BETHESDA, Md., Feb. 18, 2014 (GLOBE NEWSWIRE) -- India Globalization Capital, Inc. (NYSE:IGC), a holding company currently competing in the metals and minerals industry in India and China, announced financial results for the quarter ended December 31, 2013.
Ram Mukunda, CEO of India Globalization Capital, said, "During the quarter, we successfully transitioned our core platform from trading to beneficiation of iron ore assets and have positioned the Company to meet key objectives for growth and profitability in the upcoming fiscal year. The outlook for iron ore demand and pricing remains strong and although our revenue for the quarter was lower than the comparable quarter from the previous year, the Company has built a meaningful foundation inventory as a result of our efforts that will be ready for future processing and sale."
Total revenue was $17,529 for the three months ended December 31, 2013 as compared to $3,933,906 for the three months ended December 31, 2012. The revenue reported for the December quarter ended 2012 was primarily from trading of iron ore. During the December 2013 quarter, however, the Company focused on beneficiation of iron ore. As part of this transition plan, we diverted all our resources to the beneficiation efforts and away from trading iron ore. We have two processes for producing high-grade iron ore. The first is a dry process that magnetically separates iron ore from residue, and the second is a wet beneficiation process that further separates iron ore from washed residue. During the December quarter, we ran the dry process for the majority of the quarter to accumulate output of the dry processor to form a significant base inventory. This allowed us to build an inventory of output that can be fed into the wet processors. Our expectation is that the wet processors will commence operations in March as the weather in Inner Mongolia improves. The partially finished product that is produced by the dry process is reported as inventory and is not recognized as revenue until it is processed into high-grade iron ore and subsequently sold to the steel factories. Therefore the revenue reported in the December 2013 quarter is significantly lower than the revenue reported in the December 2012 quarter. However, it is imperative that we take this step as part of our strategy to become profitable in the next fiscal year.
The revenue that is reported in this current quarter is derived from the leasing or rental of the heavy machinery that we own in TBL. Although this business is currently small, we are optimistic of its potential growth and continued strong margins.
In the three months ended December 31, 2013, the Company reported a GAAP net income loss of ($310,476) thousand and a GAAP EPS of ($0.04) compared to a GAAP net income of $310,892 thousand and a GAAP EPS of ($0.02) for the three months ended December 31, 2012. The loss in the December 2013 quarter is attributable to our shift in strategy from trading to higher margin beneficiation. We expect that this strategy once fully implemented will generate consistent earnings.
Selling, general and administrative expenses were $156,048 for the three months ended December 31, 2013 as compared to $153,789 for the three months ended December 31, 2012. The SG&A for the quarter ended December 2013 includes about $32 thousand of non-cash expenses associated with the award of stock to one of our vendors.
For the period ended December 31, 2013, our cash and cash equivalents along with restricted cash was approximately $440,626. We anticipate that we have sufficient cash to fund continuing operations, but will require additional funding to expand our business model and take advantage of the opportunities that we currently see in the marketplace, which may include other acquisitions.
As of December 31, 2013, the Company's stockholders' equity was approximately $14,280,567 compared with about $14,974,230 for the period ended March 31, 2013. The Company reported total assets of approximately $18,187,952 as of December 31, 2013 versus about $19,252,593 as of March 31, 2013.
Mukunda continued, "There are multiple opportunities for IGC to acquire distressed mining assets and diversify our holdings. We are focused on building value for our shareholders as we leverage our current platform to include beneficiation of iron ore and the successful integration of assets in key growth segments."
About IGC:
Based in Bethesda, Maryland, India Globalization Capital, Inc. (IGC) is a holding company. We are engaged in acquiring, incubating, financing and expanding distressed microcap companies. We currently are engaged in the mining and infrastructure industries. We operate in the U.S., India and China. The Company's plans in the short term are to create cash flow from existing assets and in the medium term are to build its asset base through opportunistic acquisitions. For more information about IGC, please visit IGC's Website at www.indiaglobalcap.com.
Forward-looking Statements:
Some of the statements contained in this press release that are not historical facts constitute forward-looking statements under the federal securities laws. Forward-looking statements can be identified by the use of the words "may," "will," "should," "could," "expects," "post", "plans," "anticipates," "believes," "estimates," "predicts," "intends," "potential," "proposed," "confident" or "continue" or the negative of those terms. These statements are not a guarantee of future developments and are subject to risks, uncertainties and other factors, some of which are beyond IGC's control and are difficult to predict. Consequently, actual results may differ materially from information contained in the forward-looking statements as a result of future changes or developments in our business, our competitive environment, infrastructure demands, iron ore availability and governmental, regulatory, political, economic, legal and social conditions in China and India.
The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise. Other factors and risks that could cause or contribute to actual results differing materially from such forward-looking statements have been discussed in greater detail in IGC's Form 10-K for fiscal year ended March 31, 2013, and Form 10-Q for fiscal quarters ended September 30, 2013, December 31, 2012 and September 30, 2012, filed with the Securities and Exchange Commission on July 16, 2013, August 14, 2013, February 13, 2013 and November 14, 2012, respectively.
FINANCIAL STATEMENTS TO FOLLOW
| INDIA GLOBALIZATION CAPITAL, INC. AND SUBSIDIARIES | ||
| CONSOLIDATED BALANCE SHEETS | ||
| All amounts in USD except share data | ||
| As of | ||
| December 31, 2013 | March 31, 2013 | |
| (un-audited) | (audited) | |
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $ 440,626 | $ 1,064,421 |
| Accounts receivable, net of allowances | 890,134 | 1,066,650 |
| Inventories | 687,881 | 407,060 |
| Prepaid expenses and other current assets | 1,781,591 | 1,730,514 |
| Total current assets | $ 3,800,232 | $ 4,268,645 |
| Non-current assets: | ||
| Intangible Assets | 592,274 | 592,274 |
| Property, plant and equipment, net | 7,731,628 | 8,184,230 |
| Investments in former affiliates | 5,109,057 | 5,109,057 |
| Investments-others | 48,450 | 83,489 |
| Deferred acquisition costs | 207,337 | 207,338 |
| Deferred Income taxes | 298,635 | 341,455 |
| Other non-current assets | 400,339 | 466,105 |
| Total non-current assets | 14,387,720 | 14,983,948 |
| Total assets | $ 18,187,952 | $ 19,252,593 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Trade payables | 577,878 | 600,702 |
| Accrued expenses | 340,263 | 466,960 |
| Notes payable | 1,800,000 | -- |
| Loans — others | 304,010 | 446,694 |
| Other current liabilities | 228,943 | 310,619 |
| Total current liabilities | $ 3,251,094 | $ 1,824,975 |
| Non-current liabilities: | ||
| Notes payable | -- | 1,800,000 |
| Other non-current liabilities | 656,291 | 653,388 |
| Total Non-current liabilities | $ 656,291 | $ 2,453,388 |
| Total liabilities | $ 3,907,385 | $ 4,278,363 |
| Stockholders' equity: | ||
| Common stock — $.0001 par value; 150,000,000 shares authorized; 6,980,098 issued and outstanding as of March 31, 2013 and 7,980,919 issued and outstanding as of December 31, 2013. | $ 798 | $ 698 |
| Additional paid-in capital | 57,192,952 | 56,153,375 |
| Accumulated other comprehensive income | (2,188,626) | (2,020,764) |
| Retained earnings (Deficit) | (41,256,329) | (39,697,179) |
| Total equity attributable to Parent | $ 13,748,795 | $ 14,436,130 |
| Non-controlling interest | $ 531,772 | $ 538,100 |
| Total stockholders' equity | 14,280,567 | 14,974,230 |
| Total liabilities and stockholders' equity | $ 18,187,952 | $ 19,252,593 |
These interim financial statements should be read in conjunction with the financial statements and notes included in the Company's Quarterly Report on Form 10-Q for the quarter ended December 31, 2013 and Annual Report on Form 10-K for the fiscal year ended March 31, 2013. Quarterly financial results may not be indicative of the financial results for the entire fiscal year.
| INDIA GLOBALIZATION CAPITAL, INC. AND SUBSIDIARIES | ||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
| (Unaudited) | ||||
| All amounts in USD except share data | ||||
|
Three months ended December 31, |
Nine months ended December 31, |
|||
| 2013 | 2012 | 2013 | 2012 | |
| Revenues | $ 17,529 | $ 3,933,906 | $ 2,275,018 | $ 6,553,052 |
| Cost of revenues (excluding depreciation) | (7,789) | (3,189,950) | (1,887,521) | (5,235,751) |
| Selling, general and administrative expenses | (156,048) | (153,789) | (930,124) | (936,348) |
| Depreciation | (147,708) | (134,785) | (444,852) | (463,503) |
| Operating income (loss) | (294,016) | 455,382 | (987,479) | (82,550) |
| Interest expense | (52,502) | (2,651) | (233,466) | (28,950) |
| Interest income | 1,824 | 2,051 | 8,157 | 2,888 |
| Other income, net | 41,439 | 43,641 | (335,046) | (120,595) |
| Income before income taxes and minority interest attributable to non-controlling interest | $ (303,255) | $ 498,423 | $ (1,547,834) | $ (229,207) |
| Income taxes benefit/ (expense) | (1,885) | (453) | (4,988) | 21,522 |
| Net income/(loss) | $ (305,140) | $ 497,970 | $ (1,552,822) | $ (207,685) |
| Non-controlling interests in earnings of subsidiaries | (5,336) | (187,078) | (6,328) | (152,449) |
| Net income / (loss) attributable to common stockholders | $ (310,476) | $ 310,892 | $ (1,559,150) | $ (360,134) |
| Earnings/(loss) per share attributable to common stockholders: | ||||
| Basic | $ (0.04) | $ 0.05 | $ (0.20) | $ (0.06) |
| Diluted | $ (0.04) | $ 0.05 | $ (0.20) | $ (0.06) |
| Weighted-average number of shares used in computing earnings per share amounts: | ||||
| Basic | 7,734,444 | 6,006,174 | 7,734,444 | 6,006,174 |
| Diluted | 7,734,444 | 6,006,174 | 7,734,444 | 6,006,174 |
These interim financial statements should be read in conjunction with the financial statements and notes included in the Company's Quarterly Report on Form 10-Q for the quarter ended December 31, 2013 and Annual Report on Form 10-K for the fiscal year ended March 31, 2013. Quarterly financial results may not be indicative of the financial results for the entire fiscal year.