General Bearing Corporation Releases Results for the First Quarter

WEST NYACK, N.Y.--(BUSINESS WIRE)--General Bearing Corporation (OTC: GNRL.PK) announced today that the Company has released the attached unaudited condensed consolidated financial statements for the thirteen weeks ending March 29, 2008. The aforementioned interim financial statements are also available on the Company’s website at www.generalbearing.com.

General Bearing manufactures ball bearings, tapered roller bearings, spherical roller bearings, and cylindrical roller bearings, and bearing components. Under “The General” and the “Hyatt” trademarks, the Company supplies original equipment manufacturers in the automobile, truck/trailer, railcar, office equipment, machinery and appliance industries, as well as the industrial aftermarket.

GENERAL BEARING CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In Thousands, except for shares)

 
  March 29,  

December 29,

2008 2007
ASSETS (Unaudited)
CURRENT ASSETS
Cash and cash equivalents $ 9,454 $ 9,955
Due from bank 1,941 1,504
Loan receivable - related party 60 102

Accounts receivable, net of allowance for doubtful accounts of $837 in 2008 and $820 in 2007

27,407 25,628
Inventories 35,255 36,963
Prepaid taxes and taxes recoverable 2,090 2,610
Prepaid expenses and other current assets 3,176 2,848
Advances to affiliates 9 9
Deferred tax assets   1,282     1,193  
Total current assets 80,674 80,812

PROPERTY, PLANT AND EQUIPMENT

39,164 36,934

INVESTMENT IN, ADVANCES TO AND ACCOUNTS RECEIVABLE FROM JOINT VENTURES AND AFFILIATES

1,637 1,493
LOAN RECEIVABLE - RELATED PARTY 1,400 1,380
OTHER ASSETS   1,540     1,453  
Total assets $ 124,415   $ 122,072  
 
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Notes payable - banks $ 21,441 $ 22,380
Notes payable - related party 5,698 6,840
Accounts payable 13,479 12,582
Due to affiliates 646 819
Accrued expenses and other current liabilities 7,045 7,897
Current portion of long term debt   62     62  
Total current liabilities 48,371 50,580
LONG-TERM DEBT 9,066 7,199
OTHER LIABILITIES 158 166
DEFERRED TAXES   60     60  
Total liabilities   57,655     58,005  
 
MINORITY INTERESTS 18,145 17,276
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY

Common shares - par value $.01 per share;
 authorized 5,000,000 shares; 4,174,450 issued and outstanding in 2008 and 2007

42 42
Paid-in capital 39,591 39,754
Accumulated other comprehensive income 2,653 1,838
Treasury stock, at cost; 442,478 and 450,828 shares (3,325 ) (3,273 )
Retained earnings   9,654     8,430  
Total stockholders' equity   48,615     46,791  
Total liabilities and stockholders' equity $ 124,415   $ 122,072  

GENERAL BEARING CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(In Thousands, Except for Shares and Per Share Data)

(Unaudited)

 
  Thirteen Weeks Ended
March 29,   March 31,
2008 2007
 
SALES $ 34,130 $ 31,659
COST OF SALES   25,960   23,097
GROSS PROFIT 8,170 8,562
 
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES   5,148   4,682
OPERATING INCOME 3,022 3,880
 
OTHER EXPENSES, NET   897   776
INCOME BEFORE INCOME TAXES 2,125 3,104
 
INCOME TAXES   785   1,072
 
INCOME BEFORE MINORITY INTERESTS 1,340 2,032
 
MINORITY INTERESTS   116   307
NET INCOME $ 1,224 $ 1,725
 
Other Comprehensive Income
Foreign exchange translation 815 184
Mark to market-interest rate swap   -   17
Total comprehensive income $ 2,039 $ 1,926
 
Net Income per common share
Basic $ 0.33 $ 0.46
Diluted $ 0.31 $ 0.44
 
Weighted average number of common shares
Basic 3,734,337 3,739,610
Diluted 3,890,478 3,883,646

GENERAL BEARING CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands)

(Unaudited)

 
  Thirteen Weeks Ended

March 29,

2008

 

March 31,

2007

 
OPERATING ACTIVITIES
Net income $ 1,224 $ 1,725

Adjustments to reconcile net income to net cash provided by operating activities:

Minority interests 116 307
Depreciation and amortization 1,170 904
Equity losses in joint ventures and affiliates 6 8
Deferred income taxes (89 ) (9 )
Loss on sale of fixed assets - 17
Stock based compensation 15 15
Other non cash charges and credits, net 338 110
Changes in:
Accounts receivable (1,779 ) (1,667 )
Inventories 1,708 2,616
Due from bank (436 ) 2,907
Prepaid expenses and other assets 75 743
Advances to affiliates (175 ) 1,010
Accounts payable and accrued expenses   271     (3,051 )
Net cash provided by operating activities   2,444     5,635  
 
INVESTING ACTIVITIES
Fixed asset purchases (1,955 ) (3,265 )
Investment in affiliates (105 ) -
Repayment of loan - related party 20 -
Proceeds from sale of fixed assets   -     2,633  
Net cash used in investing activities   (2,040 )   (632 )
 
FINANCING ACTIVITIES
Decrease in note payable - banks (940 ) (8,396 )
Increase in notes payable - related party 1,193 1,481
Decrease in revolving credit facility (450 ) (801 )
Increase (decrease) in note payable - other (16 ) 2,587
Repurchase of employee stock options (251 ) -
Purchase of treasury stock   (205 )   (329 )
Net cash used in financing activities   (669 )   (5,458 )
 
NET DECREASE IN CASH AND CASH EQUIVALENTS (265 ) (455 )
EFFECT OF EXCHANGE RATE CHANGES ON CASH (236 ) (76 )
CASH AND CASH EQUIVALENTS, Beginning of Period   9,955     8,031  
CASH AND CASH EQUIVALENTS, End of Period $ 9,454   $ 7,500  

Contacts

General Bearing Corporation
David Gussack, CEO, 845-358-6000

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