CHDT Corporation, a Florida corporation (OTCBB: CHDO),
(“Company”), with operating subsidiaries focused on designing and
manufacturing consumer lighting products for the North American and
Latin American retail markets, reported today that the Company,
during the third quarter of 2011, delivered record net revenue of
$4,631,930, an increase of 53.6% versus Q3 2010 and record 3rd
Quarter net income of $533,812, an increase over Q3 2010 of
$403,636 or 310%. For the nine months ended September 30, 2011 net
revenue was $8,149,171 as compared to $3,969,550 for the same
period last year, an increase of $4,179,621 or 105%.
Net income for the nine months ended September 30, 2011 was
$548,526 as compared to a net loss of $695,862 in the same period
last year. This was a net improvement of $1,244,388 compared to the
same period 2010 and is a record year-to-date net income for the
Company.
“The third quarter has consistently been our strongest quarter
for the past several years as retailers stock up for Q4 holiday
selling season. To post such a substantial improvement in our
strongest quarter is a clear indication that retail sell-through
has remained strong through Quarters 2 & 3 which, in turn, has
caused retailers to increase purchases in anticipation of a vibrant
Q4,” said Reid Goldstein, President of Capstone Industries.
“As we approach year-end, it is important to point out that this
year-to-date performance is the cumulative results of three record
quarters, all of which were profitable,” said CFO, Gerry McClinton.
“We are nearing year-end and I am confident our operations team
will deliver the current backlog with Q4 shipping dates, estimated
at $1,800,000,” he added.
Total Revenues: For the three months ended September 30,
2011, the Company posted Gross Sales of $4,786,534 with sales
allowances of $154,604 for net revenues of $4,631,930 compared to
net revenues for the same period in 2010 of $3,013,975, for an
increase of $1,617,955, representing a 53.6% increase from 2010
results. All of the revenue was generated by Capstone.
Cost of Sales: For the three months ended September 30,
2011 and 2010, cost of sales were $3,579,048 and $2,126,383,
respectively.
Gross Profit: For the three months ended September 30,
2011, gross profit was $1,052,882 an increase of $165,290 or 18.6%
from $887,592 for the three months ended September 30, 2010. The
Gross Profit increase is attributed to significantly increased
shipments in the quarter as compared to the same period last
year.
Total Operating Expenses: For the three months ended
September 30, 2011, expenses were $431,198 as compared to $655,692
for the three months ended September, 2010, a net reduction of
$224,494 or 34.2%.
Net Income: For the three months ended September 30, 2011
net income was $533,812 as compared to $130,176 for the three
months ended September 30, 2010. The Company improved its net
results by $403,636 or 310% from the same period in 2010. This
substantial net results improvement was the result of significantly
increased revenues and ongoing expense reductions.
“As I mentioned at our 2010 year-end conference call, we
believed the Company had never been in a better position as
revenues were continuing to grow through expanded product placement
at both new and existing customers. We were confident 2011 would be
a turning point for the Company as our strategy was to contain
costs while introducing relevant products that were useful and
affordable,” said Stewart Wallach, CEO of CHDT Corp. “The retail
buying community has acknowledged our subsidiary’s efforts and
today it is easier to name the few companies we don’t sell than the
extensive list of those we do. We still temper our growth
initiatives by being selective and focusing on doing business with
retailers best suited to succeed in today’s challenging market
conditions. I look forward to addressing our shareholders on
Wednesday to elaborate on our continuing progress,” he added.
Conference Call: A
conference call will be held on Wednesday, October 26, 2011 at
11:00 a.m. EDT. Shareholders are to call in at
1-800-791-2345 and press in the participant code:
45101#.
About CHDT Corporation
CHDT Corporation (www.chdtcorp.com) is a public
holding Company that engages, through its wholly owned
subsidiaries, in the development, manufacturing, logistics, and
distribution of consumer products to retailers
and distributors throughout North America and Latin
America. See www.chdtcorp.com for more information about
the Company and www.capstoneindustries.com for
information on our current product offerings. Reference of URLs in
this press release does not incorporate said URLs or any of their
contents in this press release.
FORWARD-LOOKING STATEMENTS: This press release, including the
financial summary above, contains "forward-looking statements" as
that term is defined in the Private Securities Litigation Reform
Act of 1995, as amended. Such statements consist of words like
“anticipate,” “expect,” “project,” “continue” and similar words.
These statements are based on the Company’s and its
subsidiaries’ current expectations and involve risks and
uncertainties, which may cause results to differ materially from
those set forth in the forward-looking statements. CHDT undertakes
no obligation to publicly update any forward-looking statement,
whether as a result of new information, future events, or
otherwise. Forward-looking statements in this press release and
risks associated with any investment in CHDT, which is a small
business concern and a "penny stock Company” and, as such, a
highly risky investment suitable for only those who can afford to
lose such investment, should be evaluated together with the many
uncertainties that affect CHDT's business, particularly those
mentioned in the cautionary statements in current and future CHDT's
SEC Filings.