BEIJING, August 9, 2013 /PRNewswire-FirstCall/ -- Yongye International, Inc. (NASDAQ: YONG), ("Yongye" or the "Company") a leading developer, manufacturer, and distributor of crop nutrient products in the People's Republic of China ("PRC"), today announced its financial results for the quarter ended June 30, 2013.
Second Quarter 2013 Financial Highlights
Mr. Zishen Wu, Chairman and Chief Executive Officer of Yongye, stated, "We are extremely pleased with our solid performance in the second quarter of 2013. Our effective channel management and successful promotional activities drove significant top line growth, with revenues increasing 69.6% year-on-year. In particular, during the quarter we saw strong demand for Shengmingsu and two of our new products, as well as the continued expansion of our branded retailer network. During the quarter we remained focused on our efforts to collect outstanding account receivables, and as of the end of the second quarter we had collected all overdue accounts receivable."
Mr. Wu continued, "We believe that the underlying fundamentals of our business remain strong, and going forward, we are confident that we can achieve our full year guidance for shipments and our targets for the expansion of our branded retailer network. Lastly, on behalf of the board and management, I would like to sincerely thank our shareholders for their patience during the recent months while we worked hard to enable trading in our shares to resume. We believed that the Company is well-positioned for long-term growth and the management team is now once again fully focused on executing our strategy to further grow the business and maximize value for our shareholders."
Second Quarter 2013 Results
Sales increased by $123.7 million, or 69.6%, to $301.3 million in the second quarter of 2013, from $177.6 million for the same period of 2012. The significant increase in revenue was primarily due to more effective channel management, continued retail network development, an increase in promotional marketing programs, and increased demand for the Company's liquid crop nutrient. In the second quarter of 2013, $298.0 million, or 98.9% of total sales, was attributable to sales of liquid crop nutrient, and $3.3 million, or 1.1% of total sales, was attributable to sales of powder animal nutrient. Regarding liquid crop nutrient, the original crop nutrient product contributed $243.9 million, or 82.0% of total liquid crop nutrient sales, while two new products for crop seeds and roots contributed $54.1 million, or 18.0% of the total liquid crop nutrient sales. During the second quarter of 2013, the number of branded retailers increased from 35,246 to 35,409.
Gross profit was $188.8 million in the second quarter of 2013, compared to $108.1 million in the same period of 2012, an increase of 74.6%. Gross margin was 62.6% in the second quarter of 2013, compared to 60.9% for the same period of 2012. The increase in gross margin was mainly due to the scale effect of increased sales as compared to the same period of 2012.
Selling expenses increased by $26.4 million, or 68.5%, to $65.0 million in the second quarter of 2013, from $38.6 million for the same period of 2012. The increase in selling expenses was primarily due to an increase in advertising and promotion expenses and expenditure on seminars for distributors of $27.2 million.
General and administrative ("G&A") expenses decreased by $5.4 million, or 62.3%, to $3.3 million in the second quarter of 2013, from $8.7 million for the same period of 2012. The decrease in G&A expenses was mainly due to the management equity compensation expenses that were recorded in the second quarter of 2012.
Research and development ("R&D") expenses were $11.4 million in the second quarter of 2013, compared to $7.4 million for the same period of 2012. The R&D expenses mainly consisted of field test expenses for existing and new products on different crops and in various geographic markets.
Income from operations was $109.2 million in the second quarter of 2013, compared to $53.5 million in the same period of 2012. Excluding non-cash expenses related to the amortization of the acquired Hebei customer list, share-based compensation for management and independent directors, second quarter 2013 adjusted income from operations was $109.9 million, or 36.5% of sales.* The increase in income from operations was mainly due to the increases in sales and gross margin, as well as the significant decrease in G&A expenses.
Net income attributable to Yongye was $86.4 million, or $1.50 per diluted share in the second quarter of 2013, compared to net income of $41.1 million, or $0.74 per diluted share, in the same period of 2012. Excluding the impact of non-cash expenses related to the amortization of the acquired Hebei customer list, share-based compensation for management and independent directors and a change in the fair value of derivative liabilities, adjusted net income attributable to Yongye for the second quarter of 2013 was $87.2 million, or $1.51 per diluted share, compared to adjusted net income of $43.0 million, or $0.78 per diluted share in the same period of 2012.* The increase was primarily due to the increases in sales and gross margin, as well as the decrease in G&A expenses.
Six Month Financial Results
Revenue for the six months ended June 30, 2013 increased 43.2% to $346.6 million from $242.0 million for the comparable period in 2012, while gross profit was $210.4 million, compared to $143.5 million in the first six months of 2012. Gross margin was 60.7% for the six months ended June 30, 2013, as compared to 59.3% for the same period of 2012.
Income from operations in the first six months of 2013 was $110.3 million, compared to $75.4 million in the same period of 2012. Net income attributable to Yongye for the first six months of 2013 was $85.8 million, compared to $57.5 million in the prior year period. In the first six months of 2013, net income per diluted share was $1.47, as compared to $1.02 diluted earnings per share for the same period of 2012. Excluding the impact of non-cash expenses related to the amortization of the acquired Hebei customer list, share-based compensation for management and independent directors and a change in the fair value of derivative liabilities, adjusted net income attributable to Yongye for the six months ended June 30, 2013 was $87.3 million, or $1.50 per diluted share, compared to $61.3 million, or $1.09 per diluted share in the same period last year.*
(*) See the table following this press release for a reconciliation of gross profit, income from operations, net income and diluted EPS to exclude non-cash items related to the amortization of the acquired Hebei customer list, share-based compensation for management and independent directors, and a change in the fair value of derivative liabilities to the comparable financial measure prepared in accordance with US Generally Accepted Accounting Principles ("U.S. GAAP"). |
Financial Condition
Balance Sheet and Cash Flow
As of June 30, 2013, the Company had $254.6 million in cash and restricted cash, compared to $44.6 million as of December 31, 2012. Working capital was $486.5 million, compared to $383.3 million at the end of 2012. The Company had $75.2 million in short-term bank loans and $18.8 million in current and non-current long-term loans and payables, and $2.8 million in current and non-current capital lease obligations as of June 30, 2013. Stockholders' equity totaled $534.1 million as of June 30, 2013, compared to $436.3 million at the end of 2012. Cash flow provided by operating activities was $188.0 million and $8.1 million for the six months ended June 30, 2013 and 2012, respectively. The change was primarily driven by collection of accounts receivable, as well as the reduction of inventory. Other factors include an increase of $29.9 million in earnings.
Accounts Receivable
Accounts receivable decreased by $22.0 million from the end of 2012, which was mainly due to the collection of accounts receivable during the first half of 2013. As of June 30, 2013, the amount of gross accounts receivable outstanding was $280.8 million. None of the accounts receivable were past the Company's six-month credit period. The Company provided an allowance for doubtful accounts in the amount of US$9.2 million, taking into account current market conditions, the customers' financial condition, the accounts receivable ageing and the customers' repayment patterns. The Company continues to take measures to increase collection efforts and closely monitor its distributors' financial status.
Recent Developments
Expansion of Branded Retailer Network
The Company continued the expansion of its branded retailers from 35,246 as of March 31, 2013 to 35,409 as of June 30, 2013. The Company remains focused on expanding its distribution networks and deepening its penetration in existing markets.
Resumption of Trading of Common Stock on NASDAQ
As the Company previously announced on June 17, 2013, Yongye's common stock resumed trading on the NASDAQ Stock Market on Monday, June 17, 2013. Yongye is pleased to have resolved this issue and sincerely thanks its shareholders for their patience during the recent months while the Company worked hard to provide what was needed to satisfy NASDAQ requirements and enable trading to resume.
Update on Go-private Proposal
On June 17, 2013, the Company announced that (i) Mr. Zishen Wu, the Company's Chairman and Chief Executive Officer, (ii) Full Alliance International Limited, (iii) MSPEA Agriculture Holding Limited, and (iv) Abax Global Capital (Hong Kong) Limited ("Abax"), on behalf of funds managed and/or advised by it and its nominee entities and its and their affiliates, have confirmed with the special committee ("Special Committee") of the board of directors of the Company that they remain interested in pursuing the proposed going private transaction described in the proposal letter delivered to the board of directors on October 15, 2012.
On May 16, 2013, the Special Committee was provided a letter issued by Abax to Full Alliance International Limited ("Full Alliance"). The Letter, dated as of May 15, 2013, informed Full Alliance that Abax remains interested in pursuing the proposed going private transaction described in the proposal letter delivered to the Board of Directors on October 15, 2012, on the terms and conditions as outlined in the amended and restated financing commitment letter issued by Abax to Full Alliance on April 1, 2013, and as amended on April 16, 2013, which expired on May 15, 2013. According to the letter dated May 15, 2013, Abax continues to be focused on this transaction and will re-engage in the going private transaction as soon as the trading suspension is lifted.
As a reminder, no decisions have been made by the Special Committee with respect to the Company's response to the proposed going private transaction. There can be no assurance that any definitive offer will be made, that any agreement will be executed, or that this or any other transaction will be approved or consummated.
Business Outlook
According to the Company's revenue recognition policy, certain distributors' revenue is being recognized on a cash basis rather than a shipment basis. In addition, the Company's distributors' payment cycle has been longer compared to prior years. As a result, the Company is not in a position to predict with specificity what its revenue will be until cash collection is completed. As such, to provide further clarity for investors, Yongye will continue to provide expectations on shipments, a metric that is not impacted by the revenue recognition issue mentioned above.
For the full year 2013, the Company reiterates its expectation that total shipments will be in the range of $650 million to $680 million, representing growth of 20% to 25% over 2012. The Company continues to expect that its branded retailer network will be expanded to 36,000 by the end of 2013, which represents a 3% increase over the 2012 year-end number of 35,058.
Conference Call
The Company will host a conference call at 8:30 a.m. Eastern Time on August 9, 2013, to discuss its second quarter and half year 2013 results.
To participate in the live conference call, please dial the following number five to ten minutes prior to the scheduled conference call time: +1 (855) 298-3404. International callers should dial +1 (631) 514-2526. The conference pass code is 3706166.
For those who are unable to participate on the live conference call, a replay will be available for fourteen days starting from 11:30 a.m. Eastern Time on August 9 to 11:59 p.m. Eastern Time on August 23. To access the replay, please dial +1 (866) 846-0868. International callers should dial +61 (2) 9641-7900. The replay pass code is 3706166. A webcast recording of the conference call will be accessible through Yongye's website at www.yongyeintl.com.
Use of Non-GAAP Financial Measures
GAAP results for the three and six months ended June 30, 2013 and 2012 include non-cash items related to the amortization of the acquired Hebei customer list, share-based compensation for management and independent directors, and a change in the fair value of derivative liabilities. To supplement the Company's condensed consolidated financial statements presented on a U.S. GAAP basis, the Company has provided adjusted financial information excluding the impact of these items in this release. Such adjustment is a departure of U.S. GAAP; however, the Company's management believes that these adjusted measures provide investors with a better understanding of how the results relate to the Company's historical performance. These adjusted measures should not be considered an alternative to net income, or any other measure of financial performance or liquidity presented in accordance with U.S. GAAP. These measures are not necessarily comparable to a similarly titled measure of another company. A reconciliation of the adjustments to U.S. GAAP results appears in the table accompanying this press release. This additional adjusted information is not meant to be considered in isolation or as a substitute for U.S. GAAP financials. The adjusted financial information that the Company provides also may differ from the adjusted information provided by other companies.
About Yongye International, Inc.
Yongye International, Inc. is a leading crop nutrient company headquartered in Beijing, with its production facilities located in Hohhot, Inner Mongolia, China. Yongye's principal product is a liquid crop nutrient, from which the Company derived substantially all of the sales in 2012. The Company also produces powder animal nutrient product which is mainly used for dairy cows. Both products are sold under the trade name "Shengmingsu," which means "life essential" in Chinese. The Company's patented formula utilizes fulvic acid as the primary compound base and is combined with various micro and macro nutrients that are essential for the health of the crops. The Company sells its products primarily to provincial level distributors, who sell to the end-users either directly or indirectly through county-level and village-level distributors. For more information, please visit the Company's website at www.yongyeintl.com.
Safe Harbor Statement
This press release contains certain statements that may include "forward-looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involving known and unknown risks and uncertainties. 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 the risk factors discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on the SEC's website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these risk factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
Contacts
Yongye International, Inc.
Ms. Kelly Wang
Finance Director - Capital Markets
Phone: +86-10-8231-9608; +86-10-8232-8866 x 8827
E-mail: ir@yongyeintl.com
FTI Consulting
Mr. John Capodanno (U.S. Contact)
Phone: +1-212-850-5705
E-mail: john.capodanno@fticonsulting.com
Ms. May Shen
Phone: +86-10-8591-1951
E-mail: may.shen@fticonsulting.com
YONGYE INTERNATIONAL, INC. AND SUBSIDIARIES | |||||
UNAUDITED CONSOLIDATED BALANCE SHEETS | |||||
June 30, 2013 | December 31, 2012 | ||||
Current assets | |||||
Cash | US$ | 254,597,903 | US$ | 44,511,404 | |
Restricted cash | 40,000 | 40,000 | |||
Accounts receivable, net of allowance for doubtful accounts | 271,642,613 | 293,600,762 | |||
Inventories | 102,612,609 | 118,693,596 | |||
Deposits to suppliers | 32,843,422 | 24,048,028 | |||
Prepaid expenses | 545,202 | 312,648 | |||
Other receivables | 994,291 | 1,189,633 | |||
Deferred tax assets | 14,393,497 | 11,591,797 | |||
Total Current Assets | 677,669,537 | 493,987,868 | |||
Property, plant and equipment, net | 25,874,858 | 26,224,957 | |||
Intangible asset, net | 17,814,625 | 18,909,349 | |||
Land use right, net | 4,851,869 | 4,807,313 | |||
Prepayment for mining project | 36,533,079 | 35,792,410 | |||
Distributor vehicles | 41,477,531 | 44,125,293 | |||
Total Assets | US$ | 804,221,499 | US$ | 623,847,190 | |
Current liabilities | |||||
Short-term bank loans | US$ | 75,234,197 | US$ | 50,857,163 | |
Long-term loans and payables - current portion | 9,958,907 | 9,149,280 | |||
Capital lease obligations - current portion | 470,367 | 395,878 | |||
Accounts payable | 23,666,805 | 12,364,193 | |||
Income tax payable | 23,701,721 | 3,196,078 | |||
Advance from customers | 834,190 | 154,944 | |||
Accrued expenses | 54,350,071 | 31,389,630 | |||
Other payables | 3,003,119 | 2,828,262 | |||
Derivative liabilities - fair value of warrants | - | 348,364 | |||
Total Current Liabilities | 191,219,377 | 110,683,792 | |||
Long-term loans and payables | 8,841,092 | 10,254,922 | |||
Capital lease obligations - non-current | 2,288,956 | 2,134,155 | |||
Other non-current liability | 6,822,113 | 6,683,802 | |||
Deferred tax liabilities | 6,221,630 | 6,618,794 | |||
Total Liabilities | US$ | 215,393,168 | US$ | 136,375,465 | |
Redeemable Series A convertible preferred shares: par value | US$ | ||||
54,713,640 | US$ | 51,208,657 | |||
Equity | |||||
Common stock: par value $.001; 75,000,000 shares | US$ | 50,685 | US$ | 50,604 | |
Additional paid-in capital | 155,265,347 | 154,792,050 | |||
Retained earnings | 323,002,825 | 240,679,395 | |||
Accumulated other comprehensive income | 29,865,542 | 19,950,447 | |||
Total equity attributable to Yongye International, Inc. | 508,184,399 | 415,472,496 | |||
Noncontrolling interest | 25,930,292 | 20,790,572 | |||
Total Equity | US$ | 534,114,691 | US$ | 436,263,068 | |
Commitments and Contingencies | - | - | |||
Total Liabilities, Redeemable Series A Convertible Preferred Shares and Equity | 804,221,499 | 623,847,190 | |||
US$ | US$ | ||||
YONGYE INTERNATIONAL, INC. AND SUBSIDIARIES | ||||||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||
June 30, 2013 | June 30, 2012 | June 30, 2013 | June 30, 2012 | |||||||||
Sales | US$ | 301,337,371 | US$ | 177,625,986 | US$ | 346,605,891 | US$ | 241,991,630 | ||||
Cost of sales | 112,573,340 | 69,535,733 | 136,209,761 | 98,488,872 | ||||||||
Gross profit | 188,764,031 | 108,090,253 | 210,396,130 | 143,502,758 | ||||||||
Selling expenses | 64,964,122 | 38,554,590 | 80,399,182 | 52,757,647 | ||||||||
Research and development expenses | 11,354,348 | 7,384,804 | 12,346,018 | 8,893,542 | ||||||||
General and administrative expenses, including a reversal of | 3,262,946 | 8,646,763 | 7,332,918 | 6,437,292 | ||||||||
Income from operations | 109,182,615 | 53,504,096 | 110,318,012 | 75,414,277 | ||||||||
Other income/(expenses) | ||||||||||||
Interest expense | (1,662,688) | (1,102,126) | (3,529,066) | (2,106,295) | ||||||||
Interest income | 441,338 | 75,336 | 607,096 | 135,410 | ||||||||
Other (expenses)/income, net | (3,912) | 2,662 | (68,248) | 34,716 | ||||||||
Change in fair value of derivative liabilities | - | 9,889 | - | 69,287 | ||||||||
Total other expenses, net | (1,225,262) | (1,014,239) | (2,990,218) | (1,866,882) | ||||||||
Earnings before income tax expense | 107,957,353 | 52,489,857 | 107,327,794 | 73,547,395 | ||||||||
Income tax expense | 16,858,170 | 9,272,206 | 16,853,091 | 13,012,428 | ||||||||
Net income | 91,099,183 | 43,217,651 | 90,474,703 | 60,534,967 | ||||||||
Less: Net income attributable to the noncontrolling interest | 4,658,198 | 2,107,788 | 4,646,290 | 3,042,814 | ||||||||
Net income attributable to Yongye International, Inc. | US$ | 86,440,985 | US$ | 41,109,863 | US$ | 85,828,413 | US$ | 57,492,153 | ||||
Net income per common stock: | ||||||||||||
Basic | US$ | 1.50 | US$ | 0.75 | US$ | 1.47 | US$ | 1.02 | ||||
Diluted | US$ | 1.50 | US$ | 0.74 | US$ | 1.47 | US$ | 1.02 | ||||
Net income | 91,099,183 | 43,217,651 | 90,474,703 | 60,534,967 | ||||||||
Foreign currency translation adjustment, net of nil income taxes | 7,745,289 | 297,059 | 10,408,525 | 2,638,310 | ||||||||
Comprehensive income | 98,844,472 | 43,514,710 | 100,883,228 | 63,173,277 | ||||||||
Less: Comprehensive income attributable to the noncontrolling interest | 5,025,640 | 2,121,775 | 5,139,720 | 3,165,670 | ||||||||
Comprehensive income attributable to Yongye International, Inc. | 93,818,832 | 41,392,935 | 95,743,508 | 60,007,607 | ||||||||
YONGYE INTERNATIONAL, INC. AND SUBSIDIARIES | |||||
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||
For the Six Months Ended | |||||
June 30, 2013 | June 30, 2012 | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||
Net income | US$ | 90,474,703 | US$ | 60,534,967 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Depreciation and amortization | 9,022,233 | 7,072,522 | |||
Amortization of loan discount | 666,669 | - | |||
Gain on sale of property, plant and equipment | (33,606) | - | |||
Reversal of allowance for doubtful accounts | - | (6,334,832) | |||
Change in fair value of derivative liabilities | - | (69,287) | |||
Stock compensation expense | - | 2,424,316 | |||
Deferred tax (benefit)/expense | (3,499,936) | 300,108 | |||
Changes in operating assets and liabilities: | |||||
Accounts receivable | 25,732,611 | (27,170,173) | |||
Inventories | 18,719,380 | (17,028,433) | |||
Deposit to suppliers | (8,065,168) | (22,118,726) | |||
Prepaid expenses | (225,945) | 4,212,958 | |||
Other receivables | 208,755 | 134,726 | |||
Distributor vehicles | (122,129) | (5,099,274) | |||
Accounts payable | 11,042,430 | (1,002,120) | |||
Income tax payable | 20,353,028 | 5,610,204 | |||
Advance from customers | 673,134 | (3,988,722) | |||
Accrued expenses | 22,467,679 | 10,413,691 | |||
Other payables | 618,762 | 193,633 | |||
Net Cash Provided by Operating Activities | 188,032,600 | 8,085,558 | |||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||
Purchase of property, plant and equipment | (639,704) | (1,449,852) | |||
Net Cash Used in Investing Activities | (639,704) | (1,449,852) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||
Proceeds from short-term bank loans | 72,504,632 | 25,318,859 | |||
Repayment of long-term loans and payables | (3,247,998) | (3,091,865) | |||
Repayment of short-term bank loans | (49,947,636) | (28,483,717) | |||
Proceeds from warrants exercised | 125,014 | - | |||
Repayment for capital lease obligations | (157,984) | - | |||
Net Cash Provided by/(Used in) Financing Activities | 19,276,028 | (6,256,723) | |||
EFFECT OF FOREIGN EXCHANGE RATE CHANGES ON CASH | 3,417,575 | 418,177 | |||
NET INCREASE IN CASH | 210,086,499 | 797,160 | |||
Cash at beginning of period | 44,511,404 | 81,154,880 | |||
Cash at end of period | US$ | 254,597,903 | US$ | 81,952,040 | |
Supplemental cash flow information: | |||||
Cash paid for income taxes | US$ | - | US$ | 7,128,066 | |
Cash paid for interest expense | 2,649,612 | 2,069,219 | |||
Noncash investing and financing activities: | |||||
Acquisition of property, plant and equipment under capital leases | 331,434 | - | |||
Acquisition of distributor vehicles by assuming long-term loans and payables | 2,251,093 | 9,820,930 | |||
Acquisition of property, plant and equipment included in other payables | 986,975 | 422,754 | |||
Exercise of warrants that were liability classified | 348,364 | - | |||
Paid-in-kind dividends on redeemable Series A convertible preferred shares | 3,504,983 | 1,808,667 | |||
YONGYE INTERNATIONAL, INC. AND SUBSIDIARIES | |||||
RECONCILIATION OF NON-GAAP FINANCIAL DATA | |||||
Gross Profit | |||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||
2013 | 2012 | 2013 | 2012 | ||
GAAP amount per consolidated | $188,764,031 | $108,090,253 | $210,396,130 | $143,502,758 | |
Amortization of the acquired Hebei | $736,994 | $723,827 | $1,465,200 | $1,448,871 | |
Adjusted Amount | $189,501,025 | $108,814,080 | $211,861,330 | $144,951,629 | |
Income from Operations | |||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||
2013 | 2012 | 2013 | 2012 | ||
GAAP amount per consolidated | $109,182,615 | $53,504,096 | $110,318,012 | $75,414,277 | |
Amortization of the acquired Hebei | $736,994 | $723,827 | $1,465,200 | $1,448,871 | |
Non-cash management compensation expense | - | $1,212,158 | - | $2,424,316 | |
Adjusted Amount | $109,919,609 | $55,440,081 | $111,783,212 | $79,287,464 | |
Net income (attributable to Yongye) | |||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||
2013 | 2012 | 2013 | 2012 | ||
GAAP amount per consolidated | $86,440,985 | $41,109,863 | $85,828,413 | $57,492,153 | |
Amortization of the acquired Hebei | $736,994 | $723,827 | $1,465,200 | $1,448,871 | |
Non-cash management compensation expense | - | $1,212,158 | - | $2,424,316 | |
Change in fair value of derivative liabilities | - | ($9,889) | - | ($69,287) | |
Adjusted Amount | $87,177,979 | $43,035,959 | $87,293,613 | $61,296,053 | |
Weighted average shares -- diluted | 50,685,216 | 49,445,176 | 50,677,590 | 49,453,572 | |
Adjusted diluted earnings per share | $1.51 | $0.78 | $1.50 | $1.09 | |
