Duoyuan Printing Announces Results for Second Quarter Ended December 31, 2009
Net Revenues Up 15.1% to $42.4 million Year-Over-Year. Continued High Margins and Growth in Sales of Multicolor Printing Presses.
BEIJING, Feb. 10 /PRNewswire-Asia-FirstCall/ -- Duoyuan Printing, Inc. (NYSE: DYP) ("Duoyuan Printing" or the "Company"), a leading offset printing equipment supplier in China, today announced its financial results for the three months ended December 31, 2009.
Highlights for the Second Quarter Ended December 31, 2009
-- Net revenues in the second quarter were $42.4 million, an increase of
15.1% from $36.8 million for the same period last year
-- Gross profit margin (non-GAAP) in the second quarter was 54.0%,
compared to 54.9% for the same period last year
-- Operating income and margins (non-GAAP) in the second quarter were
$17.0 million or 40.1%, compared to $15.4 million or 41.9% for the same
period last year
-- Net income and margins (non-GAAP) in the second quarter were $13.8
million or 32.4%, compared to $12.5 million or 34.0% for the same
period last year
-- Diluted earnings per Share (non-GAAP) in the second quarter was $0.47
-- On November 6, 2009 Duoyuan Printing completed an initial public
offering from which the Company received aggregate net proceeds of
approximately $42 million
"I am pleased to report that Duoyuan Printing has again delivered strong results in the first reporting period since our successful IPO in November, further building on our history of revenue growth and profitability," said Mr. Wenhua Guo, founder and chairman of Duoyuan Printing. "We are looking forward to leveraging our established brand, loyal distributor network and strong financial position to take advantage of China's large and fast-growing demand for printed products."
"Duoyuan Printing delivered another solid quarter of revenue growth and high margins, due to increased sales of multicolor printing presses combined with continued efficiency gains from our vertically integrated production facilities," commented Mr. Christopher Holbert, Chief Executive Officer. "Looking ahead, the planned improvements to our Hunan facility and the introduction of our cold-set equipment line, due in the second half of calendar 2010, will help us to further capture growing demand in the market and drive our continued growth."
Three Months Ended December 31, 2009 Results
Duoyuan Printing's net revenues for the three months ended December 31, 2009 were $42.4 million, an increase of 15.1% year-over-year. The increase in net revenues was primarily due to the growth in sales of multicolor presses. Sales of multicolor large format presses for the three months ended December 31, 2009 were $22.1 million, an increase of 27.9%, from $17.3 million in the prior year period. The sales of multicolor small format presses for the three months ended December 31, 2009 were $14.9 million, an increase of 17.6%, from $12.6 million in the prior year period. Demand for multicolor presses increased due to a wider acceptance of various new products that were introduced in the last and current fiscal years and also due to increased advertising and promotion. The sales of single color small format presses for the three months ended December 31, 2009 were $1.8 million, an increase of 10.9%, from $1.6 million in the prior year period as the Company continues to serve those customers who are replacing or upgrading their small format press equipment. The sales of single color large format presses for the three months ended December 31, 2009 were $3.2 million, a decrease of 22.5%, from $4.2 million in the prior year period as the Company focused on the promotion of multicolor presses. For our computer-to-plate systems, or CTP systems, revenues were constant at $1.0 million for the quarters ended December 31, 2009 and 2008, respectively.
Gross profit (non-GAAP) for the three months ended December 31, 2009 was $22.9 million, an increase of 13.2% from $20.2 million for the same period last year. The year-over-year increase was primarily due to the growth in sales of multicolor presses. Gross profit margin (non-GAAP) was 54.0%, compared to 54.9% for the prior year period. The year over year minor decrease was primarily due to depreciation of capital expenditures from prior years.
Selling expenses (non-GAAP) were $3.8 million, an increase of 27.7% from $3.0 million for the same period last year. As a percentage of revenues, selling expenses were 8.9% for the three months ended December 31, 2009 compared to 8.0% for the prior year period. The increase was primarily due to increased advertising and promotion of multicolor presses.
General and administrative expenses (non-GAAP) were $1.6 million, an increase of 18.3% from $1.3 million for the same period last year. However, as a percentage of revenues, they were relatively steady at 3.8% for the three months ended December 31, 2009, compared to 3.7% for the same period last year.
Research and development expenses (non-GAAP) for the three months ended December 31, 2009 were 1.3% of revenues, which percentage was unchanged from the prior year period. The Company plans to introduce a new single color large format press to the market before the year ended June 30, 2010. The Company also plans to introduce a new multicolor large format press, CTP system and cold-set corrugated paper machine during the quarters ended September 30, 2010 and December 31, 2010.
Operating income (non-GAAP) was $17.0 million for the three months ended December 31, 2009 compared to $15.4 million in the prior year period. Operating margin was 40.1%, compared to 41.9% for the prior year period.
Net income (non-GAAP) was $13.8 million for the three months ended December 31, 2009 compared to $12.5 million in the prior year period. Net margin was 32.4% compared to 34.0% for the prior year period. Diluted earnings per share (non-GAAP) was $0.47 based on of 29.2 million weighted-average diluted shares outstanding for the three months ended December 31, 2009, compared to $0.50 based on 25.0 million weighted-average diluted shares outstanding for the same period last year.
Income tax provision was $2.8 million compared to $1.6 million for the same period last year, an increase of 77.6% primarily due to the increase in revenue of 15.1% and the increase in the income tax rate for the Company's operating subsidiary, Duoyuan China, which increased from 12.5% to 25% on January 1, 2009.
As of December 31, 2009, the Company had a cash balance of $96.7 million. For the six months ending December 31, 2009, the Company generated an operating cash flow of approximately $24.2 million compared to $20.6 million in the prior year period.
Six Months Ended December 31, 2009 Results
For the six months ended December 31, 2009, revenues were $75.7 million, representing a 20.1% increase from $63.0 million for the same period last year. Gross profit (non-GAAP) was $40.4 million, an increase of 18.6% from $34.1 million for the prior year period. Gross profit margin (non-GAAP) for the six months ended December 31, 2009, was 53.4% compared to 54.1% for the prior year period. Operating income (non-GAAP) for the six months ending December 31, 2009, was $29.5 million, an increase of 17.4% from $25.1 million for the same period last year. Net income (non-GAAP) increased 11.9% to $23.5 million, for the six months ended December 31, 2009, as compared to $21.0 million for the six months ended December 31, 2008.
Business Outlook
Our business is affected by seasonality in that typically the quarter ending March 31 is the weakest because most businesses are closed during the Chinese New Year holiday. However, Duoyuan Printing expects steady year-over-year growth for the third quarter ended March 31, 2010 due to the ongoing growth in sales of the Company's multicolor printing products as well as the continuing growth of the Chinese economy.
Based on information available as of February 10, 2010, Duoyuan Printing currently expects to generate revenues in an amount ranging from $20 million to $21 million for the third quarter ended March 31, 2010, representing a year-over-year increase in the range of 15% to 20%. This forecast reflects the Company's current and preliminary view, which is subject to change.
Non-GAAP Financial Measures:
In addition to the results reported in accordance with accounting principles generally accepted in the United States ("GAAP"), we have included in this press release certain non-GAAP financial measure, including "gross profit," "gross profit margin," "operating income," "operating margin," "net income," "net margin," "diluted earnings per share," "selling expense," "general and administrative expense" and "research and development expense." These financial measures are not consistent with GAAP because they do not reflect certain share-based compensation expenses and changes in fair value of derivative instruments. We provide reconciliations of these non-GAAP financial measures to their most directly comparable financial measures as calculated and presented in accordance with GAAP at the end of this press release.
We believe that these non-GAAP measures provide useful information to management and investors regarding financial and business trends relating to our financial condition and results of operations. We believe that these non-GAAP measures, in combination with our financial results calculated in accordance with GAAP, provide investors with additional perspective regarding the impact of certain share-based compensation expenses and changes in fair value of derivative instruments. We further believe that these excluded items do not accurately reflect the underlying performance of our continuing operations for the periods in which they are incurred, even though some of these excluded items may be incurred and reflected in the Company's GAAP financial results in the foreseeable future.
Cautions on Use of Non-GAAP Measures
As noted above, these non-GAAP financial measures are not consistent with GAAP because they do not reflect certain share-based compensation expenses and changes in fair value of derivative instruments. Management believes investors will benefit from greater transparency in referring to these non-GAAP financial measures when assessing the Company's operating results, as well as when forecasting and analyzing future periods. However, management recognizes that:
-- these non-GAAP financial measures are limited in their usefulness and
should be considered only as a supplement to the Company's GAAP
financial measures;
-- these non-GAAP financial measures should not be considered in isolation
from, or as a substitute for, the Company's GAAP financial measures;
-- these non-GAAP financial measures should not be considered to be
superior to the Company's GAAP financial measures; and
-- these non-GAAP financial measures were not prepared in accordance with
GAAP and investors should not assume that the non-GAAP financial
measures presented in this earnings release were prepared under a
comprehensive set of rules or principles.
Further, these non-GAAP financial measures may be unique to the Company, as they may be different from non-GAAP financial measures used by other companies. As such, this presentation of non-GAAP financial measures may not enhance the comparability of the Company's results to the results of other companies.
A reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure or measures appears at the end of this press release.
Conference Call
A conference call to discuss second quarter results is scheduled for Thursday, February 11, 2010, at 7:00 a.m. Eastern Time. Dial-in details for the earnings conference call are as follows:
International: +656-735-7955
US: +1-718-354-1231
UK: +0808-234-6646
Hong Kong: +852-2475-0994
Please dial-in 10 minutes before the call is scheduled to begin and provide the passcode to join the call. The passcode is: 52376354
A replay of the conference call may be accessed by phone at the following number until February 18, 2010.
International: +61-2-8235-5000
Passcode: 52376354
Additionally, a live and archived webcast of the conference call will be available at http://ir.duoyuan.com .
About Duoyuan Printing
Duoyuan Printing (NYSE: DYP) is a leading manufacturer of commercial offset printing presses in China. The Company combines technical innovation and precision engineering to offer a broad range of printing equipment and solutions. Duoyuan Printing has manufacturing and research and development facilities in Langfang, Hebei Province and Shaoyang, Hunan Province in addition to a distribution and service network with over 85 distributors that operate in over 65 cities and 28 provinces in China. Headquartered in Beijing, the Company is one of the largest non-government owned major offset printing equipment and solutions providers in China. For further information, please visit Duoyuan Printing's website http://www.duoyuan.com .
Safe Harbor Statement
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that involve risks, uncertainties and assumptions. All statements other than statements of historical fact in this press release are forward-looking statements, including but not limited to, our future financial condition or results of operation, the completion of planned improvements to our Hunan facility, our introduction of a multicolor large format press, CTP system and cold-set corrugated paper machine during the second half of 2010, or at all, the ongoing growth in the sales of our multicolor printing products, and the continuing growth of the Chinese economy. These forward-looking statements are based on management's current expectations, assumptions, estimates and projections about the Company and the industry in which the Company operates, but involve a number of unknown risks and uncertainties, including, without limitation, our ability to sustain our recent profitability and growth rates, the possibility that we may not meet production demands and standards at a reasonable cost, increased competition in the offset printing equipment market, our ability to develop and sell new products or penetrate new markets, and other risk factors detailed in our Annual Report on Form 10-K for the fiscal year ended June 30, 2009 and in our subsequent reports on Form 10-Q filed with the Securities and Exchange Commission and available at http://www.sec.gov . The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and actual results may differ materially from the anticipated results. You are urged to consider these factors carefully in evaluating the forward-looking statements contained herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements
For investor and media enquiries please contact:
Duoyuan Printing, Inc.
William Suh, CFO
Phone: +86-10-6021-2222 (Beijing)
Email: [email protected]
Brunswick Group
Philip Lisio
Phone: +86-10-6566-2256
Michael Fuchs
Phone: +86-10-6566-2256
Email: [email protected]
DUOYUAN PRINTING, INC. AND SUBSIDIARIES
(FORMERLY KNOWN AS ASIAN FINANCIAL, INC.)
CONSOLIDATION STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME
FOR THE THREE MONTHS AND SIX MONTHS ENDED DECEMBER 31, 2009 AND 2008
(UNAUDITED)
Three months ended Six months ended
December 31, December 31,
2009 2008 2009 2008
REVENUES, net $42,408,047 $36,837,283 $75,702,970 $63,016,714
COST OF REVENUES 19,564,713 16,609,073 35,353,104 28,939,825
GROSS PROFIT 22,843,334 20,228,210 40,349,866 34,076,889
RESEARCH AND
DEVELOPMENT
EXPENSES 628,674 490,084 992,833 1,184,601
SELLING EXPENSES 3,908,445 2,952,037 7,064,821 5,498,952
GENERAL AND
ADMINISTRATIVE
EXPENSES 3,628,448 1,344,637 5,118,646 2,276,335
INCOME FROM
OPERATIONS 14,677,767 15,441,452 27,173,566 25,117,001
CHANGE IN FAIR VALUE
OF DERIVATIVE
INSTRUMENTS (3,344,611) 108,669 (3,233,996) 164,076
OTHER INCOME
(EXPENSE), net
Non-operating expenses -- (956,936) -- (956,936)
Interest expense (211,737) (213,664) (446,126) (426,739)
Interest income
and other income 40,280 35,708 71,927 69,187
Other expense, net (171,457) (1,134,892) (374,199) (1,314,488)
INCOME BEFORE PROVISION
FOR INCOME TAXES AND
NONCONTROLLING
INTEREST 11,161,699 14,415,229 23,565,371 23,966,589
PROVISION FOR
INCOME TAXES 2,849,832 1,604,339 5,258,478 2,531,130
NET INCOME 8,311,867 12,810,890 18,306,893 21,435,459
Less: Net income
attributable to
noncontrolling
interest 223,951 168,986 381,904 278,723
NET INCOME
ATTRIBUTABLE TO
DUOYUAN PRINTING,
INC. 8,087,916 12,641,904 17,924,989 21,156,736
OTHER COMPREHENSIVE
INCOME
Foreign currency
translation gain 1,810 308,470 185,027 564,737
COMPREHENSIVE
INCOME ATTRIBUTABLE
TO DUOYUAN PRINTING,
INC. $8,089,726 $12,950,374 $18,110,016 $21,721,473
BASIC WEIGHTED
AVERAGE NUMBER
OF SHARES 28,367,934 25,000,050 26,683,992 25,000,050
DILUTED WEIGHTED
AVERAGE NUMBER
OF SHARES 29,202,495 25,000,050 27,101,273 25,000,050
BASIC EARNING
PER SHARE $0.29 $0.51 $0.67 $0.85
DILUTED EARNING PER
SHARE $0.28 $0.51 $0.66 $0.85
DUOYUAN PRINTING, INC. AND SUBSIDIARIES
(FORMERLY KNOWN AS ASIAN FINANCIAL, INC.)
CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31, 2009 AND JUNE 30, 2009
December 31, June 30,
2009 2009
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash $96,743,881 $31,044,070
Accounts receivable, net of
allowance for doubtful accounts
of $1,612,406 and $1,401,689 as
of December 31, 2009 and June
30, 2009, respectively 43,668,616 37,259,616
Inventories 25,150,892 25,883,242
Other current assets 570,703 26,912
Total current assets 166,134,092 94,213,840
PLANT AND EQUIPMENT, net 41,826,421 43,123,153
OTHER ASSETS:
Intangible assets, net 3,904,742 3,939,476
Advances on equipment purchases 7,284,609 7,274,677
Total other assets 11,189,351 11,214,153
Total assets $219,149,864 $148,551,146
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Lines of credit $14,376,600 $14,357,000
Accounts payable 1,292,853 756,116
Accrued liabilities 3,017,033 2,251,419
Taxes payable 4,821,371 1,512,727
Total current liabilities 23,507,857 18,877,262
Derivative instrument
liabilities 5,136,268 1,180,477
Total Liabilities 28,644,125 20,057,739
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY:
Preferred stock; $0.001 par value;
1,000,000 shares authorized; no
shares issued and outstanding
as of December 31, 2009 and
June 30, 2009 -- --
Common stock; $0.001 par value;
100,000,000 shares authorized;
30,563,217 shares issued and
outstanding as of December 31,
2009 and 25,000,050 shares issued
and outstanding as of June 30, 2009 30,563 25,000
Additional paid-in capital 70,272,694 27,263,040
Statutory reserves 11,179,137 9,428,573
Retained earnings 95,903,555 79,226,497
Accumulated other comprehensive
income 10,973,612 10,788,585
Total Duoyuan Printing, Inc.
shareholders' equity 188,359,561 126,731,695
NONCONTROLLING INTEREST 2,146,178 1,761,712
Total equity 190,505,739 128,493,407
Total liabilities and
equity $219,149,864 $148,551,146
DUOYUAN PRINTING, INC. AND SUBSIDIARIES
(FORMERLY KNOWN AS ASIAN FINANCIAL, INC.)
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Common Stock Retained earnings
Additional
Number of paid-in Statutory
shares Amount capital reserves Unrestricted
BALANCE,
June 30, 2008 25,000,050 $25,000 $27,263,040 $6,000,090 $50,058,176
Net income 21,156,736
Adjustment to
statutory
reserves 3,558,242 (3,558,242)
Foreign currency
translation
adjustments
BALANCE,
December
31, 2008
(Unaudited) 25,000,050 $25,000 $27,263,040 $9,558,332 $67,656,670
Net income 11,440,068
Adjustment to
statutory
reserves (129,759) 129,759
Foreign currency
translation
adjustments
BALANCE,
June 30, 2009 25,000,050 $25,000 $27,263,040 $9,428,573 $79,226,497
Cumulative
effect of
reclassifi-
cation of
warrants (2,234,538) 502,633
BALANCE, July 1,
2009, as
adjusted 25,000,050 $25,000 $25,028,502 $9,428,573 $79,729,130
Issuance of
ordinary
shares in
connection with
Initial Public
Offering, net of
offering costs 5,500,000 5,500 41,910,036
Stock-based
compensation 2,324,109
Issuance of
ordinary shares
in connection
with cashless
exercise of
warrants 63,167 63 1,010,047
Net income 17,924,989
Adjustment to
statutory
reserves 1,750,564 (1,750,564)
Foreign currency
translation
adjustments
BALANCE,
December
31, 2009
(Unaudited) 30,563,217 $30,563 $70,272,694 $11,179,137 $95,903,555
Accumulated
other comprehensive Noncontrolling
income Interest Total
BALANCE, June 30, 2008 $10,460,031 $1,292,843 $95,099,180
Net income 278,723 21,435,459
Adjustment to statutory
reserves --
Foreign currency
translation adjustments 564,737 7,603 572,340
BALANCE, December 31, 2008
(Unaudited) $11,024,768 $1,579,169 $117,106,979
Net income 184,830 11,624,898
Adjustment to statutory
reserves --
Foreign currency
translation adjustments (236,183) (2,287) (238,470)
BALANCE, June 30, 2009 $10,788,585 $1,761,712 $128,493,407
Cumulative effect of
reclassification of
warrants (1,731,905)
BALANCE, July 1, 2009, as
adjusted $10,788,585 $1,761,712 $126,761,502
Issuance of ordinary
shares in connection with
Initial Public Offering,
net of offering costs 41,915,536
Stock-based
compensation 2,324,109
Issuance of
ordinary shares
in connection
with cashless
exercise of
warrants 1,010,110
Net income 381,904 18,306,893
Adjustment to
statutory
reserves --
Foreign currency
translation
adjustments 185,027 2,562 187,589
BALANCE, December 31, 2009
(Unaudited) $10,973,612 $2,146,178 $190,505,739
DUOYUAN PRINTING, INC. AND SUBSIDIARIES
(FORMERLY KNOWN AS ASIAN FINANCIAL, INC.)
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED DECEMBER 31, 2009 AND 2008
(UNAUDITED)
2009 2008
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income $17,924,989 $21,156,736
Adjustments to reconcile net income
to net cash provided by (used in)
operating activities:
Noncontrolling interest 381,904 278,723
Depreciation 1,819,403 1,345,191
Amortization 40,096 40,038
Bad debt expense
208,718 --
Change in fair value of
derivative instruments 3,233,997 (164,076)
Stock-based compensation 2,324,109 --
Changes in operating assets and
liabilities:
Accounts receivable (6,564,255) (3,241,285)
Inventories 768,133 (1,391,945)
Other current assets (543,538) 657,362
Accounts payable 535,485 (103,601)
Accrued liabilities 763,620 431,899
Taxes payable 3,305,225 1,596,550
Net cash provided by operating
activities 24,197,886 20,605,592
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of equipment (464,353) (1,408,404)
Advances on equipment purchases -- (9,865,535)
Payments for construction-in-progress -- (172,302)
Net cash used in investing
Activities (464,353) (11,446,241)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from lines of credit 12,900,800 12,885,840
Payments for lines of credit (12,900,800) (9,957,240)
Proceeds from Initial Public
Offering, net of offering costs 41,915,536 --
Net cash provided by financing
activities 41,915,536 2,928,600
EFFECT OF EXCHANGE RATE CHANGES ON CASH 50,742 113,511
INCREASE IN CASH 65,699,811 12,201,462
CASH, beginning of period 31,044,070 14,199,700
CASH, end of period $96,743,881 $26,401,162
DUOYUAN PRINTING, INC. AND SUBSIDIARIES
(FORMERLY KNOWN AS ASIAN FINANCIAL, INC.)
RECONCILIATION OF GAAP TO NON-GAAP RESULTS OF OPERATIONS
FOR THE THREE MONTHS AND SIX MONTHS ENDED DECEMBER 31, 2009, AND 2008
(UNAUDITED)
Three months ended Six months ended
December 31, December 31,
2009 2008 2009 2008
GAAP COST OF
REVENUE $19,564,713 $16,609,073 $35,353,104 $28,939,825
Adjustments:
Stock-based
compensation (51,019) -- (51,019) --
NON-GAAP COST
OF REVENUE 19,513,694 16,609,073 35,302,085 28,939,825
GAAP GROSS
PROFIT 22,843,334 20,228,210 40,349,866 34,076,889
GAAP GROSS
MARGIN 53.9% 54.9% 53.3% 54.1%
Adjustments:
Stock-based
compensation 51,019 -- 51,019 --
NON-GAAP
GROSS
PROFIT 22,894,353 20,228,210 40,400,885 34,076,889
NON-GAAP
GROSS MARGIN 54.0% 54.9% 53.4% 54.1%
GAAP RESEARCH
AND DEVELOPMENT
EXPENSES 628,674 490,084 992,833 1,184,601
Adjustments:
Stock-based
compensation (95,989) -- (95,989) --
NON-GAAP RESEARCH
AND DEVELOPMENT
EXPENSES 532,685 490,084 896,844 1,184,601
GAAP SELLING
EXPENSES 3,908,445 2,952,037 7,064,821 5,498,952
Adjustments:
Stock-based
compensation (139,831) -- (139,831) --
NON-GAAP SELLING
EXPENSES 3,768,614 2,952,037 6,924,990 5,498,952
GAAP GENERAL AND
ADMINISTRATIVE
EXPENSES 3,628,448 1,344,637 5,118,646 2,276,335
Adjustments:
Stock-based
compensation (2,037,270) -- (2,037,270) --
NON-GAAP GENERAL
AND ADMINISTRATIVE
EXPENSES 1,591,178 1,344,637 3,081,376 2,276,335
OPERATING
INCOME 14,677,767 15,441,452 27,173,566 25,117,001
Adjustments:
Stock-based
compensation 2,324,109 -- 2,324,109 --
NON-GAAP OPERATING
INCOME 17,001,876 15,441,452 29,497,675 25,117,001
NET INCOME 8,087,916 12,641,904 17,924,989 21,156,736
Adjustments:
Change in fair
value of
derivative
instruments 3,344,611 (108,669) 3,233,996 (164,076)
Stock-based
compensation 2,324,109 -- 2,324,109 --
NON-GAAP NET
INCOME $13,756,636 $12,533,235 $23,483,094 $20,992,660
NON-GAAP Earnings
per share:
Basic $0.48 $0.50 $0.88 $0.84
Diluted $0.47 $0.50 $0.87 $0.84
Weighted average
number of shares
outstanding:
Basic 28,367,934 25,000,050 26,683,992 25,000,050
Diluted 29,202,495 25,000,050 27,101,273 25,000,050
DUOYUAN PRINTING, INC. AND SUBSIDIARIES
(FORMERLY KNOWN AS ASIAN FINANCIAL, INC.)
NON-GAAP CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME
FOR THE THREE MONTHS AND SIX MONTHS ENDED DECEMBER 31, 2009, AND 2008
(UNAUDITED)
Three months ended Six months ended
December 31, December 31,
2009 2008 2009 2008
REVENUES, net $42,408,047 $36,837,283 $75,702,970 $63,016,714
COST OF
REVENUES 19,513,694 16,609,073 35,302,085 28,939,825
GROSS PROFIT 22,894,353 20,228,210 40,400,885 34,076,889
RESEARCH AND
DEVELOPMENT
EXPENSES 532,685 490,084 896,844 1,184,601
SELLING
EXPENSES 3,768,614 2,952,037 6,924,990 5,498,952
GENERAL AND
ADMINISTRATIVE
EXPENSES 1,591,178 1,344,637 3,081,376 2,276,335
INCOME FROM
OPERATIONS 17,001,876 15,441,452 29,497,675 25,117,001
CHANGE IN
FAIR VALUE OF
DERIVATIVE
INSTRUMENTS
OTHER INCOME
(EXPENSE), net
Non-operating
expenses (956,936) (956,936)
Interest
expense (211,737) (213,664) (446,126) (426,739)
Interest
income and
other income 40,280 35,708 71,927 69,187
Other expense,
net (171,457) (1,134,892) (374,199) (1,314,488)
INCOME BEFORE
PROVISION FOR
INCOME TAXES AND
NONCONTROLLING
INTEREST 16,830,419 14,306,560 29,123,476 23,802,513
PROVISION FOR
INCOME TAXES 2,849,832 1,604,339 5,258,478 2,531,130
NET INCOME 13,980,587 12,702,221 23,864,998 21,271,383
Less: Net
income
attributable
to non-
controlling
interest 223,951 168,986 381,904 278,723
NET INCOME
ATTRIBUTABLE
TO DUOYUAN
PRINTING, INC. 13,756,636 12,533,235 23,483,094 20,992,660
OTHER
COMPREHENSIVE
INCOME
Foreign currency
translation
gain 1,810 308,470 185,027 564,737
COMPREHENSIVE
INCOME
ATTRIBUTABLE
TO DUOYUAN
PRINTING,
INC. $13,758,446 $12,841,705 $23,668,121 $21,557,397
BASIC
WEIGHTED
AVERAGE
NUMBER
OF SHARES 28,367,934 25,000,050 26,683,992 25,000,050
DILUTED
WEIGHTED
AVERAGE
NUMBER
OF SHARES 29,202,495 25,000,050 27,101,273 25,000,050
BASIC
EARNING
PER SHARE $0.48 $0.50 $0.88 $0.84
DILUTED EARNING
PER SHARE $0.47 $0.50 $0.87 $0.84
SOURCE Duoyuan Printing, Inc.
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