General Bearing Corporation Releases Results for the First Quarter

WEST NYACK, N.Y.--General Bearing Corporation (OTC:GNRL.PK) announced today that the Company has released the attached unaudited condensed consolidated financial statements for the thirteen weeks ending April 4, 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)
	�	�				�	�
			April 4,					January 3,
			�	2009	�			�	2009	�
ASSETS			(Unaudited)
CURRENT ASSETS
Cash and cash equivalents			$	7,735				$	8,643
Due from bank				5,755					4,338
Loan receivable - related party				60					70
Accounts receivable, net of allowance for doubtful
accounts of $1,008 in 2009 and $999 in 2008				18,585					23,125
Inventories				41,966					44,126
Prepaid taxes and taxes recoverable				1,015					1,340
Prepaid expenses and other current assets				2,653					2,808
Deferred tax assets			�	1,127	�			�	1,399	�
Total current assets				78,896					85,849
PROPERTY, PLANT AND EQUIPMENT				39,663					40,526
INVESTMENT IN, ADVANCES TO AND ACCOUNTS RECEIVABLE
FROM JOINT VENTURES AND AFFILIATES				1,832					1,837
LOAN RECEIVABLE - RELATED PARTY				1,320					1,320
DEFERRED TAX ASSETS				679					354
OTHER ASSETS			�	193	�			�	214	�
Total assets			$	122,583	�			$	130,100	�
								�
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Notes payable - banks			$	26,846				$	28,636
Notes payable - related party				1,464					5,125
Accounts payable				10,591					14,263
Due to affiliates				1,048					1,321
Accrued expenses and other current liabilities				3,625					6,203
Current portion of long term debt			�	21	�			�	36	�
Total current liabilities				43,595					55,584
LONG-TERM DEBT				7,409					3,660
OTHER LIABILITIES				179					187
DEFERRED TAXES			�	144	�			�	144	�
Total liabilities			�	51,327	�			�	59,575	�
								�
MINORITY INTERESTS				21,533					21,228
COMMITMENTS AND CONTINGENCIES
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				38,400					38,423
Accumulated other comprehensive income				3,162					3,163
Treasury stock, at cost; 542,817 and 561,817 shares				(4,981	)				(5,159	)
Retained earnings			�	13,100	�			�	12,828	�
Total stockholders' equity			�	49,723	�			�	49,297	�
Total liabilities and stockholders' equity			$	122,583	�			$	130,100	�

	�	�	�	�
GENERAL BEARING CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(In Thousands, Except for Shares and Per Share Data)
(Unaudited)
					�
					Thirteen Weeks Ended
					April 4,			�	�	March 29,
						2009					2008
										�
SALES					$	19,836				$	34,130
COST OF SALES					�	16,443	�			�	25,960
GROSS PROFIT						3,393					8,170
										�
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES					�	4,135	�			�	5,148
OPERATING INCOME / (LOSS)						(742	)				3,022
										�
OTHER EXPENSES / (INCOME), NET					�	(1,410	)			�	897
INCOME BEFORE INCOME TAXES						668					2,125
										�
INCOME TAXES					�	90	�			�	785
										�
INCOME BEFORE MINORITY INTERESTS						578					1,340
										�
MINORITY INTERESTS					�	306	�			�	116
NET INCOME					$	272	�			$	1,224
										�
Other Comprehensive Income / (Loss)
Foreign exchange translation					�	(1	)			�	815
Total comprehensive income					$	271	�			$	2,039
										�
Net Income per common share
Basic					$	0.07				$	0.33
Diluted					$	0.07				$	0.31
										�
Weighted average number of common shares
Basic						3,629,040					3,734,337
Diluted						3,691,388					3,890,478

�
GENERAL BEARING CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
(Unaudited)
	�	�
			Thirteen Weeks Ended
			April 4, 2009			�	�	March 29, 2008
								�
OPERATING ACTIVITIES
Net income			$	272				$	1,224
Adjustments to reconcile net income to net cash
provided by operating activities:
Minority interests				306					116
Depreciation and amortization				1,129					1,170
Equity losses in joint ventures and affiliates				5					6
Deferred income taxes				(53	)				(89	)
Gain on sale of fixed assets				(2	)				-
Stock based compensation				13					15
Other non cash charges and credits, net				(8	)				338
Changes in:
Accounts receivable				4,540					(1,779	)
Inventories				2,161					1,708
Due from bank				(1,417	)				(436	)
Prepaid expenses and other assets				479					75
Advances to affiliates				(273	)				(175	)
Accounts payable and accrued expenses			�	(6,094	)			�	271	�
Net cash provided by operating activities			�	1,058	�			�	2,444	�
								�
INVESTING ACTIVITIES
Fixed asset purchases				(247	)				(1,955	)
Investment in affiliates				-					(105	)
Repayment of loan - related party				10					20
Proceeds from sale of fixed assets			�	3	�			�	-	�
Net cash used in investing activities			�	(234	)			�	(2,040	)
								�
FINANCING ACTIVITIES
Decrease in note payable - banks				(1,790	)				(940	)
Increase / (Decrease) in notes payable - related party				(3,660	)				1,193
Increase / (Decrease) in revolving credit facility				3,749					(450	)
Decrease in note payable - other				(16	)				(16	)
Repurchase of employee stock options				-					(251	)
Purchase of treasury stock			�	(15	)			�	(205	)
Net cash used in financing activities			�	(1,732	)			�	(669	)
								�
NET DECREASE IN CASH AND CASH EQUIVALENTS				(908	)				(265	)
EFFECT OF EXCHANGE RATE CHANGES ON CASH				-					(236	)
CASH AND CASH EQUIVALENTS, Beginning of Period			�	8,643	�			�	9,955	�
CASH AND CASH EQUIVALENTS, End of Period			$	7,735	�			$	9,454	�