General Bearing Corporation Releases Audited 2005 Condensed Consolidated Financial Statements
WEST NYACK, N.Y.--April 5, 2006--General Bearing Corporation (OTC: GNRL.PK) announced today that the Company has released the attached audited 2005 condensed consolidated financial statements. The aforementioned 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.
GENERAL BEARING CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In Thousands, except for shares)
December 31, January 1,
2005 2005
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ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 9,751 $ 4,878
Accounts receivable, net of allowance for
doubtful accounts of $547 in 2005 and $541 in
2004 19,207 16,812
Inventories 33,927 27,113
Prepaid taxes and taxes recoverable 1,922 854
Prepaid expenses and other current assets 3,205 2,447
Advances to affiliates 53 80
Deferred tax assets 877 1,898
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Total current assets 68,942 54,082
PROPERTY, PLANT AND EQUIPMENT 29,298 24,667
INVESTMENT IN, ADVANCES TO AND ACCOUNTS
RECEIVABLE FROM JOINT VENTURES AND AFFILIATES 628 576
OTHER ASSETS 1,031 989
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Total Assets $ 99,899 $ 80,314
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Notes payable - banks $ 20,319 $ 8,632
Accounts payable 13,936 11,935
Due to affiliates 8 92
Accrued expenses and other current liabilities 7,237 7,273
Current portion of long-term debt 2,505 240
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Total current liabilities 44,005 28,172
LONG-TERM DEBT 7,676 14,029
DEFERRED TAXES 96 676
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Total liabilities 51,777 42,877
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MINORITY INTERESTS 15,751 13,135
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Common shares - par value $.01 per share;
authorized 19,000,000 shares; 4,174,450 issued
and outstanding in 2005 and 2004 42 42
Paid-in capital 40,232 40,232
Accumulated other comprehensive income / (loss) 270 (458)
Treasury stock, at cost; 354,728 and 384,228
shares (1,272) (1,395)
Accumulated deficit (6,901) (14,119)
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Total stockholders' equity 32,371 24,302
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Total Liabilities and Stockholders' Equity $ 99,899 $ 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)
Years Ended
-----------------------
December 31, January 1,
2005 2005
SALES $ 109,873 $ 84,116
COST OF SALES 77,057 62,838
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GROSS PROFIT 32,816 21,278
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 18,005 15,793
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OPERATING INCOME 14,811 5,485
OTHER EXPENSES, NET 2,167 1,856
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INCOME FROM OPERATIONS BEFORE INCOME TAXES 12,644 3,629
INCOME TAXES 3,496 1,461
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INCOME FROM OPERATIONS BEFORE MINORITY
INTERESTS 9,148 2,168
MINORITY INTERESTS (1,930) (784)
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NET INCOME $ 7,218 $ 1,384
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Other Comprehensive Income
Mark to market-interest rate swap 276 334
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Total comprehensive income $ 7,494 $ 1,718
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Net income per common share:
Basic $ 1.90 $ 0.37
Diluted $ 1.84 $ 0.37
Weighted average number of common shares
Basic 3,805,450 3,772,152
Diluted 3,927,466 3,785,995
GENERAL BEARING CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
Years Ended December 31, 2005 and January 1, 2005
(In Thousands, except for shares)
Accumulated
Common Shares Other
----------------- Paid-In Comprehensive
Shares Amt. Capital Income
----------------------------------------
Balance, January 3, 2004 7,102,200 $ 71 $40,133 $(792)
Shares issued - board
compensation
Options exercised 22,250 - 70
Treasury shares, at cost (2,950,000) (29) 29
Mark to market - interest rate
swap - - - 334
Net income - - - -
---------- ----- -------- ------
Balance, January 1, 2005 4,174,450 42 40,232 (458)
Shares issued - board
compensation - - -
Foreign exchange translation - - - 452
Mark to market - interest rate
swap - - - 276
Net income - - - -
---------- ----- -------- ------
Balance, December 31, 2005 4,174,450 $ 42 $40,232 $ 270
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Treasury Stock
--------------------- Accum.
Shares Amt. Deficit Total
-----------------------------------------
Balance, January 3, 2004 3,348,228 $(1,438) $(15,503) $22,471
Shares issued - board
compensation (14,000) 43 - 43
Options exercised - - - 70
Treasury shares, at cost (2,950,000) - - -
Mark to market - interest
rate swap - - - 334
Net income - - 1,384 1,384
---------- -------- --------- --------
Balance, January 1, 2005 384,228 (1,395) (14,119) 24,302
Shares issued - board
compensation (29,500) 123 - 123
Foreign exchange
translation - - - 452
Mark to market - interest
rate swap - - - 276
Net income - - 7,218 7,218
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Balance, December 31, 2005 354,728 $(1,272) $ (6,901) $32,371
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GENERAL BEARING CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
Years Ended
----------------------
December 31, January 1,
2005 2005
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OPERATING ACTIVITIES
Net income $ 7,218 $ 1,384
Adjustments to reconcile net income to net cash
provided by operating activities:
Minority interests 1,930 784
Depreciation and amortization 3,417 3,313
Deferred income taxes 441 (457)
Equity earnings in joint ventures and affiliates (36) (15)
Loss / (gain) on disposal of property, plant and
equipment (85) 4
Other non - cash items charged to income (75) 6
Changes in:
Accounts receivable (2,395) (2,427)
Inventories (6,814) (1,092)
Prepaid expenses and other assets (1,951) 3,267
Advances to affiliates (59) (441)
Accounts payable and accrued expenses 2,368 3,611
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Net cash provided by operating activities 3,959 7,937
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INVESTING ACTIVITIES
Cash (paid) / received for additional equity, net (921) 871
Fixed asset purchases (7,505) (1,958)
Dividends paid to minority stockholders (538) (553)
Proceeds from sale of fixed assets 151 40
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Net cash used in investing activities (8,813) (1,600)
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FINANCING ACTIVITIES
Repayment of capital lease (65) (231)
Increase (decrease) in note payable - banks 12,412 (2,745)
Decrease in note payable - other (200) (200)
Net repayment of revolving credit facility (4,545) (916)
Proceeds from partner contributions in a joint
venture 2,125 862
Proceeds from the exercise of common stock options - 70
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Net cash provided by (used in) financing
activities 9,727 (3,160)
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NET INCREASE IN CASH AND CASH EQUIVALENTS 4,873 3,177
CASH AND CASH EQUIVALENTS, Beginning of Year 4,878 1,701
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CASH AND CASH EQUIVALENTS, End of Year $ 9,751 $ 4,878
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