HONG KONG--(BUSINESS WIRE)--Global-Tech Advanced Innovations Inc. (NASDAQ: GAI) today announced its financial results for the fiscal year ended March 31, 2013.
Net sales for fiscal 2013 were $81.1 million, an increase of approximately 16.4% when compared to net sales of $69.7 million in fiscal 2012. Net loss for fiscal 2013 was $2.0 million, or $0.65 per share, compared to a net income of $1.4 million, or $0.46 per share, in fiscal 2012.
Net sales for the fourth quarter of fiscal 2013 were $13.9 million, compared to $15.5 million in the corresponding period in fiscal 2012. Net loss for the fourth quarter of fiscal 2013 was $2.3 million, or $0.75 per share, compared to a net loss of $1.5 million, or $0.51 per share, for the corresponding quarter in fiscal 2012.
Despite incurring losses in fiscal 2013, the Company’s cash flow remained positive as our net cash position increased approximately $1.9 million to $42.2 million, primarily due to a significant reduction in accounts receivables, partially offset by capital expenditures. Net cash (a non-GAAP measure) is defined as cash and cash equivalents plus restricted cash less short-term debt (a GAAP reconciliation has been provided below). In providing our net cash position, we believe our shareholders, as well as potential investors, gain a better understanding of the Company’s potential for future growth and are better able to assess the Company’s financial strength and available resources.
SG&A expenses in fiscal 2013 did not increase materially from fiscal 2012 when discontinued operations are included and most of the increase was due to exchange rate appreciation of the Renminbi against the U.S. dollar.
John C.K. Sham, the Company's President and Chief Executive Officer, said: “The Company’s fourth quarter continues to be our weakest quarter, due at least in part to business disruptions relating to the Chinese New Year. Rising labor costs coupled with labor shortages in southern China negatively impacted our operating results. The developing slowdown in the Chinese economy also adversely impacted our business, most significantly in our EMS segment.”
Mr. Sham continued, “We are striving to address these and other cost issues, including certain manufacturing costs previously absorbed by our home appliance business prior to its discontinuation in January 2012. As part of these efforts, we have started to lease some of the unused space in our manufacturing facility that was previously occupied by our home appliance business. However, we do not expect our efforts to adjust our cost structure will have a material impact on our operating results until the second or third quarter of fiscal 2014, at which time we believe we will return to profitability. Until such time we expect our net cash position to continue to remain strong.”
Mr. Sham concluded, “As previously disclosed, the expansion of our CCM production capacity through the installation of three chip-on-board (COB) production lines and a Class 10 clean room was recently completed. We are pleased to report that our CCM business has started receiving orders that require the use of our new COB production lines. Since COB production lines are capable of producing higher-pixel camera modules and other precision-related devices, we believe that our CCM business will continue to grow through the addition of new customers and the sale of higher profit margin products. As such, we are cautiously optimistic about the growth opportunities of our CCM business and expect our CCM sales to increase and profitability in this business segment to gradually improve in the coming months.”
Global-Tech Advanced Innovations Inc. is a holding company, owning subsidiaries that manufacture and market a diversified portfolio of products, such as complementary metal oxide semiconductor (CMOS) and camera modules (CCMs). The primary focus of its subsidiaries is to develop and market high-quality products for the communications industry in China and export such products to markets in other countries throughout the world.
Except for historical information, certain statements contained herein are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," “should,” "estimates," or variations of such words and similar expressions are intended to identify such forward-looking statements. These forward-looking statements are subject to risks and uncertainties, including but not limited to, the impact of competitive products and pricing, demand for new and existing products in our core business, the financial condition of the Company’s customers, product demand and market acceptance especially of our new products, the success of new product development especially in the area of cellular phone components and solutions, compact camera modules and other pending projects, reliance on material customers, suppliers and key strategic alliances, the terms and conditions of customer contracts and purchase orders, availability and cost of raw materials, the timely and proper execution of certain business plans, including the plan to diversify and transform a portion of manufacturing capacity to higher-value, technology-oriented products, currency fluctuations, including the revaluation of the Chinese Renminbi, the imposition by China’s trading partners of economic sanctions and/or protective tariffs on Chinese manufactured goods, uncertainties associated with investments, the regulatory environment, fluctuations in operating results, the impact of changing global, political and economic conditions and other risks detailed from time to time in the Company's filings with the U.S. Securities and Exchange Commission including its most recent Report on Form 20-F. The Company does not undertake to update its forward-looking information, or any other information contained or referenced in this press release to reflect future events or circumstances.
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GLOBAL-TECH ADVANCED INNOVATIONS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS |
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(Amounts expressed in United States dollars, except per share data) |
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Year Ended March 31, |
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| 2013 | 2012 | 2011 | ||||||||||||||||||
| (audited) | (audited) | (audited) | ||||||||||||||||||
| Net sales | $ | 81,083,384 | $ | 69,652,705 | $ | 57,468,866 | ||||||||||||||
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Cost of goods sold |
(70,817,320 | ) | (59,008,973 | ) | (50,403,138 | ) | ||||||||||||||
| Gross profit | 10,266,064 | 10,643,732 | 7,065,728 | |||||||||||||||||
| Selling, general and administrative expenses | (16,254,968 | ) | (10,612,458 | ) | (11,317,767 | ) | ||||||||||||||
| Other operating income , net | - | 28,589 | 1,137,580 | |||||||||||||||||
| Operating profit (loss) | (5,988,904 | ) | 59,863 | (3,114,459 | ) | |||||||||||||||
| Interest income, net | 1,504,166 | 95,477 | 536,187 | |||||||||||||||||
| Other income (expenses), net | 845,806 | 1,116,279 | 370,274 | |||||||||||||||||
| Income (Loss) from continuing operations before income taxes | (3,638,932 | ) | 1,271,619 | (2,207,998 | ) | |||||||||||||||
| Income tax benefit (expense) | 841,900 | (1,228,625 | ) | (204,122 | ) | |||||||||||||||
| Income (Loss) from continuing operations | (2,797,032 | ) | 42,994 | (2,412,120 | ) | |||||||||||||||
| Income (Loss) from discontinuing operations, net of tax | 725,773 | 1,374,342 | (1,775,879 | ) | ||||||||||||||||
| Net income (loss) | (2,071,259 | ) | 1,417,336 | (4,187,999 | ) | |||||||||||||||
| Net income (loss) attributable to non-controlling interests | 107,958 | (6,659 | ) | 175,028 | ||||||||||||||||
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Net income (loss) attributable to shareholders of Global-Tech Advanced Innovations Inc |
$ |
(1,963,301 |
) |
$ |
1,410,677 |
$ |
(4,012,971 |
) |
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| Basic and diluted earnings (loss) from continuing operations per share of common stock | $ | (0.88 | ) | $ | 0.01 | $ | (0.74 | ) | ||||||||||||
| Basic and diluted earnings (loss) per share of common stock | $ | (0.65 | ) | $ | 0.46 | $ | (1.32 | ) | ||||||||||||
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Basic and diluted weighted average number of shares of common stock |
3,040,310 | 3,039,727 | 3,039,454 | |||||||||||||||||
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GLOBAL-TECH ADVANCED INNOVATIONS INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Amounts expressed of United States dollars) |
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March 31,
2013 |
March 31,
2012 |
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| (audited) | (audited) | |||||||||||||
| ASSETS | ||||||||||||||
| Current assets: | ||||||||||||||
| Cash and cash equivalents | $ | 32,385,376 | $ | 39,792,733 | ||||||||||
| Restricted cash | 14,592,289 | 4,546,062 | ||||||||||||
| Available-for-sale investments | 17,153 | 2,006,066 | ||||||||||||
| Accounts and bills receivable | 19,713,608 | 30,273,062 | ||||||||||||
| Inventories | 5,392,332 | 5,374,192 | ||||||||||||
| Prepaid expenses | 181,224 | 149,558 | ||||||||||||
| Deposits and other assets | 5,044,456 | 769,206 | ||||||||||||
| Amount due from a related party | 18,841 | 11,798 | ||||||||||||
| Total current assets | 77,345,279 | 82,922,677 | ||||||||||||
| Interests in jointly-controlled entities | - | - | ||||||||||||
| Property, plant and equipment, net | 26,528,681 | 21,933,787 | ||||||||||||
| Land use rights, net | 3,026,537 | 3,083,128 | ||||||||||||
| Deposits paid for purchase of property, plant and equipment | 280,146 | 66,617 | ||||||||||||
| Available-for-sale investments | 1,045,200 | 1,033,800 | ||||||||||||
| Total assets | $ | 108,225,843 | $ | 109,040,009 | ||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||
| Current liabilities: | ||||||||||||||
| Short-term bank loans | 4,826,241 | 4,000,000 | ||||||||||||
| Accounts payable | 7,134,526 | 8,163,510 | ||||||||||||
| Customer deposits | 1,331,100 | 860,779 | ||||||||||||
| Accrued salaries, allowances and other employee benefits | 4,367,642 | 3,102,335 | ||||||||||||
| Other accrued liabilities | 9,643,638 | 6,637,851 | ||||||||||||
| Income tax payable | 4,659,313 | 6,157,885 | ||||||||||||
| Total current liabilities | 31,962,460 | 28,922,360 | ||||||||||||
| Deferred tax liabilities | 5,180 | 27,017 | ||||||||||||
| Total liabilities | 31,967,640 | 28,949,377 | ||||||||||||
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Shareholders' equity: |
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|
|
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Common stock, par value $0.04 per share; 12,500,000 shares authorized; 3,230,814 and 3,229,314 shares issued as of March 31, 2013 and 2012 |
129,233 |
129,173 |
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| Additional paid-in capital | 85,053,402 | 84,786,226 | ||||||||||||
| Statutory reserves | 1,238,361 | - | ||||||||||||
| Accumulated deficit | (15,932,941 | ) | (9,690,526 | ) | ||||||||||
| Accumulated other comprehensive income | 10,709,740 | 9,697,445 | ||||||||||||
| Less: Treasury stock, at cost, 189,587 shares as of March 31, 2013 and 2012 | (4,663,321 | ) | (4,663,321 | ) | ||||||||||
| Total Global-Tech Advanced Innovations Inc. shareholders’ equity | 76,534,474 | 80,258,997 | ||||||||||||
| Non-controlling interests | (276,271 | ) | (168,365 | ) | ||||||||||
| Total shareholders’ equity | 76,258,203 | 80,090,632 | ||||||||||||
| Total liabilities and shareholders' equity | $ | 108,225,843 | $ | 109,040,009 | ||||||||||
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GLOBAL-TECH ADVANCED INNOVATIONS INC. AND SUBSIDIARIES |
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RECONCILIATION OF NET CASH POSITION (NON-GAAP) TO GAAP |
| (Amounts expressed of United States dollars) |
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Reconciliation of Net Cash Position (Non-GAAP) to GAAP |
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Net Cash Position – Net cash position, a non-GAAP measure, is defined as cash and cash equivalents plus restricted cash less short-term debt. |
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March 31,
2013 |
March 31,
2012 |
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| (unadited) | (unaudited) | |||||||||||||
| Net cash position | $ | 42,151,424 | $ | 40,338,795 | ||||||||||
| Add: | ||||||||||||||
| Short-term bank loans | 4,826,241 | 4,000,000 | ||||||||||||
| Less: | ||||||||||||||
| Restricted cash | (14,592,289 | ) | (4,546,062 | ) | ||||||||||
| Cash and cash equivalents | 32,385,376 | 39,792,733 | ||||||||||||