The foregoing review of important factors that could cause actual results to differ from expectations should not be construed as exhaustive and should be read in conjunction with the information contained in the Company’s SEC filings, including, but not limited to, the risk factors included in the Company’s filings with the SEC, including the Company’s Annual Report on Form 10-K for the fiscal year ended January 3, 2021 . No assurance can be given that these are all of the factors that could cause actual results to vary materially from the forward-looking statements.
Except as required by applicable law, the Company does not intend, and assumes no obligation, to update any forward-looking statements. The Company’s stockholders are advised, however, to consult any future disclosures the Company makes on related subjects as may be detailed in the Company’s other filings made from time to time with the SEC.
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 | Twelve months ended | |||||||||||||||
| (Expressed in thousands of U.S. dollars, except number of shares and per share amounts) | January 3, 2021 | December 29, 2019 | January 3, 2021 | December 29, 2019 | ||||||||||||
| Revenue | $ | 101,359 | $ | 90,244 | $ | 386,450 | $ | 372,511 | ||||||||
| Cost of sales | 89,513 | 79,750 | 343,177 | 335,490 | ||||||||||||
| Gross profit | 11,846 | 10,494 | 43,273 | 37,021 | ||||||||||||
| Selling, general and administrative expenses | 8,566 | 7,132 | 29,602 | 27,040 | ||||||||||||
| Change in fair value of contingent consideration | - | - | - | (3,050 | ) | |||||||||||
| Restructuring charges | 3,600 | (669 | ) | 4,125 | 7,955 | |||||||||||
| Operating earnings (loss) | (320 | ) | 4,031 | 9,546 | 5,076 | |||||||||||
| Fair value loss (gain) on warrant liability | 837 | 640 | 852 | (279 | ) | |||||||||||
| Interest expense | 2,028 | 2,213 | 8,049 | 10,562 | ||||||||||||
| Net income (loss) before income taxes | (3,185 | ) | 1,178 | 645 | (5,207 | ) | ||||||||||
| Income tax expense (recovery) | ||||||||||||||||
| Current | 383 | 356 | 1,255 | 948 | ||||||||||||
| Deferred | (14 | ) | (174 | ) | (29 | ) | (160 | ) | ||||||||
| 369 | 182 | 1,226 | 788 | |||||||||||||
| Net income (loss) and comprehensive income (loss) | $ | (3,554 | ) | $ | 996 | $ | (581 | ) | $ | (5,995 | ) | |||||
| Basic income (loss) per share | $ | (0.13 | ) | $ | 0.04 | $ | (0.02 | ) | $ | (0.23 | ) | |||||
| Diluted income (loss) per share | $ | (0.13 | ) | $ | 0.04 | $ | (0.02 | ) | $ | (0.23 | ) | |||||
| Weighted average number of shares outstanding | ||||||||||||||||
| Basic | 28,353,147 | 28,117,372 | 28,244,244 | 25,745,499 | ||||||||||||
| Diluted | 28,353,147 | 28,117,372 | 28,244,244 | 25,745,499 | ||||||||||||
