General Bearing Corporation Releases Results for the Second Quarter
WEST NYACK, N.Y.--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 4, 2009. The aforementioned interim financial statements are also available on the Company’s website at www.generalbearing.com.
General 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) | ||||||||
| July 4, | January 3, | |||||||
| 2009 | 2009 | |||||||
| ASSETS | (Unaudited) | |||||||
| CURRENT ASSETS | ||||||||
| Cash and cash equivalents | $ | 7,169 | $ | 8,643 | ||||
| Due from bank | 3,315 | 4,338 | ||||||
| Loan receivable - related party | 45 | 70 | ||||||
| Accounts receivable, net of allowance for doubtful | ||||||||
| accounts of $1,007 in 2009 and $999 in 2008 | 20,636 | 23,125 | ||||||
| Inventories | 38,025 | 44,126 | ||||||
| Prepaid taxes and taxes recoverable | 994 | 1,340 | ||||||
| Prepaid expenses and other current assets | 3,294 | 2,808 | ||||||
| Deferred tax assets | 1,171 | 1,399 | ||||||
| Total current assets | 74,649 | 85,849 | ||||||
| PROPERTY, PLANT AND EQUIPMENT | 38,880 | 40,526 | ||||||
| INVESTMENT IN, ADVANCES TO AND ACCOUNTS RECEIVABLE | ||||||||
| FROM JOINT VENTURES AND AFFILIATES | 3,408 | 1,837 | ||||||
| LOAN RECEIVABLE - RELATED PARTY | 1,340 | 1,320 | ||||||
| DEFERRED TAX ASSETS | 672 | 354 | ||||||
| OTHER ASSETS | 171 | 214 | ||||||
| Total assets | $ | 119,120 | $ | 130,100 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Notes payable - banks | $ | 23,081 | $ | 28,636 | ||||
| Notes payable - related party | - | 5,125 | ||||||
| Accounts payable | 10,064 | 14,263 | ||||||
| Due to affiliates | 672 | 1,321 | ||||||
| Accrued expenses and other current liabilities | 4,072 | 6,203 | ||||||
| Current portion of long-term debt | 5 | 36 | ||||||
| Total current liabilities | 37,894 | 55,584 | ||||||
| LONG-TERM DEBT | 10,077 | 3,660 | ||||||
| OTHER LIABILITIES | 171 | 187 | ||||||
| DEFERRED TAXES | 144 | 144 | ||||||
| Total liabilities | 48,286 | 59,575 | ||||||
| COMMITMENTS AND CONTINGENCIES | ||||||||
| GENERAL BEARING CORPORATION STOCKHOLDERS' EQUITY: | ||||||||
| Common shares - par value $.01 per share; authorized | ||||||||
| 5,000,000 shares; 4,174,450 issued and outstanding in 2009 and 2008 | 42 | 42 | ||||||
| Paid-in capital | 38,404 | 38,423 | ||||||
| Accumulated other comprehensive income | 3,162 | 3,163 | ||||||
| Treasury stock, at cost; 542,817 and 561,817 shares | (4,981 | ) | (5,159 | ) | ||||
| Retained earnings | 12,920 | 12,828 | ||||||
| Total General Bearing Corporation stockholders' equity | 49,547 | 49,297 | ||||||
| NONCONTROLLING INTERESTS | 21,287 | 21,228 | ||||||
| Total stockholders' equity | 70,834 | 70,525 | ||||||
| Total liabilities and stockholders' equity | $ | 119,120 | $ | 130,100 | ||||
|
GENERAL BEARING CORPORATION AND SUBSIDIARIES |
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| 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 4, | June 28, | July 4, | June 28, | |||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||
| SALES | $ | 41,317 | $ | 69,247 | $ | 21,482 | $ | 35,117 | ||||||
| COST OF SALES | 34,449 | 52,227 | 18,006 | 26,268 | ||||||||||
| GROSS PROFIT | 6,868 | 17,020 | 3,476 | 8,849 | ||||||||||
| SELLING, GENERAL AND ADMINISTRATIVE EXP. | 8,035 | 10,370 | 3,900 | 5,221 | ||||||||||
| OPERATING INCOME / (LOSS) | (1,167 | ) | 6,650 | (424 | ) | 3,628 | ||||||||
| OTHER EXPENSES / (INCOME), NET | (1,250 | ) | 1,720 | 160 | 823 | |||||||||
| INCOME / (LOSS) BEFORE INCOME TAXES | 83 | 4,930 | (584 | ) | 2,805 | |||||||||
| INCOME TAX EXPENSE / (BENEFIT) | (69 | ) | 1,726 | (158 | ) | 940 | ||||||||
| NET INCOME / (LOSS) | 152 | 3,204 | (426 | ) | 1,865 | |||||||||
| Less: Net income / (loss) attributable to the | ||||||||||||||
| noncontrolling interests | 60 | 471 | (246 | ) | 356 | |||||||||
| NET INCOME / (LOSS) ATTRIBUTABLE TO | ||||||||||||||
| GENERAL BEARING CORPORATION | $ | 92 | $ | 2,733 | $ | (180 | ) | $ | 1,509 | |||||
| Other Comprehensive Income / (Loss) | ||||||||||||||
| Net income / (Loss) | $ | 152 | $ | 3,204 | $ | (426 | ) | $ | 1,865 | |||||
| Foreign exchange translation | (1 | ) | 2,436 | - | 868 | |||||||||
| Total comprehensive income / (loss) | 151 | 5,640 | (426 | ) | 2,733 | |||||||||
| Comprehensive income / (loss) attributable to | ||||||||||||||
| the noncontrolling interests | 60 | 1,641 | (246 | ) | 773 | |||||||||
| Comprehensive income / (loss) attributable | ||||||||||||||
| to General Bearing Corporation | $ | 91 | $ | 3,999 | $ | (180 | ) | $ | 1,960 | |||||
| Net Income / (loss) per common share | ||||||||||||||
| Basic | $ | 0.03 | $ | 0.74 | $ | (0.05 | ) | $ | 0.41 | |||||
| Diluted | $ | 0.02 | $ | 0.71 | $ | (0.05 | ) | $ | 0.40 | |||||
| Weighted average number of common shares | ||||||||||||||
| Basic | 3,630,336 | 3,700,939 | 3,631,633 | 3,667,541 | ||||||||||
| Diluted | 3,690,943 | 3,846,066 | 3,690,178 | 3,807,708 | ||||||||||
| GENERAL BEARING CORPORATION AND SUBSIDIARIES | ||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (In Thousands) | ||||||||
| (Unaudited) | ||||||||
| Twenty six weeks ended | ||||||||
| July 4, 2009 | June 28, 2008 | |||||||
| OPERATING ACTIVITIES | ||||||||
| Net income | $ | 92 | $ | 2,733 | ||||
| Adjustments to reconcile net income to net cash | ||||||||
| provided by operating activities: | ||||||||
| Noncontrolling interests | 60 | 471 | ||||||
| Depreciation and amortization | 2,235 | 2,290 | ||||||
| Deferred income taxes | (90 | ) | (116 | ) | ||||
| Equity (earnings) / losses in joint ventures and affiliates | 29 | (23 | ) | |||||
| Loss on sale of fixed assets | 5 | - | ||||||
| Stock based compensation | 17 | 32 | ||||||
| Other non cash charges and credits, net | (17 | ) | 735 | |||||
| Changes in: | ||||||||
| Accounts receivable | 2,489 | (2,999 | ) | |||||
| Inventories | 6,101 | (1,294 | ) | |||||
| Due from bank | 1,022 | (321 | ) | |||||
| Prepaid expenses and other assets | (146 | ) | (1,526 | ) | ||||
| Advances to affiliates | (649 | ) | 287 | |||||
| Accounts payable and accrued expenses | (6,173 | ) | 2,810 | |||||
| Net cash provided by operating activities | 4,975 | 3,079 | ||||||
| INVESTING ACTIVITIES | ||||||||
| Investment in affiliates | (1,600 | ) | (105 | ) | ||||
| Repayment of loan - related party | 10 | 40 | ||||||
| Fixed asset purchases | (553 | ) | (2,321 | ) | ||||
| Proceeds from sale of fixed assets | 3 | - | ||||||
| Net cash used in investing activities | (2,140 | ) | (2,386 | ) | ||||
| FINANCING ACTIVITIES | ||||||||
| Increase / (decrease) in note payable - banks | (5,555 | ) | 1,877 | |||||
| Increase / (decrease) in note payable - related party | (3,660 | ) | 2,949 | |||||
| Decrease in note payable - other | (31 | ) | (31 | ) | ||||
| Increase / (decrease) in revolving credit facility | 4,952 | (2,200 | ) | |||||
| Proceeds from partner contributions in a joint venture | - | 2,000 | ||||||
| Purchase of employee stock options | - | (251 | ) | |||||
| Proceeds from the exercise of common stock options | - | 35 | ||||||
| Purchase of treasury stock | (15 | ) | (1,600 | ) | ||||
| Net cash provided by / (used in) financing activities | (4,309 | ) | 2,779 | |||||
| NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS | (1,474 | ) | 3,472 | |||||
| EFFECT OF EXCHANGE RATE CHANGES ON CASH | - | (547 | ) | |||||
| CASH AND CASH EQUIVALENTS, Beginning of Period | 8,643 | 9,955 | ||||||
| CASH AND CASH EQUIVALENTS, End of Period | $ | 7,169 | $ | 12,880 | ||||