Other News Releases in Chemical
LyondellBasell Statement on Reliance Industries
Veridiam Wins Workplace Excellence Crystal Award in Mid-Size Company Category
Goodyear Assurance Fuel Max Tires Selected for 2010 Toyota Prius
Other News Releases in Earnings
Escalon(R) Reports First Quarter Fiscal 2010 Results
Electronic Game Card, Inc. Files 10-Q for Period Ending September 30, 2009
Wolverine Tube Reports 2009 Third Quarter Results
Journalists and Bloggers
Visit PR Newswire for Journalists for releases, photos, ProfNet experts, and customized feeds just for Media.
View and download archived video content distributed by MultiVu on The Digital Center.
See more news releases in: Chemical, Mining & Metals, Earnings, Earnings Forecasts & Projections
ShengdaTech, Inc. Announces Third Quarter 2009 Results
Third Quarter 2009 Highlights
-- NPCC revenue for the third quarter of 2009 was $25.4 million relatively
unchanged from the third quarter of 2008
-- NPCC gross profit decreased 6.7% to $10.1 million, NPCC gross margin
decreased to 39.7% from 42.3% in the third quarter of 2008
-- EBITDA (Earnings before Interest, Taxes, Depreciation, and Amortization)
for the third quarter of 2009 was $9.2 million (See Table 4)
-- Net income, all from NPCC, was $4.6 million, or $0.09 per diluted share
-- Executive team is now based at the Company's new world headquarters in
Shanghai
-- New NPCC facility in Zibo, Shandong Province, commenced production of
Phase I with 60,000 metric tons ("MT") in capacity
-- Signed agreement to acquire Anhui Chaodong Nanomaterials Science and
Technology Co., Ltd. ("Chaodong"), an inactive NPCC facility in Hanshan
County, Anhui Province, with 10,000 MT of annual NPCC production
capacity
-- Entered into an investment agreement with the Hanshan County government
to add 200,000 MT of additional production capacity to Chaodong's
existing NPCC facility in several stages over the next four years
Third Quarter 2009 Results
"The third quarter of 2009 marked an important period for ShengdaTech, as
we successfully implemented our NPCC expansion strategy with the acquisition
of Chaodong in
Total revenue for the third quarter of 2009 declined 48.5% to
Revenue from the NPCC business decreased 0.6% to
NPCC for use in tires and PVC represented 34.7% and 25.3% of the Company's NPCC sales for the quarter, respectively. NPCC used in PE accounted for 18.5% of NPCC revenue. Sales from the NPCC products for use in adhesives and latex were 12.2% of total NPCC revenue during the third quarter. NPCC used in ink, paper, paint, and automobile underbody coatings combined to generate 9.3% of NPCC revenue.
The Company's gross profit for the third quarter of 2009, all of which was
derived from NPCC products, was
Selling expenses for the third quarter of 2009, all of which were
attributable to NPCC products, were
General and administrative (G&A) expenses were
Operating income for the third quarter of 2009, all of which was derived
from the NPCC segment, was
Interest expense, related primarily to the Company's convertible notes
issued in May and
Income tax expense was
EBITDA (Earnings before Interest, Taxes, Depreciation, and Amortization),
all of which was derived from the NPCC segment, for the third quarter of 2009
was
Net income, almost all of which was derived from the NPCC segment, in the
third quarter of 2009 was
Nine Months Results
Total revenue for the first nine months of 2009 declined 38.5% to
Financial Condition
As of
Recent Events
On
In November, the Company announced that the Bureau of Commerce of
In connection with the acquisition, the Company entered into a contract
with the Hanshan County government to expand Chaodong's existing NPCC facility
by adding another 200,000 metric tons of production capacity with a total
investment commitment, of approximately
Business Outlook
ShengdaTech has commenced production at the Company's newly constructed
Phase I NPCC facility in Zibo,
"With the Chaodong acquisition, we have now successfully established our
presence in the Yangtze River Delta, a vital economic region in
Conference Call
ShengdaTech will host a conference call at
About ShengdaTech, Inc.
ShengdaTech is engaged in the business of manufacturing, marketing and
selling nano-precipitated calcium carbonate ("NPCC") products. The Company
converts limestone into NPCC using its proprietary and patent-protected
technology. ShengdaTech is the only company possessing proprietary NPCC
technology in
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995:
Certain statements in this press release constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. These statements include, without limitation, statements regarding the Company's ability to resume operations at Chaodong and expand its manufacturing capacity, ability to win new customers in the Yangtze River Delta, 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, which may include, but are not limited to, such factors as unanticipated changes in product demand especially in the tire industry, changes in composition of tires, the Company's ability to meet the planned expansion schedule for its NPCC capacity, the Company's ability to identify acquisition targets, changes to government regulations, risk associated with operation of the Company's new manufacturing facility, ability to attract new customers, ability to increase its product's applications, ability of its customers to sell products, cost of raw material, 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. You are urged to consider these factors care 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.
For further information, please contact:
ShengdaTech, Inc.
Andrew Chen, Chief Financial Officer
Tel: +86-21-5835-8738
Email: andrew.chen@shengdatech.com
Web: http://www.shengdatechinc.com
CCG Investor Relations
Crocker Coulson, President
Tel: +1-646-213-1915
Email: crocker.coulson@ccgir.com
Web: http://www.ccgirasia.com
TABLE 1
SHENGDATECH, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
For the Three Months Ended For the Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
As adjusted (1) As adjusted(1)
Net sales $25,376,060 $49,253,207 $72,362,743 $117,651,564
Cost of goods sold 15,295,481 32,512,083 42,408,918 76,201,700
Gross profit 10,080,579 16,741,124 29,953,825 41,449,864
Operating expenses:
Selling 549,177 855,348 1,397,013 1,944,138
General and
administrative 1,419,015 1,050,037 4,278,407 2,930,824
Total operating
expenses 1,968,192 1,905,385 5,675,420 4,874,962
Operating income 8,112,387 14,835,739 24,278,405 36,574,902
Other income
(expense):
Interest income 62,716 77,039 628,941 149,896
Interest expense (2,822,212) (3,541,740) (7,626,124) (4,619,918)
Gain on
extinguishment of
long-term
convertible notes -- -- 1,624,844 --
Other expense, net (161,872) (107,866) (221,702) (121,408)
Other expense, net (2,921,368) (3,572,567) (5,594,041) (4,591,430)
Earnings before
income taxes 5,191,019 11,263,172 18,684,364 31,983,472
Income tax expense 560,608 2,098,768 2,536,216 5,582,965
Net income $4,630,411 $9,164,404 $16,148,148 $26,400,507
Earnings per share:
Basic $0.09 $0.17 $0.30 $0.49
Diluted $0.09 $0.17 $0.30 $0.49
Weighted average
shares outstanding:
Basic 54,202,036 54,202,036 54,202,036 54,202,036
Diluted 54,207,742 68,335,041 54,204,109 60,513,076
(1) Adjusted for the required retrospective adoption of Financial
Accounting Standards Board ("FASB") Accounting Standards Codification
("ASC") subtopic 470-20.
TABLE 2
SHENGDATECH, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
September 30, December 31,
2009 2008
As adjusted (1)
ASSETS
Current assets:
Cash $105,459,582 $114,287,073
Accounts receivable 7,061,032 6,806,066
Inventories 1,735,111 2,647,424
Prepaid expenses and other
receivables 4,574,099 510,825
Income tax refund receivable 969,116 --
Current deferred income tax assets 1,107,111 --
Total current assets 120,906,051 124,251,388
Property, plant and equipment, net 121,272,186 100,122,522
Land use rights 15,511,000 15,710,333
Debt issuance costs 2,021,732 3,096,073
Deferred income tax assets 665,801 502,793
Other Assets 116,025
Total assets $260,492,795 $243,683,109
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $4,106,423 $4,493,551
Accrued expenses and other payables 5,351,456 4,227,184
Income taxes payable -- 1,092,116
Due to related parties 2,136,124 1,737,404
Total current liabilities 11,594,003 11,550,255
Long-term convertible notes 77,723,192 77,926,310
Non-current income taxes payable 1,717,640 1,268,108
Deferred income tax liabilities 5,529,760 5,890,055
Total liabilities 96,564,595 96,634,728
Shareholders' equity:
Preferred Stock, par value $0.00001
authorized:10,000,000 outstanding:
Nil -- --
Common Stock, par value $0.00001
authorized:100,000,000 issued and
outstanding: 54,202,036 542 542
Additional paid-in capital 38,617,782 38,304,541
Statutory reserves 8,130,601 8,130,601
Retained earnings 103,373,041 87,224,893
Accumulated other comprehensive
income 13,806,234 13,387,804
Total shareholders' equity 163,928,200 147,048,381
Commitments and contingencies
Total liabilities and shareholders'
equity $260,492,795 $243,683,109
(1) Adjusted for the required retrospective adoption of FASB ASC subtopic
470-20.
TABLE 3
SHENGDATECH, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Nine Months Ended
September 30,
2009 2008
As restated and
adjusted (2)
Cash flows from operating activities:
Net income $16,148,148 $26,400,507
Adjustments to reconcile net income
to net cash provided by
operating activities:
Depreciation 3,184,802 4,419,395
Land use rights expense 237,306 31,174
Amortization of debt issuance costs 916,232 496,135
Amortization of debt discount 4,115,580 1,832,529
Gain on extinguishment of long-term
convertible notes (1,624,844) --
Share-based compensation 20,172 43,825
Deferred income tax benefit (1,337,346) (728,142)
Changes in operating assets and
liabilities:
Accounts receivable (238,270) (2,754,437)
Inventories 918,081 (4,246,881)
Prepaid expenses and other
receivables (4,060,110) (10,499)
Due to related parties 3,904 (434,111)
Accounts payable (225,606) (336,644)
Accrued expenses and other payables 1,115,318 3,043,878
Income taxes payable/refund
receivable (2,060,209) 2,447,254
Non-current income taxes payable 446,133 --
Net cash provided by operating
activities 17,559,291 30,203,983
Cash flows from investing activities:
Purchase for property, plant and
equipment, including interest
capitalized (23,856,337) (20,267,859)
Payment for land use rights -- (14,939,604)
Net cash used in investing activities (23,856,337) (35,207,463)
Cash flows from financing activities:
Extinguishment of long-term
convertible notes (2,535,745) --
Proceeds from issuance of long-term
convertible notes -- 115,000,000
Payment of debt issuance costs -- (5,828,136)
Net cash (used in) provided by
financing activities (2,535,745) 109,171,864
Effect of exchange rate changes on
cash 5,300 1,905,224
Net (decrease) increase in cash (8,827,491) 106,073,608
Cash at beginning of period 114,287,073 26,366,568
Cash at end of period $105,459,582 $132,440,176
Non-cash investing activities:
Accounts payable for purchase of
property, plant and equipment $1,614,378 $3,128,305
Due to related parties for
purchase of property, plant and
equipment $1,360,314 $965,835
Supplemental disclosures of cash flow
information:
Cash paid for income taxes $5,484,883 $4,536,420
Cash paid for interest, net of
capitalized interest $1,175,628 --
(2) As restated to correct errors in the classification of cash flows and
adjusted for the required retrospective adoption of FASB ASC subtopic
470-20. For the nine-month period ended September 30, 2008, the effect
of the errors was to decrease cash flows provided by operating
activities by $4,287,695, decrease cash used in investing activities
by $3,704,417 and increase cash flow provided by financing activities
by $583,278.
TABLE 4
SHENGDATECH, INC. AND SUBSIDIARIES Reconciliation of Net Income to EBITDA
(Amounts expressed in United States dollars)
Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
Net Income 4,630,411 9,164,404 16,148,148 26,400,507
Income Tax 560,608 2,098,768 2,536,216 5,582,965
Interest expense, net 2,759,496 3,464,701 6,997,183 4,470,022
Depreciation and
amortization 1,224,759 2,779,030 3,422,108 4,450,569
EBITDA 9,175,274 17,506,903 29,103,655 40,904,063
YoY Growth -47.6% -28.8%
Note: EBITDA is a financial measure that is not defined by US GAAP. EBITDA
was derived by calculating earnings before interest, taxes,
depreciation, and amortization. The Company's management believes
that the presentation of EBITDA provides useful information
regarding ShengdaTech's results of operations because it assists in
analyzing and benchmarking the performance and value of
ShengdaTech's business. The Company's calculation of EBITDA may not
be consistent with similarly titled measures of other companies. The
table above provides a reconciliation of EBITDA to net income, the
most comparable GAAP measure.
SOURCE About ShengdaTech, Inc.