TAI'AN, China, April 29, 2016 /PRNewswire/ -- China Customer
Relations Centers, Inc. (NASDAQ:
CCRC) ("CCRC" or the "Company"), a leading call center
business process outsourcing ("BPO") service provider in
China, today announced its
financial results for the year ended December 31, 2015.
2015 Year-to-Date Financial Highlights (all comparisons to
prior year unless noted)
- Revenues increased by 39.1% to $59.4
million driven by increased sales to existing clients and
sales to new clients.
- Gross margin expanded by 3.5% to 21.0% while operating margin
increased by 4.8% to 8.8%, due to improved operating efficiency and
the non-renewal of less profitable customer contracts.
- Net income increased by 167.9% to $4.8
million. Earnings per share increased by 172.7% to
$0.30.
- The provincial subsidiaries of China Mobile and China Telecom
remained our largest clients, contributing $26.7 million (45% of total revenues) and
$11.0 million (19% of total revenues)
to revenues, respectively, in 2015.
Mr. Gary Wang, Chairman and Chief
Executive Officer of CCRC, commented, "We are very pleased to
report strong financial results for the year of 2015 with revenues
growing by 39.1% to $59.4 million and
net income by 167.9% to $4.8 million,
respectively, both were record highs since our inception."
Mr. Wang continued, "While 2015 was clearly a banner year for
CCRC, we expect the momentum to continue as our relationships with
existing key clients continue to expand and believe that we will
continue to attract new clients due to our increasing public and
financial profile following our recent IPO. We believe the Chinese
BPO market remains in the early stages of development and is highly
fragmented compared to other developed countries, offering plenty
of opportunities for us to continue to grow at a healthy rate
through organic growth and selective acquisitions. We are excited
about our trajectory and look forward to our future."
Twelve Months Ended December 31,
2015 Financial Results
|
|
For the Twelve
Months Ended December 31,
|
($ millions,
except per share data)
|
|
2015
|
|
2014
|
|
%
Change
|
Revenues
|
|
$59.4
|
|
$42.7
|
|
39.1%
|
Gross
profit
|
|
$12.5
|
|
$7.5
|
|
66.5%
|
Gross
margin
|
|
21.0%
|
|
17.5%
|
|
3.5%
|
Operating
income
|
|
$5.2
|
|
$1.7
|
|
205.5%
|
Operating
margin
|
|
8.8%
|
|
4.0%
|
|
4.8%
|
Net income
|
|
$4.8
|
|
$1.8
|
|
167.9%
|
EPS
|
|
$0.30
|
|
$0.11
|
|
172.7%
|
Revenues
For the twelve months ended December 31,
2015, revenues increased by $16.7
million, or 39.1%, to $59.4
million from $42.7 million for
the same period last year. This increase was mainly driven by the
growth of our BPO business with increased sales to our existing BPO
clients and sales to new BPO clients. The provincial subsidiaries
of China Mobile and China Telecom remained our largest clients,
contributing $26.7 million and
$11.0 million in revenues,
respectively, in 2015. We added several new BPO clients in 2015,
including, Qunar (an online travel company), DIDI (a mobile
taxi-calling company), Jiedaibao (an online lending platform) a
subsidiary of Alibaba and S.F. Express.
Gross profit and gross margin
Cost of revenues consists primarily of salaries, payroll taxes
and employee benefits costs of our customer service associates and
other operations personnel. Cost of revenues also includes direct
communications costs, rent expense, information technology costs,
and facilities support. Cost of revenues increased by $11.7 million, or 33.3%, to $46.9 million for the twelve months ended
December 31, 2015 from $35.2 million for the same period last year. As a
percentage of revenues, cost of revenues was 79.0% for the twelve
months ended December 31, 2015,
compared to 82.5% for the same period last year.
Gross profit increased by $5.0
million, or 66.5%, to $12.5
million for the twelve months ended December 31, 2015 from $7.5 million for the same period last year. Gross
margin increased by 3.5% to 21.0% for the twelve months ended
December 31, 2015 from 17.5% for the
same period last year. The increase in gross margin was primarily
due to improvement in overall operating efficiency and the
termination of certain less profitable business.
Operating income and operating margin
Selling, general and administrative expenses increased by
$1.5 million, or 25.4%, to
$7.3 million for the twelve months
ended December 31, 2015 from
$5.8 million for the same period last
year. We anticipate that our administrative expenses, particularly
those related to support personnel costs, professional fees, as
well as Sarbanes-Oxley compliance, will continue to increase in
2016 due to becoming a publically traded company.
Income from operations increased by $3.5
million, or 205.5%, to $5.2
million for the twelve months ended December 31, 2015 from $1.7 million for the same period last year.
Operating margin was 8.8% for the twelve months ended December 31, 2015, compared to 4.0% for the same
period last year. The increase in operating income and operating
margin was mainly driven by an increase in revenues as a result of
expansion of our BPO business and improvement in gross margin as a
result of improvement in overall operating efficiency.
Government Grants
We received government grants, which are discretionary and
unpredictable in nature, of $1.0
million for the twelve months ended December 31, 2015, a decrease of $0.4 million, or 28.6%, from $1.4 million for the same period last year.
Government grants as a percentage of net income were 21.5% and
80.8% for the twelve months ended December
31, 2015 and 2014, respectively.
Income Taxes
Provision for income taxes was $1.3
million for the twelve months ended December 31, 2015, an increase of $0.7 million, or 100.6%, from $0.6 million for the same period last year. We
were entitled to a preferential enterprise income tax ("EIT") rate
of 15% in 2014 and 2015. The standard enterprise income tax rate in
China is 25%.
Net Income
Net income increased by $3.0
million, or 167.9%, to $4.8
million for the twelve months ended December 31, 2015 from $1.8 million for the same period last year.
Earnings per basic and diluted share was $0.30 for the twelve months ended December 31, 2015, compared to $0.11 for the same period last year.
Financial Conditions
As of December 31, 2015, the
Company had cash of $13.6 million,
compared to $5.1 million at
December 31, 2014. Total working
capital was $16.1 million as of
December 31, 2015, compared to
$5.5 million at the end of 2014.
Net cash provided by operating activities was $6.0 million for the twelve months ended
December 31, 2015, compared to
$0.5 million for the same period last
year. Net cash used in investing activities was $2.0 million for the twelve months ended
December 31, 2015, compared to
$1.3 million for the same period last
year. Net cash provided by financing activities was $4.8 million for the twelve months ended
December 31, 2015, compared to
$0.2 million for the same period last
year. The Company raised $8.5 million
in net proceeds through an initial public offering of its common
shares in December 2015.
Notice
Rounding amounts and percentages: Certain amounts and
percentages included in this press release have been rounded for
ease of presentation. Percentage figures included in this press
release have not in all cases been calculated on the basis of such
rounded figures, but on the basis of such amounts prior to
rounding. For this reason, certain percentage amounts in this press
release may vary from those obtained by performing the same
calculations using the figures in the financial statements. In
addition, certain other amounts that appear in this press release
may not sum due to rounding.
About China Customer Relations Centers, Inc.
The Company is a BPO service provider focusing on the complex,
voice-based segment of customer care services, including:
- customer relationship management;
- technical support;
- sales;
- customer retention;
- marketing surveys; and
- research.
The Company's service is currently delivered from 11 call center
locations in Shandong Province,
Jiangsu Province, Hebei Province, Anhui Province, the Xinjiang Uygur Autonomous
Region, the Guangxi Zhuang Autonomous Region, Jiangxi Province and Chongqing City, with a capacity approximately
of 9,053 seats.
Forward-Looking Statement
This press release contains forward-looking statements as
defined by the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include statements concerning plans,
objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements that are other than
statements of historical facts. When the Company uses words such as
"may," "will," "intend," "should," "believe," "expect,"
"anticipate," "project," "estimate" or similar expressions that do
not relate solely to historical matters, it is making
forward-looking statements. Specifically, the Company's
statements regarding (i) the future generation of financial growth
from the Company's anticipated execution of its business plan, and
(ii) anticipated ability to obtain new clients are forward-looking
statements. Forward-looking statements are not guarantees of
future performance and involve risks and uncertainties that may
cause the actual results to differ materially from the Company's
expectations discussed in the forward-looking statements. These
statements are subject to uncertainties and risks including, but
not limited to, the following: the Company's goals and
strategies; the Company's future business development; product and
service demand and acceptance; changes in technology; economic
conditions; the growth of the call center business process
outsourcing market in China;
reputation and brand; the impact of competition and pricing;
government regulations; fluctuations in general economic and
business conditions in China and
assumptions underlying or related to any of the foregoing and other
risks contained in reports filed by the Company with the Securities
and Exchange Commission. For these reasons, among others,
investors are cautioned not to place undue reliance upon any
forward-looking statements in this press release. Additional
factors are discussed in the Company's filings with the U.S.
Securities and Exchange Commission, which are available for review
at www.sec.gov. The Company undertakes no obligation to publicly
revise these forward‐looking statements to reflect events or
circumstances that arise after the date hereof.
For more information, please contact:
Tina
Xiao
Weitian Group LLC
Email: ir@ccrc.com
Phone: +1-917-609-0333
CHINA CUSTOMER
RELATIONS CENTERS, INC. AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
ASSETS
|
Cash
|
|
$
|
13,623,849
|
$
|
5,097,010
|
Accounts receivable,
net
|
|
|
8,852,024
|
|
6,819,452
|
Accounts receivable -
related party
|
|
|
353,513
|
|
373,339
|
Notes receivable,
current
|
|
|
125,687
|
|
1,157,793
|
Prepayments
|
|
|
625,876
|
|
639,861
|
Due from related
parties
|
|
|
675,623
|
|
763,977
|
Other current
assets
|
|
|
1,128,262
|
|
1,297,995
|
Total current assets
|
|
|
25,384,834
|
|
16,149,427
|
Restricted
cash
|
|
|
500,000
|
|
-
|
Notes receivable,
non-current
|
|
|
970,620
|
|
-
|
Property and
equipment, net
|
|
|
4,087,832
|
|
3,715,981
|
Other
assets
|
|
|
41,729
|
|
-
|
Deferred tax assets,
non-current
|
|
|
23,974
|
|
-
|
Total non-current assets
|
|
|
5,624,155
|
|
3,715,981
|
Total
assets
|
|
$
|
31,008,989
|
$
|
19,865,408
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
Accounts
payable
|
|
$
|
896,841
|
$
|
189,089
|
Accrued liabilities
and other payables
|
|
|
2,746,992
|
|
2,224,301
|
Wages
payable
|
|
|
2,803,294
|
|
2,041,226
|
Income taxes
payable
|
|
|
1,014,595
|
|
477,740
|
Short term
loans
|
|
|
1,748,479
|
|
5,567,860
|
Due to related
parties
|
|
|
-
|
|
2,422
|
Deferred tax
liabilities, current
|
|
|
35,273
|
|
181,482
|
Total current liabilities
|
|
|
9,245,474
|
|
10,684,120
|
Deferred tax
liabilities, non-current
|
|
|
-
|
|
4,450
|
Total non-current liabilities
|
|
|
-
|
|
4,450
|
Total liabilities
|
|
|
9,245,474
|
|
10,688,570
|
Shareholders'
equity
|
|
|
|
|
|
Common shares, $0.001
par value, 100,000,000 shares authorized, 18,329,600 and 15,929,600
shares issued and outstanding as of December 31, 2015 and 2014,
respectively
|
|
|
18,330
|
|
15,930
|
Additional paid-in
capital
|
|
|
11,178,774
|
|
2,684,150
|
Retained
earnings
|
|
|
9,728,228
|
|
5,460,871
|
Statutory
reserves
|
|
|
1,288,617
|
|
781,731
|
Accumulated other
comprehensive income
|
|
|
(450,434)
|
|
234,156
|
Total shareholders' equity
|
|
|
21,763,515
|
|
9,176,838
|
Total liabilities and
shareholders' equity
|
|
$
|
31,008,989
|
$
|
19,865,408
|
CHINA CUSTOMER
RELATIONS CENTERS, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For The Years
Ended December 31,
|
|
|
|
|
2015
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
Revenues,
net
|
|
$
|
59,350,721
|
$
|
42,661,732
|
$
|
27,609,436
|
Revenues - related
party
|
|
|
-
|
|
11,407
|
|
520,869
|
|
Total
revenues
|
|
|
59,350,721
|
|
42,673,139
|
|
28,130,305
|
Cost of
revenues
|
|
|
46,891,617
|
|
35,188,331
|
|
23,757,669
|
Gross
profit
|
|
|
12,459,104
|
|
7,484,808
|
|
4,372,636
|
Operating
expenses:
|
|
|
|
|
|
|
|
Selling, general
& administrative expenses
|
|
|
7,250,331
|
|
5,779,600
|
|
3,085,437
|
|
Total operating
expenses
|
|
|
7,250,331
|
|
5,779,600
|
|
3,085,437
|
Income from
operations
|
|
|
5,208,773
|
|
1,705,208
|
|
1,287,199
|
Interest
expense
|
|
|
(278,363)
|
|
(552,894)
|
|
(468,823)
|
Government
grants
|
|
|
1,027,581
|
|
1,439,186
|
|
2,714,026
|
Other
income
|
|
|
225,306
|
|
64,873
|
|
112,140
|
Other
expense
|
|
|
(133,421)
|
|
(238,413)
|
|
(101,034)
|
|
Total other
income
|
|
|
841,103
|
|
712,752
|
|
2,256,309
|
Income before
provision for income taxes
|
|
|
6,049,876
|
|
2,417,960
|
|
3,543,508
|
Income tax
provision
|
|
|
1,275,633
|
|
635,859
|
|
594,240
|
Net
income
|
|
$
|
4,774,243
|
$
|
1,782,101
|
$
|
2,949,268
|
Comprehensive
income
|
|
|
|
|
|
|
|
Net income
|
|
$
|
4,774,243
|
$
|
1,782,101
|
$
|
2,949,268
|
Other comprehensive
income (loss)
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
(684,590)
|
|
27,280
|
|
78,074
|
Total
comprehensive income
|
|
$
|
4,089,653
|
$
|
1,809,381
|
$
|
3,027,342
|
Earnings per
common share
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.30
|
$
|
0.11
|
$
|
0.19
|
Diluted
|
|
$
|
0.30
|
$
|
0.11
|
$
|
0.19
|
Weighted average
common shares outstanding
|
|
|
|
|
|
|
|
Basic
|
|
|
16,015,079
|
|
15,586,865
|
|
15,294,800
|
Diluted
|
|
|
16,015,079
|
|
15,586,865
|
|
15,294,800
|
CHINA CUSTOMER
RELATIONS CENTERS, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
|
|
For The Years
Ended December 31,
|
|
|
2015
|
|
|
2014
|
|
|
2013
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
|
Net income
|
$
|
4,774,243
|
|
$
|
1,782,101
|
|
$
|
2,949,268
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation
|
|
1,340,961
|
|
|
1,342,258
|
|
|
1,145,348
|
Allowance for doubtful
accounts
|
|
-
|
|
|
145,076
|
|
|
23,628
|
Gain on disposal of
property and equipment
|
|
-
|
|
|
(11,948)
|
|
|
-
|
Deferred income
taxes
|
|
(172,000)
|
|
|
109,657
|
|
|
215,748
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
(2,499,956)
|
|
|
(3,251,749)
|
|
|
(2,008,418)
|
Accounts receivable -
related party
|
|
-
|
|
|
(11,407)
|
|
|
318,861
|
Due from related
parties
|
|
(114,670)
|
|
|
468,555
|
|
|
(2,864)
|
Due to related
parties
|
|
(2,394)
|
|
|
3,493
|
|
|
746
|
Prepayments
|
|
(361,006)
|
|
|
(489,918)
|
|
|
(88,972)
|
Other current
assets
|
|
105,230
|
|
|
(234,067)
|
|
|
(287,655)
|
Accounts
payable
|
|
725,435
|
|
|
18,998
|
|
|
(70,675)
|
Wage
payable
|
|
908,720
|
|
|
267,931
|
|
|
548,372
|
Income taxes
payable
|
|
586,931
|
|
|
106,833
|
|
|
361,547
|
Accrued liabilities
and other payables
|
|
665,277
|
|
|
249,914
|
|
|
726,485
|
Net cash provided
by operating activities
|
|
5,956,771
|
|
|
495,727
|
|
|
3,831,419
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
|
Purchase of property
and equipment
|
|
(1,614,696)
|
|
|
(965,118)
|
|
|
(600,916)
|
Change of restricted
cash
|
|
(500,000)
|
|
|
-
|
|
|
-
|
Proceeds from sale of
property and equipment
|
|
-
|
|
|
14,363
|
|
|
-
|
Loans to third
parties
|
|
-
|
|
|
(132,742)
|
|
|
(1,146,919)
|
Repayment from third
parties
|
|
-
|
|
|
130,172
|
|
|
-
|
Advance to related
parties
|
|
(930,536)
|
|
|
(1,986,421)
|
|
|
(2,555,137)
|
Repayment from related
parties
|
|
1,095,087
|
|
|
1,633,073
|
|
|
3,864,506
|
Net cash used in
investing activities
|
|
(1,950,145)
|
|
|
(1,306,673)
|
|
|
(438,466)
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
Proceeds from
issuances of common shares
|
|
8,497,024
|
|
|
1,174,380
|
|
|
-
|
Capital contribution
from owners
|
|
-
|
|
|
3,340,396
|
|
|
-
|
Distribution of
capital to owners
|
|
-
|
|
|
-
|
|
|
(3,182,236)
|
Proceeds from related
parties
|
|
-
|
|
|
32,543
|
|
|
3,517,971
|
Repayment to related
parties
|
|
-
|
|
|
(3,749,916)
|
|
|
(9,574)
|
Proceeds from short
term loans
|
|
3,800,367
|
|
|
7,386,830
|
|
|
10,452,451
|
Repayment of short
term loans
|
|
(7,478,890)
|
|
|
(8,001,883)
|
|
|
(10,775,527)
|
Net cash provided
by financing activities
|
|
4,818,501
|
|
|
182,350
|
|
|
3,085
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
(298,288)
|
|
|
11,043
|
|
|
100,052
|
Net change in cash
and cash equivalents
|
|
8,526,839
|
|
|
(617,553)
|
|
|
3,496,090
|
Cash and cash
equivalents, beginning of the year
|
|
5,097,010
|
|
|
5,714,563
|
|
|
2,218,473
|
Cash and cash
equivalents, end of the year
|
$
|
13,623,849
|
|
$
|
5,097,010
|
|
$
|
5,714,563
|
Supplemental cash
flow information
|
|
|
|
|
|
|
|
|
Interest
paid
|
$
|
278,363
|
|
$
|
552,894
|
|
$
|
468,823
|
Income taxes
paid
|
$
|
915,895
|
|
$
|
490,318
|
|
$
|
17,303
|
Non-cash investing
and financing activities
|
|
|
|
|
|
|
|
|
Transfer from
prepayments to property and equipment
|
$
|
405,924
|
|
$
|
289,806
|
|
$
|
232,843
|
Liabilities
assumed in connection with purchase of property and
equipment
|
$
|
23,900
|
|
$
|
68,839
|
|
$
|
703,077
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/china-customer-relations-centers-inc-announces-full-year-2015-financial-results-300260192.html
SOURCE China Customer Relations Centers, Inc.