VAN NUYS, Calif.--(BUSINESS WIRE)--
Trio-Tech International (NYSE MKT: TRT) today announced financial results for the fourth quarter and fiscal year ended June 30, 2016:
- Fiscal 2016 revenue increased 1.5% to $34,454,000 compared to revenue of $33,932,000 for fiscal 2015. Income from operations increased 21.0%.
- Fiscal 2016 net income increased 49.5% to $0.22 per diluted share compared to $0.15 per diluted share for fiscal 2015.
- Fourth quarter fiscal 2016 revenue increased 5.0% to $8,815,000 compared to revenue of $8,399,000 for the fourth quarter of fiscal 2015. Income from operations increased 21.1%.
- Fourth quarter fiscal 2016 net income decreased to $0.05 per diluted share compared to $0.10 per diluted share for the fourth quarter of fiscal 2015.
CEO Comments
S.W. Yong, Trio-Tech's CEO, said, "We are pleased to report higher revenue and net income for Trio-Tech for fiscal 2016 compared to fiscal 2015, an especially noteworthy performance in view of the challenging operating environment in the global semiconductor industry we confronted again this past year. We attribute these improved results to the success of our efforts to reduce costs while enhancing our reputation for quality service and products.
"Our primary goal is to increase value for our shareholders. Toward this end, we remain focused on continuing to build our core business by expanding our service and product offerings as well as our client base."
Fiscal 2016 Fourth Quarter Results
For the fourth quarter ended June 30, 2016, revenue increased 5.0% to $8,815,000 compared to revenue of $8,399,000 for the fourth quarter of the prior fiscal year. Gross margin improved slightly to 26.6% of revenue compared to 26.2% of revenue for the fourth quarter of fiscal 2015.
General and administrative expenses for the fourth quarter of fiscal 2016 declined to 18.0% of revenue versus 19.9% of revenue for the fourth quarter of fiscal 2015, contributing to a 21.1% increase in income from operations to $510,000 for the fourth quarter of fiscal 2016 compared to $421,000 for the fourth quarter of fiscal 2015.
Net income attributable to Trio-Tech International common shareholders for the fourth quarter of fiscal 2016 was $180,000, or $0.05 per diluted share, compared to net income attributable to Trio-Tech International common shareholders of $352,000, or $0.10 per diluted share, for the fourth quarter of fiscal 2015. Net income for the fourth quarter of fiscal 2016 reflected a foreign exchange loss of $245,000, while net income for the fourth quarter of 2015 benefited from a foreign exchange gain of $256,000.
Fiscal 2016 Results
For the fiscal year ended June 30, 2016, revenue increased 1.5% to $34,454,000 compared to revenue of $33,932,000 in fiscal 2015. Gross margin for fiscal 2016 decreased to 25.5% of revenue from 26.3% of revenue for fiscal 2015.
General and administrative expenses for fiscal 2016 decreased to 18.7% of revenue compared to 20.2% of revenue for fiscal 2015, contributing to a 21.0% increase in income from operations to $1,460,000 for fiscal 2016 compared to $1,207,000 for fiscal 2015.
Fiscal 2016 net income attributable to Trio-Tech International common shareholders increased 49.5% to $779,000, or $0.22 per diluted share, compared to $521,000, or $0.15 per diluted share, for fiscal 2015. Net income for fiscal 2016 reflected a foreign exchange loss of $371,000, while net income for fiscal 2015 benefited from a foreign exchange gain of $84,000.
Shareholders' equity at June 30, 2016 was $20,871,000, or $5.94 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 June 30, 2016 and June 30, 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.
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TRIO-TECH INTERNATIONAL AND SUBSIDIARIES |
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CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME |
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AUDITED (IN THOUSANDS, EXCEPT EARNINGS PER SHARE) |
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Three Months Ended |
Twelve Months Ended |
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June 30, |
June 30, |
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| Revenue | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||
| Products | $ | 3,626 | $ | 3,119 | $ | 14,510 | $ | 12,873 | ||||||||||||
| Testing services | 4,174 | 4,191 | 15,280 | 18,020 | ||||||||||||||||
| Distribution | 976 | 1,046 | 4,542 | 2,866 | ||||||||||||||||
| Other | 39 | 43 | 122 | 173 | ||||||||||||||||
| 8,815 | 8,399 | 34,454 | 33,932 | |||||||||||||||||
| Cost of Sales | ||||||||||||||||||||
| Cost of products sold | 2,831 | 2,175 | 11,008 | 10,318 | ||||||||||||||||
| Cost of testing services rendered | 2,760 | 3,068 | 10,587 | 12,059 | ||||||||||||||||
| Distribution | 849 | 925 | 3,967 | 2,493 | ||||||||||||||||
| Other | 31 | 34 | 123 | 137 | ||||||||||||||||
| 6,471 | 6,202 | 25,685 | 25,007 | |||||||||||||||||
| Gross Margin | 2,344 | 2,197 | 8,769 | 8,925 | ||||||||||||||||
| Operating Expenses: | ||||||||||||||||||||
| General and administrative | 1,588 | 1,673 | 6,449 | 6,848 | ||||||||||||||||
| Selling | 206 | 186 | 676 | 717 | ||||||||||||||||
| Research and development | 52 | 44 | 200 | 182 | ||||||||||||||||
| Impairment loss | -- | -- | -- | 70 | ||||||||||||||||
| (Loss) on disposal of property, plant and equipment | (12 | ) | (127 | ) | (16 | ) | (99 | ) | ||||||||||||
| Total operating expenses | 1,834 | 1,776 | 7,309 | 7,718 | ||||||||||||||||
| Income from Operations | 510 | 421 | 1,460 | 1,207 | ||||||||||||||||
| Other Income (Expenses) | ||||||||||||||||||||
| Interest expense | (53 | ) | (71 | ) | (204 | ) | (245 | ) | ||||||||||||
| Other income, net | (83 | ) | 306 | 46 | 363 | |||||||||||||||
| Total other income (expense) | (136 | ) | 235 | (158 | ) | 118 | ||||||||||||||
| Income from Continuing Operations before Income Taxes | 374 | 656 | 1,302 | 1,325 | ||||||||||||||||
| Income Tax (Expense) | (69 | ) | (251 | ) | (237 | ) | (507 | ) | ||||||||||||
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Income from Continuing Operations before Non-controlling Interest, net of tax |
305 | 405 | 1,065 | 818 | ||||||||||||||||
| Loss (income) from discontinued operations, net of tax | 1 | (1 | ) | (4 | ) | 6 | ||||||||||||||
| NET INCOME | $ | 306 | $ | 404 | $ | 1,061 | $ | 824 | ||||||||||||
| Less: Net income attributable to the non-controlling interest | 126 | 52 | 282 | 303 | ||||||||||||||||
| Net Income attributable to Trio-Tech International | 180 | 352 | 779 | 521 | ||||||||||||||||
| Net Income Attributable to Trio-Tech International: | ||||||||||||||||||||
| Income from continuing operations, net of tax | 181 | 351 | 788 | 517 | ||||||||||||||||
| Income (loss) from discontinued operations, net of tax | (1 | ) | 1 | (9 | ) | 4 | ||||||||||||||
| Net Income Attributable to Trio-Tech International | $ | 180 | $ | 352 | $ | 779 | $ | 521 | ||||||||||||
| Basic and diluted earnings per share | ||||||||||||||||||||
| From continuing operations | $ | 0.05 | $ | 0.10 | $ | 0.22 | $ | 0.15 | ||||||||||||
| From discontinued operations | -- | -- | -- | -- | ||||||||||||||||
| Basic and diluted Earnings per Share | $ | 0.05 | $ | 0.10 | $ | 0.22 | $ | 0.15 | ||||||||||||
| Weighted Average Shares Outstanding - Basic | 3,513 | 3,513 | 3,513 | 3,513 | ||||||||||||||||
| Weighted Average Shares Outstanding - Diluted | 3,535 | 3,529 | 3,535 | 3,529 | ||||||||||||||||
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TRIO-TECH INTERNATIONAL AND SUBSIDIARIES |
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CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME |
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AUDITED (IN THOUSANDS, EXCEPT EARNINGS PER SHARE) |
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Three Months Ended |
Twelve Months Ended |
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June 30, |
June 30, |
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| 2016 | 2015 | 2016 | 2015 | |||||||||||||||||
| Comprehensive Income (Loss) | ||||||||||||||||||||
| Attributable to Trio-Tech International: | ||||||||||||||||||||
| Net income | $ | 306 | $ | 404 | $ | 1,061 | $ | 824 | ||||||||||||
| Foreign currency translation, net of tax | (208 | ) | (283 | ) | (832 | ) | (1,050 | ) | ||||||||||||
| Comprehensive Income (Loss) | 98 | 121 | 229 | (226 | ) | |||||||||||||||
| Less: Comprehensive (loss) income | ||||||||||||||||||||
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attributable to non-controlling interests |
27 | (106 | ) | 59 | 4 | |||||||||||||||
| Comprehensive Income (Loss) | ||||||||||||||||||||
| Attributable to Trio-Tech International | $ | 71 | $ | 227 | $ | 170 | $ | (230 | ) | |||||||||||
| TRIO-TECH INTERNATIONAL AND SUBSIDIARIES | ||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||
| (IN THOUSANDS, EXCEPT NUMBER OF SHARES) | ||||||||||
| June 30, | June 30, | |||||||||
| 2016 | 2015 | |||||||||
| ASSETS | ||||||||||
| CURRENT ASSETS: | ||||||||||
| Cash and cash equivalents | $ | 3,807 | $ | 3,711 | ||||||
| Short-term deposits | 295 | 101 | ||||||||
| Trade accounts receivable, net | 8,826 | 7,875 | ||||||||
| Other receivables | 596 | 389 | ||||||||
| Inventories, net | 1,460 | 1,141 | ||||||||
| Prepaid expenses and other current assets | 264 | 244 | ||||||||
| Assets held for sale | 92 | 98 | ||||||||
| Total current assets | 15,340 | 13,559 | ||||||||
| Deferred tax assets | 401 | 453 | ||||||||
| Investment properties, net | 1,340 | 1,540 | ||||||||
| Property, plant and equipment, net | 11,283 | 12,522 | ||||||||
| Other assets | 1,788 | 1,823 | ||||||||
| Restricted term deposits | 2,067 | 2,140 | ||||||||
| Total non-current assets | 16,879 | 18,478 | ||||||||
| TOTAL ASSETS | $ | 32,219 | $ | 32,037 | ||||||
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LIABILITIES AND SHAREHOLDERS' EQUITY |
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| CURRENT LIABILITIES: | ||||||||||
| Lines of credit | $ | 2,491 | $ | 1,578 | ||||||
| Accounts payable | 2,921 | 2,770 | ||||||||
| Accrued expenses | 2,642 | 3,084 | ||||||||
| Income taxes payable | 230 | 296 | ||||||||
| Current portion of bank loans payable | 342 | 346 | ||||||||
| Current portion of capital leases | 235 | 197 | ||||||||
| Total current liabilities | 8,861 | 8,271 | ||||||||
| Bank loans payable, net of current portion | 1,725 | 2,198 | ||||||||
| Capital leases, net of current portion | 503 | 475 | ||||||||
| Deferred tax liabilities | 216 | 333 | ||||||||
| Other non-current liabilities | 43 | 38 | ||||||||
| Total non-current liabilities | 2,487 | 3,044 | ||||||||
| TOTAL LIABILITIES | 11,348 | 11,315 | ||||||||
| COMMITMENTS AND CONTINGENCIES | -- | -- | ||||||||
| 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 issued and outstanding at June 30, 2016 and June 30, 2015, respectively |
10,882 | 10,882 | ||||||||
| Paid-in capital | 3,188 | 3,087 | ||||||||
| Accumulated retained earnings | 3,025 | 2,246 | ||||||||
| Accumulated other comprehensive gain-translation adjustments | 2,162 | 2,771 | ||||||||
| Total Trio-Tech International shareholders' equity | 19,257 | 18,986 | ||||||||
| Non-controlling interest | 1,614 | 1,736 | ||||||||
| TOTAL EQUITY | 20,871 | 20,722 | ||||||||
| TOTAL LIABILITIES AND EQUITY | $ | 32,219 | $ | 32,037 | ||||||
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