EXHIBIT 99.1

SMTC Corporation Reports Fourth Quarter and Full Year 2019 Results

Strong Operation Efficiency Gains Led to Year-over-Year Growth, Expected to Continue in 2020

TORONTO, March 12, 2020 (GLOBE NEWSWIRE) -- SMTC Corporation (Nasdaq:SMTX), a global electronics manufacturing services provider and winners of the Frost & Sullivan’s 2019 Best Practices Award for Customer Value Leadership in the Electronics Manufacturing Services Industry, today announced its fourth quarter and full year 2019 results.

2019 Business Highlights

“We made significant progress in 2019 building a stronger company that we believe positions SMTC for long-term success,” said Ed Smith, SMTC President and CEO. From a strategic perspective, highlights included

Fourth Quarter 2019 Financial Highlights
      
$s in thousands   Q4 2018ChangeQ4 2018Change
 Q4 2019
(as reported)Pro-forma1
Revenue$90,244 $80,855 11.6%$98,736 (8.6%)
Gross Profit 10,494  8,291 26.6% 8,236 27.4%
Gross Profit Percentage 11.6% 10.3%  8.3% 
Adjusted Gross Profit2 12,150  9,341 30.1% 9,820 23.7%
Adjusted Gross Profit Percentage2 13.5% 11.6%  9.9% 
Net Income (Loss) 996  (1,223)  (4,372) 
Adjusted Net Income2 2,915  1,761 65.5% 415 65.5%
EBITDA2 6,693  3,401 96.8% 3,378 98.1%
EBITDA Percentage2 7.4% 4.2%  3.4% 
Adjusted EBITDA2 6,956  5,320 30.8% 6,509 6.9%
Adjusted EBITDA Percentage2 7.7% 6.6%   6.6%  
Net Debt2 82,140  92,320 (11.0%) nm   
              
              
Full Year 2019 Financial Highlights             
              
$s in thousands    2018    2018   
  2019  (as reported) ChangePro-forma1Change
Revenue$372,511 $216,131 72.4%$345,194 7.9%
Gross Profit 37,021  21,661 70.9% 28,768 28.7%
Gross Profit Percentage 9.9% 10.0%  8.3% 
Adjusted Gross Profit2 44,209  22,373 97.6% 35,752 23.7%
Adjusted Gross Profit Percentage2 11.9% 10.4%  10.4% 
Net Income (Loss) (5,995) (448)  (11,044) 
Adjusted Net Income2 6,881  2,630 161.6% (183) 
EBITDA2 19,091  8,202 132.8% 14,604 30.7%
EBITDA Percentage2 5.1% 3.8%  4.2% 
Adjusted EBITDA2 24,779  10,215 142.6% 18,090 37.0%
Adjusted EBITDA Percentage2 6.7% 4.7%  5.2% 
Net Debt2 82,140  92,320 (11.0%) nm  
      

1Pro-forma for the fourth quarter of 2018 assumes MC Assembly Holdings, Inc. (“MC Assembly”), acquired by SMTC on November 9, 2018, had been acquired on October 1, 2018, the first day of SMTC’s fourth quarter of 2018. Pro-forma for the full year 2018 assumes MC Assembly, acquired by SMTC on November 9, 2018, had been acquired on January 1, 2018, the first day of SMTC’s first quarter of 2018.

2Adjusted Gross Profit, Adjusted Gross Profit Percentage, Adjusted Net Income, EBITDA, EBITDA Percentage, Adjusted EBITDA, Adjusted EBITDA Percentage, Net Debt, Pro-forma Adjusted Gross Profit, Pro-forma Adjusted Gross Profit Percentage, Pro-forma Adjusted Net Income, Pro-forma EBITDA, Pro-forma EBITDA Percentage, Pro-forma Adjusted EBITDA and Pro-forma Adjusted EBITDA Percentage (each as defined below) are non-GAAP measures. Please refer to the section below labeled “Non-GAAP Information” and the various reconciliations to the applicable most directly comparable GAAP measures shown below in this press release.

Revenue Growth Driven by Expansion into Attractive Markets

SMTC 2019 reported revenue of $372.5 million represented a year-over-year increase of 72.4%. On a pro-forma basis, which assumes MC Assembly had been part of SMTC for the full year in 2018, 2019 revenue increased 7.9% over 2018. Revenue growth by industry sector is noted in the table below:

           
Industry SectorFiscal Year endedFiscal Year endedChange 
December 29,December 30, 
20192018 
 $%$%$% 
Test and Measurement118.631.845.821.272.8 159.0  
Industrial, Power and Clean Technology77.420.828.313.149.1 173.5  
Retail and Payment Systems46.112.441.619.34.5 10.8  
Medical and safety45.512.231.414.514.1 44.9  
Telecom, Networking and Communications37.210.037.417.3(0.2)(0.5) 
Avionics, Aerospace and Defense24.76.65.12.319.6 384.3  
Semiconductors23.06.226.512.3(3.5)(13.2) 
Total372.5100.0216.1100.0156.4 72.4  
           

 

Management Commentary

“In the fourth quarter we continued to expand our customer base with multi-year awards in excess of $31 million from three leading global avionics, aerospace and defense technology companies, which we announced on January 8, 2020. Thus far in the first quarter of 2020, we have added four new customers and four programs from existing customers with the potential revenue in excess of $20 million,” commented Smith.

“Our successful integration of MC Assembly resulted in the ability to increase our scale and further improve our operational efficiencies,” added Smith. “Our activities also resulted in our achieving best-in-class among our Tier III EMS peers for key performance measures, including Gross Profit Percentage, Adjusted EBITDA and Adjusted EBITDA Percentage all of which increased even faster than our revenue growth,” Smith reported.

SMTC reported a Net Loss of $6 million in 2019, compared to a Net Loss of $0.4 million in 2018. The increased loss was primarily due to restructuring charges of $8.0 million incurred in 2019 related to the closure of the China manufacturing facility and the elimination of redundancies associated with the acquisition of Mc Assembly, in addition to amortization of intangible assets of $7.2 million, partially offset by a change in fair value of contingent consideration resulting in a gain of $3.1 million. 

SMTC’s expanding sales and focus on operational efficiency enabled the company to report fourth quarter 2019 Adjusted Net Income of $2.9 million, an improvement of 65.5%, compared to the fourth quarter of 2018. 2019 Adjusted Net Income increased by 161.6% to $6.9 million. Pro-forma Adjusted Net Income was $6.9 million in 2019, an improvement compared to a Pro-forma Adjusted Net Loss of $0.2 million in 2018.

“I am also pleased to report that we have completed the closure of our Chinese manufacturing operations. Since choosing to not renew our lease in Dongguan, we have transitioned most of our customers from this China manufacturing site to our North American locations. We also remain on track to complete the move of our manufacturing equipment from Dongguan to our North American sites. Although we are exiting China from a manufacturing perspective, we are maintaining a small team in the Dongguan area to support our global engineering, supply chain, and supplier quality engineering activities as well as a procurement and logistic group in Hong Kong, China. Our team has done an excellent job of communicating our operational changes to our customers and we have seen strong customer loyalty as a result,” commented Smith.

Outlook for 2020

“While we are becoming less dependent on our presence in China from a manufacturing perspective, we are carefully monitoring the impact of COVID-19 (coronavirus) and keeping our customers abreast of our efforts to mitigate its impact on our ability to meet their production requirements. Recognizing that customer demand can change due to additional supply chain interruptions, at this time we have seen low impact on our business as a result of the coronavirus,” said Smith.

“With the integration of MC Assembly completed, we are looking forward to another year of growth in 2020. We are reaffirming the guidance we previously provided on September 19, 2019 for the full year 2020 with expected revenue ranging between $390 and $410 million,” added Smith.

“Based on the gains we made in operational efficiency, we expect Adjusted EBITDA to accelerate faster than our revenue growth. Our current outlook for 2020 is for our Adjusted EBITDA to range between $29.0 and $31.0 million, which would be an improvement of 17% to 25% compared to 2019 reported results,” added Smith.

“We also remain focused on further strengthening our balance sheet in 2020 by further reducing our debt-to-EBITDA ratio. At the time of the MC Assembly acquisition, our debt-to-EBITDA ratio stood at 4.67. Our Rights Offering and Registered Direct Offering, both completed in June 2019, and improving performance in 2019, have enabled us to reduce that ratio to 2.85, excluding leases, as of the end of 2019,” reported Smith. “Based on our current projections, we are targeting to have the debt-to-EBITDA ratio under 2.25 by the end of 2020.”

Financial Results Conference Call

SMTC will host a conference call which will start at 8:30 a.m. Eastern Time on Friday, March 13, 2020. The conference call can be accessed by visiting the Investor Relations section of SMTC’s web site on the Investor Relations Calendar page at https://www.smtc.com/investors/news-events/ir-calendar or dialing 1-877-317-6789 (for U.S. participants) or 1-412-317-6789 (for participants outside of the U.S. ten minutes prior to the start of the call and request to join the SMTC Corporation’s Fourth Quarter and Full Year 2019 Results Conference Call.

The conference call will be available for rebroadcast from the Investor Relations section of SMTC’s web site on the Investor Relations Calendar page.

Non-GAAP information

Adjusted Gross Profit, Adjusted Gross Profit Percentage, Adjusted Net Income, EBITDA, Adjusted EBITDA, Adjusted EBITDA Percentage, Net Debt, Pro-forma Adjusted Gross Profit, Pro-forma Adjusted Gross Profit Percentage, Pro-forma Adjusted Net Income, Pro-forma EBITDA, Pro-forma EBITDA Percentage, Pro-forma Adjusted EBITDA and Pro-forma Adjusted EBITDA Percentage are non-GAAP measures and are referred to herein as “Non-GAAP Financial Measures.” Adjusted Gross Profit is computed as gross profit excluding amortization of intangible assets and unrealized foreign exchange gains or losses on unsettled forward foreign exchange contracts. Adjusted Gross Profit Percentage is computed as Adjusted Gross Profit divided by revenue. Adjusted Net Income is computed as net income (loss) excluding before amortization of intangible assets, unrealized foreign exchange gain on unsettled forward exchange contracts, restructuring charges, stock-based compensation, fair value adjustment of warrant liability, merger and acquisition related expenses and fair value adjustment to contingent consideration. EBITDA is defined as net income (loss) before interest, taxes, depreciation and amortization. Adjusted EBITDA is computed as EBITDA, as further adjusted to exclude restructuring charges, stock-based compensation, fair value adjustment of warrant liability, merger and acquisition related expenses, fair value adjustment to contingent consideration and unrealized foreign exchange gains and losses on unsettled forward foreign exchange contracts. Adjusted EBITDA Percentage is computed as Adjusted EBITDA divided by revenue. Net Debt is computed as Total debt minus cash. Pro-forma Adjusted Gross Profit, Pro-forma Adjusted Gross Profit Percentage, Pro-forma Adjusted Net Income, Pro-forma EBITDA, Pro-forma EBITDA Percentage, Pro-forma Adjusted EBITDA and Pro-forma Adjusted EBITDA Percentage are computed as Adjusted Gross Profit, Adjusted Gross Profit Percentage, Adjusted Net Income, EBITDA, EBITDA Percentage, Adjusted EBITDA and Adjusted EBITDA Percentage, in each case, after assuming that MC Assembly, acquired by SMTC on November 9, 2018, had been acquired by SMTC on October 1, 2018, the first day of SMTC’s fourth quarter of 2018, with respect to the fourth quarter of 2018, or January 1, 2018, the first day of SMTC’s first quarter of 2018, with respect to the first quarter of 2018, as applicable. Reconciliations of Adjusted Gross Profit to gross profit, Adjusted Gross Profit Percentage to gross profit percentage, Adjusted Net Income to net income (loss), EBITDA to net income (loss), EBITDA Percentage to net income (loss) percentage, Net Debt to total debt, Adjusted EBITDA to net income (loss), Adjusted EBITDA Percentage to net income (loss) percentage, Pro-forma Adjusted Gross Profit to gross profit, Pro-forma Adjusted Gross Profit Percentage to gross profit percentage, Pro-forma Adjusted Net Income to net income (loss), Pro-forma EBITDA to net income (loss), Pro-forma EBITDA Percentage to net income (loss) percentage, Pro-forma Adjusted EBITDA to net income (loss) and Pro-forma Adjusted EBITDA Percentage to net income (loss) percentage are each included in the attachment. Management believes that these Non-GAAP Financial Measures, when used in conjunction with GAAP financial measures, provide useful information about operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to the key metrics SMTC uses in its financial and operational decision making. These Non-GAAP Financial Measures are also frequently used by analysts, investors and other interested parties to evaluate companies in SMTC’s industry. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP, and they should not be construed as an inference that SMTC’s future results will be unaffected by any items adjusted for in these Non-GAAP Financial Measures. In evaluating these non-GAAP measures, you should be aware that in the future SMTC may incur expenses that are the same as or similar to some of those adjusted in the presentation below. The Non-GAAP Financial Measures that SMTC uses are not necessarily comparable to similarly titled measures used by other companies due to different methods of calculation.

Forward-Looking Statements

The statements contained in this release that are not purely historical are forward-looking statements, which involve risk and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. These statements may be identified by their use of forward looking terminology such as  “anticipates,” “believes,” “can,” “continue,” “could,” “estimates,” “expects,” “intends,” “may,” “plans,” “potential,” “predicts,” “should,” or “will” or the negative of these terms or other and similar words, and include, but are not limited to, statements regarding SMTC’s expected growth, revenue, Adjusted EBITDA, debt-to-EBITDA ratio, and other future financial results, SMTC’s long-term success,  the benefits of SMTC’s implementation of operational efficiencies and SMTC’s transition of manufacturing equipment from Dongguan, China to North American sites, and the anticipated effect of COVID-19 on SMTC’s operations and ability to meet customers’ production requirements.  For these statements, SMTC claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Risks and uncertainties that may cause future results to differ from forward looking statements include the challenges of managing quickly expanding operations, integrating acquired companies, ceasing manufacturing in China, fluctuations in demand for customers' products and changes in customers' product sources, competition in the electronics manufacturing services industry, component shortages, disruptions to the supply chain due to COVID-19 and others risks and uncertainties discussed in SMTC’s most recent filings with the Securities and Exchange Commission. The forward-looking statements contained in this release are made as of the date hereof and SMTC assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ materially from those projected in the forward-looking statements.

About SMTC

SMTC Corporation was founded in 1985 and acquired MC Assembly Holdings, Inc. in November 2018.  SMTC has more than 50 manufacturing and assembly lines in the United States and Mexico which creates a powerful low-to-medium volume, high-mix, end-to-end global electronics manufacturing services (EMS) provider. With local support and expanded manufacturing capabilities globally, including fully integrated contract manufacturing services with a focus on global original equipment manufacturers and emerging technology companies, including those in the Defense and Aerospace, Industrial, Power and Clean Technology, Medical and Safety, Retail and Payment Systems, Semiconductors and Telecom, Networking and Communications; and Test and Measurement industries. As a mid-size provider of end-to-end EMS, SMTC provides printed circuit boards assemblies production, systems integration and comprehensive testing services, enclosure fabrication, as well as product design, sustaining engineering and supply chain management services. SMTC services extend over the entire electronic product life cycle from the development and introduction of new products through to the growth, maturity and end-of-life phases. For further information on SMTC Corporation, please visit our website at www.smtc.com.

   
   
Consolidated Statements of Operations and Comprehensive Income   
         
 Three months ended Twelve months ended
(Expressed in thousands of U.S. dollars, except number of shares and per share amounts)December 29, 2019  December 30, 2018 December 29, 2019 December 30, 2018
(unaudited)        
         
Revenue$90,244   $80,855  $372,511  $216,131 
Cost of sales 79,750    72,564   335,490   194,470 
Gross profit 10,494    8,291   37,021   21,661 
Selling, general and administrative expenses 7,132    7,224   27,040   18,062 
Change in fair value of contingent consideration -    -   (3,050)  - 
Change in fair value of warrant liability 640    111   (279)  111 
Write-down of property,plant and equipment -    -   -   - 
Loss on disposal of property,plant and equipment -    (33)  -   (30)
Restructuring charges (669)   18   7,955   172 
         
Operating earnings 3,391    971   5,355   3,346 
Interest expense 2,213    1,922   10,562   3,117 
Income (loss) before income taxes 1,178    (951)  (5,207)  229 
Income tax expense (recovery)        
Current 356    156   948   752 
Deferred (174)   116   (160)  (75)
  182    272   788   677 
Net income (loss) and comprehensive income (loss)$996   $(1,223) $(5,995) $(448)
         
Basic income (loss) per share$0.04   $(0.05) $(0.23) $(0.02)
Diluted income (loss) per share$0.04   $(0.05) $(0.23) $(0.02)
         
Weighted average number of shares outstanding        
Basic 28,117,372    23,105,597   25,745,499   19,176,198 
Diluted 28,117,372    23,105,597   25,745,499   19,176,198 
         


Consolidated Balance Sheets    
(Expressed in thousands of U.S. dollars) December 29,
2019
 December 30,
2018
(unaudited)        
Assets        
         
Current assets:        
Cash $1,368  $1,601 
Accounts receivable - net  69,919   72,986 
Unbilled contract assets  26,271   20,405 
Inventories - net  47,826   53,203 
Prepaid expenses and other assets  7,044   5,548 
Derivative assets  -   15 
Income taxes receivable  -   160 
   152,428   153,918 
Property, plant and equipment - net  25,310   28,160 
Operating lease right of use assets - net  3,330   - 
Goodwill  18,165   18,165 
Intangible assets - net  12,747   19,935 
Deferred income taxes - net  540   380 
Deferred financing costs - net  859   668 
Total assets $213,379  $221,226 
         
Liabilities and Shareholders' Equity        
         
Current liabilities:        
Revolving credit facility $
34,701  $25,020 
Accounts payable  74,126   76,893 
Accrued liabilities  11,164   13,040 
Warrant liability  1,730   2,009 
Restructuring liability  1,597   - 
Contingent consideration  -   3,050 
Income taxes payable  157   12 
Current portion of long-term debt  1,250   1,368 
Current portion of operating lease obligations  1,128   - 
Current portion of finance lease obligations  1,226   1,547 
   127,079   122,939 
         
Long-term debt  33,750   56,039 
Operating lease obligations  2,615   - 
Finance lease obligations  8,838   9,947 
Total liabilities  172,282   188,925 
         
Shareholders’ equity:        
Capital stock  508   458 
Additional paid-in capital  293,389   278,648 
Deficit  (252,800)  (246,805)
   41,097   32,301 
Total liabilities and shareholders' equity $213,379  $221,226 
         
         


Consolidated Statements of Cash Flows        
     
(Expressed in thousands of U.S. dollars)    
(unaudited) Three months ended
 Twelve months ended
Cash provided by (used in): December 29,
2019

 December 30,
2018

 December 29,
2019

 December 30,
2018

                 
Operations:                
Net income (loss) $996  $(1,223) $(5,995) $(448)
Items not involving cash:                
Depreciation on property, plant and equipment  1,646   1,365   6,548   3,791 
Amortization of Intangible assets  1,656   1,065   7,188   1,065 
Unrealized foreign exchange gain on unsettled forward                
exchange contracts  -   (15)  -   (353)
Write down of property, plant and equipment  (103)  -   158   - 
Gain on disposal of property, plant and equipment  -   (33)  -   (30)
Deferred income taxes (recovery)  (174)  116   (160)  (75)
Amortization of deferred financing fees  292   160   1,592   194 
Stock-based compensation  237   129   775   407 
Change in fair value of warrant liability  640   111   (279)  111 
Change in fair value of contingent consideration  -   -   (3,050)  - 
                 
Change in non-cash operating working capital:                
Accounts receivable  (8,711)  (11,917)  3,067   (24,030)
Unbilled contract assets  519   (11,902)  (5,866)  (7,949)
Inventories  1,709   9,066   5,377   (8,027)
Prepaid expenses and other assets  77   119   (1,018)  (883)
Income taxes payable  421   (164)  305   (179)
Accounts payable  7,233   7,116   (2,612)  23,698 
Accrued liabilities  (1,610)  3,602   (1,875)  4,921 
Restructuring liability  (1,139)  (79)  1,597   - 
Net change in operating lease right of use asset and liability  (464)  -   (50)  - 
   3,225   (2,484)  5,702   (7,787)
Financing:                
Net advances of revolving credit facility  (139)  8,314   9,681   12,829 
Repayments of long-term debt  (625)  (6,500)  (23,250)  (8,000)
Net advances of long-term debt  -   62,000   -   62,000 
Principal repayments of finance lease obligations  (366)  (298)  (1,565)  (487)
Repayment of equipment facility  -   (2,629)  -   - 
Purchase treasury stock  (75)  -   (75)  - 
Proceeds from issuance of stock options  1   -   46   361 
Proceeds from issuance of common stock through rights offering  -   -   14,044   12,587 
Proceeds from discontinued operations                
Debt issuance and deferred financing fees  (569)  (3,415)  (940)  (3,463)
   (1,773)  57,472   (2,059)  75,827 
Investing:                
Acquisition of MC Assembly - net of cash acquired  -   (67,600)  -   (67,600)
Acquisition of business, net of cash acquired  -   -   -   - 
Purchase of property, plant and equipment  (685)  (511)  (3,876)  (4,410)
Proceeds from leaseholding improvement              - 
Proceeds from sale of property, plant and equipment  -   35   -   35 
   (685)  (68,076)  (3,876)  (71,975)
Decrease in cash  767   (13,088)  (233)  (3,935)
Cash, beginning of period  601   14,689   1,601   5,536 
Cash, end of the period $1,368  $1,601  $1,368  $1,601 
                 
      


Supplementary Information:
Reconciliation of Adjusted Gross Profit and Adjusted Gross Profit Percentage
(unaudited)Three months ended Twelve months ended
 December 29,
2019
  December 30,
2018
 December 29,
2019
 December 30,
2018
         
Gross Profit$10,494   $8,291  $37,021  $21,661 
Add (deduct):        
Amortization of intangible assets 1,656    1,065   7,188   1,065 
Unrealized foreign exchange gains or losses        
on unsettled forward exchange contracts -    (15)  -   (353)
         
Adjusted Gross Profit$12,150   $9,341  $44,209  $22,373 
Adjusted Gross Profit Percentage 13.5%   11.6%  11.9%  10.4%


Supplementary Information:       
Reconciliation of Adjusted Net Income     
(unaudited)Three months endedTwelve months ended
 December 29,
2019
 December 30,
2018
December 29,
2019
 December 30,
2018
Net income (loss)$996  $(1,223)$(5,995) $(448)
       
add back      
Amortization of intangible assets 1,656   1,065  7,188   1,065 
Restructuring charges (669)  18  7,955   172 
Stock compensation expense 238   129  776   407 
Fair value adjustment of warrant liability 640   111  (279)  111 
Merger and acquisitions related expenses 54   1,676  286   1,676 
Fair value adjustment of contingent consisderation -   -  (3,050)  - 
Unrealized foreign exchange gains or losses      
on unsettled forward exchange contracts -   (15) -   (353)
Adjusted net income$
2,915  $
1,761 $
6,881  $
2,630 
       


Supplementary Information:
Reconciliation of EBITDA, EBITDA Percentage, Adjusted EBITDA and Adjusted EBITDA Percentage
 
(unaudited) Three months ended Twelve months ended
  December 29,
2019
 December 30,
2018
 December 29,
2019
 December 30,
2018
         
Net income (loss) $996  $(1,223) $(5,995) $(448)
Add (deduct):        
Interest  2,213   1,922   10,562   3,117 
Taxes  182   272   788   677 
Depreciation of property, plant and equipment  1,646   1,365   6,548   3,791 
Amortization of Intangible assets  1,656   1,065   7,188   1,065 
         
EBITDA $6,693  $3,401  $19,091  $8,202 
         
Add (deduct):        
Restructuring charges  (669)  18   7,955   172 
Stock compensation expense  238   129   776   407 
Fair value adjustment of warrant liability  640   111   (279)  111 
Merger and acquisitions related expenses  54   1,676   286   1,676 
Fair value adjustment of contingent consideration  -   -   (3,050)  - 
Unrealized foreign exchange gains or losses        
on unsettled forward exchange contracts  -   (15)  -   (353)
         
Adjusted EBITDA $6,956  $5,320  $24,779  $10,215 
Adjusted EBITDA Percentage  7.7%  6.6%  6.7%  4.7%
         


Supplementary Information:    
Reconciliation of Net Debt   
(unaudited)   
  December 29,
2019
December 30,
2018
Total Debt   
Revolving credit facility $34,701 25,020 
Long-term debt  38,750 62,000 
Discount (long-term debt)  (3,750)(4,593)
Finance lease obligations  10,064 11,494 
Operating lease obligations  3,743 - 
  $83,508 93,921 
Cash  (1,368)(1,601)
Net Debt $82,140 92,320 
    


Supplementary Information:     
Pro-forma Consolidated Statements of Operations and Comprehensive Loss
(Unaudited)    
  Three months ended
  SMTCMC AssemblyProforma
  December 30,
2018
December 30,
2018
December 30,
2018
Revenue $57,325 $41,411 $98,736 
Cost of sales  52,305  38,195  90,500 
Gross profit  5,020  3,216  8,236 
Selling, general and administrative expenses  5,879  3,990  9,869 
Impairment of property,plant and equipment  -  (3) (3)
Change in fair value of warrant liability  -  111  111 
Restructuring charges  18  11  29 
Operating earnings (loss)  (877) (893) (1,770)
Interest expense  1,799  558  2,357 
Loss before income taxes  (2,676) (1,451) (4,127)
Income tax expense  214  31  245 
Net loss, also being comprehensive loss $(2,890)$(1,482)$(4,372)


Supplementary Information:     
Pro-forma Consolidated Statements of Operations and Comprehensive Loss 
(Unaudited)    
  Twelve months ended
  SMTCMC AssemblyProforma
  December 30, 2018December 30, 2018December 30,
2018
     
Revenue $192,601 $152,593 $345,194 
Cost of sales  174,211  142,215  316,426 
Gross profit  18,390  10,378  28,768 
Selling, general and administrative expenses  16,717  11,581  28,298 
Restructuring charges  172  253  425 
Gain on disposal of property, plant and equipment  3  (3) - 
     
Operating income (loss)  1,498  (1,453) 45 
Interest expense  2,994  7,164  10,158 
Loss before income taxes  (1,496) (8,617) (10,113)
Income tax expense   -  
Current  619  312  931 
Deferred  -  -  - 
   619  312  931 
Net income, and comprehensive income $(2,115)$(8,929)$(11,044)
     


Supplementary Information:
Reconciliation of Pro-forma Adjusted Gross Profit and Pro-forma Adjusted Gross Profit Percentage
(Unaudited)   
 Three months ended
 SMTCMC AssemblyProforma
 December 30,
2018
December 30,
2018
December 30,
2018
Gross Profit$5,020 $3,216 $8,236 
Add (deduct):   
Amortization of intangible assets 1,065  591  1,656 
Unrealized foreign exchange gains or losses   
on unsettled forward exchange contracts (15) (57) (72)
Adjusted Gross Profit$6,070 $3,750 $9,820 
Adjusted Gross Profit % 10.6% 9.1% 9.9%


Supplementary Information:
Reconciliation of Pro-forma Adjusted Gross Profit and Pro-forma Adjusted Gross Profit Percentage
(unaudited)   
 Twelve months ended
 SMTCMC AssemblyProforma
 December 30,
2018
December 30,
2018
December 30,
2018
    
Gross Profit$18,390 $10,378 $28,768 
Add (deduct):   
Amortization of intangible assets 1,065  6,310  7,375 
Unrealized foreign exchange gains or losses   
on unsettled forward exchange contracts (353) (38) (391)
Adjusted Gross Profit$19,102 $16,650 $35,752 
Adjusted Gross Profit % 9.9% 10.9% 10.4%


Supplementary Information:     
Reconciliation of Pro-forma Adjusted Net Income  
(Unaudited)    
  Three months ended
  SMTCMC AssemblyProforma
  December 30,
2018
December 30,
2018
December 30,
2018
Net Loss $(2,890)$(1,482)$(4,372)
     
Add (deduct):    
     
Amortization of intangible assets  1,065  591  1,656 
Restructuring charges  18  11  29 
Stock compensation expense  129  -  129 
Fair value adjustment of warrant liability  111  -  111 
Merger and acquisitions related expenses  1,676  -  1,676 
Fair value adjustment of contingent consideration  1,258  1,258 
Unrealized foreign exchange gains or losses  (15) (57) (72)
Adjusted Net Income $94 $321 $415 
     


Supplementary Information:      
Reconciliation of Pro-forma Adjusted Net Income    
(unaudited)     
 Twelve months ended
 SMTC MC Assembly Proforma
 December 30,
2018
 December 30,
2018
 December 30,
2018
Net Loss$(2,115) $(8,929) $(11,044)
      
add back     
      
Amortization of intangible assets 1,065   6,310   7,375 
Restructuring charges 172   253   425 
Stock compensation expense 407   -   407 
Fair value adjustment of warrant liability 111   -   111 
Merger and acquisitions related expenses 1,676   -   1,676 
Management fees and other professional services -   1,258   1,258 
Unrealized foreign exchange gains or losses (353)  (38)  (391)
on unsettled forward exchange contracts     
Adjusted Net Income (Loss)$
963  $
(1,146) $
(183)
      


Supplementary Information:     
Reconciliation of Pro-forma EBITDA and Pro-forma Adjusted EBITDA Percentage
(Unaudited)    
  Three months ended
  SMTCMC AssemblyProforma
  December 30,
2018
December 30,
2018
December 30,
2018
     
Net income $(2,890)$(1,482)$(4,372)
Add (deduct):    
Interest  1,799  1,712  3,511 
Taxes  214  100  314 
Depreciation of property, plant and equipment  879  1,390  2,269 
Amortization of Intangible  1,065  591  1,656 
     
EBITDA $1,067 $2,311 $3,378 
     
Add (deduct):    
Restructuring charges  18  11  29 
Stock compensation expense  129  -  129 
Fair value adjustment of warrant liability  111  -  111 
Merger and acquisitions related expenses  1,676  -  1,676 
Fair value adjustment of contingent consideration  -  1,258  1,258 
Unrealized foreign exchange gains or losses  (15) (57) (72)
on unsettled forward exchange contracts    
     
Adjusted EBITDA $2,986 $3,523 $6,509 
Adjusted EBITDA %  5.2% 8.5% 6.6%



Supplementary Information:    
Reconciliation of Proforma EBITDA and Adjusted EBITDA Percentage 
(unaudited)    
  Twelve months ended
  SMTCMC AssemblyProforma
  December 30,
2018
December 30,
2018
December 30,
2018
     
Net income $(2,115)$(8,929)$(11,044)
Add (deduct):    
Interest  2,994  7,164  10,158 
Taxes  619  312  931 
Depreciation of property, plant and equipment  3,305  3,879  7,184 
Amortization of intanible assets  1,065  6,310  7,375 
EBITDA $5,868 $8,736 $14,604 
     
Add (deduct):    
Restructuring charges  172  253  425 
Stock compensation expense  407  -  407 
Fair value adjustment of warrant liability  111  -  111 
Merger and acquisitions related expenses  1,676  -  1,676 
Fair value adjustment of contingent consideration  -  1,258  1,258 
Unrealized foreign exchange gains or losses    
on unsettled forward exchange contracts  (353) (38) (391)
Adjusted EBITDA $7,881 $10,209 $18,090 
Adjusted EBITDA %  4.1% 6.7% 5.2%
     


Supplementary Information:   
Reconciliation of Fiscal 2020 Guidance
(unaudited) 
 FY 2020
  
Net income$9,000
Add:  
Depreciation 7,350
Amortization of Intangible assets 3,050
Interest 8,600
Income tax expense 1,500
   
EBITDA$29,500
   
Add:  
Stock compensation expense 500
   
Adjusted EBITDA$30,000
   

Investor Relations Contact

Peter Seltzberg
Managing Director
Darrow Associates, Inc.
516-419-9915
pseltzberg@darrowir.com