Highway Holdings Reports Fiscal 2017 First Quarter Results
August 15 2016 - 8:00AM
Highway Holdings Limited (Nasdaq:HIHO) today reported results for
its fiscal 2017 first quarter ended June 30, 2016.
Net income for the fiscal 2017 first quarter was $165,000, or
$0.04 per diluted share, compared with $302,000, or $0.08 per
diluted share, last year. Net sales were $5.2 million compared with
$5.9 million a year earlier.
“Results for the fiscal first quarter appear to reflect the
impact of customer order patterns due to summer schedules and plant
holiday closures. While it is possible that customer inventory
adjustments during the quarter were due to price increases related
to the inflationary environment in China, we do not believe the
sales decline is a long-term trend. We are focused on year-over
year growth, despite quarterly factors and operational
interruptions that can impact short-term performance,” said Roland
Kohl, chairman, president and chief executive officer.
He noted that the company is preparing to relocate some of its
current metal stamping operations into a newly built factory in
Longhua, Shenzhen. He also noted the company plans to expand in
Yangon, Myanmar to accommodate increased space requirements for
equipment to be utilized for component manufacturing that will be
added to its existing assembly production at this emerging
operation. “Upon completion, these additions will improve
efficiency and enhance our value-proposition, especially in
Myanmar,” Kohl said.
Gross profit for the 2017 fiscal first quarter was $1.29 million
compared with $1.44 million in the same period a year ago, with
gross profit as a percentage of sales increasing to 24.6 percent
from 24.4 percent a year ago.
Selling, general and administrative expense for the 2017 fiscal
first quarter decreased slightly compared with the fiscal first
quarter last year, despite wage inflation in China and costs
associated with the company’s ongoing investment in its operation
in Myanmar. The company’s currency exchange loss decreased to
$17,000 in the quarter from $34,000 in the same period last year
due to a weakening RMB.
Kohl highlighted the company’s solid financial position, with
cash and cash equivalents of $9.0 million -- exceeding the combined
short- and long-term liabilities by $3.9 million. At June 30, 2016,
the company had working capital of $10.9 million.
Total shareholders’ equity at June 30, 2016 was $12.1 million
compared with $11.9 million as of March 31, 2016. The company’s
current ratio at June 30, 2016 was 3.2:1.
About Highway Holdings
Highway Holdings produces a wide variety of high-quality
products for blue chip original equipment manufacturers -- from
simple parts and components to sub-assemblies and finished
products. Highway Holdings’ administrative offices are located in
Hong Kong and its manufacturing facilities are located in Shenzhen
in the People's Republic of China and Myanmar.
Except for the historical information contained herein, the
matters discussed in this press release are forward-looking
statements which involve risks and uncertainties, including but not
limited to economic, competitive, governmental, political and
technological factors affecting the company's revenues, operations,
markets, products and prices, and other factors discussed in the
company’s various filings with the Securities and Exchange
Commission, including without limitation, the company’s annual
reports on Form 20-F.
(Financial Tables Follow)
HIGHWAY HOLDINGS LIMITED AND
SUBSIDIARIESConsolidated Statement of Income(Dollars in
thousands, except per share data)(Unaudited)
|
Quarter Ended |
|
June 30 |
|
|
2016 |
|
|
|
2015 |
|
Net sales |
$ |
5,225 |
|
|
$ |
5,899 |
|
Cost of sales |
|
3,940 |
|
|
|
4,457 |
|
Gross profit |
|
1,285 |
|
|
|
1,442 |
|
Selling, general and
administrative expenses |
|
1,054 |
|
|
|
1,090 |
|
Operating income |
|
231 |
|
|
|
352 |
|
|
|
|
|
Non-operating income
(expense): |
|
|
|
Interest expense |
|
- |
|
|
|
- |
|
Exchange gain (loss), net |
|
(17 |
) |
|
|
(34 |
) |
Interest income |
|
1 |
|
|
|
4 |
|
Other income (expense) |
|
0 |
|
|
|
1 |
|
Total non-operating income
(expenses) |
|
(16 |
) |
|
|
(29 |
) |
|
|
|
|
Net income before
income tax and non-controlling interests |
|
215 |
|
|
|
323 |
|
Income taxes |
|
(50 |
) |
|
|
(17 |
) |
Net income |
|
165 |
|
|
|
306 |
|
|
|
|
|
Net profit attributable
to non-controlling interests |
|
(0 |
) |
|
|
(4 |
) |
|
|
|
|
Net income attributable
to Highway Holdings Limited’s Shareholders |
$ |
165 |
|
|
$ |
302 |
|
|
|
|
|
|
|
|
|
Net income per share –
basic and diluted |
$ |
0.04 |
|
|
$ |
0.08 |
|
|
|
|
|
Weighted average number
of shares outstanding: |
|
|
|
Basic |
|
3,802 |
|
|
|
3,787 |
|
Diluted |
|
3,802 |
|
|
|
3,787 |
|
|
|
|
|
HIGHWAY HOLDINGS LIMITED AND
SUBSIDIARIESConsolidated Balance Sheet(In thousands,
except per share data)
|
June 30 |
March 31 |
|
|
2016 |
|
|
2016 |
|
Current assets: |
|
|
Cash and cash equivalents |
$ |
9,027 |
|
$ |
9,140 |
|
Accounts receivable, net of
doubtful accounts |
|
4,202 |
|
|
4,321 |
|
Inventories |
|
1,800 |
|
|
1,425 |
|
Prepaid expenses and other current
assets |
|
874 |
|
|
844 |
|
Total current assets |
|
15,903 |
|
|
15,730 |
|
|
|
|
Property, plant and
equipment, net |
|
1,060 |
|
|
1,121 |
|
Goodwill |
|
77 |
|
|
77 |
|
Long-term deposits |
|
111 |
|
|
111 |
|
Investments in equity
method investees |
|
- |
|
|
- |
|
Total assets |
|
17,151 |
|
|
17,039 |
|
|
|
|
Current
liabilities: |
|
|
Accounts payable |
$ |
1,767 |
|
$ |
1,307 |
|
Accrued expenses and other
liabilities |
|
2,659 |
|
|
2,789 |
|
Income tax payable |
|
465 |
|
|
440 |
|
Dividend payable |
|
123 |
|
|
537 |
|
Total current liabilities |
|
5,014 |
|
|
5,073 |
|
|
|
|
Deferred income
taxes |
|
32 |
|
|
32 |
|
Total liabilities |
|
5,046 |
|
|
5,105 |
|
|
|
|
Shareholders'
equity: |
|
|
Common shares, $0.01 par value |
|
38 |
|
|
38 |
|
Additional paid-in capital |
|
11,370 |
|
|
11,370 |
|
Retained earnings |
|
677 |
|
|
512 |
|
Accumulated other comprehensive
income |
|
(28 |
) |
|
(34 |
) |
Treasury shares, at cost – 5,049
shares as of June 30, 2016; and on March 31, 2016 |
|
(14 |
) |
|
(14 |
) |
Non-controlling interest |
|
62 |
|
|
62 |
|
Total shareholders' equity |
|
12,105 |
|
|
11,934 |
|
|
|
|
Total liabilities and
shareholders' equity |
$ |
17,151 |
|
$ |
17,039 |
|
|
|
|
|
|
|
|
CONTACT:
Gary S. Maier
Maier & Company, Inc.
(310) 471-1288
Highway (NASDAQ:HIHO)
Historical Stock Chart
From Mar 2024 to Apr 2024
Highway (NASDAQ:HIHO)
Historical Stock Chart
From Apr 2023 to Apr 2024