China Ritar Power Announces First Quarter Fiscal 2010 Results
SHENZHEN, China, May 17 /PRNewswire-Asia-FirstCall/ -- China Ritar Power Corp. (Nasdaq: CRTP) ("China Ritar" or the "Company"), a leading Chinese manufacturer of innovative nano gel and environmentally friendly batteries, today announced its financial results for the first quarter of fiscal year 2010 ended on March 31, 2010.
First Quarter Highlights
-- Revenue increased 51% year-over-year to $24.8 million
-- Domestic sales increased to 26% of total revenue
-- Gross profit increased 45% year-over-year to $4.8 million
-- Net income increased 197% year-over-year to $1.6 million
-- Fully diluted earnings per share were $0.07, up from $0.03 in first
quarter 2009
"We are extremely pleased with our financial results for the quarter. Our strong growth is the result of continued demand for our lead acid batteries resulting in revenue from domestic and international markets increasing 72% and 45%, respectively," Mr. Jiada Hu, China Ritar's Chairman and Chief Executive Director commented. "Moreover, this quarter we were extremely honored to have our batteries selected to power the Brazilian Pavilion at the World Expo 2010 in Shanghai which enhances our strong market position and reputation for high quality batteries developed using advanced technology."
Revenue was $24.8 million for the first quarter of 2010, up 51.4% from revenue of $16.4 million in the first quarter of 2009. This increase in revenue was due to an increase in sales volume of 31.3% and a 15.3% increase in the Company's average selling price (ASP). Batteries used for Telecom, Alternative energy, UPS and Light electronic vehicles (LEV) markets accounted for 30%, 27%, 34% and 9% of total sales of the first quarter of 2010, respectively. International sales represented 74.3% of total sales with domestic sales representing the balance of 25.7%.
Gross profit for the quarter increased 44.9% to $4.8 million from $3.3 million in the same period of 2009. Gross margin for first quarter of 2010 was 19.2% compared to 20.1% in the first quarter of 2009.
Operating expenses were $2.5 million or 10.2% of sales, compared to $2.3 million or 14.3% of sales in the first quarter of 2009. The increase in operating expenses is mainly due to an increase in the dollar amount of $0.24 million for other selling, general and administrative expenses due to the Company's expanded production and sales volume during the first quarter.
Operating profit for the first quarter was $2.2 million, up 136.3% from $0.9 million in the first quarter of 2009. Operating margin was 9.0% compared to 5.8% in the same period a year ago.
Net income was $1.6 million in the first quarter of 2010, up 196.7% from $0.5 million in net income from the same period a year ago. Fully diluted earnings per share were $0.07 compared to fully diluted earnings per share of $0.03 in the first quarter of 2009.
Financial Condition
As of March 31, 2010, China Ritar had $20.9 million in cash and equivalents and restricted cash, $42.7 million in working capital and $38.8 million in total liabilities. Shareholders' equity stood at $57.3 million, up from $55.4 million at year end 2009.
Business Outlook
China Ritar Power has been granted a new industrial park by the Hengyang government. The industrial park will be completed during the second quarter of 2010 and the Company expects to begin installing equipment for 10 production lines in the second half of the year. Once completed, the total number of production lines will increase from 19 to 29.
"We are upbeat on the outlook for 2010 as opportunities in our target niche markets remain robust. Specifically, the telecom industry is expected to spend approximately $10-12 million as they build out the 3G network in China," commented Mr. Hu. "Over the past year, we have been working closely with the top three telecom providers in China and have been approved as a qualified supplier for China Unicom and China Mobile and expect to be approved by China Telecom this year."
Conference Call
China Ritar will host a conference call at 9:00 am EDT on Tuesday, May 18, 2010 to discuss the 2010 first quarter results. To participate in the conference call, please dial the following number fifteen minutes prior to the scheduled conference call time: 888-339-2688. International callers should dial 617-847-3007. The pass code for the call is 83490716. If you are unable to participate in the call at this time, a replay will be available on Tuesday, May 18, 2010 at 11:00 AM ET through Tuesday June 1, 2010. To access the replay, dial 888-286-8010, international callers should dial 617-801-6888. The conference pass code is 79945385. This conference call will be broadcast live over the Internet and can be accessed by all interested parties by clicking on http://ir.ritarpower.com/en . Please access the link at least fifteen minutes prior to the start of the call to register, download, and install any necessary audio software. For those unable to participate during the live broadcast, a 90-day replay will be available shortly after the call by accessing the same link.
About China Ritar Corp.
China Ritar designs, develops, manufactures and markets environmentally friendly, lead acid batteries with a wide range of capacities and applications, including telecommunications, Uninterruptible Power Supply (UPS) devices, Light Electrical Vehicles (LEV), and alternative energy systems (solar and wind power). China Ritar sells, markets and services six series and 197 models of Ritar-branded, cadmium-free valve-regulated lead-acid (VRLA) batteries. Products are sold worldwide with sales in 81 countries including China, India, and numerous markets in Europe and the Americas. Additional information can be found at the Company's website http://www.ritarpower.com .
Safe Harbor Statement
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Certain statements in this press release and oral statements made by China Ritar on its conference call in relation to this release, constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included herein are forward-looking statements. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. 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 and available from the Securities and Exchange Commission. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
For more information, please contact:
Elite IR
John Marco, Partner
Tel: +1-310-819-2948
Email: [email protected]
Leslie J. Richardson, Partner
Tel: +852-3183 0283
Email: [email protected]
-FINANCIAL TABLES FOLLOW-
CHINA RITAR POWER CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31 December 31
2010 2009
(Unaudited) (Audited)
ASSETS
Current assets:
Cash and cash equivalents $16,065,653 $20,459,361
Restricted cash 4,846,846 5,900,649
Accounts receivable, net of
allowances of $1,115,631 and
$1,115,321 23,730,447 24,920,825
Receivable from sale of a
subsidiary 417,503 417,387
Due from a former subsidiary 3,904,185 3,925,348
Inventory 22,724,610 19,484,224
Advance to suppliers 3,007,890 2,477,449
Other current assets 4,250,888 3,915,605
Total current assets 78,948,022 81,500,848
Non-current assets:
Property, plant and equipment, net 16,340,688 16,248,551
Construction in progress 94,185 136,443
Intangible assets, net 8,233 9,407
Land use right 465,976 468,265
Rental and utility deposits 82,462 82,439
Deferred income tax assets 119,547 115,064
Total assets $96,059,113 $98,561,017
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $14,081,871 $16,658,868
Income and other taxes payable 4,660,234 3,986,935
Accrued salaries 498,191 502,978
Bills payable 9,598,172 13,498,001
Other current liabilities 2,048,698 2,800,879
Current portion of long term loans 1,342,846 1,342,473
Short-term loans 3,996,308 1,464,515
Total current liabilities 36,226,320 40,254,649
Long-term loans 2,548,721 2,881,188
Total liabilities 38,775,041 43,135,837
Stockholders' equity:
Preferred stock, $.001 par value,
10,000,000 shares authorized, none
issued and outstanding -- --
Common stock at $.001 par value;
100,000,000 shares authorized,
21,858,925 and 21,450,238 shares
issued and outstanding 21,859 21,450
Additional paid-in capital 31,721,124 31,461,723
Retained earnings 22,331,131 20,745,985
Accumulated other comprehensive
income 3,209,958 3,196,022
Total equity 57,284,072 55,425,180
Total liabilities and stockholders'
equity $96,059,011 $98,561,017
CHINA RITAR POWER CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE
INCOME (UNAUDITED)
For the Three Months Ended
March 31,
2010 2009
CONTINUING OPERATIONS
Net revenue $24,808,360 $16,383,661
Cost of sales 20,037,964 13,091,145
Gross profit 4,770,396 3,292,516
Operating expenses:
Salaries 565,842 394,893
Sales commission 531,551 749,224
Shipping and handling cost 285,260 281,946
Other selling, general and
administrative expenses 1,158,642 923,076
Total operating expenses 2,541,295 2,349,139
Operating profit 2,229,101 943,377
Other income / (expenses):
Interest income 44,827 57,649
Other income -- 2,540
Interest expenses (148,159) (147,424)
Foreign currency exchange loss (66,894) (49,316)
Other expenses (2,749) (1,663)
Total other expenses, net (172,975) (138,214)
Income from continuing operations
before income taxes 2,056,126 805,163
Income taxes 470,980 117,047
Income from continuing operations 1,585,146 688,116
DISCONTINUED OPERATIONS
Loss from discontinued operations,
net of taxes -- (153,857)
Net income 1,585,146 534,259
Add: Loss from discontinued
operations attributable to
non-controlling interest -- 7,694
Net income attributable to China
Ritar stockholders $1,585,146 $541,953
Other comprehensive income
attributable to China Ritar
stockholders:
Foreign currency translation
adjustment 13,936 107,421
Comprehensive income attributable to
China Ritar Stockholders 1,599,082 649,374
Comprehensive loss attributable to
non-controlling interest -- (7,695)
Comprehensive income $1,599,082 $641,679
Earnings (loss) per share
attributable to China Ritar
stockholders:
Basic:
- Income from continuing operations $0.07 $0.06
- Income (loss) from discontinued
operations -- (0.03)
- Net income $0.07 $0.03
Diluted:
- Income from continuing operations 0.07 0.06
- Income (loss) from discontinued
operations -- (0.03)
- Net income $0.07 $0.03
Weighted average number of shares
outstanding:
- Basic 21,714,637 19,133,154
- Diluted 21,714,637 19,133,154
CHINA RITAR POWER CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
For the Three Months Ended
March 31,
2010 2009
Cash Flows from Continuing Operating
Activities:
Net income $1,585,146 $534,259
Loss from discontinued operations, net
of taxes -- 153,857
Income from continuing operations 1,585,146 688,116
Adjustments to reconcile net income to
net cash provided by operating
activities:
Depreciation of property, plant and
equipment 384,904 273,861
Amortization of intangible assets and
land use right 3,594 3,592
Loss (gain) on disposal of property,
plant and equipment 2,721 (365)
Unrealized (loss) gain on derivative
instruments -- (22,992)
Changes in operating working capital
items:
Accounts receivable 1,197,244 3,064,437
Inventory (3,234,773) (1,785,432)
Advance to suppliers (529,721) --
Notes receivables (342,512) --
Deferred income tax assets (4,451) --
Other current assets 8,339 (799,486)
Accounts payable (2,581,477) (366,796)
Income and other tax payable 672,150 128,822
Accrued salaries (4,927) (110,718)
Bills payable (3,903,358) 880,465
Other current liabilities (754,576) (89,585)
Net cash provided by operating
activities (7,501,697) 1,863,919
Cash Flows from Continuing Investing
Activities:
Repayment from a former subsidiary -
Shanghai Ritar 22,254 --
Purchase of property, plant and
equipment (436,603) (496,069)
Sales proceeds of disposal of
property, plant and equipment 3,662 4,388
Net cash used in investing activities (410,687) (491,681)
Cash Flows from Continuing Financing
Activities:
Proceeds from stock issued for warrant
exercised 259,810 --
Proceeds from bank borrowings 3,647,443 1,626,177
Repayment of bank borrowings (1,449,456) (3,738,257)
Restricted cash 1,055,384 1,327,610
Net cash provided by financing
activities 3,513,181 (784,470)
Cash Flows from Discontinued
Operations Activities:
Net cash used in discontinued
operating activities -- (464,515)
Net cash used in discontinued
investing activities -- 314,805
Net cash used in discontinued
financing activities -- --
Effect of exchange rate changes on
cash -- (175)
Change in cash from discontinued
operations -- 149,885
Net cash used in discontinued
operations -- --
Effect of exchange rate changes on
cash and cash equivalents 5,495 (41,392)
Net (decrease) increase in cash and
cash equivalents (4,393,708) 546,376
Cash and cash equivalents, beginning
of period 20,459,361 7,541,697
Cash and cash equivalents, end of
period $16,065,653 $8,088,073
SOURCE China Ritar Power Corp.
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