China Advanced Construction Materials Group, Inc. (NASDAQ: CADC)
("China ACM"), a leading provider of ready-mix concrete and related
technical services in China, today announced its financial results
for the Fiscal Year 2011 second quarter ended December 31, 2010.
The Company will host a conference call to discuss the results
today at 10:00 a.m. Eastern, 7:00 a.m. Pacific; details are
provided below.
Second Quarter FY 2011 Financial Highlights
-- Revenue increased 32% year over year to $34.5 million
-- Gross margin expanded to 19.4% sequentially vs.13.3% in Q1-11
-- Non-GAAP adjusted net income available to common shareholders up 14.5%
YOY to $4.9 million
-- Non-GAAP adjusted fully diluted EPS to common shareholders of $0.27
-- GAAP net income available to common shareholders of $3.2 million,
decreased from $7.6 million YOY primarily on $4.8 million higher non-
cash net expense for the change in fair value of warrants
-- Quarter end backlog at record $66.7 million, up 15% sequentially from
Q1-11
-- Adjusted EBITDA of $7.1 million, up 21.4% YOY.
Second Quarter FY 2011 Results Summary
China ACM reported second quarter Fiscal Year 2011 non-GAAP
adjusted net income available to common shareholders increased 14.5
percent to $4.9 million on 32 percent higher revenue of $34.5
million. The non-GAAP adjusted net income available to common
shareholders is before the non-cash change in fair value of
warrants, option and equity-based compensation.
Concrete Sales revenue at fixed plants in Beijing increased by
29 percent year over year to a record $26.2 million with a gross
margin of 12.9 percent; this gross margin compares with 9.2 percent
a year ago, and 7.2 percent in Q1-11. Q2-11 and current contracts
include projects for highways, schools, military officer
apartments, hotels, subway lines, sewage treatment plants,
technology business parks, retail buildings, residential complexes,
and hospitals.
Second quarter Manufacturing Services revenue nearly doubled,
increasing 94 percent year over year to a record $7.1 million with
a 31 percent gross margin. Technical Services revenue decreased by
two percent, year over year, to $1.2 million with a 92.2 percent
gross margin.
The Company did not renew the lease on its Tianshun Concrete
Sales fixed plant, which expired at the end of November, as it had
become inefficient with aging equipment and had been posting
negative gross margins.
The Company's second quarter blended gross margin was 19.4
percent, compared with 20.0 percent in the year-earlier quarter,
and reflects a temporary increase in the number of portable plant
HSR projects in transition due to project completions and a number
of project start-ups that generate lower margins during the
wind-down and start-up phases. While some of these projects have
experienced longer than normal transition times, all contracts
remain on schedule for fulfillment by original completion
dates.
Management Commentary
Mr. Xianfu Han, Chairman and Chief Executive Officer of China
ACM, commented, "We produced strong growth across the board in the
second fiscal quarter highlighted by record quarterly revenue,
rising margins, over $7 million in Adjusted EBITDA and solidly
higher Adjusted Net Income. During the quarter, we announced new
high speed rail (HSR) contracts worth $11.9 million, and have been
finalizing new HSR contracts for our recently acquired portable
plants which we expect to announce shortly."
"We also announced a letter of intent for a strategic alliance
with a division of China State Construction Engineering Corporation
("China Construction" or "CSCEC") (Shanghai SE: 601668) that
provides for the two organizations to jointly bid on major new
projects, finance the capital costs of new projects on which we
both work and share intellectual property. Subsequent to that
November 18 announcement, we expanded that strategic alliance with
yet another CSCEC owned company. We are continuing to build such
relationships with key State Owned Enterprise (SOE) primary
contractor clients for HSR and other infrastructure projects. This
reflects our growing stature in China's massive infrastructure
industry, and reinforces barriers to entry and provides greater
pricing power." With $38 billion in annual revenue, CSCEC is ranked
number 187 in the Fortune Global 500 list of companies.
"Looking ahead, the Chinese concrete industry is consolidating
through attrition of marginal players and increased regulatory
requirements favoring companies that can achieve scale and meet
increasingly stringent environmental standards. We see tremendous
strategic growth opportunities, both near and long term, and we are
actively pursuing them. In recent months, we have secured over $12
million in bank financing at an average 5.9 percent annual rate of
interest. Securing a prime commercial bank loan in China is an
important rite of passage for any company that is not a major State
Owned Enterprise."
"With GDP running at about nine percent, the Chinese economy
remains the world's growth engine. The country's accelerating trend
toward modernization, and urbanization, fuels the growth of our
infrastructure business for many years to come. I am confident that
we are on track for accelerated growth and record financial
performance in the second half of the fiscal year," Mr. Han
concluded.
Commenting on the quarter's results and outlook for the balance
of Fiscal Year 2011, China ACM President and Chief Financial
Officer Jeremy Goodwin, stated, "While we produced solid growth in
the second quarter, with the blended gross margin at 19.4 percent,
we expect meaningful margin improvements in the current quarter and
second half of the fiscal year as we move beyond the transition
phase of a number of HSR projects underway. We have six new HSR
plants coming on line. We are bidding and winning increasingly
longer term HSR manufacturing contracts to minimize project
transition time. I am confident we will expand HSR margins in the
second half to our customary levels approaching the 40 percent
range."
"Further, the third and subsequent quarters' margins will
benefit by our mid-second quarter termination of one leased
Concrete Sales fixed plant that had been underperforming. We plan
to redeploy those resources into high-margin portable plants to
support contracts in the Beijing area or for new HSR business in
outlying provinces. Additionally, Concrete Sales margins will
benefit from capturing the current, full quarter's 25 percent
average price increase, announced midway through the second fiscal
quarter, against costs that increased 20 percent at that time."
"Our diversified backlog has grown to a record $66.7 million
while the new business pipeline is a healthy $28.4 million. With
recently established strategic alliances with CSCEC, and others in
process, our new business development is becoming more efficient,
and leveraged, as we begin jointly bidding projects along with
major SOE contractors, some of whom will fund capital expenditures
for certain projects," Mr. Goodwin said. "Our balance sheet is
strong with $3.2 million in cash, $36.0 million in working capital
and no long term debt. Our accounts receivable is primarily
composed of large, highly creditworthy state owned
enterprises."
"Also in the second fiscal quarter, we launched our new
corporate website featuring major upgrades to content to provide
greater transparency for our shareholders and clients," he added.
"At the end of December 2010, we engaged Friedman LLP as our
independent auditor. They assisted in the preparation of this
second quarter's unaudited report. In the months ahead, we target
geographic expansion, joint ventures, strategic alliances and will
evaluate acquisitions -- all of which increases our requirement for
Friedman's world class financial management and reporting
expertise."
Backlog
China ACM reported that its December 31, 2010 backlog, or bids
in house, increased by 15% sequentially from September 30, 2010 to
a record $66.7 million. 83% of the Dec. 31 backlog is contracted
with Government State Owned Enterprise contractors and 17% is
contracted with private sector developers. The backlog is comprised
of $43.9 million in contracted unfilled orders for its Concrete
Sales segment, and $22.8 million in contracted unfilled order for
its Manufacturing Services segment. Based on its historical
experience, the Company's estimated time to convert these
contracted orders into recognized revenues averages between four
and 12 months for Concrete Sales, and six to 24 months for
Manufacturing Services, depending on the scope of the projects.
The Company's new business pipeline, or bids outstanding, which
is a measure of the value of bids it has submitted for Concrete
Sales and Manufacturing Services business, was $2.5 million and
$25.9 million, respectively, or $28.4 million total.
FY 2011 Second Quarter Results
Revenue. We generated second quarter Fiscal Year 2011 revenue of
$34.5 million compared to $26.2 million during the same period of
Fiscal Year 2010, an increase of $8.3 million, or 32%.
Our concrete sales revenue was $26.2 million for the second
quarter ended December 31, 2010, an increase of $5.9 million or
29%. The increase in revenues attributable to concrete sales was
principally due to higher prices and organic growth to include a
broader client base.
During the second quarter ended December 31, 2010, we continued
to supply concrete products to ten railway projects throughout
China through our portable plants, specifically the projects
located in Shaanxi Province, Hebei Province, Guangxi Province,
Zhejiang Province, Guangdong Province, Liaoning Province, and Anhui
Province. These ten projects contributed $7.1 million to our total
revenue for the quarter, an increase of $3.4 million, or 94%,
compared with the year-ago quarter.
In addition, revenue generated through our technical consulting
services was $1.2 million during the second quarter ended December
31, 2010, a decrease of 2% as compared to the same fiscal quarter
in 2009.
Gross Profit was $6.7 million for the second quarter ended
December 31, 2010, as compared to $5.2 for the second quarter ended
December 31, 2009. Our gross profit for sale of concrete was $3.4
million, or 13% of revenue, for the quarter, compared to $1.9
million, or 9% of revenue, for the same period last year, an
increase of $1.5 million. The higher gross margin for concrete
sales for the second quarter ended December 31, 2010, compared with
the same period in 2009, reflects higher demand and higher prices
for our concrete products in Beijing as compared to the same period
last year. More specifically, on November 15, 2010 we announced a
25% average price increase across our various concrete grade sales
to keep in line with an average raw material cost increase of
19.8%.
Selling, General and Administrative expenses were $2.6 million
for the three months ended December 31, 2010, an increase of $1.4
million or 128%, as compared to $1.2 million for the three months
ended December 31, 2009. The increase was principally due to an
increase in employment, salary and benefit and lease expenses
resulting from higher production and a larger base of operations
during the year, and professional and consulting expenses from
being a public company and resulting from our overall production
expansion during the year.
Net Income available to Common shareholders. Excluding the
effect from non-cash charges related to changes in fair market of
warrants, and stock and option-based compensation, our net income
available to Common shareholders would be $4.9 million for the
three months ended December 31, 2010, an increase of $0.6 million
or 14.5%, as compared to net income after cash dividends paid of
$4.3 million for the same period in 2009.
Six Month Results ended December 31, 2010
For the six months ended December 31, 2010, net revenues
increased by 43% to $65.5 million from $45.6 million in the
corresponding period of fiscal year 2010. Gross profit increased
27% in the first six months of fiscal year 2011 to $10.8 million
from approximately $8.5 million in the year-ago period. Gross
margin was 16.5% in the first half of fiscal year 2011. Adjusted
EBITDA grew by $2.5 million, or 26%, to $12.0 million from $9.6
million in the year-earlier period. Net income attributable to
common shareholders for the first six months of 2011, was $6.5
million, with diluted net earnings per share of $0.36. During the
2011 fiscal six months period, the Company recognized a non-cash
expense on the fair value of its warrants and options of $1.3
million and a non-cash stock-based compensation expense of $0.5
million. Non-GAAP adjusted net income attributable to common
shareholders for the first six months of FY 2011 increased by $1.5
million to $8.3 million, with non-GAAP diluted net earnings per
share of $0.46.
Balance Sheet Overview
China ACM had working capital of $36.0 million at December 31,
2010, including $3.2 million in cash and no long term debt.
Shareholders' equity was $70.3 million compared with $61.2 million
on June 30, 2010. The total number of shares outstanding as of
February 11, 2011 is 17,739,387.
Conference Call
The Company will host a corresponding conference call with a
live webcast and a full Q&A session today at 10:00 a.m. Eastern
time/7:00 a.m. Pacific time, to discuss these results and answer
questions.
Individuals interested in participating in the conference call
may do so by dialing 877-477-1461 from the United States, or
973-409-9694 from outside the United States and referencing
conference ID #41693975. Those interested in listening to the
conference call live via the Internet may do so by visiting the
Investor Relations section of the Company's Web site at
www.china-acm.com.
A telephone replay will be available through February 25, 2011,
by dialing 800-642-1687 from the United States, or 706-645-9291
from outside the United States, and entering conference ID
#41693975. A webcast replay will be available for 90 days.
About China ACM
China ACM is a leading producer of advanced, certified
eco-friendly ready-mix concrete (RMC) and related technical
services for large scale, high-speed rail (HSR) and other complex
infrastructure projects. Leveraging its proprietary technology and
value-add engineering services model, the Company has won work on
numerous high profile projects including the 30,000 km China HSR
expansion, the Olympic Stadium Bird's Nest, Beijing South Railway
Station, Beijing International Airport, National Centre for
Performing Arts, CCTV Headquarters, Beijing Yintai Building and
U.S. and French embassies.
Founded in 2002, Beijing-based China ACM provides its materials
and services through its network of fixed ready-mix concrete plants
covering the Beijing metropolitan area. It also has technical
consulting services and preferred procurement agreements with other
independently-owned plants across China. Additionally, the Company
owns numerous portable plants deployed in various provinces across
China primarily to major high speed rail projects. More information
about the Company is available at www.china-acm.com.
Use of Non-GAAP Financial Measures
The Company makes reference to Non-GAAP financial measures in
portions of "Management's Discussion of Financial Condition and
Results of Operations". Management believes that investors may find
it useful to review our financial results that exclude the non-cash
expense of $1,722,339 for the six months ended December 31, 2010 on
option and stock-based compensation along with the change in fair
value of warrants liability, shown in the below chart, due to the
adoption of Financial Accounting Standards Board's ("FASB")
Accounting Standards Codification ("ASC") 815, "Derivatives and
Hedging," accounting standard as discussed in the section
"Derivative Liability" below.
Management believes that these Non-GAAP financial measures are
useful to investors in that they provide supplemental information
to possibly better understand the underlying business trends and
operating performance of the Company. The Company uses these
Non-GAAP financial measures to evaluate operating performance.
However, Non-GAAP financial measures should not be considered as an
alternative to net income or any other performance measures derived
in accordance with GAAP.
Three Months Ended
December 31,
Increase
2010 2009 (Decrease)
(Unaudited)
Net Income (Loss) -GAAP $ 3,231,989 $ 7,945,081 $(4,713,092)
Subtract:
Dividends and accretion on
redeemable convertible
preferred stock $ - $ 318,835 $ (318,835)
------------ ----------- -----------
Net Income available to Common
shareholders -GAAP $ 3,231,989 $ 7,626,246 $(4,394,257)
------------ ----------- -----------
Add Back (Subtract):
Change in fair value of
warrants $ 1,414,408 $(3,356,796) $4,771,204
------------ ----------- -----------
Add Back (Subtract):
Change in Option and Equity
Based Compensation $ 283,887 $ 38,534 $ 245,353
------------ ----------- -----------
Adjusted Net Income available to
Common shareholders -non-GAAP $ 4,930,284 $ 4,307,984 $ 622,300
------------ ----------- -----------
Basic earning per share - GAAP $ 0.18 $ 0.62 $ (0.44)
Add back (Subtract):
Change in fair value of
warrant $ 0.08 $ (0.27) $ 0.35
------------ ----------- -----------
Add back (Subtract):
Change in Option and
Equity-Based Compensation $ 0.02 $ 0.00 $ 0.02
------------ ----------- -----------
Adjusted basic earning per share
non-GAAP $ 0.28 $ 0.35 $ (0.07)
------------ ----------- -----------
Diluted earning per share-GAAP $ 0.18 $ 0.50 $ (0.32)
Add back (Subtract):
Change in fair value of
warrant $ 0.08 (a) $ (0.21) $ 0.29
------------ ----------- -----------
Add back (Subtract):
Change in Option and
Equity-Based Compensation $ 0.01 (b) $ 0.00 $ (0.01)
------------ ----------- -----------
Adjusted diluted earning per
share non-GAAP $ 0.27 $ 0.29 $ (0.02)
------------ ----------- -----------
Weighted average number of
shares
Basic 17,651,620 12,377,182 5,274,438
============ ===========
Diluted 18,202,555 15,955,516 2,247,039
============ ===========
Six Months Ended
December 31,
Increase
2010 2009 (Decrease)
(Unaudited)
Net Income (Loss) -GAAP $ 6,540,309 $ 3,422,144 $ 3,118,165
Subtract:
Dividends and accretion on
redeemable convertible
preferred stock $ - $ 659,699 $ (659,699)
------------ ------------ -----------
Net Income available to Common
shareholders -GAAP $ 6,540,309 $ 2,762,445 $ 3,777,864
------------ ------------ -----------
Add Back (Subtract):
Change in fair value of
warrants $ 1,260,150 $ 3,916,645 $(2,656,495)
------------ ------------ -----------
Add Back (Subtract):
Change in Option and Equity
Based Compensation $ 462,189 $ 120,778 $ 341,411
------------ ------------ -----------
Adjusted Net Income available to
Common shareholders -non-GAAP $ 8,262,648 $ 6,799,868 $ 1,462,780
------------ --- ------------ -----------
Basic earning per share - GAAP $ 0.37 $ 0.24 $ 0.13
Add back (Subtract):
Change in fair value of
warrant $ 0.07 $ 0.34 $ (0.27)
------------ ------------ -----------
Add back (Subtract):
Change in Option and
Equity-Based Compensation $ 0.03 $ 0.01 $ 0.02
------------ ------------ -----------
Adjusted basic earning per share
non-GAAP $ 0.47 $ 0.59 $ (0.12)
------------ ------------ -----------
Diluted earning per share-GAAP $ 0.36 $ 0.22 $ 0.14
Add back (Subtract):
Change in fair value of
warrant $ 0.07 (a) $ 0.25 $ (0.18)
------------ ------------ -----------
Add back (Subtract):
Change in Option and
Equity-Based Compensation $ 0.03 (b) $ 0.01 $ 0.02
------------ ------------ -----------
Adjusted diluted earning per
share non-GAAP $ 0.46 $ 0.48 $ (0.02)
------------ ------------ -----------
Weighted average number of
shares
Basic 17,585,082 11,681,294
============ ============
Diluted 18,067,924 15,624,782
============ ============
(a) The Company adopted the provisions of FASB ASC 815, which
provides guidance with respect to determining whether an instrument
(or embedded feature) is indexed to an entity's own stock. As a
result of adopting this accounting standard, warrants previously
treated as equity pursuant to the derivative treatment exemption
are no longer afforded equity treatment because the warrants have a
downward ratchet provision on the exercise price. As a result, the
warrants are not considered indexed to the Company's own stock, and
as such, all future changes in the fair value of these warrants
will be recognized currently in earnings until such time as the
warrants are exercised or expired. Effective July 1, 2009, the
Company reclassified the fair value of these warrants from equity
to liability, as if these warrants were treated as a derivative
liability since their issuance in June 2008. The Company recognized
a $1,414,408 charge from the change in fair value for the three
months ended December 31, 2010.
(b) The Company records stock-based compensation expense
pursuant to FASB's accounting standard regarding stock compensation
which requires companies to measure compensation cost for
stock-based employee compensation plans at fair value at the grant
date and recognize the expense over the employee's requisite
service period. Under ASC 718, "Compensation-Stock Compensation,"
the Company's expected volatility assumption is based on the
historical volatility of Company's stock or the expected volatility
of similar entities. The expected life assumption is primarily
based on historical exercise patterns and employee post-vesting
termination behavior. The risk-free interest rate for the expected
term of the option is based on the U.S. Treasury yield curve in
effect at the time of grant. For the six months ended December 31,
2010 and 2009, the Company recognized $462,189 and $57,382 of
restricted stock as compensation expense. For the six months ended
December 31, 2010 and 2009, the Company recognized $0 and $63,396,
respectively, as compensation expenses for its stock option
plan.
Forward-Looking Statements
This press release contains statements that are forward-looking
in nature, including statements regarding the Company's competitive
position and product and service offerings. These statements are
based on current expectations on the date of this press release and
involve a number of risks and uncertainties, which may cause actual
results to differ significantly from such estimates. The risks
include, but are not limited to, the degree of market adoption of
the Company's product and service offerings; market competition;
dependence on strategic partners; and the Company's ability to
manage its business effectively in a rapidly evolving market.
Certain of these and other risks are set forth in more detail in
"Item 1A. Risk Factors" in China ACM's Annual Report on Form 10-K
for the fiscal year ended June 30, 2010. China ACM does not assume
any obligation to update or revise any such forward-looking
statements, whether as the result of new developments or
otherwise.
CHINA ADVANCED CONSTRUCTION MATERIALS GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
December 31, June 30,
ASSETS 2010 2010
------------- -------------
CURRENT ASSETS:
Cash $ 3,153,149 $ 3,300,820
Restricted cash - 57,580
Accounts receivable, net of allowance for
doubtful accounts of $1,159,148 62,491,063 36,072,691
and $456,085, respectively
Inventories 2,443,336 2,164,769
Investment 11,947,960 -
Other receivables 3,607,624 1,416,653
Prepayments 3,795,404 2,821,687
------------- -------------
Total current assets 87,438,536 45,834,200
------------- -------------
PROPERTY, PLANT AND EQUIPMENT, net 28,707,245 26,488,354
------------- -------------
OTHER ASSETS:
Accounts receivable, net of allowance for
doubtful accounts of $0 and $4,607 respectively - 364,371
Deferred tax assets - 127,741
Advances on equipment purchases 5,806,104 8,382,383
Prepayments 3,655,754 4,414,391
------------- -------------
Total other assets 9,461,858 13,288,886
------------- -------------
Total assets $ 125,607,639 $ 85,611,440
============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short term loans, banks $ 14,367,800 $ -
Accounts payable 30,336,112 16,473,080
Customer deposits 857,323 711,219
Other payables 387,318 329,136
Other payables - shareholders 767,370 772,644
Accrued liabilities 1,899,288 1,652,751
Taxes payable 2,863,330 1,569,914
------------- -------------
Total current liabilities 51,478,541 21,508,744
OTHER LIABILITIES
Warrants liability 3,805,755 2,920,520
------------- -------------
Total liabilities 55,284,296 24,429,264
------------- -------------
Commitments and contingencies
SHAREHOLDERS' EQUITY:
Common stock, $0.001 par value, 74,000,000
shares authorized, 17,726,887 and 17,467,104
shares issued and outstanding as of December
31 and June 30, 2010, respectively 17,727 17,467
Paid-in-capital 34,557,606 33,720,762
Retained earnings 25,563,396 19,912,444
Statutory reserves 5,400,877 4,511,520
Accumulated other comprehensive income 4,783,737 3,019,983
------------- -------------
Total shareholders' equity 70,323,343 61,182,176
------------- -------------
Total liabilities and shareholders' equity $ 125,607,639 $ 85,611,440
============= =============
CHINA ADVANCED CONSTRUCTION MATERIALS GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(UNAUDITED)
For the three months ended For the six months ended
December 31, December 31,
2010 2009 2010 2009
------------ ------------ ------------ ------------
REVENUE
Sales of concrete $ 26,205,792 $ 20,316,502 $ 51,526,739 $ 35,203,259
Manufacturing
services 7,108,447 3,663,114 11,580,224 6,468,728
Technical services 1,207,396 1,234,760 2,366,456 2,479,655
Other 4,311 949,936 9,609 1,493,806
------------ ------------ ------------ ------------
Total revenue 34,525,946 26,164,312 65,483,028 45,645,448
------------ ------------ ------------ ------------
COST OF REVENUE
Concrete 22,835,629 18,453,296 46,344,312 32,790,012
Manufacturing
services 4,913,916 2,063,646 8,131,041 3,820,813
Technical services 94,291 81,516 200,301 135,999
Other - 331,228 - 376,962
------------ ------------ ------------ ------------
Total cost of
revenue 27,843,836 20,929,686 54,675,654 37,123,786
------------ ------------ ------------ ------------
GROSS PROFIT 6,682,110 5,234,626 10,807,374 8,521,662
SELLING, GENERAL
AND ADMINISTRATIVE
EXPENSES 2,632,218 1,157,250 4,826,007 2,052,281
------------ ------------ ------------ ------------
INCOME FROM
OPERATIONS 4,049,892 4,077,376 5,981,367 6,469,381
------------ ------------ ------------ ------------
OTHER INCOME
(EXPENSE), NET
Other subsidy
income 1,998,855 1,323,515 3,786,418 2,290,287
Realized gain from
sales of
marketable
securities - 27,008 - 27,008
Non-operating
(expense), net (357,201) (29,325) (187,974) (78,528)
Change in fair
value of warrants
liability (1,414,408) 3,356,796 (1,260,150) (3,916,645)
Interest income 157,220 1,524 162,149 3,021
Interest expense (224,136) - (237,042) (23,753)
------------ ------------ ------------ ------------
TOTAL OTHER INCOME
(EXPENSE), NET 160,330 4,679,518 2,263,401 (1,698,610)
------------ ------------ ------------ ------------
INCOME BEFORE
PROVISION FOR
INCOME TAXES 4,210,222 8,756,894 8,244,768 4,770,771
PROVISION FOR
INCOME TAXES 978,233 811,813 1,704,459 1,348,627
------------ ------------ ------------ ------------
NET INCOME 3,231,989 7,945,081 6,540,309 3,422,144
DIVIDENDS AND
ACCRETION ON
REDEEMABLE
CONVERTIBLE
PREFERRED STOCK - 318,835 - 659,699
------------ ------------ ------------ ------------
NET INCOME
AVAILABLE TO
COMMON
SHAREHOLDERS 3,231,989 7,626,246 6,540,309 2,762,445
------------ ------------ ------------ ------------
COMPREHENSIVE
INCOME:
Net Income 3,231,989 7,945,081 6,540,309 3,422,144
Foreign currency
translation
adjustment 693,572 (17,663) 1,763,754 (80,094)
------------ ------------ ------------ ------------
COMPREHENSIVE
INCOME $ 3,925,561 $ 7,927,418 $ 8,304,063 $ 3,342,050
============ ============ ============ ============
EARNINGS PER COMMON
SHARE ALLOCATED TO
COMMON
SHAREHOLDERS
Weighted average
number of shares:
Basic 17,651,620 12,377,182 17,585,082 11,681,294
============ ============ ============ ============
Diluted 18,202,555 15,955,516 18,067,924 15,624,782
============ ============ ============ ============
Earnings per
share:
Basic $ 0.18 $ 0.62 $ 0.37 $ 0.24
============ ============ ============ ============
Diluted $ 0.18 $ 0.50 $ 0.36 $ 0.22
============ ============ ============ ============
CHINA ADVANCED CONSTRUCTION MATERIALS GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
For the six months ended
December 31,
2010 2009
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 6,540,309 $ 3,422,144
Adjustments to reconcile net income to cash
provided by (used in) operating activities:
Depreciation 1,819,065 1,387,883
Stock-based compensation expense 462,189 120,778
Deferred tax provision 129,354 -
Provision for (recovery) of allowance for
doubtful accounts 676,697 (129,354)
Change in fair value of warrants liability 1,260,150 3,916,645
Loss realized from disposal of property,
plant, and equipment 252,727 -
Realized gain on sale of marketable
securities - (27,008)
Changes in operating assets and liabilities
Accounts receivable (25,411,159) (19,737,549)
Notes receivable - (3,502)
Inventories (217,625) (664,483)
Other receivables (2,135,501) 2,011,537
Prepayments (886,350) (1,276,446)
Long term prepayment 864,656 (424,307)
Accounts payable 12,598,938 11,375,636
Customer deposits 125,331 462,849
Other payables 50,438 39,898
Accrued liabilities 202,793 896,045
Taxes payable 1,234,213 (314,895)
------------ ------------
Net cash (used in) provided by operating
activities (2,433,775) 1,055,871
------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of marketable securities - 78,207
Advances on equipment purchase - (80,462)
Proceeds from disposal of property, plant, and
equipment 742,242 -
Purchase of property, plant and equipment (890,859) (258,580)
Investment (11,880,800) -
------------ ------------
Net cash used in investing activities (12,029,417) (260,835)
------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from short term loan 12,285,820 146,284
Payments on short term loan (74,580) (4,502,287)
Rent payment to shareholder (5,775) (141,060)
Restricted cash 57,580 192,330
Proceeds from warrants exercised - 386,100
Proceeds from issuance of common stock, net of
offering costs - 1,497,242
Preferred dividends paid - (304,781)
------------ ------------
Net cash provided by (used in) financing
activities 12,263,045 (2,726,172)
------------ ------------
EFFECT OF EXCHANGE RATE CHANGE ON CASH 2,052,476 (7,330)
------------ ------------
NET DECREASE IN CASH (147,671) (1,938,466)
CASH, beginning of period 3,300,820 3,634,805
------------ ------------
CASH, end of period $ 3,153,149 $ 1,696,339
============ ============
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Contact Financial Profiles Tricia Ross (916) 939-7285
tross@finprofiles.com Financial Profiles Moira Conlon Tel: (310)
478-2700 x11 mconlon@finprofiles.com
China Advanced Constr Matls Group (MM) (NASDAQ:CADC)
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From Jun 2024 to Jul 2024
China Advanced Constr Matls Group (MM) (NASDAQ:CADC)
Historical Stock Chart
From Jul 2023 to Jul 2024
