EX-99.1

EX-99.1 5 d501777dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

LOGO

For Immediate Release

For Details Contact:

Edward J. Richardson

Chairman and CEO

Phone: (630) 208-2340

E-mail: info@rell.com

Kathleen S. Dvorak

EVP & CFO

(630) 208-2208

Corporate Headquarters

40W267 Keslinger Road

PO Box 393

LaFox, IL 60147-0393

USA

Phone: (630) 208-2200

Fax: (630) 208-2550

RICHARDSON ELECTRONICS REPORTS THIRD QUARTER FISCAL 2013

RESULTS AND DECLARES CASH DIVIDEND

LaFox, IL, April 10, 2013: Richardson Electronics, Ltd. (NASDAQ: RELL) today reported sales and earnings for its third quarter ended March 2, 2013. The Company also announced that its Board of Directors declared a $.06 per share quarterly cash dividend.

Net sales for the third quarter of fiscal 2013 were $33.6 million, down 12.3% from net sales of $38.3 million during the third quarter of last year. Gross profit for the third quarter of fiscal 2013 was $9.9 million, or 29.5% of net sales, compared to $11.3 million, or 29.5% of net sales, during the third quarter of fiscal 2012.

Selling, General, and Administrative (“SG&A”) costs during the third quarter of fiscal 2013 were $9.3 million, compared to $9.5 million during last year’s third quarter.

Operating income during the third quarter of fiscal 2013 was $0.6 million, or 1.8% of net sales, compared to operating income of $1.8 million, or 4.8% of net sales, during the third quarter of last year. Income from continuing operations for the third quarter of fiscal 2013 was $0.6 million, or $0.04 per diluted common share, compared to income from continuing operations of $1.6 million, or $0.09 per diluted common share during the third quarter of last year.

“We continue to experience volatility in sales demand in the markets we serve, particularly in Europe and China. While we are disappointed with sales, we remain cautiously optimistic that the economy is stabilizing on a global basis, and we should see a return to normal purchasing patterns in the coming months. The month of February was the strongest month in North America that our EDG business has had in two years. In the meantime, we are closely managing our working capital investments and expenses. We generated nearly $5 million of cash from operating activities during the first nine months of this fiscal year,” said Edward J. Richardson, Chairman, Chief Executive Officer and President.

“We are currently forecasting our fourth quarter sales to be in the range of $36 million to $38 million. We are in an excellent position to help customers replace tubes, service their equipment, and design engineered solutions,” concluded Mr. Richardson.

FINANCIAL SUMMARY—THREE MONTHS ENDED MARCH 2, 2013

•

Net sales for the third quarter of fiscal 2013 were $33.6 million, down 12.3%, compared to net sales of $38.3 million during the third quarter of last year.

•

Gross margin as a percentage of net sales was 29.5% during the third quarter of fiscal 2013 and last year’s third quarter.

•

SG&A expenses during the third quarter of fiscal 2013 were $9.3 million, or 27.7% of net sales, compared to $9.5 million, or 24.7% of net sales, during the third quarter of last year.

•

Income from continuing operations during the third quarter of fiscal 2013 was $0.6 million, or $0.04 per diluted common share, compared to income from continuing operations of $1.6 million, or $0.09 per diluted common share, during the third quarter of last year.

•

Loss from discontinued operations, net of tax, was $0.2 million during the third quarter of fiscal 2013 compared to a loss from discontinued operations, net of tax, of $0.3 million during the third quarter of last year.

•

Net income during the third quarter of fiscal 2013 was $0.4 million, or $0.03 per diluted common share, compared to net income of $1.3 million, or $0.08 per diluted common share during the third quarter of last year.

FINANCIAL SUMMARY—NINE MONTHS ENDED MARCH 2, 2013

•

Net sales for the first nine months of fiscal 2013 were $105.9 million, down 11.0% compared to net sales of $119.0 million during the first nine months of last year.

•

Gross margin as a percentage of net sales decreased to 29.6% during the first nine months of fiscal 2013 compared to 30.0% during the first nine months of last year.

•

SG&A expenses during the first nine months of fiscal 2013 were $29.7 million, or 28.0% of net sales, compared to $30.2 million, or 25.4% of net sales during the first nine months of last year.

•

Operating income during the first nine months of fiscal 2013 was $1.6 million, or 1.5% of net sales compared to operating income of $5.6 million, or 4.7% of net sales during the first nine months of last year.

•

Income from continuing operations during the first nine months of fiscal 2013 was $1.9 million, or $0.12 per diluted common share, compared to income from continuing operations of $4.2 million, or $0.25 per diluted common share during the first nine months of last year.

•

Loss from discontinued operations, net of tax, was $0.5 million, during the first nine months of fiscal 2013 compared to income from discontinued operations, net of tax, of $1.6 million, or $0.09 per diluted common share during the first nine months of last year.

•

Net income during the first nine months of fiscal 2013 was $1.4 million, or $0.09 per diluted common share compared to net income of $5.8 million, or $0.34 per diluted common share, during the first nine months of last year.

CASH DIVIDEND

The Company also announced today that its Board of Directors declared a $0.06 dividend per share to all holders of common stock and a $0.054 cash dividend per share to all holders of Class B common stock. The dividend will be payable on May 24, 2013, to all common stockholders of record on May 10, 2013. The Company currently has 12.3 million outstanding shares of common stock and 2.7 million outstanding shares of Class B common stock.

CONFERENCE CALL INFORMATION

On Thursday, April 11, 2013, at 9:00 a.m. CT, Edward J. Richardson, Chairman and Chief Executive Officer, and Kathleen S. Dvorak, Chief Financial Officer, will host a conference call to discuss the Company’s third quarter results for fiscal 2013. A question and answer session will be included as part of the call’s agenda. To listen to the call, please dial (888) 339-2688 and enter passcode 70507217 approximately five minutes prior to the start of the call. A replay of the call will be available beginning at 11:00 a.m. CT on April 11, 2013, for seven days. The telephone numbers for the replay are (USA) (888) 286-8010 and (International) (617) 801-6888; access code 83988119.

FORWARD-LOOKING STATEMENTS

This release includes certain “forward-looking” statements as defined by the Securities and Exchange Commission. Statements in this press release regarding the Company’s business which are not historical facts represent “forward-looking” statements that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Item 1A, “Risk Factors” in the Company’s Annual Report on Form 10-K filed on July 27, 2012, and in the Company’s Proxy Statement on Schedule 14A filed on August 30, 2012. The Company assumes no responsibility to update the forward-looking statements in this release as a result of new information, future events, or otherwise.

ABOUT RICHARDSON ELECTRONICS, LTD.

Richardson Electronics, Ltd. is a leading global provider of engineered solutions, power grid and microwave tubes and related consumables, and customized display solutions serving customers in the alternative energy, aviation, broadcast, communications, industrial, marine, medical, military, scientific and semiconductor markets. The Company’s strategy is to provide specialized technical expertise and “engineered solutions” based on our core engineering and manufacturing capabilities. The Company provides solutions and adds value through design-in support, systems integration, prototype design and manufacturing, testing, logistics, and aftermarket technical service and repair. More information is available online at www.rell.com.

Richardson Electronics common stock trades on the NASDAQ Global Select Market under the ticker symbol RELL.

Richardson Electronics, Ltd.

Consolidated Balance Sheets

(in thousands, except per share amounts)


	Unaudited		Audited
	March 2,		June 2,
	2013		2012
Assets
Current assets:
Cash and cash equivalents	$	77,023	$	43,893
Accounts receivable, less allowance of $1,067 and $1,058		19,748		19,727
Inventories		34,832		34,675
Prepaid expenses and other assets		1,165		806
Deferred income taxes		2,002		2,095
Income tax receivable		6,800		6,572
Investments—current		63,573		105,009
Discontinued operations—assets		379		514

Total current assets		205,522		213,291

Non-current assets:
Property, plant and equipment, net		4,731		4,375
Goodwill		2,215		1,261
Other intangibles		247		355
Non-current deferred income taxes		1,437		1,458
Investments—non-current		7,147		10,683

Total non-current assets		15,777		18,132

Total assets	$	221,299	$	231,423

Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	13,002	$	12,611
Accrued liabilities		7,770		8,466
Discontinued operations—liabilities		831		253

Total current liabilities		21,603		21,330

Non-current liabilities:
Long-term income tax liabilities		7,057		7,306
Other non-current liabilities		1,343		1,213
Discontinued operations—non-current liabilities		1,461		1,361

Total non-current liabilities		9,861		9,880

Total liabilities		31,464		31,210

Commitments and contingencies		—		—
Stockholders’ equity
Common stock, $0.05 par value; issued 12,297 shares at March 2, 2013, and 13,074 shares at June 2, 2012		611		654
Class B common stock, convertible, $0.05 par value; issued 2,740 shares at March 2, 2013 and 2,920 shares at June 2, 2012		141		146
Preferred stock, $1.00 par value, no shares issued		—		—
Additional paid-in-capital		77,069		88,217
Common stock in treasury, at cost, -0- shares at March 2, 2013, and 18 shares at June 2, 2012		—		(216	)
Retained earnings		102,883		104,139
Accumulated other comprehensive income		9,131		7,273

Total stockholders’ equity		189,835		200,213

Total liabilities and stockholders’ equity	$	221,299	$	231,423

Richardson Electronics, Ltd.

Unaudited Consolidated Statements of Comprehensive Income

(in thousands, except per share amounts)


	Three Months Ended						Nine Months Ended
	March 2,			March 3,			March 2,			March 3,
	2013			2012			2013			2012
Net sales	$	33,630		$	38,330		$	105,883		$	118,979
Cost of sales		23,720			27,033			74,585			83,290

Gross profit		9,910			11,297			31,298			35,689
Selling, general, and administrative expenses		9,318			9,457			29,695			30,202
Loss on disposal of assets		—			(3	)		(2	)		(73	)

Operating income		592			1,843			1,605			5,560

Other (income) expense:
Investment/interest loss		(260	)		(357	)		(995	)		(1,003	)
Foreign exchange (gain) loss		460			(19	)		720			276
Other, net		3			(8	)		(62	)		(9	)

Total other (income) expense		203			(384	)		(337	)		(736	)

Income from continuing operations before income taxes		389			2,227			1,942			6,296
Income tax provision (benefit)		(197	)		636			41			2,047

Income from continuing operations		586			1,591			1,901			4,249
Income (loss) from discontinued operations, net of tax		(182	)		(252	)		(472	)		1,551

Net income		404			1,339			1,429			5,800

Foreign currency translation gain (loss)		(103	)		(23	)		1,844			(1,228	)
Fair value adjustments on investments		9			32			14			(19	)

Comprehensive income	$	310		$	1,348		$	3,287		$	4,553

Net income per Common share—Basic:
Income from continuing operations	$	0.04		$	0.10		$	0.13		$	0.25
Income (loss) from discontinued operations		(0.01	)		(0.02	)		(0.03	)		0.09

Total net income per Common share—Basic:	$	0.03		$	0.08		$	0.10		$	0.34

Net income per Class B common share—Basic:
Income from continuing operations	$	0.04		$	0.09		$	0.11		$	0.23
Income (loss) from discontinued operations		(0.01	)		(0.01	)		(0.03	)		0.08

Total net income per Class B common share—Basic:	$	0.03		$	0.08		$	0.08		$	0.31

Net income per Common share—Diluted:
Income from continuing operations	$	0.04		$	0.09		$	0.12		$	0.25
Income (loss) from discontinued operations		(0.01	)		(0.01	)		(0.03	)		0.09

Total net income per Common share—Diluted:	$	0.03		$	0.08		$	0.09		$	0.34

Net income per Class B common share—Diluted:
Income from continuing operations	$	0.04		$	0.09		$	0.11		$	0.23
Income (loss) from discontinued operations		(0.01	)		(0.01	)		(0.03	)		0.08

Total net income per Class B common share—Diluted:	$	0.03		$	0.08		$	0.08		$	0.31

Weighted average number of shares:
Common shares—Basic		12,292			13,988			12,500			14,134

Class B common shares—Basic		2,740			2,940			2,822			2,944

Common shares—Diluted		15,165			17,050			15,455			17,244

Class B common shares—Diluted		2,740			2,940			2,822			2,944

Dividends per common share	$	0.060		$	0.050		$	0.180		$	0.150

Dividends per Class B common share	$	0.054		$	0.045		$	0.162		$	0.135

Richardson Electronics, Ltd.

Unaudited Consolidated Statements of Cash Flows

(in thousands)


	Three Months Ended						Nine Months Ended
	March 2,			March 3,			March 2,			March 3,
	2013			2012			2013			2012
Operating activities:
Net income	$	404		$	1,339		$	1,429		$	5,800
Adjustments to reconcile net income to cash provided by (used in) operating activities:
Depreciation and amortization		218			256			783			820
(Gain) loss on sale of investments		(5	)		10			(26	)		11
(Gain) loss on disposal of assets		18			(3	)		16			(73	)
Stock compensation expense		81			131			413			393
Change in assets and liabilities, net of effects of acquired businesses:
Deferred income taxes		(8	)		450			(16	)		2,265
Accounts receivable		1,881			(690	)		477			(754	)
Income tax receivable		(419	)		774			(228	)		(4,810	)
Inventories		452			(2,683	)		2,167			(8,275	)
Prepaid expenses and other assets		102			162			(324	)		8,588
Accounts payable		(979	)		(144	)		255			(3,228	)
Accrued liabilities		(95	)		(6,664	)		(295	)		(49,530	)
Long-term income tax liabilities		191			1,634			(126	)		(5,381	)
Other		158			(138	)		348			1,610

Net cash provided by (used in) operating activities		1,999			(5,566	)		4,873			(52,564	)

Investing activities:
Cash consideration paid for acquired businesses		—			—			(2,557	)		(2,297	)
Capital expenditures		(512	)		(8	)		(1,069	)		(82	)
Proceeds from sale of assets		—			4			4			20
Proceeds from maturity of investments		30,032			116,385			127,542			318,767
Purchases of investments		(6,959	)		(109,642	)		(82,521	)		(394,804	)
Proceeds from sales of available-for-sale securities		24			62			161			183
Purchases of available-for-sale securities		(24	)		(62	)		(161	)		(183	)
Other		—			(33	)		—			18

Net cash provided by (used in) investing activities		22,561			6,706			41,399			(78,378	)

Financing activities:
Repurchase of common stock		—			(1,196	)		(11,550	)		(13,084	)
Proceeds from issuance of common stock		65			298			148			660
Cash dividends paid		(886	)		(830	)		(2,685	)		(2,508	)
Other		—			3			—			6

Net cash used in financing activities		(821	)		(1,725	)		(14,087	)		(14,926	)

Effect of exchange rate changes on cash and cash equivalents		(234	)		(167	)		945			(677	)

Increase/ (decrease) in cash and cash equivalents		23,505			(752	)		33,130			(146,545	)
Cash and cash equivalents at beginning of period		53,518			25,182			43,893			170,975

Cash and cash equivalents at end of period	$	77,023		$	24,430		$	77,023		$	24,430

Richardson Electronics, Ltd.

Net Sales and Gross Profit

For the Third Quarter and First Nine Months of Fiscal 2013 and Fiscal 2012

(in thousands)

By Strategic Business Unit:

Net Sales


	FY 2013		FY 2012		% Change
Third Quarter
EDG	$	24,333	$	26,867		(9.4	%)
Canvys		9,297		11,463		(18.9	%)

Total	$	33,630	$	38,330		(12.3	%)


	FY 2013		FY 2012		% Change
First Nine Months
EDG	$	76,146	$	85,618		(11.1	%)
Canvys		29,737		33,361		(10.9	%)

Total	$	105,883	$	118,979		(11.0	%)

Gross Profit


	FY 2013		% of Net Sales			FY 2012		% of Net Sales
Third Quarter
EDG	$	7,407		30.4	%	$	8,085		30.1	%
Canvys		2,503		26.9	%		3,212		28.0	%

Total	$	9,910		29.5	%	$	11,297		29.5	%


			% of					% of
	FY 2013		Net Sales			FY 2012		Net Sales
First Nine Months
EDG	$	23,337		30.6	%	$	26,302		30.7	%
Canvys		7,961		26.8	%		9,387		28.1	%

Total	$	31,298		29.6	%	$	35,689		30.0	%