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Highway Holdings Reports Fiscal 2018 First Quarter Results

HONG KONG, July 25, 2017 (GLOBE NEWSWIRE) -- Highway Holdings Limited (Nasdaq:HIHO) today reported results for its fiscal 2018 first quarter ended June 30, 2017.

Net income for the fiscal 2018 first quarter increased 31.5 percent to $217,000, or $0.06 per diluted share, from $165,000, or $0.04 per diluted share, last year. Net sales for the same period were $5.3 million compared with $5.2 million a year earlier.

“Results for the fiscal first quarter indicate the company is nearing the end effect of its multi-year strategy to eliminate lower margin business. We are encouraged by business trends indicating the willingness of customers to accept realistic price increases to support the quality and reliability of our manufacturing services,” said Roland Kohl, chairman, president and chief executive officer.

Gross profit for the 2018 fiscal first quarter was $1.38 million compared with $1.29 million in the same period a year ago, with gross profit as a percentage of sales increasing to 26.0 percent from 24.6 percent a year ago.

Selling, general and administrative expense for the 2018 fiscal first quarter increased -- primarily due to costs associated with supporting and strengthening the company’s engineering and marketing efforts and its emerging Myanmar operation. The company’s currency exchange loss decreased to $4,000 in the quarter from $17,000 in the same period last year due to a weakening RMB.

Kohl highlighted the company’s solid financial position, with cash and cash equivalents of $10.1 million -- exceeding the combined short- and long-term liabilities by $3.8 million. At June 30, 2017, the company had working capital of $10.5 million.

Total shareholders’ equity at June 30, 2017 was $11.5 million compared with $11.3 million as of March 31, 2017. The company’s current ratio at June 30, 2017 was 2.6:1.

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 and Myanmar.

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)
(Unaudited)
Quarter Ended
June 30
2017 2016
Net sales$5,309 $5,225
Cost of sales 3,928 3,940
Gross profit 1,381 1,285


Selling, general and administrative expenses


1,137


1,054
Operating income 244 231
Non-operating income (expense):
Exchange gain (loss), net (4) (17)
Interest income
Gain/(loss) on disposal of asset
3
46
1
-
Other income (expense) 0 0
Total non-operating income (expenses) 45 (16)
Net income before income tax and non-controlling interests 289 215
Income taxes (65) (50)
Net income before non-controlling interests 224 165
Less: net gain/(loss) attributable to non-controlling interests 7 0
Net income attributable to Highway Holdings Limited’s$217 $165
Shareholders
Net income per share – basic and diluted$0.06 $0.04
Weighted average number of shares outstanding:

Basic
3,802 3,802
Diluted

3,802


3,802





HIGHWAY HOLDINGS LIMITED AND SUBSIDIARIES
Consolidated Balance Sheet
(In thousands, except per share data)
June 30March 31
2017 2017
Current assets:
Cash and cash equivalents$10,108 $10,028
Accounts receivable, net of doubtful accounts 3,383 3,403
Inventories 2,508 2,265
Prepaid expenses and other current assets 803 714
Total current assets 16,802 16,410
Property, plant and equipment, net 909 954
Goodwill 77 77
Long-term deposits 111 111
Total assets 17,899 17,552
Current liabilities:
Accounts payable$1,713 $2,391
Accrued expenses and other liabilities 4,066 3,053
Income tax payable 352 328
Dividend payable 189 438
Total current liabilities 6,320 6,210
Deferred income taxes 32 32
Total liabilities 6,352 6,242
Shareholders' equity:
Common shares, $0.01 par value 38 38
Additional paid-in capital 11,370 11,370
Retained earnings 231 13
Accumulated other comprehensive income/(loss) (127) (136)
Treasury shares, at cost – 5,049 shares as of June 30, 2017; and on March 31, 2017 (14) (14)
Non-controlling interest 49 39
Total shareholders' equity 11,547 11,310
Total liabilities and shareholders' equity$17,899 $17,552


CONTACT: Gary S. Maier Maier & Company, Inc. (310) 471-1288

Source:Highway Holdings Limited