China Architectural Engineering, Inc. (CAE) (AMEX:RCH), a leader in
the design, engineering, fabrication and installation of high-end
building envelope systems, today reported record financial results
for the Company�s first quarter ended March 31, 2008. Revenues,
gross margins, net income and earnings per share all rose
substantially, driven primarily by the Company�s expansion into
higher-margin markets outside of China. Revenues for the first
quarter ended March 31, 2008 totaled $25.35 million, an increase of
76% from $14.43 million reported in the first quarter of 2007. The
Company attributed the increase largely to the ongoing success of
its international expansion strategy. Net income for the first
quarter of 2008 was $5.17 million, or $0.09 per fully diluted
share, up 205% (200% on a per-share basis) from $1.70 million, or
$0.03 cents per fully diluted share, in the first quarter of 2007.
Gross profit for the first quarter of 2008 was $8.45 million, up
190% from $2.90 million in the first quarter of 2007. Gross margin
rose to 33% in the latest quarter from 20% a year earlier. CAE
attributed the rise to the growth in higher-margin projects outside
of China. Sales, general and administrative (SG&A) expenses
rose to $3.00 million in the first quarter of 2008 from $874,375 in
the first quarter of 2007. As with revenues and margins, the rise
in SG&A was due largely to the Company�s international
expansion strategy, which led to increased expenses related to new
staff, offices and other costs related to the initial start-up of
CAE�s new international operations. Despite the higher SG&A,
operating income in the first quarter of 2008 rose by 169%, to
$5.45 million from $2.02 million in the first quarter of 2007. Ken
Yi Luo, China Architectural Engineering�s Chairman and CEO,
commented, �Our results for the first quarter of 2008 confirm that
CAE is now a company of true global reach, capable of serving the
world�s most vibrant construction markets. In addition to China, we
have established ongoing operations in the Persian Gulf region and
the United States � where we were just awarded our first contract,
for $11.6 million, to build a curtain-wall system at a luxury
condominium project in Manhattan. Our China business also remains
strong, as was evidenced by our recent announcement of a $15
million contract award for work at the �Silicon Valley� project in
the city of Guangzhou.� Conference Call and Webcast Information The
Company will host a conference call at 11:00 a.m. ET today, May 14,
2008, to discuss today�s financial results. To listen to the call
live, please tune into the webcast via the investor relations
section of Company�s website at www.caebuilding.com or by dialing
877-407-8035 or 201-689-8035 for international callers and asking
for the China Architectural Engineering, Inc. earnings call. Please
call at least 10 minutes prior to the start time. To be added to
China Architectural Engineering�s investor lists, please contact
Haris Tajyar at htajyar@irintl.com or at 818-382-9702. About China
Architectural Engineering China Architectural Engineering, Inc.
(CAE) (AMEX:RCH), which began operations in 1992, has maintained a
leading position in the global commercial construction industry by
providing timely, high-quality, reliable, fully integrated and
cost-effective service solutions to its clients utilizing
specialized technical expertise in the design, engineering,
fabrication and construction of structural exterior cladding
systems. It specializes in high-end curtain wall systems (including
glass, stone & metal curtain walls), roofing systems, steel
construction systems, eco-energy saving building conservation
systems and related products, for public works and commercial real
estate projects. CAE has worked with world-renowned architects and
building engineers from China and other countries and has completed
over 100 large, complex and unique projects throughout China, Hong
Kong, Macau, Australia and Southeast Asia, including numerous
award-winning landmark buildings in many of Asia's major cities. It
is now capitalizing on its industry-leading expertise by expanding
aggressively beyond China into some of the most active construction
markets in the world, including the Middle East, Central Asia,
United States and Eastern Europe. For further information on China
Architectural Engineering please visit www.caebuilding.com. Forward
Looking Statements: In addition to historical information, the
statements set forth above include forward-looking statements that
may involve risk and uncertainties that could cause actual results
to differ materially from those in the forward-looking statements.
Such risks and uncertainties include, but are not limited to,
uncertainty of contract negotiations and payments under existing
contracts, the Company�s dependence on government contracts,
changes in the laws of the PRC that affect the Company�s
operations, fluctuation and unpredictability of costs related to
the Company�s products and services, the Company�s dependence on
the steel and aluminum markets, reduction or reversal of the
Company�s recorded revenue or profits due to �percentage of
completion� method of accounting and expenses and costs associated
with the issuance of convertible bonds. The forward-looking
statements are also identified through use of the words �believe,�
�enable,� �may,� �will,� �could,� �intends,� �estimate,�
�anticipate,� �plan,� �predict,� �probable,� �potential,�
�possible,� �should,� �continue,� and other words of similar
meaning. Actual results could differ materially from the
expectations contained in forward-looking statements as a result of
several factors, including regulatory approval requirements and
competitive conditions. These and other factors that may result in
differences are discussed in greater detail in the Company�s
reports and other filings with the Securities and Exchange
Commission. CHINA ARCHITECTURAL ENGINEERING, INC. � CONSOLIDATED
STATEMENTS OF INCOME FOR THE THREE-MONTH PERIODS ENDED MARCH 31,
2008 AND 2007 (STATED IN US DOLLARS) (UNAUDITED) � Three Months
Ended March 31, 2008 � 2007 � � Contract revenues earned $
25,349,306 $ 14,430,092 � Cost of contract revenues earned
(16,903,754 ) (11,532,607 ) � Gross profit $ 8,445,552 $ 2,897,485
� Selling, general and administrative expenses (3,000,425 )
(874,375 ) � Income from operations $ 5,445,127 $ 2,023,110 �
Interest income 6,963 3,637 Interest expense (334,137 ) (4,080 )
Other income 111,162 � � � Income before taxation $ 5,229,115 $
2,022,667 � Income tax (47,367 ) (327,048 ) Equity loss and
minority interests (8,030 ) - � � Net income $ 5,173,718 � $
1,695,619 � � Earnings per share: Basic $ 0.10 � $ 0.03 � Diluted $
0.09 � $ 0.03 � � Weighted average shares outstanding: Basic
51,783,416 � 50,000,000 � Diluted 55,489,023 � 50,000,000 � � Note:
The notes in the Company�s Form 10-Q are an integral part of these
financial statements. � � CHINA ARCHITECTURAL ENGINEERING, INC. �
CONSOLIDATED BALANCE SHEETS AS OF MARCH 31, 2008 AND DECEMBER 31,
2007 (STATED IN US DOLLARS) � � March 31, 2008 December 31, 2007
(unaudited) (audited) ASSETS Current assets Cash and cash
equivalents $ 5,950,336 $ 4,040,168 Restricted cash 661,340 595,016
Contract receivables, net 31,867,941 13,047,559 Costs and earnings
in excess of billings 49,507,336 57,488,693 Job disbursements
advances 2,218,256 2,454,106 Tender and other site deposits 341,950
83,046 Other receivables 7,850,316 6,640,865 Inventories 342,088
528,743 Other current assets - 109,533 Total current assets
98,739,563 84,987,729 � Non-current assets Plant and equipment, net
2,859,357 2,582,554 Intangible Assets 54,231 70,386 Organization
cost - 92,741 Goodwill 7,995,896 7,995,896 Other non-current asset
7,527 7,505 � TOTAL ASSETS $ 109,656,574 $ 95,736,811 � LIABILITIES
AND STOCKHOLDERS� EQUITY Current liabilities Short-term bank loans
$ 2,327,595 $ 2,578,550 Accounts payable 22,841,062 18,737,771
Amount due to shareholder 1,953,804 1,334,856 Other payables
10,633,862 9,193,186 Income tax payable 2,639,710 2,673,643
Business and other taxes payable 3,503,438 3,538,336 Customers�
deposits 67,110 757,079 Other Accrual 360,270 499,684 Total current
liabilities 44,326,851 39,313,105 � Note: The notes in the
Company�s Form 10-Q are an integral part of these financial
statements. � � � March 31, 2008 � December 31, 2007 � Non-current
liabilities Long term bank loans $ 1,977,700 $ 443,881 Convertible
bond payable, net 5,871,428 3,465,741 Minority interest 37,264
49,482 � � TOTAL LIABILITIES $ 52,213,243 $ 43,272,209 �
STOCKHOLDERS� EQUITY Preferred stock, $0.001 par value, 10,000,000
shares authorized, 0 shares issued and outstanding at March 31,
2008 and December 31, 2007; Common stock, $0.001 par value,
100,000,000 shares authorized, 51,783,416 shares issued and
outstanding at March 31, 2008 and December 31, 2007, respectively $
51,784 $ 51,784 Additional paid in capital 21,594,712 23,665,558
Statutory reserves 3,040,595 3,040,595 Accumulated other
comprehensive income 3,768,686 1,892,829 Retained earnings
28,987,554 23,813,836 57,443,331 52,464,602 TOTAL LIABILITIES AND
STOCKHOLDERS� EQUITY $ 109,656,574 $ 95,736,811 � Note: The notes
in the Company�s Form 10-Q are an integral part of these financial
statements.
China Architectural Engineering, (AMEX:RCH)
Historical Stock Chart
From Jul 2024 to Aug 2024
China Architectural Engineering, (AMEX:RCH)
Historical Stock Chart
From Aug 2023 to Aug 2024