Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Apr. 30, 2017 | Jul. 20, 2017 | Oct. 31, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Apr. 30, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | sgma | ||
Entity Registrant Name | SIGMATRON INTERNATIONAL INC | ||
Entity Central Index Key | 915,358 | ||
Current Fiscal Year End Date | --04-30 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 19,568,957 | ||
Entity Common Stock, Shares Outstanding | 4,195,813 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Apr. 30, 2017 | Apr. 30, 2016 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 3,493,324 | $ 4,325,268 |
Accounts receivable, less allowance for doubtful accounts of $100,000 at April 30, 2017 and 2016, respectively | 26,656,871 | 17,844,228 |
Inventories, net | 73,571,238 | 67,649,022 |
Prepaid expenses and other assets | 2,971,087 | 2,128,128 |
Refundable income taxes | 339,791 | 774,847 |
Note receivable | 887,531 | 887,531 |
Other receivables | 1,112,071 | 481,860 |
Total current assets | 109,031,913 | 94,090,884 |
Property, machinery and equipment, net | 33,008,714 | 33,080,858 |
Intangible assets, net | 4,213,235 | 4,703,245 |
Goodwill | 3,222,899 | 3,222,899 |
Deferred income taxes | 236,087 | 233,057 |
Other assets | 1,472,816 | 1,418,398 |
Total other long-term assets | 9,145,037 | 9,577,599 |
Total assets | 151,185,664 | 136,749,341 |
CURRENT LIABILITIES | ||
Trade accounts payable | 44,859,344 | 37,011,786 |
Accrued expenses | 3,623,106 | 2,772,301 |
Accrued wages | 4,489,602 | 4,199,147 |
Income taxes payable | 69,868 | |
Current portion of long-term debt | 351,562 | 165,000 |
Current portion of capital lease obligations | 1,711,204 | 1,374,898 |
Current portion of contingent consideration | 286,240 | 275,288 |
Current portion of deferred rent | 220,288 | 187,889 |
Total current liabilities | 55,611,214 | 45,986,309 |
Long-term debt, less current portion | 27,192,246 | 23,572,152 |
Capital lease obligations, less current portion | 3,364,825 | 3,217,758 |
Contingent consideration, less current portion | 237,578 | 875,793 |
Other long-term liabilities | 991,017 | 870,542 |
Deferred rent, less current portion | 555,348 | 795,289 |
Deferred income taxes | 1,361,291 | 1,355,620 |
Total long-term liabilities | 33,702,305 | 30,687,154 |
Total liabilities | 89,313,519 | 76,673,463 |
Commitments and contingencies | ||
STOCKHOLDERS' EQUITY | ||
Preferred stock, $.01 par value; 500,000 shares authorized, none issued or outstanding | ||
Common stock, $.01 par value; 12,000,000 shares authorized, 4,195,813 and 4,183,955 shares issued and outstanding at April 30, 2017 and 2016, respectively | 41,702 | 41,560 |
Capital in excess of par value | 22,952,535 | 22,546,616 |
Retained earnings | 38,877,908 | 37,487,702 |
Total stockholders' equity | 61,872,145 | 60,075,878 |
Total liabilities and stockholders' equity | $ 151,185,664 | $ 136,749,341 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Apr. 30, 2017 | Apr. 30, 2016 |
Consolidated Balance Sheets [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 100,000 | $ 100,000 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 500,000 | 500,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 12,000,000 | 12,000,000 |
Common stock, shares issued | 4,195,813 | 4,183,955 |
Common stock, shares outstanding | 4,195,813 | 4,183,955 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) | 12 Months Ended | |
Apr. 30, 2017 | Apr. 30, 2016 | |
Consolidated Statements Of Income [Abstract] | ||
Net sales | $ 252,235,794 | $ 253,904,146 |
Cost of products sold | 228,194,867 | 228,385,615 |
Gross profit | 24,040,927 | 25,518,531 |
Selling and administrative expenses | 20,774,729 | 21,194,211 |
Operating income | 3,266,198 | 4,324,320 |
Other income, net | (367,338) | (165,864) |
Interest expense | 1,135,853 | 1,004,988 |
Income before income tax expense | 2,497,683 | 3,485,196 |
Income tax expense | 1,107,477 | 1,402,537 |
NET INCOME | $ 1,390,206 | $ 2,082,659 |
Earnings per common share, Basic | $ 0.33 | $ 0.50 |
Earnings per common share, Diluted | $ 0.33 | $ 0.49 |
Weighted-average shares of common stock outstanding, Basic | 4,186,183 | 4,164,815 |
Weighted-average shares of common stock outstanding, Diluted | 4,213,592 | 4,224,030 |
Consolidated Statements Of Chan
Consolidated Statements Of Changes In Stockholders' Equity - USD ($) | Preferred Stock [Member] | Common Stock [Member] | Capital In Excess Of Par Value [Member] | Retained Earnings [Member] | Total |
Balance at Apr. 30, 2015 | $ 40,703 | $ 21,239,641 | $ 35,405,043 | $ 56,685,387 | |
Recognition of stock-based compensation | 588,245 | 588,245 | |||
Exercise of stock options | 20 | 7,180 | 7,200 | ||
Vesting of restricted stock | 69,400 | 69,400 | |||
Sale of restricted stock | 740 | 517,260 | 518,000 | ||
Employee stock purchases | 97 | 52,169 | 52,266 | ||
Tax benefit from contingent consideration | 23,972 | 23,972 | |||
Excess tax benefits on stock options and awards | 48,749 | 48,749 | |||
Net income | 2,082,659 | 2,082,659 | |||
Balance at Apr. 30, 2016 | 41,560 | 22,546,616 | 37,487,702 | 60,075,878 | |
Recognition of stock-based compensation | 332,783 | 332,783 | |||
Exercise of stock options | 12 | 4,308 | 4,320 | ||
Vesting of restricted stock | 113 | 60,536 | 60,649 | ||
Employee stock purchases | 17 | 8,330 | 8,347 | ||
Excess tax expense on stock options and awards | (38) | (38) | |||
Net income | 1,390,206 | 1,390,206 | |||
Balance at Apr. 30, 2017 | $ 41,702 | $ 22,952,535 | $ 38,877,908 | $ 61,872,145 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) | 12 Months Ended | |
Apr. 30, 2017 | Apr. 30, 2016 | |
Cash flows from operating activities | ||
Net income | $ 1,390,206 | $ 2,082,659 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities | ||
Depreciation and amortization | 4,708,876 | 5,119,376 |
Stock-based compensation | 332,783 | 588,245 |
Restricted stock expense | 60,649 | 69,400 |
Recoveries from doubtful accounts | ||
Increase in inventory obsolescence reserve | 300,000 | |
Tax benefit from contingent consideration | (23,972) | |
Deferred income tax expense | 2,641 | 775,477 |
Amortization of intangible assets | 490,010 | 470,899 |
Amortization of financing fees | 111,981 | 53,497 |
Fair value adjustment of contingent consideration | (353,591) | (5,742) |
Loss from disposal or sale of machinery and equipment | 58,456 | 23,101 |
Gain from involuntary conversion on non-monetary assets due to fire | (276,967) | |
Changes in assets and liabilities | ||
Accounts receivable | (8,812,643) | 1,438,964 |
Inventories | (6,222,216) | 1,020,687 |
Prepaid expenses and other assets | (1,092,816) | 40,583 |
Refundable income taxes | 435,056 | (693,801) |
Income taxes payable | 69,868 | (141,297) |
Trade accounts payable | 7,847,558 | 1,173,511 |
Deferred rent | (207,542) | (167,345) |
Accrued expenses and wages | 1,103,930 | 1,472,619 |
Net cash (used in) provided by operating activities | (53,761) | 13,296,861 |
Cash flows from investing activities | ||
Purchases of machinery and equipment | (3,505,486) | (3,049,943) |
Net cash used in investing activities | (3,505,486) | (3,049,943) |
Cash flows from financing activities | ||
Proceeds from the exercise of common stock options | 4,320 | 7,200 |
Proceeds from the sale of restricted stock | 518,000 | |
Proceeds from Employee stock purchases | 8,347 | 52,266 |
Proceeds under equipment note | 932,812 | |
Proceeds under sale leaseback agreements | 904,027 | |
Proceeds from tax benefit on stock options and awards | 48,749 | |
Tax expense on stock options and awards | (38) | |
Payments of contingent consideration | (273,672) | (342,162) |
Payments under capital lease and sale leaseback agreements | (1,610,356) | (1,363,754) |
Payments under equipment note | (29,850) | |
Payments under building notes payable | (165,000) | (165,000) |
Borrowings under lines of credit | 94,123,100 | 194,424,157 |
Payments under lines of credit | (90,958,740) | (201,826,881) |
Payments of financing fees | (207,647) | (166,414) |
Tax benefit from contingent consideration | 23,972 | |
Net cash provided by (used in) financing activities | 2,727,303 | (8,789,867) |
Change in cash | (831,944) | 1,457,051 |
Cash and cash equivalents at beginning of year | 4,325,268 | 2,868,217 |
Cash and cash equivalents at end of year | 3,493,324 | 4,325,268 |
Supplementary disclosures of cash flow information | ||
Cash paid for interest | 994,583 | 964,537 |
Cash paid for income taxes | 603,091 | 1,634,772 |
Purchase of machinery and equipment financed under capital leases | 1,189,701 | 1,308,865 |
Financing of insurance policy | $ 157,805 | 159,616 |
Conversion of accounts receivable into a note receivable | $ 887,531 |
Description Of The Business
Description Of The Business | 12 Months Ended |
Apr. 30, 2017 | |
Description Of The Business [Abstract] | |
Description Of The Business | NOTE A - DESCRIP TION OF THE BUSINESS SigmaTron International, Inc., its subsidiaries, foreign enterprises and international procurement office (collectively, the “Company”) operates in one business segment as an independent provider of electronic manufacturing services (“EMS”), which includes printed circuit board assemblies and completely assembled (box-build) electronic products. In connection with the production of assembled products, the Company also provides services to its customers, including (1) automatic and manual assembly and testing of products; (2) material sourcing and procurement; (3) manufacturing and test engineering support; (4) design services; (5) warehousing and distribution services; and (6) assistance in obtaining product approval from governmental and other regulatory bodies. As of April 30, 2017, the Company provided these manufacturing services through an international network of facilities located in the United States, Mexico, China, Vietnam and Taiwan. Approximately 14.0% and 15.0% of the total non-current consolidated assets of the Company are located outside of the United States as of April 30, 2017 and 2016, respectively. |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 12 Months Ended |
Apr. 30, 2017 | |
Summary Of Significant Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Consolidation Policy The consolidated financial statements include the accounts and transactions of SigmaTron International, Inc. (“SigmaTron”), its wholly-owned subsidiaries, Standard Components de Mexico, S.A., AbleMex S.A. de C.V., Digital Appliance Controls de Mexico, S.A. de C.V., Spitfire Controls (Vietnam) Co. Ltd., Spitfire Controls (Cayman) Co. Ltd. and SigmaTron International Trading Co., wholly-owned foreign enterprises Suzhou SigmaTron Electronics Co. Ltd., and SigmaTron Electronic Technology Co., Ltd. (collectively, “SigmaTron China”), and its international procurement office, SigmaTron Taiwan. The functional currency of the Mexican, Vietnamese and Chinese subsidiaries and procurement branch is the U.S. Dollar. Intercompany transactions are eliminated in the consolidated financial statements. The impact of foreign currency fluctuation for the fiscal year ended April 30, 2017 resulted in foreign currency transaction losses of approximately $508,000 compared to a net foreign currency loss of $59,000 in the prior year and is included in cost of products sold. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates made in preparing the consolidated financial statements include depreciation and amortization periods, the allowance for doubtful accounts, reserves for inventory, lower of cost or market adjustment for inventory, contingent consideration, deferred taxes, uncertain tax positions, valuation allowance for deferred taxes and valuation of goodwill and long-lived assets. Actual results could materially differ from these estimates. Cash and Cash Equivalents Cash and cash equivalents include cash and all highly liquid short-term investments with original maturities within three months of the purchase date. NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued Accounts Receivable The majority of the Company’s accounts receivable are due from companies in the consumer electronics, gaming, fitness, industrial electronics, medical/life sciences, semiconductor, telecommunications and appliance industries. Credit is extended based on evaluation of a customer’s financial condition, and, generally, collateral is not required. Accounts receivable are due in accordance with agreed upon terms, and are stated at amounts due from customers net of an allowance for doubtful accounts. Accounts outstanding longer than the contractual payments terms are considered past due. The Company writes off accounts receivable when they are determined to be uncollectible. The Company has arrangements with various financial institutions to sell certain eligible accounts receivable balances from specific customers. The accounts receivable balances sold are at the election of the Company and the Company incur red fees for such sales, which were not material for the year ended April 30, 2017 or 2016 . The accounts receivable balances are derecognized at the time of sale, as the Company does not have continuing involvement after the point of sale. During the years ended April 30, 2017 and 2016, the Company sold without recourse trade receivables of approximately $95,000,000 and $115,000,000 , respectively. Cash proceeds from these agreements are reflected as operating activities included in the change in accounts receivable in the Company's Consolidated Statements of Cash Flows. Allowance for Doubtful Accounts The Company’s allowance for doubtful accounts relates to receivables not expected to be collected from its customers. This allowance is based on management’s assessment of specific customer balances, considering the age of receivables and financial stability of the customer and a five year average of prior uncollectible amounts. If there is an adverse change in the financial condition of the Company’s customers, or if actual defaults are higher than provided for, an addition to the allowance may be necessary. Inventories Cost is determined by an average cost method and the Company allocates labor and overhead to work-in-process and finished goods. In the event of an inventory write-down, the Company records expense to state the inventory at lower of cost or market. The Company establishes inventory reserves for valuation, shrinkage, and excess and obsolete inventory. The Company records provisions for inventory shrinkage based on historical experience to account for unmeasured usage or loss. The Company records provisions for excess and obsolete inventories for the difference between the cost of inventory and its estimated realizable value based on assumptions about future product demand and market conditions. For convenience, the Company records these inventory reserves against the inventory cost through a contra asset rather than through a new cost basis. Upon a subsequent sale or disposal of the impaired inventory, the corresponding reserve is relieved to ensure the cost basis of the inventory reflects any reductions. Actual results differing from these estimates could significantly affect the Company’s inventories and cost of products sold as the inventory is sold or otherwise relieved. NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued Property, Machinery and Equipment Property, machinery and equipment are valued at cost. The Company provides for depreciation and amortization using the straight-line method over the estimated useful life of the assets: Buildings 20 years Machinery and equipment 5 -12 years Office equipment and software 3 -5 years Tools and dies 12 months Leasehold improvements lesser of lease term or useful life Expenses for repairs and maintenance are charged to selling and administrative expenses as incurred. Deferred Financing Costs Deferred financing costs consist of costs incurred to obtain the Company’s long-term debt and are amortized using the effective interest method over the term of the related debt. Deferred financing fees of $208,583 and $112, 917 net of accumulated amortization of $11,916 and $443,763 , respectively, as of April 30, 2017 and 2016, respectively, are deducted from long term debt on the Company’s balance sheet. Income Taxes The Company’s income tax expense, deferred tax assets and liabilities and reserves for unrecognized tax benefits reflect management’s best assessment of estimated future taxes to be paid. The Company is subject to income taxes in both the U.S. and several foreign jurisdictions. Significant judgments and estimates by management are required in determining the consolidated income tax expense assessment. Deferred income tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities, and are measured using the enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. In evaluating the Company’s ability to recover its deferred tax assets within the jurisdiction from which they arise, the Company considers all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and recent financial operations. In projecting future taxable income, the Company begins with historical results and changes in accounting policies, and incorporates assumptions including the amount of future state, federal and foreign pre-tax operating income, the reversal of temporary differences, and the implementation of feasible and prudent tax planning strategies. These assumptions require significant judgment and estimates by management about the forecasts of future taxable income and are consistent with the plans and estimates the Company uses to manage the underlying businesses. In evaluating the objective evidence that historical results provide, the Company considers three years of cumulative operating income and/or loss. Valuation allowances are established when necessary to reduce deferred income tax assets to an amount more likely than not to be realized. The calculation of the Company’s tax liabilities involves dealing with uncertainties in the application of complex tax laws and regulations in a multitude of jurisdictions across its global operations. Changes in tax laws and rates could also affect recorded deferred tax assets and liabilities in the future. Management is not aware of any such changes that would have a material effect on the Company’s results of operations, cash flows or financial position. A tax benefit from an uncertain tax position may only be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued Income Taxes - Continued The Company adjusts its tax liabilities when its judgment changes as a result of the evaluation of new information not previously available. Due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from its current estimate of the tax liabilities. These differences will be reflected as increases or decreases to income tax expense in the period in which they are determined. Earnings per Share Basic earnings per share are computed by dividing net income (the numerator) by the weighted-average number of common shares outstanding (the denominator) for the period. The computation of diluted earnings per share is similar to the computation of basic earnings per share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potentially dilutive common stock equivalents such as stock options and restricted stock, had been exercised or vested. There were no anti-dilutive common stock equivalents at April 30, 2016. There were 285,000 , anti-dilutive common stock equivalents at April 30, 2017, which have been excluded from the calculation of diluted earnings per share. Twelve Months Ended April 30, 2017 2016 Net income $ 1,390,206 $ 2,082,659 Weighted-average shares Basic 4,186,183 4,164,815 Effect of dilutive stock options 27,409 59,215 Diluted 4,213,592 4,224,030 Basic earnings per share $ 0.33 $ 0.50 Diluted earnings per share $ 0.33 $ 0.49 Revenue Recognition Revenues from sales of the Company's electronic manufacturing services business are recognized when the finished good product is shipped to the customer. In general, and except for consignment inventory, it is the Company's policy to recognize revenue and related costs when the finished goods have been shipped from its facilities, which is also the same point in time that title passes under the terms of the purchase order and control passes to the customer. Finished goods inventory for certain customers is shipped from the Company to an independent warehouse for storage or shipped directly to the customer and stored in a segregated part of the customer’s own facility. Upon the customer’s request for finished goods inventory, the inventory is shipped to the customer if the inventory was stored off-site, or transferred from the segregated part of the customer’s facility for consumption or use by the customer. The Company recognizes revenue upon such shipment or transfer. The Company does not earn a fee for such arrangements. The Company from time to time may ship finished goods from its facilities, which is also the same point in time that title passes under the terms of the purchase order, and invoice the customer at the end of the calendar month. This is done only in special circumstances to accommodate a specific customer. Further, from time to time customers request the Company hold finished goods after they have been invoiced to consolidate finished goods for shipping purposes. The Company generally provides a warranty for workmanship, unless the assembly was designed by the Company, in NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued Revenue Recognition - Continued which case it warrants assembly/design. The Company does not have any installation, acceptance or sales incentives (although the Company has negotiated longer warranty terms in certain instances). The Company assembles and tests assemblies based on customers’ specifications. Historically, the amount of returns for workmanship issues has been de minimis under the Company’s standard or extended warranties. Shipping and Handling Costs The Company records shipping and handling costs as selling and administrative expenses. Customers are typically invoiced for shipping costs and such amounts are included in net sales. Shipping and handling costs were not material to the financial statements for fiscal years 2017 or 2016. Fair Value Measurements Fair value measurements are determined based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants exclusive of any transaction costs. The Company utilizes a fair value hierarchy based upon the observability of inputs used in valuation techniques as follows: Level 1: Observable inputs such as quoted prices in active markets; Level 2: Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. Fair Value of Financial Instruments The Company’s financial instruments include cash and cash equivalents, accounts receivable, note receivable, other receivables, accounts payable and accrued expenses which approximate fair value at April 30, 2017 and 2016, due to their short-term nature. The carrying amounts of the Company’s debt obligations approximate fair value based on future payments discounted at current interest rates for similar obligations or interest rates which fluctuate with the market. The Company measured the contingent consideration included in the fiscal 2013 Spitfire acquisition under the fair value standard (primarily using level 3 measurement inputs). The contingent consideration continues to be measured and reported at fair value at each period end. The Company currently does not have any other non-financial assets and non-financial liabilities that are required to be measured at fair value on a recurring basis. Goodwill Goodwill represents the purchase price in excess of the fair value of assets acquired in business combinations. Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 350, “Intangibles – Goodwill and Other,” requires the Company to assess goodwill and other indefinite-lived intangible assets for impairment at least annually in the absence of an indicator of possible impairment and immediately upon an indicator of possible impairment. The Company is permitted the option to first assess qualitative factors to determine whether the existence of events and circumstances indicates that it is more likely than not that the fair value of any reporting unit is less than its corresponding carrying value. If, after assessing the totality of events and circumstances, the Company concludes that it is not more likely than not that the fair value of any reporting unit is less than its corresponding carrying value, then the Company is not required to take further action. However, if the Company concludes otherwise, then it is required to perform a quantitative impairment test, including computing the fair value of the reporting unit and comparing that value to its carrying value. If the fair value is less than its carrying value, a second step of the test is required to determine if recorded goodwill is impaired. The Company also has the option to NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued Goodwill – Continued bypass the qualitative assessment for goodwill in any period and proceed directly to performing the quantitative impairment test. The Company will be able to resume performing the qualitative assessment in any subsequent period. The Company performed its annual goodwill impairment test as of February 1, 2017 and determined no impairment existed as of that date. The step one analysis was performed using a combination of a market approach and an income approach based on a discounted cash flow approach. Intangible Assets Intangible assets are comprised of finite life intangible assets including patents, trade names, backlog, non-compete agreements, and customer relationships. Finite life intangible assets are amortized on a straight line basis over their estimated useful lives of 5 years for patents, 20 years for trade names, 1 year for backlog and 7 years for non-compete agreements except for customer relationships which are amortized on an accelerated basis over their estimated useful life of 15 years. Impairment of Long-Lived Assets The Company reviews long-lived assets, including amortizable intangible assets, for impairment. Property, machinery and equipment and finite life intangible assets are reviewed whenever events or changes in circumstances occur that indicate possible impairment. If events or changes in circumstances occur that indicate possible impairment, the Company first performs an impairment review based on an undiscounted cash flow analysis at the lowest level at which cash flows of the long-lived assets are largely independent of other groups of its assets and liabilities. This analysis requires management judgment with respect to changes in technology, the continued success of product lines, and future volume, revenue and expense growth rates. If the carrying value exceeds the undiscounted cash flows, the Company records an impairment, if any, for the difference between the estimated fair value of the asset group and its carrying value. The Company further conducts annual reviews for idle and underutilized equipment, and reviews business plans for possible impairment. As of April 30, 2017, there were no indicators of possible impairment of long-lived assets. Stock Incentive Plans Under the Company’s stock option plans, options to acquire shares of common stock have been made available for grant to certain employees and directors. Each option granted has an exercise price of not less than 100% of the market value of the common stock on the date of grant. The contractual life of each option is generally 10 years. The vesting of the grants varies according to the individual options granted. The Company measures the cost of employee services received in exchange for an equity award based on the grant date fair value and records that cost over the respective vesting period of the award. Reclassifications Certain reclassifications have been made to the previously reported 2016 financial statements to conform to the 2017 presentation. There was no change to net income. NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued New Accounting Standards In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, "Revenue from Contracts with Customers" (Topic 606) which supersedes the revenue recognition requirements in ASC 605, “ Revenue Recognition” . This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue. In August 2015, the FASB amended the effective date to be annual reporting periods beginning after December 15, 2017, including interim periods within that year (effective the first quarter of the Company’s fiscal year ending April 30, 2019), with early adoption permitted for annual reporting periods beginning after December 15, 2016 including the interim period within that year. The FASB issued several amendments clarifying various aspects of the ASU, including revenue transactions that involve a third party, goods or services that are immaterial in the context of the contract and licensing arrangements. ASC 606 may be adopted on either a full retrospective or modified retrospective basis. The Company plans to adopt the ASU effective the first quarter of fiscal year ending April 30, 2019. As the new standard will supersede all existing revenue guidance affecting the Company, it could impact the timing and amounts of revenue and costs recognized from customer contracts. The Company has developed an implementation plan, which is currently in the assessment phase. The Company has not selected a transition method and is currently evaluating the impact that adoption of the standard will have on its consolidated financial statements and related disclosures. In July 2015, the FASB issued ASU No. 2015-11, “ Inventory (Topic 330): Simplifying the Measurement of Inventory” . ASU No. 2015-11 requires an entity that determines the cost of inventory by methods other than last-in, first-out (LIFO) and the retail inventory method (RIM) to measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This amendment applies to all inventory that is measured using the average cost or first-in first-out (FIFO) methods. This supersedes prior guidance which allowed entities to measure inventory at the lower of cost or market, where market could be replacement cost, net realizable value or net realizable value less an approximately normal profit margin. ASU No. 2015-11 is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2016. Prospective application is required. Early application is permitted as of the beginning of the interim or annual reporting period. The Company plans to adopt ASU No. 2015-11 for the fiscal year ending April 30, 2018 and does not expect the impact of the adoption of this ASU to have a material impact on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, “ Leases” . The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for capital leases and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. While the Company is still evaluating the impact of its pending adoption of the new standard on its consolidated financial statements, the Company expects that upon adoption in the fiscal year ending April 30, 2020, it will recognize ROU assets and lease liabilities and that the amounts could be material. In March 2016, the FASB issued ASU No. 2016-09, “ Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting”, a new accounting standard update intended to simplify several aspects of the accounting for share-based payment transactions including: income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. Specifically, the update requires that excess tax benefits and tax deficiencies (the difference between the deduction for tax purposes and the compensation cost recognized for financial reporting purposes) be recognized as income tax expense or benefit in the Consolidated Statements of Income, introducing a new element of volatility to the provision for income taxes. NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued New Accounting Standards - Continued This update is effective for fiscal years beginning after December 15, 2016. Early adoption is permitted. The Company plans to adopt the ASU for the fiscal year ending April 30, 2018. Upon adoption of the ASU all share-based awards will continue to be accounted for as equity awards, excess tax benefits recognized on stock-based compensation expense will be reflected in the consolidated statements of income as a component of the provision for income taxes on a prospective basis, excess tax benefits recognized on stock-based compensation expense will be classified as an operating activity in the consolidated statements of cash flows on a prospective basis and the Company will elect to continue to estimate expected forfeitures over the course of a vesting period. In June 2016, the FASB issued ASU No. 2016-13, “ Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments .” ASU 2016-13 introduces a new forward-looking approach, based on expected losses, to estimate credit losses on certain types of financial instruments, including trade receivables. The estimate of expected credit losses will require entities to incorporate considerations of historical information, current information and reasonable and supportable forecasts. This ASU also expands the disclosure requirements to enable users of financial statements to understand the entity’s assumptions, models and methods for estimating expected credit losses. For public business entities, ASU 2016-13 is effective for annual and interim reporting periods beginning after December 15, 2019, and the guidance is to be applied using the modified-retrospective approach. Earlier adoption is permitted for annual and interim reporting periods beginning after December 15, 2018. The Company is currently evaluating the new guidance and has not determined the impact this ASU may have on its consolidated financial statements. In August 2016, the FASB issued ASU Update No. 2016-15, “Statement of Cash Flows- Classification of Certain Cash Receipts and Cash Payments, ” which is intended to reduce diversity in practice in how certain transactions are classified in the statements of cash flows. This update will be effective for fiscal years beginning after December 15, 2017 (the Company’s fiscal year ending April 30, 2019), and interim periods within those fiscal years. Early adoption is permitted, provided that all of the amendments are adopted in the same period. The guidance requires application using a retrospective transition method. The Company plans to adopt the ASU in its fiscal year ending April 30, 2019 using the retrospective transition method. The Company does not expect the impact of the adoption of this ASU to have a material impact on the Company’s Consolidated Statements of Cash Flows. In January 2017, the FASB issued ASU No. 2017-04, “ Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment ,” which removes the step 2 requirement to perform a hypothetical purchase price allocation to measure goodwill impairment. Goodwill impairment will now be the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the recorded amount of goodwill. This guidance is effective for public companies for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019, and early adoption is permitted. The Company does not expect this guidance to have a significant impact on its financial statements and plans to adopt ASU No. 2017-04 in the first quarter of its fiscal year ending April 30, 2018. In January 2017, the FASB issued ASU No. 2017-01, “ Business Combinations (Topic 805): Clarifying the Definition of a Business ,” which clarifies the definition of a business when evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. For public companies, this ASU is effective for annual periods beginning after December 15, 2017, including interim periods within those periods. The Company plans to adopt this ASU in the first quarter of its fiscal year ending April 30, 2019. The Company will apply the clarified definition of a business, as applicable, from the period of adoption. |
Allowance For Doubtful Accounts
Allowance For Doubtful Accounts | 12 Months Ended |
Apr. 30, 2017 | |
Allowance For Doubtful Accounts [Abstract] | |
Allowance For Doubtful Accounts | NOTE C - ALLOWANCE FOR DOUBTFUL ACCOUNTS Changes in the Company’s allowance for doubtful accounts are as follows: 2017 2016 Beginning Balance $ 100,000 $ 186,844 Bad debt expense - - Write-offs - (86,844) $ 100,000 $ 100,000 |
Inventories
Inventories | 12 Months Ended |
Apr. 30, 2017 | |
Inventories [Abstract] | |
Inventories | NOTE D - INVENTORIES Inventories consist of the following at April 30: 2017 2016 Finished products $ 20,291,768 $ 23,295,138 Work-in-process 1,795,852 3,035,459 Raw materials 52,748,542 42,530,957 74,836,162 68,861,554 Less obsolescence reserve 1,264,924 1,212,532 $ 73,571,238 $ 67,649,022 Changes in the Company’s inventory obsolescence reserve are as follows: 2017 2016 Beginning balance $ 1,212,532 $ 1,276,386 Provision for obsolescence 300,000 - Write-offs (247,608) (63,854) $ 1,264,924 $ 1,212,532 |
Related Parties
Related Parties | 12 Months Ended |
Apr. 30, 2017 | |
Related Parties [Abstract] | |
Related Parties | NOTE E - RELATED PARTIES In March, 2015, two of the Company’s executive officers invested in a start-up customer. The executive officers’ investments constitute less than 2% (individually and in aggregate) of the outstanding beneficial ownership of the customer, according to information provided by the customer to the executive officers. As of April 30, 2017, the Company had an outstanding note receivable and account receivable from that customer of approximately $888,000 and $1,271,000 , respectively, compared to an outstanding note receivable and account receivable of approximately $888,000 and $233,000 , respectively, at April 30, 2016. As of April 30, 2017, inventory on hand related to this customer approximated $310,000 compared to $1,600,000 at April 30, 2016. Sales to this customer have not been material for fiscal year 2017. On January 29, 2016, the Company entered into a memorandum of understanding with this customer. Under the subsequent agreement, effective January 29, 2016, the then account receivable of approximately $888,000 was converted into a short-term promissory note. The promissory note bears interest at the rate of 8% per annum, payable at the maturity of the promissory note. The promissory note was scheduled to mature at the earlier of October 31, 2016 , or within 10 days after the customer obtains certain equity financing, or at the closing of a sale of substantially all of the customer’s stock or assets. As additional consideration, the Company received warrants under the agreement. The warrants are ten years in duration and may be exercised at an exercise price of $0.01 per share and for a number of shares determined pursuant to the warrant, expected to be, at a minimum, approximately 1% of the customer’s then – outstanding equity securities. The Company believes the warrants have nil value. Further, the Company has been granted a security interest in the customer’s accounts receivable and authority to access and be a signatory on the customer’s deposit accounts. On December 6, 2016 the Company extended the maturity of the promissory note to July 31, 2017 . The promissory note continues to bear interest at the rate of 8% per annum, payable monthly. As consideration, the Company received additional warrants under the agreement, which the Company currently believes have nil value. Management continues to assess whether the recorded accounts receivable, notes receivable and inventory are recoverable and whether reserves are necessary. This assessment includes 1) the customer’s successful efforts to raise capital in the past; 2) the status of the customer’s current progress in raising capital; and 3) orders that continue to come in from large big-box and online customers. The Company further improved its priority position as a secured creditor in a potential sale, liquidation or bankruptcy filing by or against the customer based on an amendment to the security agreement executed by the Company and the customer. Based on these factors, the Company believes the accounts receivable, notes receivable and inventory are recoverable as of April 30, 2017. However, in the event the customer fails to raise additional capital in the short term, the Company may not receive payment in full of the obligations owed by the customer or payments by the customer to the Company may be further delayed. The Company will continue to monitor and assess any need to record a reserve against this obligation. |
Property, Machinery And Equipme
Property, Machinery And Equipment, Net | 12 Months Ended |
Apr. 30, 2017 | |
Property, Machinery And Equipment, Net [Abstract] | |
Property, Machinery And Equipment, Net | NOTE F - PROPERTY, MACHINERY AND EQUIPMENT, NET Property, machinery and equipment consist of the following at April 30: 2017 2016 Land and buildings $ 16,969,769 $ 16,220,619 Machinery and equipment 58,428,733 57,604,080 Office equipment and software 9,601,149 9,134,187 Leasehold improvements 2,622,870 2,566,250 Equipment under capital leases 10,119,412 8,055,533 97,741,933 93,580,669 Less accumulated depreciation and amortization, including amortization of assets under capital leases of $2,940,833 and $1,972,085 at April 30, 2017 and 2016, respectively 64,733,219 60,499,811 Property, machinery and equipment, net $ 33,008,714 $ 33,080,858 Depreciation and amortization expense of property, machinery and equipment was $4,708,876 and $5,119,376 for the years ended April 30, 2017 and 2016, respectively. |
Goodwill And Other Intangible A
Goodwill And Other Intangible Assets | 12 Months Ended |
Apr. 30, 2017 | |
Goodwill And Other Intangible Assets [Abstract] | |
Goodwill And Other Intangible Assets | NOTE G - GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill There were no changes in carrying amount of tax deductible goodwill in the amount of $3,222,899 for the fiscal years ended April 30, 2017 and 2016. Other Intangible Assets Intangible assets subject to amortization are summarized as of April 30, 2017 as follows: Weighted Average Remaining Gross Amortization Carrying Accumulated Period (Years) Amount Amortization Other intangible assets – Able - $ 375,000 $ 375,000 Customer relationships – Able - 2,395,000 2,395,000 Spitfire: Non-contractual customer relationships 10.08 4,690,000 1,237,410 Backlog - 22,000 22,000 Trade names 15.08 980,000 240,897 Non-compete agreements 2.08 50,000 35,105 Patents 0.08 400,000 393,353 Total $ 8,912,000 $ 4,698,765 Intangible assets subject to amortization are summarized as of April 30, 2016 as follows: Weighted Average Remaining Gross Amortization Carrying Accumulated Period (Years) Amount Amortization Other intangible assets – Able - $ 375,000 $ 375,000 Customer relationships – Able - 2,395,000 2,395,000 Spitfire: Non-contractual customer relationships 11.08 4,690,000 883,540 Backlog - 22,000 22,000 Trade names 16.08 980,000 191,901 Non-compete agreements 3.08 50,000 27,965 Patents 1.08 400,000 313,349 Total $ 8,912,000 $ 4,208,755 NOTE G - GOODWILL AND OTHER INTANGIBLE ASSETS - Continued Estimated aggregate amortization expense for the Company’s intangible assets, which become fully amortized in 2032, for the remaining fiscal years is as follows: For the fiscal year ending April 30: 2018 $ 435,043 2019 423,721 2020 411,406 2021 403,199 2022 395,578 Thereafter 2,144,288 $ 4,213,235 Amortization expense was $490,010 and $470,899 for the years ended April 30, 2017 and 2016, respectively. In conjunction with the May 2012 acquisition of Spitfire, an estimate of the fair value of the contingent consideration, $2,320,000, was recorded based on expected operating results through fiscal 2019 and the specific terms of when such consideration would be earned. Those terms provide for additional consideration to be paid based on a percentage of sales and pre-tax profits over those years in excess of certain minimums. Payments are made quarterly each year and adjusted after each year-end audit. The Company made payments totaling $342,162 during fiscal year 2016. The Company made payments totaling $273,672 during fiscal year 2017. During fiscal year 2017 the Company decreased the estimated remaining payments expected to be paid under the agreement, which resulted in a decrease of $353,591 to the contingent consideration liability. Any change in the Company’s estimate is reflected as a change in the contingent consideration liability and as additional charges or credits to selling and administrative expenses. As of April 30, 2017, the contingent consideration liability was $523,818 compared to $1,151,081 at April 30, 2016. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Apr. 30, 2017 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | NOTE H - LONG-TERM DEBT Note Payable - Bank Prior to March 31, 2017 the Company had a senior secured credit facility with Wells Fargo, N.A. with a credit limit up to $30,000,000 . The credit facility was collateralized by substantially all of the Company’s domestically located assets and the Company had pledged 65% of its equity ownership interest in some of its foreign entities. Prior to its payoff and termination, the Wells Fargo, N.A. senior secured credit facility was due to expire on October 31, 2018 . On March 31, 2017, the Company paid the balance outstanding under the senior credit facility in the amount of $22,232,914 . The remaining deferred financing costs of $68,475 were expensed in the fourth quarter of fiscal 2017. On March 31, 2017, the Company entered into a $35,000,000 senior secured credit facility with U.S. Bank, N.A., which expires on March 31, 2022 . The credit facility is collateralized by substantially all of the Company’s domestically located assets. The facility allows the Company to choose among interest rates at which it may borrow funds: the bank fixed rate of four percent or LIBOR plus one and one half percent (effectively 2.65% at April 30, 2017). Interest is due monthly. Under the senior secured credit facility, the Company may borrow up to the lesser of (i) $35,000,000 or (ii) an amount equal to a percentage of the eligible receivable borrowing base plus a percentage of the inventory borrowing base. Deferred financing costs of $207,647 were capitalized in the fourth quarter of fiscal 2017 and will be amortized over the term of the agreement. As of April 30, 2017, there was $23,178,429 outstanding and $11,821,571 of unused availability under the U.S. Bank, N.A. facility compared to an outstanding balance of $20,014,069 and $3,630,035 of unused availability under the Wells Fargo, N.A. senior credit facility at April 30, 2016. At April 30, 2017, the Company was in compliance with its financial covenant and other restricted covenants under the credit facility. On August 4, 2015, the Company’s wholly-owned subsidiary, Wujiang SigmaTron Electronics Co., Ltd entered into a credit facility with China Construction Bank. Under the agreement Wujiang SigmaTron Electronics Co., Ltd can borrow up to 5,000,000 Renminbi and the facility is collateralized by Wujiang SigmaTron Electronics Co., Ltd.’s manufacturing building. Interest is payable monthly and the facility bears a fixed interest rate of 6.67% . The facility is due to expire on August 3, 2017 . The credit facility was closed as of March 1, 2017. There was no outstanding balance under the facility at April 30, 2017 or April 30, 2016. On March 24, 2017, the Company’s wholly-owned subsidiary, SigmaTron Electronic Technology Co., Ltd entered into a credit facility with China Construction Bank. Under the agreement SigmaTron Electronic Technology Co., Ltd can borrow up to 9,000,000 Renminbi and the facility is collateralized by Wujiang SigmaTron Electronics Co., Ltd.’s manufacturing building. Interest is payable monthly and the facility bears a fixed interest rate of 6.09% . The term of the facility extends to February 7, 2018 . There was no outstanding balance under the facility at April 30, 2017. NOTE H - LONG-TERM DEBT - Continued Notes Payable - Buildings The Company entered into a mortgage agreement on January 8, 2010, in the amount of $2,500,000 , with Wells Fargo, N.A. to refinance the property that serves as the Company’s corporate headquarters and its Illinois manufacturing facility. On November 24, 2014, the Company refinanced the mortgage agreement with Wells Fargo, N.A. The note requires the Company to pay monthly principal payments in the amount of $9,500 , bears an interest rate of LIBOR plus two and one-quarter percent (effectively 3.25% at April 30, 2017) and is payable over a sixty - month period. Final payment of approximately $2,289,500 is due on or before November 8, 2019 . The outstanding balance was $2,574,500 and $2,688,500 at April 30, 2017 and April 30, 2016, respectively. The Company entered into a mortgage agreement on October 24, 2013, in the amount of $1,275,000 , with Wells Fargo, N.A. to finance the property that serves as the Company’s engineering and design center in Elgin, Illinois. The Wells Fargo, N.A. note requires the Company to pay monthly principal payments in the amount of $4,250 , bears interest at a fixed rate of 4.5% per year and is payable over a sixty - month period. A final payment of approximately $1,030,000 is due on or before October 24, 2018 . The outstanding balance was $1,096,500 and $1,147,500 at April 30, 2017 and April 30, 2016, respectively. Notes Payable - Equipment On November 1, 2016, the Company entered into a secured note agreement with Engencap Fin S.A. DE C.V. to finance the purchase of equipment in the amount of $596,987 . The term of the agreement extends to November 1, 2021 with average quarterly payments of $35,060 beginning on February 1, 2017 and a fixed interest rate of 6.65% . The balance outstanding under this note agreement was $567,138 at April 30, 2017. On February 1, 2017, the Company entered into a secured note agreement with Engencap Fin S.A. DE C.V. to finance the purchase of equipment in the amount of $335,825 . The term of the agreement extends to February 1, 2022 with average quarterly payments of $20,031 beginning on May 1, 2017 and a fixed interest rate of 7.35% . The balance outstanding under this note agreement was $335,825 at April 30, 2017. Capital Lease and Sale Leaseback Obligations During 2010, the Company entered into various capital lease agreements with Wells Fargo Equipment Finance to purchase equipment totaling $1,376,799 . The terms of the lease agreements extend to July 2016 through October 2016 with monthly installment payments ranging from $3,627 to $13,207 and a fixed interest rate ranging from 4.41% to 4.99% . At April 30, 2017, the balance outstanding under these capital lease agreements was $0 compared to $106,767 in fiscal year 2016. The net book value of the equipment under these leases at April 30, 2017 was $589,524 compared to $703,424 at April 30, 2016. From October 2013 through April 2017, the Company entered into various capital lease and sale leaseback agreements with Associated Bank, National Association to purchase equipment totaling $6,240,562 . The terms of the lease and sale leaseback agreements extend to September 2018 through March 2022 with monthly installment payments ranging from $1,455 to $40,173 and a fixed interest rate ranging from 3.75% to 4.95% . The balance outstanding under these capital lease and sale leaseback agreements was $3,627,760 and $2,599,820 at April 30, 2017 and April 30, 2016, respectively. The net book value of the equipment under these leases and sale leaseback agreements at April 30, 2017 was $4,713,044 compared to $3,224,661 at April 30, 2016. From April 2014 through July 2015, the Company entered into various capital lease agreements with CIT Finance LLC to purchase equipment totaling $2,512,051 . The terms of the lease agreements extend to March 2019 through July 2020 with monthly installment payments ranging from $1,931 to $12,764 and a fixed interest rate ranging from 5.65% through 6.50% . At April 30, 2017, the balance outstanding under these capital lease agreements was NOTE H - LONG-TERM DEBT - Continued Capital Lease Obligations - Continued $1,448,269 compared to $1,886,069 in fiscal year 2016. The net book value of the equipment under these leases at April 30, 2017 was $1,946,026 compared to $2,155,363 at April 30, 2016. The aggregate amount of debt, net of deferred financing fees, maturing in each of the following fiscal years and thereafter is as follows: Fiscal Year Total 2018 $ 351,562 2019 1,346,062 2020 2,533,062 2021 23,313,122 $ 27,543,808 See Note M - Leases, Page F-30 for future maturities under capital lease obligations. Other Long-Term Liabilities As of April 30, 2017 and 2016, the Company had recorded $991, 017 and $870, 542, respectively, for seniority premiums and retirement accounts related to benefits for employees, $913,827 and $800,067 of which, respectively, are for the Company’s foreign subsidiaries. |
Accrued Expenses And Wages
Accrued Expenses And Wages | 12 Months Ended |
Apr. 30, 2017 | |
Accrued Expenses And Wages [Abstract] | |
Accrued Expenses And Wages | NOTE I - ACCRUED EXPENSES AND WAGES Accrued expenses consist of the following at April 30: 2017 2016 Interest $ 90,639 $ 61,350 Commissions 143,738 80,819 Professional fees 419,801 397,375 Other - Purchases 1,418,120 491,027 Other 1,550,808 1,741,730 $ 3,623,106 $ 2,772,301 Accrued wages consist of the following at April 30: 2017 2016 Wages $ 1,785,078 $ 1,706,141 Bonuses 819,207 920,563 Foreign wages 1,885,317 1,572,443 $ 4,489,602 $ 4,199,147 |
Income Tax
Income Tax | 12 Months Ended |
Apr. 30, 2017 | |
Income Tax [Abstract] | |
Income Tax | NOTE J - INCOME TAX U.S. and foreign income before income tax expense for the years ended April 30 are as follows: 2017 2016 Domestic $ 1,326,266 $ 2,224,802 Foreign 1,171,417 1,260,394 $ 2,497,683 $ 3,485,196 Income Tax Provision The income tax provision for the years ended April 30 consists of the following: 2017 2016 Current Federal $ 501,226 $ 279,043 State 13,697 29,217 Foreign 589,913 318,800 Total Current 1,104,836 627,060 Deferred Federal (54,213) 577,149 State 59,884 65,451 Foreign (3,030) 132,877 Total Deferred 2,641 775,477 Provision for income taxes $ 1,107,477 $ 1,402,537 NOTE J - INCOME TAX - Continued Income Tax Provision - Continued The difference between the income tax provision and the amounts computed by applying the statutory Federal income tax rates to income before tax expense for the years ended April 30 are as follows: 2017 2016 U.S Federal Provision: At statutory rate $ 849,215 $ 1,184,967 State taxes 42,643 117,922 Change in valuation allowance 78,100 (46,615) Foreign tax differential (89,885) (94,124) Impact of state tax rate change 5,920 (8,826) Foreign valuation allowance - (48,680) Other (52,219) 42,850 Foreign currency exchange gain/loss 328,239 311,867 Impact of foreign permanent items 7,171 (20,056) Foreign inflation adjustment (61,707) (36,768) Provision for income taxes $ 1,107,477 $ 1,402,537 NOTE J - INCOME TAX - Continued Deferred Tax Assets and Liabilities Deferred income taxes reflect the net tax effects of loss and credit carryforwards and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the deferred tax assets for federal and state income taxes are as follows: 2017 2016 Deferred Tax Assets Federal & State NOL carryforwards $ 29,168 $ 85,288 Foreign tax credit 78,100 - Reserves and accruals 723,313 615,431 Stock based compensation 462,156 244,199 Inventory 1,177,067 1,074,546 Other intangibles 206,736 203,789 Deferred rent 211,509 240,439 Allowance for doubtful accounts 38,360 38,150 Other DTA 13,839 8,902 Federal benefit of state 45,589 25,228 Total Gross Deferred Tax Assets 2,985,837 2,535,972 Less: Valuation allowance (78,100) - Net Deferred Tax Assets $ 2,907,737 $ 2,535,972 Deferred Tax Liabilities Other assets $ (318,830) $ (113,665) Property, machinery & equipment (3,441,393) (3,273,902) Prepaids (272,718) (270,968) Total Deferred Tax Liabilities $ (4,032,941) $ (3,658,535) Net Deferred Tax Liability $ (1,125,204) $ (1,122,563) The Company has state net operating loss carry-forwards totaling approximately $336,000 at April 30, 2017, that will begin to expire in fiscal year April 30, 2025 . The Company recognizes a valuation allowance if, based on the weight of available evidence, it is more likely than not that some portion, or all, of a deferred tax asset will not be realized. The Company determined it is more likely than not that it will realize the deferred tax assets due to the reversal of deferred tax liabilities. The state deferred tax liabilities exceed the state deferred tax assets and based on the reversing pattern the Company has concluded that all of the state deferred tax liabilities are expected to reverse within the period of time available to fully utilize all state deferred tax assets. Therefore, the Company has concluded that a valuation allowance is not required as of April 30, 2017, related to state net operating loss carryforwards. The Company has established a valuation allowance of $78,100 related to its foreign tax credit carry-forward. The Company’s estimate of cumulative taxable income NOTE J - INCOME TAX - Continued Deferred Tax Assets and Liabilities - Continued during the foreign tax credit carryforward period is insufficient to support that the tax benefit from the foreign tax credit is more likely than not to be realized. The Company has not recorded U.S. income taxes on the undistributed earnings of the Company’s foreign subsidiaries. Such earnings are considered to be indefinitely invested in the foreign subsidiaries. If such earnings were repatriated, additional tax expense may result. The cumulative amount of unremitted earnings for which U.S. income taxes have not been recorded is $10,672,000 as of April 30, 2017. The amount of U.S. income taxes on these earnings is impractical to compute due to the complexities of the hypothetical calculation. Unrecognized Tax Benefits The Company has not identified any uncertain tax positions or expects any to be taken in the Company’s tax returns. For the fiscal year ended April 30, 2017 and 2016, the amount of consolidated worldwide liability for uncertain tax positions that impacted the Company’s effective tax rate was $0 for each year. Other Interest and penalties related to tax positions taken in the Company’s tax returns are recorded in income tax expense and miscellaneous selling, general and administrative expense, respectively, in the Consolidated Statements of Income. For the fiscal year ended April 30, 2017 and 2016, the amount included in the Company’s balance sheet for such liabilities was $0 for each year. The Company is subject to taxation in the U.S. and various state and foreign jurisdictions. With few exceptions, the Company is no longer subject to state, local or foreign examinations by tax authorities for tax years before fiscal year 2014. The Internal Revenue Service previously concluded an audit of the Company’s fiscal year 2013 tax return, and a no change letter was issued. |
401(k) Retirement Savings Plan
401(k) Retirement Savings Plan | 12 Months Ended |
Apr. 30, 2017 | |
401(k) Retirement Savings Plan [Abstract] | |
401(k) Retirement Savings Plan | NOTE K - 401(k) RETIREMENT SAVINGS PLAN The Company sponsors 401(k) retirement savings plans, which are available to all non-union U.S. employees. The Company may elect to match participant contributions up to $300 per participant annually. The Company contributed $91,686 and $75,448 to the plans during the fiscal years ended April 30, 2017 and 2016 , respectively. The Company incurred total expenses of $8,000 and $13,460 for the fiscal years ended April 30, 2017 and 2016, respectively, relating to costs associated with the administration of the plans. |
Major Customers And Concentrati
Major Customers And Concentration Of Credit Risk | 12 Months Ended |
Apr. 30, 2017 | |
Major Customers And Concentration Of Credit Risk [Abstract] | |
Major Customers And Concentration Of Credit Risk | NOTE L - MAJOR CUSTOMERS AND CONCENTRATION OF CREDIT RISK Financial instruments that potentially subject the Company to concentration of credit risk consist principally of uncollateralized accounts receivable. For the year ended April 30, 2017, two customers accounted for 26.7% and 12.6% of net sales of the Company, and 8.4% and 4.2% , respectively, of accounts receivable at April 30, 2017. For the year ended April 30, 2016, two customers accounted for 35.2% and 10.6% of net sales of the Company and 6.5% and 2.4% , respectively, of accounts receivable at April 30, 2016. Further, the Company has $2,002,058 in cash in China as of April 30, 2017. Effective May 1, 2015, China implemented a deposit insurance program to insure up to approximately $81,000 in deposits, under certain circumstances. Funds above this amount are not insured by a guaranteed deposit insurance system. |
Leases
Leases | 12 Months Ended |
Apr. 30, 2017 | |
Leases [Abstract] | |
Leases | NOTE M - LEASES The Company leases certain facilities and office space under various operating leases expiring at various dates through April 2022. The Company also leases various machinery and equipment under capital leases. Future minimum lease payments under leases with terms of one year or more are as follows: Capital Operating Years ending April 30, Leases Leases 2018 $ 1,913,369 $ 2,296,427 2019 1,670,444 2,070,622 2020 1,055,860 1,263,854 2021 632,758 774,976 2022 220,221 100,470 Total future minimum lease payments $ 5,492,652 $ 6,506,349 Less amounts representing interest 416,623 5,076,029 Less Current Portion 1,711,204 Long Term Portion $ 3,364,825 NOTE M - LEASES - Continued Rent expense incurred under operating leases was $2,363,778 and $2,258,359 for the years ended April 30, 2017 and 2016, respectively. In September 2010, the Company entered into a real estate lease agreement in Union City, CA, to rent approximately 117,000 square feet of manufacturing and office space. Under the terms of the lease agreement, the Company receives incentives over the life of the lease, which extends through March 2021 . The amount of deferred rent income recorded for the fiscal year ended April 30, 2017 was $79,575 compared to $51,509 in fiscal year 2016. In addition, the landlord provided the Company tenant incentives of $418,000 , which are being amortized over the life of the lease. The balance of deferred rent at April 30, 2017 was $550,672 compared to $630,247 at April 30, 2016. On May 31, 2012, the Company entered into a lease agreement in Tijuana, Mexico, to rent approximately 112,000 square feet of manufacturing and office space. Under the terms of the lease agreement, the Company receives incentives over the life of the lease, which extends through November 2018 . The amount of deferred rent income for the fiscal year ended April 30, 2017 was $127,967 compared to $115,837 in fiscal year 2016. The balance of deferred rent at April 30, 2017 was $224,964 compared to $352,931 at April 30, 2016. |
Stock Compensation And Equity T
Stock Compensation And Equity Transactions | 12 Months Ended |
Apr. 30, 2017 | |
Stock Compensation And Equity Transactions [Abstract] | |
Stock Compensation And Equity Transactions | NOTE N - STOCK COMPENSATION AND EQUITY TRANSACTIONS The Company has stock option plans (“Option Plans”) under which certain employees and non-employee directors may acquire shares of common stock. All Option Plans have been approved by the Company’s shareholders. At April 30, 2017, the Company has 117,914 shares available for future issuance to employees under the employee plans and none are available under the non-employee director plans. The Option Plans are interpreted and administered by the Compensation Committee of the Board of Directors. The maximum term of options granted under the Option Plans is generally 10 years. Options granted under the Option Plans are either incentive stock options or nonqualified options. Each option under the Option Plans is exercisable for one share of stock. Options forfeited under the Option Plans are available for reissuance. Options granted under these plans are granted at an exercise price equal to the fair market value of a share of the Company’s common stock on the date of grant. The Company granted 25,000 options to employees in fiscal year 2014. The Company recognized approximately $3,500 and $18,100 in compensation expense in fiscal year 2017 and 2016, respectively. The balance of unrecognized compensation expense at April 30, 2017 is $0 . The Company granted 285,000 options to employees in fiscal year 2016. The Company recognized approximately $325,700 and $556,400 in compensation expense in fiscal year 2017 and 2016, respectively. The balance of unrecognized compensation expense at April 30, 2017 is approximately $83,700 . On October 1, 2016 and 2015, the Company issued 11,250 and 10,000 shares of restricted stock pursuant to the 2013 Non-Employee Director Restricted Stock Plan, which fully vested on April 1, 2017 and 2016, respectively. The Company recognized $60,649 and $69,400 in compensation expense in fiscal year 2017 and 2016, respectively. The balance of unrecognized compensation expense related to the Company’s restricted stock award was $0 and $0 at April 30, 2017 and 2016, respectively. NOTE N - STOCK COMPENSATION AND EQUITY TRANSACTIONS - Continued The table below summarizes option activity through April 30, 2017: Number of Number of securities to be Weighted- options issued upon average exercisable exercise of exercise at end outstanding options price of year Outstanding at April 30, 2015 85,954 3.81 76,954 Options granted during 2016 285,000 6.45 Options exercised during 2016 (2,000) 3.60 Options expired during 2016 (991) 9.17 Outstanding at April 30, 2016 367,963 5.84 172,513 Options exercised during 2017 (1,200) 3.60 Outstanding at April 30, 2017 366,763 $ 5.85 269,863 Intrinsic value is calculated as the positive difference between the market price of the Company’s common stock and the exercise price of the underlying options. During the fiscal years ended April 30, 2017 and 2016, the aggregate intrinsic value of options exercised was $2,172 and $5,100, respectively. As of April 30, 2017 and 2016, the aggregate intrinsic value of in the money options outstanding was $135,151 and $198,715 , respectively. Information with respect to stock options outstanding at April 30, 2017 follows: Options outstanding Number Weighted-average Weighted- outstanding at remaining average April 30, 2017 contract life exercise price Range of exercise prices $ 3.60 -6.45 366,763 7.64 years $ 5.85 366,763 $ 5.85 NOTE N - STOCK COMPENSATION AND EQUITY TRANSACTIONS - Continued Information with respect to stock options outstanding and exercisable at April 30, 2017 follows: Options outstanding and exercisable Number Weighted-average Weighted- outstanding at remaining average April 30, 2017 contract life exercise price Range of exercise prices $ 3.60-6.45 269,863 7.41 years $ 5.63 269,863 $ 5.63 Information with respect to stock options non-vested at April 30, 2017 follows: Options non-vested Number Weighted-average Weighted- non-vested at remaining average April 30, 2017 contract life exercise price Range of exercise prices $ 6.45 96,900 8.26 years $ 6.45 96,900 $ 6.45 The Company implemented an employee stock purchase plan (“ESPP”), for all eligible employees on February 1, 2014. Under the ESPP, employees may purchase shares of the Company’s common stock at three-month intervals at 85% of the lower of the fair market value of the Company’s common stock on the first day or the last day of the offering period (calculated in the manner provided in the plan). Employees purchase such stock using payroll deductions, which may not be less than 1% nor exceed 15% of their total gross compensation. Shares of common stock are offered under the ESPP through a series of successive offering periods. The plan imposes certain limitations upon an employee’s right to acquire common stock, including the following: (i) termination of employment for any reason immediately terminates the employee’s participation in the plan (ii) no employee may be granted rights to purchase more than $25,000 worth of common stock for each calendar year that such rights are at any time outstanding, and (iii) the maximum number of shares of common stock purchasable in total by all participants in the ESPP on any purchase date is limited to 500,000 shares. The number of shares of common stock reserved for issuance under the plan automatically increases on the first day of the Company’s fiscal years by 25,000 shares. The ESPP was terminated effective August 15, 2016. Final purchases under the ESPP were completed on August 31, 2016. There were 1,658 and 9,670 shares issued under the ESPP and the Company recorded $3,559 and $13,728 in compensation expense, for fiscal years ended April 30, 2017 and 2016, respectively. NOTE N - STOCK COMPENSATION AND EQUITY TRANSACTIONS - Continued On October 1, 2015, the Company granted 2,000 shares to each non-employee director pursuant to the 2013 Non-Employee Director Restricted Stock Plan. A total of 10,000 restricted shares were granted and the shares vest in six months from the date of grant. The Company recognized $69,400 in compensation expense in fiscal year 2016. There was no unrecognized compensation expense related to the 10,000 shares of restricted stock at April 30, 2016. On May 1, 2015, the Company sold 74,000 shares of its common stock to three individual investors in a private offering, pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), at $7.00 per share, representing an approximate average of the market price of the Company’s common stock in the public market during the immediately preceding thirty day period. The transaction resulted in $518,000 of proceeds from the sale of restricted stock. The stock was unregistered and may be sold only upon registration or the availability of an exemption from registration under the Securities Act. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Apr. 30, 2017 | |
Selected Quarterly Financial Data (Unaudited) [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | NOTE O - SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) The following is a summary of unaudited quarterly financial data for fiscal year 2017: First Second Third Fourth 2017 Quarter Quarter Quarter Quarter Net sales $ 58,919,398 $ 65,842,957 $ 61,896,226 $ 65,577,213 Gross profit (1) 5,504,657 5,502,040 5,419,018 7,615,212 Income before income 226,858 26,616 89,036 2,155,173 tax expense (1), (2), (3) Net income (loss) 146,597 33,295 (47,852) 1,258,166 Earnings per share $ 0.03 $ 0.01 $ (0.01) $ 0.30 Basic Earnings per share $ 0.03 $ 0.01 $ (0.01) $ 0.30 Diluted Weighted average shares- Basic 4,183,955 4,185,752 4,186,813 4,188,279 Weighted average shares- Diluted 4,214,535 4,225,874 4,215,962 4,209,516 1.) Due to a fire at one of the Company’s plants during 2017, the Company recorded expense of approximately $230,000 in prior quarters in costs of goods sold that was realized as an insurance recovery during the fourth quarter of 2017 as recovery was considered probable. As part of this settlement, a gain of approximately $277,000 was also recorded in the fourth quarter of fiscal 2017 due to the insurance claim exceeding the net book value of the replacement machinery and equipment destroyed. 2.) The Company records inventory reserves for valuation and shrinkage throughout the year based on historical data. In the fourth quarter of fiscal 2017 physical inventory results were completed and the Company adjusted the estimate which increased income before income tax expense by approximately $780,000 . 3.) As discussed in Note G, during the fourth quarter of fiscal 2017 the Company recorded a change in estimate related to Contingent Consideration which increased income before income tax expense in the amount of approximately $247,000 . The aggregate after-tax effect for the above adjustments in the fourth quarter of fiscal 2017 was an increase to basic earnings per share of $0.21 . NOTE O - SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) - Continued The following is a summary of unaudited quarterly financial data for fiscal year 2016: First Second Third Fourth 2016 Quarter Quarter Quarter Quarter Net sales $ 64,220,946 $ 69,723,493 $ 59,206,344 $ 60,753,363 Gross profit 6,230,274 7,597,013 5,708,096 5,983,148 Income before income 962,323 1,857,036 377,599 288,238 tax expense Net income 658,806 1,156,298 218,728 48,827 Earnings per share $ 0.16 $ 0.28 $ 0.05 $ 0.01 Basic Earnings per share $ 0.16 $ 0.27 $ 0.05 $ 0.01 Diluted Weighted average shares- Basic 4,148,285 4,166,758 4,170,193 4,174,251 Weighted average shares- Diluted 4,193,657 4,214,317 4,229,378 4,208,184 |
Litigation
Litigation | 12 Months Ended |
Apr. 30, 2017 | |
Litigation [Abstract] | |
Litigation | NOTE P - LITIGATION On October 25, 2011 , Maria Gracia, a former employee of the Company, filed suit against the Company in the U.S. District Court for the Northern District of Illinois under Title VII of the Civil Rights Act, alleging among other things sexual harassment and retaliation. In December 2014, a jury found for the Company on the sexual harassment claim but found for the plaintiff on her retaliation claim and awarded her damages totaling $307,000 . In post-trial motions, the judge reduced the verdict to $300,000 . Subsequently, on September 17, 2015, the court ruled on plaintiff’s Claim for Equitable Relief, awarding the plaintiff an additional $74,478 . The Company accrued $375,000 in fiscal year 2016 in recognition of the judgment entered against the Company. On October 16, 2015, the Company appealed the judgment to the Seventh Circuit Court of Appeals. On November 23, 2016, the U.S. District Court ruled that the plaintiff is entitled to an award for costs and attorneys’ fees. The expense was accrued in the second fiscal quarter of 2017. On November 29, 2016, the Seventh Circuit Court of Appeals affirmed the judgment of the U.S. District Court entered against the Company in December 2014. On January 30, 2017, the Company and Ms. Gracia settled the suit by entering into a confidential settlement and release agreement. In the third fiscal quarter of 2017, the Company accrued an additional amount in connection with the settlement. The Company accrued and paid $436,124 in fiscal year 2017 in conjunction with the lawsuit. NOTE P - LITIGATION - Continued As of April 30, 2017, all expenses for the settlement have been fully expensed and paid. From time to time the Company is involved in legal proceedings, claims, or investigations that are incidental to the Company’s business. In future periods, the Company could be subjected to cash cost or non-cash charges to earnings if any of these matters are resolved on unfavorable terms. However, although the ultimate outcome of any legal matter cannot be predicted with certainty, based on present information, including management’s assessment of the merits of any particular claim, the Company does not expect these legal proceedings or claims will have any material adverse impact on its future consolidated financial position or results of operations. |
Summary Of Significant Accoun23
Summary Of Significant Accounting Policies (Policy) | 12 Months Ended |
Apr. 30, 2017 | |
Summary Of Significant Accounting Policies [Abstract] | |
Consolidation Policy | Consolidation Policy The consolidated financial statements include the accounts and transactions of SigmaTron International, Inc. (“SigmaTron”), its wholly-owned subsidiaries, Standard Components de Mexico, S.A., AbleMex S.A. de C.V., Digital Appliance Controls de Mexico, S.A. de C.V., Spitfire Controls (Vietnam) Co. Ltd., Spitfire Controls (Cayman) Co. Ltd. and SigmaTron International Trading Co., wholly-owned foreign enterprises Suzhou SigmaTron Electronics Co. Ltd., and SigmaTron Electronic Technology Co., Ltd. (collectively, “SigmaTron China”), and its international procurement office, SigmaTron Taiwan. The functional currency of the Mexican, Vietnamese and Chinese subsidiaries and procurement branch is the U.S. Dollar. Intercompany transactions are eliminated in the consolidated financial statements. The impact of foreign currency fluctuation for the fiscal year ended April 30, 2017 resulted in foreign currency transaction losses of approximately $508,000 compared to a net foreign currency loss of $59,000 in the prior year and is included in cost of products sold. |
Use Of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates made in preparing the consolidated financial statements include depreciation and amortization periods, the allowance for doubtful accounts, reserves for inventory, lower of cost or market adjustment for inventory, contingent consideration, deferred taxes, uncertain tax positions, valuation allowance for deferred taxes and valuation of goodwill and long-lived assets. Actual results could materially differ from these estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash and all highly liquid short-term investments with original maturities within three months of the purchase date. |
Accounts Receivable | Accounts Receivable The majority of the Company’s accounts receivable are due from companies in the consumer electronics, gaming, fitness, industrial electronics, medical/life sciences, semiconductor, telecommunications and appliance industries. Credit is extended based on evaluation of a customer’s financial condition, and, generally, collateral is not required. Accounts receivable are due in accordance with agreed upon terms, and are stated at amounts due from customers net of an allowance for doubtful accounts. Accounts outstanding longer than the contractual payments terms are considered past due. The Company writes off accounts receivable when they are determined to be uncollectible. The Company has arrangements with various financial institutions to sell certain eligible accounts receivable balances from specific customers. The accounts receivable balances sold are at the election of the Company and the Company incur red fees for such sales, which were not material for the year ended April 30, 2017 or 2016 . The accounts receivable balances are derecognized at the time of sale, as the Company does not have continuing involvement after the point of sale. During the years ended April 30, 2017 and 2016, the Company sold without recourse trade receivables of approximately $95,000,000 and $115,000,000 , respectively. Cash proceeds from these agreements are reflected as operating activities included in the change in accounts receivable in the Company's Consolidated Statements of Cash Flows. |
Allowance For Doubtful Accounts | Allowance for Doubtful Accounts The Company’s allowance for doubtful accounts relates to receivables not expected to be collected from its customers. This allowance is based on management’s assessment of specific customer balances, considering the age of receivables and financial stability of the customer and a five year average of prior uncollectible amounts. If there is an adverse change in the financial condition of the Company’s customers, or if actual defaults are higher than provided for, an addition to the allowance may be necessary. |
Inventories | Inventories Cost is determined by an average cost method and the Company allocates labor and overhead to work-in-process and finished goods. In the event of an inventory write-down, the Company records expense to state the inventory at lower of cost or market. The Company establishes inventory reserves for valuation, shrinkage, and excess and obsolete inventory. The Company records provisions for inventory shrinkage based on historical experience to account for unmeasured usage or loss. The Company records provisions for excess and obsolete inventories for the difference between the cost of inventory and its estimated realizable value based on assumptions about future product demand and market conditions. For convenience, the Company records these inventory reserves against the inventory cost through a contra asset rather than through a new cost basis. Upon a subsequent sale or disposal of the impaired inventory, the corresponding reserve is relieved to ensure the cost basis of the inventory reflects any reductions. Actual results differing from these estimates could significantly affect the Company’s inventories and cost of products sold as the inventory is sold or otherwise relieved. |
Property, Machinery And Equipment | Property, Machinery and Equipment Property, machinery and equipment are valued at cost. The Company provides for depreciation and amortization using the straight-line method over the estimated useful life of the assets: Buildings 20 years Machinery and equipment 5 -12 years Office equipment and software 3 -5 years Tools and dies 12 months Leasehold improvements lesser of lease term or useful life Expenses for repairs and maintenance are charged to selling and administrative expenses as incurred. |
Deferred Financing Costs | Deferred Financing Costs Deferred financing costs consist of costs incurred to obtain the Company’s long-term debt and are amortized using the effective interest method over the term of the related debt. Deferred financing fees of $208,583 and $112, 917 net of accumulated amortization of $11,916 and $443,763 , respectively, as of April 30, 2017 and 2016, respectively, are deducted from long term debt on the Company’s balance sheet. |
Income Taxes | Income Taxes The Company’s income tax expense, deferred tax assets and liabilities and reserves for unrecognized tax benefits reflect management’s best assessment of estimated future taxes to be paid. The Company is subject to income taxes in both the U.S. and several foreign jurisdictions. Significant judgments and estimates by management are required in determining the consolidated income tax expense assessment. Deferred income tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities, and are measured using the enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. In evaluating the Company’s ability to recover its deferred tax assets within the jurisdiction from which they arise, the Company considers all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and recent financial operations. In projecting future taxable income, the Company begins with historical results and changes in accounting policies, and incorporates assumptions including the amount of future state, federal and foreign pre-tax operating income, the reversal of temporary differences, and the implementation of feasible and prudent tax planning strategies. These assumptions require significant judgment and estimates by management about the forecasts of future taxable income and are consistent with the plans and estimates the Company uses to manage the underlying businesses. In evaluating the objective evidence that historical results provide, the Company considers three years of cumulative operating income and/or loss. Valuation allowances are established when necessary to reduce deferred income tax assets to an amount more likely than not to be realized. The calculation of the Company’s tax liabilities involves dealing with uncertainties in the application of complex tax laws and regulations in a multitude of jurisdictions across its global operations. Changes in tax laws and rates could also affect recorded deferred tax assets and liabilities in the future. Management is not aware of any such changes that would have a material effect on the Company’s results of operations, cash flows or financial position. A tax benefit from an uncertain tax position may only be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued Income Taxes - Continued The Company adjusts its tax liabilities when its judgment changes as a result of the evaluation of new information not previously available. Due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from its current estimate of the tax liabilities. These differences will be reflected as increases or decreases to income tax expense in the period in which they are determined. |
Earnings Per Share | Earnings per Share Basic earnings per share are computed by dividing net income (the numerator) by the weighted-average number of common shares outstanding (the denominator) for the period. The computation of diluted earnings per share is similar to the computation of basic earnings per share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potentially dilutive common stock equivalents such as stock options and restricted stock, had been exercised or vested. There were no anti-dilutive common stock equivalents at April 30, 2016. There were 285,000 , anti-dilutive common stock equivalents at April 30, 2017, which have been excluded from the calculation of diluted earnings per share. Twelve Months Ended April 30, 2017 2016 Net income $ 1,390,206 $ 2,082,659 Weighted-average shares Basic 4,186,183 4,164,815 Effect of dilutive stock options 27,409 59,215 Diluted 4,213,592 4,224,030 Basic earnings per share $ 0.33 $ 0.50 Diluted earnings per share $ 0.33 $ 0.49 |
Revenue Recognition | Revenue Recognition Revenues from sales of the Company's electronic manufacturing services business are recognized when the finished good product is shipped to the customer. In general, and except for consignment inventory, it is the Company's policy to recognize revenue and related costs when the finished goods have been shipped from its facilities, which is also the same point in time that title passes under the terms of the purchase order and control passes to the customer. Finished goods inventory for certain customers is shipped from the Company to an independent warehouse for storage or shipped directly to the customer and stored in a segregated part of the customer’s own facility. Upon the customer’s request for finished goods inventory, the inventory is shipped to the customer if the inventory was stored off-site, or transferred from the segregated part of the customer’s facility for consumption or use by the customer. The Company recognizes revenue upon such shipment or transfer. The Company does not earn a fee for such arrangements. The Company from time to time may ship finished goods from its facilities, which is also the same point in time that title passes under the terms of the purchase order, and invoice the customer at the end of the calendar month. This is done only in special circumstances to accommodate a specific customer. Further, from time to time customers request the Company hold finished goods after they have been invoiced to consolidate finished goods for shipping purposes. The Company generally provides a warranty for workmanship, unless the assembly was designed by the Company, in NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued Revenue Recognition - Continued which case it warrants assembly/design. The Company does not have any installation, acceptance or sales incentives (although the Company has negotiated longer warranty terms in certain instances). The Company assembles and tests assemblies based on customers’ specifications. Historically, the amount of returns for workmanship issues has been de minimis under the Company’s standard or extended warranties. |
Shipping And Handling Costs | Shipping and Handling Costs The Company records shipping and handling costs as selling and administrative expenses. Customers are typically invoiced for shipping costs and such amounts are included in net sales. Shipping and handling costs were not material to the financial statements for fiscal years 2017 or 2016. |
Fair Value Measurements | Fair Value Measurements Fair value measurements are determined based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants exclusive of any transaction costs. The Company utilizes a fair value hierarchy based upon the observability of inputs used in valuation techniques as follows: Level 1: Observable inputs such as quoted prices in active markets; Level 2: Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. |
Fair Value Of Financial Instruments | Fair Value of Financial Instruments The Company’s financial instruments include cash and cash equivalents, accounts receivable, note receivable, other receivables, accounts payable and accrued expenses which approximate fair value at April 30, 2017 and 2016, due to their short-term nature. The carrying amounts of the Company’s debt obligations approximate fair value based on future payments discounted at current interest rates for similar obligations or interest rates which fluctuate with the market. The Company measured the contingent consideration included in the fiscal 2013 Spitfire acquisition under the fair value standard (primarily using level 3 measurement inputs). The contingent consideration continues to be measured and reported at fair value at each period end. The Company currently does not have any other non-financial assets and non-financial liabilities that are required to be measured at fair value on a recurring basis. |
Goodwill | Goodwill Goodwill represents the purchase price in excess of the fair value of assets acquired in business combinations. Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 350, “Intangibles – Goodwill and Other,” requires the Company to assess goodwill and other indefinite-lived intangible assets for impairment at least annually in the absence of an indicator of possible impairment and immediately upon an indicator of possible impairment. The Company is permitted the option to first assess qualitative factors to determine whether the existence of events and circumstances indicates that it is more likely than not that the fair value of any reporting unit is less than its corresponding carrying value. If, after assessing the totality of events and circumstances, the Company concludes that it is not more likely than not that the fair value of any reporting unit is less than its corresponding carrying value, then the Company is not required to take further action. However, if the Company concludes otherwise, then it is required to perform a quantitative impairment test, including computing the fair value of the reporting unit and comparing that value to its carrying value. If the fair value is less than its carrying value, a second step of the test is required to determine if recorded goodwill is impaired. The Company also has the option to NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued Goodwill – Continued bypass the qualitative assessment for goodwill in any period and proceed directly to performing the quantitative impairment test. The Company will be able to resume performing the qualitative assessment in any subsequent period. The Company performed its annual goodwill impairment test as of February 1, 2017 and determined no impairment existed as of that date. The step one analysis was performed using a combination of a market approach and an income approach based on a discounted cash flow approach. |
Intangible Assets | Intangible Assets Intangible assets are comprised of finite life intangible assets including patents, trade names, backlog, non-compete agreements, and customer relationships. Finite life intangible assets are amortized on a straight line basis over their estimated useful lives of 5 years for patents, 20 years for trade names, 1 year for backlog and 7 years for non-compete agreements except for customer relationships which are amortized on an accelerated basis over their estimated useful life of 15 years. |
Impairment Of Long-Lived Assets | Impairment of Long-Lived Assets The Company reviews long-lived assets, including amortizable intangible assets, for impairment. Property, machinery and equipment and finite life intangible assets are reviewed whenever events or changes in circumstances occur that indicate possible impairment. If events or changes in circumstances occur that indicate possible impairment, the Company first performs an impairment review based on an undiscounted cash flow analysis at the lowest level at which cash flows of the long-lived assets are largely independent of other groups of its assets and liabilities. This analysis requires management judgment with respect to changes in technology, the continued success of product lines, and future volume, revenue and expense growth rates. If the carrying value exceeds the undiscounted cash flows, the Company records an impairment, if any, for the difference between the estimated fair value of the asset group and its carrying value. The Company further conducts annual reviews for idle and underutilized equipment, and reviews business plans for possible impairment. As of April 30, 2017, there were no indicators of possible impairment of long-lived assets. |
Stock Incentive Plans | Stock Incentive Plans Under the Company’s stock option plans, options to acquire shares of common stock have been made available for grant to certain employees and directors. Each option granted has an exercise price of not less than 100% of the market value of the common stock on the date of grant. The contractual life of each option is generally 10 years. The vesting of the grants varies according to the individual options granted. The Company measures the cost of employee services received in exchange for an equity award based on the grant date fair value and records that cost over the respective vesting period of the award. |
Reclassifications | Reclassifications Certain reclassifications have been made to the previously reported 2016 financial statements to conform to the 2017 presentation. There was no change to net income. |
New Accounting Standards | New Accounting Standards In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, "Revenue from Contracts with Customers" (Topic 606) which supersedes the revenue recognition requirements in ASC 605, “ Revenue Recognition” . This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue. In August 2015, the FASB amended the effective date to be annual reporting periods beginning after December 15, 2017, including interim periods within that year (effective the first quarter of the Company’s fiscal year ending April 30, 2019), with early adoption permitted for annual reporting periods beginning after December 15, 2016 including the interim period within that year. The FASB issued several amendments clarifying various aspects of the ASU, including revenue transactions that involve a third party, goods or services that are immaterial in the context of the contract and licensing arrangements. ASC 606 may be adopted on either a full retrospective or modified retrospective basis. The Company plans to adopt the ASU effective the first quarter of fiscal year ending April 30, 2019. As the new standard will supersede all existing revenue guidance affecting the Company, it could impact the timing and amounts of revenue and costs recognized from customer contracts. The Company has developed an implementation plan, which is currently in the assessment phase. The Company has not selected a transition method and is currently evaluating the impact that adoption of the standard will have on its consolidated financial statements and related disclosures. In July 2015, the FASB issued ASU No. 2015-11, “ Inventory (Topic 330): Simplifying the Measurement of Inventory” . ASU No. 2015-11 requires an entity that determines the cost of inventory by methods other than last-in, first-out (LIFO) and the retail inventory method (RIM) to measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This amendment applies to all inventory that is measured using the average cost or first-in first-out (FIFO) methods. This supersedes prior guidance which allowed entities to measure inventory at the lower of cost or market, where market could be replacement cost, net realizable value or net realizable value less an approximately normal profit margin. ASU No. 2015-11 is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2016. Prospective application is required. Early application is permitted as of the beginning of the interim or annual reporting period. The Company plans to adopt ASU No. 2015-11 for the fiscal year ending April 30, 2018 and does not expect the impact of the adoption of this ASU to have a material impact on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, “ Leases” . The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for capital leases and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. While the Company is still evaluating the impact of its pending adoption of the new standard on its consolidated financial statements, the Company expects that upon adoption in the fiscal year ending April 30, 2020, it will recognize ROU assets and lease liabilities and that the amounts could be material. In March 2016, the FASB issued ASU No. 2016-09, “ Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting”, a new accounting standard update intended to simplify several aspects of the accounting for share-based payment transactions including: income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. Specifically, the update requires that excess tax benefits and tax deficiencies (the difference between the deduction for tax purposes and the compensation cost recognized for financial reporting purposes) be recognized as income tax expense or benefit in the Consolidated Statements of Income, introducing a new element of volatility to the provision for income taxes. NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued New Accounting Standards - Continued This update is effective for fiscal years beginning after December 15, 2016. Early adoption is permitted. The Company plans to adopt the ASU for the fiscal year ending April 30, 2018. Upon adoption of the ASU all share-based awards will continue to be accounted for as equity awards, excess tax benefits recognized on stock-based compensation expense will be reflected in the consolidated statements of income as a component of the provision for income taxes on a prospective basis, excess tax benefits recognized on stock-based compensation expense will be classified as an operating activity in the consolidated statements of cash flows on a prospective basis and the Company will elect to continue to estimate expected forfeitures over the course of a vesting period. In June 2016, the FASB issued ASU No. 2016-13, “ Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments .” ASU 2016-13 introduces a new forward-looking approach, based on expected losses, to estimate credit losses on certain types of financial instruments, including trade receivables. The estimate of expected credit losses will require entities to incorporate considerations of historical information, current information and reasonable and supportable forecasts. This ASU also expands the disclosure requirements to enable users of financial statements to understand the entity’s assumptions, models and methods for estimating expected credit losses. For public business entities, ASU 2016-13 is effective for annual and interim reporting periods beginning after December 15, 2019, and the guidance is to be applied using the modified-retrospective approach. Earlier adoption is permitted for annual and interim reporting periods beginning after December 15, 2018. The Company is currently evaluating the new guidance and has not determined the impact this ASU may have on its consolidated financial statements. In August 2016, the FASB issued ASU Update No. 2016-15, “Statement of Cash Flows- Classification of Certain Cash Receipts and Cash Payments, ” which is intended to reduce diversity in practice in how certain transactions are classified in the statements of cash flows. This update will be effective for fiscal years beginning after December 15, 2017 (the Company’s fiscal year ending April 30, 2019), and interim periods within those fiscal years. Early adoption is permitted, provided that all of the amendments are adopted in the same period. The guidance requires application using a retrospective transition method. The Company plans to adopt the ASU in its fiscal year ending April 30, 2019 using the retrospective transition method. The Company does not expect the impact of the adoption of this ASU to have a material impact on the Company’s Consolidated Statements of Cash Flows. In January 2017, the FASB issued ASU No. 2017-04, “ Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment ,” which removes the step 2 requirement to perform a hypothetical purchase price allocation to measure goodwill impairment. Goodwill impairment will now be the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the recorded amount of goodwill. This guidance is effective for public companies for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019, and early adoption is permitted. The Company does not expect this guidance to have a significant impact on its financial statements and plans to adopt ASU No. 2017-04 in the first quarter of its fiscal year ending April 30, 2018. In January 2017, the FASB issued ASU No. 2017-01, “ Business Combinations (Topic 805): Clarifying the Definition of a Business ,” which clarifies the definition of a business when evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. For public companies, this ASU is effective for annual periods beginning after December 15, 2017, including interim periods within those periods. The Company plans to adopt this ASU in the first quarter of its fiscal year ending April 30, 2019. The Company will apply the clarified definition of a business, as applicable, from the period of adoption. |
Summary Of Significant Accoun24
Summary Of Significant Accounting Policies (Tables) | 12 Months Ended |
Apr. 30, 2017 | |
Summary Of Significant Accounting Policies [Abstract] | |
Depreciation and Amortization Using Straight-Line Method Over Estimated Useful Life | Buildings 20 years Machinery and equipment 5 -12 years Office equipment and software 3 -5 years Tools and dies 12 months Leasehold improvements lesser of lease term or useful life |
Computation Of Basic And Diluted Earnings Per Share | Twelve Months Ended April 30, 2017 2016 Net income $ 1,390,206 $ 2,082,659 Weighted-average shares Basic 4,186,183 4,164,815 Effect of dilutive stock options 27,409 59,215 Diluted 4,213,592 4,224,030 Basic earnings per share $ 0.33 $ 0.50 Diluted earnings per share $ 0.33 $ 0.49 |
Allowance for Doubtful Accoun25
Allowance for Doubtful Accounts (Tables) | 12 Months Ended |
Apr. 30, 2017 | |
Allowance For Doubtful Accounts [Abstract] | |
Changes in Company's Allowance for Doubtful Accounts | 2017 2016 Beginning Balance $ 100,000 $ 186,844 Bad debt expense - - Write-offs - (86,844) $ 100,000 $ 100,000 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Apr. 30, 2017 | |
Inventories [Abstract] | |
Components Of Inventory | 2017 2016 Finished products $ 20,291,768 $ 23,295,138 Work-in-process 1,795,852 3,035,459 Raw materials 52,748,542 42,530,957 74,836,162 68,861,554 Less obsolescence reserve 1,264,924 1,212,532 $ 73,571,238 $ 67,649,022 |
Changes In Inventory Obsolescence Reserve | 2017 2016 Beginning balance $ 1,212,532 $ 1,276,386 Provision for obsolescence 300,000 - Write-offs (247,608) (63,854) $ 1,264,924 $ 1,212,532 |
Property, Machinery And Equip27
Property, Machinery And Equipment, Net (Tables) | 12 Months Ended |
Apr. 30, 2017 | |
Property, Machinery And Equipment, Net [Abstract] | |
Schedule Of Property, Machinery And Equipment | 2017 2016 Land and buildings $ 16,969,769 $ 16,220,619 Machinery and equipment 58,428,733 57,604,080 Office equipment and software 9,601,149 9,134,187 Leasehold improvements 2,622,870 2,566,250 Equipment under capital leases 10,119,412 8,055,533 97,741,933 93,580,669 Less accumulated depreciation and amortization, including amortization of assets under capital leases of $2,940,833 and $1,972,085 at April 30, 2017 and 2016, respectively 64,733,219 60,499,811 Property, machinery and equipment, net $ 33,008,714 $ 33,080,858 |
Goodwill And Other Intangible28
Goodwill And Other Intangible Assets (Tables) | 12 Months Ended |
Apr. 30, 2017 | |
Goodwill And Other Intangible Assets [Abstract] | |
Summary Of Intangible Assets Subject To Amortization | Intangible assets subject to amortization are summarized as of April 30, 2017 as follows: Weighted Average Remaining Gross Amortization Carrying Accumulated Period (Years) Amount Amortization Other intangible assets – Able - $ 375,000 $ 375,000 Customer relationships – Able - 2,395,000 2,395,000 Spitfire: Non-contractual customer relationships 10.08 4,690,000 1,237,410 Backlog - 22,000 22,000 Trade names 15.08 980,000 240,897 Non-compete agreements 2.08 50,000 35,105 Patents 0.08 400,000 393,353 Total $ 8,912,000 $ 4,698,765 Intangible assets subject to amortization are summarized as of April 30, 2016 as follows: Weighted Average Remaining Gross Amortization Carrying Accumulated Period (Years) Amount Amortization Other intangible assets – Able - $ 375,000 $ 375,000 Customer relationships – Able - 2,395,000 2,395,000 Spitfire: Non-contractual customer relationships 11.08 4,690,000 883,540 Backlog - 22,000 22,000 Trade names 16.08 980,000 191,901 Non-compete agreements 3.08 50,000 27,965 Patents 1.08 400,000 313,349 Total $ 8,912,000 $ 4,208,755 |
Estimated Aggregate Amortization Expense | For the fiscal year ending April 30: 2018 $ 435,043 2019 423,721 2020 411,406 2021 403,199 2022 395,578 Thereafter 2,144,288 $ 4,213,235 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Apr. 30, 2017 | |
Long-Term Debt [Abstract] | |
Aggregate Amount of Debt, Net Deferred Financing Fees | Fiscal Year Total 2018 $ 351,562 2019 1,346,062 2020 2,533,062 2021 23,313,122 $ 27,543,808 |
Accrued Expenses and Wages (Tab
Accrued Expenses and Wages (Tables) | 12 Months Ended |
Apr. 30, 2017 | |
Accrued Expenses And Wages [Abstract] | |
Schedule Of Accrued Expenses | 2017 2016 Interest $ 90,639 $ 61,350 Commissions 143,738 80,819 Professional fees 419,801 397,375 Other - Purchases 1,418,120 491,027 Other 1,550,808 1,741,730 $ 3,623,106 $ 2,772,301 |
Schedule Of Accrued Wages | 2017 2016 Wages $ 1,785,078 $ 1,706,141 Bonuses 819,207 920,563 Foreign wages 1,885,317 1,572,443 $ 4,489,602 $ 4,199,147 |
Income Tax (Tables)
Income Tax (Tables) | 12 Months Ended |
Apr. 30, 2017 | |
Income Tax [Abstract] | |
Income before Income Tax Expense | 2017 2016 Domestic $ 1,326,266 $ 2,224,802 Foreign 1,171,417 1,260,394 $ 2,497,683 $ 3,485,196 |
Income Tax Provision | 2017 2016 Current Federal $ 501,226 $ 279,043 State 13,697 29,217 Foreign 589,913 318,800 Total Current 1,104,836 627,060 Deferred Federal (54,213) 577,149 State 59,884 65,451 Foreign (3,030) 132,877 Total Deferred 2,641 775,477 Provision for income taxes $ 1,107,477 $ 1,402,537 |
Reconciliation of Income Taxes | 2017 2016 U.S Federal Provision: At statutory rate $ 849,215 $ 1,184,967 State taxes 42,643 117,922 Change in valuation allowance 78,100 (46,615) Foreign tax differential (89,885) (94,124) Impact of state tax rate change 5,920 (8,826) Foreign valuation allowance - (48,680) Other (52,219) 42,850 Foreign currency exchange gain/loss 328,239 311,867 Impact of foreign permanent items 7,171 (20,056) Foreign inflation adjustment (61,707) (36,768) Provision for income taxes $ 1,107,477 $ 1,402,537 |
Deferred Tax Assets and Liabilities | 2017 2016 Deferred Tax Assets Federal & State NOL carryforwards $ 29,168 $ 85,288 Foreign tax credit 78,100 - Reserves and accruals 723,313 615,431 Stock based compensation 462,156 244,199 Inventory 1,177,067 1,074,546 Other intangibles 206,736 203,789 Deferred rent 211,509 240,439 Allowance for doubtful accounts 38,360 38,150 Other DTA 13,839 8,902 Federal benefit of state 45,589 25,228 Total Gross Deferred Tax Assets 2,985,837 2,535,972 Less: Valuation allowance (78,100) - Net Deferred Tax Assets $ 2,907,737 $ 2,535,972 Deferred Tax Liabilities Other assets $ (318,830) $ (113,665) Property, machinery & equipment (3,441,393) (3,273,902) Prepaids (272,718) (270,968) Total Deferred Tax Liabilities $ (4,032,941) $ (3,658,535) Net Deferred Tax Liability $ (1,125,204) $ (1,122,563) |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Apr. 30, 2017 | |
Leases [Abstract] | |
Future Minimum Lease Payments Under Leases | Capital Operating Years ending April 30, Leases Leases 2018 $ 1,913,369 $ 2,296,427 2019 1,670,444 2,070,622 2020 1,055,860 1,263,854 2021 632,758 774,976 2022 220,221 100,470 Total future minimum lease payments $ 5,492,652 $ 6,506,349 Less amounts representing interest 416,623 5,076,029 Less Current Portion 1,711,204 Long Term Portion $ 3,364,825 |
Stock Compensation And Equity33
Stock Compensation And Equity Transactions (Tables) | 12 Months Ended |
Apr. 30, 2017 | |
Stock Compensation And Equity Transactions [Abstract] | |
Summarized Option Activity | Number of Number of securities to be Weighted- options issued upon average exercisable exercise of exercise at end outstanding options price of year Outstanding at April 30, 2015 85,954 3.81 76,954 Options granted during 2016 285,000 6.45 Options exercised during 2016 (2,000) 3.60 Options expired during 2016 (991) 9.17 Outstanding at April 30, 2016 367,963 5.84 172,513 Options exercised during 2017 (1,200) 3.60 Outstanding at April 30, 2017 366,763 $ 5.85 269,863 |
Stock Options Outstanding, Exercisable, and Non-vested | Information with respect to stock options outstanding at April 30, 2017 follows: Options outstanding Number Weighted-average Weighted- outstanding at remaining average April 30, 2017 contract life exercise price Range of exercise prices $ 3.60 -6.45 366,763 7.64 years $ 5.85 366,763 $ 5.85 NOTE N - STOCK COMPENSATION AND EQUITY TRANSACTIONS - Continued Information with respect to stock options outstanding and exercisable at April 30, 2017 follows: Options outstanding and exercisable Number Weighted-average Weighted- outstanding at remaining average April 30, 2017 contract life exercise price Range of exercise prices $ 3.60-6.45 269,863 7.41 years $ 5.63 269,863 $ 5.63 Information with respect to stock options non-vested at April 30, 2017 follows: Options non-vested Number Weighted-average Weighted- non-vested at remaining average April 30, 2017 contract life exercise price Range of exercise prices $ 6.45 96,900 8.26 years $ 6.45 96,900 $ 6.45 |
Selected Quarterly Financial 34
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Apr. 30, 2017 | |
Selected Quarterly Financial Data (Unaudited) [Abstract] | |
Summary Of Quarterly Financial Data | The following is a summary of unaudited quarterly financial data for fiscal year 2017: First Second Third Fourth 2017 Quarter Quarter Quarter Quarter Net sales $ 58,919,398 $ 65,842,957 $ 61,896,226 $ 65,577,213 Gross profit (1) 5,504,657 5,502,040 5,419,018 7,615,212 Income before income 226,858 26,616 89,036 2,155,173 tax expense (1), (2), (3) Net income (loss) 146,597 33,295 (47,852) 1,258,166 Earnings per share $ 0.03 $ 0.01 $ (0.01) $ 0.30 Basic Earnings per share $ 0.03 $ 0.01 $ (0.01) $ 0.30 Diluted Weighted average shares- Basic 4,183,955 4,185,752 4,186,813 4,188,279 Weighted average shares- Diluted 4,214,535 4,225,874 4,215,962 4,209,516 1.) Due to a fire at one of the Company’s plants during 2017, the Company recorded expense of approximately $230,000 in prior quarters in costs of goods sold that was realized as an insurance recovery during the fourth quarter of 2017 as recovery was considered probable. As part of this settlement, a gain of approximately $277,000 was also recorded in the fourth quarter of fiscal 2017 due to the insurance claim exceeding the net book value of the replacement machinery and equipment destroyed. 2.) The Company records inventory reserves for valuation and shrinkage throughout the year based on historical data. In the fourth quarter of fiscal 2017 physical inventory results were completed and the Company adjusted the estimate which increased income before income tax expense by approximately $780,000 . 3.) As discussed in Note G, during the fourth quarter of fiscal 2017 the Company recorded a change in estimate related to Contingent Consideration which increased income before income tax expense in the amount of approximately $247,000 . The aggregate after-tax effect for the above adjustments in the fourth quarter of fiscal 2017 was an increase to basic earnings per share of $0.21 . NOTE O - SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) - Continued The following is a summary of unaudited quarterly financial data for fiscal year 2016: First Second Third Fourth 2016 Quarter Quarter Quarter Quarter Net sales $ 64,220,946 $ 69,723,493 $ 59,206,344 $ 60,753,363 Gross profit 6,230,274 7,597,013 5,708,096 5,983,148 Income before income 962,323 1,857,036 377,599 288,238 tax expense Net income 658,806 1,156,298 218,728 48,827 Earnings per share $ 0.16 $ 0.28 $ 0.05 $ 0.01 Basic Earnings per share $ 0.16 $ 0.27 $ 0.05 $ 0.01 Diluted Weighted average shares- Basic 4,148,285 4,166,758 4,170,193 4,174,251 Weighted average shares- Diluted 4,193,657 4,214,317 4,229,378 4,208,184 |
Description Of The Business (Na
Description Of The Business (Narrative) (Details) - segment | 12 Months Ended | |
Apr. 30, 2017 | Apr. 30, 2016 | |
Description Of Business [Abstract] | ||
Number of business segments as an independent provider of electronic manufacturing services | 1 | |
Total consolidated assets of the Company located in foreign jurisdictions outside the United States | 14.00% | 15.00% |
Summary Of Significant Accoun36
Summary Of Significant Accounting Policies (Narrative) (Details) - USD ($) | Feb. 01, 2017 | Apr. 30, 2017 | Apr. 30, 2016 |
Summary Of Significant Accounting Policies [Line Items] | |||
Impact of currency fluctuation, resulted net foreign currency losses | $ 508,000 | $ 59,000 | |
Proceeds from sale of trade receivables | $ 95,000,000 | 115,000,000 | |
Accounts receivable average uncollectible period | 5 years | ||
Deferred financing fees | $ 208,583 | 112,917 | |
Deferred finance cost accumulated amortization | $ 11,916 | $ 443,763 | |
Anti-dilutive common stock excluded from the calculation of diluted earnings per share | 285,000 | 0 | |
Goodwill impairment | $ 0 | ||
Long-lived assets impairment | $ 0 | ||
Contractual life of options | 10 years | ||
Increased noncurrent deferred tax assets | $ 236,087 | $ 233,057 | |
Decreased noncurrent deferred tax liabilities | $ 1,361,291 | $ 1,355,620 | |
Minimum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Option exercise price as a percentage of market price of shares | 100.00% | ||
Patents [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful life | 5 years | ||
Trade Names [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful life | 20 years | ||
Backlog [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful life | 1 year | ||
Non-Compete Agreements [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful life | 7 years | ||
Customer Relationships [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful life | 15 years |
Summary Of Significant Accoun37
Summary Of Significant Accounting Policies (Depreciation and Amortization Using Straight-Line Method Over Estimated Useful Life) (Details) | 12 Months Ended |
Apr. 30, 2017 | |
Buildings [Member] | |
Property Plant and Equipment Estimated Useful Lives [Line Items] | |
Property, Plant and Equipment, Useful Life | 20 years |
Machinery And Equipment [Member] | Minimum [Member] | |
Property Plant and Equipment Estimated Useful Lives [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Machinery And Equipment [Member] | Maximum [Member] | |
Property Plant and Equipment Estimated Useful Lives [Line Items] | |
Property, Plant and Equipment, Useful Life | 12 years |
Office Equipment And Software [Member] | Minimum [Member] | |
Property Plant and Equipment Estimated Useful Lives [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Office Equipment And Software [Member] | Maximum [Member] | |
Property Plant and Equipment Estimated Useful Lives [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Tools And Dies [Member] | |
Property Plant and Equipment Estimated Useful Lives [Line Items] | |
Property, Plant and Equipment, Useful Life | 12 months |
Leasehold Improvements [Member] | |
Property Plant and Equipment Estimated Useful Lives [Line Items] | |
Property, Plant and Equipment, Term of lease | lesser of lease term or useful life |
Summary Of Significant Accoun38
Summary Of Significant Accounting Policies (Computation Of Basic And Diluted Earnings Per Share) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Apr. 30, 2017 | Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2017 | Apr. 30, 2016 | |
Earnings Per Share And Stockholders' Equity [Abstract] | ||||||||||
Net income | $ 1,258,166 | $ (47,852) | $ 33,295 | $ 146,597 | $ 48,827 | $ 218,728 | $ 1,156,298 | $ 658,806 | $ 1,390,206 | $ 2,082,659 |
Weighted average shares- Basic | 4,188,279 | 4,186,813 | 4,185,752 | 4,183,955 | 4,174,251 | 4,170,193 | 4,166,758 | 4,148,285 | 4,186,183 | 4,164,815 |
Weighted-average shares, Effect of dilutive stock options | 27,409 | 59,215 | ||||||||
Weighted-average shares, Diluted | 4,209,516 | 4,215,962 | 4,225,874 | 4,214,535 | 4,208,184 | 4,229,378 | 4,214,317 | 4,193,657 | 4,213,592 | 4,224,030 |
Basic earnings per share | $ 0.30 | $ (0.01) | $ 0.01 | $ 0.03 | $ 0.01 | $ 0.05 | $ 0.28 | $ 0.16 | $ 0.33 | $ 0.50 |
Diluted earnings per share | $ 0.30 | $ (0.01) | $ 0.01 | $ 0.03 | $ 0.01 | $ 0.05 | $ 0.27 | $ 0.16 | $ 0.33 | $ 0.49 |
Allowance For Doubtful Accoun39
Allowance For Doubtful Accounts (Changes in Company's Allowance for Doubtful Accounts) (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2017 | Apr. 30, 2016 | |
Allowance For Doubtful Accounts [Abstract] | ||
Beginning Balance | $ 100,000 | $ 186,844 |
Bad debt expense | ||
Write-offs | (86,844) | |
Ending Balance | $ 100,000 | $ 100,000 |
Inventories (Components Of Inve
Inventories (Components Of Inventory) (Details) - USD ($) | Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2015 |
Inventories [Abstract] | |||
Finished products | $ 20,291,768 | $ 23,295,138 | |
Work-in-process | 1,795,852 | 3,035,459 | |
Raw materials | 52,748,542 | 42,530,957 | |
Total inventory, gross | 74,836,162 | 68,861,554 | |
Less obsolescence reserve | 1,264,924 | 1,212,532 | $ 1,276,386 |
Total inventory, net | $ 73,571,238 | $ 67,649,022 |
Inventories (Changes in Invento
Inventories (Changes in Inventory Obsolescence Reserve) (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2017 | Apr. 30, 2016 | |
Inventories [Abstract] | ||
Beginning balance | $ 1,212,532 | $ 1,276,386 |
Provision for obsolescence | 300,000 | |
Write-offs | (247,608) | (63,854) |
Ending balance | $ 1,264,924 | $ 1,212,532 |
Related Parties (Narrative) (De
Related Parties (Narrative) (Details) | Dec. 06, 2016 | Jan. 29, 2016USD ($)$ / shares | Apr. 30, 2017USD ($) | Apr. 30, 2016USD ($) | Mar. 31, 2015employee |
Related Party Transaction [Line Items] | |||||
Outstanding note receivable from related parties | $ 888,000 | $ 888,000 | |||
Outstanding account receivable from related parties | 1,271,000 | 233,000 | |||
Inventory on hand from related parties | $ 310,000 | $ 1,600,000 | |||
Promissory Note [Member] | |||||
Related Party Transaction [Line Items] | |||||
Conversion of accounts receivable into a notes receivable | $ 888,000 | ||||
Interest rate | 8.00% | ||||
Maturity date | Oct. 31, 2016 | ||||
Maturity within number of days after obtains equity financing by related parties | 10 days | ||||
Warrants period | 10 years | ||||
Warrants exercise price, per share | $ / shares | $ 0.01 | ||||
Promissory Note [Member] | Extended Maturity [Member] | |||||
Related Party Transaction [Line Items] | |||||
Maturity date | Jul. 31, 2017 | ||||
Promissory Note [Member] | Extended Interest Rate [Member] | |||||
Related Party Transaction [Line Items] | |||||
Interest rate | 8.00% | ||||
Executive [Member] | |||||
Related Party Transaction [Line Items] | |||||
Number of executive officers invested in a start-up customer | employee | 2 | ||||
Minimum [Member] | Promissory Note [Member] | |||||
Related Party Transaction [Line Items] | |||||
Percentage of warrants exercised on equity securities with related parties | 1.00% | ||||
Maximum [Member] | Executive [Member] | |||||
Related Party Transaction [Line Items] | |||||
Executive officers' investment holding, percentage | 2.00% |
Property, Machinery and Equip43
Property, Machinery and Equipment, Net (Narrative) (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2017 | Apr. 30, 2016 | |
Property, Machinery And Equipment, Net [Abstract] | ||
Depreciation and amortization expense | $ 4,708,876 | $ 5,119,376 |
Property, Machinery and Equip44
Property, Machinery and Equipment, Net (Schedule Of Property, Machinery And Equipment) (Details) - USD ($) | Apr. 30, 2017 | Apr. 30, 2016 |
Property, Machinery and Equipment [Line Items] | ||
Property, machinery and equipment, gross | $ 97,741,933 | $ 93,580,669 |
Less accumulated depreciation and amortization, including amortization of assets under capital leases of $2,940,833 and $1,972,085 at April 30, 2017 and 2016, respectively | 64,733,219 | 60,499,811 |
Property, machinery and equipment, net | 33,008,714 | 33,080,858 |
Amortization of assets under capital leases | 2,940,833 | 1,972,085 |
Land And Buildings [Member] | ||
Property, Machinery and Equipment [Line Items] | ||
Property, machinery and equipment, gross | 16,969,769 | 16,220,619 |
Machinery And Equipment [Member] | ||
Property, Machinery and Equipment [Line Items] | ||
Property, machinery and equipment, gross | 58,428,733 | 57,604,080 |
Office Equipment And Software [Member] | ||
Property, Machinery and Equipment [Line Items] | ||
Property, machinery and equipment, gross | 9,601,149 | 9,134,187 |
Leasehold Improvements [Member] | ||
Property, Machinery and Equipment [Line Items] | ||
Property, machinery and equipment, gross | 2,622,870 | 2,566,250 |
Equipment Under Capital Leases [Member] | ||
Property, Machinery and Equipment [Line Items] | ||
Property, machinery and equipment, gross | $ 10,119,412 | $ 8,055,533 |
Goodwill And Other Intangible45
Goodwill And Other Intangible Assets (Narrative) (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2017 | Apr. 30, 2016 | |
Goodwill [Line Items] | ||
Changes in goodwill carrying amount | $ 0 | $ 0 |
Goodwill | 3,222,899 | 3,222,899 |
Amortization expense | 490,010 | 470,899 |
Adjustment on contingent consideration liability | (353,591) | (5,742) |
Contingent consideration liability | 523,818 | 1,151,081 |
Spitfire [Member] | ||
Goodwill [Line Items] | ||
Total payment for business acquisition | 273,672 | $ 342,162 |
Adjustment on contingent consideration liability | $ (353,591) |
Goodwill And Other Intangible46
Goodwill And Other Intangible Assets (Summary Of Intangible Assets Subject To Amortization) (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2017 | Apr. 30, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 8,912,000 | $ 8,912,000 |
Accumulated Amortization | 4,698,765 | 4,208,755 |
Able [Member] | Other Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 375,000 | 375,000 |
Accumulated Amortization | 375,000 | 375,000 |
Able [Member] | Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2,395,000 | 2,395,000 |
Accumulated Amortization | $ 2,395,000 | $ 2,395,000 |
Spitfire [Member] | Non-Contractual Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Amortization Period | 10 years 29 days | 11 years 29 days |
Gross Carrying Amount | $ 4,690,000 | $ 4,690,000 |
Accumulated Amortization | 1,237,410 | 883,540 |
Spitfire [Member] | Backlog [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 22,000 | 22,000 |
Accumulated Amortization | $ 22,000 | $ 22,000 |
Spitfire [Member] | Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Amortization Period | 15 years 29 days | 16 years 29 days |
Gross Carrying Amount | $ 980,000 | $ 980,000 |
Accumulated Amortization | $ 240,897 | $ 191,901 |
Spitfire [Member] | Non-Compete Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Amortization Period | 2 years 29 days | 3 years 29 days |
Gross Carrying Amount | $ 50,000 | $ 50,000 |
Accumulated Amortization | $ 35,105 | $ 27,965 |
Spitfire [Member] | Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Amortization Period | 29 days | 1 year 29 days |
Gross Carrying Amount | $ 400,000 | $ 400,000 |
Accumulated Amortization | $ 393,353 | $ 313,349 |
Goodwill And Other Intangible47
Goodwill And Other Intangible Assets (Estimated Aggregate Amortization Expense) (Details) - USD ($) | Apr. 30, 2017 | Apr. 30, 2016 |
Goodwill And Other Intangible Assets [Abstract] | ||
For the fiscal year ending April 30, 2018 | $ 435,043 | |
For the fiscal year ending April 30, 2019 | 423,721 | |
For the fiscal year ending April 30, 2020 | 411,406 | |
For the fiscal year ending April 30, 2021 | 403,199 | |
For the fiscal year ending April 30, 2022 | 395,578 | |
Thereafter | 2,144,288 | |
Total | $ 4,213,235 | $ 4,703,245 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) | Mar. 31, 2017USD ($) | Mar. 24, 2017CNY (¥) | Feb. 01, 2017USD ($) | Nov. 01, 2016USD ($) | Aug. 04, 2015CNY (¥) | Nov. 24, 2014USD ($) | Oct. 24, 2013USD ($) | Jan. 08, 2010USD ($) | Apr. 30, 2016USD ($) | Dec. 31, 2010USD ($) | Jul. 31, 2015USD ($) | Apr. 30, 2017USD ($) | Mar. 30, 2017USD ($) |
Debt Instrument [Line Items] | |||||||||||||
Deferred financing costs | $ 112,917 | $ 208,583 | |||||||||||
Cumulative amount of unremitted earnings | 10,672,000 | ||||||||||||
Equipment refinanced through leasing transaction | 5,076,029 | ||||||||||||
Payments under capital lease | 5,492,652 | ||||||||||||
Other long-term liabilities | 870,542 | 991,017 | |||||||||||
Wells Fargo Equipment Finance [Member] | Capital Lease Obligations [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Total equipment purchased under the capital lease | $ 1,376,799 | ||||||||||||
Outstanding amount under capital lease | 106,767 | 0 | |||||||||||
Net book value of capital leased assets | 703,424 | 589,524 | |||||||||||
Associated Bank, National Association [Member] | Capital Lease And Sale Leaseback Agreements [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Total equipment purchased under the capital lease | 6,240,562 | ||||||||||||
Outstanding amount under capital lease | 2,599,820 | 3,627,760 | |||||||||||
Net book value of capital leased assets | 3,224,661 | 4,713,044 | |||||||||||
CIT Finance LLC [Member] | Capital Lease Obligations [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Total equipment purchased under the capital lease | $ 2,512,051 | ||||||||||||
Outstanding amount under capital lease | 1,886,069 | 1,448,269 | |||||||||||
Net book value of capital leased assets | 2,155,363 | 1,946,026 | |||||||||||
Wells Fargo Bank [Member] | Notes Payable - Buildings [Member] | Corporate Headquarters And Manufacturing Facility [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Mortgage agreement, amount | $ 2,500,000 | ||||||||||||
Mortgage agreement, interest rate | 2.25% | ||||||||||||
Mortgage agreement, effective interest rate | 3.25% | ||||||||||||
Mortgage agreement, final payment | $ 2,289,500 | ||||||||||||
Mortgage agreement, maturity date | Nov. 8, 2019 | ||||||||||||
Mortgage agreement, monthly principal payment | $ 9,500 | ||||||||||||
Mortgage agreement, payable period | 60 months | ||||||||||||
Mortgage agreement, outstanding amount | 2,688,500 | 2,574,500 | |||||||||||
Wells Fargo Bank [Member] | Notes Payable - Buildings [Member] | Engineering And Design Center [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Mortgage agreement, amount | $ 1,275,000 | ||||||||||||
Mortgage agreement, interest rate | 4.50% | ||||||||||||
Mortgage agreement, final payment | $ 1,030,000 | ||||||||||||
Mortgage agreement, maturity date | Oct. 24, 2018 | ||||||||||||
Mortgage agreement, monthly principal payment | $ 4,250 | ||||||||||||
Mortgage agreement, payable period | 60 months | ||||||||||||
Mortgage agreement, outstanding amount | 1,147,500 | $ 1,096,500 | |||||||||||
Wells Fargo Bank [Member] | Senior Secured Credit Facility [Member] | Notes Payable - Banks [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Credit facility credit limit | $ 30,000,000 | ||||||||||||
Equity ownership in foreign entities pledged as collateral, percentage | 65.00% | ||||||||||||
Outstanding balance under the credit facility | $ 22,232,914 | 20,014,069 | |||||||||||
Unused availability under the credit facility | $ 3,630,035 | ||||||||||||
U.S. Bank [Member] | Senior Secured Credit Facility [Member] | Notes Payable - Banks [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Credit facility credit limit | $ 35,000,000 | ||||||||||||
Expiration date | Mar. 31, 2022 | ||||||||||||
Fixed interest rate | 4.00% | ||||||||||||
Variable interest rate | 1.50% | ||||||||||||
Effective interest rate | 2.65% | ||||||||||||
Deferred financing costs | $ 207,647 | ||||||||||||
Outstanding balance under the credit facility | 23,178,429 | ||||||||||||
Unused availability under the credit facility | 11,821,571 | ||||||||||||
Engencap Fin S.A. DE C.V. [Member] | Notes Payable - Equipment [Member] | Equipment [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Fixed interest rate | 6.65% | ||||||||||||
Secured note agreement amount | $ 596,987 | ||||||||||||
Term extended agreement date | Nov. 1, 2021 | ||||||||||||
Average quarterly payment under secured note agreement | $ 35,060 | ||||||||||||
Secured note agreement, first payment date | Feb. 1, 2017 | ||||||||||||
Outstanding amount under note agreement | 567,138 | ||||||||||||
Engencap Fin S.A. DE C.V. [Member] | Notes Payable - Equipment 2 [Member] | Equipment [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Fixed interest rate | 7.35% | ||||||||||||
Secured note agreement amount | $ 335,825 | ||||||||||||
Term extended agreement date | Feb. 1, 2022 | ||||||||||||
Average quarterly payment under secured note agreement | $ 20,031 | ||||||||||||
Secured note agreement, first payment date | May 1, 2017 | ||||||||||||
Outstanding amount under note agreement | $ 335,825 | ||||||||||||
Minimum [Member] | Wells Fargo Equipment Finance [Member] | Capital Lease Obligations [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Lease financing agreement date | Jul. 1, 2016 | ||||||||||||
Payments under capital lease | $ 3,627 | ||||||||||||
Fixed interest rate under capital lease | 4.41% | ||||||||||||
Minimum [Member] | Associated Bank, National Association [Member] | Capital Lease And Sale Leaseback Agreements [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Lease financing agreement date | Sep. 1, 2018 | ||||||||||||
Payments under capital lease | $ 1,455 | ||||||||||||
Fixed interest rate under capital lease | 3.75% | ||||||||||||
Minimum [Member] | CIT Finance LLC [Member] | Capital Lease Obligations [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Lease financing agreement date | Mar. 1, 2019 | ||||||||||||
Payments under capital lease | $ 1,931 | ||||||||||||
Fixed interest rate under capital lease | 5.65% | ||||||||||||
Maximum [Member] | Wells Fargo Equipment Finance [Member] | Capital Lease Obligations [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Lease financing agreement date | Oct. 1, 2016 | ||||||||||||
Payments under capital lease | $ 13,207 | ||||||||||||
Fixed interest rate under capital lease | 4.99% | ||||||||||||
Maximum [Member] | Associated Bank, National Association [Member] | Capital Lease And Sale Leaseback Agreements [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Lease financing agreement date | Mar. 1, 2022 | ||||||||||||
Payments under capital lease | $ 40,173 | ||||||||||||
Fixed interest rate under capital lease | 4.95% | ||||||||||||
Maximum [Member] | CIT Finance LLC [Member] | Capital Lease Obligations [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Lease financing agreement date | Jul. 1, 2020 | ||||||||||||
Payments under capital lease | $ 12,764 | ||||||||||||
Fixed interest rate under capital lease | 6.50% | ||||||||||||
Foreign subsidiaries | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Other long-term liabilities | $ 800,067 | $ 913,827 | |||||||||||
Foreign subsidiaries | China Construction Bank [Member] | Credit Facility [Member] | Notes Payable - Banks [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Credit facility credit limit | ¥ | ¥ 9,000,000 | ¥ 5,000,000 | |||||||||||
Expiration date | Feb. 7, 2018 | Aug. 3, 2017 | |||||||||||
Fixed interest rate | 6.09% | 6.67% | |||||||||||
Outstanding balance under the credit facility | $ 0 | $ 0 |
Long-Term Debt (Aggregate Amoun
Long-Term Debt (Aggregate Amount of Debt, Net Deferred Financing Fees) (Details) | Apr. 30, 2017USD ($) |
Long-Term Debt [Abstract] | |
2,018 | $ 351,562 |
2,019 | 1,346,062 |
2,020 | 2,533,062 |
2,021 | 23,313,122 |
Total | $ 27,543,808 |
Accrued Expenses And Wages (Sch
Accrued Expenses And Wages (Schedule of Accrued Expenses) (Details) - USD ($) | Apr. 30, 2017 | Apr. 30, 2016 |
Accrued Expenses And Wages [Abstract] | ||
Interest | $ 90,639 | $ 61,350 |
Commissions | 143,738 | 80,819 |
Professional fees | 419,801 | 397,375 |
Other - Purchases | 1,418,120 | 491,027 |
Other | 1,550,808 | 1,741,730 |
Accrued expenses, total | $ 3,623,106 | $ 2,772,301 |
Accrued Expenses And Wages (S51
Accrued Expenses And Wages (Schedule of Accrued Wages) (Details) - USD ($) | Apr. 30, 2017 | Apr. 30, 2016 |
Accrued Expenses And Wages [Abstract] | ||
Wages | $ 1,785,078 | $ 1,706,141 |
Bonuses | 819,207 | 920,563 |
Foreign wages | 1,885,317 | 1,572,443 |
Accrued wages, total | $ 4,489,602 | $ 4,199,147 |
Income Tax (Narrative) (Details
Income Tax (Narrative) (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2017 | Apr. 30, 2016 | |
Income Tax [Abstract] | ||
Net operating loss carryforwards | $ 336,000 | |
Net operating loss carryforwards expire date | Apr. 30, 2025 | |
Cumulative amount of unremitted earnings | $ 10,672,000 | |
Foreign tax credit | 78,100 | |
Unrecognized tax benefits | 0 | $ 0 |
Other tax expense | $ 0 | $ 0 |
Income Tax (Income before Incom
Income Tax (Income before Income Tax Expense) (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||||
Apr. 30, 2017 | [1],[2],[3] | Jan. 31, 2017 | [1],[2],[3] | Oct. 31, 2016 | [1],[2],[3] | Jul. 31, 2016 | [1],[2],[3] | Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2017 | Apr. 30, 2016 | |
Income Tax [Abstract] | ||||||||||||||
Domestic | $ 1,326,266 | $ 2,224,802 | ||||||||||||
Foreign | 1,171,417 | 1,260,394 | ||||||||||||
Income before income tax expense | $ 2,155,173 | $ 89,036 | $ 26,616 | $ 226,858 | $ 288,238 | $ 377,599 | $ 1,857,036 | $ 962,323 | $ 2,497,683 | $ 3,485,196 | ||||
[1] | As discussed in Note G, during the fourth quarter of fiscal 2017 the Company recorded a change in estimate related to Contingent Consideration which increased income before income tax expense in the amount of approximately $247,000. | |||||||||||||
[2] | Due to a fire at one of the Company's plants during 2017, the Company recorded expense of approximately $230,000 in prior quarters in costs of goods sold that was realized as an insurance recovery during the fourth quarter of 2017 as recovery was considered probable. As part of this settlement, a gain of approximately $277,000 was also recorded in the fourth quarter of fiscal 2017 due to the insurance claim exceeding the net book value of the replacement machinery and equipment destroyed. | |||||||||||||
[3] | The Company records inventory reserves for valuation and shrinkage throughout the year based on historical data. In the fourth quarter of fiscal 2017 physical inventory results were completed and the Company adjusted the estimate which increased income before income tax expense by approximately $780,000. |
Income Tax (Income Tax Provisio
Income Tax (Income Tax Provision) (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2017 | Apr. 30, 2016 | |
Current | ||
Federal | $ 501,226 | $ 279,043 |
State | 13,697 | 29,217 |
Foreign | 589,913 | 318,800 |
Total Current | 1,104,836 | 627,060 |
Deferred | ||
Federal | (54,213) | 577,149 |
State | 59,884 | 65,451 |
Foreign | (3,030) | 132,877 |
Total Deferred | 2,641 | 775,477 |
Provision for income taxes | $ 1,107,477 | $ 1,402,537 |
Income Tax (Reconciliation of I
Income Tax (Reconciliation of Income Taxes) (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2017 | Apr. 30, 2016 | |
U.S. Federal Provision: | ||
At statutory rate | $ 849,215 | $ 1,184,967 |
State taxes | 42,643 | 117,922 |
Change in valuation allowance | 78,100 | (46,615) |
Foreign tax differential | (89,885) | (94,124) |
Impact of state tax rate change | 5,920 | (8,826) |
Foreign valuation allowance | (48,680) | |
Other | (52,219) | 42,850 |
Foreign currency exchange gain/loss | 328,239 | 311,867 |
Impact of foreign permanent items | 7,171 | (20,056) |
Foreign inflation adjustment | (61,707) | (36,768) |
Provision for income taxes | $ 1,107,477 | $ 1,402,537 |
Income Tax (Deferred Tax Assets
Income Tax (Deferred Tax Assets and Liabilities) (Details) - USD ($) | Apr. 30, 2017 | Apr. 30, 2016 |
Deferred Tax Assets | ||
Federal & State NOL carryforwards | $ 29,168 | $ 85,288 |
Foreign tax credit | 78,100 | |
Reserves and accruals | 723,313 | 615,431 |
Stock based compensation | 462,156 | 244,199 |
Inventory | 1,177,067 | 1,074,546 |
Other intangibles | 206,736 | 203,789 |
Deferred rent | 211,509 | 240,439 |
Allowance for doubtful accounts | 38,360 | 38,150 |
Other DTA | 13,839 | 8,902 |
Federal benefit of state | 45,589 | 25,228 |
Total Gross Deferred Tax Assets | 2,985,837 | 2,535,972 |
Less: Valuation allowance | (78,100) | |
Net Deferred Tax Assets | 2,907,737 | 2,535,972 |
Deferred Tax Liabilities | ||
Other assets | (318,830) | (113,665) |
Property, machinery & equipment | (3,441,393) | (3,273,902) |
Prepaids | (272,718) | (270,968) |
Total Deferred Tax Liabilities | (4,032,941) | (3,658,535) |
Net Deferred Tax Liability | $ (1,125,204) | $ (1,122,563) |
401(k) Retirement Savings Plan
401(k) Retirement Savings Plan (Narrative) (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2017 | Apr. 30, 2016 | |
401(k) Retirement Savings Plan [Abstract] | ||
Annual contribution to be matched by employer | $ 300 | |
Amount contributed towards retirement plans | 91,686 | $ 75,448 |
Plan administration incurred total expenses | $ 8,000 | $ 13,460 |
Major Customers and Concentra58
Major Customers and Concentration of Credit Risk (Narrative) (Details) | 12 Months Ended | ||
Apr. 30, 2017USD ($)customer | Apr. 30, 2016customer | May 01, 2015USD ($) | |
Concentration Risk [Line Items] | |||
Number of customers accounted for net sales and account receivable | customer | 2 | 2 | |
China [Member] | |||
Concentration Risk [Line Items] | |||
Cash | $ 2,002,058 | ||
Cash insured amount from deposit insurance program | $ 81,000 | ||
Major Customer One [Member] | Sales Revenue, Net [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk from major customer, percentage | 26.70% | 35.20% | |
Major Customer One [Member] | Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk from major customer, percentage | 8.40% | 6.50% | |
Major Customer Two [Member] | Sales Revenue, Net [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk from major customer, percentage | 12.60% | 10.60% | |
Major Customer Two [Member] | Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk from major customer, percentage | 4.20% | 2.40% |
Leases (Narrative) (Details)
Leases (Narrative) (Details) | May 31, 2012ft² | Sep. 30, 2010USD ($)ft² | Apr. 30, 2017USD ($) | Apr. 30, 2016USD ($) |
Leases Disclosure [Line Items] | ||||
Monthly installment payments under capital lease | $ 5,492,652 | |||
Rent expense under operating leases | 2,363,778 | $ 2,258,359 | ||
Union City, CA [Member] | ||||
Leases Disclosure [Line Items] | ||||
Number of square feet of manufacturing and office space | ft² | 117,000 | |||
Extended lease agreement period | Mar. 1, 2021 | |||
Deferred rent income | 79,575 | 51,509 | ||
Incentives related to lease | $ 418,000 | |||
Deferred rent | 550,672 | 630,247 | ||
Tijuana, MX [Member] | ||||
Leases Disclosure [Line Items] | ||||
Number of square feet of manufacturing and office space | ft² | 112,000 | |||
Extended lease agreement period | Nov. 1, 2018 | |||
Deferred rent income | 127,967 | 115,837 | ||
Deferred rent | $ 224,964 | $ 352,931 |
Leases (Future Minimum Lease Pa
Leases (Future Minimum Lease Payments under Leases) (Details) - USD ($) | Apr. 30, 2017 | Apr. 30, 2016 |
Capital Leases | ||
2,018 | $ 1,913,369 | |
2,019 | 1,670,444 | |
2,020 | 1,055,860 | |
2,021 | 632,758 | |
2,022 | 220,221 | |
Total future minimum lease payments | 5,492,652 | |
Less amounts representing interest | 416,623 | |
Capital lease obligation | 5,076,029 | |
Less Current Portion | 1,711,204 | $ 1,374,898 |
Long Term Portion | 3,364,825 | $ 3,217,758 |
Operating Leases | ||
2,018 | 2,296,427 | |
2,019 | 2,070,622 | |
2,020 | 1,263,854 | |
2,021 | 774,976 | |
2,022 | 100,470 | |
Total future minimum lease payments | $ 6,506,349 |
Stock Compensation And Equity61
Stock Compensation And Equity Transactions (Narrative) (Details) | Oct. 01, 2016shares | Oct. 01, 2015shares | May 01, 2015USD ($)item$ / sharesshares | Apr. 30, 2017USD ($)shares | Apr. 30, 2016USD ($)shares | Apr. 30, 2014shares |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Maximum term of options granted | 10 years | |||||
Options granted | shares | 285,000 | |||||
Aggregate intrinsic value of options exercised | $ 2,172 | $ 5,100 | ||||
Aggregate intrinsic value of options outstanding | 135,151 | 198,715 | ||||
Value of shares issued under employee stock purchase plan | 8,347 | 52,266 | ||||
Number of shares sold to investors in a private offering | shares | 74,000 | |||||
Number of investors | item | 3 | |||||
Price per share, private offering | $ / shares | $ 7 | |||||
Proceeds from the sale of restricted stock | $ 518,000 | |||||
2014 Awards [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Options granted | shares | 25,000 | |||||
Recognized stock-based compensation | 3,500 | 18,100 | ||||
Balance of unrecognized compensation expense related to stock options plans | $ 0 | |||||
2016 Awards [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Options granted | shares | 285,000 | |||||
Recognized stock-based compensation | $ 325,700 | $ 556,400 | ||||
Balance of unrecognized compensation expense related to stock options plans | $ 83,700 | |||||
Employee Stock Purchase Plan [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Number of options eligible to purchase under the plan | shares | 500,000 | |||||
Price of common stock as a percent of the average fair market value | 85.00% | |||||
Maximum individual purchase amount per year | $ 25,000 | |||||
Maximum number of shares of common stock purchasable in total by all participants in the ESPP | shares | 500,000 | |||||
Number of shares released for issuance each fiscal year | shares | 25,000 | |||||
Shares issued under employee stock purchase plan | shares | 1,658 | 9,670 | ||||
Value of shares issued under employee stock purchase plan | $ 3,559 | $ 13,728 | ||||
Employee Stock Purchase Plan [Member] | Minimum [Member] | Tranche One [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Payroll deduction percentage | 1.00% | |||||
Employee Stock Purchase Plan [Member] | Maximum [Member] | Tranche One [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Payroll deduction percentage | 15.00% | |||||
Employees Plan [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Number of shares available for future issuance | shares | 117,914 | |||||
Non Employee Director Plan [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Number of shares available for future issuance | shares | 0 | |||||
Non Employee Director Plan [Member] | Restricted Stock [Member] | October 1, 2016 [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Recognized stock-based compensation | $ 60,649 | |||||
Shares of restricted stock granted | shares | 11,250 | |||||
Balance of unrecognized compensation expense related to restricted stock award | $ 0 | |||||
Non Employee Director Plan [Member] | Restricted Stock [Member] | October 1, 2015 [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Recognized stock-based compensation | 69,400 | |||||
Vesting period | 6 months | |||||
Restricted stock issued | shares | 2,000 | |||||
Shares of restricted stock granted | shares | 10,000 | |||||
Balance of unrecognized compensation expense related to restricted stock award | $ 0 |
Stock Compensation And Equity62
Stock Compensation And Equity Transactions (Summarized Option Activity) (Details) - $ / shares | 12 Months Ended | ||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2015 | |
Number of securities to be issued upon exercise of outstanding options | |||
Outstanding, beginning balance | 367,963 | 85,954 | |
Options granted | 285,000 | ||
Options exercised | (1,200) | (2,000) | |
Options expired | (991) | ||
Outstanding, ending balance | 366,763 | 367,963 | |
Weighted-average exercise price | |||
Outstanding, Weighted-average exercise price, beginning balance | $ 5.84 | $ 3.81 | |
Options granted, Weighted-average exercise price | 6.45 | ||
Options exercised, Weighted-average exercise price | 3.60 | 3.60 | |
Options expired, Weighted-average exercise price | 9.17 | ||
Outstanding, Weighted-average exercise price, ending balance | $ 5.85 | $ 5.84 | |
Outstanding, Number of options exercisable at end of year | 269,863 | 172,513 | 76,954 |
Stock Compensation And Equity63
Stock Compensation And Equity Transactions (Stock Options Outstanding, Exercisable, and Non-vested) (Details) | 12 Months Ended |
Apr. 30, 2017$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number options outstanding | shares | 366,763 |
Weighted-average exercise price, outstanding | $ 5.85 |
Number options outstanding and exercisable | shares | 269,863 |
Weighted-average exercise price, outstanding and exercisable | $ 5.63 |
Number options non-vested | shares | 96,900 |
Weighted-average exercise price, non-vested | $ 6.45 |
$3.60 - 6.45 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise prices, lower | 3.60 |
Range of exercise prices, upper | $ 6.45 |
Number options outstanding | shares | 366,763 |
Weighted-average remaining contract life, outstanding | 7 years 7 months 21 days |
Weighted-average exercise price, outstanding | $ 5.85 |
Number options outstanding and exercisable | shares | 269,863 |
Weighted-average remaining contract life, outstanding and exercisable | 7 years 4 months 28 days |
Weighted-average exercise price, outstanding and exercisable | $ 5.63 |
$6.45 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise prices, upper | $ 6.45 |
Number options non-vested | shares | 96,900 |
Weighted-average remaining contract life, non-vested | 8 years 3 months 4 days |
Weighted-average exercise price, non-vested | $ 6.45 |
Selected Quarterly Financial 64
Selected Quarterly Financial Data (Unaudited) (Narrative) (Details) | 3 Months Ended |
Apr. 30, 2017USD ($)$ / shares | |
Selected Quarterly Financial Data (Unaudited) [Abstract] | |
Insurance recovery expense | $ 230,000 |
Gain on insurance recovery | 277,000 |
Inventory adjustment | 780,000 |
Estimated contingent consideration | $ 247,000 |
Increase basic earnings per share | $ / shares | $ 0.21 |
Selected Quarterly Financial 65
Selected Quarterly Financial Data (Unaudited) (Summary Of Quarterly Financial Data) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||||
Apr. 30, 2017 | Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2017 | Apr. 30, 2016 | |||||
Selected Quarterly Financial Data (Unaudited) [Abstract] | ||||||||||||||
Net sales | $ 65,577,213 | $ 61,896,226 | $ 65,842,957 | $ 58,919,398 | $ 60,753,363 | $ 59,206,344 | $ 69,723,493 | $ 64,220,946 | $ 252,235,794 | $ 253,904,146 | ||||
Gross profit | 7,615,212 | [1] | 5,419,018 | [1] | 5,502,040 | [1] | 5,504,657 | [1] | 5,983,148 | 5,708,096 | 7,597,013 | 6,230,274 | 24,040,927 | 25,518,531 |
Income before income tax expense | 2,155,173 | [1],[2],[3] | 89,036 | [1],[2],[3] | 26,616 | [1],[2],[3] | 226,858 | [1],[2],[3] | 288,238 | 377,599 | 1,857,036 | 962,323 | 2,497,683 | 3,485,196 |
Net income (loss) | $ 1,258,166 | $ (47,852) | $ 33,295 | $ 146,597 | $ 48,827 | $ 218,728 | $ 1,156,298 | $ 658,806 | $ 1,390,206 | $ 2,082,659 | ||||
Earnings per share, Basic | $ 0.30 | $ (0.01) | $ 0.01 | $ 0.03 | $ 0.01 | $ 0.05 | $ 0.28 | $ 0.16 | $ 0.33 | $ 0.50 | ||||
Earnings per share, Diluted | $ 0.30 | $ (0.01) | $ 0.01 | $ 0.03 | $ 0.01 | $ 0.05 | $ 0.27 | $ 0.16 | $ 0.33 | $ 0.49 | ||||
Weighted average shares- Basic | 4,188,279 | 4,186,813 | 4,185,752 | 4,183,955 | 4,174,251 | 4,170,193 | 4,166,758 | 4,148,285 | 4,186,183 | 4,164,815 | ||||
Weighted average shares- Diluted | 4,209,516 | 4,215,962 | 4,225,874 | 4,214,535 | 4,208,184 | 4,229,378 | 4,214,317 | 4,193,657 | 4,213,592 | 4,224,030 | ||||
[1] | Due to a fire at one of the Company's plants during 2017, the Company recorded expense of approximately $230,000 in prior quarters in costs of goods sold that was realized as an insurance recovery during the fourth quarter of 2017 as recovery was considered probable. As part of this settlement, a gain of approximately $277,000 was also recorded in the fourth quarter of fiscal 2017 due to the insurance claim exceeding the net book value of the replacement machinery and equipment destroyed. | |||||||||||||
[2] | As discussed in Note G, during the fourth quarter of fiscal 2017 the Company recorded a change in estimate related to Contingent Consideration which increased income before income tax expense in the amount of approximately $247,000. | |||||||||||||
[3] | The Company records inventory reserves for valuation and shrinkage throughout the year based on historical data. In the fourth quarter of fiscal 2017 physical inventory results were completed and the Company adjusted the estimate which increased income before income tax expense by approximately $780,000. |
Litigation (Narrative) (Details
Litigation (Narrative) (Details) - Maria Gracia [Member] - USD ($) | Sep. 17, 2015 | Dec. 31, 2014 | Apr. 30, 2017 | Apr. 30, 2016 |
Loss Contingencies [Line Items] | ||||
Lawsuit filing date | October 25, 2011 | |||
Judicial Ruling [Member] | ||||
Loss Contingencies [Line Items] | ||||
Damages awarded | $ 307,000 | $ 436,124 | ||
Damages awarded, reduced | $ 300,000 | |||
Accrued amount for damages awarded | $ 375,000 | |||
Judicial Ruling [Member] | Equitable Relief [Member] | ||||
Loss Contingencies [Line Items] | ||||
Damages awarded | $ 74,478 |