China Gerui Advanced Materials Group Limited Announces Reclassification of Certain Items in Third Quarter 2011 Press Release

ZHENGZHOU, China, March 12, 2012 /PRNewswire-Asia-FirstCall/ -- On November 10, 2011, China Gerui Advanced Materials Group Limited (NASDAQ: CHOP) ("China Gerui," or the "Company") issued a press release regarding its third fiscal quarter of 2011.  After further discussion with the Company's independent registered public accounting firm, certain items relating to the Company's financial statements have been reclassified.  On the Consolidated Balance Sheets, the "Other Receivables" line item had formerly included $5 million which was attributable to a potential joint venture between the Company and a prospective partner.  These funds were deposited in a separate bank account by a related party for this purpose.  We have adjusted the presentation of these funds and they are now categorized in the line item "Deposit Potential Business Initiatives Program-Related Party".  We have also adjusted the Consolidated Statements of Cash Flows to properly classify these funds.  The original press release follows with corrected information in the financial statements and body of the press release indicated by bold italicized text.  Other than the noted changes, the financial results from the November 10, 2011 press release remain otherwise unchanged.

China Gerui Advanced Materials Group Limited Announces Record Third Quarter 2011 Results

ZHENGZHOU, ChinaNovember 10, 2011 – China Gerui Advanced Materials Group Limited (NASDAQ: CHOP) ("China Gerui," or the "Company"),  a leading high precision, cold-rolled strip steel producer in China, today announced unaudited financial results for the three and nine months ended September 30, 2011.

"We achieved a record increase in revenues in the third quarter and a substantial increase in operating profits resulting from our ability to meet further customer demand from the utilization of our new production capacities," said Mr. Mingwang Lu, Chairman and Chief Executive Officer. "Our third quarter saw a ramp-up in the utilization of our 400,000 tons of annual specialized steel production capacity, which included a substantial revenue contribution from our much-anticipated new wide-strip production line capable of annual volume of 150,000 tons. We are experiencing continued robust demand for both narrow and wide-strip cold-rolled steel products in China across a variety of industries. We believe that our new large-scale chromium-plating capacity and precision wide-strip cold-rolled steel products will enable an expansion in our operating margins in the quarters ahead."

"The final phase of our expansion plan will result in an additional 100,000 tons of cold-rolled steel per year by the fourth quarter of 2011," Mr. Lu continued.  "The addition of wide-strip production lines and chromium plating capacity better diversifies our capabilities which will enable us to optimize our production mix.   We plan to continue to capitalize upon our competitive advantage to meet the strong demand of the high growth domestic China market place." 

Third Quarter 2011 Results

Revenue increased 63.4% to $101.1 million in the third quarter of 2011 from $61.9 million in the third quarter of 2010.  The increase in revenue was primarily due to both a 25.5% increase in the Company's average selling price to $1,044 per ton for the third quarter of 2011 compared to $832 per ton for the same period of 2010, and an 30.7% increase in sales volume to approximately 97,185 tons for the third quarter of 2011 as compared to approximately 74,384 tons for the same period of 2010. 

Gross profit increased 72.7% to $32.1 million in the third quarter of 2011 from $18.6 million in the same period of 2010.  Gross margin was 31.7% in the third quarter of 2011 compared to 30.0% in the same period of 2010.  The increase in gross margin was due to the increase in utilization of both the new 150,000-ton wide-strip production line and the 200,000 tons in new chromium-plating capacity that were both added during the previous quarter.

Operating income increased 74.5% to $28.7 million in the third quarter of 2011, or 28.4% of revenue, from $16.5 million, or 26.6% of revenue in the same period of 2010.  The increase in operating margin is due to the increase in revenue from the aforementioned ramp-up in utilization of the two new production line capacities. 

Interest expenses decreased 42.9% to $0.6 million compared to $1.1 million in the prior year period.  The decrease in interest expenses was due to management's continued efforts to reduce leverage to solidify its balance sheet.

Net income increased 76.2% to $21.4 million in the third quarter of 2011 from $12.1 million in the same period of 2010.  Net income per diluted share in the third quarter of 2011 increased to $0.37 from $0.25 per diluted share in the same period of 2010, which factors in the significant increase of number of shares outstanding from the warrants exercised by March 21, 2011.

Adjusted EBITDA increased 80.0% to $31.6 million, or 31.3% of revenue, from $17.6 million, or 28.4% of revenue, in the same period of 2010.  Adjusted EBITDA is defined as earnings before interest, taxes, depreciation, amortization and one-time warrant exercise expenses incurred in the first quarter of 2011. The tables that follow this press release also include a presentation for adjusted EBITDA*.

Nine Months 2011 Results

Revenue increased 33.1% to $249.8 million for the first nine months ended September 30, 2011, from $187.7 million in the first nine months of 2010.  The increase in revenue was primarily due to both a 18.5% increase in the Company's average selling price to $992 per ton for the nine months of 2011 compared to $837 per ton for the same period of 2010, and a 12.2% increase in sales volume to approximately 251,752 tons for the nine months ended September 30, 2011 as compared to approximately 224,292 tons for the same period of 2010. 

Gross profit increased 30.6% to $73.6 million in the nine months ended September 30, 2011 from $56.4 million in the same period of 2010.  Gross margin was 29.5% in the first nine months of 2011 compared to 30.0% in the same period of 2010.  The slight decrease in gross margin was due to increased raw material costs incurred due to the testing of both the new chromium-plating line during the first nine months of 2011 and the new 150,000-ton wide-strip production line during the first nine months of the year.  Raw materials used for testing purposes were included in the cost of goods sold.

Operating income increased 18.9% to $59.6 million in the nine months ended September 30, 2011 from $50.1 million in the same period in 2010.  Operating margin was 23.9% in the first nine months of 2011 compared to 26.7% of revenue in the same period of 2010.  The decrease in operating margin is due to the aforementioned gross margin decrease and a one-time warrant exercise expense of $5.7 million.  Adjusted operating income, which excludes the aforementioned one-time warrant exercise expense, increased 30.4% to $65.3 million, or 26.1% of revenue, as compared to $50.1 million, or 26.7% of revenue. * 

Interest expenses increased 56.7% for the first nine months of 2011 to $5.4 million compared to $3.5 million in the prior comparable period.  The increase in interest expenses was due to an increased use of bank facilities in 2011.  

Net income increased 10.3% to $39.4 million for the first nine months of 2011 from $35.7 million in the same period of 2010.  Net income per diluted share for the first nine months of 2011 decreased to $0.71 from $0.77 per diluted share in the same period of 2010, which is primarily due to the increased number of shares outstanding from the warrants exercised by March 21, 2011.

Adjusted EBITDA increased 33.7% to $70.6 million for the first nine months of 2011, or 28.3% of revenue, from $52.9 million, or 28.2% of revenue, in the same period of 2010.  Adjusted EBITDA is defined as earnings before interest, taxes, depreciation, amortization and one-time warrant exercise expenses incurred in the first quarter of 2011. The tables that follow this press release also include a presentation for adjusted EBITDA*.

Financial Condition

As of September 30, 2011, the Company had $224.9 million in unrestricted cash and an additional $104.1 million in restricted cash, as compared to $119.5 million and $66.5 million, respectively, as of December 31, 2010. Working capital was $134.8 million as of September 30, 2011, compared to $66.7 million at the end of 2010. The Company's short-term debt consisted of notes payable and term loans that totaled $216.2 million as of September 30, 2011, compared to $130.3 million at the end of 2010.  Company has no long-term debt.  Shareholders' equity was $276.9 million, as compared to $167.8 million at the end of 2010.  The net cash provided by operating activities for the first nine months of 2011 was $47.9 million compared to net cash provided by operating activities of $19.0 million in the same period of 2010.

Recent Developments

Management acknowledges the recent challenging sentiment toward U.S. listed companies based in China and has taken the following steps to foster investor confidence in China Gerui and enhance transparency: 

  • In April 2011, the Company announced that its Board of Directors approved the repurchase of up to an aggregate of $10 million of its ordinary shares.  As of September 30, 2011, the Company had repurchased 1,122,752 ordinary shares at an average price of $3.85 per share for a total repurchase price of approximately $4.32 million
  • The Company will participate in the upcoming investor events later this month:

The Cowen and Company China Opportunity Conference

Date:

November 15, 2011

 

Location:

Beijing

 

 

Dahlman Rose & Co. 3rd Annual Global Metals, Mining and Materials Conference

Date:

November 17, 2011

 

Location:

New York

 

 

 

 

The China Gerui-Sponsored "Fireside Chat"

Date:

November 18, 2011, 12:00 pm

Location:

New York, 300 Madison Avenue, 3rd Floor

Dial-In:

For US and Canadian callers: (877) 850-5643

 

 

For International callers:        (404) 602-0888

 

 

Please dial-in 5-10 minutes prior to the event time and provide the conference code 5461705379.

 

 

Investors who wish to attend any of these events may contact the Company's investor relations U.S. representative, Vivian Chen, at vivian.chen@ccgir.com or +1 (310) 926-8038.

"Our active participation in investor conferences as well as our having initiated an opportunity for extended outreach is intended to strengthen our relationship and enhance transparency with investors as well as reinforce our commitment to maximizing long-term shareholder value," said Chairman Lu.

Business Outlook

The Company's capacity expansion plan is being implemented in two phases.  Phase I involved the construction of two new cold-rolled, wide-strip steel production lines with 150,000 tons of total annual capacity and a new chromium plating production line capable of processing an additional 200,000 tons of cold-rolled steel per year.  These lines began normal operations as of July 2011.  Phase II of the expansion plan involves the addition of 100,000 tons of cold-rolled steel production capacity per year by the first quarter of 2012.

Completion of Phase II of the Company's capacity expansion plan will raise the Company's total annual production capacity to a total of 500,000 tons of specialized steel of both wide- and narrow-strip cold-rolled steel production.  The Company's chromium plating production lines are fully operational and can accommodate a total of 250,000 tons of either narrow-strip or wide-strip specialized steel.  The Company expects an estimated 75% capacity utilization rate for the recently added 150,000 tons of annual wide-strip steel production capacity by the end of 2011.

Mr. Lu concluded, "The results of the Company's capacity expansion plan, as can be seen both in the third quarter and year-to-date results as well as the compelling year-to-year comparisons, is a result of the effective execution of our strategic growth plan.  We expect to experience margin improvements from our additional capacity through the remainder of 2011 as our value-added capabilities enable us to service an increasing number of industry sectors."   

For fiscal year 2011, China Gerui will maintain guidance of revenue between $330 million and $345 million, gross profit of between $115 million and $120 million, adjusted net income* of between $70 million and $75 million, and adjusted diluted earnings per share* of between $1.20 and $1.25.

(*) Adjusted operating income, adjusted net income, adjusted net income per diluted share, and adjusted EBITDA represent non-GAAP (United States Generally Accepted Accounting Principles) financial measures. See the tables following this press release for a reconciliation of these measures to the appropriate GAAP measures.

Conference Call Information

The Company will also host a conference call at 8:30 am ET on Thursday, November 10, 2011.  

Listeners may access the call by dialing +1 (866) 395-5819 five to ten minutes prior to the scheduled conference call time. International callers should dial +1 (706) 643-6986. The conference participant pass code is 23266724.

A replay of the conference call will be available for 14 days starting from 11:30 am ET on Thursday, November 10, 2011. To access the replay, dial +1 (855) 859-2056. International callers should dial +1 (404) 537-3406. The passcode is 23266724.

A live and archived webcast of the call will be available on the Company's website at http://www.geruigroup.com/Investors.html.  To listen to the live webcast, please go to the Company's website at least fifteen minutes prior to the start of the call to register, download and install any necessary audio software.

Use of Adjusted Financial Measures

This earnings release includes the use of adjusted operating income, adjusted net income, adjusted net income per share, adjusted EBITDA, which are financial measures that are not defined by US GAAP. For purposes of Regulation G, a non-GAAP financial measure is a numerical measure of a registrant's historical or future financial performance, financial position or cash flows that excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statement of income, balance sheet, or statement of cash flows (or equivalent statements) of the issuer; or includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented. In this regard, GAAP refers to generally accepted accounting principles in the United States. Pursuant to the requirements of Regulation G, the Company has included with this press release a table which includes a reconciliation of adjusted operating income, adjusted net income and adjusted net income per diluted share to net income and adjusted EBITDA to net income, the most directly comparable GAAP financial measures, respectively. Adjusted EBITDA was defined as earnings before interest, taxes, depreciation, amortization and one-time warrant exercise expenses incurred in the first quarter of 2011. Adjusted operating income, adjusted net income and adjusted net income per diluted share were calculated by excluding one-time warrant exercise expenses of $5.7 million from operating income, net income, and net income per diluted share, respectively. The Company's management believes that the presentation of these non-GAAP financial measures provides useful information regarding the Company's results of operations because it assists in analyzing and benchmarking the performance and value of the Company's business. The Company's calculation of adjusted EBITDA, adjusted operating income, adjusted net income, and adjusted net income per diluted share may not be consistent with similarly titled measures of other companies.

About China Gerui Advanced Materials Group Limited

China Gerui Advanced Materials Group Limited is a leading niche and high value-added steel processing company in China. The Company produces high-end, high-precision, ultra-thin, high- strength, cold-rolled steel products that are characterized by stringent performance and specification requirements that mandate a high degree of manufacturing and engineering expertise. China Gerui's products are not standardized commodity products. Instead, they are tailored to customers' requirements and subsequently incorporated into products manufactured for various applications. The Company sells its products to domestic Chinese customers in a diverse range of industries, including the food packaging, telecommunication, electrical appliance, and construction materials industries. For more information, please visit http://www.geruigroup.com.

Safe Harbor Statement

Certain of the statements made in this press release are "forward-looking statements" within the meaning and protections of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the actual results, performance, capital, ownership or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be forward-looking statements. You can identify these forward-looking statements through our use of words such as "may," "will," "anticipate," "assume," "should," "indicate," "would," "believe," "contemplate," "expect," "estimate," "continue," "plan," "point to," "project," "could," "intend," "target" and other similar words and expressions of the future.

All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in our annual report on Form 20-F for the year ended December 31, 2010 and otherwise in our SEC reports and filings, including the final prospectus for our offering.  Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC's Internet website at http://www.sec.gov. We have no obligation and do not undertake to update, revise or correct any of the forward-looking statements after the date hereof, or after the respective dates on which any such statements otherwise are made.

Company Contact:

Investor Relations Contact:             

Email: investors@geruigroup.com

CCG Investor Relations

Website: www.geruigroup.com

David Rudnick                                  

 

Phone: 1-646-626-4172    

 

Email: david.rudnick@ccgir.com

Financial tables to follow


CHINA GERUI ADVANCED MATERIALS GROUP LIMITED

 

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

 

 

(IN US DOLLARS)

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2011

 

December 31, 2010

 

(Unaudited)

 

 

Assets

 

 

 

 

 

 

 

Current assets

 

 

 

    Cash

$     224,875,795

 

$     119,477,298

    Restricted cash

104,148,635

 

66,530,303

    Accounts receivable, net

2,375,215

 

4,087,086

    Inventories

13,347,230

 

7,002,277

    Prepaid expenses and other deposits

58,859,730

 

28,749,680

    Deposit- potential business initiatives program-related party

5,000,000

 

-

    Other receivables

975,012

 

2,068,082

 

 

 

 

Total current assets

409,581,617

 

227,914,726

 

 

 

 

Non-current assets

 

 

 

    Property, plant and equipment, net

115,781,006

 

85,489,849

    Land use right, net

13,697,273

 

13,455,218

    Deposit on acquisition of future land use right

12,543,116

 

2,143,939

 

 

 

 

Total non-current assets

142,021,395

 

101,089,006

Total assets

$     551,603,012

 

$     329,003,732

 

 

 

 

Liabilities and stockholders' equity

 

 

 

 

 

 

 

Current Liabilities

 

 

 

    Accounts payable

$      12,209,969

 

$      2,650,689

    Notes payable

175,644,402

 

86,227,272

    Term loans

40,529,946

 

44,090,909

    Land use right payable

1,386,401

 

10,203,404

    Income tax payable

6,979,183

 

4,151,665

    Customers deposits

26,356,768

 

9,686,444

    Accrued liabilities and other payables

11,638,539

 

4,181,347

Total current liabilities

274,745,208

 

161,191,730

Total liabilities

274,745,208

 

161,191,730

 

 

 

 

 

 

 

 

Stockholders' equity

 

 

 

 

 

 

 

Common stock,

 

 

 

    Common stock, 100,000,000 shares authorized with no par value;

 

 

 

         59,428,578  and  46,139,053 shares issued,

 

 

 

         58,305,826 and 46,139,053 shares outstanding as of

 

 

 

        September 30, 2011 and December 31, 2010, respectively

140,418,118

 

73,944,243

    Additional paid-in capital

6,930,944

 

6,930,944

    Treasury stock, at cost, 1,122,752 shares, as of September 30, 2011,

 

 

 

        none as of December 31, 2010

(4,319,777)

 

-

    Retained earnings

118,951,361

 

79,522,406

    Accumulated other comprehensive income

14,877,158

 

7,414,409

 

 

 

 

Total stockholders' equity

276,857,804

 

167,812,002

 

 

 

 

Total liabilities and stockholders' equity

$     551,603,012

 

$     329,003,732


CHINA GERUI ADVANCED MATERIALS GROUP LIMITED

 

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

 

 

(IN US DOLLARS)

 

 

 

 

 

 

 

 

 

 

 For the Three Months 

 

 For the Nine Months

 

 

 Ended September 30,

 

  Ended September 30,

 

 

2011

 

2010

 

2011

 

2010

 

 

 

 

 

 

 

 

 

 Revenue

 

$   101,073,420

 

$  61,862,286

 

$   249,840,832

 

$  187,724,365

 

 

 

 

 

 

 

 

 

 Cost of revenue

 

(69,018,246)

 

(43,299,966)

 

(176,248,246)

 

(131,368,669)

 

 

 

 

 

 

 

 

 

 Gross Profit

 

32,055,174

 

18,562,320

 

73,592,586

 

56,355,696

 

 

 

 

 

 

 

 

 

 Operating expenses:

 

 

 

 

 

 

 

 

     General and administrative expenses

 

(2,750,140)

 

(1,866,067)

 

(7,143,095)

 

(5,373,275)

     Selling and marketing expenses

 

(602,364)

 

(245,156)

 

(1,161,862)

 

(880,707)

     Warrant compensation expenses

 

-

 

-

 

(5,700,000)

 

-

 Total operating expenses

 

(3,352,504)

 

(2,111,223)

 

(14,004,957)

 

(6,253,982)

 

 

 

 

 

 

 

 

 

 Operating income

 

28,702,670

 

16,451,097

 

59,587,629

 

50,101,714

 

 

 

 

 

 

 

 

 

 Other income and (expense):

 

 

 

 

 

 

 

 

     Interest income

 

425,824

 

274,446

 

1,371,553

 

653,927

     Interest expenses

 

(621,145)

 

(1,087,227)

 

(5,430,551)

 

(3,465,010)

     Sundry income

 

401,884

 

183,728

 

442,936

 

268,726

 

 

 

 

 

 

 

 

 

Income before income taxes

 

28,909,233

 

15,822,044

 

55,971,567

 

47,559,357

 

 

 

 

 

 

 

 

 

Income tax expense

 

(7,518,632)

 

(3,685,197)

 

(16,542,612)

 

(11,817,382)

 

 

 

 

 

 

 

 

 

Net income

 

$    21,390,601

 

$  12,136,847

 

$    39,428,955

 

$   35,741,975

 

 

 

 

 

 

 

 

 

Earnings per share

 

 

 

 

 

 

 

 

    - Basic

 

$         0.37

 

$       0.27

 

$         0.71

 

$        0.83

 

 

 

 

 

 

 

 

 

    - Diluted

 

$         0.37

 

$       0.25

 

$         0.71

 

$        0.77

 

 

 

 

 

 

 

 

 

    Weighted average common shares

 outstanding

 

 

 

 

 

 

 

 

    - Basic

 

58,428,146

 

45,425,681

 

55,623,129

 

43,292,881

 

 

 

 

 

 

 

 

 

    - Diluted

 

58,428,146

 

48,458,492

 

55,623,129

 

46,325,692

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CHINA GERUI ADVANCED MATERIALS GROUP LIMITED

 

 

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(IN US DOLLARS)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For The Nine Months

 

 

 

 

 

 

 

 

 Ended September 30,

 

 

 

 

 

 

 

 

2011

 

2010

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 

 

 

 

$        39,428,955

 

$        35,741,975

 

 

 

 

 

 

 

 

 

 

 

Adjustments to reconcile net income to net

 

 

 

 

 

    cash provided by operating activities:

 

 

 

 

 

 

Depreciation of property, plant and equipment

 

 

4,689,078

 

2,300,301

Amortization of land use right

 

 

 

240,661

 

182,150

 

 

 

 

 

 

 

 

 

 

 

Changes in assets and liabilities:

 

 

 

 

 

 

Accounts receivable, net

 

 

 

 

1,824,157

 

627,969

Inventories

 

 

 

 

 

(6,002,591)

 

(989,077)

Prepaid expenses and other deposits

 

 

 

(28,640,585)

 

(16,682,156)

Other receivables

 

 

 

 

1,121,774

 

372,427

Accounts payable

 

 

 

 

9,313,975

 

(3,362,275)

Income tax payable

 

 

 

 

2,639,637

 

(97,805)

Customers deposit

 

 

 

 

16,069,127

 

107,192

Accrued liabilities and other payables

 

 

 

7,193,894

 

772,275

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities

 

 

 

47,878,082

 

18,972,976

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

Cash paid for property, plant and equipment

 

 

(30,912,597)

 

(63,337,786)

Payment of purchases of land use right

 

 

 

(9,023,879)

 

(1,161,532)

Payment of acquisition of future land use right

 

 

(10,157,648)

 

(1,787,159)

Deposit- potential business initiatives program-related party

(5,000,000)

 

-

Changes in restricted cash

 

 

 

 

(34,731,906)

 

(35,597,837)

Changes in prepaid machinery deposits

 

 

 

-

 

13,973,966

 

 

 

 

 

 

 

 

 

 

 

Net cash used in investing activities

 

 

 

(89,826,030)

 

(87,910,348)

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

Repayment of term loans

 

 

 

 

(24,290,245)

 

(22,268,054)

Proceeds from term loans

 

 

 

 

12,457,400

 

45,001,623

Proceeds from notes payable, net

 

 

 

85,018,819

 

50,016,387

Proceeds received from exercise of warrants

 

 

66,473,875

 

25,436,393

Purchase of treasury stock

 

 

 

 

(4,319,777)

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by financing activities

 

 

 

135,340,072

 

98,186,349

 

 

 

 

 

 

 

 

 

 

 

Net increase in cash

 

 

 

 

93,392,124

 

29,248,977

 

 

 

 

 

 

 

 

 

 

 

Effect on change of exchange rates

 

 

 

12,006,373

 

1,848,948

 

 

 

 

 

 

 

 

 

 

 

Cash as of January 1,

 

 

 

 

119,477,298

 

79,607,369

 

 

 

 

 

 

 

 

 

 

 

Cash as of September 30,

 

 

 

 

$       224,875,795

 

$        110,705,294

 

 

 

 

 

 

 

 

 

 

 

Supplemental disclosures of cash flow information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash paid during the period for:

 

 

 

 

 

 

 

Interest paid

 

 

 

 

$          5,215,902

 

$            3,465,010

 

Income tax paid

 

 

 

 

$        13,902,975

 

$          11,989,894

Non-cash paid during the period for:

 

 

 

 

 

 

 

Acquisition of land use rights with issuance of promissory note

 

$              -

 

$        10,811,583

 

 

 

 

 

 

 

 

 

 

 

 

 

CHINA GERUI ADVANCED MATERIALS GROUP LIMITED

 

 

 

 

 

 

RECONCILIATION OF NON-GAAP FINANCIAL DATA

 

 

 

 

 

 

(IN US DOLLARS) (UNAUDITED)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non GAAP Operating Income

 

 

 Three Months Ended Sept. 30 

 

 Nine Months Ended Sept. 30 

 

 

2011

 

2010

 

2011

 

2010

 

 

 

 

 

 

 

 

 

 GAAP amount per consolidated 

 

 

 

 

 

 

 

 

 statement of income

 

28,702,670

 

16,451,097

 

59,587,629

 

50,101,714

 One-time warrant exercise expenses 

 

-

 

-

 

5,700,000

 

-

 Non GAAP Adjusted Operating Income 

 

28,702,670

 

16,451,097

 

65,287,629

 

50,101,714

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non GAAP Net Income

 

 

 Three Months Ended Sept. 30 

 

 Nine Months Ended Sept. 30 

 

 

2011

 

2010

 

2011

 

2010

 GAAP amount per consolidated 

 

 

 

 

 

 

 

 

 statement of income

 

21,390,601

 

12,136,847

 

39,428,955

 

35,741,975

 One-time warrant exercise expenses 

 

-

 

-

 

5,700,000

 

-

 Adjusted Amount 

 

21,390,601

 

12,136,847

 

45,128,955

 

35,741,975

 

 

 

 

 

 

 

 

 

 Weighted average shares - diluted 

 

58,428,146

 

48,458,492

 

55,623,129

 

46,325,692

 

 

 

 

 

 

 

 

 

 GAAP diluted earnings per share 

 

0.37

 

0.25

 

0.71

 

0.77

 Non GAAP Adjusted diluted earnings per share 

 

0.37

 

0.25

 

0.81

 

0.77

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non GAAP Adjusted EBITDA

 

 

 Three Months Ended Sept. 30 

 

 Nine Months Ended Sept. 30 

 

 

2011

 

2010

 

2011

 

2010

 GAAP amount per consolidated 

 

 

 

 

 

 

 

 

  statement of income 

 

21,390,601

 

12,136,847

 

39,428,955

 

35,741,975

 One-time warrant exercise expenses 

 

-

 

-

 

5,700,000

 

-

 Interest income 

 

(425,824)

 

(274,446)

 

(1,371,553)

 

(653,927)

 Interest expenses 

 

621,145

 

1,087,227

 

5,430,551

 

3,465,010

 Income tax expense 

 

7,518,632

 

3,685,197

 

16,542,612

 

11,817,382

 Depreciation of property, plant and equipment 

 

2,415,803

 

842,185

 

4,689,078

 

2,300,301

 Amortization of land use right 

 

81,273

 

76,153

 

240,661

 

182,150

 Non GAAP Adjusted EBITDA 

 

31,601,630

 

17,553,163

 

70,660,305

 

52,852,891

 

 

SOURCE China Gerui Advanced Materials Group Limited



RELATED LINKS
http://www.geruigroup.com

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