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10-Q - FORM 10-Q - R F INDUSTRIES LTDv419824_10q.htm
EX-32.2 - EXHIBIT 32.2 - R F INDUSTRIES LTDv419824_ex32-2.htm
EX-31.1 - EXHIBIT 31.1 - R F INDUSTRIES LTDv419824_ex31-1.htm
EX-32.1 - EXHIBIT 32.1 - R F INDUSTRIES LTDv419824_ex32-1.htm
EX-31.2 - EXHIBIT 31.2 - R F INDUSTRIES LTDv419824_ex31-2.htm

 

Exhibit 99.1

 

    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 Reports Third Quarter Sales Increase

 

Net Income $211,000, or $0.02 Per Diluted Share

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

 

San Diego, California, September 11, 2015 -- RF Industries, Ltd. (NASDAQ: RFIL) today announced results for the three and nine-month periods ended July 31, 2015.

 

Third Quarter Results

Net sales for the third quarter of fiscal 2015 increased 61%, or $3.4 million, to $8.9 million compared to $5.5 million in the same quarter last year. Net income was $211,000, or $0.02 per diluted share, compared to $372,000, or $0.04 per diluted share, in the same quarter last year. The third quarter 2015 net sales increase was the result of additional net sales of $2.8 million and $1.2 million, respectively, from the Company's newly acquired Comnet Telecom Supply and Rel-Tech Electronics subsidiaries. Both the Comnet and Rel-Tech subsidiaries were acquired in fiscal 2015.

 

Third quarter gross profit increased $347,000, to $2.8 million, or 32% of net sales, compared to $2.5 million, or 45% of net sales in the same quarter last fiscal year. Margins decreased in the 2015 quarter primarily due to the additional sales from the recently acquired Comnet and Rel-Tech subsidiaries, which have historically lower gross margins. Margins were also affected by lower sales and gross margins at the RF Connector and Cable Assembly segment.

 

Selling and general expenses increased $823,000, to $2.5 million from $1.6 million in the third quarter of fiscal 2014, primarily due to the additional operating expenses attributable to the acquisitions of Comnet and Rel-Tech and related amortization of intangible assets and acquisition costs. Selling and general expenses declined, as a percent of net sales, to 28%, from 29% of net sales in the third quarter last year, due to the increase in sales from the recent acquisitions.

 

Johnny Walker, CEO/President said, "Our revenue increase was the result of our recent acquisitions of Comnet Telecom and Rel-Tech Electronics, which were both profitable and met our sales expectations for the quarter. However, the continuing slowdown in the wireless infrastructure market affected sales and profitability at the RF Connector and Cable Assembly division, which decrease affected our overall sales and profitability. While we are tightly controlling expenses and working to improve the profitability of all of our divisions, our primary focus is on pursuing opportunities for sales growth at each of our business segments."

 

Nine Months Results

For the first nine months of fiscal 2015, net sales increased 39%, or $6.7 million, to $23.9 million compared to $17.2 million in the same period last fiscal year. Net income was $724,000, or $0.08 per diluted share, compared to $1.1 million, or $0.14 per diluted share, in the same period last fiscal year. The first nine months of fiscal 2015 include additional net sales of $9.0 million from the newly acquired Comnet and Rel-Tech subsidiaries.

 

 

(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 Reports Third Quarter Sales Increase

September 11, 2015

Page Two

 

Third quarter gross profit increased $582,000, to $8.4 million, or 35% of net sales, compared to $7.8 million, or 46% of net sales in the same period last fiscal year. Gross profit as a percentage of net sales was lower for the 2015 period due to the Company's acquisition of the lower margin Comnet and Rel-Tech businesses in the current fiscal year. Margins were also affected by lower sales and gross margins at the RF Connector and Cables Assembly segment.

 

Selling and general expenses in for the first nine months of fiscal 2015 increased $1.4 million to $6.8 million from $5.4 million in the same period last fiscal year, reflecting increased operating expenses attributable to the acquisitions of the Comnet and Rel-Tech businesses and related amortization of intangible assets and acquisition costs. Selling and general expenses declined to 29% of net sales, compared to 31% of net sales, in the same period of fiscal 2014.

 

Balance Sheet Data

At July 31, 2015, the Company reported working capital of $15.7 million, including cash and cash equivalents of $7.9 million, a current ratio of approximately 4.2-to-1, no long-term debt, and stockholders' equity of $26.2 million. During the first nine months of fiscal 2015, the Company used net cash of $5.1 million and issued 302,848 shares of unregistered common stock to acquire the Comnet and Rel-Tech subsidiaries and to purchase a new, patented line of connector products known as CompPro. The Company also paid cash dividends of $0.07 per share in each of its first three quarters of fiscal 2015, or a total of $1.8 million, to its stockholders.

 

Dividend

At its September 4, 2015 meeting, the Company's Board of Directors declared a quarterly cash dividend of $0.07 per share, payable on October 15, 2015 to stockholders of record on September 30, 2015. All cash dividends are made at the discretion of our board of directors, subject to applicable laws, and depend on a number of factors, including our financial condition, results of operations, capital requirements, plans for future acquisitions, contractual restrictions, general business conditions and other factors that our board of directors may deem relevant.

 

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 Electronics. 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       Nine Months Ended  
      July 31,       July 31,  
      2015       2014       2015       2014  
                                 
 Net sales   $ 8,899     $ 5,536     $ 23,868     $ 17,150  
 Cost of sales     6,064       3,048       15,464       9,328  
                                 
 Gross profit     2,835       2,488       8,404       7,822  
                                 
 Operating expenses:                                
   Engineering     247       228       688       697  
   Selling and general     2,455       1,632       6,833       5,395  
                                 
 Total operating expenses     2,702       1,860       7,521       6,092  
                                 
 Operating income     133       628       883       1,730  
                                 
 Other income - interest     5       7       19       22  
                                 
 Income before provision for income taxes     138       635       902       1,752  
                                 
 Provision (benefit) for income taxes     (44 )     277       220       670  
                                 
 Income from continuing operations     182       358       682       1,082  
                                 
 Income from discontinued operations, net of tax     29       14       42       32  
                                 
 Net income   $ 211     $ 372     $ 724     $ 1,114  
                                 
 Earnings per basic share:                                
   Continuing operations   $ 0.02     $ 0.05     $ 0.08     $ 0.14  
   Discontinued operations     0.00       0.00       0.01       0.00  
                                 
 Net income per share   $ 0.02     $ 0.05     $ 0.09     $ 0.14  
                                 
 Earnings per diluted share:                                
   Continuing operations   $ 0.02     $ 0.04     $ 0.08     $ 0.13  
   Discontinued operations       0.00       0.00       0.00       0.00  
                                 
 Net income per share   $ 0.02     $ 0.04     $ 0.08     $ 0.13  
                                 
 Weighted average shares outstanding:                                
   Basic     8,545,300       8,250,042       8,446,223       8,200,476  
   Diluted     8,916,643       8,718,656       8,820,438       8,763,593  

 

 

 

 

RF INDUSTRIES, LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share amounts)

 

  Jul. 31,     Oct. 31,  
    2015       2014  
    (Unaudited)       (Audited)  
ASSETS                
                 
CURRENT ASSETS                
  Cash and cash equivalents   $ 7,908     $ 14,718  
  Trade accounts receivable, net     3,915       2,428  
  Inventories     7,263       5,259  
  Other current assets     1,041       618  
  Deferred tax assets     416       416  
                 
     TOTAL CURRENT ASSETS     20,543       23,439  
                 
Property and equipment, net     962       829  
Goodwill     5,913       3,076  
Amortizable intangible assets, net     4,440       1,187  
Non-amortizable intangible assets     1,387       410  
Note receivable from stockholder     67       67  
Other assets     38       21  
                 
     TOTAL ASSETS   $ 33,350     $ 29,029  
                 
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
                 
CURRENT LIABILITIES                
  Accounts payable   $ 1,979     $ 867  
  Accrued expenses     2,882       1,422  
  Income taxes payable     --       73  
                 
     TOTAL CURRENT LIABILITIES     4,861       2,362  
                 
Deferred tax liabilities     1,299       811  
Other long-term liabilities     946       --  
                 
     TOTAL LIABILITIES     7,106       3,173  
                 
COMMITMENTS AND CONTINGENCIES                
                 
STOCKHOLDERS’ EQUITY                
  Common stock - authorized 20,000,000 shares of $0.01 par                
    value; 8,571,831 and 8,255,979 shares issued and outstanding                
    at July 31, 2015 and October 31, 2014, respectively     86       83  
Additional paid-in capital     18,664       17,230  
Retained earnings     7,494       8,543  
                 
     TOTAL STOCKHOLDERS' EQUITY     26,244       25,856  
                 
     TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $ 33,350     $ 29,029