HONG KONG, July 25, 2017 (GLOBE NEWSWIRE) -- 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 income Gain/(loss) on disposal of asset | 3 46 | 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 | ||