Ossen Innovation Supplements Its First Half 2011 Results and Provides First and Second Quarter Results Breakdown
SHANGHAI, Aug. 12, 2011 /PRNewswire-Asia-FirstCall/ -- Ossen Innovation Co., Ltd. ("Ossen" or the "Company") (Nasdaq: OSN), a China-based manufacturer of galvanized pre-stressed steel wires used in the production of bridge cables as well as other pre-stressed steel materials, today supplements its previously released financial results for the six months ended June 30, 2011 and provides first and second quarter results breakdown.
First Quarter 2011 Results
(in millions except EPS) |
Q1 2011 |
Q1 2010 |
Chg. |
|
Revenue |
$31.7 |
$28.7 |
11% |
|
Gross Profit |
$9.1 |
$5.4 |
68% |
|
Net Income |
$5.9 |
$3.4 |
75% |
|
EPS |
$0.29 |
$0.22 |
31% |
|
Shares Outstanding* |
20 |
15 |
33% |
|
Second Quarter 2011 Results
(in millions except EPS) |
Q2 2011 |
Q2 2010 |
Chg. |
|
Revenue |
$29.0 |
$30.0 |
(3%) |
|
Gross Profit |
$6.8 |
$6.2 |
9% |
|
Net Income |
$3.6 |
$3.8 |
(4%) |
|
EPS |
$0.18 |
$0.25 |
(28%) |
|
Shares Outstanding* |
20 |
15 |
33% |
|
*20 million shares were outstanding as of June 30, 2011. The number includes the five million shares |
||||
About Ossen Innovation Co., Ltd.
Ossen Innovation Co., Ltd. manufactures and sells galvanized pre-stressed steel wires used in the production of bridge cables as well as other pre-stressed materials. The Company's products are mainly used in the construction of bridges and other infrastructure projects. Ossen has two manufacturing facilities located in Maanshan, Anhui Province, and Jiujiang, Jiangxi Province.
Safe Harbor Statements
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from those projected or anticipated, including risks outlined in the Company's public filings with the Securities and Exchange Commission, including the Company's annual report on Form 20-F. All information provided in this press release is as of the date hereof. Except as required by law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.
For more information, please contact: |
||
Ossen Innovation Co., Ltd. |
||
Alan Jin, Chief Financial Officer |
||
Email: [email protected] |
||
Phone: +86 (21) 6888-8886 |
||
Investor Relations |
||
MZ-HCI |
||
Ted Haberfield, President |
||
Phone: +1-760-755-2716 |
||
Email: [email protected] |
||
OSSEN INNOVATION CO., LTD AND SUBSIDIARIES |
||||||
March 31, |
December 31, |
|||||
2011 |
2010 |
|||||
(Unaudited) |
||||||
ASSETS |
||||||
Current Assets |
||||||
Cash and cash equivalents |
$ |
4,341,983 |
$ |
12,322,982 |
||
Restricted cash |
9,800,897 |
13,799,018 |
||||
Notes receivable – bank acceptance notes |
1,522,047 |
17,636,928 |
||||
Accounts receivable, net of allowance for doubtful accounts |
29,867,084 |
13,332,492 |
||||
Inventories |
18,098,689 |
27,949,781 |
||||
Advance to suppliers |
55,459,065 |
25,072,350 |
||||
Other current assets |
2,757,512 |
3,343,302 |
||||
Notes receivable from related party – bank acceptance notes |
- |
3,024,895 |
||||
Account receivable from related party |
3,911,917 |
707,487 |
||||
Total Current Assets |
125,759,194 |
117,189,235 |
||||
Property, plant and equipment, net |
11,773,356 |
12,029,612 |
||||
Land use rights, net |
4,312,903 |
4,306,091 |
||||
Prepayment for plant and equipment |
7,610,234 |
7,562,237 |
||||
TOTAL ASSETS |
$ |
149,455,687 |
$ |
141,087,175 |
||
LIABILITIES AND SHAREHOLDERS' EQUITY |
||||||
Current Liabilities |
||||||
Notes payable – bank acceptance notes |
$ |
19,786,609 |
$ |
26,014,096 |
||
Short-term bank loans |
43,987,137 |
38,325,414 |
||||
Accounts payable |
454,108 |
2,493,665 |
||||
Customer deposits |
2,345,797 |
833,768 |
||||
Income tax payable |
1,180,100 |
662,585 |
||||
Other payables and accrued expenses |
619,987 |
94,510 |
||||
Due to related party |
780,770 |
- |
||||
Total Current Liabilities |
69,154,508 |
68,424,038 |
||||
TOTAL LIABILITIES |
69,154,508 |
68,424,038 |
||||
EQUITY |
||||||
Shareholders' Equity |
||||||
Ordinary shares, $0.01 par value: 100,000,000 shares authorized, 20,000,000 |
200,000 |
200,000 |
||||
Additional paid-in capital |
33,805,090 |
33,338,096 |
||||
Statutory reserve |
3,263,552 |
2,674,457 |
||||
Retained earnings |
31,171,569 |
25,887,113 |
||||
Accumulated other comprehensive income |
2,672,320 |
2,192,996 |
||||
TOTAL SHAREHOLDERS' EQUITY |
71,112,531 |
64,292,662 |
||||
Non-controlling interest |
9,188,648 |
8,370,475 |
||||
TOTAL EQUITY |
80,301,179 |
72,663,137 |
||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ |
149,455,687 |
$ |
141,087,175 |
||
OSSEN INNOVATION CO., LTD AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Unaudited) |
||||||
Three Months Ended March 31, |
||||||
2011 |
2010 |
|||||
REVEUNUES |
$ |
31,745,263 |
$ |
28,678,325 |
||
COST OF GOODS SOLD |
22,643,557 |
23,265,571 |
||||
GROSS PROFIT |
9,101,706 |
5,412,754 |
||||
Selling expenses |
241,441 |
93,043 |
||||
General and administrative expenses |
321,496 |
251,416 |
||||
Total Operating Expenses |
562,937 |
344,459 |
||||
INCOME FROM OPERATIONS |
8,538,769 |
5,068,295 |
||||
Financial expenses, net |
(808,664) |
(532,127) |
||||
Other income, net |
44,032 |
27,871 |
||||
INCOME BEFORE INCOME TAX |
7,774,137 |
4,564,039 |
||||
INCOME TAX |
(1,082,413) |
(599,431) |
||||
NET INCOME |
6,691,724 |
3,964,608 |
||||
LESS: NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTEREST |
818,173 |
611,672 |
||||
NET INCOME ATTRIBUTABLE TO CONTROLLING INTEREST |
5,873,551 |
3,352,936 |
||||
OTHER COMPREHENSIVE INCOME |
||||||
Foreign currency translation gain |
479,324 |
3,856 |
||||
TOTAL OTHER COMPREHENSIVE INCOME |
479,324 |
3,856 |
||||
COMPREHENSIVE INCOME |
$ |
6,352,875 |
$ |
3,356,792 |
||
EARNINGS PER ORDINARY SHARE |
||||||
Basic and diluted |
$ |
0.29 |
$ |
0.22 |
||
WEIGHTED AVERAGE ORDINARY SHARES OUTSTANDING |
||||||
Basic and diluted |
20,000,000 |
15,000,000 |
||||
OSSEN INNOVATION CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) |
||||||||
Three Months Ended March 31, |
||||||||
2011 |
2010 |
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||
Net income |
$ |
6,691,724 |
$ |
3,964,608 |
||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
Depreciation and amortization |
400,374 |
355,070 |
||||||
Share-based compensation expense |
26,040 |
- |
||||||
Changes in operating assets and liabilities: |
||||||||
(Increase) Decrease In: |
||||||||
Accounts receivable |
(16,534,592) |
(609,982) |
||||||
Inventories |
9,851,092 |
1,344,477 |
||||||
Advance to suppliers |
(30,386,714) |
(5,524,252) |
||||||
Other current assets |
585,790 |
550,149 |
||||||
Notes receivable - bank acceptance notes |
16,114,881 |
- |
||||||
Notes receivable from related party - bank acceptance notes |
3,024,895 |
1,828,234 |
||||||
Due from and advance to related party |
- |
(11,714,379) |
||||||
Account receivable from related party |
(3,204,430) |
(6,986,666) |
||||||
Increase (Decrease) In: |
||||||||
Accounts payable |
(2,039,556) |
8,046,852 |
||||||
Customer deposits |
1,512,029 |
788,175 |
||||||
Income tax payable |
517,514 |
369,664 |
||||||
Other payables and accrued expenses |
525,477 |
542,613 |
||||||
Due to related party |
780,770 |
- |
||||||
Net cash used in operating activities |
(12,134,706) |
(7,045,437) |
||||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||||
Purchases of plant and equipment |
(4,748) |
(11,871) |
||||||
Net cash used in investing activities |
(4,748) |
(11,871) |
||||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||||
Decrease in restricted cash |
3,998,120 |
12,726 |
||||||
Proceeds from short-term bank loans |
22,526,280 |
23,551,440 |
||||||
Repayments of short-term bank loans |
(16,864,557) |
(16,232,927) |
||||||
Proceeds from notes payable-bank acceptance notes |
6,544,801 |
11,702,579 |
||||||
Repayment of notes payable-bank acceptance notes |
(12,772,288) |
(10,236,580) |
||||||
IPO expenditure refund |
440,954 |
- |
||||||
Net cash provided by financing activities |
3,873,310 |
8,797,238 |
||||||
INCREASE /( DECREASE) IN CASH AND CASH EQUIVALENTS |
(8,266,144) |
1,739,930 |
||||||
Effect of exchange rate changes on cash |
285,145 |
10,063 |
||||||
Cash and cash equivalents at beginning of period |
12,322,982 |
8,409,467 |
||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
$ |
4,341,983 |
$ |
10,159,460 |
||||
SUPPLEMENTARY CASH FLOW INFORMATION |
||||||||
Cash paid during the periods: |
||||||||
Income taxes paid |
$ |
570,608 |
$ |
198,199 |
||||
Interest paid |
$ |
656,225 |
$ |
397,775 |
||||
Non-cash transactions: |
||||||||
Appropriation to statutory reserve |
$ |
589,095 |
$ |
404,710 |
||||
OSSEN INNOVATION CO., LTD AND SUBSIDIARIES |
||||||
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME |
||||||
(Unaudited) |
||||||
Three Months Ended June 30, |
||||||
2011 |
2010 |
|||||
REVENUES |
$ |
29,036,672 |
$ |
30,030,450 |
||
COST OF GOODS SOLD |
22,282,476 |
23,836,150 |
||||
GROSS PROFIT |
6,754,196 |
6,194,300 |
||||
Selling expenses |
316,520 |
102,663 |
||||
General and administrative expenses |
856,142 |
280,860 |
||||
Total Operating Expenses |
1,172,662 |
383,523 |
||||
INCOME FROM OPERATIONS |
5,581,534 |
5,810,777 |
||||
Financial expenses, net |
(799,256) |
(537,532) |
||||
Other income, net |
26,654 |
68,849 |
||||
INCOME BEFORE INCOME TAX |
4,808,932 |
5,342,094 |
||||
INCOME TAX |
(694,317) |
(771,167) |
||||
NET INCOME |
4,114,615 |
4,570,927 |
||||
LESS: NET INCOME ATTRIBUTABLE TO |
||||||
NON-CONTROLLING INTEREST |
503,273 |
818,357 |
||||
NET INCOME ATTRIBUTABLE TO CONTROLLING |
||||||
INTEREST |
3,611,342 |
3,752,570 |
||||
OTHER COMPREHENSIVE INCOME |
||||||
Foreign currency translation gain |
1,318,437 |
113,679 |
||||
TOTAL OTHER COMPREHENSIVE INCOME |
1,318,437 |
113,679 |
||||
COMPREHENSIVE INCOME |
$ |
4,929,779 |
$ |
3,866,249 |
||
EARNINGS PER ORDINARY SHARE |
||||||
Basic and diluted |
$ |
0.18 |
$ |
0.25 |
||
WEIGHTED AVERAGE ORDINARY SHARES OUTSTANDING |
||||||
Basic and diluted |
20,000,000 |
15,000,000 |
||||
OSSEN INNOVATION CO., LTD. AND SUBSIDIARIES |
|||||||
Three Months Ended June 30, |
|||||||
2011 |
2010 |
||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|||||||
Net income |
$ |
4,114,615 |
$ |
4,570,927 |
|||
Adjustments to reconcile net income to net cash provided by/ (used in) operating activities: |
|||||||
Depreciation and amortization |
487,314 |
372,523 |
|||||
Share-based compensation expense |
26,329 |
- |
|||||
Changes in operating assets and liabilities: |
|||||||
(Increase) Decrease In: |
|||||||
Accounts receivable |
(1,863,434) |
(18,014,751) |
|||||
Inventories |
(2,160,408) |
(6,240,707) |
|||||
Advance to suppliers |
(17,040,730) |
7,415,128 |
|||||
Other current assets |
2,617,257 |
(251,713) |
|||||
Notes receivable - bank acceptance notes |
1,522,047 |
150,208 |
|||||
Due from and advance to related party |
- |
3,403,036 |
|||||
Account receivable from related party |
2,855,463 |
6,986,666 |
|||||
Increase (Decrease) In: |
|||||||
Accounts payable |
70,938 |
(7,556,308) |
|||||
Customer deposits |
3,903,949 |
452,899 |
|||||
Income tax payable |
(441,374) |
408,222 |
|||||
Other payables and accrued expenses |
(345,952) |
(562,344) |
|||||
Due to related party |
(780,770) |
||||||
Net cash used in operating activities |
(7,034,756) |
(8,866,214) |
|||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
|||||||
Purchases of plant and equipment |
(122,712) |
(85,016) |
|||||
Net cash used in investing activities |
(122,712) |
(85,016) |
|||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
|||||||
Increase in restricted cash |
(3,799,809) |
(338,218) |
|||||
Proceeds from short-term bank loans |
16,458,853 |
6,263,794 |
|||||
Repayments of short-term bank loans |
(11,095,758) |
(4,655,035) |
|||||
Proceeds from notes payable-bank acceptance notes |
19,445,298 |
10,328,382 |
|||||
Repayment of notes payable-bank acceptance notes |
(13,241,808) |
(9,508,345) |
|||||
Net cash provided by financing activities |
7,766,776 |
2,090,578 |
|||||
INCREASE /( DECREASE) IN CASH AND CASH EQUIVALENTS |
609,308 |
(6,860,652) |
|||||
Effect of exchange rate changes on cash |
813,476 |
161,533 |
|||||
Cash and cash equivalents at beginning of period |
4,341,983 |
10,159,460 |
|||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
$ |
5,764,767 |
$ |
3,460,341 |
|||
SUPPLEMENTARY CASH FLOW INFORMATION |
|||||||
Cash paid during the periods: |
|||||||
Income taxes paid |
$ |
1,145,915 |
$ |
594,575 |
|||
Interest paid |
$ |
680,367 |
$ |
448,839 |
|||
Non-cash transactions: |
|||||||
Appropriation to statutory reserve |
$ |
381,285 |
$ |
551,044 |
|||
SOURCE Ossen Innovation Co., Ltd.
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