BEIJING, Feb. 22, 2011 /PRNewswire-Asia-FirstCall/ --
LianDi Clean Technology Inc. (OTC Bulletin Board: LNDT), ("LianDi"
or the "Company"), a leading provider of clean technology,
downstream flow equipment, engineering services and software to
China's leading petroleum and
petrochemical companies, today announced financial results for the
third fiscal quarter ended December 31,
2010.
SUMMARY FINANCIALS
Third Quarter Fiscal 2011
Results (USD) (unaudited)
|
|
(Three months ended December
31)
|
Q3
2011
|
Q3
2010
|
CHANGE
|
|
Sales
|
$48.1
million
|
$16.8
million
|
+186.0%
|
|
Gross Profit
|
$8.7
million
|
$5.4
million
|
+60.4%
|
|
GAAP Net Income
(Available to Common
Stockholders)
|
$6.1
million
|
$4.6
million
|
+31.7%
|
|
Adjusted Net Income
(Available to Common
Stockholders)
|
$7.2
million(1)
|
$4.6
million
|
+54.5%
|
|
GAAP EPS (Diluted)
|
$0.20
|
$0.17
|
+19.5%
|
|
Adjusted EPS
(Diluted)
|
$0.21
|
$0.17
|
+22.9%
|
|
|
|
Sales Breakdown - Third Quarter
Fiscal 2011 Results (USD) (unaudited)
|
|
(Three months ended December
31)
|
Q3
2011
|
Q3
2010
|
CHANGE
|
|
Sales and installation of
equipment
|
$32.8
million
|
$14.1
million
|
+132.6%
|
|
Sales of software
|
$8.4
million
|
$2.7
million
|
+211.1%
|
|
Technical services
|
$0.06
million
|
--
|
--
|
|
Sales of chemical
products
|
$6.8
million
|
--
|
--
|
|
TOTAL SALES
|
$48.1
million
|
$16.8
million
|
+186.0%
|
|
(1) Adjusted net income
available to common stockholders and EPS for Q3
2011 excludes a $1.1 million deemed dividend related to the escrow
share arrangement for preferred stock issued in the
February 26, 2010
private placement. There
was no such charge in Q3, 2010 financial results.
|
|
|
|
|
|
Third Quarter FY 2011 Results
The Company reported revenue of $48.1
million, an increase of 186.0%, compared to revenue of
$16.8 million generated in the same
period of fiscal year 2010. Growth was driven by a significant
increase in integrated equipment sales and optimization software.
During the third quarter, the Company performed equipment
installation work on 30 projects compared to 11 projects in the
same period in 2009. The Company reported $8.4 million in software sales during the
quarter, which was related to a partial installation related to the
$12 million contract signed with
PetroChina in August 2010. The
acquisition of Anhui Jucheng Fine Chemicals Co., Ltd. ("Anhui
Jucheng") that occurred during the second quarter of fiscal 2011
contributed $6.8 million to third
quarter fiscal 2011 sales. LianDi signed approximate $30 million in total new orders during the third
quarter of fiscal 2011. Excluding sales from Anhui Jucheng, which
were not present in fiscal 2010, revenues grew by 145.8% compared
to the quarter ended December 31,
2009. Total backlog at December 31,
2010 was $47 million compared
to $36 million on December 31, 2009.
Gross profit was $8.7 million and
gross margins were 18.2% for the quarter ended December 31, 2010, compared to $5.4 million and 32.4%, respectively, for the
same period in 2009. Excluding Anhui Jucheng, LianDi's gross
margins were 20%. The level of overall gross margin was mainly
affected by the relative percentage of separate software sales and
technical services volume for each reporting period and the overall
average gross margin of our equipment sales and installation
projects completed for each reporting period. Given the variance in
the product mix, margins will fluctuate on a quarter by quarter
basis.
Operating expenses for the quarter ended December 31, 2010 were approximately $2.2 million, compared to $0.6 million in the same period in 2009 due to
increases in freight, marketing, research and development expenses,
salary, traveling expenses, and share-based compensation expenses.
As a component of operating expenses, selling expenses were
$1.5 million compared to $0.3 million in the third fiscal quarter of 2010.
General and administrative expenses were $0.7 million for the quarter compared to
$0.3 million for the same period in
2009.
GAAP net income available to common stockholders for the third
quarter of 2011 totaled $6.1 million.
Adjusted net income available to common stockholders for the third
quarter of fiscal 2011, excluding a $1.06
million deemed preferred stock dividend, was approximately
$7.2 million, or $0.21 per diluted share, based on weighted
average shares outstanding of 36.6 million, compared to
$4.6 million, or $0.17 per diluted share, based on weighted
average shares outstanding of 27.4 million in the same period last
year.
"We delivered a strong quarter across each of our major
businesses segments," began Mr. Jianzhong
Zuo, Chairman, Chief Executive Officer and President of
LianDi. "Rising energy prices, enhanced exploration efforts, along
with China's shortage of oil and
petrochemical refining capacity, continue to drive robust demand
for our products and services. We renewed several important
equipment distribution contracts and signed a new exclusive
distributor agreement with Ruhrmpumpen, a leading manufacturer of
pumps located in Witten, Germany,
which allows us to expand into the $1.5
billion pump solutions market. "
"In addition, we formed a new software subsidiary, HongTeng
WeiTong Technology., Ltd. ("Hong
Teng"), to develop new software solutions for petrochemicals
manufacturers. Led by Dr. Jian Feng,
who has nearly 20 years of industry experience, Hong Teng will help solidify the innovation and
product pipeline for this high margin business."
Nine Month FY 2011 Results
Nine Month Fiscal 2011 Results
(USD) (unaudited)
|
|
(Nine months ended December
31)
|
YTD
2011
|
YTD
2010
|
CHANGE
|
|
Sales
|
$100.5
million
|
$45.6
million
|
+120.5%
|
|
Gross Profit
|
$21.8
million
|
$13.6
million
|
+59.8%
|
|
GAAP Net Income
(Available to Common
Stockholders)
|
$13.9
million
|
$11.3
million
|
+22.7%
|
|
Adjusted Net Income
(Available to Common
Stockholders)
|
$16.9
million(2)
|
$11.3
million
|
+49.3%
|
|
GAAP EPS (Diluted)
|
$0.46
|
$0.41
|
+11.7%
|
|
Adjusted EPS
(Diluted)
|
$0.50
|
$0.41
|
+20.4%
|
|
|
|
Sales Breakdown -
Nine Month Fiscal 2011 Results
(USD) (unaudited)
|
|
(Nine months ended December
31)
|
Nine
Months
2011
|
Nine
Months
2010
|
CHANGE
|
|
Sales and installation of
equipment
|
$72.8
million
|
$39.1
million
|
+86.2%
|
|
Sales of software
|
$11.2
million
|
$6.4
million
|
+75.0%
|
|
Technical services
|
$1.2
million
|
$0.02
|
--
|
|
Sales of chemical
products
|
$15.3
million
|
--
|
--
|
|
TOTAL SALES
|
$100.5
million
|
$45.6
million
|
+120.5%
|
|
(2) Adjusted net
income available to common stockholders and EPS for YTD 2011
excludes a $3.0 million deemed dividend related to
the escrow share arrangement for preferred stock issued in the
February 26, 2010 private placement.
|
|
|
|
|
|
|
Revenues for the first nine months of fiscal 2011 increased
120.5% to $100.5 million. Equipment
sales were $72.8 million, a
$33.7 million increase, or 86.0%,
from the first nine months of fiscal 2010. Sales from Anhui Jucheng
contributed $15.3 million to total
net revenue in the first nine months of fiscal 2011. Excluding
Anhui Jucheng revenues, revenues grew 86.8%.
For the first nine months of fiscal 2011, cost of sales
increased 146.3% while gross profit rose 59.8%. Gross margins fell
820 basis points year-over-year to 21.6% due to lower software
sales and the inclusion of Anhui Jucheng, which had a relatively
lower gross margin.
Selling expenses and general and administrative expenses were
$2.0 million and $2.5 million for the first nine months of fiscal
2011, respectively. Operating income was up 43.2% from the first
nine months of fiscal 2010 to $17.0
million, while operating margins were 16.9% compared to
26.1% in the same period one year ago.
Net income available to common shareholders was $13.9 million compared to $11.3 million in the prior year period. Adjusted
net income, excluding the $3.0
million deemed preferred stock dividend, was $16.9 million, 49.3% higher than net income
during the first nine months of fiscal 2010. GAAP diluted earnings
per share were $0.46 and $0.41 for the first nine months of 2010 and 2009,
respectively. Adjusted diluted earnings per share were $0.50 and $0.41 for
the first nine months of 2010 and 2009, respectively.
Balance Sheet and Cash Flow
As of December 31, 2010, the
Company had cash and cash equivalents of $41.0 million, compared to $59.2 million at March 31,
2010. The decline reflects approximately $8.4 million of prepayments to suppliers. The
Company had total stockholders' equity of $70.4 million at December
31, 2010, including $5.7
million of non-controlling interest, which represents the
49% interest of Anhui Jucheng. The current ratio was 3.2 with
working capital of $65.0 million on
December 31, 2010. Cash used
for operations was $18.0 million
through the first nine months of fiscal 2011 due to an approximate
$24.5 million increase in accounts
receivable and bills receivable, $12.4
million of which has been collected subsequent to
December 31, 2010.
Fiscal year 2011 Guidance
For fiscal year 2011, management reaffirmed revenue guidance of
$130 million, representing
year-over-year growth of 40.2% over fiscal 2010, and net income
guidance of approximately $25 million
for fiscal year 2011, representing year-over-year growth of
approximately 40%. Management expects software and the related
technical service sales to contribute 8-10% of total revenues for
fiscal year 2011. Guidance does not include any contribution from
the oil sludge cleaning business. This is the Company's current and
preliminary view, which is subject to change. The Company had 28
contracts with an aggregate value of $47
million in backlog at December 31,
2010.
Business Outlook
LianDi has served the Chinese petroleum and petrochemical
industries since 2004 and has established relationships with
international industrial equipment manufacturers, such as Cameron,
DeltaValve and Poyam Valves. LianDi is one of the few domestic
companies able to provide localized services for international
companies lacking local offices in China. As a result of the Company's thorough
understanding of the domestic market and customers' needs, it is
able to meet the high standards and requirements set by its
petroleum and petrochemical customers in China. Along with the rapid growth of the
petroleum and petrochemical industries and fixed assets investments
within these industries, LianDi has successfully increased the size
and scope of projects performed for customers since 2009. The
successful implementation of contracts and the ability to leverage
proven technology and industry solutions to optimize services will
drive revenue and earnings growth for 2011.
The newly acquired majority owned subsidiary, Anhui Jucheng,
produces and sells Polyacrylamide, an industrial chemical which is
utilized in the following areas: (1) tertiary oil recovery; (2)
wastewater, organic wastewater disposal and sewage treatments; (3)
auxiliary for papermaking industry; and (4) flocculent for river
water treatments. Management expects strong top line growth
in this business and higher operating margins as the Company begins
direct sales over the next year, thereby eliminating the cost of
using third party distributors. Management expects to achieve
normalized gross margins of 10% to 15% to be achieved by the end of
2011. Anhui Jucheng achieved a 7.7% gross margin for the period
from July 5, 2010 through
December 31, 2010.
As previously announced, LianDi has an exclusive alliance with
System Kikou Co., Ltd. ("SKK") in Japan, one of the world's leading automated
oil sludge treatment companies, to offer SKK's automated sludge
treatment services to oil refiners in China. The PRC government recently mandated
automated cleaning technologies to be used in all oil refiners in
China starting on July 1, 2010 in order to improve the safety of
refining operations. Management estimates the addressable market of
approximately $120 million, growing
at about 7% per annum. Currently, less than 20% of Chinese oil
refineries use automated cleaning technologies compared to 80%-90%
in developed countries. LianDi intends to purchase the equipment
and provide ongoing services for its customers, creating a
recurring business. LianDi projects revenues of $3.5 million and net income of $1.5 million during the first twelve months after
the initial order is shipped in May
2011, with a further acceleration in the following year.
Conference Call
The conference call will take place at 10:30 a.m. ET on Tuesday,
February 22, 2011. Interested participants should call
1-877-941-8416 when calling within the
United States or 1-480-629- 9808 when calling
internationally (passcode 4414430).
This conference call will be broadcast live over the Internet
and can be accessed by all interested parties by clicking on this
link: http://viavid.net/dce.aspx?sid=000081C8 or visiting
http://www.viavid.net, where the webcast can be accessed through
March 1, 2011.
A playback will be available through March 1, 2011. To listen, please call
1-877-870-5176 within the United
States or 1-858-384-5517 when calling internationally
(passcode 4414430).
About LianDi Clean Technology Inc.
LianDi was established in July
2004 to serve the largest Chinese petroleum and
petrochemical companies. Through its four operating subsidiaries,
Hua Shen Trading (International) Ltd., Petrochemical Engineering
Ltd., Bright Flow Control Ltd. and Beijing JianXin Petrochemical
Engineering Ltd., the Company distributes a wide range of
customized valves and equipment and provides associated value-added
technical and integration service. The Company also develops and
markets proprietary optimization software for the polymerization
process. In addition, LianDi is focused on the large, rapidly
growing, clean technology market for oil refineries, projected to
reach over $1 billion in the next 10
years. This market is expected to benefit from favorable Chinese
government policies, including tax benefits and other
incentives.
About Non-GAAP Financial Measures
To supplement the unaudited condensed consolidated statement of
income and comprehensive income presented in accordance with
Accounting Principles Generally Accepted in the United States of America ("GAAP"), we also
provided non-GAAP measures of net income available to common
stockholders and the basic and diluted earnings per shares for the
three months ended December 31, 2010,
which are adjusted from results based on GAAP to exclude the
non-cash charges recorded, which related to the escrow share
arrangement allocated to the Series A preferred stock, treated as a
deemed dividend, a deduction of net income available to common
stockholders in conjunction to the private placement we consummated
on February 26, 2010. The
non-GAAP financial measures are provided to enhance the investors'
overall understanding of our current performance in on-going core
operations as well as prospects for the future. These measures
should be considered in addition to results prepared and presented
in accordance with GAAP, but should not be considered a substitute
for or superior to GAAP results. We use both GAAP and
non-GAAP information in internally evaluating and operating our
business and therefore deem it important to provide all of this
information to investors.
The following table provides the non-GAAP financial measure and
the related GAAP measure and provides a reconciliation of the
non-GAAP measure to the equivalent GAAP measure.
Reconciliation of GAAP Net
Income (Loss) to Adjusted Net Income (Unaudited)
|
|
|
|
Three months
ended
December 31,
|
|
Nine months
ended
December 31
|
|
|
|
2010
|
|
2010
|
|
2010
|
|
2010
|
|
|
|
(US
$)
|
|
(US
$)
|
|
(US
$)
|
|
(US
$)
|
|
|
|
GAAP
|
|
NON
GAAP
|
|
GAAP
|
|
NON
GAAP
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to LianDi
Clean shareholders
|
|
7,634,042
|
|
7,634,042
|
|
18,305,148
|
|
18,305,148
|
|
Preferred stock deemed
dividend
|
|
(1,059,568)
|
|
-
|
|
(3,011,412)
|
|
-
|
|
Preferred stock
dividend
|
|
(453,464)
|
|
(453,464)
|
|
(1,425,061)
|
|
(1,425,061)
|
|
Net income attributable to
common shareholders-Basic
|
|
6,121,010
|
|
7,180,578
|
|
13,868,675
|
|
16,880,087
|
|
Preferred stock deemed
dividend
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Preferred stock
dividend
|
|
-
|
|
453,464
|
|
-
|
|
1,425,061
|
|
Net income
attributable to common shareholders-Diluted
|
|
6,121,010
|
|
7,634,042
|
|
13,868,675
|
|
18,305,148
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
|
Earnings per common
share
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.20
|
|
$
0.24
|
|
$
0.47
|
|
$
0.57
|
|
Diluted
|
|
$
0.20
|
|
$
0.21
|
|
$
0.46
|
|
$
0.50
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of common shares
outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
30,037,555
|
|
30,037,555
|
|
29,697,566
|
|
29,697,566
|
|
Diluted
|
|
30,149,326(1)
|
|
36,556,621(2)
|
|
30,0040,773(1)
|
|
36,788,057(2)
|
|
(1) For the nine and three
months ended December 31, 2010, the effect of the potential
dilutive convertible preferred stock was not included, because the
effect is anti-dilutive upon recognition of the deemed dividend in
accordance with US GAAP.
(2) For the nine and three
months ended December 31, 2010, the effect of the potential
dilutive convertible preferred stock was included, because the
effect is dilutive regardless of the recognition of the deemed
dividend under non-GAAP measures.
|
|
|
|
|
|
|
|
|
|
|
Cautionary Statement Regarding Forward-Looking
Information
This press release may contain certain "forward-looking
statements" relating to the business of LianDi and its subsidiary
companies. All statements, other than statements of historical fact
included herein, are "forward-looking statements" including
statements regarding: the impact of the proceeds from the private
placement on the Company's short term business and operations; the
general ability of the Company to achieve its commercial
objectives, including the ability of the Company to sustain growth;
the business strategy, plans and objectives of the Company and its
subsidiaries; and any other statements of non-historical
information. These forward-looking statements are often identified
by the use of forward-looking terminology such as "believes,"
"expects" or similar expressions, involve known and unknown risks
and uncertainties. The Company's actual results could differ
materially from those anticipated in these forward-looking
statements as a result of a variety of factors, including those
discussed in the Company's periodic reports that are filed with the
Securities and Exchange Commission and available on its website
(http://www.sec.gov )
For more information, please
contact:
|
|
|
|
|
|
Investor Relations:
HC International,
Inc.
Ted Haberfield,
Executive VP
Tel:
+1-760-755-2716
Email:
thaberfield@hcinternational.net
|
|
|
|
|
|
|
|
|
|
|
|
|
-- Financial Tables Follow –
LIANDI CLEAN TECHNOLOGY
INC
|
|
|
|
|
CONDENSED CONSOLIDATED BALANCE
SHEETS
|
|
|
|
|
December 31,
|
|
March 31,
|
|
|
2010
|
|
2010
|
|
|
(US
$)
|
|
(US
$)
|
|
|
(Unaudited)
|
|
(Audited)
|
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$40,981,944
|
|
$59,238,428
|
|
Restricted cash
|
4,456,529
|
|
2,964,864
|
|
Notes
receivables
|
593,685
|
|
-
|
|
Accounts receivable,
net
|
29,197,047
|
|
2,295,231
|
|
Deferred costs of
revenue
|
-
|
|
1,168,025
|
|
Inventories
|
3,988,478
|
|
30,103
|
|
Prepaid expenses and
deposits
|
1,574,826
|
|
657,257
|
|
Prepayments to
suppliers
|
12,941,091
|
|
-
|
|
Other
receivables
|
475,856
|
|
3,416,284
|
|
Trading
securities
|
11,592
|
|
11,592
|
|
Prepaid land use right –
current portion
|
47,423
|
|
-
|
|
Total
current assets
|
$94,268,471
|
|
$69,781,784
|
|
|
|
|
|
|
Other Assets
|
|
|
|
|
Property and equipment,
net
|
11,414,526
|
|
151,660
|
|
Intangible assets,
net
|
4,895,337
|
|
5,192,738
|
|
Prepaid land use
right – non current portion
|
1,821,819
|
|
-
|
|
Deposit for land use
right
|
1,056,971
|
|
-
|
|
Construction in
progress
|
4,796
|
|
-
|
|
Goodwill
|
361,869
|
|
-
|
|
Total
Assets
|
$113,823,789
|
|
$75,126,182
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Short-term bank
loan
|
$1,962,946
|
|
-
|
|
Accounts
payable
|
1,899,910
|
|
11,926
|
|
Deferred
revenue
|
134,821
|
|
2,481,771
|
|
Other payables and
accrued expenses
|
7,542,450
|
|
3,496,612
|
|
Provision for income
tax
|
192,473
|
|
59,763
|
|
Due to
shareholders
|
12,051,986
|
|
8,461,161
|
|
Due to
non-controlling interests
|
4,330,519
|
|
-
|
|
Preferred stock
dividend payable
|
480,516
|
|
184,820
|
|
Deferred tax
liabilities
|
682,778
|
|
-
|
|
Total
current liabilities
|
$29,278,399
|
|
$14,696,053
|
|
|
|
|
|
|
Total
liabilities
|
$29,278,399
|
|
$14,696,053
|
|
|
|
|
|
|
|
|
|
|
|
Commitments
and contingencies
|
|
|
|
|
|
|
|
|
|
8% Series A
contingently redeemable convertible preferred stock (25,000,000
shares authorized; par value: $0.001 per share; 5,885,970 and
7,086,078 shares issued and outstanding, respectively; aggregate
liquidation preference amount: $21,081,411 and $24,986,093,
including accrued but unpaid dividend of $480,516 and $184,820 at
December 31, 2010 and March 31, 2010, respectively)
|
14,179,357
|
|
14,059,018
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
Common stock (par
value: $0.001 per share; 50,000,000 shares authorized; 30,558,880
and 29,358,772 shares issued and outstanding,
respectively)
|
30,559
|
|
29,359
|
|
Additional paid-in
capital
|
22,960,745
|
|
19,891,932
|
|
Statutory
reserves
|
1,153,824
|
|
1,138,733
|
|
Retained
earnings
|
39,099,510
|
|
25,245,926
|
|
Accumulated other
comprehensive income
|
1,373,078
|
|
65,161
|
|
Total LianDi Clean's
stockholders' equity
|
$64,617,716
|
|
$46,371,111
|
|
|
|
|
|
|
Noncontrolling
interest
|
5,748,317
|
|
-
|
|
|
|
|
|
|
Total equity
|
$70,366,033
|
|
$46,371,111
|
|
|
|
|
|
|
Total
liabilities and stockholders'
equity
|
$113,823,789
|
|
$75,126,182
|
|
|
|
|
|
|
|
LIANDI CLEAN TECHNOLOGY
INC
|
|
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
|
|
|
Three Months Ended December 31,
|
|
Nine Months Ended December 31,
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
(US
$)
|
|
(US
$)
|
|
(US
$)
|
|
(US
$)
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
NET REVENUE
|
|
|
|
|
|
|
|
|
Sales and installation of
equipment
|
32,788,437
|
|
14,119,297
|
|
72,819,724
|
|
39,148,294
|
|
Sales of
software
|
8,392,673
|
|
2,689,490
|
|
11,198,472
|
|
6,432,532
|
|
Services
|
62,497
|
|
-
|
|
1,200,205
|
|
23,373
|
|
Sales of chemical
products
|
6,837,715
|
|
-
|
|
15,328,225
|
|
-
|
|
|
48,081,322
|
|
16,808,787
|
|
100,546,626
|
|
45,604,199
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue
|
|
|
|
|
|
|
|
|
Cost of equipment
sold
|
(27,378,949)
|
|
(11,212,809)
|
|
(58,714,285)
|
|
(31,538,330)
|
|
Amortization of
intangibles
|
(153,124)
|
|
(149,390)
|
|
(453,239)
|
|
(448,050)
|
|
Cost of
software
|
(5,456,475)
|
|
-
|
|
(5,456,475)
|
|
-
|
|
Cost of chemical products
sold
|
(6,358,085)
|
|
-
|
|
(14,155,203)
|
|
-
|
|
|
(39,346,633)
|
|
(11,362,199)
|
|
(78,779,202)
|
|
(31,986,380)
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
8,734,689
|
|
5,446,588
|
|
21,767,424
|
|
13,617,819
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Selling
expenses
|
(1,469,985)
|
|
(278,999)
|
|
(2,040,806)
|
|
(816,281)
|
|
General and
administrative expenses
|
(700,800)
|
|
(292,123)
|
|
(2,495,856)
|
|
(863,061)
|
|
Research and
development expenses
|
(65,743)
|
|
(22,128)
|
|
(194,596)
|
|
(40,432)
|
|
Total operating
expenses
|
(2,236,528)
|
|
(593,250)
|
|
(4,731,258)
|
|
(1,719,774)
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
6,498,161
|
|
4,853,338
|
|
17,036,166
|
|
11,898,045
|
|
|
|
|
|
|
|
|
|
|
Other income
(expenses), net:
|
|
|
|
|
|
|
|
|
Interest income
|
48,029
|
|
1,016
|
|
107,776
|
|
48,118
|
|
Interest and bank
charges
|
(110,385)
|
|
(105,128)
|
|
(370,718)
|
|
(402,674)
|
|
Exchange gains
(losses),net
|
(520,400)
|
|
(198,330)
|
|
(647,338)
|
|
(479,188)
|
|
Investment
income
|
-
|
|
-
|
|
6,748
|
|
-
|
|
Value added tax
refund
|
1,556,024
|
|
98,120
|
|
1,926,635
|
|
220,758
|
|
Others
|
237,655
|
|
-
|
|
529,997
|
|
19,075
|
|
Total other income
(expenses),net
|
1,210,923
|
|
(204,322)
|
|
1,553,100
|
|
(593,911)
|
|
|
|
|
|
|
|
|
|
|
Income before income tax
expense
|
7,709,084
|
|
4,649,016
|
|
18,589,266
|
|
11,304,134
|
|
Income tax
expense
|
(25,886)
|
|
-
|
|
(110,532)
|
|
(817)
|
|
Net income
|
7,683,198
|
|
4,649,016
|
|
18,478,734
|
|
11,303,317
|
|
Income attributable to
noncontrolling interests
|
(49,156)
|
|
-
|
|
(173,586)
|
|
-
|
|
Net income attributable to
LianDi Clean shareholders
|
7,634,042
|
|
4,649,016
|
|
18,305,148
|
|
11,303,317
|
|
|
|
|
|
|
|
|
|
|
Preferred stock deemed
dividend
|
(1,059,568)
|
|
-
|
|
(3,011,412)
|
|
-
|
|
Preferred stock
dividend
|
(453,464)
|
|
-
|
|
(1,425,061)
|
|
-
|
|
Net income available to LianDi
Clean's common stockholders
|
6,121,010
|
|
4,649,016
|
|
13,868,675
|
|
11,303,317
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
Earnings per common
share
|
|
|
|
|
|
|
|
|
Basic
|
0.20
|
|
0.17
|
|
0.47
|
|
0.41
|
|
Diluted
|
0.20
|
|
0.17
|
|
0.46
|
|
0.41
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of common shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
30,037,555
|
|
27,354,480
|
|
29,697,566
|
|
27,354,480
|
|
Diluted
|
30,149,326
|
|
27,354,480
|
|
30,040,773
|
|
27,354,480
|
|
|
|
|
|
|
|
|
|
LIANDI CLEAN TECHNOLOGY
INC
|
|
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
For the nine months ended December 31,
|
|
|
|
2010
|
|
2009
|
|
|
|
(US
$)
|
|
(US
$)
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Cash flows
from operating activities
|
|
|
|
|
|
Net income
|
|
$18,478,734
|
|
$11,303,317
|
|
Adjustments for:
|
|
|
|
|
|
Depreciation of property
and equipment
|
|
633,805
|
|
25,824
|
|
Amortization of intangible
assets
|
|
487,889
|
|
451,943
|
|
Share-based compensation
cost
|
|
178,941
|
|
-
|
|
Investment loss (gains) on
trading securities
|
|
-
|
|
(18,957)
|
|
Decrease (increase) in
assets:
|
|
|
|
|
|
Accounts
receivable
|
|
(24,245,178)
|
|
6,809,098
|
|
Notes
receivable
|
|
(252,318)
|
|
(5,519,312)
|
|
Prepayment to
suppliers
|
|
(8,437,963)
|
|
7,564,317
|
|
Inventories
|
|
(1,249,552)
|
|
5,573
|
|
Deferred costs, prepaid
expenses and other current assets
|
|
(1,121,312)
|
|
-
|
|
Increase (decrease) in
liabilities:
|
|
|
|
|
|
Accounts
payable
|
|
(2,139,760)
|
|
11,922
|
|
Deferred revenue, accruals
and other payables
|
|
(343,720)
|
|
(12,792,683)
|
|
Deferred tax
liabilities
|
|
(26,259)
|
|
-
|
|
Net cash
provided by (used in) operating activities
|
|
(18,036,693)
|
|
7,841,042
|
|
|
|
|
|
|
|
Cash flows
from investing activities
|
|
|
|
|
|
Proceeds from sales of
short-term investments
|
|
-
|
|
39,509
|
|
Purchase of property,
plant and equipment
|
|
(142,409)
|
|
(13,285)
|
|
Purchase of intangible
assets
|
|
-
|
|
(14,055)
|
|
Net cash from acquisition
of subsidiaries
|
|
2,385,523
|
|
-
|
|
Land restructuring
compensation deposit
|
|
(970,169)
|
|
-
|
|
Repayment from (advance
to) other entities
|
|
(1,589,356)
|
|
14,425,407
|
|
Net cash
used in investing activities
|
|
(316,411)
|
|
14,437,576
|
|
|
|
|
|
|
|
Cash flows
from financing activities
|
|
|
|
|
|
Increase (decrease) in
restricted cash
|
|
(1,460,913)
|
|
(651,443)
|
|
Repayment of short-term
bank loans
|
|
(592,470)
|
|
-
|
|
Repayment to
non-controlling interests
|
|
(828,325)
|
|
-
|
|
Repayment to (advance
from) shareholders
|
|
3,067,038
|
|
(8,519,255)
|
|
Payment of preferred stock
dividend
|
|
(1,129,365)
|
|
-
|
|
Net cash
provided by (used in) financing activities
|
|
(944,035)
|
|
(9,170,698)
|
|
|
|
|
|
|
|
Effect of foreign currency
translation
|
|
1,040,655
|
|
27,029
|
|
|
|
|
|
|
|
Net
(decrease) increase in cash and cash equivalents
|
|
(18,256,484)
|
|
13,134,949
|
|
|
|
|
|
|
|
Cash and cash
equivalents, beginning of period
|
|
59,238,428
|
|
5,018,813
|
|
Cash and
cash equivalents, end of period
|
|
$40,981,944
|
|
$18,153,762
|
|
|
|
|
|
|
SOURCE LianDi Clean Technology Inc.