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| 8-K - CURRENT REPORT - TRIO-TECH INTERNATIONAL | trt8k_feb92016.htm |
EXHIBIT 99.1
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FOR IMMEDIATE RELEASE
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Company Contact:
A. Charles Wilson
Chairman
(818) 787-7000
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Investor Contact:
Berkman Associates
(310) 477-3118
info@BerkmanAssociates.com
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Trio-Tech Reports Net Income of $0.13 Per Share for the First Half
Of Fiscal 2016 Versus a Loss of $0.01 Per Share Last Year
Van Nuys, CA – February 9, 2016 – Trio-Tech International (NYSE MKT: TRT) today announced financial results for the second quarter and first six months of fiscal 2016:
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Fiscal 2016 second quarter net income increased to $0.05 per share compared to net income of $0.03 per share for the second quarter of fiscal 2015.
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Fiscal 2016 first half net income increased to $0.13 per share compared to a net loss of $0.01 per share for the first half of fiscal 2015.
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Operating income for the first half of fiscal 2016 doubled to $627,000 compared to operating income of $314,000 for the first half of fiscal 2015.
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Cash and cash equivalents increased to $4,370,000, or $1.24 per share, at December 31, 2015 compared to $3,711,000, or $1.06 per share at June 30, 2015.
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CEO Comments
S.W. Yong, Trio-Tech's CEO, said, "Our focus on profitability is clearly evident in our financial results for the second quarter and even more dramatically for the first half of fiscal 2016. The combination of higher gross margin and lower operating expenses for this year's first half compared to the same period last year drove a 100% increase in operating income as well as a substantial increase in net income versus prior year. And we achieved these improvements despite a decrease in revenue, attributable to reduced demand for our semiconductor testing services this year compared to last year. Revenue and operating profitability were reduced by foreign currency translation adjustment reflecting the strength of the US dollar this year compared with the same period last year. These improvements attest to the flexibility of our operations and our control over operating costs.
"We are especially pleased by the rapid growth of our distribution business, which provides products manufactured by other companies that are complementary to Trio-Tech's proprietary semiconductor testing products sold through our manufacturing segment. One of our primary objectives is to further expand our distribution revenue to help offset the volatility which is characteristic of our semiconductor testing business. We are pursuing this objective diligently, and we are optimistic that we can continue building on the progress we have achieved to date."
Fiscal 2016 First Half Results
For the six months ended December 31, 2015, revenue decreased 4.2% to $16,284,000 compared to revenue of $16,990,000 for the first six months of fiscal 2015. Manufacturing revenue increased 0.3% to $6,416,000 for this year's first half compared to $6,395,000 for the same period a year earlier, and revenue from the distribution of products manufactured by others tripled to $2,334,000 compared to $817,000. These increases were offset by a 22.8% decrease in semiconductor testing services to $7,484,000 for this year's first half compared to $9,691,000 for the same period last fiscal year, primarily reflecting reduced orders from a major customer in Asia.
(more)
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Trio-Tech Reports Net Income of $0.13 Per Share for the First Half Of Fiscal 2016 Versus
a Loss of $0.01 Per Share Last Year
February 9, 2016
Page Two
Net income attributable to Trio-Tech International common shareholders for the first six months of fiscal 2016 increased to $449,000, or $0.13 per basic and diluted share, which included a loss from discontinued operations of $4,000, or $0.00 per share. This compares to a net loss attributable to Trio-Tech International common shareholders for the first six months of fiscal 2015 of $30,000, or $0.01 per basic and diluted share, which included income from discontinued operations of $20,000, or $0.00 per share.
Gross margin for this year's first half was 26.4% compared to 25.0% for the same period last fiscal year. Operating expenses decreased to $3,666,000 for the first half of fiscal 2016 compared to $3,926,000 for the same period last fiscal year.
Income from operations for the first half of fiscal 2016 increased to $627,000 compared to $314,000 for the first half of fiscal 2015.
Shareholders' equity at December 31, 2015 was $19,966,000, or $5.68 per outstanding share, compared to $20,722,000, or $5.90 per outstanding share, at June 30, 2015. There were approximately 3,513,000 common shares outstanding at December 31, 2015 and June 30, 2015.
Fiscal 2016 Second Quarter Results
For the three months ended December 31, 2015, revenue decreased 6.1% to $8,354,000 compared to $8,897,000 for the second quarter of fiscal 2015, primarily the result of a 27.0% decrease in testing services revenue that more than offset a tripling of revenue from distribution for the period.
Net income attributable to Trio-Tech International common shareholders for the second quarter of fiscal 2016 increased to $190,000, or $0.05 per basic and diluted share. This compares to net income attributable to Trio-Tech International common shareholders of $94,000, or $0.03 per basic and diluted share, for the second quarter of fiscal 2015.
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 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) #5012
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TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
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UNAUDITED (IN THOUSANDS, EXCEPT EARNINGS PER SHARE)
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Three Months Ended
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Six Months Ended
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December 31,
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December 31,
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Revenue
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2015
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2014
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2015
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2014
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Manufacturing
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$ | 3,276 | $ | 3,348 | $ | 6,416 | $ | 6,395 | ||||||||
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Testing services
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3,701 | 5,073 | 7,484 | 9,691 | ||||||||||||
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Distribution
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1,359 | 432 | 2,334 | 817 | ||||||||||||
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Others
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18 | 44 | 50 | 87 | ||||||||||||
| 8,354 | 8,897 | 16,284 | 16,990 | |||||||||||||
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Cost of Sales
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Cost of manufactured products sold
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2,471 | 2,726 | 4,580 | 5,599 | ||||||||||||
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Cost of testing services rendered
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2,499 | 3,356 | 5,257 | 6,405 | ||||||||||||
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Cost of distribution
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1,240 | 337 | 2,093 | 677 | ||||||||||||
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Others
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29 | 35 | 61 | 69 | ||||||||||||
| 6,239 | 6,454 | 11,991 | 12,750 | |||||||||||||
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Gross Margin
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2,115 | 2,443 | 4,293 | 4,240 | ||||||||||||
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Operating Expenses:
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General and administrative
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1,599 | 1,711 | 3,261 | 3,438 | ||||||||||||
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Selling
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141 | 165 | 312 | 296 | ||||||||||||
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Research and development
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51 | 47 | 97 | 94 | ||||||||||||
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Impairment loss
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-- | 55 | -- | 70 | ||||||||||||
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(Gain) loss on disposal of property, plant and equipment
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(4 | ) | 28 | (4 | ) | 28 | ||||||||||
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Total operating expenses
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1,787 | 2,006 | 3,666 | 3,926 | ||||||||||||
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Income from Operations
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328 | 437 | 627 | 314 | ||||||||||||
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Other (Expenses) Income
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Interest expenses
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(51 | ) | (58 | ) | (104 | ) | (122 | ) | ||||||||
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Other income, net
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18 | 7 | 226 | 54 | ||||||||||||
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Total other (expenses) income
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(33 | ) | (51 | ) | 122 | (68 | ) | |||||||||
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Income from Continuing Operations before Income Taxes
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295 | 386 | 749 | 246 | ||||||||||||
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Income Tax Expenses
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(86 | ) | (132 | ) | (153 | ) | (86 | ) | ||||||||
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Income from Continuing Operations
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before Non-controlling Interest, Net of Tax
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209 | 254 | 596 | 160 | ||||||||||||
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Income (loss) from Discontinued Operations, Net of Tax
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6 | (6 | ) | (4 | ) | 20 | ||||||||||
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NET INCOME
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215 | 248 | 592 | 180 | ||||||||||||
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Less: Income Attributable to Non-controlling Interest
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25 | 154 | 143 | 210 | ||||||||||||
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Net Income (Loss) Attributable to Trio-Tech International
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$ | 190 | $ | 94 | $ | 449 | $ | (30 | ) | |||||||
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Net Income (Loss) Attributable to Trio-Tech International:
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Income (Loss) from Continuing Operations, Net of Tax
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188 | 97 | 452 | (41 | ) | |||||||||||
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Income (Loss) from Discontinued Operations, Net of Tax
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2 | (3 | ) | (3 | ) | 11 | ||||||||||
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Net Income attributable to Trio-Tech International
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$ | 190 | $ | 94 | $ | 449 | $ | (30 | ) | |||||||
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Basic and Diluted Earnings (Loss) per Share:
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From continuing operations
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$ | 0.05 | $ | 0.03 | $ | 0.13 | $ | (0.01 | ) | |||||||
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From discontinued operations
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-- | -- | -- | -- | ||||||||||||
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Basic and Diluted Earnings (Loss) per Share
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$ | 0.05 | $ | 0.03 | $ | 0.13 | $ | (0.01 | ) | |||||||
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Weighted Average Shares Outstanding – Basic
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3,513 | 3,513 | 3,513 | 3,513 | ||||||||||||
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Weighted Average Shares Outstanding – Diluted
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3,529 | 3,513 | 3,525 | 3,513 | ||||||||||||
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TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
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UNAUDITED (IN THOUSANDS, EXCEPT EARNINGS PER SHARE)
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Three Months Ended
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Six Months Ended
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December 31,
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December 31,
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2015
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2014
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2015
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2014
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Comprehensive Income (Loss)
Attributable to Trio-Tech International:
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Net income
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$ | 215 | $ | 248 | $ | 592 | $ | 180 | ||||||||
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Foreign Currency Translation, Net of Tax
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22 | (574 | ) | (1,403 | ) | (414 | ) | |||||||||
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Comprehensive Income (Loss)
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237 | (326 | ) | (811 | ) | (234 | ) | |||||||||
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Less: Comprehensive Income (Loss)
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Attributable to Non-controlling Interest
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114 | 36 | (138 | ) | 150 | |||||||||||
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Comprehensive Income (Loss)
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Attributable to Trio-Tech International
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$ | 123 | $ | (362 | ) | $ | (673 | ) | $ | (384 | ) | |||||
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TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
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CONDENSED CONSOLIDATED BALANCE SHEETS
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(IN THOUSANDS, EXCEPT NUMBER OF SHARES)
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Dec. 31,
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Jun. 30,
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2015
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2015
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ASSETS
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(Unaudited)
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CURRENT ASSETS:
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Cash and cash equivalents
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$ | 4,370 | $ | 3,711 | ||||
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Short-term deposits
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93 | 101 | ||||||
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Trade accounts receivable, net
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7,302 | 7,875 | ||||||
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Other receivables
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299 | 389 | ||||||
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Inventories, net
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1,709 | 1,141 | ||||||
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Prepaid expenses and other current assets
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269 | 244 | ||||||
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Assets held for sale
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86 | 98 | ||||||
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Total current assets
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14,128 | 13,559 | ||||||
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Deferred tax assets
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413 | 453 | ||||||
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Investment properties, net
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1,421 | 1,540 | ||||||
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Property, plant and equipment, net
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10,825 | 12,522 | ||||||
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Other assets
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1,737 | 1,823 | ||||||
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Restricted term deposits
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1,966 | 2,140 | ||||||
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Total non-current assets
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16,362 | 18,478 | ||||||
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TOTAL ASSETS
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$ | 30,490 | $ | 32,037 | ||||
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LIABILITIES AND SHAREHOLDER'S EQUITY
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CURRENT LIABILITIES:
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Lines of credit
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$ | 1,472 | $ | 1,578 | ||||
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Accounts payable
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3,042 | 2,770 | ||||||
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Accrued expenses
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2,647 | 3,084 | ||||||
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Income taxes payable
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232 | 296 | ||||||
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Current portion of bank loans payable
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319 | 346 | ||||||
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Current portion of capital leases
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206 | 197 | ||||||
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Total current liabilities
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7,918 | 8,271 | ||||||
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Bank loans payable, net of current portion
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1,792 | 2,198 | ||||||
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Capital leases, net of current portion
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504 | 475 | ||||||
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Deferred tax liabilities
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273 | 333 | ||||||
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Other non-current liabilities
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37 | 38 | ||||||
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Total non-current liabilities
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2,606 | 3,044 | ||||||
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TOTAL LIABILITIES
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10,524 | 11,315 | ||||||
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COMMITMENTS AND CONTINGENCIES
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EQUITY
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TRIO-TECH INTERNATIONAL'S SHAREHOLDERS' EQUITY:
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Common stock, no par value, 15,000,000 shares authorized; 3,513,055 shares
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issued and outstanding at December 31, 2015 and June 30, 2015, respectively
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10,882 | 10,882 | ||||||
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Paid-in capital
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3,142 | 3,087 | ||||||
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Accumulated retained earnings
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2,695 | 2,246 | ||||||
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Accumulated other comprehensive gain-translation adjustments
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1,649 | 2,771 | ||||||
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Total Trio-Tech International shareholders' equity
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18,368 | 18,986 | ||||||
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Non-controlling interest
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1,598 | 1,736 | ||||||
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TOTAL EQUITY
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19,966 | 20,722 | ||||||
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TOTAL LIABILITIES AND EQUITY
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$ | 30,490 | $ | 32,037 | ||||
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