Full Press Release Details
Globalization Capital Inc. (IGC) and its Subsidiaries File Financial Results for
Fiscal Year Ended March 31, 2008
Pro Forma Revenue Up Over 100%; Growth Expected to Accelerate in FYE
Md., July 16, 2008 -- (PR NEWSWIRE) -- India Globalization Capital, Inc. (AMEX:
IGC.U), (AMEX: IGC.WS), (AMEX: IGC), a U.S.-based company developing
infrastructure in India through its majority-owned subsidiaries, Sricon
Infrastructure Private Limited (Sricon) and Techni Bharathi Limited (TBL), has
filed its financial results for the Financial Year Ended (FYE) March 31, 2008 on
March 31, 2008 IGC's subsidiaries reported combined pro forma non-GAAP revenue
of $32.9 million and combined pro forma non-GAAP net income of $4.4 million
before one-time expenses.
March 31, 2008, IGC reported GAAP revenue of $2.2 million and a net loss of $5.2
million, or a loss of $0.61 per share, inclusive of one-time SPAC
expenses. IGC GAAP statements include only three weeks of revenues
and earnings generated from the subsidiaries and all of the one-time SPAC
related expenses, of which $4.4 million was non-cash expenses associated with
warrants and stock issued to bridge lenders.
including non-GAAP financial information for the following reasons:
Mukunda, chief executive officer of IGC said: "On a pro forma basis,
our combined subsidiaries increased revenue by over 100 percent year-over-year
with expanding margins. We are seeing strong evidence of building
scale within our businesses. This is confirmation of our ability to
build scale as we accelerate our growth, by winning more contracts and
increasing our backlog".
added: "Based on our current order book we expect record revenues and earnings
and reaffirm our guidance for the fiscal year ending March 31, 2009 of revenue
between $110 million to $125 million and earnings between $7 million to $9
million, before any one-time or non cash charges".
7, 2008, upon obtaining the consent of its stockholders, IGC acquired 63% of
Sricon Infrastructure and 77% of (TBL), both infrastructure companies based in
financial statements filed with the SEC include audited statements for Sricon
and TBL from April 1, 2007 through the consummation of the acquisition on March
7, 2008. The remaining days of March 2008, between March 8 and March
31, are consolidated and reported on IGC's consolidated
statements. As IGC was a SPAC before the acquisition, it did not
engage in an operating business and had no revenue to report for the 2008 fiscal
year other than for the three weeks post acquisition.
2008, on a pro forma basis, Sricon and TBL combined reported about $30.1 million
of revenue, plus about $2.8 of other income, for a total of $32.9
million. Generally, other income includes the sale of scrap
construction material, leasing excess capacity to other firms, among others, and
in FYE 2008 it included a one-time gain in TBL.
aggregate revenue of $30.1 million includes the following: for their respective
fiscal years ending March 7, 2008, Sricon and TBL reported $22.6 million and
$5.3 million respectively on their audited GAAP statements. In
addition, their combined revenue for the last three weeks in March 2008 is
reported on IGC's audited statements as about $ 2.2 million.
2007, Sricon and TBL combined, reported about $14.9 million of revenue plus
about $632 thousand of other income, for a total of $15.5 million.
revenue of Sricon alone grew over 113 % from $10.6 million in FYE 2007 to $22.6
million for the period April 1, 2007 to March 7, 2008.
April 1, 2007 through March 7, 2008, on a pro forma non-GAAP basis, Sricon and
TBL combined reported earnings of about $4.4 million. For FYE 2007
the two companies combined reported non-GAAP earnings of $946
income of Sricon grew 480% from $410 thousand in FYE 2007 to $2.3 million for
the period April 1, 2007 through March 7, 2008. The period in 2008 is
less by about three weeks, because the income for the remaining three weeks in
March 2008 is consolidated with IGC.
Sricon, our larger and more significant infrastructure subsidiary, gross margins
have improved steadily; they were 22%, 24% and 29% for FYE 2006, 2007 and 2008
respectively. Operating margins were 8%, 11% and 17% for FYE 2006,
2007, and 2008 respectively, while net income margins were about 4%, 4% and 11%
for FYE 2006, 2007, and 2008 respectively.
March 31, 2008, our consolidated total assets were about $67.6 million,
including cash and cash equivalents of around $8.4 million. Also, we
reported consolidated short-term debt of about $5.6 million and consolidated
long-term debt of approximately $1.2 million as of March 31, 2008.
Bethesda, Maryland, IGC operates through two infrastructure companies in India,
Sricon Infrastructure Private Limited ("Sricon") and Techni Bharathi, Limited
("TBL"). IGC owns sixty-three percent of Sricon and seventy-seven
percent of TBL. IGC through its subsidiaries has three core
businesses: 1) highway and other heavy construction, 2) mining & quarrying
and 3) civil construction and engineering of high temperature plants. The
Company's medium term plans are to expand each of these lines of
IGC's operations are based in India. The company has offices in
Maryland, Mauritius, Nagpur, Cochin, Delhi and Bangalore. Copies of
IGC's filings with the SEC containing information about IGC, our Indian
operations and other relevant documents, are available at no charge at the SEC's
Internet site (http://www.sec.gov). For more information about IGC,
please visit the company's web site at www.indiaglobalcap.com.
press release may contain forward-looking statements. These statements reflect
management's current views and are subject to risks and uncertainties that could
cause actual results to differ materially from those projected, expressed or
implied in these statements. Factors, which could cause actual
results to differ, relate to: (i) the ability of the parties to successfully win
new contracts, execute on contracts and business plan, (ii) our ability to raise
additional capital and the structure of such capital including the exercise of
warrants, and (iii) changes in the exchange rate between the US dollar and the
Indian Rupee. We undertake no obligation to publicly update any
forward-looking statements, whether as a result of new information, future
events or otherwise. Other factors and risks that could cause or contribute to
actual results differing materially from such forward looking statements have
been discussed in greater detail in the company's Form 10-KSB.
Globalization Capital, Inc.