johnsyn
12 years ago
finances look better and they have declared a dividend, much smaller, but it's back
Selected Consolidated Financial Information
(In thousands, except for per share data):
2008 2009 2010 2011 2012
Statement of Operations
Net sales $33,164 $33,729 $21,739 $31,147 $25,370
Gross profit 5,074 6,704 4,700 6,553 5,121
Operating (loss) income (2,277) 881 331 1,726 230
Net (loss) income attributable to
Highway Holdings Limited
shareholders
(1,921) 768 420 1,650 184
Per share amounts
Net (loss) income>basic $(0.50) $0.21 $0.11 $0.44 $0.05
Net (loss) income>diluted (0.50) 0.20 0.11 0.44 0.05
Dividend declared & paid (1) 0.035 >> 0.03 0.24 0.20
Weighted average number of
shares:
Basic 3,810 3,744 3,755 3,765 3,778
Diluted 3,810 3,774 3,758 3,777 3,788
Dividend declared (1) 132 >> 113 905 756
johnsyn
12 years ago
Highway Holdings Reports Fiscal 2012 Fourth Quarter/ Year-End Results
Fri June 29, 2012 8:00 AM | about: HIHO HONG KONG, June 29, 2012 (GLOBE NEWSWIRE) -- Highway Holdings Limited (HIHO) today reported results for the fourth quarter and fiscal year ended March 31, 2012, reflecting a modest profit despite the impact of global economic factors on sales and certain one-time charges related to its transition to a Wholly Foreign Owned Entity (WFOE) registered company structure in China.
Net income for the fiscal fourth quarter was $92,000, or $0.02 per diluted share, compared with $789,000, or $0.21 per diluted share, a year earlier. Net sales for the same period were $5.9 million compared with $7.8 million a year earlier.
Net income for fiscal year 2012 was $184,000, or $0.05 per diluted share, compared with $1.65 million or $0.44 per diluted share, in fiscal 2011. Net sales for fiscal 2012 were $25.4 million compared with $31.1 million a year ago.
"Fiscal 2012 was a challenging period for the company due, in large part, to global issues that impacted our customers and net sales. This situation was directly affected by the inflationary environment in China -- particularly higher labor costs and the significant increase in operating costs. Fortunately our financial position remains strong and the company's established customers continue their long-term relationships. In order to further improve our operating efficiency, we are in the process of shifting some of our labor intensive work, which for economic reasons cannot be automated, to a lower-cost assembly supplier arrangement outside of China as a proactive initiative," said Roland Kohl, president and chief executive officer of Highway Holdings.
Gross profit as a percentage of net sales for fiscal 2012 was 20.2 percent compared with 21 percent a year earlier, due to high labor costs and the increased cost of operating in China following the reorganization to a WFOE registered company. Ongoing cost-savings initiatives and increased utilization of automation were not sufficient to offset significant increases in worker salaries throughout Southern China. As a result of lower net sales and decreased gross margins for fiscal 2012, gross profit was $5.1 million compared with $6.5 million in fiscal 2011.
Selling, general and administrative expenses for the fourth quarter increased slightly and remained essentially unchanged for the full year compared with the same periods a year ago, despite lower sales and an overall reduction in the number of employees dedicated to selling and administration services. SG&A expenses did not decrease proportionally to lower net sales, due to certain one-time and ongoing costs related to the company's WFOE reorganization. Selling, general and administrative expense as a percentage of net sales increased to 19.3 percent in fiscal 2012 from 15.5 percent in fiscal 2011.
Operating income for the 2012 fiscal fourth quarter was $178,000 compared with $775,000 in the same period a year earlier. For the full 2012 fiscal year, operating income was $230,000 compared with $1.7 million, due to reduced sales and increased operating costs in China.
The fluctuation of the Euro/U.S. dollar exchange rates have, in the past, resulted in significant currency exchange gains and losses. For fiscal 2012, the company realized a currency exchange gain of $126,000 compared with a currency exchange loss of $7,000 a year ago. The company does not undertake any currency hedging transactions. The company does, however, have agreements with certain of its European customers that limit the risk of currency fluctuations, and the company is increasingly denominating its European sales in U.S. dollars rather than Euros.
Kohl noted that the company's balance sheet remains strong with total current assets at March 31, 2012 of $14.5 million; working capital of $10.2 million; and long-term loans, net of the current portion, of $112,000. The company's current ratio was 3.38:1 at March 31, 2012 compared with 2.70 at March 31, 2011.
Kohl highlighted the company's cash position of $1.47 per diluted share and total shareholders' equity of $12 million at March 31, 2012 compared with $12.6 million a year earlier representing approximately $3.32 per diluted share.
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.
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)
Three Months Ended Year Ended
March 31, March 31,
(Unaudited) (Audited)
2012 2011 2012 2011
Net sales $5,976 $7,862 $25,370 $31,147
Cost of sales 4,631 6,092 20,249 24,594
Gross profit 1,345 1,770 5,121 6,553
Selling, general and administrative expenses 1,167 995 4,891 4,827
Operating income 178 775 230 1,726
Non-operating items
Interest expenses (2) (17) (24) (57)
Exchange (loss) gain, net 49 62 126 (7)
Interest income 1 1 4 3
Other income (8) 14 34 86
Total non-operating income (expense) 40 60 140 25
- -
Income before income tax and non-controlling Interest 218 835 370 1,751
Income taxes credit (expense) (126) (46) (186) (123)
Net Income before non-controlling interests 92 789 184 1,628
Loss attributable to non-controlling Interests - - - 22
Net Income attributable to Highway Holdings Limited shareholders $92 $789 $184 $1,650
Net Income attributable to Highway Holdings Limited $0.02 $0.21 $0.05 $0.44
Basic $0.02 $0.21 $0.05 $0.44
Diluted
Weighted average number of shares
Basic 3,777,850 3,765,276 3,777,850 3,765,276
Diluted 3,788,302 3,777,696 3,788,302 3,776,696
HIGHWAY HOLDINGS LIMITED AND SUBSIDIARIES
Consolidated Balance Sheet
(In thousands, except per share data)
31-Mar 31-Mar
2012 2011
Current assets:
Cash and cash equivalents $5,575 $6,864
Restricted cash 643 643
Accounts receivable, net of doubtful accounts 3,724 4,797
Inventories 3,970 4,236
Amount due from an equity method investee 174 0
Prepaid expenses and other current assets 424 417
Total current assets 14,510 16,957
Property, plant and equipment, (net) 2,027 2,411
Deposit for purchase of property, plant and equipment 42 -
Investments in equity investees - 31
Total assets $16,579 $19,399
Current liabilities:
Accounts payable $2,547 $3,581
Short-term borrowings - 280
Long-term loans-current portion 262 253
Obligations under capital leases current portion 3 41
Accrual expenses and other liabilities 1,324 2,057
Income tax payable 153 71
Total current liabilities 4,289 6,283
Obligations under capital leases-net of current portion 0 3
Deferred income taxes 180 173
Long-term loans net of current portion 112 375
Total liabilities 4,581 6,834
Shareholders' equity:
Common shares, $0.01 par value 38 38
Additional paid-in capital 11,340 11,335
Retained earnings 634 1,206
Treasury shares, at cost 5,049 shares as of March 31, 2011 and 2012 (14) (14)
Total Highway Holdings Limited shareholders' equity 11,998 12,565
Non-controlling interest - -
Total Equity 11,998 12,565
Total liabilities and shareholders' equity $16,579 $19,399
CONTACT: Gary S. Maier
Maier & Company, Inc.
(310) 442-9852Source: Highway Holdings Limited 2012 GlobeNewswire, Inc.
johnsyn
13 years ago
Highway Holdings Reports (DISAPPOINTING) Fiscal 2012 Third Quarter Results
Highway Holdings Limited (MM) (NASDAQ:HIHO)
Today : Wednesday 15 February 2012
Highway Holdings Limited (Nasdaq:HIHO) today reported results for its fiscal third quarter ended December 31, 2011.
Net income for the fiscal 2012 third quarter was $75,000, or $0.02 per diluted share, compared with $407,000, or $0.11 per diluted share, in the third quarter a year earlier. Net sales for the same period were $7.3 million compared with $9.0 million a year ago.
Net income for the nine-month period of fiscal 2012 was $92,000, or $0.02 per diluted share, compared with $861,000, or $0.23 per diluted share, a year earlier. Net sales for the nine months were $19.4 million compared with $23.3 million in the comparable period a year earlier.
"Results for both the last quarter and the most recent nine-month period were impacted by a continued challenging business environment, with less revenue and higher manufacturing expenses due to increased labor costs in China," said Roland Kohl, chairman, president and chief executive officer of Highway Holdings.
Kohl noted that net sales in the third quarter were impacted by a reduction in orders from two of the company's metal component customers, which represents approximately $1.0 million less compared with the same period a year earlier. The company expects to start making up for this lost business beginning in the current fiscal fourth quarter, as presently new tooling is being made for the production of new metal components for these customers.
Sales during the third quarter from the company's mobile phone case business were approximately $250,000 less than a year ago. These reductions were due to a decision by one of Highway Holdings' customers to relocate the majority of the business to another manufacturer in Mexico in order to save on transportation costs and reduce product delivery time, particularly to customers in North America.
Gross profit for the three- and nine-month periods ended December 31, 2011 decreased to 18.2 percent and 19.5 percent of net sales, respectively, compared with 19.5 percent and 20.5 percent, respectively, a year earlier. Gross profit for the nine-month period was impacted by an approximate 16 percent increase in labor costs and an 18.4 percent decrease in sales turnover compared with the same period last year. The company's operating income for the three-month period ended December 31, 2011 was $6,000 compared with $481,000 in the prior year. Operating income for the nine months was $52,000 compared with $951,000 a year earlier.
Kohl noted that labor force shortages during the past months and a high local inflation rate put further pressure on labor costs and consequently on operating margins, which could lead to even higher customer pricing. He emphasized that the company's ongoing focus on increasing operating efficiency through automation and new production methods can only partially absorb increased payroll expenses. Kohl highlighted the dramatic increase in Chinese wages -- particularly during the last two years with statutory minimum salaries in China increasing by about 67 percent and market wage rates climbing to about 100 percent due to competitive wage pressure in Shenzhen. "If the present labor shortage continues, wages may increase even further in the foreseeable future," Kohl added.
As a result of such extreme increases in labor costs, the company, therefore, is also exploring the possibility of outsourcing some of the company's very labor intensive assembly work to low-labor cost countries under its direct management.
Selling, general and administrative expenses were reduced by $108,000 for the nine-month period, but remained almost the same for the three-month period despite the lower turnover. Selling, general and administrative costs as a percentage of net sales were higher in both the three- and nine-month periods ended December 31, 2011 -- reflecting the impact of decreased sales turnover, increased staff salaries due to the inflationary situation and increased costs caused by the conversion to a wholly owned foreign enterprise (WFOE) operating structure, which is ongoing and only expected to be fully completed by the end of 2012.
Currency exchange rates positively affected the company's net income for the nine-month period ended December 31, 2011. During the nine-month period in 2011, the company reported a $78,000 currency exchange gain compared with a $69,000 exchange loss in 2010.
Kohl noted the company's balance sheet remains strong. The company's total cash and restricted cash position was $7.8 million at December 31, 2011, or $2.05 per share, after total dividend payments of $0.44 during the past 18 months. The company's current ratio was 2.68:1 at December 31, 2011. The total cash and restricted cash exceeded all current and long term liabilities combined by $1.8 million.
"The company's strategic focus is to continue our efforts to further upgrade Highway Holdings' facilities in China into a much smaller high-tech operation – utilizing automation and becoming the premier model for modern and highly efficient manufacturing in China," Kohl said.
"The company is confident, despite the loss of assembly work to lower cost labor countries, that such activities eventually will benefit our operation, because such countries usually lack a strong supplier network for mechanical components. Such a situation may in fact provide significant new business opportunities," Kohl said.
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.
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.
CONTACT: Gary S. Maier
Maier & Company, Inc.
(310) 442-9852
johnsyn
13 years ago
Highway Holdings Establishes Marketing Alliance With Chinese Manufacturer
Highway Holdings Limited (MM) (NASDAQ:HIHO)
Today : Tuesday 31 January 2012
Highway Holdings Limited (Nasdaq:HIHO) today announced it has established a strategic marketing alliance with Hongtuo Precision Metalware Co., Limited, a Shenzhen, China-based company that is part of the Hot-Top Group. Terms were not disclosed.
"This new marketing alliance is intended to accelerate business opportunities within the local China market by capitalizing on Hongtuo Precision Metalware's extensive regional customer relationships and leveraging our high-tech and high-volume manufacturing capabilities -- which should be attractive to large local Chinese companies, particularly within the white goods, lighting fixture and stepping motor product industries," said Roland Kohl, chairman, president and chief executive officer of Highway Holdings.
Kohl noted that the conversion of the company's China-based operations to a wholly foreign owned enterprise (WFOE) structure from a subcontracting licensing arrangement in Southern China, as required by recently implemented local Chinese government regulations, now allows Highway Holdings to sell to local Chinese companies. Under the company's previous twenty-year business license arrangement in China, Highway Holdings was only permitted to export the products it manufactured.
About Hongtuo Precision Metalware Company Limited
Based in Shenzhen, Hongtuo Precision Metalware is an ISO9001:2000 certified supplier of metal and plastic molds and components utilized in photocopiers, various electronics and automotive applications. Additional information is available at www.ht199.com.
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. Additional information is available at www.Highwayholdings.com.
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.
CONTACT: Gary S. Maier
Maier & Company, Inc.
(310) 442-9852
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