-- Q3 2009 revenues increased 18.8% to $27.1 million vs. Q3 2008. -- Non-GAAP Q3 2009 net income increased 83.4% to $3.8 million vs. Q3 2008. -- Non-GAAP Q3 2009 earnings per share were $0.29. -- Nine-months 2009 revenues increased 19.9% to $91.5 million, non-GAAP net income increased 51.9% to $12.3 million, with $1.08 in non-GAAP earnings per share. (*) Non-GAAP calculation excluded value of unrealized warrants.
Third Quarter Financial Results
Net revenues for the third quarter ended
Cost of goods sold were
Total operating expenses for the third quarter of 2009 were
Non-GAAP net income was
"We have been pleased with the financial result in our business for this
quarter and the improving trends in key operating metrics we have witnessed
this year," opened
Nine-Months Ended September, 30, 2009
According to the September, 2009 China Business Update -- AutoStatistics
("CBU"), a total of 9.66 million vehicles were sold in
-- 5.06 million passenger cars, a 60.4 % increase from a year ago -- 2.18 million Multi Purpose Vehicles (MPV), Sport Utility vehicles (SUV) and Mini Vans (MV), a 41.2% increase from a year ago -- 2.42 million commercial vehicles, a 15.6% increase from a year ago
During 2009, the Chinese automotive market became the largest in the world in terms of production and sales as all segments, including passenger cars, SUVs/MPVs/MPs, and commercial vehicles, exhibited double digit growth year over year.
For the first nine months ended
Non-GAAP earnings before interest and taxes were
Non-GAAP net income for the nine month period ended
The Company is reporting non-GAAP operating and net income as a result of
the non-cash warrant loss of
"We believe that the nine months of 2009 gives a strong representation of
our capabilities as a valued added supplier to the market," stated CEO,
Duanxiang Zhang, of Tongxin International. "As domestic demand and the effects
of the stimulus packages including the latest subsidy program announced on
Balance Sheet and Cash Flow Discussion
As of
Company Announcements Tongxin is planning a number of events in the coming months. November 19-20, 2009 - Brean Murray Investment Conference December 4, 2009 - 2009 Annual Shareholders Meeting - Shanghai
Q3 2009 Earnings Conference Call
To attend the call, please use the dial information below. When prompted, ask for the "Tongxin International Conference Call" and/or be prepared to provide the conference ID. Details of the conference call are noted below:
Date: November, 10th 2009
Time: 10:00am ET
Conference Line Dial-In (U.S.): 1-877-941-4776
International Dial-In: +1-480-629-9762
Conference ID: 4182012
Webcast link: http://viavid.net/dce.aspx?sid=00006CE2
Please dial in at least 10-minutes before the call to ensure timely
participation. A playback will be available through
About Tongxin International Ltd.
Tongxin International Ltd., the largest independent supplier of EVBS in
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: COMPANY: Mr. Rudy Wilson, CEO Tel: +1-248-593-8330 Email: rudy@txicint.com Ms. Jackie Chang, CFO Tel: +1-626-660-7117 China: +86-13467553808 Email: jackie@txicint.com Web: http://www.txicint.com INVESTOR RELATIONS: HC International, Inc. John Mattio, SVP Tel: +1-203-616-5144 (U.S.) Email: john.mattio@hcinternational.net Web: http://www.hcinternational.net TONGXIN INTERNATIONAL, LTD. CONSOLIDATED BALANCE SHEETS AS OF SEPTEMBER 30, 2009 AND DECEMBER 31, 2008 (US$ amounts expressed in thousands, except for share data and earnings per share) 30-Sep-09 31-Dec-08 (Unaudited) (Audited) ASSETS Current assets: Cash and cash equivalents $12,414 $11,313 Restricted cash - security deposit 5,572 5,836 Accounts receivable -trade, net of allowance for doubtful accounts 14,771 13,153 Other receivable- net of allowance for doubtful accounts 846 1,600 Due from related party 15,527 17,313 Notes receivable 3,613 -- Inventories 24,752 19,096 Investment in marketable securities 73 146 Prepaid expenses 10,041 4,197 Deferred income tax 1,940 2,067 Total current assets 89,549 74,721 Investment in non-consolidated subsidiaries and affiliates 208 208 Property, plant and equipment, net of depreciation 41,891 36,918 Land occupancy rights 9,115 9,633 Goodwill 19,296 36,696 $160,149 $158,176 TOTAL ASSETS LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $26,855 $21,037 Accrued expenses and other liabilities 2,692 7,393 Income tax payable 3,952 17,418 Short-term loans 25,839 16,669 Short-term loans from shareholders -- 8,591 Warrant liabilities 18,065 452 Total current liabilities 77,403 71,560 Long-term liabilities: Long-term loans -- 4,523 Deferred income tax 2,244 2,243 Other -- 25 Total liabilities 79,647 78,351 Stockholders' equity: Preferred Stock, $0.001 par value, authorized 1,000,000 shares; none issued -- -- Common stock - $0.001 par value, authorized 39,000,000 shares; issued 13,898,107 shares and outstanding 12,308,685 shares 14 13 Additional paid-in capital 85,953 77,081 Treasury stock, 1,589,422 shares (7,682) (7,682) Accumulated other comprehensive income 1,335 426 Retained earnings 882 9,987 Total stockholders' equity 80,502 79,825 $160,149 $158,176 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2009 AND 2008 AND NINE MONTHS ENDED SEPTEMBER 30, 2009 AND 2008 (US$ amounts expressed in thousands, except for share data and earnings per share) Three Months Ended Nine Months Ended September 30, 2009 September 30 2009, 2009 2008 2009 2008 (unaudited) (unaudited) (unaudited) (unaudited) Revenue $27,149 $22,849 $91,510 $76,328 Cost of goods sold (19,137) (18,468) (67,202) (59,713) Gross profit 8,012 4,381 24,308 16,615 Operating expenses: Selling, general and administrative expenses (2,946) (1,493) (7,052) (4,698) Operating income 5,066 2,888 17,256 11,917 Other income: Unrealized warrant gain/(loss) (10,837) 151 (16,995) 373 Warrant expense (3,831) -- (3,831) -- Interest expenses (74) (437) (1,176) (1,667) Income before income taxes (9,676) 2,602 (4,746) 10,623 Income taxes (1,222) (521) (4,360) (2,498) GAAP Net income (loss) $(10,898) $2,081 $(9,106) $8,125 Non-GAAP Net Income * $3,816 $2,081 $12,338 $8,125 Comprehensive income (loss) (9,989) 2,081 (8,197) 8,125 Non ¨C GAAP Net income per common share-basic * 0.33 0.19 1.08 0.73 Non-GAAP Net income per common share-diluted * 0.29 0.16 1.08 0.63 Weighted average shares outstanding ¨C basic 11,649,143 11,205,270 11,417,883 11,205,270 Weighted average shares outstanding ¨C diluted 13,067,271 12,925,932 11,417,883 12,925,932 * Non-GAAP income excluded effects of non-cash unrealized warrant gain TONGXIN INTERNATIONAL, LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2009 AND TWELVE MONTHS ENDED DECEMBER 31, 2008 (US$ amounts expressed in thousands) FOR THE NINE FOR THE TWELVE MONTHS ENDED MONTHS ENDED SEPTEMBER 30 DECEMBER 31 2009 2008 (unaudited) (audited) Cash flows from operating activities: Net (loss) income $(9,106) $20,486 Adjustments to reconcile net (loss) income to net cash provided by operating activities: Reversal of bad debt allowance -- (944) Depreciation expense 1,204 2,828 Amortization expense 518 54 Deferred income taxes 127 Unrealized gain on warrant 17,613 (13,535) Warrant expense Changes in operating assets and liabilities: 3,831 (Increase)/decrease in inventories (5,656) (5,112) (Increase)/decrease in trade accounts / notes receivable (5,231) 11,453 (Increase)/decrease in due from related party 1,786 (1,724) (Increase)/decrease of prepaid expenses and other current assets (5,507) (1,275) (Increase)/decrease in deferred income tax -- 192 (Increase)/decrease in other receivable 754 2 Increase/(decrease) in accounts payable 5,818 967 Increase/(decrease) of accrued expenses and other liabilities (766) (943) Net cash provided by operating activities 5,385 12,449 Cash flows from investing activities: Acquisition of Hunan Tongxin Enterprise Co. Ltd., net of cash acquired of $5,319 -- (7,700) Cash paid for purchase of fixed assets and intangible assets (6,267) (9,493) Cash paid for investment -- (75) Net cash used in investing activities (6,267) (17,268) Cash flows from financing activities: Proceeds from loans 17,449 23,649 Proceeds from warrant redemption 5,042 Proceeds from loans - related parties 0 9,894 Debt repayments (12,827) (23,444) Debt repayments-related parties (8,591) (16,425) Net cash (used in) provided by financing activities 1,073 (6,326) Effect of foreign exchange rate changes 909 199 Net increase (decrease) in cash and cash equivalents 1,101 9,651 Cash and cash equivalents at beginning of year 11,313 1,662 Cash and cash equivalents at end of year 12,414 11,313 Supplemental information: Income taxes paid 1,570 2,843 Interest paid 1,176 2,702
SOURCE Tongxin International Ltd.