Trio-Tech International (NYSE MKT:TRT) today announced unaudited financial results for the third quarter and first nine months of fiscal 2013.
For the three months ended March 31, 2013, revenue decreased 13.2% to $6,529,000 compared to $7,522,000 for the third quarter of fiscal 2012. The net loss attributable to Trio-Tech common shareholders for the third quarter of fiscal 2013 was $543,000, or $0.16 per share. This compares to a net loss of $518,000, or $0.16 per share, in same quarter last year.
For the nine months ended March 31, 2013, revenue increased 3.0% to $23,627,000, compared to $22,940,000 for the first nine months of fiscal 2012. The net loss attributable to Trio-Tech common shareholders for the first nine months of fiscal 2013 narrowed to $1,065,000, or $0.32 per share, compared to a net loss of $2,525,000, or $0.76 per share, for the same period of fiscal 2012.
Cash provided by operations for the first nine months of fiscal 2013 increased to $4,104,000, compared to cash used by operations for the first nine months of fiscal 2012 of $2,079,000. Shareholders' equity at March 31, 2013 was $20,516,000, or $6.23 per outstanding share, compared to $20,556,000, or $6.25 per outstanding share, at June 30, 2012.
"Trio-Tech's third quarter performance was mixed, with revenue from semiconductor testing services up 8.5%, driven by higher testing volume in Malaysia and China, while sales of our semiconductor testing equipment fell 29%, primarily due to delayed shipments to customers. Higher gross margin in testing services, a sharply reduced loss in the oil and gas equipment fabrication segment, where we terminated our facilities lease in December, 2012, and lower operating expenses combined to reduce the loss from operations by about a third to $634,000 from $933,000 for last year's third quarter. We believe these factors will continue to benefit the Company in the future," said SW Yong, Trio-Tech's CEO.
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, oil and gas equipment fabrication 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, www.shi-international.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 Southeast Asia, including currency fluctuations and devaluation, currency restrictions, local laws and restrictions and possible social, political and economic instability; 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 Quarterly Report 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 | ||||||||||||||||
| UNAUDITED (IN THOUSANDS, EXCEPT EARNINGS PER SHARE) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| March 31, | March 31, | |||||||||||||||
| Revenue | 2013 | 2012 | 2013 | 2012 | ||||||||||||
| Products | $ | 3,018 | $ | 4,268 | $ | 12,073 | $ | 10,685 | ||||||||
| Testing Services | 3,407 | 3,141 | 11,085 | 9,247 | ||||||||||||
| Fabrication Services | 71 | 83 | 373 | 2,883 | ||||||||||||
| Other | 33 | 30 | 96 | 125 | ||||||||||||
| 6,529 | 7,522 | 23,627 | 22,940 | |||||||||||||
| Costs of Sales | ||||||||||||||||
| Cost of products sold | 2,538 | 3,575 | 10,363 | 8,925 | ||||||||||||
| Cost of testing services rendered | 2,621 | 2,597 | 8,140 | 7,797 | ||||||||||||
| Cost of fabrication services rendered | 174 | 403 | 752 | 3,063 | ||||||||||||
| Other | 32 | 23 | 97 | 75 | ||||||||||||
| 5,365 | 6,598 | 19,352 | 19,860 | |||||||||||||
| Gross Margin | 1,164 | 924 | 4,275 | 3,080 | ||||||||||||
| Operating Expenses: | ||||||||||||||||
| General and administrative | 1,580 | 1,620 | 5,135 | 5,884 | ||||||||||||
| Selling | 148 | 164 | 411 | 431 | ||||||||||||
| Research and development | 72 | 73 | 217 | 221 | ||||||||||||
| (Gain) Loss on disposal of property, plant and equipment | (2 | ) | -- | (6 | ) | 4 | ||||||||||
| Total operating expenses | 1,798 | 1,857 | 5,757 | 6,540 | ||||||||||||
| Loss from Operations | (634 | ) | (933 | ) | (1,482 | ) | (3,460 | ) | ||||||||
| Other Income (Expenses) | ||||||||||||||||
| Interest expense | (72 | ) | (83 | ) | (239 | ) | (215 | ) | ||||||||
| Other income, net | 147 | 158 | 404 | 179 | ||||||||||||
| Total other (expenses) income | 75 | 75 | 165 | (36 | ) | |||||||||||
| Loss from Continuing Operations before Income Taxes | (559 | ) | (858 | ) | (1,317 | ) | (3,496 | ) | ||||||||
| Income Tax Benefit (Expense) | (28 | ) | 14 | 96 | 114 | |||||||||||
| Loss from Continuing Operations before Non-controlling Interest, net of tax | (587 | ) | (844 | ) | (1,221 | ) | (3,382 | ) | ||||||||
| Equity in earnings of unconsolidated joint venture, net of tax | -- | -- | -- | (11 | ) | |||||||||||
| LOSS FROM DISCONTINUED OPERATIONS, net of tax | -- | -- | -- | (2 | ) | |||||||||||
| NET LOSS | $ | (587 | ) | $ | (844 | ) | $ | (1,221 | ) | $ | (3,395 | ) | ||||
| Less: Net loss attributable to the non-controlling interest | (44 | ) | (326 | ) | (156 | ) | (870 | ) | ||||||||
| Net Loss attributable to Trio-Tech International | (543 | ) | (518 | ) | (1,065 | ) | (2,525 | ) | ||||||||
| Net Loss Attributable to Trio-Tech International: | ||||||||||||||||
| Loss from continuing operations, net of tax | (543 | ) | (518 | ) | (1,065 | ) | (2,523 | ) | ||||||||
| Loss from discontinued operations, net of tax | -- | -- | -- | (2 | ) | |||||||||||
| Net Loss Attributable to Trio-Tech International | $ | (543 | ) | $ | (518 | ) | $ | (1,065 | ) | $ | (2,525 | ) | ||||
| Comprehensive (Loss) Attributable to Trio-Tech: | ||||||||||||||||
| Net loss | $ | (587 | ) | $ | (844 | ) | $ | (1,221 | ) | $ | (3,395 | ) | ||||
| Foreign currency translation, net of tax | (52 | ) | 193 | 665 | 84 | |||||||||||
| Comprehensive (Loss) | (639 | ) | (651 | ) | (556 | ) | (3,311 | ) | ||||||||
| Less: Comprehensive (loss) attributable to non-controlling Interest | (61 | ) | (297 | ) | (8 | ) | (863 | ) | ||||||||
| Comprehensive (Loss) Attributable to Trio-Tech | (578 | ) | (354 | ) | (548 | ) | (2,448 | ) | ||||||||
| Basic and diluted loss per share from continuing operations | $ | (0.16 | ) | $ | (0.16 | ) | $ | (0.32 | ) | $ | (0.76 | ) | ||||
| Basic and diluted loss per share from discontinued operations | -- | -- | -- | -- | ||||||||||||
| Basic and diluted Loss per Share | $ | (0.16 | ) | $ | (0.16 | ) | $ | (0.32 | ) | $ | (0.76 | ) | ||||
| Weighted Average Shares Outstanding - Basic and Diluted | 3,322 | 3,322 | 3,322 | 3,322 | ||||||||||||
| TRIO-TECH INTERNATIONAL AND SUBSIDIARIES | ||||||
| CONSOLIDATED BALANCE SHEETS | ||||||
| (IN THOUSANDS, EXCEPT NUMBER OF SHARES) | ||||||
| March 31, | June 30, | |||||
| 2013 | 2012 | |||||
| ASSETS | (unaudited) | |||||
| CURRENT ASSETS: | ||||||
| Cash & cash equivalents | $ | 2,347 | $ | 1,572 | ||
| Short-term deposits | 110 | 250 | ||||
| Trade accounts receivable, net | 6,512 | 11,311 | ||||
| Other receivables | 322 | 962 | ||||
Loans receivable from property development projects | 1,126 | 1,101 | ||||
| Inventories, net | 1,677 | 2,324 | ||||
| Prepaid expenses and other current assets | 468 | 406 | ||||
| Assets held for sale | -- | 130 | ||||
| Total current assets | 12,562 | 18,056 | ||||
INVESTMENTS | 782 | 765 | ||||
| INVESTMENT PROPERTIES, Net | 1,903 | 1,815 | ||||
| PROPERTY, PLANT AND EQUIPMENT, Net | 13,156 | 13,193 | ||||
| OTHER ASSETS | 499 | 776 | ||||
| RESTRICTED TERM DEPOSITS | 3,554 | 3,445 | ||||
| TOTAL ASSETS | $ | 32,456 | $ | 38,050 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
| CURRENT LIABILITIES: | ||||||
| Lines of credit | $ | 2,285 | $ | 3,605 | ||
| Accounts payable | 1,922 | 4,834 | ||||
| Accrued expenses | 2,851 | 3,011 | ||||
| Income taxes payable | 461 | 469 | ||||
| Current portion of bank loans payable | 734 | 766 | ||||
| Current portion of capital leases | 131 | 175 | ||||
| Total current liabilities | 8,384 | 12,860 | ||||
| BANK LOANS PAYABLE, net of current portion | 2,913 | 3,373 | ||||
| CAPITAL LEASES, net of current portion | 262 | 221 | ||||
| DEFERRED TAX LIABILITIES | 369 | 497 | ||||
| OTHER NON-CURRENT LIABILITIES | 12 | 543 | ||||
| TOTAL LIABILITIES | 11,940 | 17,494 | ||||
| COMMITMENTS AND CONTINGENCIES | -- | -- | ||||
| EQUITY | ||||||
| TRIO-TECH INTERNATIONAL'S SHAREHOLDERS' EQUITY: | ||||||
Common stock, no par value, 15,000,000 shares authorized; 3,321,555 shares issued and outstanding at March 31, 2013, and June 30, 2012, respectively | 10,531 | 10,531 | ||||
| Paid-in capital | 2,754 | 2,431 | ||||
| Accumulated retained earnings | 1,622 | 2,687 | ||||
| Accumulated other comprehensive gain-translation adjustments | 3,704 | 3,187 | ||||
| Total Trio-Tech International shareholders' equity | 18,611 | 18,836 | ||||
| NON-CONTROLLING INTEREST | 1,905 | 1,720 | ||||
| TOTAL EQUITY | 20,516 | 20,556 | ||||
| TOTAL LIABILITIES AND EQUITY | $ | 32,456 | $ | 38,050 | ||
Contacts:
Trio-Tech International
A. Charles
Wilson
Chairman
818-787-7000
or
Investor Contact:
Berkman
Associates
310-477-3118
info@BerkmanAssociates.com
