BK Technologies Corp - Quarter Report: 2013 September (Form 10-Q)

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FORM 10-Q

 

 

 

 

 

 

 

Nevada	59-3486297
State or other jurisdiction of	(I.R.S. Employer
Incorporation or organization	Identification No.)

 

 

 

Large accelerated filer	o	Accelerated filer	o
Non-accelerated filer	þ	Smaller reporting company	o
(Do not check if a smaller reporting company)

 

 

 

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		Three Months Ended								Nine Months Ended
		September 30, 2013				September 30, 2012				September 30, 2013				September 30, 2012
Sales, net		$	7,600			$	8,112			$	20,864			$	21,809
Expenses
Cost of products			4,328				4,084				11,640				11,473
Selling, general and administrative			2,505				2,633				7,580				7,598
Total expenses			6,833				6,717				19,220				19,071
Operating income			767				1,395				1,644				2,738
Other income (expense):
Net interest expense			(0	)			(0	)			(0	)			(3	)
Other income (expense)			0				(3	)			11				(10	)
Total other income (expense)			0				(3	)			11				(13	)
Income before income taxes			767				1,392				1,655				2,725
Income tax expense			(253	)			(508	)			(539	)			(996	)
Net income		$	514			$	884			$	1,116			$	1,729
Net earnings per share-basic:		$	0.04			$	0.07			$	0.08			$	0.13
Net earnings per share-diluted:		$	0.04			$	0.07			$	0.08			$	0.13
Weighted average shares outstanding-basic			13,580,471				13,545,482				13,563,486				13,541,250
Weighted average shares outstanding-diluted			13,648,570				13,549,146				13,619,676				13,543,631

 

 

 

		Nine months Ended
		September 30, 2013				September 30, 2012
Operating activities
Net income		$	1,116			$	1,729
Adjustments to reconcile net income to net cash provided by operating activities:
Allowance for doubtful accounts			-				(5	)
Inventories reserve			108				6
Deferred tax obligation			548				938
Depreciation and amortization			1,119				975
Shared-based compensation expense			36				23
Changes in operating assets and liabilities:
Accounts receivable			(1,721	)			(449	)
Inventories			1,793				(174	)
Prepaid expenses and other current assets			(456	)			(411	)
Other assets			7				(119	)
Accounts payable			(194	)			795
Accrued compensation and related taxes			(611	)			739
Accrued warranty expense			14				(24	)
Note payable			(18	)			35
Deferred revenue			(212	)			55
Accrued other expenses and other current liabilities			34				(87	)
Net cash provided by operating activities			1,563				4,026
Investing activities
Purchases of property, plant and equipment			(208	)			(349	)
Capitalized software			(340	)			(160	)
Net cash used in investing activities			(548	)			(509	)
Financing activities
Proceeds from issuance of common stock			34				22
Cash provided by financing activities			34				22
Net change in cash and cash equivalents			1,049				3,539
Cash and cash equivalents, beginning of period			6,581				2,693
Cash and cash equivalents, end of period		$	7,630			$	6,232
Supplemental disclosure
Cash paid for interest		$	-			$	3
Income tax paid		$	-			$	62
Non-cash financing activity
Cashless exercise of stock options and related conversion of net shares to stockholders’ equity		$	9			$	4

 

 

 

 

 

 

 

 

 

		September 30, 2013				December 31, 2012
Finished goods		$	3,970			$	4,316
Work in process			5,077				6,278
Raw materials			2,397				2,751
		$	11,444			$	13,345

 

 

 

 

 

 

 

 

 

 

 

 

 

 

		Common Stock Shares				Common Stock Amount				Additional Paid-In Capital				Accumulated Deficit				Total
Balance at December 31, 2012			13,545,482			$	8,127			$	24,604			$	(2,547	)		$	30,184
Common stock option exercise and issued			34,989				21				13				−				34
Share-based compensation       expense			−				−				36				−				36
Net income			−				−				−				1,116				1,116
Balance at September 30, 2013			13,580,471			$	8,148			$	24,653			$	(1,431	)		$	31,370

 

 

 

 

 

 

		Three Months Ended								Nine months Ended
		September 30, 2013				September 30, 2012				September 30, 2013				September 30, 2012
Numerator:
Net  income (numerator for basic and diluted earnings per share)		$	514			$	884			$	1,116			$	1,729
Denominator:
Denominator for basic earnings per share weighted average shares			13,580,471				13,545,482				13,563,486				13,541,250
Effect of dilutive securities:
Options			68,099				3,664				56,190				2,381
Denominator
Denominator for diluted earnings per share weighted average shares			13,648,570				13,549,146				13,619,676				13,543,631
Basic income per share		$	0.04			$	0.07			$	0.08			$	0.13
Diluted income per share		$	0.04			$	0.07			$	0.08			$	0.13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	●	changes or advances in technology;
	●	the success of our LMR product line;
	●	competition in the land mobile radio industry;
	●	general economic and business conditions, including federal, state and local government budget deficits and spending limitations;
	●	the availability, terms and deployment of capital;
	●	reliance on contract manufacturers and suppliers;
	●	heavy reliance on sales to agencies of the United States government;
	●	our ability to utilize deferred tax assets;
	●	retention of executive officers and key personnel;
	●	our ability to manage our growth;
	●	government regulation;
	●	our business with manufacturers located in other countries;
	●	our inventory and debt levels;
	●	protection of our intellectual property rights;
	●	fluctuation in our operating results;
	●	acts of war or terrorism;
	●	any infringement claims;
	●	provisions in our charter documents and under Nevada law that may discourage a potential takeover;
	●	maintenance of our NYSE MKT listing; and
	●	the effect on our stock price and ability to raise equity capital of future sales of shares of our common stock.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

		Percentage of Sales Three Months Ended								Percentage of Sales Nine months Ended
		September 30, 2013				September 30, 2012				September30, 2013				September 30, 2012
Sales			100.0	%			100.0	%			100.0	%			100.0	%
Cost of products			(56.9	)			(50.3	)			(55.8	)			(52.6	)
Gross margin			43.1				49.7				44.2				47.4
Selling, general and administrative expenses			(33.0	)			(32.5	)			(36.3	)			(34.9	)
Net interest expense			(0.0	)			(0.0	)			(0.0	)			(0.0	)
Other income (expense )			0.0				(0.0	)			0.0				0.0
Pretax  income			10.1				17.2				7.9				12.5
Income tax expense			(3.3	)			(6.3	)			(2.6	)			(4.6	)
Net income			6.8	%			10.9	%			5.3	%			7.9	%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Period		Total Number of Shares Purchased				Average  Price Paid Per Share				Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs				Maximum Approximate  Dollar Value of  Shares that May Yet Be Purchased Under Publicly Announced Plans or Programs
07/01/13 - 07/31/13			—				—				—				2,500,000
08/01/13 - 08/31/13			—				—				—				2,500,000
09/01/13 - 09/30/13			—				—				—				2,500,000
Total			—			$	—				—			$	2,500,000

 

 

 

Exhibit 3(i)		Articles of Incorporation(1)
Exhibit 3(ii)		Certificate of Amendment to Articles of Incorporation(2)
Exhibit 3(iii)		Amended and Restated Bylaws(3)
Exhibit 31.1		Certification Pursuant to Item 601(b)(31) of Regulation S-K, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
Exhibit 31.2		Certification Pursuant to Item 601(b)(31) of Regulation S-K, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
Exhibit 32.1		Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished pursuant to Item 601(b)(32) of Regulation S-K).
Exhibit 32.2		Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished pursuant to Item 601(b)(32) of Regulation S-K).
Exhibit 101.INS		XBRL Instance Document*
Exhibit 101.SCH		XBRL Taxonomy Extension Schema Document*
Exhibit 101.CAL		XBRL Taxonomy Extension Calculation Linkbase Document*
Exhibit 101.LAB		XBRL Taxonomy Extension Label Linkbase Document*
Exhibit 101.PRE		XBRL Taxonomy Extension Presentation Linkbase Document*
Exhibit 101.DEF		XBRL Taxonomy Definition Linkbase Document*

*	Furnished herewith (not filed)

 

(1)	Incorporated by reference from the Company's Annual Report on Form 10-K for the year ended December 31, 1997.

 

(2)	Incorporated by reference from the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2001.

 

(3)	Incorporated by reference to the Company's Current Report on Form 8-K filed May 29, 2013.

 

 

 

 

 

 

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