DALIAN CITY, China, September 28, 2011 /PRNewswire-Asia-FirstCall/ -- BEFUT International Co., Ltd. (the "Company" or "BEFUT") (OTCBB: BFTI), a developer, manufacturer and distributor of wire and cable products in China, today announced its financial results for the fiscal year ended June 30, 2011.
Financial Highlights
Mr. Hongbo Cao, Chairman and CEO, commented, "We are pleased to report strong growth in revenue and net income for fiscal 2011. Our product strategy, marketing strategy and strong R&D have been key drivers to our success. We continue to grow our traditional cable business, but are particularly focused on increasing sales of our higher margin products such as carbon fiber composite cable, submarine cable and certain "new energy" cables, including cable for wind and solar energy. We have been awarded a number of new patents and now have 17 approved patents and 45 pending, which provide us an important competitive advantage."
Mr. Cao continued, "We have established a first class customer base encompassing many of the largest conglomerates in China————spanning ship building, nuclear power, mining, petrochemical and other industries. Given our proven track record, established brand and premier customer base, we look forward to expanding our sales by aggressively adding new sales reps and new sales offices across China, in addition to new initiatives underway to grow our international sales."
Mr. Cao concluded, "In April 2011, we began construction on the second phase of our new Changxing Island facility, which we expect to complete in 2012. We plan to add nearly 90,000 square meters of additional floor space with production capacity of approximately 6,700 km of cable per year, which would allow a maximum output of approximately $235 million upon completion. We look forward to leveraging this capacity to satisfy the growing demand from our customers. We believe we have the customer base, technological, manufacturing and research and development capabilities to take advantage of the growing domestic and international cable and wire markets in the coming years."
Revenue for the fourth quarter ended June 30, 2011 was $15.4 million, compared to $11.9 million for the fourth quarter ended June 30, 2010. The increased revenue reflects growing demand across all product lines from new and existing customers and increased capacity to accommodate the demand. Gross profit was $4.2 million for the three months ended June 30, 2011, as compared to $3.1 million for the three months ended June 30, 2010. Operating income was $1.7 million for the three months ended June 30, 2011, as compared to $0.9 million for the three months ended June 30, 2010. Net income for the three months ended December 31, 2010 was $4.5 million, or $0.07 per diluted share, compared to net income of $2.1 million, or $0.03 per diluted share, for the same period last year.
Revenue for the twelve months ended June 30, 2011 was $55.6 million, compared to $31.3 million for the twelve months ended June 30, 2010. Gross profit was $14.9 million for the twelve months ended June 30, 2011, as compared to $8.3 million for the twelve months ended June 30, 2010. Operating income was $9.0 million for the twelve months ended June 30, 2011, as compared to $4.3 million for the twelve months ended June 30, 2010. Net income for the twelve months ended June 30, 2011 was $9.4 million, or $0.33 per diluted share, compared to net income of $4.4 million, or $0.15 per diluted share, for the same period last year.
About BEFUT International Co., Ltd.
BEFUT is a manufacturer of specialty cables in northeastern China for sale to industries, including, ship building, nuclear power plants, mining and petrochemical. The Company's cable products consist of (i) traditional electric power system cable and (ii) an assortment of specialty cable, including marine cable, mining specialty cable and petrochemical cable. BEFUT has recently begun to develop carbon fiber composite cable products. The Company has also developed the capability to produce other types of special cables such as submarine cable and certain "new energy" cable, including cable for wind and solar energy. BEFUT's switch application business mainly includes high and low voltage distribution cabinet switches and crane electronic control switches, which complement the cable product offerings.
Safe Harbor Statement
This press release contains forward-looking statements concerning the Company's business, products and financial results. The Company's actual results may differ materially from those anticipated in the forward-looking statements depending on a number of risk factors including, but not limited to, the following: general economic and business conditions, development, shipment, market acceptance, additional competition from existing and new competitors, changes in technology, and various other factors beyond the Company's control. All forward-looking statements are expressly qualified in their entirety by this Safe Harbor Statement and the risk factors detailed in the Company's reports filed with the SEC. BEFUT undertakes no duty to revise or update any forward-looking statements to reflect events or circumstances after the date of this release, except as required by applicable law or regulation.
Contact: | |
Crescendo Communications, LLC | |
David Waldman, Vivian Huo or Klea Theoharis | |
Tel: (212) 671-1020 | |
E-mail: bfti@crescendo-ir.com | |
(tables follow)
Consolidated Balance Sheets | ||||
Assets | June 30, 2011 | June 30, 2010 | ||
Current assets: | ||||
Cash and cash equivalents | $2,724,146 | $1,319,173 | ||
Restricted cash | 3,565,859 | 1,181,095 | ||
Accounts receivable, net of allowance for doubtful accounts of $87,480 | 18,166,580 | 9,292,310 | ||
and $83,295 at June 30, 2011 and 2010, respectively | ||||
Due from factor | 108,545 | - | ||
Inventory | 4,607,431 | 2,543,789 | ||
Trade notes receivable | 1,343,309 | - | ||
Loans to unrelated parties | 4,495,767 | 1,054,090 | ||
Bank loan security deposits | 1,226,771 | 1,031,100 | ||
Advance payments for inventory | 2,024,943 | 399,868 | ||
Due from related party | - | 472,838 | ||
Prepaid VAT taxes | 200,006 | - | ||
Other current assets | 1,729,758 | 521,739 | ||
Total current assets | 40,193,115 | 17,816,002 | ||
Property and equipment, net | 36,449,318 | 31,618,074 | ||
Other assets: | ||||
Advance payments for property and equipment | 771,414 | 293,605 | ||
Advance payments - Research & Development | 1,048,866 | 2,088,714 | ||
Intangibles, net | 15,119,699 | 15,669,375 | ||
Total other assets | 16,939,979 | 18,051,694 | ||
Total assets | $93,582,412 | $67,485,770 | ||
Liabilities | ||||
Current liabilities: | ||||
Accounts payable and accrued expenses | $4,617,422 | $3,119,646 | ||
Short-term bank loans | 11,587,030 | 6,039,300 | ||
Current portion of long-term bank loan | 1,082,900 | 294,600 | ||
Loans from unrelated party | 3,364,992 | 370,000 | ||
Advances from customers | 3,273,647 | 533,806 | ||
Income taxes payable | 322,299 | 1,655,747 | ||
Trade notes payable | 3,094,000 | - | ||
Other current liabilities | 1,039,231 | 969,787 | ||
Total current liabilities | 28,381,521 | 12,982,886 | ||
Long-term bank loan | 13,768,300 | 14,435,400 | ||
Total liabilities | 42,149,821 | 27,418,286 | ||
Equity | ||||
Stockholders' equity: | ||||
Preferred stock, $0.001 par value, 10,000,000 shares authorized, | - | - | ||
no shares issued or outstanding | ||||
Common stock, $0.001 par value, 200,000,000 shares authorized, | 29,716 | 29,716 | ||
29,715,640 and 29,715,666 shares issued and outstanding at | ||||
June 30, 2011 and 2010, respectively | ||||
Additional paid-in capital | 21,838,047 | 21,838,047 | ||
Statutory reserves | 1,215,273 | 1,181,189 | ||
Retained earnings | 23,378,099 | 13,810,157 | ||
Accumulated other comprehensive income | 4,390,669 | 2,166,533 | ||
Total stockholders' equity | 50,851,804 | 39,025,642 | ||
Noncontrolling interest | 580,787 | 1,041,842 | ||
Total equity | 51,432,591 | 40,067,484 | ||
Total liabilities and equity | $93,582,412 | $67,485,770 | ||
Consolidated Statements of Operations | ||||
For the Years Ended June 30, | ||||
2011 | 2010 | |||
Sales | $55,597,912 | $31,258,662 | ||
Cost of sales | 40,680,706 | 22,956,708 | ||
Gross profit | 14,917,206 | 8,301,954 | ||
Operating expenses | ||||
Selling expenses | 439,750 | 80,090 | ||
General and administrative expenses | 5,481,562 | 3,881,655 | ||
Total operating expenses | 5,921,312 | 3,961,745 | ||
Income from operations | 8,995,894 | 4,340,209 | ||
Other income (expenses): | ||||
Government subsidy income | 2,076,750 | 705,602 | ||
Interest income | 15,233 | 110,608 | ||
Interest expense | (2,028,033) | (397,700) | ||
Other income (expenses), net | 749,134 | 545,008 | ||
Total other income | 813,084 | 963,518 | ||
Income before provision for income taxes | 9,808,978 | 5,303,727 | ||
Provision for income taxes | 672,337 | 907,083 | ||
Income from continuing operations, net of taxes | 9,136,641 | 4,396,644 | ||
Discontinued operations: | ||||
Income from operations of discontinued subsidiary (Including gain on disposal of $99,989 in 2011) | 292,146 | - | ||
Provision for income taxes | 24,787 | - | ||
Income from discontinued operations, net of taxes | 267,359 | - | ||
Net income | 9,404,000 | 4,396,644 | ||
Less: net loss attributable to noncontrolling interest | (198,026) | (115,532) | ||
Net income attributable to BEFUT | $9,602,026 | $4,512,176 | ||
Amounts attributable to BEFUT common shareholders: | ||||
Income from continuing operations, net of taxes | $9,334,667 | $4,512,176 | ||
Discontinued operations: | ||||
Income from operations of discontinued subsidiary (including gain on disposal of $99,989 in 2011) | 292,146 | - | ||
Provision for income tax | 24,787 | - | ||
Income from discontinued operations, net of taxes | 267,359 | - | ||
Net income | $9,602,026 | $4,512,176 | ||
Earnings per share————Basic: | ||||
Income from continuing operations | $0.32 | $0.15 | ||
Discontinued operations | $0.01 | $0.00 | ||
Net income | $0.33 | $0.15 | ||
Earnings per share————Diluted: | ||||
Income from continuing operations | $0.32 | $0.15 | ||
Discontinued operations | $0.01 | $0.00 | ||
Net income | $0.33 | $0.15 | ||
Weighted average number of common shares | ||||
outstanding: | ||||
Basic | 29,715,640 | 29,545,797 | ||
Diluted | 29,761,290 | 30,110,241 | ||
