Trio-Tech Reports Fiscal 2022 Net Income of $0.57 Per Share Versus a Loss of $0.15 Per Share as Revenue Increased 36%

Rhea-AI Summary

Trio-Tech International (NYSE MKT: TRT) reported a significant turnaround in its fourth quarter financial results for fiscal 2022, with net income increasing to $0.19 per share compared to a loss of $0.25 per share in the fourth quarter of 2021. The company achieved a 27% revenue gain for the quarter, totaling $11,834,000, driven by a 44% increase in testing services and an 82% rise in distribution revenue. For the fiscal year, total revenue rose 36% to $44.07 million, with gross margin improving to 27% of revenue.

Trio-Tech also reported a record backlog of $17.46 million, marking a 29% increase year-over-year.

Positive

• Net income increased to $2,395,000, or $0.57 per diluted share, from a net loss of $591,000 in fiscal 2021.
• Total revenue for fiscal 2022 rose 36% to $44,065,000, driven by a 41% increase in testing services revenue.
• Record backlog increased 29% year-over-year to $17,463,000, indicating strong future demand.

Negative

• Manufacturing revenue declined 13% in the fourth quarter.

Fourth Quarter Net Income Increased to $0.19 Per Share Versus a Loss of $0.25 Per Share on 27% Revenue Gain

VAN NUYS, Calif.--(BUSINESS WIRE)-- Trio-Tech International (NYSE MKT: TRT) today announced financial results for the fourth quarter and fiscal year ended June 30, 2022.

Fiscal 2022 Results

Driven by a 41% increase in testing services revenue and 103% increase in distribution revenue compared to fiscal 2021, Trio-Tech’s total revenue for the fiscal year ended June 30, 2022 increased 36% to $44,065,000 from $32,462,000 for fiscal 2021.

Fiscal 2022 gross margin increased 53% to $11,733,000, or 27% of revenue, compared to $7,670,000, or 24% of revenue for fiscal 2021.

Total operating expenses declined to 21% of revenue from 24% of revenue for fiscal 2021, contributing to an increase in operating income to $2,353,000, compared to an operating loss of $61,000 for fiscal 2021.

Net income increased to $2,395,000, or $0.57 per diluted share. This compares to a net loss for fiscal 2021 of $591,000, or $0.15 per share, which included a $1,580,000 impairment related to the Singapore Theme Resort Project.

Record Backlog

Reflecting a 38% and 51% increase in manufacturing and testing backlog respectively, Trio-Tech’s total backlog at June 30, 2022 increased 29% to a record $17,463,000 compared to $13,503,000 at June 30, 2021.

Balance Sheet Highlights

Cash and cash equivalents at June 30, 2022 increased 32% to $7,698,000 compared to $5,836,000 at June 30, 2021. Shareholders' equity at June 30, 2022 increased to $27,874,000, or $6.85 per outstanding share, including cash and cash equivalents of $7,698,000. This compares to shareholders’ equity at June 30, 2021 of $25,634,000, or $6.55 per outstanding share, including cash and cash equivalents of $5,836,000. There were approximately 4,071,680 and 3,913,055 common shares outstanding at June 30, 2022 and June 30, 2021, respectively.

Fourth Quarter Results

Revenue for the fourth quarter of fiscal 2022 increased 27% to $11,834,000 from $9,308,000 for the fourth quarter of fiscal 2021, reflecting a 44% increase in testing services revenue and an 82% increase in distribution revenue. Manufacturing revenue declined 13% for the quarter but increased 3% for the fiscal year as a whole.

Gross margin increased 44% to $3,190,000, or 27% of revenue, compared to $2,222,000, or 24% of revenue, for the fourth quarter of fiscal 2021. Income from operations increased 138% to $857,000 compared to income from operations of $359,000 for the fourth quarter last year.

Net income for the fourth quarter of fiscal 2022 increased to $790,000, or $0.19 per diluted share. For the fourth quarter of fiscal 2021, Trio-Tech reported a net loss of $996,000, or $0.25 per share, which included the one-time, non-cash impairment charge mentioned above.

CEO Comments

S.W. Yong, Trio-Tech's CEO, said, “We delivered significant gains in revenue, gross margin, operating and net income in fiscal 2022, and our strong backlog, demonstrated by significant gains in manufacturing and strong orders for testing services, gives us a solid foundation as we begin the new fiscal year. Supply chain performance has shown improvements, and positive feedback regarding our customers’ business expectations has been steadily increasing.”

About Trio‑Tech

Established in 1958, Trio-Tech International is located in Van Nuys, California, with its Principal Executive Office and regional headquarter in Singapore. Trio-Tech International is a diversified business group with interests in semiconductor testing services, manufacturing and distribution of semiconductor testing equipment, and real estate. Our subsidiary locations include Tianjin, Suzhou, Chongqing in China, as well as Kuala Lumpur Malaysia and Bangkok Thailand. Further information about Trio-Tech's semiconductor products and services can be obtained from the Company's Web site at www.triotech.com and www.universalfareast.com.

Forward Looking Statements

This press release contains statements that are forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and may contain forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and assumptions regarding future activities and results of operations of the Company. In light of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, the following factors, among others, could cause actual results to differ materially from those reflected in any forward looking statements made by or on behalf of the Company: market acceptance of Company products and services; changing business conditions or technologies and volatility in the semiconductor industry, which could affect demand for the Company's products and services; the impact of competition; problems with technology; product development schedules; delivery schedules; changes in military or commercial testing specifications which could affect the market for the Company's products and services; difficulties in profitably integrating acquired businesses, if any, into the Company; risks associated with conducting business internationally and especially in Asia, including currency fluctuations and devaluation, currency restrictions, local laws and restrictions and possible social, political and economic instability; changes in U.S. and global financial and equity markets, including market disruptions and significant interest rate fluctuations; public health issues related to the COVID-19 pandemic; trade tension between U.S. and China and other economic, financial and regulatory factors beyond the Company's control. Other than statements of historical fact, all statements made in this release are forward looking, including, but not limited to, statements regarding industry prospects, future results of operations or financial position, and statements of our intent, belief and current expectations about our strategic direction, prospective and future financial results and condition. In some cases, you can identify forward looking statements by the use of terminology such as "may," "will," "expects," "plans," "anticipates," "estimates," "potential," "believes," "can impact," "continue," or the negative thereof or other comparable terminology. Forward looking statements involve risks and uncertainties that are inherently difficult to predict, which could cause actual outcomes and results to differ materially from our expectations, forecasts and assumptions. Many of these risks and uncertainties are beyond the Company's control. Reference is made to the discussion of risk factors detailed in the Company's filings with the Securities and Exchange Commission including its reports on Form 10-K and 10-Q. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made.

TRIO‑TECH INTERNATIONAL AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
AUDITED (IN THOUSANDS, EXCEPT EARNINGS PER SHARE)
		Three Months Ended								Twelve Months Ended
		June 30,								June 30,
		2022				2021				2022				2021
Revenue
Manufacturing		$	3,339			$	3,827			$	13,526			$	13,151
Testing services			5,494				3,828				19,477				13,846
Distribution			2,999				1,647				11,037				5,437
Real estate			2				6				25				28
			11,834				9,308				44,065				32,462
Cost of Sales
Cost of manufactured products sold			2,309				2,954				10,147				9,809
Cost of testing services rendered			3,819				2,780				12,960				10,431
Cost of distribution			2,496				1,333				9,147				4,475
Cost of real estate			20				19				78				77
			8,644				7,086				32,332				24,792
Gross Margin			3,190				2,222				11,733				7,670
Operating Expenses:
General and administrative			2,056				1,693				8,361				6,929
Selling			194				90				643				446
Research and development			82				80				375				357
(Loss) Gain on disposal of property, plant and equipment			1				--				1				(1	)
Total operating expenses			2,333				1,863				9,380				7,731
Income/ (Loss) from Operations			857				359				2,353				(61	)
Other (Expenses) Income
Interest expense			(35	)			(30	)			(122	)			(126	)
Other income, net			(74	)			148				595				354
Government grant			228				102				228				514
Impairment loss on other assets			--				(1,580	)			--				(1,580	)
Total other income (expenses)			119				(1,360	)			701				(838	)
Income (Loss) from Continuing Operations before Income Taxes			976				(1,001	)			3,054				(899	)
Income Tax Expenses			(254	)			(103	)			(757	)			(228	)
Income (Loss) from Continuing Operations before Non-controlling Interest, net of tax			722				(1,104	)			2,297				(1,127	)
(Loss) Gain from discontinued operations, net of tax			(3	)			(2	)			2				(28	)
NET INCOME (LOSS)			719				(1,106	)			2,299				(1,155	)
Less: Net loss attributable to the non-controlling interest			(71	)			(110	)			(96	)			(564	)
Net income (loss) attributable to Trio-Tech International			790				(996	)			2,395				(591	)
Net Income Attributable to Trio-Tech International:
Income (Loss) from continuing operations, net of tax			793				(993	)			2,396				(575	)
(Loss) from discontinued operations, net of tax			(3	)			(3	)			(1	)			(16	)
Net Income (Loss) Attributable to Trio-Tech International			790				(996	)			2,395				(591	)
Basic Earnings (Loss) per Share - Continuing Operations		$	0.20			$	(0.26	)		$	0.61			$	(0.16	)
Basic Loss per Share – Discontinued Operations			--				--				(0.01	)			--
Basic Earnings (Loss) per Share		$	0.20			$	(0.26	)		$	0.60			$	(0.16	)
Diluted Earnings (Loss) per Share – Continuing Operations		$	0.19			$	(0.25	)		$	0.57			$	(0.15	)
Diluted Loss per Share – Discontinued Operations			--				--				--				--
Diluted Earnings (Loss) per Share		$	0.19			$	(0.25	)		$	0.57			$	(0.15	)
Weighted Average Shares Outstanding - Basic			3,972				3,768				3,972				3,768
Weighted Average Shares Outstanding - Diluted			4,094				3,898				4,174				3,885

TRIO‑TECH INTERNATIONAL AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
AUDITED (IN THOUSANDS, EXCEPT EARNINGS PER SHARE)
		Three Months Ended								Twelve Months Ended
		June 30,								June 30,
		2022				2021				2022				2021
Comprehensive Income
Attributable to Trio-Tech International Common Shareholders:
Net (loss) income		$	719			$	(1,106	)		$	2,299			$	(1,155	)
Foreign currency translation, net of tax			(1,253	)			133				(1,275	)			1,248
Comprehensive (Loss) Income			(534	)			(973	)			1,024				93
Less: Comprehensive Loss
attributable to non-controlling interests			(129	)			(117	)			(169	)			(572	)
Comprehensive (Loss) Income
Attributable to Trio-Tech International		$	(405	)		$	(856	)		$	1,193			$	665

TRIO‑TECH INTERNATIONAL AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT NUMBER OF SHARES)
		June 30,
		2022			2021
ASSETS		(Audited)
CURRENT ASSETS:
Cash and cash equivalents		$	7,698		$	5,836
Short-term deposits			5,420			6,651
Trade account receivables, net			11,592			8,293
Other receivables			998			662
Inventories, net			2,258			2,080
Prepaid expenses and other current assets			1,215			418
Financed sales receivable			21			19
Total current assets			29,202			23,959
Deferred tax assets			169			217
Investment properties, net			585			681
Property, plant and equipment, net			8,481			9,531
Operating lease right-of-use assets			3,152			1,876
Other assets			137			262
Financed sales receivable			17			39
Restricted term deposits			1,678			1,741
Total non-current assets			14,219			14,347
TOTAL ASSETS		$	43,421		$	38,306
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Lines of credit		$	929		$	72
Accounts payable			2,401			3,702
Accrued expenses			6,004			3,363
Income taxes payable			787			314
Current portion of bank loans payable			472			439
Current portion of finance leases			118			197
Current portion of operating leases			1,218			672
Total current liabilities			11,929			8,759
Bank loans payable, net of current portion			1,272			1,621
Finance leases, net of current portion			119			253
Operating leases, net of current portion			1,934			1,204
Income taxes payable			137			385
Other non-current liabilities			28			31
Total non-current liabilities			3,490			3,494
TOTAL LIABILITIES			15,419			12,253
EQUITY
TRIO-TECH INTERNATIONAL'S SHAREHOLDERS' EQUITY:
Common stock, no par value, 15,000,000 shares authorized; 4,071,680 and 3,913,055
shares issued and outstanding at June 30, 2022 and June 30, 2021, respectively			12,750			12,178
Paid-in capital			4,708			4,233
Accumulated retained earnings			9,219			6,824
Accumulated other comprehensive gain-translation adjustments			1,197			2,399
Total Trio-Tech International shareholders' equity			27,874			25,634
Non-controlling interest			128			419
TOTAL EQUITY			28,002			26,053
TOTAL LIABILITIES AND EQUITY		$	43,421		$	38,306

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220923005160/en/

Company Contact:

A. Charles Wilson

Chairman

(818) 787-7000

Investor Contact:

Berkman Associates

(310) 927-3108

robert.jacobs@jacobscon.com

Source: Trio-Tech International

FAQ

What were Trio-Tech's earnings for the fourth quarter of fiscal 2022?

Trio-Tech reported earnings of $0.19 per diluted share for the fourth quarter of fiscal 2022.

What was the total revenue for Trio-Tech in fiscal 2022?

Trio-Tech's total revenue for fiscal 2022 was $44,065,000.

What drove the increase in revenue for Trio-Tech in fiscal 2022?

The revenue increase was primarily driven by a 41% increase in testing services revenue and a 103% increase in distribution revenue.

How did Trio-Tech's net income change from fiscal 2021 to fiscal 2022?

Net income increased to $2,395,000 in fiscal 2022, compared to a net loss of $591,000 in fiscal 2021.

What does Trio-Tech's record backlog indicate about its future business prospects?

The record backlog of $17,463,000 indicates strong future demand for Trio-Tech's services.