Exhibit 99.1

 

Tessco Reports Third-Quarter 2018 Financial Results

Quarterly Revenues of $146 million

Earnings Per Share Increase to $0.19

Quarterly Dividend of $0.20 Per Share Continued

HUNT VALLEY, MD, January 23, 2018—TESSCO TECHNOLOGIES INCORPORATED (NASDAQ: TESS), today reported financial results for its third quarter of fiscal 2018, ended December 24, 2017.

Third-Quarter Highlights:

·

Revenue of $146.3 million

·

Revenue growth in government, value-added reseller and private system operator markets

·

Overall expense management contributed to operating margin of 1.5%, compared with 1.4% in the third quarter of fiscal 2017

·

Recorded benefit from new federal tax law of approximately $0.3 million

·

$0.19 EPS and $0.38 EBITDA per diluted share*

·

Company expects a profitable fourth quarter for the first time in three years, with year-over-year double-digit fourth-quarter revenue growth

·

Declared quarterly dividend of $0.20 per share

 

 

 

 

 

 

 

 

Third Quarter

FY 2018

Third Quarter

FY 2017

Second Quarter

FY 2018

Revenue

$146.3M

$147.2M

$145.1M

Earnings per diluted share

$0.19

$0.15

$0.21

EBITDA per diluted share*

$0.38

$0.38

$0.51

Operating margin

1.5%

1.4%

2.2%

Cash balance

$0.0M

$8.4M

$0.2M

Line of credit balance outstanding

$5.9M

$0.0M

$13.3M

 

* EBITDA per diluted share and EBITDA (on which EBITDA per diluted share is based) are Non-GAAP financial measures. Non-GAAP financial measures indicated by an asterisk (*) either in the above chart or in the text of this press release are so indicated as a means to direct the reader to the discussion of Non-GAAP Information below and the reconciliation of Non-GAAP to GAAP results included as an exhibit to this press release.  

 

Third-Quarter Revenue by Market:

 

 

 

 

 

 

 

 

Year over Year

Q3 FY 2018 vs.

Q3 FY 2017

Sequential

Q3 FY 2018 vs.

Q2 FY 2018

Public Carrier

(12%)

(17%)

Value-Added Resellers

8%

(4%)

Government

29%

(3%)

Private System Operators

8%

3%

Retail

(8%)

15%

Total

(1%)

1%

 

 

 

 

 

 

“We executed well on our strategic initiatives during the third quarter, putting us on pace to finish the year with revenue growth and a significant increase in profitability,” said Murray Wright, President and Chief Executive Officer. “On the top line, sales were slightly down primarily due to the timing of orders in the carrier ecosystem.  We expect this decline will be more than offset by increased sales in the fourth quarter, as the pipeline for this

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market is very strong.  Outside of the carrier market, sales were up in the government, value-added reseller and private system operator markets. Our bottom-line growth was a direct result of improved operating leverage due to our successful productivity enhancements, as well as a lower effective tax rate resulting from the new tax law.  

“As we approach the finish of the 2018 fiscal year, we are confident we will continue to execute our strategic plan,” Wright continued. “We are focused on balancing the implementation of our go-to-market strategy with improved operating efficiency. Our emphasis on improving the customer experience is generating increased opportunities. We are leveraging a strong value proposition, and we expect double-digit, year-over-year revenue growth in our fourth quarter. Unlike the previous two fourth quarters, we expect positive bottom-line earnings.”

Third-Quarter Fiscal 2018 Financial Results

For the fiscal 2018 third quarter, revenues totaled $146.3 million, compared with $147.2 million for the third quarter of fiscal 2017. Increases in sales to the Company’s government, value-added reseller and private system operator markets were offset by year-over-year declines in sales to the public carrier and retail markets.

Gross profit was $29.6 million for the third quarter of fiscal 2018, compared with $30.0 million for the same quarter of fiscal 2017. The slight decline in third quarter gross profit year over year was primarily the result of the decline in total sales. Gross margin was 20.2% of revenue for the third quarter of fiscal 2018, compared with 20.4% for last year’s third quarter.

As a result of the Company’s ongoing expense control initiatives and productivity enhancements, selling, general and administrative (SG&A) expenses decreased by $0.4 million to $27.4 million for the third quarter of fiscal 2018, from $27.9 million in the same quarter of the prior year.  

Primarily as a result of the new tax law, the Company’s provision for income taxes declined from $0.8 million in last year’s third quarter to $0.5 million in this year’s third quarter.

Net income and earnings per share (EPS) were $1.6 million and $0.19, respectively, for the third quarter of fiscal 2018, compared with net income and EPS of $1.2 million and $0.15, respectively, for the prior-year third quarter.

Year to date, net income and earnings per shares were $4.0 million and $0.48, respectively, compared to $2.3 million and $0.28 in the same period of fiscal 2017.  Revenue and gross profit increased 5% and 3%, respectively, over the same period.

Balance Sheet and Cash Flows

As of December 24, 2017, the outstanding balance on the Company’s line of credit was $5.9 million. Cash flow used in operations was $7.3 million during the first nine months of the 2018 fiscal year, primarily due to increases in inventory and accounts receivable. Inventory increased by $2.5 million during the first nine months of the fiscal year to $66.5 million as of December 24, 2017. Trade accounts receivable increased $20.3 million in the first nine months of the year to $85.0 million. During the third quarter, inventory and trade accounts receivable both decreased sequentially, resulting in cash provided by operations for the quarter of $9.5 million. The Company expects inventory and the balance on its line of credit to grow during the fourth quarter as it continues to implement new strategic programs with significant carrier customers while also building inventory for the spring building season.

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Cash Dividend 

The Company’s Board of Directors has declared a quarterly cash dividend of $0.20 per common share payable on February 28, 2018 to common stockholders of record on February 14, 2018. Any future declaration of dividends, and the establishment of record and payment dates, is subject to future determinations of the Board of Directors.

Business Outlook

The Company currently anticipates double-digit year-over-year revenue growth and to be profitable in its fiscal 2018 fourth quarter. 

Forecasting future results or trends is inherently difficult for any business, and actual results or trends may differ materially from those forecasted. The nature of the business is that TESSCO typically ships products within several days after booking orders. The lack of an order backlog makes it even more difficult to forecast future results. The Business Outlook published in this press release reflects only the company’s current best estimate and it assumes no obligation to update the information contained in this press release, including the Business Outlook, at any time.

Third-Quarter Fiscal 2018 Conference Call 

Management will host a conference call to discuss third quarter 2018 results tomorrow, Wednesday, January 24, 2018 at 8:30 a.m. ET. To participate in the conference call, please call: 855-319-5921 (domestic call-in) or 503-343-6034 (international call-in) and reference code #6563009.

A live webcast of the conference call will be available on the Events page of the Company’s website. All participants should call or access the website approximately 10 minutes before the conference begins.

A telephone replay of the conference call will be available from 11:30 a.m. ET on January 24, 2018 until 11:59 p.m. ET on January 31, 2018 by calling 855-859-2056 (domestic) or 404-537-3406 (international) and entering confirmation #6563009. An archived replay of the conference call will also be available on the Company's website.

Non-GAAP Information 

EBITDA and EBITDA per diluted share are measures used by management to evaluate the Company’s ongoing operations, and to provide a general indicator of the Company's operating cash flow (in conjunction with a cash flow statement which also includes among other items, changes in working capital and the effect of non-cash charges). EBITDA is defined as income from operations, plus interest expense, net of interest income, provision for income taxes, and depreciation and amortization.  EBITDA per diluted share is defined as EBITDA divided by Tessco’s diluted weighted average shares outstanding.

Management believes EBITDA and EBITDA per share are useful to investors because they are frequently used by securities analysts, investors and other interested parties in the evaluation of companies. Because not all companies use identical calculations, the Company’s presentation of these Non-GAAP measures may not be comparable to other similarly titled measures of other companies. Neither EBITDA nor EBITDA per diluted share is a recognized term under GAAP, and EBITDA does not purport to be an alternative to net income as a measure of operating performance or to cash flows from operating activities as a measure of liquidity. Additionally, neither EBITDA nor EBITDA per diluted share is intended to be a measure of free cash flow for management's discretionary use, as certain cash requirements, such as interest payments, tax payments and debt service requirements, are not reflected.

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A reconciliation of Non-GAAP to GAAP results is included as an exhibit to this release.

About TESSCO Technologies Incorporated (NASDAQ: TESS)

TESSCO Technologies Incorporated (NASDAQ: TESS) is a value-added technology distributor, manufacturer and solutions provider. Tessco was founded more than 30 years ago with a commitment to deliver industry-leading products, knowledge, solutions and customer service and supports customers in the public and private sector. Tessco supplies more than 50,000 products from 400 of the industry’s top manufacturers in mobile communications, Wi-Fi, Internet of Things, wireless backhaul and more. Tessco is a single source for outstanding customer experience, expert knowledge and complete end-to-end solutions for the wireless industry. For more information, visit www.tessco.com.  

Forward-Looking Statements 

This press release contains forward-looking statements as to anticipated results and future prospects. These forward-looking statements are based on current expectations and analysis, and actual results may differ materially. These forward-looking statements may generally be identified by the use of the words "may," "will," "expects," "anticipates," "believes," "estimates," and similar expressions, but the absence of these words or phrases does not necessarily mean that a statement is not forward-looking. Forward-looking statements involve a number of risks and uncertainties. Our actual results may differ materially from those described in or contemplated by any such forward-looking statement for a variety of reasons, including those risks identified in our most recent Annual Report on Form 10-K and other periodic reports filed with the Securities and Exchange Commission, under the heading "Risk Factors" and otherwise. Consequently, the reader is cautioned to consider all forward-looking statements in light of the risks to which they are subject.

We are not able to identify or control all circumstances that could occur in the future that may adversely affect our business and operating results. Without limiting the risks that we describe in our periodic reports and elsewhere, among the risks that could lead to a materially adverse impact on our business or operating results are the following:  termination or non-renewal of limited duration agreements or arrangements with our vendors and affinity partners that are typically terminable by either party upon several months or otherwise relatively short notice; loss of significant customers or relationships, including affinity relationships; loss of customers either directly or indirectly as a result of consolidation among large  wireless services carriers and others within the wireless communications industry; the strength of our customers', vendors' and affinity partners' business; negative or adverse economic conditions, including those adversely  affecting consumer confidence or consumer or business spending or otherwise adversely impacting our vendors or customers, including their access to capital or liquidity, or our customers' demand for, or ability to fund or pay for, the purchase of our products and services; our dependence on a relatively small number of suppliers and vendors, which could hamper our ability to maintain appropriate inventory levels and meet customer demand; changes in customer and product mix that affect gross margin; effect of “conflict minerals” regulations on the supply and cost of certain of our products; failure of our information technology system or distribution system; system security or data protection breaches; technology changes in the wireless communications industry or technological failures, which could lead to significant inventory obsolescence and/or our inability to offer key products that our customers demand; third-party freight carrier interruption; increased competition from competitors, including manufacturers or national and regional distributors of the products we sell and the absence of significant barriers to entry which could result in pricing and other pressures on profitability and market share; our relative bargaining power and inability to negotiate favorable terms with our vendors and customers;  our inability to access capital and obtain financing as and when needed; transitional and other risks associated with acquisitions of companies that we may undertake in an effort to expand our business; claims against us for breach of the intellectual property rights of third parties; product liability claims; our inability to protect certain intellectual property, including systems and technologies on which we rely; our inability to hire or retain for any reason our key professionals, management and staff; and the possibility that, for unforeseen

4


 

or other reasons, we may be delayed in entering into or performing, or may fail to enter into or perform, anticipated contracts or may otherwise be delayed in realizing or fail to realize anticipated revenues or anticipated savings.  

 

TESSCO Technologies Incorporated
Aric Spitulnik
Chief Financial Officer
410-229-1419
spitulnik@tessco.com

or

David Calusdian
Sharon Merrill Associates
617-542-5300

TESS@investorrelations.com 

 

 

5


 

 

 

TESSCO Technologies Incorporated

Consolidated Statements of Income (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal Quarters Ended

 

Nine Months Ended

 

 

December 24, 2017

 

December 25, 2016

 

September 24, 2017

 

December 24, 2017

 

December 25, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

146,260,300

 

$  

147,198,400

 

$  

145,083,500

 

$  

431,354,600

 

$  

410,692,200

Cost of goods sold

 

 

116,660,500

 

 

117,229,800

 

 

115,160,400

 

 

342,664,900

 

 

324,862,000

Gross profit

 

 

29,599,800

 

 

29,968,600

 

 

29,923,100

 

 

88,689,700

 

 

85,830,200

Selling, general and administrative expenses

 

 

27,413,200

 

 

27,860,700

 

 

26,674,400

 

 

81,969,100

 

 

81,525,900

Income from operations

 

 

2,186,600

 

 

2,107,900

 

 

  3,248,700

 

 

6,720,600

 

 

4,304,300

Interest, net

 

 

114,500

 

 

37,100

 

 

     156,500

 

 

339,600

 

 

65,700

Income before provision for income taxes

 

 

2,072,100

 

 

2,070,800

 

 

  3,092,200

 

 

6,381,000

 

 

4,238,600

Provision for income taxes

 

 

501,900

 

 

843,100

 

 

  1,318,300

 

 

2,354,000

 

 

1,936,200

Net income

 

$

1,570,200

 

$  

1,227,700

 

$  

  1,773,900

 

$  

4,027,000

 

$  

2,302,400

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.19

 

$  

0.15

 

$  

          0.21

 

$  

0.48

 

$  

0.28

Diluted earnings per share

 

$

0.19

 

$  

0.15

 

$  

0.21

 

$  

0.48

 

$  

0.28

 

 

6


 

TESSCO Technologies Incorporated

Consolidated Balance Sheets

 

 

 

 

 

 

 

 

 

 

December 24, 2017

 

March 26,
2017

 

 

(unaudited)

 

(audited)

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

42,400

 

$

8,540,100

Trade accounts receivable, net

 

 

85,036,300

 

 

64,778,900

Product inventory

 

 

66,500,600

 

 

63,984,300

Prepaid expenses and other current assets

 

 

4,544,100

 

 

3,864,100

Total current assets

 

 

156,123,400

 

 

141,167,400

 

 

 

 

 

 

 

Property and equipment, net

 

 

12,976,000

 

 

13,830,900

Goodwill, net

 

 

11,677,700

 

 

11,677,700

Other long-term assets

 

 

7,192,000

 

 

7,304,500

Total assets

 

$

187,969,100

 

$

173,980,500

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

Trade accounts payable

 

$

62,383,300

 

$

53,581,400

Payroll, benefits and taxes

 

 

6,141,500

 

 

6,772,100

Income and sales tax liabilities

 

 

2,389,600

 

 

1,364,700

Accrued expenses and other current liabilities

 

 

1,074,200

 

 

2,228,200

Revolving line of credit

 

 

5,937,100

 

 

-

Current portion of long-term debt

 

 

26,900

 

 

26,500

Total current liabilities

 

 

77,952,600

 

 

63,972,900

 

 

 

 

 

 

 

Deferred tax liabilities

 

 

344,500

 

 

386,800

Long-term debt, net of current portion

 

 

9,400

 

 

29,800

Other long-term liabilities

 

 

1,541,800

 

 

1,574,700

Total liabilities

 

 

79,848,300

 

 

65,964,200

 

 

 

 

 

 

 

Shareholders’ Equity:

 

 

 

 

 

 

Preferred stock

 

 

-

 

 

-

Common stock

 

 

98,900

 

 

98,400

Additional paid-in capital

 

 

60,170,800

 

 

59,006,000

Treasury stock, at cost

 

 

(57,503,000)

 

 

(57,437,600)

Retained earnings

 

 

105,354,100

 

 

106,349,500

Total shareholders’ equity

 

 

108,120,800

 

 

108,016,300

 

 

 

 

 

 

 

Total liabilities and shareholder’s equity

 

$

187,969,100

 

$

173,980,500

7


 

 

TESSCO Technologies Incorporated

Reconciliation of Net Income to Earnings Before Interest, Taxes and Depreciation and Amortization (EBITDA) (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal Quarters Ended

 

Nine Months Ended

 

December 24, 2017

 

December 25, 2016

 

September 24, 2017

 

December 24, 2017

 

December 25, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income as reported

$

1,570,200

 

$

1,227,700

 

$

1,773,900

 

$

4,027,000

 

$

2,302,400

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

501,900

 

 

843,100

 

 

1,318,300

 

 

2,354,000

 

 

1,936,200

Interest, net

 

114,500

 

 

37,100

 

 

156,500

 

 

339,600

 

 

65,700

Depreciation and amortization

 

999,700

 

 

1,085,600

 

 

1,041,400

 

 

3,030,700

 

 

3,361,200

EBITDA

$

3,186,300

 

$

3,193,500

 

$

4,290,100

 

$

9,751,300

 

$

7,665,500

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock based compensation

 

243,500

 

 

98,700

 

 

254,300

 

 

745,400

 

 

291,100

EBITDA, adjusted

$

3,429,800

 

$

3,292,200

 

$

4,544,400

 

$

10,496,700

 

$

7,956,600

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA per diluted share

$

0.38

 

$

0.38

 

$

0.51

 

$

1.16

 

$

0.92

Adjusted EBITDA per diluted share

$

0.41

 

$

0.39

 

$

0.54

 

$

1.25

 

$

0.96

 

8


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TESSCO Technologies Incorporated

Supplemental Results Summary (in thousands) (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

December 24, 2017

 

Three Months Ended

December 25, 2016

 

Growth Rates Compared to

Prior Year Period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market Revenues

 

Commercial

 

Retail

 

Total

 

Commercial

 

Retail

 

Total

 

Commercial

 

Retail

 

Total

Public Carrier

 

$

22,721

 

$

-

 

$

22,721

 

$

25,851

 

$

-

 

$

25,851

 

(12.1%)

 

-

 

(12.1%)

Government

 

 

10,680

 

 

-

 

 

10,680

 

 

8,250

 

 

-

 

 

8,250

 

29.5%

 

-

 

29.5%

Private System Operators

 

 

24,844

 

 

-

 

 

24,844

 

 

22,927

 

 

-

 

 

22,927

 

8.4%

 

-

 

8.4%

Value-Added Resellers 

 

 

33,557

 

 

-

 

 

33,557

 

 

31,069

 

 

-

 

 

31,069

 

8.0%

 

-

 

8.0%

Retail

 

 

-

 

 

54,458

 

 

54,458

 

 

-

 

 

59,101

 

 

59,101

 

-

 

(7.9%)

 

(7.9%)

Total revenues 

 

$

91,802

 

$

54,458

 

$

146,260

 

$

88,097

 

$

59,101

 

$

147,198

 

4.2%

 

(7.9%)

 

(0.6%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market Gross Profit

 

Commercial

 

Retail

 

Total

 

Commercial

 

Retail

 

Total

 

Commercial

 

Retail

 

Total

Public Carrier

 

$

3,178

 

$

-

 

$

3,178

 

$

4,070

 

$

-

 

$

4,070

 

(21.9%)

 

-

 

(21.9%)

Government

 

 

2,256

 

 

-

 

 

2,256

 

 

1,843

 

 

-

 

 

1,843

 

22.4%

 

-

 

22.4%

Private System Operators

 

 

5,305

 

 

-

 

 

5,305

 

 

4,902

 

 

-

 

 

4,902

 

8.2%

 

-

 

8.2%

Value-Added Resellers  

 

 

8,512

 

 

-

 

 

8,512

 

 

8,712

 

 

-

 

 

8,712

 

(2.3%)

 

-

 

(2.3%)

Retail

 

 

 

 

10,349

 

 

10,349

 

 

-

 

 

10,442

 

 

10,442

 

-

 

(0.9%)

 

(0.9%)

Total gross profit 

 

$

19,251

 

$

10,349

 

$

29,600

 

$

19,527

 

$

10,442

 

$

29,969

 

(1.4%)

 

(0.9%)

 

(1.2%)

% of revenues 

 

 

21.0%

 

 

19.0%

 

 

20.2%

 

 

22.2%

 

 

17.7%

 

 

20.4%

 

 

 

 

 

 

 

9


 

 

 

 

 

 

 

 

 

 

 

 

 

 

TESSCO Technologies Incorporated

Supplemental Results Summary (in thousands) (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

December 24, 2017

 

 

 

Three Months Ended

December 25, 2016

 

 

Growth Rates Compared to Prior Year Period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Revenues

 

 

 

 

 

 

 

 

 

 

 

 

Base Station Infrastructure 

 

$

57,282

 

 

$

52,193

 

 

9.8%

 

 

Network Systems 

 

 

24,024

 

 

 

25,242

 

 

(4.8%)

 

 

Installation, Test and Maintenance

 

 

9,255

 

 

 

9,633

 

 

(3.9%)

 

 

Mobile Device Accessories  

 

 

55,699

 

 

 

60,130

 

 

(7.4%)

 

 

Total revenues 

 

$

146,260

 

 

$

147,198

 

 

(0.6%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Gross Profit

 

 

 

 

 

 

 

 

 

 

 

 

Base Station Infrastructure

 

$

13,280

 

 

$

13,857

 

 

(4.2%)

 

 

Network Systems 

 

 

3,420

 

 

 

3,186

 

 

7.3%

 

 

Installation, Test and Maintenance

 

 

1,759

 

 

 

1,594

 

 

10.4%

 

 

Mobile Device Accessories  

 

 

11,141

 

 

 

11,332

 

 

(1.7%)

 

 

Total gross profit 

 

$

29,600

 

 

$

29,969

 

 

(1.2%)

 

 

% of revenues 

 

 

20.2%

 

 

 

20.4%

 

 

 

 

 

 

10


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TESSCO Technologies Incorporated

Supplemental Results Summary (in thousands) (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

December 24, 2017

 

Three Months Ended

September 24, 2017

 

Growth Rates Compared to

Prior Period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market Revenues

 

Commercial

 

Retail

 

Total

 

Commercial

 

Retail

 

Total

 

Commercial

 

Retail

 

Total

Public Carrier

 

$

22,721

 

$

-

 

$

22,721

 

$

27,423

 

$

-

 

$

27,423

 

(17.1%)

 

-

 

(17.1%)

Government

 

 

10,680

 

 

-

 

 

10,680

 

 

11,025

 

 

-

 

 

11,025

 

(3.1%)

 

-

 

(3.1%)

Private System Operators

 

 

24,844

 

 

-

 

 

24,844

 

 

24,207

 

 

-

 

 

24,207

 

2.6%

 

-

 

2.6%

Value-Added Resellers  

 

 

33,557

 

 

-

 

 

33,557

 

 

34,951

 

 

-

 

 

34,951

 

(4.0%)

 

-

 

(4.0%)

Retail

 

 

-

 

 

54,458

 

 

54,458

 

 

-

 

 

47,478

 

 

47,478

 

-

 

14.7%

 

14.7%

Total revenues 

 

$

91,802

 

$

54,458

 

$

146,260

 

$

97,606

 

$

47,478

 

$

145,084

 

(5.9%)

 

14.7%

 

0.8%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market Gross Profit

 

Commercial

 

Retail

 

Total

 

Commercial

 

Retail

 

Total

 

Commercial

 

Retail

 

Total

Public Carrier

 

$

3,178

 

$

-

 

$

3,178

 

$

3,777

 

$

-

 

$

3,777

 

(15.9%)

 

-

 

(15.9%)

Government

 

 

2,256

 

 

-

 

 

2,256

 

 

2,412

 

 

-

 

 

2,412

 

(6.5%)

 

-

 

(6.5%)

Private System Operators

 

 

5,305

 

 

-

 

 

5,305

 

 

5,054

 

 

-

 

 

5,054

 

5.0%

 

-

 

5.0%

Value-Added Resellers 

 

 

8,512

 

 

-

 

 

8,512

 

 

8,942

 

 

-

 

 

8,942

 

(4.8%)

 

-

 

(4.8%)

Retail

 

 

 

 

10,349

 

 

10,349

 

 

-

 

 

9,738

 

 

9,738

 

-

 

6.3%

 

6.3%

Total gross profit 

 

$

19,251

 

$

10,349

 

$

29,600

 

$

20,185

 

$

9,738

 

$

29,923

 

(4.6%)

 

6.3%

 

(1.1%)

% of revenues 

 

 

21.0%

 

 

19.0%

 

 

20.2%

 

 

20.7%

 

 

20.5%

 

 

20.6%

 

 

 

 

 

 

 

11


 

 

 

 

6

 

 

 

 

 

 

 

 

 

 

 

 

TESSCO Technologies Incorporated

Supplemental Results Summary (in thousands) (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

December 24, 2017

 

 

Three Months Ended

September 24, 2017

 

 

Growth Rates Compared to Prior Period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Revenues

 

 

 

 

 

 

 

 

 

 

 

 

Base Station Infrastructure 

 

$

57,282

 

 

$

59,448

 

 

(3.6%)

 

 

Network Systems 

 

 

24,024

 

 

 

29,180

 

 

(17.7%)

 

 

Installation, Test and Maintenance

 

 

9,255

 

 

 

7,679

 

 

20.5%

 

 

Mobile Device Accessories  

 

 

55,699

 

 

 

48,777

 

 

14.2%

 

 

Total revenues 

 

$

146,260

 

 

$

145,084

 

 

0.8%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Gross Profit

 

 

 

 

 

 

 

 

 

 

 

 

Base Station Infrastructure

 

$

13,280

 

 

$

14,086

 

 

(5.7%)

 

 

Network Systems 

 

 

3,420

 

 

 

3,921

 

 

(12.8%)

 

 

Installation, Test and Maintenance

 

 

1,759

 

 

 

1,433

 

 

22.7%

 

 

Mobile Device Accessories  

 

 

11,141

 

 

 

10,483

 

 

6.3%

 

 

Total gross profit 

 

$

29,600

 

 

$

29,923

 

 

(1.1%)

 

 

% of revenues 

 

 

20.2%

 

 

 

20.6%

 

 

 

 

 

12


 

 

3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TESSCO Technologies Incorporated

Supplemental Results Summary (in thousands) (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended

December 24, 2017

 

Nine Months Ended

December 25, 2016

 

Growth Rates Compared to

Prior Year Period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market Revenues

 

Commercial

 

Retail

 

Total

 

Commercial

 

Retail

 

Total

 

Commercial

 

Retail

 

Total

Public Carrier

 

$

76,742

 

$

-

 

$

76,742

 

$

60,961

 

$

-

 

$

60,961

 

25.9%

 

-

 

25.9%

Government

 

 

30,150

 

 

-

 

 

30,150

 

 

27,092

 

 

-

 

 

27,092

 

11.3%

 

-

 

11.3%

Private System Operators

 

 

70,093

 

 

-

 

 

70,093

 

 

64,222

 

 

-

 

 

64,222

 

9.1%

 

-

 

9.1%

Value-Added Resellers 

 

 

103,548

 

 

-

 

 

103,548

 

 

98,769

 

 

-

 

 

98,769

 

4.8%

 

-

 

4.8%

Retail

 

 

-

 

 

150,822

 

 

150,822

 

 

-

 

 

159,648

 

 

159,648

 

-

 

(5.5%)

 

(5.5%)

Total revenues 

 

$

280,533

 

$

150,822

 

$

431,355

 

$

251,044

 

$

159,648

 

$

410,692

 

11.7%

 

(5.5%)

 

5.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market Gross Profit

 

Commercial

 

Retail

 

Total

 

Commercial

 

Retail

 

Total

 

Commercial

 

Retail

 

Total

Public Carrier

 

$

11,083

 

 

-

 

 

11,083

 

$

10,323

 

$

-

 

$

10,323

 

7.4%

 

-

 

7.4%

Government

 

 

6,672

 

 

-

 

 

6,672

 

 

6,075

 

 

-

 

 

6,075

 

9.8%

 

-

 

9.8%

Private System Operators

 

 

14,966

 

 

-

 

 

14,966

 

 

14,081

 

 

-

 

 

14,081

 

6.3%

 

-

 

6.3%

Value-Added Resellers  

 

 

26,415

 

 

-

 

 

26,415

 

 

27,218

 

 

-

 

 

27,218

 

(3.0%)

 

-

 

(3.0%)

Retail

 

 

 

 

29,554

 

 

29,554

 

 

-

 

 

28,134

 

 

28,134

 

-

 

5.0%

 

5.0%

Total gross profit 

 

$

59,136

 

 

29,554

 

$

88,690

 

$

57,697

 

$

28,134

 

$

85,831

 

2.5%

 

5.0%

 

3.3%

% of revenues 

 

 

21.1%

 

 

19.6%

 

 

20.6%

 

 

23.0%

 

 

17.6%

 

 

20.9%

 

 

 

 

 

 

 

13


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TESSCO Technologies Incorporated

Supplemental Results Summary (in thousands) (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended

December 24, 2017

 

 

 

Nine Months Ended

December 25, 2016

 

 

Growth Rates Compared to Prior Year Period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Revenues

 

 

 

 

 

 

 

 

 

 

 

 

Base Station Infrastructure 

 

$

175,800

 

 

$

157,090

 

 

11.9%

 

 

Network Systems 

 

 

77,041

 

 

 

65,133

 

 

18.3%

 

 

Installation, Test and Maintenance

 

 

23,927

 

 

 

25,269

 

 

(5.3%)

 

 

Mobile Device Accessories  

 

 

154,587

 

 

 

163,200

 

 

(5.3%)

 

 

Total revenues 

 

$

431,355

 

 

$

410,692

 

 

5.0%