Attached files
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| 8-K - CURRENT REPORT - TRIO-TECH INTERNATIONAL | trt8k.htm |
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LOS
ANGELES
SINGAPORE
KUALA
LUMPUR
BANGKOK
SUZHOU
TIANJIN
CHONGQING
|
|
FOR IMMEDIATE RELEASE
|
Company
Contact:
Investor
Contact:
A. Charles
Wilson
Berkman
Associates
Chairman
(310)
477-3118
(818)
787-7000
info@BerkmanAssociates.com
|
Trio-Tech Fourth Quarter Net Income Increased 96% to
$0.09 Per Diluted Share Versus $0.05 Per Share Last
Year
Fiscal 2017 Net Income Increased 69% to $0.36 Per Diluted
Share
Versus $0.22 Per Diluted Share For Fiscal 2016
Van Nuys, CA – September 20, 2017
– Trio-Tech International
(NYSE MKT: TRT) today announced financial results for the
fourth quarter and fiscal year ended June 30, 2017:
●
Fourth quarter of
fiscal 2017 net income increased 96.1% to $0.09 per diluted share,
on a 20.7% increase in revenue compared to the fourth quarter of
fiscal 2016.
●
Fiscal 2017 net
income increased 68.9% to $0.36 per diluted share, on an 11.9%
increase in revenue compared to fiscal 2016.
CEO
Comments
"Trio-Tech
delivered a strong fourth quarter and a strong year. Fourth quarter
revenue rose to $10,638,000, a 20.7% improvement over fiscal 2016
fourth quarter revenue of $8,815,000. Fourth quarter net income
increased to $353,000, or $0.09 per diluted share, nearly double
net income for the fourth quarter of fiscal 2016 of $180,000, or
$0.05 per share.
"For
fiscal 2017 as a whole, net income increased 68.9% to $1,316,000,
or $0.36 per diluted share, on an 11.9% gain in revenue to
$38,538,000. This compares to net income of $779,000, or $0.22 per
share, on revenue of $34,454,000 for fiscal 2016.
"Cash
provided by operations was $3,953,000 for fiscal 2017 compared to
cash provided by operations of $1,014,000 for fiscal 2016. With our
solid cash generation and net income, cash and equivalents grew to
$4,772,000, or $1.35 per
outstanding share, at June 30, 2017 compared to cash and
equivalents of $3,807,000, or $1.08 per outstanding share, at June
30, 2016.
"Each
of our key business segments - semiconductor test equipment
manufacturing, semiconductor testing services, and semiconductor
manufacturing equipment distribution - posted higher revenue in
fiscal 2017 than in fiscal 2016. Also encouraging is that backlog
at the end of fiscal 2017 increased to $7,546,000 versus backlog of
$6,304,000 at the end of fiscal 2016, reflecting higher backlog in
each business segment.
"Fiscal
2017 marks the fourth consecutive year of higher net income for
Trio-Tech, a trend we are working hard to extend in fiscal 2018.
The performance of our core businesses these past few years has
established a solid foundation on which to build. We never lose
sight of the crucial roles that product and service quality, new
product development, and outstanding customer service have played
in our success. At the same time, we seek to build on the base of
business we have developed by applying our technologies and global
manufacturing and service expertise," said S.W. Yong, Trio-Tech's
CEO.
(more)
16139
Wyandotte Street, Van Nuys, CA 91406, USA ● TEL: (818)
787-7000 ● FAX (818) 787-9130
Trio-Tech Fourth Quarter Net Income Increased 96% to $0.09 Per
Diluted Share Versus $0.05 Per Share Last Year
September 20,
2017
Page
Two
Fiscal
2017 Fourth Quarter Results
For the
fourth quarter ended June 30, 2017, revenue increased 20.7% to
$10,638,000 compared to $8,815,000 for the same quarter of fiscal
2016. Testing services revenue increased 5.0% to $4,382,000
compared to $4,174,000 for the fourth quarter of fiscal 2016, the
result of increased testing volume in the Company’s Asian
facilities. Distribution revenue increased 120.4% to $2,151,000
compared to $976,000 in the same quarter last year, primarily
reflecting increased demand for products in Trio-Tech's Singapore
operation. Higher demand in Singapore also contributed to a 12.2%
increase in Manufacturing revenue to $4,068,000 compared to
$3,626,000 in the same quarter a year earlier.
Fiscal
2017 fourth quarter operating expenses increased $180,000, or 9.8%,
to $2,014,000 from $1,834,000, but declined to 18.9% of revenue,
compared to 20.8% of revenue, last year.
Fourth
quarter fiscal 2017 operating income was $349,000 compared to
$510,000 in the same quarter last year.
Net
income attributable to Trio-Tech International common shareholders
for the fourth quarter of fiscal 2017 increased 96.1% to $353,000,
or $0.09 per diluted share, compared to $180,000, or $0.05 per
diluted share, for the fourth quarter last year. Fiscal 2017 fourth
quarter net income benefited from a $103,000 increase in other
income, compared to a loss of $136,000 in the same quarter last
year.
Fiscal
2017 Results
For the
twelve months ended June 30, 2017, revenue increased 11.9% to
$38,538,000 compared to revenue of $34,454,000 for fiscal 2016.
Testing services revenue increased 8.5% to $16,586,000 for the
year, compared to $15,280,000 for fiscal 2016. Distribution revenue
increased 43.4% to $6,511,000 compared to $4,542,000 in fiscal
2016. Manufacturing revenue increased 5.4% to $15,289,000 compared
to $14,510,000 in fiscal 2016.
Fiscal
2017 operating expenses increased $664,000, or 9.1% to $7,973,000
from $7,309,000 in fiscal 2016, but declined, as percent of
revenue, to 20.7% from 21.2% in fiscal 2016.
Income
from operations increased 2.0% to $1,489,000 compared to $1,460,000
in fiscal 2016.
Net
income attributable to Trio-Tech International common shareholders
for fiscal 2017 increased 68.9% to $1,316,000, or $0.36 per diluted
share, compared to $779,000, or $0.22 per diluted share, in the
same period last year. Fiscal 2017 net income also benefited from a
gain in other income of $312,000, compared to a loss of $158,000 in
fiscal 2016. The improvement in other income is primarily due to a
foreign exchange gain of $96,000 compared to a foreign exchange
loss of $371,000 in fiscal 2016.
Balance
Sheet Highlights
Shareholders'
equity at June 30, 2017 was $21,527,000, or $6.11 per outstanding
share, compared to $20,871,000, or $5.94 per outstanding share, at
June 30, 2016. There were 3,523,055 and 3,513,055 common shares
outstanding at June 30, 2017 and June 30, 2016,
respectively.
(more)
Trio-Tech Fourth Quarter Net Income Increased 96% to $0.09 Per
Diluted Share Versus $0.05 Per Share Last Year
September 20,
2017
Page
Three
About Trio Tech
Established in 1958 and headquartered in Van Nuys,
California, Trio-Tech International is a diversified business group
with interests in semiconductor testing services, manufacturing and
distribution of semiconductor testing equipment, and real estate.
Further information about Trio-Tech's semiconductor products and
services can be obtained from the Company's Web site at
www.triotech.com,
www.universalfareast.com,
and www.ttsolar.com.
Forward Looking Statements
This press release contains statements
that are forward looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995 and may contain
forward looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, and assumptions
regarding future activities and results of operations of the
Company. In light of the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995, the following factors,
among others, could cause actual results to differ materially from
those reflected in any forward-looking statements made by or on
behalf of the Company: market acceptance of Company products and
services; changing business conditions or technologies and
volatility in the semiconductor industry, which could affect demand
for the Company’s products and services; the impact of
competition; problems with technology; product development
schedules; delivery schedules; changes in military or commercial
testing specifications which could affect the market for the
Company’s products and services; difficulties in profitably
integrating acquired businesses, if any, into the Company; risks
associated with conducting business internationally and especially
in Asia, including currency fluctuations and devaluation, currency
restrictions, local laws and restrictions and possible social,
political and economic instability; changes to government policies,
potential legislative changes in U.S. and global financial and
equity markets, including market disruptions and significant
interest rate fluctuations; and other economic, financial and
regulatory factors beyond the Company’s control. Other than
statements of historical fact, all statements made in this press
release are forward-looking, including, but not limited to,
statements regarding industry prospects, future results of
operations or financial position, and statements of our intent,
belief and current expectations about our strategic direction,
prospective and future financial results and condition. In some
cases, you can identify forward-looking statements by the use of
terminology such as “may,” “will,”
“expects,” “plans,”
“anticipates,” “estimates,”
“potential,” “believes,” “can
impact,” “continue,” or the negative thereof or
other comparable terminology. Forward-looking statements involve
risks and uncertainties that are inherently difficult to predict,
which could cause actual outcomes and results to differ
materially from our expectations, forecasts and
assumptions.
(tables
attached)
|
TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
|
|||||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
|
|||||||||
|
AUDITED (IN THOUSANDS, EXCEPT EARNINGS PER SHARE)
|
|
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Three Months
Ended
June 30, |
Twelve Months
Ended
June 30, |
||
|
Revenue
|
2017
|
2016
|
2017
|
2016
|
|
|
||||
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Products
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$4,068
|
$3,626
|
$15,289
|
$14,510
|
|
Testing services
|
4,382
|
4,174
|
16,586
|
15,280
|
|
Distribution
|
2,151
|
976
|
6,511
|
4,542
|
|
Other
|
37
|
39
|
152
|
122
|
|
|
|
|
|
|
|
|
10,638
|
8,815
|
38,538
|
34,454
|
|
Cost of Sales
|
|
|
|
|
|
Cost of products sold
|
3,329
|
2,831
|
12,091
|
11,008
|
|
Cost of testing services rendered
|
2,988
|
2,760
|
11,057
|
10,587
|
|
Distribution
|
1,929
|
849
|
5,828
|
3,967
|
|
Other
|
29
|
31
|
100
|
123
|
|
|
8,275
|
6,471
|
29,076
|
25,685
|
|
|
|
|
|
|
|
Gross Margin
|
2,363
|
2,344
|
9,462
|
8,769
|
|
|
|
|
|
|
|
Operating Expenses:
|
|
|
|
|
|
General and administrative
|
1,733
|
1,588
|
6,911
|
6,449
|
|
Selling
|
220
|
206
|
807
|
676
|
|
Research and development
|
52
|
52
|
208
|
200
|
|
Gain (Loss)
on disposal of property, plant and equipment
|
9
|
(12)
|
47
|
(16)
|
|
Total operating expenses
|
2,014
|
1,834
|
7,973
|
7,309
|
|
|
|
|
|
|
|
Income
from Operations
|
349
|
510
|
1,489
|
1,460
|
|
|
|
|
|
|
|
Other Income
(Expenses)
|
|
|
|
|
|
Interest expense
|
(53)
|
(53)
|
(202)
|
(204)
|
|
Other income, net
|
156
|
(83)
|
514
|
46
|
|
Total other income
(expense)
|
103
|
(136)
|
312
|
(158)
|
|
|
|
|
|
|
|
Income from Continuing Operations before Income Taxes
|
452
|
374
|
1,801
|
1,302
|
|
Income Tax Expense
|
(85)
|
(69)
|
(341)
|
(237)
|
|
|
|
|
|
|
|
Income from Continuing Operations
|
|
|
|
|
|
before Non-controlling Interest, net of tax
|
367
|
305
|
1,460
|
1,065
|
|
|
|
|
|
|
|
Loss (income)
from discontinued operations, net of tax
|
(1)
|
1
|
(5)
|
(4)
|
|
|
|
|
|
|
|
NET INCOME
|
$366
|
$306
|
$1,455
|
$1,061
|
|
|
|
|
|
|
|
Less: Net income attributable to the non-controlling interest
|
13
|
126
|
139
|
282
|
|
|
|
|
|
|
|
Net Income attributable to Trio-Tech International
|
353
|
180
|
1,316
|
779
|
|
|
|
|
|
|
|
Net Income Attributable to Trio-Tech International:
|
|
|
|
|
|
Income from continuing operations, net of tax
|
355
|
181
|
1,325
|
788
|
|
Income (loss)
from discontinued operations, net of tax
|
(2)
|
(1)
|
(9)
|
(9)
|
|
Net Income Attributable to Trio-Tech International
|
$353
|
$180
|
$1,316
|
$779
|
|
|
|
|
|
|
|
Basic Earnings per
Share
|
$0.10
|
$0.05
|
$0.38
|
$0.22
|
|
|
|
|
|
|
|
Diluted Earnings per Share
|
$0.09
|
$0.05
|
$0.36
|
$0.22
|
|
|
|
|
|
|
|
Weighted Average Shares Outstanding - Basic
|
3,523
|
3,513
|
3,523
|
3,513
|
|
Weighted Average Shares Outstanding - Diluted
|
3,737
|
3,535
|
3,644
|
3,535
|
TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS
OF OPERATIONS AND COMPREHENSIVE INCOMEAUDITED
(IN
THOUSANDS, EXCEPT EARNINGS PER SHARE)
|
|
Three Months
Ended
June
30,
|
Twelve Months
Ended
June 30, |
||
|
|
2017
|
2016
|
2017
|
2016
|
|
Comprehensive Income
|
|
|
|
|
|
Attributable to Trio-Tech International:
|
|
|
|
|
|
|
||||
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Net income
|
$366
|
$306
|
$1,455
|
$1,061
|
|
Foreign currency translation, net of tax
|
408
|
(208)
|
(679)
|
(832)
|
|
Comprehensive Income
|
774
|
98
|
776
|
229
|
|
Less: Comprehensive
Income (Loss)
|
|
|
|
|
|
attributable to non-controlling interests
|
64
|
27
|
(11)
|
59
|
|
|
|
|
|
|
|
Comprehensive Income
|
|
|
|
|
|
Attributable to Trio-Tech International
|
$710
|
$71
|
$787
|
$170
|
|
|
|
|
|
|
|
TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
|
|||
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CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|||
|
(IN THOUSANDS, EXCEPT NUMBER OF SHARES)
|
|
|
Jun.
30,
|
Jun. 30,
|
|
|
2017
|
2016
|
|
ASSETS
|
|
|
|
CURRENT ASSETS:
|
|
|
|
Cash and cash equivalents
|
$4,772
|
$3,807
|
|
Short-term deposits
|
787
|
295
|
|
Trade accounts receivable, net
|
9,009
|
8,826
|
|
Other receivables
|
401
|
596
|
|
Inventories, net
|
1,756
|
1,460
|
|
Prepaid expenses and other current assets
|
226
|
264
|
|
Assets held for sale
|
86
|
92
|
|
Total current assets
|
17,037
|
15,340
|
|
|
|
|
|
Deferred tax assets
|
375
|
401
|
|
Investment properties, net
|
1,216
|
1,340
|
|
Property, plant and equipment, net
|
11,291
|
11,283
|
|
Other assets
|
1,922
|
1,788
|
|
Restricted term deposits
|
1,657
|
2,067
|
|
Total non-current assets
|
16,461
|
16,879
|
|
|
|
|
|
TOTAL ASSETS
|
$33,498
|
$32,219
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDER'S EQUITY
|
|
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
Lines of credit
|
$2,556
|
$2,491
|
|
Accounts payable
|
3,229
|
2,921
|
|
Accrued expenses
|
3,043
|
2,642
|
|
Income taxes payable
|
233
|
230
|
|
Current portion of bank loans payable
|
260
|
342
|
|
Current portion of capital leases
|
228
|
235
|
|
Total current liabilities
|
9,549
|
8,861
|
|
|
|
|
|
Bank loans payable, net of current portion
|
1,552
|
1,725
|
|
Capital leases, net of current portion
|
531
|
503
|
|
Deferred tax liabilities
|
295
|
216
|
|
Other non-current liabilities
|
44
|
43
|
|
Total non-current liabilities
|
2,422
|
2,487
|
|
|
|
|
|
TOTAL LIABILITIES
|
11,971
|
11,348
|
|
|
|
|
|
COMMITMENTS AND CONTINGENCIES
|
--
|
--
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
|
TRIO-TECH INTERNATIONAL'S SHAREHOLDERS' EQUITY:
|
|
|
|
Common stock, no par value, 15,000,000 shares authorized; 3,523,055 and
|
|
|
|
3,513,055
issued and outstanding at June
30, 2017 and June 30, 2016,
respectively
|
10,921
|
10,882
|
|
Paid-in capital
|
3,206
|
3,188
|
|
Accumulated retained earnings
|
4,341
|
3,025
|
|
Accumulated other comprehensive gain-translation adjustments
|
1,633
|
2,162
|
|
Total Trio-Tech International shareholders' equity
|
20,101
|
19,257
|
|
Non-controlling interest
|
1,426
|
1,614
|
|
|
|
|
|
TOTAL EQUITY
|
21,527
|
20,871
|
|
|
|
|
|
TOTAL LIABILITIES AND EQUITY
|
$33,498
|
$32,219
|
|
|
|
|