Nevada
|
88-0168936
|
(State
or other jurisdiction of incorporation or organization)
|
(I.R.S.
Employer Identification No.)
|
7610
Miramar Road, Building 6000
San
Diego, California
|
92126
|
(Address
of principal executive offices)
|
(Zip
Code)
|
(858) 549-6340
|
(Registrant’s
telephone number, including area
code)
|
Large
accelerated filer o
|
Accelerated
filer o
|
Non-accelerated
filer o
|
Smaller
reporting company x
|
January 31,
2009
|
October 31,
2008
|
|||||||
(Note 1)
|
||||||||
ASSETS
|
||||||||
CURRENT
ASSETS
|
||||||||
Cash
and cash equivalents
|
$ | 1,159,785 | $ | 1,060,838 | ||||
Certificates
of deposit
|
5,791,324 | 6,315,864 | ||||||
Investments
in available-for-sale securities
|
547,847 | |||||||
Trade
accounts receivable, net of allowance for doubtful accounts of $49,737 and
$46,775
|
1,899,678 | 2,071,349 | ||||||
Inventories
|
5,779,150 | 5,949,708 | ||||||
Other
current assets
|
548,283 | 217,443 | ||||||
Deferred
tax assets
|
542,100 | 542,100 | ||||||
TOTAL
CURRENT ASSETS
|
15,720,320 | 16,705,149 | ||||||
Equipment
and furnishings:
|
||||||||
Equipment
and tooling
|
2,320,250 | 2,205,525 | ||||||
Furniture
and office equipment
|
377,286 | 377,286 | ||||||
2,697,536 | 2,582,811 | |||||||
Less
accumulated depreciation
|
2,072,582 | 2,016,951 | ||||||
TOTAL
|
624,954 | 565,860 | ||||||
Goodwill
|
347,091 | 347,091 | ||||||
Amortizable
intangible asset, net
|
47,522 | 54,311 | ||||||
Note
receivable from stockholder
|
66,980 | 66,980 | ||||||
Other
assets
|
34,776 | 28,382 | ||||||
TOTAL
ASSETS
|
$ | 16,841,643 | $ | 17,767,773 |
January 31,
2009
|
October 31,
2008
|
|||||||
(Note 1)
|
||||||||
LIABILITIES AND STOCKHOLDERS’
EQUITY
|
||||||||
CURRENT
LIABILITIES
|
||||||||
Accounts
payable
|
$ | 218,469 | $ | 329,509 | ||||
Accrued
expenses
|
722,326 | 760,762 | ||||||
Income
taxes payable
|
19,461 | 232,927 | ||||||
TOTAL
CURRENT LIABILITIES
|
960,256 | 1,323,198 | ||||||
Deferred
tax liabilities
|
105,700 | 105,700 | ||||||
Other
long-term liabilities
|
209,424 | 217,185 | ||||||
TOTAL
LIABILITIES
|
1,275,380 | 1,646,083 | ||||||
COMMITMENTS
AND CONTINGENCIES
|
||||||||
STOCKHOLDERS’
EQUITY
|
||||||||
Common
stock - authorized 10,000,000 shares of $0.01 par value; 3,083,671 and
3,226,264 shares issued and outstanding
|
30,837 | 32,263 | ||||||
Additional
paid-in capital
|
6,455,381 | 6,411,810 | ||||||
Retained
earnings
|
9,080,045 | 9,677,617 | ||||||
TOTAL
STOCKHOLDERS’ EQUITY
|
15,566,263 | 16,121,690 | ||||||
TOTAL
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$ | 16,841,643 | $ | 17,767,773 |
2009
|
2008
|
|||||||
Net
sales
|
$ | 3,582,583 | $ | 3,826,566 | ||||
Cost
of sales
|
1,936,897 | 1,955,493 | ||||||
Gross
profit
|
1,645,686 | 1,871,073 | ||||||
Operating
expenses:
|
||||||||
Engineering
|
255,726 | 272,392 | ||||||
Selling
and general
|
1,248,791 | 1,331,543 | ||||||
Totals
|
1,504,517 | 1,603,935 | ||||||
Operating
income
|
141,169 | 267,138 | ||||||
Other
income - interest
|
82,348 | 69,706 | ||||||
Income
before income taxes
|
223,517 | 336,844 | ||||||
Provision
for income taxes
|
61,078 | 154,603 | ||||||
Net
income
|
$ | 162,439 | $ | 182,241 | ||||
Basic
earnings per share
|
$ | 0.05 | $ | 0.06 | ||||
Diluted
earnings per share
|
$ | 0.05 | $ | 0.05 | ||||
Basic
weighted average shares outstanding
|
3,122,700 | 3,291,503 | ||||||
Diluted
weighted average shares outstanding
|
3,447,665 | 3,723,300 |
2009
|
2008
|
|||||||
OPERATING
ACTIVITIES:
|
||||||||
Net
income
|
$ | 162,439 | $ | 182,241 | ||||
Adjustments
to reconcile net income to net cash provided by (used in) operating
activities:
|
||||||||
Bad
debt expense adjustment
|
4,956 | (3,502 | ) | |||||
Depreciation
and amortization
|
62,420 | 68,903 | ||||||
Deferred
income taxes
|
49,000 | |||||||
Stock-based
compensation expense
|
49,646 | 139,981 | ||||||
Changes
in operating assets and liabilities:
|
||||||||
Trade
accounts receivable
|
166,715 | 209,808 | ||||||
Inventories
|
170,558 | (492,277 | ) | |||||
Income
taxes payable
|
(213,466 | ) | (124,935 | ) | ||||
Other
current assets
|
(330,840 | ) | (129,929 | ) | ||||
Other
long-term assets
|
(6,394 | ) | - | |||||
Accounts
payable
|
(111,041 | ) | 78,886 | |||||
Accrued
expenses
|
(6,156 | ) | 212,742 | |||||
Other
long-term liabilities
|
(7,761 | ) | 23,739 | |||||
Net
cash provided by (used in) operating activities
|
(58,924 | ) | 214,657 | |||||
INVESTING
ACTIVITIES:
|
||||||||
Purchase
of short term investments
|
(1,500,000 | ) | (1,200,000 | ) | ||||
Sale
of short term investments
|
2,572,386 | 1,400,000 | ||||||
Capital
expenditures
|
(114,725 | ) | - | |||||
Net
cash provided by investing activities
|
957,661 | 200,000 | ||||||
FINANCING
ACTIVITIES:
|
||||||||
Proceeds
from exercise of stock options
|
- | 29,789 | ||||||
Purchases
of treasury stock
|
(705,010 | ) | - | |||||
Dividends
paid
|
(94,780 | ) | - | |||||
Net
cash provided by (used in) financing activities
|
(799,790 | ) | 29,789 | |||||
Net
increase in cash and cash equivalents
|
98,947 | 444,446 | ||||||
Cash
and cash equivalents, beginning of period
|
1,060,838 | 3,400,566 | ||||||
Cash
and cash equivalents, end of period
|
$ | 1,159,785 | $ | 3,845,012 | ||||
Supplemental
cash flow information:
|
||||||||
Income
taxes paid
|
$ | 295,000 | $ | 230,000 | ||||
Retirement
of treasury stock
|
705,010 | |||||||
Stock
issuance related to contingent liability
|
30,000 | |||||||
Dividends
declared
|
98,230 |
January 31, 2009
|
October 31, 2008
|
|||||||
Raw
materials and supplies
|
$ | 1,538,391 | $ | 1,496,364 | ||||
Work
in process
|
20,817 | 31,131 | ||||||
Finished
goods
|
4,234,293 | 4,502,890 | ||||||
Inventory
reserve
|
(14,351 | ) | (80,677 | ) | ||||
Total
|
$ | 5,779,150 | $ | 5,949,708 |
Three Months Ended January 31
|
||||||||
2009
|
2008
|
|||||||
Weighted
average shares outstanding for basic earnings per share
|
3,122,700 | 3,291,503 | ||||||
Add
effects of potentially dilutive securities-assumed exercise of stock
options
|
324,965 | 431,797 | ||||||
Weighted
average shares for diluted net earnings per share
|
3,447,665 | 3,723,300 |
Risk-free
interest rate
|
1.01 | % | ||
Dividend
yield
|
2.96 | % | ||
Expected
life of the option
|
2.5
years
|
|||
Volatility
factor
|
60.37 | % |
Shares
|
Weighted
Average Exercise
Price
|
Weighted Average
Remaining
Contractual Term
|
Aggregate
Intrinsic
Value
|
||||||||||
Outstanding
at November 1, 2008
|
1,067,041 | $ | 3.77 | ||||||||||
Options
granted
|
16,000 | $ | 4.05 | ||||||||||
Options
exercised
|
- | $ | - | ||||||||||
Options
canceled or expired
|
(22,210 | ) | $ | 6.08 | |||||||||
Options
outstanding at January 31, 2009
|
1,060,831 | $ | 3.72 |
5.38 years
|
$ | $1,463,357 | |||||||
Options
exercisable at January 31, 2009
|
833,648 | $ | 3.77 |
5.73 years
|
$ | 1,284,057 |
Three Months Ended January 31
|
||||||||
2009
|
2008
|
|||||||
United
States
|
$ | 2,773,233 | $ | 3,167,140 | ||||
Foreign
countries:
|
||||||||
Israel
|
512,149 | 225,134 | ||||||
All
other
|
297,201 | 434,292 | ||||||
$ | 3,582,583 | $ | 3,826,566 |
2009
|
RF
Connectors
and
Cable Assembly
|
Medical
Cabling
and
Interconnector
|
RF
Wireless
|
Corporate
|
Total
|
|||||||||||||||
Net
sales
|
$
|
3,128,257
|
$
|
273,157
|
$
|
181,169
|
$
|
3,582,583
|
||||||||||||
Income
(loss) before provision for income taxes
|
300,348
|
(15,795)
|
(143,384)
|
$
|
82,348
|
223,517
|
||||||||||||||
Depreciation
and amortization
|
52,090
|
3,421
|
6,909
|
62,420
|
||||||||||||||||
207
2008
|
||||||||||||||||||||
Net
sales
|
$
|
3,277,369
|
202,404
|
$
|
346,793
|
$
|
$
|
3,826,566
|
||||||||||||
Income
(loss) before provision for income taxes
|
338,626
|
(16,420)
|
(55,068)
|
69,706
|
336,844
|
|||||||||||||||
Depreciation
and amortization
|
53,981
|
5,571
|
9,351
|
68,903
|
January 31,
2009
|
October
31,
2008
|
|||||||
Intangible
assets
|
||||||||
Non-compete
agreement
|
$
|
120,000
|
$
|
120,000
|
||||
Accumulated amortization
|
(120,000
|
)
|
(120,000
|
)
|
||||
—
|
—
|
|||||||
Software
|
47,522
|
47,522
|
||||||
Accumulated
amortization
|
(19,801
|
)
|
(15,841
|
)
|
||||
27,721
|
31,681
|
|||||||
Customer
List
|
33,945
|
33,945
|
||||||
Accumulated
amortization
|
(14,144
|
)
|
(11,315
|
)
|
||||
19,801
|
22,630
|
|||||||
Totals
|
$
|
47,522
|
$
|
54,311
|
|
·
|
As
of January 31, 2009, the amount of cash and cash equivalents was equal to
$1,159,785 in the aggregate and the Company had $5,791,324 of investments
in certificates of deposit.
|
|
·
|
As
of January 31, 2009, the Company had $15,720,320 in current assets, and
$960,256 in current liabilities.
|
|
·
|
As of January 31, 2009, the
Company had no outstanding indebtedness (other than accounts payable,
accrued expenses and income taxes
payable).
|
Period:
|
Total
Number
of
Shares
Purchased
|
Average
Price
Paid
per Share
|
Total
Number of
Shares
Purchased
as
Part
of Publicly
Announced Plans
of
Programs
|
Approximate
Dollar
Value of
Shares
that May
Yet
Be
Purchased
Under
the Plans
or
Programs
|
||||||
November
1, 2008 through November 31, 2008
|
50,000
|
$
|
4.96
|
50,000
|
$
|
0
|
||||
December
1, 2008 through December 31, 2008
|
100,000(1)
|
$
|
4.57
|
50,000
|
$
|
0
|
||||
Total |
150,000
|
100,000
|
(1)
|
In
December of 2008, the Company purchased 50,000 shares of common stock in a
privately negotiated transaction at a price of $4.13 per
share.
|
Exhibit
|
||
Number
|
||
31.1:
|
Certification
of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002.
|
|
31.2:
|
Certification
of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002.
|
|
32.1:
|
Certification
of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
|
|
32.2:
|
Certification
of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
|
|
99.1
|
Press
Release issued March 17,
2009
|
RF
INDUSTRIES, LTD.
|
||
Dated:
March 17, 2009
|
By:
|
/s/
Howard F. Hill
|
Howard
F. Hill, President
|
||
Chief
Executive Officer
|
Dated:
March 17, 2009
|
By:
|
/s/
James Doss
|
James
Doss
|
||
Chief
Financial Officer
|