China LianDi Reports Financial Results for First Nine Months of FY2010; Provides Guidance
-- Nine-month fiscal year 2010 revenues increased 456% to $45.6 million and net income increased 1312% to $11.3 million
-- Fiscal 2010 Guidance: Revenues expected to increase 124% YOY to $70.2 million while net income increased 113% of $15.1 million
-- Fiscal 2011 Guidance: Revenues expected to increase 66% YOY to $117 million while net income increased 63% of $24.6 million
BEIJING, March 5 /PRNewswire-Asia-FirstCall/ -- China LianDi Clean Technology Engineering Ltd. (OTC Bulletin Board: RMSI), ("China LianDi" or "the Company"), a leading provider of clean technology, downstream flow equipment, engineering services and software to China's leading petroleum and petrochemical companies, today announced financial results for the first nine months of fiscal year 2010, which ended December 31, 2009.
Reported revenues were $45.6 million, an increase of 456% from the $8.2 million in reported revenue for same period of fiscal year 2009. The increase resulted from higher sales of equipment, software and engineering services to the Company's established petroleum and petrochemical customers.
Cost of goods sold for the nine months ended December 31, 2009 was approximately $32.0 million, compared to $5.9 million for the nine months ended December 31, 2008. Gross profit was $13.6 million and gross margins were 29.9%, compared to $2.4 million in gross profit and gross margins of 28.6% during the first nine months of fiscal 2008.
Operating expenses for the nine months ended September 30, 2009, were approximately $1.7 million, compared to $1.6 million in the same period in 2008. Selling expenses in the first nine months of fiscal 2009 were roughly flat at $0.8 million compared to the first nine months of 2008, and general and administration expenses totaled $0.9 million and $0.8 million in the respective periods.
Net income for the first nine months of fiscal 2010 totaled approximately $11.3 million compared to $0.8 million in the equivalent period in fiscal 2009. Net margins were 24.8% and 9.7% for the first three quarters of fiscal years 2010 and 2009, respectively.
"The rapid expansion in petroleum exploration and consumption as a result of China's economic recovery and growth, has driven sales across all product segments which contributed to our record performance during the first nine months of fiscal year 2010," stated Mr. Jianzhong Zuo, Chairman, Chief Executive Officer and President of the Company. "We will utilize our recent capital raise to launch our new clean technology product while capitalizing on all growth opportunities within our core business."
Balance Sheet and Cash Flow
Cash and cash equivalents and restricted cash totaled $19.8 million on December 31, 2009 compared to $6.1 million on March 31, 2009. The Company had total stockholders' equity of $31.7 million, with total assets of $52.5 million versus total liabilities of $20.8 million on March 31, 2009. For the first nine months of fiscal year 2010, the Company generated $7.8 million in cash from operations versus utilization of $4.0 million for the same period in fiscal year 2008. Balance sheet numbers reported in this release and 8-K do not include net proceeds from an approximately $27.6 million private placement completed by the Company on March 1, 2010.
Fiscal year 2010 and 2011 Guidance
For full fiscal years 2010 and 2011, respectively, China LianDi provided revenue guidance of $70.2 million and $116.7 million, representing year-over-year growth of 124% for fiscal 2010 and 60% for 2011. The Company provided net income guidance of approximately $15.1 million for fiscal year 2010 and $25.0 million for 2011, representing year-over-year growth of approximately 113% and 66% for the respective years.
"We look forward to meeting the needs of our many valued petroleum and petrochemical customers as China increases its crude oil exploration and consumption, and as refiners are required to implement clean solutions which improve production efficiencies while helping the environment," added Mr. Zuo. "By the fall of 2010, we expect to have our first installation of our totally enclosed unheading units, which are being developed through a partnership with DeltaGuard for the delayed coking process, and are the first of their kind in China. We are constructing a manufacturing facility to assemble and customize various products in our distribution portfolio, while creating the necessary capacity to produce the new unheading units. These new facilities will be a key component to support future growth."
About China LianDi Clean Technology Engineering Ltd.
China LianDi was established in July 2004 to serve the largest Chinese petroleum and petrochemical companies. Through its four operating subsidiaries, HuaShen Trading (International) Ltd., Petrochemical Engineering Ltd., Bright Flow Control Ltd. and Beijing JianXin Petrochemical Engineering Ltd., the Company distributes a wide range of customized valves and equipment and provides associated value-added technical and integration service. The Company also develops and markets proprietary optimization software for the polymerization process. In addition, LianDi is focused on the large, rapidly growing, clean technology market for oil refineries, projected to reach over $1 billion in the next 10 years. This market is expected to benefit from favorable Chinese government policies, including tax benefits and other incentives.
Cautionary Statement Regarding Forward-Looking Information
This press release may contain certain "forward-looking statements" relating to the business of China LianDi Clean Technology Engineering Ltd., and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements" including statements regarding: the impact of the proceeds from the private placement on the Company's short term business and operations,; the general ability of the Company to achieve its commercial objectives, including the ability of the Company to sustain growth; the business strategy, plans and objectives of the Company and its subsidiaries; and any other statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov )
For further information, please contact:
Company:
Joe Levinson, Vice President of Corporate Communications
Email: [email protected]
Investor Relations:
HC International, Inc.
Ted Haberfield, Executive VP
Tel: +1-760-755-2716
Email: [email protected]
CHINA LIANDI CLEAN TECHNOLOGY ENGINEERING LIMITED
CONSOLIDATED BALANCE SHEETS
(AMOUNTS EXPRESSED IN US DOLLARS)
As of
December 31, As of March 31,
2009 2009 2008
(Unaudited)
ASSETS
Current Assets
Cash and cash equivalents $18,153,762 $5,018,813 $6,550,092
Restricted cash 1,640,333 989,475 2,245,561
Notes receivable, net of $nil
allowance 5,519,312 -- --
Accounts receivable, net of $nil
allowance 8,246,985 15,054,940 2,956,785
Deferred costs of revenue 1,282,365 15,063,883 4,231,315
Inventories 66,626 72,199 30,871
Prepaid expenses and other current
assets 12,077,151 21,973,197 4,235,341
Pledged trading securities 8,820 29,380 313,508
Total current assets 46,995,354 58,201,887 20,563,473
Other Assets
Property and equipment, net 133,129 145,733 --
Intangible assets, net 5,343,136 5,774,660 --
Total assets $52,471,619 $64,122,280 $20,563,473
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current Liabilities
Accounts payable $11,922 $-- $360,828
Deferred revenue 2,609,356 18,938,681 5,702,911
Other payables and accrued expenses 3,135,160 1,275,711 72,291
Provision for income tax 660,469 660,886 621,940
Payable for intangible 5,975,220 5,968,490 --
Due to shareholders 8,392,314 26,242,336 9,896,966
Total current liabilities 20,784,441 53,086,104 16,654,936
Total liabilities 20,784,441 53,086,104 16,654,936
Commitments and Contingencies (Note
18)
Stockholders' Equity
Common stock, $1 par value, 50,000
shares authorized, issued and
outstanding 50,000 50,000 50,000
Additional paid-in capital 9,329,878 -- --
Retained earnings 22,237,570 10,934,253 3,847,269
Accumulated other comprehensive
income 69,730 51,923 11,268
Total stockholders' equity 31,687,178 11,036,176 3,908,537
Total liabilities and shareholders'
equity $52,471,619 $64,122,280 $20,563,473
CHINA LIANDI CLEAN TECHNOLOGY ENGINEERING LIMITED
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(AMOUNTS EXPRESSED IN US DOLLARS
Nine months ended
December 31, Year ended March 31,
2009 2008 2009 2008
(Unaudited) (Unaudited)
NET REVENUE $45,604,199 $8,221,549 $31,265,285 $6,849,284
Cost of revenue (31,986,380) (5,868,198) (21,404,779) (3,216,227)
Gross profit 13,617,819 2,353,351 9,860,506 3,633,057
Operating expenses:
Selling (816,281) (865,090) (1,228,481) (313,251)
General and
administrative (863,061) (752,782) (1,177,820) (263,757)
Research and development (40,432) (31,223) (42,158) --
Total operating expenses (1,719,774) (1,649,095) (2,448,459) (577,008)
Income from operations 11,898,045 704,256 7,412,047 3,056,049
Other income (expenses),
net
Interest income 48,121 31,278 48,390 21,820
Interest and bank
charges (402,674) (236,051) (366,232) (46,313)
Exchange gains (losses),
net (479,188) 317,851 37,695 14,705
Value added tax refund 220,758 -- -- --
Other 19,072 (18,162) (3,196) (11,433)
(593,911) 94,916 (283,343) (21,221)
Income before income tax 11,304,134 799,172 7,128,704 3,034,828
Income tax expense (817) (3,985) (41,720) (620,842)
NET INCOME 11,303,317 795,187 7,086,984 2,413,986
OTHER COMPREHENSIVE
INCOME (LOSS):
Foreign currency
translation adjustment 17,807 (15,203) 40,655 11,269
TOTAL COMPREHENSIVE
INCOME $11,321,124 $779,984 $7,127,639 $2,425,255
Please refer to all accompanying notes in the associated financial
statements of the accompanying 8-K filing for more details.
SOURCE China LianDi Clean Technology Engineering Ltd.
Share this article