EX-99.2 3 s106990_ex99-2.htm EXHIBIT 99.2

 

Exhibit 99.2

 

(MAIER & COMPANY LOGO) 

NEWS RELEASE 

 

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

 

HIGHWAY HOLDINGS REPORTS FISCAL 2018 FIRST QUARTER RESULTS

 

HONG KONG —July 25, 2017 — 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)

 

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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   3    1 
Gain/(loss) on disposal of asset   46    — 
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 Shareholders  $217   $165 
           
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 30  March 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