Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Oct. 31, 2019 | Dec. 06, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Oct. 31, 2019 | |
Document Transition Report | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Entity File Number | 0-23248 | |
Entity Registrant Name | SIGMATRON INTERNATIONAL INC | |
Entity Incorporation State Country Code | DE | |
Entity Tax Identification Number | 36-3918470 | |
Entity Address Address Line 1 | 2201 Landmeier Road | |
Entity Address City Or Town | Elk Grove Village | |
Entity Address State Or Province | IL | |
Entity Address Postal Zip Code | 60007 | |
City Area Code | 847 | |
Local Phone Number | 956-8000 | |
Title of 12b Security | Common Stock $0.01 par value per share | |
Trading Symbol | sgma | |
Security Exchange Name | NASDAQ | |
Entity Central Index Key | 0000915358 | |
Current Fiscal Year End Date | --04-30 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 4,242,508 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Oct. 31, 2019 | Apr. 30, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 3,470,466 | $ 1,005,810 |
Accounts receivable, less allowance for doubtful accounts of $631,283 at October 31, 2019 and April 30, 2019 | 29,924,877 | 31,441,381 |
Inventories, net | 71,415,245 | 85,579,575 |
Prepaid expenses and other assets | 2,084,528 | 2,436,894 |
Refundable and prepaid income taxes | 1,119,312 | 1,339,739 |
Other receivables | 694,454 | 1,741,890 |
Total current assets | 108,708,882 | 123,545,289 |
Property, machinery and equipment, net | 32,018,795 | 33,232,769 |
Intangible assets, net | 2,531,610 | 2,713,360 |
Deferred income taxes | 384,021 | 384,022 |
Other assets | 8,015,582 | 1,589,325 |
Total other long-term assets | 10,931,213 | 4,686,707 |
Total assets | 151,658,890 | 161,464,765 |
Current liabilities: | ||
Trade accounts payable | 34,953,236 | 45,627,014 |
Accrued wages | 5,366,375 | 4,680,399 |
Accrued expenses | 2,639,235 | 2,410,311 |
Income taxes payable | 91,080 | 60,921 |
Current portion of long-term debt | 691,701 | 691,701 |
Current portion of finance lease obligations | 1,898,876 | 1,939,374 |
Current portion of operating lease obligations | 2,292,681 | |
Contingent consideration | 57,537 | |
Current portion of deferred rent | 139,509 | |
Total current liabilities | 47,933,184 | 55,606,766 |
Long-term debt, less current portion | 35,646,524 | 42,710,954 |
Income taxes payable | 452,619 | 500,263 |
Finance lease obligations, less current portion | 2,412,326 | 2,862,784 |
Operating lease obligations, less current portion | 4,494,767 | |
Deferred rent, less current portion | 179,059 | |
Other long-term liabilities | 1,227,254 | 1,155,907 |
Deferred income taxes | 182,564 | 161,583 |
Total long-term liabilities | 44,416,054 | 47,570,550 |
Total liabilities | 92,349,238 | 103,177,316 |
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, 4,242,508 and 4,240,008 shares issued and outstanding at October 31, 2019 and April 30, 2019, respectively | 42,146 | 42,146 |
Capital in excess of par value | 23,474,379 | 23,474,379 |
Retained earnings | 35,793,127 | 34,770,924 |
Total stockholders' equity | 59,309,652 | 58,287,449 |
Total liabilities and stockholders' equity | $ 151,658,890 | $ 161,464,765 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | Oct. 31, 2019 | Apr. 30, 2019 |
Condensed Consolidated Balance Sheets [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 631,283 | $ 631,283 |
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 | 4,242,508 | 4,240,008 |
Common stock, shares outstanding | 4,242,508 | 4,240,008 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Operations - USD ($) | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Condensed Consolidated Statements Of Operations [Abstract] | ||||
Net sales | $ 74,855,312 | $ 77,001,091 | $ 148,865,293 | $ 148,415,148 |
Cost of products sold | 67,725,826 | 70,307,006 | 134,775,475 | 135,932,007 |
Gross profit | 7,129,486 | 6,694,085 | 14,089,818 | 12,483,141 |
Selling and administrative expenses | 5,700,288 | 5,817,155 | 11,527,614 | 11,751,271 |
Operating income | 1,429,198 | 876,930 | 2,562,204 | 731,870 |
Other expense | (10,863) | (127,979) | (77,225) | (102,916) |
Interest expense | 462,772 | 602,858 | 1,054,000 | 1,156,348 |
Income (loss) before income tax expense | 977,289 | 402,051 | 1,585,429 | (321,562) |
Income tax expense | 316,106 | 1,125,992 | 563,221 | 928,986 |
Net income (loss) | $ 661,183 | $ (723,941) | $ 1,022,208 | $ (1,250,548) |
Earning (loss) per share - basic | $ 0.16 | $ (0.17) | $ 0.24 | $ (0.30) |
Earning (loss) per share - diluted | $ 0.15 | $ (0.17) | $ 0.24 | $ (0.30) |
Weighted average shares of common stock outstanding - Basic | 4,242,508 | 4,230,008 | 4,242,196 | 4,226,833 |
Weighted average shares of common stock outstanding - Diluted | 4,278,901 | 4,230,008 | 4,251,590 | 4,226,833 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements Of Changes In Stockholders' Equity - USD ($) | Preferred stock | Common stock | Capital in excess of par value | Retained earnings | Total |
Balance at Apr. 30, 2018 | $ 41,896 | $ 23,132,017 | $ 35,636,038 | $ 58,809,951 | |
Net income (loss) | (526,607) | (526,607) | |||
Balance at Jul. 31, 2018 | 41,896 | 23,132,017 | 35,109,431 | 58,283,344 | |
Balance at Apr. 30, 2018 | 41,896 | 23,132,017 | 35,636,038 | 58,809,951 | |
Net income (loss) | (1,250,548) | ||||
Balance at Oct. 31, 2018 | 42,042 | 23,248,171 | 34,385,490 | 57,675,703 | |
Balance at Jul. 31, 2018 | 41,896 | 23,132,017 | 35,109,431 | 58,283,344 | |
Restricted stock awards | 146 | 116,154 | 116,300 | ||
Net income (loss) | (723,941) | (723,941) | |||
Balance at Oct. 31, 2018 | 42,042 | 23,248,171 | 34,385,490 | 57,675,703 | |
Balance at Apr. 30, 2019 | 42,146 | 23,474,379 | 34,770,924 | 58,287,449 | |
Net income (loss) | 361,025 | 361,025 | |||
Balance at Jul. 31, 2019 | 42,146 | 23,474,379 | 35,131,944 | 58,648,469 | |
Balance at Apr. 30, 2019 | 42,146 | 23,474,379 | 34,770,924 | 58,287,449 | |
Net income (loss) | 1,022,208 | ||||
Balance at Oct. 31, 2019 | 42,146 | 23,474,379 | 35,793,127 | 59,309,652 | |
Cumulative-effect adjustment for the adoption of Topic 842 | (5) | (5) | |||
Balance at Jul. 31, 2019 | 42,146 | 23,474,379 | 35,131,944 | 58,648,469 | |
Net income (loss) | 661,183 | 661,183 | |||
Balance at Oct. 31, 2019 | $ 42,146 | $ 23,474,379 | $ 35,793,127 | $ 59,309,652 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements Of Cash Flows - USD ($) | 6 Months Ended | |
Oct. 31, 2019 | Oct. 31, 2018 | |
Cash flows from operating activities | ||
Net income (loss) | $ 1,022,208 | $ (1,250,548) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 2,456,156 | 2,515,042 |
Amortization of right-of-use operating leased assets | 1,080,505 | |
Restricted stock expense | 116,300 | |
Deferred income tax expense | 20,982 | 597,134 |
Amortization of intangible assets | 181,750 | 187,645 |
Amortization of financing fees | 55,498 | 42,604 |
Fair value adjustment of contingent consideration | 34,621 | |
Loss from disposal or sale of machinery and equipment | 17,598 | 2,845 |
Changes in operating assets and liabilities | ||
Accounts receivable | 1,516,504 | (7,310,364) |
Inventories | 14,164,330 | (2,472,799) |
Prepaid expenses and other assets | (43,197) | (201,372) |
Refundable and prepaid income taxes | 220,427 | 56,027 |
Income taxes payable | (17,485) | 18,115 |
Trade accounts payable | (10,673,778) | 3,334,880 |
Deferred rent | (136,484) | |
Operating lease liabilities | 459,112 | |
Accrued expenses and wages | 932,247 | 577,251 |
Net cash provided by (used in) operating activities | 11,392,857 | (3,889,103) |
Cash flows from investing activities | ||
Purchases of machinery and equipment | (588,334) | (1,528,211) |
Net cash used in investing activities | (588,334) | (1,528,211) |
Cash flows from financing activities | ||
Proceeds under equipment note | 182,557 | |
Payments of contingent consideration | (57,537) | (55,075) |
Payments under finance lease and sale leaseback agreements | (1,162,402) | (1,246,334) |
Payments under equipment notes | (205,850) | (196,723) |
Payments under building notes payable | (140,000) | (140,000) |
Borrowings under revolving line of credit | 170,235,836 | 172,159,933 |
Payments under revolving line of credit | (176,963,048) | (165,255,327) |
Payments of debt financing costs | (46,866) | (24,197) |
Net cash (used in) provided by financing activities | (8,339,867) | 5,424,834 |
Change in cash and cash equivalents | 2,464,656 | 7,520 |
Cash and cash equivalents at beginning of period | 1,005,810 | 1,721,599 |
Cash and cash equivalents at end of period | 3,470,466 | 1,729,119 |
Supplementary disclosures of cash flow information | ||
Cash paid for interest | 1,053,706 | 1,087,181 |
Cash paid for income taxes | 391,949 | 274,476 |
Purchase of machinery and equipment financed under finance leases | 671,446 | 131,232 |
Financing of insurance policy | $ 54,000 | $ 30,000 |
Description Of The Business
Description Of The Business | 6 Months Ended |
Oct. 31, 2019 | |
Description Of The Business [Abstract] | |
Description Of The Business | Note A - Description 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. |
Basis Of Presentation
Basis Of Presentation | 6 Months Ended |
Oct. 31, 2019 | |
Basis Of Presentation [Abstract] | |
Basis Of Presentation | Note B - Basis of Presentation The accompanying unaudited condensed consolidated financial statements of SigmaTron International, Inc. (“SigmaTron”), SigmaTron’s 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 wholly-owned foreign enterprises Wujiang SigmaTron Electronics Co., Ltd. and SigmaTron Electronic Technology Co., Ltd. (“SigmaTron China”) and international procurement office SigmaTron Taiwan branch (collectively, the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the condensed consolidated financial statements do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three and six month period ended October 31, 2019 is not necessarily indicative of the results that may be expected for the year ending April 30, 2020. The condensed consolidated balance sheet at April 30, 2019, was derived from audited annual financial statements but does not contain all of the footnotes disclosures from the annual financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended April 30, 2019. |
Inventories, Net
Inventories, Net | 6 Months Ended |
Oct. 31, 2019 | |
Inventories, Net [Abstract] | |
Inventories, Net | Note C - Inventories, net The components of inventory consist of the following: October 31, April 30, 2019 2019 Finished products $ 22,624,437 $ 20,682,669 Work-in-process 4,365,499 3,037,810 Raw materials 45,572,214 63,203,068 72,562,150 86,923,547 Less excess and obsolescence reserve (1,146,905) (1,343,972) $ 71,415,245 $ 85,579,575 |
Earnings Per Share And Stockhol
Earnings Per Share And Stockholders' Equity | 6 Months Ended |
Oct. 31, 2019 | |
Earnings Per Share And Stockholders' Equity [Abstract] | |
Earnings Per Share And Stockholders' Equity | Note D - Earnings Per Share and Stockholders’ Equity The following table sets forth the computation of basic and diluted earnings (loss) per share: Three Months Ended Six Months Ended October 31, October 31, 2019 2018 2019 2018 Net income (loss) $ 661,183 $ (723,941) $ 1,022,208 $ (1,250,548) Weighted-average shares Basic 4,242,508 4,230,008 4,242,196 4,226,833 Effect of dilutive stock options 36,393 - 9,394 - Diluted 4,278,901 4,230,008 4,251,590 4,226,833 Basic earnings (loss) per share $ 0.16 $ (0.17) $ 0.24 $ (0.30) Diluted earnings (loss) per share $ 0.15 $ (0.17) $ 0.24 $ (0.30) Options to purchase 465,232 and 347,318 shares of common stock were outstanding at October 31, 2019 and 2018, respectively. There were no options granted during the six month periods ended October 31, 2019 and 2018. There was no stock option expense recognized for the three and six month periods ended October 31, 2019 and 2018. There was no balance of unrecognized compensation expense related to the Company’s stock option plans at October 31, 2019 and 2018. For the three month period s ended October 31, 2019 and 2018, 147,706 and 24,459 shares, respectively, were not included in the diluted weighted average common shares outstanding calculation as they were anti-dilutive. For the six month period s ended October 31, 2019 and 2018, 241,465 and 29,080 shares, respectively, were not included in the diluted weighted average common shares outstanding calculation as they were anti-dilutive. |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Oct. 31, 2019 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | Note E - Long-term Debt Debt and capital lease obligations consisted of the following at October 31, 2019 and April 30, 2019: October 31, April 30, 2019 2019 Debt: Notes Payable - Banks $ 29,000,000 $ 35,727,212 Notes Payable - Buildings 6,510,000 6,650,000 Notes Payable - Equipment 1,122,903 1,328,753 Unamortized deferred financing costs (294,678) (303,310) Total debt 36,338,225 43,402,655 Less current maturities 691,701 691,701 Long-term debt $ 35,646,524 $ 42,710,954 Finance lease and sale leaseback obligations $ 4,311,202 $ 4,802,158 Less current maturities 1,898,876 1,939,374 Total finance lease obligations, less current portion $ 2,412,326 $ 2,862,784 Notes Payable – Banks On March 31, 2017, the Company entered into a $35,000,000 senior secured credit facility with U.S. Bank, 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 five percent or LIBOR plus one and one half percent (effectively 3.44% at October 31, 2019). Interest is due monthly. On July 16, 2018, the Company and U.S. Bank entered into an amendment of the revolving line of credit under the senior secured credit facility. The amended revolving credit facility allows the Company to borrow up to the lesser of (i) $45,000,000 (the “Revolving Line Cap”) less reserves or (ii) the Borrowing Base, but no more than 90% of the Company’s Revolving Line Cap, except that the 90% limitation will expire if (i) the Company’s actual revolving loans for 90 consecutive days after the amendment’s effective date are less than 80% of the Company’s Borrowing Base and (ii) the Company maintains a Fixed Charge Coverage Ratio of 1.2 to 1.0 for four consecutive quarters. The amendment also imposes sublimits on categories of inventory equal to $10,500,000 on raw materials, $10,000,000 on finished goods and $28,000,000 on all eligible inventory. On December 13, 2018, the Company and U.S. Bank entered into an amendment of the revolving credit facility. The amendment provides an exception to otherwise ineligible foreign receivables for up to $3,000,000 of receivables paid by certain enumerated account debtors outside of the U.S. and Canada. Note E - Long-term Debt - Continued On August 26, 2019, the Company and U.S. Bank entered into an amendment of the revolving credit facility. The amendment allows the Company to borrow up to the lesser of (i) the Revolving Line Cap less reserves or (ii) the Borrowing Base, but no more than 95% of the Company’s Revolving Line Cap until February 26, 2020 and 90% on and after February 26, 2020. As of October 31, 2019, there was $29,000,000 outstanding and $11,544,524 of unused availability under the U.S. Bank facility compared to an outstanding balance of $35,727,212 and $6,645,730 of unused availability at April 30, 2019. At October 31, 2019, the Company was in compliance with its financial covenant and other restrictive covenants under the credit facility. Deferred financing costs of $40,907 and $46,866 were capitalized during the three and six month periods ended October 31, 2019, respectively, which are amortized over the term of the agreement. As of October 31, 2019 and April 30, 2019, the unamortized amount offset against outstanding debt was $216,869 and $209,162 , respectively. On March 15, 2019, 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 5,000,000 Renminbi, approximately $709,000 as of October 31, 2019, and the facility is collateralized by Wujiang SigmaTron Electronic 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 March 14, 2024 . There was no outstanding balance under the facility at October 31, 2019 and April 30, 2019. The Company is in compliance with its financial covenant and other restrictive covenants and anticipates that its credit facilities, expected future cash flows from operations and leasing resources are adequate to meet its working capital requirements, and fund capital expenditures for the next 12 months. In addition, if customers delay orders, future payments are not made timely, the Company desires to expand its operations, its business grows more rapidly than expected, or the current economic climate deteriorates, additional financing resources may be necessary. There is no assurance that the Company will be able to obtain equity or debt financing at acceptable terms, or at all, in the future. There is no assurance that the Company will be able to retain or renew its credit agreements in the future, or that any retention or renewal will be on the same terms as currently exist. Notes Payable – Buildings The Company entered into a mortgage agreement on December 21, 2017, in the amount of $5,200,000 , with U.S. Bank to refinance the property that serves as the Company’s corporate headquarters and its Illinois manufacturing facility in Elk Grove Village, Illinois. The note requires the Company to pay monthly principal payments in the amount of $17,333 , bears interest at a fixed rate of 4.0% per year and is payable over a fifty-one month period. Deferred financing costs of $74,066 were capitalized in fiscal year 2018 which are amortized over the term of the agreement. As Note E - Long-term Debt - Continued of October 31, 2019 and April 30, 2019, the unamortized amount included as a reduction to long-term debt was $41,347 and $50,142 , respectively. A final payment of approximately $4,347,778 is due on or before March 31, 2022 . The outstanding balance was $4,836,000 and $4,940,000 at October, 31 2019 and April 30, 2019, respectively. The Company entered into a mortgage agreement on December 21, 2017, in the amount of $1,800,000 , with U.S. Bank to refinance the property that serves as the Company’s engineering and design center in Elgin, Illinois. The note requires the Company to pay monthly principal payments in the amount of $6,000 , bears interest at a fixed rate of 4.0% per year and is payable over a fifty-one month period. Deferred financing costs of $65,381 were capitalized in the fiscal year 2018 which are amortized over the term of the agreement. As of October 31, 2019 and April 30, 2019, the unamortized amount included as a reduction to long-term debt was $36,462 and $44,006 , respectively. A final payment of approximately $1,505,000 is due on or before March 31, 2022 . The outstanding balance was $1,674,000 and $1,710,000 at October, 31 2019 and April 30, 2019, respectively. Notes Payable – Equipment The Company routinely enters into secured note agreements with Engencap Fin S.A. DE C.V. to finance the purchase of equipment. The terms of these secured note agreements extend to November 2021 through May 2023 , with quarterly installment payments ranging from $11,045 to $37,941 and a t fixed interest rate s ranging from 6.65% to 8.00% . Annual maturities of the Company’s debt, net of deferred financing fees for the remaining periods as of October 31, 2019, are as follows: Bank Building Equipment Total For the remaining 6 months of the fiscal year ending April 30: 2020 $ - $ 140,000 $ 205,851 $ 345,851 For the fiscal years ending April 30: 2021 - 280,000 411,701 691,701 2022 28,783,131 6,012,191 381,852 35,177,174 2023 - - 114,372 114,372 2024 - - 9,127 9,127 $ 28,783,131 $ 6,432,191 $ 1,122,903 $ 36,338,225 Note E - Long-term Debt - Continued Finance Lease and Sales Leaseback Obligations The Company enters into various finance lease and sales leaseback agreements. The terms of the lease agreements mature through May 2023 , with monthly installment payments ranging from $1,455 to $40,173 and a fixed interest rate ranging from 3.75% to 9.40% . |
Income Tax
Income Tax | 6 Months Ended |
Oct. 31, 2019 | |
Income Tax [Abstract] | |
Income Tax | Note F - Income Tax The income tax expense was $316,106 for the three month period ended October 31, 2019 compared to an income tax expense of $1,125,992 for the same period in the prior fiscal year. The Company’s effective tax rate was 32.35% and 280.06% for the three month period ended October 31, 2019 and 2018, respectively. The income tax expense was $563,221 for the six month period ended October 31, 2019 compared to an income tax expense of $928,986 for the same period in the prior fiscal year. The Company’s effective tax rate was 35.52% and (288.9)% for the six month period ended October 31, 2019 and 2018, respectively. The decrease in income tax expense for both the three month and six month period s ended October 31, 2019 and the decrease in the effective tax rate for the three month period ended October 31, 2019 compared to the same periods in the previous year is due primarily to a discrete income tax expense of $457,011 in the prior year as the result of a valuation allowance established on certain foreign net operating loss carryforwards. The increase in effective tax rate for the six month period in the current year compared to the same period in the previous year is due primarily to an overall loss that was recognized in the prior year compared to income recognized in the current year. |
Commitments And Contingencies
Commitments And Contingencies | 6 Months Ended |
Oct. 31, 2019 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | Note G - Commitments and Contingencies From time to time the Company is involved in legal proceedings, claims or investigations that are incidental to the conduct of 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 that these legal proceedings or claims will have any material adverse impact on its future consolidated financial position, results of operations or cash flows. |
Critical Accounting Policies
Critical Accounting Policies | 6 Months Ended |
Oct. 31, 2019 | |
Critical Accounting Policies [Abstract] | |
Critical Accounting Policies | Note H - Critical Accounting Policies Management Estimates and Uncertainties - 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, contingent consideration, deferred taxes, uncertain tax positions, valuation allowance for deferred taxes and valuation of long-lived assets. Actual results could materially differ from these estimates. Revenue Recognition - The following table presents the Company’s revenue disaggregated by the principal end-user markets it serves: Three Months Ended Six Months Ended October 31, October 31, Net trade sales by end-market 2019 2018 2019 2018 Industrial Electronics 41,398,201 41,583,723 84,246,913 79,718,825 Consumer Electronics 28,815,556 31,490,883 55,474,743 60,691,796 Medical / Life Sciences 4,641,555 3,926,485 9,143,637 8,004,527 Total Net Trade Sales 74,855,312 77,001,091 148,865,293 148,415,148 During the three and six month periods ending October 31, 2019, no revenues were recognized from performance obligations satisfied or partially satisfied in previous periods and no amounts were allocated to performance obligations that remain unsatisfied or partially unsatisfied at October 31, 2019. The Company is electing not to disclose the value of the remaining unsatisfied performance obligation with a duration of one year or less as permitted by the practical expedient in ASU 2014-09, “ Revenue from Contracts with Customers.” The Company had no material remaining unsatisfied performance obligations as of October 31, 2019, with an expected duration of greater than one year. Income Tax - 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 Note H - Critical Accounting Policies - Continued 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 Company’s valuation allowance was $1,372,643 and $1,294,605 as of October 31, 2019 and April 30, 2019, respectively. Revisions - Previously reported cash flows from financing activities for the six month period ended October 31, 2018 have been revised to reflect the classification of payments and borrowings under the Company’s revolving line of credit presented in the condensed consolidated statement of cash flows. The revision had no impact on total cash flows from financing activities, net loss or net loss per share, or the condensed consolidated balance sheets or statements of operations or stockholders’ equity. See Note B, “Summary of Significant Accounting Policies” in the Company’s 2019 10-K for additional information on these revisions. New Accounting Standards: In February 2016, the FASB issued ASU 2016-02, as amended, Leases (Topic 842), which requires a lessee to record a right-of-use asset and a lease liability for all leases with a term greater than twelve months regardless of whether the lease is classified as an operating lease or a financing lease. Effective May 1, 2019, the Company adopted the new standard under the modified retrospective approach, applying the current-period adjustment method. Under the transition guidance of the modified retrospective approach there are a number of optional practical expedients made available to simplify the transition of the new standard. The Company has elected the following: · The condensed consolidated balance sheets for reporting periods beginning on or after May 1, 2019 are presented under the new guidance, while prior period amounts are not adjusted and continue to be reported in accordance with ASC Topic 840, Leases . The Company recognized a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption of $5. · The Company has elected to utilize the package of practical expedients permitted under the transition guidance in the standard, which allowed the Company to not reassess (i) whether any expired or existing contracts contain leases, (ii) historical lease classification, and (iii) initial direct costs. · The Company has elected to combine lease and non-lease components as a single component for all asset classes. · The Company has elected to not assess whether existing or expired land easements that were not previously accounted for as leases under Topic 840 are or contain a lease under this Topic. · The Company has elected to keep leases with an initial term of 12 months or less off of the balance sheet. Note H - Critical Accounting Policies - Continued Upon adoption, the Company recorded Right-of-use ("ROU") assets and lease liabilities relating to operating leases of $6,017,771 and $6,290,289 , respectively. The changes did not have a material impact on our results of operations or cash flows. The discount rates used to calculate the ROU assets and lease liabilities as of the effective date were based on the remaining lease terms as of the effective date. See Note J - Leases, for the impact on the financial statements and related disclosures from the adoption of this standard. 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, as amended by ASU 2019-04 and ASU 2019-05, 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 small reporting companies , ASU 2016-13 is effective for annual and interim reporting periods beginning after December 15, 20 22 , 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. |
Related Parties
Related Parties | 6 Months Ended |
Oct. 31, 2019 | |
Related Parties [Abstract] | |
Related Parties | Note I - Related Parties In March, 2015, two of the Company’s executive officers invested in a start-up customer, Petzila, Inc. (“Petzila”). The executive officers’ investments constituted less than 2% (individually and in aggregate) of the outstanding beneficial ownership of Petzila, according to information provided by Petzila to the executive officers. On April 30, 2018, the Company foreclosed on its security interest and held a public sale of the assets in accordance with the requirements of Article 9 of the California Uniform Commercial Code. The Company acquired all of the assets of Petzila as the winning bidder at the public sale by a credit bid of $3,500,000 , the aggregate amount of Petzila’s liability to the company. Concurrent with the foreclosure sale, the Company entered into an Asset Purchase Agreement with Wagz, Inc. (“Wagz”), an “ unrelated party,” whereby the Company sold the assets to Wagz for $350,000 cash, 600,000 shares of Wagz common stock and an earn-out based on sales by Wagz generated from use of the assets through July 31, 2022 . The earn-out is $6.00 per unit of a product specified in the asset purchase agreement and any upgrade to such product. The fair value of the non-cash consideration consisted of $600,000 for the 600,000 shares of Wagz common stock which is recorded within other assets. The Company determined the fair value of the equity using the price per common share received by Wagz in a recent financing transaction, a level 3 input. As of April 30, 2019 and October 31, 2019, t he Company did not assign any value to the earn-out because any receipts from the earn-out are highly uncertain and contingent upon Wagz selling the product specified in the asset purchase agreement between the Company and Wagz. |
Leases
Leases | 6 Months Ended |
Oct. 31, 2019 | |
Leases [Abstract] | |
Leases | Note J - Leases The Company leases office and storage space, vehicles and other equipment under non-cancellable operating leases with initial terms typically ranging from 1 to 5 years. At contract inception, the Company reviews the facts and circumstances of the arrangement to determine if the contract is or contains a lease. The Company follows the guidance in Topic 842 to evaluate whether the contract has an identified asset; if the Company has the right to obtain substantially all economic benefits from the asset; and if the Company has the right to direct the use of the underlying asset. When determining if a contract has an identified asset, the Company considers both explicit and implicit assets, and whether the supplier has the right to substitute the asset. When determining if the Company has the right to direct the use of an underlying asset, the Company considers if they have the right to direct how and for what purpose the asset is used throughout the period of use and if they control the decision-making rights over the asset. The Company’s lease terms may include options to extend or terminate the lease. The Company exercises judgment to determine the term of those leases when extension or termination options are present and include such options in the calculation of the lease term when it is reasonably certain that it will exercise those options. The Company has elected to include both lease and non-lease components in the determination of lease payments. Payments made to a lessor for items such as taxes, insurance, common area maintenance, or other costs commonly referred to as executory costs, are also included in lease payments if they are fixed. The fixed portion of these payments are included in the calculation of the lease liability, while any variable portion would be recognized as variable lease expenses, when incurred. Variable payments made to third parties for these, or similar costs, such as utilities, are not included in the calculation of lease payments. At commencement, lease-related assets and liabilities are measured at the present value of future lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company exercises judgment in determining the incremental borrowing rate based on the information available at when the lease commences to measure the present value of future payments. Operating lease expense is recognized on a straight-line basis over the lease term. Finance lease cost includes amortization, which is recognized on a straight-line basis over the expected life of the leased asset, and interest expense, which is recognized following an effective interest rate method. Operating leases are included in other assets, current operating lease obligations, and operating lease obligations (less current portion) on the Company’s consolidated balance sheet. Finance leases are included in property, plant and equipment and current and long-term portion of finance lease obligations on the Company’s consolidated balance sheet. Short term leases with an initial term of 12 months or less are not presented on the balance sheet with expense recognized as incurred. Note J - Leases - Continued The following table presents lease assets and liabilities and their balance sheet classification: October 31, Classification 2019 Operating Leases: Right-of-use Assets Other assets $ 6,567,272 Operating lease current liabilities Current portion of operating lease obligations 2,292,681 Operating lease noncurrent liabilities Operating lease obligations, less current portion 4,494,767 Finance Leases: Right-of-use Assets Property, plant and equipment 10,793,496 Finance lease current liabilities Current portion of finance lease obligations 1,898,876 Finance lease noncurrent liabilities Finance lease obligations, less current portion 2,412,326 The components of lease expense for the three and six month periods ended October 31, 2019, are as follows: Three Months Six Months Ended Ended October 31, October 31, Classification 2019 2019 Operating Leases: Operating lease cost Operating expenses 625,339 1,219,833 Variable lease cost Operating expenses 73,897 147,794 Short term lease cost Operating expenses 1,350 2,700 Finance Leases: Amortization of right-of-use assets Operating expenses 384,192 731,567 Interest expense Interest expense 74,340 142,126 Total 1,159,118 2,244,020 The weighted average lease term and discount rates are as follows: October 31, 2019 Operating Leases: Weighted average remaining lease term (months) 44.20 Weighted average discount rate 3.9% Finance Leases: Weighted average remaining lease term (months) 29.02 Weighted average discount rate 6.5% Note J - Leases - Continued Future payments due under leases reconciled to lease liabilities are as follows: Finance Leases Operating Leases For the remaining 6 months of the fiscal year ending April 30: 2020 $ 1,054,294 $ 1,272,315 For the fiscal years ending April 30: 2021 1,989,548 2,296,475 2022 1,245,999 1,351,584 2023 369,677 1,202,416 2024 39,334 775,638 Thereafter - 254,121 Total undiscounted lease payments 4,698,852 7,152,549 Present value discount, less interest 387,650 365,101 Lease liability $ 4,311,202 $ 6,787,448 Supplemental disclosures of cash flow information related to leases are as follows: Six Months Ended October 31, Other Information 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from finance leases 142,126 Operating cash flows from operating leases 126,363 Financing cash flows from finance leases 1,162,403 Supplemental non-cash information on lease labilities arising from obtaining right-of-use assets: Right-of-use assets obtained in exchange for new finance lease liabilities 671,446 Right-of-use assets obtained in exchange for operating lease liabilities 1,630,006 |
Critical Accounting Policies (P
Critical Accounting Policies (Policy) | 6 Months Ended |
Oct. 31, 2019 | |
Critical Accounting Policies [Abstract] | |
Management Estimates And Uncertainties | Management Estimates and Uncertainties - 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, contingent consideration, deferred taxes, uncertain tax positions, valuation allowance for deferred taxes and valuation of long-lived assets. Actual results could materially differ from these estimates. |
Revenue Recognition | Revenue Recognition - The following table presents the Company’s revenue disaggregated by the principal end-user markets it serves: Three Months Ended Six Months Ended October 31, October 31, Net trade sales by end-market 2019 2018 2019 2018 Industrial Electronics 41,398,201 41,583,723 84,246,913 79,718,825 Consumer Electronics 28,815,556 31,490,883 55,474,743 60,691,796 Medical / Life Sciences 4,641,555 3,926,485 9,143,637 8,004,527 Total Net Trade Sales 74,855,312 77,001,091 148,865,293 148,415,148 During the three and six month periods ending October 31, 2019, no revenues were recognized from performance obligations satisfied or partially satisfied in previous periods and no amounts were allocated to performance obligations that remain unsatisfied or partially unsatisfied at October 31, 2019. The Company is electing not to disclose the value of the remaining unsatisfied performance obligation with a duration of one year or less as permitted by the practical expedient in ASU 2014-09, “ Revenue from Contracts with Customers.” The Company had no material remaining unsatisfied performance obligations as of October 31, 2019, with an expected duration of greater than one year. |
Income Tax | Income Tax - 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 Note H - Critical Accounting Policies - Continued 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 Company’s valuation allowance was $1,372,643 and $1,294,605 as of October 31, 2019 and April 30, 2019, respectively. |
Revisions | Revisions - Previously reported cash flows from financing activities for the six month period ended October 31, 2018 have been revised to reflect the classification of payments and borrowings under the Company’s revolving line of credit presented in the condensed consolidated statement of cash flows. The revision had no impact on total cash flows from financing activities, net loss or net loss per share, or the condensed consolidated balance sheets or statements of operations or stockholders’ equity. See Note B, “Summary of Significant Accounting Policies” in the Company’s 2019 10-K for additional information on these revisions. |
New Accounting Standards | New Accounting Standards: In February 2016, the FASB issued ASU 2016-02, as amended, Leases (Topic 842), which requires a lessee to record a right-of-use asset and a lease liability for all leases with a term greater than twelve months regardless of whether the lease is classified as an operating lease or a financing lease. Effective May 1, 2019, the Company adopted the new standard under the modified retrospective approach, applying the current-period adjustment method. Under the transition guidance of the modified retrospective approach there are a number of optional practical expedients made available to simplify the transition of the new standard. The Company has elected the following: · The condensed consolidated balance sheets for reporting periods beginning on or after May 1, 2019 are presented under the new guidance, while prior period amounts are not adjusted and continue to be reported in accordance with ASC Topic 840, Leases . The Company recognized a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption of $5. · The Company has elected to utilize the package of practical expedients permitted under the transition guidance in the standard, which allowed the Company to not reassess (i) whether any expired or existing contracts contain leases, (ii) historical lease classification, and (iii) initial direct costs. · The Company has elected to combine lease and non-lease components as a single component for all asset classes. · The Company has elected to not assess whether existing or expired land easements that were not previously accounted for as leases under Topic 840 are or contain a lease under this Topic. · The Company has elected to keep leases with an initial term of 12 months or less off of the balance sheet. Note H - Critical Accounting Policies - Continued Upon adoption, the Company recorded Right-of-use ("ROU") assets and lease liabilities relating to operating leases of $6,017,771 and $6,290,289 , respectively. The changes did not have a material impact on our results of operations or cash flows. The discount rates used to calculate the ROU assets and lease liabilities as of the effective date were based on the remaining lease terms as of the effective date. See Note J - Leases, for the impact on the financial statements and related disclosures from the adoption of this standard. 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, as amended by ASU 2019-04 and ASU 2019-05, 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 small reporting companies , ASU 2016-13 is effective for annual and interim reporting periods beginning after December 15, 20 22 , 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. |
Inventories, Net (Tables)
Inventories, Net (Tables) | 6 Months Ended |
Oct. 31, 2019 | |
Inventories, Net [Abstract] | |
Components Of Inventory | October 31, April 30, 2019 2019 Finished products $ 22,624,437 $ 20,682,669 Work-in-process 4,365,499 3,037,810 Raw materials 45,572,214 63,203,068 72,562,150 86,923,547 Less excess and obsolescence reserve (1,146,905) (1,343,972) $ 71,415,245 $ 85,579,575 |
Earnings Per Share And Stockh_2
Earnings Per Share And Stockholders' Equity (Tables) | 6 Months Ended |
Oct. 31, 2019 | |
Earnings Per Share And Stockholders' Equity [Abstract] | |
Computation Of Basic And Diluted Earnings (Loss) Per Share | Three Months Ended Six Months Ended October 31, October 31, 2019 2018 2019 2018 Net income (loss) $ 661,183 $ (723,941) $ 1,022,208 $ (1,250,548) Weighted-average shares Basic 4,242,508 4,230,008 4,242,196 4,226,833 Effect of dilutive stock options 36,393 - 9,394 - Diluted 4,278,901 4,230,008 4,251,590 4,226,833 Basic earnings (loss) per share $ 0.16 $ (0.17) $ 0.24 $ (0.30) Diluted earnings (loss) per share $ 0.15 $ (0.17) $ 0.24 $ (0.30) |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Oct. 31, 2019 | |
Long-Term Debt [Abstract] | |
Schedule of Debt and Capital Lease Obligations | October 31, April 30, 2019 2019 Debt: Notes Payable - Banks $ 29,000,000 $ 35,727,212 Notes Payable - Buildings 6,510,000 6,650,000 Notes Payable - Equipment 1,122,903 1,328,753 Unamortized deferred financing costs (294,678) (303,310) Total debt 36,338,225 43,402,655 Less current maturities 691,701 691,701 Long-term debt $ 35,646,524 $ 42,710,954 Finance lease and sale leaseback obligations $ 4,311,202 $ 4,802,158 Less current maturities 1,898,876 1,939,374 Total finance lease obligations, less current portion $ 2,412,326 $ 2,862,784 |
Aggregate Amount of Debt, Net Deferred Financing Fees | Bank Building Equipment Total For the remaining 6 months of the fiscal year ending April 30: 2020 $ - $ 140,000 $ 205,851 $ 345,851 For the fiscal years ending April 30: 2021 - 280,000 411,701 691,701 2022 28,783,131 6,012,191 381,852 35,177,174 2023 - - 114,372 114,372 2024 - - 9,127 9,127 $ 28,783,131 $ 6,432,191 $ 1,122,903 $ 36,338,225 |
Critical Accounting Policies (T
Critical Accounting Policies (Tables) | 6 Months Ended |
Oct. 31, 2019 | |
Critical Accounting Policies [Abstract] | |
Revenue Disaggregated By Principal End-User Markets | Three Months Ended Six Months Ended October 31, October 31, Net trade sales by end-market 2019 2018 2019 2018 Industrial Electronics 41,398,201 41,583,723 84,246,913 79,718,825 Consumer Electronics 28,815,556 31,490,883 55,474,743 60,691,796 Medical / Life Sciences 4,641,555 3,926,485 9,143,637 8,004,527 Total Net Trade Sales 74,855,312 77,001,091 148,865,293 148,415,148 |
Lease (Tables)
Lease (Tables) | 6 Months Ended |
Oct. 31, 2019 | |
Leases [Abstract] | |
Lease Assets And Liabilities Related To Balance Sheet Classification | October 31, Classification 2019 Operating Leases: Right-of-use Assets Other assets $ 6,567,272 Operating lease current liabilities Current portion of operating lease obligations 2,292,681 Operating lease noncurrent liabilities Operating lease obligations, less current portion 4,494,767 Finance Leases: Right-of-use Assets Property, plant and equipment 10,793,496 Finance lease current liabilities Current portion of finance lease obligations 1,898,876 Finance lease noncurrent liabilities Finance lease obligations, less current portion 2,412,326 |
Components Of Lease Expense | Three Months Six Months Ended Ended October 31, October 31, Classification 2019 2019 Operating Leases: Operating lease cost Operating expenses 625,339 1,219,833 Variable lease cost Operating expenses 73,897 147,794 Short term lease cost Operating expenses 1,350 2,700 Finance Leases: Amortization of right-of-use assets Operating expenses 384,192 731,567 Interest expense Interest expense 74,340 142,126 Total 1,159,118 2,244,020 |
Weighted Average Lease Term And Discount Rate | October 31, 2019 Operating Leases: Weighted average remaining lease term (months) 44.20 Weighted average discount rate 3.9% Finance Leases: Weighted average remaining lease term (months) 29.02 Weighted average discount rate 6.5% |
Future Payments Due Under Finance And Operating Leases | Finance Leases Operating Leases For the remaining 6 months of the fiscal year ending April 30: 2020 $ 1,054,294 $ 1,272,315 For the fiscal years ending April 30: 2021 1,989,548 2,296,475 2022 1,245,999 1,351,584 2023 369,677 1,202,416 2024 39,334 775,638 Thereafter - 254,121 Total undiscounted lease payments 4,698,852 7,152,549 Present value discount, less interest 387,650 365,101 Lease liability $ 4,311,202 $ 6,787,448 |
Supplemental Cash Flow Information Related To Leases | Six Months Ended October 31, Other Information 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from finance leases 142,126 Operating cash flows from operating leases 126,363 Financing cash flows from finance leases 1,162,403 Supplemental non-cash information on lease labilities arising from obtaining right-of-use assets: Right-of-use assets obtained in exchange for new finance lease liabilities 671,446 Right-of-use assets obtained in exchange for operating lease liabilities 1,630,006 |
Description Of The Business (Na
Description Of The Business (Narrative) (Details) | 6 Months Ended |
Oct. 31, 2019segment | |
Description Of Business [Abstract] | |
Number of business segments as an independent provider of electronic manufacturing services | 1 |
Inventories, Net (Components Of
Inventories, Net (Components Of Inventory) (Details) - USD ($) | Oct. 31, 2019 | Apr. 30, 2019 |
Inventories, Net [Abstract] | ||
Finished products | $ 22,624,437 | $ 20,682,669 |
Work-in-process | 4,365,499 | 3,037,810 |
Raw materials | 45,572,214 | 63,203,068 |
Total inventory, gross | 72,562,150 | 86,923,547 |
Less excess and obsolescence reserve | (1,146,905) | (1,343,972) |
Total inventory, net | $ 71,415,245 | $ 85,579,575 |
Earnings Per Share And Stockh_3
Earnings Per Share And Stockholders' Equity (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Earnings Per Share And Stockholders' Equity [Abstract] | ||||
Common stock shares were outstanding | 465,232 | 347,318 | 465,232 | 347,318 |
Options granted | 0 | 0 | ||
Stock option expense | $ 0 | $ 0 | $ 0 | $ 0 |
Balance of unrecognized compensation expense related to stock options plans | $ 0 | $ 0 | $ 0 | 0 |
Restricted stock expense | $ 116,300 | |||
Anti-dilutive common stock outstanding excluded from the calculation of diluted earnings per share | 147,706 | 24,459 | 241,465 | 29,080 |
Earnings Per Share And Stockh_4
Earnings Per Share And Stockholders' Equity (Computation Of Basic And Diluted Earnings (Loss) Per Share) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Oct. 31, 2019 | Jul. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Earnings Per Share And Stockholders' Equity [Abstract] | ||||||
Net income (loss) | $ 661,183 | $ 361,025 | $ (723,941) | $ (526,607) | $ 1,022,208 | $ (1,250,548) |
Weighted-average shares, Basic | 4,242,508 | 4,230,008 | 4,242,196 | 4,226,833 | ||
Weighted-average shares, Effect of dilutive stock options | 36,393 | 9,394 | ||||
Weighted-average shares, Diluted | 4,278,901 | 4,230,008 | 4,251,590 | 4,226,833 | ||
Basic loss per share | $ 0.16 | $ (0.17) | $ 0.24 | $ (0.30) | ||
Diluted loss per share | $ 0.15 | $ (0.17) | $ 0.24 | $ (0.30) |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) | Aug. 26, 2019 | Jul. 16, 2018USD ($) | Dec. 21, 2017USD ($) | Jul. 16, 2017 | Mar. 31, 2017USD ($) | Mar. 31, 2017USD ($) | Oct. 31, 2019USD ($) | Oct. 31, 2019USD ($) | Apr. 30, 2019USD ($) | Mar. 15, 2019CNY (¥) | Dec. 13, 2018USD ($) | Apr. 30, 2018USD ($) |
U.S. Bank [Member] | Notes Payable - Buildings [Member] | Corporate Headquarters And Manufacturing Facility [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Deferred financing costs | $ 74,066 | |||||||||||
Unamortized amount offset against outstanding debt | $ 41,347 | $ 41,347 | $ 50,142 | |||||||||
Mortgage agreement, amount | $ 5,200,000 | |||||||||||
Mortgage agreement, interest rate | 4.00% | |||||||||||
Mortgage agreement, final payment | 4,347,778 | 4,347,778 | ||||||||||
Mortgage agreement, outstanding amount | 4,836,000 | $ 4,836,000 | 4,940,000 | |||||||||
Mortgage agreement, maturity date | Mar. 31, 2022 | |||||||||||
Mortgage agreement, monthly principal payment | $ 17,333 | |||||||||||
Mortgage agreement, payable period | 51 months | |||||||||||
U.S. Bank [Member] | Notes Payable - Buildings [Member] | Engineering And Design Center [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Deferred financing costs | $ 65,381 | |||||||||||
Unamortized amount offset against outstanding debt | 36,462 | $ 36,462 | 44,006 | |||||||||
Mortgage agreement, amount | $ 1,800,000 | |||||||||||
Mortgage agreement, interest rate | 4.00% | |||||||||||
Mortgage agreement, final payment | 1,505,000 | 1,505,000 | ||||||||||
Mortgage agreement, outstanding amount | $ 1,674,000 | $ 1,674,000 | 1,710,000 | |||||||||
Mortgage agreement, maturity date | Mar. 31, 2022 | |||||||||||
Mortgage agreement, monthly principal payment | $ 6,000 | |||||||||||
Mortgage agreement, payable period | 51 months | |||||||||||
U.S. Bank [Member] | Senior secured credit facility | Notes Payable - Banks [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Credit facility credit limit | $ 35,000,000 | $ 35,000,000 | ||||||||||
Expiration date | Mar. 31, 2022 | |||||||||||
Fixed interest rate | 5.00% | 5.00% | ||||||||||
Effective interest rate | 3.44% | 3.44% | ||||||||||
Deferred financing costs | $ 40,907 | $ 46,866 | ||||||||||
Unamortized amount offset against outstanding debt | 216,869 | 216,869 | 209,162 | |||||||||
Outstanding balance under the credit facility | 29,000,000 | 29,000,000 | 35,727,212 | |||||||||
Unused availability under the credit facility | $ 11,544,524 | $ 11,544,524 | 6,645,730 | |||||||||
U.S. Bank [Member] | Senior secured credit facility | LIBOR [Member] | Notes Payable - Banks [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Variable interest rate | 1.50% | |||||||||||
U.S. Bank [Member] | Revolving Line Cap [Member] | Notes Payable - Banks [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Credit facility credit limit | $ 45,000,000 | |||||||||||
Borrowing base percentage | 90.00% | |||||||||||
Number of days in measuring borrowing base requirements | 90 days | |||||||||||
Borrowing base minimum requirement | 80.00% | |||||||||||
Sublimits on raw materials | $ 10,500,000 | |||||||||||
Sublimits on finished goods | 10,000,000 | |||||||||||
Sublimits on all eligible inventory | $ 28,000,000 | |||||||||||
U.S. Bank [Member] | Revolving Line Cap [Member] | Notes Payable - Banks [Member] | Revolving Line Cap Until February 26, 2020 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Borrowing base percentage | 95.00% | |||||||||||
U.S. Bank [Member] | Revolving Line Cap [Member] | Notes Payable - Banks [Member] | Revolving Line Cap On And After February 26, 2020 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Borrowing base minimum requirement | 90.00% | |||||||||||
Minimum | Finance Lease And Sales Leaseback Agreements [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Fixed interest rate | 3.75% | 3.75% | ||||||||||
Installment payments under secured note agreements | $ 1,455 | |||||||||||
Minimum | U.S. Bank [Member] | Revolving Line Cap [Member] | Notes Payable - Banks [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Fixed charge coverage ratio | 1.00% | |||||||||||
Minimum | Engencap Fin S.A. DE C.V. [Member] | Notes Payable - Equipment [Member] | Equipment [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Fixed interest rate | 6.65% | 6.65% | ||||||||||
Term extended agreement date | Nov. 1, 2021 | |||||||||||
Installment payments under secured note agreements | $ 11,045 | |||||||||||
Maximum | Finance Lease And Sales Leaseback Agreements [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Fixed interest rate | 9.40% | 9.40% | ||||||||||
Term extended agreement date | May 1, 2023 | |||||||||||
Installment payments under secured note agreements | $ 40,173 | |||||||||||
Maximum | U.S. Bank [Member] | Revolving Line Cap [Member] | Notes Payable - Banks [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Fixed charge coverage ratio | 1.20% | |||||||||||
Maximum | Engencap Fin S.A. DE C.V. [Member] | Notes Payable - Equipment [Member] | Equipment [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Fixed interest rate | 8.00% | 8.00% | ||||||||||
Term extended agreement date | May 1, 2023 | |||||||||||
Installment payments under secured note agreements | $ 37,941 | |||||||||||
Foreign Subsidiaries [Member] | Maximum | U.S. Bank [Member] | Credit Facility [Member] | Notes Payable - Banks [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Credit facility credit limit | $ 3,000,000 | |||||||||||
SigmaTron Electronic Technology Co [Member] | China Construction Bank [Member] | Credit Facility [Member] | Notes Payable - Banks [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Credit facility credit limit | $ 709,000 | $ 709,000 | ¥ 5,000,000 | |||||||||
Fixed interest rate | 6.09% | 6.09% | ||||||||||
Outstanding balance under the credit facility | $ 0 | $ 0 | $ 0 | |||||||||
Term extended agreement date | Mar. 14, 2024 |
Long-Term Debt (Schedule of Deb
Long-Term Debt (Schedule of Debt and Capital Lease Obligations) (Details) - USD ($) | Oct. 31, 2019 | Apr. 30, 2019 |
Debt Instrument [Line Items] | ||
Unamortized deferred financing costs | $ (294,678) | $ (303,310) |
Total debt | 36,338,225 | 43,402,655 |
Less current maturities | 691,701 | 691,701 |
Long-term debt | 35,646,524 | 42,710,954 |
Finance lease and sale leaseback obligations | 4,311,202 | 4,802,158 |
Less current maturities | 1,898,876 | 1,939,374 |
Total finance lease obligations, less current portion | 2,412,326 | 2,862,784 |
Notes Payable - Banks [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 29,000,000 | 35,727,212 |
Total debt | 28,783,131 | |
Notes Payable - Buildings [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 6,510,000 | 6,650,000 |
Total debt | 6,432,191 | |
Notes Payable - Equipment [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 1,122,903 | $ 1,328,753 |
Total debt | $ 1,122,903 |
Long-Term Debt (Aggregate Amoun
Long-Term Debt (Aggregate Amount of Debt, Net Deferred Financing Fees) (Details) - USD ($) | Oct. 31, 2019 | Apr. 30, 2019 |
2020 | $ 345,851 | |
2021 | 691,701 | |
2022 | 35,177,174 | |
2023 | 114,372 | |
2024 | 9,127 | |
Total debt | 36,338,225 | $ 43,402,655 |
Notes Payable - Banks [Member] | ||
2022 | 28,783,131 | |
Total debt | 28,783,131 | |
Notes Payable - Buildings [Member] | ||
2020 | 140,000 | |
2021 | 280,000 | |
2022 | 6,012,191 | |
Total debt | 6,432,191 | |
Notes Payable - Equipment [Member] | ||
2020 | 205,851 | |
2021 | 411,701 | |
2022 | 381,852 | |
2023 | 114,372 | |
2024 | 9,127 | |
Total debt | $ 1,122,903 |
Income Tax (Narrative) (Details
Income Tax (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Income Tax [Line Items] | ||||
Income tax expense | $ 316,106 | $ 1,125,992 | $ 563,221 | $ 928,986 |
Effective income tax rate | 32.35% | 280.06% | 35.52% | (288.90%) |
Foreign [Member] | ||||
Income Tax [Line Items] | ||||
Operating loss carryforwards, valuation allowance | $ 457,011 | $ 457,011 |
Critical Accounting Policies (N
Critical Accounting Policies (Narrative) (Details) - USD ($) | Oct. 31, 2019 | Jul. 31, 2019 | May 01, 2019 | Apr. 30, 2019 |
Critical Accounting Policies [Abstract] | ||||
Performance obligations remain unsatisfied or partially unsatisfied | $ 0 | |||
Valuation allowances | 1,372,643 | $ 1,294,605 | ||
Cumulative effect adjustment for the adoption of Topic 842 | $ 5 | |||
ROU operating lease assets | 6,567,272 | $ 6,017,771 | ||
ROU operating lease liabilities | $ 6,787,448 | $ 6,290,289 |
Critical Accounting Policies (R
Critical Accounting Policies (Revenue Disaggregated By Principal End-User Markets) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Total Net Trade Sales | $ 74,855,312 | $ 77,001,091 | $ 148,865,293 | $ 148,415,148 |
Industrial Electronics [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Net Trade Sales | 41,398,201 | 41,583,723 | 84,246,913 | 79,718,825 |
Consumer Electronics [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Net Trade Sales | 28,815,556 | 31,490,883 | 55,474,743 | 60,691,796 |
Medical / Life Sciences [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Net Trade Sales | $ 4,641,555 | $ 3,926,485 | $ 9,143,637 | $ 8,004,527 |
Related Parties (Narrative) (De
Related Parties (Narrative) (Details) | Apr. 30, 2018USD ($)$ / sharesshares | Oct. 31, 2019USD ($) | Mar. 31, 2015employee |
Related Party Transaction [Line Items] | |||
Amount owed by Petzila | $ 3,500,000 | ||
Cash from sold assets to Wagz | $ 350,000 | ||
Fair value of non-cash consideration | $ 600,000 | ||
Executive [Member] | |||
Related Party Transaction [Line Items] | |||
Number of executive officers invested in a start-up customer | employee | 2 | ||
Maximum | Executive [Member] | |||
Related Party Transaction [Line Items] | |||
Executive officers' investment holding, percentage | 2.00% | ||
Wagz [Member] | |||
Related Party Transaction [Line Items] | |||
Shares acquired from Asset Purchase Agreement | shares | 600,000 | ||
Asset Purchase Agreement end date | Jul. 31, 2022 | ||
Asset Purchase Agreement earn-out | $ / shares | $ 6 |
Leases (Narratives) (Details)
Leases (Narratives) (Details) | Oct. 31, 2019 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating leases, term | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating leases, term | 5 years |
Leases (Lease Assets And Liabil
Leases (Lease Assets And Liabilities Related To Balance Sheet Classification) (Details) - USD ($) | Oct. 31, 2019 | May 01, 2019 | Apr. 30, 2019 |
Leases [Abstract] | |||
Operating Leases: Right-of-use Assets | $ 6,567,272 | $ 6,017,771 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssetsNoncurrent | ||
Operating lease current liabilities | $ 2,292,681 | ||
Operating lease noncurrent liabilities | 4,494,767 | ||
Finance Leases: Right-of-use Assets | $ 10,793,496 | ||
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PropertyPlantAndEquipmentNet | ||
Finance lease current liabilities | $ 1,898,876 | $ 1,939,374 | |
Finance lease noncurrent liabilities | $ 2,412,326 | $ 2,862,784 |
Leases (Components Of Lease Exp
Leases (Components Of Lease Expense) (Details) - USD ($) | 3 Months Ended | 6 Months Ended |
Oct. 31, 2019 | Oct. 31, 2019 | |
Total | $ 1,159,118 | $ 2,244,020 |
Operating Expense [Member] | ||
Operating lease cost | 625,339 | 1,219,833 |
Variable lease cost | 73,897 | 147,794 |
Short term lease cost | 1,350 | 2,700 |
Amortization of right-of-use assets | 384,192 | 731,567 |
Interest Expense [Member] | ||
Interest expense | $ 74,340 | $ 142,126 |
Leases (Weighted Average Lease
Leases (Weighted Average Lease Term And Discount Rate) (Details) | Oct. 31, 2019 |
Leases [Abstract] | |
Operating Leases: Weighted average remaining lease term (months) | 44 months 6 days |
Operating Leases: Weighted average discount rate | 3.90% |
Finance Leases: Weighted average remaining lease term (months) | 29 months 1 day |
Finance Leases: Weighted average discount rate | 6.50% |
Leases (Future Payments Due Und
Leases (Future Payments Due Under Finance And Operating Leases) (Details) - USD ($) | Oct. 31, 2019 | May 01, 2019 | Apr. 30, 2019 |
Finance Leases | |||
For the remaining 6 months of the fiscal year ending April 30: 2020 | $ 1,054,294 | ||
For the fiscal year ending April 30: 2021 | 1,989,548 | ||
For the fiscal year ending April 30: 2022 | 1,245,999 | ||
For the fiscal year ending April 30: 2023 | 369,677 | ||
For the fiscal year ending April 30: 2024 | 39,334 | ||
Thereafter | |||
Total undiscounted lease payments | 4,698,852 | ||
Present value discount, less interest | 387,650 | ||
Lease liability | 4,311,202 | $ 4,802,158 | |
Operating Leases | |||
For the remaining 6 months of the fiscal year ending April 30: 2020 | 1,272,315 | ||
For the fiscal year ending April 30: 2021 | 2,296,475 | ||
For the fiscal year ending April 30: 2022 | 1,351,584 | ||
For the fiscal year ending April 30: 2023 | 1,202,416 | ||
For the fiscal year ending April 30: 2024 | 775,638 | ||
Thereafter | 254,121 | ||
Total undiscounted lease payments | 7,152,549 | ||
Present value discount, less interest | 365,101 | ||
Lease liability | $ 6,787,448 | $ 6,290,289 |
Leases (Supplemental Cash Flow
Leases (Supplemental Cash Flow Information Related To Leases) (Details) | 6 Months Ended |
Oct. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from finance leases | $ 142,126 |
Operating cash flows from operating leases | 126,363 |
Financing cash flows from finance leases | 1,162,403 |
Right-of-use assets obtained in exchange for new finance lease liabilities | 671,446 |
Right-of-use assets obtained in exchange for operating lease liabilities | $ 1,630,006 |