HONG KONG, Aug. 15, 2011 (GLOBE NEWSWIRE) -- Highway Holdings Limited (Nasdaq:HIHO) today reported results for its fiscal 2012 first quarter ended June 30, 2011.
Net sales for the fiscal first quarter were $6.46 million compared with $6.45 million a year earlier. Net income for the same period climbed sharply to $381,000, or $0.10 per diluted share, from $44,000, or $0.01 per diluted share, last year, supported by a favorable currency exchange gain of $100,000. During the comparable quarter in 2010, the company had a currency exchange loss of $257,000.
Operating income for the current quarter increased 17.8 percent to $357,000 from $303,000 a year earlier.
"Net sales for the fiscal first quarter, which were essentially unchanged from last year, reflect the impact of current world economic conditions. Although we remain guardedly optimistic that demand for our manufacturing services from our global customers base will increase this year, the current unstable global economic environment has caused uncertainty in the timing of orders and the volume of business," said Roland Kohl chairman, president and chief executive officer of Highway Holdings.
Gross profit as a percentage of sales for the first fiscal quarter of fiscal 2012 was 21.3 percent compared with 22 percent in the same period a year ago.
Selling, general and administrative expense for the fiscal quarter decreased by $108,000, or 10 percent, from the same period a year ago. Selling, general and administrative expense as a percentage of sales decreased for the same period to 15.8 percent from 17.5 percent a year earlier -- reflecting cost-savings activities, such as a reduction of the company's manufacturing facilities and the consolidation of its administrative offices.
Kohl highlighted the company's solid financial position, with cash equivalents and restricted cash of $6.6 million. At June 30, 2011, the company had working capital of $11.1 million. The company's strong financial condition allowed it to declare a cash dividend of $0.20 per share on the company's common stock on June 25, 2011. Total shareholders' equity at June 30, 2011 was $12.9 million compared with $12.5 million as of March 31, 2011. The company's current ratio was 3.42:1 at June 30, 2011 compared with 3.18:1 at June 30, 2010.
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.
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 | ||
| 2011 | 2010 | |
| Net sales | $6,463 | $6,451 |
| Cost of sales | 5,085 | 5,019 |
| Gross profit | 1,378 | 1,432 |
| Selling, general and administrative expenses | 1,021 | 1,129 |
| Operating income | 357 | 303 |
| Non-operating items | ||
| Interest expenses | (10) | (8) |
| Exchange gain (loss), net | 100 | (257) |
| Interest income | 1 | 1 |
| Other income | -- | 4 |
| Total non-operating income (expenses) | 91 | (260) |
| Net income before income tax and noncontrolling interests | 448 | 43 |
| Income taxes | (67) | (13) |
| Net income | 381 | 30 |
| Loss attributable to noncontrolling interest | 0 | 14 |
| Net income attributable to Highway Holdings Limited | $381 | $44 |
| Net income per share – basic and diluted | $0.10 | $0.01 |
| Weighted average number of shares outstanding: | ||
| Basic | 3,765 | 3,745 |
| Diluted | 3,777 | 3,755 |
| HIGHWAY HOLDINGS LIMITED AND SUBSIDIARIES | ||
| Consolidated Balance Sheet | ||
| (In thousands, except per share data) | ||
| June 30 | March 31 | |
| 2011 | 2011 | |
| Current assets: | ||
| Cash and cash equivalents | $6,585 | $6,864 |
| Restricted cash | 643 | 643 |
| Accounts receivable, net of doubtful accounts | 4,030 | 4,797 |
| Inventories | 3,767 | 4,236 |
| Prepaid expenses and other current assets | 747 | 417 |
| Total current assets | 15,772 | 16,957 |
| Property, plant and equipment, net | 2,280 | 2,411 |
| Investments in equity investees | 31 | 31 |
| Total assets | $18,083 | $19,399 |
| Current liabilities: | ||
| Accounts payable | $2,032 | $3,581 |
| Short-term borrowings | 577 | 280 |
| Long-term loans – current portion | 228 | 253 |
| Obligations under capital leases - current portion | 28 | 41 |
| Accrual payroll and employee benefits | 837 | 1,042 |
| Other liabilities and accrued expenses | 751 | 1,015 |
| Income tax payable | 164 | 71 |
| Total current liabilities | 4,617 | 6,283 |
| Obligations under capital leases – net of current portion | -- | 3 |
| Deferred income taxes | 172 | 173 |
| Long-term loans – net of current portion | 348 | 375 |
| Total liabilities | 5,137 | 6,834 |
| Shareholders' equity: | ||
| Common shares, $0.01 par value | 38 | 38 |
| Additional paid-in capital | 11,335 | 11,335 |
| Retained earnings | 1,587 | 1,206 |
| Treasury shares, at cost – 5,049 shares as of March 31, 2011; and on June 30, 2011 | (14) | (14) |
| Total shareholders' equity | 12,946 | 12,565 |
| Total liabilities and shareholders' equity | $18,083 | $19,399 |