Fiscal 2017 Net Income Increased 69% to $0.36
Per Diluted Share Versus $0.22 Per Diluted Share For Fiscal
2016
Trio-Tech International (NYSE MKT: TRT) today announced
financial results for the fourth quarter and fiscal year ended June
30, 2017:
- Fourth quarter of fiscal 2017 net
income increased 96.1% to $0.09 per diluted share, on a 20.7%
increase in revenue compared to the fourth quarter of fiscal
2016.
- Fiscal 2017 net income increased 68.9%
to $0.36 per diluted share, on an 11.9% increase in revenue
compared to fiscal 2016.
CEO Comments
"Trio-Tech delivered a strong fourth quarter and a strong year.
Fourth quarter revenue rose to $10,638,000, a 20.7% improvement
over fiscal 2016 fourth quarter revenue of $8,815,000. Fourth
quarter net income increased to $353,000, or $0.09 per diluted
share, nearly double net income for the fourth quarter of fiscal
2016 of $180,000, or $0.05 per share.
"For fiscal 2017 as a whole, net income increased 68.9% to
$1,316,000, or $0.36 per diluted share, on an 11.9% gain in revenue
to $38,538,000. This compares to net income of $779,000, or $0.22
per share, on revenue of $34,454,000 for fiscal 2016.
"Cash provided by operations was $3,953,000 for fiscal 2017
compared to cash provided by operations of $1,014,000 for fiscal
2016. With our solid cash generation and net income, cash and
equivalents grew to $4,772,000, or $1.35 per outstanding share, at
June 30, 2017 compared to cash and equivalents of $3,807,000, or
$1.08 per outstanding share, at June 30, 2016.
"Each of our key business segments - semiconductor test
equipment manufacturing, semiconductor testing services, and
semiconductor manufacturing equipment distribution - posted higher
revenue in fiscal 2017 than in fiscal 2016. Also encouraging is
that backlog at the end of fiscal 2017 increased to $7,546,000
versus backlog of $6,304,000 at the end of fiscal 2016, reflecting
higher backlog in each business segment.
"Fiscal 2017 marks the fourth consecutive year of higher net
income for Trio-Tech, a trend we are working hard to extend in
fiscal 2018. The performance of our core businesses these past few
years has established a solid foundation on which to build. We
never lose sight of the crucial roles that product and service
quality, new product development, and outstanding customer service
have played in our success. At the same time, we seek to build on
the base of business we have developed by applying our technologies
and global manufacturing and service expertise," said S.W. Yong,
Trio-Tech's CEO.
Fiscal 2017 Fourth Quarter Results
For the fourth quarter ended June 30, 2017, revenue increased
20.7% to $10,638,000 compared to $8,815,000 for the same quarter of
fiscal 2016. Testing services revenue increased 5.0% to $4,382,000
compared to $4,174,000 for the fourth quarter of fiscal 2016, the
result of increased testing volume in the Company’s Asian
facilities. Distribution revenue increased 120.4% to $2,151,000
compared to $976,000 in the same quarter last year, primarily
reflecting increased demand for products in Trio-Tech's Singapore
operation. Higher demand in Singapore also contributed to a 12.2%
increase in Manufacturing revenue to $4,068,000 compared to
$3,626,000 in the same quarter a year earlier.
Fiscal 2017 fourth quarter operating expenses increased
$180,000, or 9.8%, to $2,014,000 from $1,834,000, but declined to
18.9% of revenue, compared to 20.8% of revenue, last year.
Fourth quarter fiscal 2017 operating income was $349,000
compared to $510,000 in the same quarter last year.
Net income attributable to Trio-Tech International common
shareholders for the fourth quarter of fiscal 2017 increased 96.1%
to $353,000, or $0.09 per diluted share, compared to $180,000, or
$0.05 per diluted share, for the fourth quarter last year. Fiscal
2017 fourth quarter net income benefited from a $103,000 increase
in other income, compared to a loss of $136,000 in the same quarter
last year.
Fiscal 2017 Results
For the twelve months ended June 30, 2017, revenue increased
11.9% to $38,538,000 compared to revenue of $34,454,000 for fiscal
2016. Testing services revenue increased 8.5% to $16,586,000 for
the year, compared to $15,280,000 for fiscal 2016. Distribution
revenue increased 43.4% to $6,511,000 compared to $4,542,000 in
fiscal 2016. Manufacturing revenue increased 5.4% to $15,289,000
compared to $14,510,000 in fiscal 2016.
Fiscal 2017 operating expenses increased $664,000, or 9.1% to
$7,973,000 from $7,309,000 in fiscal 2016, but declined, as percent
of revenue, to 20.7% from 21.2% in fiscal 2016.
Income from operations increased 2.0% to $1,489,000 compared to
$1,460,000 in fiscal 2016.
Net income attributable to Trio-Tech International common
shareholders for fiscal 2017 increased 68.9% to $1,316,000, or
$0.36 per diluted share, compared to $779,000, or $0.22 per diluted
share, in the same period last year. Fiscal 2017 net income also
benefited from a gain in other income of $312,000, compared to a
loss of $158,000 in fiscal 2016. The improvement in other income is
primarily due to a foreign exchange gain of $96,000 compared to a
foreign exchange loss of $371,000 in fiscal 2016.
Balance Sheet Highlights
Shareholders' equity at June 30, 2017 was $21,527,000, or $6.11
per outstanding share, compared to $20,871,000, or $5.94 per
outstanding share, at June 30, 2016. There were 3,523,055 and
3,513,055 common shares outstanding at June 30, 2017 and June 30,
2016, respectively.
About Trio Tech
Established in 1958 and headquartered in Van Nuys, California,
Trio-Tech International is a diversified business group with
interests in semiconductor testing services, manufacturing and
distribution of semiconductor testing equipment, and real estate.
Further information about Trio-Tech's semiconductor products and
services can be obtained from the Company's Web site at
www.triotech.com, www.universalfareast.com, and
www.ttsolar.com.
Forward Looking Statements
This press release contains statements that are forward looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995 and may contain forward looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, and assumptions regarding future activities and results of
operations of the Company. In light of the "safe harbor" provisions
of the Private Securities Litigation Reform Act of 1995, the
following factors, among others, could cause actual results to
differ materially from those reflected in any forward-looking
statements made by or on behalf of the Company: market acceptance
of Company products and services; changing business conditions or
technologies and volatility in the semiconductor industry, which
could affect demand for the Company’s products and services; the
impact of competition; problems with technology; product
development schedules; delivery schedules; changes in military or
commercial testing specifications which could affect the market for
the Company’s products and services; difficulties in profitably
integrating acquired businesses, if any, into the Company; risks
associated with conducting business internationally and especially
in Asia, including currency fluctuations and devaluation, currency
restrictions, local laws and restrictions and possible social,
political and economic instability; changes to government policies,
potential legislative changes in U.S. and global financial and
equity markets, including market disruptions and significant
interest rate fluctuations; and other economic, financial and
regulatory factors beyond the Company’s control. Other than
statements of historical fact, all statements made in this press
release are forward-looking, including, but not limited to,
statements regarding industry prospects, future results of
operations or financial position, and statements of our intent,
belief and current expectations about our strategic direction,
prospective and future financial results and condition. In some
cases, you can identify forward-looking statements by the use of
terminology such as “may,” “will,” “expects,” “plans,”
“anticipates,” “estimates,” “potential,” “believes,” “can impact,”
“continue,” or the negative thereof or other comparable
terminology. Forward-looking statements involve risks and
uncertainties that are inherently difficult to predict, which could
cause actual outcomes and results to differ materially from our
expectations, forecasts and assumptions.
TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME
AUDITED (IN THOUSANDS, EXCEPT EARNINGS PER
SHARE)
Three Months Ended Twelve Months Ended June
30,
June 30,
Revenue 2017 2016 2017 2016 Products $ 4,068 $ 3,626
$ 15,289 $ 14,510 Testing services 4,382 4,174 16,586 15,280
Distribution 2,151 976 6,511 4,542 Other 37 39
152 122 10,638
8,815 38,538 34,454 Cost
of Sales Cost of products sold 3,329 2,831 12,091 11,008 Cost of
testing services rendered 2,988 2,760 11,057 10,587 Distribution
1,929 849 5,828 3,967 Other 29 31
100 123 8,275
6,471 29,076 25,685
Gross Margin
2,363 2,344
9,462 8,769 Operating Expenses: General and administrative
1,733 1,588 6,911 6,449 Selling 220 206 807 676 Research and
development 52 52 208 200 Gain (Loss) on disposal of property,
plant and equipment 9 (12 ) 47
(16 )
Total operating expenses
2,014 1,834 7,973
7,309 Income from Operations 349 510 1,489 1,460
Other Income (Expenses) Interest expense (53 ) (53 ) (202 ) (204 )
Other income, net 156 (83 ) 514
46 Total other income (expense) 103
(136 ) 312 (158 ) Income from
Continuing Operations before Income Taxes 452 374 1,801 1,302
Income Tax Expense (85 ) (69 ) (341 )
(237 )
Income from Continuing Operations before
Non-controlling Interest, net of tax
367 305 1,460 1,065 Loss (income) from discontinued operations, net
of tax (1 ) 1 (5 ) (4 ) NET
INCOME $ 366 $ 306 $ 1,455 $ 1,061
Less: Net income Attributable to the
Non-controlling interest
13 126 139 282
Net Income Attributable to Trio-Tech
International
353 180 1,316 779 Net Income Attributable to Trio-Tech
International: Income from continuing operations, net of tax 355
181 1,325 788 Income (loss) from discontinued operations, net of
tax (2 ) (1 ) (9 ) (9 ) Net Income
Attributable to Trio-Tech International $ 353 $ 180 $
1,316 $ 779 Basic Earnings per Share $ 0.10 $
0.05 $ 0.38 $ 0.22 Diluted Earnings per Share
$ 0.09 $ 0.05 $ 0.36 $ 0.22
Weighted Average Shares Outstanding - Basic 3,523 3,513 3,523 3,513
Weighted Average Shares Outstanding - Diluted 3,737 3,535 3,644
3,535
TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
AUDITED (IN THOUSANDS, EXCEPT EARNINGS PER SHARE)
Three Months Ended Twelve Months Ended
June 30, June 30, 2017 2016 2017 2016 Comprehensive
Income Attributable to Trio-Tech International:
Net Income
$ 366 $ 306 $ 1,455 $ 1,061 Foreign currency translation, net of
tax 408 (208 ) (679 ) (832 )
Comprehensive Income 774 98 776 229
Less: Comprehensive Income (Loss)
attributable to non-controlling interests
64 27 (11 ) 59
Comprehensive Income Attributable to Trio-Tech International $ 710
$ 71 $ 787 $ 170
TRIO-TECH
INTERNATIONAL AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE
SHEETS (IN THOUSANDS, EXCEPT NUMBER OF SHARES) Jun.
30, Jun. 30, 2017 2016
ASSETS
CURRENT ASSETS: Cash and cash equivalents $ 4,772 $ 3,807
Short-term deposits 787 295 Trade accounts receivable, net 9,009
8,826 Other receivables 401 596 Inventories, net 1,756 1,460
Prepaid expenses and other current assets 226 264 Assets held for
sale 86 92 Total current assets 17,037 15,340
Deferred tax assets 375 401 Investment properties, net 1,216 1,340
Property, plant and equipment, net 11,291 11,283 Other assets 1,922
1,788 Restricted term deposits 1,657 2,067 Total
non-current assets 16,461 16,879 TOTAL ASSETS $
33,498 $ 32,219
LIABILITIES AND SHAREHOLDERS'
EQUITY
CURRENT LIABILITIES: Lines of credit $ 2,556 $ 2,491 Accounts
payable 3,229 2,921 Accrued expenses 3,043 2,642 Income taxes
payable 233 230 Current portion of bank loans payable 260 342
Current portion of capital leases 228 235 Total
current liabilities 9,549 8,861 Bank loans payable, net of
current portion 1,552 1,725 Capital leases, net of current portion
531 503 Deferred tax liabilities 295 216 Other non-current
liabilities 44 43 Total non-current liabilities
2,422 2,487 TOTAL LIABILITIES 11,971
11,348 COMMITMENTS AND CONTINGENCIES -- -- EQUITY TRIO-TECH
INTERNATIONAL'S SHAREHOLDERS' EQUITY:
Common stock, no par value, 15,000,000
shares authorized; 3,523,055 and 3,513,055 issued and outstanding
at June 30, 2017 and June 30, 2016, respectively
10,921 10,882 Paid-in capital 3,206 3,188 Accumulated retained
earnings 4,341 3,025 Accumulated other comprehensive
gain-translation adjustments 1,633 2,162 Total
Trio-Tech International shareholders' equity 20,101 19,257
Non-controlling interest 1,426 1,614 TOTAL EQUITY
21,527 20,871 TOTAL LIABILITIES AND EQUITY $ 33,498 $
32,219
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170920005370/en/
Company Contact:Trio-Tech InternationalA. Charles
WilsonChairman(818) 787-7000orInvestor Contact:Berkman
Associates(310) 477-3118info@BerkmanAssociates.com
Trio Tech (AMEX:TRT)
Historical Stock Chart
From Aug 2024 to Sep 2024
Trio Tech (AMEX:TRT)
Historical Stock Chart
From Sep 2023 to Sep 2024