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Multi Ways Holdings Reports Robust Financial Performance in Fiscal Year 2023 Results

Globe Newswire 16-May-2024 7:00 AM

SINGAPORE, May 16, 2024 (GLOBE NEWSWIRE) -- Multi Ways Holdings Limited ("Multi Ways" or the "Company") (NYSE:MWG), a leading supplier of a wide range of heavy construction equipment for sales and rental in Singapore and the surrounding region, today announced fiscal year 2023 financial results.

"We are pleased to report on the strategic advancements Multi Ways Holdings Limited has achieved since our IPO a year ago," said Mr. James Lim, Chairman and Chief Executive Officer of Multi Ways Holdings Limited. "Our recent acquisition of cutting-edge SANY equipment and the formation of strategic partnerships underscore our commitment to delivering superior solutions to our customers across the region. With over two decades of industry experience, we have established ourselves as a reliable and trusted provider of heavy construction equipment."

"Despite a decrease in revenue, our focus on cost management and fleet optimization has resulted in improved net income and a strengthened financial position. The significant enhancement in our cash flows and working capital demonstrates our resilience and adaptability."

"Looking ahead, we are committed to maintaining our role as a comprehensive provider for heavy construction equipment needs. Our ongoing fleet renewal and expansion initiatives are designed to meet the evolving requirements of our clients, ensuring they have access to the most advanced and dependable machinery available. We remain focused on delivering exceptional value to our shareholders, customers, and the broader community, positioning Multi Ways for continued success in the competitive landscape," concluded Mr. Lim.

Fiscal Year 2023 Financial Highlights

  • Our total revenue decreased by approximately $2.3 million or approximately 6.1% to approximately $36.0 million for the year ended December 31, 2023 from approximately $38.4 million for the year ended December 31, 2022. The decrease was mainly attributable to the decrease demand in our equipment sales of approximately $7.5 million because of decrease in overseas demand.

  • Our cost of revenues decreased by approximately $1.3 million or approximately 4.4% to approximately $27.4 million for the financial year ended December 31, 2023 from approximately $28.6 million for the financial year ended December 31, 2022. Such decrease was mainly attributable to the decrease cost of revenues for the demand in our equipment sales of approximately $1.5 million and offset the increase in Services of approximately $0.3 million in 2023.

  • Our total gross profit amounted to $8.7 million and $9.7 million for fiscal years ended December 31, 2023 and 2022, respectively. Our overall gross profit margins were approximately 24.0% and approximately 25.4% for fiscal years ended December 31, 2023 and 2022, respectively. Our total gross profit decrease was generally due to the lower profit margin through diversified purchasing networks from across various countries.

  • Selling and distribution expenses mainly included promotion and marketing expenses and transportation expenses for inbound and outbound shipments. Our selling and distribution expenses were approximately $1.0 million and approximately $1.5 million for the fiscal years ended December 31, 2023 and 2022, respectively, representing approximately 2.6% and approximately 3.9% of our total revenue for the corresponding years.

  • Administrative expenses were approximately $10.8 million and approximately $6.7 million for the years ended December 31, 2023 and 2022, respectively, representing approximately 29.9% and approximately 17.6% of our total revenue for the corresponding financial years.

    • Staff costs mainly represented the salaries, employee benefits and retirement benefit costs to our employees, directors' remuneration and directors' fees. Our staff costs were $4.8 million and $3.9 million for the fiscal years ended December 31, 2023 and 2022, respectively.

  • Net income amounted to $1.8 million and approximately $1.0 million for the fiscal years ended December 31, 2023 and 2022, respectively.

Cash Flows Summary

  • Cash and cash equivalents were approximately $7.1 million as of December 31, 2023, compared to approximately $1.0 million as of December 31, 2022.

  • Cash provided by operating activities was approximately $0.06 million for the fiscal year ended December 31, 2023, compared to approximately $0.9 million for the fiscal year ended December 31, 2022

  • Cash generated from investing activities was approximately $6.8 million for the fiscal year ended December 31, 2023, primarily consisting of the purchases of property, plant and equipment of approximately $2.0 million; the investment in equity securities of $2.2 million and offset by the proceeds from disposal of property and equipment of approximately $10.9 million and investment in financial assets available for sales of approximately $0.1 million. This compares to net cash used in investing activities of approximately $1.1 million for the fiscal year ended December 31, 2022.

  • Cash used in financing activities for the fiscal year ended December 31, 2023 was $0.9 million, which mainly consisted of bank loan repayment of $7.4 million; the repayment of lease liabilities of $6.4 million; the payment of dividend of $10.5 million; loan from director of $9.9 million and proceeds from share issuance net of deferred offering costs of $13.5 million. This compares to cash used in financing activities of $0.3 million for the fiscal year ended December 31, 2022.

Balance Sheet Summary

  • Total assets were approximately $58.0 million, and total liabilities were approximately $36.2 million at December 31, 2023.

  • Working capital was approximately $20.9 million at December 31, 2023, versus approximately $2.9 million at December 31, 2022.

  • Shareholders' equity was approximately $21.8 million at December 31, 2023, as compared to approximately $6.3 million at December 31, 2022.

About Multi Ways Holdings Limited 
Multi Ways Holdings supplies a wide range of heavy construction equipment for sales and rental in Singapore and the surrounding region. With more than two decades of experience in the sales and rental of heavy construction equipment business, the Company is widely established as a reliable supplier of new and used heavy construction equipment to customers from Singapore, Australia, UAE, Maldives, Indonesia, and the Philippines. With our wide variety of heavy construction equipment in our inventory and complementary equipment refurbishment and cleaning services, Multi Ways is well-positioned to serve customers as a one-stop shop. For more information, visit www.multiwaysholdings.com.

Safe Harbor Statement
This press release contains forward-looking statements. In addition, from time to time, we or our representatives may make forward-looking statements orally or in writing. We base these forward-looking statements on our expectations and projections about future events, which we derive from the information currently available to us. Such forward-looking statements relate to future events or our future performance, including: our financial performance and projections; our growth in revenue and earnings; and our business prospects and opportunities. You can identify forward-looking statements by those that are not historical in nature, particularly those that use terminology such as "may," "should," "expects," "anticipates," "contemplates," "estimates," "believes," "plans," "projected," "predicts," "potential," or "hopes" or the negative of these or similar terms. In evaluating these forward-looking statements, you should consider various factors, including: our ability to change the direction of the Company; our ability to keep pace with new technology and changing market needs; and the competitive environment of our business. These and other factors may cause our actual results to differ materially from any forward-looking statement. Forward-looking statements are only predictions. The forward-looking events discussed in this press release and other statements made from time to time by us or our representatives, may not occur, and actual events and results may differ materially and are subject to risks, uncertainties, and assumptions about us. We are not obligated to publicly update or revise any forward-looking statement, whether as a result of uncertainties and assumptions, the forward-looking events discussed in this press release and other statements made from time to time by us or our representatives might not occur.

Investor Relations Contact:
Matthew Abenante, IRC
President
Strategic Investor Relations, LLC 
Tel: 347-947-2093
Email: matthew@strategic-ir.com

*** tables follow ***

 
MULTI WAYS HOLDINGS LIMITED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Currency expressed in United States Dollars ("US$"))
     
  As of December 31,
  2023 2022
   $'000   $'000 
         
ASSETS        
Current assets:        
Cash and cash equivalents  7,073   1,003 
Accounts receivable, net  5,341   8,021 
Inventories  36,692   31,442 
Amounts due from related parties  1,068   50 
Financial assets available for sales  242   325 
Deposits, prepayments and other receivables  1,965   3,230 
Total current assets  52,381   44,071 
         
Non-current assets:        
Property and equipment, net  1,817   7,218 
Right-of-use assets  1,592   1,489 
Investment in equity securities  2,200   - 
Deferred tax assets  11   8 
Total non-current assets  5,620   8,715 
         
TOTAL ASSETS  58,001   52,786 
         
LIABILITIES AND SHAREHOLDERS' EQUITY        
Current liabilities:        
Accounts payable and accrued liabilities  4,758   4,781 
Customer deposits  3,238   5,884 
Amounts due to related parties  15,099   17,167 
Bank borrowings  4,588   8,862 
Lease liabilities  3,482   3,484 
Income tax payable  313   1,007 
Total current liabilities  31,478   41,185 
         
Long-term liabilities:        
Bank borrowings  431   3,175 
Lease liabilities  4,265   2,114 
Total long-term liabilities  4,696   5,289 
         
TOTAL LIABILITIES  36,174   46,474 
         
Commitments and contingencies  -   - 
         
Shareholders' equity        
Ordinary share, par value US$0.00025, 400,000,000 shares authorized, 30,840,000 and 24,800,000 ordinary shares issued and outstanding as of December 31, 2023 and 2022, respectively  8   6 
Additional paid-in capital  18,945   5,440 
Retained earnings  3,024   1,235 
Non-controlling interest  -   50 
Accumulated other comprehensive loss  (150)  (419)
Total shareholders' equity  21,827   6,312 
         
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY  58,001   52,786 


       MULTI WAYS HOLDINGS LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Currency expressed in United States Dollars ("US$"))
   
  Financial Years ended December 31,
  2023 2022 2021
   $'000   $'000   $'000 
             
Revenues, net  36,016   38,359   33,406 
             
Cost of revenue  (27,366)  (28,617)  (24,049)
             
Gross profit  8,650   9,742   9,357 
             
Operating cost and expenses:            
Selling and distribution  (952)  (1,502)  (1,114)
General and administrative  (10,776)  (6,745)  (6,609)
Total operating cost and expenses  (11,728)  (8,247)  (7,723)
             
Profit/(Loss) from operations  (3,078)  1,495   1,634 
             
Other income (expense):            
Gain on early termination on lease liability  113   -   - 
Gain from disposal of plant and equipment  5,048   2   305 
Interest income  57   *   19 
Interest expense  (1,105)  (748)  (716)
Dividend income  16   7   - 
Government grant  22   81   109 
Foreign exchange (loss) gain, net  (43)  (93)  (44)
Other income  656   813   724 
Total other income, net  4,764   62   397 
             
Income before income taxes  1,686   1,557   2,031 
             
Income tax expense (benefit)  53   (529)  (230)
             
NET INCOME  1,739   1,028   1,801 
             
Less: Net income attributable to non-controlling interest  50   (50)  - 
             
NET INCOME ATTRIBUTABLE TO EQUITY HOLDER OF THE COMPANY  1,789   978   1,801 
             
Net income per share            
Basic and Diluted  0.06   0.04   0.07 
             
Weighted average number of ordinary shares outstanding            
Basic and Diluted (‘000)  29,284   24,800   24,800 
             
NET INCOME ATTRIBUTABLE TO EQUITY HOLDER OF THE COMPANY  1,789   978   1,801 
             
Other comprehensive income (loss):            
Foreign currency translation adjustment  269   (74)  (345)
             
COMPREHENSIVE INCOME  2,058   904   1,456 
 
*  This figure is immaterial


MULTI WAYS HOLDINGS LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Currency expressed in United States Dollars ("US$"))
       
  Financial Years ended December 31,
  2023 2022 2021
   $'000   $'000   $'000 
             
Cash flows from operating activities:            
Net income before tax  1,686   1,557   2,031 
Adjustments to reconcile net income to net cash provided by operating activities            
Depreciation of property and equipment  907   800   822 
Depreciation of right-of-use assets  866   828   775 
Inventories written down  452   -   1,508 
Written off of advance to suppliers  956   -   - 
Gain on disposal of property and equipment  (5,048)  (2)  (305)
Gain on early termination on lease liability  (113)  -   - 
Provision (reversal) of impairment of trade receivables  145   193   (110)
Loss on revaluation of quoted share  22   -   - 
             
             
Change in operating assets and liabilities:            
Accounts receivable  1,763   (2,644)  710 
Inventories  3,631   940   (2,757)
Deposits, prepayments and other receivables  408   1,702   (1,900)
Accounts payable and accrued liabilities  (2,119)  1,964   (1,329)
Customer deposits  (2,826)  (4,387)  5,797 
             
Income tax payable  (675)  (41)  388 
Net cash provided by operating activities  55   910   5,630 
             
Cash flows from investing activities:            
Purchase of property and equipment  (1,955)  (817)  - 
Proceeds from disposal of property and equipment  10,894   2   343 
Investment in equity securities  (2,200)  -   - 
Proceeds from/ (investment in) financial assets available for sales  71   (325)  - 
Net cash generated from (used in) investing activities  6,810   (1,140)  343 
             
Cash flows from financing activities:            
Repayment of bank borrowings  (7,369)  (105)  (3,712)
Repayment of lease liabilities  (6,369)  (114)  (1,046)
Proceeds from shares issuance net of deferred offering costs  13,506   -   - 
Payment of dividends  (10,524)  (77)  - 
Loan from director  9,881   -   - 
Net cash used in financing activities  (875)  (296)  (4,758)
             
Effect on exchange rate change on cash and cash equivalents  80   (4)  (7)
             
Net change in cash and cash equivalent  6,070   (530)  1,208 
             
BEGINNING OF YEAR  1,003   1,533   325 
             
END OF YEAR  7,073   1,003   1,533 
             
SUPPLEMENTAL CASH FLOW INFORMATION:            
Cash (paid) refund for income taxes  (675)  (40)  158 
Cash paid for interest  1,051   748   717 

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