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| 8-K - CURRENT REPORT - TRIO-TECH INTERNATIONAL | trt8k.htm |
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LOS
ANGELES
SINGAPORE
KUALA
LUMPUR
BANGKOK
SUZHOU
TIANJIN
CHONGQING
|
|
FOR IMMEDIATE RELEASE
|
Company
Contact:
Investor Contact:
A.
Charles
Wilson
Berkman Associates
Chairman
(310) 927-3108
(818)
787-7000
info@BerkmanAssociates.com
|
Trio-Tech
Reports Fourth Quarter and Fiscal 2020 Results
Van Nuys, CA – September 23, 2020
– Trio-Tech International
(NYSE MKT: TRT) today announced financial results for the
fourth quarter and fiscal year ended June 30, 2020.
Fourth
Quarter Results
Revenue
for the fourth quarter of fiscal 2020 decreased 32% to $7,179,000
compared to $10,625,000 for the fourth quarter of fiscal 2019,
primarily due to the global Covid-19 pandemic which affected demand
for Trio-Tech’s semiconductor manufacturing products and
testing services. Manufacturing revenue decreased 43% to $2,724,000
compared to $4,803,000 in the same quarter last year, testing
services revenue decreased 28% to $2,822,000 compared to
$3,941,000, and distribution revenue decreased 13% to $1,620,000
compared to $1,864,000 in the same quarter last year.
The
pandemic contributed to a decline in revenue, which, coupled with a
change in product mix, reduced gross margin to $1,323,000 for the
fourth quarter of fiscal 2020 from $2,468,000 for last year’s
fourth quarter. As a percentage of revenue, gross margin declined
to 18% compared to 23% of revenue for the same quarter last fiscal
year.
The
decline in sales, triggered primarily by the effect of the
pandemic, resulted in a fourth quarter loss from operations of
$541,000, compared to income from operations of $321,000 in the
same quarter last fiscal year.
Net
income for the fourth quarter of fiscal 2020 was $197,000, or $0.05
per diluted share, compared to net income of $449,000, or $0.12 per
diluted share, in the same quarter last year. Net income for the
fourth quarter of fiscal 2020 benefitted from $455,000 in other
income which is included in financial assistance received from
local government in Singapore, Malaysia and China to mitigate the
negative impact of the Covid-19 pandemic.
Shareholders'
equity at June 30, 2020 increased to $25,146,000, or $6.84 per
outstanding share, compared to $24,861,000, or $6.77 per
outstanding share, at June 30, 2019. There were 3,673,055 common
shares outstanding at June 30, 2020.
CEO
Comments
S.W.
Yong, Trio-Tech's CEO, said, “There is no doubt that
Trio-Tech was hit hard in the past few months by the Covid-19
pandemic. Under these difficult circumstances we are proud to
report that Trio-Tech remained profitable for the fiscal year and
fourth quarter, posting profits from sales of properties held for
sale in our Malaysia operation. Additionally, backlog at the close
of fiscal 2020 was $9,340,000, a solid figure which compares
favorably to our backlog of $10,149,000 at the end of fiscal 2019.
While the continuing pandemic presents obstacles to the
Company’s short-term outlook, we are taking significant steps
to trim operations, cutting operating and overhead expenses to deal
with the financial effects of the pandemic.
(more)
16139
Wyandotte Street, Van Nuys, CA 91406, USA ● TEL: (818)
787-7000 ● FAX (818) 787-9130
Trio-Tech
Reports Fourth Quarter and Twelve Months Results
September 23,
2020
Page
Two
Fiscal
2020 Results
For the
fiscal year ended June 30, 2020, revenue decreased 12% to
$34,465,000 compared to $39,198,000 in fiscal 2019, primarily
related to the effects of the Covid-19 pandemic. Manufacturing
revenue decreased 22% to $11,605,000 compared to $14,889,000 and
testing services revenue decreased 11% to $14,840,000 compared to
$16,760,000 for fiscal 2019. Distribution revenue increased 7% to
$7,958,000 compared to $7,451,000 for fiscal 2019.
Fiscal
2020 gross margin decreased to $7,266,000, or 21% of revenue,
compared to $9,001,000, or 23% of revenue for fiscal
2019.
The
revenue decline, primarily brought about by the pandemic
contributed to an operating loss for fiscal 2020 of $859,000,
compared to income from operations of $794,000 for fiscal
2019.
Net
income for fiscal 2020 was $966,000, or $0.26 per diluted share,
compared to net income of $1,545,000, or $0.41 per diluted share,
for fiscal 2019.
Net
income for fiscal 2020 benefited from other income of $2,054,000,
which included a pre-tax gain of $1,172,000 from the sale of real
estate properties and an additional $718,000 in governmental grants
to mitigate the negative impacts on our businesses from the
pandemic. In fiscal 2019, other income amounting to $615,000
included a pre-tax gain of $685,000 from the sale of
properties.
About Trio-Tech
Established in 1958, Trio-Tech International is
located in Van Nuys, California, with its Principal Executive
Office and regional headquarter in Singapore. Trio-Tech
International is a diversified business group with interests in
semiconductor testing services, manufacturing and distribution of
semiconductor testing equipment, and real estate. Our subsidiary
locations include Tianjin, Suzhou, Chongqing in China, as well as
Kuala Lumpur Malaysia and Bangkok Thailand. Further information
about Trio-Tech's semiconductor products and services can be
obtained from the Company's Web site at www.triotech.com
and www.universalfareast.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; public health issues
related to the COVID-19 pandemic; 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
|
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|||||||||
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AUDITED (IN THOUSANDS, EXCEPT EARNINGS PER SHARE)
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|||||||||
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|
|
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||||||
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Three Months Ended
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Twelve
Months Ended
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||
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June 30,
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June 30,
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||
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Revenue
|
2020
|
2019
|
2020
|
2019
|
|
|
|
|
|
|
|
Manufacturing
|
$2,724
|
$4,803
|
$11,605
|
$14,889
|
|
Testing services
|
2,822
|
3,941
|
14,840
|
16,760
|
|
Distribution
|
1,620
|
1,864
|
7,958
|
7,451
|
|
Real
estate
|
13
|
17
|
62
|
98
|
|
|
7,179
|
10,625
|
34,465
|
39,198
|
|
Cost of Sales
|
|
|
|
|
|
Cost of manufactured
products sold
|
2,138
|
3,587
|
8,927
|
11,393
|
|
Cost of testing services rendered
|
2,307
|
2,851
|
11,353
|
12,202
|
|
Cost of
distribution
|
1,393
|
1,674
|
6,847
|
6,505
|
|
Cost of real
estate
|
18
|
45
|
72
|
97
|
|
|
5,856
|
8,157
|
27,199
|
30,197
|
|
Gross Margin
|
1,323
|
2,468
|
7,266
|
9,001
|
|
|
|
|
|
|
|
Operating Expenses:
|
|
|
|
|
|
General and administrative
|
1,657
|
1,826
|
6,976
|
7,049
|
|
Selling
|
132
|
246
|
679
|
826
|
|
Research and development
|
75
|
75
|
355
|
345
|
|
Impairment loss on
long-lived assets
|
--
|
--
|
139
|
--
|
|
Gain
on disposal of property, plant and equipment
|
--
|
--
|
(24)
|
(13)
|
|
Total operating expenses
|
1,864
|
2,147
|
8,125
|
8,207
|
|
(Loss) Income
from Operations
|
(541)
|
321
|
(859)
|
794
|
|
|
|
|
|
|
|
Other (Expenses)
Income
|
|
|
|
|
|
Interest expense
|
(44)
|
(69)
|
(230)
|
(319)
|
|
Other income, net
|
522
|
29
|
1,112
|
249
|
|
Gain on sale of
properties
|
--
|
--
|
1,172
|
685
|
|
Total other
Income (Expenses)
|
478
|
(40)
|
2,054
|
615
|
|
|
|
|
|
|
|
(Loss)
Income from Continuing Operations before Income Taxes
|
(63)
|
281
|
1,195
|
1,409
|
|
Income Tax
Benefit
|
124
|
201
|
12
|
42
|
|
Income from Continuing Operations
before Non-controlling Interest, net of tax
|
61
|
482
|
1,207
|
1,451
|
|
Gain (Loss)
from discontinued operations, net of tax
|
18
|
(1)
|
(3)
|
(3)
|
|
NET INCOME
|
79
|
481
|
1,204
|
1,448
|
|
Less: Net income
(loss) attributable to the non-controlling interest
|
(118)
|
32
|
238
|
(97)
|
|
Net Income attributable to Trio-Tech International
|
197
|
449
|
966
|
1,545
|
|
|
|
|
|
|
|
Net Income Attributable to Trio-Tech International:
|
|
|
|
|
|
Income from continuing operations, net of tax
|
187
|
451
|
967
|
1,548
|
|
Gain (Loss)
from discontinued operations, net of tax
|
10
|
(2)
|
(1)
|
(3)
|
|
Net Income Attributable to Trio-Tech International
|
197
|
449
|
966
|
1,545
|
|
|
|
|
|
|
|
Basic Earnings per
Share - Continuing Operations
|
$0.05
|
$0.12
|
$0.26
|
$0.42
|
|
Basic Loss per
Share - Discontinued Operations
|
--
|
--
|
--
|
--
|
|
Basic
Earnings per Share
|
$0.05
|
$0.12
|
$0.26
|
$0.42
|
|
|
|
|
|
|
|
Diluted Earnings per Share
– Continuing Operations
|
$0.05
|
$0.12
|
$0.26
|
$0.41
|
|
Diluted Loss per
Share – Discontinued Operations
|
--
|
--
|
--
|
--
|
|
Diluted
Earnings per Share
|
$0.05
|
$0.12
|
$0.26
|
$0.41
|
|
|
|
|
|
|
|
Weighted Average Shares Outstanding - Basic
|
3,673
|
3,673
|
3,673
|
3,673
|
|
Weighted Average Shares Outstanding - Diluted
|
3,688
|
3,681
|
3,722
|
3,762
|
|
TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
|
|||||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
|
|||||||||
|
AUDITED (IN THOUSANDS, EXCEPT EARNINGS PER SHARE)
|
|
|
Three Months Ended
|
Twelve
Months Ended
|
||
|
|
June 30,
|
June 30,
|
||
|
|
2020
|
2019
|
2020
|
2019
|
|
Comprehensive Income
|
|
|
|
|
|
Attributable to Trio-Tech International
|
|
|
|
|
|
Common
Shareholders:
|
|
|
|
|
|
|
||||
|
Net income
|
$79
|
$481
|
$1,204
|
$1,448
|
|
Foreign currency translation, net of tax
|
309
|
(231)
|
(742)
|
(420)
|
|
Comprehensive Income
|
388
|
250
|
462
|
1,028
|
|
Less: Comprehensive
(Loss) Income
|
|
|
|
|
|
attributable to non-controlling interests
|
(156)
|
(11)
|
220
|
(202)
|
|
|
|
|
|
|
|
Comprehensive Income
|
|
|
|
|
|
Attributable to Trio-Tech International
|
$544
|
$261
|
$242
|
$1,230
|
|
TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
|
|||
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|||
|
(IN THOUSANDS, EXCEPT NUMBER OF SHARES)
|
|||
|
|
|
|
June
30,
|
|
|
|
2020
|
2019
|
|
ASSETS
|
(Audited)
|
|
|
|
|
|
|
CURRENT ASSETS:
|
|
|
|
Cash and cash equivalents
|
$4,150
|
$4,863
|
|
Short-term deposits
|
6,697
|
4,144
|
|
Short-term advances
|
141
|
--
|
|
Trade accounts receivable, net
|
5,951
|
7,113
|
|
Other receivables
|
998
|
817
|
|
Inventories, net
|
1,922
|
2,427
|
|
Prepaid expenses and other current assets
|
341
|
287
|
|
Assets held for sale
|
--
|
89
|
|
|
|
|
|
Total current assets
|
20,200
|
19,740
|
|
|
|
|
|
Deferred tax assets
|
247
|
390
|
|
Investment properties, net
|
690
|
782
|
|
Property, plant and equipment, net
|
10,310
|
12,159
|
|
Operating lease
right-of-use assets
|
944
|
--
|
|
Other assets
|
1,609
|
1,750
|
|
Restricted term deposits
|
1,660
|
1,706
|
|
|
|
|
|
Total non-current assets
|
15,460
|
16,787
|
|
|
|
|
|
TOTAL ASSETS
|
$35,660
|
$36,527
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
Lines of credit
|
$172
|
$187
|
|
Accounts payable
|
2,590
|
3,272
|
|
Accrued expenses
|
3,005
|
3,486
|
|
Income taxes payable
|
344
|
417
|
|
Current portion of bank loans payable
|
370
|
488
|
|
Current portion of finance leases
|
231
|
283
|
|
Current portion of operating leases
|
477
|
--
|
|
Current portion of PPP loan
|
54
|
--
|
|
|
|
|
|
Total current liabilities
|
7,243
|
8,133
|
|
|
|
|
|
Bank loans payable, net of current portion
|
1,836
|
2,292
|
|
Finance leases, net of current portion
|
435
|
442
|
|
Operating leases, net of current portion
|
467
|
--
|
|
Deferred tax liabilities
|
--
|
327
|
|
Income taxes payable
|
430
|
439
|
|
PPP
loan, net of current portion
|
67
|
--
|
|
Other non-current liabilities
|
36
|
33
|
|
|
|
|
|
Total non-current liabilities
|
3,271
|
3,533
|
|
|
|
|
|
TOTAL LIABILITIES
|
10,514
|
11,666
|
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
|
TRIO-TECH INTERNATIONAL'S SHAREHOLDERS' EQUITY:
|
|
|
|
Common stock, no par value, 15,000,000 shares authorized; 3,673,055
|
|
|
|
shares issued and outstanding at June
30, 2020 and June 30, 2019,
respectively
|
11,424
|
11,424
|
|
Paid-in capital
|
3,363
|
3,305
|
|
Accumulated retained earnings
|
8,036
|
7,070
|
|
Accumulated other comprehensive gain-translation adjustments
|
1,143
|
1,867
|
|
|
|
|
|
Total Trio-Tech International shareholders' equity
|
23,966
|
23,666
|
|
|
|
|
|
Non-controlling interest
|
1,180
|
1,195
|
|
|
|
|
|
TOTAL EQUITY
|
25,146
|
24,861
|
|
|
|
|
|
TOTAL LIABILITIES AND EQUITY
|
$35,660
|
$36,527
|
|
|
|
|