Global Sources reports second quarter 2013 results

NEW YORK, August 15, 2013 /PRNewswire/ -- Global Sources Ltd. (NASDAQ: GSOL) reported financial results for the second quarter ended June 30, 2013.

Global Sources' executive chairman, Merle A. Hinrich, said: "In the second quarter, our exhibitions business performed well. However, the soft export demand and uncertain global economic environment continued to impact our overall results. With our balance sheet providing a strong foundation, we remain committed to maintaining long-term growth and profitability, as we focus on the continuous improvement of our products and services, and our overall positioning in the market."

Financial highlights - Second quarter: 2013 compared to 2012

• Revenue was $61.4 million, as compared to $66.8 million.
  • Online revenue was $22.7 million, as compared to $30.0 million.
  • Exhibitions revenue was $33.3 million, as compared to $30.5 million.
  • Print revenue was $3.5 million, as compared to $4.4 million.
• IFRS net income was $16.8 million, or $0.46 per diluted share, as compared to second quarter 2012 IFRS net income of $9.7 million, or $0.27 per diluted share.
• Non-IFRS net income was $11.4 million, or $0.32 per diluted share, as compared to $11.0 million, or $0.31 per diluted share, for the second quarter of 2012.
• Adjusted EBITDA was $13.2 million, as compared to $12.8 million for the second quarter of 2012.
• Total deferred income and customer prepayments were $100.1 million as at June 30, 2013, as compared to $121.3 million as at June 30, 2012.

Financial highlights - Six Months Ended June 30: 2013 compared to 2012 - in accordance with IFRS

• Revenue was $92.7 million, as compared to $105.7 million.
• IFRS net income was $22.4 million, or $0.62 per diluted share, as compared to $12.8 million, or $0.36 per diluted share.
• Non-IFRS net income was $13.2 million, or $0.37 per diluted share, as compared to $14.6 million, or $0.41 per diluted share, for the six months ended June 30, 2012.
• Adjusted EBITDA was $16.3 million, as compared to $18.2 million for the six months ended June 30, 2012.

Global Sources' CFO, Connie Lai, said: "Among the factors impacting second quarter results was the move of the China Sourcing Fairs in Miami from the third quarter last year to the second quarter this year. We also recorded a write down of approximately $2.5 million in consideration of goodwill impairment charges related to the China International Fashion Brand Fair - Shenzhen (FashionSZshow). In addition, we completed the sale of one of our properties in Shenzhen, which increased our cash by $15.2 million, and contributed capital gains of $8.7 million, net of transaction costs and related tax expenses. As a result, we closed the quarter with a cash and securities position of $135.1 million, as compared to $106.0 million at the end of June 2012, and we continue to have no debt."

Financial expectations for the second half of 2013 under IFRS

• For the second half of 2013 ending Dec. 31, 2013:
  • Revenue is expected to be in the range of $101.0 million to $103.0 million, as compared to $126.0 million for the second half of 2012.
  • IFRS EPS is expected to be in the range of $0.32 to $0.36, as compared to $0.54 per diluted share in the second half of 2012. SBC and the amortization of intangibles as it relates to certain equity compensation plans are estimated to be an expense of $0.04 per diluted share for the second half of 2013.
  • Non-IFRS EPS is expected to be in the range of $0.36 to $0.40, as compared to $0.63 per diluted share for the same period in 2012.
  • Adjusted EBITDA is expected to be between $19.7 million and $20.9 million, as compared to $29.7 million in the second half of 2012.

"For the second half of 2013, we expect the revenue mix to range between 40% and 41% for online, 50% and 51% for exhibitions, 5% and 6% for print, and approximately 3% for miscellaneous. This compares to a second half 2012 revenue mix of approximately 46% for online, 44% for exhibitions, 7% for print and 3% for miscellaneous," Lai concluded.

Recent Corporate Highlights

• The 13th China International Fashion Brand Fair - Shenzhen (FashionSZshow), the largest and most influential fashion exhibition in southern China, was held in Shenzhen in July.
• The third annual China Sourcing Fairs in Miami were held in June.
• The seventh annual China Sourcing Fairs in Dubai were held in May.
• Held its spring series of China Sourcing Fairs in Hong Kong featuring approximately 6,700 booths from more than 20 countries and regions. Total attendance exceeded 60,000 and included buyers from more than 140 countries and territories.
• Private Sourcing Events were held from April 21, 2013 through the end of July for more than 100 sourcing teams from very large buying organizations including Amazon China, Monster Cable, Panasonic, Office Depot, Pacific Brands, Auchan, Bossini, J.C. Penney, RadioShack, Li & Fung and Metro. These events created more than 500 high quality, one-on-one selling opportunities for Global Sources suppliers.

Conference call for Global Sources second quarter 2013 earnings

Executive Chairman Merle A. Hinrich and CFO Connie Lai are scheduled to conduct a conference call at 8:00 a.m. ET Aug. 15, 2013 (8:00 p.m. on Aug. 15, 2013 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 4630876 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 Aug. 23, 2013. To listen to the telephone replay dial (800) 406-7325 or dial (1-303) 590-3030 outside the United States, and enter pass code 4630876. For those in the Hong Kong area, the replay dial-in number is (852) 3056-2777, and the pass code is 4630876.

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, 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.

For financial matrix, please visit: http://www.prnasia.com/sa/attachment/2013/08/2013081509452152570.pdf