FORM 8-K |
June 4, 2015 | 0-7928 | |
Date of Report (Date of earliest event reported) | Commission File Number |
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(Exact name of registrant as specified in its charter) |
Delaware | 11-2139466 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |
68 South Service Road, Suite 230 Melville, New York 11747 | ||
(Address of Principal Executive Offices) (Zip Code) | ||
(631) 962-7000 | ||
(Registrant’s telephone number, including area code) |
Exhibit Number | Description |
By: | /s/ Michael D. Porcelain Name: Michael D. Porcelain Title: Senior Vice President and |
• | Backlog as of April 30, 2015 was $130.0 million compared to $129.4 million as of January 31, 2015. |
• | Total bookings for the three and nine months ended April 30, 2015 were $72.2 million and $226.4 million, respectively, compared to $81.6 million and $228.8 million for the three and nine months ended April 30, 2014, respectively. |
• | Adjusted EBITDA was $11.6 million and $39.8 million for the three and nine months ended April 30, 2015, respectively, as compared to $14.8 million and $44.6 million for the three and nine months ended April 30, 2014, respectively. Adjusted EBITDA is a Non-GAAP financial measure and is defined in the below table. |
• | Our effective tax rate for the three months ended April 30, 2015 reflects a discrete tax benefit of approximately $0.3 million, principally related to the reversal of tax contingencies no longer required due to the expiration of applicable statutes of limitation. Excluding the impact of any discrete tax items, the Company's fiscal 2015 estimated effective tax rate is expected to approximate 34.75%. |
• | During the three months ended April 30, 2015, the Company repurchased 175,735 shares of its common stock in open-market transactions with an average price per share of $28.39 and at an aggregate cost of $5.0 million (including transaction costs). As of June 3, 2015, the Company is authorized to repurchase approximately $8.7 million of additional common stock pursuant to its existing stock repurchase program. |
• | As of April 30, 2015, the Company had $142.0 million of cash and cash equivalents which does not reflect the quarterly dividend of $4.8 million that was paid on May 21, 2015. |
• | As discussed further in the Company's Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission today, the Company's President and Chief Executive Officer initiated an assessment of its operations to determine if changes in the Company's business or operations would help it better serve its customers and potentially reduce annual operating expenses. This assessment is ongoing and may result in future one-time charges which are not reflected in the Company’s updated fiscal 2015 earnings guidance. |
Three months ended April 30, | Nine months ended April 30, | |||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||
Net sales | $ | 71,633,000 | 88,905,000 | 229,826,000 | 257,772,000 | |||||||
Cost of sales | 39,325,000 | 50,559,000 | 124,318,000 | 145,679,000 | ||||||||
Gross profit | 32,308,000 | 38,346,000 | 105,508,000 | 112,093,000 | ||||||||
Expenses: | ||||||||||||
Selling, general and administrative | 15,005,000 | 17,320,000 | 46,557,000 | 49,867,000 | ||||||||
Research and development | 8,582,000 | 8,899,000 | 28,267,000 | 25,664,000 | ||||||||
Amortization of intangibles | 1,561,000 | 1,560,000 | 4,682,000 | 4,724,000 | ||||||||
25,148,000 | 27,779,000 | 79,506,000 | 80,255,000 | |||||||||
Operating income | 7,160,000 | 10,567,000 | 26,002,000 | 31,838,000 | ||||||||
Other expenses (income): | ||||||||||||
Interest expense | 72,000 | 1,993,000 | 406,000 | 6,009,000 | ||||||||
Interest income and other | (107,000 | ) | (256,000 | ) | (281,000 | ) | (757,000 | ) | ||||
Income before provision for income taxes | 7,195,000 | 8,830,000 | 25,877,000 | 26,586,000 | ||||||||
Provision for income taxes | 2,235,000 | 2,955,000 | 8,107,000 | 9,423,000 | ||||||||
Net income | $ | 4,960,000 | 5,875,000 | 17,770,000 | 17,163,000 | |||||||
Net income per share: | ||||||||||||
Basic | $ | 0.31 | 0.39 | 1.10 | 1.08 | |||||||
Diluted | $ | 0.30 | 0.32 | 1.08 | 0.92 | |||||||
Weighted average number of common shares outstanding – basic | 16,202,000 | 15,200,000 | 16,220,000 | 15,882,000 | ||||||||
Weighted average number of common and common equivalent shares outstanding – diluted | 16,382,000 | 21,764,000 | 16,468,000 | 22,324,000 | ||||||||
Dividends declared per issued and outstanding common share as of the applicable dividend record date | $ | 0.30 | 0.30 | 0.90 | 0.875 |
April 30, 2015 | July 31, 2014 | |||||
Assets | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 142,044,000 | 154,500,000 | |||
Accounts receivable, net | 67,621,000 | 54,887,000 | ||||
Inventories, net | 68,252,000 | 61,332,000 | ||||
Prepaid expenses and other current assets | 9,754,000 | 9,947,000 | ||||
Deferred tax asset, net | 9,889,000 | 10,178,000 | ||||
Total current assets | 297,560,000 | 290,844,000 | ||||
Property, plant and equipment, net | 16,470,000 | 18,536,000 | ||||
Goodwill | 137,354,000 | 137,354,000 | ||||
Intangibles with finite lives, net | 21,538,000 | 26,220,000 | ||||
Deferred financing costs, net | — | 65,000 | ||||
Other assets, net | 873,000 | 833,000 | ||||
Total assets | $ | 473,795,000 | 473,852,000 | |||
Liabilities and Stockholders’ Equity | ||||||
Current liabilities: | ||||||
Accounts payable | $ | 15,020,000 | 18,902,000 | |||
Accrued expenses and other current liabilities | 27,075,000 | 29,803,000 | ||||
Dividends payable | 4,835,000 | 4,844,000 | ||||
Customer advances and deposits | 17,826,000 | 12,610,000 | ||||
Interest payable | — | 29,000 | ||||
Total current liabilities | 64,756,000 | 66,188,000 | ||||
Other liabilities | 3,916,000 | 4,364,000 | ||||
Income taxes payable | 1,778,000 | 2,743,000 | ||||
Deferred tax liability, net | 3,347,000 | 3,632,000 | ||||
Total liabilities | 73,797,000 | 76,927,000 | ||||
Commitments and contingencies | ||||||
Stockholders’ equity: | ||||||
Preferred stock, par value $.10 per share; shares authorized and unissued 2,000,000 | — | — | ||||
Common stock, par value $.10 per share; authorized 100,000,000 shares; issued 31,151,557 shares and 31,016,469 shares at April 30, 2015 and July 31, 2014, respectively | 3,115,000 | 3,102,000 | ||||
Additional paid-in capital | 426,255,000 | 421,240,000 | ||||
Retained earnings | 412,477,000 | 409,443,000 | ||||
841,847,000 | 833,785,000 | |||||
Less: | ||||||
Treasury stock, at cost (15,033,317 shares and 14,857,582 shares at April 30, 2015 and July 31, 2014, respectively) | (441,849,000 | ) | (436,860,000 | ) | ||
Total stockholders’ equity | 399,998,000 | 396,925,000 | ||||
Total liabilities and stockholders’ equity | $ | 473,795,000 | 473,852,000 | |||
Three months ended April 30, | Nine months ended April 30, | |||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||
Reconciliation of GAAP Net Income to Adjusted EBITDA(1): | ||||||||||||
GAAP net income | $ | 4,960,000 | 5,875,000 | 17,770,000 | 17,163,000 | |||||||
Income taxes | 2,235,000 | 2,955,000 | 8,107,000 | 9,423,000 | ||||||||
Net interest (income) expense and other | (35,000 | ) | 1,737,000 | 125,000 | 5,252,000 | |||||||
Amortization of stock-based compensation | 1,244,000 | 1,070,000 | 3,642,000 | 3,086,000 | ||||||||
Depreciation and other amortization | 3,227,000 | 3,210,000 | 9,578,000 | 9,757,000 | ||||||||
Strategic alternatives analysis expenses | — | — | 585,000 | — | ||||||||
Restructuring benefit related to the wind-down of microsatellite product line | — | (56,000 | ) | — | (56,000 | ) | ||||||
Adjusted EBITDA | $ | 11,631,000 | 14,791,000 | 39,807,000 | 44,625,000 |
(1) | Represents earnings before interest, income taxes, depreciation and amortization of intangibles and stock-based compensation, strategic alternatives analysis expenses and restructuring benefits related to the wind-down of the microsatellite product line of the Company’s mobile data communications segment. Adjusted EBITDA is a non-GAAP operating metric used by management in assessing the Company’s operating results. The Company’s definition of Adjusted EBITDA may differ from the definition of EBITDA used by other companies and may not be comparable to similarly titled measures used by other companies. Adjusted EBITDA is also a measure frequently requested by the Company’s investors and analysts. The Company believes that investors and analysts may use Adjusted EBITDA, along with other information contained in its SEC filings, in assessing its ability to generate cash flow and service debt. |