omniture

China Ritar Power Announces Third Quarter Fiscal 2010 Results

2010-11-15 22:49 1639

SHENZHEN, China, Nov. 15, 2010 /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 third quarter of fiscal year 2010 ended on September 30, 2010.

Third Quarter Summary

  • Revenue decreased 4.75% year-over-year to $31.55 million
  • Domestic and international sales accounted for 32% and 68%, respectively, of total revenue
  • Gross profit decreased 17.41% year-over-year to $5.16 million
  • Net income decreased 48.2% year-over-year to $1.7 million
  • Fully diluted earnings per share were $0.08

Revenue was $31.55 million for the third quarter of 2010, down 4.75% from revenue of $33.12 million in the third quarter of 2009.  This decrease was mainly due to the delayed delivery to several large customers.  Batteries used for Telecom, alternative energy, UPS and light electronic vehicles (LEV) markets accounted for 25%, 27%, 39% and 9% of total sales of the third quarter of 2010, respectively.  International sales represented 68% of total sales with domestic sales representing the balance of 32%.

Gross profit for the quarter decreased 17.41% to $5.16 million from $6.25 million in the same period of 2009. Gross margin for third quarter of 2010 was 16.37% compared to 18.88% in the third quarter of 2009.

Operating expenses were $2.5 million or 8.0% of sales, compared to $2.0million or 6.0% of sales in the third quarter of 2009.

Operating income was $2.6 million or 8.3% of sales compared to $4.3 million or 12.9% in the third quarter of 2009.

Net income was $1.69 million in the third quarter of 2010, down 48.2% from $3.26 million in net income from the same period a year ago.  Net profit margin was 5.4% compared to 9.9% in the third quarter of 2009.  Fully diluted earnings per share were $0.08 compared to $0.17 in the third quarter of 2009.

Financial Condition

As of September 30, 2010, China Ritar had $16.1 million in cash and equivalents and restricted cash, $44.3 million in working capital and $43.5 million in total liabilities. Shareholders' equity stood at $62.3 million, up from $55.4 million at year end 2009.  

Business Outlook

The second phase of Hengyang Industrial Park will be completed during the forth quarter of 2010 and the Company expects to begin installing equipment in the forth quarter of the year.  Total number of production lines will increase from 19 to 29.  

During the Third Quarter, the Company has announced the signing of Letter of Intent to acquire TDL Power Technology Co., Ltd. ("TDL"), a private-owned battery company in Zhuzhou, Hunan Province, China. The deal is expected to be accretive and to close by the end of 2010.

Also during the third quarter, the Company was awarded a new contract to supply VRLA batteries to American Power Conversion Corporation (APC), a global leader in the UPS (Uninterruptible Power Supply) markets.  As per supply agreement, China Ritar Power will supply VRLA batteries to be used in APC's UPS products.  The management expects to receive more orders from APC in the future as the strategic relationship between the 2 companies develops.

"We are not satisfied with our financial results for the quarter.  Looking forward to 2011, we will implement measures to improve our operational efficiency, control our cost and improve the R&D efforts.  The demand for stationary lead acid battery remains at a strong level, both in the developed and emerging markets.  China Ritar is at a strong position to strengthen our market position in 2011 and beyond," Mr. Jiada Hu, China Ritar's Chairman and CEO commented.

Conference Call

China Ritar will host a conference call at 8:30 am EST on Monday, November 15, 2010 to discuss the 2010 third quarter results.  To participate in the live conference call, please dial the following number fifteen minutes prior to the scheduled conference call time: +1.866.804.6929, international callers should dial +1.857.350.1675, or 800 96 3844 in Hong Kong, 10 800 130 0399 in South China, 10 800 152 1490 in North China; conference passcode is 70168288.

If you are unable to participate in the call at this time, a replay will be available for 7 days starting on Monday, November 15, 2010 at 11:00 AM ET. To access the replay, dial +1-888-286-8010 and enter the passcode 91404179. International callers should dial +1-617-801-6888 and enter the same passcode.

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.

-FINANCIAL TABLES FOLLOW-


 

CHINA RITAR POWER CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

 


September 30



December 31


 


2010



2009


 


(Unaudited)





 

ASSETS







 

Current assets:







 

Cash and cash equivalents


$

10,679,930



$

20,459,361


 

Restricted cash



5,380,969




5,900,649


 

Accounts receivable, net of allowances of $1,136,475 and $1,115,321



33,966,052




24,920,825


 

Receivable from sale of a subsidiary



-




417,387


 

Due from a former subsidiary



3,181,073




3,925,348


 

Inventory



26,256,207




19,484,224


 

Advance to suppliers



2,259,741




1,643,689


 

Other current assets



4,104,517




3,915,605


 

Total current assets



85,828,489




80,667,088


 









 

Non-current assets:









 

Property, plant and equipment, net



17,075,726




16,248,551


 

Construction in progress



95,945




136,443


 

Intangible assets, net



5,991




9,407


 

Land use right



470,576




468,265


 

Rental prepayment and deposits



981,298




82,439


 

Deposit for purchase of property, plant and equipment



1,227,295




833,760


 

Deferred income tax assets



121,781




115,064


 









 

Total assets


$

105,807,101



$

98,561,017


 









 

LIABILITIES AND STOCKHOLDERS' EQUITY






 

Current liabilities:









 

Accounts payable


$

18,545,426



$

16,658,868


 

Income and other taxes payable



7,230,834




3,986,935


 

Accrued salaries



571,706




502,978


 

Bills payable



10,814,001




13,498,001


 

Other current liabilities



1,749,461




2,800,879


 

Derivative instruments



22,161




-


 

Current portion of long term loans



1,290,283




1,342,473


 

Short-term loans



1,326,760




1,464,515


 

Total current liabilities



41,550,632




40,254,649


 









 

Long-term loans



1,989,723




2,881,188


 









 

Total liabilities



43,540,355




43,135,837


 









 

Stockholders' equity:









 

Preferred stock, $0.001 par value, 10,000,000 shares authorized, none issued and outstanding



-




-


 

Common stock at $0.001 par value; authorized 100,000,000 shares ,

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



26,296,472




20,745,985


 

Accumulated other comprehensive income



4,227,291




3,196,022


 









 

Total stockholders' equity



62,266,746




55,425,180


 









 

Total liabilities and stockholders' equity


$

105,807,101



$

98,561,017


 

 

 
                     




 

CHINA RITAR POWER CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (UNAUDITED)

 


Nine months ended September 30,



Three months ended September 30,

 


2010



2009



2010



2009

 

CONTINUING OPERATIONS












 

Net revenue


$

89,910,434



$

70,904,378



$

31,547,686



$

33,123,343

 

Cost of sales



74,484,047




57,295,863




26,383,879




26,871,015

 

Gross profit



15,426,387




13,608,515




5,163,807




6,252,328

 
















 

Operating expenses:
















 

Salaries



1,759,840




1,209,472




623,267




356,138

 

Sales commission



1,259,840




1,137,101




468,006




210,519

 

Shipping and handling cost



1,056,488




773,936




380,648




266,459

 

Other selling and administrative expenses



3,240,680




2,817,086




1,066,781




1,153,048

 



7,316,848




5,937,595




2,538,702




1,986,164

 
















 

Operating profit



8,109,539




7,670,920




2,625,105




4,266,164

 
















 

Other income and (expenses):
















 

Interest income



85,110




71,268




22,295




5,419

 

Other income



15,969




34,374




9,567




31,097

 

Interest expense



(442,354)




(500,512)




(155,780)




(187,018)

 

Foreign currency exchange loss



(565,985)




(16,677)




(323,965)




(21,766)

 

Other expenses



(3,507)




(7,200)




(456)




(5,536)

 
















 

Other expenses, net



(910,767)




(418,747)




(448,339)




(177,804)

 
















 

Income from continuing operations before income taxes



7,198,772




7,252,173




2,176,766




4,088,360

 
















 

Income taxes



(1,648,285)




(1,315,258)




(487,377)




(786,779)

 
















 

Income from continuing operations



5,550,487




5,936,915




1,689,389




3,301,581

 
















 

DISCONTINUED OPERATIONS
















 

Loss from discontinued operations, net of taxes



-




(354,642)




-




(40,218)

 

Net income



5,550,487




5,582,273




1,689,389




3,261,363

 

Add: Loss from discontinued operations attributable to noncontrolling interest



-




17,731




-




2,009

 
















 

Net income attributable to China Ritar shareholders



5,550,487




5,600,004




1,689,389




3,263,372

 
















 

Other comprehensive income attributable to noncontrolling interest



-




11




-




8

 

Foreign currency translation adjustment



1,031,269




141,239




738,630




23,301

 

Comprehensive income attributable to China Ritar shareholders



6,581,756




5,741,254




2,428,019




3,286,681

 

Comprehensive loss (income) attributable to non-controlling interest



-




(17,742)




-




(2,020)

 
















 

Comprehensive income



6,581,756




5,723,512




2,428,019




3,284,661

 
















 

Earnings per share attributable to China Ritar stockholders:
















 
















 

Basic:
















 

- Income from continuing operations



0.25




0.31




0.08




0.17

 

- Income (loss) from discontinued operations



-




(0.02)




-




-

 

- Net income



0.25




0.29




0.08




0.17

 
















 

Diluted
















 

-Income from continuing operations



0.25




0.30




0.08




0.17

 

-Income (loss) from discontinued operations



-




(0.01)




-




-

 

- Net income



0.25




0.29




0.08




0.17

 
















 

Weighted average number of shares outstanding:
















 

- Basic



21,811,357




19,169,619




21,858,925




19,237,745

 

- Diluted



21,811,357




19,588,589




21,858,925




19,378,936

 

 

 
                               




 

CHINA RITAR POWER CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)


 


For the Nine Months Ended

September 30,


 


2010



2009


 

Cash Flows from Continuing Operating Activities:







 

Net income


$

5,550,487



$

5,582,273


 

Loss from discontinued operations, net of taxes



-




354,642


 

Income from continuing operations



5,550,487




5,936,915


 

Adjustments to reconcile net income to net cash provided by operating activities:









 

Deferred income tax assets



(4,464)




-


 

Depreciation of property, plant and equipment



1,201,416




867,690


 

Amortization of intangible assets and land use right



10,006




9,968


 

Loss (gain) on disposal of property, plant and equipment



673




(365)


 

Loss (gain) on derivative instruments



21,141




(213,947)


 

Changes in operating working capital items:









 

Accounts receivable



(8,438,937)




(8,508,479)


 

Inventory



(6,302,633)




(1,625,320)


 

Advance to suppliers



260,572




(1,603,712)


 

Notes receivable



(40,739)




(14,635)


 

Other current assets



346,555




1,938


 

Loan advance to a landlord



(881,419)




-


 

Accounts payable



1,546,482




4,625,462


 

Income and other taxes payable



3,118,896




1,205,703


 

Accrued salaries



58,265




(182,316)


 

Bills payable



(2,894,192)




865,232


 

Other current liabilities



(1,198,630)




(919,012)


 

Net cash (used in) provided by operating activities



(7,646,521)




445,122


 









 

Cash Flows from Continuing Investing Activities:









 

Repayment from (advance to) a former subsidiary – Shanghai Ritar



805,966




(1,201,767)


 

Purchase of property, plant and equipment



(1,682,472)




(1,380,311)


 

Sales proceeds of disposal of property, plant and equipment



11,899




4,390


 

Payments for deposits for purchase of property, plant and equipment



(1,210,056)




-


 

Net cash used in investing activities



(2,074,663)




(2,577,688)


 









 

Cash Flows from Continuing Financing Activities:









 

Proceeds from stock issued for warrants exercised



259,810




116,910


 

Proceeds from bank borrowings



7,165,648




9,091,188


 

Repayment of bank borrowings



(8,336,408)




(6,402,592)


 

Restricted cash



621,753




841,507


 

Net cash (used in) provided by financing activities



(289,197)




3,647,013


 









 

Cash Flows from Discontinued Operations Activities:









 

Net cash used in discontinued operating activities



-




(1,238,820)


 

Net cash provided by discontinued investing activities



-




1,187,633


 

Net cash provided by discontinued financing activities



-




-


 

Effect of exchange rate changes on cash



-




590


 

Change in cash from discontinued operations



-




50,597


 

Net cash used in discontinued operations



-




-


 









 

Effect of exchange rate changes



230,950




24,645


 









 

Net (decrease) increase in cash and cash equivalents



(9,779,431)




1,539,092


 

Cash and cash equivalents, beginning of period



20,459,361




7,541,697


 

Cash and cash equivalents, end of period


$

10,679,930



$

9,080,789


 









 

Supplemental disclosure of cash flow information









 

Cash paid for interest


$

442,354



$

500,512


 

Cash paid for income taxes


$

361,283



$

735,365


 









 

Non-cash investing and financing activities









 

Issuance of common stock for cashless exercise of warrants


$

316



$

90


 

 

 
                           




 

Contact Information:

 

 

Jigang Sun

 

1 323 428 0002 (USA)

 

139 1186 1878 (China)

 

sun@ritarpower.com

 

 
 
Source: China Ritar Power Corp.
Related Stocks:
NASDAQ:CRTP
collection