mlkrborn
14 years ago
R/S 1 for 4; Symbol change; Earnings report!loss widens!
Analyst Blog
China Architectural in the Red
November 23, 2010 | Comments: 0
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CAEI
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China Architectural Engineering Inc. (CAEI - Analyst Report) reported yet another quarter of loss with a net loss of $8.7 million or 13 cents per share for its third quarter ended September 30, 2010. In the year-ago quarter the company had recorded a loss of $8.4 million or 16 cents per share.
A decline in contract revenue owing to fewer projects along with higher raw material and labor and administrative costs perpetrated the loss in the reported quarter.
Revenue plunged 83% on a year-over-year basis to $4.4 million in the reported quarter affected by dwindling projects, a derivative of declining global construction activity. The company’s decision to abstain from international projects and instead focus on the domestic market has affected its revenues during the past few quarters.
Out of the total revenue earned, approximately $0.2 million pertained to ConnGame. China Architectural acquired a 60% ownership in Shanghai ConnGame, a game developer and operator in August 2010.
Cost & Margin Performance
Gross loss was $1 million in the quarter compared with a gross profit of $0.5 million in the year-earlier quarter. Increases in raw material, labor and administrative costs as well as adjustments made in accordance with the percentage-of-completion method of accounting because of increases in estimated costs of current projects were responsible for the loss in the quarter.
Selling, general and administrative expenses (SG&A) inched 1% to $5.6 million in third-quarter 2010 due to a decrease in revenue combined with a $3.3 million bad debt expense for certain projects. Payroll expenses accounted for approximately 33% of total expenses, followed by depreciation expenses of 5%, and rental expenses of 3%. Consequently, operating loss in the quarter was $6.6 million compared with an operating profit of $5.1 million in the year-ago period.
Financial Position
China Architectural had cash and cash equivalents of $3 million as of September 30, 2010, up from $0.6 million as of June 30, 2010. The company generated $5.6 million in net cash from operating activities for the nine months ended September 30, 2010, compared with $11.2 million in the comparable year-ago period.
The debt-to-capitalization ratio at the end of the quarter improved to 43% from 46% as of September 30, 2010.
Contracts
In the reported quarter, China Architectural signed contracts worth $18.9 million, which include projects like Beijing Jiangtai Business Centre, Wuhan Xinhaigeming Museum and Liuzhou Nanning Gymnasium and Natatorium. These projects are expected to be completed in either 2010 or 2011.
In addition, the company was awarded a contract of $3.2 million by the Overseas Chinese Town Group for its Joy Coast project, the first large-scale, high-end integrated urban ecotourism project in China. China Architectural will construct the Innovation Exhibition Center, one of the regional landmarks within Joy Coast.
Looking Ahead
China Architectural has been reporting losses since the third quarter of 2009, affected by fewer projects due to the global economic slowdown. The company, however, is beginning to see an improvement, as indicated by approximately $22.1 million worth of new contracts signed in the reported quarter.
The company will benefit from its corporate restructuring and its focus on online game developments and opportunities. In the online gaming segment, the company is all set for its first commercial launch. In the architecture construction and engineering segment, the company plans to be more selective and focus only on high-return and lower-risk projects.
Zhuhai, China-based China Architectural Engineering Inc. specializes in high-end curtain wall systems (including glass, stone and metal curtain walls), roofing systems, steel construction systems, energy saving building conservation systems and related products, for public works and commercial real estate projects.
The Night Stalker
14 years ago
talk about shitty earnings. these guys suck IMO. this will be a nice swing trade in a few weeks nothing more
China Architectural Engineering Announces First Quarter 2010 Financial Results
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Companies:China Architectural Engineering, Inc.
Topics:EarningsIndustrial Goods
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CAEI 0.81 0.00
Press Release Source: China Architectural Engineering, Inc. On Wednesday May 19, 2010, 7:30 am EDT
ZHUHAI, China and NEW YORK, May 19 /PRNewswire-Asia-FirstCall/ -- China Architectural Engineering, Inc. ("CAE" or the "Company") (Nasdaq:CAEI - News), a leader in the design, engineering, fabrication and installation of high-end building envelope systems, today announced its financial results for the first quarter ended March 31, 2010.
First Quarter 2010 Results
Revenues from contracts for the first quarter of 2010 were $11.5 million, versus $36.3 million in first quarter of 2009, as most of the international projects were completed in 2009, such as the Dubai Metro Red Line, Guangdong Science City Headquarter Phase I, and Doha High Rise Office Tower, and the Company ceased to conduct international projects. Gross profit was $2.3 million, compared to $8.2 million for the same period last year. The gross margin for the first quarter of 2010 was 20.3% versus 22.5% for the same time of prior year, due to increases in raw material, labor and administrative costs in the domestic market of China.
Selling, general and administrative expenses were $4.2 million for the first quarter of 2010, compared with $6.0 million a year ago. The decrease was primarily due to the revenue decrease. Payroll and related costs accounted for approximately 71.8% of total operating expenses, including a $2.0 million charge related to stock grants made in the first quarter of 2010. Consequently, operating loss was $1.9 million for the first quarter of 2010, versus the income from operation of $2.2 million a year ago.
Interest expenses and finance expenses were $1.6 million for the first quarter of 2010, an increase of $0.3 million from $1.3 million a year ago. The increase was mainly due to the use of short-term bank loans.
Income tax expense was $9,575 for the first three months of 2010 at an effective tax rate of -0.3%, compared with nil in taxes for the same period of 2009. The primary reason for the decrease was due to losses incurred by the operations of the Company as still suffering from the effects of the recent international financial crises.
Net loss was $3.5 million, or a net loss of $0.06 per fully diluted share, for the three months ended March 31, 2010, compared to net income of $0.9 million, or $0.02 earning per diluted share, for the same period in 2009.
Liquidity and Capital Resources
The Company had an unrestricted cash balance of approximately $0.5 million as of March 31, 2010, as compared to $0.7 million as of December 31, 2009. Net cash from operating activities was $6.9 million for the first quarter of 2010, compared to net cash from operating activities of $4.3 million for the first quarter of 2009.
Business Outlook
fratboy72
15 years ago
China Architectural Engineering to Acquire Majority Stake in Shanghai ConnGame
Last update: 12/14/2009 8:00:00 AM
ZHUHAI, China and NEW YORK, Dec 14, 2009 /PRNewswire-Asia-FirstCall via COMTEX/ -- China Architectural Engineering, Inc. ("CAE" or the "Company") (CAEI), a leader in the design, engineering, fabrication and installation of high-end building envelope systems, today announced that it has signed a letter of intent ("LOI") to acquire 60% ownership in Shanghai ConnGame ("ConnGame"), a MMORPG game developer and operator in exchange for 25 million shares of the Company's common stock. Completion of the transaction is subject to negotiation of a definitive equity transfer agreement that will be subject to a number of closing conditions, including shareholder and regulatory approvals.
ConnGame, founded and led by seasoned experts with extensive previous success in China's online game industry, develops and operates MMORPGs in China. Leveraging its innovative game engines, scalable development platforms, and accomplished production teams, ConnGame focuses on self-developed MMORPGs game titles that are based on China's iconic characters and nostalgic epochs.
"This is a very exciting development for our company and an important move that we believe will ultimately benefit our shareholders," commented Mr. Ken Yi Luo, Chairman and Chief Executive Officer of China Architectural Engineering. "While at first glance CAE and ConnGame may appear to share few common grounds, we expect the acquisition of ConnGame will further expand CAE's core capabilities and accelerate our planned transformation into a high- end architectural design consultant and service provider, as we intend to leverage ConnGame's robust design engines and virtual applications to broaden our service capabilities and scope of architectural collaborations. We envision utilizing ConnGame's cutting-edge technology and innovative online platform to provide technical consulting and advisory services to architects, real estate developers and governments. We view CAE as prominent architectural engineers of physical landmarks and ConnGame as innovative architects of digital engines and creators of iconic virtual worlds. We believe our acquisition of ConnGame will enable CAE to not only continue to take greater advantage of our core architectural engineering and design market but also China's large and rapidly growing online game market."
In anticipation of issuing 25 million new shares of CAE's common stock upon the closing of this acquisition, CAE has withdrawn its previously announced common stock private placement of 17 million shares to certain investors, as the Company has terminated its LOI to purchase land from Zhejiang Nine Dragon Co. However, CAE continues to cooperate with Nine Dragon on its future construction projects which include a marine theme park, movie theatres, premium retail outlets, five-star hotels, and luxurious residential apartments.
About China Architectural Engineering
China Architectural Engineering, Inc. (CAEI) is a leader in the design, engineering, fabrication and installation of high-end curtain wall systems, roofing systems, steel construction systems, and eco-energy systems. Founded in 1992, CAEI has maintained its market leadership by providing timely, high-quality, reliable, fully integrated, and cost-effective solutions. Collaborating with world-renowned architects and building engineers, the Company has successfully completed nearly one hundred large, complex and unique projects worldwide, including numerous award-winning landmarks across Asia's major cities.
For further information on China Architectural Engineering, Inc., please visit
Forward-Looking Statements
In addition to historical information, the statements set forth above may 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. Actual results could differ materially from the expectations contained in forward-looking statements as a result of risks and uncertainties, including, but not limited to, the execution of a definitive acquisition agreement; satisfactory completion of due diligence; attaining shareholder and regulatory approvals; difficulties related to integration and management of the combined operations; reduction or reversal of the Company's recorded revenue or profits due to "percentage of completion" method of accounting and expenses; resolving the dispute with the master contractor on the Dubai Metro Rail Project; the Company's ability to obtain a modification for the Waiver agreement with the bondholders applicable to the proposed acquisition of ConnGame; increasing provisions for bad debt related to the Company's accounts receivable; fluctuation and unpredictability of costs related to our products and services; the Company's plans to enter into real estate development projects such as the Nine Dragons Project; adverse capital and credit market conditions; fluctuation and unpredictability of costs related to the Company's products and services; expenses and costs associated with its convertible bonds, 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.
For more information, please contact: Investor Contact: ICR: Michael Tieu Tel: +86-10-6599-7960 Email: michael.tieu@icrinc.com Bill Zima Tel: +1-203-682-8200 Email: bill.zima@icrinc.com
SOURCE China Architectural Engineering, Inc.
bUrRpPPP!
15 years ago
Insider sales......
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25-Aug-09 KGE GROUP LTD
Beneficial Owner (10% or more) 132,065 Direct Sale at $1.80 - $1.82 per share. $239,0002
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6-Aug-09 KGE GROUP LTD
Beneficial Owner (10% or more) 5,000,000 Direct Sale at $0.90 per share. $4,500,000
kuwlness
15 years ago
10Q out, monstrous 400% backlog increase. Still getting sold down in pre-market ... time to back up the truck!!
As of June 30, 2009, the total value of backlog quadrupled sequentially to $550 million, from $136 million in the prior quarter. The backlog includes the previously announced Nine Dragons Resort project, which has a three year duration and represents $500 million of the backlog, in addition, to the Changsha Riverfront Cultural Park Museum and Changsha High Speed Train Station projects. CAE defines backlog as the total anticipated revenue from projects already begun and upcoming projects for which contracts have been signed or awarded and pending signing.
Revenues from contracts for the second quarter of 2009 were $30.6 million, versus $41.4 million in second quarter of 2008, as the Company proactively halted the large Singapore project mentioned above. Gross profit was $10.0 million, compared to $13.3 million for the same period last year. Despite of the decrease in gross profit, gross margin increased 50 basis points year-over-year to 32.7% from 32.2% in the prior year's period, and sequentially by 1,000 basis points, from 22.5% in the first quarter of 2009. The strong gross margin expansion reflects the Company's increased leverage from its advanced design capabilities and higher design revenue in the mix.
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