Highway Holdings Limited (NASDAQ: HIHO) has announced its fiscal Q1 2022 financial results for the period ended June 30, 2021, in which net sales were up 46% YoY to $3 million.
Highway Holdings posted a net income of $333,000 in Q1 2022
Net income in Q1 2022 was $333,000 or $0.08 per share relative to a net loss of $223,000 or 0.06 per share in fiscal Q1 2021. Gross profit during the quarter was $930,000 relative to $520,000 a year ago, with the gross margin being 31%, up from 25% last year.
CEO Roland Kohl said, ” Results for the fiscal 2022 first quarter benefitted from the carryover of orders that were delayed in the fiscal 2021 fourth quarter due to the global pandemic and other factors discussed in the company’s recently announced fiscal year-end results. While we remain cautious about the near-term consequences related to the global pandemic and supply chain issues impacting most industries, we are starting fiscal 2022 off on a solid foundation with excellent order demand.”
SG&A expenses dropped in the quarter due to management salary reductions
Selling and G&A expenses for Q1 2022 dropped $113,000 thanks to the reduction in management salaries. Also, as a percentage of revenue, SG&A expenses dropped from 35% to 21% despite the company reporting an almost 46% sales increase. Highway Holdings realized a currency exchange loss of around $7,000 during the quarter relative to an exchange loss of $20,000 a year ago. This was primarily due to a string RMB in the first two months of the fiscal year.
Kohl said that the company’s current financial position is solid, with around $7.7 million in cash and cash equivalent surpassing the combined long-term and short-term liabilities by around $2.2 million. In addition, at the end of June, the company had $7.9 million in working capital with total shareholder equity or around $10.1 million relative to $9.8 million at the end of March.