0001213900-12-006130.txt : 20121114 0001213900-12-006130.hdr.sgml : 20121114 20121114123107 ACCESSION NUMBER: 0001213900-12-006130 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20121109 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20121114 DATE AS OF CHANGE: 20121114 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Cleantech Solutions International, Inc., CENTRAL INDEX KEY: 0000819926 STANDARD INDUSTRIAL CLASSIFICATION: SPECIAL INDUSTRY MACHINERY (NO METALWORKING MACHINERY) [3550] IRS NUMBER: 752233445 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-34591 FILM NUMBER: 121202500 BUSINESS ADDRESS: STREET 1: NO. 9 YANYU MIDDLE ROAD QIANZHOU VILLAGE STREET 2: HUISHAN DISTRICT, WUXI CITY CITY: JIANGSU PROVINCE, STATE: F4 ZIP: 00000 BUSINESS PHONE: (86) 51083397559 MAIL ADDRESS: STREET 1: NO. 9 YANYU MIDDLE ROAD QIANZHOU VILLAGE STREET 2: HUISHAN DISTRICT, WUXI CITY CITY: JIANGSU PROVINCE, STATE: F4 ZIP: 00000 FORMER COMPANY: FORMER CONFORMED NAME: China Wind Systems, Inc DATE OF NAME CHANGE: 20071221 FORMER COMPANY: FORMER CONFORMED NAME: MALEX INC DATE OF NAME CHANGE: 19920703 8-K 1 f8k110912_cleantech.htm CURRENT REPORT f8k110912_cleantech.htm


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 

 
FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934 
 
Date of report (Date of earliest event reported):   November 9, 2012
 

 
CLEANTECH SOLUTIONS INTERNATIONAL, INC.
 

 
(Exact name of registrant as specified in Charter)
 
Delaware
 
001-34591
 
74-2235008
(State or other jurisdiction of
incorporation or organization)
 
(Commission File No.)
 
(IRS Employee Identification No.)
 
No. 9 Yanyu Middle Road
Qianzhou Village, Huishan District, Wuxi City
Jiangsu Province, People’s Republic of China
 (Address of Principal Executive Offices)
 

 
(86) 51083397559
 (Registrant’s Telephone number)
 

 
Copies to:
Asher S. Levitsky PC
Ellenoff Grossman & Schole LLP
150 East 42nd Street
New York, New York 10017
Phone: (212) 370-1300
Fax: (646) 895-7182
E-mail: alevitsky@egsllp.com

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12(b) under the Exchange Act (17 CFR 240.14a-12(b))
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 
 
 

 
 
Item 2.02    Results of Operations and Financial Condition.

On November 13, 2012, the Company issued a press release announcing its financial results for the three and nine months ended September 30, 2012. A copy of the Company’s November 13, 2012 press release is included as Exhibit 99.1.
 
In accordance with General Instruction B.2 of Form 8-K, the information in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, and shall not be deemed to be incorporated by reference into any of the Company’s filings under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether made before or after the date hereof and regardless of any general incorporation language in such filings, except to the extent expressly set forth by specific reference in such a filing.

Item 7.01  Regulation FD Disclosure.

On November 9, 2012, the Company issued a press release announcing a conference call on November 15, 2012 to discuss financial results for the third quarter ended September 30, 2012. A copy of the press release is included as Exhibit 99.2.
 
In accordance with General Instruction B.2 of Form 8-K, the information in Item 7.01 of this Current Report on Form 8-K, including Exhibit 99.2, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, and shall not be deemed to be incorporated by reference into any of the Company’s filings under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether made before or after the date hereof and regardless of any general incorporation language in such filings, except to the extent expressly set forth by specific reference in such a filing.

Item 9.01  Financial Statements and Exhibits.

(d) Exhibits.

 
99.1
Press release issued November 13, 2012 relating to its third quarter financial results.
 
99.2
Press release issued on November 9, 2012 relating to the conference call.
     
     

 
 
 
 

 
 
SIGNATURES
 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.
 
Date: November 14, 2012
Cleantech Solutions International, Inc.
   
   
By:  
/s/ Jianhua Wu
 
Jianhua Wu
 
Chief Executive Officer


EX-99.1 2 f8k110912ex99i_cleantech.htm PRESS RELEASE ISSUED NOVEMBER 13, 2012 f8k110912ex99i_cleantech.htm
 
Exhibit 99.1
 
Company Contact:
 
Ms. Wanfen Xu
Crocker Coulson
Chief Financial Officer
CCG Investor Relations
Cleantech Solutions International, Inc.
Tel: +1 646 213 1915
Email: xu_wf@cleantechsolutionsinternational.com
Email: Crocker.coulson@ccgir.com,
Web: www.cleantechsolutionsinternational.com
Web: www.ccgirasia.com
 

Cleantech Solutions International Reports Third Quarter 2012 Results

Wuxi, Jiangsu Province, ChinaNovember 13, 2012 –Cleantech Solutions International, Inc. (“Cleantech Solutions” or “the Company”) (NASDAQ: CLNT), a manufacturer of metal components and assemblies, primarily used in the wind power, solar, dyeing and finishing equipment and other clean technology industries, today announced its financial results for the three and nine months ended September 30, 2012.

“Against a weak macro-economic background, we are very pleased to have achieved 48.5% growth in revenues and 107.5% growth in net income during the third quarter of 2012. Our performance was driven by a sharp improvement in demand for our next generation of dyeing machines as well as solid growth in forged products for non-wind applications," commented Mr. Jianhua Wu, Chairman and Chief Executive Officer of Cleantech Solutions. “Profitability improved due to expansion of our gross margins to 24.9%, as well as strict controls over operating expenses. With an increasingly diversified portfolio of precision products, we believe we have greater flexibility to adjust to fluctuations in our served markets so as to optimize our performance,” added Mr. Wu.

Third Quarter 2012 Results
Revenue for the third quarter of 2012 increased 48.5% to $17.3 million, compared to $11.7 million for the same period of 2011. Sequentially, revenue increased 35.2% compared to the second quarter of 2012.

Revenue from the sale of forged rolled rings to the wind power industry and other industries increased 29.1% to $9.8 million, or 56.7% of net revenue, compared to $7.6 million, or 65.2% of net revenue, in the same period last year. The increase in revenue was mainly due to improving market demand for capital equipment related to the Company’s forged rolled rings and related products for other industries, which was counterbalanced by continued weak demand in the wind industry due to overcapacity, vertical integration by turbine manufacturers, and reduced government subsidies.

The increase in revenue is summarized as follows:

  
Revenue from the sale of forged rolled rings exclusively to the wind power industry decreased by 28.4% to $3.2 million, representing 18.5% of net revenue, compared to $4.5 million, or 38.5% of net revenue, in the comparable period last year.
 
 
 
 
 

 

 
Cleantech Solutions Third Quarter 2012 Results
 
  
Revenue from the sale of forged rolled rings to other industries increased 112.1% to $6.6 million, or 38.2% of net revenue, compared with $3.1 million, or 26.7% of net revenue for the comparable period of the prior year.

Revenue from the Company’s dyeing and finishing equipment segment increased 84.8% to $7.5 million, or 43.3% of net revenues, compared to $4.1 million, or 34.8% of net revenue, for the third quarter of 2011. This increase was largely attributable to the dyeing industry’s response to local government’s policies which encourage the purchase of low-emission airflow dyeing machines.

Gross profit for the third quarter of 2012 increased 64.2% to $4.3 million, compared to $2.6 million for the same period in 2011. Gross margin increased to 24.9% during the third quarter of 2012 compared to 22.5% for the same period a year ago. The increase in gross margin was attributable to improved operational and cost efficiencies in the forged rolled rings and related products segment, including the allocation of fixed costs such as depreciation to cost of revenues as the Company operated at higher production levels. Gross margin for the dyeing and finishing equipment segment also improved due to the higher ASPs for our next-generation dyeing equipment.

Operating expenses increased 11.6% to $1.1 million, compared to $1.0 million in the comparable period last year. The increase was primarily due to an increase in depreciation, related to the equipment for ESR production, partially compensated for by reduced bad debt expenses.

Selling, general and administrative expenses for the three months ended September 30, 2012 decreased 19.0% to $0.7 million, as compared to $0.9 million for the three months ended September 30, 2011.

Operating income increased 96.3% to $3.2 million, compared to $1.6 million for the same period of 2011. Operating margin was 18.5% compared to 14.0% in the third quarter last year.

Other expense was $26,446 compared to other expense of $47,552 for the same period in 2011. The decrease was due to an increase in other income, offset by higher interest expense as a result of increase in debt and capital lease obligations.

Adjusted EBITDA, a non-GAAP measurement, which excludes interest, taxes, warrant modification expense, depreciation and amortization, was up 74.5% to $4.9 million, compared to $2.8 million in the same quarter last year.

Net income for the third quarter of 2012 was $2.4 million, or $0.88 diluted earnings per share, compared to $1.1 million, or $0.46 diluted earnings per share, in the third quarter of 2011. Diluted earnings per share were calculated using diluted weighted average shares of 2,667,017 and 2,462,159 for the three months ended September 30, 2012 and 2011, respectively.  All share and per share information has been adjusted to reflect a one-for-ten reverse stock split effective March 6, 2012.
 
 
2

 
 
Cleantech Solutions Third Quarter 2012 Results
 
Results for Nine Months

For the nine months ended September 30, 2012, revenues decreased 5.4% to $39.6 million from $41.9 million in 2011. Gross profit decreased 13.1% to $8.9 million, compared to $10.2 million last year. Gross margin for the nine months ended September 30, 2012 was 22.5%, compared to 24.5% in the corresponding period of 2011. Operating income decreased 19.2% to $5.6 million from $7.0 million in 2011. Adjusted EBITDA was $10.5 million, compared to $10.8 million in the same period last year. Net income was $3.7 million, or $1.42 per diluted share, a 25.0% decrease from $5.0 million, or $1.98 per diluted share, in the year ago period. All share and per share information has been adjusted to reflect a one-for-ten reverse stock split effective March 6, 2012.

 Financial Condition

As of September 30, 2012, Cleantech Solutions held cash and cash equivalents of $1.0 million compared with $1.2 million at December 31, 2011.  Accounts receivable were $10.5 million and total current assets of $19.6  million. The Company had $2.7 million in short-term bank loans payable and stockholders’ equity was $76.4 million. In the first nine months of 2012, the Company generated $5.8 million in cash flow from operations.


Subsequent Events

On October 10, 2012 the Company announced that it has received new and follow-on purchase orders to supply 23 units of airflow dyeing machines and related components to domestic customers, for an aggregate amount of $2.2 million.

On October 31, 2012 the Company announced that it has received a new purchase order to supply 63 units of airflow dyeing machines and related components to a domestic customer for a purchase price of $1.7 million.

Business Outlook

"We had a very successful quarter, despite the significant challenges that are facing both the wind energy and the solar industry in the near term. Growth of our forged products for non-wind applications has been very strong, and we are exploring additional markets, including petroleum and petrochemical industries. We are also excited about the new opportunities presented in China’s solar industry, which is expected to undergo some major change following recent supportive government policies, and we are also expanding our range to include high performance components for production equipment targeting smart phones and LED lighting. In the dyeing and finishing equipment segment, we are benefiting from a major upgrade cycle, as manufacturers embrace our more energy efficient and environmentally friendly technology. We anticipate strong growth potential in 2013 with the expected launch of our new after-treatment equipment, which is in the late stages of research and development.”

“Thanks to improving volumes and strong expense controls, our margins improved dramatically in the third quarter. In the next few quarters, we continue to foresee a slight increase in our margins, as raw material costs are not expected to have great fluctuations given the general weak economy. We have been generating positive cash flow from operations and believe they are sufficient to fund our new product development initiatives," Mr. Wu concluded.

 
3

 
 
Cleantech Solutions Third Quarter 2012 Results
 
Conference Call
Cleantech Solutions will conduct a conference call at 9:00 a.m. Eastern Time on November 15, 2012 to discuss financial results for the third fiscal quarter ended September 30, 2012.
 
To participate in the live conference call, please dial the following number five to ten minutes prior to the scheduled conference call time: (866) 759-2078. International callers should dial (706) 643-0585. When prompted, please enter conference passcode: 69519396.
 
If you are unable to participate in the conference call at this time, a replay will be available for 14 days starting on November 15, 2012 at 12:00 noon ET. To access the replay, dial (855) 859-2056. International callers dial (404) 537-3406, and enter passcode: 69519396.

Use of Non-GAAP Financial Measures
 
The Company has included in this press release certain non-GAAP financial measures. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing the performance of the Company and when planning and forecasting future periods. Readers are cautioned not to view non-GAAP financial measures on a stand-alone basis or as a substitute for GAAP measures, or as being comparable to results reported or forecasted by other companies, and should refer to the reconciliation of GAAP measures with non-GAAP measures also included herein.
 
About Cleantech Solutions International

Cleantech Solutions is a manufacturer of metal components and assemblies, primarily used in clean technology industries. The Company supplies forging products, fabricated products and machining services to a range of clean technology customers, primarily in the wind power sector and supplies dyeing and finishing equipment to the textile industry. Cleantech Solutions is committed to achieving long-term growth through ongoing technological improvement, capacity expansion, and the development of a strong customer base. The Company’s website is
www.cleantechsolutionsinternational.com. Any information on the Company’s website or any other website is not a part of this press release.
 
 
 
4

 
 
Safe Harbor Statement
 
This release contains certain “forward-looking statements” relating to the business of the Company and its subsidiary and affiliated companies. These forward looking statements are often identified by the use of forward-looking terminology such as “believes,” “expects” or similar expressions. Such forward looking statements involve known and unknown risks and uncertainties that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Investors 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 the Securities and Exchange Commission and available on its website, including factors described in “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Form 10-K for the year ended December 31, 2011 and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Form 10-Q for the quarter ended September 30, 2012. All forward-looking statements attributable to the Company or to 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-
 
 
5

 
Cleantech Solutions Third Quarter 2012 Results
 
CLEANTECH SOLUTIONS INTERNATIONAL, INC. AND SUBSIDIARIES
 
CONSOLIDATED BALANCE SHEETS
 
             
   
September 30,
   
December 31,
 
   
2012
   
2011
 
   
(Unaudited)
   
(Audited)
 
ASSETS
           
             
CURRENT ASSETS:
           
    Cash and cash equivalents
  $ 955,405     $ 1,152,607  
    Restricted cash
    -       314,233  
    Notes receivable
    165,772       53,420  
    Accounts receivable, net of allowance for doubtful accounts
    10,533,490       7,087,958  
    Inventories, net of reserve for obsolete inventory
    6,220,634       4,276,090  
    Advances to suppliers
    847,216       219,347  
    Prepaid VAT on purchases
    675,448       1,512,213  
    Prepaid expenses and other
    179,826       110,670  
                 
        Total Current Assets
    19,577,791       14,726,538  
                 
PROPERTY AND EQUIPMENT - net
    65,965,819       64,042,079  
                 
OTHER ASSETS:
               
   Land use rights, net
    3,769,058       3,820,536  
                 
        Total Assets
  $ 89,312,668     $ 82,589,153  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY
               
                 
CURRENT LIABILITIES:
               
    Short-term bank loans
  $ 2,683,928     $ 2,356,749  
    Bank acceptance notes payable
    -       314,233  
    Accounts payable
    6,329,876       4,997,109  
    Accrued expenses
    725,423       771,597  
    Capital lease obligations- current portion
    249,597       244,747  
    Advances from customers
    1,840,352       1,166,942  
    Income taxes payable
    884,003       592,202  
 
               
        Total Current Liabilities
    12,713,179       10,443,579  
                 
OTHER LIABILITIES:
               
    Capital lease obligations - net of current portion
    174,123       381,235  
                 
         Total Liabilities
    12,887,302       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 September 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 September 30, 2012 and December 31, 2011, respectively)
    2,667       2,102  
    Additional paid-in capital
    28,089,776       27,489,600  
    Retained earnings
    38,128,307       34,618,341  
    Statutory reserve
    2,283,852       2,064,551  
    Accumulated other comprehensive gain - foreign currency translation adjustment
    7,920,764       7,578,749  
                 
        Total Stockholders' Equity
    76,425,366       71,764,339  
                 
        Total Liabilities and Stockholders' Equity
  $ 89,312,668     $ 82,589,153  
 
 
6

 
Cleantech Solutions Third Quarter 2012 Results
 
CLEANTECH SOLUTIONS INTERNATIONAL, INC. AND SUBSIDIARIES
 
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
 
                         
`
 
For the Three Months Ended
   
For the Nine Months Ended
 
   
September 30,
   
September 30,
 
   
2012
   
2011
   
2012
   
2011
 
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
 
                         
REVENUES
  $ 17,343,723     $ 11,676,696     $ 39,585,815     $ 41,851,257  
                                 
COST OF REVENUES
    13,024,265       9,046,015       30,689,436       31,617,025  
                                 
GROSS PROFIT
    4,319,458       2,630,681       8,896,379       10,234,232  
      0.249050218       0.225293268       0.225       0.245  
OPERATING EXPENSES:
                               
     Depreciation
    373,896       84,531       1,122,432       505,326  
     Selling, general and administrative
    739,386       913,198       2,157,053       2,773,694  
                                 
        Total Operating Expenses
    1,113,282       997,729       3,279,485       3,279,020  
                                 
INCOME FROM OPERATIONS
    3,206,176       1,632,952       5,616,894       6,955,212  
      0.184860886       0.139847094                  
OTHER INCOME (EXPENSE):
                               
     Interest income
    5,069       110       10,919       940  
     Interest expense
    (84,289 )     (60,452 )     (244,685 )     (122,980 )
     Foreign currency gain (loss)
    1,251       (1,476 )     6,642       (4,817 )
     Warrants modification expense
    -       -       (235,133 )     -  
     Other income
    51,523       14,266       64,803       91,379  
                                 
        Total Other Income (Expense)
    (26,446 )     (47,552 )     (397,454 )     (35,478 )
                                 
INCOME BEFORE INCOME TAXES
    3,179,730       1,585,400       5,219,440       6,919,734  
                                 
INCOME TAXES
    824,628       450,410       1,490,173       1,949,625  
                                 
NET INCOME
  $ 2,355,102     $ 1,134,990     $ 3,729,267     $ 4,970,109  
                                 
COMPREHENSIVE INCOME:
                               
      NET INCOME
  $ 2,355,102     $ 1,134,990     $ 3,729,267     $ 4,970,109  
                                 
      OTHER COMPREHENSIVE INCOME:
                               
           Unrealized foreign currency translation (loss) gain
    (169,625 )     655,213       342,015       2,145,996  
                                 
      COMPREHENSIVE INCOME
  $ 2,185,477     $ 1,790,203     $ 4,071,282     $ 7,116,105  
                                 
NET INCOME PER COMMON SHARE:
                               
    Basic
  $ 0.88     $ 0.57     $ 1.51     $ 2.57  
    Diluted
  $ 0.88     $ 0.46     $ 1.42     $ 1.98  
                                 
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
                         
    Basic
    2,667,017       1,997,674       2,469,818       1,937,028  
    Diluted
    2,667,017       2,462,159       2,617,798       2,512,637  
                                 
   

 
 
7

 
Cleantech Solutions Third Quarter 2012 Results

CLEANTECH SOLUTIONS INTERNATIONAL, INC. AND SUBSIDIARIES
 
CONSOLIDATED STATEMENTS OF CASH FLOWS
 
   
   
For the Nine Months Ended
 
   
September 30,
 
   
2012
   
2011
 
   
(Unaudited)
   
(Unaudited)
 
CASH FLOWS FROM OPERATING ACTIVITIES:
           
Net income
  $ 3,729,267     $ 4,970,109  
Adjustments to reconcile net income from operations to net cash
               
provided by operating activities:
               
Depreciation
    4,719,769       3,651,168  
Amortization of land use rights
    70,068       68,145  
(Decrease) increase in allowance for doubtful accounts
    (46,616 )     389,120  
Warrants modification expense
    235,133       -  
Stock-based compensation expense
    129,030       282,259  
Changes in assets and liabilities:
               
Notes receivable
    (112,209 )     (96,409 )
Accounts receivable
    (3,368,092 )     (70,783 )
Inventories
    (1,925,810 )     (1,935,112 )
Prepaid value-added taxes on purchases
    844,969       814,967  
Prepaid and other current assets
    (41,315 )     (48,340 )
Advances to suppliers
    (627,455 )     (495,317 )
Accounts payable
    1,310,123       (2,741,480 )
Accrued expenses
    (49,578 )     58,098  
VAT and service taxes payable
    -       (82,941 )
Income taxes payable
    289,230       (712,490 )
Advances from customers
    668,446       1,839,882  
                 
NET CASH PROVIDED BY OPERATING ACTIVITIES
    5,824,960       5,890,876  
                 
CASH FLOWS FROM INVESTING ACTIVITIES:
               
Payments for deposit on equipment
    -       (768,520 )
Purchase of property and equipment
    (6,334,776 )     (6,413,874 )
                 
NET CASH USED IN INVESTING ACTIVITIES
    (6,334,776 )     (7,182,394 )
                 
CASH FLOWS FROM FINANCING ACTIVITIES:
               
Principal payments on capital lease
    (205,509 )     (143,545 )
Proceeds from bank loans
    2,686,706       2,612,969  
Repayment of bank loans
    (2,370,623 )     (2,151,857 )
Decrease (increase) in restricted cash
    316,083       (461,112 )
(Decrease) increase in bank acceptance notes payable
    (316,083 )     461,112  
Proceeds from sale of common stock
    -       125,000  
Proceeds from exercise of warrants
    198,142       400,000  
                 
NET CASH PROVIDED BY FINANCING ACTIVITIES
    308,716       842,567  
                 
EFFECT OF EXCHANGE RATE ON CASH AND CASH EQUIVALENTS
    3,898       20,048  
                 
NET DECREASE IN CASH AND CASH EQUIVALENTS
    (197,202 )     (428,903 )
                 
CASH AND CASH EQUIVALENTS - beginning of period
    1,152,607       947,177  
                 
CASH AND CASH EQUIVALENTS - end of period
  $ 955,405     $ 518,274  
                 
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
         
Cash paid for:
               
Interest
  $ 244,685     $ 122,980  
Income taxes
  $ 1,200,944     $ 2,662,115  
                 
NON-CASH INVESTING AND FINANCING ACTIVITIES:
               
Security deposit and leased property in exchange for capital lease obligations
  $ -     $ 795,022  
Series A preferred converted to common shares
  $ 13,198     $ 3,536  
Common stock issued for future service
  $ 27,440     $ 63,576  
                 
   
 
 
 
 
8

 

Cleantech Solutions Third Quarter 2012 Results
 
 
Reconciliation of Net Income to Adjusted EBITDA
 
(Amounts expressed in US$)
 
                         
   
For the Three Months Ended September 30,
   
For the Nine Months Ended September 30,
 
   
2012
   
2011
   
2012
   
2011
 
Net income
  $ 2,355,102     $ 1,134,990     $ 3,729,267     $ 4,970,109  
Add: income tax
    824,628       450,410       1,490,173       1,949,625  
Add: interest expense
    84,289       60,452       244,685       122,980  
Add: warrant modification expense
    -       -       235,133       -  
Add: depreciation and amortization
    1,650,599       1,170,416       4,789,837       3,719,313  
EBITDA
  $ 4,914,618     $ 2,816,268     $ 10,489,095     $ 10,762,027  

 
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9
EX-99.2 3 f8k110912ex99ii_cleantech.htm PRESS RELEASE ISSUED ON NOVEMBER 9, 2012 f8k110912ex99ii_cleantech.htm
 
Exhibit 99.2
Company Contact:
Ms. Wanfen Xu, Chief Financial Officer
E-mail: xu_wf@cleantechsolutionsinternational.com
Cleantech Solutions International, Inc.
Web: www.cleantechsolutionsinternational.com

Investor Relations Contact:
Crocker Coulson
CCG Investor Relations
Tel: +1 646 213 1915
Email: crocker.coulson@ccgir.com
Web: www.ccgirasia.com

Cleantech Solutions International Announces Conference Call to Discuss Third Quarter 2012 Financial Results

Wuxi, Jiangsu Province, China – November 9, 2012 – Cleantech Solutions International, Inc. (“Cleantech Solutions” or “the Company”) (NASDAQ: CLNT), a manufacturer of metal components and assemblies, primarily used in the wind power, solar, dyeing and finishing equipment and other clean technology industries, today announced that it will conduct a conference call at 9:00 a.m. Eastern Time on Thursday, November 15, 2012 to discuss financial results for the third fiscal quarter ended September 30, 2012.
 
Mr. Ryan Hua, Vice President of Operations, and Mr. Adam Wasserman, Vice President of Financial Reporting, will host the conference call. The Company will release its financial results for the quarter ended September 30, 2012 prior to the call.

To participate in the live conference call, please dial the following number five to ten minutes prior to the scheduled conference call time: (866) 759-2078. International callers should dial (706) 643-0585. When prompted, please enter conference passcode: 65919396.
 
If you are unable to participate in the conference call at this time, a replay will be available for 14 days starting on November 15, 2012 at 12:00 noon ET. To access the replay, dial (855) 859-2056. International callers dial (404) 537-3406, and enter passcode: 65919396.
 
About Cleantech Solutions International

Cleantech Solutions is a manufacturer of metal components and assemblies, primarily used in clean technology industries. The Company supplies forging products, fabricated products and machining services to a range of clean technology customers, primarily in the wind power sector and supplies dyeing and finishing equipment to the textile industry. Cleantech Solutions is committed to achieving long-term growth through ongoing technological improvement, capacity expansion, and the development of a strong customer base. The Company’s website is
www.cleantechsolutionsinternational.com.  Any information on the Company’s website or any other website is not a part of this press release.

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