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EXCEL - IDEA: XBRL DOCUMENT - R F INDUSTRIES LTDFinancial_Report.xls
EX-31.1 - EXHIBIT 31.1 - R F INDUSTRIES LTDv412439_ex31-1.htm
EX-32.2 - EXHIBIT 32.2 - R F INDUSTRIES LTDv412439_ex32-2.htm
EX-32.1 - EXHIBIT 32.1 - R F INDUSTRIES LTDv412439_ex32-1.htm
10-Q - FORM 10-Q - R F INDUSTRIES LTDv412439_10q.htm
EX-31.2 - EXHIBIT 31.2 - R F INDUSTRIES LTDv412439_ex31-2.htm

 

Exhibit 99.1

 

 RFI+CWW+rfil   FOR IMMEDIATE RELEASE
 

Company Contact:

Johnny Walker

President/CEO

(858) 549-6340

rfi@rfindustries.com

 

Investor Contact:

Robert Jacobs

Jacobs Consulting

(310) 927 3108

robert.jacobs@jacobscon.com

 

 

 

RF Industries Second Quarter Sales Increase 40%

 

Net Income $448,000, or $0.05 Per Diluted Share

Board of Directors Declares Quarterly Cash Dividend of $0.07 per share

 

San Diego, California, June 15, 2015 -- RF Industries, Ltd. (NASDAQ: RFIL) today announced results for the fiscal 2015 second quarter ended April 30, 2015.

 

Second Quarter Results

Sales for the second quarter of fiscal 2015 increased 40%, or $2.3 million, to $8.1 million compared to $5.8 million in the same quarter last year. Net income was $448,000, or $0.05 per diluted share, compared to $478,000, or $0.05 per diluted share, in the same quarter last year. Second quarter 2015 results include sales of $2.8 million associated with the recent acquisition of Comnet Telecom Supply.

Second quarter gross profit increased $317,000, to $3.1 million, or 38% of sales, compared to $2.8 million, or 48% of sales in the same quarter last fiscal year. Margins were primarily affected by reduced sales of higher margin OptiFlex products at Cables Unlimited and by lower sales at Connector and Cable Assembly, Bioconnect and the Cables Unlimited divisions compared to the same quarter last fiscal year. Gross margin was also affected by lower average product margins at Comnet, due to its high volume sales of lower margin products.

Selling and general expenses increased $346,000, to $2.1 million from $1.8 million in the second quarter of fiscal 2014, primarily associated with increased operating expenses from the acquisition of Comnet and the addition of sales employees at Cables Unlimited. Selling and general expenses declined to 26% from 31% of sales in the second quarter last year as expenses in fiscal 2014 were affected by the acceleration of certain stock option expenses for a former employee.

Johnny Walker, CEO/President said, "Except for Bioconnect, second quarter operating profitability improved at all the Company’s businesses, compared to the recent fiscal first quarter. Second quarter results also benefitted from the acquisition of Comnet and tight cost controls adopted during the quarter. The recent purchase of a patented braided cable product line, which offers revolutionary advantages for water-tight connections, ease of installation and system reliability, combined with the June 5, 2015 acquisition of Rel-Tech, which had sales of $7.7 million in calendar 2014, will diversify our customer base and increase product distribution and sales for the second half of fiscal 2015. These business additions are expected to be accretive to net income in the current third quarter of fiscal 2015."

 

First Half Fiscal 2015

For the first six months of fiscal 2015, sales increased 29%, or $3.4 million, to $15.0 million compared to $11.6 million in the same period last fiscal year. Net income was $514,000, or $0.06 per diluted share, compared to $742,000, or $0.08 per diluted share, in the same period last fiscal year. The first six months of fiscal 2015 include sales of $5.0 million from the new Comnet subsidiary.

Second quarter gross profit was $5.6 million, or 37% of sales, compared to $5.3 million, or 46% of sales in the same period last fiscal year. Margins were primarily affected by lower margins at Cables Unlimited, combined with reduced sales at Connector and Cable, Bioconnect and Cables Unlimited, compared to the same period in fiscal 2015. Second quarter gross margins were also affected by the lower average gross margins at Comnet.

 

(more)

 

 

7610 Miramar Road, San Diego, CA 92126-4202 ● (858) 549-6340 ● (800) 233-1728 ● FAX (858) 549-6345

E-mail: rfi@rfindustries.com ● Internet: www.rfindustries.com

 

 
 

 

RF Industries Second Quarter Sales Increase 40%

June 15, 2015

Page Two

 

Selling and general expenses in the first half of fiscal 2015 increased $616,000, to $4.4 million from $3.8 million in the same period last fiscal year, primarily due to increased operating expenses associated with the acquisition of Comnet and expenses related to the addition of sales staff at Cables Unlimited. Selling and general declined to 29% from 32% of sales in the same period of fiscal 2014, as expenses in fiscal 2014 increased due to the acceleration of certain stock option expenses for a former employee.

 

Balance Sheet Data

At April 30, 2015, the Company reported working capital of $17.8 million, including cash and cash equivalents of $10.4 million, a current ratio of approximately 6.4-to-1, no long-term debt, and stockholders' equity of $26.4 million. During the first half of 2015, the Company used net cash of $2.2 million and issued 252,381 shares of unregistered common stock to acquire Comnet. The Company also paid out cash dividends of $0.07 per share in each of its first two quarters of fiscal 2015, or a total of $1.2 million, to its shareholders.

 

Since April 30, 2015, the Company purchased a patented braided cable product line for $700,000 and acquired 100% of the outstanding shares of Rel-Tech Electronics for $2.1 million in cash and 50,467 of shares of unregistered common stock. At its June 8, 2015 meeting, the Company’s Board of Directors declared a quarterly cash dividend of $0.07 per share, payable July 15, 2015 to shareholders of record June 30, 2015.

 

About RF Industries

RF Industries is a leading designer and manufacturer of innovative interconnect products and complex cable assemblies across diversified, high growth markets including wireless carriers and infrastructure, medical and industrial. The Company's products include RF connectors, coaxial and custom cable assemblies, fiber optic cables, wiring harnesses and medical wiring. The Company's connectivity products are used throughout the growing and evolving infrastructure of wireless communications. Through its newly acquired Rel-Tech Electronics, Inc. and Comnet Telecom Supply, Inc. subsidiaries, the Company also manufactures and sells other cabling technologies and data center equipment solutions. The Company has reported 21 consecutive years of profitability and is headquartered in San Diego, California with operations in Las Vegas, Nevada, Yaphank, New York, East Brunswick, New Jersey and Milford, Connecticut. Please visit the RF Industries website at www.rfindustries.com.

 

Forward-Looking Statements

This press release contains forward-looking statements with respect to future events which are subject to a number of factors that could cause actual results to differ materially. Factors that could cause or contribute to such differences include, but are not limited to: changes in the telecommunications industry; the Company's reliance on certain distributors for a significant portion of anticipated revenues and the uncertainty of impact upon the Company's operations of the recent acquisitions of Comnet Telecom Supply, the patented braided cable product line, and Rel-Tech Technologies. Further discussion of these and other potential risk factors may be found in the Company's public filings with the Securities and Exchange Commission (www.sec.gov) including its Form 10-K. All forward-looking statements are based upon information available to the Company on the date they are published and the Company undertakes no obligation to publicly update or revise any forward-looking statements to reflect events or new information after the date of this release.

 

 

* * * * *

 

 
 


 

RF INDUSTRIES, LTD.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED) (In thousands, except share and per share amounts)

       

   Three Months Ended   Six Months Ended 
   April 30,   April 30, 
   2015   2014   2015   2014 
                 
Net sales  $8,076   $5,764   $14,969   $11,614 
Cost of sales   5,007    3,012    9,400    6,280 
Gross profit   3,069    2,752    5,569    5,334 
                     
Operating expenses:                    
Engineering   225    214    442    470 
Selling and general   2,121    1,775    4,378    3,762 
Total Operating Expenses   2,346    1,989    4,820    4,232 
                     
Operating income   723    763    749    1,102 
                     
Other income - interest   10    7    15    14 
Income from continuing operations                    
before provision for income taxes   733    770    764    1,116 
                     
Provision for income taxes   286    310    264    393 
Income from continuing operations   447    460    500    723 
                     
Income from discontinued operations, net of tax   1    18    14    19 
                     
Net income  $448   $478   $514   $742 
                     
Earnings per Basic share:                    
Continuing operations  $0.05   $0.06   $0.06   $0.09 
Discontinued operations   0.00    0.00    0.00    0.00 
Net income per share  $0.05   $0.06   $0.06   $0.09 
                     
Earnings per Diluted share:                    
Continuing operations  $0.05   $0.05   $0.06   $0.08 
Discontinued operations   0.00    0.00    0.00    0.00 
Net income per share  $0.05   $0.05   $0.06   $0.08 
                     
Weighted average shares outstanding:                    
Basic   8,509,970    8,208,278    8,395,952    8,175,376 
Diluted   8,883,182    8,746,358    8,773,667    8,789,752 

  

 
 

 

RF INDUSTRIES, LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share amounts)

 

   April 30,   October 31, 
   2015   2014 
   (Unaudited)   (Audited) 
ASSETS          
           
CURRENT ASSETS          
Cash and cash equivalents  $10,393   $14,718 
Trade accounts receivable, net   4,162    2,428 
Inventories   5,551    5,259 
Other current assets   612    618 
Deferred tax assets   416    416 
TOTAL CURRENT ASSETS   21,134    23,439 
           
Property and equipment, net   914    829 
Goodwill   5,387    3,076 
Amortizable intangible assets, net   2,335    1,187 
Non-amortizable intangible assets   950    410 
Note receivable from stockholder   67    67 
Other assets   21    21 
TOTAL ASSETS  $30,808   $29,029 
           
LIABILITIES AND STOCKHOLDERS' EQUITY          
           
CURRENT LIABILITIES          
Accounts payable  $1,422   $867 
Accrued expenses   1,652    1,422 
Income taxes payable   242    73 
TOTAL CURRENT LIABILITIES   3,316    2,362 
           
Deferred tax liabilities   811    811 
Other long-term liabilities   318    -- 
TOTAL LIABILITIES   4,445    3,173 
           
COMMITMENTS AND CONTINGENCIES          
           
STOCKHOLDERS' EQUITY          
Common stock, authorized 20,000,000 shares of $0.01          
par value; 8,510,697 and 8,255,979 shares issued and          
outstanding at April 30, 2015 and October 31, 2014, respectively   85    83 
Additional paid-in capital   18,395    17,230 
Retained earnings   7,883    8,543 
TOTAL STOCKHOLDERS' EQUITY   26,363    25,856 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $30,808   $29,029