Highway Holdings Reports Fiscal 2018 First Quarter Results
July 25 2017 - 8:00AM
Highway Holdings Limited (Nasdaq:HIHO) today reported results for
its fiscal 2018 first quarter ended June 30, 2017.Net income for
the fiscal 2018 first quarter increased 31.5 percent to $217,000,
or $0.06 per diluted share, from $165,000, or $0.04 per diluted
share, last year. Net sales for the same period were $5.3
million compared with $5.2 million a year earlier.
“Results for the fiscal first quarter indicate the
company is nearing the end effect of its multi-year strategy to
eliminate lower margin business. We are encouraged by
business trends indicating the willingness of customers to accept
realistic price increases to support the quality and reliability of
our manufacturing services,” said Roland Kohl, chairman, president
and chief executive officer. Gross profit for the 2018 fiscal
first quarter was $1.38 million compared with $1.29 million in the
same period a year ago, with gross profit as a percentage of sales
increasing to 26.0 percent from 24.6 percent a year ago.
Selling, general and administrative expense for the 2018 fiscal
first quarter increased -- primarily due to costs associated with
supporting and strengthening the company’s engineering and
marketing efforts and its emerging Myanmar operation. The company’s
currency exchange loss decreased to $4,000 in the quarter from
$17,000 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 $10.1 million -- exceeding the combined
short- and long-term liabilities by $3.8 million. At June 30,
2017, the company had working capital of $10.5 million. Total
shareholders’ equity at June 30, 2017 was $11.5 million compared
with $11.3 million as of March 31, 2017. The company’s current
ratio at June 30, 2017 was 2.6:1.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
SUBSIDIARIES |
Consolidated Statement of Income |
(Dollars in thousands, except per share data) |
(Unaudited) |
|
|
Quarter Ended |
|
June 30 |
|
|
2017 |
|
|
|
2016 |
|
Net sales |
$ |
5,309 |
|
|
$ |
5,225 |
|
Cost of sales |
|
3,928 |
|
|
|
3,940 |
|
Gross profit |
|
1,381 |
|
|
|
1,285 |
|
Selling, general and
administrative expenses |
|
1,137 |
|
|
|
1,054 |
|
Operating income |
|
244 |
|
|
|
231 |
|
|
|
|
|
Non-operating income
(expense): |
|
|
|
|
|
|
|
Exchange
gain (loss), net |
|
(4 |
) |
|
|
(17 |
) |
Interest
incomeGain/(loss) on disposal of asset |
|
346 |
|
|
|
|
1- |
|
Other
income (expense) |
|
0 |
|
|
|
0 |
|
Total
non-operating income (expenses) |
|
45 |
|
|
|
(16 |
) |
|
|
|
|
Net income before
income tax and non-controlling interests |
|
289 |
|
|
|
215 |
|
Income taxes |
|
(65 |
) |
|
|
(50 |
) |
Net income before
non-controlling interests |
|
224 |
|
|
|
165 |
|
|
|
|
|
Less: net gain/(loss)
attributable to non-controlling interests |
|
7 |
|
|
|
0 |
|
|
|
|
|
Net income attributable
to Highway Holdings Limited’s |
$ |
217 |
|
|
$ |
165 |
|
Shareholders |
|
|
|
|
|
|
|
Net income per share –
basic and diluted |
$ |
0.06 |
|
|
$ |
0.04 |
|
|
|
|
|
Weighted average number
of shares outstanding: |
|
|
|
Basic |
|
3,802 |
|
|
|
3,802 |
|
Diluted |
|
3,802 |
|
|
|
3,802 |
|
|
|
|
|
HIGHWAY HOLDINGS LIMITED AND
SUBSIDIARIES |
Consolidated Balance Sheet |
(In thousands, except per share data) |
|
|
June 30 |
March 31 |
|
|
2017 |
|
|
2017 |
|
Current assets: |
|
|
Cash and
cash equivalents |
$ |
10,108 |
|
$ |
10,028 |
|
Accounts
receivable, net of doubtful accounts |
|
3,383 |
|
|
3,403 |
|
Inventories |
|
2,508 |
|
|
2,265 |
|
Prepaid
expenses and other current assets |
|
803 |
|
|
714 |
|
Total
current assets |
|
16,802 |
|
|
16,410 |
|
|
|
|
Property, plant and
equipment, net |
|
909 |
|
|
954 |
|
Goodwill |
|
77 |
|
|
77 |
|
Long-term deposits |
|
111 |
|
|
111 |
|
Total assets |
|
17,899 |
|
|
17,552 |
|
|
|
|
Current
liabilities: |
|
|
Accounts
payable |
$ |
1,713 |
|
$ |
2,391 |
|
Accrued
expenses and other liabilities |
|
4,066 |
|
|
3,053 |
|
Income
tax payable |
|
352 |
|
|
328 |
|
Dividend
payable |
|
189 |
|
|
438 |
|
Total
current liabilities |
|
6,320 |
|
|
6,210 |
|
|
|
|
Deferred income
taxes |
|
32 |
|
|
32 |
|
Total
liabilities |
|
6,352 |
|
|
6,242 |
|
|
|
|
Shareholders'
equity: |
|
|
Common
shares, $0.01 par value |
|
38 |
|
|
38 |
|
Additional paid-in capital |
|
11,370 |
|
|
11,370 |
|
Retained
earnings |
|
231 |
|
|
13 |
|
Accumulated other comprehensive income/(loss) |
|
(127 |
) |
|
(136 |
) |
Treasury
shares, at cost – 5,049 shares as of June 30, 2017; and on March
31, 2017 |
|
(14 |
) |
|
(14 |
) |
Non-controlling
interest |
|
49 |
|
|
39 |
|
Total
shareholders' equity |
|
11,547 |
|
|
11,310 |
|
|
|
|
Total liabilities and
shareholders' equity |
$ |
17,899 |
|
$ |
17,552 |
|
CONTACT: Gary S. Maier
Maier & Company, Inc.
(310) 471-1288
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