Delaware
|
001-34591
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74-2235008
|
||
(State or other jurisdiction of
incorporation or organization)
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(Commission File No.)
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(IRS Employee Identification No.)
|
99.1 |
Press release issued August 14, 2012 relating to its June 30, 2012 earnings.
|
|
99.2 |
Press release issued on August 10, 2012 relating to the conference call.
|
Date: August 14, 2012
|
Cleantech Solutions International, Inc.
|
|
|
By:
|
/s/ Jianhua Wu
|
Jianhua Wu
|
||
Chief Executive Officer
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●
|
Revenue from the sale of forged rolled rings exclusively to the wind power industry fell 25.7% to $4.6 million, representing 36.2% of net revenue, compared to $6.2 million, or 49.5% of net revenue, in the comparable period last year.
|
●
|
Revenue from the sale of forged rolled rings to other industries increased 44.9% to $3.6 million, or 27.8% of net revenue, compared with $2.5 million, or 19.5% of net revenue for the comparable period of the prior year.
|
CLEANTECH SOLUTIONS INTERNATIONAL, INC. AND SUBSIDIARIES
|
||||||||
CONSOLIDATED BALANCE SHEETS
|
||||||||
June 30,
|
December 31,
|
|||||||
2012
|
2011
|
|||||||
(Unaudited)
|
(Audited)
|
|||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$
|
1,307,312
|
$
|
1,152,607
|
||||
Restricted cash
|
284,824
|
314,233
|
||||||
Notes receivable
|
47,471
|
53,420
|
||||||
Accounts receivable, net of allowance for doubtful accounts
|
8,011,584
|
7,087,958
|
||||||
Inventories, net of reserve for obsolete inventory
|
5,911,511
|
4,276,090
|
||||||
Advances to suppliers
|
1,601,450
|
219,347
|
||||||
Prepaid VAT on purchases
|
608,960
|
1,512,213
|
||||||
Prepaid expenses and other
|
199,190
|
110,670
|
||||||
Total Current Assets
|
17,972,302
|
14,726,538
|
||||||
PROPERTY AND EQUIPMENT - net
|
64,668,749
|
64,042,079
|
||||||
OTHER ASSETS:
|
||||||||
Land use rights, net
|
3,800,970
|
3,820,536
|
||||||
Total Assets
|
$
|
86,442,021
|
$
|
82,589,153
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Short-term bank loans
|
$
|
2,690,001
|
$
|
2,356,749
|
||||
Bank acceptance notes payable
|
284,824
|
314,233
|
||||||
Accounts payable
|
4,843,331
|
4,997,109
|
||||||
Accrued expenses
|
948,011
|
771,597
|
||||||
Capital lease obligations- current portion
|
248,046
|
244,747
|
||||||
Advances from customers
|
2,394,167
|
1,166,942
|
||||||
VAT and service taxes payable
|
54,736
|
-
|
||||||
Income taxes payable
|
484,216
|
592,202
|
||||||
Total Current Liabilities
|
11,947,332
|
10,443,579
|
||||||
OTHER LIABILITIES:
|
||||||||
Capital lease obligations - net of current portion
|
254,800
|
381,235
|
||||||
Total Liabilities
|
12,202,132
|
10,824,814
|
||||||
STOCKHOLDERS' EQUITY:
|
||||||||
Preferred stock $0.001 par value (30,000,000 shares authorized, all of which
|
||||||||
were designated as series A convertible preferred, 0 and 10,995,807 shares
|
||||||||
issued and outstanding at June 30, 2012 and December 31, 2011, respectively)
|
-
|
10,996
|
||||||
Common stock ($0.001 par value; 50,000,000 shares authorized;
|
||||||||
2,667,017 and 2,101,849 shares issued and outstanding
|
||||||||
at June 30, 2012 and December 31, 2011, respectively)
|
2,667
|
2,102
|
||||||
Additional paid-in capital
|
28,089,776
|
27,489,600
|
||||||
Retained earnings
|
35,892,733
|
34,618,341
|
||||||
Statutory reserve
|
2,164,324
|
2,064,551
|
||||||
Accumulated other comprehensive gain - foreign currency translation adjustment
|
8,090,389
|
7,578,749
|
||||||
Total Stockholders' Equity
|
74,239,889
|
71,764,339
|
||||||
Total Liabilities and Stockholders' Equity
|
$
|
86,442,021
|
$
|
82,589,153
|
CLEANTECH SOLUTIONS INTERNATIONAL, INC. AND SUBSIDIARIES
|
||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
|
||||||||||||||||
`
|
For the Three Months Ended
|
For the Six Months Ended
|
||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|||||||||||||
REVENUES
|
$
|
12,832,863
|
$
|
12,608,181
|
$
|
22,242,092
|
$
|
30,174,561
|
||||||||
COST OF REVENUES
|
10,138,628
|
9,557,236
|
17,665,171
|
22,571,010
|
||||||||||||
GROSS PROFIT
|
2,694,235
|
3,050,945
|
4,576,921
|
7,603,551
|
||||||||||||
OPERATING EXPENSES:
|
||||||||||||||||
Depreciation
|
373,924
|
340,208
|
748,536
|
420,795
|
||||||||||||
Selling, general and administrative
|
751,544
|
1,028,695
|
1,417,667
|
1,860,496
|
||||||||||||
Total Operating Expenses
|
1,125,468
|
1,368,903
|
2,166,203
|
2,281,291
|
||||||||||||
INCOME FROM OPERATIONS
|
1,568,767
|
1,682,042
|
2,410,718
|
5,322,260
|
||||||||||||
OTHER INCOME (EXPENSE):
|
||||||||||||||||
Interest income
|
346
|
118
|
5,850
|
830
|
||||||||||||
Interest expense
|
(70,363
|
)
|
(32,826
|
)
|
(160,396
|
)
|
(62,528
|
)
|
||||||||
Foreign currency gain (loss)
|
1,115
|
(1,884
|
)
|
5,391
|
(3,341
|
)
|
||||||||||
Warrants modification expense
|
-
|
-
|
(235,133
|
)
|
-
|
|||||||||||
Other income
|
6,635
|
68,463
|
13,280
|
77,113
|
||||||||||||
Total Other Income (Expense)
|
(62,267
|
)
|
33,871
|
(371,008
|
)
|
12,074
|
||||||||||
INCOME BEFORE INCOME TAXES
|
1,506,500
|
1,715,913
|
2,039,710
|
5,334,334
|
||||||||||||
INCOME TAXES
|
435,130
|
545,954
|
665,545
|
1,499,215
|
||||||||||||
NET INCOME
|
$
|
1,071,370
|
$
|
1,169,959
|
$
|
1,374,165
|
$
|
3,835,119
|
||||||||
COMPREHENSIVE INCOME:
|
||||||||||||||||
NET INCOME
|
$
|
1,071,370
|
$
|
1,169,959
|
$
|
1,374,165
|
$
|
3,835,119
|
||||||||
OTHER COMPREHENSIVE INCOME:
|
||||||||||||||||
Unrealized foreign currency translation gain
|
59,938
|
1,084,955
|
511,640
|
1,490,783
|
||||||||||||
COMPREHENSIVE INCOME
|
$
|
1,131,308
|
$
|
2,254,914
|
$
|
1,885,805
|
$
|
5,325,902
|
||||||||
NET INCOME PER COMMON SHARE:
|
||||||||||||||||
Basic
|
$
|
0.42
|
$
|
0.61
|
$
|
0.58
|
$
|
2.01
|
||||||||
Diluted
|
$
|
0.40
|
$
|
0.47
|
$
|
0.53
|
$
|
1.51
|
||||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
|
||||||||||||||||
Basic
|
2,572,753
|
1,919,660
|
2,370,138
|
1,906,203
|
||||||||||||
Diluted
|
2,660,983
|
2,509,757
|
2,592,864
|
2,537,761
|
CLEANTECH SOLUTIONS INTERNATIONAL, INC. AND SUBSIDIARIES
|
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
For the Six Months Ended
|
||||||||
June 30,
|
||||||||
2012
|
2011
|
|||||||
(Unaudited)
|
(Unaudited)
|
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net income
|
$
|
1,374,165
|
$
|
3,835,119
|
||||
Adjustments to reconcile net income from operations to net cash
|
||||||||
provided by operating activities:
|
||||||||
Depreciation
|
3,092,511
|
2,503,759
|
||||||
Amortization of land use rights
|
46,727
|
45,138
|
||||||
(Decrease) increase in allowance for doubtful accounts
|
(46,631
|
)
|
166,640
|
|||||
Warrants modification expense
|
235,133
|
-
|
||||||
Stock-based compensation expense
|
101,590
|
214,807
|
||||||
Changes in assets and liabilities:
|
||||||||
Restricted cash
|
-
|
(152,714
|
)
|
|||||
Notes receivable
|
6,324
|
(139,095
|
)
|
|||||
Accounts receivable
|
(825,725
|
)
|
1,439,402
|
|||||
Inventories
|
(1,603,500
|
)
|
(705,682
|
)
|
||||
Prepaid value-added taxes on purchases
|
913,184
|
752,472
|
||||||
Prepaid and other current assets
|
(32,988
|
)
|
(91,109
|
)
|
||||
Advances to suppliers
|
(1,379,275
|
)
|
(1,610,347
|
)
|
||||
Bank acceptance notes payable
|
-
|
152,714
|
||||||
Accounts payable
|
(188,919
|
)
|
(2,838,972
|
)
|
||||
Accrued expenses
|
171,338
|
438,205
|
||||||
VAT and service taxes payable
|
54,685
|
(82,407
|
)
|
|||||
Income taxes payable
|
(112,101
|
)
|
(605,803
|
)
|
||||
Advances from customers
|
1,217,798
|
1,139,208
|
||||||
NET CASH PROVIDED BY OPERATING ACTIVITIES
|
3,024,316
|
4,461,335
|
||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Purchase of property and equipment
|
(3,263,008
|
)
|
(4,796,171
|
)
|
||||
NET CASH USED IN INVESTING ACTIVITIES
|
(3,263,008
|
)
|
(4,796,171
|
)
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Principal payments on capital lease
|
(127,477
|
)
|
-
|
|||||
Proceeds from bank loans
|
2,213,264
|
1,832,570
|
||||||
Repayment of bank loans
|
(1,897,083
|
)
|
(1,374,428
|
)
|
||||
Decrease in restricted cash
|
31,618
|
-
|
||||||
Decrease in bank acceptance notes payable
|
(31,618
|
)
|
-
|
|||||
Proceeds from sale of common stock
|
-
|
125,000
|
||||||
Proceeds from exercise of warrants
|
198,142
|
400,000
|
||||||
NET CASH PROVIDED BY FINANCING ACTIVITIES
|
386,846
|
983,142
|
||||||
EFFECT OF EXCHANGE RATE ON CASH AND CASH EQUIVALENTS
|
6,551
|
29,087
|
||||||
NET INCREASE IN CASH AND CASH EQUIVALENTS
|
154,705
|
677,393
|
||||||
CASH AND CASH EQUIVALENTS - beginning of period
|
1,152,607
|
947,177
|
||||||
CASH AND CASH EQUIVALENTS - end of period
|
$
|
1,307,312
|
$
|
1,624,570
|
||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
|
||||||||
Cash paid for:
|
||||||||
Interest
|
$
|
160,396
|
$
|
62,528
|
||||
Income taxes
|
$
|
777,646
|
$
|
2,105,018
|
||||
NON-CASH INVESTING AND FINANCING ACTIVITIES:
|
||||||||
Series A preferred converted to common shares
|
$
|
13,198
|
$
|
936
|
||||
Common stock issued for future service
|
$
|
54,880
|
$
|
113,317
|
For the Three Months Ended June 30,
|
For the Six Months Ended June 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Net Income
|
$ | 1,071,370 | $ | 1,169,959 | $ | 1,374,165 | $ | 3,835,119 | ||||||||
Add: Income Tax
|
435,130 | 545,954 | 665,545 | 1,499,215 | ||||||||||||
Add: Interest expense, net
|
70,017 | 32,708 | 154,546 | 61,698 | ||||||||||||
Add: Warrant modification expense
|
- | - | 235,133 | - | ||||||||||||
Add: Depreciation and Amortization
|
1,568,510 | 1,349,467 | 3,139,238 | 2,548,897 | ||||||||||||
EBITDA
|
$ | 3,145,027 | $ | 3,098,088 | $ | 5,568,627 | $ | 7,944,929 |
For the Six Months Ended June 30,
|
||||||||
2012
|
2011
|
|||||||
Net Income
|
$ | 1,374,165 | $ | 3,835,119 | ||||
Add: Warrant modification expense
|
235,133 | - | ||||||
Non-GAAP Net Income
|
$ | 1,609,298 | $ | 3,835,119 | ||||
Non-GAAP Diluted EPS
|
$ | 0.62 | $ | 1.51 |