Richardson Electronics Reports Fourth Quarter Fiscal 2021 Net Income of $1.9 Million; Fiscal 2021 Net Income of $1.7 Million and Non-GAAP Net Income* of $3.3 Million; Declares Quarterly Cash Dividend
Richardson Electronics (NASDAQ: RELL) reported significant growth in Q4 FY21, with net sales of $50.5 million, an increase of 35.1% year-over-year. This growth was driven by strong demand across all business units, particularly in Richardson Healthcare, where sales surged 92.3% due to the ALTA750™ Tubes. Operating income reached $2.3 million, compared to a loss of $1.3 million in the previous year. The gross margin improved to 32.4%. For fiscal year 2021, net sales rose 13.5% to $176.9 million, with earnings per share at $0.14 for Q4 and $0.13 for the year.
- Net sales increased 35.1% year-over-year to $50.5 million in Q4 FY21.
- Healthcare sales rose 92.3%, driven by ALTA750™ Tube demand.
- Gross margin improved to 32.4% from 30.4% year-over-year.
- Operating income of $2.3 million compared to an operating loss of $1.3 million in Q4 FY20.
- Fiscal year 2021 net sales of $176.9 million, a 13.5% increase.
- Operating expenses rose to $14.0 million, up from $12.7 million in Q4 FY20.
Healthcare, PMG, Canvys and Semiconductor Wafer Fab Revenues Grow Versus Q4 FY20; Higher ALTA750™ Tube Sales
Q4 and FY21 Highlights
- Net sales of
$50.5 million were up35.1% from last year’s fourth quarter and up11.6% over the third quarter of fiscal 2021. - Sales increased for Healthcare, PMG, Canvys and Semiconductor Wafer Fabrication Equipment products in the fourth quarter of fiscal 2021 versus the fourth quarter of fiscal 2020.
- Gross margin improved to
32.4% of net sales for the fourth quarter of fiscal 2021 versus30.4% of net sales in the prior year’s fourth quarter due to a favorable product mix and improved manufacturing performance for Richardson Healthcare. - Operating expenses increased
$1.3 million to$14.0 million compared to the prior year’s fourth quarter. Employee incentive expense increased due to the substantially improved performance, which was partially offset by decreased legal fees of$0.2 million . - Operating income was
$2.3 million for the fourth quarter of fiscal 2021. - Earnings per common share (diluted) were
$0.14 for the fourth quarter of fiscal 2021. - For fiscal year 2021, net sales increased
13.5% to$176.9 million . - Operating income was
$2.9 million for fiscal year 2021, and Non-GAAP operating income* was$4.5 million for fiscal year 2021. - Earnings per common share (diluted) were
$0.13 for fiscal year 2021, and Non-GAAP earnings per common share (diluted)* were$0.25 for fiscal year 2021. - Cash and investments were
$43.3 million as of May 29, 2021 versus$47.4 million on February 27, 2021 and$46.5 million on May 30, 2020.
LAFOX, Ill., July 21, 2021 (GLOBE NEWSWIRE) -- Richardson Electronics, Ltd. (NASDAQ: RELL) today reported financial results for its fourth quarter and fiscal year ended May 29, 2021. The Company also announced that its Board of Directors declared a
Fourth Quarter Results
Net sales for the fourth quarter of fiscal 2021 increased
Gross margin improved to
Operating expenses were
As a result, the Company reported an operating income of
The income tax provision of
“We are pleased with more than
Fiscal 2021 Results
Net sales for fiscal 2021 were
Gross margin increased to
Operating expenses increased to
Operating income was
The income tax provision of
*Please refer to Unaudited Reconciliation between GAAP and Non-GAAP Financial Measures below for a reconciliation of Non-GAAP items to the comparable GAAP measures.
CASH DIVIDEND AND POSITION
The Company also announced today that its Board of Directors declared a
Cash and investments at the end of fiscal 2021 were
NON-GAAP FINANCIAL MEASURES
In addition to the results reported in accordance with accounting principles generally accepted in the United States (GAAP) included throughout this press release, the Company has provided information regarding “Non-GAAP net income,” “Non-GAAP operating income,” “Non-GAAP earnings per common share (diluted)” and “Non-GAAP operating expenses” (each, a Non-GAAP financial measure). These Non-GAAP financial measures exclude a one-time cost in connection with a legal settlement from the most directly comparable financial measures calculated and presented in accordance with GAAP.
Management believes that the disclosure of these Non-GAAP financial measures provides useful information to investors because the Non-GAAP financial measures are useful measures in assessing the Company’s financial performance by excluding a special item that is not indicative of the Company’s core operating performance or that may obscure trends useful in evaluating the Company’s continuing operating activities. Our management uses these Non-GAAP financial measures along with the most directly comparable GAAP financial measures in evaluating our operating performance. The Non-GAAP financial measures presented herein, as determined and presented by the Company, may not be comparable to related or similarly titled measures reported by other companies.
CONFERENCE CALL INFORMATION
On Thursday, July 22, 2021, at 9:00 a.m. CDT, Edward J. Richardson, Chairman and Chief Executive Officer, and Robert J. Ben, Chief Financial Officer, will host a conference call to discuss the Company’s fourth quarter and fiscal year 2021 results. A question and answer session will be included as part of the call’s agenda.
Participant Instructions
To listen to the call, please dial (USA/CANADA) (866) 784-8065 or (International) (602) 563-8684 and enter Conference ID: 8618936 approximately five minutes before the start of the call. A replay of the call will be available beginning at 1:00 p.m. CDT on July 22, 2021, for seven days. The telephone number for the replay is (855) 859-2056; Conference ID: 8618936.
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 that 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 August 3, 2020, and other reports we file with the Securities and Exchange Commission. 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; power conversion and RF and microwave components; high value flat panel detector solutions, replacement parts, tubes and service training for diagnostic imaging equipment; and customized display solutions. We serve customers in the alternative energy, healthcare, 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 through its global infrastructure. More information is available at www.rell.com.
Richardson Electronics Ltd. 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) | ||||||||
| May 29, 2021 | May 30, 2020 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 43,316 | $ | 30,535 | ||||
| Accounts receivable, less allowance of | 24,451 | 20,197 | ||||||
| Inventories, net | 63,508 | 57,492 | ||||||
| Prepaid expenses and other assets | 2,385 | 2,442 | ||||||
| Investments - current | — | 16,000 | ||||||
| Total current assets | 133,660 | 126,666 | ||||||
| Non-current assets: | ||||||||
| Property, plant and equipment, net | 17,067 | 17,674 | ||||||
| Intangible assets, net | 2,270 | 2,505 | ||||||
| Lease ROU asset | 2,570 | 3,419 | ||||||
| Non-current deferred income taxes | 541 | 456 | ||||||
| Total non-current assets | 22,448 | 24,054 | ||||||
| Total assets | $ | 156,108 | $ | 150,720 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 16,334 | $ | 17,372 | ||||
| Accrued liabilities | 14,626 | 10,324 | ||||||
| Lease liability current | 1,066 | 1,485 | ||||||
| Total current liabilities | 32,026 | 29,181 | ||||||
| Non-current liabilities: | ||||||||
| Non-current deferred income tax liabilities | 242 | 161 | ||||||
| Lease liability non-current | 1,358 | 1,941 | ||||||
| Other non-current liabilities | 922 | 777 | ||||||
| Total non-current liabilities | 2,522 | 2,879 | ||||||
| Total liabilities | 34,548 | 32,060 | ||||||
| Stockholders’ equity | ||||||||
| Common stock, | ||||||||
| at May 29, 2021 and 11,038 shares at May 30, 2020 | 558 | 552 | ||||||
| Class B common stock, convertible, | ||||||||
| outstanding 2,097 shares at May 29, 2021 and 2,097 shares at May 30, 2020 | 105 | 105 | ||||||
| Preferred stock, | — | — | ||||||
| Additional paid-in-capital | 62,707 | 61,749 | ||||||
| Retained earnings | 53,297 | 54,764 | ||||||
| Accumulated other comprehensive income | 4,893 | 1,490 | ||||||
| Total stockholders’ equity | 121,560 | 118,660 | ||||||
| Total liabilities and stockholders’ equity | $ | 156,108 | $ | 150,720 | ||||
| Richardson Electronics, Ltd. | ||||||||||||||||
| Consolidated Statements of Comprehensive Income (Loss) | ||||||||||||||||
| (in thousands, except per share amounts) | ||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| May 29, 2021 | May 30, 2020 | May 29, 2021 | May 30, 2020 | |||||||||||||
| Net sales | $ | 50,472 | $ | 37,362 | $ | 176,937 | $ | 155,898 | ||||||||
| Cost of sales | 34,115 | 25,990 | 118,112 | 106,225 | ||||||||||||
| Gross profit | 16,357 | 11,372 | 58,825 | 49,673 | ||||||||||||
| Selling, general and administrative expenses | 14,001 | 12,660 | 55,925 | 51,327 | ||||||||||||
| Loss on disposal of assets | 19 | 2 | 13 | 3 | ||||||||||||
| Operating income (loss) | 2,337 | (1,290 | ) | 2,887 | (1,657 | ) | ||||||||||
| Other expense (income): | ||||||||||||||||
| Investment/interest income | (28 | ) | (37 | ) | (76 | ) | (377 | ) | ||||||||
| Foreign exchange loss (gain) | 109 | (132 | ) | 759 | (15 | ) | ||||||||||
| Other, net | (43 | ) | (27 | ) | (104 | ) | (51 | ) | ||||||||
| Total other expense (income) | 38 | (196 | ) | 579 | (443 | ) | ||||||||||
| Income (loss) before income taxes | 2,299 | (1,094 | ) | 2,308 | (1,214 | ) | ||||||||||
| Income tax provision | 414 | 186 | 653 | 624 | ||||||||||||
| Net income (loss) | 1,885 | (1,280 | ) | 1,655 | (1,838 | ) | ||||||||||
| Foreign currency translation gain (loss), net of tax | 437 | (346 | ) | 3,403 | (900 | ) | ||||||||||
| Comprehensive income (loss) | $ | 2,322 | $ | (1,626 | ) | $ | 5,058 | $ | (2,738 | ) | ||||||
| Net income (loss) per share: | ||||||||||||||||
| Common shares - Basic | $ | 0.14 | $ | (0.10 | ) | $ | 0.13 | $ | (0.14 | ) | ||||||
| Class B common shares - Basic | $ | 0.13 | $ | (0.09 | ) | $ | 0.11 | $ | (0.13 | ) | ||||||
| Common shares - Diluted | $ | 0.14 | $ | (0.10 | ) | $ | 0.13 | $ | (0.14 | ) | ||||||
| Class B common shares - Diluted | $ | 0.13 | $ | (0.09 | ) | $ | 0.11 | $ | (0.13 | ) | ||||||
| Weighted average number of shares: | ||||||||||||||||
| Common shares - Basic | 11,130 | 11,038 | 11,105 | 11,026 | ||||||||||||
| Class B common shares - Basic | 2,097 | 2,097 | 2,097 | 2,097 | ||||||||||||
| Common shares - Diluted | 11,352 | 11,038 | 11,164 | 11,026 | ||||||||||||
| Class B common shares - Diluted | 2,097 | 2,097 | 2,097 | 2,097 | ||||||||||||
| Dividends per common share | $ | 0.060 | $ | 0.060 | $ | 0.240 | $ | 0.240 | ||||||||
| Dividends per Class B common share | $ | 0.054 | $ | 0.054 | $ | 0.220 | $ | 0.220 | ||||||||
| Richardson Electronics, Ltd. | ||||||||
| Consolidated Statements of Cash Flows | ||||||||
| (in thousands) | ||||||||
| Fiscal Year Ended | ||||||||
| May 29, 2021 | May 30, 2020 | |||||||
| Operating activities: | ||||||||
| Net income (loss) | $ | 1,655 | $ | (1,838 | ) | |||
| Adjustments to reconcile net income (loss) to cash provided by | ||||||||
| operating activities: | ||||||||
| Depreciation and amortization | 3,424 | 3,386 | ||||||
| Inventory provisions | 1,041 | 1,013 | ||||||
| Loss on disposal of assets | 13 | 3 | ||||||
| Share-based compensation expense | 675 | 683 | ||||||
| Deferred income taxes | (1 | ) | (7 | ) | ||||
| Change in assets and liabilities: | ||||||||
| Accounts receivable | (3,553 | ) | 3,895 | |||||
| Inventories | (4,861 | ) | (5,452 | ) | ||||
| Prepaid expenses and other assets | 103 | 620 | ||||||
| Accounts payable | (1,210 | ) | 631 | |||||
| Accrued liabilities | 4,016 | (889 | ) | |||||
| Other | (470 | ) | (122 | ) | ||||
| Net cash provided by operating activities | 832 | 1,923 | ||||||
| Investing activities: | ||||||||
| Capital expenditures | (2,632 | ) | (1,776 | ) | ||||
| Proceeds from maturity of investments | 25,000 | 21,000 | ||||||
| Purchases of investments | (9,000 | ) | (29,000 | ) | ||||
| Net cash provided by (used in) investing activities | 13,368 | (9,776 | ) | |||||
| Financing activities: | ||||||||
| Payment of financing lease principal | (181 | ) | (166 | ) | ||||
| Proceeds from issuance of common stock | 289 | 59 | ||||||
| Cash dividends paid on Common and Class B Common shares | (3,122 | ) | (3,101 | ) | ||||
| Net cash used in financing activities | (3,014 | ) | (3,208 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents | 1,595 | (423 | ) | |||||
| Increase (decrease) in cash and cash equivalents | 12,781 | (11,484 | ) | |||||
| Cash and cash equivalents at beginning of period | 30,535 | 42,019 | ||||||
| Cash and cash equivalents at end of period | $ | 43,316 | $ | 30,535 | ||||
| Richardson Electronics, Ltd. | ||||||||||||||||
| Net Sales and Gross Profit | ||||||||||||||||
| For the Fourth Quarter and Fiscal 2021 and Fiscal 2020 | ||||||||||||||||
| ($ in thousands) | ||||||||||||||||
| By Strategic Business Unit: | ||||||||||||||||
| Net Sales | ||||||||||||||||
| Q4 FY 2021 | Q4 FY 2020 | % Change | ||||||||||||||
| PMT | $ | 38,862 | $ | 29,322 | 32.5 | % | ||||||||||
| Canvys | 8,828 | 6,593 | 33.9 | % | ||||||||||||
| Healthcare | 2,782 | 1,447 | 92.3 | % | ||||||||||||
| Total | $ | 50,472 | $ | 37,362 | 35.1 | % | ||||||||||
| YTD FY 2021 | YTD FY 2020 | % Change | ||||||||||||||
| PMT | $ | 137,280 | $ | 118,480 | 15.9 | % | ||||||||||
| Canvys | 29,319 | 28,926 | 1.4 | % | ||||||||||||
| Healthcare | 10,338 | 8,492 | 21.7 | % | ||||||||||||
| Total | $ | 176,937 | $ | 155,898 | 13.5 | % | ||||||||||
| Gross Profit | ||||||||||||||||
| Q4 FY 2021 | % of Net Sales | Q4 FY 2020 | % of Net Sales | |||||||||||||
| PMT | $ | 12,421 | 32.0 | % | $ | 9,741 | 33.2 | % | ||||||||
| Canvys | 3,118 | 35.3 | % | 2,045 | 31.0 | % | ||||||||||
| Healthcare | 818 | 29.4 | % | (414 | ) | -28.6 | % | |||||||||
| Total | $ | 16,357 | 32.4 | % | $ | 11,372 | 30.4 | % | ||||||||
| YTD FY 2021 | % of Net Sales | YTD FY 2020 | % of Net Sales | |||||||||||||
| PMT | $ | 45,951 | 33.5 | % | $ | 38,288 | 32.3 | % | ||||||||
| Canvys | 10,274 | 35.0 | % | 9,313 | 32.2 | % | ||||||||||
| Healthcare | 2,600 | 25.1 | % | 2,072 | 24.4 | % | ||||||||||
| Total | $ | 58,825 | 33.2 | % | $ | 49,673 | 31.9 | % | ||||||||
| Richardson Electronics, Ltd. Unaudited Reconciliation between GAAP and Non-GAAP Financial Measures (in thousands, except per share amounts) | ||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| May 29, 2021 | May 30, 2020 | May 29, 2021 | May 30, 2020 | |||||||||||||
| Selling, general and administrative expenses reconciliation | ||||||||||||||||
| Selling, general and administrative expenses | $ | 14,001 | $ | 12,660 | $ | 55,925 | $ | 51,327 | ||||||||
| Legal settlement | — | — | (1,600 | ) | — | |||||||||||
| Non-GAAP selling, general and administrative expenses | $ | 14,001 | $ | 12,660 | $ | 54,325 | $ | 51,327 | ||||||||
| Operating income (loss) reconciliation | ||||||||||||||||
| Operating income (loss) | $ | 2,337 | $ | (1,290 | ) | $ | 2,887 | $ | (1,657 | ) | ||||||
| Legal settlement | — | — | 1,600 | — | ||||||||||||
| Non-GAAP operating income (loss) reconciliation | $ | 2,337 | $ | (1,290 | ) | $ | 4,487 | $ | (1,657 | ) | ||||||
| Net income (loss) reconciliation | ||||||||||||||||
| Net income (loss) | $ | 1,885 | $ | (1,280 | ) | $ | 1,655 | $ | (1,838 | ) | ||||||
| Legal settlement | — | — | 1,600 | — | ||||||||||||
| Non-GAAP net income (loss) reconciliation | $ | 1,885 | $ | (1,280 | ) | $ | 3,255 | $ | (1,838 | ) | ||||||
| Net income (loss) per share (diluted) reconciliation | ||||||||||||||||
| Net income (loss) per share (diluted) | $ | 0.14 | $ | (0.10 | ) | $ | 0.13 | $ | (0.14 | ) | ||||||
| Legal settlement | — | — | 0.12 | — | ||||||||||||
| Non-GAAP net income (loss) per share (diluted) reconciliation | $ | 0.14 | $ | (0.10 | ) | $ | 0.25 | $ | (0.14 | ) | ||||||
| For Details Contact: | 40W267 Keslinger Road | |
| Edward J. Richardson | Robert J. Ben | PO BOX 393 |
| Chairman and CEO | EVP & CFO | LaFox, IL 60147-0393 USA |
| Phone: (630) 208-2205 | (630) 208-2203 | (630) 208-2200 | Fax: (630) 208-2550 |
FAQ
What were Richardson Electronics' Q4 FY21 earnings results?
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