ELK GROVE VILLAGE, IL – SigmaTron International Inc. (NASDAQ:SGMA), a manufacturing company specializing in printed circuit boards, announced the outcomes of several key votes taken during its 2024 Annual Meeting of Stockholders held on Tuesday. The votes concerned the election of directors, ratification of accountants, and advisory votes on executive compensation and its frequency.
Shareholders re-elected Linda K. Frauendorfer, Bruce J. Mantia, and John P. Sheehan as Class I Directors, with their terms set to expire at the 2027 Annual Meeting. The votes cast for each nominee were 2,125,366, 1,938,565, and 2,131,957, respectively, with withheld votes and broker non-votes also recorded.
Additionally, the company's selection of BDO USA, P.C. as its registered public accountants for the fiscal year ending April 30, 2025, was ratified with a significant majority of 3,599,228 shares in favor.
In advisory votes, stockholders approved the compensation of the company's Named Executive Officers with 1,897,644 shares in favor. Moreover, the majority of shareholders recommended that future advisory votes on executive compensation occur annually. This resulted in a decision by the Board of Directors to hold such votes on an annual basis until the next frequency vote is due.
In other recent news, SigmaTron International has successfully regained Nasdaq compliance by filing its annual report for the period ending April 2024. This follows a previous notification from Nasdaq stating that SigmaTron was not in compliance due to a delay in filing its annual Form 10-K report. Furthermore, SigmaTron has made key changes to its credit agreements with JPMorgan Chase (NYSE:JPM) Bank and other financial institutions, including amendments to existing credit arrangements and modifications to financial ratios.
The company has also announced the retirement of Executive Vice President and Assistant Secretary Greg A. Fairhead, scheduled for August 2024, along with the appointment of John P. Sheehan, currently serving as the company's President, as a Class I Director.
In addition, SigmaTron has agreed to pursue a Replacement Transaction by September 2025 unless it achieves a specific Total Debt to EBITDA Ratio by the end of August 2025. These are all recent developments in the company's operations and strategies.
InvestingPro Insights
SigmaTron International Inc.'s recent annual meeting results come against a backdrop of financial challenges, as revealed by InvestingPro data. The company's market capitalization stands at a modest $17.2 million, reflecting recent stock price declines. InvestingPro Tips indicate that SGMA's stock price has fallen significantly over the last three and six months, with the current price at only 43.43% of its 52-week high.
The company's financial health appears strained, with InvestingPro data showing a negative P/E ratio of -2.85 and a revenue decline of 11.5% over the last twelve months. An InvestingPro Tip highlights that SGMA is not profitable over this period, which may explain shareholders' interest in annual advisory votes on executive compensation.
Despite these challenges, SGMA is trading at a low Price / Book multiple of 0.27, as noted by another InvestingPro Tip. This could suggest that the stock might be undervalued, though investors should consider the company's profitability issues and declining revenues.
For readers seeking a more comprehensive analysis, InvestingPro offers 7 additional tips for SGMA, providing deeper insights into the company's financial position and market performance.
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