Exhibit 99.1
Company Contact:
RELM Wireless Corporation
William Kelly, EVP & CFO
(321) 984-1414
RELM Wireless Reports 2016 Full Year and Fourth Quarter
Results
Revenues Grew 70.5% and Operating Income Increased 200%
Year-Over-Year
WEST
MELBOURNE, Florida -- March 1, 2017 -- RELM Wireless Corporation
(NYSE MKT: RWC) today announced financial and operating results for
the quarter and year ended December 31, 2016.
For the
year ended December 31, 2016, revenues increased 70.5% to
approximately $50.7 million, compared with approximately $29.7
million for 2015. Operating income for the year increased 199.7% to
approximately $4.3 million, compared with approximately $1.4
million last year, while net income increased 158.3% to
approximately $2.7 million, or $0.19 per diluted share, compared
with approximately $1.0 million, or $0.08 per diluted share, for
the prior year.
Gross
profit margin for 2016 was 33.7% of sales, versus 41.3% of sales in
the previous year. Selling, general and administrative expenses
totaled approximately $12.8 million (25.2% of sales) in 2016,
compared with approximately $10.9 million (36.5% of sales) in
2015.
For the
fourth quarter ended December 31, 2016, revenues increased 4.0% to
approximately $7.2 million, compared with approximately $7.0
million for the fourth quarter of 2015. Operating income for the
quarter increased 21.2% to approximately $343,000, compared with
$283,000 for the same quarter last year. Net income for the quarter
ended December 31, 2016 was approximately $92,000, or $0.01 per
diluted share, compared with approximately $213,000 or $0.02 per
diluted share for the same quarter in 2015.
Gross
profit margin for the fourth quarter 2016 was 41.9% of sales,
compared with 39.3% of sales for the fourth quarter 2015. Selling,
general and administrative expenses totaled approximately $2.7
million (37.1% of sales) for the fourth quarter 2016, compared with
approximately $2.4 million (35.2% of sales) for the fourth quarter
2015.
The
Company had approximately $23.4 million in working capital as of
December 31, 2016, of which $14.4 million was comprised of cash and
trade receivables. This compares with working capital of
approximately $23.9 million as of December 31, 2015, of which $8.8
million was comprised of cash and trade receivables. As of December
31, 2016 the Company had no borrowings outstanding under its
revolving credit facility.
RELM
President Tim Vitou commented, “With sales exceeding $50
million, 2016 was a record year for RELM. Our contract with the
U.S. Transportation Security Administration (TSA) was a significant
contributor to a year-over-year growth rate exceeding 70%. With
over 19,000 radios deployed to 406 airports, the TSA program
demonstrates our ability to successfully handle large projects,
which should enhance our reputation and brand recognition, and
foster confidence with potential new customers.”
Mr
Vitou continued, “Beyond the TSA, sales in 2016 to other
customers, both domestic and international, also increased from the
previous year. Moving forward we are very excited about the future
of our core business the prospects for expanding our reach beyond
RELM’s historical niche in the land mobile radio
market.”
Conference Call and Webcast
The
Company will host a conference call and webcast for investors at
9:00 a.m. Eastern Time, Thursday, March 2, 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 March 2, 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 March 10, 2017, by dialing
877-481-4010 (international/local participants dial 919-882-2331)
and entering the conference replay ID# 13654405.
About RELM Wireless Corporation
As an
American Manufacturer for almost 70 years, RELM Wireless
Corporation has produced high-specification two-way communications
equipment of unsurpassed reliability and value for use by public
safety professionals and government agencies, as well as radios for
use in a wide range of commercial and industrial applications.
Advances include a broad new line of leading digital two-way radios
compliant with APCO Project 25 specifications. RELM’s
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.
# #
#
(Financial Tables To Follow)
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RELM WIRELESS CORPORATION
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Condensed Consolidated Statements of Income
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(In Thousands, Except Per Share Amounts)
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Three Months Ended
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Twelve Months Ended
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(Unaudited)
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12/31/2016
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12/31/2015
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12/31/2016
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12/31/2015
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Sales,
net
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$7,226
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$6,950
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$50,689
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$29,722
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Expenses:
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Cost
of products
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4,200
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4,222
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33,612
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17,440
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Selling,
general and administrative expenses
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2,683
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2,445
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12,792
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10,852
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Total
expenses
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6,883
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6,667
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46,404
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28,292
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|
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Operating
income
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343
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283
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4,285
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1,430
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Other income (expense):
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Interest
income
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5
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0
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9
|
1
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Other
expense
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(30)
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(83)
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(22)
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(45)
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Income
before income taxes
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318
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200
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4,272
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1,386
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Income
tax (expense) benefit
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(226)
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13
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(1,583)
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(345)
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Net
income
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$92
|
$213
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$2,689
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$1,041
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Net
earnings per share - basic
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$0.01
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$0.02
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$0.20
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$0.08
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Net
earnings per share - diluted
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$0.01
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$0.02
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$0.19
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$0.08
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Weighted
average common shares outstanding, basic
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13,733
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13,725
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13,735
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13,706
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Weighted
average common shares outstanding, diluted
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13,816
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13,817
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13,823
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13,848
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RELM WIRELESS CORPORATION
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Condensed Consolidated Balance Sheets
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(In Thousands, Except Share Data)
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December 31,
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December 31,
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2016
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2015
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|
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ASSETS
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Current
assets:
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Cash
and cash equivalents
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$10,910
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$4,669
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Trade
accounts receivable, net
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3,448
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4,122
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Inventories,
net
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13,999
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16,282
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Prepaid
expenses and other current assets
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1,410
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3,081
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Total
current assets
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29,767
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28,154
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Property,
plant and equipment, net
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2,486
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1,840
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Available-for-sale
securities
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6,472
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3,402
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Deferred
tax assets, net
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3,418
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5,461
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Capitalized
software, net
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176
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370
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Other
assets
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225
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222
|
|
|
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Total assets
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$42,544
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$39,449
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LIABILITIES AND
STOCKHOLDERS' EQUITY
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Current
liabilities:
|
|
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Accounts
payable
|
$1,973
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$2,285
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Accrued
compensation and related taxes
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2,193
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1,136
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Accrued
warranty expense
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650
|
538
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Accrued
other expenses and other current liabilities
|
169
|
168
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Dividends
payable
|
1,235
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-
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Deferred
revenue
|
142
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136
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Total
current liabilities
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6,362
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4,263
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Deferred
revenue
|
408
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366
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Total
liabilities
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6,770
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4,629
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Commitments
and contingencies
|
|
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Stockholders'
equity:
|
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Preferred
stock; $1.00 par value; 1,000,000 authorized
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shares,
none issued or outstanding.
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-
|
-
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Common
stock; $0.60 par value; 20,000,000 authorized
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|
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shares;
13,754,749 and 13,730,562 issued and outstanding
shares
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at
December 31, 2016 and 2015, respectively.
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8,253
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8,238
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Additional
paid-in capital
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25,382
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24,926
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Retained
earnings
|
240
|
1,259
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Accumulated
other comprehensive income
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2,061
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397
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Treasury
Stock, at cost
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(162)
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-
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Total
stockholders' equity
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35,774
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34,820
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|
|
|
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Total liabilities and stockholders' equity
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$42,544
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$39,449
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