Highway Holdings Limited (Nasdaq: HIHO) today reported
results for its fiscal 2023 first quarter ended June 30, 2022.
Net sales for the fiscal 2023 first quarter were $2.94 million
compared with $2.99 million a year earlier. Net income for the same
period was $390,000, or $0.09 per diluted share, compared with
$333,000, $0.08 per diluted share, a year ago.
"Results for fiscal first quarter benefited from financial
assistance provided by the Chinese and Hong Kong governments to
offset some of the costs we incurred as a result of COVID-related
required shutdowns that impacted the company’s operations in prior
periods,” said Roland Kohl, chairman, president and chief executive
officer of Highway Holdings.
Kohl added that as long as the Chinese government continues its
“zero” COVID policy with frequent shutdowns impacting operations of
the company, comparisons with prior periods may not be appropriate,
nor may current operations be predictive of future operating
activities. The company’s operations also are negatively impacted
by these COVID policies that restrict the services and business of
the company’s suppliers, customers, and logistic providers.
Gross profit for the 2023 fiscal first quarter was $1,052,000
compared with $930,000 in the same quarter a year ago, with gross
profit as a percentage of sales approximately 35.7 percent compared
with 31 percent a year ago – representing a 4.7 percent improvement
compared with last year. This improvement primarily reflects the
benefit of reduced rental expenses provided by the Chinese
government to offset the impact of shutdowns in prior periods.
Selling, general and administrative expenses for the 2023 fiscal
first quarter increased slightly by $70,000.
The company realized a small currency exchange gain of $18,000
in the quarter compared with an exchange loss of $7,000 in the same
period last year, primarily due to weakness in the RMB during the
period.
Kohl highlighted the company’s solid financial position, with
cash and cash equivalents of $6.4 million -- exceeding combined
short- and long-term liabilities by $2.0 million. At June 30, 2022,
the company had working capital of $8.2 million. The company’s
current ratio at June 30,2022 was 3.0:1.
Total shareholders’ equity at June 30, 2022 was $9.7 million
compared with $9.3 million as of March 31, 2022.
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.
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.
HIGHWAY HOLDINGS LIMITED AND
SUBSIDIARIES
Consolidated Statement of
Income
(In thousands of U.S. dollars,
except for shares and per share data)
Quarter Ended
June 30
2022
2021
Net sales
$
2,942
$
2,998
Cost of sales
1,890
2,068
Gross profit
1,052
930
Selling, general and administrative
expenses
687
617
Operating income
365
313
Non-operating income (expense):
Exchange gain (loss), net
18
(7
)
Interest income
4
-
1
-
Other income (expense)
5
-
Total non-operating income (expenses)
27
(6
)
Net income before income taxes
392
307
Income taxes
4
33
Net income
396
340
Less: net gain/(loss) attributable to
non-controlling interests
6
7
Net income attributable to Highway
Holdings Limited’s
Shareholders
$
390
$
333
Net income per share – Basic
$
0.10
$
0.08
Net income per share - Diluted
$
0.09
$
0.08
Weighted average number of shares
outstanding:
Basic
4,036
4,019
Diluted
4,279
4,160
HIGHWAY HOLDINGS LIMITED
AND SUBSIDIARIES
Consolidated Balance Sheet
(In thousands of U.S. dollars,
except for shares and per share data)
June 30
March 31
2022
2022
Current
assets:
Cash and cash equivalents
$
6,403
$
6,010
Time deposits
-
1,075
Accounts receivable, net of doubtful
accounts
2,949
2,260
Inventories
2,217
2,350
Prepaid expenses and other current
assets
574
620
Income tax recoverable
7
7
Total current assets
12,150
12,322
Goodwill, net
-
-
Property, plant and equipment, net
562
643
Operating lease right-of-use assets
1,305
1,799
Long-term loan receivable
95
95
Total assets
14,112
14,859
Current
liabilities:
Accounts payable
$
776
$
828
Operating lease liabilities, current
491
933
Accrued expenses and other liabilities
2,133
2,599
Income tax payable
592
620
Dividend payable
-
202
Total current liabilities
3,992
5,182
Operating lease liabilities,
non-current
263
268
Deferred income taxes
131
140
Total liabilities
4,386
5,590
Shareholders'
equity:
Preferred shares, $0.01 par value
-
-
Common shares, $0.01 par value
40
40
Additional paid-in capital
11,838
11,816
Accumulated deficit
(1,895
)
(2,284
)
Accumulated other comprehensive income
(loss)
(263
)
(303
)
Non-controlling interest
6
0
Total shareholders' equity
9,726
9,269
Total liabilities and shareholders'
equity
$
14,112
$
14,859
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version on businesswire.com: https://www.businesswire.com/news/home/20220725005237/en/
Gary S. Maier Maier & Company, Inc. (310) 471-1288
Highway (NASDAQ:HIHO)
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