Asia Carbon Industries, Inc. Reports Record Financial Results Sales Up 65%, Net Income Increases 123% Compared to 2010
NEW YORK, March 30, 2012 /PRNewswire-Asia/ -- Asia Carbon Industries, Inc. ("Asia Carbon", or the "Company") today announced its earnings for the year ended December 31, 2011. The Company, whose shares trade in the U.S. under the stock symbol "ACRB", filed its annual report on Form 10-K with the Securities and Exchange Commission on March 29, 2012.
Highlights of 2011 Financials
- Revenues for the year increased 65% to $49,122,044 from $29,686,876 for 2010
- Net income for 2011 was $7,311,281, more than double the $3,273,857 reported in 2010
- Earnings per share were at $0.14 for the year, compared to $0.07 for 2010
Sales for 2011 totaled $49,122,044, an increase of $19,435,168 or 65%, compared to $29,686,876 for 2010. Increases in the metric tons sold accounted for approximately 86% of increase in sales, and the remaining 14% increase in sales was attributable to the increase of unit sales price. The average sales price of Asia Carbon products was $989 per metric ton during 2011, an increase of $95 per ton, or 11%, from $894 per ton during 2010.
The Company's total carbon black production capacity was 61,000 and 35,000 tons per annum as of December 31, 2011 and 2010, respectively. The production/total capacity utilization rate was 78% and 92% during 2011 and 2010, respectively. Asia Carbon sold 49,683 metric tons of carbon black and naphthalene oil, an increase of 16,478 metric tons, or 50%, compared to 33,205 metric tons in 2010.
Comparison of Sales for the Years Ended December 31, 2011 and 2010
Net income was $7,311,281 in 2011, an increase of $4,037,424, or 123%, compared to $3,273,857 in 2010. Net income per share was $0.14 in 2011, and increase of $0.07, or 100%, compared to $0.07 in 2010. Increase in net income resulted from our new production capacity and improved gross margin rate.
Yao Guoyun, Asia Carbon's Chairwoman of the Board and Chief Executive Officer, commented, "I'm pleased to report our financial results for the year. Management's decision to expand our wet production capabilities was prudent as borne out by our performance."
Ms. Guoyun went on to say, "Demand for our products remains strong and we plan to add manufacturing capacity to our infrastructure in order to meet anticipated market needs. The Company has also begun the groundwork for the construction of an on-site power plant. Completion of this project is expected by year-end and will provide us with better control over the availability and cost of electricity to run our operation."
ASIA CARBON INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AT DECEMBER 31,
Cash and equivalents
Accounts receivable, net
Total Current Assets
Property, Plant and Equipment, Net
Idle assets, net
Land use rights, net
Total Other Assets
LIABILITIES AND STOCKHOLDERS' EQUITY
Short term debt
Investor deposit payable
Due to shareholder
Total Current Liabilities
Common stock, $0.001 par value, 100,000,000 authorized, 50,978,580 and 50,608,077 issued and outstanding at December 31, 2011 and 2010, respectively
Additional paid-in capital
Accumulated other comprehensive income
Total Stockholders' Equity
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
ASIA CARBON INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
YEARS ENDED DECEMBER 31,
Cost of Sales
Income From Operations
Other Income and (Expense)
Total Other Income and (Expense)
Income Before Provision for Income Tax
Provision for Income Tax
Other Comprehensive Income - foreign currency translation
Earnings Per Share - Basic
Weighted Average Shares Outstanding - Basic
Earnings Per Share - Diluted
Weighted Average Shares Outstanding - Diluted
About Asia Carbon Industries, Inc.
Asia Carbon Industries Inc. is an emerging, China-based producer of a series of high quality carbon black products under the brand name "Great Double Star." The Company was established in 2003 in Shanxi, China's highest coal producing province. Asia Carbon is one of the top ten carbon black producers in the province and has established relationships with a high-profile customer base. The Company went public in 2010 through a registration statement filed with the Securities and Exchange Commission (SEC) on Form S-1 which was declared effective by the SEC on October 26, 2010, and is currently in the process of expanding its manufacturing capacity to meet the anticipated demand.
This release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such State.
The above news release contains forward-looking statements. The statements contained in this document that are not statements of historical fact, including but not limited to, statements identified by the use of terms such as "anticipate," "appear," "believe," "could," "estimate," "expect," "hope," "indicate," "intend," "likely," "may," "might," "plan," "potential," "project," "seek," "should," "will," "would," and other variations or negative expressions of these terms, including statements related to expected market trends and the Company's performance, are all "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties. These statements are based on assumptions that management believes are reasonable based on currently available information, and include statements regarding the intent, belief or current expectations of the Company and its management. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performances, and are subject to a wide range of external factors, uncertainties, business risks, and other risks identified in filings made by the company with the Securities and Exchange Commission. Actual results may differ materially from those indicated by such forward-looking statements. The Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statement contained herein to reflect any change in the company's expectations with regard thereto or any change in events, conditions or circumstances upon which any statement is based.
Asia Carbon Industries, Inc.
Michael Segal, Director
SOURCE Asia Carbon Industries, Inc.