BETHESDA, Md., July 16, 2014 (GLOBE NEWSWIRE) -- India Globalization Capital, Inc. (NYSE MKT:IGC) announced its financial results for the Fiscal Year Ended (FYE) March 31, 2014.
Ram Mukunda, CEO of India Globalization Capital, said, "Fiscal 2014 was a year in which we positioned IGC in new high growth areas while decreasing our emphasis on the legacy iron ore business. While our overall revenue was substantially lower in fiscal 2014 as compared to fiscal 2013, we have prepared the Company to move forward on our corporate vision of accretive diversification. As a result, we project revenue to increase substantially in fiscal 2015 as the new operating segments are integrated into the IGC platform in the near-term.
Although the business climate in India in fiscal 2014 had deteriorated considerably, the election of a new pro business government offers a newly favorable environment to operate in. We expect to experience a meaningful renewal in the equipment rental marketplace and anticipate a positive outlook for this segment in fiscal 2015. Separately, we are reviewing strategic options for our Ironman assets in Inner Mongolia to maximize shareholder value.
In fiscal 2014, we executed on several initiatives. First, we cut and realigned G&A. Second, we hired new and experienced management. Third, we created a strategic alliance and closed associated acquisitions to develop vertical farms that can be positioned for the legal cannibals industry, which is projected to grow rapidly. Fourth, we improved the overall strength and liquidity of our balance sheet, which will allow us to facilitate growth. As a result, we expect to generate substantially stronger top line revenue over the top line generated in fiscal 2014 and drive IGC towards profitability. In addition, we expect to re-enter the Indian market with an expanded heavy equipment rental business to impact our bottom line and further drive improved financial performance."
Total revenue was about $2.27 million for the year ended March 31, 2014, as compared to about $8.03 million for the year ended March 31, 2013. The revenue reported for fiscal 2014 and 2013 is from trading of iron ore in China, construction and equipment rental in India. The majority of the decrease in revenue year over year is from the decreased volume of trading iron ore. The Company chose to divert financial resources temporarily away from trading and construction to new initiatives. Based on the new initiatives, including the acquisition of Golden Gate, indoor farming and a renewed emphasis on the rental business in India, we anticipate revenue increasing substantially in fiscal 2015 over fiscal 2014.
Selling, general and administrative expenses were $2.18 million for fiscal 2014 as compared to $3.04 million for fiscal 2013, a decrease of 28.37%. The overall decrease in SG&A is primarily attributed to cost saving measures adopted by the Company as it emphasizes new areas of business.
In fiscal 2014, operating income (loss) was ($2.53) million compared to a loss of about ($2.48) million in fiscal 2013.
In fiscal 2014, the Company reported a GAAP (loss) of ($3.02) million, and an EPS of ($0.37), compared to a loss of about ($2.25) million and an EPS of ($0.32) in FYE 2013. The GAAP loss for fiscal 2014 includes about $1.84 million of non-cash expenses associated with ESOPs, interest payments paid in stock, foreign exchange losses, and other miscellaneous non-cash items. The total cash burn for fiscal 2014 after adjusting for non-cash items was about $1.18 million.
The Company reported total liabilities of $3.59 million in fiscal 2014 versus $4.28 million for fiscal 2013. The majority of the decrease in total liability came from a decrease in trade payables and other current liabilities.
As of March 31, 2014, the Company's stockholders' equity was $14.15 million compared to $14.97 million for the period ended March 31, 2013.
About IGC:
Based in Bethesda, Maryland, India Globalization Capital, Inc. has articulated a strategy to become a company with diverse operating businesses including niches such as 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. IGC's plan in the short term is to create cash flow from existing assets and in the medium term to expand its asset base through opportunistic acquisitions. For more information about IGC, please visit IGC's website at http://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," "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.
| INDIA GLOBALIZATION CAPITAL, INC. AND SUBSIDIARIES | ||
| CONSOLIDATED BALANCE SHEETS | ||
| All amounts in USD except share data | 2014 | 2013 |
| (audited) | (as restated) | |
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $ 1,026,565 | $ 1,064,421 |
| Accounts receivable, net of allowances | 566,252 | 1,066,650 |
| Inventories | 611,702 | 407,060 |
| Prepaid expenses and other current assets | 1,553,936 | 1,730,514 |
| Total current assets | 3,758,455 | 4,268,645 |
| Intangible Assets | 468,091 | 592,274 |
| Property, plant and equipment, net | 7,586,844 | 8,184,230 |
| Investments in affiliates | 5,109,058 | 5,109,057 |
| Investments-others | 31,650 | 83,489 |
| Deferred acquisition costs | -- | 207,338 |
| Deferred Income taxes | 321,676 | 341,455 |
| Other non-current assets | 458,578 | 466,105 |
| Total long-term assets | 13,975,897 | 14,983,948 |
| Total assets | $ 17,734,352 | $ 19,252,593 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Trade payables | 133,365 | 600,702 |
| Accrued expenses | 418,480 | 466,960 |
| Notes payable | ||
| Loans – others | 424,845 | 446,694 |
| Other current liabilities | 53,987 | 310,619 |
| Total current liabilities | 1,030,677 | 1,824,975 |
| Notes payable | 1,800,000 | 1,800,000 |
| Other non-current liabilities | 758,379 | 653,388 |
| 2,558,379 | 2,453,388 | |
| Total liabilities | $ 3,589,056 | $ 4,278,363 |
| Stockholders' equity: | ||
| Common stock — $.0001 par value; 150,000,000 shares authorized; 9,373,569 issued and outstanding as of March 31, 2014 and 6,980,098 issued and outstanding as of March 31, 2013. | $ 937 | $ 698 |
| Additional paid-in capital | 58,362,834 | 56,153,375 |
| Accumulated other comprehensive income | (2,016,815) | (2,020,764) |
| Retained earnings (Deficit) | (42,719,772) | (39,697,179) |
| Total equity attributable to Parent | $ 13,627,184 | $ 14,436,130 |
| Non-controlling interest | 518,112 | 538,100 |
| Total stockholders' equity | 14,145,296 | 14,974,230 |
| Total liabilities and stockholders' equity | $ 17,734,352 | $ 19,252,593 |
| These financial statements should be read in connection with the accompanying notes on Form 10-K for fiscal 2014 filed with the SEC on July 15, 2014. | ||
| INDIA GLOBALIZATION CAPITAL, INC. AND SUBSIDIARIES | ||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||
| Year ended March 31, | ||
| All amounts in USD except share data |
2014 (audited) |
2013 (as restated) |
| Revenues | $ 2,273,155 | $ 8,030,016 |
| Cost of revenues (excluding depreciation) | (1,891,559) | (6,496,891) |
| Selling, general and administrative expenses | (2,178,740) | (3,041,632) |
| Depreciation | (712,314) | (673,916) |
| Impairment loss - Goodwill | -- | (301,141) |
| Impairment loss - Investment others | (18,244) | |
| Operating income (loss) | (2,527,702) | (2,483,564) |
| Interest expense | (291,520) | (419,436) |
| Interest income | 12,712 | 30,397 |
| Other income, net | (236,071) | 240,064 |
| Income before income taxes and minority interest attributable to non-controlling interest | $ (3,042,581) | $ (2,632,539) |
| Income taxes benefit/ (expense) | -- | 365,116 |
| Net income/(loss) | $ (3,042,581) | $ (2,267,423) |
| Non-controlling interests in earnings of subsidiaries | (19,988) | 15,076 |
| Net income / (loss) attributable to common stockholders | $ (3,022,593) | $ (2,252,347) |
| Earnings/(loss) per share attributable to common stockholders: | ||
| Basic | $ (0.37) | $ (0.32) |
| Diluted | $ (0.37) | $ (0.32) |
| Weighted-average number of shares used in computing earnings per share amounts: | ||
| Basic | 8,205,684 | 6,966,798 |
| Diluted | 8,205,684 | 6,966,798 |
| These financial statements should be read in connection with the accompanying notes on Form 10-K for fiscal 2014 filed with the SEC on July 15, 2014. | ||