RF Industries, Ltd, (NASDAQ: RFIL), a national
manufacturer and marketer of interconnect products and systems,
today announced its financial results for the second quarter of
fiscal 2019 ended April 30, 2019.
Second Quarter Fiscal 2019 Financial
Highlights:
- Net sales increased 28% sequentially to $13.6 million
- Gross margin was 30%, comparable to the prior sequential
quarter
- Net income increased 66% sequentially to $1.1 million, or $0.11
per diluted share
- Backlog of $10.1 million at April 30, 2019 on second quarter
bookings of $12.4 million
- Declared $0.02 per share dividend, the Company’s 36th
consecutive quarterly dividend
Robert Dawson, President and CEO
of RF Industries, commented:
"We generated solid sequential growth in sales in the second
quarter, reflecting increases in both of our business segments
quarter-over-quarter. These results include both organic growth in
the low double-digits and inorganic growth from our recent
acquisition. In addition, net income grew 66% sequentially,
reflecting our progress with improved efficiencies and cost
management and highlighting our ability to be profitable at varying
levels of revenue. We continue to see opportunities in the Tier-1
wireless carrier ecosystem and increased business from our
distribution channels, while also seeing continued expansion in our
OEM segments. Looking ahead, as we continue to execute on our long
term growth plan we expect to achieve sequential and year-over-year
sales increases in the current fiscal third quarter.”
Second Quarter Fiscal 2019 Results
Net sales in the second quarter of fiscal 2019 were $13.6
million, a sequential increase of 28%, or $3.0 million, compared to
the preceding first quarter, and compared to $20.5 million in the
second quarter of fiscal 2018. The sequential increase in sales was
driven by both project work in the OEM and wireless carrier market
and increases in traditional run rate business, as well as six
weeks of revenue contribution from the Company’s acquisition of C
Enterprises during the quarter. The year-over-year decline in sales
was a result of the largest series of orders in company history in
the year ago second quarter.
Gross profit for the second quarter was $4.1 million, a
sequential increase of 30%, or $949,000, compared to the preceding
first quarter, and compared to $7.6 million in the second quarter
of fiscal 2018. Gross margins were 30%, comparable to the prior
sequential quarter.
Selling and general expenses were $2.4 million, compared to $2.0
million in the preceding first quarter and $3.1 million in the
second quarter of fiscal 2018. Selling and general expenses as a
percentage of sales were 18% of sales, compared to 19% of sales in
the preceding first quarter and 15% of sales in the second quarter
of fiscal 2018. Selling and general expenses included one-time
costs of approximately $100,000 related to the acquisition of C
Enterprises in the quarter. Excluding the acquisition related
costs, selling and general expenses as a percentage of sales would
have been 17%.
Net income for the second quarter was $1.1 million, or $0.11 per
diluted share, a sequential increase of 66% compared to $640,000,
or $0.07 per diluted share, in the preceding first quarter, and
compared to net income of $3.2 million, or $0.34 per diluted share,
in the second quarter of fiscal 2018.
First Six Months Results
Net sales for the first six months of fiscal 2019 were $24.3
million, compared to $28.5 million, which included the largest
series of orders in company history in the year ago six months
results.
Gross profit for the first six months was $7.2 million, compared
to $10.1 million, while gross margins were 30% of sales compared to
36% of sales in the same period last year.
Selling and general expenses were $4.4 million, compared to $4.8
million in the first half last year. Selling and general expenses
as a percentage of sales were 18% of sales compared to 17% of sales
in the first half last year.
Income from continuing operations for the first six months of
fiscal 2019 was $1.7 million, or $0.17 per diluted share, compared
to $3.5 million, or $0.38 per diluted share, in the same period
last year.
Balance Sheet Data; Dividends
At April 30, 2019, the Company reported working capital of $25.8
million, including cash and cash equivalents of $13.9 million, a
current ratio of 6.5-to-1 and no outstanding debt.
At its June 7, 2019 meeting, the Company’s Board of Directors
declared a quarterly cash dividend of $0.02 per common share,
payable on July 15, 2019 to stockholders of record on June 30,
2019.
Cash dividends are made at the discretion of the Board of
Directors, subject to applicable laws, and depend on a number of
factors, including the Company's financial condition, results of
operations, capital requirements, plans for future acquisitions,
contractual restrictions, general business conditions and other
factors considered relevant by our Board of Directors.
Conference Call and Webcast
RF Industries will host a conference call and live webcast today
at 1:30 p.m. Pacific Daylight Time (4:30 p.m. EDT) to discuss its
second quarter 2019 financial results. To access the conference
call, dial 800-347-6311 (US and Canada) or 323-794-2094
(International). The conference ID is 9067883. In addition, a live
and archived webcast of the conference call will be accessible on
the investor relations section of the Company’s website at
www.rfindustries.com. A phone replay of the conference call will
also be available beginning approximately two hours after
conclusion of the call and will remain available for two weeks. To
access the phone replay, dial 844-512-2921(US and Canada) or
412-317-6671 (International). The replay conference ID is
9067883.
About RF Industries
RF Industries designs and manufactures a broad range of
interconnect products across diversified, growing markets including
wireless/wireline telecom, data communications and industrial. The
Company's products include RF connectors, coaxial
cables, data cables, wire harnesses, fiber optic cables
and custom cabling. The Company is headquartered in San Diego,
California with operations in New York and 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, including higher sales, increased future
demand for the Company's products, improved margins and improved
profitability, 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; the impact of existing and
additional future tariffs imposed by U.S and foreign nations; the
Company's ability to execute on its new go-to-market strategies and
channel models; its ability to expand its OEM relationships; its
ability to continue to deliver newly designed and custom fiber
optic and cabling products to principal customers; its ability to
maintain strong margins and diversify its customer base, and its
ability to address the changing needs of the market. 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.
(tables attached)
|
RF INDUSTRIES, LTD. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
(UNAUDITED) (In thousands, except share and per share amounts) |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
April 30, |
|
April 30, |
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
Net sales |
$ |
13,626 |
|
$ |
20,515 |
|
$ |
24,273 |
|
$ |
28,482 |
Cost of sales |
|
9,532 |
|
|
12,867 |
|
|
17,033 |
|
|
18,370 |
Gross profit |
|
4,094 |
|
|
7,648 |
|
|
7,240 |
|
|
10,112 |
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
Engineering |
|
332 |
|
|
631 |
|
|
652 |
|
|
952 |
Selling and general |
|
2,400 |
|
|
3,057 |
|
|
4,439 |
|
|
4,842 |
Total Operating Expenses |
|
2,732 |
|
|
3,688 |
|
|
5,091 |
|
|
5,794 |
Operating income |
|
1,362 |
|
|
3,960 |
|
|
2,149 |
|
|
4,318 |
Other income |
|
14 |
|
|
4 |
|
|
35 |
|
|
6 |
Income from continuing
operations |
|
|
|
|
|
|
|
before provision for income taxes |
|
1,376 |
|
|
3,964 |
|
|
2,184 |
|
|
4,324 |
Provision for income taxes |
|
315 |
|
|
799 |
|
|
483 |
|
|
855 |
Income from continuing operations |
|
1,061 |
|
|
3,165 |
|
|
1,701 |
|
|
3,469 |
Income from discontinued operations, net of tax |
|
-- |
|
|
39 |
|
|
-- |
|
|
189 |
Net income |
$ |
1,061 |
|
$ |
3,204 |
|
$ |
1,701 |
|
$ |
3,658 |
|
|
|
|
|
|
|
|
Earnings per share - Basic: |
|
|
|
|
|
|
|
Continuing operations |
$ |
0.11 |
|
$ |
0.35 |
|
$ |
0.18 |
|
$ |
0.39 |
Discontinued operations |
|
-- |
|
|
-- |
|
|
-- |
|
$ |
0.02 |
Net income per share |
$ |
0.11 |
|
$ |
0.35 |
|
$ |
0.18 |
|
$ |
0.41 |
|
|
|
|
|
|
|
|
Earnings per share - Diluted: |
|
|
|
|
|
|
|
Continuing operations |
$ |
0.11 |
|
$ |
0.34 |
|
$ |
0.17 |
|
$ |
0.38 |
Discontinued operations |
|
-- |
|
|
-- |
|
|
-- |
|
$ |
0.02 |
Net income per share |
$ |
0.11 |
|
$ |
0.34 |
|
$ |
0.17 |
|
$ |
0.40 |
|
|
|
|
|
|
|
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
Basic |
|
9,356,660 |
|
|
9,053,838 |
|
|
9,332,665 |
|
|
8,965,672 |
Diluted |
|
9,837,964 |
|
|
9,386,194 |
|
|
9,837,718 |
|
|
9,244,725 |
|
|
|
|
|
|
|
|
|
RF INDUSTRIES, LTD. AND
SUBSIDIARIES |
CONDENSED CONSOLIDATED BALANCE SHEETS |
(in thousands, except share and per share amounts) |
|
|
|
|
Apr. 30, |
|
Oct. 31, |
|
2019 |
|
2018 |
ASSETS |
|
|
(audited) |
CURRENT ASSETS |
|
|
|
Cash and cash equivalents |
$ |
13,856 |
|
$ |
16,334 |
Trade accounts receivable, net |
|
7,938 |
|
|
4,255 |
Inventories, net |
|
7,932 |
|
|
7,113 |
Other current assets |
|
736 |
|
|
828 |
TOTAL CURRENT ASSETS |
|
30,462 |
|
|
28,530 |
|
|
|
|
Property and equipment, net |
|
649 |
|
|
559 |
Goodwill |
|
1,340 |
|
|
1,340 |
Amortizable intangible assets, net |
|
1,229 |
|
|
1,367 |
Non-amortizable intangible assets |
|
657 |
|
|
657 |
Other assets |
|
68 |
|
|
49 |
TOTAL ASSETS |
$ |
34,405 |
|
$ |
32,502 |
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
CURRENT LIABILITIES |
|
|
|
Accounts payable |
$ |
1,580 |
|
$ |
1,342 |
Accrued expenses |
|
3,078 |
|
|
3,377 |
TOTAL CURRENT LIABILITIES |
|
4,658 |
|
|
4,719 |
Deferred tax liabilities, net |
|
87 |
|
|
-- |
TOTAL LIABILITIES |
|
4,745 |
|
|
4,719 |
|
|
|
|
COMMITMENTS AND CONTINGENCIES |
|
|
|
STOCKHOLDERS' EQUITY |
|
|
|
Common stock, authorized 20,000,000 shares of $0.01
par value; |
|
|
|
9,360,351 and 9,291,201 shares issued and outstanding at |
|
|
|
|
|
April 30, 2019 and October 31, 2018, respectively |
|
94 |
|
|
93 |
Additional paid-in capital |
|
21,522 |
|
|
20,974 |
Retained earnings |
|
8,044 |
|
|
6,716 |
TOTAL STOCKHOLDERS' EQUITY |
|
29,660 |
|
|
27,783 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$ |
34,405 |
|
$ |
32,502 |
|
|
|
|
Contacts: |
|
|
|
RF
IndustriesMark Turfler SVP/CFO (858)
549‑6340 rfi@rfindustries.com |
MKR
Investor Relations Inc.Todd Kehrli Analyst/Investor
Contact (323) 468-2300 rfil@mkr-group.com |
RF Industries (NASDAQ:RFIL)
Historical Stock Chart
From Aug 2024 to Sep 2024
RF Industries (NASDAQ:RFIL)
Historical Stock Chart
From Sep 2023 to Sep 2024