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FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 12a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the Quarter Ending March 31, 1998
Commission File Number: 0-2918
ARAMEX INTERNATIONAL LIMITED
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(Exact Name of Registrant as specified in its Charter)
Not Applicable
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(Translation of Registrant's Name into English)
2 Badr Shaker Alsayyab Street
Um Uthayna, Amman, Jordan
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(Address and principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F.
Form 20-F X Form 40-F
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Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
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If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b).
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<PAGE>
Table of Contents
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Page
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Part I. Financial Information:
Item 1. Condensed Financial Statements:
Condensed Consolidated Balance Sheets at March 31, 1998 unaudited
and December 31, 1997....................................................................... 1
Unaudited Condensed Consolidated Statements of Operations for the three month periods
ended March 31, 1998 and March 31, 1997..................................................... 2
Unaudited Condensed Consolidated Statements of Cash Flows for the three month periods
ended March 31, 1998 and March 31, 1997..................................................... 3
Notes to Financial Statements................................................................. 4
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operation:
Three month period ended March 31, 1998 versus the three month period ended March 31, 1997.... 8
Part II. Other Information:
Item 6. Exhibits......................................................................................10
Signatures........................................................................................................13
</TABLE>
<PAGE>
Part I
Financial Information:
Item 1. Financial Statements:
ARAMEX INTERNATIONAL LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
AT MARCH 31, 1998 (UNAUDITED) AND DECEMBER 31, 1997
(IN THOUSANDS OF U.S. DOLLARS)
<TABLE>
<CAPTION>
March 31, 1998 December 31, 1997
----------------- -----------------
(unaudited)
<S> <C> <C>
ASSETS
Current assets
Cash and cash equivalents $ 6,671 $ 6,627
Receivables 17,252 15,592
Deferred income taxes 54 54
Other current assets 2,793 2,438
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Total current assets 26,770 24,711
Fixed Assets
Property, plant and equipment 5,028 5,012
Investments in affiliates 40 40
Other assets 1,020 941
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Total Assets 32,858 30,704
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Due to banks 510 587
Current portion of long-term debt 306 352
Trade payables 6,992 6,305
Other current liabilities 4,471 3,871
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Total current liabilities 12,279 11,115
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Long term debt 456 456
Deferred income taxes 52 52
Other liabilities 1,428 1,337
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Minority interests in subsidiaries 1,092 985
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Shareholders' Equity
Share capital 44 44
Additional paid in capital 7,263 7,263
Cumulative translation adjustment 6 (5)
Retained earnings 10,238 9,457
Total Shareholders' Equity 17,551 16,759
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Total Liabilities and Shareholders' Equity $32,858 $30,704
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</TABLE>
The accompanying notes are an integral part
of these consolidated financial statements.
1
<PAGE>
ARAMEX INTERNATIONAL LIMITED AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE MONTH PERIODS
ENDED MARCH 31, 1998 AND MARCH 31, 1997
(IN THOUSANDS OF U.S. DOLLARS, EXCEPT FOR SHARE
AND PER SHARE DATA)
Three month periods
ending March 31,
-------------------
1998 1997
---- ----
Revenues $ 18,422 $ 14,597
Shipping costs 10,026 8,000
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Gross Profit 8,396 6,597
Operating expenses 2,905 2,681
Selling, general and administrative expenses 4,747 3,273
Operating Income 744 643
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Other income (expenses):
Interest Income 80 83
Interest expense (16) (17)
Loss on sale of assets (3) (7)
Exchange loss (3) (2)
Other income 3 3
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Income before income taxes 805 703
Provision for income taxes 37 44
Minority interests (13) 24
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Net income $ 781 $ 635
========= =========
Basic earnings per share $ 0.18 $ 0.15
========= =========
Diluted earnings per share $ 0.17 $ 0.15
========= =========
Weighted average number shares outstanding -
basic 4,429,688 4,296,355
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Weighted average number of shares outstanding -
diluted 4,611,322 4,350,765
========= =========
The accompanying notes are an integral part
of these consolidated financial statements.
2
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ARAMEX INTERNATIONAL LIMITED AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTH PERIODS ENDED
MARCH 31, 1998 AND MARCH 31, 1997
(IN THOUSANDS OF U.S. DOLLARS)
<TABLE>
<CAPTION>
Three month periods ending
March 31,
--------------------------
1998 1997
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<S> <C> <C>
Cash Flows From Operating Activities
Income before income tax $ 805 $ 703
Adjustment to reconcile income before tax to net cash
from operating activities:
Depreciation 313 174
Loss on sale of property, plant and equipment 3 7
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1,121 884
Increase in receivables (1,660) (1,626)
Increase in other current assets (354) (239)
Increase in trade payables 687 810
Increase in other liabilities 91 14
Increase in other current liabilities 599 652
Other (40) -
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Cash generated from operations 444 495
Income taxes paid (29) (160)
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Net cash from operating activities 415 335
Cash Flows from Investing Activities
Purchase of property, plant and equipment (299) (284)
Proceeds from sale of property, plant and equipment 10 16
Increase in other assets (79) 102
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Net cash used in investing activities (368) (166)
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Cash Flows from Financing Activities
Due to banks, net (77) (211)
Short term loan - 266
Repayment of long term debt (46) (32)
Payments from minority interests 120 -
Proceeds from issuance of share capital - 5,170
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Net cash (used in) from financing activities $ (3) $ 5,193
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Net increase in cash and cash equivalents $ 44 $ 5,362
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Cash on hand and at banks, at beginning of period $ 6,627 $ 2,335
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Cash and cash equivalents, end of period $ 6,671 $ 7,697
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</TABLE>
The accompanying notes are an integral part
of these consolidated financial statements.
3
<PAGE>
NOTE 1. BUSINESS AND ORGANIZATION
Aramex International Limited, (the "Company") was incorporated under the laws of
Bermuda on October 31, 1996 to be the successor to Aramex International Limited,
a Hong Kong company which was incorporated in February 1986 ("Aramex Hong
Kong").
On December 13, 1996, the Company subscribed for 100 shares of Aramex Hong Kong
(the "Ordinary Shares") and each share of Aramex Hong Kong outstanding prior to
such subscription was converted by a special resolution of the shareholders of
Aramex Hong Kong into non-voting deferred shares (the "Deferred Shares")
(collectively, the "Reorganization"). The Deferred Shares do not carry voting
rights (other than in respect of resolutions affecting their class rights) and
are effectively subordinated to the Ordinary Shares (all of which are held by
the Company) in respect of all dividends, distributions and liquidation rights
until such time as the holders of Ordinary Shares have received $100 billion.
Accordingly, no value has been assigned to the Deferred Shares. Pursuant to the
Reorganization, the Company became the parent holding company of Aramex Hong
Kong. The existing shareholders of Aramex Hong Kong retain a nominal interest in
Aramex Hong Kong through their ownership of the Deferred Shares. Aramex Hong
Kong transferred its properties, assets and other claims, rights and interests
which were directly or indirectly, owned, licensed or used by it to the Company.
Aramex has an authorized share capital of 15,000,000 shares of common stock,
with a par value $0.01 per share. At March 31, 1998, the Company had 4,429,688
shares of common stock issued and outstanding. The Company is also authorized to
issue 5,000,000 shares of preferred stock, a par value of $0.01 per share, none
of which has been issued or is outstanding.
From its main stations (hubs) in Dubai, London and New York, the Company
provides multi-modal services in international and domestic express delivery,
freight forwarding, logistics and special services primarily to, from and within
destinations in the Middle East and the Indian Sub-Continent. The Company's
operations are controlled through a regional office which was registered in
Jordan on March 15, 1988 under the name of Aramex International Limited (the
"Regional Office") pursuant to the foreign companies law No. (58) of 1985. The
operations of the Regional Office are facilitated by the hubs of the Company's
network.
Effective January 1, 1996, the Company formally inaugurated its direct marketing
and mail order catalog service at certain stations in the Middle East. The
service, called Middle East Direct ("MED"), provides assistance to customers in
selecting, ordering and delivering merchandise through catalogs of retail
companies based principally in the United States and Western Europe.
On January 13, 1997, the Company completed an initial public offering of
1,000,000 shares of common stock on the Nasdaq National Market at a price of
$7.00 per share. The net proceeds of the issue received by the Company, (after
deducting underwriting discounts, commissions and other costs associated with
the offering), were approximately $5,048 (in thousands of U.S. Dollars).
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
a) Basis of presentation
The accompanying unaudited financial statements have been prepared in
accordance with International Accounting Standards (IAS). For purposes of
these financial statements, there are no significant differences between
the Company's accounting principles utilized and the accounting principles
for interim financial information generally accepted in the United States.
Accordingly, these financial statements do not include all of the
information and footnotes required by United States generally accepted
accounting principles for complete financial statements. In the opinion of
management, all adjustments (consisting of normal recurring accruals)
considered necessary for fair presentation have been included. Operating
results for the three month period ended March 31, 1998 are not
necessarily indicative of the results that may be expected for the year
ending December 31, 1998.
4
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b) Principles of consolidation
The consolidated financial statements include the accounts of the Company
and all of its subsidiaries that are controlled directly and indirectly
through agreements that provide the Company with authority to govern the
financial and operating affairs of the subsidiaries. All significant
intercompany accounts and transactions have been eliminated.
c) Use of estimates
The preparation of financial statements in accordance with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosures of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual amounts could differ from those
estimates.
d) Concentration of risk in geographic area
The Company derived approximately 81% of its revenues from operations in
the Middle East for the three month period ended March 31, 1998. The risk
of doing business in this region could adversely affect the Company, as
the region has been subject to many destabilizing political and economic
factors over the years.
e) Revenue recognition
Revenues are recognized when shipments are completed. For "door-to-door"
shipments, revenues are recognized upon delivery of freight at the
destination. For other shipments, revenues are recognized upon delivery of
freight to the air carrier, at which time, the revenue process is
completed. Certain customers pay in advance giving rise to deferred
revenue.
f) Translation of the financial statements of foreign stations
The Company's functional currency is the United States Dollar. The
financial statements of foreign subsidiaries where the local currency is
the functional currency (substantially all stations) are translated into
U.S Dollars using exchange rates in effect at period end for assets and
liabilities and average exchange rates during each reporting period for
results of operations. Adjustments resulting from translation of financial
statements are reflected as a separate component of shareholders' equity.
5
<PAGE>
Exchange gains and losses resulting from transactions of the Company and
its subsidiaries which are made in currencies different from their own are
included in income as they occur.
g) Property, plant and equipment
Property, plant and equipment are recorded at cost and are depreciated
over their estimated useful lives using primarily the straight-line
method.
The estimated useful lives of these assets are:
Furniture and fixtures 7 years
Office equipment 7 years
Computers 5 years
Vehicles 5 years
Assets held under capital leases are depreciated over the shorter of the
lease terms and the useful lives of the assets.
h) Income taxes
The Company provides income taxes in accordance with IAS 12. As an
offshore company incorporated in Bermuda, profits from operations of
foreign subsidiaries are not subject to Bermudan taxes. For certain
operations in the Middle East, the Company is exempt from income taxes.
For other operations, deferred income taxes have been provided, using the
liability method under IAS 12, for the difference between the book and tax
bases of assets and liabilities.
Deferred income taxes have not been provided on the undistributed earnings
of subsidiaries operating outside of Bermuda, as such earnings are
expected to be indefinitely reinvested or, if distributed, are expected to
be distributed tax free.
i) Employee termination indemnities
Certain of the Company's subsidiaries are required, by the labor law of
each related country, to provide indemnity payments upon termination of
relationship with their employees. The benefit accrues to employees on a
pro-rata basis during their employment period and is based on each
employee's current salary. Other liabilities in the accompanying
consolidated financial statements reflect the maximum amounts of the
indemnities as of the balance sheet date of $1,296,842 at March 31, 1998.
NOTE 3. SUBSEQUENT EVENT
On May 11, 1998, the Company completed a public offering of 1,000,000 shares of
common stock on the Nasdaq National Market at a price of $13.125 per share (the
"Offering"), of which 500,000 shares were offered by the Company and 500,000
shares were offered by certain Selling Shareholders. The net proceeds of the
issue received by the Company (after deducting underwriting discounts,
commissions and other costs associated with the offering) were approximately
$5,768 (in thousands of U.S. Dollars).
6
<PAGE>
The Company presently anticipates utilizing the net proceeds from the Offering
to expand its warehouse facilities in Amman and Dubai, invest in and deploy
additional technologies and information systems to support its growth, and the
remainder for working capital and general corporate purposes.
NOTE 4. REVENUE FROM SERVICES
(In thousands of U.S. Dollars)
Three month periods ended
March 31,
-------------------------
1998 1997
------ ------
International Express $ 9,900 $ 8,118
Freight Forwarding 6,357 4,576
Domestic Express 1,144 794
MED 468 343
Other* 552 767
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Total Revenues from Services $18,423 $14,598
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- -----------
* Amounts represent revenues from other special services which the Company
renders including airline ticketing and travel, remail and visa services.
All related costs are reflected in shipping costs.
NOTE 5. COST OF SERVICES
Three month periods ended
March 31,
-------------------------
1998 1997
------ ------
Outbound Cost of Services-Express $ 3,765 $3,286
Inbound Cost of Services-Express 458 325
Freight Forwarding Cost of Services 4,947 3,510
MED Cost of Services 352 229
Domestic Cost of Services 181 147
Other Costs of Services 323 503
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Total Cost of Services $10,026 $8,000
======= ======
7
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operation:
Comparison of Three Month Period Ended March 31, 1998 to Ended March 31, 1997
Revenues. Consolidated revenues of the Company increased by $3.8
million, or 26.2%, to 18.4 million for the three month period ended March 31,
1998 ("1998") from $14.6 million for the three month period ended March 31, 1997
("1997").
International express revenues increased by $1.8 million, or 22.0%, to
$9.9 million for 1998 from $8.1 million in 1997, primarily as a result of
additional revenues generated by the Company's expansion of its operations in
Saudi Arabia and the Arabian Gulf. Specifically, express revenue growth was
driven largely by increased growth in the Company's retail express business of
approximately 29.4%, primarily attributable to a 154% and 25% increase in retail
express business generated by the Company's stations in Saudi Arabia and Dubai,
respectively.
Freight forwarding revenues increased by $1.8 million, or 39.0% to $6.4
million for 1998 from $4.6 million for 1997, primarily as a result of increased
revenue growth in the Company's operations in Saudi Arabia and the UAE.
Management believes this growth is the direct result of the Company's focus on,
and investment in, training its employees to sell freight forwarding service at
most of its stations.
Domestic express revenues increased by $0.35 million, or 44.1%, to $1.1
million for 1998 from $0.8 million for 1997 primarily as a result of the
continued growth in the Company's activities in Saudi Arabia and the UAE.
MED revenues increased by $0.12 million, or 36.8%, to $0.47 million for
1998 from $0.34 million for 1997 primarily as a result of growth in the Jordan
and Lebanese operations.
Other revenues decreased by $0.22 million, or 28.0%, to $0.55 million
for 1998 from $0.77 million for 1997.
Shipping Costs. Shipping costs increased by $2.0 million, or 25.3%, to
$10.0 million for 1998 from $8.0 million for 1997, primarily as a result of the
increased volume in the number of 1998 shipments. As a percentage of total
revenues, however, shipping costs remained stable at approximately 54.4% During
1998, the Company experienced lower shipping costs as a percentage of
international express and freight forwarding revenues, respectively, offset by
increased shipping costs as a percentage of MED and domestic express revenues,
respectively.
Gross Profit. As a result of the above factors, gross profit increased
by $1.8 million, or 27.3%, to $8.4 million in 1998 from $6.6 million in 1997.
Gross margin remained stable at approximately 45.6% of total revenues for each
of 1998 and 1997.
8
<PAGE>
Operating Expenses. Operating expenses increased by $0.22 million, or
8.4%, to $2.9 million for 1998 from $2.7 million for 1997, primarily as a result
of the addition of employees involved in the Company's Saudi Arabian operations.
As a percentage of total revenues, however, operating expenses decreased to
15.77% of 1998 total revenues from 18.37% of 1997 total revenues.
Selling, General and Administrative Expenses. Selling, general and
administrative expenses increased by $1.5 million, or 45.1% to $4.7 million for
1998 from $3.3 million for 1997. As percentage of total revenues, selling
general and administrative expenses increased to 25.8% of 1998 total revenues
from 22.4% of 1997 total revenues. This increase resulted primarily form
additional expenditures during 1998 related to addition of executive, marketing
and sales employees associated with the Company's expansion in Saudi Arabia, the
Palestinian Territories, Jordan and Dubai.
Operating Income. As a result of the above factors, operating income
increased by $0.1 million, or 15.7%, to $0.74 million in 1998 from $0.64 million
in 1997. As a percentage of total revenues, operating income decreased slightly
to 4.04% of total 1998 revenues from 4.4% of total 1997 revenues.
Other Income. Other income remained stable at $0.03 million, primarily
as a result of interest income from the proceeds of the Company's 1997 initial
public offering.
Net Income. Net income increased by $0.15 million, or 23.0% to $0.78
million for 1998 from $0.64 million for 1997.
Forward Looking Statements. The statements contained in this quarterly
report, including, but not limited to, those relating to the future availability
of express and cargo space; the Company's overseas presence and plans for
international air freight forwarding services and agreements for international
cargo; the future expansion and results of the Company's station network and
warehouse facilities; plans for local delivery services and truck brokerage;
future improvements in the Company's information systems and logistics systems
and services; future marketing results; construction of new facilities; the
effect of litigation; future costs of transportation; future operating expenses;
future margins; any seasonality of the Company's business; future stock
issuances; future dividend plans; future acquisitions, and any effects,
benefits, results, terms or other aspects of acquisitions; retention of
employees or management; availability of facilities; use of offering proceeds;
ability to continue growth and implement growth and business strategy; the
ability of expected sources of liquidity to support working capital and capital
expenditure requirement; and any other statements regarding future growth,
future cash needs, future terminals, future operations, business plans and
future financial results; and any other statements which are not historical
facts are forward-looking statements. When used in this document, the words
"anticipate," "estimate," "expect," "may," "plans," "project," "potential," and
similar expressions are intended to be among the statements that identify
forward-looking statements. Such statements involve risks and uncertainties,
including but not limited to, those relating to the Company's dependence on its
ability to attract and retain skilled managers and other personnel; the intense
competition within the express, freight and logistics industry; continued demand
for and competition in the MED business; the uncertainty of the Company's
ability to manage and continue its growth and implement its business strategy in
each segment of its business; the Company's dependence on the availability of
express and cargo space to serve its customers; effects of regulation; results
of litigation; the Company's vulnerability to instability in the geographic
regions in which it operates and general economic conditions and dependence on
its principal customers; the control by the Company's principal shareholders;
the Company's potential exposure to claims involving its local pick-up and
delivery operations; the Company's future financial and operating results, cash
needs and demand for its services; failure of information systems, including as
a result of Year 2000 problems; and the Company's ability to maintain and comply
with customs regulations and other permits and licenses; as well as other
factors detailed in the Company's other filings with the Securities and Exchange
Commission. Should one or more of these risks or uncertainties materialize, or
should underlying assumptions prove incorrect, actual outcomes may vary
materially from those indicated.
9
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Part II
Other Information:
Item 6. Exhibits
a) Exhibits
Exhibit 99.1 Press Release announcing results for the three month periods
ended March 31, 1998.
10
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
ARAMEX INTERNATIONAL LIMITED
Date: May 14, 1998 By: /s/ William S. Kingson
----------------------
William S. Kingson
Chairman of the Board
11
Exhibit 99.1
ARAMEX ANNOUNCES BASIC EARNINGS PER SHARE OF $0.18 AND DILUTED EARNINGS PER
SHARE OF $0.17 FOR THE FIRST QUARTER
May 14, 1998, Amman, Jordan -- Aramex International Limited ("Aramex") (Nasdaq
NM symbol: ARMXF), the international express and freight forwarding company
specializing in the Middle East & Indian Sub-Continent regions announced
unaudited results for its first quarter ending March 31, 1998 of net income of
US $0.781 million, or basic earnings per share of $0.18, diluted earnings per
share of $0.17, on revenues of US $18.4 million.
The Company's revenues increased approximately 26% to US$18.4 million in the
first quarter of 1998 from $14.6 million in the same period of 1997. Net income
increased approximately 23% to $0.781 million in 1998 from $0.635 million in the
same period of 1997. Basic earnings per share increased by 20% to $0.18 per
share in the first quarter of 1998 from $0.15 per share in same period of 1997
and diluted earnings increased to $0.17 per share. Aramex's express revenue
increased approximately 22% to $9.9 million in the first quarter of 1998 from
$8.1 million in the same period in 1997. For the period in question, retail
express revenues increased approximately 29% and wholesale express revenues
increased approximately 13% from the prior comparable period. Aramex's freight
forwarding revenue increased approximately 39% to $6.4 million in the first
quarter of 1998, from $4.6 million in the same period of 1997. Revenues from the
Company's Middle East Direct ("MED") mail order catalog service increased
approximately 37% to $0.5 million for the first quarter of 1998. Domestic
revenues increased approximately 44% to $1.1 million in the first quarter of
1998. Other revenues were $0.55 million in the first quarter of 1998.
"We are very encouraged by these results," commented Fadi Ghandour, President
and Chief Executive Officer of the Company. "Being on target for the first
quarter of 1998 was critical for the Company, especially since the major Middle
Eastern holidays fell in this quarter. All three main products in express and
freight forwarding showed good growth. Most of our stations are on target in
terms of their revenues and net income, this is an encouraging sign for 1998 in
general," Mr. Ghandour added.
The Company will host a conference call on Tuesday, May 19, 1998 at 10:00 a.m.
E.D.T. to discuss its first quarter results. Interested parties in the United
States are encouraged to call 1-800-275-2442, password "Aramex," in order to
participate in such call. Interested parties outside of the United States are
encouraged to call 1-973-633-8200, password "Aramex," to participate in such
call.
Aramex is a leading provider of express package delivery, freight forwarding and
other transportation and logistics services primarily to, from and within the
Middle East and the Indian subcontinent. The Company currently operates 95
offices and facilities in 32 countries. Aramex holds a majority interest in a
direct marketing and mail order catalog service located in the Middle East.
Certain of statements contained in this press release may be deemed forward
looking statements. Such statements, and other matters addressed in this press
release, involve a number of risks and uncertainties. Among the factors that
could cause actual plans to differ materially from these statements and other
matters are the risks and other factors detailed, from time to time, in the
Company's reports with the U.S. Securities and Exchange Commission.
For further information please contact: Fadi Ghandour, 011-962-6-5538761, or
fax, 011-962-6-5537451; or William Kingson, (212) 752-5660, or fax, (212)
308-3938, both of Aramex International Limited.
<PAGE>
ARAMEX INTERNATIONAL LIMITED AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE MONTH PERIODS
ENDED MARCH 31, 1998 AND MARCH 31, 1997
(IN THOUSANDS OF U.S. DOLLARS, EXCEPT FOR SHARE
AND PER SHARE AND PER SHARE DATA)
Three month periods
ending March 31,
-------------------
1998 1997
---- ----
Revenues $ 18,422 $ 14,597
Shipping costs 10,026 8,000
--------- ---------
Gross Profit 8,396 6,597
Operating expenses 2,905 2,681
Selling, general and administrative expenses 4,747 3,273
Operating Income 744 643
--------- ---------
Other income (expenses):
Interest Income 80 83
Interest expense (16) (17)
Loss on sale of assets (3) (7)
Exchange loss (3) (2)
Other income 3 3
--------- ---------
Income before income taxes 805 703
Provision for income taxes 37 44
Minority interests (13) 24
--------- ---------
Net income $ 781 $ 635
========= =========
Basic earnings per share $ 0.18 $ 0.15
========= =========
Diluted earnings per share $ 0.17 $ 0.15
========= =========
Weighted average number shares outstanding -
basic 4,429,688 4,296,355
========= =========
Weighted average number of shares outstanding -
diluted 4,611,322 4,350,765
========= =========
