Attached files
| file | filename |
|---|---|
| 8-K - CURRENT REPORT - TRIO-TECH INTERNATIONAL | trt8k_sep252018.htm |
Exhibit
99.1
 |
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 91% to
$0.17 Per Diluted Share Versus $0.09 Per Share Last
Year
Fiscal 2018 Operating Income Increased 47% on a 10% Gain in
Revenue
Van Nuys, CA – September 25, 2018
– Trio-Tech International
(NYSE MKT: TRT) today announced financial results for the
fourth quarter and fiscal year ended June 30, 2018:
●
Fourth quarter net
income increased 91% to $0.17 per diluted share vs $0.09 for the
same quarter last year.
●
Fiscal
2018 operating income increased 47% vs fiscal 2017.
●
Fiscal 2018 net
income after one-time $900,000 tax expense was $0.31 per diluted
share vs $0.36 for fiscal 2017.
CEO
Comments
"The
fourth quarter of fiscal 2018 was another good quarter for
Trio-Tech. Improved gross margin and slightly higher revenue helped
us deliver solid earnings growth for the quarter, capping an
impressive year for our company.
"Fiscal
2018 revenue increased at each of Trio-Tech’s core business
segments, compared to fiscal 2017, and was led by a 17% gain in our
revenue at our testing services operations. However, our
bottom-line performance for fiscal 2018 was affected by a one-time,
income tax expense of $900,000, related to the Tax Cuts and Jobs
Act of 2017, which requires a mandatory one-time repatriation of
certain earnings and profits of the Company’s foreign
subsidiaries previously deferred from U.S. taxation. This estimated
tax is payable over a period of eight years at no interest and is
not expected to have a material effect on the Company’s
working capital position. Without this one-time tax expense, net
earnings for fiscal 2018 would have exceeded our fiscal 2017
result.
"Trio-Tech's
financial condition grew even stronger in fiscal 2018. Higher cash
flow from operations versus prior year contributed to an increase
in cash and equivalents to $1.84 per outstanding share at June 30,
2018, compared to $1.35 per outstanding share at June 30, 2017.
Shareholders' equity also increased, to $6.61 per outstanding share
at the close of fiscal 2018 compared to $6.11 per outstanding share
at June 30, 2017.
"Our
backlog at the end of fiscal 2018 remained strong at $8,699,000
compared to $7,546,000 at the end of fiscal 2017," said S.W. Yong,
Trio-Tech's CEO.
Fiscal
2018 Fourth Quarter Results
For the
fiscal fourth quarter ended June 30, 2018, revenue increased 1% to
$10,760,000 compared to revenue of $10,638,000 for the fourth
quarter of fiscal 2017. Testing services revenue increased 13% to
$4,937,000 compared to $4,382,000 for the same quarter last year
reflecting higher volume at the company's Singapore, Malaysia and
Tianjin, China facilities. Manufacturing revenue increased 1% to
$4,116,000 from $4,068,000 due to firmer demand at Trio-Tech's
Suzhou, China and U.S. operations. Distribution revenue declined
22% to $1,678,000 from $2,151,000, primarily because of lower
customer demand in Asia.
Gross
margin for the fiscal fourth quarter improved to 27% of revenue,
compared to 22% of revenue for the same quarter of the prior fiscal
year, driven primarily by a favorable product mix in Trio-Tech's
manufacturing segment.
(more)
-1-
Trio-Tech
Fourth Quarter Net Income Increased 91% to $0.17 Per Diluted
Share
September 25,
2018
Page
Two
Operating expenses
for the fourth quarter were $2,142,000, or 20% of revenue, compared
to $2,014,000, or 19% of revenue, for the fourth quarter of fiscal
2017.
Income
from operations for the fourth quarter more than doubled to
$709,000 from $349,000 for the fourth quarter of fiscal
2017.
Net
income attributable to Trio-Tech International common shareholders
for the fourth quarter of fiscal 2018 increased 91% to $675,000, or
$0.17 per diluted share, from $353,000, or $0.09 per diluted share,
for the fourth quarter of the prior fiscal year.
Fiscal
2018 Results
For the
twelve months ended June 30, 2018, revenue increased 10% to
$42,361,000 compared to revenue of $38,538,000 for fiscal 2017.
Testing services revenue increased 17% to $19,391,000, compared to
$16,586,000 for fiscal 2017. Manufacturing revenue increased 5% to
$15,978,000 compared to $15,289,000 in fiscal 2017. Distribution
revenue increased 5% to $6,853,000 compared to $6,511,000 in fiscal
2017.
Gross
profit for fiscal 2018 increased 12% to $10,638,000 compared to
$9,462,000 for fiscal 2017. Gross margin was approximately 25% of
revenue in both periods, as higher gross margin for the
manufacturing segment were offset by lower gross margin in testing
services.
Operating expenses
for fiscal 2018 increased 6% to $8,450,000 compared to $7,973,000
for fiscal 2017, but declined, as percent of revenue, to 20% from
21% for fiscal 2017.
Income from operations increased 47% to
$2,188,000 compared to $1,489,000 in
fiscal 2017.
Net
income attributable to Trio-Tech International common shareholders
for fiscal 2018 declined 10% to $1,184,000, or $0.31 per diluted
share, compared to $1,316,000, or $0.36 per diluted share in fiscal
2017. Fiscal 2018 net income was affected by a one-time, income tax
expense of $900,000, related to the Tax Cuts and Jobs Act of
2017.
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)
-2-
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TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
|
|||||
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CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
|
|||||
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AUDITED (IN THOUSANDS, EXCEPT EARNINGS PER SHARE)
|
|
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Three Months Ended
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Twelve
Months Ended
|
||
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June 30,
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June 30,
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||
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Revenue
|
2018
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2017
|
2018
|
2017
|
|
Manufacturing
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$4,116
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$4,068
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$15,978
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$15,289
|
|
Testing services
|
4,937
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4,382
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19,391
|
16,586
|
|
Distribution
|
1,678
|
2,151
|
6,853
|
6,511
|
|
Others
|
29
|
37
|
139
|
152
|
|
|
|
|
|
|
|
|
10,760
|
10,638
|
42,361
|
38,538
|
|
Cost of Sales
|
|
|
|
|
|
Cost of manufactured
products sold
|
2,967
|
3,329
|
12,213
|
12,091
|
|
Cost of testing services rendered
|
3,442
|
2,988
|
13,323
|
11,057
|
|
Cost of
distribution
|
1,470
|
1,929
|
6,068
|
5,828
|
|
Others
|
30
|
29
|
119
|
100
|
|
|
7,909
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8,275
|
31,723
|
29,076
|
|
Gross Margin
|
2,851
|
2,363
|
10,638
|
9,462
|
|
Operating Expenses:
|
|
|
|
|
|
General and administrative
|
1,911
|
1,733
|
7,250
|
6,911
|
|
Selling
|
214
|
220
|
826
|
807
|
|
Research and development
|
74
|
52
|
451
|
208
|
|
(Loss) Gain
on disposal of property, plant and equipment
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(57)
|
9
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(77)
|
47
|
|
Total operating expenses
|
2,142
|
2,014
|
8,450
|
7,973
|
|
Income
from Operations
|
709
|
349
|
2,188
|
1,489
|
|
Other (Expenses)
Income
|
|
|
|
|
|
Interest expense
|
(59)
|
(53)
|
(233)
|
(202)
|
|
Other income, net
|
24
|
156
|
335
|
514
|
|
Total other
(Expenses) Income
|
(35)
|
103
|
102
|
312
|
|
Income from Continuing Operations before Income Taxes
|
674
|
452
|
2,290
|
1,801
|
|
Income Tax
Benefit Expense
|
48
|
(85)
|
(987)
|
(341)
|
|
Income from Continuing Operations
|
|
|
|
|
|
before Non-controlling Interest, net of tax
|
722
|
367
|
1,303
|
1,460
|
|
Loss
from discontinued operations, net of tax
|
(2)
|
(1)
|
(13)
|
(5)
|
|
NET INCOME
|
720
|
366
|
1,290
|
1,455
|
|
Less: Net income attributable to the non-controlling interest
|
45
|
13
|
106
|
139
|
|
|
|
|
|
|
|
Net Income attributable to Trio-Tech International
|
675
|
353
|
1,184
|
1,316
|
|
Net Income Attributable to Trio-Tech International:
|
|
|
|
|
|
Income from continuing operations, net of tax
|
677
|
355
|
1,197
|
1,325
|
|
Loss
from discontinued operations, net of tax
|
(2)
|
(2)
|
(13)
|
(9)
|
|
Net Income Attributable to Trio-Tech International
|
$675
|
$353
|
$1,184
|
$1,316
|
|
Basic Earnings per
Share - Continuing Operations
|
$0.19
|
$0.10
|
$0.34
|
$0.38
|
|
Basic Loss per
Share - Discontinued Operations
|
(0.01)
|
--
|
(0.01)
|
--
|
|
Basic
Earnings per Share
|
$0.18
|
$0.10
|
$0.33
|
$0.38
|
|
Diluted Earnings per Share
– Continuing Operations
|
$0.18
|
$0.09
|
$0.32
|
$0.36
|
|
Diluted Loss per
Share – Discontinued Operations
|
(0.01)
|
--
|
(0.01)
|
--
|
|
Diluted
Earnings per Share
|
$0.17
|
$0.09
|
$0.31
|
$0.36
|
|
Weighted Average Shares Outstanding - Basic
|
3,553
|
3,523
|
3,553
|
3,523
|
|
Weighted Average Shares Outstanding - Diluted
|
3,714
|
3,737
|
3,771
|
3,644
|
-3-
|
TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
|
|||||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
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|||||||||
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AUDITED (IN THOUSANDS, EXCEPT EARNINGS PER SHARE)
|
|
|
Three Months Ended
|
Twelve
Months Ended
|
||
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June 30,
|
June
30,
|
||
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|
2018
|
2017
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2018
|
2017
|
|
Comprehensive Income
|
|
|
|
|
|
Attributable to Trio-Tech International:
|
|
|
|
|
|
|
|
|
|
|
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Net income
|
$720
|
$366
|
$1,290
|
$1,455
|
|
Foreign currency translation, net of tax
|
(1,081)
|
408
|
728
|
(679)
|
|
Comprehensive (Loss)
Income
|
(361)
|
774
|
2,018
|
776
|
|
Less: Comprehensive
Income (Loss)
|
|
|
|
|
|
attributable to non-controlling interests
|
30
|
64
|
285
|
(11)
|
|
Comprehensive (Loss)
Income
|
|
|
|
|
|
Attributable to Trio-Tech International
|
$(391)
|
$710
|
$1,733
|
$787
|
-4-
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TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
|
||
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CONDENSED
CONSOLIDATED BALANCE SHEETS
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||
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(IN THOUSANDS, EXCEPT NUMBER OF SHARES)
|
||
|
|
||
|
|
June
30,
|
June 30,
|
|
|
2018
|
2017
|
|
ASSETS
|
(audited)
|
|
|
CURRENT ASSETS:
|
|
|
|
Cash and cash equivalents
|
$6,539
|
$4,772
|
|
Short-term deposits
|
653
|
787
|
|
Trade accounts receivable, net
|
8,007
|
9,009
|
|
Other receivables
|
621
|
401
|
|
Inventories, net
|
2,930
|
1,756
|
|
Prepaid expenses and other current assets
|
208
|
226
|
|
Assets held for sale
|
91
|
86
|
|
|
|
|
|
Total current assets
|
19,049
|
17,037
|
|
|
|
|
|
Deferred tax assets
|
400
|
375
|
|
Investment properties, net
|
1,146
|
1,216
|
|
Property, plant and equipment, net
|
11,935
|
11,291
|
|
Other assets
|
2,249
|
1,922
|
|
Restricted term deposits
|
1,695
|
1,657
|
|
|
|
|
|
Total non-current assets
|
17,425
|
16,461
|
|
|
|
|
|
TOTAL ASSETS
|
$36,474
|
$33,498
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
Lines of credit
|
$2,043
|
$2,556
|
|
Accounts payable
|
3,704
|
3,229
|
|
Accrued expenses
|
3,172
|
3,043
|
|
Income taxes payable
|
285
|
233
|
|
Current portion of bank loans payable
|
367
|
260
|
|
Current portion of capital leases
|
250
|
228
|
|
|
|
|
|
Total current liabilities
|
9,821
|
9,549
|
|
|
|
|
|
Bank loans payable, net of current portion
|
1,437
|
1,552
|
|
Capital leases, net of current portion
|
524
|
531
|
|
Deferred tax liabilities
|
327
|
295
|
|
Income
taxes payable
|
828
|
--
|
|
Other non-current liabilities
|
36
|
44
|
|
|
|
|
|
Total non-current liabilities
|
3,152
|
2,422
|
|
|
|
|
|
TOTAL LIABILITIES
|
12,973
|
11,971
|
|
|
|
|
|
COMMITMENTS AND CONTINGENCIES
|
--
|
--
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
|
TRIO-TECH INTERNATIONAL'S SHAREHOLDERS' EQUITY:
|
|
|
|
Common stock, no par value, 15,000,000 shares authorized; 3,553,055 and
|
|
|
|
3,523,055
issued and outstanding at June
30, 2018 and June 30, 2017,
respectively
|
11,023
|
10,921
|
|
Paid-in capital
|
3,249
|
3,206
|
|
Accumulated retained earnings
|
5,525
|
4,341
|
|
Accumulated other comprehensive gain-translation adjustments
|
2,182
|
1,633
|
|
|
|
|
|
Total Trio-Tech International shareholders' equity
|
21,979
|
20,101
|
|
|
|
|
|
Non-controlling interest
|
1,522
|
1,426
|
|
|
|
|
|
TOTAL EQUITY
|
23,501
|
21,527
|
|
|
|
|
|
TOTAL LIABILITIES AND EQUITY
|
$36,474
|
$33,498
|
-5-