SIGMATRON INTERNATIONAL INC [SGMA] Filings

10-Q 1 sgma-20240731x10q.htm 10-Q sgma-20240731x10q

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 July 31, 2024

¨ 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.

July 31, 2024

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 September 13, 2024: 6,119,288

SigmaTron International, Inc.

Index



PART 1.	FINANCIAL INFORMATION:		Page No.
	Item 1.	Condensed Consolidated Financial Statements
		Condensed Consolidated Balance Sheets – July 31, 2024 (Unaudited) and April 30, 2024	4
		Condensed Consolidated Statements of Operations – (Unaudited)
		Three Months Ended July 31, 2024 and 2023	6
		Condensed Consolidated Statements of Changes in Stockholders’
		Equity – (Unaudited) Three Months Ended July 31, 2024 and 2023	7
		Condensed Consolidated Statements of Cash Flows – (Unaudited)
		Three Months Ended July 31, 2024 and 2023	8
		Notes to Condensed Consolidated Financial Statements – (Unaudited)	10
	Item 2.	Management’s Discussion and Analysis of Financial Condition and
		Results of Operations	28
	Item 3.	Quantitative and Qualitative Disclosures About Market Risks	38
	Item 4.	Controls and Procedures

PART II	OTHER INFORMATION:
	Item 1.	Legal Proceedings	40
	Item 1A.	Risk Factors	40
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	41
	Item 3.	Defaults Upon Senior Securities	41
	Item 4.	Mine Safety Disclosures	41
	Item 5.	Other Information	41
	Item 6.	Exhibits	42
		Signatures	43


SigmaTron International, Inc.
Condensed Consolidated Balance Sheets

		July 31,
		2024		April 30,
		(Unaudited)		2024

Current assets:
Cash and cash equivalents	$	5,303,318	$	2,417,360

Accounts receivable, less allowance for credit losses of $7,814
and $59,466 at July 31, 2024 and April 30, 2024, respectively		35,724,814		32,043,985
Inventories, net		115,687,645		128,850,901
Prepaid expenses and other assets		1,674,022		1,886,701
Refundable and prepaid income taxes		771,535		1,716,372
VAT receivables		6,211,685		6,569,984
Other receivables		2,521,174		2,417,316

Total current assets		167,894,193		175,902,619

Property, machinery and equipment, net		32,497,960		33,755,078


Intangible assets, net		897,567		979,188
Deferred income taxes		8,752,870		4,432,210
Right-of-use assets		7,585,366		7,463,301
Other assets		1,213,762		1,261,579

Total other long-term assets		18,449,565		14,136,278

Total assets	$	218,841,718	$	223,793,975

Liabilities and stockholders' equity:
Current liabilities:
Trade accounts payable	$	46,621,825	$	50,593,099
Customer deposits		9,182,867		10,738,596
Accrued wages		6,276,555		6,746,466
Accrued expenses		2,143,130		2,554,260
Income taxes payable		4,981,747		897,847
Deferred revenue		3,164,998		3,111,062
Current portion of long-term debt		67,785,664		66,244,227
Current portion of finance lease obligations		2,087,938		2,214,127
Current portion of operating lease obligations		3,171,681		2,789,107

Total current liabilities		145,416,405		145,888,791

Long-term debt, less current portion		2,957,603		3,339,160
Income taxes payable		153,983		294,993
Finance lease obligations, less current portion		2,660,504		3,147,447
Operating lease obligations, less current portion		4,693,774		4,958,247
Other long-term liabilities		105,182		93,084

Total long-term liabilities		10,571,046		11,832,931

Total liabilities		155,987,451		157,721,722


SigmaTron International, Inc.
Condensed Consolidated Balance Sheets - Continued

		July 31,
		2024		April 30,
		(Unaudited)		2024

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, 6,119,288 shares issued and outstanding
at July 31, 2024 and April 30, 2024		61,193		61,193
Capital in excess of par value		42,524,568		42,453,394
Retained earnings		20,268,506		23,557,666

Total stockholders' equity		62,854,267		66,072,253

Total liabilities and stockholders' equity	$	218,841,718	$	223,793,975

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
		Ended		Ended
		July 31,		July 31,
		2024		2023
		(Unaudited)		(Unaudited)

Net sales	$	84,776,978	$	98,130,356
Cost of products sold		78,371,784		88,479,136

Gross profit		6,405,194		9,651,220

Selling and administrative expenses		6,623,866		6,842,805

Operating (loss) income		(218,672)		2,808,415

Other income		-		18,627
Interest expense, net		(2,268,275)		(2,719,078)
(Loss) income before income tax expense		(2,486,947)		107,964

Income tax (expense) benefit		(802,213)		154,135

Net (loss)/income	$	(3,289,160)	$	262,099


(Loss) earnings per share - basic	$	(0.54)	$	0.04

(Loss) earnings per share - diluted	$	(0.54)	$	0.04

Weighted average shares of common stock outstanding
Basic		6,119,288		6,091,288

Weighted average shares of common stock outstanding
Diluted		6,119,288		6,100,284

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 three months ended July 31, 2024 (Unaudited)
						Capital in				Total
		Preferred		Common		excess of par		Retained		stockholders’
		stock		stock		value		earnings		equity

Balance at May 1, 2024	$	-	$	61,193	$	42,453,394	$	23,557,666	$	66,072,253

Recognition of stock-based ‎compensation		-		-		71,174		-		71,174

Net loss		-		-		-		(3,289,160)		(3,289,160)

Balance at July 31, 2024	$	-	$	61,193	$	42,524,568	$	20,268,506	$	62,854,267


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

Balance at May 1, 2023	$	-	$	60,634	$	41,986,570	$	26,043,823	$	68,091,027

Recognition of stock-based ‎compensation		-		-		184,817		-		184,817

Net income		-		-		-		262,099		262,099

Balance at July 31, 2023	$	-	$	60,634	$	42,171,387	$	26,305,922	$	68,537,943

‎

SigmaTron International, Inc.

Condensed Consolidated Statements of Cash Flows



		Three		Three
		Months Ended		Months Ended
		July 31,		July 31,
		2024		2023
		(Unaudited)		(Unaudited)

Cash flows from operating activities
Net (loss)/income	$	(3,289,160)	$	262,099

Adjustments to reconcile net (loss) income to net cash provided by
operating activities
Depreciation and amortization of property, machinery and equipment		1,424,092		1,496,034
Stock-based compensation		71,174		184,817
Provision for credit losses		51,652		-
Deferred income tax (benefit) expense		(4,320,660)		180,213
Amortization of intangible assets		81,621		83,415
Amortization of financing fees		120,644		116,745
Loss from disposal or sale of machinery and equipment		839		43,286
Changes in operating assets and liabilities
Accounts receivable		(3,732,481)		2,058,165
Inventories		13,163,256		7,092,926
Prepaid expenses and other assets		632,335		(611,805)
Right-of-use assets		(122,065)		801,201
Refundable and prepaid income taxes		944,837		368,218
Income taxes payable		3,942,890		(1,161,108)
Trade accounts payable		(3,971,274)		(10,241,474)
Customer deposits		(1,555,729)		9,717,955
Operating lease liabilities<

SIGMATRON INTERNATIONAL INC [SGMA] Filings
10-Q	[2024-09-19]
10-K	[2024-09-03]
10-Q	[2024-03-11]
10-Q	[2023-12-11]
10-Q	[2023-09-12]
10-K	[2023-07-21]
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]