Global-Tech Appliances Reports Results for First Quarter of Fiscal 2000.HONG n. 1. A mercantile establishment or factory for foreign trade in China, as formerly at Canton; a succession of offices connected by a common passage and used for business or storage. KONG--(BUSINESS WIRE)--Aug. 16, 1999-- Global-Tech Appliances Inc. (NYSE NYSE See: New York Stock Exchange : GAI GAI General Applet Interface GAI Giustizia e Affari Interni (Italian) GAI Global-Tech Appliances Inc GAI Guild of Architectural Ironmongers GAI Global Atmospherics Inc GAI General Ability Index GAI Great American Insurance ) today announced results for the first quarter of fiscal 2000 ended June June: see month. 30, 1999. The Company's net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight decreased to approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $18.7 million for the first quarter of fiscal 2000, as compared to $23.6 million in the first quarter of fiscal 1999. The Company's net income decreased to approximately $1.1 million for the first quarter of fiscal 2000, which included a charge of $500,000 related to acquisition expenses, as compared to $3.3 million in the corresponding period in fiscal 1999. Excluding the charge, net income was approximately $1.6 million for the first quarter of fiscal 2000. Earnings per share for the first quarter of fiscal 2000 were $0.09. Excluding the charge related to acquisition expenses, earnings per share were $0.13 for the first quarter of fiscal 2000. John C.K. Sham, President and Chief Executive Officer, said, "We believe the first quarter of fiscal 2000 should be the last quarter for which a comparison of the Company's performance with that of a prior period will be adversely affected due to the Company's previous dependence on Sunbeam. For the balance of the year, the Company expects that its new product development efforts, coupled with its strong initiative in procuring Procuring, in general, is the act of acquiring goods or services, usually by contract. It may refer to:
Mr. Sham continued, "The Company is excited about the potential opportunities presented by our newly established relationships with a number of U.S. brands that are seeking more formal participation in supplying a wider range of products to enhance their competitiveness in the market, particularly versus private label programs. The Company continues to believe that partnerships and other manufacturing arrangements with top quality brand marketers will lead to much improved financial performance and further augment aug·ment v. aug·ment·ed, aug·ment·ing, aug·ments v.tr. 1. To make (something already developed or well under way) greater, as in size, extent, or quantity: its growth strategies." Mr. Sham concluded, "During the first quarter of fiscal 2000, the Company incurred approximately $500,000 in legal and professional expenses associated with potential acquisitions of complimentary businesses. Since the consummation CONSUMMATION. The completion of a thing; as the consummation of marriage; (q.v.) the consummation of a contract, and the like. 2. A contract is said to be consummated, when everything to be done in relation to it, has been accomplished. of any of these acquisitions is uncertain, the Company is expensing these costs as incurred. While the Company's emphasis is to further increase its existing business, it plans to continue its pursuit on acquisitions that will complement the Company's low cost innovative manufacturing capabilities and enhance shareholder value." Global-Tech is an original designer, manufacturer, and marketer of a wide range of small household appliances in six primary product categories: kitchen appliances; personal, beauty and health care products; garment care products; travel products and accessories; floor care products; and environmental care products. The Company's products are marketed by its customers under brand names such as Hamilton Hamilton, city, Bermuda Hamilton, city (1990 est. pop. 3,100), capital of Bermuda, on Bermuda Island. It is a port at the head of Great Sound, a huge lagoon and deepwater harbor protected by coral reefs. Beach(R), Krups Krups is a German kitchen appliance manufacturer that has for many years been the world's leading manufacturer of coffee and espresso machines. The company also produces a number of household appliances, including meat slicers, food processors, blenders, coffee grinders and (R), Morphy Richards Morphy Richards is a leading business firm located in the Swinton Meadows Industrial Estate, Swinton near Mexborough, South Yorkshire. It specialises in the manufacturing of toasters, hairdryers, bread makers, kettles and sandwich toasters and other appliances. (R), Moulinex Moulinex is a French brandname of small electrical appliances and kitchen equipment and is owned by Groupe SEB. Moulinex was originally established as a company in 1937, however at the beginning of September 2001, Moulinex declared bankruptcy. (R), Mr. Coffee(R), Oster Oster the archetypal hair clipper used worldwide. Has a range of interchangeable heads. (R), Proctor-Silex(R), Remington Rem·ing·ton , Eliphalet 1793-1861. American firearms manufacturer whose company was a major munitions supplier to the U.S. government and under his son Philo (1816-1889) an important manufacturer of sewing machines and typewriters. (R), Sunbeam(R), Vidal Sassoon Vidal Sassoon (born January 17, 1928) is a hairdresser. Sassoon was born to Jewish parents in London. His father was from Thessaloniki in northern Greece with Iraqi origins, and his mother, whose family was originally from Kiev, was born in London. (R), and Welbilt This article is about the rock band. For the manufacturer of food and beverage equipment, see Enodis. Welbilt is a rock band from the Washington, D.C. area. Formed in early 2002 after members met at the Fairfax, Virginia bar TT Reynolds. (R). Except for historical information, certain statements contained herein are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," or variations of such words and similar expressions are intended to identify such forward looking statements. These forward looking statements are subject to risks and uncertainties, including but not limited to, the impact of competitive products and pricing, product demand and market acceptance, new product development, reliance on key strategic alliances, availability of raw materials, the regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. environment, fluctuations in operating results and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission including its Registration Statement on Form F-1 which was declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. effective on April 8, 1998. -0-
GLOBAL-TECH APPLIANCES INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Amounts expressed in United States dollars)
June 30, March 31,
1999 1998 1999
(unaudited) (unaudited) (audited)
(in thousands)
ASSETS
Current assets:
Cash and cash equivalents $ 37,825 $ 74,287 $ 56,514
Investments in U.S. treasury
bills and marketable securities 30,795 1,162 10,542
Restricted cash - 571 -
Accounts receivable, net 7,032 10,796 8,083
Deposits, prepayments
and other assets 2,925 1,982 2,637
Inventories, net 23,882 20,742 20,072
Total current assets 102,459 109,540 97,848
Property, plant and equipment 24,738 23,831 24,982
Construction-in-progress 9,868 6,170 9,525
Patents 15 17 16
Total assets $ 137,080 $ 139,558 $ 132,371
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term bank borrowings $ 1,978 $ 7,213 $ 1,717
Current portion of
long-term bank loans 617 385 848
Accounts payable 11,649 11,386 8,961
Advance payments from customers 322 146 122
Accrued expenses 3,394 2,962 3,386
Income tax provision 2,329 2,122 2,260
Total current liabilities 20,289 24,214 17,294
Long-term bank loans 1,093 450 1,093
Deferred income taxes 21 21 21
Total liabilities 21,403 24,685 18,408
Shareholders' equity:
Preferred stock, par value
$0.01; 1,000,000 shares
authorized, no
shares issued - - -
Common stock, par value
$0.01; 50,000,000 shares
authorized; 12,830,000 shares
issued; 12,090,100 shares
outstanding as of
June 30, 1999 and March 31, 1999;
12,824,000 shares
outstanding as of June 30, 1998 128 128 128
Additional paid-in capital 81,662 81,677 81,662
Retained earnings 38,875 33,156 37,798
Accumulated other
comprehensive income (deficit) 238 - (399)
Treasury stock, at cost:
739,900 shares as of June 30, 1999
and March 31, 1999; 6,000 shares
as of June 30, 1998 (5,226) (88) (5,226)
Total shareholders' equity 115,677 114,873 113,963
Total liabilities
and shareholders' equity $ 137,080 $ 139,558 $ 132,371
-0-
GLOBAL-TECH APPLIANCES INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Amounts expressed in United States dollars)
Three Months Ended June 30,
1999 1998
(unaudited)
(in thousands, except per share data)
Net sales $ 18,729 $ 23,624
Cost of goods sold (14,234) (17,449)
Gross profit 4,495 6,175
Selling, general
and administrative expenses (3,561) (3,046)
Unusual item (500) -
Operating income 434 3,129
Other income (expense), net 712 409
Income before income taxes 1,146 3,538
Provision for income taxes (69) (282)
Net income 1,077 3,256
Net income per share $ 0.09 $ 0.27
Weighted average number
of shares outstanding 12,090 11,980
-0-
GLOBAL-TECH APPLIANCES INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts expressed in United States dollars)
Three Months Ended June 30,
1999 1998
(unaudited)
(in thousands)
Cash flows from operating activities:
Net income $ 1,077 $ 3,256
Adjustments to reconcile
net income to net cash provided by
operating activities:
Depreciation and amortization 827 813
Decrease in restricted cash - 309
Decrease (increase)
in accounts receivable, net 1,051 (6,949)
(Increase) decrease in deposits,
prepayments and other assets (288) 11
(Increase) decrease in inventories (3,810) 1,058
Increase in accounts payable 2,688 3,015
Increase in advance payments from
customers 200 49
Increase (decrease) in accrued expenses 8 (2,503)
Increase in income tax provision 69 282
Net cash provided by
(used in) operating activities 1,822 (659)
Cash flows from investing activities:
Increase in investments in U.S.
treasury bills and marketable securities (19,616) (1,162)
Purchases of property, plant and equipment (582) (1,661)
Additions to construction-in-progress (343) (1,274)
Net cash used in investing activities (20,541) (4,097)
Cash flows from financing activities:
Proceeds from issuance of common stock - 85,268
Stock issuance costs - -
Purchase of treasury stock - (88)
Increase in short-term bank borrowings 261 -
Repayment of short-term bank borrowings - (6,283)
Increase in long-term bank loans - -
Repayment of long-term bank loans (231) (163)
Net cash provided by financing activities 30 78,734
Net (decrease) increase
in cash and cash equivalents (18,689) 73,978
Cash and cash equivalents
at beginning of period 56,514 309
Cash and cash equivalents
at end of period $ 37,825 $ 74,287
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