Second Quarter Fiscal Year 2010 Highlights -- Net revenue increases 23.06% to $19.16 million year over year -- (*)Adjusted net income increases 42.47% to $2.96 million year over year -- Gross margin increases to 22.09% from 17.31% year over year First Half Fiscal Year 2010 Highlights -- Net revenue increases 16.25% to $31.41 million year over year -- (**)Adjusted net income increases 28.85% to $4.86 million year over year -- Gross margin increases to 21.99% from 17.65% year over year
"We are very pleased to announce an outstanding quarter of growth in revenue, gross margin, and adjusted net income," said Mr. RongYang, chairman and chief executive officer of CHNC. "With the Chinese government's strong support to improve infrastructure construction, we are confident that our performance will continue to be strong in the coming quarters."
Summary Financials Second Quarter Fiscal Year 2010 Results (In million) other than EPS Q2 FY2010 Q2 FY2009 Change (Unaudited) (Unaudited) Net Revenue $ 19.16 $ 15.57 +23.06% Gross Profit $ 4.23 $ 2.69 +57.03% GAAP Net Income (Loss) $ (24.47) $ 2.08 -1,279.07% Adjusted Net Income (*)$ 2.96 $ 2.08 +42.47% GAAP EPS (Basic and Diluted) $ (3.72) $ 1.49 -349.42% Adjusted EPS (Basic and Diluted) (*)$ 0.45 $ 1.49 -70.11% (*)Adjusted Net Income and Adjusted EPS in the second quarter fiscal year 2010 are non-GAAP calculations and do not include non-cash, stock-based compensation charges of $27.42 million, related mainly to the "Make Good" provision of the October 2009 financing agreement.
Net revenue for the second quarter of fiscal year 2010 was
Gross profit for the second quarter of fiscal year 2010 was
Selling, general and administrative (SG&A) expenses for the second quarter
of fiscal year 2010 were
Operating loss for the second quarter of fiscal year 2010 was
GAAP net loss for the second quarter of fiscal year 2010 was
Adjusted net income, excluding equity compensation expenses of
First Half Fiscal Year 2010 Results First Half First Half (In million) other than EPS FY2010 FY2009 Change (Unaudited) (Unaudited) Net Revenue $ 31.41 $ 27.02 +16.25% Gross Profit $ 6.91 $ 4.77 +44.83% GAAP Net Income (Loss) (**)$ (22.56) $ 3.77 -697.78% Adjusted Net Income $ 4.86 $ 3.77 +28.85% GAAP EPS (Basic and Diluted) (**)$ (5.60) $ 2.91 -292.30% Adjusted EPS (Basic and Diluted) $ 1.21 $ 2.91 -58.55% (**) Adjusted Net Income and Adjusted EPS in the first half fiscal year 2010 is non-GAAP calculations and do not include non-cash, stock-based compensation charges of $27.42 million, related mainly to the "Make Good" provision of an October 2009 financing agreement.
Net revenue for the first half of fiscal year 2010 was
Gross profit for the first half of fiscal year 2010 was
Selling, general and administrative (SG&A) expenses for the first half of
fiscal year 2010 were
Operating loss for the first half of fiscal year 2010 was
GAAP net loss for the first half of fiscal year 2010 was
Adjusted net income, excluding equity compensation expenses of
Financial Condition
As of
Net cash used in operating activities for the six months ended
Business Outlook
Mr. Yang concluded, "Looking forward, we are very confident that we are
very well prepared to embrace the opportunities that the fast growing
About China Infrastructure Construction Corporation
CHNC was founded in 2002 in
Beijing Concrete is also a leader in
All of CHNC's products have passed the ISO9001-2005 Certification Quality System and Integrated Certification System including Quality Management System Certification, Environmental Management System Certification and Occupational Health and Safety Management System Certification issued by Beijing Zhong Jian Xie Certification Centre.
Its major projects include the Beijing World Trade Central Business District project, and the Beijing Wanjing International Mansion.
Use of Non-GAAP Financial Measures
GAAP results for three and six months ended
Because these expenses are non-cash, and not related to the Company's operating results, the Company believes that the non-GAAP information is useful to supplement the Company's condensed consolidated financial statements. A reconciliation of the adjustments to GAAP results appears in the table accompanying this press release. This additional non-GAAP information is not meant to be considered as a substitute for GAAP financials. The non-GAAP financial information that the Company provides also may differ from the non-GAAP information provided by other companies.
Forward-looking Statements
Certain statements made in this news release, may contain forward-looking statements concerning the Company's business and products. These statements include, without limitation, statements regarding our ability to prepare the Company for growth, the Company's planned capacity expansion and predictions and guidance relating to the Company's future financial performance. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs, but they involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These factors may include, but are not limited to, such factors as unanticipated changes in product demand especially in the infrastructure construction industry, pricing and demand trends for the Company's products, changes to government regulations, risk associated with operation of the Company's new facilities, risk associated with large-scale implementation of the Company's business plan, the ability to attract new customers, ability to increase its products' applications, cost of raw materials, downturns in the Chinese economy, and other information detailed from time to time in the Company's filings and future filings with the United States Securities and Exchange Commission. Investors are urged to consider these factors carefully in evaluating the forward-looking statements herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by this cautionary statement. The forward-looking statements made herein speak only as of the date of this press release and the Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations.
CHINA INFRASTRUCTURE CONSTRUCTION CORPORATION CONSOLIDATED BALANCE SHEETS AS OF NOVEMBER 30, 2009 AND MAY 31, 2009 November 30, 2009 May 31, 2009 (UNAUDITED) Assets Current assets Cash and cash equivalents $ 6,503,129 $ 921,841 Restricted cash 158,089 -- Trade accounts receivable, net 37,640,167 26,438,106 Inventories 1,167,568 885,834 Total current assets 45,468,953 28,245,781 Property, plant and equipment, net 7,932,999 5,649,835 Other receivables 1,413,083 270,819 Related party receivables 163,458 674,289 Total other assets 1,576,541 945,108 Total assets $ 54,978,493 $ 34,840,724 Liabilities and equity Current liabilities Trade accounts payable $ 12,535,381 $ 10,173,765 Related party payable 344,030 564,419 Other payables 2,547,072 1,730,290 Current portion of capital lease obligations 568,178 -- Accrued expenses 359,351 277,329 Bank loan payable 1,465,000 -- Total current liabilities 17,819,012 12,745,803 Long-term liabilities Long-term portion of capital lease obligations 981,737 -- Other payables - long-term 521,676 -- Total long-term liabilities 1,503,413 -- Total liabilities 19,322,425 12,745,803 Stockholders' equity Preferred stock, no par value; 10,000,000 shares authorized; no shares issued and outstanding -- -- Common stock: no par value; 100,000,000 shares authorized; 11,528,429 and 1,529,550 shares issued and outstanding as of November 30, 2009 and May 31, 2009 37,424,511 1,396,644 Retained earnings (deficit) (4,803,953) 17,755,631 Accumulated other comprehensive income 1,550,245 1,731,951 Total China Infrastructure Construction Corporation stockholders' equity 34,170,803 20,884,226 Noncontrolling interests 1,485,265 1,210,695 Total liabilities and equity $ 54,978,493 $ 34,840,724 CHINA INFRASTRUCTURE CONSTRUCTION CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) FOR THE THREE AND SIX MONTHS ENDED NOVEMBER 30, 2009 AND 2008 (UNAUDITED) THREE MONTHS ENDED SIX MONTHS ENDED NOVEMBER 30, NOVEMBER 30, 2009 2008 2009 2008 Net Revenue $ 19,155,132 $15,565,149 $ 31,410,860 $27,020,125 Cost of goods sold 14,923,975 12,870,609 24,504,167 22,251,323 Gross profit 4,231,157 2,694,540 6,906,693 4,768,802 Operating expenses: Selling, general and administrative expenses 28,525,492 499,476 29,183,485 764,588 Net operating income (loss) (24,294,335) 2,195,064 (22,276,792) 4,004,214 Other income (expense): Interest income (expense) (3,183) 258 (3,655) 943 Other income (expense) 5,196 288 4,996 (12,266) Total other income (expense) 2,013 546 1,341 (11,323) Net income (loss) before income taxes (24,292,322) 2,195,610 (22,275,451) 3,992,891 Income taxes -- -- -- -- Net income (loss) (24,292,322) 2,195,610 (22,275,451) 3,992,891 Less: Net income attributable to noncontrolling interests 173,666 120,590 284,134 219,004 Net income (loss) attributable to China Infrastructure Construction Corporation $ (24,465,988) $ 2,075,020 $ (22,559,585) $ 3,773,887 Earnings (loss) per share - basic and diluted $ (3.72) $ 1.49 $ (5.60) $ 2.91 Basic and diluted weighted average shares outstanding 6,578,625 1,390,400 4,026,345 1,295,200 Comprehensive income Net income (loss) (24,292,322) 2,195,610 (22,275,451) 3,992,891 Foreign currency translation adjustment (195,131) 17,087 (191,269) 151,863 Comprehensive income (loss) $ (24,487,453) $ 2,212,697 $ (22,466,720) $ 4,144,754 Comprehensive income attributable to non-controlling interests $ 163,893 $ 121,444 $ 274,571 $ 226,597 Comprehensive income (loss) attributable to China Infrastructure Construction Corporation $ (24,651,346) $ 2,091,253 $ (22,741,291) $ 3,918,157 CHINA INFRASTRUCTURE CONSTRUCTION CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED NOVEMBER 30, 2009 AND 2008 (UNAUDITED) November 30, 2009 2008 Cash flows from operating activities: Net income (loss) $ (22,275,451) $ 3,992,891 Adjustments to reconcile net income (loss) to net cash used in operations: Depreciation 548,431 428,309 Shares issued for compensation 27,422,242 -- Changes in operating liabilities and assets: Trade accounts receivable (11,186,190) (7,810,510) Prepayments -- 149,847 Inventories (281,126) 464,598 Other receivables (1,064,571) (1,470,035) Trade accounts payable 2,353,912 2,498,816 Other payables 738,976 1,584,832 Accrued expenses 81,826 (30,501) Customer deposits VAT tax payable Net cash used in operating activities (3,661,951) (191,753) Cash flows from investing activities: Fixed assets additions (754,827) (47,580) Payments to related party receivable (163,458) -- Net cash used in investing activities (918,285) (47,580) Cash flows from financing activities: Shares issued for cash 8,605,625 -- Restricted cash (158,089) -- Bank loan payable 1,466,200 -- Proceeds from related party payable 237,278 -- Payment to related party payable -- (136,586) Net cash provided by (used in) financing activities 10,151,014 (136,586) Effect of rate changes on cash 10,510 10,056 Increase (decrease) in cash and cash equivalents 5,581,288 (365,863) Cash and cash equivalents, beginning of period 921,841 865,601 Cash and cash equivalents, end of period $ 6,503,129 $ 499,738 Supplemental disclosures of cash flow information: Interest paid in cash $ -- $ -- Income taxes paid in cash $ -- $ -- Non-cash investing activities Acquisition of plant and equipment through other payable $ 2,073,287 $ -- Related party receivable offset by payable to related party payable $ 674,289 $ --
SOURCE China Infrastructure Construction Corp.