TESSCO TECHNOLOGIES INC - 10-Q Quarterly Report

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

ý		QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 26, 2004

		OR

o		TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

	Commission file number 0-24746

	*TESSCO Technologies Incorporated*
	(Exact name of registrant as specified in charter)

	Delaware		52-0729657
	(State or other jurisdiction of incorporation or organization)		(IRS Employer Identification No.)

	11126 McCormick Road, Hunt Valley, Maryland		21031
	(Address of principal executive offices)		(Zip Code)

	Registrant’s telephone number, including area code:		(410) 229-1000

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to filing requirements for the past 90 days.

Yes ý No o

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Act)

Yes o No ý

The number of shares of the registrant’s Common Stock, $ .01 par value per share, outstanding as of February 4, 2005 was 4,205,904.

Part I – Financial Information

Item 1 – Financial Statements

TESSCO Technologies Incorporated

Consolidated Balance Sheets

	December 26, 2004			March 28, 2004
	(unaudited)			(audited)
ASSETS

CURRENT ASSETS:
Cash and cash equivalents	$	3,540,000		$	6,765,600
Trade accounts receivable, net	53,836,700			47,124,600
Product inventory	54,804,400			40,987,100
Deferred tax asset	2,079,000			2,079,000
Prepaid expenses and other current assets	2,402,300			2,494,300
Total current assets	116,662,400			99,450,600

PROPERTY AND EQUIPMENT, net	26,266,200			25,944,700
GOODWILL, net	2,452,200			2,452,200
OTHER LONG-TERM ASSETS	1,295,400			1,281,200
Total assets	$	146,676,200		$	129,128,700

LIABILITIES AND SHAREHOLDERS’ EQUITY

CURRENT LIABILITIES:
Trade accounts payable	$	70,134,400		$	55,250,000
Accrued expenses and other current liabilities	6,649,000			6,588,500
Revolving credit facility	—			—
Current portion of long-term debt	361,500			282,000
Total current liabilities	77,144,900			62,120,500

DEFERRED TAX LIABILITY	3,419,100			3,419,100
LONG-TERM DEBT, net of current portion	5,091,900			5,354,700
OTHER LONG-TERM LIABILITIES	1,679,900			1,900,900
Total liabilities	87,335,800			72,795,200

COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS’ EQUITY:
Preferred stock	—			—
Common stock	48,800			48,500
Additional paid-in capital	23,359,100			22,250,200
Treasury stock, at cost	(7,403,200		)	(4,547,000		)
Retained earnings	43,335,700			38,581,800
Total shareholders’ equity	59,340,400			56,333,500
Total liabilities and shareholders’ equity	$	146,676,200		$	129,128,700

See accompanying notes.

Part I	Financial Information

	Item 1	Financial Statements

		Consolidated Balance Sheets as of December 26, 2004 and March 28, 2004

		Consolidated Statements of Income for the periods ended December 26, 2004 and December 28, 2003

		Consolidated Statements of Cash Flows for the periods ended December 26, 2004 and December 28, 2003

		Notes to Consolidated Financial Statements

	Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations

	Item 3	Quantitative and Qualitative Disclosures about Market Risk

	Item 4	Controls and Procedures

Part II	Other Information

	Item 1	Legal Proceedings

	Item 2	Unregistered Sales of Equity Securities and Use of Proceeds

	Item 3	Defaults upon Senior Securities

	Item 4	Submission of Matters to a Vote of Security Holders

	Item 5	Other Information

	Item 6	Exhibits

	Signature