Exhibit 99.1

 

Tessco Reports Fourth-Quarter 2018 Financial Results

Quarterly Revenues Grow 21%; Annual Revenues Grow 9%, Largest Annual YOY Growth in Six Years

Quarterly Earnings Per Share of $0.07 Following Three Years of Fourth-Quarter Losses

Quarterly Dividend of $0.20 Per Share Continued

HUNT VALLEY, MD, May 7, 2018—TESSCO TECHNOLOGIES INCORPORATED (NASDAQ: TESS), today reported financial results for its fourth quarter of fiscal 2018, ended April 1, 2018.

Fourth-Quarter Highlights:

·

Revenue of $148.9 million, up 21% year over year

·

Revenue growth in all of the Company’s markets from the prior-year fourth quarter

·

Overall expense management contributed to operating margin of 0.8%, compared with (1.4)% in the fourth quarter of fiscal 2017

·

Profit turnaround to $0.07 diluted earnings per share from a loss per share of $(0.10) a year ago

·

Declared quarterly dividend of $0.20 per share

 

 

 

 

 

 

 

 

Fourth Quarter

FY 2018

Fourth Quarter

FY 2017

Third Quarter

FY 2018

Revenue

$148.9M

$122.6M

$146.3M

Earnings per diluted share

$0.07

$(0.10)

$0.19

EBITDA per diluted share*

$0.25

$(0.11)

$0.38

Operating margin

0.8%

(1.4)%

1.5%

Cash balance

$0.0M

$8.5M

$0.0M

Line of credit balance outstanding

$10.8M

$0.0M

$5.9M

 

* 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.  

 

Fourth-Quarter Revenue by Market:

 

 

 

 

 

 

 

 

Year over Year

Q4 FY 2018 vs.

Q4 FY 2017

Sequential

Q4 FY 2018 vs.

Q3 FY 2018

Public Carrier

82%

69%

Value-Added Resellers

5%

(1)%

Government

8%

(3)%

Private System Operators

27%

(7)%

Retail

4%

(20)%

Total

21%

2%

 

 

 

 

 

 

“We continued to execute well on our strategic initiatives during the fourth quarter, delivering year-over-year fourth quarter revenue growth of 21%,” said Murray Wright, President and Chief Executive Officer. “Revenues for the entire fiscal year grew 9%, which is our highest year-over-year growth since fiscal 2012. These achievements were the result of solid execution by our entire team in growing revenues and improving profitability. On the top line, the significant increase from a year ago was driven by 82% growth in sales to the carrier ecosystem and supported by greater sales in all of our markets. While the domestic carrier ecosystem

1


 

showed growth during the fourth quarter, we believe that our revenue growth exceeded the overall ecosystem growth due in part to the new customer relationships we established this year. On the bottom line, this was our first profitable fourth quarter since 2014. This resulted from higher revenues and improved operating leverage due to our successful productivity enhancements.  

“As we look to fiscal 2019, our value proposition is resonating with suppliers and customers across our markets,” Wright continued. “The initiatives we put in place during the past year are beginning to drive our results, and we are focused on balancing the implementation of our go-to-market strategy with improved operating efficiency. We expect continued companywide execution to propel further growth in revenue and profitability in the next fiscal year.”

Fourth-Quarter and Fiscal Year 2018 Financial Results

For the fiscal 2018 fourth quarter, revenues totaled $148.9 million, compared with $122.6 million for the fourth quarter of fiscal 2017. The increase in revenue was driven primarily by the Company’s public carrier market and supported by greater sales to the private system operator, value-added reseller, government and retail markets.

Gross profit was $31.5 million for the fourth quarter of fiscal 2018, compared with $25.9 million for the same quarter of fiscal 2017. The significant increase in fourth-quarter gross profit year over year was primarily the result of higher total sales. Gross margin was 21.2% of revenue for the fourth quarter of fiscal 2018, consistent with last year’s fourth quarter.

As a result of the Company’s ongoing expense control initiatives and productivity enhancements, selling, general and administrative (SG&A) expenses increased 13%, significantly lower on a percentage basis than the revenue and gross profit increase, to $30.4 million. SG&A as a percentage of revenue for the fourth quarter declined from 21.9% to 20.4%.  

Net income and earnings per share (EPS) were $0.6 million and $0.07, respectively, for the fourth quarter of fiscal 2018, compared with net loss of $0.9 million, or $(0.10) per share, for the prior-year fourth quarter. The fiscal 2017 fourth quarter results include a $0.8 million restructuring charge.

For fiscal year 2018, revenue and gross profit increased 9% and 8%, respectively. Net income and earnings per share totaled $4.7 million and $0.55, respectively, compared to $1.4 million and $0.17, respectively, in fiscal 2017.

The fourth quarter of fiscal years 2018 and 2017 contained 14 and 13 weeks, respectively.

Cash Dividend 

The Company’s Board of Directors has declared a quarterly cash dividend of $0.20 per common share payable on June 4, 2018 to common stockholders of record on May 21, 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 year-over-year growth in revenue and profitability in its fiscal 2019. While the company does expect considerable growth in the carrier ecosystem, it also expects this to result in a lower overall year-over-year gross margin, given the lower-margin nature of many of these large carrier relationships. 

2


 

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, which makes it 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.

Fourth-Quarter Fiscal 2018 Conference Call 

Management will host a conference call to discuss fourth quarter FY2018 results tomorrow, Tuesday, May 8, 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 #6299655.

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 May 8, 2018 until 11:59 p.m. ET on May 15, 2018 by calling 855-859-2056 (domestic) or 404-537-3406 (international) and entering confirmation #6299655. An archived replay of the conference call will also be available on the Events page of 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.

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

About TESSCO Technologies Incorporated (NASDAQ: TESS)

TESSCO Technologies, Inc. (NASDAQ: TESS) is a value-added technology distributor, manufacturer, and solutions provider serving commercial and retail customers in the wireless infrastructure and mobile device accessories markets. The company was founded more than 30 years ago with a commitment to deliver industry-leading products, knowledge, solutions, and customer service. TESSCO supplies more than 50,000 products from 400 of the industry’s top manufacturers in mobile communications, Wi-Fi, Internet of Things (“IoT”), 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.

3


 

Forward-Looking Statements 

This press release contains certain 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 from those projected. These forward-looking statements may generally be identified by the use of the words "may," "will," "expects," "anticipates," “targets,” “goals,” “projects,” “intends,” “plans,” “seeks,” "believes," "estimates," and similar expressions, but the absence of these words or phrases does not necessarily mean that a statement is not forward-looking. These forward-looking statements are only predictions and involve a number of risks, uncertainties and assumptions, many of which are outside of our control. Our actual results may differ materially and adversely 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 (the “SEC”), 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. For additional information with respect to risks and other factors which could occur, see TESSCO’s Annual Report on Form 10-K for the year ended March 26, 2017, including Part I, Item 1A, "Risk Factors" therein, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other securities filings with the SEC that are available at the SEC's website at www.sec.gov and other securities regulators.

We are not able to identify or control all circumstances that could occur in the future that may materially and 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 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.

 

 

4


 

 

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

 

Fiscal Years Ended

 

 

April 1, 

 

 

March 26,

 

 

December

 

 

April 1,

 

 

March 26, 

 

 

2018

 

 

2017

 

 

24, 2017

 

 

2018

 

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

$

 148,920,100

 

$

122,602,900

 

$

 146,260,300

 

$

580,274,700

 

$

533,295,100

Cost of goods sold

 

 117,381,400

 

 

   96,665,300

 

 

 116,660,500

 

 

460,046,300

 

 

421,527,300

Gross profit

 

   31,538,700

 

 

   25,937,600

 

 

   29,599,800

 

 

120,228,400

 

 

111,767,800

Selling, general and administrative expenses

 

   30,357,600

 

 

   26,890,400

 

 

   27,413,200

 

 

112,326,700

 

 

108,416,300

Restructuring

 

                    -

 

 

        806,600

 

 

                    -

 

 

                  -                      

 

 

     806,600

Total selling, general and administrative expenses

 

   30,357,600

 

 

   27,697,000

 

 

   27,413,200

 

 

112,326,700

 

 

109,222,900

Income (loss) from operations

 

     1,181,100

 

 

   (1,759,400)

 

 

     2,186,600

 

 

    7,901,700

 

 

 2,544,900

Interest, net

 

          89,500

 

 

          (7,100)

 

 

        114,500

 

 

       429,100

 

 

     58,600

Income (loss) before income tax provision (benefit)

 

     1,091,600

 

 

   (1,752,300)

 

 

     2,072,100

 

 

   7,472,600

 

 

2,486,300

Income tax provision (benefit)

 

        468,300

 

 

      (895,000)

 

 

       501,900

 

 

  2,822,300

 

 

 1,041,200

Net income (loss)

$

        623,300

 

$

      (857,300)

 

$

     1,570,200

 

$

   4,650,300

 

$

   1,445,100

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings (loss) per share

$

              0.07

 

$

            (0.10)

 

$

              0.19

 

$

           0.56

 

$

         0.17

Diluted earnings (loss) per share

$

              0.07

 

$

            (0.10)

 

$

              0.19

 

$

           0.55

 

$

         0.17

 

 

 

 

6


 

TESSCO Technologies Incorporated

Consolidated Balance Sheets

 

 

 

 

 

 

 

 

 

 

April 1,

 

March 26,

 

 

2018

 

2017

 

 

(unaudited)

 

(audited)

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

19,400

 

$

8,540,100

Trade accounts receivable, net

 

 

87,862,300

 

 

64,778,900

Product inventory

 

 

72,323,000

 

 

63,984,300

Prepaid expenses and other current assets

 

 

4,489,100

 

 

3,864,100

Total current assets

 

 

164,693,800

 

 

141,167,400

 

 

 

 

 

 

 

Property and equipment, net

 

 

13,662,800

 

 

13,830,900

Goodwill, net

 

 

11,677,700

 

 

11,677,700

Deferred tax Assets

 

 

165,400

 

 

                           -

Other long-term assets

 

 

8,678,900

 

 

7,304,500

Total assets

 

$

198,878,600

 

$

173,980,500

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

Trade accounts payable

 

$

67,041,100

 

$

53,581,400

Payroll, benefits and taxes

 

 

8,291,100

 

 

6,772,100

Income and sales tax liabilities

 

 

2,339,200

 

 

1,364,700

Accrued expenses and other current liabilities

 

 

1,370,300

 

 

2,228,200

Revolving line of credit

 

 

10,835,400

 

 

-

Current portion of long-term debt

 

 

27,300

 

 

26,500

Total current liabilities

 

 

89,904,400

 

 

63,972,900

 

 

 

 

 

 

 

Deferred tax liabilities

 

 

                     -

 

 

386,800

Long-term debt, net of current portion

 

 

2,300

 

 

29,800

Other long-term liabilities

 

 

1,465,400

 

 

1,574,700

Total liabilities

 

 

91,372,100

 

 

65,964,200

 

 

 

 

 

 

 

Shareholders’ Equity:

 

 

 

 

 

 

Preferred stock

 

 

-

 

 

-

Common stock

 

 

99,000

 

 

98,400

Additional paid-in capital

 

 

60,611,900

 

 

59,006,000

Treasury stock, at cost

 

 

(57,503,000)

 

 

(57,437,600)

Retained earnings

 

 

104,298,600

 

 

106,349,500

Total shareholders’ equity

 

 

107,506,500

 

 

108,016,300

 

 

 

 

 

 

 

7


 

Total liabilities and shareholder’s equity

 

$

198,878,600

 

$

173,980,500

 

 

 

TESSCO Technologies Incorporated

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal Quarters Ended

 

Fiscal Years Ended

 

April 1, 2018

 

March 26, 2017

 

December 24, 2017

 

April 1, 2018

 

March 26, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (loss) as reported

$

623,300

 

$

(857,300)

 

$

1,570,200

 

$

4,650,300

 

$

1,445,100

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision (benefit)

 

468,300

 

 

(895,000)

 

 

501,900

 

 

2,822,300

 

 

1,041,200

Interest, net

 

89,500

 

 

(7,100)

 

 

114,500

 

 

429,100

 

 

58,600

Depreciation and amortization

 

961,900

 

 

877,700

 

 

999,700

 

 

3,992,600

 

 

4,238,900

EBITDA

$

2,143,000

 

$

(881,700)

 

$

3,186,300

 

$

11,894,300

 

$

6,783,800

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock based compensation

 

256,700

 

 

143,300

 

 

243,500

 

 

1,002,100

 

 

434,400

EBITDA, adjusted

$

2,399,700

 

$

(738,400)

 

$

3,429,800

 

$

12,896,400

 

$

7,218,200

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA per diluted share

$

0.25

 

$

(0.11)

 

$

0.38

 

$

1.40

 

$

0.81

Adjusted EBITDA per diluted share

$

0.28

 

$

(0.09)

 

$

0.41

 

$

1.52

 

$

0.87

 

8


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TESSCO Technologies Incorporated

Supplemental Results Summary (in thousands) (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Three Months Ended

 

Growth Rates Compared to

 

 

April 1, 2018

 

March 26, 2017

 

Prior Year Period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market Revenues

 

Commercial

 

Retail

 

Total

 

Commercial

 

Retail

 

Total

 

Commercial

 

Retail

 

Total

Public Carrier

 

$

38,319

 

$

-

 

$

38,319

 

$

21,054

 

$

-

 

$

21,054

 

82.0%

 

-

 

82.0%

Government

 

 

10,331

 

 

-

 

 

10,331

 

 

9,584

 

 

-

 

 

9,584

 

7.8%

 

-

 

7.8%

Private System Operators

 

 

23,153

 

 

-

 

 

23,153

 

 

18,286

 

 

-

 

 

18,286

 

26.6%

 

-

 

26.6%

Value Added Resellers 

 

 

33,340

 

 

-

 

 

33,340

 

 

31,717

 

 

-

 

 

31,717

 

5.1%

 

-

 

5.1%

Retail

 

 

-

 

 

43,777

 

 

43,777

 

 

-

 

 

41,962

 

 

41,962

 

-

 

4.3%

 

4.3%

Total revenues 

 

$

105,143

 

$

43,777

 

$

148,920

 

$

80,641

 

$

41,962

 

$

122,603

 

30.4%

 

4.3%

 

21.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market Gross Profit

 

Commercial

 

Retail

 

Total

 

Commercial

 

Retail

 

Total

 

Commercial

 

Retail

 

Total

Public Carrier

 

$

5,624

 

$

-

 

$

5,624

 

$

3,384

 

$

-

 

$

3,384

 

66.2%

 

-

 

66.2%

Government

 

 

2,282

 

 

-

 

 

2,282

 

 

2,160

 

 

-

 

 

2,160

 

5.6%

 

-

 

5.6%

Private System Operators

 

 

5,397

 

 

-

 

 

5,397

 

 

3,992

 

 

-

 

 

3,992

 

35.2%

 

-

 

35.2%

Value Added Resellers 

 

 

8,888

 

 

-

 

 

8,888

 

 

8,312

 

 

-

 

 

8,312

 

6.9%

 

-

 

6.9%

Retail

 

 

 

 

9,348

 

 

9,348

 

 

-

 

 

8,090

 

 

8,090

 

-

 

15.6%

 

15.6%

Total gross profit 

 

$

22,191

 

$

9,348

 

$

31,539

 

$

17,848

 

$

8,090

 

$

25,938

 

24.3%

 

15.6%

 

21.6%

% of revenues 

 

 

21.1%

 

 

21.4%

 

 

21.2%

 

 

22.1%

 

 

19.3%

 

 

21.2%

 

 

 

 

 

 

 

9


 

 

 

 

 

 

 

 

 

 

 

 

 

 

TESSCO Technologies Incorporated

Supplemental Results Summary (in thousands) (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Three Months Ended

 

 

Growth Rates Compared to

 

 

 

 

April 1, 2018

 

 

March 26, 2017

 

 

Prior Year Period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Revenues

 

 

 

 

 

 

 

 

 

 

 

 

Base Station Infrastructure 

 

$

73,149

 

 

$

52,779

 

 

38.6%

 

 

Network Systems 

 

 

21,601

 

 

 

22,089

 

 

-2.2%

 

 

Installation, Test and Maintenance

 

 

9,273

 

 

 

6,582

 

 

40.9%

 

 

Mobile device accessories  

 

 

44,897

 

 

 

41,153

 

 

9.1%

 

 

Total revenues 

 

$

148,920

 

 

$

122,603

 

 

21.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Gross Profit

 

 

 

 

 

 

 

 

 

 

 

 

Base Station Infrastructure

 

$

16,589

 

 

$

13,542

 

 

22.5%

 

 

Network Systems 

 

 

3,479

 

 

 

2,392

 

 

45.4%

 

 

Installation, Test and Maintenance

 

 

1,660

 

 

 

1,383

 

 

20.0%

 

 

Mobile device accessories  

 

 

9,811

 

 

 

8,621

 

 

13.8%

 

 

Total gross profit 

 

$

31,539

 

 

$

25,938

 

 

21.6%

 

 

% of revenues 

 

 

21.2%

 

 

 

21.2%

 

 

 

 

 

 

10


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TESSCO Technologies Incorporated

Supplemental Results Summary (in thousands) (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended

 

Year Ended

 

Growth Rates Compared to

 

 

April 1, 2018

 

March 26, 2017

 

Prior Period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market Revenues

 

Commercial

 

Retail

 

Total

 

Commercial

 

Retail

 

Total

 

Commercial

 

Retail

 

Total

Public Carrier

 

$

115,061

 

$

-

 

$

115,061

 

$

82,015

 

$

-

 

$

82,015

 

40.3%

 

-

 

40.3%

Government 

 

 

40,481

 

 

-

 

 

40,481

 

 

36,676

 

 

-

 

 

36,676

 

10.4%

 

-

 

10.4%

Private System Operators

 

 

93,246

 

 

-

 

 

93,246

 

 

82,508

 

 

-

 

 

82,508

 

13.0%

 

-

 

13.0%

Value Added Resellers 

 

 

136,888

 

 

-

 

 

136,888

 

 

130,486

 

 

-

 

 

130,486

 

4.9%

 

-

 

4.9%

Retail

 

 

-

 

 

194,599

 

 

194,599

 

 

-

 

 

201,610

 

 

201,610

 

-

 

-3.5%

 

-3.5%

Total revenues 

 

$

385,676

 

$

194,599

 

$

580,275

 

$

331,685

 

$

201,610

 

$

533,295

 

16.3%

 

-3.5%

 

8.8%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market Gross Profit

 

Commercial

 

Retail

 

Total

 

Commercial

 

Retail

 

Total

 

Commercial

 

Retail

 

Total

Public Carrier

 

$

16,707

 

$

-

 

$

16,707

 

$

13,706

 

$

-

 

$

13,706

 

21.9%

 

-

 

21.9%

Government

 

 

8,954

 

 

-

 

 

8,954

 

 

8,235

 

 

-

 

 

8,235

 

8.7%

 

-

 

8.7%

Private System Operators

 

 

20,363

 

 

-

 

 

20,363

 

 

18,073

 

 

-

 

 

18,073

 

12.7%

 

-

 

12.7%

Value Added Resellers 

 

 

35,303

 

 

-

 

 

35,303

 

 

35,530

 

 

-

 

 

35,530

 

-0.6%

 

-

 

-0.6%

Retail

 

 

 

 

38,901

 

 

38,901

 

 

-

 

 

36,224

 

 

36,224

 

-

 

7.4%

 

7.4%

Total gross profit 

 

$

81,327

 

$

38,901

 

$

120,228

 

$

75,544

 

$

36,224

 

$

111,768

 

7.7%

 

7.4%

 

7.6%

% of revenues 

 

 

21.1%

 

 

20.0%

 

 

20.7%

 

 

22.8%

 

 

18.0%

 

 

21.0%

 

 

 

 

 

 

 

 

11


 

 

 

 

 

 

 

 

 

 

 

 

 

 

TESSCO Technologies Incorporated

Supplemental Results Summary (in thousands) (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended

 

 

Year Ended

 

 

Growth Rates Compared to

 

 

 

 

April 1, 2018

 

 

March 26, 2017

 

 

Prior Year Period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Revenues

 

 

 

 

 

 

 

 

 

 

 

 

Base Station Infrastructure 

 

$

248,949

 

 

$

209,869

 

 

18.6%

 

 

Network Systems 

 

 

98,642

 

 

 

87,222

 

 

13.1%

 

 

Installation, Test and Maintenance

 

 

33,200

 

 

 

31,851

 

 

4.2%

 

 

Mobile device accessories  

 

 

199,484

 

 

 

204,353

 

 

-2.4%

 

 

Total revenues 

 

$

580,275

 

 

$

533,295

 

 

8.8%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Gross Profit

 

 

 

 

 

 

 

 

 

 

 

 

Base Station Infrastructure

 

$

58,015

 

 

$

54,280

 

 

6.9%

 

 

Network Systems 

 

 

14,649

 

 

 

11,897

 

 

23.1%

 

 

Installation, Test and Maintenance

 

 

6,266