NEW YORK, May 21, 2015 /PRNewswire/ -- Global Sources Ltd. (NASDAQ: GSOL) reported financial results for the first quarter ended March 31, 2015.
Global Sources' executive chairman, Merle A. Hinrich, said, "Our first quarter results reflect the shift in timing of our SIMM machinery shows for the mainland China domestic market from the first quarter of 2014 to the second quarter of 2015. In April, we held our export-focused shows, including Global Sources Electronics, the world's largest electronics sourcing trade show featuring a total of more than 5,500 booths. The first phase included a wide range of electronics for home, office, auto and security products as well as electronic components. The second phase, Mobile Electronics, featured smartphones, tablets, drones, wearables and accessories and was an even greater success than its inaugural event in October 2014, with growth in both booths and attendance.
"Over the past 10 years, we have focused on attracting quality-focused, innovative electronics suppliers from mainland China and across Asia and this has drawn the world's top buyers to our events. As a result, our electronics show has gained a reputation as a place to discover the most cutting-edge electronics products coming out of the region."
Financial highlights -- First quarter: 2015 compared to 2014
Global Sources' CFO, Connie Lai, stated: "The financial reporting timeframe for our SIMM machinery shows moved from the first quarter of 2015 to the second quarter of 2015 given the show's end date of April 2. The company maintains a strong balance sheet with positive cash flow, a cash balance of $103.6 million and no debt."
Financial expectations for the first half of 2015 under IFRS
The company's guidance for the first half of 2015 ending June 30, 2015 follows.
Recent Corporate Highlights
Conference call for Global Sources first quarter 2015 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 21, 2015 (8:00 p.m. on May 21, 2015 in Hong Kong) to review these results in more detail. Investors in the United States may participate in the call by dialing (888) 221-3881, and non-Hong Kong international participants may dial (1-913) 312-1476. Investors in Hong Kong may participate by dialing (852) 3008-0382. The conference ID is 8963600 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 28, 2015. To listen to the telephone replay dial (888) 203-1112 or dial (1-719) 457-0820 outside the United States, and enter pass code 8963600. For those in the Hong Kong area, the replay dial-in number is (800) 901-108, and the pass code is 8963600.
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 5 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 CONSOLIDATED BALANCE SHEETS (In U.S. Dollars Thousands, Except Number of Shares and Per Share Data) |
|||||||
As at March 31, |
As at December 31, |
||||||
2015 |
2014 |
||||||
(Unaudited) |
|||||||
ASSETS |
|||||||
Current assets |
|||||||
Cash and cash equivalents |
$ |
92,802 |
$ |
90,223 |
|||
Term deposits with banks |
6,676 |
4,285 |
|||||
Financial assets, available-for-sale |
4,155 |
3,952 |
|||||
Accounts receivables, net |
1,868 |
2,269 |
|||||
Receivables from sales representatives |
13,568 |
7,900 |
|||||
Inventories |
180 |
154 |
|||||
Prepaid expenses and other current assets |
25,597 |
17,027 |
|||||
144,846 |
125,810 |
||||||
Non-current assets |
|||||||
Property and equipment |
62,316 |
63,519 |
|||||
Investment properties |
85,091 |
85,546 |
|||||
Intangible assets |
36,750 |
37,732 |
|||||
Long term investment |
100 |
100 |
|||||
Deferred income tax assets |
253 |
196 |
|||||
Other non-current assets |
1,611 |
1,108 |
|||||
186,121 |
188,201 |
||||||
Total assets |
$ |
330,967 |
$ |
314,011 |
|||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||
Current liabilities |
|||||||
Accounts payable |
$ |
9,373 |
$ |
9,418 |
|||
Deferred income and customer prepayments |
108,713 |
84,869 |
|||||
Accrued liabilities |
16,262 |
19,100 |
|||||
Income tax liabilities |
784 |
3,848 |
|||||
135,132 |
117,235 |
||||||
Non-current liabilities |
|||||||
Accounts payable |
290 |
889 |
|||||
Deferred income and customer prepayments |
6,116 |
3,971 |
|||||
Deferred income tax liabilities |
6,583 |
6,842 |
|||||
12,989 |
11,702 |
||||||
Total liabilities |
148,121 |
128,937 |
|||||
Equity attributable to Company's shareholders |
|||||||
Common shares |
532 |
529 |
|||||
Treasury shares |
(200,089) |
(200,089) |
|||||
Other reserves |
161,676 |
161,242 |
|||||
Retained earnings |
207,797 |
209,924 |
|||||
Total Company shareholders' equity |
169,916 |
171,606 |
|||||
Non-controlling interests |
12,930 |
13,468 |
|||||
Total equity |
$ |
182,846 |
$ |
185,074 |
|||
Total liabilities and equity |
$ |
330,967 |
$ |
314,011 |
|||
GLOBAL SOURCES LTD. AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENTS (In U.S. Dollars Thousands, Except Number of Shares and Per Share Data) |
||||||
Three months ended March 31, |
||||||
2015 |
2014 |
|||||
(Unaudited) |
(Unaudited) |
|||||
Revenue |
||||||
Online and other media services (Note 1) |
$ |
20,054 |
$ |
23,842 |
||
Exhibitions |
260 |
8,860 |
||||
Miscellaneous |
1,889 |
1,768 |
||||
22,203 |
34,470 |
|||||
Operating Expenses: |
||||||
Sales (Note 2) |
6,456 |
9,046 |
||||
Event production |
98 |
1,804 |
||||
Community and content (Note 2) |
4,562 |
5,443 |
||||
General and administrative (Note 2 & 3) |
11,002 |
14,128 |
||||
Information and technology (Note 2) |
3,297 |
3,191 |
||||
Total Operating Expenses |
25,415 |
33,612 |
||||
Profit / (loss) from Operations |
(3,212) |
858 |
||||
Interest income |
312 |
417 |
||||
Gain on sale of available-for-sale securities |
188 |
10 |
||||
Interest expenses |
(46) |
(47) |
||||
Profit / (loss) before income taxes |
(2,758) |
1,238 |
||||
Income tax credit / (expense) |
171 |
(355) |
||||
Net profit / (loss) |
$ |
(2,587) |
$ |
883 |
||
Net (profit) / loss attributable to non-controlling interests |
460 |
(738) |
||||
Net profit / (loss) attributable to the Company's shareholders |
$ |
(2,127) |
$ |
145 |
||
Diluted net profit / (loss) per share attributable to the |
$ |
(0.07) |
* |
|||
Shares used in diluted net profit / (loss) per share calculations |
31,361,130 |
36,174,507 |
||||
* 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, |
||||||
2015 |
2014 |
|||||
(Unaudited) |
(Unaudited) |
|||||
Online services |
$ |
17,917 |
$ |
21,252 |
||
Print services |
2,137 |
2,590 |
||||
$ |
20,054 |
$ |
23,842 |
|||
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, |
||||||
2015 |
2014 |
|||||
(Unaudited) |
(Unaudited) |
|||||
Sales |
$ |
37 |
$ |
7 |
||
Community and content |
10 |
(59) |
||||
General and administrative |
364 |
183 |
||||
Information and technology |
77 |
70 |
||||
$ |
488 |
$ |
201 |
|||
Note: 3. General and administrative expenses consist of: |
||||||
Three months ended March 31, |
||||||
2015 |
2014 |
|||||
(Unaudited) |
(Unaudited) |
|||||
General and administrative expenses before amortization of |
$ |
9,412 |
$ |
9,026 |
||
Amortization of intangible assets |
1,273 |
3,461 |
||||
Foreign exchange losses |
317 |
1,641 |
||||
$ |
11,002 |
$ |
14,128 |
GLOBAL SOURCES LTD. AND SUBSIDIARIES ACTUAL IFRS to NON-IFRS RECONCILIATION (In U.S. Dollars Thousands, Except Number of Shares and Per Share Data) |
|||||||
Three months ended March 31, |
|||||||
2015 |
2014 |
||||||
IFRS diluted net profit / (loss) per share |
$ |
(0.07) |
* |
||||
IFRS Net Profit / (Loss) |
$ |
(2,127) |
$ |
145 |
|||
Non-cash stock based compensation expense (Note 1) |
488 |
201 |
|||||
Amortization of intangibles (Note 2) |
211 |
253 |
|||||
Non-IFRS Net Profit / (Loss) |
$ |
(1,428) |
$ |
599 |
|||
Non-IFRS diluted net profit / (loss) per share |
$ |
(0.05) |
$ |
0.02 |
|||
Total shares used in non-IFRS diluted net profit / (loss) |
31,361,130 |
36,174,507 |
|||||
* Basic and diluted net profit per share attributable to the Company's shareholders is less than $0.01 |
|||||||
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 March 31, |
||||||||
2015 |
2014 |
|||||||
IFRS profit / (loss) from operations |
$ |
(3,212) |
$ |
858 |
||||
Depreciation and amortization |
2,745 |
4,846 |
||||||
EBITDA |
(467) |
5,704 |
||||||
Non-cash stock based compensation expense |
488 |
201 |
||||||
Adjusted EBITDA |
$ |
21 |
$ |
5,905 |
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 |
|||||
2015 |
2014 |
|||||
Revenue |
$90.0 |
to |
$92.0 |
$92.8 |
||
IFRS EPS |
$0.15 |
to |
$0.19 |
$0.20 |
||
Non-cash stock based compensation expense (Note 1) |
$0.03 |
$0.03 |
$0.02 |
|||
Amortization of intangibles (Note 2) |
$0.01 |
$0.01 |
$0.01 |
|||
Impairment of goodwill and intangibles |
- |
- |
$0.05 |
|||
Non-IFRS diluted net income per share |
$0.19 |
to |
$0.23 |
$0.28 |
||
Total shares used in non-IFRS diluted net income |
31,740,000 |
31,740,000 |
35,672,551 |
|||
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/20150521/8521503262
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
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/global-sources-reports-first-quarter-2015-results-300087070.html