EXHIBIT 99.1

SMTC Reports Fourth Quarter and Fiscal Year 2015 Results

  • Reports fourth quarter results of $60.7 million in revenue, $1.5 million in adjusted EBITDA, a net income of $0.8 million and $0.05 in EPS, compared to fourth quarter 2014 revenue of $57.0 million,  $2.3 million in adjusted EBITDA, a net loss of $(2.4) million and $(0.15) in EPS.
     
  • Reports gross profit for the fourth quarter of $5.5 million or 9.1% compared to $3.8 million or 6.7% in the fourth quarter of 2014. Adjusted gross profit was $4.6 million or 7.6% in 2015 compared to $5.8 million or 10.2% in the fourth quarter of 2014.
     
  • Reports fiscal year 2015 results of $220.6 million in revenue, $5.7 million in adjusted EBITDA, a net loss of $(0.0) million and $(0.0) in EPS, compared to $228.6 million of revenue, $7.1 million in adjusted EBITDA, a net loss of $(3.9) million and $(0.24) in EPS in fiscal 2014.
     
  • Reports fiscal year gross profit of $17.7 million or 8.0%, compared to $19.0 million or 8.3% in the prior year. Adjusted gross profit was $17.1 million or 7.8% in 2015 compared to $20.8 million or 9.1% in the prior year.
     
  • Full year cash flow from operations was $10.9 million, up from $5.0 million in the prior year.
     
  • Debt, net of cash, was $10.4 million a decrease from $17.8 million year ended 2014.
     
  • Subsequent to year-end, an amendment was executed with our lender, PNC. The amendment resulted in $5.0 million of our revolving credit facility being converted into long-term debt for which the current portion is $1.0 million.

TORONTO, March 16, 2016 (GLOBE NEWSWIRE) -- SMTC Corporation (Nasdaq:SMTX), a global electronics manufacturing services provider, today announced fourth quarter 2015 and fiscal year 2015 results.

Revenue for the fourth quarter was $60.7 million. Gross profit was $5.5 million or 9.1% and adjusted EBITDA was $1.5 million. The 2015 fourth quarter results included $0.2 million in professional services related to the Company’s previously disclosed mergers and acquisitions activities and $0.2 million in additional severance charges not incurred in the fourth quarter of 2014. Adjusted gross profit was $4.6 million or 7.6% in the fourth quarter of 2015. Due to unfavorable market rates, realized foreign exchange losses included in gross profit on settled forward foreign exchange contracts was $1.3 million in the fourth quarter of 2015 compared to $0.2 million in the fourth quarter of 2014.

Revenue for the year was $220.6 million, or a 3.5% decrease from $228.6 million in 2014. Revenue from our largest customer in 2015 represented 13.4% of total revenue compared to our largest customer which represented 30.8% of total revenue in prior year. Revenue from our largest three customers in 2015 represented 33.3% of total revenue compared to the largest three customers which represented 53.2% of total revenue in prior year.

The gross profit percentage for 2015 was 8.0%, compared to 8.3% in the prior year, with some attrition due to new customer initial investment as well as higher realized foreign exchange losses of $3.3 million in 2015 compared to 2014. Adjusted gross profit percentage was 7.8% in 2015 compared to 9.1% in the prior year. 

Adjusted EBITDA for the year was $5.7 million as compared to $7.1 million in 2014. 2015 included additional severance costs of $0.9 million that were not incurred in 2014. 2015 results also included $0.6 million in professional services related to the Company’s previously disclosed mergers and acquisitions activities. The severance and professional services were not included as reconciling items added back in the calculation of the adjusted EBITDA reported for 2015.

During 2015, we generated $10.9 million in cash flow from operations compared to $5.0 million in 2014 primarily as a result of achieving 8 times inventory turns and working capital management.

Debt, net of cash, was $10.4 million a marked improvement from $17.8 million year ended 2014.

Chief Executive Officer Sushil Dhiman, stated, “I am pleased and encouraged with the fourth quarter revenue of $60.7 million which is the highest we have achieved in two years. During 2015, we continued to diversify our customer base and reduce customer concentration risk. Our largest customer in 2015 represented 13.4% of total revenue versus 30.8% in the prior year. The 2015 revenue is consistent with what I have communicated previously in the earnings calls as we did not anticipate growth in 2015. However, despite the revenue challenges we faced, we remained focused on improving the balance sheet by generating cash flow from operations and reducing our debt. Our net debt of $10.4 million is the lowest in over 10 years. While we foresee lower revenue in the first quarter of 2016, we expect growth in margin and revenue for the year.”

Non-GAAP information

Adjusted EBITDA, Adjusted Gross Profit and Adjusted Gross Profit percentage are non-GAAP measures.  Adjusted EBITDA is computed as net income (loss) from continuing operations excluding depreciation and amortization, restructuring charges, unrealized foreign exchange gains/losses on unsettled forward foreign exchange contracts, stock based compensation, interest and income tax expense. SMTC Corporation has provided in this release a non-GAAP calculation of Adjusted EBITDA as supplemental information regarding the operational performance of SMTC’s core business. A reconciliation of Adjusted EBITDA to net earnings (loss) is included in the attachment. Adjusted Gross Profit is computed as gross profit excluding unrealized gains or losses on unsettled forward foreign exchange contracts. Adjusted Gross Profit percentage is computed as Adjusted Gross Profit divided by revenue. A reconciliation of Adjusted Gross Profit to gross profit is included in the attachment. Management uses these non-GAAP financial measures internally in analyzing SMTC’s financial results to assess operational performance and liquidity as well as to provide a consistent method of comparison to historical periods and to the performance of competitors and peer group companies. SMTC believes that these non-GAAP financial measures are useful for management and investors in assessing SMTC’s performance and when planning, forecasting and analyzing future periods. SMTC believes these non-GAAP financial measures are useful to investors because it allows for greater transparency with respect to key financial metrics we use in making operating decisions and because investors and analysts use it to help assess the health of our business.  Non-GAAP measures are subject to limitations as these measures are not in accordance with, or an alternative for, United States Generally Accepted Accounting Principles (US GAAP) and may be different from non-GAAP measures used by other companies. Because of these limitations, investors should consider Adjusted EBITDA, Adjusted Gross Profit and Adjusted Gross Profit percentage along with other financial performance measures, including revenue, gross profit and net income (loss), as reflected in SMTC’s consolidated financial statements prepared in accordance with US GAAP.

Note for Investors: The statements contained in this release that are not purely historical are forward-looking statements which involve risk and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. These statements may be identified by their use of forward-looking terminology such as "believes," "expect," "may," "should," "would," "will," "intends," "plans," "estimates," "anticipates" and similar words, and include, but are not limited to, statements regarding the expectations, intentions or strategies of SMTC. For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Risks and uncertainties that may cause future results to differ from forward looking statements include the challenges of managing quickly expanding operations and integrating acquired companies, fluctuations in demand for customers' products and changes in customers' product sources, competition in the EMS industry, component shortages, and others risks and uncertainties discussed in SMTC's most recent filings with the SEC. The forward-looking statements contained in this release are made as of the date hereof and SMTC assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ materially from those projected in the forward-looking statements.

About SMTC Corporation: SMTC Corporation, founded in 1985, is a mid-size provider of end-to-end electronics manufacturing services (EMS) including PCBA production, systems integration and comprehensive testing services, enclosure fabrication, as well as product design, sustaining engineering and supply chain management services. SMTC facilities span a broad footprint in the United States, Mexico, and China, with approximately 1,170 employees. SMTC services extend over the entire electronic product life cycle from the development and introduction of new products through to the growth, maturity and end-of-life phases. SMTC offers fully integrated contract manufacturing services with a distinctive approach to global original equipment manufacturers (OEMs) and emerging technology companies primarily within industrial, computing and communication market segments. SMTC is a public company incorporated in Delaware with its shares traded on the Nasdaq National Market System under the symbol SMTX. For further information on SMTC Corporation, please visit our website at www.smtc.com (http://www.smtc.com/).

Consolidated Statements of Operations and Comprehensive Income (Loss)     
(Unaudited)       
  Three months endedTwelve months ended 
        
(Expressed in thousands of U.S. dollars, except number of shares and per share amounts)January 03,  2016 December 28,  2014 January 03,  2016December 28,  2014  
        
Revenue $  60,736  $  57,042 $  220,616 $  228,577  
Cost of sales    55,193     53,196    202,899    209,623  
Gross profit    5,543     3,846    17,717    18,954  
Selling, general and administrative expenses     4,202     4,674    15,863    17,900  
Gain on sale of property,plant and equipment    -     28    2    51  
Restructuring charges    -      -    1,366  
Operating earnings (loss)    1,341     (856)   1,852    (363) 
Interest expense    269     356    1,183    1,693  
Income (loss) before income taxes    1,072     (1,212)   669    (2,056) 
Income tax expense       
Current    117     281    598    887  
Deferred    161     935    75    935  
     278     1,216    673    1,822  
Net income (loss), also being comprehensive income (loss) $  794  $  (2,428)$  (4)$  (3,878) 
        
Basic loss per share $  0.05  $  (0.15)$  -  $  (0.24) 
Diluted loss per share $  0.05  $  (0.15)$  -  $  (0.24) 
        
Weighted average number of shares outstanding       
Basic  16,421,478   16,417,275  16,421,478  16,417,275  
Diluted  16,421,478   16,417,275  16,421,478  16,417,275  
        

 

Consolidated Balance Sheets      
(Unaudited)      
       
(Expressed in thousands of U.S. dollars)  January 03,  2016 December 28, 2014 
Assets      
       
Current assets:      
Cash  $  6,099  $  5,447  
Restricted Cash-guaranteed deposits     805     -  
Accounts receivable - net     29,885     31,024  
Inventories      25,877     31,590  
Prepaid expenses and other assets      1,983     2,135  
Income taxes receivable     461     359  
Deferred income taxes - net     352     428  
      65,462     70,983  
Property, plant and equipment - net     16,443     17,590  
Deferred financing costs - net     68     90  
   $  81,973  $  88,663  
Liabilities and Shareholders' Equity      
       
Current liabilities:      
Accounts payable  $  31,045  $  29,425  
Accrued liabilities     5,562     7,080  
Derivative liabilities     2,087     2,703  
Income taxes payable     502     449  
Revolving credit facility     10,721     21,370  
Current portion of long-term debt facility     1,000     -  
Current portion of capital lease obligations     538     980  
      51,455     62,007  
Long-term debt     4,000     -  
Capital lease obligations     222     866  
       
Shareholders’ equity:      
Capital stock     391     390  
Additional paid-in capital     264,505     263,996  
Deficit     (238,600)    (238,596) 
      26,296     25,790  
   $  81,973  $  88,663  

 

Consolidated Statements of Cash Flows          
(Unaudited)         
  Three months ended Twelve months ended 
(Expressed in thousands of U.S. dollars)         
Cash provided by (used in): January 03, 2016 December 28, 2014  January 03, 2016 December 28, 2014  
Operations:         
Net income (loss) $  794  $  (2,428) $  (4) $  (3,878) 
Items not involving cash:         
Depreciation    991     1,037     3,967     3,997  
Unrealized loss (gain) on derivative financial instruments    (950)    1,993     (616)    1,822  
Loss on sale of property, plant and equipment    -     28     2     51  
Deferred income taxes    162     1,053     76     1,085  
Amortization of deferred financing fees    8     8     32     385  
Stock-based compensation    166     96     510     264  
Change in non-cash operating working capital:         
Accounts receivable    (1,968)    (2,680)    1,139     (203) 
Inventories    4,589     5,651     5,713     5,186  
Prepaid expenses and other assets    (149)    (1,070)    152     (503) 
Income taxes payable    (22)    130     (49)    (213) 
Accounts payable    1,926     (664)    1,439     (3,732) 
Accrued liabilities    (1,377)    848     (1,483)    734  
     4,170     4,002     10,878     4,995  
Financing:         
Advance (net repayment) in revolving debt    (5,929)    (377)    (10,649)    1,148  
Repayment of long-term debt facility    5,000     -     5,000     -  
Principal payment of capital lease obligations    (224)    (284)    (1,086)    (1,858) 
Deferred financing costs    -       (10)    (200) 
     (1,153)    (661)    (6,745)    (910) 
Investing:         
Restricted cash - guaranteed deposits    (805)    -     (805)    -  
Purchase of property, plant and equipment    (985)    (742)    (2,682)    (1,971) 
Proceeds from sale of property, plant and equipment      8     6     38  
     (1,790)    (734)    (3,481)    (1,933) 
Increase(decrease) in cash    1,227     2,607     652     2,152  
Cash, beginning of period    4,872     2,840     5,447     3,295  
Cash, end of the period $  6,099  $  5,447  $  6,099  $  5,447  
     

 

Supplementary Information:        
         
Reconciliation of Adjusted EBITDA         
         
(Expressed in thousands of U.S. dollars) Three months ended Twelve months ended
  January 03,  2016 December 28,  2014  January 03,  2016 December 28,  2014 
         
Net income (loss)  794   (2,428)  (4)  (3,878)
Add (deduct):        
Stock compensation expense    166     96     510     264 
Interest    269     356     1,183     1,693 
Unrealized loss (gain) on unsettled forward foreign exchange contracts  (950)    1,993   (616)    1,822 
Income tax expense    278     1,216     673     1,822 
Depreciation    991     1,037     3,967     3,997 
Restructuring charges    -     -     -     1,366 
Adjusted EBITDA    1,548     2,270     5,713     7,086 
         

 

Supplementary Information:        
         
Reconciliation of Adjusted Gross Profit      
         
(Expressed in thousands of U.S. dollars) Three months ended Twelve months ended
  January 03,  2016 December 28,  2014  January 03,  2016 December 28,  2014 
         
Gross Profit $  5,543  $  3,846  $  17,717  $  18,954 
Deduct:        
Unrealized loss (gain) on unsettled forward foreign exchange contracts    (950)    1,993     (616)    1,822 
Adjusted Gross Profit    4,593     5,839     17,101     20,776 
         


Investor Relations Information: 
Blair McInnis                      
Corporate Controller
Telephone: (905) 413.1211
Email: blair.mcinnis@smtc.com

Public Relations Information:
Tom Reilly
Director of Marketing
Telephone: (905) 413.1188
Email: publicrelations@smtc.com


The following information was filed by Smtc Corp (SMTX) on Thursday, March 17, 2016 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

View differences made from one year to another to evaluate Smtc Corp's financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 10-K Annual Report to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Smtc Corp.

Continue

Never Miss A New SEC Filing Again


Real-Time SEC Filing Notifications
Screenshot taken from Gmail for a new 10-K Annual Report
Last10K.com Member Feature

Receive an e-mail as soon as a company files an Annual Report, Quarterly Report or has new 8-K corporate news.

Continue

We Highlighted This SEC Filing For You


SEC Filing Sentiment Analysis - Bullish, Bearish, Neutral
Screenshot taken from Wynn's 2018 10-K Annual Report
Last10K.com Member Feature

Read positive and negative remarks made by management in their entirety without having to find them in a 10-K/Q.

Continue

Widen Your SEC Filing Reading Experience


Increased Reading Area for SEC Filings
Screenshot taken from Adobe Inc.'s 10-Q Quarterly Report
Last10K.com Member Feature

Remove data columns and navigations in order to see much more filing content and tables in one view

Continue

Uncover Actionable Information Inside SEC Filings


SEC Filing Disclosures
Screenshot taken from Lumber Liquidators 10-K Annual Report
Last10K.com Member Feature

Read both hidden opportunities and early signs of potential problems without having to find them in a 10-K/Q

Continue

Adobe PDF, Microsoft Word and Excel Downloads


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshots of actual 10-K and 10-Q SEC Filings in PDF, Word and Excel formats
Last10K.com Member Feature

Export Annual and Quarterly Reports to Adobe PDF, Microsoft Word and Excel for offline viewing, annotations and analysis

Continue

FREE Financial Statements


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshot of actual balance sheet from company 10-K Annual Report
Last10K.com Member Feature

Get one-click access to balance sheets, income, operations and cash flow statements without having to find them in Annual and Quarterly Reports

Continue for FREE

Intrinsic Value Calculator


Intrinsic Value Calculator
Screenshot of intrinsic value for AT&T (2019)
Last10K.com Member Feature

Our Intrinsic Value calculator estimates what an entire company is worth using up to 10 years of financial ratios to determine if a stock is overvalued or not

Continue

Financial Stability Report


Financial Stability Report
Screenshot of financial stability report for Coco-Cola (2019)
Last10K.com Member Feature

Our Financial Stability reports uses up to 10 years of financial ratios to determine the health of a company's EPS, Dividends, Book Value, Return on Equity, Current Ratio and Debt-to-Equity

Continue

Get a Better Picture of a Company's Performance


Financial Ratios
Available Financial Ratios
Last10K.com Member Feature

See how over 70 Growth, Profitability and Financial Ratios perform over 10 Years

Continue

Log in with your credentials

or    

Forgot your details?

Create Account