HONG KONG ,
Aug. 1,
2024 /PRNewswire/ -- Highway Holdings Limited
(Nasdaq: HIHO) today reported financial results for the
first quarter of fiscal year 2025 ended June
30, 2024.
Net sales for the first quarter of fiscal year 2025 ended
June 30, 2024 increased 39.3% to
$1.88 million compared with
$1.35 million in the first quarter of
fiscal year 2024. Net gain for the first quarter of fiscal year
2025 was $98,000, or $0.02 per diluted share, compared with net loss
of $338,000, or a loss of
$0.08 per diluted share in the first
quarter of fiscal year 2024.
Roland Kohl, chairman, president
and chief executive officer of Highway Holdings, commented, "We are
seeing signs of improvement and have reason for cautious optimism.
The growth in sales this quarter compared to the year ago period
was the result of substantially all our customers increasing their
orders. We have still not returned to the level our business was at
pre-COVID, therefore we were only able to reach breakeven on an
operating level, which is a significant improvement compared to the
$400,000 operating loss in the year
ago period.
"We are pleased to maintain a solid financial position, which we
believe gives us the ability to navigate the operating challenges
and forge a path that supports a return to long-term growth. In the
most recent quarter, our reported net profit came mainly from
interest income based on the fortified cash position we built, and
a favorable currency exchange gain. Overall, the favorable trend of
orders for our existing business from our main customers is stable
to slightly increasing. We are cautiously optimistic this trend
will continue along with the contribution of a pending new business
line, and the revival of some mature previously deemphasized
business lines, which taken together would ultimately help us
return to improved profitability."
Gross profit for the first quarter of fiscal year 2025 increased
to $661,000, or 35%, compared with
$377,000 and 28%, respectively, in
the first quarter of fiscal year 2024, primarily due to a favorable
product mix.
Selling, general and administrative expenses for the first
quarter of fiscal year 2025 declined by 15.3% to $658,000 in the first quarter 2025 from
$777,000 in the year ago period,
reflecting the positive benefit of the Company's operating expense
reduction strategy.
The Company recognized a $38,000
currency exchange gain in the first quarter of fiscal year 2025,
compared to $17,000 in the first
quarter of fiscal year 2024, with $52,000 in interest and other income in the first
quarter of 2025 compared to $40,000
in the year ago period, primarily due to the continued benefit of
foreign currency hedging activities and higher interest rates.
The Company ended the first quarter of fiscal year 2025 in a
solid financial position with $6.0
million of cash and cash equivalents, which exceeded
its combined short- and long-term liabilities by $1.65 million. At June 30, 2024, the Company had a working
capital balance of $5.7 million,
with a current ratio of 2.6:1, and total shareholders' equity of
$6.5 million, compared to
$6.6 million as of March 31, 2024.
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 remaining 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
(In thousands of U.S. dollars, except for shares and per share
data)
|
|
|
|
|
Fiscal First Quarter Ended
|
|
|
|
June 30
(Unaudited)
|
|
|
|
2024
|
|
2023
|
|
Net sales
|
|
|
$1,879
|
|
$1,347
|
|
Cost of
sales
|
|
|
1,218
|
|
970
|
|
Gross profit
|
|
|
661
|
|
377
|
|
Selling, general and
administrative expenses
|
|
|
658
|
|
777
|
|
Operating income
(loss)
|
|
|
3
|
|
(400)
|
|
|
|
|
|
|
|
Non-operating income
(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange gain (loss),
net
|
|
|
38
|
|
17
|
|
Interest
income
|
|
|
45
|
|
40
|
|
Gain (loss) on disposal
of assets
|
|
|
-
|
|
-
|
|
Other income
(expense)
|
|
|
7
|
|
-
|
|
Total non-operating
income (expenses)
|
|
|
90
|
|
57
|
|
|
|
|
|
|
|
Net income (loss)
before income taxes
|
|
|
93
|
|
(343)
|
|
Income taxes
|
|
|
-
|
|
3
|
|
Net income
(loss)
|
|
|
93
|
|
(340)
|
|
|
|
|
|
|
|
Less: net gain/(loss)
attributable to non-controlling interests
|
|
|
(5)
|
|
(2)
|
|
|
|
|
|
|
|
Net income attributable
to Highway Holdings Limited's
|
|
|
$98
|
|
($338)
|
|
Shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share – Basic
|
|
|
$0.02
|
|
($0.08)
|
|
Net income (loss) per
share - Diluted
|
|
|
$0.02
|
|
($0.08)
|
|
Weighted average number
of shares outstanding:
|
|
|
|
|
|
|
Basic
|
|
|
4,506
|
|
4,248
|
|
Diluted
|
|
|
4,506
|
|
4,248
|
|
|
|
|
|
|
|
HIGHWAY HOLDINGS
LIMITED AND SUBSIDIARIES
Consolidated Balance
Sheet
(In thousands of U.S. dollars, except for shares and per share
data)
|
|
|
|
|
|
|
|
|
June 30
(Unaudited)
|
March 31
(Audited)
|
|
|
|
2024
|
2024
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
$5,991
|
$6,601
|
|
|
|
|
|
|
Accounts receivable,
net of doubtful accounts
|
|
|
1,660
|
1,253
|
|
Inventories
|
|
|
1,532
|
1,566
|
|
Prepaid expenses and
other current assets
|
|
|
149
|
226
|
|
Total current
assets
|
|
|
9,332
|
9,646
|
|
|
|
|
|
|
Goodwill,
net
|
|
|
-
|
-
|
|
Property, plant and
equipment, net
|
|
|
34
|
-
|
|
Operating lease
right-of-use assets
|
|
|
1,217
|
1,375
|
|
Long-term
deposits
|
|
|
201
|
202
|
|
Long-term loan
receivable
|
|
|
95
|
95
|
|
Total assets
|
|
|
10,879
|
11,318
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable
|
|
|
$807
|
$935
|
|
Operating lease
liabilities, current
|
|
|
595
|
588
|
|
Accrued expenses and
other liabilities
|
|
|
1,719
|
1,789
|
|
Income tax
payable
|
|
|
471
|
480
|
|
Dividend
payable
|
|
|
60
|
45
|
|
Total current
liabilities
|
|
|
3,652
|
3,837
|
|
|
|
|
|
|
Operating lease
liabilities, non-current
|
|
|
650
|
803
|
|
Long term accrued
expenses
|
|
|
40
|
40
|
|
Total
liabilities
|
|
|
4,342
|
4,680
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
Preferred shares, $0.01
par value
|
|
|
-
|
-
|
|
Common shares, $0.01
par value
|
|
|
44
|
44
|
|
Additional paid-in
capital
|
|
|
12,144
|
12,117
|
|
Accumulated
deficit
|
|
|
(5,137)
|
(5,015)
|
|
Accumulated other
comprehensive (loss) / income
|
|
|
(502)
|
(501)
|
|
Non-controlling
interest
|
|
|
(12)
|
(7)
|
|
Total shareholders'
equity
|
|
|
6,537
|
6,638
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
|
$10,879
|
$11,318
|
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content:https://www.prnewswire.com/news-releases/highway-holdings-reports-first-quarter-fiscal-2025-results-revenue-increases-39-yoy-302211894.html
SOURCE Highway Holdings Limited