CHANGSHA, China, Nov. 18 /PRNewswire-Asia-FirstCall/ -- Tongxin
International Ltd. (Nasdaq: TXIC), a China-based manufacturer of engineered
commercial vehicle body structures ("EVBS" or "Truck Cabs") and stamped body
parts, is clarifying its capital structure to current and prospective
investors in response to questions posed during the Company's third quarter
earnings conference call. Management is also reaffirming its 2009 revenue
guidance of $120 million and $14.7 million in net income.
As reported in the Company's 2008 20-F filing on May 18, 2009, the capital
structure was as follows:
HT Management Common Shares (Restricted) 6,500,000
AAAC Management Common Shares (Restricted) 1,149,000
Public Common Shares (Float) 3,651,336
Total Common Shares 11,300,336
Warrants 5,022,742
TOTAL SHARES 16,323,078
The Company's 5,022,742 warrants issued at the time of the IPO carry a
strike price of $5.00. The warrants are redeemable in an "all or none option"
should the Company's stock price close at or above $10.00 for 20 out of 30
trading days. Warrants expire on April 11, 2011.
As of September 30th, the Company reported 1,008,349 warrants have been
converted into common shares by investors in 2009. The balance of warrants
outstanding, 4,014,393, if converted will yield the Company approximately,
$20.1 million in proceeds.
As of September 30, 2009, the Company capital structure used in its third
quarter 2009 6-K report was the following:
Management Shares - HNTX and AAAC (Restricted) 7,649,000
Public Common Shares (Float) 4,659,685
Total Common Shares 12,308,685
Warrants 4,014,393
TOTAL SHARES 16,323,078
For the period ended September 30, 2009, Tongxin reported a total of
11,649,143 weighted average shares outstanding and 13,067,271 weighted average
fully diluted shares outstanding. For the nine month period ended September 30,
2009 Tongxin reported 11,417,883 million weighted basic and fully-diluted
shares outstanding. These share counts were utilized to calculate the
Company's reported results on September 30, 2009. Due to the non-cash effect
on the Company's reported GAAP financial results, Tongxin International
believes that non-GAAP earnings and non-GAAP net income results more
adequately reflect the Company's operational performance.
For the Three Months For the Nine Months
Ended September 30th, Ended September 30th,
2009 2009
GAAP Net Income ($10,898) ($9,106)
Non-GAAP Net Income** $3,816 $12.338
Non-GAAP Basic EPS** $0.33 $1.08
Non-GAAP EPS - Diluted ** $0.29 $1.08
** Non-GAAP numbers exclude the unrealized, non-cash, loss associated with
the value of the Company's warrants and warrant expense. Unrealized warrant
loss for the three and nine month period ended September 30, were ($10,882,247)
and ($17,612,722) respectively. Warrant expense for the three month and nine
month period ended September 30, 2009, was ($3,831,164). In the Company's 6-K,
unrealized warrant losses were grouped with the "Other Income" line item on
the Company's statement of operations.
Tongxin International also provided additional details about the Company's
2009 guidance of $120 million in revenues and $14.7 million in net income on
the Conference Call. Tongxin International reaffirmed both guidance numbers on
the call and anticipates a strong fourth quarter for the 2009 year. From an
operating basis, the Company anticipates earnings to be above previous issued
guidance, however, expenses related to ongoing SOX costs, completion of the
Company's ERP system and additional staff hires planned for the fourth quarter
may offset incremental net income beyond the Company's guided net income of
$14.7 for the full year 2009.
About Tongxin International Ltd.
Tongxin International Ltd., the largest independent supplier of EVBS in
China, is capable of providing EVBS for both the commercial truck and light
vehicle market segments. The Company also designs, fabricates and tests dies
used in the vehicle body structure manufacturing process. EVBS consists of
exterior body panels including doors, floor pans, hoods, side panels and
fenders. Tongxin maintains a network of 130 customers throughout 20 provinces
in China. Headquartered in Changsha, Tongxin also maintains regional
manufacturing in Dali, Ziyang and Zhucheng.
FORWARD LOOKING STATEMENTS
Statements contained in this press release, which are not historical fact,
constitute "Forward-Looking Statements." Actual results may differ materially
due to numerous important factors that are described in Tongxin
International's most recent report to the SEC on Form 6-K, which may be
revised or supplemented in subsequent reports to the SEC. Such factors include,
among others, the cost and timing of implementing restructuring actions, the
Company's ability to generate cost savings or manufacturing efficiencies to
offset or exceed contractually or competitively required price reductions or
price reductions to obtain new business, conditions in the automotive industry,
and certain global and regional economic conditions. Tongxin International
does not intend or assume any obligation to update any forward-looking
statement to reflect events or circumstances after the date of this press
release.
For more information, please contact:
For the Company:
Ms. Jackie Chang
Tongxin International
Tel: +1-626-660-7117
China: +86-134-6755-3808
Email: jackie@txicint.com
Web: http://www.txicint.com
Investor Relations:
John Mattio
HC International, Inc.
Tel: +1-203-616-5144 (U.S.)
Email: john.mattio@hcinternational.net
Web: http://www.hcinternational.net
SOURCE Tongxin International Ltd.