SMTC Corporation Announces Fourth Quarter and Full Year 2020 Financial Results
TORONTO – 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, announced its fourth quarter and full year 2020 financial results.
Fourth Quarter Financial Highlights
- Fourth quarter 2020 revenue was $101.3 million, up 12.3% vs. the prior year.
- EPS was ($0.13) compared to $0.04 in the prior year.
- Adjusted EPS was $0.12 compared to $0.10 in the prior year.
- Net Loss was $3.6 million compared to $1.0 million net income in the prior year.
- Adjusted Net Income was $3.4 million compared to $2.9 million in the prior year.
- EBITDA was $0.6 million compared to $6.7 million in the prior year.
- Adjusted EBITDA was $7.2 million compared to $7.0 million in the prior year. In calculating Adjusted EBITDA, primary addbacks to EBITDA included $3.6 million of restructuring charges associated with the Company’s Mexico site consolidation, in addition to, $1.3 million of merger and acquisitions related expenditures.
2020 Full Year Financial Highlights
- 2020 revenue was $386.5 million, up 3.8% vs. the prior year.
- EPS was ($0.02) compared to ($0.23) the prior year.
- Adjusted EPS was $0.42 compared to $0.27 the prior year.
- Net Loss was $0.6 million compared to $6.0 million the prior year.
- Adjusted Net Income was $11.9 million compared to $6.9 million the prior year.
- EBITDA was $17.9 million compared to $19.1 million the prior year.
- Adjusted EBITDA was $27.4 million compared to $24.8 million the prior year.
“I am proud that our organization did an outstanding job supporting our customers and employee wellness during the pandemic and we were able to successfully navigate through the challenges presented by the COVID-19 pandemic during the year,” said Ed Smith, SMTC’s President and Chief Executive Officer. “We finished 2020 on a strong note with sales up 12.2% compared to the same quarter in the prior year and are looking forward to opportunities ahead for SMTC.”
“We saw a strong rebound and expansion in our semiconductor business in 2020 and our focus on the Industrial IoT market and our growth in the defense and aerospace industry enabled us to provide a stable and solid base to grow our business,” noted Smith.
| Twelve months ended January 03, 2021 | Twelve months ended December 29, 2019 | Change | |||||||
| Industry Sector | $ | % | $ | % | $ | % | |||
| Industrial IoT, Power and Clean Technology | 154.2 | 39.9 | 147.3 | 39.5 | 6.9 | 4.7 | |||
| Semiconductors | 52.6 | 13.6 | 23.0 | 6.2 | 29.6 | 128.7 | |||
| Medical and Safety | 44.2 | 11.4 | 45.5 | 12.2 | (1.3) | (2.9) | |||
| Retail and Payment Systems | 41.1 | 10.6 | 46.1 | 12.4 | (5.0) | (10.8) | |||
| Avionics, Aerospace and Defense | 37.3 | 9.7 | 24.7 | 6.6 | 12.6 | 51.0 | |||
| Test and Measurement | 35.4 | 9.2 | 48.7 | 13.1 | (13.3) | (27.3) | |||
| Telecom, Networking and Communications | 21.7 | 5.6 | 37.2 | 10.0 | (15.5) | (41.7) | |||
| Total | 386.5 | 100.0 | 372.5 | 100.0 | 14.0 | 3.8% | |||
The Company initiated its previously announced Mexican consolidation to enhance operational efficiencies and incurred $3.6 million of restructuring charges in the fourth quarter. The Company also generated $3.3 million in changes in working-capital from operations in the fourth quarter and capital expenditures were $2.4 million. During the fourth quarter, the Company also amended its credit facilities to provide increased covenant flexibility as it navigates through the COVID-19 pandemic.
As of the end of the fiscal year 2020, subject to borrowing base conditions, SMTC had $28.4 million available for borrowing under its asset-based lending facility and reduced its debt-to-adjusted EBITDA ratio to 2.62 (excluding leases).
