Cayman Islands
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000-53233
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98-0562157
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(State or Other Jurisdiction
of Incorporation)
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(Commission
File Number)
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(IRS Employer
Identification No.)
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1108 A Block TIANCHENG MANSION, #2 XINFENG Rd.
DESHEMENGWAI St, XICHENG Dist. Beijing
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100088
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(Address of Principal Executive Offices)
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(Zip Code)
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Exhibit No
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Description
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99.1
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Press Release dated August 16, 2011
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WOWJOINT HOLDINGS LIMITED
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By:
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/s/ Ya Bin Liu
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Name: Ya Bin Liu
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Date: August 16, 2011
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Title: Chief Executive Officer
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•
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Q2 2011 revenue of $8.4 million in-line with guidance, represents a 228% increase compared to Q2 2010
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•
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Gross Margins increase to 28.9% for Q2 2011, an increase of 570 basis points compared to Q2 2010
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•
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Order backlog is strong at $22 million as of June 30, 2011
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•
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Q3 2011 revenue guidance: $5-7 million
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•
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Management to host earnings conference call August 15, 2011 at 4:30 p.m. EDT
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•
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Revenues for the Company's second quarter ended June 30, 2011 increased 228% to $8.4 million as compared to $2.6 million in the second quarter of 2010.
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•
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Technical service sales were $0.3 million for the quarter, compared to $1.5 million in the same quarter last year. Lease revenue was $0.2 million for the second quarter 2011, which is a recent addition to Wowjoint’s revenue stream and it will continue to be a focus for increases revenue due to its higher margins.
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•
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International based revenues accounted for approximately 53% of total sales, an increase from 3% of total sales in the same period 2010.
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•
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Gross profit increased substantially to $2.4 million from $0.6 million in the past year. Gross margins increased to 570 basis points to 28.9% in the second quarter 2011 compared to 23.2% in the same period 2010.
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•
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Operating income increased to $1.5 million for the second quarter 2011 compared to a loss of $0.8 million for the second quarter 2010.
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•
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Net income for the second quarter 2011 was $1.0 million or $.013 per share based on 7.9 million weighted average shares outstanding, compared to a net loss of $0.4 million in same period 2010.
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·
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Cash and cash equivalents totaled $4.3 million at June 30, 2011, as compared to $3.0 million at March 31, 2011.
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·
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Accounts receivable were $15.8 million at June 30, 2011 as compared to $16.8 million at March 31, 2011. The slight reduction shows the continued focus on reducing the receivables while still driving sales. The majority of the receivables are from extremely large Blue Chip companies in China; therefore collection of the receivables is relatively secure.
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·
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Inventories amounted to $8.4 million, which was flat from $8.5 million at March 31, 2011, but an increase from year-end due to additional materials that were purchased for production of equipment and were in-line with the sales increase.
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·
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Working capital was $15.1 million on June 30, 2011.
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The Company had total stockholders' equity of $22.2 million, with total assets of $44.7 million versus total liabilities of $22.5 million on June 30, 2011.
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·
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Revenues for the six month period ended June 30, 2011 increased 250% to $15.0 million as compared to $4.3 million for the six month period ended June 30, 2010.
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·
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Technical service sales for the first six months of 2011 were $1.0 million compared to $1.6 million in the same period in 2010. Lease revenues for the six months ended June 30, 2011 were $0.5 million.
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International based revenues accounted for approximately 41% of total sales, a substantial increase from 3% of total sales in the same period 2010.
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·
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Gross profit increased to $3.8 million from $0.9 million in the year ago six month period. Gross margins increased 510 basis points to 25.5% in the first six months of 2011 compared to 20.4% in the same period in 2010.
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·
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Operating income for the six months ended June 30, 2011 increased to $1.9 million for compared to a loss for the same period in 2010.
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Net income for the first six months of 2011 was $1.3 million, or $0.17 per share based on 7.9 million weighted average shares outstanding, compared to net loss of $1.2 million in same period 2010.
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Three Months Ended
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Six Months Ended
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June 30,
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March 31,
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June 30,
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June 30,
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June 30,
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||||||||||||||||
2011
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2011
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2010
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2011
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2010
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Sales
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Machinery sales
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7,834 | 5,748 | 999 | 13,582 | 2,652 | |||||||||||||||
Technical service
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344 | 613 | 1,563 | 957 | 1,642 | |||||||||||||||
Lease income
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238 | 255 | - | 493 | - | |||||||||||||||
Total sales
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8,416 | 6,616 | 2,562 | 15,032 | 4,294 | |||||||||||||||
Cost of goods sold
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5,980 | 5,209 | 1,966 | 11,189 | 3,416 | |||||||||||||||
Gross profit
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2,436 | 1,407 | 596 | 3,843 | 878 | |||||||||||||||
Operating expenses:
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Selling expenses
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376 | 227 | 267 | 603 | 341 | |||||||||||||||
General and administrative expenses
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544 | 835 | 1,147 | 1,379 | 1,862 | |||||||||||||||
Total operating expenses
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920 | 1,062 | 1,414 | 1,982 | 2,203 | |||||||||||||||
Income from operations
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1,516 | 345 | (818 | ) | 1,861 | (1,325 | ) | |||||||||||||
Other expenses:
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Interest expense (net)
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58 | 46 | 6 | 104 | 16 | |||||||||||||||
Bank expense
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32 | - | 14 | 32 | 15 | |||||||||||||||
Foreign currency exchange loss (gain)
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9 | (62 | ) | 16 | (53 | ) | 16 | |||||||||||||
Other expense (profit)
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(1 | ) | (1 | ) | (29 | ) | (2 | ) | (37 | ) | ||||||||||
Total other expenses
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98 | (17 | ) | 7 | 81 | 10 | ||||||||||||||
Income before income taxes
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1,418 | 362 | (825 | ) | 1,780 | (1,335 | ) | |||||||||||||
Income taxes (Benefits) expenses
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394 | 72 | (63 | ) | 466 | (148 | ) | |||||||||||||
1,024 | 290 | (425 | ) | 1,314 | (1,187 | ) | ||||||||||||||
Net income attributed to ordinary shareholders
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Earnings per share
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Basis
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0.13 | 0.04 | (0.10 | ) | 0.17 | (0.17 | ) | |||||||||||||
Diluted
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0.13 | 0.04 | (0.10 | ) | 0.17 | (0.17 | ) | |||||||||||||
Weighted average number of shares used in computing earnings per share
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Basis
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7,949,965 | 7,949,965 | 7,949,965 | 7,949,965 | 7,194,485 | |||||||||||||||
Diluted
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7,949,965 | 7,949,965 | 7,949,965 | 7,949,965 | 7,194,485 |
Six Months Ended
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June 30,
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June 30,
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2011
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2010
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CASH FLOWS FROM OPERATING ACTIVITIES:
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Net income (loss)
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1,314 | (1,187 | ) | |||||
Adjustments to reconcile net income to net cash provided by
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operating activities:
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Depreciation and amortization
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212 | 122 | ||||||
Bad debt expense
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(591 | ) | 3,343 | |||||
Other
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Changes in operating assets and liabilities:
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Accounts receivable
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2,656 | 2,707 | ||||||
Other receivables
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(651 | ) | (90 | ) | ||||
Advances to suppliers
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598 | (673 | ) | |||||
Inventories
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(3,163 | ) | (3,652 | ) | ||||
Costs and estimated earnings in excess of billings
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(539 | ) | 591 | |||||
Prepaid expense – Short-term
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- | (48 | ) | |||||
Accounts payables and accrued expenses
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3,773 | 579 | ||||||
Other payables
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610 | 753 | ||||||
Unearned lease income
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(477 | ) | - | |||||
Advances from customers
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(1,700 | ) | 1,452 | |||||
Taxes payable
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(163 | ) | (1,002 | ) | ||||
Billings in excess of costs and estimated earnings
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(586 | ) | 408 | |||||
Total adjustments
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(21 | ) | 1,149 | |||||
Net cash (used in) provided by operating activities
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1,293 | (38 | ) | |||||
CASH FLOWS FROM INVESTING ACTIVITIES:
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Long term investment
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- | - | ||||||
Purchase of property, plant and equipment
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(3,925 | ) | (193 | ) | ||||
Prepaid expense - Long-term
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(44 | ) | - | |||||
Net cash used in investing activities
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(3,969 | ) | (193 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES:
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Net cash provided by acquisition
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- | 6,911 | ||||||
Repayment of short-term loans
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- | - | ||||||
Proceeds from short-term loans
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2,353 | - | ||||||
Proceeds from long-term loans
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1,545 | - | ||||||
Restricted cash
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442 | (183 | ) | |||||
Due from related parties
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45 | (22 | ) | |||||
Due to related parties
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- | - | ||||||
Net cash provided by (used in) financing activities
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4,385 | 6,706 | ||||||
NET INCREASE (DECREASE) IN CASH
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1,709 | 6,475 | ||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH
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446 | 92 | ||||||
CASH, BEGINNING OF PERIOD
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2,168 | 675 | ||||||
CASH, END OF PERIOD
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4,323 | 7,242 | ||||||
SUPPLEMENTAL DISCLOSURES:
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Cash paid during the period for:
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Interest paid
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71 | 15 | ||||||
Income tax paid
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316 | 75 |