RF Industries Reports Record Fourth Quarter and Year End Results; Revenues
for Year Increase 56% With Diluted Earnings Per Share of $0.34
SAN DIEGO -- January 22, 2013
RF Industries Ltd. (NASDAQ: RFIL) announced record quarterly sales and
consolidated net income for the fourth quarter and fiscal year ended October
For the fourth quarter ended October 31, 2012, the company reported revenues
of $10,529,000, an increase of $4,575,000, or 77%, as compared to $5,954,000
in the same quarter of fiscal 2011. Consolidated net income for the quarter
was $1,158,000, or $0.17 per basic and $0.15 per diluted share, compared to a
consolidated net loss of $50 thousand, or $0.01 net loss per basic and diluted
share in the fourth quarter of 2011.
Fourth Quarter Fiscal 2012 Results
“Growth in the quarter was led by our Cables Unlimited division and by the
RadioMobile division of our RF Wireless segment. During 2012, Cables Unlimited
introduced its newly designed OptiFlex™ Hybrid Custom Fiber Optic and DC Power
Cabling solution for wireless towers and this new product line has been very
well received in the market. As we begin 2013, we continue to see strong
demand for this product. Furthermore, our RF Wireless segment saw particularly
strong growth in the fourth quarter due to deliveries related to a previously
reported $2.6 million order from the Los Angeles County Fire Department.
Deliveries on this order are expected to continue into the first two quarters
of fiscal 2013,” said Howard Hill, RFI’s CEO.
Sales at Cables Unlimited were $4,905,000 for the fourth quarter compared to
$1,734,000 in the fourth quarter of fiscal 2011. Cables Unlimited reported
gross margin of 33% compared to 22% in the same quarter last year. Operating
income for Cables Unlimited in the fourth quarter was $1,069,000, or 22% of
sales, compared to an operating loss of $66,000 in the fourth quarter of last
RF Connector and Cable Assembly segment sales increased 2% to $3,785,000 in
the quarter with gross margin of 52% as compared to sales of $3,724,000 with
gross margin of 53% in the same quarter last year. Operating income increased
to $445,000, or 12% of sales, from $181,000, or 5% of sales.
Fourth quarter sales at Bioconnect increased 70% to a record $586,000 with
gross margin of 35% as compared to fiscal 2011 fourth quarter sales of
$345,000. Higher gross margin and lower SG&A drove operating income to $97,000
or 17% of sales, compared to $12,000 in the fourth quarter last year.
As a result of its $2.6 million order with the Los Angeles County Fire
Department, RF Wireless sales for the quarter grew 829% to $1,253,000 compared
to $151,000 in the fourth quarter of fiscal 2011. Gross margin for the fourth
quarter was 45% of sales, compared to 39% of sales last year. Operating income
at RF Wireless for the quarter was $269,000 compared to a loss of $160,000 in
the fourth quarter last year.
Fiscal 2012 Results
Mr. Hill stated, “2012 was an exceptional year for the Company, with strong
performance from all of our divisions, with each division growing and
contributing to our 19^th consecutive year of profitability.”
For the fiscal year ended October 31, 2012, revenues increased 56% to
$30,233,000 as compared to revenues of $19,434,000 in fiscal 2011.
Consolidated net income was $2,612,000 or $0.38 per basic and $0.34 per
diluted share as compared to consolidated net income of $773,000 or $0.12 per
basic and $0.11 per diluted share in the prior year.
Sales at Cables Unlimited were $10,913,000 for fiscal 2012 compared to
$2,644,000 in the four and one half month period after the acquisition of
Cables Unlimited on June 15, 2011. Cables Unlimited reported gross margin of
33% compared to 27% last year. Operating income for Cables Unlimited in fiscal
2012 was $1,720,000, or 16% of sales, compared to $22,000, or 1% of sales last
RF Connector and Cable Assembly sales increased 2% to $14,176,000 for the year
with gross margin of 52% as compared to sales of $13,868,000 in fiscal 2011.
Operating income increased to $1,599,000, or 11% of sales, from $1,317,000, or
10% of sales last year.
Fiscal 2012 sales at Bioconnect increased 21% to a record $2,598,000 with
gross margin of 41% as compared to fiscal 2011 sales of $2,154,000 and gross
margin of 37%. Higher gross margin and lower SG&A drove operating income to
$653,000, or 25% of sales, compared to $439,000, or 20% of sales last year.
RF Wireless sales more than tripled to $2,545,000 compared to $769,000 in
fiscal 2011. RF Wireless reported its first profitable year with $127,000 in
operating income compared to an operating loss of $669,000 last year.
At October 31, 2012 the Company reported cash and cash equivalents of
$5,492,000 and working capital of $14,904,000. Stockholders’ equity was
$20,230,000, or $2.90 per outstanding share.
“Subsequent to the close of the fiscal year, we announced a regular quarterly
cash dividend of $0.05 per common share. Also, in light of certain tax
uncertainties related to calendar year 2013, we accelerated a portion of the
anticipated calendar 2013 common stock dividend payments into 2012. We are
confident that the strength of our business supports this payment and view
this as an opportunity to show our appreciation of our shareholders and our
commitment to enhancing shareholder returns,” Mr. Hill stated.
“We believe our solid balance sheet provides a firm foundation for future
growth, and we are particularly encouraged by the first two months of Q1 2013
which point to strong growth and profitability for the quarter,” concluded
Conference Call Information
RF Industries will host a conference call on Tuesday, January 22, 2013 at
12:00 Noon Eastern Time to discuss its fiscal year 2012 fourth quarter and
fiscal year end results. To participate, callers should dial (877) 407-9210
and international callers may dial (201) 689-8049 and reference conference
i.d. 406878. A simultaneous webcast of the conference call can be accessed
from the Investor Information page at www.rfindustries.com.
A replay of the call will be available until February 22, 2013 and may be
accessed by dialing (877) 660-6853 or international callers should call (201)
612-7415. Callers should use conference i.d. 406878.
About RF Industries
RFI manufactures, designs and distributes Radio Frequency (RF) connectors and
cable assemblies, medical cabling products, RF wireless products and fiber
optic cable products. Coaxial connectors, cable assemblies and custom
microwave RF connectors are used for Wi-Fi, PCS, radio, test instruments,
computer networks, antenna devices, aerospace, OEM and Government agencies.
Medical Cabling and Interconnector products are specialized custom electrical
cabling products for the medical equipment monitoring market. RF Wireless
products include digital data transceivers for industrial monitoring, wide
area networks, GPS tracking and mobile wireless network solutions. Fiber optic
cable, connector and harness products serve computer, aerospace, computer
networking and specialty applications.
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 operations of the Cables Unlimited division which was acquired
in June 2011; and the Company’s reliance on certain distributors for a
significant portion of anticipated revenues. 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. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share and share amounts)
Three Months Ended Years Ended
October 31, October 31,
2012 2011 2012 2011
Net sales $ 10,529 $ 5,954 $ 30,233 $ 19,434
Cost of sales 6,173 3,440 16,999 10,098
Gross profit 4,356 2,514 13,234 9,336
Engineering 299 343 1,134 1,247
Selling and 2,177 2,185 8,025 6,953
operating 2,476 2,528 9,159 8,200
Operating 1,880 (14 ) 4,075 1,136
income 2 (7 ) 38 16
provision for 1,882 (21 ) 4,113 1,152
Provision for 724 29 1,501 379
Consolidated 1,158 (50 ) 2,612 773
controlling -- 4 1 (3 )
Ltd. and $ 1,158 $ (46 ) $ 2,611 $ 776
Basic $ 0.17 $ (0.01 ) $ 0.38 $ 0.12
Diluted $ 0.15 $ (0.01 ) $ 0.34 $ 0.11
Basic 6,938,357 7,135,549 6,908,890 6,382,845
Diluted 7,799,796 7,898,944 7,680,743 7,291,848
RF INDUSTRIES, LTD. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEET
(in thousands, except share data)
Cash & Cash Equivalents $ 5,492 $ 1,761
Restricted Cash -- 67
Certificates of Deposit -- 4,095
Trade Accounts Receivable, net 5,167 2,606
Inventories 6,984 6,189
Prepaid Income Taxes -- 572
Other Current Assets 640 512
Deferred Tax Assets 761 611
TOTAL CURRENT ASSETS 19,044 16,413
Property and Equipment, net 1,204 2,443
Goodwill 3,076 3,076
Amortizable intangible assets, net 1,627 1,866
Non-amortizable intangible assets 410 410
Note Receivable from Stockholder 67 67
Other Assets 35 103
TOTAL ASSETS $ 25,463 $ 24,378
LIABILITIES AND EQUITY
Accounts Payable $ 1,429 $ 521
Accrued Expenses 2,101 1,580
Mortgages Payable -- 1,394
Income Taxes Payable 610 --
TOTAL CURRENT LIABILITIES 4,140 3,495
Deferred Tax Liabilities 1,077 1,072
Other Long-Term Liabilities 16 133
TOTAL LIABILITIES 5,233 4,700
COMMITMENTS AND CONTINGENCIES
Common Stock – authorized 20,000,000 70 71
shares at $0.01 par value;
6,978,374 and 7,110,507 shares issued
and outstanding, respectively
Additional Paid-in Capital 12,007 11,382
Retained Earnings 8,153 8,011
Total RF Industries, Ltd. and Subsidiary 20,230 19,464
Non-controlling Interest -- 214
TOTAL EQUITY 20,230 19,678
TOTAL LIABILITIES AND EQUITY $ 25,463 $ 24,378
Institutional Marketing Services (IMS)
John Nesbett/Jennifer Belodeau
RF Industries Ltd.
James Doss, 858-549-6340
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