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Previous: GLOBAL SOURCES LTD /BERMUDA, 6-K, 2000-11-15 |
Next: GLOBAL SOURCES LTD /BERMUDA, 6-K, EX-99, 2000-11-15 |
<TABLE>
GLOBAL SOURCES LTD.
CONSOLIDATED BALANCE SHEETS
(In U.S. Dollars Thousands, Except Number of Shares and Per Share Data)
<CAPTION>
|
At December 31 |
At September 30 |
|
|
1999 |
2000 |
|
|
(Unaudited) |
||
|
ASSETS |
||
|
<S> |
<C> |
<C> |
|
Current Assets: |
||
|
Cash and cash equivalents..................................................................................... |
$ 15,433 |
$ 15,544 |
|
Accounts receivable, net........................................................................................ |
7,126 |
7,749 |
|
Receivables from sales representatives................................................................. |
6,172 |
4,958 |
|
Inventory of paper.................................................................................................. |
583 |
752 |
|
Prepaid expenses and other current assets............................................................. |
3,227 |
3,681 |
|
Total Current Assets....................................................................................... |
32,541 |
32,684 |
|
Property and equipment, net...................................................................................... |
9,788 |
17,554 |
|
Intangible assets, net.................................................................................................. |
745 |
466 |
|
Long term investments .............................................................................................. |
- |
13,000 |
|
Bonds held to maturity, at amortized cost ............................................................... |
2,348 |
2,242 |
|
Loan to chief executive officer ................................................................................. |
- |
5,251 |
|
Long term loan ... |
- |
5,984 |
|
Other assets................................................................................................................. |
1,223 |
1,181 |
|
Total Assets...................................................................................................... |
$ 46,645 |
$ 78,362 |
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
||
|
Current Liabilities: |
||
|
Accounts payable................................................................................................... |
$ 3,469 |
$ 3,015 |
|
Deferred income and customer prepayments........................................................ |
15,139 |
16,059 |
|
Accrued liabilities.................................................................................................. |
7,069 |
6,069 |
|
Short-term loan ...................................................................................................... |
- |
9,260 |
|
Income taxes payable............................................................................................. |
314 |
630 |
|
Total Current Liabilities................................................................................ |
25,991 |
35,033 |
|
Liabilities for incentive and bonus plan................................................................. |
3,540 |
2,379 |
|
Amount due to parent company ........................................................................... |
11,404 |
11,404 |
|
Minority interest |
- |
12,139 |
|
Total Liabilities................................................................................................ |
40,935 |
60,955 |
|
Shareholder's equity: |
||
|
Ordinary shares, US$0.01 par value; 50,000,000 shares authorized; |
||
|
26,303,949 (1999: 25,051,380) shares issued and outstanding....................... |
251 |
263 |
|
Additional paid in capital (Note 1) .. Retained earnings...................... |
- 5,459 |
75,011 (49,828) |
|
Less : Unearned compensation (Note 2) . |
- |
(8,039) |
|
Total shareholders' equity............................................................................. |
5,710 |
17,407 |
|
Total liabilities and shareholders' equity..................................................... |
$ 46,645 |
$ 78,362 |
Note : 1. Reflects the non-cash compensation associated with the transfer of shares from the parent company to the chairman and chief executive officer of the Company, employee equity compensation plans and the non-cash listing expenses incurred by The Fairchild Corporation.
2. Reflects the remaining unearned non-cash compensation as at September 30, 2000 associated with the employee equity compensation plans. The Company will recognize non-cash compensation expense over approximately 3 years.
</TABLE>
<TABLE>
GLOBAL SOURCES LTD.
CONSOLIDATED STATEMENTS OF INCOME
<CAPTION>
(In U.S. Dollars Thousands, Except Number of Shares and Per Share Data)
|
Three months ended September 30, |
Nine months ended September 30, |
|||
|
1999 |
2000 |
1999 |
2000 |
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
|
<S> |
<C> |
<C> |
<C> |
<C> |
|
Revenues: |
||||
|
Online marketplace services.................................................. |
$ 6,255 |
$ 15,242 |
$ 17,221 |
$ 40,371 |
|
Transaction software and services............... |
72 |
332 |
489 |
572 |
|
Complementary media services....................................... |
15,443 |
9,951 |
47,279 |
33,712 |
|
Other....................................................................................... |
771 |
1,412 |
1,909 |
3,367 |
|
22,541 |
26,937 |
66,898 |
78,022 |
|
|
Cost of Revenues.................................................................... |
7,817 |
8,799 |
22,305 |
26,997 |
|
Non-cash compensation expense ................... |
- |
529 |
- |
529 |
|
Gross Profit............................................................................ |
14,724 |
17,609 |
44,593 |
50,496 |
|
Operating Expenses: |
||||
|
Circulation ........................................................................... |
3,196 |
3,356 |
9,673 |
9,547 |
|
General and administrative ................................................. |
7,348 |
9,200 |
22,658 |
25,455 |
|
Online services development.............................................. |
638 |
1,538 |
1,758 |
3,561 |
|
Non-cash compensation expense (Note 3) ......................... |
- |
54,746 |
- |
65,079 |
|
Non-cash listing expenses (Note 4).................................... |
- |
- |
- |
1,353 |
|
Amortization of intangibles................................................. |
92 |
92 |
278 |
278 |
|
Total Operating Expenses..................................................... |
11,274 |
68,932 |
34,367 |
105,273 |
|
Income/(Loss) from Operations........................................... |
3,450 |
(51,323) |
10,226 |
(54,777) |
|
Interest expense.................................................................... |
(83) |
(240) |
(252) |
(494) |
|
Interest income..................................................................... |
77 |
233 |
294 |
654 |
|
Foreign exchange gains (losses), net. |
96 |
(85) |
170 |
351 |
|
Income/(Loss) before Income Taxes.................................... |
3,540 |
(51,415) |
10,438 |
(54,266) |
|
Income Tax Provision............................................................ |
(282) |
(338) |
(845) |
(852) |
|
Net Income/(Loss) before minority interest ....................... |
$ 3,258 |
$ (51,753) |
$ 9,593 |
$ (55,118) |
|
Minority interest ...................................................................... |
- |
$ (169) |
- |
$ (169) |
|
Net Income/(Loss) ................................................................. |
$ 3,258 |
$ (51,922) |
$ 9,593 |
$ (55,287) |
|
Retained earnings brought forward ................................... |
$ 9,435 |
$ 5,459 |
||
|
Retained earnings carried forward ..................................... |
$ 19,028 |
$ (49,828) |
||
|
Basic and diluted net income/(loss) per share.................... |
$ 0.13 |
$ (1.97) |
$ 0.38 |
$ (2.14) |
|
Shares used in basic and diluted net income per share calculations (Note 5) ............................................................ |
25,051,380 |
26,303,949 |
25,051,380 |
25,828,521 |
Note : 3. Reflects the non-cash compensation expense associated with the transfer of shares from the parent company to the chairman and chief executive officer of the Company and the employee equity compensation plans.
4. Reflects the non-cash listing expenses incurred by The Fairchild Corporation.
5. The 1999 numbers were restated for the effects of the Share Exchange that occurred on April 14, 2000, similar to a 2,505 to 1 stock split.
</TABLE>
<TABLE>
GLOBAL SOURCES LTD.
CONSOLIDATED STATEMENTS OF INCOME
(In U.S. Dollars Thousands, Except Number of Shares and Per Share Data)
Note : 6. Supplemental Financial Information:
<CAPTION>
|
Three months ended September 30, |
Nine months ended September 30, |
|||
|
1999 |
2000 |
1999 |
2000 |
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
|
<S> |
<C> |
<C> |
<C> |
<C> |
|
Income from Operations excluding non-cash compensation and listing expenses .................... |
$ 3,450 |
$ 3,952 |
$ 10,226 |
$ 12,184 |
|
Net Income excluding non-cash compensation and listing expenses .................. |
$ 3,258 |
$ 3,353 |
$ 9,593 |
$ 11,674 |
|
Basic and diluted net income per share excluding non-cash compensation and listing expense |
$ 0.13 |
$ 0.13 |
$ 0.38 |
$ 0.45 |
</TABLE>
<TABLE>
GLOBAL SOURCES LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In U.S. Dollars Thousands, Except Number of Shares and Per Share Data)
<CAPTION>
|
Nine months ended September 30 |
||
|
1999 |
2000 |
|
|
(Unaudited) |
(Unaudited) |
|
|
<S> |
<C> |
<C> |
|
Cash flows from operating activities: |
||
|
Net income/(Loss) ............................................................ |
$ 9,593 |
$ (55,287) |
|
Adjustments to reconcile net income to net cash provided by (used for) operating activities |
||
|
Depreciation and amortization ................................................ |
1,573 |
2,154 |
|
(Profit)/Loss on sale of property and equipment ...................... |
- |
2 |
|
Accretion of U.S. Treasury strips zero % coupon..................... |
(123) |
(104) |
|
Bad debt expense........................................................................ |
831 |
930 |
|
Expenses allocated by parent company..................................... |
490 |
- |
|
Non-cash compensation expense . |
- |
65,608 |
|
Non-cash listing expenses . |
- |
1,353 |
|
Income attributable to minority shareholder |
- |
169 |
|
12,364 |
14,825 |
|
|
Changes in assets and liabilities: |
||
|
Accounts receivables................................................................. |
255 |
(1,553) |
|
Receivables from sales representatives.................... |
(1,212) |
1,214 |
|
Inventory of paper.............................................................. |
263 |
(169) |
|
Prepaid expenses and other current assets................................. |
954 |
(468) |
|
Loan to chief executive officer ................................................. |
- |
(5,251) |
|
Long term assets......................................................................... |
282 |
42 |
|
Accounts payable....................................................................... |
(2,288) |
(454) |
|
Accrued liabilities and liabilities for incentive and bonus plans......................................................................................... |
(1,592) |
(2,161) |
|
Deferred income and customer prepayments............................ |
925 |
920 |
|
Amount due to parent company............................................ |
(1,680) |
- |
|
Income taxes payable................................................................. |
196 |
316 |
|
Net cash provided by operating activities... |
8,467 |
7,261 |
|
Cash flows from investing activities: |
||
|
Purchase of bonds...................................................................... |
(93) |
- |
|
Purchase of long term investments............................................ |
- |
(13,000) |
|
Purchase of property and equipment......................................... |
(2,599) |
(9,727) |
|
Proceeds from sales of property and equipment....................... |
- |
83 |
|
Proceeds from matured bonds.................................................... |
230 |
210 |
|
Net cash used for investing activities................................ |
(2,462) |
(22,434) |
|
Cash flows from financing activities: |
||
|
Short-term borrowings .............................................................. |
- |
13,260 |
|
Repayment of short-term borrowings ............................................ |
- |
(4,000) |
|
Dividends paid |
(7,438) |
- |
|
Advances from (to) shareholders............................................... |
(69) |
- |
|
Additional capital contributed.................................................... |
- |
24 |
|
Capital contributed by minority shareholder in the joint venture .. |
- |
6,000 |
|
Net cash (used for) generated from financing activities. |
(7,507) |
15,284 |
|
Net (decrease)/increase in cash and cash equivalents........................ |
(1,502) |
111 |
|
Cash and cash equivalents, beginning of the year......................... |
15,713 |
15,433 |
|
Cash and cash equivalents, end of the year............................... |
$ 14,211 |
$ 15,544 |
|
Supplemental cash flow disclosures: |
||
|
Income tax paid.......................................................................... |
$ 649 |
$ 536 |
|
Interest paid..................................................................................... |
252 |
470 |
</TABLE>
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