FORWARD-LOOKING STATEMENTS
This release includes certain “forward-looking” statements as defined by the Securities and Exchange Commission. Statements in this press release regarding the Company's business which are not historical facts represent “forward-looking” statements that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Item 1A, “Risk Factors” in the Company's Annual Report on Form 10-K filed on July 25, 2014. The Company assumes no responsibility to update the “forward-looking” statements in this release as a result of new information, future events, or otherwise.
ABOUT RICHARDSON ELECTRONICS, LTD.
Richardson Electronics, Ltd. is a leading global provider of engineered solutions, power grid and microwave tubes and related consumables, and customized display solutions serving customers in the alternative energy, aviation, broadcast, communications, industrial, marine, medical, military, scientific and semiconductor markets. The Company's strategy is to provide specialized technical expertise and “engineered solutions” based on our core engineering and manufacturing capabilities. The Company provides solutions and adds value through design-in support, systems integration, prototype design and manufacturing, testing, logistics, and aftermarket technical service and repair. More information is available online at www.rell.com.
Richardson Electronics common stock trades on the NASDAQ Global Select Market under the ticker symbol RELL.
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Richardson Electronics, Ltd. |
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Consolidated Balance Sheets |
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(in thousands, except per share amounts) |
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| Unaudited | Audited | |||||||
| August 30, | May 31, | |||||||
| 2014 | 2014 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 98,084 | $ | 102,752 | ||||
| Accounts receivable, less allowance of $564 and $581 | 18,494 | 18,354 | ||||||
| Inventories | 35,620 | 33,869 | ||||||
| Prepaid expenses and other assets | 936 | 1,089 | ||||||
| Deferred income taxes | 1,803 | 1,537 | ||||||
| Income tax receivable | 580 | 2,888 | ||||||
| Investments—current | 26,362 | 31,732 | ||||||
| Discontinued operations—assets | — | 18 | ||||||
| Total current assets | 181,879 | 192,239 | ||||||
| Non-current assets: | ||||||||
| Property, plant and equipment, net | 7,723 | 7,223 | ||||||
| Other intangibles | 820 | 843 | ||||||
| Non-current deferred income taxes | 1,686 | 1,724 | ||||||
| Investments—non-current | 8,797 | 1,516 | ||||||
| Total non-current assets | 19,026 | 11,306 | ||||||
| Total assets | $ | 200,905 | $ | 203,545 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 12,336 | $ | 12,337 | ||||
| Accrued liabilities | 8,490 | 9,220 | ||||||
| Discontinued operations—liabilities | — | 7 | ||||||
| Total current liabilities | 20,826 | 21,564 | ||||||
| Non-current liabilities: | ||||||||
| Long-term income tax liabilities | 5,876 | 5,691 | ||||||
| Other non-current liabilities | 1,296 | 1,315 | ||||||
| Discontinued operations—non-current liabilities | 126 | 130 | ||||||
| Total non-current liabilities | 7,298 | 7,136 | ||||||
| Total liabilities | 28,124 | 28,700 | ||||||
| Commitments and contingencies | — | — | ||||||
| Stockholders’ equity | ||||||||
| Common stock, $0.05 par value; issued 11,906 shares at August 30, 2014, and 11,835 shares at May 31, 2014 | 595 | 592 | ||||||
| Class B common stock, convertible, $0.05 par value; issued 2,141 shares at August 30, 2014 and 2,191 shares at May 31, 2014 | 107 | 110 | ||||||
| Preferred stock, $1.00 par value, no shares issued | — | — | ||||||
| Additional paid-in-capital | 66,419 | 66,141 | ||||||
| Common stock in treasury, at cost, 50 shares at August 30, 2014, and 1 share at May 31, 2014 | (501 | ) | (14 | ) | ||||
| Retained earnings | 97,048 | 97,959 | ||||||
| Accumulated other comprehensive income | 9,113 | 10,057 | ||||||
| Total stockholders’ equity | 172,781 | 174,845 | ||||||
| Total liabilities and stockholders’ equity | $ | 200,905 | $ | 203,545 | ||||
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Richardson Electronics, Ltd. |
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Unaudited Consolidated Statements of Comprehensive Income (Loss) |
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(in thousands, except per share amounts) |
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| Three Months Ended | ||||||||
| August 30, | August 31, | |||||||
| 2014 | 2013 | |||||||
| Statements of Comprehensive Income (Loss) | ||||||||
| Net Sales | $ | 34,699 | $ | 34,257 | ||||
| Cost of Sales | 24,041 | 24,065 | ||||||
| Gross profit | 10,658 | 10,192 | ||||||
| Selling, general, and administrative expenses | 11,182 | 10,069 | ||||||
| Gain on disposal of assets | 9 | — | ||||||
| Operating income (loss) | (533 | ) | 123 | |||||
| Other (income) expense: | ||||||||
| Investment/interest income | (256 | ) | (265 | ) | ||||
| Foreign exchange (gain) loss | (57 | ) | 106 | |||||
| Proceeds from legal settlement | — | (2,115 | ) | |||||
| Other, net | (2 | ) | (30 | ) | ||||
| Total other income | (315 | ) | (2,304 | ) | ||||
| Income (loss) from continuing operations before income taxes | (218 | ) | 2,427 | |||||
| Income tax provision (benefit) | (135 | ) | 448 | |||||
| Income (loss) from continuing operations | (83 | ) | 1,979 | |||||
| Loss from discontinued operations, net of tax | — | (11 | ) | |||||
| Net income (loss) | (83 | ) | 1,968 | |||||
| Foreign currency translation gain (loss), net of tax | (968 | ) | 425 | |||||
| Fair value adjustments on investments | 25 | 1 | ||||||
| Comprehensive income (loss) | $ | (1,026 | ) | $ | 2,394 | |||
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Net income (loss) per Common share - Basic: |
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| Income (loss) from continuing operations | $ | (0.01 | ) | $ | 0.14 | |||
| Income (loss) from discontinued operations | — | — | ||||||
| Total net income (loss) per Common share - Basic: | $ | (0.01 | ) | $ | 0.14 | |||
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Net income (loss) per Class B common share - Basic: |
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| Income (loss) from continuing operations | $ | (0.01 | ) | $ | 0.13 | |||
| Income (loss) from discontinued operations | — | — | ||||||
| Total net income (loss) per Class B common share - Basic: | $ | (0.01 | ) | $ | 0.13 | |||
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Net income (loss) per Common share - Diluted: |
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| Income (loss) from continuing operations | $ | (0.01 | ) | $ | 0.14 | |||
| Income (loss) from discontinued operations | — | — | ||||||
| Total net income (loss) per Common share - Diluted: | $ | (0.01 | ) | $ | 0.14 | |||
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Net income (loss) per Class B common share - Diluted: |
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| Income (loss) from continuing operations | $ | (0.01 | ) | $ | 0.13 | |||
| Income (loss) from discontinued operations | — | — | ||||||
| Total net income (loss) per Class B common share - Diluted: | $ | (0.01 | ) | $ | 0.13 | |||
| Weighted average number of shares: | ||||||||
| Common shares - Basic | 11,822 | 12,127 | ||||||
| Class B common shares - Basic | 2,182 | 2,428 | ||||||
| Common shares - Diluted | 11,822 | 14,688 | ||||||
| Class B common shares - Diluted | 2,182 | 2,428 | ||||||
| Dividends per common share | $ | 0.060 | $ | 0.060 | ||||
| Dividends per Class B common share | $ | 0.054 | $ | 0.054 | ||||
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Richardson Electronics, Ltd. |
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Consolidated Statements of Cash Flows |
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(in thousands) |
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| Three Months Ended | ||||||||
| August 30, | August 31, | |||||||
| 2014 | 2013 | |||||||
| Operating activities: | ||||||||
| Net income (loss) | $ | (83 | ) | $ | 1,968 | |||
| Adjustments to reconcile net income to cash provided by (used in) operating activities: | ||||||||
| Depreciation and amortization | 366 | 248 | ||||||
| Gain on sale of investments | (3 | ) | (7 | ) | ||||
| Share-based compensation expense | 120 | 114 | ||||||
| Deferred income taxes | (79 | ) | (59 | ) | ||||
| Change in assets and liabilities, net of effect of acquired businesses: | ||||||||
| Accounts receivable | (372 | ) | (1,218 | ) | ||||
| Income tax receivable | 2,308 | 2,751 | ||||||
| Inventories | (2,110 | ) | (450 | ) | ||||
| Prepaid expenses and other assets | 135 | 156 | ||||||
| Accounts payable | 101 | (2,547 | ) | |||||
| Accrued liabilities | (662 | ) | (1,890 | ) | ||||
| Long-term income tax liabilities | — | (242 | ) | |||||
| Other | (49 | ) | (9 | ) | ||||
| Net cash used in operating activities | (328 | ) | (1,185 | ) | ||||
| Investing activities: | ||||||||
| Cash consideration paid for acquired businesses | — | (973 | ) | |||||
| Capital expenditures | (834 | ) | (441 | ) | ||||
| Proceeds from maturity of investments | 30,482 | 40,488 | ||||||
| Purchases of investments | (32,362 | ) | (40,094 | ) | ||||
| Proceeds from sales of available-for-sale securities | 37 | 56 | ||||||
| Purchases of available-for-sale securities | (37 | ) | (56 | ) | ||||
| Other | (28 | ) | 69 | |||||
| Net cash used in investing activities | (2,742 | ) | (951 | ) | ||||
| Financing activities: | ||||||||
| Repurchase of common stock | (488 | ) | (6,700 | ) | ||||
| Proceeds from issuance of common stock | 158 | 71 | ||||||
| Cash dividends paid | (828 | ) | (857 | ) | ||||
| Other | 1 | 1 | ||||||
| Net cash used in financing activities | (1,157 | ) | (7,485 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents | (441 | ) | 149 | |||||
| Decrease in cash and cash equivalents | (4,668 | ) | (9,472 | ) | ||||
| Cash and cash equivalents at beginning of period | 102,752 | 102,002 | ||||||
| Cash and cash equivalents at end of period | $ | 98,084 | $ | 92,530 | ||||
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Richardson Electronics, Ltd. |
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Net Sales and Gross Profit |
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For the First Quarter of Fiscal 2015 and Fiscal 2014 |
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(in thousands) |
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By Strategic Business Unit: |
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Net Sales |
Q1 | Q1 | |||||||||||
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FY 2015 |
FY 2014 |
% Change |
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| EDG | $ | 27,438 | $ | 25,479 | 7.7% | ||||||||
| Canvys | 5,968 | 7,446 | (19.8%) | ||||||||||
| Healthcare | 1,293 | $ | 1,332 | (2.9%) | |||||||||
| Total | $ | 34,699 | $ | 34,257 | 1.3% | ||||||||
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Gross Profit |
Q1 | Q1 | |||||||||||
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FY 2015 |
% of Net Sales |
FY 2014 |
% of Net Sales |
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| EDG | $ | 8,686 | 31.7% | $ | 7,859 | 30.8% | |||||||
| Canvys | 1,656 | 27.7% | 1,903 | 25.6% | |||||||||
| Healthcare | 316 | 24.4% | 430 | 32.3% | |||||||||
| Total | $ | 10,658 | 30.7% | $ | 10,192 | 29.8% | |||||||
