First Half Net Income of $0.19 Per Diluted
Share
Trio-Tech International (NYSE American: TRT) today
announced financial results for the second quarter and first six
months of fiscal 2020.
Fiscal 2020 Second Quarter Results
For the three months ended December 31, 2019, net income
increased 23% to $426,000, or $0.11 per diluted share, compared to
$348,000, or $0.09 per diluted share, for the second quarter of
fiscal 2019. Net income for the second quarter of fiscal 2020
included a $1,172,000 gain on the sale of assets held for sale.
There were no corresponding gains in the same period last year.
Revenue for the second quarter of fiscal 2020 decreased 8% to
$8,962,000 compared to revenue of $9,690,000 for the same quarter
last year. Manufacturing revenue was $3,045,000, a 9% decrease
compared to $3,352,000 a year earlier. Semiconductor testing
services revenue decreased 12% to $3,887,000 compared to $4,393,000
last year. Distribution revenue increased 5% to $2,014,000 compared
to $1,916,000 for the comparable quarter of fiscal 2019.
Gross margin for the second quarter of fiscal 2020 was
$1,905,000, or 21% of revenue. This compares to gross margin of
$2,258,000, or 23% of revenue, for the same quarter last year,
reflecting lower manufacturing and testing services sales.
Operating expenses increased 3% to $2,078,000, or 23% of
revenue, for this year’s second quarter compared to $2,031,000, or
21% of revenue, last year. Operating expenses increased primarily
due to a doubtful debt provision in the Singapore manufacturing
segment.
CEO Comments
S.W. Yong, Trio-Tech's CEO, said, "While we are pleased to
report an increase in net income for the second quarter and first
half of fiscal 2020 primarily driven by asset sales, our operating
results continued to be affected by trade disputes as well as
customer requests for delayed deliveries. As always, we are focused
on delivering unparalleled customer service and the highest quality
products to our customers as we strive to improve Trio-Tech’s
operating performance.”
Fiscal 2020 First Half Results
For the six months ended December 31, 2019, net income increased
69% to $699,000, or $0.19 per diluted share, which included the
$1,172,000 gain on the sale of assets held for sale. This compares
to net income of $413,000, or $0.11 per diluted share, for the six
months ended December 31, 2018.
Revenue decreased 5% to $18,785,000 compared to revenue of
$19,735,000 for the first half of the last fiscal year.
Manufacturing revenue decreased 9% to $6,362,000 compared to
$6,989,000 for the same period in the last fiscal year.
Semiconductor testing services revenue decreased 6% to $8,277,000
compared to $8,830,000 for the first six months of the prior fiscal
year, while distribution revenue increased 7% to $4,113,000
compared to $3,860,000 for the first six months of the prior fiscal
year.
Gross margin for the first six months of fiscal 2020 decreased
5% to $4,157,000, or 22% of revenue, compared to $4,359,000, or 22%
of revenue, for last fiscal year’s first six months.
Operating expenses for the first six months of fiscal 2020
increased 2% to $4,108,000, or 22% of revenue, compared to
$4,009,000, or 20% of revenue for the same period of last fiscal
year.
Shareholders' equity at December 31, 2019 was $24,330,000, or
$6.62 per outstanding share, compared to $23,666,000, or $6.44 per
outstanding share, at June 30, 2019. There were approximately
3,673,055 Trio-Tech International common shares outstanding at
December 31, 2019.
About Trio-Tech
Established in 1958 and headquartered in Van Nuys, California,
Trio-Tech International is a diversified business group with
interests in semiconductor testing services, manufacturing and
distribution of semiconductor testing equipment, and real estate.
Further information about Trio-Tech's semiconductor products and
services can be obtained from the Company's Web site at
www.triotech.com, www.universalfareast.com, and www.ttsolar.com.
Forward Looking Statements
This press release contains statements that are forward looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995 and may contain forward looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, and assumptions regarding future activities and results of
operations of the Company. In light of the "safe harbor" provisions
of the Private Securities Litigation Reform Act of 1995, the
following factors, among others, could cause actual results to
differ materially from those reflected in any forward looking
statements made by or on behalf of the Company: market acceptance
of Company products and services; changing business conditions or
technologies and volatility in the semiconductor industry, which
could affect demand for the Company's products and services; the
impact of competition; problems with technology; product
development schedules; delivery schedules; changes in military or
commercial testing specifications which could affect the market for
the Company's products and services; difficulties in profitably
integrating acquired businesses, if any, into the Company; risks
associated with conducting business internationally and especially
in Asia, including currency fluctuations and devaluation, currency
restrictions, local laws and restrictions and possible social,
political and economic instability; changes in U.S. and global
financial and equity markets, including market disruptions and
significant interest rate fluctuations; the trade tension between
U.S. and China; public health issues related to the 2019-Novel
Coronavirus and other economic, financial and regulatory factors
beyond the Company's control. Other than statements of historical
fact, all statements made in this Quarterly Report are forward
looking, including, but not limited to, statements regarding
industry prospects, future results of operations or financial
position, and statements of our intent, belief and current
expectations about our strategic direction, prospective and future
financial results and condition. In some cases, you can identify
forward looking statements by the use of terminology such as "may,"
"will," "expects," "plans," "anticipates," "estimates,"
"potential," "believes," "can impact," "continue," or the negative
thereof or other comparable terminology. Forward looking statements
involve risks and uncertainties that are inherently difficult to
predict, which could cause actual outcomes and results to differ
materially from our expectations, forecasts and assumptions.
TRIO-TECH INTERNATIONAL AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
OPERATIONS AND COMPREHENSIVE INCOME
UNAUDITED (IN THOUSANDS, EXCEPT
EARNINGS PER SHARE)
Three Months Ended
Six Months Ended
December 31,
December 31,
Revenue
2019
2018
2019
2018
Manufacturing
$
3,045
$
3,352
$
6,362
$
6,989
Testing services
3,887
4,393
8,277
8,830
Distribution
2,014
1,916
4,113
3,860
Real Estate
16
29
33
56
8,962
9,690
18,785
19,735
Cost of Sales
Cost of manufactured products sold
2,383
2,646
4,938
5,503
Cost of testing services rendered
2,918
3,106
6,109
6,489
Cost of distribution
1,738
1,662
3,545
3,348
Cost of real estate
18
18
36
36
7,057
7,432
14,628
15,376
Gross Margin
1,905
2,258
4,157
4,359
Operating Expenses:
General and administrative
1,777
1,722
3,565
3,481
Selling
176
187
366
334
Research and development
125
122
201
194
Gain on disposal of property, plant and
equipment
--
--
(24
)
--
Total operating expenses
2,078
2,031
4,108
4,009
(Loss) Income from Operations
(173
)
227
49
350
Other Income (Expenses)
Interest expenses
(55
)
(98
)
(123
)
(176
)
Gain on sale of asset held for sale
1,172
--
1,172
--
Other income, net
40
49
150
92
Total other income (expenses)
1,157
(49
)
1,199
(84
)
Income from Continuing Operations before
Income Taxes
984
178
1,248
266
Income Tax (Expenses) Benefits
(120
)
124
(120
)
50
Income from Continuing Operations before
Non-controlling Interest, Net of Tax
864
302
1,128
316
Income (Loss) from Discontinued
Operations, Net of Tax
1
4
--
(4
)
NET INCOME
865
306
1,128
312
Less: Income (Loss) Attributable to
Non-controlling Interest
439
(42
)
429
(101
)
Net Income Attributable to Trio-Tech
International
426
348
699
413
Net Income Attributable to Trio-Tech
International:
Income from Continuing Operations, Net of
Tax
425
346
699
415
Income (Loss) from Discontinued
Operations, Net of Tax
1
2
--
(2
)
Net Income attributable to Trio-Tech
International
$
426
$
348
$
699
$
413
Basic Earnings per Share
$
0.12
$
0.09
$
0.19
$
0.11
Diluted Earnings per share
$
0.11
$
0.09
$
0.19
$
0.11
Weighted Average Shares Outstanding B
Basic
3,673
3,673
3,673
3,673
Weighted Average Shares Outstanding B
Diluted
3,725
3,781
3,706
3,815
TRIO-TECH INTERNATIONAL AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
OPERATIONS AND COMPREHENSIVE INCOME
UNAUDITED (IN THOUSANDS, EXCEPT
EARNINGS PER SHARE)
Three Months Ended
Six Months Ended
December 31,
December 31,
2019
2018
2019
2018
Comprehensive Income Attributable to
Trio-Tech International Common Shareholders:
Net income
$
865
$
306
$
1,128
$
312
Foreign Currency Translation, Net of
Tax
525
(51
)
(38
)
(590
)
Comprehensive Income (Loss)
1,390
255
1,090
(278
)
Less: Comprehensive Income (Loss)
Attributable to Non-controlling Interest
431
(57
)
440
(192
)
Comprehensive Income (Loss) Attributable
to Trio-Tech International Common Shareholders
$
959
$
312
$
650
$
(86
)
TRIO-TECH INTERNATIONAL AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(IN THOUSANDS, EXCEPT NUMBER OF
SHARES)
Dec. 31,
Jun. 30,
2019
2019
ASSETS
(unaudited)
CURRENT ASSETS:
Cash and cash equivalents
$
4,743
$
4,863
Short-term deposits
6,888
4,144
Trade accounts receivable, net
6,937
7,113
Other receivables
752
817
Inventories, net
2,182
2,427
Prepaid expenses and other current
assets
330
287
Assets held for sale
--
89
Total current assets
21,832
19,740
Deferred tax assets
421
390
Investment properties, net
734
782
Property, plant and equipment, net
11,651
12,159
Operating lease right-of-use assets
475
--
Other assets
1,626
1,750
Restricted term deposits
1,716
1,706
Total non-current assets
16,623
16,787
TOTAL ASSETS
$
38,455
$
36,527
LIABILITIES AND SHAREHOLDERS’
EQUITY
CURRENT LIABILITIES:
Lines of credit
$
810
$
187
Accounts payable
3,565
3,272
Accrued expenses
3,176
3,486
Income taxes payable
395
417
Current portion of bank loans payable
422
488
Current portion of finance leases
286
283
Current portion of operating leases
343
--
Total current liabilities
8,997
8,133
Bank loans payable, net of current
portion
2,127
2,292
Finance leases, net of current portion
570
442
Operating leases, net of current
portion
134
--
Deferred tax liabilities
315
327
Income taxes payable
430
439
Other non-current liabilities
37
33
Total non-current liabilities
3,613
3,533
TOTAL LIABILITIES
12,610
11,666
EQUITY
TRIO-TECH INTERNATIONAL'S SHAREHOLDERS'
EQUITY:
Common stock, no par value, 15,000,000
shares authorized; 3,673,055 issued and outstanding at December 31,
2019 and June 30, 2019
11,424
11,424
Paid-in capital
3,319
3,305
Accumulated retained earnings
7,769
7,070
Accumulated other comprehensive
gain-translation adjustments
1,818
1,867
Total Trio-Tech International
shareholders' equity
24,330
23,666
Non-controlling interest
1,515
1,195
TOTAL EQUITY
25,845
24,861
TOTAL LIABILITIES AND EQUITY
$
38,444
$
36,527
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version on businesswire.com: https://www.businesswire.com/news/home/20200213005266/en/
Company Contact: A. Charles Wilson Chairman (818)
787-7000
Investor Contact: Berkman Associates (310) 927-3108
info@BerkmanAssociates.com
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