Global Sources reports fourth quarter and year-end 2012 results
Reported fourth quarter revenue of $66.9 million
Reported full year 2012 revenue of $231.7 million
Posted IFRS EPS of $0.31 and Non-IFRS EPS of $0.37 for the fourth quarter of 2012
Posted full year 2012 IFRS EPS of $0.90 and Non-IFRS EPS of $1.04
Provides guidance for first half of 2013, expects revenue of $87.0 million to $89.0 million and IFRS EPS to range from $0.49 to $0.53
NEW YORK, March 13, 2013 – Global Sources Ltd. (NASDAQ: GSOL) reported financial results for the fourth quarter and year-ended Dec. 31, 2012.
Global Sources' executive chairman, Merle A. Hinrich, said: "Our fourth quarter results were in line with our expectations and completed a solid year in a challenging market environment.
"Our focus remains on helping our buyer and supplier customers develop profitable and successful relationships. We help them find potential business partners through our various media and then meet them at our shows around the world. The attendees at our shows are a key business advantage, as we give all of our advertisers access to a highly qualified, influential and exclusive buyer community.
"Looking ahead, we expect market conditions to continue impacting our core business well into 2013. We are committed to maintaining profitability, and we have a very strong balance sheet with a solid cash position and no debt. With strong products and services, and a large and influential customer base, we are well-positioned to rebound as market conditions improve."
Financial highlights – Fourth quarter: 2012 compared to 2011
Financial highlights – Full year 2012 ended Dec. 31: 2012 compared to 2011
Global Sources' CFO, Connie Lai, said: "The Mumbai show moved to the third quarter of 2012 from the fourth quarter last year, which had a slight impact on this quarter's revenue. Our balance sheet remains strong as we closed the quarter with a cash and securities position of $116.3 million, as compared to $110.8 million at the end of September 2012. Our objective remains to balance cost controls with our investments in future growth.
"We expect the revenue mix for the first half to range between 50% and 51% for online, 36% and 37% for exhibitions, 7% and 8% for print, and approximately 4% for miscellaneous. This compares to a first half of 2012 revenue mix of approximately 58% for online, 31% for exhibitions, 8% for print, and 3% for miscellaneous."Financial expectations for the first half of 2013 under IFRS
Recent Corporate Highlights
Conference call for Global Sources fourth quarter 2012 earnings
Executive Chairman Merle A. Hinrich and CFO Connie Lai are scheduled to conduct a conference call at 8:00 a.m. ET on March 13, 2013 (8:00 p.m. on March 13, 2013 in Hong Kong) to review these results in more detail. Investors in the United States may participate in the call by dialing (877) 941-1427, and non-Hong Kong international participants may dial (1-480) 629-9664. Investors in Hong Kong may participate by dialing (852) 3009-5027. The conference ID is 4593683 and participants are encouraged to dial 10 minutes prior to the call to prevent a delay in joining. A live webcast of the conference call is scheduled to be available on Global Sources' corporate site at http://www.investor.globalsources.com.
For those who cannot listen to the live broadcast, a webcast replay of the call is scheduled to be available on the company's corporate site for 30 days. A telephone replay of the call is also scheduled to be available through March 21, 2013. To listen to the telephone replay dial (800) 406-7325 or dial (1-303) 590-3030 outside the United States, and enter pass code 4593683. For those in the Hong Kong area, the replay dial-in number is (852) 3056-2777, and the pass code is 4593683.
Global Sources' non-IFRS metrics
Management believes non-IFRS metrics are useful measures of operations and provides IFRS to non-IFRS reconciliation tables at the end of this press release. Global Sources defines non-IFRS net income as net income excluding non-cash, SBC expense or credit, amortization of intangibles as it relates to certain equity compensation plans, gains or losses on acquisitions and investments net of transaction costs and related tax expenses, and/or impairment charges, for all historical and future references to non-IFRS metrics. Non-IFRS EPS is defined as non-IFRS net income divided by the weighted average of diluted common shares outstanding. Adjusted EBITDA is defined as earnings before interest, taxes, depreciation, amortization, stock-based compensation and impairment of goodwill and intangible assets.
Safe Harbor Statement
This news release contains forward-looking statements within the meaning of Section 27-A of the Securities Act of 1933, as amended and Section 21-E of the Securities Exchange Act of 1934, as amended. The company's actual results could differ materially from those set forth in the forward-looking statements as a result of the risks associated with the company's business, changes in general economic conditions, and changes in the assumptions used in making such forward-looking statements.
Download consolidated balance sheets, consolidated income statements, actual IFRS to non-IFRS reconciliation, adjusted EBITDA reconciliation, guidance IFRS to non-IFRS reconciliation and financial matrix