Delaware
|
0-24746
|
52-0729657
|
(State or other jurisdiction of incorporation)
|
(Commission File Number)
|
(IRS Employer Identification Number)
|
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
a) | Financial Statements of Businesses Acquired. |
b) | Pro Forma Financial Information. |
c) | Exhibits. |
Exhibit No.
|
Description
|
|
99.1
|
Press Release dated October 23, 2014
|
TESSCO Technologies Incorporated
|
|||
Date:
|
October 23, 2014
|
By:
|
/s/ Aric M. Spitulnik
|
Aric M. Spitulnik
|
|||
Principal Financial Officer
|
Exhibit No.
|
Description of Exhibit
|
Press Release dated October 23, 2014
|
Second Quarter
2015
|
Second Quarter
2014
|
1st Half
FY 2015
|
1st Half
FY 2014
|
|
Revenue
|
$148.5M
|
$146.5M
|
$301.5M
|
$290.6M
|
Diluted EPS
|
$0.42
|
$0.55
|
$0.86
|
$1.06
|
EBITDA* per share
|
$0.84
|
$1.06
|
$1.70
|
$2.04
|
Operating margin
|
3.9%
|
5.2%
|
4.0%
|
5.0%
|
Cash balance
|
$2.7M
|
$3.2M
|
$2.7M
|
$3.2M
|
Line of credit
|
$0
|
$0
|
$0
|
$0
|
Revenues
|
Gross Profit
|
|
· Public carriers, contractors & program managers
|
(0.2%)
|
(18.5%)
|
· Private and government system operators
|
(5.2%)
|
(3.5%)
|
· Commercial dealers & resellers
|
1.0%
|
1.9%
|
· Retailer, independent dealer agents & carriers
|
8.8%
|
7.9%
|
Fiscal Quarters Ended
|
Six Months Ended
|
|||||||||||||||||||
September 28, 2014
|
June 29, 2014
|
September 29, 2013
|
September 28, 2014
|
September 29, 2013
|
||||||||||||||||
Revenues
|
$
|
148,521,800
|
$
|
152,946,300
|
$
|
146,526,000
|
$
|
301,468,100
|
$
|
290,634,800
|
||||||||||
Cost of goods sold
|
113,085,800
|
117,697,500
|
110,033,200
|
230,783,300
|
218,704,100
|
|||||||||||||||
Gross profit
|
35,436,000
|
35,248,800
|
36,492,800
|
70,684,800
|
71,930,700
|
|||||||||||||||
Selling, general and administrative expenses
|
29,569,400
|
29,176,400
|
28,903,400
|
58,745,800
|
57,377,500
|
|||||||||||||||
Income from operations
|
5,866,600
|
6,072,400
|
7,589,400
|
11,939,000
|
14,553,200
|
|||||||||||||||
Interest, net
|
49,400
|
28,400
|
67,000
|
77,800
|
121,600
|
|||||||||||||||
Income before provision for income taxes
|
5,817,200
|
6,044,000
|
7,522,400
|
11,861,200
|
14,431,600
|
|||||||||||||||
Provision for income taxes
|
2,303,600
|
2,372,600
|
2,941,300
|
4,676,200
|
5,558,300
|
|||||||||||||||
Net income
|
$
|
3,513,600
|
$
|
3,671,400
|
$
|
4,581,100
|
$
|
7,185,000
|
$
|
8,873,300
|
||||||||||
Basic earnings per share
|
$
|
0.42
|
$
|
0.44
|
$
|
0.56
|
$
|
0.87
|
$
|
1.09
|
||||||||||
Diluted earnings per share
|
$
|
0.42
|
$
|
0.44
|
$
|
0.55
|
$
|
0.86
|
$
|
1.06
|
September 28, 2014
|
March 30, 2014
|
|||||||
(unaudited)
|
(audited)
|
|||||||
ASSETS
|
||||||||
Current Assets:
|
||||||||
Cash and cash equivalents
|
$
|
2,656,900
|
$
|
11,467,900
|
||||
Trade accounts receivable, net
|
80,665,500
|
67,495,700
|
||||||
Product inventory
|
81,838,400
|
61,955,700
|
||||||
Deferred tax assets
|
6,932,100
|
6,913,000
|
||||||
Prepaid expenses and other current assets
|
3,478,300
|
2,336,600
|
||||||
Total current assets
|
175,571,200
|
150,168,900
|
||||||
Property and equipment, net
|
21,750,100
|
22,765,400
|
||||||
Goodwill, net
|
11,684,700
|
11,684,700
|
||||||
Other long-term assets
|
2,341,300
|
2,341,300
|
||||||
Total assets
|
$
|
211,347,300
|
$
|
186,960,300
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||||||
Current Liabilities:
|
||||||||
Trade accounts payable
|
$
|
73,526,800
|
$
|
50,756,900
|
||||
Payroll, benefits and taxes
|
5,328,200
|
7,670,100
|
||||||
Income and sales tax liabilities
|
2,242,400
|
2,477,700
|
||||||
Accrued expenses and other current liabilities
|
1,088,000
|
923,600
|
||||||
Revolving line of credit
|
--
|
--
|
||||||
Current portion of long-term debt
|
250,400
|
250,200
|
||||||
Total current liabilities
|
82,435,800
|
62,078,500
|
||||||
Deferred tax liabilities
|
4,260,700
|
4,260,700
|
||||||
Long-term debt, net of current portion
|
2,082,900
|
2,208,200
|
||||||
Other long-term liabilities
|
3,386,300
|
3,584,800
|
||||||
Total liabilities
|
92,165,700
|
72,132,200
|
||||||
Shareholders’ Equity:
|
||||||||
Preferred stock
|
--
|
--
|
||||||
Common stock
|
95,800
|
94,200
|
||||||
Additional paid-in capital
|
56,129,600
|
53,987,700
|
||||||
Treasury stock, at cost
|
(51,727,400
|
)
|
(50,084,600
|
)
|
||||
Retained earnings
|
114,683,600
|
110,830,800
|
||||||
Accumulated other comprehensive loss
|
--
|
--
|
||||||
Total shareholders’ equity
|
119,181,600
|
114,828,100
|
||||||
Total liabilities and shareholder’s equity
|
$
|
211,347,300
|
$
|
186,960,300
|
Fiscal Quarters Ended
|
Six Months Ended
|
|||||||||||||||||||
September 28, 2014
|
June 29, 2014
|
September 29, 2013
|
September 28, 2014
|
September 29, 2013
|
||||||||||||||||
Net income
|
$
|
3,513,600
|
$
|
3,671,400
|
$
|
4,581,100
|
$
|
7,185,000
|
$
|
8,873,300
|
||||||||||
Add:
|
||||||||||||||||||||
Provision for income taxes
|
2,303,600
|
2,372,600
|
2,941,300
|
4,676,200
|
5,558,300
|
|||||||||||||||
Interest, net
|
49,400
|
28,400
|
67,000
|
77,800
|
121,600
|
|||||||||||||||
Depreciation and amortization
|
1,185,100
|
1,167,800
|
1,261,300
|
2,352,900
|
2,474,200
|
|||||||||||||||
EBITDA
|
$
|
7,051,700
|
$
|
7,240,200
|
$
|
8,850,700
|
$
|
14,291,900
|
$
|
17,027,400
|
||||||||||
Add: Stock based compensation
|
228,000
|
449,600
|
517,000
|
677,600
|
1,096,900
|
|||||||||||||||
Adjusted EBITDA
|
$
|
7,279,700
|
$
|
7,689,800
|
$
|
9,367,700
|
$
|
14,969,500
|
$
|
18,124,300
|
||||||||||
EBITDA per diluted share
|
$
|
0.84
|
$
|
0.86
|
$
|
1.06
|
$
|
1.70
|
$
|
2.04
|
||||||||||
Adjusted EBITDA per diluted share
|
$
|
0.86
|
$
|
0.91
|
$
|
1.12
|
$
|
1.78
|
$
|
2.17
|
Three months ended
September 28, 2014
|
Six months ended
September 28, 2014
|
|||||||
Total
|
Total
|
|||||||
Market Revenues
|
||||||||
Public Carriers, Contractors & Program Managers
|
$
|
40,853
|
$
|
82,271
|
||||
Private & Government System Operators
|
29,446
|
58,450
|
||||||
Commercial Dealers & Resellers
|
36,780
|
75,064
|
||||||
Retailer, Independent Dealer Agents & Carriers
|
41,443
|
85,683
|
||||||
Total revenues
|
$
|
148,522
|
$
|
301,468
|
||||
Gross Profit
|
||||||||
Public Carriers, Contractors & Program Managers
|
7,347
|
14,540
|
||||||
Private & Government System Operators
|
8,082
|
15,995
|
||||||
Commercial Dealers & Resellers
|
10,289
|
20,926
|
||||||
Retailer, Independent Dealer Agents & Carriers
|
9,718
|
19,224
|
||||||
Total gross profit
|
$
|
35,436
|
$
|
70,685
|
||||
% of revenues
|
23.9
|
%
|
23.4
|
%
|
||||
Direct expenses
|
19,963
|
38,753
|
||||||
Segment net profit contribution
|
15,473
|
31,932
|
||||||
% of revenues
|
10.4
|
%
|
10.6
|
%
|
||||
Corporate support expenses*
|
9,656
|
20,071
|
||||||
Income before provision for income taxes
|
$
|
5,817
|
$
|
11,861
|
||||
% of revenues
|
3.9
|
%
|
3.9
|
%
|
||||
Growth Rates Compared to Prior Year Period:
|
||||||||
Revenues
|
||||||||
Public Carriers, Contractors & Program Managers
|
-0.2
|
%
|
5.0
|
%
|
||||
Private & Government System Operators
|
-5.2
|
%
|
-0.9
|
%
|
||||
Commercial Dealers & Resellers
|
1.0
|
%
|
3.6
|
%
|
||||
Retailer, Independent Dealer Agents & Carriers
|
8.8
|
%
|
5.9
|
%
|
||||
Total revenues
|
1.4
|
%
|
3.7
|
%
|
||||
Gross Profit
|
||||||||
Public Carriers, Contractors & Program Managers
|
-18.5
|
%
|
-14.0
|
%
|
||||
Private & Government System Operators
|
-3.5
|
%
|
-1.1
|
%
|
||||
Commercial Dealers & Resellers
|
1.9
|
%
|
2.9
|
%
|
||||
Retailer, Independent Dealer Agents & Carriers
|
7.9
|
%
|
3.9
|
%
|
||||
Total gross profit
|
-2.9
|
%
|
-1.7
|
%
|
||||
Direct expenses
|
12.2
|
%
|
9.4
|
%
|
||||
Segment net profit contribution
|
-17.2
|
%
|
-12.6
|
%
|
||||
Corporate support expenses*
|
-13.6
|
%
|
-9.1
|
%
|
||||
Income before provision for income taxes
|
-22.7
|
%
|
-17.8
|
%
|
Three months ended
September 28, 2014
|
Six months ended
September 28, 2014
|
|||||||
Revenues
|
||||||||
Base station infrastructure
|
$
|
64,129
|
$
|
127,016
|
||||
Network systems
|
27,496
|
58,040
|
||||||
Installation, test and maintenance
|
10,663
|
21,585
|
||||||
Mobile device accessories
|
46,234
|
94,827
|
||||||
Total revenues
|
$
|
148,522
|
$
|
301,468
|
||||
Gross Profit
|
||||||||
Base station infrastructure
|
16,817
|
33,892
|
||||||
Network systems
|
4,174
|
8,859
|
||||||
Installation, test and maintenance
|
2,284
|
4,817
|
||||||
Mobile device accessories
|
12,161
|
23,117
|
||||||
Total gross profit
|
$
|
35,436
|
$
|
70,685
|
||||
% of revenues
|
23.9
|
%
|
23.4
|
%
|
||||
Growth Rates Compared to Prior Year Period
|
||||||||
Revenues
|
||||||||
Base station infrastructure
|
-5.5
|
%
|
-7.6
|
%
|
||||
Network systems
|
25.9
|
%
|
41.9
|
%
|
||||
Installation, test and maintenance
|
-15.3
|
%
|
-3.4
|
%
|
||||
Mobile device accessories
|
4.6
|
%
|
5.4
|
%
|
||||
Total revenues
|
1.4
|
%
|
3.7
|
%
|
||||
Gross Profit
|
||||||||
Base station infrastructure
|
-10.4
|
%
|
-10.0
|
%
|
||||
Network systems
|
11.5
|
%
|
17.1
|
%
|
||||
Installation, test and maintenance
|
-17.8
|
%
|
-6.1
|
%
|
||||
Mobile device accessories
|
8.6
|
%
|
7.1
|
%
|
||||
Total gross profit
|
-2.9
|
%
|
-1.7
|
%
|