R F Industries Ltd. Files Q2 2024 10-Q

TL;DR

RF Industries Q2 10-Q filed. Check financials.

AI Summary

R F Industries Ltd. filed a 10-Q for the period ending April 30, 2024. The company reported financial results for the second quarter of fiscal year 2024. Specific financial figures and operational details are available within the filing.

Why It Matters

This filing provides investors with an update on R F Industries Ltd.'s financial performance and position, crucial for assessing the company's health and future prospects.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing standard financial disclosures.

Key Numbers

• 20240430 — Fiscal Period End (Reporting period for the 10-Q filing.)
• 20240613 — Filing Date (Date the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• R F INDUSTRIES LTD (company) — Filer
• 20240430 (date) — Period of Report
• 20240613 (date) — Filing Date
• SAN DIEGO (location) — Business Address City
• NV (state) — State of Incorporation

FAQ

Key Financial Figures

• $0.01 — nge on which registered Common Stock, $0.01 par value per share RFIL NASDAQ Glo

Filing Documents

• rfil20240430_10q.htm (10-Q) — 986KB
• ex_683952.htm (EX-31.1) — 8KB
• ex_683953.htm (EX-31.2) — 8KB
• ex_683954.htm (EX-32.1) — 5KB
• ex_683955.htm (EX-32.2) — 5KB
• 0001437749-24-020196.txt ( ) — 5629KB
• rfil-20240430.xsd (EX-101.SCH) — 54KB
• rfil-20240430_def.xml (EX-101.DEF) — 365KB
• rfil-20240430_lab.xml (EX-101.LAB) — 309KB
• rfil-20240430_pre.xml (EX-101.PRE) — 394KB
• rfil-20240430_cal.xml (EX-101.CAL) — 40KB
• rfil20240430_10q_htm.xml (XML) — 907KB

FINANCIAL INFORMATION

Part I. FINANCIAL INFORMATION

: Financial Statements

Item 1: Financial Statements RF INDUSTRIES, LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share amounts) April 30, October 31, 2024 2023 (Unaudited) (Note 1) ASSETS CURRENT ASSETS Cash and cash equivalents $ 1,400 $ 4,897 Trade accounts receivable, net of allowance for credit losses of $ 146 and $ 244 , respectively 10,552 10,277 Inventories 16,379 18,730 Other current assets 1,894 2,136 TOTAL CURRENT ASSETS 30,225 36,040 Property and equipment: Equipment and tooling 4,817 4,796 Furniture and office equipment 5,922 5,631 10,739 10,427 Less accumulated depreciation 5,925 5,503 Total property and equipment, net 4,814 4,924 Operating lease right-of-use assets, net 14,999 15,689 Goodwill 8,085 8,085 Amortizable intangible assets, net 12,751 13,595 Non-amortizable intangible assets 1,174 1,174 Deferred tax assets - 2,494 Other assets 775 277 TOTAL ASSETS $ 72,823 $ 82,278 2

: Financial Statements (continued)

Item 1: Financial Statements (continued) RF INDUSTRIES, LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share amounts) April 30, October 31, 2024 2023 (Unaudited) (Note 1) LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 3,156 $ 3,201 Accrued expenses 4,218 4,572 Line of credit 10,460 1,000 Current portion of Term Loan - 2,424 Current portion of operating lease liabilities 1,424 1,314 TOTAL CURRENT LIABILITIES 19,258 12,511 Operating lease liabilities 18,774 19,284 Deferred tax liabilities 182 - Term Loan, net of debt issuance cost - 10,721 TOTAL LIABILITIES 38,214 42,516 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS ' EQUITY Common stock - authorized 20,000,000 shares of $ 0.01 par value; 10,495,548 and 10,343,223 shares issued and outstanding at April 30, 2024 and October 31, 2023, respectively 105 104 Additional paid-in capital 26,589 26,087 Retained earnings 7,915 13,571 TOTAL STOCKHOLDERS' EQUITY 34,609 39,762 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 72,823 $ 82,278 See Notes to Unaudited Condensed Consolidated Financial Statements. 3

: Financial Statements (continued)

Item 1: Financial Statements (continued) RF INDUSTRIES, LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (In thousands, except share and per share amounts) Three Months Ended April 30, Six Months Ended April 30, 2024 2023 2024 2023 Net sales $ 16,110 $ 22,298 $ 29,568 $ 40,642 Cost of sales 11,286 16,178 21,441 29,435 Gross profit 4,824 6,120 8,127 11,207 Operating expenses: Engineering 637 882 1,405 1,845 Selling and general 4,602 4,749 9,221 10,042 Total operating expenses 5,239 5,631 10,626 11,887 Operating (loss) income ( 415 ) 489 ( 2,499 ) ( 680 ) Other expense ( 230 ) ( 72 ) ( 339 ) ( 225 ) (Loss) income before benefit for income taxes ( 645 ) 417 ( 2,838 ) ( 905 ) Provision (benefit) for income taxes 3,649 ( 164 ) 2,818 ( 324 ) Consolidated net (loss) income $ ( 4,294 ) $ 581 $ ( 5,656 ) $ ( 581 ) (Loss) earnings per share: Basic $ ( 0.41 ) $ 0.06 $ ( 0.54 ) $ ( 0.06 ) Diluted $ ( 0.41 ) $ 0.06 $ ( 0.54 ) $ ( 0.06 ) Weighted average shares outstanding: Basic 10,495,548 10,290,911 10,452,597 10,256,158 Diluted 10,495,548 10,327,271 10,452,597 10,256,158 See Notes to Unaudited Condensed Consolidated Financial Statements. 4

: Financial Statements (continued)

Item 1: Financial Statements (continued) RF INDUSTRIES, LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS ' EQUITY (UNAUDITED) (In thousands, except share amounts) For the Three Months Ended April 30, 2024 Additional Common Stock Paid-in Retained Shares Amount Capital Earnings Total Balance, January 31, 2024 10,495,548 $ 105 $ 26,341 $ 12,209 $ 38,655 Stock-based compensation expense - - 248 - 248 Consolidated net loss - - - (4,294 ) ( 4,294 ) Balance, April 30, 2024 10,495,548 $ 105 $ 26,589 $ 7,915 $ 34,609 For the Six Months Ended April 30, 2024 Additional Common Stock Paid-in Retained Shares Amount Capital Earnings Total Balance, November 1, 2023 10,343,223 $ 104 $ 26,087 $ 13,571 $ 39,762 Stock-based compensation expense - - 503 - 503 Issuance of restricted stock 152,325 1 ( 1 ) - - Consolidated net loss - - - (5,656 ) ( 5,656 ) Balance, April 30, 2024 10,495,548 $ 105 $ 26,589 $ 7,915 $ 34,609 See Notes to Unaudited Condensed Consolidated Financial Statements. 5 RF INDUSTRIES, LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS ' EQUITY (UNAUDITED) (In thousands, except share amounts) For the Three Months Ended April 30, 2023 Additional Common Stock Paid-in Retained Shares Amount Capital Earnings Total Balance, January 31, 2023 10,291,067 $ 103 $ 25,408 $ 15,487 $ 40,998 Stock-based compensation expense - - 229 - 229 Tax withholding related to vesting of restricted stock ( 690 ) - ( 3 ) - ( 3 ) Consolidated net income - - - 581 581 Balance, April 30, 2023 10,290,377 $ 103 $ 25,634 $ 16,068 $ 41,805 For the Six Months ended April 30, 2023 Additional Common Stock Paid-In Retained Shares Amount Capital Earnings Total Balance, November 1, 2022

: Financial Statements (continued)

Item 1: Financial Statements (continued) RF INDUSTRIES, LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (In thousands) Six Months Ended April 30, 2024 2023 OPERATING ACTIVITIES: Consolidated net loss $ ( 5,656 ) $ ( 581 ) Adjustments to reconcile consolidated net loss to net cash provided by operating activities: Bad debt expense ( 8 ) 80 Depreciation and amortization 1,266 1,165 Stock-based compensation expense 503 441 Amortization of debt issuance cost 25 4 Tax payments related to shares cancelled for vested restricted stock awards - ( 10 ) Deferred income taxes 2,675 ( 706 ) Extinguishment of debt issuance cost 14 - Changes in operating assets and liabilities: Trade accounts receivable ( 267 ) 240 Inventories 2,351 668 Other current assets 241 4,026 Right-of-use assets 291 346 Accounts payable ( 45 ) 454 Accrued expenses ( 353 ) ( 3,441 ) Income taxes payable - ( 462 ) Net cash provided by operating activities 1,037 2,224 INVESTING ACTIVITIES: Capital expenditures ( 312 ) ( 1,303 ) Net cash used in investing activities ( 312 ) ( 1,303 ) FINANCING ACTIVITIES: Proceeds from exercise of stock options - 85 Debt issuance cost ( 520 ) - Line of credit 9,460 - Term Loan payments ( 13,162 ) ( 1,212 ) Net cash used in financing activities ( 4,222 ) ( 1,127 ) Net decrease in cash and cash equivalents ( 3,497 ) ( 206 ) Cash and cash equivalents, beginning of period 4,897 4,532 Cash and cash equivalents, end of period $ 1,400 $ 4,326 Supplemental cash flow information – income taxes paid $ 55 $ - See Notes to Unaudited Condensed Consolidated Financial Statements. 7 RF INDUSTRIES, LTD. AND SUBSIDIARIES NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Note 1 – Unaudited interim condensed consolidated financial statements Our accompanying unaud

View Full Filing

View this 10-Q filing on SEC EDGAR