Multi Ways Holdings Limited Delivers Fiscal Year 2022 Revenue of $38.4 Million, Up 15% Year-over-Year, Driven by Greater Local Demand in Singapore

Files 2022 Annual Report on Form 20-F

NEW YORK, May 16, 2023 (GLOBE NEWSWIRE) -- Multi Ways Holdings Limited (“Multi Ways” or the “Company”) (NYSE American: MWG), a leading supplier of a wide range of heavy construction equipment for sales and rental in Singapore and the surrounding region, today reported its audited results for the fiscal year ended December 31, 2022.

Financial Highlights

• Revenues increased 15% to approximately $38.4 million
• Gross profit was approximately $9.7 million, with a 25.4% profit margin
• Net income of approximately $1 million
  

Full Year 2022 Financial Results

• Total revenue increased by approximately $5 million or 15% to approximately $38.4 million for the fiscal year ended December 31, 2022 from approximately $33.4 million for the fiscal year ended December 31, 2021. The increase was due to the increased demand in our equipment sales in Singapore of approximately $6.1 million.
  
  
• For the fiscal year ended December 31, 2022, 41.2% of revenue was generated from customers located in Singapore and 23.6% of revenue was generated from customers located in Australia. For the fiscal year ended December 31, 2022, revenue generated from customers located in other countries accounted for 35.2% of revenue.
  
  
• Total gross profit amounted to approximately $9.7 million for the fiscal year ended December 31, 2022, compared to approximately $9.4 million for the year fiscal ended December 31, 2021. Overall gross profit margins were 25.4% and 28% for the fiscal years ended December 31, 2022 and 2021, respectively. Total gross profit increased due to the better profit margin achieved through diversified purchasing networks from across various countries.
  
  
• Net income was approximately $1 million for the year fiscal ended December 31, 2022, compared to net income of approximately $1.8 million for the year fiscal ended December 31, 2021. The decrease in net income was mainly due to the increase in gross profit margin, partially offset by the increase in selling & distribution expenses of approximately $0.4 million, administrative expenses of approximately $0.1 million and income tax of approximately $0.3 million.
  

Cash Flows Summary

• Cash and cash equivalents were approximately $1.0 million as of December 31, 2022, compared to approximately $1.5 million as of December 31, 2021.
  
  
• Cash provided by operating activities for the fiscal year ended December 31, 2022, was approximately $0.8 million, a decrease of approximately $4.8 million compared to approximately $5.6 million for the fiscal year ended December 31, 2021.
  
  
• Cash used in investing activities for the fiscal year ended December 31, 2022, was $1.1 million, an increase of $1.4 million compared to cash provided by approximately $0.3 million for the fiscal year ended December 31, 2021, which mainly consisted of the purchases of property, plant and equipment of approximately $0.8 million, the purchases of financial assets available for sales of approximately $0.3 million and the drop in proceed from disposal of property, plant and equipment of approximately $0.3 million
  
  
• Cash used in financing activities for the fiscal year ended December 31, 2022, was approximately $0.2 million, a decrease of approximately $4.6 million compared to approximately $4.8 million for the year ended December 31, 2021, which mainly consisted of lesser bank loan repayment of approximately $3.6 million and the lesser repayment of lease liabilities of approximately $1.0 million.
  

Balance Sheet Summary

• Total assets were approximately $52.8 million, and total liabilities were approximately $46.5 million at December 31, 2022.
  
  
• Working capital was approximately $2.9 million at December 31, 2022, versus approximately $4.4 million at December 31, 2021. This decrease of approximately $1.5 million in working capital was due primarily to the factors stated above in the cash flow summary.
  
  
• Shareholders’ equity was approximately $6.3 million at December 31, 2022, as compared to approximately $5.4 million at December 31, 2021.
  

Mr. James Lim, Chairman and Chief Executive Officer of Multi Ways, commented, “I am pleased to report strong sales growth in fiscal year 2022. These results reflect the strong demand for our equipment and services throughout Singapore and the region in 2022. As we just completed our initial public offering, we are investing in expanding and renewing our fleet of heavy construction equipment to meet this growing demand. I am confident that these investments will help us continue to grow and succeed in the years to come.”

About Multi Ways Holdings Limited
Multi Ways Holdings is a supplier of a wide range of heavy construction equipment for sales and rental in Singapore and the surrounding region. With more than two decades of experience in the sales and rental of heavy construction equipment business, the Company is widely established as a reliable supplier of new and used heavy construction equipment to customers from Singapore, Australia, UAE, Maldives, Indonesia, and the Philippines. With our wide variety of heavy construction equipment in our inventory and complementary equipment refurbishment and cleaning services, Multi Ways is well-positioned to serve customers as a one-stop shop. For more information, visit www.multiwaysholdings.com.

Safe Harbor Statement
This press release contains forward-looking statements. In addition, from time to time, we or our representatives may make forward-looking statements orally or in writing. We base these forward-looking statements on our expectations and projections about future events, which we derive from the information currently available to us. Such forward-looking statements relate to future events or our future performance, including: our financial performance and projections; our growth in revenue and earnings; and our business prospects and opportunities. You can identify forward-looking statements by those that are not historical in nature, particularly those that use terminology such as “may,” “should,” “expects,” “anticipates,” “contemplates,” “estimates,” “believes,” “plans,” “projected,” “predicts,” “potential,” or “hopes” or the negative of these or similar terms. In evaluating these forward-looking statements, you should consider various factors, including: our ability to change the direction of the Company; our ability to keep pace with new technology and changing market needs; and the competitive environment of our business. These and other factors may cause our actual results to differ materially from any forward-looking statement. Forward-looking statements are only predictions. The forward-looking events discussed in this press release and other statements made from time to time by us or our representatives, may not occur, and actual events and results may differ materially and are subject to risks, uncertainties, and assumptions about us. We are not obligated to publicly update or revise any forward-looking statement, whether as a result of uncertainties and assumptions, the forward-looking events discussed in this press release and other statements made from time to time by us or our representatives might not occur.

Investor Relations Contact:
Matthew Abenante, IRC
President
Strategic Investor Relations, LLC
Tel: 347-947-2093
Email: matthew@strategic-ir.com

MULTI WAYS HOLDINGS LIMITED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Currency expressed in United States Dollars (“US$”))

		As of December 31,
		2022				2021
		$’000				$’000
ASSETS
Current assets:
Cash and cash equivalents			1,003				1,533
Accounts receivable, net			8,021				5,692
Inventories			31,442				32,874
Amounts due from related parties			50				12
Financial assets available for sales			325				-
Deposits, prepayments and other receivables			3,230				5,007
Total current assets			44,071				45,118
Non-current assets:
Property and equipment, net			7,218				7,720
Right-of-use assets			1,489				1,769
Deferred tax assets			8				8
Total non-current assets			8,715				9,497
TOTAL ASSETS			52,786				54,615
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities			4,781				4,413
Customer deposits			5,884				10,427
Amounts due to related parties			17,167				15,952
Bank borrowings			8,862				7,412
Lease liabilities			3,484				1,947
Income tax payable			1,007				522
Total current liabilities			41,185				40,673
Long-term liabilities:
Bank borrowings			3,175				4,914
Lease liabilities			2,114				3,670
Total long-term liabilities			5,289				8,584
TOTAL LIABILITIES			46,474				49,257
Commitments and contingencies			-				-
Shareholders’ equity
Ordinary share, par value US$0.00025, 400,000,000 shares authorized, 24,800,000 ordinary shares issued and outstanding			6				6
Additional paid-in capital			5,440				5,440
Retained earnings			1,235				257
Non-controlling interest			50				-
Accumulated other comprehensive loss			(419	)			(345	)
Total shareholders’ equity			6,312				5,358
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY			52,786				54,615

MULTI WAYS HOLDINGS LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Currency expressed in United States Dollars (“US$”))

		Financial Years ended December 31,
		2022				2021				2020
		$’000				$’000				$’000
Revenues, net			38,359				33,406				29,886
Cost of revenue			(28,617	)			(24,049	)			(23,044	)
Gross profit			9,742				9,357				6,842
Operating cost and expenses:
Selling and distribution			(1,502	)			(1,114	)			(1,153	)
General and administrative			(6,745	)			(6,609	)			(6,294	)
Total operating cost and expenses			(8,247	)			(7,723	)			(7,447	)
Profit/(Loss) from operations			1,495				1,634				(605	)
Other income (expense):
Other expenses			-				-				(15	)
Gain from disposal of plant and equipment			2				305				237
Interest income			*				19				14
Interest expense			(748	)			(716	)			(858	)
Dividend income			7				-				1,030
Government grant			81				109				582
Foreign exchange (loss) gain, net			(93	)			(44	)			32
Other income			813				724				905
Total other income, net			62				397				1,927
Income before income taxes			1,557				2,031				1,322
Income tax expense			(529	)			(230	)			(3	)
NET INCOME			1,028				1,801				1,319
Less: Net income attributable to non-controlling interest			(50	)			-				-
NET INCOME ATTRIBUTABLE TO EQUITY HOLDER OF THE COMPANY			978				1,801				1,319
Net income per share
Basic and Diluted			0.04				0.07				0.05
Weighted average number of ordinary shares outstanding
Basic and Diluted (‘000)			24,800				24,800				24,800
NET INCOME ATTRIBUTABLE TO EQUITY HOLDER OF THE COMPANY			978				1,801				1,319
Other comprehensive loss:
Foreign currency translation adjustment			(74	)			(345	)			-
COMPREHENSIVE INCOME			904				1,456				1,319
* This figure is immaterial

MULTI WAYS HOLDINGS LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Currency expressed in United States Dollars (“US$”))

		Financial Years ended December 31,
		2022				2021				2020
		$’000				$’000				$’000
Cash flows from operating activities:
Net income before tax			1,557				2,031				1,322
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation of property and equipment			800				822				1,137
Depreciation of right-of-use assets			828				775				536
Inventories written down			-				1,508				2,532
Gain on disposal of property and equipment			(2	)			(305	)			(237	)
Provision (reverse) of impairment of trade receivables			193				(110	)			(372	)
Change in operating assets and liabilities:
Accounts receivable			(942	)			(1,190	)			4,763
Inventories			940				(2,757	)			(5,726	)
Accounts payable and accrued liabilities			1,887				(1,329	)			(1,475	)
Customer deposits			(4,387	)			5,797				(958	)
Income tax payable			(41	)			388				134
Net cash provided by operating activities			833				5,630				1,656
Cash flows from investing activities:
Purchase of property and equipment			(817	)			-				(637	)
Proceeds from disposal of property and equipment			2				343				72
Investment in financial assets available for sales			(325	)			-				-
Net cash (used in) generated from investing activities			(1,140	)			343				(565	)
Cash flows from financing activities:
Repayment of bank borrowings			(105	)			(3,712	)			(388	)
Repayment of lease liabilities			(114	)			(1,046	)			(511	)
Net cash used in financing activities			(219	)			(4,758	)			(899	)
Effect on exchange rate change on cash and cash equivalents			(4	)			(7	)			-
Net change in cash and cash equivalent			(530	)			1,208				192
BEGINNING OF YEAR			1,533				325				133
END OF YEAR			1,003				1,533				325
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash (paid) refund for income taxes			(40	)			158				134
Cash paid for interest			748				717				858