TORONTO, Nov. 04, 2020 (GLOBE NEWSWIRE) -- 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 ended
Sept. 27, 2020 | Three months ended
Sept. 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 Seltzberg
Managing Director
Darrow Associates, Inc.
516-419-9915
pseltzberg@darrowir.com
