BETHESDA, Md., Nov. 13, 2014 (GLOBE NEWSWIRE) -- India Globalization Capital, Inc. (NYSE MKT:IGC) announced financial results for the quarter ended September 30, 2014.
IGC's fiscal year ends on March 31, 2015. Therefore the quarter being reported is the second quarter of fiscal year ending on March 31, 2015 ("Q2 2015") and the corresponding quarter for the previous fiscal year is Q2 2014.
Revenue for Q2 2015 was $2,117,816 compared to $1,133,585 for Q2 2014. Total revenue for the September quarter increased by 87% over the corresponding quarter in the previous fiscal year. The increase in revenue relates to an increase in the volume of trading commodities and electronics and leasing heavy equipment in India. The Company anticipates revenue to continue to grow as we expand our trading, leasing and vertical farming businesses.
Selling, general and administrative expenses were $791,428 for Q2 2015 and $474,951 for Q2 2014. The increase in SG&A for the three months ended September 30, 2014 included a one-time expense of $258,209 related to acquisition cost. On a Non-GAAP basis, the G&A including non-cash items but excluding acquisition costs was $533,219 for Q2 2015 versus $474,951 for Q2 2014. The expanded G&A reflects our measures for reaching profitability and building intellectual property in legal cannabis.
In Q2 2015, the Company reported a GAAP net loss of $887,399 and a GAAP EPS loss of $0.07 inclusive of acquisition related expenses, compared to a GAAP loss of $615,187 and a GAAP EPS loss of $0.09 for Q2 2014.
For the period ended September 30, 2014, our cash and cash equivalents along with restricted cash was approximately $1,354,803 and our stockholders' equity was approximately $15,926,976 compared with about $14,145,296 for the period ended March 31, 2014.
Ram Mukunda, CEO commented, " Our short term goals are to increase revenue, expand margins and achieve sustained and growing profitability. We expect to achieve our goals through four business operations: the electronic trading platform for commodities and electronics; leasing of equipment; vertical farming operations; and our developing legal cannabis business. Two of these operations are now contributing to revenue. We expect them to continue to grow and increasingly contribute to profitability. We have been investing significantly in higher margin vertical farming facilities and products and expect this to contribute revenue and margins beginning in early 2015. Finally, we continue to develop a comprehensive strategy for the emerging legal cannabis market. We believe that we are in the very early stages of this industry and we hope to establish a leading position as it becomes better defined.
We believe that the best way to drive shareholder value is to execute in each of these business operations. We are very excited about the possibilities for next year as all the pieces of this strategy are beginning to come together."
About IGC:
Based in Bethesda, Maryland, India Globalization Capital, Inc. has articulated a strategy to become a company with diverse operating businesses including medical marijuana, specialty pharmaceuticals and solar energy. We are currently engaged in trading, vertical farming and rental of heavy equipment in India, China and the United States.
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," "plans," "anticipates," "believes," "estimates," "predicts," "intends," "potential," "proposed" 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 IGC's business and acquisition and diversification strategy, competitive environment, infrastructure demands, iron ore availability in its existing business and governmental, regulatory, political, economic, legal and social conditions in, among other places, China and India.
Except as required by federal securities laws, IGC undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information or 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, 2014 and in subsequent reports filed with the U.S. Securities and Exchange Commission.
FINANCIAL STATEMENTS TO FOLLOW
| INDIA GLOBALIZATION CAPITAL, INC. AND SUBSIDIARIES | ||
| CONSOLIDATED BALANCE SHEETS | ||
| All amounts in USD except | ||
| share data | ||
| As of | ||
| 30-Sept-14 | 31-March-14 | |
| (Unaudited) | (Audited) | |
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $ 1,345,803 | $ 1,026,565 |
| Accounts receivable, net of allowances | 1,215,004 | 566,252 |
| Inventories | 749,816 | 611,702 |
| Prepaid expenses and other current assets | 2,293,204 | 1,553,936 |
| Total current assets | $ 5,603,827 | $ 3,758,455 |
| Goodwill | 982,782 | -- |
| Intangible Assets | 481,794 | 468,091 |
| Property, plant and equipment, net | 8,218,230 | 7,586,844 |
| Investments in affiliates | 5,109,058 | 5,109,058 |
| Investments-others | 30,668 | 31,650 |
| Deferred Income taxes | 318,625 | 321,676 |
| Other non-current assets | 446,014 | 458,578 |
| Total long-term assets | $ 15,587,171 | $ 13,975,897 |
| Total assets | $ 21,190,998 | $ 17,734,352 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Short-term borrowings | $ 351,173 | $ -- |
| Trade payables | 434,927 | 133,365 |
| Accrued expenses | -- | 418,480 |
| Loans-others | 1,256,552 | 424,845 |
| Other current liabilities | 410,623 | 53,987 |
| Total current liabilities | $ 2,453,275 | $ 1,030,677 |
| Notes payable | 1,800,000 | 1,800,000 |
| Other non-current liabilities | 1,010,747 | 758,379 |
| $ 2,810,747 | $ 2,558,379 | |
| Total liabilities | $ 5,264,022 | $ 3,589,056 |
| Stockholders' equity: | ||
| Common stock — $.0001 par value; 150,000,000 shares authorized; 9,373,569 issued and outstanding as of March 31, 2014 and 12,248,888 issued and outstanding as of September 30, 2014. | $ 1,225 | $ 937 |
| Additional paid-in capital | 62,054,361 | 58,362,834 |
| Accumulated other comprehensive income | (1,868,246) | (2,016,815) |
| Retained earnings/(deficit) | (44,825,086) | (42,719,772) |
| Total equity attributable to Parent | $ 15,362,254 | $ 13,627,184 |
| Non-controlling interest | $ 564,722 | $ 518,112 |
| Total stockholders' equity | 15,926,976 | 14,145,296 |
| Total liabilities and stockholders' equity | $ 21,190,998 | $ 17,734,352 |
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 September 30, 2014 and Annual Report on Form 10-K for the fiscal year ended March 31, 2014. 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 |
All amounts in USD except share data |
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|
Three months ended September 30, |
Six months ended September 30, |
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| 2014 | 2013 | 2014 | 2013 | |
| Revenues | $ 2,117,816 | $ 1,133,585 | $ 2,881,680 | $ 2,257,489 |
| Cost of revenues (excluding depreciation) | (1,936,513) | (943,493) | (2,623,801) | (1,879,732) |
| Selling, general and administrative expenses (includes acquisition related costs amounting to $258,209 for the period ended September 30, 2014) | (791,428) | (474,951) | (1,869,114) | (774,076) |
| Depreciation | (155,154) | (147,850) | (304,043) | (297,144) |
| Operating income/(loss) | $ (765,279) | $ (432,709) | $ (1,915,278) | $ (693,463) |
| Interest expense | (79,749) | (68,828) | (140,919) | (180,964) |
| Interest income | 136 | 2,253 | 2,474 | 6,333 |
| Other income, net | (70,961) | (114,577) | (71,848) | (376,485) |
| Income before income taxes and minority interest attributable to non-controlling interest | $ (915,853) | $ (613,861) | $ (2,125,571) | $ (1,244,579) |
| Income taxes benefit/(expense) | -- | (1,507) | -- | (3,103) |
| Net income/(loss) | $ (915,853) | $ (615,368) | $ (2,125,571) | $ (1,247,682) |
| Non-controlling interests in earnings of subsidiaries | 28,454 | 181 | 20,165 | (992) |
| Net income/(loss) attributable to common stockholders | $ (887,399) | $ (615,187) | $ (2,105,406) | $ (1,248,674) |
| Earnings/(loss) per share attributable to common stockholders: | ||||
| Basic | $ (0.07) | $ (0.09) | $ (0.17) | $ (0.18) |
| Diluted | $ (0.07) | $ (0.09) | $ (0.17) | $ (0.18) |
| Weighted-average number of shares used in computing earnings per share amounts: | ||||
| Basic | 12,227,529 | 7,116,180 | 12,227,529 | 7,116,180 |
| Diluted | 12,227,529 | 7,116,180 | 12,227,529 | 7,116,180 |
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 September 30, 2014 and Annual Report on Form 10-K for the fiscal year ended March 31, 2014. Quarterly financial results may not be indicative of the financial results for the entire fiscal year.