Global Sources reports third quarter 2013 results

              Global Sources reports third quarter 2013 results

- Reported third quarter revenue of $44.8 million -

- Posted IFRS EPS of $0.15 and non-IFRS EPS of $0.17 -

- Reaffirms guidance for the second half of 2013 -

PR Newswire

NEW YORK, Nov. 14, 2013



NEW YORK, Nov. 14, 2013 /PRNewswire/ -- Global Sources Ltd. (NASDAQ: GSOL)
reported financial results for the third quarter ended Sept. 30, 2013.

(Logo: http://photos.prnewswire.com/prnh/20030303/LNM011LOGO-b )

"While the current global retail environment remains challenged, our focus is
to enhance the value we provide to our customers by helping them buy or sell
more effectively," said Global Sources' executive chairman, Merle A. Hinrich.
"In our core export business, we just celebrated the 10^th anniversary of our
China Sourcing Fairs. We were pleased with the overall performance of our
series of fall shows, which was led by our electronics show.

"China Sourcing Fair: Electronics & Components featured more than 4,100 booths
and drew record attendance. Particularly strong was our Mobile and Wireless
pavilion, which is scheduled to be spun off as an independent show along with
a dedicated online vertical and magazine in 2014."

Global Sources' CFO, Connie Lai, said: "The China Sourcing Fairs in Miami and
in Mumbai, India moved from the third quarter last year to the second quarter
and the fourth quarter of 2013, respectively. This shift in timing of our
trade shows, combined with the disappointing financial performance of the
FashionSZshow in July, impacted third quarter revenues and does not reflect
the long-term positive trend of our exhibitions business, and the success of
our initiatives to combine the best of online with trade shows."

Financial highlights – Third quarter: 2013 compared to 2012

  oRevenue was $44.8 million, as compared to $59.1 million.

       oOnline revenue was $22.0 million, as compared to $30.0 million.
       oExhibitions revenue was $17.6 million, as compared to $23.3 million
       oPrint revenue was $3.4 million, as compared to $4.1 million.

  oIFRS net income was $5.4 million, or $0.15 per diluted share, as compared
    to third quarter 2012 IFRS net income of $8.2 million, or $0.23 per
    diluted share.
  oNon-IFRS net income was $6.1 million, or $0.17 per diluted share, as
    compared to $9.1 million, or $0.25 per diluted share, for the third
    quarter of 2012.
  oAdjusted EBITDA was $11.0 million, as compared to $15.3 million for the
    third quarter of 2012.
  oTotal deferred income and customer prepayments were $105.1 million as at
    Sept. 30, 2013, as compared to $115.4 million as at Sept. 30, 2012.

Financial highlights – Nine Months Ended Sept. 30: 2013 compared to 2012 – in
accordance with IFRS

  oRevenue was $137.5 million, as compared to $164.8 million.
  oIFRS net income was $27.8 million, or $0.77 per diluted share, as compared
    to $21.0 million, or $0.59 per diluted share.
  oNon-IFRS net income was $19.3 million, or $0.54 per diluted share, as
    compared to $23.7 million, or $0.66 per diluted share, for the nine months
    ended Sept. 30, 2012.
  oAdjusted EBITDA was $27.4 million, as compared to $33.5 million for the
    nine months ended Sept. 30, 2012.

Lai added, "We continue to generate cash and our balance sheet remains strong.
We closed the quarter with a cash and securities position of $145.9 million,
as compared to $110.8 million at the end of September 2012, and we continue to
have no debt.

"We are reaffirming our guidance. For the second half of 2013, we expect the
revenue mix to range between 40% and 41% for online, 50% and 51% for
exhibitions, 5% and 6% for print, and approximately 3% for miscellaneous. This
compares to a second half 2012 revenue mix of approximately 46% for online,
44% for exhibitions, 7% for print and 3% for miscellaneous."

Financial expectations for the second half of 2013 under IFRS

  oFor the second half of 2013 ending Dec. 31, 2013:

       oRevenue is expected to be in the range of $101.0 million to $103.0
         million, as compared to $126.0 million for the second half of 2012.
       oIFRS EPS is expected to be in the range of $0.32 to $0.36, as
         compared to $0.54 per diluted share in the second half of 2012. SBC
         and the amortization of intangibles as it relates to certain equity
         compensation plans are estimated to be an expense of $0.04 per
         diluted share for the second half of 2013.
       oNon-IFRS EPS is expected to be in the range of $0.36 to $0.40, as
         compared to $0.63 per diluted share for the same period in 2012.
       oAdjusted EBITDA is expected to be between $19.7 million and $20.9
         million, as compared to $29.7 million in the second half of 2012.

Recent Corporate Highlights

  oOrganized its series of fall shows with more than 6,800 booths in October
    at Hong Kong's AsiaWorld-Expo. Total attendance exceeded 63,000 and
    included buyers from more than 150 countries and territories.
  oChina Sourcing Fair: Electronics & Components featured more than 4,100
    booths and drew record attendance.
  oHeld the China International Optoelectronic Expo (CIOE) in September
    featuring more than 3,200 exhibitors.
  oThe second annual China Sourcing Fairs in Sao Paulo, Brazil were held in
    September. The Fairs were the largest expositions of China-made products
    in Brazil, featuring more than 950 booths. Total attendance exceeded 5,400
    and included buyers from 24 countries. The Fairs are managed by Milton
    Exhibits under license from Global Sources.
  oThe 13^th China International Fashion Brand Fair – Shenzhen
    (FashionSZshow), the largest and most influential fashion exhibition in
    southern China, was held in Shenzhen in July.
  oPrivate Sourcing Events were held from July through October for more than
    120 sourcing teams from very large buying organizations including Auchan,
    Brookstone, El Corte Ingles, Falabella, Future Group, Home Retail Group,
    IKEA, Intelbras, Kesa Electricals, Kingfisher, the METRO GROUP and others.
    These events created more than 700 high quality, one-on-one selling
    opportunities for Global Sources suppliers.

Conference call for Global Sources third quarter 2013 earnings

Executive Chairman Merle A. Hinrich and CFO Connie Lai are scheduled to
conduct a conference call at 8:00 a.m. ET on Nov. 14, 2013 (9:00 p.m. on Nov.
14, 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
4644710 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 Nov.
22, 2013. To listen to the telephone replay dial(800) 406-7325 ordial
(1-303) 590-3030 outside the United States, and enter pass code 4644710. For
those in the Hong Kong area, the replay dial-in number is (852) 3056-2777, and
the pass code is 4644710.

About Global Sources

Global Sources is a leading business-to-business media company and a primary
facilitator of trade with Greater China.

The core business facilitates trade between Asia and the world using
English-language media such as online marketplaces (GlobalSources.com), print
and digital magazines, sourcing research reports, private sourcing events, and
trade shows.

More than 1 million international buyers, including 95 of the world's top 100
retailers, use these services to obtain product and company information to
help them source more profitably from overseas supply markets. These services
also provide suppliers with integrated marketing solutions to build corporate
image, generate sales leads and win orders from buyers in more than 240
countries and territories.

Global Sources' other businesses provide Chinese-language media to companies
selling to and within Greater China. These services include online web sites,
print and digital magazines, seminars and trade shows. In mainland China,
Global Sources has a network of more than 30 office locations and a community
of more than 4 million registered online users and magazine readers of its
Chinese-language media.

Now in its fifth decade, Global Sources has been publicly listed on the NASDAQ
since 2000.

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, profits 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, impairment of goodwill and intangible assets, and
profits or losses on acquisitions and investments net of transaction costs and
related tax expenses.

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.

- Tables Follow -
GLOBAL SOURCES LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In U.S. Dollars Thousands, Except Number of Shares and Per Share Data)
                                       As at September 30,  As at December 31,
                                       2013                 2012
                                       (Unaudited)
ASSETS
Current assets
Cash and cash equivalents              $     136,575        $     104,631
Term deposits with banks                     1,759                4,184
Financial assets, available-for-sale         7,547                7,472
Accounts receivables                         3,573                4,242
Receivables from sales                       8,582                7,773
representatives
Inventories                                  327                  410
Prepaid expenses and other current           26,789               18,396
assets
                                             185,152              147,108
Non-current assets
Property and equipment                       49,879               30,442
Investment properties                        89,321               97,377
Intangible assets                            28,555               33,136
Long term investment                         100                  100
Deferred income tax assets                   146                  244
Other non-current assets                     2,580                2,762
                                             170,581              164,061
Total assets                           $     355,733        $     311,169
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable                       $     11,781         $     12,531
Deferred income and customer                 98,247               84,540
prepayments
Accrued liabilities                          21,141               20,409
Income tax liabilities                       2,726                1,225
                                             133,895              118,705
Non-current liabilities
Deferred income and customer                 6,837                9,062
prepayments
Deferred income tax liabilities              5,718                6,090
                                             12,555               15,152
Total liabilities                            146,450              133,857
Equity attributable to Company's
shareholders
Common shares                                525                  521
Treasury shares                              (150,089)            (150,089)
Other reserves                               160,200              156,629
Retained earnings                            186,610              158,859
Total Company shareholders' equity           197,246              165,920
Non-controlling interests                    12,037               11,392
Total equity                           $     209,283        $     177,312
Total liabilities and equity           $     355,733        $     311,169



GLOBAL SOURCES LTD. AND SUBSIDIARIES

CONSOLIDATED INCOME STATEMENTS

(In U.S. Dollars Thousands, Except Number of Shares and Per Share Data)
                                                                                   ThreemonthsendedSeptember30,  NinemonthsendedSeptember30,
                                                                                   2013              2012            2013             2012
                                                                                   (Unaudited)       (Unaudited)     (Unaudited)      (Unaudited)
Revenue:
 Online and other media services (Note 1)                                       $   25,417        $  34,115       $  79,593        $  103,748
 Exhibitions                                                                        17,624           23,342          52,399           56,066
 Miscellaneous                                                                      1,726            1,646           5,466            4,984
                                                                                       44,767           59,103          137,458          164,798
Operating Expenses:
 Sales (Note 2)                                                                     11,153           18,686          41,418           57,252
 Event production                                                                   4,431            6,548           15,081           16,534
 Community and content (Note 2)                                                     6,670            8,172           20,402           24,068
 General and administrative (Note 2)                                                10,990           10,647          34,146           32,225
 Information and technology (Note 2)                                                3,164            3,326           9,639            9,965
Total Operating Expenses                                                               36,408           47,379          120,686          140,044
 Profit on sale of property                                                         -                -               15,410           -
Profit from Operations                                                                 8,359            11,724          32,182           24,754
 Interest income                                                                    467              300             1,088            732
 Share of loss of associate                                                         -                -               -                (24)
 Impairment loss on investment in associate                                         -                -               -                (302)
Profit before Income Taxes                                                             8,826            12,024          33,270           25,160
Income tax expense                                                                     (1,657)          (1,514)         (4,326)          (2,050)
Net Profit                                                                         $   7,169         $  10,510       $  28,944        $  23,110
Net profit attributable to non-controlling interests                        (1,813)          (2,305)         (1,193)          (2,081)
Net profit attributable to the Company's                                                                                           
 shareholders                                                                    $                 $               $                   21,029
                                                                                       5,356            8,205           27,751        $
Diluted net profit per share attributable to the                                                                                   
 Company's shareholders                                                          $                 $               $                   0.59
                                                                                       0.15             0.23            0.77          $
Shares used in diluted net profit per share                                                                           
 calculations                                                                                                                          35,718,965
                                                                                       36,186,254       35,862,759      36,045,545
Note:1.Online and other media services consists of:
                                                                                   Three months ended September 30,  Nine months ended September 30,
                                                                                   2013              2012            2013             2012
                                                                                   (Unaudited)       (Unaudited)     (Unaudited)      (Unaudited)
Online services                                                                    $   22,046        $  29,975       $  69,710        $  90,897
Print services                                                                         3,371            4,140           9,883            12,851
                                                                                   $   25,417        $  34,115       $  79,593        $  103,748
Note:2.Non-cash compensation expenses associated with the several equity compensation plans and Global Sources Directors Share Grant Award
Plan included under various categories of expenses are as follows:
                                                                                   Three months ended September 30,  Nine months ended September 30,
                                                                                   2013              2012            2013             2012
                                                                                   (Unaudited)       (Unaudited)     (Unaudited)      (Unaudited)
Sales                                                                            $   159           $  175          $  386           $  412
Community and content                                                                28               23              12               39
General and administrative                                                           368              424             971              1,159
Information and technology                                                           54               61              193              197
                                                                                   $   609           $  683          $  1,562         $  1,807

GLOBAL SOURCES LTD. AND SUBSIDIARIES

ACTUAL IFRS to NON-IFRS RECONCILIATION

(In U.S. Dollars Thousands, Except Number of Shares and Per Share Data)
                                                                                                                  ThreemonthsendedSeptember30,  NinemonthsendedSeptember30,
                                                                                                                  2013              2012            2013             2012
IFRSEPS  $   0.15          $  0.23         $  0.77          $  0.59
IFRS Net Profit                                                                                                   $   5,356         $  8,205        $  27,751        $  21,029
Non-cash stock based compensation expense (Note 1)                                                                    609              683             1,562            1,807
Amortization of intangibles (Note 2)                                                                                  167              221             594              604
Impairment loss on investment in associate                                                                            -                -               -                302
Impairment of goodwill and intangibles                                                                                -                -               2,531            -
Profit on sale of property, net of transaction costs & related tax expenses                                           -                -               (13,124)         -
Non-IFRS Net Profit                                                                                               $   6,132         $  9,109        $  19,314        $  23,742
Non-IFRS diluted net profit per share                                                                             $   0.17          $  0.25         $  0.54          $  0.66
Total shares used in non-IFRS diluted net profit
                                                                                                                      36,186,254       35,862,759      36,045,545       35,718,965
per share calculations
Notes:
(1) Actual SBC is calculated based on actual share price on date of the awards.
(2) Amortization of intangible assets relating to certain non-compete agreements.
GLOBAL SOURCES LTD. AND SUBSIDIARIES

ADJUSTED EBITDA RECONCILIATION

(In U.S. Dollars Thousands)
                                                                                                                  ThreemonthsendedSeptember30,  NinemonthsendedSeptember30,
                                                                                                                  2013              2012            2013             2012
IFRS profit from operations                                                                                       $   8,359         $  11,724       $  32,182        $  24,754
Depreciation and amortization                                                                                         2,038            2,875           6,487            6,928
EBITDA                                                                                                                10,397           14,599          38,669           31,682
Non-cash stock based compensation expense                                                                             609              683             1,562            1,807
Impairment of goodwill and intangibles                                                                                -                -               2,531            -
Profit on sale of property, net of transaction costs                                                                  -                -               (15,410)         -
Adjusted EBITDA                                                                                                   $   11,006        $  15,282       $  27,352        $  33,489

GLOBAL SOURCES LTD. AND SUBSIDIARIES

GUIDANCE IFRS to NON-IFRS RECONCILIATION

(In U.S. Dollars Million, Except Number of Shares and Per Share Data)
                                                                                    GUIDANCE                  ACTUAL
                                                                                    Six months                Six months

                                                                                    ended December 31,        endedDecember31,
                                                                                    2013                      2012
Revenue  $101.0     to $103.0      $126.0
IFRS EPS                                                                            $0.32      to $0.36       $0.54
Non-cash stock based compensation expense (Note 1)                                  $0.03         $0.03       $0.04
Amortization of intangibles (Note 2)                                                $0.01         $0.01       $0.01
Impairment of goodwill and intangibles                                              -             -           $0.04
Non-IFRS diluted net income per share                                               $0.36      to $0.40       $0.63
Total shares used in non-IFRS diluted net income
per share calculations                                                             36,205,000    36,205,000  35,856,577
Notes:
(1) Actual SBC is calculated based on actual share price on date of the awards.
(2) Amortization of intangible assets relating to certain non-compete agreements.

For financial matrix, please visit:
http://www.prnasia.com/sa/attachment/2013/11/20131114113835308323.pdf

Press Contact in Asia               Investor Contact in Asia
Camellia So                         Connie Lai
Tel: (852) 2555-5021                Tel: (852) 2555-4747
e-mail: cso@globalsources.com      e-mail: investor@globalsources.com 
Press Contact in U.S.               Investor Contact in U.S.
Brendon Ouimette                    Cathy Mattison
Tel: (1-480) 664-8309               LHA
e-mail: bouimette@globalsources.com Tel: (1-415) 433-3777
                                    e-mail: cmattison@lhai.com





SOURCE Global Sources

Website: http://www.investor.globalsources.com
Website: http://www.globalsources.com