Delaware
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0-24746
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52-0729657
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(State or other jurisdiction of
incorporation)
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(Commission File Number)
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(IRS Employer Identification
Number)
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a)
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Financial Statements of Businesses Acquired.
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b)
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Pro Forma Financial Information.
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c)
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Exhibits.
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Exhibit No.
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Description
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99.1
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Press Release dated October 31, 2012
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TESSCO Technologies Incorporated | |||
Date:
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October 31, 2012
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By:
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/s/ David M. Young
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David M. Young
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|||
Chief Financial Officer
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|||
(principal financial and accounting officer)
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Exhibit No.
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Description of Exhibit
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99.1
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Press Release dated October 31, 2012
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Contact:
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David Young
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Harriet Fried
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TESSCO Technologies Incorporated
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Lippert/Heilshorn & Associates
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Chief Financial Officer
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(212) 838-3777
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(410) 229-1380
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hfried@lhai.com
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young@tessco.com
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● | 33% total and 21% core market revenue growth | |
● | Quarterly EPS grows 45% to a record $0.64 | |
● | Quarterly EBITDA* per share grows 39% to a record $1.21 | |
● | FY13 EPS guidance updated to $1.90 to $2.15 | |
● | $0.18 per share quarterly dividend date set |
Fiscal Quarters Ended
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Six Months Ended
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|||||||||||||||||||
September 30, 2012
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July 1, 2012
|
September 25, 2011
|
September 30, 2012
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September 25, 2011
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||||||||||||||||
Revenues
|
$ | 197,238,300 | $ | 192,418,200 | $ | 148,837,400 | $ | 389,656,500 | $ | 312,352,400 | ||||||||||
Cost of goods sold
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158,613,300 | 156,925,000 | 114,847,500 | 315,538,300 | 241,162,100 | |||||||||||||||
Gross profit
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38,625,000 | 35,493,200 | 33,989,900 | 74,118,200 | 71,190,300 | |||||||||||||||
Selling, general and administrative expenses
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29,887,000 | 28,562,400 | 28,159,900 | 58,449,400 | 57,835,000 | |||||||||||||||
Income from operations
|
8,738,000 | 6,930,800 | 5,830,000 | 15,668,800 | 13,355,300 | |||||||||||||||
Interest , net
|
12,000 | 57,400 | 72,900 | 69,400 | 178,400 | |||||||||||||||
Income before provision for income taxes
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8,726,000 | 6,873,400 | 5,757,100 | 15,599,400 | 13,176,900 | |||||||||||||||
Provision for income taxes
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3,457,100 | 2,666,900 | 2,216,900 | 6,124,000 | 5,062,500 | |||||||||||||||
Net income
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$ | 5,268,900 | $ | 4,206,500 | $ | 3,540,200 | $ | 9,475,400 | $ | 8,114,400 | ||||||||||
Basic earnings per share
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$ | 0.66 | $ | 0.53 | $ | 0.46 | $ | 1.19 | $ | 1.05 | ||||||||||
Diluted earnings per share
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$ | 0.64 | $ | 0.51 | $ | 0.44 | $ | 1.15 | $ | 1.01 |
September 30, 2012
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April 1, 2012
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|||||||
(unaudited)
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(audited)
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|||||||
ASSETS
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||||||||
Current Assets:
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||||||||
Cash and cash equivalents
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$ | 16,985,900 | $ | 18,211,600 | ||||
Trade accounts receivable, net
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93,744,500 | 88,748,200 | ||||||
Product inventory
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76,289,800 | 53,360,300 | ||||||
Deferred tax assets
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3,135,100 | 3,135,100 | ||||||
Prepaid expenses and other current assets
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4,149,600 | 2,308,200 | ||||||
Total current assets
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194,304,900 | 165,763,400 | ||||||
Property and equipment, net
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22,999,100 | 22,905,700 | ||||||
Goodwill, net
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11,684,700 | 11,684,700 | ||||||
Other long-term assets
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2,095,200 | 2,143,900 | ||||||
Total assets
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$ | 231,083,900 | $ | 202,497,700 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
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||||||||
Current Liabilities:
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||||||||
Trade accounts payable
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$ | 108,433,000 | $ | 78,344,700 | ||||
Payroll, benefits and taxes
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8,467,600 | 17,211,600 | ||||||
Income and sales tax liabilities
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2,253,400 | 3,137,000 | ||||||
Accrued expenses and other current liabilities
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1,000,500 | 1,041,100 | ||||||
Revolving line of credit
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-- | -- | ||||||
Current portion of long-term debt
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249,200 | 249,200 | ||||||
Total current liabilities
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120,403,700 | 99,983,600 | ||||||
Deferred tax liabilities
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2,243,500 | 2,243,500 | ||||||
Long-term debt, net of current portion
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2,583,500 | 2,708,000 | ||||||
Other long-term liabilities
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3,894,100 | 3,910,700 | ||||||
Total liabilities
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129,124,800 | 108,845,800 | ||||||
Shareholders’ Equity:
|
||||||||
Preferred stock
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-- | -- | ||||||
Common stock
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91,000 | 88,000 | ||||||
Additional paid-in capital
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48,653,100 | 45,135,900 | ||||||
Treasury stock, at cost
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(48,075,400 | ) | (46,276,400 | ) | ||||
Retained earnings
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101,290,400 | 94,704,400 | ||||||
Accumulated other comprehensive loss
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-- | -- | ||||||
Total shareholders’ equity
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101,959,100 | 93,651,900 | ||||||
Total liabilities and shareholder’s equity
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$ | 231,083,900 | $ | 202,497,700 |
Fiscal Quarters Ended
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Six Months Ended
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|||||||||||||||||||
September 30, 2012
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July 1,
2012
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September 25, 2011
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September 30, 2012
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September 25, 2011
|
||||||||||||||||
Net income
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$ | 5,268,900 | $ | 4,206,500 | $ | 3,540,200 | $ | 9,475,400 | $ | 8,114,400 | ||||||||||
Add:
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||||||||||||||||||||
Provision for income taxes
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3,457,100 | 2,666,900 | 2,216,900 | 6,124,000 | 5,062,500 | |||||||||||||||
Interest, net
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12,000 | 57,400 | 72,900 | 69,400 | 178,400 | |||||||||||||||
Depreciation and amortization
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1,247,200 | 1,247,800 | 1,157,700 | 2,495,100 | 2,330,700 | |||||||||||||||
EBITDA
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$ | 9,985,200 | $ | 8,178,600 | $ | 6,987,700 | $ | 18,163,900 | $ | 15,686,000 | ||||||||||
EBITDA per diluted share
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$ | 1.21 | $ | 0.99 | $ | 0.87 | $ | 2.20 | $ | 1.96 |
TESSCO Technologies Incorporated
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||||||||||||
Supplemental Results Summary (in thousands) (Unaudited)
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||||||||||||
Three months ended September 30, 2012
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||||||||||||
Commercial Segment
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Retail Segment
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Total
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||||||||||
Revenues
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||||||||||||
Public carrier, contractor & program manager market.
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$ | 25,811 | $ | - | $ | 25,811 | ||||||
Private carrier & government system market
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34,264 | - | 34,264 | |||||||||
Commercial dealer & reseller market
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35,655 | - | 35,655 | |||||||||
Retailer, dealer agent & tier 2/3 carrier market
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- | 36,363 | 36,363 | |||||||||
Revenues, excluding Tier 1 carrier market
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95,730 | 36,363 | 132,093 | |||||||||
Tier 1 carrier market
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- | 65,145 | 65,145 | |||||||||
Total revenues
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95,730 | 101,508 | 197,238 | |||||||||
Gross Profit
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||||||||||||
Public carrier, contractor & program manager market
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5,635 | - | 5,635 | |||||||||
Private carrier & government system market
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9,238 | - | 9,238 | |||||||||
Commercial dealer & reseller market
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9,801 | - | 9,801 | |||||||||
Retailer, dealer agent & tier 2/3 carrier market
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- | 7,569 | 7,569 | |||||||||
Gross profit, excluding tier 1 carrier market
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24,674 | 7,569 | 32,243 | |||||||||
% of revenues
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25.8 | % | 20.8 | % | 24.4 | % | ||||||
Tier 1 carrier market
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- | 6,382 | 6,382 | |||||||||
Total gross profit
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24,674 | 13,951 | 38,625 | |||||||||
% of revenues
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25.8 | % | 13.7 | % | 19.6 | % | ||||||
Directly allocatable expenses
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10,701 | 7,384 | 18,085 | |||||||||
Segment net profit contribution
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$ | 13,973 | $ | 6,567 | 20,540 | |||||||
% of revenues
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14.6 | % | 6.5 | % | 10.4 | % | ||||||
Corporate support expenses*
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11,814 | |||||||||||
Income before provision for income taxes
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$ | 8,726 | ||||||||||
% of revenues
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4.4 | % | ||||||||||
Growth Rates Compared to Prior Year Period:
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||||||||||||
Revenues
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||||||||||||
Public carrier, contractor & program manager market
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28.6 | % | 28.6 | % | ||||||||
Private carrier & government system market
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9.6 | % | 9.6 | % | ||||||||
Commercial dealer & reseller market
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14.1 | % | 14.1 | % | ||||||||
Retailer, dealer agent & tier 2/3 carrier market
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35.4 | % | 35.4 | % | ||||||||
Revenues, excluding Tier 1 carrier market
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15.9 | % | 35.4 | % | 20.7 | % | ||||||
Tier 1 carrier market
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65.3 | % | 65.3 | % | ||||||||
Total revenues
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15.9 | % | 53.2 | % | 32.5 | % | ||||||
Gross Profit
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||||||||||||
Public carrier, contractor & program manager market
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30.8 | % | 30.8 | % | ||||||||
Private carrier & government system market
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5.4 | % | 5.4 | % | ||||||||
Commercial dealer & reseller market
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9.4 | % | 9.4 | % | ||||||||
Retailer, dealer agent & tier 2/3 carrier market
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28.0 | % | 28.0 | % | ||||||||
Gross profit, excluding tier 1 carrier market
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12.0 | % | 28.0 | % | 15.4 | % | ||||||
Tier 1 carrier market
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5.6 | % | 5.6 | % | ||||||||
Total gross profit
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12.0 | % | 16.7 | % | 13.6 | % | ||||||
Directly allocatable expenses
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3.7 | % | 10.2 | % | 6.2 | % | ||||||
Segment net profit contribution
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19.3 | % | 25.0 | % | 21.1 | % | ||||||
Corporate support expenses*
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5.4 | % | ||||||||||
Income before provision for income taxes
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51.6 | % | ||||||||||
* Includes corporate overhead, facilities expense, depreciation, interest and company wide pay-for-performance bonus expense
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TESSCO Technologies Incorporated
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||||||||||||
Supplemental Results Summary (in thousands) (Unaudited)
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||||||||||||
Six months ended September 30, 2012
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||||||||||||
Commercial Segment
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Retail Segment
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Total
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||||||||||
Revenues
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||||||||||||
Public carrier, contractor & program manager market
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$ | 45,829 | $ | - | $ | 45,829 | ||||||
Private carrier & government system market
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63,864 | - | 63,864 | |||||||||
Commercial dealer & reseller market
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67,263 | - | 67,263 | |||||||||
Retailer, dealer agent & tier 2/3 carrier market
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- | 68,005 | 68,005 | |||||||||
Revenues, excluding Tier 1 carrier market
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176,956 | 68,005 | 244,961 | |||||||||
Tier 1 carrier market
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- | 144,696 | 144,696 | |||||||||
Total revenues
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176,956 | 212,701 | 389,657 | |||||||||
Gross Profit
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||||||||||||
Public carrier, contractor & program manager market
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10,093 | - | 10,093 | |||||||||
Private carrier & government system market
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17,391 | - | 17,391 | |||||||||
Commercial dealer & reseller market
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18,599 | - | 18,599 | |||||||||
Retailer, dealer agent & tier 2/3 carrier market
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- | 14,196 | 14,196 | |||||||||
Gross profit, excluding tier 1 carrier market
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46,083 | 14,196 | 60,279 | |||||||||
% of revenues
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26.0 | % | 20.9 | % | 24.6 | % | ||||||
Tier 1 carrier market
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- | 13,839 | 13,839 | |||||||||
Total gross profit
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46,083 | 28,035 | 74,118 | |||||||||
% of revenues
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26.0 | % | 13.2 | % | 19.0 | % | ||||||
Directly allocatable expenses
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20,812 | 14,530 | 35,342 | |||||||||
Segment net profit contribution
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$ | 25,271 | $ | 13,505 | 38,776 | |||||||
% of revenues
|
14.3 | % | 6.3 | % | 10.0 | % | ||||||
Corporate support expenses*
|
23,177 | |||||||||||
Income before provision for income taxes
|
$ | 15,599 | ||||||||||
% of revenues
|
4.0 | % | ||||||||||
Growth Rates Compared to Prior Year Period:
|
||||||||||||
Revenues
|
||||||||||||
Public carrier, contractor & program manager market
|
19.9 | % | 19.9 | % | ||||||||
Private carrier & government system market
|
2.1 | % | 2.1 | % | ||||||||
Commercial dealer & reseller market
|
11.8 | % | 11.8 | % | ||||||||
Retailer, dealer agent & tier 2/3 carrier market
|
22.4 | % | 22.4 | % | ||||||||
Revenues, excluding Tier 1 carrier market
|
10.0 | % | 22.4 | % | 13.2 | % | ||||||
Tier 1 carrier market
|
50.9 | % | 50.9 | % | ||||||||
Total revenues
|
10.0 | % | 40.4 | % | 24.7 | % | ||||||
Gross Profit
|
||||||||||||
Public carrier, contractor & program manager market
|
16.6 | % | 16.6 | % | ||||||||
Private carrier & government system market
|
-4.1 | % | -4.1 | % | ||||||||
Commercial dealer & reseller market
|
8.7 | % | 8.7 | % | ||||||||
Retailer, dealer agent & tier 2/3 carrier market
|
18.3 | % | 18.3 | % | ||||||||
Gross profit, excluding tier 1 carrier market
|
5.0 | % | 18.3 | % | 7.8 | % | ||||||
Tier 1 carrier market
|
-9.5 | % | -9.5 | % | ||||||||
Total gross profit
|
5.0 | % | 2.7 | % | 4.1 | % | ||||||
Directly allocatable expenses
|
2.3 | % | 7.5 | % | 4.4 | % | ||||||
Segment net profit contribution
|
7.3 | % | -1.9 | % | 3.9 | % | ||||||
Corporate support expenses*
|
-4.0 | % | ||||||||||
Income before provision for income taxes
|
18.4 | % | ||||||||||
* Includes corporate overhead, facilities expense, depreciation, interest and company wide pay-for-performance bonus expense
|
Supplemental Results Summary (in thousands)
|
||||||||
Three months ended September 30, 2012
|
Six months ended September 30, 2012
|
|||||||
Revenues
|
||||||||
Base station infrastructure
|
$ | 57,034 | $ | 106,180 | ||||
Network systems
|
22,166 | 39,902 | ||||||
Installation, test and maintenance
|
12,140 | 22,780 | ||||||
Mobile device accessories
|
105,898 | 220,795 | ||||||
Total revenues
|
197,238 | 389,657 | ||||||
Gross Profit
|
||||||||
Base station infrastructure
|
16,756 | 31,160 | ||||||
Network systems
|
3,980 | 7,638 | ||||||
Installation, test and maintenance
|
2,826 | 5,366 | ||||||
Mobile device accessories
|
15,063 | 29,954 | ||||||
Total gross profit
|
38,625 | 74,118 | ||||||
% of revenues
|
19.6 | % | 19.0 | % | ||||
Growth Rates Compared to Prior Year Period
|
||||||||
Revenues
|
||||||||
Base station infrastructure
|
15.3 | % | 9.8 | % | ||||
Network systems
|
15.8 | % | 3.3 | % | ||||
Installation, test and maintenance
|
0.1 | % | 3.2 | % | ||||
Mobile device accessories
|
55.5 | % | 42.5 | % | ||||
Total revenues
|
32.5 | % | 24.7 | % | ||||
Gross Profit
|
||||||||
Base station infrastructure
|
12.2 | % | 4.2 | % | ||||
Network systems
|
5.5 | % | -0.1 | % | ||||
Installation, test and maintenance
|
8.0 | % | 9.1 | % | ||||
Mobile device accessories
|
18.8 | % | 4.3 | % | ||||
Total gross profit
|
13.6 | % | 4.1 | % |