– Net Sales Up 46 Percent;
Profitability Returns –
Highway Holdings Limited (Nasdaq: HIHO) today reported
results for its fiscal 2022 first quarter ended June 30, 2021.
Net sales for the fiscal first quarter increased approximately
46 percent to $3.0 million from $2.1 million a year earlier. Net
income for the same period was $333,000, or $0.08 per diluted
share, compared with a net loss of $223,000, or $0.06 per share,
last year.
"Results for the fiscal 2022 first quarter benefitted from the
carryover of orders that were delayed in the fiscal 2021 fourth
quarter due to the global pandemic and other factors discussed in
the company’s recently announced fiscal year-end results. While we
remain cautious about the near-term consequences related to the
global pandemic and supply chain issues impacting most industries,
we are starting fiscal 2022 off on a solid foundation with
excellent order demand,” said Roland Kohl, chairman, president and
chief executive officer.
Gross profit for the 2022 fiscal first quarter was $930,000
compared with $520,000 in the same period a year ago, with gross
profit as a percentage of sales approximately 31 percent compared
with 25 percent a year ago, representing a six percent improvement
on a year-over-year basis.
Selling, general and administrative expense for the 2022 fiscal
first quarter decreased by $113,000 – benefiting from some of the
management salary reductions. As a percentage of net sales,
SG&A expenses decreased to 21 percent from 35 percent, despite
an almost 46 percent increase in sales.
The company realized a small currency exchange loss of $7,000 in
the quarter compared with an exchange loss of $20,000 in the same
period last year, primarily due to a stronger RMB during the first
two months of the fiscal 2022 first quarter.
Kohl highlighted the company’s solid financial position, with
cash and cash equivalents of $ 7.7 million – exceeding combined
short- and long-term liabilities by $2.2 million. At June 30, 2021,
the company had working capital of $7.9 million.
Total shareholders’ equity at June 30, 2021 was $10.1 million
compared with $9.8 million as of March 31, 2021. The company’s
current ratio at June 30, 2021 was 3.0 :1.
About Highway Holdings
Highway Holdings is an international manufacturer of a wide
variety of high-quality parts and products for blue chip equipment
manufacturers based primarily in Germany. Highway Holdings’
administrative office is located in Hong Kong and its manufacturing
facilities are located in Yangon, Myanmar and Shenzhen, China.
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, the impact of the worldwide COVID-19
pandemic, 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
2021
2020
Net sales
$
2,998
$
2,057
Cost of sales
2,068
1,537
Gross profit
930
520
Selling, general and administrative
expenses
617
730
Operating income/(loss)
313
(210
)
Non-operating income (expense):
Exchange (loss), net
(7
)
(20
)
Interest income
Gain/(loss) on disposal of asset
1
-
4
1
Other income (expense)
-
1
Total non-operating (expenses) income
(6
)
(14
)
Net income/(loss) before income taxes
307
(224
)
Income taxes
33
-
Net income/(loss)
340
(224
)
Less: net gain/(loss) attributable to
non-controlling interests
7
(1
)
Net income/(loss) attributable to Highway
Holdings Limited’s Shareholders
$
333
($
223
)
Net income/(loss) per share – Basic
$
0.08
($
0.06
)
Net income/(loss) per share – Diluted
$
0.08
($
0.06
)
Weighted average number of shares
outstanding:
Basic
4,019
3,910
Diluted
4,160
3,910
HIGHWAY HOLDINGS LIMITED AND
SUBSIDIARIES
Consolidated Balance Sheet
(In thousands, except per share
data)
June 30
March 31
2021
2021
Current
assets:
Cash and cash equivalents
$
7,691
$
7,757
Accounts receivable, net of doubtful
accounts
1,752
973
Inventories
2,171
2,238
Prepaid expenses and other current
assets
246
513
Total current assets
11,860
11,481
Property, plant and equipment, net
798
833
Operating lease right-of-use assets
2,562
2,795
Long-term deposits
285
282
Long-term loan receivable
95
95
Investments in equity method investees
-
-
Total assets
15,600
15,486
Current
liabilities:
Accounts payable
$
885
$
653
Operating lease liabilities, current
822
821
Accrued expenses and other liabilities
2,249
2,347
Income tax payable
32
58
Dividend payable
5
85
Total current liabilities
3,993
3,964
Operating lease liabilities,
non-current
929
1,142
Deferred income taxes
572
607
Total liabilities
5,494
5,713
Shareholders'
equity:
Preferred shares, $0.01 par value
-
-
Common shares, $0.01 par value
40
40
Additional paid-in capital
11,731
11,709
Accumulated deficit
(1,708
)
(2,041
)
Accumulated other comprehensive
income/(loss)
19
48
Non-controlling interest
24
17
Total shareholders' equity
10,106
9,773
Total liabilities and shareholders'
equity
$
15,600
$
15,486
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210722005158/en/
Gary S. Maier Maier & Company, Inc. (310) 471-1288
Highway (NASDAQ:HIHO)
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