Plastec Technologies Reports 2016 Third Quarter And Nine-Month Financial Results

Plastec Technologies, Ltd. - (OTCBB:PLTYF), (the "Company"), today reported unaudited financial results for fiscal 2016 third quarter and nine-month ended September 30, 2016. See financial tables at the end of this release in Hong Kong dollars (HKD). All other amounts in this press release are presented in U.S. dollars (USD) with a conversion rate of US$1.0: HK$7.8.

Closing of Share Transfer Agreement with Shanghai Yongli

On October 11, 2016, the Company announced the closing of its previously announced Share Transfer Agreement ("Agreement") with Shanghai Yongli Belting Co., Ltd. ("SYB") and its wholly-owned subsidiary, Shanghai Yongjing Investment Management Co., Ltd.. As a result, the Company no longer owns Plastec International Holdings Limited ("Plastec") or its integrated plastic manufacturing operations.

As a result of the closing occurring subsequent to quarter end, the Company's third quarter and nine-month financial and operating highlights still represent that of the Company's previously owned integrated plastic manufacturing service business in the People's Republic of China and Thailand through its wholly owned subsidiaries.

Financial and Operating Highlights for the Three Months Ended September 30, 2016

(All comparisons to prior year)
  • Sales of $50.6 million, an increase of 9.3% compared to $46.2 million
  • Gross margin of 27.5% decreased from 28.7%
  • Adjusted EBITDA of $10.3 million, an increase of 4.2% compared to $9.8 million
  • Net income of $6.0 million, or $0.46 per diluted share based on 12.9 million diluted shares outstanding, compared to $6.5 million, or $0.50 per diluted share based on 12.9 million diluted shares outstanding

Fiscal 2016 Nine-Month Financial and Operating Highlights

(All comparisons to same period of prior year)
  • Sales of $137.6 million, an increase of 9.9% compared to $125.2 million
  • Gross margin of 28.4%, compared to 25.3%
  • Adjusted EBITDA of $31.4 million, increased 24.5% from $25.2 million
  • Net income of $20 million, or $1.54 per diluted share based on 12.9 million diluted shares outstanding, increased 38% from $14.5 million, or $1.12 per diluted share based on 12.9 million diluted shares outstanding
  • $26.9 million in income generated from operations for the nine months ended September 30, 2016, compared to $21.8 million

Declaration of Special Dividend to Shareholders

In connection with the Agreement and following receipt of the initial portion of the Transfer Price, the Company's Board of Directors declared a special cash dividend of US$8.00 on each outstanding ordinary share. The special cash dividend was paid on or about November 1, 2016 to shareholders of record as of October 25, 2016.