Richardson Electronics Reports First Quarter Fiscal 2016 Results and Declares Quarterly Cash Dividend

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
August 29,
2015
May 30,
2015
Assets
Current assets:
Cash and cash equivalents $ 68,426 $ 74,535
Accounts receivable, less allowance of $283 23,989 20,753
Inventories,net 41,188 38,769
Prepaid expenses and other assets 2,289 1,696
Deferred income taxes 782 804
Income tax receivable 381 929
Investments - current 6,342   23,692
Total current assets 143,397   161,178
Non-current assets:
Property, plant and equipment, net 10,832 10,081
Goodwill 3,746
Other Intangibles 6,528 743
Non-current deferred income taxes 1,463 1,443
Investments - non-current 10,511   11,549
Total non-current assets 33,080   23,816
Total assets $ 176,477   $ 184,994
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $ 14,293 $ 15,768
Accrued liabilities 9,348   10,144
Total current liabilities 23,641   25,912
Non-current liabilities:
Non-current deferred income tax liabilities 1,179 1,209
Other non-current liabilities 995   1,221
Total non-current liabilities 2,174   2,430
Total liabilities 25,815   28,342
Commitments and contingencies
Stockholders’ equity
Common stock, $0.05 par value; issued 11,357 shares at August 29, 2015, and 11,530 shares at May 30, 2015 568 577
Class B common stock, convertible, $0.05 par value; issued and outstanding 2,141 shares at August 29, 2015 and at May 30, 2015 107 107
Preferred stock, $1.00 par value, no shares issued
Additional paid-in-capital 62,312 63,252
Common stock in treasury, at cost, 394 shares at August 29, 2015, and no shares at May 30, 2015 (2,269 )
Retained earnings 86,932 89,141
Accumulated other comprehensive income 3,012   3,575
Total stockholders’ equity 150,662   156,652
Total liabilities and stockholders’ equity $ 176,477   $ 184,994

Richardson Electronics, Ltd.

Unaudited Consolidated Statements of Comprehensive Loss

(in thousands, except per share amounts)

 
  Three Months Ended
August 29,
2015
  August 30,
2014
Statements of Comprehensive Loss
Net Sales $ 37,071 $ 34,699
Cost of Sales 25,809   24,041  
Gross profit 11,262 10,658
Selling, general, and administrative expenses 12,267 11,182
(Gain) loss on disposal of assets (1 ) 9  
Operating loss (1,004 ) (533 )
Other (income) expense:
Investment/interest income (191 ) (256 )
Foreign exchange (gain) loss 182 (57 )
Other, net 36   (2 )
Total other income 27   (315 )
Loss before income taxes (1,031 ) (218 )
Income tax provision (benefit) 368   (135 )
Net loss (1,399 ) (83 )
Foreign currency translation loss, net of tax (503 ) (968 )
Fair value adjustments on investments gain (loss) (60 ) 25  
Comprehensive loss $ (1,962 ) $ (1,026 )
Loss per share:
Common shares - Basic $ (0.10 )   $ (0.01 )
Class B common shares - Basic $ (0.10 ) $ (0.01 )
Common shares - Diluted $ (0.10 ) $ (0.01 )
Class B common shares - Diluted $ (0.10 ) $ (0.01 )
Weighted average number of shares:
Common shares - Basic 11,486   11,822  
Class B common shares - Basic 2,141   2,182  
Common shares - Diluted 11,486   11,822  
Class B common shares - Diluted 2,141   2,182  
Dividends per common share $ 0.060   $ 0.060  
Dividends per Class B common share $ 0.054   $ 0.054  

Richardson Electronics, Ltd.

Consolidated Statements of Cash Flows

(in thousands)

 
  Three Months Ended
August 29,
2015
  August 30,
2014
Operating activities:
Net loss $ (1,399 ) $ (83 )
Adjustments to reconcile net loss to cash provided by (used in) operating activities:
Depreciation and amortization 485 366
Gain on sale of investments (11 ) (3 )
Gain on disposal of assets (1 )
Share-based compensation expense 90 120
Deferred income taxes 1 (79 )
Change in assets and liabilities, net of effect of acquired business:
Accounts receivable (2,525 ) (372 )
Income tax receivable 548 2,308
Inventories, net (593 ) (2,110 )
Prepaid expenses and other assets (581 ) 135
Accounts payable (1,521 ) 101
Accrued liabilities (804 ) (662 )
Non-current deferred income tax liabilities 228
Long-term liabilities-accrued pension (465 )
Other 35   (49 )
Net cash used in operating activities (6,513 ) (328 )
Investing activities:
Cash consideration paid for acquired business (12,209 )
Capital expenditures (984 ) (834 )
Proceeds from maturity of investments 18,350 30,482
Purchases of investments (32,362 )
Proceeds from sales of available-for-sale securities 100 37
Purchases of available-for-sale securities (100 ) (37 )
Other 60   (28 )
Net cash provided by (used in) investing activities 5,217   (2,742 )
Financing activities:
Repurchase of common stock (3,308 ) (488 )
Proceeds from issuance of common stock 158
Cash dividends paid (806 ) (828 )
Other (4 ) 1  
Net cash used in financing activities (4,118 ) (1,157 )
Effect of exchange rate changes on cash and cash equivalents (695 ) (441 )
Decrease in cash and cash equivalents (6,109 ) (4,668 )
Cash and cash equivalents at beginning of period 74,535   102,752  
Cash and cash equivalents at end of period $ 68,426   $ 98,084  

Richardson Electronics, Ltd.

Net Sales and Gross Profit

For the First Quarter of Fiscal 2016 and Fiscal 2015

(in thousands)

 

By Strategic Business Unit:

 

Net Sales

  Q1     Q1  

FY 2016

FY 2015

% Change

PMT $ 27,195 $ 27,438 (0.9%)
Canvys 6,681 5,968 11.9%
Healthcare 3,195   $ 1,293   147.1%
Total $ 37,071   $ 34,699   6.8%
 

Gross Profit

Q1 Q1

FY 2016

% of Net Sales

FY 2015

% of Net Sales

PMT $ 8,138 29.9% $ 8,686 31.7%
Canvys 1,709 25.6% 1,656 27.7%
Healthcare 1,415   44.3% 316   24.4%
Total $ 11,262   30.4% $ 10,658   30.7%




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