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 January 15, 2015
|
TESSCO Technologies Incorporated
|
||
Date: January 15, 2015
|
By:
|
/s/ Aric M. Spitulnik
|
Aric M. Spitulnik
|
||
Principal Financial Officer
|
Exhibit No.
|
Description of Exhibit
|
Press Release dated January 15, 2015
|
Third Quarter
FY 2015
|
Third Quarter
FY 2014
|
Nine Months
FY 2015
|
Nine Months
FY 2014
|
|
Revenue
|
$135.2M
|
$144.9M
|
$436.7M
|
$435.6M
|
Diluted EPS
|
$0.20
|
$0.53
|
$1.06
|
$1.60
|
EBITDA* per share
|
$0.46
|
$1.00
|
$2.16
|
$3.05
|
Operating margin
|
2.0%
|
4.9%
|
3.3%
|
5.0%
|
Cash balance
|
$9.5M
|
$8.3M
|
$9.5M
|
$8.3M
|
Line of credit
|
$0
|
$0
|
$0
|
$0
|
Q3 vs. Q2
FY 2015
|
Q3 FY 2015 vs.
Q3 FY 2014
|
Nine Months
FY 2015 vs.
FY 2014
|
Nine Months
FY 2015
|
|
Public Carrier
|
||||
Revenue
|
(44.1%)
|
(39.2%)
|
(9.3%)
|
$105.1M
|
Gross Profit
|
(32.9%)
|
(37.4%)
|
(21.4%)
|
$19.5M
|
Commercial Resellers
|
||||
Revenue
|
(16.3%)
|
(16.0%)
|
(3.0%)
|
$105.9M
|
Gross Profit
|
(14.0%)
|
(14.1%)
|
(2.8%)
|
$29.8M
|
Government
|
||||
Revenue
|
(4.6%)
|
(13.8%)
|
(11.1%)
|
$23.9M
|
Gross Profit
|
(12.0%)
|
(6.7%)
|
(4.8%)
|
$6.4M
|
Private System Ops
|
||||
Revenue
|
19.4%
|
21.6%
|
9.3%
|
$67.7M
|
Gross Profit
|
8.4%
|
4.1%
|
1.4%
|
$17.8M
|
Retail
|
||||
Revenue
|
16.7%
|
18.5%
|
10.2%
|
$134.0M
|
Gross Profit
|
7.5%
|
6.8%
|
4.9%
|
$29.7M
|
Total
|
||||
Revenue
|
(9.0%)
|
(6.7%)
|
0.3%
|
$436.7M
|
Gross Profit
|
(8.2%)
|
(10.0%)
|
(4.5%)
|
$103.2M
|
· | Implementing organization and leadership changes in Market Development & Sales and Strategic Marketing to more aggressively and effectively attract and pursue customer opportunities and sales; |
· | Improving its business processes and exiting unprofitable initiatives, resulting in anticipated reduction in current fixed expense levels of 3% to 5%, or the current equivalent of approximately $0.20 to $0.30 of annual earnings per share; and |
· | Diversifying and reducing its dependence on the carrier ecosystem. |
Fiscal Quarters Ended
|
Nine Months Ended
|
|||||||||||||||||||
December 28,
2014
|
September 28,
2014
|
December 29,
2013
|
December 28,
2014
|
December 29,
2013
|
||||||||||||||||
Revenues
|
$
|
135,188,700
|
$
|
148,521,800
|
$
|
144,915,200
|
$
|
436,656,800
|
$
|
435,550,000
|
||||||||||
Cost of goods sold
|
102,675,800
|
113,085,800
|
108,772,800
|
333,459,100
|
327,476,900
|
|||||||||||||||
Gross profit
|
32,512,900
|
35,436,000
|
36,142,400
|
103,197,700
|
108,073,100
|
|||||||||||||||
Selling, general and administrative expenses
|
29,828,800
|
29,569,400
|
28,974,800
|
88,574,600
|
86,352,300
|
|||||||||||||||
Income from operations
|
2,684,100
|
5,866,600
|
7,167,600
|
14,623,100
|
21,720,800
|
|||||||||||||||
Interest , net
|
61,300
|
49,400
|
37,800
|
139,100
|
159,400
|
|||||||||||||||
Income before provision for income taxes
|
2,622,800
|
5,817,200
|
7,129,800
|
14,484,000
|
21,561,400
|
|||||||||||||||
Provision for income taxes
|
941,600
|
2,303,600
|
2,709,300
|
5,617,800
|
8,267,600
|
|||||||||||||||
Net income
|
$
|
1,681,200
|
$
|
3,513,600
|
$
|
4,420,500
|
$
|
8,866,200
|
$
|
13,293,800
|
||||||||||
Basic earnings per share
|
$
|
0.20
|
$
|
0.42
|
$
|
0.54
|
$
|
1.07
|
$
|
1.62
|
||||||||||
Diluted earnings per share
|
$
|
0.20
|
$
|
0.42
|
$
|
0.53
|
$
|
1.06
|
$
|
1.60
|
December 28, 2014
|
March 30, 2014
|
|||||||
(unaudited)
|
(audited)
|
|||||||
ASSETS
|
||||||||
Current Assets:
|
||||||||
Cash and cash equivalents
|
$
|
9,536,100
|
$
|
11,467,900
|
||||
Trade accounts receivable, net
|
63,877,000
|
67,495,700
|
||||||
Product inventory
|
65,114,800
|
61,955,700
|
||||||
Deferred tax assets
|
6,890,000
|
6,913,000
|
||||||
Prepaid expenses and other current assets
|
10,352,800
|
2,336,600
|
||||||
Total current assets
|
155,770,700
|
150,168,900
|
||||||
Property and equipment, net
|
21,202,900
|
22,765,400
|
||||||
Goodwill, net
|
11,684,700
|
11,684,700
|
||||||
Other long-term assets
|
2,341,300
|
2,341,300
|
||||||
Total assets
|
$
|
190,999,600
|
$
|
186,960,300
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||||||
Current Liabilities:
|
||||||||
Trade accounts payable
|
$
|
51,081,400
|
$
|
50,756,900
|
||||
Payroll, benefits and taxes
|
4,416,700
|
7,670,100
|
||||||
Income and sales tax liabilities
|
1,811,100
|
2,477,700
|
||||||
Accrued expenses and other current liabilities
|
8,865,100
|
923,600
|
||||||
Revolving line of credit
|
--
|
--
|
||||||
Current portion of long-term debt
|
250,400
|
250,200
|
||||||
Total current liabilities
|
66,424,700
|
62,078,500
|
||||||
Deferred tax liabilities
|
4,260,700
|
4,260,700
|
||||||
Long-term debt, net of current portion
|
2,020,300
|
2,208,200
|
||||||
Other long-term liabilities
|
3,123,900
|
3,584,800
|
||||||
Total liabilities
|
75,829,600
|
72,132,200
|
||||||
Shareholders’ Equity:
|
||||||||
Preferred stock
|
--
|
--
|
||||||
Common stock
|
95,900
|
94,200
|
||||||
Additional paid-in capital
|
56,475,600
|
53,987,700
|
||||||
Treasury stock, at cost
|
(56,106,800
|
)
|
(50,084,600
|
)
|
||||
Retained earnings
|
114,705,300
|
110,830,800
|
||||||
Accumulated other comprehensive loss
|
--
|
--
|
||||||
Total shareholders’ equity
|
115,170,000
|
114,828,100
|
||||||
Total liabilities and shareholder’s equity
|
$
|
190,999,600
|
$
|
186,960,300
|
Fiscal Quarters Ended
|
Nine Months Ended
|
|||||||||||||||||||
December 28,
2014
|
September 28,
2014
|
December 29,
2013
|
December 28,
2014
|
December 29,
2013
|
||||||||||||||||
Net income
|
$
|
1,681,200
|
$
|
3,513,600
|
$
|
4,420,500
|
$
|
8,866,200
|
$
|
13,293,800
|
||||||||||
Add:
|
||||||||||||||||||||
Provision for income taxes
|
941,600
|
2,303,600
|
2,709,300
|
5,617,800
|
8,267,600
|
|||||||||||||||
Interest, net
|
61,300
|
49,400
|
37,800
|
139,100
|
159,400
|
|||||||||||||||
Depreciation and amortization
|
1,140,300
|
1,185,100
|
1,241,200
|
3,493,200
|
3,715,400
|
|||||||||||||||
EBITDA
|
$
|
3,824,400
|
$
|
7,051,700
|
$
|
8,408,800
|
$
|
18,116,300
|
$
|
25,436,200
|
||||||||||
Add: Stock based compensation
|
269,400
|
228,000
|
498,100
|
947,000
|
1,595,000
|
|||||||||||||||
Adjusted EBITDA
|
$
|
4,093,800
|
$
|
7,279,700
|
$
|
8,906,900
|
$
|
19,063,300
|
$
|
27,031,200
|
||||||||||
EBITDA per diluted share
|
$
|
0.46
|
$
|
0.84
|
$
|
1.00
|
$
|
2.16
|
$
|
3.05
|
||||||||||
Adjusted EBITDA per diluted share
|
$
|
0.49
|
$
|
0.86
|
$
|
1.06
|
$
|
2.28
|
$
|
3.24
|
Three months ended
December 28, 2014
|
Nine months ended
December 28, 2014
|
|||||||
Total
|
Total
|
|||||||
Market Revenues
|
||||||||
Public Carriers, Contractors & Program Managers
|
$
|
22,847
|
$
|
105,118
|
||||
Government System Operators
|
7,781
|
23,948
|
||||||
Private System Operators
|
25,422
|
67,705
|
||||||
Commercial Dealers & Resellers
|
30,786
|
105,850
|
||||||
Retailer, Independent Dealer Agents & Carriers
|
48,353
|
134,036
|
||||||
Total revenues
|
$
|
135,189
|
$
|
436,657
|
||||
Gross Profit
|
||||||||
Public Carriers, Contractors & Program Managers
|
4,929
|
19,469
|
||||||
Government System Operators
|
2,008
|
6,448
|
||||||
Private System Operators
|
6,286
|
17,841
|
||||||
Commercial Dealers & Resellers
|
8,847
|
29,773
|
||||||
Retailer, Independent Dealer Agents & Carriers
|
10,443
|
29,667
|
||||||
Total gross profit
|
$
|
32,513
|
$
|
103,198
|
||||
% of revenues
|
24.1
|
%
|
23.6
|
%
|
||||
Direct expenses
|
19,933
|
58,686
|
||||||
Segment net profit contribution
|
12,580
|
44,512
|
||||||
% of revenues
|
9.3
|
%
|
10.2
|
%
|
||||
Corporate support expenses*
|
9,957
|
30,028
|
||||||
Income before provision for income taxes
|
$
|
2,623
|
$
|
14,484
|
||||
% of revenues
|
1.9
|
%
|
3.3
|
%
|
||||
Growth Rates Compared to Prior Year Period:
|
||||||||
Revenues
|
||||||||
Public Carriers, Contractors & Program Managers
|
(39.2
|
%)
|
(9.3
|
%)
|
||||
Government System Operators
|
(13.8
|
%)
|
(11.1
|
%)
|
||||
Private System Operators
|
21.6
|
%
|
9.3
|
%
|
||||
Commercial Dealers & Resellers
|
(16.0
|
%)
|
(3.0
|
%)
|
||||
Retailer, Independent Dealer Agents & Carriers
|
18.5
|
%
|
10.2
|
%
|
||||
Total revenues
|
(6.7
|
%)
|
0.3
|
%
|
||||
Gross Profit
|
||||||||
Public Carriers, Contractors & Program Managers
|
(37.4
|
%)
|
(21.4
|
%)
|
||||
Government System Operators
|
(6.7
|
%)
|
(4.8
|
%)
|
||||
Private System Operators
|
4.1
|
%
|
1.4
|
%
|
||||
Commercial Dealers & Resellers
|
(14.1
|
%)
|
(2.8
|
%)
|
||||
Retailer, Independent Dealer Agents & Carriers
|
6.8
|
%
|
4.9
|
%
|
||||
Total gross profit
|
(10.0
|
%)
|
(4.5
|
%)
|
||||
Direct expenses
|
7.3
|
%
|
8.7
|
%
|
||||
Segment net profit contribution
|
(28.4
|
%)
|
(17.7
|
%)
|
||||
Corporate support expenses*
|
(4.5
|
%)
|
(7.7
|
%)
|
||||
Income before provision for income taxes
|
(63.2
|
%)
|
(32.8
|
%)
|
Three months ended
December 28, 2014
|
Nine months ended
December 28, 2014
|
|||||||
Revenues
|
||||||||
Base station infrastructure
|
$
|
50,631
|
$
|
177,647
|
||||
Network systems
|
20,299
|
78,339
|
||||||
Installation, test and maintenance
|
11,938
|
33,523
|
||||||
Mobile device accessories
|
52,321
|
147,148
|
||||||
Total revenues
|
$
|
135,189
|
$
|
436,657
|
||||
Gross Profit
|
||||||||
Base station infrastructure
|
14,322
|
48,214
|
||||||
Network systems
|
3,949
|
12,808
|
||||||
Installation, test and maintenance
|
2,649
|
7,466
|
||||||
Mobile device accessories
|
11,593
|
34,710
|
||||||
Total gross profit
|
$
|
32,513
|
$
|
103,198
|
||||
% of revenues
|
24.1
|
%
|
23.6
|
%
|
||||
Growth Rates Compared to Prior Year Period
|
||||||||
Revenues
|
||||||||
Base station infrastructure
|
(15.4
|
%)
|
(9.9
|
%)
|
||||
Network systems
|
(24.4
|
%)
|
15.6
|
%
|
||||
Installation, test and maintenance
|
(12.7
|
%)
|
(7.0
|
%)
|
||||
Mobile device accessories
|
17.5
|
%
|
9.4
|
%
|
||||
Total revenues
|
(6.7
|
%)
|
0.3
|
%
|
||||
Gross Profit
|
||||||||
Base station infrastructure
|
(16.3
|
%)
|
(12.0
|
%)
|
||||
Network systems
|
(16.0
|
%)
|
4.4
|
%
|
||||
Installation, test and maintenance
|
(13.8
|
%)
|
(9.0
|
%)
|
||||
Mobile device accessories
|
3.1
|
%
|
5.7
|
%
|
||||
Total gross profit
|
(10.0
|
%)
|
(4.5
|
%)
|