WEST MELBOURNE, Florida — March 5, 2014
RELM Wireless Corporation (NYSE MKT:聽RWC) today announced its financial and operating results for the quarter and year ended聽December 31, 2013.聽For the year ended December 31, 2013, sales totaled approximately $27.0 million, compared聽with approximately $27.6 million for 2012. Pretax income for the year ended December 31,聽2013 was approximately $1.7 million, compared with $2.9 million for 2012. Net income for the聽year ended December 31, 2013 totaled approximately $1.1 million, or $0.08 per diluted share,聽compared with $2.1 million, or $0.15 per diluted share, last year.
Gross profit margin for 2013 was 43.5% of sales, versus 47.4% of sales in the previous year.聽Selling, general and administrative expenses declined to approximately $10.1 million (37.4% of聽sales) in 2013, compared with approximately $10.2 million (36.9% of sales) in 2012.聽For the fourth quarter ended December 31, 2013, sales totaled approximately $6.2 million,聽compared with $5.8 million for the fourth quarter of 2012. Pretax income for the fourth quarter聽was approximately $3,000, compared with $156,000 for the same quarter last year. Net income聽for the quarter ended December 31, 2013 was approximately $27,000, or $0.00 per diluted share,聽compared with $336,000 or $0.02 per diluted share for the same quarter last year.
Gross profit margin for the fourth quarter 2013 was 41.0% of sales, compared with 47.3% of聽sales for the fourth quarter 2012. Selling, general and administrative expenses totaled聽approximately $2.5 million (41.0% of sales) for the fourth quarter 2013, compared with聽approximately $2.6 million (44.6% of sales) for the fourth quarter 2012.聽The Company had approximately $25.7 million in working capital as of December 31, 2013, of聽which $10.8 million was comprised of cash and trade receivables. This compares with working聽capital of $23.6 million as of December 31, 2012, of which $8.6 million was comprised of cash聽and trade receivables. As of December 31, 2013 the Company had no borrowings outstanding聽under its revolving credit facility.
RELM President and Chief Executive Officer David Storey commented, 鈥淔or 2013, we recorded聽another profitable year and the fourth quarter represented our seventh consecutive profitable聽quarter. For the year, we also generated positive cash flow, reduced our inventory by over 13%聽and strengthened our working capital position. More importantly, we made some meaningful聽gains with customers and markets that were relatively new for us, including the U.S. Department聽of Defense and U.S. Homeland Security as well as several state and local agencies. Such gains聽were derived from an expanded addressable market made possible by our broad offering of聽products, technology and capabilities. These positive developments not withstanding, total sales聽and financial results declined compared with the previous year as many federal agencies,聽including some of our legacy strongholds, struggled with funding and operating issues.鈥�
Mr. Storey continued, 鈥淟ooking ahead, we are encouraged by some of our early success with聽new customers and market segments. Furthermore, there are signs of improvement in the聽business climate and economy. Also, the approval of a federal budget, we believe, may help聽facilitate land mobile radio procurements by U.S. Government agencies. Our plan is to聽capitalize on these positive factors and our value proposition to drive growth in coming quarters聽and years.鈥�
Conference Call and Webcast
The Company will host a conference call and webcast for investors at 9:00 a.m. Eastern Time,聽Thursday, March 6, 2014. Shareholders and other interested parties may participate in the
conference call by dialing 877-317-6789 (international/local participants dial 412-317-6789) and聽asking to be connected to the 鈥淩ELM Wireless Corporation Conference Call鈥� a few minutes聽before 9:00 a.m. Eastern Time on March 6, 2014. The call will also be webcast at聽http://www.relm.com. Please allow extra time prior to the call to visit the site and download any聽necessary software to listen to the Internet webcast. An online archive of the webcast will be聽available on the Company鈥檚 website for 30 days following the call at http://www.relm.com.聽A replay of the conference call will be available one hour after the completion of the call until聽March 14, 2014, by dialing 877-344-7529 (international/local participants dial 412-317-0088)聽and entering the conference ID# 10039757.
About APCO Project 25 (P25)
APCO Project 25 (P25), which requires interoperability among compliant equipment regardless聽of the manufacturer, was established by the Association of Public-Safety Communications聽Officials and is approved by the U.S. Department of Homeland Security. The shift toward聽interoperability gained momentum as a result of significant communications failures in critical聽emergency situations. RELM was one of the first manufacturers to develop P25-compliant聽technology.
About RELM Wireless Corporation
As an American Manufacturer for more than 65 years, RELM Wireless Corporation has聽produced high-specification two-way communications equipment of unsurpassed reliability and聽value for use by public safety professionals and government agencies, as well as radios for use in聽a wide range of commercial and industrial applications. Advances include a broad new line of聽leading digital two-way radios compliant with APCO Project 25 specifications. RELM鈥檚聽products are manufactured and distributed worldwide under 中国P站 Radio and RELM brand names.
The Company maintains its headquarters in West Melbourne, Florida and can be contacted聽through its web site at www.relm.com or directly at 1-800-821-2900. The Company鈥檚 common聽stock trades on the NYSE MKT market under the symbol 鈥淩WC鈥�.
This press release contains certain forward-looking statements that are made pursuant to the 鈥淪afe Harbor鈥澛爌rovisions of the Private Securities Litigation Reform Act Of 1995. These forward-looking statements concern the聽Company鈥檚 operations, economic performance and financial condition and are based largely on the Company鈥檚聽beliefs and expectations. These statements involve known and unknown risks, uncertainties and other factors that聽may cause the actual results, performance or achievements of the Company, or industry results, to be materially聽different from any future results, performance or achievements expressed or implied by such forward-looking聽statements. Such factors and risks include, among others, the following: changes or advances in technology; the聽success of our LMR product line; competition in the land mobile radio industry; general economic and business聽conditions, including federal, state and local government budget deficits and spending limitations; the availability,聽terms and deployment of capital; reliance on contract manufacturers and suppliers; heavy reliance on sales to聽agencies of the U.S. government; our ability to utilize deferred tax assets; retention of executive officers and key聽personnel; our ability to manage our growth; government regulation; business with manufacturers located in other聽countries; our inventory and debt levels; protection of our intellectual property rights; acts of war or terrorism; any聽infringement claims; provisions in our charter documents and under Nevada law that may discourage a potential聽takeover; maintenance of our NYSE MKT listing; and the effect on our stock price and ability to raise equity capital聽of future sales of shares of our common stock. Certain of these factors and risks, as well as other risks and聽uncertainties, are stated in more detail in the Company鈥檚 Annual Report on Form 10-K for the fiscal year ended聽December 31, 2013 and in the Company鈥檚 subsequent filings with the SEC. These forward-looking statements are聽made as of the date of this press release, and the Company assumes no obligation to update the forward-looking聽statements or to update the reasons why actual results could differ from those projected in the forward-looking
statements.
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