SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
6-K
REPORT OF
FOREIGN ISSUER
PURSUANT
TO RULE 13a-16 OR 15d-16 OF
THE
SECURITIES EXCHANGE ACT OF 1934
For the
date of June 2010
HIGHWAY
HOLDINGS LIMITED___
(Translation
of Registrant's Name Into English)
Suite
810, Level 8
Landmark
North
39 Lung
Sum Avenue
Sheung
Shui
New Territories, Hong Kong
(Address
of Principal Executive Offices)
(Indicate
by check mark whether the registrant files or will file annual reports under
cover of Form 20-F or Form 40-F.)
Form
20-F X Form
40-F ___
(Indicate
by check mark whether the registrant by furnishing the information contained in
this Form is also thereby furnishing the information to the Commission pursuant
to Rule 12g3-2(b) under the Securities Exchange Act of 1934.)
Yes ___ No X_
(If "Yes"
is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82-_______________.)
Attached
to this Report on Form 6-K is the press release issued by the registrant on June
28, 2010.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned thereunto
duly authorized.
|
HIGHWAY HOLDINGS LIMITED
|
||
|
Date: June
30, 2010
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By
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/s/ ROLAND W. KOHL
|
|
Roland W. Kohl
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||
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Chief
Executive Officer
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NEWS RELEASE
|
| CONTACT: | Gary S. Maier |
|
Maier
& Company, Inc.
(310)
442-9852
|
HIGHWAY
HOLDINGS REPORTS FISCAL 2010 FOURTH QUARTER/ YEAR-END RESULTS
HONG KONG —June 28, 2010 —
Highway Holdings Limited (Nasdaq:HIHO) today reported results
for its fiscal fourth quarter and year ended March 31, 2010, maintaining
profitability despite challenging worldwide economic
conditions.
Net
income for the fiscal fourth quarter was $161,000, or $0.04 per diluted share,
compared with net income of $271,000, or $0.07 per diluted share, a year
earlier. Net sales for the same period were $6.0 million compared
with $6.9 million a year earlier.
Net
income for fiscal year 2010 was $420,000, or $0.11 per diluted share, compared
with net income of $768,000, or $0.20 per diluted share, in fiscal
2009. Net sales for fiscal 2010 were $21.7 million compared with
$33.7 million a year ago.
“Despite
the steep decline in worldwide economic activity during the past year and the
impact on net sales, the company was still able to achieve a net profit in both
the fiscal 2010 fourth quarter and year,” said Roland Kohl, president and chief
executive officer of Highway Holdings.
Kohl
noted that order flow and net sales appear to be improving in the new fiscal
year compared with last year. He added that future financial
performance, however, will remain uncertain due to the recent steep increases in
labor costs in China, the fluctuations in raw materials prices, and the changes
in the value of the euro and yuan compared with the U.S. dollar.
He noted
the company initiated substantial internal changes to address global factors,
including the closure of two of its four factories. “These closures
resulted in one-time charges that impacted profitability for fiscal 2010, but
will reduce our future operating costs,” Kohl said.
Nonetheless,
“the company was able to further improve its balance sheet, increase its cash
position, reduce inventory and accounts receivables, and improve its current
ratio. As a result, we ended the fiscal year with cash and restricted
cash at 1.5 times current and long-term liabilities combined,” Kohl
added.
(more)
Gross
profit as a percentage of sales increased to 21.6 percent compared with 19.9
percent a year earlier. The increase in gross profit reflects a focus
on streamlining the company’s workforce and the implementation of programs and
systems to enhance operations.
Selling,
general and administrative expenses for fiscal 2010 decreased by $1.5 million,
or 25.0 percent, compared with the same period a year earlier as a result of
both the decrease in net sales and the elimination of certain expenses related
to the recently closed facilities -- as well as a reduction in auditing
fees.
Fiscal
2010 fourth quarter results reflect an approximate 13.6 percent reduction in net
sales, with a $90,000 higher gross profit -- resulting in strong operational
income of $366,000 compared with an operational loss of $18,000 a year
earlier.
The
weakening of the euro compared with the U.S. dollar in the fiscal fourth quarter
resulted in a currency exchange loss of $167,000 in fiscal 2010 compared with a
currency exchange loss of $51,000 the year earlier. The company does
not undertake any currency hedging transactions. The company does,
however, have agreements with certain of its European customers that limit the
risk of currency fluctuations.
Kohl
noted that the company’s balance sheet remains strong with total current assets
at
March 31,
2010 of $14.3 million; working capital of $9.8 million; and long-term debt, net
of the current portion, of only $44,000. The company’s current ratio was 3.18:1
at March 31, 2010 compared with 2.53 at March 31, 2009.
Kohl
highlighted the company’s cash position of $1.88 per diluted share and an
increase in total shareholders’ equity to $11.7 million at March 31, 2010 from
$11.4 million a year earlier – representing approximately $3.12 per diluted
share.
About
Highway Holdings
Highway
Holdings produces a wide variety of high-quality products for blue chip original
equipment manufacturers -- from simple parts and components to
sub-assemblies. It also manufactures finished products, such as light
fixtures, LED lights, radio chimes and other electronic
products. Highway Holdings is headquartered in Hong Kong, and
currently operates with its principal manufacturing facility in Shenzhen, and a
factory in Wuxi, in the People's Republic of China.
Except
for the historical information contained herein, the matters discussed in this
press release are forward-looking statements which involve risks and
uncertainties, including but not limited to economic, competitive, governmental,
political and technological factors affecting the company's revenues,
operations, markets, products and prices, and other factors discussed in the
company’s various filings with the Securities and Exchange Commission, including
without limitation, the company’s annual reports on Form 20-F.
(Financial
Tables Follow)
# # # #
HIGHWAY
HOLDINGS LIMITED AND SUBSIDIARIES
Consolidated
Statement of Income
(Dollars
in thousands, except per share data)
(Unaudited)
|
Three
Months Ended
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Year
Ended
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|||||||||||||||
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March
31
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March
31,
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|||||||||||||||
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2010
|
2009
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2010
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2009
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|||||||||||||
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Net
sales
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$ | 5,964 | $ | 6,906 | $ | 21,739 | $ | 33,729 | ||||||||
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Cost
of sales
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4,561 | 5,593 | 17,039 | 27,025 | ||||||||||||
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Gross
profit
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1,403 | 1,313 | 4,700 | 6,704 | ||||||||||||
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Selling,
general and administrative expenses
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1,037 | 1,331 | 4,367 | 5,823 | ||||||||||||
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Operating
income (loss)
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366 | (18 | ) | 333 | 881 | |||||||||||
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Non-operating
items
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||||||||||||||||
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Interest
expenses
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(9 | ) | (15 | ) | (47 | ) | (141 | ) | ||||||||
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Exchange
(loss) gain, net
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(167 | ) | (51 | ) | 173 | (330 | ) | |||||||||
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Interest
income
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- | 7 | 6 | 35 | ||||||||||||
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Other
income
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24 | 172 | 46 | 230 | ||||||||||||
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Share
of loss of unconsolidated affiliates
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(2 | ) | - | (2 | ) | - | ||||||||||
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Impairment
loss on property, plan and equipment
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(97 | ) | - | (97 | ) | - | ||||||||||
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Impairment
loss on investment in unconsolidated
affiliates
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(2 | ) | - | (2 | ) | - | ||||||||||
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Total
non-operating (expense) income
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(253 | ) | 113 | 77 | (206 | ) | ||||||||||
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Net
income before income tax and non-controlling
Interest
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113 | 95 | 410 | 675 | ||||||||||||
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Income
taxes credit (expense)
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11 | 119 | (10 | ) | 35 | |||||||||||
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Net
Income before non-controlling interests
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124 | 214 | 400 | 710 | ||||||||||||
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Loss
attributable to non-controlling Interest
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37 | 57 | 20 | 58 | ||||||||||||
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Net
Income attributable to Highway
Holdings
Limited
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$ | 161 | $ | 271 | $ | 420 | $ | 768 | ||||||||
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Net Income
attributable to Highway
Holdings
Limited
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||||||||||||||||
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Basic
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$ | 0.04 | $ | 0.07 | $ | 0.11 | $ | 0.21 | ||||||||
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Diluted
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$ | 0.04 | $ | 0.07 | $ | 0.11 | $ | 0.20 | ||||||||
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Weighted
average number of shares
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||||||||||||||||
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Basic
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3,755 | 3,744 | 3,755 | 3,744 | ||||||||||||
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Diluted
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3,758 | 3,774 | 3,758 | 3,774 | ||||||||||||
HIGHWAY HOLDINGS LIMITED AND
SUBSIDIARIES
Consolidated
Balance Sheet
(In
thousands, except per share data)
|
March
31
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March
31
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|||||||
|
2010
|
2009
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|||||||
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Current assets:
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||||||||
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Cash
and cash equivalents
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$ | 6,279 | $ | 5,809 | ||||
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Restricted
cash
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771 | 1,028 | ||||||
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Accounts
receivable, net of doubtful accounts
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3,240 | 3,426 | ||||||
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Inventories
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3,495 | 4,010 | ||||||
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Prepaid
expenses and other current assets
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507 | 672 | ||||||
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Total
current assets
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14,292 | 14,945 | ||||||
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Property,
plant and equipment, (net)
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2,051 | 2,840 | ||||||
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Investment
in affiliates
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8 | 2 | ||||||
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Intangible
assets, (net)
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1 | 24 | ||||||
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Total
assets
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$ | 16,352 | $ | 17,811 | ||||
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Current liabilities:
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||||||||
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Accounts
payable
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$ | 2,389 | $ | 2,166 | ||||
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Short-term
borrowing
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793 | 1,850 | ||||||
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Current
portion of long-term debt
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251 | 259 | ||||||
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Accrual
payroll and employee benefits
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542 | 373 | ||||||
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Other
liabilities and accrued expenses
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514 | 1,257 | ||||||
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Total
current liabilities
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4,489 | 5,905 | ||||||
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Long-term
debt – net of current portion
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44 | 294 | ||||||
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Deferred
income taxes
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147 | 163 | ||||||
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Total
liabilities
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4,680 | 6,362 | ||||||
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Shareholders' equity:
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||||||||
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Common
shares, $0.01 par value
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38 | 37 | ||||||
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Additional
paid-in capital
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11,289 | 11,224 | ||||||
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Retained
earnings
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461 | 154 | ||||||
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Accumulated
other comprehensive loss
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(13 | ) | (6 | ) | ||||
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Treasury
shares, at cost – 37,800 shares as of March 31, 2009; and March 31, 2010
respectively
|
(53 | ) | (53 | ) | ||||
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Total
Highway Holdings Limited shareholders' equity
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11,722 | 11,356 | ||||||
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Non-controlling
interest
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(50 | ) | 93 | |||||
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Total
Equity
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11,672 | 11,449 | ||||||
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Total
liabilities and shareholders' equity
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$ | 16,352 | $ | 17,811 | ||||