Attached files
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| 8-K - CURRENT REPORT - BK Technologies Corp | rwc_8k.htm |
Exhibit
99.1
Company Contact:
RELM Wireless Corporation
William Kelly, EVP & CFO
(321) 984-1414
RELM Wireless Reports First Quarter 2017 Results
WEST
MELBOURNE, Florida – May 9, 2017 -- RELM Wireless Corporation
(NYSE MKT: RWC) today announced its financial and operating results
for the first quarter ended March 31, 2017.
For the
first quarter ended March 31, 2017, sales totaled approximately
$7.4 million, compared with $12.1 million for the first quarter of
2016. Net loss for the first quarter of 2017 totaled approximately
$1.3 million, or $0.09 per basic and diluted share, compared with
net income of approximately $513,000, or $0.04 per basic and
diluted share, for the same quarter last year.
Gross
profit margin for the first quarter 2017 was 30.3% of sales,
compared with 31.7% of sales for the same quarter last year.
Selling, general and administrative expenses totaled approximately
$3.4 million (46.7% of sales) for the first quarter 2017, compared
with approximately $3.1 million (25.4% of sales) for the first
quarter of 2016.
Sales
for the first quarter last year included sales under the
Company’s contract with the TSA. Sales for the base-year and
first option year were completed in 2016 and not replicated during
the first quarter of 2017. The financial results for the first
quarter of 2017 include certain non-recurring items that had an
unfavorable impact. Among others, the most significant of these
items included approximately $0.4 million related to severance
arrangements, $0.2 million related to the discontinuation of a
development project, and $0.3 million for product
enhancements.
The
Company had approximately $20.8 million in working capital as of
March 31, 2017, of which approximately $11.6 million was comprised
of cash, cash equivalents and trade receivables. This compares with
working capital of approximately $23.4 million as of December 31,
2016, of which approximately $14.4 million was comprised of cash,
cash equivalents and trade receivables. As of March 31, 2017, the
Company had no borrowings outstanding under its revolving credit
facility.
RELM
Chairman Kyle Cerminara stated, “During the first quarter,
our board was reconfigured with 5 new members, each of whom brings
a new perspective and a unique and valuable skillset to the
Company. We also named Tim Vitou as RELM’s President during
the first quarter. Tim assumed the President role after nine years
as the Company’s Senior VP of Sales where he was a
significant contributor to the key sales of the
Company.”
Tim
Vitou, RELM’s President commented, “Demonstrating our
commitment to public safety communications, we are investing in
engineering and sales resources that we expect will contribute to
future successes. At the same time, we are building on that
foundation with strategic investments in other areas with
significant potential for returns.”
Mr.
Vitou added, “Over the last few months, we redirected product
development efforts, assigning the highest priority to initiatives
that are critical to our future success while discontinuing others.
Some of the changes adversely impacted our financial and operating
results in the first quarter. Ultimately, however, we believe these
actions will provide meaningful benefits moving forward in the form
of cost savings, and available resources to more effectively
address the best opportunities for growth and enhanced shareholder
value.”
Conference Call and Webcast
The
Company will host a conference call and webcast for investors at
9:00 a.m. Eastern Time, Wednesday, May 10, 2017. Shareholders and
other interested parties may participate in the conference call by
dialing 877-407-8031 (international/local participants dial
201-689-8031) and asking to be connected to the “RELM
Wireless Corporation Conference Call” a few minutes before
9:00 a.m. Eastern Time on May 10, 2017. The call will also be
webcast at http://www.relm.com.
Please allow extra time prior to the call to visit the site and
download any necessary software to listen to the Internet webcast.
An online archive of the webcast will be available on the
Company’s website for 30 days following the call at
http://www.relm.com.
A
replay of the conference call will be available one hour after the
completion of the call until May 20, 2017, by dialing 877-481-4010
(international/local participants dial 919-882-2331) and entering
the conference replay ID# 13660397.
About RELM Wireless
As an
American manufacturer for 70 years, RELM Wireless is deeply rooted
in the public safety communications industry, manufacturing
high-specification communications equipment of unsurpassed
reliability and value for use by public safety professionals and
government agencies. Advances include a broad new line of leading
digital two-way radios compliant with APCO Project 25
specifications. RELM Wireless’ products are manufactured and
distributed worldwide under BK Radio and RELM brand names. The
Company maintains its headquarters in West Melbourne, Florida and
can be contacted through its web site at www.relm.com or directly
at 1-800-821-2900. The Company’s common stock trades on the
NYSE MKT market under the symbol “RWC”.
About APCO Project 25 (P25)
APCO
Project 25 (P25), which requires interoperability among compliant
equipment regardless of the manufacturer, was established by the
Association of Public-Safety Communications Officials and is
approved by the U.S. Department of Homeland Security. The shift
toward interoperability gained momentum as a result of significant
communications failures in critical emergency situations. RELM was
one of the first manufacturers to develop P25-compliant
technology.
Forward-Looking Statements
This press release contains certain forward-looking statements that
are made pursuant to the “Safe Harbor” provisions of
the Private Securities Litigation Reform Act of 1995. These
forward-looking statements concern the Company’s operations,
economic performance and financial condition and are based largely
on the Company’s beliefs and expectations. These statements
involve known and unknown risks, uncertainties and other factors
that may cause the actual results, performance or achievements of
the Company, or industry results, to be materially different from
any future results, performance or achievements expressed or
implied by such forward-looking statements. Such factors and risks
include, among others, the following: changes or advances in
technology; the success of our LMR product line; competition in the
land mobile radio industry; general economic and business
conditions, including federal, state and local government budget
deficits and spending limitations; the availability, terms and
deployment of capital; reliance on contract manufacturers and
suppliers; heavy reliance on sales to agencies of the U.S.
government; our ability to utilize deferred tax assets; retention
of executive officers and key personnel; our ability to manage our
growth; our ability to identify potential candidates for, and
consummate, acquisition or investment transactions, and risks
incumbent to being a minority stockholder in a corporation; impact
of our investment strategy; government regulation; our business
with manufacturers located in other countries; our inventory and
debt levels; protection of our intellectual property rights;
fluctuation in our operating results; acts of war or terrorism,
natural disasters and other catastrophic events; any infringement
claims; data security breaches and other factors impacting our
technology systems; availability of adequate insurance coverage;
maintenance of our NYSE MKT listing; and the effect on our stock
price and ability to raise equity capital of future sales of shares
of our common stock. Certain of these factors and risks, as well as
other risks and uncertainties, are stated in more detail in the
Company’s Annual Report on Form 10-K for the fiscal year
ended December 31, 2016 and in the Company’s subsequent
filings with the SEC. These forward-looking statements are made as
of the date of this press release, and the Company assumes no
obligation to update the forward-looking statements or to update
the reasons why actual results could differ from those projected in
the forward-looking statements.
RELM WIRELESS CORPORATION
Condensed Consolidated Statements of Operations
(In Thousands, Except Per Share Amounts) (Unaudited)
|
|
Three Months Ended
|
|
|
|
3/31/2017
|
3/31/2016
|
|
|
|
|
|
Sales,
net
|
$7,380
|
$12,069
|
|
|
|
|
|
Expenses:
|
|
|
|
Cost
of products
|
5,143
|
8,240
|
|
Selling,
general and administrative expenses
|
3,443
|
3,063
|
|
Total
expenses
|
8,586
|
11,303
|
|
|
|
|
|
Operating
(loss) income
|
(1,206)
|
766
|
|
|
|
|
|
Other (expense) income:
|
|
|
|
Net
interest income
|
8
|
1
|
|
Other
(expense) income
|
(191)
|
1
|
|
|
|
|
|
(Loss)
income before income taxes
|
(1,389)
|
768
|
|
|
|
|
|
Income
tax benefit (expense)
|
121
|
(255)
|
|
|
|
|
|
Net
(loss) income
|
$(1,268)
|
$513
|
|
|
|
|
|
|
|
|
|
Net
(loss) earnings per share - basic
|
$(0.09)
|
$0.04
|
|
Net
(loss) earnings per share - diluted
|
$(0.09)
|
$0.04
|
|
|
|
|
|
Weighted
average common shares outstanding, basic
|
14,039
|
13,731
|
|
Weighted
average common shares outstanding, diluted
|
14,039
|
13,798
|
RELM WIRELESS CORPORATION
Condensed Consolidated Balance Sheets
(In Thousands, Except Share Data)
|
|
March 31,
|
December 31,
|
|
|
2017
|
2016
|
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash
and cash equivalents
|
$8,325
|
$10,910
|
|
Trade
accounts receivable, net
|
3,288
|
3,448
|
|
Inventories,
net
|
14,751
|
13,999
|
|
Prepaid
expenses and other current assets
|
1,042
|
1,410
|
|
Total
current assets
|
27,406
|
29,767
|
|
|
|
|
|
Property,
plant and equipment, net
|
2,506
|
2,486
|
|
Available-for-sale
securities
|
9,673
|
6,472
|
|
Deferred
tax assets, net
|
2,398
|
3,418
|
|
Other
assets
|
371
|
401
|
|
|
|
|
|
Total assets
|
$42,354
|
$42,544
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$2,647
|
$1,973
|
|
Accrued
compensation and related taxes
|
1,281
|
2,193
|
|
Accrued
warranty expense
|
846
|
650
|
|
Accrued
other expenses and other current liabilities
|
402
|
169
|
|
Dividends
payable
|
1,241
|
1,235
|
|
Deferred
revenue
|
144
|
142
|
|
Total
current liabilities
|
6,561
|
6,362
|
|
|
|
|
|
Deferred
revenue
|
382
|
408
|
|
Total
liabilities
|
6,943
|
6,770
|
|
|
|
|
|
Commitments
and contingencies
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
Preferred
stock; $1.00 par value; 1,000,000 authorized
|
|
|
|
shares,
none issued or outstanding.
|
-
|
-
|
|
Common
stock; $0.60 par value; 20,000,000 authorized
|
|
|
|
shares;
13,844,584 and 13,754,749 issued and outstanding
shares
|
|
|
|
at
March 31, 2017 and December 31, 2016, respectively.
|
8,307
|
8,253
|
|
Additional
paid-in capital
|
25,513
|
25,382
|
|
Accumumulated
(deficit) earnings
|
(2,270)
|
240
|
|
Accumulated
other comprehensive income
|
4,120
|
2,061
|
|
Treasury
Stock, at cost
|
(259)
|
(162)
|
|
Total
stockholders' equity
|
35,411
|
35,774
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
$42,354
|
$42,544
|