General Bearing Corporation Releases Results for the Second Quarter
WEST NYACK, N.Y.--Aug. 1, 2005--General Bearing Corporation (OTC: GNRL.PK) announced today that the Company has released the attached unaudited condensed consolidated financial statements for the twenty - six weeks ending July 2, 2005. The aforementioned interim financial statements are also available on the Company's website at www.generalbearing.comGeneral Bearing manufactures ball bearings, tapered roller bearings, spherical roller bearings, and cylindrical roller bearings, and bearing components. Under "The General" and the "Hyatt" trademarks, the Company supplies original equipment manufacturers in the automobile, truck/trailer, railcar, office equipment, machinery and appliance industries, as well as the industrial aftermarket.
"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward looking statements that are subject to risks and uncertainties, including, but not limited to, the impact of competitive products, product demand and market acceptance risks, reliance on key strategic alliances, fluctuations in operating results and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission. These risks could cause the Company's actual results for the current fiscal year and beyond to differ materially from those expressed in any forward looking statements made by, or on behalf of, the Company.
GENERAL BEARING CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In Thousands, except for shares)
July 2, January 1,
2005 2005
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ASSETS (Unaudited)
CURRENT ASSETS
Cash and cash equivalents $ 12,098 $ 4,878
Accounts receivable, net of allowance for
doubtful accounts of $690 in 2005 and $541
in 2004 19,940 16,812
Inventories 29,952 27,113
Prepaid taxes and taxes recoverable 372 854
Prepaid expenses and other current assets 2,485 2,447
Advances to affiliates 73 80
Deferred tax assets 1,898 1,898
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Total current assets 66,818 54,082
PROPERTY, PLANT AND EQUIPMENT 25,896 24,667
INVESTMENT IN, ADVANCES TO AND ACCOUNTS
RECEIVABLE FROM JOINT VENTURES AND AFFILIATES 613 576
OTHER ASSETS 974 989
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Total assets $ 94,301 $ 80,314
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Notes payable - banks $ 10,721 $ 8,632
Accounts payable 12,445 11,935
Due to affiliates - 92
Accrued expenses and other current liabilities 7,636 7,273
Current portion of long-term debt 210 240
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Total current liabilities 31,012 28,172
LONG-TERM DEBT 17,827 14,029
DEFERRED TAXES 676 676
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Total liabilities 49,515 42,877
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MINORITY INTERESTS 16,216 13,135
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Common shares - par value $.01 per share;
authorized 19,000,000 shares; issued 4,174,450
and 4,174,450 shares 42 42
Paid-in capital 40,232 40,232
Accumulated other comprehensive loss (319) (458)
Treasury stock, at cost; 372,228 and 384,228
shares (1,343) (1,395)
Accumulated deficit (10,042) (14,119)
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Total stockholders' equity 28,570 24,302
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Total liabilities and stockholders' equity $ 94,301 $ 80,314
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GENERAL BEARING CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(In Thousands, Except for Shares and Per Share Data)
(Unaudited)
Twenty six Weeks Ended Thirteen Weeks Ended
----------------------- --------------------
July 2, July 3, July 2, July 3,
2005 2004 2005 2004
---------- ---------- ---------- ----------
SALES $ 55,271 $ 39,831 $ 28,052 $ 21,526
COST OF SALES 38,204 29,077 19,337 15,708
---------- ---------- ---------- ----------
GROSS PROFIT 17,067 10,754 8,715 5,818
SELLING, GENERAL AND
ADMINISTRATIVE EXP. 8,623 7,469 4,321 4,016
---------- ---------- ---------- ----------
OPERATING INCOME 8,444 3,285 4,394 1,802
OTHER EXPENSES, NET 899 781 482 412
---------- ---------- ---------- ----------
INCOME BEFORE INCOME
TAXES 7,545 2,504 3,912 1,390
INCOME TAXES 2,518 790 1,196 405
---------- ---------- ---------- ----------
INCOME BEFORE MINORITY
INTERESTS 5,027 1,714 2,716 985
MINORITY INTERESTS 951 336 540 294
---------- ---------- ---------- ----------
NET INCOME $ 4,076 $ 1,378 $ 2,176 $ 691
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Other Comprehensive
Income / (Loss)
Mark to market-interest
rate swap 139 229 17 237
---------- ---------- ---------- ----------
Total comprehensive
income $ 4,215 $ 1,607 $ 2,193 $ 928
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Net Income per common
share
Basic $ 1.07 $ 0.37 $ 0.57 $ 0.18
Diluted $ 1.06 $ 0.37 $ 0.57 $ 0.18
Weighted average number
of common shares
Basic 3,794,640 3,763,049 3,799,057 3,767,972
Diluted 3,840,416 3,768,396 3,844,694 3,776,646
GENERAL BEARING CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
(Unaudited)
Twenty six weeks ended
--------------------------
July 2, 2005 July 3, 2004
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OPERATING ACTIVITIES
Net income $ 4,076 $ 1,378
Adjustments to reconcile net income to net
cash provided by operating activities:
Minority interests 951 336
Depreciation and amortization 1,713 1,417
Equity earnings in joint ventures and
affiliates (37) (121)
(Gain) / loss on sale of fixed assets - (2)
Changes in:
Accounts receivable (3,128) (1,822)
Inventories (2,839) 2,470
Prepaid expenses and other assets 421 3,305
Advances to affiliates (86) (1,345)
Accounts payable and accrued expenses 1,068 730
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Net cash provided by (used in) operating
activities 2,139 6,346
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INVESTING ACTIVITIES
Increase of equity interests, net of cash
acquired - 871
Fixed asset purchases (2,935) (262)
Proceeds from sale of fixed assets 32 5
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Net cash used in investing activities (2,903) 614
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FINANCING ACTIVITIES
Repayment of capital lease (34) (114)
Increase (decrease) in note payable - banks 3,176 (2,040)
Net proceeds from (repayment of) revolving
credit facility 2,717 (2,362)
Proceeds from partner contributions in a joint
venture 2,125 -
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Net cash provided by (used in) financing
activities 7,984 (4,516)
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NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS 7,220 2,444
CASH AND CASH EQUIVALENTS, Beginning of Period 4,878 1,701
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CASH AND CASH EQUIVALENTS, End of Period $12,098 $ 4,145
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