R F Industries Ltd. Files Q3 2024 10-Q Report

TL;DR

RF Industries Q3 2024 10-Q is in. Check financials.

AI Summary

R F Industries Ltd. reported its Q3 2024 results for the period ending July 31, 2024. The company's financial performance for the third quarter and the nine months ended July 31, 2024, is detailed in this 10-Q filing. Specific financial figures and operational highlights are provided within the document.

Why It Matters

This filing provides investors with the latest financial performance data for R F Industries Ltd., crucial for understanding the company's current health and future prospects.

Risk Assessment

Risk Level: low — This is a standard quarterly financial filing with no immediate red flags or significant new risks highlighted.

Key Numbers

• 333,333 — Shares Outstanding (This is a key metric for understanding the company's equity structure.)
• 666,667 — Shares Authorized (Indicates the total number of shares the company can issue.)

Key Players & Entities

• R F INDUSTRIES LTD (company) — Filer
• 20240731 (date) — Conformed Period of Report
• 20240916 (date) — Filed as of Date
• 16868 VIA DEL CAMPO COURT, SUITE 200 (address) — Business and Mail Address
• SAN DIEGO, CA (location) — Business and Mail Address City/State
• 858-549-6340 (phone_number) — Business Phone

FAQ

Key Financial Figures

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

Filing Documents

• rfil20240731_10q.htm (10-Q) — 1016KB
• ex_723740.htm (EX-10.1) — 61KB
• ex_722291.htm (EX-31.1) — 8KB
• ex_722292.htm (EX-31.2) — 8KB
• ex_722293.htm (EX-32.1) — 5KB
• ex_722294.htm (EX-32.2) — 5KB
• 0001437749-24-029281.txt ( ) — 5725KB
• rfil-20240731.xsd (EX-101.SCH) — 53KB
• rfil-20240731_def.xml (EX-101.DEF) — 360KB
• rfil-20240731_lab.xml (EX-101.LAB) — 308KB
• rfil-20240731_pre.xml (EX-101.PRE) — 390KB
• rfil-20240731_cal.xml (EX-101.CAL) — 40KB
• rfil20240731_10q_htm.xml (XML) — 924KB

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) July 31, October 31, 2024 2023 (Unaudited) (Note 1) ASSETS CURRENT ASSETS Cash and cash equivalents $ 1,764 $ 4,897 Trade accounts receivable, net of allowance for credit losses of $ 155 and $ 244 , respectively 10,676 10,277 Inventories 15,049 18,730 Other current assets 1,896 2,136 TOTAL CURRENT ASSETS 29,385 36,040 Property and equipment: Equipment and tooling 4,782 4,796 Furniture and office equipment 6,170 5,631 10,952 10,427 Less accumulated depreciation 6,102 5,503 Total property and equipment, net 4,850 4,924 Operating lease right-of-use assets, net 15,304 15,689 Goodwill 8,085 8,085 Amortizable intangible assets, net 12,329 13,595 Non-amortizable intangible assets 1,174 1,174 Deferred tax assets - 2,494 Other assets 733 277 TOTAL ASSETS $ 71,860 $ 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) July 31, October 31, 2024 2023 (Unaudited) (Note 1) LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 3,148 $ 3,201 Accrued expenses 5,046 4,572 Line of credit 8,704 1,000 Current portion of Term Loan - 2,424 Current portion of operating lease liabilities 1,481 1,314 TOTAL CURRENT LIABILITIES 18,379 12,511 Operating lease liabilities 19,163 19,284 Deferred tax liabilities 182 - Term Loan, net of debt issuance cost - 10,721 TOTAL LIABILITIES 37,724 42,516 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS ' EQUITY Common stock - authorized 20,000,000 shares of $ 0.01 par value; 10,493,485 and 10,343,223 shares issued and outstanding at July 31, 2024 and October 31, 2023, respectively 105 104 Additional paid-in capital 26,821 26,087 Retained earnings 7,210 13,571 TOTAL STOCKHOLDERS' EQUITY 34,136 39,762 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 71,860 $ 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 July 31, Nine Months Ended July 31, 2024 2023 2024 2023 Net sales $ 16,836 $ 15,652 $ 46,404 $ 56,294 Cost of sales 11,875 11,828 33,316 41,263 Gross profit 4,961 3,824 13,088 15,031 Operating expenses: Engineering 653 690 2,059 2,535 Selling and general 4,727 5,144 13,948 15,186 Total operating expenses 5,380 5,834 16,007 17,721 Operating loss ( 419 ) ( 2,010 ) ( 2,919 ) ( 2,690 ) Other expense ( 338 ) ( 117 ) ( 676 ) ( 342 ) Loss before benefit for income taxes ( 757 ) ( 2,127 ) ( 3,595 ) ( 3,032 ) Provision (benefit) for income taxes ( 52 ) ( 482 ) 2,766 ( 806 ) Consolidated net loss $ ( 705 ) $ ( 1,645 ) $ ( 6,361 ) $ ( 2,226 ) Loss per share: Basic $ ( 0.07 ) $ ( 0.16 ) $ ( 0.61 ) $ ( 0.22 ) Diluted $ ( 0.07 ) $ ( 0.16 ) $ ( 0.61 ) $ ( 0.22 ) Weighted average shares outstanding: Basic 10,495,082 10,290,265 10,466,862 10,267,652 Diluted 10,495,082 10,290,265 10,466,862 10,267,652 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 July 31, 2024 Additional Common Stock Paid-in Retained Shares Amount Capital Earnings Total Balance, May 1, 2024 10,495,548 $ 105 $ 26,589 $ 7,915 $ 34,609 Stock-based compensation expense - - 241 - 241 Tax withholding related to vesting of restricted stock ( 2,063 ) - ( 9 ) - ( 9 ) Consolidated net loss - - - ( 705 ) ( 705 ) Balance, July 31, 2024 10,493,485 $ 105 $ 26,821 $ 7,210 $ 34,136 For the Nine Months Ended July 31, 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 - - 744 - 744 Issuance of restricted stock 152,325 1 ( 1 ) - - Tax withholding related to vesting of restricted stock ( 2,063 ) - ( 9 ) - ( 9 ) Consolidated net loss - - - ( 6,361 ) ( 6,361 ) Balance, July 31, 2024 10,493,485 $ 105 $ 26,821 $ 7,210 $ 34,136 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 July 31, 2023 Additional Common Stock Paid-in Retained Shares Amount Capital Earnings Total Balance, May 1, 2023 10,290,377 $ 103 $ 25,634 $ 16,068 $ 41,805 Stock-based compensation expense - - 246 - 246 Tax withholding related to vesting of restricted stock ( 486 ) - ( 2 ) - ( 2 ) Consolidated net loss - - - ( 1,645 ) ( 1,645 ) Balance, July 31, 2023 10,289,891 $ 103 $ 25,878 $

: Financial Statements (continued)

Item 1: Financial Statements (continued) RF INDUSTRIES, LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (In thousands) Nine Months Ended July 31, 2024 2023 OPERATING ACTIVITIES: Consolidated net loss $ ( 6,361 ) $ ( 2,226 ) Adjustments to reconcile consolidated net loss to net cash provided by operating activities: Allowance for credit losses 2 82 Depreciation and amortization 1,904 1,795 Stock-based compensation expense 744 687 Amortization of debt issuance cost 68 7 Tax payments related to shares cancelled for vested restricted stock awards ( 9 ) ( 12 ) Deferred income taxes 2,674 ( 918 ) Extinguishment of debt issuance cost 14 - Changes in operating assets and liabilities: Trade accounts receivable ( 401 ) 5,438 Inventories 3,681 850 Other current assets 240 4,570 Right-of-use assets 431 300 Other long-term assets ( 1 ) 18 Accounts payable ( 52 ) ( 2,950 ) Accrued expenses 475 ( 4,307 ) Income taxes payable - ( 760 ) Net cash provided by operating activities 3,409 2,574 INVESTING ACTIVITIES: Capital expenditures ( 564 ) ( 2,311 ) Net cash used in investing activities ( 564 ) ( 2,311 ) FINANCING ACTIVITIES: Proceeds from exercise of stock options - 86 Debt issuance cost ( 520 ) - Line of credit 7,704 1,000 Term Loan payments ( 13,162 ) ( 1,818 ) Net cash used in financing activities ( 5,978 ) ( 732 ) Net decrease in cash and cash equivalents ( 3,133 ) ( 469 ) Cash and cash equivalents, beginning of period 4,897 4,532 Cash and cash equivalents, end of period $ 1,764 $ 4,063 Supplemental cash flow information – income taxes paid $ 64 $ 19 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

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