The Company also announced today that its Board of Directors declared a $0.06 quarterly dividend per share to holders of common stock and a $0.054 cash dividend per share to holders of Class B common stock. The dividend will be payable on May 22, 2015, to common stockholders of record on May 7, 2015.
“Cash and investments at the end of our third quarter were $113.8 million. Impact of foreign exchange rates for the first nine months on cash and investments was a decline of $4.7 million. In addition, we used $1,304,478 to repurchase 134,300 shares during the third quarter. Since we initiated our share repurchase program in 2011, we have invested $60,389,250 to repurchase 4,965,562 shares. As of today, the Company currently has 11,529,333 outstanding shares of common stock and 2,140,644 outstanding shares of Class B common stock. With our strong balance sheet, we are committed to continued implementation of our growth strategy and returning value to our shareholders,” said Mr. Richardson.
CONFERENCE CALL INFORMATION
On Thursday, April 9, 2015, at 9:00 a.m. CT, Edward J. Richardson, Chairman and Chief Executive Officer, and Kathleen S. Dvorak, Chief Financial Officer, will host a conference call to discuss the Company's third quarter results for fiscal 2015. A question and answer session will be included as part of the call's agenda. To listen to the call, please dial (888) 339-2688 and enter passcode 24886741 approximately five minutes prior to the start of the call. A replay of the call will be available beginning at 11:00 a.m. CT on April 9, 2015, for seven days. The telephone numbers for the replay are (USA) (888) 286-8010 and (International) (617) 801-6888; passcode 54585568.
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) |
||||||||
| Unaudited | Audited | |||||||
| February 28, | May 31, | |||||||
| 2015 | 2014 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 78,398 | $ | 102,752 | ||||
| Accounts receivable, less allowance of $477 and $581 | 19,113 | 18,354 | ||||||
| Inventories, net | 35,915 | 33,869 | ||||||
| Prepaid expenses and other assets | 1,549 | 1,089 | ||||||
| Deferred income taxes | 1,343 | 1,537 | ||||||
| Income tax receivable | — | 2,888 | ||||||
| Investments—current | 23,645 | 31,732 | ||||||
| Discontinued operations—assets | — | 18 | ||||||
| Total current assets | 159,963 | 192,239 | ||||||
| Non-current assets: | ||||||||
| Property, plant and equipment, net | 9,145 | 7,223 | ||||||
| Other intangibles, net | 765 | 843 | ||||||
| Non-current deferred income taxes | 1,422 | 1,724 | ||||||
| Investments—non-current | 11,793 | 1,516 | ||||||
| Total non-current assets | 23,125 | 11,306 | ||||||
| Total assets | $ | 183,088 | $ | 203,545 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 11,234 | $ | 12,337 | ||||
| Accrued liabilities | 8,226 | 9,220 | ||||||
| Discontinued operations—liabilities | — | 7 | ||||||
| Total current liabilities | 19,460 | 21,564 | ||||||
| Non-current liabilities: | ||||||||
| Non-current deferred income taxes | 2,664 | 5,691 | ||||||
| Other non-current liabilities | 1,144 | 1,315 | ||||||
| Discontinued operations—non-current liabilities | — | 130 | ||||||
| Total non-current liabilities | 3,808 | 7,136 | ||||||
| Total liabilities | 23,268 | 28,700 | ||||||
| Commitments and contingencies | — | — | ||||||
| Stockholders’ equity | ||||||||
| Common stock, $0.05 par value; issued 11,529 shares at February 28, 2015, and 11,835 shares at May 31, 2014 | 576 | 592 | ||||||
| Class B common stock, convertible, $0.05 par value; issued 2,141 shares at February 28, 2015, and 2,191 shares at May 31, 2014 | 107 | 110 | ||||||
| Preferred stock, $1.00 par value, no shares issued | — | — | ||||||
| Additional paid-in capital | 63,031 | 66,141 | ||||||
| Common stock in treasury, at cost, no shares at February 28, 2015, and 1 share at May 31, 2014 | — | (14 | ) | |||||
| Retained earnings | 92,168 | 97,959 | ||||||
| Accumulated other comprehensive income | 3,938 | 10,057 | ||||||
| Total stockholders’ equity | 159,820 | 174,845 | ||||||
| Total liabilities and stockholders’ equity | $ | 183,088 | $ | 203,545 | ||||
| Richardson Electronics, Ltd. | ||||||||||||||||
| Unaudited Consolidated Statements of Comprehensive Income (Loss) | ||||||||||||||||
|
(in thousands, except per share amounts) |
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| Three Months Ended | Nine Months Ended | |||||||||||||||
| February 28, | March 1, | February 28, | March 1, | |||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| Net Sales | $ | 33,471 | $ | 32,884 | $ | 102,011 | $ | 102,577 | ||||||||
| Cost of Sales | 23,671 | 23,233 | 71,091 | 71,727 | ||||||||||||
| Gross profit | 9,800 | 9,651 | 30,920 | 30,850 | ||||||||||||
| Selling, general, and administrative expenses | 12,563 | 10,537 | 36,366 | 31,079 | ||||||||||||
| Gain on disposal of assets | (14 | ) | — | (5 | ) | — | ||||||||||
| Operating loss | (2,749 | ) | (886 | ) | (5,441 | ) | (229 | ) | ||||||||
| Other (income) expense: | ||||||||||||||||
| Investment/interest income | (239 | ) | (277 | ) | (744 | ) | (797 | ) | ||||||||
| Foreign exchange (gain) loss | (275 | ) | 31 | (285 | ) | 123 | ||||||||||
| Proceeds from legal settlement | — | (432 | ) | — | (2,547 | ) | ||||||||||
| Other, net | (6 | ) | (21 | ) | (22 | ) | (36 | ) | ||||||||
| Total other income | (520 | ) | (699 | ) | (1,051 | ) | (3,257 | ) | ||||||||
| Income (loss) from continuing operations before income taxes | (2,229 | ) | (187 | ) | (4,390 | ) | 3,028 | |||||||||
| Income tax provision (benefit) | (31 | ) | (75 | ) | (965 | ) | 530 | |||||||||
| Income (loss) from continuing operations | (2,198 | ) | (112 | ) | (3,425 | ) | 2,498 | |||||||||
| Income (loss) from discontinued operations, net of tax | — | (420 | ) | 87 | (538 | ) | ||||||||||
| Net income (loss) | (2,198 | ) | (532 | ) | (3,338 | ) | 1,960 | |||||||||
| Foreign currency translation gain (loss), net of tax | (2,188 | ) | 258 | (6,149 | ) | 1,879 | ||||||||||
| Fair value adjustments on investments | 5 | 6 | 30 | 29 | ||||||||||||
| Comprehensive income (loss) | $ | (4,381 | ) | $ | (268 | ) | $ | (9,457 | ) | $ | 3,868 | |||||
| Net income (loss) per Common share - Basic: | ||||||||||||||||
| Income (loss) from continuing operations | $ | (0.16 | ) | $ | (0.01 | ) | $ | (0.25 | ) | $ | 0.18 | |||||
| Income (loss) from discontinued operations | — | (0.03 | ) | 0.01 | (0.04 | ) | ||||||||||
| Total net income (loss) per Common share - Basic | $ | (0.16 | ) | $ | (0.04 | ) | $ | (0.24 | ) | $ | 0.14 | |||||
| Net income (loss) per Class B common share - Basic: | ||||||||||||||||
| Income (loss) from continuing operations | $ | (0.15 | ) | $ | (0.01 | ) | $ | (0.22 | ) | $ | 0.16 | |||||
| Income (loss) from discontinued operations | — | (0.03 | ) | 0.01 | (0.03 | ) | ||||||||||
| Total net income (loss) per Class B common share - Basic | $ | (0.15 | ) | $ | (0.04 | ) | $ | (0.21 | ) | $ | 0.13 | |||||
| Net income (loss) per Common share - Diluted: | ||||||||||||||||
| Income (loss) from continuing operations | $ | (0.16 | ) | $ | (0.01 | ) | $ | (0.25 | ) | $ | 0.17 | |||||
| Income (loss) from discontinued operations | — | (0.03 | ) | 0.01 | (0.04 | ) | ||||||||||
| Total net income (loss) per Common share - Diluted | $ | (0.16 | ) | $ | (0.04 | ) | $ | (0.24 | ) | $ | 0.13 | |||||
| Net income (loss) per Class B common share - Diluted: | ||||||||||||||||
| Income (loss) from continuing operations | $ | (0.15 | ) | $ | (0.01 | ) | $ | (0.22 | ) | $ | 0.16 | |||||
| Income (loss) from discontinued operations | — | (0.03 | ) | 0.01 | (0.03 | ) | ||||||||||
| Total net income (loss) per Class B common share - Diluted | $ | (0.15 | ) | $ | (0.04 | ) | $ | (0.21 | ) | $ | 0.13 | |||||
| Weighted average number of shares: | ||||||||||||||||
| Common shares - Basic | 11,604 | 11,832 | 11,733 | 11,942 | ||||||||||||
| Class B common shares - Basic | 2,141 | 2,191 | 2,154 | 2,270 | ||||||||||||
| Common shares - Diluted | 13,745 | 14,140 | 13,887 | 14,335 | ||||||||||||
| Class B common shares - Diluted | 2,141 | 2,191 | 2,154 | 2,270 | ||||||||||||
| Dividends per common share | $ | 0.060 | $ | 0.060 | $ | 0.180 | $ | 0.180 | ||||||||
| Dividends per Class B common share | $ | 0.054 | $ | 0.054 | $ | 0.162 | $ | 0.162 | ||||||||
| Richardson Electronics, Ltd. | ||||||||||||||||
| Unaudited Consolidated Statements of Cash Flows | ||||||||||||||||
|
(in thousands) |
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| Three Months Ended | Nine Months Ended | |||||||||||||||
| February 28, | March 1, | February 28, | March 1, | |||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| Operating activities: | ||||||||||||||||
| Net income (loss) | (2,198 | ) | (532 | ) | (3,338 | ) | 1,960 | |||||||||
| Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities: | ||||||||||||||||
| Depreciation and amortization | 418 | 275 | 1,227 | 796 | ||||||||||||
| Gain on sale of investments | (6 | ) | (4 | ) | (15 | ) | (23 | ) | ||||||||
| Gain on disposal of assets | (4 | ) | — | (30 | ) | — | ||||||||||
| Share-based compensation expense | 143 | 201 | 529 | 585 | ||||||||||||
| Deferred income taxes | (498 | ) | 62 | (665 | ) | (105 | ) | |||||||||
| Change in assets and liabilities, net of effect of acquired businesses: | ||||||||||||||||
| Accounts receivable | (2,361 | ) | 228 | (2,655 | ) | (1,498 | ) | |||||||||
| Income tax receivable | — | (319 | ) | 2,888 | 2,789 | |||||||||||
| Inventories | (105 | ) | 273 | (4,366 | ) | 133 | ||||||||||
| Prepaid expenses and other assets | 176 | 140 | (727 | ) | (134 | ) | ||||||||||
| Accounts payable | (1,878 | ) | (940 | ) | (389 | ) | (3,170 | ) | ||||||||
| Accrued liabilities | 632 | (73 | ) | (469 | ) | (2,528 | ) | |||||||||
| Non-current deferred income tax liabilities | — | 175 | — | (302 | ) | |||||||||||
| Other | (25 | ) | 13 | (32 | ) | 60 | ||||||||||
| Net cash used in operating activities | (5,706 | ) | (501 | ) | (8,042 | ) | (1,437 | ) | ||||||||
| Investing activities: | ||||||||||||||||
| Cash consideration paid for acquired businesses | — | — | — | (973 | ) | |||||||||||
| Capital expenditures | (1,314 | ) | (840 | ) | (3,250 | ) | (1,821 | ) | ||||||||
| Proceeds from maturity of investments | 750 | 203,757 | 31,957 | 258,289 | ||||||||||||
| Purchases of investments | (750 | ) | (197,321 | ) | (34,093 | ) | (248,873 | ) | ||||||||
| Proceeds from sales of available-for-sale securities | 112 | 76 | 186 | 152 | ||||||||||||
| Purchases of available-for-sale securities | (112 | ) | (76 | ) | (186 | ) | (152 | ) | ||||||||
| Other | (98 | ) | 6 | (128 | ) | 97 | ||||||||||
| Net cash provided by (used in) investing activities | (1,412 | ) | 5,602 | (5,514 | ) | 6,719 | ||||||||||
| Financing activities: | ||||||||||||||||
| Repurchase of common stock | (1,305 | ) | — | (3,945 | ) | (8,725 | ) | |||||||||
| Proceeds from issuance of common stock | 13 | 13 | 301 | 184 | ||||||||||||
| Cash dividends paid | (808 | ) | (829 | ) | (2,453 | ) | (2,514 | ) | ||||||||
| Other | 2 | (26 | ) | — | (25 | ) | ||||||||||
| Net cash used in financing activities | (2,098 | ) | (842 | ) | (6,097 | ) | (11,080 | ) | ||||||||
| Effect of exchange rate changes on cash and cash equivalents | (2,272 | ) | 255 | (4,701 | ) | 956 | ||||||||||
| Increase/ (decrease) in cash and cash equivalents | (11,488 | ) | 4,514 | (24,354 | ) | (4,842 | ) | |||||||||
| Cash and cash equivalents at beginning of period | 89,886 | 92,646 | 102,752 | 102,002 | ||||||||||||
| Cash and cash equivalents at end of period | $ | 78,398 | $ | 97,160 | $ | 78,398 | $ | 97,160 | ||||||||
| Richardson Electronics, Ltd. | |||||||||||||
| Net Sales and Gross Profit | |||||||||||||
| For the Third Quarter and First Nine Months of Fiscal 2015 and Fiscal 2014 | |||||||||||||
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(in thousands) |
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|
By Strategic Business Segment: |
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|
Net Sales |
Three Months Ended | Three Months Ended | |||||||||||
| February 28, 2015 | March 1, 2014 | % Change | |||||||||||
| EDG | $ | 25,207 | $ | 24,193 | 4.2% | ||||||||
| Canvys | 6,236 | 6,732 | (7.4)% | ||||||||||
| Healthcare | $ | 2,028 | $ | 1,959 | 3.5% | ||||||||
| Total | $ | 33,471 | $ | 32,884 | 1.8% | ||||||||
| Nine Months Ended | Nine Months Ended | ||||||||||||
| February 28, 2015 | March 1, 2014 | % Change | |||||||||||
| EDG | $ | 79,432 | $ | 75,835 | 4.7% | ||||||||
| Canvys | 18,110 | 21,769 | (16.8)% | ||||||||||
| Healthcare | $ | 4,469 | $ | 4,973 | (10.1)% | ||||||||
| Total | $ | 102,011 | $ | 102,577 | (0.6)% | ||||||||
|
Gross Profit |
Three Months Ended | Three Months Ended | |||||||||||
| February 28, 2015 | % of Net Sales | March 1, 2014 | % of Net Sales | ||||||||||
| EDG | $ | 7,680 | 30.5% | $ | 7,139 | 29.5% | |||||||
| Canvys | 1,621 | 26.0% | 1,945 | 28.9% | |||||||||
| Healthcare | $ | 499 | 24.6% | $ | 567 | 28.9% | |||||||
| Total | $ | 9,800 | 29.3% | $ | 9,651 | 29.3% | |||||||
| Nine Months Ended | Nine Months Ended | ||||||||||||
| February 28, 2015 | % of Net Sales | March 1, 2014 | % of Net Sales | ||||||||||
| EDG | $ | 24,904 | 31.4% | $ | 23,505 | 31.0% | |||||||
| Canvys | 4,929 | 27.2% | 5,970 | 27.4% | |||||||||
| Healthcare | $ | 1,087 | 24.3% | $ | 1,375 | 27.6% | |||||||
| Total | $ | 30,920 | 30.3% | $ | 30,850 | 30.1% | |||||||
