 |
NEW YORK, November 15, 2012 /PRNewswire/ -- Global Sources Ltd. (NASDAQ: GSOL) reported financial results for the third quarter ended September 30, 2012.
"Our third quarter results reflect the increasing contribution of our exhibitions business and especially several of our shows for the mainland China domestic market," said Global Sources' executive chairman, Merle A. Hinrichs. "SZIC was held in July and is one of the largest fashion shows in Asia. The China International Optoelectronic Expo was held in September and is one of the world's largest optoelectronics shows. Both shows performed very well and represent a substantial broadening of our footprint in the mainland China domestic market.
"With regards to our core international trade-related business, we expect the soft overseas consumer demand to continue impacting our results. However, at our just completed fall series of China Sourcing Fairs in Hong Kong, we were quite satisfied with the overall attendance and level of buying activity."
Financial highlights -- Third quarter: 2012 compared to 2011
Financial highlights -- Nine Months Ended September 30: 2012 compared to 2011 -- in accordance with IFRS
Global Sources' CFO, Connie Lai, said: "Third quarter results were substantially enhanced by two new shows -- SZIC and the China Sourcing Fairs in Sao Paulo, Brazil. In addition, the Mumbai show moved from the fourth quarter last year to the third quarter this year. Our balance sheet remains strong. We closed the quarter with a cash and securities position of $110.8 million, as compared to $106.0 million at the end of June 2012, and we continue to have no debt."
"We are increasing our second half 2012 revenue and earnings guidance. For the second half of 2012, we expect the revenue mix to range between 46% and 47% for online, 44% and 45% for exhibitions, 6% and 7% for print, and approximately 3% for miscellaneous. In comparison, the revenue mix for the second half of 2011 was approximately 50% for online, 37% for exhibitions, 11% for print, and 2% for miscellaneous."
Financial expectations for the second half of 2012 under IFRS
Recent Corporate Highlights
Conference call for Global Sources third quarter 2012 earnings
Executive Chairman Merle A. Hinrichs and CFO Connie Lai are scheduled to conduct a conference call at 8:00 a.m. ET on November 15, 2012 (9:00 p.m. on November 15, 2012 in Hong Kong) to review these results in more detail. Investors in the United States may participate in the call by dialing (877) 941-2068, and non-Hong Kong international participants may dial (1-480) 629-9712. Investors in Hong Kong may participate by dialing (852) 3009-5027. The conference ID is 4570106 and participants are encouraged to dial 10 minutes prior to the call to prevent a delay in joining. A live webcast of the conference call is scheduled to be available on Global Sources' corporate site at http://www.investor.globalsources.com.
For those who cannot listen to the live broadcast, a webcast replay of the call is scheduled to be available on the company's corporate site for 30 days. A telephone replay of the call is also scheduled to be available through November 23, 2012. To listen to the telephone replay dial (800) 406-7325 or dial (1-303) 590-3030 outside the United States, and enter pass code 4570106. For those in the Hong Kong area, the replay dial-in number is (852) 3056-2777, and the pass code is 4570106.
About Global Sources
Global Sources is a leading business-to-business media company and a primary facilitator of trade with Greater China.
The core business facilitates trade between Asia and the world using English-language media such as online marketplaces (http://www.globalsources.com), print and digital magazines, sourcing research reports, private sourcing events, trade shows, and online sourcing fairs.
Over 1.18 million international buyers, including 90 of the world's top 100 retailers, use these services to obtain product and company information to help them source more profitably from overseas supply markets. These services also provide suppliers with integrated marketing solutions to build corporate image, generate sales leads and win orders from buyers in more than 240 countries and territories.
Global Sources' other businesses provides Chinese-language media to companies selling to and within Greater China. These services include online web sites, print and digital magazines, seminars and trade shows. In mainland China, Global Sources has a network of more than 30 office locations and a community of over 4 million registered online users and magazine readers of its Chinese-language media.
Now in its fifth decade, Global Sources has been publicly listed on the NASDAQ since 2000.
Global Sources' non-IFRS metrics
Management believes non-IFRS metrics are useful measures of operations and provides IFRS to non-IFRS reconciliation tables at the end of this press release. Global Sources defines non-IFRS net income as net income excluding non-cash, SBC expense or credit, amortization of intangibles as it relates to certain equity compensation plans, gains or losses on acquisitions and investments, and/or impairment charges, for all historical and future references to non-IFRS metrics. Non-IFRS EPS is defined as non-IFRS net income divided by the weighted average of diluted common shares outstanding. Adjusted EBITDA is defined as earnings before interest, taxes, depreciation, amortization, stock-based compensation and impairment of goodwill and intangible assets.
Safe Harbor Statement
This news release contains forward-looking statements within the meaning of Section 27-A of the Securities Act of 1933, as amended and Section 21-E of the Securities Exchange Act of 1934, as amended. The company's actual results could differ materially from those set forth in the forward-looking statements as a result of the risks associated with the company's business, changes in general economic conditions, and changes in the assumptions used in making such forward-looking statements.
- Tables Follow - |
GLOBAL SOURCES LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In U.S. Dollars Thousands, Except Number of Shares and Per Share Data) | ||||||
As at September 30, | As at December 31, | |||||
2012 | 2011 | |||||
(Unaudited) | ||||||
ASSETS | ||||||
Current assets | ||||||
Cash and cash equivalents | $ | 100,134 | $ | 81,903 | ||
Term deposits with banks | 2,988 | 2,764 | ||||
Financial assets, available-for-sale | 7,651 | 13,250 | ||||
Accounts receivables | 4,197 | 4,711 | ||||
Receivables from sales representatives | 11,814 | 6,523 | ||||
Inventories | 297 | 230 | ||||
Prepaid expenses and other current assets | 25,573 | 20,895 | ||||
152,654 | 130,276 | |||||
Non-current assets | ||||||
Property and equipment | 54,064 | 55,761 | ||||
Investment properties | 74,321 | 75,370 | ||||
Intangible assets | 34,919 | 11,946 | ||||
Long term investment | 100 | 100 | ||||
Deferred income tax assets | 311 | 325 | ||||
Other non-current assets | 3,363 | 2,552 | ||||
167,078 | 146,054 | |||||
Total assets | $ | 319,732 | $ | 276,330 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
Current liabilities | ||||||
Accounts payable | $ | 10,801 | $ | 7,698 | ||
Deferred income and customer prepayments | 103,589 | 101,841 | ||||
Accrued liabilities | 18,852 | 17,723 | ||||
Income tax liabilities | 2,559 | 714 | ||||
135,801 | 127,976 | |||||
Non-current liabilities | ||||||
Deferred income and customer prepayments | 11,819 | 8,290 | ||||
Deferred income tax liabilities | 6,232 | 1,510 | ||||
18,051 | 9,800 | |||||
Total liabilities | 153,852 | 137,776 | ||||
Equity attributable to Company's shareholders | ||||||
Common shares | 520 | 518 | ||||
Treasury shares | (150,089) | (150,089) | ||||
Other reserves | 155,061 | 152,591 | ||||
Retained earnings | 147,682 | 126,653 | ||||
Total Company shareholders' equity | 153,174 | 129,673 | ||||
Non-controlling interests | 12,706 | 8,881 | ||||
Total equity | $ | 165,880 | $ | 138,554 | ||
Total liabilities and equity | $ | 319,732 | $ | 276,330 | ||
GLOBAL SOURCES LTD. AND SUBSIDIARIES | ||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||
Revenue: | ||||||||||||
Online and other media services (Note 1) | $ | 34,115 | $ | 36,669 | $ | 103,748 | $ | 104,612 | ||||
Exhibitions | 23,342 | 9,006 | 56,066 | 42,498 | ||||||||
Miscellaneous | 1,646 | 1,305 | 4,984 | 3,948 | ||||||||
$ | 59,103 | $ | 46,980 | $ | 164,798 | $ | 151,058 | |||||
Operating Expenses: | ||||||||||||
Sales (Note 2) | 18,686 | 17,249 | 57,252 | 55,058 | ||||||||
Event production | 6,548 | 2,616 | 16,534 | 13,364 | ||||||||
Community and content (Note 2) | 8,172 | 7,859 | 24,068 | 24,648 | ||||||||
General and administrative (Note 2) | 10,647 | 10,315 | 32,225 | 28,939 | ||||||||
Information and technology (Note 2) | 3,326 | 3,294 | 9,965 | 9,537 | ||||||||
Total Operating Expenses | $ | 47,379 | $ | 41,333 | $ | 140,044 | $ | 131,546 | ||||
Profit from Operations | $ | 11,724 | $ | 5,647 | $ | 24,754 | $ | 19,512 | ||||
Interest income | 300 | 83 | 732 | 199 | ||||||||
Share of loss of associate | - | - | (24) | - | ||||||||
Impairment loss on investment in associate | - | - | (302) | - | ||||||||
Profit before Income Taxes | $ | 12,024 | $ | 5,730 | $ | 25,160 | $ | 19,711 | ||||
Income tax expense | (1,514) | (633) | (2,050) | (1,157) | ||||||||
Net Profit | $ | 10,510 | $ | 5,097 | $ | 23,110 | $ | 18,554 | ||||
Net profit attributable to non-controlling interests | (2,305) | (1,134) | (2,081) | (967) | ||||||||
Net profit attributable to the Company's | $ | 8,205 |
$ | 3,963 |
$ | 21,029 |
$ | 17,587 | ||||
Diluted net profit per share attributable to | $ | 0.23 |
$ | 0.11 |
$ | 0.59 |
$ | 0.50 | ||||
Shares used in diluted net profit per share | 35,862,759 | 35,482,592 | 35,718,965 | 35,387,418 | ||||||||
Note: 1. Online and other media services consists of: | ||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||
Online services | $ | 29,975 | $ | 30,378 | $ | 90,897 | $ | 87,480 | ||||
Print services | 4,140 | 6,291 | 12,851 | 17,132 | ||||||||
$ | 34,115 | $ | 36,669 | $ | 103,748 | $ | 104,612 | |||||
Note: 2. Non-cash compensation expenses associated with the several equity compensation plans and Global Sources Directors Share Grant Award Plan included under various categories of expenses are as follows: | ||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||
Sales | $ | 175 | $ | 186 | $ | 412 | $ | 530 | ||||
Community and content | 23 | 56 | 39 | 173 | ||||||||
General and administrative | 424 | 434 | 1,159 | 1,053 | ||||||||
Information and technology | 61 | 64 | 197 | 207 | ||||||||
$ | 683 | $ | 740 | $ | 1,807 | $ | 1,963 | |||||
GLOBAL SOURCES LTD. AND SUBSIDIARIES | |||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||
IFRS EPS | $ | 0.23 | $ | 0.11 | $ | 0.59 | $ | 0.50 | |||||
IFRS Net Profit | $ | 8,205 | $ | 3,963 | $ | 21,029 | $ | 17,587 | |||||
Non-cash stock based compensation expense (Note 1) | 683 | 740 | 1,807 | 1,963 | |||||||||
Amortization of intangibles (Note 2) | 221 | 191 | 604 | 572 | |||||||||
Impairment loss on investment in associate | - | - | 302 | - | |||||||||
Non-IFRS Net Profit | $ | 9,109 | $ | 4,894 | $ | 23,742 | $ | 20,122 | |||||
Non-IFRS diluted net profit per share | $ | 0.25 | $ | 0.14 | $ | 0.66 | $ | 0.57 | |||||
Total shares used in non-IFRS diluted net profit | 35,862,759 | 35,482,592 | 35,718,965 | 35,387,418 | |||||||||
Notes: (1) Actual SBC is calculated based on actual share price on date of the awards. (2) Amortization of intangible assets relating to certain non-compete agreements. | |||||||||||||
GLOBAL SOURCES LTD. AND SUBSIDIARIES ADJUSTED EBITDA RECONCILIATION (In U.S. Dollars Thousands) | |||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||
IFRS profit from operations | $ | 11,724 | $ | 5,647 | $ | 24,754 | $ | 19,512 | |||||
Depreciation and amortization | 2,875 | 1,984 | 6,928 | 5,321 | |||||||||
EBITDA | 14,599 | 7,631 | 31,682 | 24,833 | |||||||||
Non-cash stock based compensation expense | 683 | 740 | 1,807 | 1,963 | |||||||||
Adjusted EBITDA | $ | 15,282 | $ | 8,371 | $ | 33,489 | $ | 26,796 | |||||
GLOBAL SOURCES LTD. AND SUBSIDIARIES GUIDANCE IFRS to NON-IFRS RECONCILIATION (In U.S. Dollars Million, Except Number of Shares and Per Share Data) | ||||||
GUIDANCE | ACTUAL | |||||
Six months | Six months | |||||
ended December 31, | ended December 31, | |||||
2012 | 2011 | |||||
Revenue | $124.0 | to | $125.0 | $121.0 | ||
IFRS EPS | $0.45 | to | $0.47 | $0.45 | ||
Non-cash stock based compensation expense (Note 1) | $0.04 | $0.04 | $0.04 | |||
Amortization of intangibles (Note 2) | $0.01 | $0.01 | $0.01 | |||
Impairment of goodwill and intangibles | $0.02 | $0.02 | $0.02 | |||
Non-IFRS diluted net income per share | $0.52 | to | $0.54 | $0.52 | ||
Total shares used in non-IFRS diluted net income | 35,875,000 | 35,875,000 | 35,385,218 | |||
Notes: | ||||||
(1) Actual SBC is calculated based on actual share price on date of the awards. | ||||||
(2) Amortization of intangible assets relating to certain non-compete agreements. | ||||||
For Financial Matrix, please visit: http://www.prnasia.com/sa/attachment/2012/11/20121115112827746547.pdf
Press Contact in Asia | Investor Contact in Asia |
Camellia So | Suzanne Wang |
Tel: (852) 2555-5021 | Tel: (852) 2555-4747 |
e-mail: cso@globalsources.com | e-mail: investor@globalsources.com |
Press Contact in U.S. | Investor Contact in U.S. |
Brendon Ouimette | Cathy Mattison |
Tel: (1-480) 664-8309 | |
e-mail: bouimette@globalsources.com | Tel: (1-415) 433-3777 |
e-mail: cmattison@lhai.com |
