China ACM Announces Preliminary Q3 FY11 Results and Q3 Reporting Date
May 05 2011 - 3:01PM
Marketwired
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 preliminary results of
its Fiscal Year 2011 third quarter ended March 31, 2011.
China ACM will release complete financial results for the
quarter on Friday, May 13, 2011. The Company will host a conference
call with a live webcast and a full Q&A session on Friday, May
13 at 10:00 a.m. Eastern time/7:00 a.m. Pacific time, to discuss
those results. Details are provided below.
China ACM's third quarter results were impacted by slow holiday
plant activity in its Concrete Sales Division during the Chinese
New Year holidays, higher new plant start-up expenses, and delays
in its Manufacturing Services Division. Based on these factors, the
Company expects to report third quarter revenue of approximately
$23 million and GAAP Net Income Available to Common Shareholders of
between $3.3 million and $3.6 million, or $0.18 to $0.20 per share
on a fully diluted basis. Included in these results is income from
the change in fair value of warrants liability of approximately
$1.4 million and a non-cash expense of approximately $300,000 for
equity based compensation.
"The March quarter is always our seasonally weakest quarter,
however, our 2011 third quarter was weaker than usual for a couple
of reasons," said Jeremy Goodwin, China ACM President and Chief
Financial Officer. "First, we faced increased margin pressure in
our Manufacturing Services Division as we incurred higher ramp-up
costs associated with delays in putting several new portable plants
into service and higher ramp-down costs associated with delays in
decommissioning plants nearing project service completion due to
the leadership transition in China's Railway Ministry, which
impacted many companies in the High Speed Rail sector during the
quarter. Second, we experienced rising fuel and labor costs. We
were able to offset some of these margin declines with margin
improvements in our concrete sales segment, but not enough to
compensate for the shortfall as the month of February generated
only a fraction of our normal production levels throughout our
entire production network due to the extensive Chinese New Year
holiday season during the month of February."
Q3-FY11Report and Conference Call
Individuals interested in participating in the Q3-FY11 conference
call and Q&A session may do so by dialing 877-941-8609 from the
United States, or 480-629-9692 from outside the United States and
referencing conference ID #4438159. 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 May
20, 2011, by dialing 800-406-7325 from the United States, or
303-590-3030: from outside the United States, and entering
conference ID #4438159. 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.
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.
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Contact Financial Profiles Tricia Ross (916) 939-7285
tross@finprofiles.com Financial Profiles Moira Conlon Tel: (310)
478-2700 mconlon@finprofiles.com
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