FORM 8-K |
September 28, 2015 | 0-7928 | |
Date of Report (Date of earliest event reported) | Commission File Number |
(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 July 31, 2015 was $117.7 million compared to $133.4 million as of July 31, 2014. |
• | Total bookings for the three and twelve months ended July 31, 2015 were $65.2 million and $291.6 million, respectively, compared to $62.1 million and $290.9 million for the three and twelve months ended July 31, 2014, respectively. |
• | Adjusted EBITDA was $12.0 million and $51.8 million for the three and twelve months ended July 31, 2015, respectively, as compared to $16.7 million and $61.3 million for the three and twelve months ended July 31, 2014, respectively. Adjusted EBITDA is a Non-GAAP financial measure and is defined in the below table. |
• | The Company's effective income tax rate in the fourth quarter of fiscal 2015 was 32.6%, which includes a net discrete tax benefit of approximately $0.2 million. The Company's effective income tax rate of 31.6% for the twelve months ended July 31, 2015 reflects a net discrete tax benefit of approximately $1.0 million. The Company's effective income tax rate, excluding discrete tax items in fiscal 2015, was 34.5%. |
• | During the twelve months ended July 31, 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 September 25, 2015, the Company is authorized to repurchase approximately $8.7 million of additional common stock pursuant to its existing stock repurchase program. There were no repurchases of common stock during the three months ended July 31, 2015. |
• | As of July 31, 2015, the Company had $151.0 million of cash and cash equivalents which does not reflect the quarterly dividend payment of $4.8 million that was paid on August 18, 2015. |
• | As discussed further in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission today, the Company's President and Chief Executive Officer continues to perform an assessment of operations to determine whether or not a different approach may enhance our business, increase operational efficiencies and help us grow successfully. This assessment is ongoing and may result in future one-time charges which are not reflected in the Company's updated fiscal 2016 earnings guidance. |
(Unaudited) | (Audited) | |||||||||||
Three months ended July 31, | Twelve months ended July 31, | |||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||
Net sales | $ | 77,463,000 | 89,378,000 | 307,289,000 | 347,150,000 | |||||||
Cost of sales | 44,087,000 | 50,033,000 | 168,405,000 | 195,712,000 | ||||||||
Gross profit | 33,376,000 | 39,345,000 | 138,884,000 | 151,438,000 | ||||||||
Expenses: | ||||||||||||
Selling, general and administrative | 16,123,000 | 17,280,000 | 62,680,000 | 67,147,000 | ||||||||
Research and development | 7,649,000 | 8,444,000 | 35,916,000 | 34,108,000 | ||||||||
Amortization of intangibles | 1,529,000 | 1,561,000 | 6,211,000 | 6,285,000 | ||||||||
25,301,000 | 27,285,000 | 104,807,000 | 107,540,000 | |||||||||
Operating income | 8,075,000 | 12,060,000 | 34,077,000 | 43,898,000 | ||||||||
Other expenses (income): | ||||||||||||
Interest expense | 73,000 | 295,000 | 479,000 | 6,304,000 | ||||||||
Interest income and other | (124,000 | ) | (156,000 | ) | (405,000 | ) | (913,000 | ) | ||||
Income before provision for income taxes | 8,126,000 | 11,921,000 | 34,003,000 | 38,507,000 | ||||||||
Provision for income taxes | 2,651,000 | 3,933,000 | 10,758,000 | 13,356,000 | ||||||||
Net income | $ | 5,475,000 | 7,988,000 | 23,245,000 | 25,151,000 | |||||||
Net income per share: | ||||||||||||
Basic | $ | 0.34 | 0.50 | 1.43 | 1.58 | |||||||
Diluted | $ | 0.34 | 0.48 | 1.42 | 1.37 | |||||||
Weighted average number of common shares outstanding – basic | 16,153,000 | 16,124,000 | 16,203,000 | 15,943,000 | ||||||||
Weighted average number of common and common equivalent shares outstanding – diluted | 16,277,000 | 16,671,000 | 16,418,000 | 20,906,000 | ||||||||
Dividends declared per issued and outstanding common share as of the applicable dividend record date | $ | 0.30 | 0.30 | 1.20 | 1.175 |
July 31, 2015 | July 31, 2014 | |||||
Assets | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 150,953,000 | 154,500,000 | |||
Accounts receivable, net | 69,255,000 | 54,887,000 | ||||
Inventories, net | 62,068,000 | 61,332,000 | ||||
Prepaid expenses and other current assets | 7,396,000 | 9,947,000 | ||||
Deferred tax asset, net | 11,084,000 | 10,178,000 | ||||
Total current assets | 300,756,000 | 290,844,000 | ||||
Property, plant and equipment, net | 15,370,000 | 18,536,000 | ||||
Goodwill | 137,354,000 | 137,354,000 | ||||
Intangibles with finite lives, net | 20,009,000 | 26,220,000 | ||||
Deferred financing costs, net | — | 65,000 | ||||
Other assets, net | 388,000 | 833,000 | ||||
Total assets | $ | 473,877,000 | 473,852,000 | |||
Liabilities and Stockholders’ Equity | ||||||
Current liabilities: | ||||||
Accounts payable | $ | 15,708,000 | 18,902,000 | |||
Accrued expenses and other current liabilities | 29,470,000 | 29,803,000 | ||||
Dividends payable | 4,839,000 | 4,844,000 | ||||
Customer advances and deposits | 14,320,000 | 12,610,000 | ||||
Interest payable | — | 29,000 | ||||
Total current liabilities | 64,337,000 | 66,188,000 | ||||
Other liabilities | 3,633,000 | 4,364,000 | ||||
Income taxes payable | 1,573,000 | 2,743,000 | ||||
Deferred tax liability, net | 2,925,000 | 3,632,000 | ||||
Total liabilities | 72,468,000 | 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 31,165,401 shares and 31,016,469 shares at July 31, 2015 and 2014, respectively | 3,117,000 | 3,102,000 | ||||
Additional paid-in capital | 427,083,000 | 421,240,000 | ||||
Retained earnings | 413,058,000 | 409,443,000 | ||||
843,258,000 | 833,785,000 | |||||
Less: | ||||||
Treasury stock, at cost (15,033,317 shares and 14,857,582 shares at July 31, 2015 and 2014, respectively) | (441,849,000 | ) | (436,860,000 | ) | ||
Total stockholders’ equity | 401,409,000 | 396,925,000 | ||||
Total liabilities and stockholders’ equity | $ | 473,877,000 | 473,852,000 |
Three months ended July 31, | Twelve months ended July 31, | |||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||
Reconciliation of GAAP Net Income to Adjusted EBITDA(1): | ||||||||||||
GAAP net income | $ | 5,475,000 | 7,988,000 | 23,245,000 | 25,151,000 | |||||||
Income taxes | 2,651,000 | 3,933,000 | 10,758,000 | 13,356,000 | ||||||||
Net interest (income) expense and other | (51,000 | ) | 139,000 | 74,000 | 5,391,000 | |||||||
Amortization of stock-based compensation | 721,000 | 1,177,000 | 4,363,000 | 4,263,000 | ||||||||
Depreciation and other amortization | 3,158,000 | 3,249,000 | 12,736,000 | 13,006,000 | ||||||||
Strategic alternatives analysis expenses | — | 225,000 | 585,000 | 225,000 | ||||||||
Restructuring benefit related to the wind-down of microsatellite product line | — | — | — | (56,000 | ) | |||||||
Adjusted EBITDA | $ | 11,954,000 | 16,711,000 | 51,761,000 | 61,336,000 |
(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. |