Richardson Electronics Reports Third Quarter Fiscal 2015 Results and Declares Quarterly Cash Dividend

CASH AND SHARE REPURCHASES

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.

 

Richardson Electronics, Ltd.

Consolidated Balance Sheets

(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)

 
  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)

 
  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

(in thousands)

 

By Strategic Business Segment:

 
   

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%
 




Review Article Be the first to review this article
CST Webinar Series

EMA:

Featured Video
Editorial
Peggy AycinenaWhat Would Joe Do?
by Peggy Aycinena
Retail Therapy: Jump starting Black Friday
Peggy AycinenaIP Showcase
by Peggy Aycinena
REUSE 2016: Addressing the Four Freedoms
More Editorial  
Jobs
FAE FIELD APPLICATIONS SAN DIEGO for EDA Careers at San Diego, CA
Development Engineer-WEB SKILLS +++ for EDA Careers at North Valley, CA
ACCOUNT MANAGER MUNICH GERMANY EU for EDA Careers at MUNICH, Germany
Manager, Field Applications Engineering for Real Intent at Sunnyvale, CA
AE-APPS SUPPORT/TMM for EDA Careers at San Jose-SOCAL-AZ, CA
Principal Circuit Design Engineer for Rambus at Sunnyvale, CA
Upcoming Events
Zuken Innovation World 2017, April 24 - 26, 2017, Hilton Head Marriott Resort & Spa in Hilton Head Island, SC at Hilton Head Marriott Resort & Spa Hilton Head Island NC - Apr 24 - 26, 2017
CST Webinar Series
Verific: SystemVerilog & VHDL Parsers
TrueCircuits: UltraPLL



Internet Business Systems © 2016 Internet Business Systems, Inc.
595 Millich Dr., Suite 216, Campbell, CA 95008
+1 (408)-337-6870 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering TechJobsCafe - Technical Jobs and Resumes GISCafe - Geographical Information Services  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy Policy