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General Bearing Corporation Releases Audited 2009 Condensed Consolidated Financial Statements

WEST NYACK, N.Y.--General Bearing Corporation (OTC: GNRL.PK) announced today that the Company has released the attached audited 2009 condensed consolidated financial statements. The aforementioned 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)

         
January 2, January 3,
2010

2009

ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 7,894 $ 8,643
Due from bank - 4,338
Accounts receivable, net of allowance for doubtful
accounts of $1,010 in 2009 and $999 in 2008 27,171 23,125
Inventories 32,645 44,126
Prepaid taxes and taxes recoverable 2,738 1,340
Prepaid expenses and other current assets 3,133 2,878
Deferred income taxes   1,299     1,399  
Total current assets 74,880 85,849
PROPERTY, PLANT AND EQUIPMENT 38,173 40,526
INVESTMENT IN JOINT VENTURES AND AFFILIATES 3,514 1,837
LOAN RECEIVABLE - OFFICER 1,320 1,320
DEFERRED INCOME TAXES 677 354
OTHER ASSETS   740     214  
Total Assets $ 119,304   $ 130,100  
 
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Notes payable - banks $ 19,034 $ 28,636
Notes payable - related party 3,294 5,125
Accounts payable - trade 13,552 14,263
Accounts payable - affiliate 1,308 1,321
Accrued expenses and other current liabilities 4,737 6,203
Current portion of long-term debt   -     36  
Total current liabilities 41,925 55,584
LONG-TERM DEBT 4,392 3,660
OTHER LIABILITIES 166 187
DEFERRED INCOME TAXES   48     144  
Total liabilities   46,531     59,575  
 
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Common shares - par value $.01 per share; 5,000,000 shares authorized;
4,174,450 issued and outstanding in 2009 and 2008 42 42
Paid-in capital 38,411 38,423
Accumulated other comprehensive income 3,163 3,163
Treasury stock, at cost; 542,817 and 561,817 shares (4,981 ) (5,159 )
Retained Earnings   14,257     12,828  
Total General Bearing Corporation stockholders' equity 50,892 49,297
NONCONTROLLING INTERESTS   21,881     21,228  
Total stockholders' equity   72,773     70,525  
Total Liabilities and Stockholders' Equity $ 119,304   $ 130,100  
 
 

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(In Thousands, except for shares and per share data)

         
Years Ended
January 2, January 3,
2010

2009

 
SALES $ 102,354 $ 139,037
COST OF SALES   84,108   108,092
GROSS PROFIT 18,246 30,945
 
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES   15,245   20,672
OPERATING INCOME 3,001 10,273
 
OTHER EXPENSES, NET   814   3,095
 
INCOME FROM OPERATIONS BEFORE INCOME TAXES 2,187 7,178
 
INCOME TAXES   104   918
 
NET INCOME 2,083 6,260
 
Less: Net income attributable to the noncontrolling interests   654   403
 
NET INCOME ATTRIBUTABLE TO GENERAL BEARING CORPORATION $ 1,429 $ 5,857
 
Other Comprehensive Income
Net Income $ 2,083 $ 6,260
Foreign exchange translation   -   2,540
Total comprehensive income 2,083 8,800
 
Comprehensive income attributable to the noncontrolling interests   654   1,618
 
Comprehensive income attributable to General Bearing Corporation $ 1,429 $ 7,182
 
Net income per common share:
Basic $ 0.39 $ 1.60
Diluted $ 0.39 $ 1.56
Weighted average number of common shares
Basic 3,630,985 3,664,028
Diluted 3,694,030 3,758,820
 
                             

GENERAL BEARING CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

Years Ended January 2, 2010 and January 3, 2009

(In Thousands, except for shares)

 
Accumulated
Other
Common Shares Paid-In Comprehensive Treasury Stock Retained
Shares   Amt.     Capital     Income     Shares   Amt.     Earnings     Total
 
Balance, December 29, 2007 4,174,450 $ 42 $ 39,754 $ 1,838 450,828 $ (3,273 ) $ 8,430 $ 46,791
Shares issued as compensation - - 73 - (21,000 ) 152 - 225
Purchase of stock options - - (1,403 ) - - - - (1,403 )
Options issued as compensation - - 68 - - - - 68
Options exercised - - (69 ) - (12,000 ) 104 - 35
Treasury shares, at cost - - - - 143,989 (2,142 ) - (2,142 )
Foreign exchange translation - - - 1,325 - - - 1,325
Dividends paid to shareholders - - - - - - (1,459 ) (1,459 )
Net income -   -   -     - -     -     5,857     5,857  
Balance, January 3, 2009 4,174,450 $ 42 $ 38,423 $ 3,163 561,817 $ (5,159 ) $ 12,828 $ 49,297
 
Shares issued as cash compensation - - (36 ) - (21,000 ) 193 - 157
Options issued as compensation - - 24 - - - - 24
Treasury shares, at cost - - - - 2,000 (15 ) - (15 )
Net income -   -   -     - -     -     1,429     1,429  
Balance, January 2, 2010 4,174,450 $ 42 $ 38,411   $ 3,163 542,817   $ (4,981 ) $ 14,257   $ 50,892  
 
 

GENERAL BEARING CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands)

         
Years Ended
January 2, 2010 January 3, 2009
 
OPERATING ACTIVITIES
Net income $ 1,429 $ 5,857
Adjustments to reconcile net income to net cash
provided by operating activities:
Noncontrolling interests 654 403
Depreciation and amortization 4,855 5,047
Deferred income taxes (320 ) (476 )
Equity earnings in joint ventures and affiliates (76 ) (161 )
Loss on disposal of property, plant and equipment 197 92
Stock based compensation 24 68
Other non - cash charges and credits, net (24 ) 158
Changes in:
Accounts receivable (4,046 ) 2,504
Inventories 11,482 (7,163 )
Due from bank 4,338 (2,833 )
Prepaid expenses and other assets (2,310 ) 1,208
Advances to affiliates (13 ) 336
Accounts payable and accrued expenses   (2,020 )   212  
Net cash provided by operating activities   14,170     5,252  
 
INVESTING ACTIVITIES
Investment in affiliates (1,600 ) (105 )
Fixed asset purchases (2,612 ) (5,055 )
Repayment of loan - related party 30 70
Proceeds from sale of fixed assets   14     55  
Net cash used in investing activities   (4,168 )   (5,035 )
 
FINANCING ACTIVITIES
Increase / (decrease) in note payable - banks (9,602 ) 6,256
Decrease in note payable - other (36 ) (62 )
Decrease in notes payable - related party (1,098 ) (2,843 )
Net repayment of revolving credit facility - (2,200 )
Dividends paid to stockholders - (1,459 )
Proceeds from partner contributions in a joint venture - 2,750
Proceeds from the exercise of common stock options - 35
Purchase of treasury stock (15 ) (2,142 )
Purchase of employee stock options   -     (1,403 )
Net cash used in financing activities   (10,751 )   (1,068 )
 
NET DECREASE IN CASH AND CASH EQUIVALENTS (749 ) (851 )
EFFECT OF EXCHANGE RATE CHANGES ON CASH - (461 )
CASH AND CASH EQUIVALENTS, Beginning of Year   8,643     9,955  
CASH AND CASH EQUIVALENTS, End of Year $ 7,894   $ 8,643  
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