMATRON INTERNATIONAL INC [SGMA] Filings
10-Q	[2023-05-18]
10-Q	[2022-12-12]
10-Q	[2022-09-13]
10-K	[2022-07-27]
10-Q	[2022-03-23]
10-Q	[2021-12-13]
10-Q	[2021-09-13]
10-K	[2021-07-23]
10-Q	[2021-03-11]
10-Q	[2020-12-11]
10-Q	[2020-09-11]
10-K	[2020-08-12]
10-Q	[2020-03-12]
10-Q	[2019-12-11]
10-Q	[2019-09-12]
10-K	[2019-07-25]
10-Q	[2019-03-15]
10-Q	[2018-12-12]
10-Q	[2018-09-13]
10-K	[2018-07-24]
10-Q	[2018-03-14]
10-Q	[2017-12-12]
10-Q	[2017-09-13]
10-K	[2017-07-24]
10-Q	[2017-03-14]
10-Q	[2016-12-12]
10-Q	[2016-09-13]
10-K	[2016-07-29]
10-Q	[2016-03-15]
10-Q	[2015-12-14]
10-Q	[2015-09-14]
10-K	[2015-07-27]
10-Q	[2015-03-16]
10-Q	[2014-12-12]
10-Q	[2014-09-11]
10-K	[2014-07-24]
10-Q	[2014-03-13]
10-Q	[2013-12-13]
10-Q	[2013-09-12]
10-K	[2013-07-26]
10-Q	[2013-03-15]
10-Q	[2012-12-13]
10-Q	[2012-09-14]
10-K	[2012-08-14]
10-Q	[2012-03-14]