omniture

AIVtech International Group Announces Record Annual Sales of $68.3 Million and Earnings of $11 Million in 2010

2011-04-01 22:20 889

SHENZHEN, China, April 1, 2011 /PRNewswire-Asia/ -- AIVtech International Group Co. (OTC QB: ECOH) ("AIVtech" or the "Company"), a provider of originally designed electronic products, today announced record financial results for the fiscal year of 2010 ending December 31, 2010. The Company will host a 2010 earnings call and shareholder update call on April13, 2011 at 11:00 a.m. (EST).


Financial Highlights for the Twelve Months Ended December 31, 2010

  • Revenue of $68.3 million, up 77.6% versus 2009;
  • Operating Income of $13 million, up 56% versus 2009
  • Record Net Income of $11.0 million, up 47% versus 2009;
  • Diluted earnings per share of $0.66 based on 16.6 million shares;
  • Company went Public in May 2010

Summary Financials for the Years Ended December 31, 2010

 

 

 

Twelve months ended December 31,

 

2010

 

2009

 

CHANGE

 

 

Sales

 

$68.3 million

 

$38.5 million

 

77.60%

 

 

Gross Profit Margin

 

$15.9 million

 

$10.4 million

 

52.60%

 

 

Operating Income

 

$13.0 million

 

$8.3 million

 

56.00%

 

 

Net Income

 

$11.0 million

 

$7.5 million

 

47.00%

 

 

Fully Diluted EPS*

 

$0.66

 

$0.72

 

-8.00%

 

 

SG&A, as % of Sales

 

4.20%

 

5.40%

 

-1.20%

 

 

Tax Rate

 

13.10%

 

10.00%

 

3.10%

 

 

 

 

 

 


*2010 EPS was based on 16.6 million of shares and 2009 EPS was based on 10.4 million of shares.

"We completed an outstanding year, with record profit and sales, and exceeded our 2010 "make good" earnings per share projections," commented Mr. Jinli Guo, the Chairman and CEO of AIVtech International. "Furthermore, we successfully went public in May 2010 and raised $7.5 million in a private placement with two institutional investors in December 2010, which has strategically positioned our Company for future growth and expansions.  As a result of these accomplishments, we have already published guidance of $13.7 million of net income for 2011. We believe we will continue to see strong growth in all three of our businesses units consisting of electronic furniture, multimedia/digital speakers, and video products in 2011 and beyond. Our core growth strategy will remain product innovation; however increased distribution and improved branding will be our key initiatives going forward that will also contribute greatly to our success."

Financial results for the twelve months ended December 31, 2010

Revenue for the twelve months ended December 31, 2010 was $68.3 million, an increase of 77.6%, compared to $38.5 million for the same twelve month period in 2009. The sales of audio furniture grew at a rate of 34.4% over the same period a year ago to $41.4 million from 2009 levels of $30.8 million. Our multi-media speaker division, lead by our Digi Panda product, improved to $9.1 million in 2010 sales from $7.6 million in 2009, for an improvement of 19%. In addition, the new LED TV product line introduced in June 2010 generated $17.8 million in its first year of revenue during 2010 and contributed 59.6% to the overall revenue increase. Approximately 80% of sales were international, while 20% were domestic.

Cost of sales for the twelve month period ending December 31, 2010 totaled $52.5 million compared to $28.0 million for the same twelve month period in 2009. Gross profit increased 52.6% to $15.9 million for the twelve months of 2010 compared to $10.4 million for the twelve months of 2009. Gross profit margin for the twelve months of 2010 was 23.2% compared to 27.0% for the same period in 2009.  The lower margin was primarily related to the contributions of the new LED TV revenue in 2010.

SG&A margin for 2010 was 4.2% of revenue versus 5.4% of revenue in 2009, down 1.2%, as the company continues to control costs and gain critical mass to improve to the bottom line.

Income from operations increased 56.0% to $13.0 million for the twelve months of 2010 compared to $8.3 million for the twelve months ending December 31, 2009. Operating margin was 19.0% for the twelve months of 2010 compared to 21.6% for the twelve months of 2009.

Net income for the twelve months ending December 31, 2010 increased 47.0% to $11.0 million compared to $7.5 million for the twelve months of 2009. Basic and diluted earnings per share for the twelve months of 2010 totaled $0.66 per share based on 16.6 million shares compared to basic and diluted earnings per share for the twelve months of 2009 of $0.72 on 10.4 million shares.  The increase in shares is related to the Company's going Public transaction in May 2010.

2009 and 2010 Revenues Breakdown By Product Division

 

 

Twelve months ended December 31,

 

2010

 

2009

 

CHANGE

 

 

Audio Furniture

 

$41.4 million

 

$30.83 million

 

+34.4%

 

 

% of Sales

 

60.61%

 

80.2%

 

 

Multi-media Speakers

 

$9.1 million

 

$7.64 million

 

+19.1%

 

 

% of Sales

 

13.34%

 

19.8%

 

 

LED TV

 

$17.8 million

 

 

 

 

% of Sales

 

26.05%

 

 

 

Total Sales

 

$68.3 million

 

$38.5 million

 

+77.6%

 

 

 

 

 

 


AIVtech's tax rate was 13.1%, up 3.1 points year over year. The increase was attributable to income tax paid on net income generated from Dongguan AIVtech, which was founded in December 2009 and is at the statutory tax rate of 25%.

Liquidity and Capital Resources

As of December 31, 2010, AIVtech had approximately $7.1 million in cash, an increase of $3.5 million over 2009. Accounts receivable were $7.2 million, compared to $2.0 million on December 31, 2009 with the increase related to the ramp up in sales of LED TVs. The $5.2 million increase was primarily attributable to the newly developed TV line in 2010 as the Company extended credit terms to one major distributor to grow sales. Account payable decreased by about $5.1 million from December 31, 2009 due to the company's decision to make more frequent payments during the year.  The current ratio improved to 2.31 to 1 in 2010 versus 1.78 to 1 in 2009.  As of December 31, 2010 working capital totaled $8.5 million, an increase of $3.4 million compared to $5.1 million as of December 31, 2009. Total shareholders' equity was approximately $8.9 million as of December 31, 2010 an increase of $2.8 million from approximately $6.1 million on December 31, 2009.

Mr. Jinlin Guo continued, "2011 will be a year of growth and expansion in all fronts. In second half of 2011, we plan to commence domestic sales of our market leading electronic furniture in China. We also anticipate the Interactive Intelligent Panel will begin generating revenue in the second quarter of 2011 and yield gross profit margins above 30%. We will also be launching other new products and new sales channels internationally.  Additionally, we plan to evaluate select acquisitions and investments to continue building our reputation as a leader of innovative electronic products that are sold around the world."

2011 Guidance & Shareholder Conference Call

The company reiterates its 2011 net income of $13.7 million and earnings per share of $0.61 based on 22.5 million shares. Management will host a conference call to provide shareholders with an update on the business to be hosted on April 13, 2011 at 11 a.m. (EST).  Details of the call will be provided for participants in a release next week.

About AIVtech International Group Co.

AIVtech International Group Co. is the parent company of wholly owned Shenzhen AIVtech Company Limited ("Shenzhen AIVtech"), which owns 70% of Dongguan AIVtech Company Limited ("Dongguan AIVtech"). AIVtech's founder, Chairman, and CEO Jinlin Guo owns the remaining 30% of Dongguan AIVtech. Founded in 2004, the Company focuses on the integration of electronic products, such as multimedia speakers and video games, with furniture and has coined the term "electronic furniture" to describe its products. The Company has three major product categories: (1) electronic furniture, including video chairs with built-in speakers and vibration, as well as leisure furniture with built-in audio/video systems; (2) multimedia/digital speakers; and (3) video products, which includes a new video conferencing system called the Interactive Intelligent Panel which will begin production in early 2011. For more information, visit http://www.aivtechgroup.com.

Forward-Looking Statements

Statements contained in this press release, which are not historical facts, are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, expectations of signing new customers and contracts, developing new products, projected revenues and earnings, and the success of new products. These forward-looking statements are based largely on current expectations and are subject to a number of known and unknown risks, uncertainties and other factors beyond our control that could cause actual events and results to differ materially from these statements. These statements are not guarantees of future performance, and readers are cautioned not to place undue reliance on these forward-looking statements, which are relevant as of the date of the given press release and should not be relied upon as of any subsequent date. AIVtech International Group Co. undertakes no obligation to update the forward-looking information contained in this press release.

For more information, please contact:

 

 

Investor Contact:

 

 

HSC Global, an affiliate of HC International 

 

 

Alan Sheinwald, President

 

 

Email: Alan.sheinwald@hscglobal.net

 

 

Tel:    +1-914-669-8885

 

 

www.HSCGlobal.net

 

 

 



AIVTECH INTERNATIONAL GROUP CO.

CONSOLIDATED BALANCE SHEETS

 

 

 

 

December 31,

 

 

December 31,

 

 

ASSETS

 

 

2010

 

 

2009

 

 

 

 

 

 

 

 

Restated

 

 

CURRENT ASSETS:

 

 

 

 

 

 

 

Cash

 

 

$

 

7,079,221

 

 

$

 

3,605,741

 

 

Accounts receivable

 

 

 

7,192,694

 

 

 

2,040,088

 

 

Other receivable and prepaid expense

 

 

 

198,553

 

 

 

42,121

 

 

Inventories

 

 

 

571,602

 

 

 

5,073,436

 

 

VAT tax recoverable

 

 

 

-

 

 

 

845,203

 

 

Total current assets

 

 

 

15,042,070

 

 

 

11,606,589

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

 

1,127,334

 

 

 

1,015,570

 

 

TOTAL ASSETS

 

 

$

 

16,169,404

 

 

$

 

12,622,158

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

 

Account payables and accrued expense

 

 

$

 

962,099

 

 

$

 

5,973,299

 

 

Taxes payable

 

 

 

785,636

 

 

 

536,101

 

 

Due to related parties

 

 

 

529,166

 

 

 

29,252

 

 

Dividend payable

 

 

 

3,948,125

 

 

 

-

 

 

Warrants liability

 

 

 

299,492

 

 

 

-

 

 

Total current liabilities

 

 

 

6,524,518

 

 

 

6,538,651

 

 

 

 

 

 

 

 

 

 

  Long term loan

 

 

 

757,311

 

 

 

-

 

 

TOTAL LIABILITIES

 

 

 

7,281,829

 

 

 

6,538,651

 

 

 

 

 

 

 

 

 

 

COMMITMENTS AND CONTINGENCIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Common stock, $.001 par value, 75,000,000 shares authorized, 22,513,334 and 10,375,000 shares issued and outstanding as of December 31, 2010 and 2009, respectively

 

 

 

22,513

 

 

 

10,375

 

 

Additional paid-in capital

 

 

 

7,566,593

 

 

 

631,541

 

 

Stock subscription receivable

 

 

 

(7,540,002)

 

 

 

-

 

 

Statutory reserve

 

 

 

482,377

 

 

 

346,991

 

 

Retained earnings

 

 

 

6,773,472

 

 

 

4,260,636

 

 

Accumulated other comprehensive income

 

 

 

737,196

 

 

 

394,700

 

 

 

 

 

8,042,149

 

 

 

5,644,243

 

 

Non-controlling interest

 

 

 

845,426

 

 

 

439,264

 

 

Total stockholders' equity

 

 

 

8,887,575

 

 

 

6,083,507

 

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

$

 

16,169,404

 

 

$

 

12,622,158

 

 

 

 

 

 

 

 

 


AIVtech International Group Co.

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

AIVTECH INTERNATIONAL GROUP CO.

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

FOR THE YEAR ENDED DECEMBER 31,

 

 

 

 

2010

 

 

2009

 

 

 

 

 

 

 

 

Net sales

 

 

$

 

68,334,543

 

 

$

 

38,469,185

 

 

Cost of sales

 

 

 

(52,459,912)

 

 

 

(28,064,339)

 

 

Gross profit

 

 

 

15,874,631

 

 

 

10,404,846

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

Selling expense

 

 

 

(741,738)

 

 

 

(644,757)

 

 

General administrative expenses

 

 

 

(2,146,465)

 

 

 

(1,433,254)

 

 

Total operating expenses

 

 

 

(2,888,203)

 

 

 

(2,078,011)

 

 

 

 

 

 

 

 

 

 

Income from Operations

 

 

 

12,986,428

 

 

 

8,326,835

 

 

 

 

 

 

 

 

 

 

Other income ( expenses)

 

 

 

 

 

 

 

 

Change in fair value of warrants liability

 

 

 

122,795

 

 

 

-

 

 

Interest income

 

 

 

20,755

 

 

 

9,834

 

 

Interest expense

 

 

 

(19,607)

 

 

 

(30,079)

 

 

Total other income (expense)

 

 

 

123,943

 

 

 

(20,245)

 

 

 

 

 

 

 

 

 

 

Income before income tax

 

 

 

13,110,371

 

 

 

8,306,590

 

 

 

 

 

 

 

 

 

 

Provision for Income taxes

 

 

 

(1,715,218)

 

 

 

(830,659)

 

 

 

 

 

 

 

 

 

 

Net income

 

 

 

11,395,153

 

 

 

7,475,931

 

 

 

 

 

 

 

 

 

 

Less: Net income attributable to non-controlling interest

 

 

 

406,162

 

 

 

-

 

 

Net income attributable to AIVtech International Group Co.

 

 

$

 

10,988,991

 

 

$

 

7,475,931

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 

 

11,395,153

 

 

 

7,475,931

 

 

Foreign currency translation adjustment

 

 

 

342,496

 

 

 

(4,348)

 

 

Comprehensive income

 

 

 

11,737,649

 

 

 

7,471,583

 

 

Comprehensive income attributable to non-controlling interest

 

 

$

 

(102,749)

 

 

$

 

1,304

 

 

Comprehensive income attributable to AIVtech International Group Co.

 

 

$

 

11,634,900

 

 

$

 

7,472,887

 

 

 

 

 

 

 

 

 

 

Basic and diluted income per common share

 

 

 

 

 

 

 

 

 - basic

 

 

$

 

0.66

 

 

$

 

0.72

 

 

 - dliuted

 

 

$

 

0.66

 

 

$

 

0.72

 

 

 

 

 

 

 

 

 

 

Basic and diluted weighted average common shares outstanding

 

 

 

 

 

 

 

 

- basic

 

 

 

16,566,205

 

 

 

10,375,000

 

 

 -dliuted

 

 

 

16,568,189

 

 

 

10,375,000

 

 

 

 

 

 

 

 

 

 

Cash dividend per common share

 

 

 

0.27

 

 

 

0.85

 

 

 

 

 

 

 

 

 



AIVTECH INTERNATIONAL GROUP CO.

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2010 AND 2009

 

 

 

 

2010

 

 

2009

 

 

 

 

 

 

 

Restated

 

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

Net income

 

 

$

 

11,395,153

 

 

$

 

7,475,931

 

 

Adjustments to reconcile net income to net cash provided by

 

 

 

 

 

 

 

 

Operating activities:

 

 

 

 

 

 

 

 

Depreciation

 

 

 

203,136

 

 

 

145,877

 

 

Loss of changes in fair value of warrants liability

 

 

 

(122,795)

 

 

 

-

 

 

Changes in assets and liabilities :

 

 

 

 

 

 

 

 

Accounts receivable

 

 

 

(5,001,000)

 

 

 

(371,252)

 

 

Other receivable and prepaid expense

 

 

 

(152,463)

 

 

 

-

 

 

VAT tax recoverable

 

 

 

858,092

 

 

 

(843,668)

 

 

Inventories

 

 

 

4,588,779

 

 

 

(1,143,957)

 

 

Account payables and accrued expenses

 

 

 

(5,283,915)

 

 

 

3,932,813

 

 

Taxes payable

 

 

 

228,198

 

 

 

555,689

 

 

Net cash provided by operating activities

 

 

 

6,713,186

 

 

 

9,751,433

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

Purchase of property & equipment

 

 

 

(184,473)

 

 

 

(284,840)

 

 

Net cash used in investing activities

 

 

 

(184,473)

 

 

 

(284,840)

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

Proceeds from long-term loan

 

 

 

744,624

 

 

 

-

 

 

Increase in capital contribution by non-controlling interest

 

 

 

-

 

 

 

439,264

 

 

Due to related parties

 

 

 

494,304

 

 

 

29,199

 

 

Dividends paid

 

 

 

(4,392,643)

 

 

 

(8,785,288)

 

 

Net cash used in financing activities

 

 

 

(3,153,715)

 

 

 

(8,316,825)

 

 

 

 

 

 

 

 

 

 

Effect of exchange rate changes on cash

 

 

 

98,481

 

 

 

12,510

 

 

 

 

 

 

 

 

 

 

Net change in cash

 

 

 

3,473,480

 

 

 

1,162,277

 

 

 

 

 

 

 

 

 

 

Cash, beginning of year

 

 

 

3,605,741

 

 

 

2,443,464

 

 

 

 

 

 

 

 

 

 

Cash, end of year

 

 

$

 

7,079,221

 

 

$

 

3,605,741

 

 

 

 

 

 

 

 

 

 

Supplemental disclosures of cash flow information

 

 

 

 

 

 

 

 

  Income taxes paid

 

 

$

 

1,710,567

 

 

$

 

597,468

 

 

  Interest paid

 

 

$

 

16,464

 

 

$

 

30,079

 

 

 

 

 

 

 

 

 



AIVTECH INTERNATIONAL GROUP CO.

SEGMENT DATA

TWELVE-MONTH

 

 

 

 

  For the year ended

 

 

 

 

 

 

December 31,2010

 

 

December 31,2009

 

 

  Increase(decrease)

 

 

Product categories

 

 

Revenue

 

 

Cost of sales

 

 

Gross profit

 

 

Gross profit%

 

 

Revenue

 

 

Cost of sales

 

 

Gross profit

 

Gross profit %

 

 

Revenue

 

 

Cost of sales

 

 

Gross profit

 

 

Gross profit %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amount

 

 

%

 

 

Amount

 

 

%

 

 

Amount

 

 

%

 

 

%

 

 

Furniture audio

 

 

 

41,417,493

 

 

30,516,391

 

 

 

10,901,102

 

 

26%

 

 

30,829,105

 

 

 

22,427,587

 

 

8,401,518

 

27%

 

 

10,588,388

 

 

 

34%

 

 

8,088,803

 

 

 

36%

 

 

2,499,585

 

 

 

30%

 

 

-1%

 

 

Multi-media speaker

 

 

 

9,117,387

 

 

6,790,569

 

 

 

2,326,818

 

 

26%

 

 

7,640,080

 

 

 

5,636,752

 

 

2,003,328

 

26%

 

 

1,477,307

 

 

 

19%

 

 

1,153,818

 

 

 

20%

 

 

323,489

 

 

 

16%

 

 

0%

 

 

LED TV

 

 

 

17,799,663

 

 

15,152,952

 

 

 

2,646,711

 

 

15%

 

 

 

 

 

 

 

 

 

 

17,799,663

 

 

 

100%

 

 

15,152,952

 

 

 

100%

 

 

2,646,711

 

 

 

100%

 

 

15%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

68,334,543

 

 

52,459,912

 

 

 

15,874,631

 

 

23%

 

 

38,469,185

 

 

 

28,064,339

 

 

10,404,846

 

27%

 

 

29,865,358

 

 

 

78%

 

 

24,395,573

 

 

 

87%

 

 

5,469,785

 

 

 

53%

 

 

-4%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 




Source: AIVtech International Group Co.
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