SMTC Corporation (Nasdaq:SMTX), a global electronics manufacturing
services provider and winner of Frost & Sullivan’s 2019 Best
Practices Award for Customer Value Leadership in the Electronics
Manufacturing Services Industry, today announced its third quarter
2020 results.
Business Highlights
- Third quarter 2020 revenue of $99.5 million, up 10.1% vs. the
prior quarter and 12.3% vs. the prior year
- EPS was $0.04 and Adjusted EPS was $0.13, compared to $0.03 and
$0.08 in the prior quarter, respectively
- Net Income was $1.2 million, EBITDA was $5.3 million, compared
to $1.0 million and $5.8 million in the prior quarter,
respectively
- Adjusted Net Income was $3.8 million, Adjusted EBITDA was $7.5
million, compared to $2.4 million and $6.4 million in the prior
quarter, respectively
- $46 million of awards and orders booked in the third quarter,
from new and existing customers
- All facilities remain open, in operation and in compliance with
applicable COVID-19 health and safety measures
- Subject to debt covenants, the Company had access to additional
borrowing capacity of $30.5 million under SMTC’s asset-based
lending credit facility and reduced its debt-to-adjusted EBITDA
ratio to 2.55 (excluding leases) as of September 27, 2020
- With ongoing sales momentum, recent customer awards, strong
bookings-backlog, and planned operating efficiencies, the Company
currently expects revenue and Adjusted EBITDA for the full year
2021 are expected to range between $430 million and $450 million in
revenue and adjusted EBITDA to range between $33.0 million and
$37.0 million
|
$s millions (except EPS) |
Q3 2020 |
Q2 2020 |
Change |
Q3 2019 |
Change |
|
Revenue |
$99.5 |
$90.4 |
10.1 |
% |
$88.7 |
12.3 |
% |
| GAAP |
|
|
|
|
|
| Gross Profit |
$11.1 |
$10.7 |
3.9 |
% |
$8.9 |
24.7 |
% |
| Gross Profit Percentage |
11.2% |
11.8% |
|
10.0% |
|
| Net Income (Loss) |
$1.2 |
$1.0 |
30.2 |
% |
($5.7) |
|
|
EPS |
$0.04 |
$0.03 |
0.0 |
% |
($0.20) |
|
| Non-GAAP |
|
|
|
|
|
| Adjusted Gross Profit |
$12.5 |
$11.7 |
6.8 |
% |
$10.8 |
16.7 |
% |
| Adjusted Gross Profit
Percentage |
12.6% |
13.0% |
|
12.1% |
|
| Adjusted Net Income |
$3.8 |
$2.4 |
57.4 |
% |
$2.1 |
80.8 |
% |
| Adjusted EPS |
$0.13 |
$0.08 |
56.6 |
% |
$0.08 |
71.2 |
% |
| Adjusted EBITDA |
$7.5 |
$6.4 |
17.5 |
% |
$6.3 |
20.2 |
% |
| Adjusted EBITDA
Percentage |
7.6% |
7.1% |
|
7.1% |
|
| Net Debt |
$85.9 |
$84.6 |
1.5 |
% |
84.4 |
|
Note: Adjusted Gross Profit, Adjusted Gross Profit Percentage,
Adjusted Net Income, Adjusted Earnings Per Common Share (Adjusted
EPS), EBITDA, Adjusted EBITDA, Adjusted EBITDA Percentage, and Net
Debt (each as defined below) are non-GAAP measures. Please refer to
the section below labeled “Non-GAAP Information” and the various
reconciliations to the applicable most directly comparable GAAP
measures shown below in this press release.
Management Commentary
“Our sales organization continues to gain market share and
expand our sales funnel, including $46 million in new awards and
bookings during the third quarter, from five new customers and one
existing customer. I am pleased that we are beginning to see an
acceleration of customer programs moving through the customer
certification process, into new product introduction phase and
entering production that will continue to ramp in 2021,” said Ed
Smith, SMTC’s President and Chief Executive Officer.
Revenue by Industry Sector
|
Industry Sector |
Three months endedSept. 27,
2020 |
Three months endedSept. 29,
2019 |
Change |
|
Dollars in millions |
$ |
|
% |
|
$ |
|
% |
|
$ |
% |
|
Industrial IoT, Power and Clean Technology |
37.0 |
|
37.2 |
|
36.7 |
|
41.4 |
|
0.3 |
|
0.8 |
|
|
Semiconductors |
16.0 |
|
16.1 |
|
7.3 |
|
8.2 |
|
8.7 |
|
119.2 |
|
| Avionics,
Aerospace and Defense |
12.0 |
|
12.1 |
|
5.2 |
|
5.9 |
|
6.8 |
|
130.8 |
|
| Medical
and Safety |
11.3 |
|
11.4 |
|
10.5 |
|
11.8 |
|
0.8 |
|
7.6 |
|
| Retail
and Payment Systems |
10.3 |
|
10.4 |
|
10.6 |
|
12.0 |
|
(0.3 |
) |
(2.8 |
) |
| Test and
Measurement |
8.1 |
|
8.1 |
|
8.8 |
|
9.9 |
|
(0.7 |
) |
(8.0 |
) |
|
Telecom, Networking and Communications |
4.8 |
|
4.8 |
|
9.6 |
|
10.8 |
|
(4.8 |
) |
(50.0 |
) |
|
Total |
99.5 |
|
100.0 |
|
88.7 |
|
100.0 |
|
10.8 |
|
12.3 |
|
“Our focus on expanding our market share in key markets that
play to our strengths, such as the Industrial IoT market, the
highly complex, regulated medical markets, and the defense and
aerospace industry, continues to provide a stable and solid base to
profitably grow our business during the ongoing COVID-19 pandemic.
We also benefited from a rebound by our semiconductor customers,”
noted Smith.
For the three months ended September 27, 2020, cash used by
operations was $0.2 million and capital expenditures were $1.1
million. During the third quarter, the Company amended its credit
facilities to provide increased covenant flexibility as it
navigates through the COVID-19 pandemic.
As of September 27, 2020, subject to debt covenants, SMTC had
$30.5 million available for borrowing under its asset-based lending
facility and reduced its debt-to-adjusted EBITDA ratio to 2.55
(excluding leases).
“Rich Fitzgerald, SMTC’s Chief Operating Officer, has decided
for personal reasons to pursue other opportunities. We want to
thank Rich for his leadership and guidance over the past
three-and-a-half-year tenure, during which time SMTC tripled in
size with increased profitability and customer satisfaction. Rich
will continue in his current role during the search for his
successor which is expected to be completed by the end of the first
quarter of 2021,” said Smith.
Reaffirming the Higher End of
Prior Second Half 2020
Guidance and Establishing 2021
Full Year Guidance
“Based on our current demand and supply chain visibility, and
assuming our facilities continue to operate at currently planned
levels, we are reaffirming at the higher end of our prior guidance
issued on August 5, 2020. We now expect revenue to
range between $195 million and $205 million and adjusted-EBITDA to
range between $14 million and $15 million for the second half of
2020,” said Smith.
“As we embark on our next-phase of growth, with our ongoing
sales momentum, recent customer awards, strong bookings-backlog,
and planned operating efficiencies, we currently expect revenue for
2021 to range between $430 million and $450 million and adjusted
EBITDA to range between $33.0 million and $37.0 million, with
revenue growth and adjusted EBITDA margins consistent with our
long-term financial model targets,” added Smith.
Financial Results Conference Call
SMTC will host a conference call which will start at 8:30 am
Eastern Time on Thursday, November 5, 2020 to discuss its third
quarter results. The conference call can be accessed by visiting
the Investor Relations section of SMTC’s web site on the Investor
Relations Calendar page at
https://www.smtc.com/investors/news-events/ir-calendar or
dialing 1-833-316-0546 (for U.S. participants), 1-866-605-3852 (for
Canadian participants) or 1-412-317-5727 (for participants outside
of the U.S. and Canada) ten minutes prior to the start of the call
and requesting to join the SMTC Corporation Third Quarter Results
Conference Call. The conference call will be available for
rebroadcast from the Investor Relations section of SMTC’s web site
on the Investor Relations Calendar page.
Non-GAAP Information
Adjusted Gross Profit, Adjusted Gross Profit Percentage,
Adjusted Net Income, Adjusted Earnings Per Common Share (Adjusted
EPS), EBITDA, Adjusted EBITDA, Adjusted EBITDA Percentage, and Net
Debt are non-GAAP measures and are referred to herein as “Non-GAAP
Financial Measures.” Adjusted Gross Profit is computed as gross
profit excluding amortization of intangible assets, unrealized
foreign exchange gains or losses on unsettled forward foreign
exchange contracts and COVID-19 related expenses. COVID-19 related
expenses include expenses associated with the retention of
temporary replacement labor, additional sanitation, cleaning and
disinfection of facilities, personal protective equipment and
related supplies and costs associated with facilitating social
distancing. Adjusted Gross Profit Percentage is computed as
Adjusted Gross Profit divided by revenue.
Adjusted Net Income is computed as net income (loss) before
amortization of intangible assets, restructuring charges
(recovery), stock-based compensation, fair value adjustment of
warrant liability, merger and acquisition related expenses, fair
value adjustment to contingent consideration, COVID-19 related
expenses and unrealized foreign exchange gains and losses on
unsettled forward foreign exchange contracts. Adjusted EPS is
computed as Adjusted Net Income divided by Diluted Weighted Average
Shares Outstanding. EBITDA is computed as net income (loss) before
interest, taxes, depreciation, and amortization. Adjusted EBITDA is
computed as EBITDA as further adjusted to exclude restructuring
charges, stock-based compensation, fair value adjustment of warrant
liability, fair value adjustment to contingent consideration,
merger and acquisition related expenses, COVID-19 related expenses
and unrealized foreign exchange gains and losses on unsettled
forward foreign exchange contracts. Adjusted EBITDA Percentage is
computed as Adjusted EBITDA divided by revenue. Net Debt is
computed as total debt minus cash. Reconciliations of Adjusted
Gross Profit to gross profit, Adjusted Gross Profit Percentage to
gross profit percentage, Adjusted Net Income to net income (loss),
EBITDA to net income (loss), Adjusted EBITDA to net income (loss),
Adjusted EBITDA Percentage to net income (loss) percentage and Net
Debt to total debt are each included in this press release
below.
Management believes that these Non-GAAP Financial Measures, when
used in conjunction with GAAP financial measures, provide useful
information to investors about operating results, enhance the
overall understanding of past financial performance and future
prospects, and allow for greater transparency with respect to the
key metrics SMTC uses in its financial and operational decision
making. The Company’s management believes that adjusting for the
additional temporary costs attributable to the COVID-19 pandemic
allows for a better comparison of the Company’s performance to
prior periods, which is consistent with the Company’s recent
amendments to the financial covenants in its financing agreements.
These Non-GAAP Financial Measures are used by management to manage
and monitor SMTC’s performance, and also frequently used by
analysts, investors and other interested parties to evaluate
companies in SMTC’s industry. The presentation of this financial
information is not intended to be considered in isolation or as a
substitute for, or superior to, the financial information prepared
and presented in accordance with GAAP, and should not be construed
as an inference that SMTC’s future results will be unaffected by
any items adjusted for in these Non-GAAP Financial Measures. In
evaluating these non-GAAP measures, you should be aware that in the
future SMTC may incur expenses that are the same as or similar to
some of those adjusted in the presentation below. The Non-GAAP
Financial Measures that SMTC uses are not necessarily comparable to
similarly titled measures used by other companies due to different
methods of calculation.
Forward-Looking Statements
The statements contained in this release that are not purely
historical are forward-looking statements, which involve risk and
uncertainties that could cause actual results to differ materially
from those expressed in the forward-looking statements. These
statements may be identified by their use of forward looking
terminology such as “anticipates,” “believes,” “can,” “continue,”
“could,” “estimates,” “expects,” “intends,” “may,” “plans,”
“potential,” “predicts,” “should,” or “will” or the negative of
these terms or other and similar words, and include, but are not
limited to, statements regarding stability of customer demand,
supply chain visibility, SMTC’s expected financial results for the
second half of 2020 and full year in 2021, including revenue, net
income, Adjusted EBITDA, as well as the anticipated revenue from
specific new programs, the expectation of continuing acceleration
of customer programs moving through the customer certification
process, into new product introduction phase and entering
production that will continue to ramp in 2021, its ability to meet
customers’ production requirements, its ability to continue
operations in accordance with applicable regulations, and access to
additional funding under its credit facilities. For these
statements, SMTC claims the protection of the safe harbor for
forward-looking statements contained in the Private Securities
Litigation Reform Act of 1995. Risks and uncertainties that may
cause future results to differ from forward looking statements
include the effect of the expanded outbreak of the COVID-19
pandemic on the economy generally and on SMTC, its operations,
fluctuations in demand for customers’ products and changes in
customers’ product sources, disruptions to the supply chain,
availability of labor resources, delivery logistics, component
shortages, availability of credit or lending facilities, challenges
of managing quickly expanding operations, competition in the
electronics manufacturing services industry, changes in regulations
and guidance from federal, state and local governments and public
health officials, and others risks and uncertainties discussed in
SMTC’s most recent filings with the Securities and Exchange
Commission. The forward-looking statements contained in this
release are made as of the date hereof and SMTC assumes no
obligation to update the forward-looking statements, or to update
the reasons why actual results could differ materially from those
projected in the forward-looking statements.
About SMTC
SMTC Corporation was founded in 1985 and acquired MC Assembly
Holdings, Inc. in November 2018. SMTC has more than 50
manufacturing and assembly lines in the United States and Mexico
which creates a powerful low-to-medium volume, high-mix, end-to-end
global electronics manufacturing services (EMS) provider. With
local support and expanded manufacturing capabilities globally,
including fully integrated contract manufacturing services with a
focus on global original equipment manufacturers and emerging
technology companies, including those in the Avionics, Aerospace
and Defense, Industrial IoT, Power and Clean Technology, Medical
and Safety, Retail and Payment Systems, Semiconductors, Telecom,
Networking and Communications, and Test and Measurement industries.
As a mid-size provider of end-to-end EMS, SMTC provides printed
circuit board assembly production, systems integration and
comprehensive testing services, enclosure fabrication, as well as
product design, and sustaining engineering and supply chain
management services. SMTC services extend over the entire
electronic product life cycle from the development and introduction
of new products through to the growth, maturity and end-of-life
phases. For further information on SMTC Corporation, please visit
our website at www.smtc.com.
| Consolidated Statements of Operations and
Comprehensive Income (Loss) |
|
|
| (Unaudited) |
|
|
|
|
|
|
|
| |
Three months
ended |
|
Nine months
ended |
| (Expressed in thousands of
U.S. dollars, except number of shares and per share amounts) |
September
27,2020 |
|
September
29,2019 |
|
September
27,2020 |
|
September
29,2019 |
| |
|
|
|
|
|
|
|
| Revenue |
$ |
99,547 |
|
|
$ |
88,682 |
|
|
$ |
285,091 |
|
|
$ |
282,267 |
|
| Cost of sales |
|
88,445 |
|
|
|
79,776 |
|
|
|
253,664 |
|
|
|
255,740 |
|
| Gross profit |
|
11,102 |
|
|
|
8,906 |
|
|
|
31,427 |
|
|
|
26,527 |
|
| Selling, general and administrative expenses |
|
6,710 |
|
|
|
6,549 |
|
|
|
21,036 |
|
|
|
19,908 |
|
| Gain on contingent consideration |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(3,050 |
) |
| Restructuring
charges |
|
871 |
|
|
|
6,454 |
|
|
|
525 |
|
|
|
8,624 |
|
| Operating earnings |
|
3,521 |
|
|
|
(4,097 |
) |
|
|
9,866 |
|
|
|
1,045 |
|
| Fair value loss (gain) on warrant liability |
|
133 |
|
|
|
(858 |
) |
|
|
15 |
|
|
|
(919 |
) |
| Interest expense |
|
1,941 |
|
|
|
2,679 |
|
|
|
6,021 |
|
|
|
8,349 |
|
| Net income (loss) before income taxes |
|
1,447 |
|
|
|
(5,918 |
) |
|
|
3,830 |
|
|
|
(6,385 |
) |
| Income tax expense (recovery) |
|
|
|
|
|
|
|
| Current |
|
286 |
|
|
|
(103 |
) |
|
|
872 |
|
|
|
592 |
|
| Deferred |
|
(82 |
) |
|
|
(81 |
) |
|
|
(15 |
) |
|
|
14 |
|
| |
|
204 |
|
|
|
(184 |
) |
|
|
857 |
|
|
|
606 |
|
| Net income (loss) and
comprehensive income (loss) |
$ |
1,243 |
|
|
$ |
(5,734 |
) |
|
$ |
2,973 |
|
|
$ |
(6,991 |
) |
| |
|
|
|
|
|
|
|
| Basic income (loss) per share |
$ |
0.04 |
|
|
$ |
(0.20 |
) |
|
$ |
0.11 |
|
|
$ |
(0.28 |
) |
| Diluted income (loss) per share |
$ |
0.04 |
|
|
$ |
(0.20 |
) |
|
$ |
0.10 |
|
|
$ |
(0.28 |
) |
| |
|
|
|
|
|
|
|
| Weighted average number of shares outstanding |
|
|
|
|
|
|
|
| Basic |
|
28,214,800 |
|
|
|
28,057,763 |
|
|
|
28,207,943 |
|
|
|
24,954,875 |
|
| Diluted |
|
29,636,319 |
|
|
|
28,057,763 |
|
|
|
29,629,462 |
|
|
|
24,954,875 |
|
| Consolidated Balance Sheets |
|
|
|
| (Unaudited) |
|
|
|
| |
|
|
|
|
(Expressed in thousands of U.S. dollars) |
September 27,2020 |
|
December 29,2019 |
| Assets |
|
|
|
| |
|
|
|
| Current assets: |
|
|
|
| Cash |
$ |
169 |
|
|
$ |
1,368 |
|
| Accounts receivable - net |
|
73,406 |
|
|
|
69,919 |
|
| Unbilled contract assets |
|
42,736 |
|
|
|
26,271 |
|
| Inventories - net |
|
51,537 |
|
|
|
47,826 |
|
| Prepaid expenses and other assets |
|
6,564 |
|
|
|
7,044 |
|
| Derivative assets |
|
720 |
|
|
|
- |
|
| Income taxes
receivable |
|
160 |
|
|
|
- |
|
| |
|
175,292 |
|
|
|
152,428 |
|
| Property, plant and equipment - net |
|
23,397 |
|
|
|
25,310 |
|
| Operating lease right of use assets - net |
|
5,897 |
|
|
|
3,330 |
|
| Goodwill |
|
18,165 |
|
|
|
18,165 |
|
| Intangible assets - net |
|
10,029 |
|
|
|
12,747 |
|
| Deferred income taxes - net |
|
555 |
|
|
|
540 |
|
| Deferred financing
costs - net |
|
742 |
|
|
|
859 |
|
| Total assets |
$ |
234,077 |
|
|
$ |
213,379 |
|
| |
|
|
|
| Liabilities and Shareholders’ Equity |
|
|
|
| |
|
|
|
| Current liabilities: |
|
|
|
| Revolving credit facility |
|
34,356 |
|
|
|
34,701 |
|
| Accounts payable |
|
77,979 |
|
|
|
74,126 |
|
| Accrued liabilities |
|
23,125 |
|
|
|
11,164 |
|
| Warrant liability |
|
1,745 |
|
|
|
1,730 |
|
| Restructuring liability |
|
364 |
|
|
|
1,597 |
|
| Income taxes payable |
|
254 |
|
|
|
157 |
|
| Current portion of long-term debt |
|
2,188 |
|
|
|
1,250 |
|
| Current portion of operating lease obligations |
|
1,452 |
|
|
|
1,128 |
|
| Current portion of
finance lease obligations |
|
1,818 |
|
|
|
1,226 |
|
| |
|
143,281 |
|
|
|
127,079 |
|
| |
|
|
|
| Long-term debt |
|
32,513 |
|
|
|
33,750 |
|
| Operating lease obligations |
|
5,042 |
|
|
|
2,615 |
|
| Finance lease
obligations |
|
8,696 |
|
|
|
8,838 |
|
| Total liabilities |
|
189,532 |
|
|
|
172,282 |
|
| Shareholders’ equity: |
|
|
|
| Capital stock |
|
508 |
|
|
|
508 |
|
| Additional paid-in capital |
|
293,864 |
|
|
|
293,389 |
|
| Deficit |
|
(249,827 |
) |
|
|
(252,800 |
) |
| |
|
44,545 |
|
|
|
41,097 |
|
| Total liabilities and
shareholders’ equity |
$ |
234,077 |
|
|
$ |
213,379 |
|
|
Consolidated Statements of Cash Flows |
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
| |
|
|
|
| (Expressed
in thousands of U.S. dollars) |
Three months ended |
|
Nine months ended |
|
Cash provided by (used in): |
September 27,2020 |
|
September 29,2019 |
|
September 27,2020 |
|
September 29,2019 |
|
Operations: |
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
1,243 |
|
|
$ |
(5,734 |
) |
|
$ |
2,973 |
|
|
$ |
(6,991 |
) |
| Items not
involving cash: |
|
|
|
|
|
|
|
| Depreciation
on property, plant and equipment |
|
1,545 |
|
|
|
1,649 |
|
|
|
4,767 |
|
|
|
4,902 |
|
| Amortization
of acquired intangible assets |
|
354 |
|
|
|
1,844 |
|
|
|
2,718 |
|
|
|
5,532 |
|
| Unrealized
foreign exchange gain on unsettled forward exchange contracts |
|
(261 |
) |
|
|
- |
|
|
|
(720 |
) |
|
|
- |
|
| Deferred
income taxes |
|
(82 |
) |
|
|
(81 |
) |
|
|
(15 |
) |
|
|
14 |
|
| Write down
of property, plant and equipment |
|
- |
|
|
|
261 |
|
|
|
- |
|
|
|
261 |
|
| Amortization
of deferred financing fees |
|
304 |
|
|
|
755 |
|
|
|
892 |
|
|
|
1,300 |
|
| Stock-based
compensation |
|
158 |
|
|
|
353 |
|
|
|
475 |
|
|
|
538 |
|
| Change in
fair value of warrant liability |
|
133 |
|
|
|
(858 |
) |
|
|
15 |
|
|
|
(919 |
) |
| Change in
fair value of contingent consideration |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(3,050 |
) |
| |
|
|
|
|
|
|
|
| Change in
non-cash operating working capital: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
(8,335 |
) |
|
|
3,743 |
|
|
|
(3,487 |
) |
|
|
11,778 |
|
|
Unbilled contract assets |
|
(4,089 |
) |
|
|
829 |
|
|
|
(16,465 |
) |
|
|
(6,385 |
) |
|
Inventories |
|
(1,412 |
) |
|
|
(3,386 |
) |
|
|
(3,711 |
) |
|
|
3,668 |
|
|
Prepaid expensesand other assets |
|
249 |
|
|
|
33 |
|
|
|
480 |
|
|
|
(1,095 |
) |
|
Income taxes payable |
|
(13 |
) |
|
|
(319 |
) |
|
|
(63 |
) |
|
|
(116 |
) |
|
Accounts payable |
|
7,055 |
|
|
|
285 |
|
|
|
3,678 |
|
|
|
(9,845 |
) |
|
Accrued liabilities |
|
3,089 |
|
|
|
1,458 |
|
|
|
11,964 |
|
|
|
(265 |
) |
|
Restructuring liability |
|
(314 |
) |
|
|
1,879 |
|
|
|
(1,233 |
) |
|
|
2,736 |
|
|
Net change in operating lease right of use asset and liability |
|
183 |
|
|
|
(51 |
) |
|
|
184 |
|
|
|
414 |
|
| |
|
(193 |
) |
|
|
2,660 |
|
|
|
2,452 |
|
|
|
2,477 |
|
|
Financing: |
|
|
|
|
|
|
|
| Repayments
of revolving credit facility |
|
413 |
|
|
|
21,092 |
|
|
|
(345 |
) |
|
|
9,820 |
|
| Repayments
of long-term debt |
|
(312 |
) |
|
|
(22,000 |
) |
|
|
(937 |
) |
|
|
(22,625 |
) |
| Debt
issuance and deferred financing fees |
|
(62 |
) |
|
|
(321 |
) |
|
|
(137 |
) |
|
|
(371 |
) |
| Principal
repayments of finance lease obligations |
|
(321 |
) |
|
|
(390 |
) |
|
|
(997 |
) |
|
|
(1,199 |
) |
| Proceeds
from issuance of common stock rights offerings |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
14,044 |
|
|
Proceeds from issuance of stock options |
|
- |
|
|
|
45 |
|
|
|
- |
|
|
|
45 |
|
| |
|
(282 |
) |
|
|
(1,574 |
) |
|
|
(2,416 |
) |
|
|
(286 |
) |
|
Investing: |
|
|
|
|
|
|
|
|
Purchase of property, plant and equipment |
|
333 |
|
|
|
(1,119 |
) |
|
|
(1,235 |
) |
|
|
(3,191 |
) |
|
|
|
333 |
|
|
|
(1,119 |
) |
|
|
(1,235 |
) |
|
|
(3,191 |
) |
| Decrease in
cash |
|
(142 |
) |
|
|
(33 |
) |
|
|
(1,199 |
) |
|
|
(1,000 |
) |
|
Cash, beginning of period |
|
311 |
|
|
|
634 |
|
|
|
1,368 |
|
|
|
1,601 |
|
|
Cash, end of the period |
$ |
169 |
|
|
$ |
601 |
|
|
$ |
169 |
|
|
$ |
601 |
|
| Supplementary Information: |
|
|
|
|
|
|
|
| Reconciliation of Adjusted Gross Profit
and Adjusted Gross Profit Percentage |
|
|
| (Unaudited) |
|
|
|
|
|
|
|
| |
Three months
ended |
|
Nine months
ended |
|
(Expressed in thousands of U.S. dollars) |
September 27,2020 |
|
September 29,2019 |
|
September 27,2020 |
|
September 29,2019 |
| |
|
|
|
|
|
|
|
| Gross
Profit |
$ |
11,102 |
|
|
$ |
8,906 |
|
|
$ |
31,427 |
|
|
$ |
26,527 |
|
| Add (deduct): |
|
|
|
|
|
|
|
|
Amortization of intangible assets |
|
354 |
|
|
|
1,844 |
|
|
|
2,718 |
|
|
|
5,532 |
|
|
Unrealized foreign exchange gain |
|
|
|
|
|
|
|
|
on unsettled forward exchange contracts |
|
(261 |
) |
|
|
- |
|
|
|
(720 |
) |
|
|
- |
|
|
COVID-19 related expenses |
|
1,348 |
|
|
|
- |
|
|
|
2,533 |
|
|
|
- |
|
| Adjusted Gross
Profit |
$ |
12,543 |
|
|
$ |
10,750 |
|
|
$ |
35,958 |
|
|
$ |
32,059 |
|
| Adjusted Gross Profit
Percentage |
|
12.6 |
% |
|
|
12.1 |
% |
|
|
12.6 |
% |
|
|
11.4 |
% |
| Supplementary Information: |
|
|
|
|
|
|
|
| Reconciliation of Adjusted Net Income and
Adjusted EPS |
|
|
|
|
| (Unaudited) |
|
|
|
|
|
|
|
| |
Three months
ended |
|
Nine months
ended |
|
(Expressed in thousands of U.S. dollars) |
September 27,2020 |
|
September 29,2019 |
|
September 27,2020 |
|
September 29,2019 |
| Net income
(loss) |
$ |
1,243 |
|
|
$ |
(5,734 |
) |
|
$ |
2,973 |
|
|
$ |
(6,991 |
) |
| Add (deduct): |
|
|
|
|
|
|
|
|
Amortization of intangible assets |
|
354 |
|
|
|
1,844 |
|
|
|
2,718 |
|
|
|
5,532 |
|
|
Restructuring charges |
|
871 |
|
|
|
6,454 |
|
|
|
525 |
|
|
|
8,624 |
|
|
Stock compensation expense |
|
158 |
|
|
|
353 |
|
|
|
475 |
|
|
|
538 |
|
|
Fair value adjustment of warrant liability |
|
133 |
|
|
|
(858 |
) |
|
|
15 |
|
|
|
(919 |
) |
|
Fair value adjustment of contingent consisderation |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(3,050 |
) |
|
Merger and acquisitions related expenses |
|
- |
|
|
|
68 |
|
|
|
- |
|
|
|
232 |
|
|
COVID-19 related expenses |
|
1,348 |
|
|
|
- |
|
|
|
2,533 |
|
|
|
- |
|
|
Unrealized foreign exchange gain |
|
|
|
|
|
|
|
|
on unsettled forward exchange contracts |
|
(261 |
) |
|
|
- |
|
|
|
(720 |
) |
|
|
- |
|
|
Adjusted Net income |
$ |
3,846 |
|
|
$ |
2,127 |
|
|
$ |
8,519 |
|
|
$ |
3,966 |
|
| Adjusted EPS |
$ |
0.13 |
|
|
$ |
0.08 |
|
|
$ |
0.29 |
|
|
$ |
0.16 |
|
| Weighted average number of shares outstanding |
|
|
|
|
|
|
|
| Basic |
|
28,214,800 |
|
|
|
28,057,763 |
|
|
|
28,207,943 |
|
|
|
24,954,875 |
|
| Diluted |
|
29,636,319 |
|
|
|
28,057,763 |
|
|
|
29,629,462 |
|
|
|
24,954,875 |
|
| Supplementary Information: |
|
|
|
|
|
|
|
| Reconciliation of EBITDA, Adjusted EBITDA
and Adjusted EBITDA Percentage |
|
|
|
|
| (Unaudited) |
|
|
|
|
|
|
|
| |
Three months
ended |
|
Nine months
ended |
|
(Expressed in thousands of U.S. dollars) |
September 27,2020 |
|
September 29,2019 |
|
September 27,2020 |
|
September 29,2019 |
| Net income
(loss) |
$ |
1,243 |
|
|
$ |
(5,734 |
) |
|
$ |
2,973 |
|
|
$ |
(6,991 |
) |
| Add (deduct): |
|
|
|
|
|
|
|
|
Depreciation of property, plant and equipment |
|
1,545 |
|
|
|
1,649 |
|
|
|
4,767 |
|
|
|
4,902 |
|
|
Amortization of Intangible assets |
|
354 |
|
|
|
1,844 |
|
|
|
2,718 |
|
|
|
5,532 |
|
|
Interest |
|
1,941 |
|
|
|
2,679 |
|
|
|
6,021 |
|
|
|
8,349 |
|
|
Income tax expense (recovery) |
|
204 |
|
|
|
(184 |
) |
|
|
857 |
|
|
|
606 |
|
| EBITDA |
$ |
5,287 |
|
|
$ |
254 |
|
|
$ |
17,336 |
|
|
$ |
12,398 |
|
| |
|
|
|
|
|
|
|
| Add (deduct): |
|
|
|
|
|
|
|
|
Restructuring charges |
|
871 |
|
|
|
6,454 |
|
|
|
525 |
|
|
|
8,624 |
|
|
Stock compensation expense |
|
158 |
|
|
|
353 |
|
|
|
475 |
|
|
|
538 |
|
|
Fair value adjustment of warrant liability |
|
133 |
|
|
|
(858 |
) |
|
|
15 |
|
|
|
(919 |
) |
|
Fair value adjustment of contingent consideration |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(3,050 |
) |
|
Merger and acquisitions related expenses |
|
- |
|
|
|
68 |
|
|
|
- |
|
|
|
232 |
|
|
COVID-19 related expenses |
|
1,348 |
|
|
|
- |
|
|
|
2,533 |
|
|
|
- |
|
|
Unrealized foreign exchange gain |
|
|
|
|
|
|
|
|
on unsettled forward exchange contracts |
|
(261 |
) |
|
|
- |
|
|
|
(720 |
) |
|
|
- |
|
| Adjusted EBITDA |
$ |
7,536 |
|
|
$ |
6,271 |
|
|
$ |
20,164 |
|
|
$ |
17,823 |
|
| Adjusted EBITDA
Percentage |
|
7.6 |
% |
|
|
7.1 |
% |
|
|
7.1 |
% |
|
|
6.3 |
% |
| Supplementary
Information: |
|
|
|
Reconciliation of Second Half 2020 Guidance
Range |
|
| (Unaudited) |
|
|
| |
Six Months Ended January 3, 2021 |
|
(Expressed in thousands of U.S. dollars) |
Low |
High |
|
Net Income |
$ |
2,375 |
|
$ |
3,375 |
| Add (deduct): |
|
|
|
Depreciation |
|
3,000 |
|
|
3,000 |
|
Amortization of Intangible assets |
|
700 |
|
|
700 |
|
Interest expense |
|
3,700 |
|
|
3,700 |
|
Income tax expense |
|
500 |
|
|
500 |
| EBITDA |
$ |
10,275 |
|
$ |
11,275 |
| |
|
|
| Add (deduct): |
|
|
|
Restructuring charges |
|
900 |
|
|
900 |
|
Stock compensation expense |
|
425 |
|
|
425 |
|
COVID-19 related expenses |
|
2,400 |
|
|
2,400 |
|
Adjusted EBITDA |
$ |
14,000 |
|
$ |
15,000 |
|
Supplementary Information: |
|
|
|
Reconciliation of Full Year 2021 Guidance
Range |
|
(Unaudited) |
|
|
| |
Twelve
Months Ended January 2, 2022 |
|
(Expressed in thousands of U.S. dollars) |
Low |
High |
| |
|
|
|
Net Income |
$ |
14,300 |
|
$ |
18,300 |
| Add
(deduct): |
|
|
|
Depreciation |
|
5,800 |
|
|
5,800 |
|
Amortization of Intangible assets |
|
1,200 |
|
|
1,200 |
|
Interest expense |
|
7,000 |
|
|
7,000 |
|
Income tax expense |
|
1,300 |
|
|
1,300 |
|
|
|
|
| EBITDA |
$ |
29,600 |
|
$ |
33,600 |
|
|
|
|
| Add
(deduct): |
|
|
|
Restructuring charges |
|
|
|
Stock compensation expense |
|
700 |
|
|
700 |
|
COVID-19 related expenses |
|
2,700 |
|
|
2,700 |
|
Adjusted EBITDA |
$ |
33,000 |
|
$ |
37,000 |
| Supplementary
Information: |
|
|
|
| Reconciliation of Net
Debt |
|
|
|
| (Unaudited) |
|
|
|
| |
|
|
|
|
(Expressed in thousands of U.S. dollars) |
September 27,2020 |
|
December 29,2019 |
| |
|
|
|
|
Revolver |
$ |
34,356 |
|
|
$ |
34,701 |
|
|
Long-term debt |
|
37,813 |
|
|
|
38,750 |
|
|
Discount (long-term debt) |
|
(3,112 |
) |
|
|
(3,750 |
) |
|
Finance lease obligations1 |
|
10,514 |
|
|
|
10,064 |
|
|
Operating lease obligations2 |
|
6,494 |
|
|
|
3,743 |
|
| |
$ |
86,065 |
|
|
$ |
83,508 |
|
| Cash |
$ |
(169 |
) |
|
$ |
(1,368 |
) |
| Net Debt |
$ |
85,896 |
|
|
$ |
82,140 |
|
| |
|
|
|
| 1Capital lease
obligations include $1.4 million for new lease effective September
2020 |
| 2Operating lease
obligations include $3.6 million for new lease for Fremont facility
effective July 2020 |
Investor Relations Contact
Peter SeltzbergManaging DirectorDarrow Associates,
Inc.516-419-9915pseltzberg@darrowir.com
Grafico Azioni SMTC (NASDAQ:SMTX)
Storico
Da Feb 2025 a Mar 2025
Grafico Azioni SMTC (NASDAQ:SMTX)
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Da Mar 2024 a Mar 2025
