TRT Trio Tech International

Fourth Quarter Net Income Increased to $0.19 Per Share Versus a Loss of $0.25 Per Share on 27% Revenue Gain

Trio-Tech International (NYSE MKT: TRT) today announced financial results for the fourth quarter and fiscal year ended June 30, 2022.

Fiscal 2022 Results

Driven by a 41% increase in testing services revenue and 103% increase in distribution revenue compared to fiscal 2021, Trio-Tech’s total revenue for the fiscal year ended June 30, 2022 increased 36% to $44,065,000 from $32,462,000 for fiscal 2021.

Fiscal 2022 gross margin increased 53% to $11,733,000, or 27% of revenue, compared to $7,670,000, or 24% of revenue for fiscal 2021.

Total operating expenses declined to 21% of revenue from 24% of revenue for fiscal 2021, contributing to an increase in operating income to $2,353,000, compared to an operating loss of $61,000 for fiscal 2021.

Net income increased to $2,395,000, or $0.57 per diluted share. This compares to a net loss for fiscal 2021 of $591,000, or $0.15 per share, which included a $1,580,000 impairment related to the Singapore Theme Resort Project.

Record Backlog

Reflecting a 38% and 51% increase in manufacturing and testing backlog respectively, Trio-Tech’s total backlog at June 30, 2022 increased 29% to a record $17,463,000 compared to $13,503,000 at June 30, 2021.

Balance Sheet Highlights

Cash and cash equivalents at June 30, 2022 increased 32% to $7,698,000 compared to $5,836,000 at June 30, 2021. Shareholders' equity at June 30, 2022 increased to $27,874,000, or $6.85 per outstanding share, including cash and cash equivalents of $7,698,000. This compares to shareholders’ equity at June 30, 2021 of $25,634,000, or $6.55 per outstanding share, including cash and cash equivalents of $5,836,000. There were approximately 4,071,680 and 3,913,055 common shares outstanding at June 30, 2022 and June 30, 2021, respectively.

Fourth Quarter Results

Revenue for the fourth quarter of fiscal 2022 increased 27% to $11,834,000 from $9,308,000 for the fourth quarter of fiscal 2021, reflecting a 44% increase in testing services revenue and an 82% increase in distribution revenue. Manufacturing revenue declined 13% for the quarter but increased 3% for the fiscal year as a whole.

Gross margin increased 44% to $3,190,000, or 27% of revenue, compared to $2,222,000, or 24% of revenue, for the fourth quarter of fiscal 2021. Income from operations increased 138% to $857,000 compared to income from operations of $359,000 for the fourth quarter last year.

Net income for the fourth quarter of fiscal 2022 increased to $790,000, or $0.19 per diluted share. For the fourth quarter of fiscal 2021, Trio-Tech reported a net loss of $996,000, or $0.25 per share, which included the one-time, non-cash impairment charge mentioned above.

CEO Comments

S.W. Yong, Trio-Tech's CEO, said, “We delivered significant gains in revenue, gross margin, operating and net income in fiscal 2022, and our strong backlog, demonstrated by significant gains in manufacturing and strong orders for testing services, gives us a solid foundation as we begin the new fiscal year. Supply chain performance has shown improvements, and positive feedback regarding our customers’ business expectations has been steadily increasing.”

About Trio‑Tech

Established in 1958, Trio-Tech International is located in Van Nuys, California, with its Principal Executive Office and regional headquarter in Singapore. Trio-Tech International is a diversified business group with interests in semiconductor testing services, manufacturing and distribution of semiconductor testing equipment, and real estate. Our subsidiary locations include Tianjin, Suzhou, Chongqing in China, as well as Kuala Lumpur Malaysia and Bangkok Thailand. Further information about Trio-Tech's semiconductor products and services can be obtained from the Company's Web site at www.triotech.com and www.universalfareast.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; public health issues related to the COVID-19 pandemic; trade tension between U.S. and China and other economic, financial and regulatory factors beyond the Company's control. Other than statements of historical fact, all statements made in this release 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. Many of these risks and uncertainties are beyond the Company's control. Reference is made to the discussion of risk factors detailed in the Company's filings with the Securities and Exchange Commission including its reports on Form 10-K and 10-Q. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made.

TRIO‑TECH INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

AUDITED (IN THOUSANDS, EXCEPT EARNINGS PER SHARE)

 

 

Three Months Ended

 

Twelve Months Ended

June 30,

 

June 30,

 

2022

 

2021

 

2022

 

2021

Revenue

 

 

 

 

Manufacturing

$

3,339

 

$

3,827

 

$

13,526

 

$

13,151

 

Testing services

 

5,494

 

 

3,828

 

 

19,477

 

 

13,846

 

Distribution

 

2,999

 

 

1,647

 

 

11,037

 

 

5,437

 

Real estate

 

2

 

 

6

 

 

25

 

 

28

 

 

 

11,834

 

 

9,308

 

 

44,065

 

 

32,462

 

Cost of Sales

 

 

 

 

Cost of manufactured products sold

 

2,309

 

 

2,954

 

 

10,147

 

 

9,809

 

Cost of testing services rendered

 

3,819

 

 

2,780

 

 

12,960

 

 

10,431

 

Cost of distribution

 

2,496

 

 

1,333

 

 

9,147

 

 

4,475

 

Cost of real estate

 

20

 

 

19

 

 

78

 

 

77

 

 

 

8,644

 

 

7,086

 

 

32,332

 

 

24,792

 

Gross Margin

 

3,190

 

 

2,222

 

 

11,733

 

 

7,670

 

Operating Expenses:

 

 

 

 

General and administrative

 

2,056

 

 

1,693

 

 

8,361

 

 

6,929

 

Selling

 

194

 

 

90

 

 

643

 

 

446

 

Research and development

 

82

 

 

80

 

 

375

 

 

357

 

(Loss) Gain on disposal of property, plant and equipment

 

1

 

 

--

 

 

1

 

 

(1

)

Total operating expenses

 

2,333

 

 

1,863

 

 

9,380

 

 

7,731

 

Income/ (Loss) from Operations

 

857

 

 

359

 

 

2,353

 

 

(61

)

Other (Expenses) Income

 

 

 

 

Interest expense

 

(35

)

 

(30

)

 

(122

)

 

(126

)

Other income, net

 

(74

)

 

148

 

 

595

 

 

354

 

Government grant

 

228

 

 

102

 

 

228

 

 

514

 

Impairment loss on other assets

 

--

 

 

(1,580

)

 

--

 

 

(1,580

)

Total other income (expenses)

 

119

 

 

(1,360

)

 

701

 

 

(838

)

Income (Loss) from Continuing Operations before Income Taxes

 

976

 

 

(1,001

)

 

3,054

 

 

(899

)

Income Tax Expenses

 

(254

)

 

(103

)

 

(757

)

 

(228

)

Income (Loss) from Continuing Operations before Non-controlling Interest, net of tax

 

722

 

 

(1,104

)

 

2,297

 

 

(1,127

)

(Loss) Gain from discontinued operations, net of tax

 

(3

)

 

(2

)

 

2

 

 

(28

)

NET INCOME (LOSS)

 

719

 

 

(1,106

)

 

2,299

 

 

(1,155

)

Less: Net loss attributable to the non-controlling interest

 

(71

)

 

(110

)

 

(96

)

 

(564

)

Net income (loss) attributable to Trio-Tech International

 

790

 

 

(996

)

 

2,395

 

 

(591

)

Net Income Attributable to Trio-Tech International:

 

 

 

 

Income (Loss) from continuing operations, net of tax

 

793

 

 

(993

)

 

2,396

 

 

(575

)

(Loss) from discontinued operations, net of tax

 

(3

)

 

(3

)

 

(1

)

 

(16

)

Net Income (Loss) Attributable to Trio-Tech International

 

790

 

 

(996

)

 

2,395

 

 

(591

)

Basic Earnings (Loss) per Share - Continuing Operations

$

0.20

 

$

(0.26

)

$

0.61

 

$

(0.16

)

Basic Loss per Share – Discontinued Operations

 

--

 

 

--

 

 

(0.01

)

 

--

 

Basic Earnings (Loss) per Share

$

0.20

 

$

(0.26

)

$

0.60

 

$

(0.16

)

Diluted Earnings (Loss) per Share – Continuing Operations

$

0.19

 

$

(0.25

)

$

0.57

 

$

(0.15

)

Diluted Loss per Share – Discontinued Operations

 

--

 

 

--

 

 

--

 

 

--

 

Diluted Earnings (Loss) per Share

$

0.19

 

$

(0.25

)

$

0.57

 

$

(0.15

)

Weighted Average Shares Outstanding - Basic

 

3,972

 

 

3,768

 

 

3,972

 

 

3,768

 

Weighted Average Shares Outstanding - Diluted

 

4,094

 

 

3,898

 

 

4,174

 

 

3,885

 

TRIO‑TECH INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

AUDITED (IN THOUSANDS, EXCEPT EARNINGS PER SHARE)

 

 

 

Three Months Ended

Twelve Months Ended

June 30,

June 30,

 

2022

 

2021

 

2022

 

2021

 

 

 

 

 

Comprehensive Income

 

 

 

 

Attributable to Trio-Tech International Common Shareholders:

 

 

 

 

Net (loss) income

$

719

 

$

(1,106

)

$

2,299

 

$

(1,155

)

Foreign currency translation, net of tax

 

(1,253

)

 

133

 

 

(1,275

)

 

1,248

 

Comprehensive (Loss) Income

 

(534

)

 

(973

)

 

1,024

 

 

93

 

Less: Comprehensive Loss

 

 

 

 

attributable to non-controlling interests

 

(129

)

 

(117

)

 

(169

)

 

(572

)

Comprehensive (Loss) Income

 

 

 

 

Attributable to Trio-Tech International

$

(405

)

$

(856

)

$

1,193

 

$

665

 

TRIO‑TECH INTERNATIONAL AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(IN THOUSANDS, EXCEPT NUMBER OF SHARES)

 

 

June 30,

2022

 

2021

 

 

 

 

ASSETS

(Audited)

 

 

 

 

CURRENT ASSETS:

 

 

 

Cash and cash equivalents

$

7,698

 

$

5,836

Short-term deposits

 

5,420

 

 

6,651

Trade account receivables, net

 

11,592

 

 

8,293

Other receivables

 

998

 

 

662

Inventories, net

 

2,258

 

 

2,080

Prepaid expenses and other current assets

 

1,215

 

 

418

Financed sales receivable

 

21

 

 

19

Total current assets

 

29,202

 

 

23,959

Deferred tax assets

 

169

 

 

217

Investment properties, net

 

585

 

 

681

Property, plant and equipment, net

 

8,481

 

 

9,531

Operating lease right-of-use assets

 

3,152

 

 

1,876

Other assets

 

137

 

 

262

Financed sales receivable

 

17

 

 

39

Restricted term deposits

 

1,678

 

 

1,741

Total non-current assets

 

14,219

 

 

14,347

TOTAL ASSETS

$

43,421

 

$

38,306

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

CURRENT LIABILITIES:

 

 

 

Lines of credit

$

929

 

$

72

Accounts payable

 

2,401

 

 

3,702

Accrued expenses

 

6,004

 

 

3,363

Income taxes payable

 

787

 

 

314

Current portion of bank loans payable

 

472

 

 

439

Current portion of finance leases

 

118

 

 

197

Current portion of operating leases

 

1,218

 

 

672

Total current liabilities

 

11,929

 

 

8,759

Bank loans payable, net of current portion

 

1,272

 

 

1,621

Finance leases, net of current portion

 

119

 

 

253

Operating leases, net of current portion

 

1,934

 

 

1,204

Income taxes payable

 

137

 

 

385

Other non-current liabilities

 

28

 

 

31

Total non-current liabilities

 

3,490

 

 

3,494

TOTAL LIABILITIES

 

15,419

 

 

12,253

 

 

 

 

EQUITY

 

 

 

TRIO-TECH INTERNATIONAL'S SHAREHOLDERS' EQUITY:

 

 

 

Common stock, no par value, 15,000,000 shares authorized; 4,071,680 and 3,913,055

 

 

 

shares issued and outstanding at June 30, 2022 and June 30, 2021, respectively

 

12,750

 

 

12,178

Paid-in capital

 

4,708

 

 

4,233

Accumulated retained earnings

 

9,219

 

 

6,824

Accumulated other comprehensive gain-translation adjustments

 

1,197

 

 

2,399

Total Trio-Tech International shareholders' equity

 

27,874

 

 

25,634

Non-controlling interest

 

128

 

 

419

TOTAL EQUITY

 

28,002

 

 

26,053

TOTAL LIABILITIES AND EQUITY

$

43,421

 

$

38,306

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220923005160/en/

Company Contact: A. Charles Wilson Chairman (818) 787-7000

Investor Contact: Berkman Associates (310) 927-3108 robert.jacobs@jacobscon.com