x
|
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED MARCH 30, 2014
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ______ TO ______
|
DELAWARE
|
52-0729657
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
11126 McCormick Road, Hunt Valley, Maryland
|
|
21031
|
(Address of principal executive offices)
|
|
(Zip Code)
|
Title of each class
|
Name of each exchange on which registered
|
|
Common Stock, $0.01 par value
|
NASDAQ Global Select Market
|
PART 1
|
||
Item 1. |
Business
|
3 |
Item 1A. |
Risk Factors
|
12 |
Item 1B. |
Unresolved Staff Comments
|
23 |
Item 2. |
Properties
|
23 |
Item 3. |
Legal Proceedings
|
23 |
Item 4. |
Mine Safety Disclosures
|
23 |
PART II
|
||
Item 5. |
Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
|
24 |
Item 6. |
Selected Financial Data
|
27 |
Item 7. |
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
28 |
Item 7A. |
Quantitative and Qualitative Disclosures About Market Risk
|
39 |
Item 8. |
Financial Statements and Supplementary Data
|
40 |
Item 9. |
Changes in and Disagreements With Accountants on Accounting and Financial Disclosure
|
64 |
Item 9A. |
Controls and Procedures
|
64 |
Item 9B. |
Other Information
|
66 |
PART III
|
||
Item 10. |
Directors, Executive Officers and Corporate Governance
|
66 |
Item 11. |
Executive Compensation
|
66 |
Item 12. |
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
|
66 |
Item 13. |
Certain Relationships and Related Transactions, and Director Independence
|
66 |
Item 14. |
Principal Accounting Fees and Services
|
66 |
Part IV
|
66 | |
Item 15. |
Exhibits, Financial Statement Schedule
|
66 |
Schedule II: |
Valuation and Qualifying Accounts
|
71 |
72 |
· | Broadband Connectivity |
· | Base Station Infrastructure |
· | Critical Communications |
· | Indoor Network Architecture |
· | Maintenance Repair and Assembly |
· | Outdoor Network Architecture |
· | Remote Monitoring and Control |
· | Mobility and User Devices |
· | Understanding and anticipating customers' needs and building solutions by cultivating lasting relationships; |
· | Allowing customers to make the best decisions by delivering product knowledge, not just information, through our knowledge tools, including The Wireless Journal ® , and TESSCO.com ® , Solution and Transaction System; |
· | Responding to what we refer to as "the moments of truth" by providing customers with sales, service and technical support, 24 hours a day, 7 days a week, 365 days a year; |
· | Providing customers what they need, when and where they need it by delivering integrated product and supply chain solutions; and |
· | Helping customers enhance their operations by providing real-time order tracking and performance measurement. |
· | Customer-specific home pages that offer customized presentations of relevant, market-specific content, tailored to logged-in users’ specific roles in wireless; |
· | Powerful product and knowledge search capabilities enabled by Google search engine logic; |
· | Real-time pricing and product availability; |
· | Easy ordering capabilities, including a Worksheet ordering tool which is the foundation for building end-to-end solutions and requirements, and which allows for the construction and configuration of a total-source order; Worksheets can be immediately converted to an order, as well as saved, copied, shared, uploaded and emailed; |
· | A Knowledge Center that unlocks all assets of TESSCO.com and enables the streamlined navigation of TESSCO’s knowledge content (articles, white papers, Systems Supported illustrations, videos, installation guides, product selection guides, or any other content featured on TESSCO.com); |
· | A recommendation engine that offers product alternatives based on product attributes and past purchase history; |
· | A variety of useful customer service, financial and technical support pages, including the Your Account page which includes all of the tools necessary to manage or modify orders, update the account, find the right support, review Worksheets, handle warranty claims, and explore TESSCO’s capabilities; |
· | Order confirmation – specifying the contents, order status, delivery date, tracking number and total cost of an order; |
· | An Order Tracking Center that provides online order status, at every step of the way, of all order items, available in the real-time Your Account Portal; |
· | Order reservations, order status, back-order details and four-month order history; |
· | The ability to view invoices online and customer‑specific pricing, based on our tiered pricing levels tied to a customer's aggregate purchase volume; |
· | Systems and Devices Supported pages feature interactive, how-to illustrations for a range of wireless applications that help with system design or device accessory support; the illustrations show the product required for a given application, allowing the user to configure an end-to-end solution and build a Worksheet; |
· | Manufacturer portal pages designed to showcase each manufacturer partner’s offer in a custom fashion; |
· | A Feedback Center that makes it easy for customers to provide input on our services, Knowledge Tools and Website; and |
· | Interactive versions of various Knowledge Tools, including: several customized versions of The Wireless Bulletin ® , The Wireless Update ® , The Wireless Guide ® , and The Wireless Journal ® . |
Name
|
Age
|
Position
|
|
|
|
|
|
Robert B. Barnhill, Jr.
|
70
|
Chairman, President and Chief Executive Officer
|
Robert B. Barnhill, Jr. has served as president and chief executive officer since founding the current business in 1982. Mr. Barnhill has been a director of the Company since 1982, and has served, and continues to serve, as Chairman of the Board since November 1993.
|
|
|
|
|
Aric Spitulnik
|
42
|
Senior Vice President, Secretary, and Chief Financial Officer
|
Aric Spitulnik joined the company in 2000. Mr. Spitulnik was appointed controller in 2005 and vice president in 2006. In 2012, he was appointed corporate secretary and in 2014, he was appointed a senior vice president. Since October 2013, Mr. Spitulnik has served as the Company’s chief financial officer.
|
|
|
|
|
Gerald T. Garland
|
63
|
Senior Vice President of the Product Lines of Business
|
Gerald T. Garland rejoined the Company in April 2003 and has served as senior vice president since April 2006. Mr. Garland has served as senior vice president of the installation, test and maintenance line of business since May 2005, as senior vice president of the mobile devices and accessories line of business since April 2004, and as senior vice president of the network infrastructure line of business since April 2003. In July 2011, Mr. Garland began serving as Senior Vice President of the Commercial Segment. Since April 2013, Mr. Garland has served as Senior Vice President of the Product Lines of Business. Between September 1999 and April 2003, Mr. Garland served as director of business development with American Express Business Services and chief financial officer of Mentor Technologies, Inc. Mr. Garland served as the Company’s chief financial officer from September 1993 to September 1999.
|
Douglas A. Rein
|
54
|
Senior Vice President of Performance Systems and Operations
|
Douglas A. Rein joined the Company in July 1999 as Senior Vice President of Performance Systems and Operations. Previously, he was director of operations for Compaq Computer Corporation and vice president, distribution and logistics operations for Intelligent Electronics.
|
|
|
|
|
Said Tofighi
|
59
|
Senior Vice President of Global Manufacturer Supply Chain and Ventev
®
Innovations
|
Said Tofighi rejoined the Company in October 2000 as vice president of customer administration. In April 2005, Mr. Tofighi began serving as vice president of the customer supply chain unit and served in that capacity until May 2006, when he was appointed senior vice president, customer supply chain. In April 2007, Mr. Tofighi began serving as senior vice president of market development and sales. In July 2011, Mr. Tofighi began serving as Senior Vice President of the Retail Segment and Global Manufacturer Supply Chain. Since April 2013, Mr. Tofighi has served as Senior Vice President of Global Manufacturer Supply Chain and Ventev
®
Innovations. Mr. Tofighi originally joined the Company in March 1993 and served in various leadership roles through July 1999. From July 1999 through October 2000, Mr. Tofighi worked outside the Company.
|
|
High
|
Low
|
Dividends
Declared
|
|||||||||
Fiscal Year 2013
|
|
|
|
|||||||||
First Quarter
|
$
|
26.46
|
$
|
17.80
|
$
|
0.18
|
||||||
Second Quarter
|
23.51
|
17.08
|
0.18
|
|||||||||
Third Quarter
|
23.25
|
18.53
|
0.93
|
|||||||||
Fourth Quarter
|
0.26
|
0.21
|
0.18
|
|||||||||
|
||||||||||||
Fiscal Year 2014
|
||||||||||||
First Quarter
|
$
|
26.57
|
$
|
18.60
|
$
|
0.18
|
||||||
Second Quarter
|
34.32
|
26.35
|
0.18
|
|||||||||
Third Quarter
|
41.99
|
32.55
|
0.18
|
|||||||||
Fourth Quarter
|
41.24
|
31.28
|
0.20
|
|
3/29/2009
|
3/28/2010
|
3/27/2011
|
4/1/2012
|
3/31/2013
|
3/30/2014
|
||||||||||||||||||
TESSCO Technologies Incorporated
|
$
|
100.00
|
$
|
301.24
|
$
|
232.13
|
$
|
522.45
|
$
|
475.00
|
$
|
789.71
|
||||||||||||
Russell 2000
|
100.00
|
160.41
|
196.99
|
201.41
|
234.25
|
287.28
|
||||||||||||||||||
Old Peer Group
1
|
100.00
|
148.08
|
190.04
|
255.22
|
266.71
|
325.19
|
||||||||||||||||||
New Peer Group
2
|
100.00
|
152.56
|
193.72
|
253.96
|
260.46
|
319.06
|
|
Fiscal Years Ended
|
|||||||||||||||||||
|
March 30, 2014
|
March 31, 2013
|
April 1, 2012
|
March 27, 2011
|
March 28, 2010
|
|||||||||||||||
STATEMENT OF INCOME DATA
|
|
|
|
|
|
|||||||||||||||
Revenues
|
$
|
560,086,600
|
$
|
752,565,000
|
$
|
733,389,900
|
$
|
605,219,200
|
$
|
522,031,500
|
||||||||||
Cost of goods sold
|
421,928,700
|
605,525,800
|
584,733,700
|
471,938,600
|
398,706,300
|
|||||||||||||||
Gross profit
|
138,157,900
|
147,039,200
|
148,656,200
|
133,280,600
|
123,325,200
|
|||||||||||||||
Selling, general and administrative expenses
|
111,668,000
|
117,820,600
|
121,652,400
|
117,305,100
|
108,269,000
|
|||||||||||||||
Income from operations
|
26,489,900
|
29,218,600
|
27,003,800
|
15,975,500
|
15,056,200
|
|||||||||||||||
Interest, net
|
177,700
|
224,200
|
292,900
|
420,600
|
318,300
|
|||||||||||||||
Income before provision for income taxes
|
26,312,200
|
28,994,400
|
26,710,900
|
15,554,900
|
14,737,900
|
|||||||||||||||
Provision for income taxes
|
10,063,100
|
11,200,500
|
10,274,000
|
5,536,700
|
5,599,100
|
|||||||||||||||
Net income
|
$
|
16,249,100
|
$
|
17,793,900
|
$
|
16,436,900
|
$
|
10,018,200
|
$
|
9,138,800
|
||||||||||
Diluted earnings per share
(1)(2)
|
$
|
1.94
|
$
|
2.15
|
$
|
2.03
|
$
|
1.27
|
$
|
1.19
|
||||||||||
Cash dividends declared per common share
(1)
|
$
|
0.74
|
$
|
1.47
|
$
|
0.55
|
$
|
0.40
|
$
|
0.20
|
||||||||||
|
||||||||||||||||||||
Percentage of Revenues
|
||||||||||||||||||||
Revenues
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
||||||||||
Cost of goods sold
|
75.3
|
80.5
|
79.7
|
78
|
76.4
|
|||||||||||||||
Gross profit
|
24.7
|
19.5
|
20.3
|
22
|
23.6
|
|||||||||||||||
Selling, general and administrative expenses
|
19.9
|
15.7
|
16.6
|
19.4
|
20.7
|
|||||||||||||||
Income from operations
|
4.7
|
3.9
|
3.7
|
2.6
|
2.9
|
|||||||||||||||
Interest, net
|
0.0
|
0.0
|
0.1
|
0.1
|
0.1
|
|||||||||||||||
Income before provision for income taxes
|
4.7
|
3.9
|
3.6
|
2.6
|
2.8
|
|||||||||||||||
Provision for income taxes
|
1.8
|
1.5
|
1.4
|
0.9
|
1.1
|
|||||||||||||||
Net income
|
2.9
|
%
|
2.4
|
%
|
2.2
|
%
|
1.7
|
%
|
1.8
|
%
|
||||||||||
|
||||||||||||||||||||
SELECTED OPERATING DATA
|
||||||||||||||||||||
Average non-consumer buyers per month
|
12,700
|
13,000
|
13,000
|
12,700
|
12,400
|
|||||||||||||||
Return on assets
(3)
|
8.5
|
%
|
9.0
|
%
|
9.1
|
%
|
6.4
|
%
|
6.8
|
%
|
||||||||||
Return on equity
(4)
|
14.9
|
%
|
18.1
|
%
|
19.1
|
%
|
13.5
|
%
|
14.1
|
%
|
||||||||||
|
||||||||||||||||||||
BALANCE SHEET DATA
|
||||||||||||||||||||
Working capital
|
$
|
88,090,400
|
$
|
76,551,700
|
$
|
65,779,800
|
$
|
49,379,000
|
$
|
46,793,200
|
||||||||||
Total assets
|
186,960,300
|
194,300,000
|
202,497,700
|
158,701,800
|
151,346,700
|
|||||||||||||||
Short‑term debt
|
250,200
|
249,700
|
249,200
|
359,100
|
380,000
|
|||||||||||||||
Long‑term debt
|
2,208,200
|
2,458,300
|
2,708,000
|
2,959,100
|
3,328,000
|
|||||||||||||||
Shareholders' equity
|
114,828,100
|
102,802,600
|
93,651,900
|
78,880,100
|
69,645,200
|
(1)
|
All per share numbers prior to March 27, 2011 have been retroactively restated for all periods presented to reflect the May 26, 2010 stock dividend in order to effect a 3-for-2 stock split.
|
(2)
|
Diluted earnings per share prior to March 28, 2010 have been adjusted to show the effects of adoption of the FASB standard addressing accounting for participating securities under the two-class method. See Note 12 to the Consolidated Financial Statements included in Item 8 to this Annual Report on Form 10-K for the fiscal year ended March 30, 2014 for further discussion.
|
(3)
|
Net income divided by the average total assets.
|
(4)
|
Net income divided by the average total equity.
|
|
|
2013 to 2014
|
|
2012 to 2013
|
||||||||||||||||||||||||
|
2014
|
2013
|
$ Change
|
% Change
|
2012
|
$ Change
|
% Change
|
|||||||||||||||||||||
Market Revenues
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Public Carriers, Contractors & Program Managers
|
$
|
149,196
|
$
|
111,146
|
$
|
38,050
|
34.2
|
%
|
$
|
73,824
|
$
|
37,322
|
50.6
|
%
|
||||||||||||||
Private & Government System Operators
|
115,316
|
121,313
|
(5,997
|
)
|
(4.9
|
%)
|
129,129
|
(7,816
|
)
|
(6.1
|
%)
|
|||||||||||||||||
Commercial Dealers & Resellers
|
140,552
|
138,737
|
1,815
|
1.3
|
%
|
125,431
|
13,306
|
10.6
|
%
|
|||||||||||||||||||
Retailers, Independent Dealer Agents & Carriers
|
155,023
|
167,895
|
(12,872
|
)
|
(7.7
|
%)
|
153,803
|
14,092
|
9.2
|
%
|
||||||||||||||||||
Revenues, excluding Major 3PL relationship
|
560,087
|
539,091
|
20,996
|
3.9
|
%
|
482,187
|
56,904
|
11.8
|
%
|
|||||||||||||||||||
Major 3PL relationship
|
--
|
213,474
|
(213,474
|
)
|
(100.0
|
%)
|
251,203
|
(37,729
|
)
|
(15.0
|
%)
|
|||||||||||||||||
Total Revenues
|
$
|
560,087
|
$
|
752,565
|
$
|
(192,478
|
)
|
(25.6
|
%)
|
$
|
733,390
|
$
|
19,175
|
2.6
|
%
|
(Dollars in thousands, except per share data)
|
|
|
2013 to 2014
|
|
2012 to 2013
|
|||||||||||||||||||||||
|
2014
|
2013
|
$ Change
|
% Change
|
2012
|
$ Change
|
% Change
|
|||||||||||||||||||||
Market Gross Profit
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Public Carriers, Contractors & Program Managers
|
$
|
31,013
|
$
|
24,183
|
$
|
6,830
|
28.2
|
%
|
$
|
17,101
|
$
|
7,082
|
41.4
|
%
|
||||||||||||||
Private & Government System Operators
|
31,607
|
33,596
|
(1,989
|
)
|
(5.9
|
%)
|
35,860
|
(2,264
|
)
|
(6.3
|
%)
|
|||||||||||||||||
Commercial Dealers & Resellers
|
39,396
|
38,345
|
1,051
|
2.7
|
%
|
35,393
|
2,952
|
8.3
|
%
|
|||||||||||||||||||
Retailers, Independent Dealer Agents & Carriers
|
36,142
|
35,903
|
239
|
0.7
|
%
|
33,421
|
2,482
|
7.4
|
%
|
|||||||||||||||||||
Gross Profit, excluding Major 3PL relationship
|
138,158
|
132,027
|
6,131
|
4.6
|
%
|
121,775
|
10,252
|
8.4
|
%
|
|||||||||||||||||||
Major 3PL relationship
|
--
|
15,012
|
(15,012
|
)
|
(100.0
|
%)
|
26,881
|
(11,869
|
)
|
(44.2
|
%)
|
|||||||||||||||||
Total Gross Profit
|
138,158
|
147,039
|
(8,881
|
)
|
(6.0
|
%)
|
148,656
|
(1,617
|
)
|
(1.1
|
%)
|
|||||||||||||||||
|
||||||||||||||||||||||||||||
Selling, general and administrative expenses
|
111,668
|
117,821
|
(6,153
|
)
|
(5.2
|
%)
|
121,652
|
(3,831
|
)
|
(3.1
|
%)
|
|||||||||||||||||
Income from operations
|
26,490
|
29,218
|
(2,728
|
)
|
(9.3
|
%)
|
27,004
|
2,214
|
8.2
|
%
|
||||||||||||||||||
Interest, net
|
178
|
224
|
(46
|
)
|
(20.7
|
%)
|
293
|
(69
|
)
|
(23.5
|
%)
|
|||||||||||||||||
Income before provision for income taxes
|
26,312
|
28,994
|
(2,682
|
)
|
(9.3
|
%)
|
26,711
|
2,283
|
8.5
|
%
|
||||||||||||||||||
Provision for income taxes
|
10,063
|
11,200
|
(1,137
|
)
|
(10.2
|
%)
|
10,274
|
926
|
9.0
|
%
|
||||||||||||||||||
Net income
|
$
|
16,249
|
$
|
17,794
|
$
|
(1,545
|
)
|
(8.7
|
%)
|
$
|
16,437
|
$
|
1,357
|
8.3
|
%
|
|||||||||||||
|
||||||||||||||||||||||||||||
Diluted earnings per share
|
$
|
1.94
|
$
|
2.15
|
$
|
(0.21
|
)
|
(9.7
|
%)
|
$
|
2.03
|
$
|
0.12
|
5.9
|
%
|
|
2014
|
2013
|
2012
|
|||||||||
Cash flow provided by operating activities
|
$
|
18,665,400
|
$
|
3,352,400
|
$
|
21,745,500
|
||||||
Cash flow used in investing activities
|
(4,715,500
|
)
|
(5,354,000
|
)
|
(6,513,700
|
)
|
||||||
Cash flow used in financing activities
|
(6,950,000
|
)
|
(11,742,000
|
)
|
(5,198,400
|
)
|
||||||
Net increase (decrease) in cash and cash equivalents
|
$
|
6,999,900
|
$
|
(13,743,600
|
)
|
$
|
10,033,400
|
|
Payment Due by Fiscal Year
|
|||||||||||||||||||
|
Total
|
Less Than
1 Year
|
Years 1-3
|
Years 4-5
|
More Than
5 Years
|
|||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Long-Term Debt Obligations
|
$
|
2,458,400
|
$
|
250,200
|
$
|
2,151,900
|
$
|
56,300
|
$
|
--
|
||||||||||
Revolving credit facility
|
--
|
--
|
--
|
--
|
--
|
|||||||||||||||
Lease Obligations
|
11,034,600
|
2,989,700
|
5,916,300
|
2,128,600
|
--
|
|||||||||||||||
Interest payments (1)
|
105,000
|
47,500
|
56,300
|
1,200
|
--
|
|||||||||||||||
Other Long-Term Liabilities (2)
|
1,087,500
|
--
|
75,000
|
150,000
|
862,500
|
|||||||||||||||
Tax contingency reserves (3)
|
604,900
|
--
|
--
|
--
|
--
|
|||||||||||||||
Total contractual cash obligations
|
$
|
15,290,400
|
$
|
3,287,400
|
$
|
8,199,500
|
$
|
2,336,100
|
$
|
862,500
|
(1)
|
Interest payments include amounts owed on notes payable at their stated contractual rate, as well as interest payments on our note with a bank at a variable rate of LIBOR plus 2.00%.
|
(2)
|
Other Long-Term Liabilities reflected on the Consolidated Balance Sheet include amounts owed under a Supplemental Executive Retirement Plan.
|
(3)
|
We are unable to make a reasonably reliable estimate of the period of the cash settlement with the respective taxing authorities for the $0.6 million balance of our tax contingency reserves, net of federal tax benefits. See further discussion in Note 10—"Income Taxes" to the consolidated financial statements set forth elsewhere herein.
|
|
March 30, 2014
|
March 31, 2013
|
||||||
ASSETS
|
||||||||
Current assets:
|
|
|
||||||
Cash and cash equivalents
|
$
|
11,467,900
|
$
|
4,468,000
|
||||
Trade accounts receivable, net of allowance for doubtful accounts of $1,080,300 and $1,274,700, respectively
|
67,495,700
|
82,177,600
|
||||||
61,955,700
|
60,913,600
|
|||||||
Deferred tax assets, net
|
6,913,000
|
6,227,300
|
||||||
Prepaid expenses and other current assets
|
2,336,600
|
3,482,300
|
||||||
Total current assets
|
150,168,900
|
157,268,800
|
||||||
|
||||||||
Property and equipment, net
|
22,765,400
|
23,202,000
|
||||||
Goodwill, net
|
11,684,700
|
11,684,700
|
||||||
Other long-term assets
|
2,341,300
|
2,144,500
|
||||||
Total assets
|
$
|
186,960,300
|
$
|
194,300,000
|
||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
Current liabilities:
|
||||||||
Trade accounts payable
|
$
|
50,756,900
|
$
|
65,209,300
|
||||
Payroll, benefits and taxes
|
7,670,100
|
11,678,500
|
||||||
Income and sales tax liabilities
|
2,477,700
|
2,530,700
|
||||||
Accrued expenses and other current liabilities
|
923,600
|
1,048,900
|
||||||
Revolving line of credit
|
--
|
--
|
||||||
Current portion of long‑term debt
|
250,200
|
249,700
|
||||||
Total current liabilities
|
62,078,500
|
80,717,100
|
||||||
|
||||||||
Deferred tax liabilities, net
|
4,260,700
|
3,951,800
|
||||||
Long‑term debt, net of current portion
|
2,208,200
|
2,458,300
|
||||||
Other long-term liabilities
|
3,584,800
|
4,370,200
|
||||||
Total liabilities
|
72,132,200
|
91,497,400
|
||||||
Commitment and Contingencies
|
||||||||
|
||||||||
Shareholders' equity:
|
||||||||
Preferred stock, $0.01 par value, 500,000 shares authorized and no shares issued and outstanding
|
--
|
--
|
||||||
Common stock, $0.01 par value, 15,000,000 shares authorized, 13,627,098
shares issued and 8,180,484 shares outstanding as of March 30, 2014, and 13,362,398
shares issued and 7,987,900 shares outstanding as of March 31, 2013
|
94,200
|
91,500
|
||||||
Additional paid‑in capital
|
53,987,700
|
50,481,600
|
||||||
Treasury stock, at cost, 5,446,614 shares outstanding as of March 30, 2014 and 5,374,498 shares outstanding as of March 31, 2013
|
(50,084,600
|
)
|
(48,438,300
|
)
|
||||
Retained earnings
|
110,830,800
|
100,667,800
|
||||||
Total shareholders’ equity
|
114,828,100
|
102,802,600
|
||||||
Total liabilities and shareholders' equity
|
$
|
186,960,300
|
$
|
194,300,000
|
|
Fiscal Years Ended
|
|||||||||||
|
March 30, 2014
|
March 31, 2013
|
April 1, 2012
|
|||||||||
|
|
|
|
|||||||||
Revenues
|
$
|
560,086,600
|
$
|
752,565,000
|
$
|
733,389,900
|
||||||
Cost of goods sold
|
421,928,700
|
605,525,800
|
584,733,700
|
|||||||||
Gross profit
|
138,157,900
|
147,039,200
|
148,656,200
|
|||||||||
Selling, general and administrative expenses
|
111,668,000
|
117,820,600
|
121,652,400
|
|||||||||
Income from operations
|
26,489,900
|
29,218,600
|
27,003,800
|
|||||||||
Interest, net
|
177,700
|
224,200
|
292,900
|
|||||||||
Income before provision for income taxes
|
26,312,200
|
28,994,400
|
26,710,900
|
|||||||||
Provision for income taxes
|
10,063,100
|
11,200,500
|
10,274,000
|
|||||||||
Net income
|
$
|
16,249,100
|
$
|
17,793,900
|
$
|
16,436,900
|
||||||
|
||||||||||||
Basic earnings per share
|
$
|
1.98
|
$
|
2.22
|
$
|
2.12
|
||||||
Diluted earnings per share
|
$
|
1.94
|
$
|
2.15
|
$
|
2.03
|
||||||
Cash dividends declared per common share
|
$
|
0.74
|
$
|
1.47
|
$
|
0.55
|
||||||
|
||||||||||||
Comprehensive income:
|
||||||||||||
Net income
|
$
|
16,249,100
|
$
|
17,793,900
|
$
|
16,436,900
|
||||||
Change in value of interest rate swap, net of tax
|
--
|
--
|
24,600
|
|||||||||
Total comprehensive income
|
$
|
16,249,100
|
$
|
17,793,900
|
$
|
16,461,500
|
|
Common Stock
|
Additional
|
|
Accumulated Other
|
|
Total
|
||||||||||||||||||||||||||
|
Shares
|
Amount
|
Paid-in Capital
|
Treasury
Stock
|
Retained
Earnings
|
Comprehensive
Loss
|
Comprehensive
Income
|
Shareholders’
Equity
|
||||||||||||||||||||||||
Balance at March 27, 2011
|
7,464,945
|
84,100
|
40,668,100
|
(44,388,400
|
)
|
82,540,900
|
(24,600
|
)
|
|
78,880,100
|
||||||||||||||||||||||
Proceeds from issuance of stock
|
169,978
|
1,700
|
1,114,100
|
--
|
--
|
--
|
--
|
1,115,800
|
||||||||||||||||||||||||
Treasury stock purchases
|
(114,445
|
)
|
--
|
--
|
(1,888,000
|
)
|
--
|
--
|
--
|
(1,888,000
|
)
|
|||||||||||||||||||||
Non-cash stock compensation expense
|
224,050
|
2,200
|
2,926,000
|
--
|
--
|
--
|
--
|
2,928,200
|
||||||||||||||||||||||||
Excess tax loss from stock-based compensation
|
--
|
--
|
427,700
|
--
|
--
|
--
|
--
|
427,700
|
||||||||||||||||||||||||
Cash dividends paid
|
--
|
--
|
--
|
--
|
(4,273,400
|
)
|
--
|
--
|
(4,273,400
|
)
|
||||||||||||||||||||||
Comprehensive Income:
|
||||||||||||||||||||||||||||||||
Net income
|
--
|
--
|
--
|
--
|
16,436,900
|
--
|
16,436,900
|
|||||||||||||||||||||||||
Other comprehensive loss, net of tax
|
--
|
--
|
--
|
--
|
--
|
24,600
|
24,600
|
|||||||||||||||||||||||||
Total comprehensive income
|
16,461,500
|
16,461,500
|
||||||||||||||||||||||||||||||
Balance at April 1, 2012
|
7,744,528
|
88,000
|
45,135,900
|
(46,276,400
|
)
|
94,704,400
|
--
|
93,651,900
|
||||||||||||||||||||||||
Proceeds from issuance of stock
|
24,908
|
300
|
486,500
|
--
|
--
|
--
|
--
|
486,800
|
||||||||||||||||||||||||
Treasury stock purchases
|
(101,854
|
)
|
--
|
--
|
(2,161,900
|
)
|
--
|
--
|
--
|
(2,161,900
|
)
|
|||||||||||||||||||||
Non-cash stock compensation expense
|
320,318
|
3,200
|
2,533,600
|
--
|
--
|
--
|
--
|
2,536,800
|
||||||||||||||||||||||||
Excess tax benefit from stock-based compensation
|
--
|
--
|
2,325,600
|
--
|
--
|
--
|
--
|
2,325,600
|
||||||||||||||||||||||||
Cash dividends paid
|
--
|
--
|
--
|
--
|
(11,830,500
|
)
|
--
|
--
|
(11,830,500
|
)
|
||||||||||||||||||||||
Comprehensive Income:
|
||||||||||||||||||||||||||||||||
Net income
|
--
|
--
|
--
|
--
|
17,793,900
|
--
|
17,793,900
|
|||||||||||||||||||||||||
Other comprehensive income, net of tax
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
|||||||||||||||||||||||||
Total comprehensive income
|
17,793,900
|
17,793,900
|
||||||||||||||||||||||||||||||
Balance at March 31, 2013
|
7,987,900
|
91,500
|
50,481,600
|
(48,438,300
|
)
|
100,667,800
|
--
|
102,802,600
|
||||||||||||||||||||||||
Proceeds from issuance of stock
|
23,542
|
200
|
602,800
|
--
|
--
|
--
|
--
|
603,000
|
||||||||||||||||||||||||
Treasury stock purchases
|
(72,116
|
)
|
--
|
--
|
(1,646,300
|
)
|
--
|
--
|
--
|
(1,646,300
|
)
|
|||||||||||||||||||||
Non-cash stock compensation expense
|
241,158
|
2,500
|
2,084,600
|
--
|
--
|
--
|
--
|
2,087,100
|
||||||||||||||||||||||||
Excess tax benefit from stock-based compensation
|
--
|
--
|
818,700
|
--
|
--
|
--
|
--
|
818,700
|
||||||||||||||||||||||||
Cash dividends paid
|
--
|
--
|
--
|
--
|
(6,086,100
|
)
|
--
|
--
|
(6,086,100
|
)
|
||||||||||||||||||||||
Comprehensive Income:
|
||||||||||||||||||||||||||||||||
Net income
|
--
|
--
|
--
|
--
|
16,249,100
|
--
|
16,249,100
|
|||||||||||||||||||||||||
Other comprehensive income, net of tax
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
|||||||||||||||||||||||||
Total comprehensive income
|
16,249,100
|
16,249,100
|
||||||||||||||||||||||||||||||
Balance at March 30, 2014
|
8,180,484
|
$
|
94,200
|
$
|
53,987,700
|
$
|
(50,084,600
|
)
|
$
|
110,830,800
|
$
|
--
|
$
|
114,828,100
|
Fiscal Years Ended
|
||||||||||||
|
March 30, 2014
|
March 31, 2013
|
April 1, 2012
|
|||||||||
|
|
|
|
|||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|||||||||
Net income
|
$
|
16,249,100
|
$
|
17,793,900
|
$
|
16,436,900
|
||||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||||||
Depreciation and amortization
|
4,865,000
|
4,979,400
|
4,844,900
|
|||||||||
Gain on sale of property and equipment
|
(29,500
|
)
|
(3,000
|
)
|
--
|
|||||||
Non-cash stock compensation expense
|
2,087,100
|
2,536,800
|
2,928,200
|
|||||||||
Deferred income taxes and other
|
(1,042,400
|
)
|
(843,700
|
)
|
2,984,100
|
|||||||
Change in trade accounts receivable
|
14,681,900
|
6,570,600
|
(23,039,500
|
)
|
||||||||
Change in product inventory
|
(1,042,100
|
)
|
(7,553,300
|
)
|
(7,650,500
|
)
|
||||||
Change in prepaid expenses and other current assets
|
1,145,700
|
(1,174,100
|
)
|
(639,300
|
)
|
|||||||
Change in trade accounts payable
|
(14,452,400
|
)
|
(13,135,400
|
)
|
15,431,700
|
|||||||
Change in payroll, benefits and taxes
|
(4,008,400
|
)
|
(5,533,100
|
)
|
9,869,100
|
|||||||
Change in income and sales tax liabilities
|
(53,000
|
)
|
(606,300
|
)
|
531,300
|
|||||||
Change in accrued expenses and other current liabilities
|
264,400
|
320,600
|
48,600
|
|||||||||
Net cash provided by operating activities
|
18,665,400
|
3,352,400
|
21,745,500
|
|||||||||
|
||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||||||
Acquisition of property and equipment
|
(4,745,000
|
)
|
(5,357,000
|
)
|
(6,513,700
|
)
|
||||||
Proceeds from sale of property and equipment
|
29,500
|
3,000
|
--
|
|||||||||
Net cash used in investing activities
|
(4,715,500
|
)
|
(5,354,000
|
)
|
(6,513,700
|
)
|
||||||
|
||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||||||
Payments on long‑term debt
|
(249,600
|
)
|
(249,200
|
)
|
(361,000
|
)
|
||||||
Proceeds from issuance of stock
|
213,300
|
174,000
|
829,900
|
|||||||||
Cash dividends paid
|
(6,086,100
|
)
|
(11,830,500
|
)
|
(4,273,400
|
)
|
||||||
Purchases of treasury stock and repurchases of stock from employees and directors for minimum tax withholdings
|
(1,646,300
|
)
|
(2,161,900
|
)
|
(1,888,000
|
)
|
||||||
Excess tax benefit from stock-based compensation
|
818,700
|
2,325,600
|
494,100
|
|||||||||
Net cash used in financing activities
|
(6,950,000
|
)
|
(11,742,000
|
)
|
(5,198,400
|
)
|
||||||
Net increase (decrease) in cash and cash equivalents
|
6,999,900
|
(13,743,600
|
)
|
10,033,400
|
||||||||
CASH AND CASH EQUIVALENTS, beginning of period
|
4,468,000
|
18,211,600
|
8,178,200
|
|||||||||
|
||||||||||||
CASH AND CASH EQUIVALENTS, end of period
|
$
|
11,467,900
|
$
|
4,468,000
|
$
|
18,211,600
|
|
Useful lives
|
|
|
Information technology equipment and software
|
1‑5 years
|
Configuration, Fulfillment and Delivery technology system
|
7 years
|
Furniture, telephone system, equipment and tooling
|
3‑10 years
|
Building, building improvements and leasehold improvements
|
2‑40 years
|
|
2014
|
2013
|
||||||
|
|
|
||||||
Land
|
$
|
4,740,800
|
$
|
4,740,800
|
||||
Building, building improvements and leasehold improvements
|
21,202,400
|
21,147,600
|
||||||
Information technology equipment and computer software
|
24,625,800
|
21,226,200
|
||||||
Furniture, telephone system, equipment and tooling
|
7,734,000
|
7,716,200
|
||||||
|
58,303,000
|
54,830,800
|
||||||
Less accumulated depreciation and amortization
|
(35,537,600
|
)
|
(31,628,800
|
)
|
||||
Property and equipment, net
|
$
|
22,765,400
|
$
|
23,202,000
|
|
2014
|
2013
|
||||||||||||||
|
Gross Carrying Amount
|
Accumulated Amortization
|
Gross Carrying Amount
|
Accumulated Amortization
|
||||||||||||
Amortized intangible assets:
|
|
|
|
|
||||||||||||
$
|
696,100
|
$
|
696,100
|
$
|
696,100
|
$
|
687,500
|
|||||||||
Covenants not to compete
|
377,600
|
377,600
|
377,600
|
373,900
|
||||||||||||
Other
|
878,500
|
878,500
|
878,500
|
878,500
|
||||||||||||
|
1,952,200
|
1,952,200
|
1,952,200
|
1,939,900
|
||||||||||||
Unamortized intangible assets:
|
||||||||||||||||
Trademarks
|
850,000
|
--
|
850,000
|
--
|
||||||||||||
|
||||||||||||||||
Total other intangible assets
|
$
|
2,802,200
|
$
|
1,952,200
|
$
|
2,802,200
|
$
|
1,939,900
|
Fiscal year:
|
|
|||
2015
|
$
|
250,200
|
||
2016
|
250,600
|
|||
2017
|
1,901,300
|
|||
2018
|
26,700
|
|||
2019
|
29,600
|
|||
Thereafter
|
--
|
|||
|
$
|
2,458,400
|
Fiscal year:
|
|
|||
2015
|
$
|
2,981,900
|
||
2016
|
2,957,900
|
|||
2017
|
2,958,200
|
|||
2018
|
2,010,100
|
|||
2019
|
118,500
|
|||
Thereafter
|
--
|
|||
|
$
|
11,026,600
|
|
|
|||||||||||
|
March 30,
2014
|
March 31,
2013
|
April 1,
2012
|
|||||||||
Revenues
|
|
|
|
|||||||||
Public Carriers, Contractors & Program Managers
|
$
|
149,196
|
$
|
111,146
|
$
|
73,824
|
||||||
Private & Government System Operators
|
115,316
|
121,313
|
129,129
|
|||||||||
Commercial Dealers & Resellers
|
140,552
|
138,737
|
125,431
|
|||||||||
Retailer, Independent Dealer Agents & Carriers
|
155,023
|
167,895
|
153,803
|
|||||||||
Revenue, excluding Major 3PL relationship
|
560,087
|
539,091
|
482,187
|
|||||||||
Major 3PL relationship
|
--
|
213,474
|
251,203
|
|||||||||
Total revenues
|
560,087
|
752,565
|
733,390
|
|||||||||
|
||||||||||||
Gross Profit
|
||||||||||||
Public Carriers, Contractors & Program Managers
|
31,013
|
24,183
|
17,101
|
|||||||||
Private & Government System Operators
|
31,607
|
33,596
|
35,860
|
|||||||||
Commercial Dealers & Resellers
|
39,396
|
38,345
|
35,393
|
|||||||||
Retailer, Independent Dealer Agents & Carriers
|
36,142
|
35,903
|
33,421
|
|||||||||
Gross profit, excluding Major 3PL relationship
|
138,158
|
132,027
|
121,775
|
|||||||||
Major 3PL relationship
|
--
|
15,012
|
26,881
|
|||||||||
Total gross profit
|
138,158
|
147,039
|
148,656
|
|||||||||
|
||||||||||||
Directly allocatable expenses
|
70,673
|
70,522
|
71,453
|
|||||||||
Net profit contribution
|
67,485
|
76,517
|
77,203
|
|||||||||
Corporate support expenses
|
41,173
|
47,523
|
50,492
|
|||||||||
Income before provision for income taxes
|
$
|
26,312
|
$
|
28,994
|
$
|
26,711
|
· | Base station infrastructure products are used to build, repair and upgrade wireless telecommunications. Products include base station antennas, cable and transmission lines, small towers, lightning protection devices, connectors, power systems, miscellaneous hardware, and mobile antennas. Our base station infrastructure service offering includes connector installation, custom jumper assembly, site kitting and logistics integration. |
· | Network systems products are used to build and upgrade computing and Internet networks. Products include fixed and mobile broadband equipment, wireless networking, filtering systems, distributed antenna systems, two-way radios and security and surveillance products. This product category also includes training classes, technical support and engineering design services. |
· | Installation, test and maintenance products are used to install, tune, and maintain wireless communications equipment. Products include sophisticated analysis equipment and various frequency-, voltage- and power-measuring devices, as well as an assortment of tools, hardware, GPS, safety and replacement and component parts and supplies required by service technicians. |
· | Mobile devices and accessory products include cellular phone and data device accessories such as replacement batteries, cases, speakers, mobile amplifiers, power supplies, headsets, mounts, car antennas, music accessories and data and memory cards. Retail merchandising displays, promotional programs, customized order fulfillment services and affinity-marketing programs, including private label Internet sites, complement our mobile devices and accessory product offering. |
|
March 30,
2014
|
March 31,
2013
|
April 1,
2012
|
|||||||||
Revenues
|
|
|
|
|||||||||
Base station infrastructure
|
$
|
252,983
|
$
|
227,510
|
$
|
196,611
|
||||||
Network systems
|
89,411
|
78,989
|
75,150
|
|||||||||
Installation, test and maintenance
|
45,343
|
47,766
|
44,507
|
|||||||||
Mobile device accessories
|
172,350
|
398,300
|
417,122
|
|||||||||
Total revenues
|
560,087
|
752,565
|
733,390
|
|||||||||
|
||||||||||||
Gross Profit
|
||||||||||||
Base station infrastructure
|
69,451
|
65,472
|
61,767
|
|||||||||
Network systems
|
16,040
|
14,887
|
15,817
|
|||||||||
Installation, test and maintenance
|
10,286
|
11,151
|
10,365
|
|||||||||
Mobile device accessories
|
42,381
|
55,529
|
60,707
|
|||||||||
Total gross profit
|
$
|
138,158
|
$
|
147,039
|
$
|
148,656
|
|
2014
|
2013
|
2012
|
|||||||||
|
|
|
|
|||||||||
Statutory federal rate
|
35.0
|
%
|
35.0
|
%
|
35.0
|
%
|
||||||
State taxes, net of federal benefit
|
3.3
|
2.9
|
2.6
|
|||||||||
Non-deductible expenses
|
0.7
|
0.5
|
0.5
|
|||||||||
Other
|
(0.8
|
) |
0.2
|
0.4
|
||||||||
Effective rate
|
38.2
|
%
|
38.6
|
%
|
38.5
|
%
|
|
2014
|
2013
|
2012
|
|||||||||
|
|
|
|
|||||||||
Federal: Current
|
$
|
9,252,800
|
$
|
10,593,200
|
$
|
8,598,000
|
||||||
Deferred
|
(396,500
|
)
|
(929,600
|
)
|
612,500
|
|||||||
State: Current
|
1,212,500
|
1,640,400
|
1,007,700
|
|||||||||
Deferred
|
(5,400
|
)
|
(103,500
|
)
|
55,800
|
|||||||
Provision for income taxes
|
$
|
10,063,400
|
$
|
11,200,500
|
$
|
10,274,000
|
|
2014
|
2013
|
||||||
Deferred tax assets:
|
|
|
||||||
Deferred compensation
|
$
|
1,260,000
|
$
|
1,448,900
|
||||
Accrued vacation
|
428,700
|
435,400
|
||||||
Deferred rent
|
886,800
|
1,070,000
|
||||||
Allowance for doubtful accounts
|
374,300
|
448,800
|
||||||
Inventory reserves
|
1,530,000
|
1,254,000
|
||||||
Sales tax reserves
|
472,700
|
618,300
|
||||||
Other assets
|
1,660,600
|
951,900
|
||||||
Total deferred tax assets
|
$
|
6,613,100
|
$
|
6,227,300
|
||||
|
||||||||
Deferred tax liabilities:
|
||||||||
Depreciation and amortization
|
$
|
3,549,700
|
$
|
3,373,100
|
||||
Prepaid expenses
|
423,700
|
429,100
|
||||||
Other liabilities
|
287,300
|
149,600
|
||||||
Total deferred tax liabilities
|
$
|
4,260,700
|
$
|
3,951,800
|
|
2014
|
2013
|
2012
|
|||||||||
Beginning balance of unrecognized tax benefit
|
$
|
631,100
|
$
|
561,600
|
$
|
453,800
|
||||||
Increases related to prior period tax positions
|
1,189,000
|
--
|
--
|
|||||||||
Increases related to current period tax positions
|
22,800
|
69,500
|
107,800
|
|||||||||
Reductions as a result of a lapse in the applicable statute of limitations
|
(177,900
|
)
|
--
|
--
|
||||||||
|
||||||||||||
Ending balance of unrecognized tax benefits
|
$
|
1,665,000
|
$
|
631,100
|
$
|
561,600
|
|
Amounts in thousands, except per share amounts
|
|||||||||||
|
2014
|
2013
|
2012
|
|||||||||
Earnings per share – Basic:
|
|
|
|
|||||||||
Net earnings
|
$
|
16,249
|
$
|
17,794
|
$
|
16,437
|
||||||
Less: Distributed and undistributed earnings allocated to nonvested stock
|
(134
|
)
|
(200
|
)
|
(239
|
)
|
||||||
Earnings available to common shareholders – Basic
|
$
|
16,115
|
$
|
17,594
|
$
|
16,198
|
||||||
|
||||||||||||
Weighted average common shares outstanding – Basic
|
8,134
|
7,929
|
7,639
|
|||||||||
|
||||||||||||
Earnings per common share – Basic
|
$
|
1.98
|
$
|
2.22
|
$
|
2.12
|
||||||
|
||||||||||||
Earnings per share – Diluted:
|
||||||||||||
Net earnings
|
$
|
16,249
|
$
|
17,794
|
$
|
16,437
|
||||||
Less: Distributed and undistributed earnings allocated to nonvested stock
|
(132
|
)
|
(197
|
)
|
(231
|
)
|
||||||
Earnings available to common shareholders – Diluted
|
$
|
16,117
|
$
|
17,597
|
$
|
16,206
|
||||||
|
||||||||||||
Weighted average common shares outstanding – Basic
|
8,134
|
7,929
|
7,639
|
|||||||||
Effect of dilutive options
|
192
|
271
|
356
|
|||||||||
Weighted average common shares outstanding – Diluted
|
8,326
|
8,200
|
7,995
|
|||||||||
|
||||||||||||
Earnings per common share – Diluted
|
$
|
1.94
|
$
|
2.15
|
$
|
2.03
|
|
2014
|
2013
|
2012
|
|||||||||||||||||||||
|
Shares
|
Weighted- Average Fair Value at Grant
|
Shares
|
Weighted- Average Fair Value at Grant
|
Shares
|
Weighted-Average Fair Value at Grant
|
||||||||||||||||||
Outstanding, non-vested beginning of period
|
455,979
|
$
|
12.77
|
604,844
|
$
|
9.81
|
696,089
|
$
|
10.15
|
|||||||||||||||
Granted
|
112,000
|
19.91
|
156,200
|
19.31
|
260,000
|
10.97
|
||||||||||||||||||
Vested
|
(199,066
|
)
|
10.22
|
(288,765
|
)
|
8.64
|
(201,546
|
)
|
8.20
|
|||||||||||||||
Forfeited/canceled
|
(51,786
|
)
|
18.47
|
(16,300
|
)
|
17.69
|
(149,699
|
)
|
15.55
|
|||||||||||||||
Outstanding, non-vested end of period
|
317,127
|
$
|
15.96
|
455,979
|
$
|
12.77
|
604,844
|
$
|
9.81
|
|
Number of Shares
|
2014
|
120,159
|
2015
|
93,410
|
2016
|
39,582
|
2017
|
13,997
|
|
267,148
|
· | Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. |
· | Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets, and quoted prices for identical or similar assets or liabilities in markets that are not active. |
· | Level 3: Unobservable inputs for the asset or liability that reflect the reporting entity’s own assumptions about the inputs used in pricing the asset or liability. |
|
2014
|
2013
|
||||||||||||||
|
Carrying
Amount
|
Fair
Value
|
Carrying
Amount
|
Fair
Value
|
||||||||||||
Note payable to a Bank
|
$
|
2,325,000
|
$
|
2,200,500
|
$
|
2,550,000
|
$
|
2,361,500
|
||||||||
Note payable to Baltimore County
|
$
|
133,400
|
$
|
124,400
|
$
|
158,000
|
$
|
145,300
|
|
Fiscal Year 2014 Quarters Ended
|
Fiscal Year 2013 Quarters Ended
|
||||||||||||||||||||||||||||||
|
Mar. 30,
|
Dec. 29,
|
Sept. 29,
|
Jun. 30,
|
Mar. 31,
|
Dec. 30,
|
Sept. 30,
|
Jul. 1,
|
||||||||||||||||||||||||
|
2014
|
2013
|
2013
|
2013
|
2013
|
2012
|
2012
|
2012
|
||||||||||||||||||||||||
Revenues
|
$
|
124,536,600
|
$
|
144,915,200
|
$
|
146,526,000
|
$
|
144,108,800
|
$
|
158,449,800
|
$
|
204,458,700
|
$
|
197,238,300
|
$
|
192,418,200
|
||||||||||||||||
Cost of goods sold
|
94,451,800
|
108,772,800
|
110,033,200
|
108,670,900
|
124,498,600
|
165,488,900
|
158,613,300
|
156,925,000
|
||||||||||||||||||||||||
Gross profit
|
30,084,800
|
36,142,400
|
36,492,800
|
35,437,900
|
33,951,200
|
38,969,800
|
38,625,000
|
35,493,200
|
||||||||||||||||||||||||
Selling, general and administrative expenses
|
25,315,700
|
28,974,800
|
28,903,400
|
28,474,100
|
29,144,900
|
30,226,300
|
29,887,000
|
28,562,400
|
||||||||||||||||||||||||
Income from operations
|
4,769,100
|
7,167,600
|
7,589,400
|
6,963,800
|
4,806,300
|
8,743,500
|
8,738,000
|
6,930,800
|
||||||||||||||||||||||||
Interest, net
|
18,300
|
37,800
|
67,000
|
54,600
|
141,100
|
13,700
|
12,000
|
57,400
|
||||||||||||||||||||||||
Income before provision for income taxes
|
4,750,800
|
7,129,800
|
7,522,400
|
6,909,200
|
4,665,200
|
8,729,800
|
8,726,000
|
6,873,400
|
||||||||||||||||||||||||
Provision income taxes
|
1,795,500
|
2,709,300
|
2,941,300
|
2,617,000
|
1,745,400
|
3,331,100
|
3,457,100
|
2,666,900
|
||||||||||||||||||||||||
Net income
|
$
|
2,955,300
|
$
|
4,420,500
|
$
|
4,581,100
|
$
|
4,292,200
|
$
|
2,919,800
|
$
|
5,398,700
|
$
|
5,268,900
|
$
|
4,206,500
|
||||||||||||||||
Diluted earnings per share
|
$
|
0.35
|
$
|
0.53
|
$
|
0.55
|
$
|
0.51
|
$
|
0.35
|
$
|
0.65
|
$
|
0.64
|
$
|
0.51
|
||||||||||||||||
Cash dividends declared per common share
|
$
|
0.20
|
$
|
0.18
|
$
|
0.18
|
$
|
0.18
|
$
|
0.18
|
$
|
0.93
|
$
|
0.18
|
$
|
0.18
|
||||||||||||||||
Comprehensive income
|
$
|
2,955,300
|
$
|
4,420,500
|
$
|
4,581,100
|
$
|
4,292,200
|
$
|
2,919,800
|
$
|
5,398,700
|
$
|
5,268,900
|
$
|
4,206,500
|
(a) | The following documents are filed as part of this report: |
1. | The following consolidated financial statements are included in Item 8 of this report: |
2. | The following financial statement schedules are required to be filed by Item 8 and paragraph (b) of this Item 15 included herewith: |
3.
|
Exhibits
|
10.4.3
|
Form of TESSCO Technologies Incorporated Performance Share Unit Agreement – Officers and Employees (incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q filed for the fiscal quarter ended June 27, 2004).
|
10.4.4
|
Form of TESSCO Technologies Incorporated Performance Share Unit Agreement – Non Employee Directors (incorporated by reference to Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q filed for the fiscal quarter ended June 27, 2004).
|
10.5.1
|
Agreement of Lease by and between Atrium Building, LLC and TESSCO Technologies Incorporated (incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q filed for the fiscal quarter ended September 28, 2003).
|
10.5.2
|
Third Amendment to Agreement of Lease by and between Atrium Building, LLC and TESSCO Technologies Incorporated (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on February 18, 2011).
|
10.6.1
|
Credit Agreement, dated June 30, 2004, by and among the Company and affiliates, and Wells Fargo Bank, National Association (as successor to Wachovia Bank, National Association), SunTrust Bank and the lenders party thereto from time to time (Term Loan) (incorporated by reference to Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q filed for the fiscal quarter ended September 26, 2004).
|
10.6.2
|
Joinder, Assumption, Ratification and Modification Agreement, dated as of August 29, 2006, by and among the Company, various affiliates of the Company and Wells Fargo Bank, National Association (as successor to Wachovia Bank, National Association) and SunTrust Bank, as lenders (Term Loan) (incorporated by reference to Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q filed for the fiscal quarter ended September 24, 2006).
|
10.6.3
|
Second Amendment, dated as of May 31, 2007, by and among the Company, various affiliates of the Company and Wells Fargo Bank, National Association (as successor to Wachovia Bank, National Association) and SunTrust Bank, as lenders (Term Loan) (incorporated by reference to Exhibit 10.3 to the Company’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on June 6, 2007).
|
10.6.4
|
Joinder, Assumption and Third Amendment, dated as of May 20, 2011, by and among the Company, various affiliates of the Company and Wells Fargo Bank, National Association (as successor to Wachovia Bank, National Association) and SunTrust Bank, as lenders (Term Loan) (incorporated by reference to Exhibit 10.7.4 to the Company’s Annual Report on Form 10-K filed for the fiscal year ended March 27, 2011).
|
10.6.5
|
Term Note of Company and affiliates, dated June 30, 2004, payable to Wells Fargo Bank, National Association (as successor to Wachovia Bank, National Association) and SunTrust Bank (Term Loan) (incorporated by reference to Exhibit 10.3 to the Company’s Quarterly Report on Form 10-Q filed for the fiscal quarter ended September 26, 2004).
|
10.6.6
|
Guaranty Agreement, dated June 30, 2004, of TESSCO Incorporated, to and for the benefit of Wells Fargo Bank, National Association (as successor to Wachovia Bank, National Association), as agent (Term Loan) (incorporated by reference to Exhibit 10.4 to the Company’s Quarterly Report on Form 10-Q filed for the fiscal quarter ended September 26, 2004).
|
10.6.7
|
Credit Agreement, dated as of May 31, 2007, by and among the Company and its primary operating subsidiaries as borrowers, and SunTrust Bank and Wells Fargo Bank, National Association (as successor to Wachovia Bank, National Association), as lenders (Revolving Line of Credit Facility) (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on June 6, 2007).
|
10.6.8
|
First Modification Agreement, made effective as of June 30, 2008, to Credit Agreement dated as of May 31, 2007, by and among the Company and its primary operating subsidiaries as borrowers, and SunTrust Bank and Wells Fargo Bank, National Association (as successor to Wachovia Bank, National Association), as lenders (Revolving Line of Credit Facility) (incorporated herein by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on July 7, 2008).
|
|
2014
|
2013
|
2012
|
|||||||||
Allowance for doubtful accounts:
|
|
|
|
|||||||||
Balance, beginning of period
|
$
|
1,274,700
|
$
|
998,800
|
$
|
1,616,500
|
||||||
Provision for bad debts
|
202,000
|
1,197,300
|
458,700
|
|||||||||
Write-offs and other adjustments
|
(396,400
|
)
|
(921,400
|
)
|
(1,076,400
|
)
|
||||||
Balance, end of period
|
$
|
1,080,300
|
$
|
1,274,700
|
$
|
998,800
|
|
2014
|
2013
|
2012
|
|||||||||
Inventory Reserve:
|
|
|
|
|||||||||
Balance, beginning of period
|
$
|
3,336,700
|
$
|
3,268,900
|
$
|
4,183,200
|
||||||
Inventory reserve expense
|
1,428,100
|
2,581,200
|
3,494,800
|
|||||||||
Write-offs and other adjustments
|
(678,700
|
)
|
(2,513,400
|
)
|
(4,409,100
|
)
|
||||||
Balance, end of period
|
$
|
4,086,100
|
$
|
3,336,700
|
$
|
3,268,900
|
|
TESSCO Technologies Incorporated
|
||
|
By:
|
/s/ Robert B. Barnhill, Jr.
|
|
|
|
Robert B. Barnhill, Jr., President
May 29, 2014
|
/s/ Robert B. Barnhill, Jr.
|
Chairman of the Board, President and Chief Executive Officer (principal executive officer)
|
May 29, 2014
|
|
Robert B. Barnhill, Jr.
|
|
||
/s/ Aric Spitulnik
|
Senior Vice President, Chief Financial Officer, and Corporate Secretary (principal financial and accounting officer)
|
May 29, 2014
|
|
Aric Spitulnik
|
|
|
|
/s/ Jay G. Baitler
|
Director
|
May 29, 2014
|
|
Jay G. Baitler
|
|
|
|
/s/ John D. Beletic
|
Director
|
May 29, 2014
|
|
John D. Beletic
|
|
|
|
/s/ Benn R. Konsynski
|
Director
|
May 29, 2014
|
|
Benn R. Konsynski
|
|
|
|
/s/ Dennis J. Shaughnessy
|
Director
|
May 29, 2014
|
|
Dennis J. Shaughnessy
|
|
|
|
/s/ Morton F. Zifferer
|
Director
|
May 29, 2014
|
|
Morton F. Zifferer
|
|
|
TESSCO TECHNOLOGIES INCORPORATED
|
||
By:
|
||
Robert B. Barnhill, Jr.
|
||
President and CEO
|
||
EXECUTIVE:
|
||
ARIC SPITULNIK
|
||
Fax:
|
||
Email:
|
Subsidiary
|
State of Incorporation
|
|
|
TESSCO Incorporated
|
Delaware
|
Wireless Solutions Inc.
|
Maryland
|
TESSCO Service Solutions, Inc.
|
Delaware
|
TESSCO de Mexico S.A. de C.V.
|
Mexico
|
TESSCO Communications Incorporated
|
Delaware
|
TESSCO Financial Corporation
|
Delaware
|
TESSCO Business Services LLC
|
Delaware
|
TESSCO Integrated Solutions, LLC
|
Delaware
|
GW Services Solutions, Inc.
|
Delaware
|
TCPM, Inc.
|
Delaware
|
Date:
|
May 29, 2014
|
By:
|
/s/ Robert B. Barnhill, Jr.
|
|
|
|
Robert B. Barnhill, Jr.
|
|
|
|
Chairman, President and Chief Executive Officer
|
Date:
|
May 29, 2014
|
By:
|
/s/ Aric Spitulnik
|
|
|
|
Aric Spitulnik
|
|
|
|
Senior Vice President, Corporate Secretary and
|
|
|
|
Chief Financial Officer
|
Date:
|
May 29, 2014
|
By:
|
/s/ Robert B. Barnhill, Jr.
|
|
|
|
Robert B. Barnhill, Jr.
|
Date:
|
May 29, 2014
|
By:
|
/s/ Aric Spitulnik
|
|
|
|
Aric Spitulnik
|