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Press release content from Business Wire. The AP news staff was not involved in its creation.
PRESS RELEASE: Paid content from Business Wire
Press release content from Business Wire. The AP news staff was not involved in its creation.

Highway Holdings Reports Fiscal 2022 First Quarter Results

July 22, 2021 GMT

HONG KONG--(BUSINESS WIRE)--Jul 22, 2021--

Highway Holdings Limited (Nasdaq: HIHO) today reported results for its fiscal 2022 first quarter ended June 30, 2021.

Net sales for the fiscal first quarter increased approximately 46 percent to $3.0 million from $2.1 million a year earlier. Net income for the same period was $333,000, or $0.08 per diluted share, compared with a net loss of $223,000, or $0.06 per share, last year.

“Results for the fiscal 2022 first quarter benefitted from the carryover of orders that were delayed in the fiscal 2021 fourth quarter due to the global pandemic and other factors discussed in the company’s recently announced fiscal year-end results. While we remain cautious about the near-term consequences related to the global pandemic and supply chain issues impacting most industries, we are starting fiscal 2022 off on a solid foundation with excellent order demand,” said Roland Kohl, chairman, president and chief executive officer.

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Gross profit for the 2022 fiscal first quarter was $930,000 compared with $520,000 in the same period a year ago, with gross profit as a percentage of sales approximately 31 percent compared with 25 percent a year ago, representing a six percent improvement on a year-over-year basis.

Selling, general and administrative expense for the 2022 fiscal first quarter decreased by $113,000 – benefiting from some of the management salary reductions. As a percentage of net sales, SG&A expenses decreased to 21 percent from 35 percent, despite an almost 46 percent increase in sales.

The company realized a small currency exchange loss of $7,000 in the quarter compared with an exchange loss of $20,000 in the same period last year, primarily due to a stronger RMB during the first two months of the fiscal 2022 first quarter.

Kohl highlighted the company’s solid financial position, with cash and cash equivalents of $ 7.7 million – exceeding combined short- and long-term liabilities by $2.2 million. At June 30, 2021, the company had working capital of $7.9 million.

Total shareholders’ equity at June 30, 2021 was $10.1 million compared with $9.8 million as of March 31, 2021. The company’s current ratio at June 30, 2021 was 3.0 :1.

About Highway Holdings

Highway Holdings is an international manufacturer of a wide variety of high-quality parts and products for blue chip equipment manufacturers based primarily in Germany. Highway Holdings’ administrative office is located in Hong Kong and its manufacturing facilities are located in Yangon, Myanmar and Shenzhen, China.

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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, the impact of the worldwide COVID-19 pandemic, 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)

(Unaudited)

 

 

Quarter Ended

 

June 30

 

 

2021

 

 

 

2020

 

Net sales

$

2,998

 

 

$

2,057

 

Cost of sales

 

2,068

 

 

 

1,537

 

Gross profit

 

930

 

 

 

520

 

 

Selling, general and administrative expenses

 

 

 

617

 

 

 

 

 

 

730

 

 

Operating income/(loss)

 

313

 

 

 

(210

)

 

 

 

 

Non-operating income (expense):

 

 

 

 

 

 

 

Exchange (loss), net

 

(7

)

 

 

(20

)

Interest income

Gain/(loss) on disposal of asset

 

 

1

-

 

 

 

 

 

4

1

 

 

Other income (expense)

 

-

 

 

 

1

 

Total non-operating (expenses) income

 

(6

)

 

 

(14

)

 

 

 

 

Net income/(loss) before income taxes

 

307

 

 

 

(224

)

Income taxes

 

33

 

 

 

-

 

Net income/(loss)

 

340

 

 

 

(224

)

 

 

 

 

Less: net gain/(loss) attributable to non-controlling interests

 

7

 

 

 

(1

)

 

 

 

 

Net income/(loss) attributable to Highway Holdings Limited’s Shareholders

$

333

 

 

($

223

)

 

 

 

 

 

Net income/(loss) per share – Basic

$

0.08

 

 

($

0.06

)

Net income/(loss) per share – Diluted

$

0.08

 

 

($

0.06

)

Weighted average number of shares outstanding:

 

 

 

Basic

 

4,019

 

 

 

3,910

 

Diluted

4,160

 

 

3,910

 

 

 

 

HIGHWAY HOLDINGS LIMITED AND SUBSIDIARIES

Consolidated Balance Sheet

(In thousands, except per share data)

 

 

June 30

March 31

 

 

2021

 

 

2021

 

Current assets:

 

 

Cash and cash equivalents

$

7,691

 

$

7,757

 

Accounts receivable, net of doubtful accounts

 

1,752

 

 

973

 

Inventories

 

2,171

 

 

2,238

 

Prepaid expenses and other current assets

 

246

 

 

513

 

Total current assets

 

11,860

 

 

11,481

 

 

 

 

Property, plant and equipment, net

 

798

 

 

833

 

Operating lease right-of-use assets

 

2,562

 

 

2,795

 

Long-term deposits

 

285

 

 

282

 

Long-term loan receivable

 

95

 

 

95

 

Investments in equity method investees

 

-

 

 

-

 

Total assets

 

15,600

 

 

15,486

 

 

 

 

Current liabilities:

 

 

Accounts payable

$

885

 

$

653

 

Operating lease liabilities, current

 

822

 

 

821

 

Accrued expenses and other liabilities

 

2,249

 

 

2,347

 

Income tax payable

 

32

 

 

58

 

Dividend payable

 

5

 

 

85

 

Total current liabilities

 

3,993

 

 

3,964

 

 

 

 

Operating lease liabilities, non-current

 

929

 

 

1,142

 

Deferred income taxes

 

572

 

 

607

 

Total liabilities

 

5,494

 

 

5,713

 

 

 

 

Shareholders' equity:

 

 

Preferred shares, $0.01 par value

 

-

 

 

-

 

Common shares, $0.01 par value

 

40

 

 

40

 

Additional paid-in capital

 

11,731

 

 

11,709

 

Accumulated deficit

 

(1,708

)

 

(2,041

)

Accumulated other comprehensive income/(loss)

 

19

 

 

48

 

Non-controlling interest

 

24

 

 

17

 

Total shareholders' equity

 

10,106

 

 

9,773

 

 

 

 

Total liabilities and shareholders' equity

$

15,600

 

$

15,486

 

 

View source version on businesswire.com:https://www.businesswire.com/news/home/20210722005158/en/

CONTACT: Gary S. Maier

Maier & Company, Inc.

(310) 471-1288

KEYWORD: ASIA PACIFIC HONG KONG

INDUSTRY KEYWORD: MANUFACTURING OTHER MANUFACTURING STEEL ENGINEERING CHEMICALS/PLASTICS

SOURCE: Highway Holdings Limited

Copyright Business Wire 2021.

PUB: 07/22/2021 08:30 AM/DISC: 07/22/2021 08:32 AM

http://www.businesswire.com/news/home/20210722005158/en