Trio-Tech International (NYSE MKT: TRT) today announced financial results for the first quarter of fiscal 2018:
● Revenue increased 22.0% compared to the first quarter of fiscal 2017.
● Operating income increased 45.1% compared to the first quarter of fiscal 2017.
● Net income attributable to TRT increased 89.8% compared to the first quarter of fiscal 2017.
● Earnings per share doubled to $0.16 compared to $0.08 for the first quarter of fiscal 2017.
CEO Comments
S.W. Yong, Trio-Tech's CEO, said, "Trio-Tech's excellent first quarter financial results speak for themselves: Revenue increased sharply in each of our business segments, driving commensurate gains in operating income, net income and earnings per share versus the first quarter of last fiscal year. Our Singapore and Tianjin, China operations were especially strong, and business conditions there currently appear likely to remain favorable. This was our strongest quarterly financial performance in quite some time, a tribute to the hard work and dedication of Trio-Tech's entire team, and we are optimistic regarding the remainder of the year."
Fiscal 2018 First Quarter Results
For the first fiscal quarter ended September 30, 2017, revenue increased to $10,945,000 compared to revenue of $8,971,000 for the same quarter last year. Manufacturing revenue increased 29.8% to $4,765,000 for this year's first quarter compared to $3,671,000 for the first quarter a year ago. Semiconductor testing services revenue increased 10.8% to $4,605,000 for the first quarter of fiscal 2018, compared to $4,157,000 a year earlier. Distribution revenue increased 39.1% to $1,536,000 for this year's first quarter from $1,104,000 for the first quarter of fiscal 2017.
Gross margin for the first quarter of fiscal 2018 increased 17.0% to $2,760,000 compared to $2,358,000 in the same quarter last year. A change in product mix at both manufacturing and testing services reduced gross margin to 25.2% of revenue, compared to 26.3% of revenue for the first quarter last year.
Operating expenses for the first quarter of fiscal 2018 increased to $2,213,000, but declined to 20.2% of revenue from $1,981,000, or 22.1% of revenue, a year earlier. The decline in operating expenses, as a percent of revenue, contributed to a 45.1% increase in income from operations to $547,000 from $377,000 for the first quarter of fiscal 2017.
Net income attributable to Trio-Tech common shareholders for the first quarter of fiscal 2018 increased 89.8% to $575,000, or $0.16 per diluted share, compared to $303,000, or $0.08 per diluted share in the same quarter last year.
Shareholders' equity at September 30, 2017 was $22,554,000, or $6.38 per outstanding share, compared to $21,527,000, or $6.11 per outstanding share, at June 30, 2017. There were approximately 3,533,055 common shares outstanding at September 30, 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 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.
| TRIO-TECH INTERNATIONAL AND SUBSIDIARIES | |||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | |||||||||||
| UNAUDITED (IN THOUSANDS, EXCEPT EARNINGS PER SHARE) | |||||||||||
| Three Months Ended | |||||||||||
| September 30, | |||||||||||
| Revenue | 2017 | 2016 | |||||||||
| Products | $ | 4,765 | $ | 3,671 | |||||||
| Testing services | 4,605 | 4,157 | |||||||||
| Distribution | 1,536 | 1,104 | |||||||||
| Other | 39 | 39 | |||||||||
| 10,945 | 8,971 | ||||||||||
| Cost of Sales | |||||||||||
| Cost of products sold | 3,649 | 2,795 | |||||||||
| Cost of testing services rendered | 3,139 | 2,814 | |||||||||
| Distribution | 1,368 | 991 | |||||||||
| Other | 29 | 13 | |||||||||
| 8,185 | 6,613 | ||||||||||
| Gross Margin | 2,760 | 2,358 | |||||||||
| Operating Expenses: | |||||||||||
| General and administrative | 1,839 | 1,743 | |||||||||
| Selling | 179 | 185 | |||||||||
| Research and development | 184 | 53 | |||||||||
| Impairment loss of property, plant and equipment | 11 | -- | |||||||||
| Total operating expenses | 2,213 | 1,981 | |||||||||
| Income from Operations | 547 | 377 | |||||||||
| Other Income (Expenses) | |||||||||||
| Interest expense | (58 | ) | (58 | ) | |||||||
| Other income, net | 158 | 110 | |||||||||
| Total other income | 100 | 52 | |||||||||
| Income from Continuing Operations before Income Taxes | 647 | 429 | |||||||||
| Income Tax Expense | (42 | ) | (83 | ) | |||||||
| Income from Continuing Operations before Non-controlling Interest, net of tax | 605 | 346 | |||||||||
| Income (loss) from discontinued operations, net of tax | (3 | ) | 1 | ||||||||
| NET INCOME | 602 | 347 | |||||||||
| Less: Net income attributable to the non-controlling interest | 27 | 44 | |||||||||
| Net Income attributable to Trio-Tech International | $ | 575 | $ | 303 | |||||||
| Net Income Attributable to Trio-Tech International: | |||||||||||
| Income from continuing operations, net of tax | 576 | 303 | |||||||||
| Loss from discontinued operations, net of tax | (1 | ) | -- | ||||||||
| Net Income Attributable to Trio-Tech International | $ | 575 | $ | 303 | |||||||
| Earnings per share | |||||||||||
| Basic earnings per share | $ | 0.16 | $ | 0.09 | |||||||
| Diluted earnings per share | $ | 0.16 | $ | 0.08 | |||||||
| Weighted Average Shares Outstanding - Basic | 3,533 | 3,513 | |||||||||
| Weighted Average Shares Outstanding - Diluted | 3,673 | 3,579 | |||||||||
| TRIO-TECH INTERNATIONAL AND SUBSIDIARIES | ||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | ||||||||||
| UNAUDITED (IN THOUSANDS, EXCEPT EARNINGS PER SHARE) | ||||||||||
| Three Months Ended | ||||||||||
| September 30, | ||||||||||
| 2017 | 2016 | |||||||||
| Comprehensive Income Attributable to Trio-Tech International: | ||||||||||
| Net income | $ | 602 | $ | 347 | ||||||
| Foreign currency translation, net of tax | 375 | (283 | ) | |||||||
| Comprehensive Income | 977 | 64 | ||||||||
| Less: Comprehensive income (loss) attributable to non-controlling interests | 27 | (21 | ) | |||||||
| Comprehensive Income Attributable to Trio-Tech International | $ | 950 | $ | 85 | ||||||
| TRIO-TECH INTERNATIONAL AND SUBSIDIARIES | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (IN THOUSANDS, EXCEPT NUMBER OF SHARES) | ||||||||
| Sep. 30, | Jun. 30, | |||||||
| 2017 | 2017 | |||||||
| ASSETS | (unaudited) | |||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 3,188 | $ | 4,772 | ||||
| Short-term deposits | 1,043 | 787 | ||||||
| Trade accounts receivable, net | 10,172 | 9,009 | ||||||
| Other receivables | 302 | 401 | ||||||
| Inventories, net | 2,482 | 1,756 | ||||||
| Prepaid expenses and other current assets | 336 | 226 | ||||||
| Assets held for sale | 87 | 86 | ||||||
| Total current assets | 17,610 | 17,037 | ||||||
| Deferred tax assets | 432 | 375 | ||||||
| Investment properties, net | 1,216 | 1,216 | ||||||
| Property, plant and equipment, net | 11,542 | 11,291 | ||||||
| Other assets | 2,220 | 1,922 | ||||||
| Restricted term deposits | 1,686 | 1,657 | ||||||
| Total non-current assets | 17,096 | 16,461 | ||||||
| TOTAL ASSETS | $ | 34,706 | $ | 33,498 | ||||
| LIABILITIES AND SHAREHOLDER'S EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Lines of credit | $ | 1,581 | $ | 2,556 | ||||
| Accounts payable | 3,766 | 3,229 | ||||||
| Accrued expenses | 3,483 | 3,043 | ||||||
| Income taxes payable | 255 | 233 | ||||||
| Current portion of bank loans payable | 343 | 260 | ||||||
| Current portion of capital leases | 214 | 228 | ||||||
| Total current liabilities | 9,642 | 9,549 | ||||||
| Bank loans payable, net of current portion | 1,650 | 1,552 | ||||||
| Capital leases, net of current portion | 491 | 531 | ||||||
| Deferred tax liabilities | 324 | 295 | ||||||
| Other non-current liabilities | 45 | 44 | ||||||
| Total non-current liabilities | 2,510 | 2,422 | ||||||
| TOTAL LIABILITIES | 12,152 | 11,971 | ||||||
| EQUITY | ||||||||
| TRIO-TECH INTERNATIONAL'S SHAREHOLDERS' EQUITY: | ||||||||
| Common stock, no par value, 15,000,000 shares authorized; 3,533,055 and 3,523,055 | ||||||||
| shares issued and outstanding at September 30, 2017 and June 30, 2017, respectively | 10,972 | 10,921 | ||||||
| Paid-in capital | 3,207 | 3,206 | ||||||
| Accumulated retained earnings | 4,916 | 4,341 | ||||||
| Accumulated other comprehensive gain-translation adjustments | 2,007 | 1,633 | ||||||
| Total Trio-Tech International shareholders' equity | 21,102 | 20,101 | ||||||
| Non-controlling interest | 1,452 | 1,426 | ||||||
| TOTAL EQUITY | 22,554 | 21,527 | ||||||
| TOTAL LIABILITIES AND EQUITY | $ | 34,706 | $ | 33,498 | ||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20171109005664/en/
Contacts:
Trio-Tech International
A. Charles
Wilson
818-787-7000
Chairman
or
Investor Contact:
Berkman
Associates
310-477-3118
info@BerkmanAssociates.com
