General Bearing Corporation Releases Results for the Third Quarter

http://www.businesswire.com/news/home/20091105006520/en

WEST NYACK, N.Y.--(Business Wire)--
General Bearing Corporation (OTC: GNRL.PK) announced today that the Company has
released the attached unaudited condensed consolidated financial statements for
the thirty - nine weeks ending October 3, 2009. The aforementioned interim
financial statements are also available on the Company`s website at
www.generalbearing.com.

General Bearing manufactures ball bearings, tapered roller bearings, spherical
roller bearings, and cylindrical roller bearings, and bearing components. Under
"The General" and the "Hyatt" trademarks, the Company supplies original
equipment manufacturers in the automobile, truck/trailer, railcar, office
equipment, machinery and appliance industries, as well as the industrial
aftermarket.

GENERAL BEARING CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In Thousands, except for shares)

October 3, January 3,
2009 2009
ASSETS (Unaudited)
CURRENT ASSETS
Cash and cash equivalents $ 9,080 $ 8,643
Due from bank - 4,338
Loan receivable - related party 44 70
Accounts receivable, net of allowance for doubtful accounts of $1,010 in 2009 and $999 in 2008 25,543 23,125
Inventories 31,849 44,126
Prepaid taxes and taxes recoverable 850 1,340
Prepaid expenses and other current assets 4,217 2,808
Deferred tax assets 1,653 1,399
Total current assets 73,236 85,849
PROPERTY, PLANT AND EQUIPMENT 38,765 40,526
INVESTMENT IN, ADVANCES TO AND ACCOUNTS RECEIVABLE FROM JOINT VENTURES AND AFFILIATES 3,384 1,837
LOAN RECEIVABLE - RELATED PARTY 1,330 1,320
DEFERRED TAX ASSETS 354 354
OTHER ASSETS 150 214
Total assets $ 117,219 $ 130,100

LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Notes payable - banks $ 22,648 $ 28,636
Notes payable - related party - 5,125
Accounts payable 10,703 14,263
Due to affiliates 778 1,321
Accrued expenses and other current liabilities 3,973 6,203
Current portion of long-term debt - 36
Total current liabilities 38,102 55,584
LONG-TERM DEBT 8,053 3,660
OTHER LIABILITIES 163 187
DEFERRED TAXES 144 144
Total liabilities 46,462 59,575

COMMITMENTS AND CONTINGENCIES
GENERAL BEARING CORPORATION STOCKHOLDERS' EQUITY:
Common shares - par value $.01 per share; authorized 5,000,000 shares; 4,174,450 issued and outstanding in 2009 and 2008 42 42
Paid-in capital 38,408 38,423
Accumulated other comprehensive income 3,163 3,163
Treasury stock, at cost; 542,817 and 561,817 shares (4,981 ) (5,159 )
Retained earnings 12,961 12,828
Total General Bearing Corporation stockholders' equity 49,593 49,297
NONCONTROLLING INTERESTS 21,164 21,228
Total stockholders' equity 70,757 70,525
Total liabilities and stockholders' equity $ 117,219 $ 130,100

GENERAL BEARING CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(In Thousands, Except for Shares and Per Share Data)

(Unaudited)

Thirty nine Weeks Ended Thirteen Weeks Ended
Oct. 3, Sept. 27, Oct. 3, Sept. 27,
2009 2008 2009 2008

SALES $ 70,771 $ 108,483 $ 29,453 $ 39,236
COST OF SALES 59,302 82,532 24,853 30,304
GROSS PROFIT 11,469 25,951 4,600 8,932

SELLING, GENERAL AND ADMINISTRATIVE EXP. 12,284 15,857 4,249 5,488
OPERATING INCOME / (LOSS) (815 ) 10,094 351 3,444

OTHER EXPENSES / (INCOME), NET (693 ) 2,659 556 938
INCOME / (LOSS) BEFORE INCOME TAXES (122 ) 7,435 (205 ) 2,506

INCOME TAX EXPENSE / (BENEFIT) (183 ) 1,429 (114 ) (296 )

NET INCOME / (LOSS) 61 6,006 (91 ) 2,802

Less: Net income / (loss) attributable to the noncontrolling interests (72 ) 1,062 (132 ) 591

NET INCOME ATTRIBUTABLE TO GENERAL BEARING CORPORATION $ 133 $ 4,944 $ 41 $ 2,211

Other Comprehensive Income / (Loss)
Net income / (Loss) $ 61 $ 6,006 $ (91 ) $ 2,802
Foreign exchange translation - 2,407 1 (29 )
Total comprehensive income / (loss) 61 8,413 (90 ) 2,773

Comprehensive income / (loss) attributable to the noncontrolling interests (72 ) 2,214 (132 ) 573
Comprehensive income attributable to General Bearing Corporation $ 133 $ 6,199 $ 42 $ 2,200

Net Income per common share
Basic $ 0.04 $ 1.34 $ 0.01 $ 0.61
Diluted $ 0.04 $ 1.31 $ 0.01 $ 0.59

Weighted average number of common shares
Basic 3,630,769 3,681,275 3,631,633 3,641,948
Diluted 3,692,918 3,786,459 3,696,448 3,735,078

GENERAL BEARING CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands)

(Unaudited)

Thirty nine weeks ended
October 3, Sept. 27,
2009 2008

OPERATING ACTIVITIES
Net income $ 133 $ 4,944
Adjustments to reconcile net income to net cash provided by operating activities:
Noncontrolling interests (72 ) 1,062
Depreciation and amortization 3,445 3,445
Deferred income taxes (254 ) (141 )
Equity (earnings) / losses in joint ventures and affiliates 53 (90 )
Loss / (Gain) on sale of fixed assets 101 (36 )
Stock based compensation 20 50
Other non cash charges and credits, net (13 ) 49
Changes in:
Accounts receivable (2,419 ) (5,646 )
Inventories 12,278 (2,881 )
Due from bank 4,338 (779 )
Prepaid expenses and other assets (935 ) (692 )
Advances to affiliates (545 ) 378
Accounts payable and accrued expenses (5,633 ) 2,601
Net cash provided by operating activities 10,497 2,264

INVESTING ACTIVITIES
Investment in affiliates (1,600 ) (105 )
Repayment of loan - related party 20 50
Fixed asset purchases (1,712 ) (3,706 )
Proceeds from sale of fixed assets 3 55
Net cash used in investing activities (3,289 ) (3,706 )

FINANCING ACTIVITIES
Increase / (decrease) in note payable - banks (10,091 ) 3,106
Increase / (decrease) in note payable - related party (732 ) 51
Decrease in note payable - other (36 ) (47 )
Increase / (decrease) in revolving credit facility 4,103 (2,200 )
Proceeds from partner contributions in a joint venture - 2,750
Dividends paid to stockholders - (1,460 )
Purchase of employee stock options - (1,403 )
Proceeds from the exercise of common stock options - 35
Purchase of treasury stock (15 ) (1,793 )
Net cash used in financing activities (6,771 ) (961 )

NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS 437 (2,403 )
EFFECT OF EXCHANGE RATE CHANGES ON CASH - (371 )
CASH AND CASH EQUIVALENTS, Beginning of Period 8,643 9,955
CASH AND CASH EQUIVALENTS, End of Period $ 9,080 $ 7,181

General Bearing Corporation
David Gussack, CEO
Tel: 845-358-6000

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