Company Quick10K Filing
Richardson Electronics
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$0.00 -0 $-0
10-Q 2020-01-09 Quarter: 2019-11-30
10-Q 2019-10-10 Quarter: 2019-08-31
10-K 2019-08-05 Annual: 2019-06-01
10-Q 2019-04-11 Quarter: 2019-03-02
10-Q 2019-01-10 Quarter: 2018-12-01
10-Q 2018-10-11 Quarter: 2018-09-01
10-K 2018-08-02 Annual: 2018-06-02
10-Q 2018-04-12 Quarter: 2018-03-03
10-Q 2018-01-11 Quarter: 2017-12-02
10-Q 2017-10-12 Quarter: 2017-09-02
10-K 2017-07-31 Annual: 2017-05-27
10-Q 2017-04-06 Quarter: 2017-02-25
10-Q 2017-01-05 Quarter: 2016-11-26
10-Q 2016-10-06 Quarter: 2016-08-27
10-K 2016-07-29 Annual: 2016-05-28
10-Q 2016-04-07 Quarter: 2016-02-27
10-Q 2016-01-07 Quarter: 2015-11-28
10-Q 2015-10-08 Quarter: 2015-08-29
10-K 2015-07-28 Annual: 2015-05-30
10-Q 2015-04-10 Quarter: 2015-02-28
10-Q 2015-01-08 Quarter: 2014-11-29
10-Q 2014-10-09 Quarter: 2014-08-30
10-K 2014-07-25 Annual: 2014-05-31
10-Q 2014-04-10 Quarter: 2014-03-01
10-Q 2014-01-09 Quarter: 2013-11-30
10-Q 2013-10-10 Quarter: 2013-08-31
10-K 2013-07-26 Annual: 2013-06-01
10-Q 2013-04-11 Quarter: 2013-03-02
10-Q 2013-01-10 Quarter: 2012-12-01
10-Q 2012-10-11 Quarter: 2012-09-01
10-K 2012-07-27 Annual: 2012-06-02
10-Q 2012-04-12 Quarter: 2012-03-03
10-Q 2012-01-12 Quarter: 2011-12-03
10-Q 2011-10-06 Quarter: 2011-09-03
10-K 2011-07-22 Annual: 2011-05-28
10-Q 2011-04-07 Quarter: 2011-02-26
10-Q 2011-01-06 Quarter: 2010-11-27
10-Q 2010-10-07 Quarter: 2010-08-28
10-K 2010-07-22 Annual: 2010-05-29
10-Q 2010-04-09 Quarter: 2010-02-27
10-Q 2010-01-07 Quarter: 2009-11-28
8-K 2020-01-08 Earnings, Exhibits
8-K 2019-10-09 Earnings, Exhibits
8-K 2019-07-24 Earnings, Exhibits
8-K 2019-03-13 Officers
RELL 2019-11-30
Part I. Financial Information
Item 1. Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II. Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 5. Other Information
Item 6. Exhibits
EX-31.1 rell-ex311_9.htm
EX-31.2 rell-ex312_7.htm
EX-32 rell-ex32_8.htm

Richardson Electronics Earnings 2019-11-30

RELL 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

Comparables ($MM TTM)
Ticker M Cap Assets Liab Rev G Profit Net Inc EBITDA EV G Margin EV/EBITDA ROA
CYBE 121 73 15 65 29 3 7 111 44% 16.4 4%
RADA 100 54 12 0 0 0 0 78 0%
VOXX 97 498 106 439 120 -46 -34 43 27% -1.3 -9%
PRCP 52 63 21 77 27 -7 -4 47 35% -11.7 -11%
CUI 25 79 40 98 30 -15 -12 22 31% -1.9 -18%
TAIT 18 14 1 8 4 1 2 14 46% 9.2 10%
AWSM 14 13 21 20 5 -31 -30 24 28% -0.8 -233%
QBAK 11 11 4 12 4 1 1 7 32% 10.7 5%
UUU 3 19 9 18 6 -2 -1 3 31% -2.7 -8%
RELL 153 29 167 52 -7 -3 -42 31% 13.4 -5%

10-Q 1 rell-10q_20191130.htm 10-Q rell-10q_20191130.htm

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended November 30, 2019

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      To                    

Commission File Number: 0-12906

 

 

RICHARDSON ELECTRONICS, LTD.

 

(Exact name of registrant as specified in its charter)

 

 

Delaware

36-2096643

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

 

40W267 Keslinger Road, P.O. Box 393 

LaFox, Illinois 60147-0393

(Address of principal executive offices)

 

Registrant’s telephone number, including area code: (630) 208-2200

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading Symbol(s)

 

Name of each exchange on which registered

Common stock, $0.05 Par Value

 

RELL

 

NASDAQ Global Select Market

 

Securities registered pursuant to Section 12(g) of the Act: None

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes No 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     Yes     No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large Accelerated Filer

 

Accelerated Filer

Non-Accelerated Filer

 

Smaller Reporting Company

Emerging Growth Company

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   Yes    No

As of January 7, 2020, there were outstanding 11,038,235 shares of Common Stock, $0.05 par value and 2,096,919 shares of Class B Common Stock, $0.05 par value, which are convertible into Common Stock of the registrant on a share for share basis.

 

 


 

TABLE OF CONTENTS

 

 

 

 

Page

 

 

 

 

Part I.

Financial Information

 

 

 

 

 

 

Item 1.

Financial Statements

 

2

 

Consolidated Balance Sheets

 

2

 

Unaudited Consolidated Statements of Comprehensive Loss

 

3

 

Unaudited Consolidated Statements of Cash Flows

 

4

 

Unaudited Consolidated Statement of Stockholders’ Equity

 

5

 

Notes to Unaudited Consolidated Financial Statements

 

7

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

19

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

 

24

Item 4.

Controls and Procedures

 

25

 

 

 

 

Part II.

Other Information

 

 

 

 

 

 

Item 1.

Legal Proceedings

 

26

Item 1A.

Risk Factors

 

26

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

 

26

Item 5.

Other Information

 

26

Item 6.

Exhibits

 

27

Exhibit Index

 

27

Signatures

 

 

28

 

1


 

PART I. FINANCIAL INFORMATION

ITEM 1.

FINANCIAL STATEMENTS 

Richardson Electronics, Ltd.

Consolidated Balance Sheets

(in thousands, except per share amounts)

 

 

 

Unaudited

 

 

Audited

 

 

 

November 30, 2019

 

 

June 1, 2019

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

33,054

 

 

$

42,019

 

Accounts receivable, less allowance of $278 and $339, respectively

 

 

22,336

 

 

 

24,296

 

Inventories, net

 

 

56,169

 

 

 

53,232

 

Prepaid expenses and other assets

 

 

2,853

 

 

 

3,067

 

Investments - current

 

 

13,000

 

 

 

8,000

 

Total current assets

 

 

127,412

 

 

 

130,614

 

Non-current assets:

 

 

 

 

 

 

 

 

Property, plant and equipment, net

 

 

18,361

 

 

 

19,111

 

Intangible assets, net

 

 

2,637

 

 

 

2,763

 

Lease ROU asset

 

 

3,991

 

 

 

 

Non-current deferred income taxes

 

 

575

 

 

 

529

 

Total non-current assets

 

 

25,564

 

 

 

22,403

 

Total assets

 

$

152,976

 

 

$

153,017

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

15,439

 

 

$

16,943

 

Accrued liabilities

 

 

10,836

 

 

 

11,273

 

Lease liability current

 

 

1,628

 

 

 

 

Total current liabilities

 

 

27,903

 

 

 

28,216

 

Non-current liabilities:

 

 

 

 

 

 

 

 

Non-current deferred income tax liabilities

 

 

241

 

 

 

212

 

Lease liability non-current

 

 

2,437

 

 

 

 

Other non-current liabilities

 

 

718

 

 

 

832

 

Total non-current liabilities

 

 

3,396

 

 

 

1,044

 

Total liabilities

 

 

31,299

 

 

 

29,260

 

Stockholders’ equity

 

 

 

 

 

 

 

 

Common stock, $0.05 par value; issued and outstanding 11,038 shares at

   November 30, 2019 and 10,957 shares at June 1, 2019

 

 

552

 

 

 

547

 

Class B common stock, convertible, $0.05 par value; issued and outstanding

   2,097 shares at November 30, 2019 and June 1, 2019

 

 

105

 

 

 

105

 

Preferred stock, $1.00 par value, no shares issued

 

 

 

 

 

 

Additional paid-in-capital

 

 

61,436

 

 

 

61,012

 

Common stock in treasury, at cost, no shares at November 30, 2019 and

   June 1, 2019

 

 

 

 

 

 

Retained earnings

 

 

57,688

 

 

 

59,703

 

Accumulated other comprehensive income

 

 

1,896

 

 

 

2,390

 

Total stockholders’ equity

 

 

121,677

 

 

 

123,757

 

Total liabilities and stockholders’ equity

 

$

152,976

 

 

$

153,017

 

2


 

 

Richardson Electronics, Ltd.

Unaudited Consolidated Statements of Comprehensive Loss

(in thousands, except per share amounts)

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

November 30, 2019

 

 

December 1, 2018

 

 

November 30, 2019

 

 

December 1, 2018

 

Statements of Comprehensive Loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

39,634

 

 

$

41,314

 

 

$

80,287

 

 

$

85,471

 

Cost of sales

 

 

26,954

 

 

 

28,343

 

 

 

54,656

 

 

 

58,547

 

Gross profit

 

 

12,680

 

 

 

12,971

 

 

 

25,631

 

 

 

26,924

 

Selling, general and administrative expenses

 

 

13,161

 

 

 

13,425

 

 

 

26,008

 

 

 

26,524

 

Loss on disposal of assets

 

 

 

 

 

 

 

 

1

 

 

 

 

Operating (loss) income

 

 

(481

)

 

 

(454

)

 

 

(378

)

 

 

400

 

Other expense (income):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment/interest income

 

 

(123

)

 

 

(121

)

 

 

(243

)

 

 

(247

)

Foreign exchange loss (gain)

 

 

199

 

 

 

(211

)

 

 

89

 

 

 

75

 

Other, net

 

 

(15

)

 

 

4

 

 

 

(16

)

 

 

(4

)

Total other expense (income)

 

 

61

 

 

 

(328

)

 

 

(170

)

 

 

(176

)

(Loss) income before income taxes

 

 

(542

)

 

 

(126

)

 

 

(208

)

 

 

576

 

Income tax provision

 

 

80

 

 

 

178

 

 

 

257

 

 

 

449

 

Net (loss) income

 

 

(622

)

 

 

(304

)

 

 

(465

)

 

 

127

 

Foreign currency translation gain (loss), net of tax

 

 

222

 

 

 

(1,041

)

 

 

(494

)

 

 

(1,781

)

Comprehensive loss

 

$

(400

)

 

$

(1,345

)

 

$

(959

)

 

$

(1,654

)

Net (loss) income per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares - Basic

 

$

(0.05

)

 

$

(0.02

)

 

$

(0.04

)

 

$

0.01

 

Class B common shares - Basic

 

$

(0.04

)

 

$

(0.02

)

 

$

(0.03

)

 

$

0.01

 

Common shares - Diluted

 

$

(0.05

)

 

$

(0.02

)

 

$

(0.04

)

 

$

0.01

 

Class B common shares - Diluted

 

$

(0.04

)

 

$

(0.02

)

 

$

(0.03

)

 

$

0.01

 

Weighted average number of shares:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares – Basic

 

 

11,038

 

 

 

10,952

 

 

 

11,014

 

 

 

10,890

 

Class B common shares – Basic

 

 

2,097

 

 

 

2,097

 

 

 

2,097

 

 

 

2,114

 

Common shares – Diluted

 

 

11,038

 

 

 

10,952

 

 

 

11,014

 

 

 

11,053

 

Class B common shares – Diluted

 

 

2,097

 

 

 

2,097

 

 

 

2,097

 

 

 

2,114

 

Dividends per common share

 

$

0.060

 

 

$

0.060

 

 

$

0.120

 

 

$

0.120

 

Dividends per Class B common share

 

$

0.054

 

 

$

0.054

 

 

$

0.108

 

 

$

0.108

 

 

3


 

Richardson Electronics, Ltd.

Unaudited Consolidated Statements of Cash Flows

(in thousands)

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

November 30, 2019

 

 

December 1, 2018

 

 

November 30, 2019

 

 

December 1, 2018

 

Operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income

 

$

(622

)

 

$

(304

)

 

$

(465

)

 

$

127

 

Adjustments to reconcile net (loss) income to cash provided

   by (used in) operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

825

 

 

 

792

 

 

 

1,658

 

 

 

1,556

 

Inventory provisions

 

 

120

 

 

 

150

 

 

 

281

 

 

 

365

 

Loss on disposal of assets

 

 

 

 

 

 

 

 

1

 

 

 

 

Share-based compensation expense

 

 

182

 

 

 

230

 

 

 

370

 

 

 

395

 

Deferred income taxes

 

 

23

 

 

 

97

 

 

 

(25

)

 

 

155

 

Change in assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(335

)

 

 

100

 

 

 

1,826

 

 

 

(98

)

Inventories

 

 

(2,062

)

 

 

(1,908

)

 

 

(3,419

)

 

 

(1,831

)

Prepaid expenses and other assets

 

 

(423

)

 

 

(319

)

 

 

202

 

 

 

(282

)

Accounts payable

 

 

2,590

 

 

 

1,538

 

 

 

(1,365

)

 

 

(3,881

)

Accrued liabilities

 

 

486

 

 

 

344

 

 

 

(390

)

 

 

571

 

Other

 

 

(165

)

 

 

161

 

 

 

(109

)

 

 

174

 

Net cash provided by (used in) operating activities

 

 

619

 

 

 

881

 

 

 

(1,435

)

 

 

(2,749

)

Investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

(475

)

 

 

(1,120

)

 

 

(814

)

 

 

(2,192

)

Proceeds from maturity of investments

 

 

 

 

 

 

 

 

8,000

 

 

 

 

Purchases of investments

 

 

(13,000

)

 

 

(3,000

)

 

 

(13,000

)

 

 

(5,300

)

Net cash used in investing activities

 

 

(13,475

)

 

 

(4,120

)

 

 

(5,814

)

 

 

(7,492

)

Financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from issuance of common stock

 

 

59

 

 

 

11

 

 

 

59

 

 

 

203

 

Cash dividends paid

 

 

(775

)

 

 

(770

)

 

 

(1,550

)

 

 

(1,534

)

Payment of financing lease principal

 

 

(45

)

 

 

 

 

 

(75

)

 

 

 

Other

 

 

(4

)

 

 

 

 

 

 

 

 

 

Net cash used in financing activities

 

 

(765

)

 

 

(759

)

 

 

(1,566

)

 

 

(1,331

)

Effect of exchange rate changes on cash and

   cash equivalents

 

 

218

 

 

 

(621

)

 

 

(150

)

 

 

(1,034

)

Decrease in cash and cash equivalents

 

 

(13,403

)

 

 

(4,619

)

 

 

(8,965

)

 

 

(12,606

)

Cash and cash equivalents at beginning of period

 

 

46,457

 

 

 

52,478

 

 

 

42,019

 

 

 

60,465

 

Cash and cash equivalents at end of period

 

$

33,054

 

 

$

47,859

 

 

$

33,054

 

 

$

47,859

 

 

 

4


 

Richardson Electronics, Ltd.

Unaudited Consolidated Statement of Stockholders’ Equity

(in thousands, except per share amounts)

 

 

 

Common

 

 

Class B

Common

 

 

Par

Value

 

 

Additional

Paid In

Capital

 

 

Common

Stock in

Treasury

 

 

Retained

Earnings

 

 

Accumulated

Other

Comprehensive

Income

 

 

Total

 

Balance June 1, 2019:

 

 

10,957

 

 

 

2,097

 

 

$

652

 

 

$

61,012

 

 

$

 

 

$

59,703

 

 

$

2,390

 

 

$

123,757

 

Comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(465

)

 

 

 

 

 

(465

)

Foreign currency translation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(494

)

 

 

(494

)

Share-based compensation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restricted stock

 

 

 

 

 

 

 

 

 

 

 

214

 

 

 

 

 

 

 

 

 

 

 

 

214

 

Stock options

 

 

 

 

 

 

 

 

 

 

 

156

 

 

 

 

 

 

 

 

 

 

 

 

156

 

Common stock:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Options exercised

 

 

10

 

 

 

 

 

 

1

 

 

 

58

 

 

 

 

 

 

 

 

 

 

 

 

59

 

Restricted stock issuance

 

 

71

 

 

 

 

 

 

4

 

 

 

(4

)

 

 

 

 

 

 

 

 

 

 

 

 

Dividends paid to:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common ($0.120 per share)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,324

)

 

 

 

 

 

(1,324

)

Class B ($0.108 per share)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(226

)

 

 

 

 

 

(226

)

Balance November 30, 2019:

 

 

11,038

 

 

 

2,097

 

 

 

657

 

 

 

61,436

 

 

$

 

 

 

57,688

 

 

 

1,896

 

 

 

121,677

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance August 31, 2019:

 

 

11,029

 

 

 

2,097

 

 

$

656

 

 

$

61,200

 

 

$

 

 

$

59,085

 

 

$

1,674

 

 

$

122,615

 

Comprehensive (loss) income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(622

)

 

 

 

 

 

(622

)

Foreign currency translation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

222

 

 

 

222

 

Share-based compensation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restricted stock

 

 

 

 

 

 

 

 

 

 

 

115

 

 

 

 

 

 

 

 

 

 

 

 

115

 

Stock options

 

 

 

 

 

 

 

 

 

 

 

67

 

 

 

 

 

 

 

 

 

 

 

 

67

 

Common stock:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Options exercised

 

 

10

 

 

 

 

 

 

1

 

 

 

58

 

 

 

 

 

 

 

 

 

 

 

 

59

 

Restricted stock issuance

 

 

(1

)

 

 

 

 

 

 

 

 

(4

)

 

 

 

 

 

 

 

 

 

 

 

(4

)

Dividends paid to:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common ($0.06 per share)