Year-End Backlog Reaches $20.3 Million Driven by TSA Awards
WEST MELBOURNE, Florida — March 2, 2016 — RELM Wireless Corporation (NYSE MKT: RWC) today announced financial and operating results for the quarter and year ended December 31, 2015.
For the year ended December 31, 2015, sales totaled approximately $29.7 million, compared with approximately $31.0 million for 2014. Net income for the year ended December 31, 2015 totaled approximately $1.0 million, or $0.08 per diluted share, compared with $1.6 million, or $0.12 per diluted share, for the prior year.
Gross profit margin for 2015 was 41.3% of sales, versus 42.6% of sales in the previous year. Selling, general and administrative expenses totaled approximately $10.9 million (36.5% of sales) in 2015, compared with approximately $10.7 million (34.4% of sales) in 2014.
For the fourth quarter ended December 31, 2015, sales increased 28.2% to approximately $7.0 million, compared with $5.4 million for the fourth quarter of 2014. Net income for the quarter ended December 31, 2015 was approximately $213,000, or $0.02 per diluted share, compared with a net loss of approximately ($180,000) or ($0.01) per diluted share for the same quarter in 2014.
Gross profit margin for the fourth quarter 2015 was 39.3% of sales, compared with 43.8% of sales for the fourth quarter 2014. Selling, general and administrative expenses totaled approximately $2.4 million (35.2% of sales) for the fourth quarter 2015, compared with approximately $2.5 million (46.5% of sales) for the fourth quarter 2014.
The Company had approximately $23.9 million in working capital as of December 31, 2015, of which $8.8 million was comprised of cash and trade receivables. This compares with working capital of $25.1 million as of December 31, 2014, of which $14.6 million was comprised of cash and trade receivables. As of December 31, 2015 the Company had no borrowings outstanding under its revolving credit facility.
RELM President and Chief Executive Officer David Storey commented, “Through most of the first nine months we experienced general softness in the federal, state and local government markets, and in our legacy strongholds in the wildland firefighting agencies. September ended, however, with an announced landmark award totaling $26.2 million from the U.S. Department of Homeland Security Transportation Security Administration. This award did not impact sales in 2015 as the deployments at over 400 airports were scheduled. Shipments commenced during the first quarter of 2016, and we anticipate fulfilling the firm delivery orders totaling $15.5 million during the first three quarters of 2016. The precise impact to sales revenue in any particular quarter is not known with certainty. Implementation teams from RELM and TSA are collaborating to make this program an unqualified success.”
Mr. Storey continued, “Meanwhile, in the fourth quarter we experienced some sales improvements driven in part by state and international opportunities. We also announced several orders in the first quarter of 2016. Looking ahead, we believe the pipeline of sales prospects is promising. With that in mind, we are continuing to invest in our sales and engineering team, adding resources and talent to execute our plans for some exciting new products and technological capabilities, and to better execute our sales growth objectives.”
Conference Call and Webcast
The Company will host a conference call and webcast for investors at 9:00 a.m. Eastern Time, Thursday, March 3, 2016. Shareholders and other interested parties may participate in the conference call by dialing 877-407-8031 (international/local participants dial 201-689-8031) and asking to be connected to the “RELM Wireless Corporation Conference Call” a few minutes before 9:00 a.m. Eastern Time on March 3, 2016. The call will also be webcast at http://www.relm.com. Please allow extra time prior to the call to visit the site and download any necessary software to listen to the Internet webcast. An online archive of the webcast will be available on the Company’s website for 30 days following the call at http://www.relm.com.
A replay of the conference call will be available one hour after the completion of the call until March 13, 2016, by dialing 877-660-6853 (international/local participants dial 201-612-7415) and entering the conference ID# 13628716.