NEW YORK, May 15, 2014 /PRNewswire/ -- Global Sources Ltd. (NASDAQ: GSOL) reported financial results for the first quarter ended March 31, 2014.
Global Sources' executive chairman, Merle A. Hinrich, said: "For the quarter, our total revenue increased by 10% as compared to the first quarter of last year. In the first quarter of 2014, our new SIMM machinery shows were a strong success in every respect and contributed substantially to our first quarter revenue. In April, we held our spring China Sourcing Fairs, which included Asia's largest consumer electronics sourcing event.
"As we continue to manage through a sluggish global retail market, we are working to improve our overall revenue performance. We have made changes within our online business that have improved its financial performance, and we are planning several new trade shows. In addition, we continue to drive the integration of our services with the belief that the combination of online and show services can provide unique and higher value to our customers."
Financial highlights - First quarter: 2014 compared to 2013
Global Sources' CFO, Connie Lai, stated: "Our first quarter 2014 results reflect contributions from the SIMM machinery shows held in March, and the move of the IIC-China show from the first quarter last year to the third quarter of 2014. We continue to maintain a strong balance sheet with no short- or long-term debt."
Financial expectations for the first half of 2014 under IFRS
Recent Corporate Highlights
Conference call for Global Sources first quarter 2014 earnings
Executive Chairman Merle A. Hinrich and CFO Connie Lai are scheduled to conduct a conference call at 8:00 a.m. ET on May 15, 2014 (8:00 p.m. on May 15, 2014 in Hong Kong) to review these results in more detail. Investors in the United States may participate in the call by dialing (877) 941-1427, and non-Hong Kong international participants may dial (1-480) 629-9664. Investors in Hong Kong may participate by dialing (852) 3009-5027. The conference ID is 4680009 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 May 22, 2014. To listen to the telephone replay dial (800) 406-7325 or dial (1-303) 590-3030 outside the United States, and enter pass code 4680009. For those in the Hong Kong area, the replay dial-in number is (852) 3056-2777, and the pass code is 4680009.
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 (GlobalSources.com), print and digital magazines, sourcing research reports, private sourcing events, and trade shows.
More than 1 million international buyers, including 95 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 provide 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 more than 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, profits or losses on acquisitions and investments net of transaction costs and related tax expenses, and/or impairment charges net of related taxes, 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, impairment of goodwill and intangible assets, and profits or losses on acquisitions and investments net of transaction costs and related tax expenses.
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 | ||||||
As at March 31, | As at December 31, | |||||
2014 | 2013 | |||||
(Unaudited) | ||||||
ASSETS | ||||||
Current assets | ||||||
Cash and cash equivalents | $ | 139,184 | $ | 137,359 | ||
Term deposits with banks | 4,059 | 106 | ||||
Financial assets, available-for-sale | 1,359 | 6,367 | ||||
Accounts receivables, net | 2,715 | 3,122 | ||||
Receivables from sales representatives | 12,409 | 10,630 | ||||
Inventories | 224 | 266 | ||||
Prepaid expenses and other current assets | 24,120 | 18,544 | ||||
184,070 | 176,394 | |||||
Non-current assets | ||||||
Property and equipment | 63,229 | 49,701 | ||||
Investment properties | 87,045 | 89,615 | ||||
Intangible assets | 35,517 | 21,423 | ||||
Long term investment | 100 | 100 | ||||
Deferred income tax assets | 99 | 98 | ||||
Other non-current assets | 2,484 | 1,766 | ||||
188,474 | 162,703 | |||||
Total assets | $ | 372,544 | $ | 339,097 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
Current liabilities | ||||||
Accounts payable | $ | 18,831 | $ | 8,779 | ||
Deferred income and customer prepayments | 104,911 | 84,704 | ||||
Accrued liabilities | 18,816 | 19,166 | ||||
Income tax liabilities | 3,329 | 2,635 | ||||
145,887 | 115,284 | |||||
Non-current liabilities | ||||||
Accounts payable | 850 | - | ||||
Deferred income and customer prepayments | 8,573 | 5,660 | ||||
Deferred income tax liabilities | 4,388 | 4,591 | ||||
13,811 | 10,251 | |||||
Total liabilities | 159,698 | 125,535 | ||||
Equity attributable to Company's shareholders | ||||||
Common shares | 528 | 525 | ||||
Treasury shares | (150,089) | (150,089) | ||||
Other reserves | 159,666 | 161,950 | ||||
Retained earnings | 191,739 | 191,594 | ||||
Total Company shareholders' equity | 201,844 | 203,980 | ||||
Non-controlling interests | 11,002 | 9,582 | ||||
Total equity | $ | 212,846 | $ | 213,562 | ||
Total liabilities and equity | $ | 372,544 | $ | 339,097 | ||
GLOBAL SOURCES LTD. AND SUBSIDIARIES | ||||||
Three months ended March 31, | ||||||
2014 | 2013 | |||||
(Unaudited) | (Unaudited) | |||||
Revenue | ||||||
Online and other media services (Note 1) | $ | 23,842 | $ | 27,959 | ||
Exhibitions | 8,860 | 1,501 | ||||
Miscellaneous | 1,768 | 1,792 | ||||
34,470 | 31,252 | |||||
Operating Expenses: | ||||||
Sales (Note 2) | 9,046 | 10,993 | ||||
Event production | 1,804 | 396 | ||||
Community and content (Note 2) | 5,443 | 6,185 | ||||
General and administrative (Note 2 & 3) | 14,128 | 9,792 | ||||
Information and technology (Note 2) | 3,191 | 3,314 | ||||
Total Operating Expenses | 33,612 | 30,680 | ||||
Profit on sale of property | - | 4,457 | ||||
Profit from Operations | 858 | 5,029 | ||||
Interest income | 417 | 274 | ||||
Gain on sale of available-for-sale securities | 10 | - | ||||
Interest expenses | (47) | - | ||||
Profit before income taxes | 1,238 | 5,303 | ||||
Income tax expense | (355) | (26) | ||||
Net profit | $ | 883 | $ | 5,277 | ||
Net (profit) / loss attributable to non-controlling interests | (738) | 344 | ||||
Net profit attributable to the Company's shareholders | $ | 145 | $ | 5,621 | ||
Diluted net profit per share attributable to the Company's shareholders | * | $ | 0.16 | |||
Shares used in diluted net profit per share calculations | 36,174,507 | 35,914,192 | ||||
* Basic and diluted net profit per share attributable to the Company's shareholders is less than $0.01 | ||||||
Note: 1. Online and other media services consists of: | ||||||
Three months ended March 31, | ||||||
2014 | 2013 | |||||
(Unaudited) | (Unaudited) | |||||
Online services | $ |
21,252 | $ |
24,975 | ||
Print services | 2,590 | 2,984 | ||||
$ | 23,842 | $ | 27,959 | |||
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 March 31, | ||||||
2014 | 2013 | |||||
(Unaudited) | (Unaudited) | |||||
Sales | $ |
7 | $ |
68 | ||
Community and content | (59) | (41) | ||||
General and administrative | 183 | 229 | ||||
Information and technology | 70 | 85 | ||||
$ | 201 | $ | 341 | |||
Note: 3. General and administrative expenses consist of: | ||||||
Three months ended March 31, | ||||||
2014 | 2013 | |||||
(Unaudited) | (Unaudited) | |||||
General and administrative expenses before amortization of intangible assets and foreign exchange losses | $ | 9,026 | $ | 8,770 | ||
Amortization of intangible assets | 3,461 | 776 | ||||
Foreign exchange losses | 1,641 | 246 | ||||
$ | 14,128 | $ | 9,792 |
GLOBAL SOURCES LTD. AND SUBSIDIARIES | |||||||||
Three months ended March 31, | |||||||||
2014 | 2013 | ||||||||
IFRS EPS | $ | - | $ | 0.16 | |||||
IFRS Net Profit | $ | 145 | $ | 5,621 | |||||
Non-cash stock based compensation expense (Note 1) | 201 | 341 | |||||||
Amortization of intangibles (Note 2) | 253 | 254 | |||||||
Profit on sale of property | - | (4,457) | |||||||
Non-IFRS Net Profit | $ | 599 | $ | 1,759 | |||||
Non-IFRS diluted net profit per share | $ | 0.02 | $ | 0.05 | |||||
Total shares used in non-IFRS diluted net profit per share calculations | 36,174,507 | 35,914,192 | |||||||
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 | |||||||
Three months ended March 31, | |||||||
2014 | 2013 | ||||||
IFRS profit from operations | $ | 858 | $ | 5,029 | |||
Depreciation and amortization | 4,846 | 2,270 | |||||
EBITDA | 5,704 | 7,299 | |||||
Non-cash stock based compensation expense | 201 | 341 | |||||
Profit on sale of property | - | (4,457) | |||||
Adjusted EBITDA | $ | 5,905 | $ | 3,183 | |||
GLOBAL SOURCES LTD. AND SUBSIDIARIES | ||||||
GUIDANCE | ACTUAL | |||||
Six months ended June 30, | Six months ended June 30, | |||||
2014 | 2013 | |||||
Revenue | $88.0 | to | $90.0 | $92.7 | ||
IFRS EPS | $0.14 | to | $0.18 | $0.62 | ||
Non-cash stock based compensation expense (Note 1) | $0.03 | $0.03 | $0.03 | |||
Amortization of intangibles (Note 2) | $0.01 | $0.01 | $0.01 | |||
Impairment of goodwill and intangibles | - | - | $0.07 | |||
Profit on sale of property, net of transaction costs & related tax expenses | - | - | ($0.36) | |||
Non-IFRS diluted net income per share | $0.18 | to | $0.22 | $0.37 | ||
Total shares used in non-IFRS diluted net income per share calculations | 36,400,000 | 36,400,000 | 36,048,346 | |||
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://photos.prnasia.com/prnk/20140515/8521402759
Press Contact in Asia | Investor Contact in Asia |
Camellia So | Connie Lai |
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 | LHA |
e-mail: bouimette@globalsources.com | Tel: (1-415) 433-3777 |
e-mail: cmattison@lhai.com | |
Logo - http://photos.prnewswire.com/prnh/20030303/LNM011LOGO-b