HIGHWAY HOLDINGS REPORTS FIRST QUARTER FISCAL 2025 RESULTS; REVENUE INCREASES 39% YoY
Rhea-AI Summary
Highway Holdings (Nasdaq: HIHO) reported a 39.3% increase in net sales to $1.88 million for Q1 FY2025, compared to $1.35 million in Q1 FY2024. The company achieved a net gain of $98,000, or $0.02 per diluted share, reversing a net loss of $338,000 in the previous year. Gross profit increased to $661,000 (35% margin), up from $377,000 (28% margin) in Q1 FY2024. The company maintained a strong financial position with $6.0 million in cash and cash equivalents, exceeding combined liabilities by $1.65 million. CEO Roland Kohl expressed cautious optimism, citing increased orders from customers and potential new business lines contributing to future growth.
Positive
- 39.3% year-over-year increase in net sales to $1.88 million
- Net gain of $98,000 compared to a net loss in the previous year
- Gross profit margin improved from 28% to 35%
- 15.3% reduction in selling, general and administrative expenses
- Strong financial position with $6.0 million in cash and cash equivalents
Negative
- Operating level only reached breakeven, indicating continued challenges
- Net profit mainly derived from interest income and currency exchange gains rather than core operations
- Business has not yet returned to pre-COVID levels
News Market Reaction – HIHO
On the day this news was published, HIHO gained 1.53%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
HONG KONG , Aug. 1, 2024 /PRNewswire/ -- Highway Holdings Limited (Nasdaq: HIHO) today reported financial results for the first quarter of fiscal year 2025 ended June 30, 2024.
Net sales for the first quarter of fiscal year 2025 ended June 30, 2024 increased
Roland Kohl, chairman, president and chief executive officer of Highway Holdings, commented, "We are seeing signs of improvement and have reason for cautious optimism. The growth in sales this quarter compared to the year ago period was the result of substantially all our customers increasing their orders. We have still not returned to the level our business was at pre-COVID, therefore we were only able to reach breakeven on an operating level, which is a significant improvement compared to the
"We are pleased to maintain a solid financial position, which we believe gives us the ability to navigate the operating challenges and forge a path that supports a return to long-term growth. In the most recent quarter, our reported net profit came mainly from interest income based on the fortified cash position we built, and a favorable currency exchange gain. Overall, the favorable trend of orders for our existing business from our main customers is stable to slightly increasing. We are cautiously optimistic this trend will continue along with the contribution of a pending new business line, and the revival of some mature previously deemphasized business lines, which taken together would ultimately help us return to improved profitability."
Gross profit for the first quarter of fiscal year 2025 increased to
Selling, general and administrative expenses for the first quarter of fiscal year 2025 declined by
The Company recognized a
The Company ended the first quarter of fiscal year 2025 in a solid financial position with
About Highway Holdings
Highway Holdings is an international manufacturer of a wide variety of high-quality parts and products for blue chip equipment manufacturers based primarily in Germany. Highway Holdings' administrative office is located in
Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements which involve risks and uncertainties, including but not limited to economic, competitive, governmental, political and technological factors affecting the company's revenues, operations, markets, products and prices, the remaining impact of the worldwide COVID-19 pandemic, and other factors discussed in the company's various filings with the Securities and Exchange Commission, including without limitation, the company's annual reports on Form 20-F.
(Financial Tables Follow)
HIGHWAY HOLDINGS LIMITED AND SUBSIDIARIES Consolidated Statement of Income | ||||||
Fiscal First Quarter Ended | ||||||
| June 30 (Unaudited)
| ||||||
2024 | 2023 | |||||
Net sales | ||||||
Cost of sales | 1,218 | 970 | ||||
Gross profit | 661 | 377 | ||||
Selling, general and administrative expenses |
658 |
777 | ||||
Operating income (loss) | 3 | (400) | ||||
Non-operating income (expense): | ||||||
Exchange gain (loss), net | 38 | 17 | ||||
Interest income | 45 | 40 | ||||
Gain (loss) on disposal of assets | - | - | ||||
Other income (expense) | 7 | - | ||||
Total non-operating income (expenses) | 90 | 57 | ||||
Net income (loss) before income taxes | 93 | (343) | ||||
Income taxes | - | 3 | ||||
Net income (loss) | 93 | (340) | ||||
Less: net gain/(loss) attributable to non-controlling interests | (5) | (2) | ||||
Net income attributable to Highway Holdings Limited's | ( | |||||
Shareholders | ||||||
Net income (loss) per share – Basic | ( | |||||
Net income (loss) per share - Diluted
| ( | |||||
Weighted average number of shares outstanding: | ||||||
Basic | 4,506 | 4,248 | ||||
Diluted |
4,506 |
4,248 | ||||
HIGHWAY HOLDINGS LIMITED AND SUBSIDIARIES Consolidated Balance Sheet | ||||
June 30 (Unaudited) | March 31 (Audited) | |||
2024 | 2024 | |||
Current assets: | ||||
Cash and cash equivalents | ||||
Accounts receivable, net of doubtful accounts | 1,660 | 1,253 | ||
Inventories | 1,532 | 1,566 | ||
Prepaid expenses and other current assets | 149 | 226 | ||
Total current assets | 9,332 | 9,646 | ||
Goodwill, net | - | - | ||
Property, plant and equipment, net | 34 | - | ||
Operating lease right-of-use assets | 1,217 | 1,375 | ||
Long-term deposits | 201 | 202 | ||
Long-term loan receivable | 95 | 95 | ||
Total assets | 10,879 | 11,318 | ||
Current liabilities: | ||||
Accounts payable | ||||
Operating lease liabilities, current | 595 | 588 | ||
Accrued expenses and other liabilities | 1,719 | 1,789 | ||
Income tax payable | 471 | 480 | ||
Dividend payable | 60 | 45 | ||
Total current liabilities | 3,652 | 3,837 | ||
Operating lease liabilities, non-current | 650 | 803 | ||
Long term accrued expenses | 40 | 40 | ||
Total liabilities | 4,342 | 4,680 | ||
Shareholders' equity: | ||||
Preferred shares, | - | - | ||
Common shares, | 44 | 44 | ||
Additional paid-in capital | 12,144 | 12,117 | ||
Accumulated deficit | (5,137) | (5,015) | ||
Accumulated other comprehensive (loss) / income | (502) | (501) | ||
Non-controlling interest | (12) | (7) | ||
Total shareholders' equity | 6,537 | 6,638 | ||
Total liabilities and shareholders' equity | ||||
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SOURCE Highway Holdings Limited
FAQ
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