NEW YORK, May 21, 2015 /PRNewswire/ -- Global Sources Ltd.
(NASDAQ: GSOL) reported financial results for the first quarter
ended March 31, 2015.
Global Sources' executive chairman, Merle A. Hinrich, said, "Our first quarter
results reflect the shift in timing of our SIMM machinery
shows for the mainland China
domestic market from the first quarter of 2014 to the second
quarter of 2015. In April, we held our export-focused shows,
including Global Sources Electronics, the world's largest
electronics sourcing trade show featuring a total of more than
5,500 booths. The first phase included a wide range of electronics
for home, office, auto and security products as well as electronic
components. The second phase, Mobile Electronics, featured
smartphones, tablets, drones, wearables and accessories and was an
even greater success than its inaugural event in October 2014, with growth in both booths and
attendance.
"Over the past 10 years, we have focused on attracting
quality-focused, innovative electronics suppliers from mainland
China and across Asia and this has drawn the world's top buyers
to our events. As a result, our electronics show has gained a
reputation as a place to discover the most cutting-edge electronics
products coming out of the region."
Financial highlights -- First quarter: 2015 compared to
2014
- Revenue was $22.2 million, as
compared to $34.5 million.
- Online revenue was $17.9 million,
as compared to $21.3 million.
- Exhibitions revenue was $0.3
million, as compared to $8.9
million.
- Print revenue was $2.1 million,
as compared to $2.6 million.
- The company recorded a foreign exchange loss of $0.3 million due to the devaluation of the yuan
during the first quarter of 2015.
- IFRS net loss was $2.1 million,
or $0.07 per diluted share, as
compared to first quarter 2014 IFRS net income of $0.1 million, or $0.00 per diluted share.
- Non-IFRS net loss was $1.4
million, or $0.05 per diluted
share, as compared to Non-IFRS net income of $0.6 million, or $0.02 per diluted share, for the first quarter of
2014.
- Adjusted EBITDA was $0.02
million, as compared to $5.9
million for the first quarter of 2014.
- Total deferred income and customer prepayments were
$114.8 million as at March 31, 2015, as compared to $113.5 million as at March
31, 2014.
Global Sources' CFO, Connie Lai,
stated: "The financial reporting timeframe for our SIMM
machinery shows moved from the first quarter of 2015 to the second
quarter of 2015 given the show's end date of April 2. The company maintains a strong balance
sheet with positive cash flow, a cash balance of $103.6 million and no debt."
Financial expectations for the first half of 2015 under
IFRS
The company's guidance for the first half of 2015 ending
June 30, 2015 follows.
- Revenue is now expected to be at the low-end of the previously
guided range of $90.0 million to $92.0
million, as compared to $92.8
million for the first half of 2014.
- IFRS EPS is expected to be in the range of $0.15 to $0.19, as compared to $0.20 per diluted share in the first half of
2014. SBC and the amortization of intangibles as it relates to
certain equity compensation plans are estimated to be an expense of
$0.04 per diluted share for the first
half of 2015.
- Non-IFRS EPS is expected to be in the range of $0.19 to $0.23, as compared to $0.28 per diluted share for the same period in
2014.
- Adjusted EBITDA is expected to be between $12.9 million and $14.1 million, as compared to
$17.7 million in the first half of
2014.
Recent Corporate Highlights
- Launched five new vertically specialized websites: Fashion
Accessories & Footwear; Fashion Apparel &
Fabrics; Gifts & Premiums; Hardware; and
Home Products.
- China Sourcing Fairs were held in April 2015 at Hong
Kong's AsiaWorld-Expo. The spring shows had more than 7,600
booths. Total attendance exceeded 77,300 and included buyers from
more than 150 countries and territories.
- Held the Shenzhen
International Machinery Manufacturing Industry Exhibition and
its related shows, known as the SIMM machinery shows,
March 30-April 2, 2015.
- Launched an enhanced version of Mobile Electronics plus
three new vertically specialized websites for Consumer
Electronics, Security Products and Electronic
Components.
- Private Sourcing Events were held from January 2015 through March
2015 for more than 60 sourcing teams from very large buying
organizations including Carrefour, Coppel, Dick Smith, El Corte Ingles, Gloria Jeans, LPP, Max
Mara, Shop Direct, The Source, William E. Connor & Associates and others.
These events created more than 370 high-quality, one-on-one selling
opportunities for Global Sources suppliers.
Conference call for Global Sources first quarter 2015
earnings
Executive chairman Merle A.
Hinrich and CFO Connie Lai
are scheduled to conduct a conference call at 8:00 a.m. ET on May 21,
2015 (8:00 p.m. on
May 21, 2015 in Hong Kong) to review these results in more
detail. Investors in the United
States may participate in the call by dialing (888)
221-3881, and non-Hong Kong
international participants may dial (1-913) 312-1476. Investors in
Hong Kong may participate by
dialing (852) 3008-0382. The conference ID is 8963600 and
participants are encouraged to dial 10 minutes prior to the call to
prevent a delay in joining. A live webcast of the conference call
is scheduled to be available on Global Sources' corporate site at
http://www.investor.globalsources.com.
For those who cannot listen to the live broadcast, a webcast
replay of the call is scheduled to be available on the company's
corporate site for 30 days. A telephone replay of the call is also
scheduled to be available through May 28,
2015. To listen to the telephone replay dial (888) 203-1112
or dial (1-719) 457-0820 outside the
United States, and enter pass code 8963600. For those in the
Hong Kong area, the replay dial-in
number is (800) 901-108, and the pass code is 8963600.
About Global Sources
Global Sources is a leading business-to-business media company
and a primary facilitator of trade with Greater China.
The core business facilitates trade between Asia and the world using English-language
media such as online marketplaces (GlobalSources.com), print and
digital magazines, sourcing research reports, private sourcing
events, and trade shows.
More than 1 million international buyers, including 95 of the
world's top 100 retailers, use these services to obtain product and
company information to help them source more profitably from
overseas supply markets. These services also provide suppliers with
integrated marketing solutions to build corporate image, generate
sales leads and win orders from buyers in more than 240 countries
and territories.
Global Sources' other businesses provide Chinese-language media
to companies selling to and within Greater China. These services include online
web sites, print and digital magazines, seminars and trade shows.
In mainland China, Global Sources
has a network of more than 30 office locations and a community of
more than 5 million registered online users and magazine readers of
its Chinese-language media.
Now in its fifth decade, Global Sources has been publicly listed
on the NASDAQ since 2000.
Global Sources' non-IFRS metrics
Management believes non-IFRS metrics are useful measures of
operations and provides IFRS to non-IFRS reconciliation tables at
the end of this press release. Global Sources defines non-IFRS net
income as net income excluding non-cash, SBC expense or credit,
amortization of intangibles as it relates to certain equity
compensation plans, profits or losses on acquisitions and
investments net of transaction costs and related tax expenses,
and/or impairment charges net of related taxes, for all historical
and future references to non-IFRS metrics. Non-IFRS EPS is defined
as non-IFRS net income divided by the weighted average of diluted
common shares outstanding. Adjusted EBITDA is defined as earnings
before interest, taxes, depreciation, amortization, stock-based
compensation, impairment of goodwill and intangible assets, and
profits or losses on acquisitions and investments net of
transaction costs and related tax expenses.
Safe Harbor Statement
This news release contains forward-looking statements within the
meaning of Section 27-A of the Securities Act of 1933, as amended
and Section 21-E of the Securities Exchange Act of 1934, as
amended. The company's actual results could differ materially from
those set forth in the forward-looking statements as a result of
the risks associated with the company's business, changes in
general economic conditions, and changes in the assumptions used in
making such forward-looking statements.
- Tables Follow -
GLOBAL SOURCES
LTD. AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS
(In U.S. Dollars
Thousands, Except Number of Shares and Per Share
Data)
|
|
|
|
As at March
31,
|
|
As at December
31,
|
|
|
2015
|
|
2014
|
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
92,802
|
|
$
|
90,223
|
Term deposits with
banks
|
|
6,676
|
|
4,285
|
Financial assets,
available-for-sale
|
|
4,155
|
|
3,952
|
Accounts receivables,
net
|
|
1,868
|
|
2,269
|
Receivables from
sales representatives
|
|
13,568
|
|
7,900
|
Inventories
|
|
180
|
|
154
|
Prepaid expenses and
other current assets
|
|
25,597
|
|
17,027
|
|
|
144,846
|
|
125,810
|
Non-current
assets
|
|
|
|
|
Property and
equipment
|
|
62,316
|
|
63,519
|
Investment
properties
|
|
85,091
|
|
85,546
|
Intangible
assets
|
|
36,750
|
|
37,732
|
Long term
investment
|
|
100
|
|
100
|
Deferred income tax
assets
|
|
253
|
|
196
|
Other non-current
assets
|
|
1,611
|
|
1,108
|
|
|
186,121
|
|
188,201
|
Total
assets
|
|
$
|
330,967
|
|
$
|
314,011
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts
payable
|
|
$
|
9,373
|
|
$
|
9,418
|
Deferred income and
customer prepayments
|
|
108,713
|
|
84,869
|
Accrued
liabilities
|
|
16,262
|
|
19,100
|
Income tax
liabilities
|
|
784
|
|
3,848
|
|
|
135,132
|
|
117,235
|
Non-current
liabilities
|
|
|
|
|
Accounts payable
|
|
290
|
|
889
|
Deferred income and
customer prepayments
|
|
6,116
|
|
3,971
|
Deferred income tax
liabilities
|
|
6,583
|
|
6,842
|
|
|
12,989
|
|
11,702
|
Total
liabilities
|
|
148,121
|
|
128,937
|
|
|
|
|
|
Equity attributable
to Company's shareholders
|
|
|
|
|
Common
shares
|
|
532
|
|
529
|
Treasury
shares
|
|
(200,089)
|
|
(200,089)
|
Other
reserves
|
|
161,676
|
|
161,242
|
Retained
earnings
|
|
207,797
|
|
209,924
|
Total Company
shareholders' equity
|
|
169,916
|
|
171,606
|
Non-controlling
interests
|
|
12,930
|
|
13,468
|
Total
equity
|
|
$
|
182,846
|
|
$
|
185,074
|
Total liabilities
and equity
|
|
$
|
330,967
|
|
$
|
314,011
|
|
|
|
|
|
GLOBAL SOURCES
LTD. AND SUBSIDIARIES
CONSOLIDATED
INCOME STATEMENTS
(In U.S. Dollars
Thousands, Except Number of Shares and Per Share
Data)
|
|
|
|
Three months ended
March 31,
|
|
|
2015
|
|
2014
|
|
|
(Unaudited)
|
|
(Unaudited)
|
Revenue
|
|
|
|
|
|
|
Online and
other media services (Note 1)
|
|
$
|
20,054
|
|
$
|
23,842
|
Exhibitions
|
|
|
260
|
|
|
8,860
|
Miscellaneous
|
|
|
1,889
|
|
|
1,768
|
|
|
|
22,203
|
|
|
34,470
|
Operating
Expenses:
|
|
|
|
|
|
|
Sales (Note
2)
|
|
|
6,456
|
|
|
9,046
|
Event
production
|
|
|
98
|
|
|
1,804
|
Community and
content (Note 2)
|
|
|
4,562
|
|
|
5,443
|
General and
administrative (Note 2 & 3)
|
|
|
11,002
|
|
|
14,128
|
Information
and technology (Note 2)
|
|
|
3,297
|
|
|
3,191
|
Total Operating
Expenses
|
|
|
25,415
|
|
|
33,612
|
Profit / (loss)
from Operations
|
|
|
(3,212)
|
|
|
858
|
Interest
income
|
|
|
312
|
|
|
417
|
Gain on sale
of available-for-sale securities
|
|
|
188
|
|
|
10
|
Interest
expenses
|
|
|
(46)
|
|
|
(47)
|
Profit / (loss)
before income taxes
|
|
|
(2,758)
|
|
|
1,238
|
Income tax credit /
(expense)
|
|
|
171
|
|
|
(355)
|
Net profit /
(loss)
|
|
$
|
(2,587)
|
|
$
|
883
|
Net (profit) / loss
attributable to non-controlling interests
|
|
|
460
|
|
|
(738)
|
Net profit /
(loss) attributable to the Company's shareholders
|
|
$
|
(2,127)
|
|
$
|
145
|
Diluted net profit
/ (loss) per share attributable to the
Company's shareholders
|
|
$
|
(0.07)
|
|
|
*
|
Shares used in
diluted net profit / (loss) per share
calculations
|
|
|
31,361,130
|
|
|
36,174,507
|
|
* Basic and diluted
net profit per share attributable to the Company's shareholders is
less than $0.01
|
|
Note: 1. Online and
other media services consists of:
|
|
|
Three months ended
March 31,
|
|
|
2015
|
|
2014
|
|
|
(Unaudited)
|
|
(Unaudited)
|
Online
services
|
|
$
|
17,917
|
|
$
|
21,252
|
Print
services
|
|
|
2,137
|
|
|
2,590
|
|
|
$
|
20,054
|
|
$
|
23,842
|
|
Note: 2. Non-cash
compensation expenses associated with the several equity
compensation plans and
Global Sources
Directors Share Grant Award Plan included under various categories
of expenses are as follows:
|
|
|
|
Three months ended
March 31,
|
|
|
2015
|
|
2014
|
|
|
(Unaudited)
|
|
(Unaudited)
|
Sales
|
|
$
|
37
|
|
$
|
7
|
Community and
content
|
|
|
10
|
|
|
(59)
|
General and
administrative
|
|
|
364
|
|
|
183
|
Information
and technology
|
|
|
77
|
|
|
70
|
|
|
$
|
488
|
|
$
|
201
|
|
Note: 3. General and
administrative expenses consist of:
|
|
|
|
Three months ended
March 31,
|
|
|
2015
|
|
2014
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
General and
administrative expenses before amortization of
intangible assets and foreign exchange
losses
|
|
$
|
9,412
|
|
$
|
9,026
|
Amortization
of intangible assets
|
|
|
1,273
|
|
|
3,461
|
Foreign
exchange losses
|
|
|
317
|
|
|
1,641
|
|
|
$
|
11,002
|
|
$
|
14,128
|
GLOBAL SOURCES
LTD. AND SUBSIDIARIES
ACTUAL IFRS to
NON-IFRS RECONCILIATION
(In U.S. Dollars
Thousands, Except Number of Shares and Per Share
Data)
|
|
|
|
|
|
|
|
|
|
Three months ended
March 31,
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
IFRS diluted net profit
/ (loss) per share
|
|
$
|
(0.07)
|
|
*
|
|
|
|
|
|
|
IFRS Net Profit /
(Loss)
|
|
$
|
(2,127)
|
|
$
|
145
|
|
|
|
|
|
|
Non-cash stock based compensation expense (Note 1)
|
|
488
|
|
201
|
|
|
|
|
|
|
Amortization of
intangibles (Note 2)
|
|
211
|
|
253
|
|
|
|
|
|
|
Non-IFRS Net
Profit / (Loss)
|
|
$
|
(1,428)
|
|
$
|
599
|
|
|
|
|
|
|
Non-IFRS diluted
net profit / (loss) per share
|
|
$
|
(0.05)
|
|
$
|
0.02
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shares used in
non-IFRS diluted net profit / (loss) per
share calculations
|
|
31,361,130
|
|
36,174,507
|
|
|
|
|
|
|
*
Basic and diluted net profit per share attributable to the Company's shareholders is less than $0.01
|
|
Notes:
|
|
|
(1) Actual SBC is
calculated based on actual share price on date of the
awards.
|
(2) Amortization of
intangible assets relating to certain non-compete
agreements.
|
GLOBAL SOURCES
LTD. AND SUBSIDIARIES
|
ADJUSTED EBITDA
RECONCILIATION
|
(In U.S. Dollars
Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
March 31,
|
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
IFRS profit / (loss)
from operations
|
|
$
|
(3,212)
|
|
$
|
858
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
2,745
|
|
|
4,846
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
(467)
|
|
|
5,704
|
|
|
|
|
|
|
|
|
|
|
Non-cash stock based
compensation expense
|
|
|
488
|
|
|
201
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
|
21
|
|
$
|
5,905
|
|
GLOBAL SOURCES
LTD. AND SUBSIDIARIES
|
GUIDANCE IFRS to
NON-IFRS RECONCILIATION
|
(In U.S. Dollars
Million, Except Number of Shares and Per Share Data)
|
|
|
|
|
|
|
|
|
|
GUIDANCE
|
|
ACTUAL
|
|
|
Six
months ended June 30,
|
|
Six
months
ended June 30,
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
Revenue
|
|
$90.0
|
to
|
$92.0
|
|
$92.8
|
|
|
|
|
|
|
|
IFRS EPS
|
|
$0.15
|
to
|
$0.19
|
|
$0.20
|
|
|
|
|
|
|
|
Non-cash stock based compensation expense (Note 1)
|
|
$0.03
|
|
$0.03
|
|
$0.02
|
|
|
|
|
|
|
|
Amortization of
intangibles (Note 2)
|
|
$0.01
|
|
$0.01
|
|
$0.01
|
|
|
|
|
|
|
|
Impairment of
goodwill and intangibles
|
|
-
|
|
-
|
|
$0.05
|
|
|
|
|
|
|
|
Non-IFRS diluted
net income per share
|
|
$0.19
|
to
|
$0.23
|
|
$0.28
|
|
|
|
|
|
|
|
Total shares used in
non-IFRS diluted net income per share
calculations
|
|
31,740,000
|
|
31,740,000
|
|
35,672,551
|
|
|
|
|
|
|
|
Notes:
|
|
|
|
|
|
|
(1) Actual SBC is
calculated based on actual share price on date of the
awards.
|
(2) Amortization of
intangible assets relating to certain non-compete
agreements.
|
For financial matrix, please
visit: http://photos.prnasia.com/prnk/20150521/8521503262
Press Contact in
Asia
|
Investor Contact
in Asia
|
Camellia
So
|
Connie Lai
|
Tel: (852)
2555-5021
|
Tel: (852)
2555-4747
|
e-mail:
cso@globalsources.com
|
e-mail:
investor@globalsources.com
|
|
|
Press Contact in
U.S.
|
Investor Contact
in U.S.
|
Brendon
Ouimette
|
Cathy
Mattison
|
Tel: (1-480)
664-8309
|
LHA
|
e-mail:
bouimette@globalsources.com
|
Tel: (1-415)
433-3777
|
|
e-mail:
cmattison@lhai.com
|
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SOURCE Global Sources