Boyuan reports record results for fiscal 2009
- Generates revenue of U.S. $101.7 million and exceeds after-tax income target -
Financial Highlights ------------------------------------------------------------------------ Q4 2009 Q4 2008 Change ------------------------------------------------------------------------ Revenue $41.1M $17.5M +134.9% ------------------------------------------------------------------------ Gross profit $7.4M $3.7M +100.0% ------------------------------------------------------------------------ Net income $2.3M $1.8M +27.8% ------------------------------------------------------------------------ Adjusted net income(1) $4.0M $1.8M +122.2% ------------------------------------------------------------------------ Adjusted earnings per share - diluted(2) $0.16 $0.07 +128.6% ------------------------------------------------------------------------ ------------------------------------------------------------------------ YE 2009 YE 2008 Change ------------------------------------------------------------------------ Revenue $101.7M $56.2M +81.0% ------------------------------------------------------------------------ Gross profit $16.0M $9.9M +61.6% ------------------------------------------------------------------------ Net income $7.9M $6.2M +27.4% ------------------------------------------------------------------------ Adjusted net income(1) $9.6M $6.2M +54.8% ------------------------------------------------------------------------ Adjusted earnings per share - diluted(2) $0.39 $0.25 +56.0% ------------------------------------------------------------------------ Cash, equivalents, and restricted cash $5.5M $6.9M -20.2% ------------------------------------------------------------------------
"We are very pleased with our fiscal and operational performance in 2009," said
FY 2009 Highlights - Completed the acquisition of all issued and outstanding common shares of SND Energy Ltd. through a reverse-takeover (RTO) transaction. - Concurrent with the RTO transaction, completed a private placement financing, generating gross proceeds of CDN $4.1 million. - The Company's common shares began trading on the TSX Venture Exchange under the symbol BOY and its debentures under the symbol BOY.DB. - Generated $9.6 million of adjusted net income after taxes, exceeding the target forecast of $8.5 million found in the Company's make-good provision. - Appointed Paul Law, CA, as Chief Financial Officer effective April 3, 2009. Highlights Subsequent to Year End - Signed four new construction project agreements with an aggregate value of $48.1 million. - Completed a private placement generating gross proceeds of CDN $6.47 million. - Appointed Dr. Fang Lixin, professor at the Guanghua Law School of Zhejiang University, to the Company's Board of Directors.
Review of Financial Results
Revenue for the fourth quarter ended
Cost of sales for the fourth quarter of FY2009 was
Gross profit for the fourth quarter of FY2009 was
Income from operations for the fourth quarter of FY2009 was
Income tax expense for the fourth quarter of FY2009 was
Net income for the fourth quarter of FY2009 was
Adjusted net income for the fourth quarter of FY2009 was
Adjusted net income is not a recognized measure under GAAP and excludes a non-cash, stock-based compensation charge of
Cash, cash equivalents and restricted cast at
Outlook
"China's economic stimulus plan as well as ongoing urbanization and middle-class growth trends provide a very favourable backdrop for our prospects over the long-term," Mr Shou said. "On a near-term basis, we are expecting our after-tax net income target of
Boyuan will host a conference call to discuss its financial results on
Boyuan's consolidated statements for the year and quarter ended
About Boyuan Construction Group, Inc.
Based in Jiaxing City,
Caution Regarding Forward-Looking Information:
Certain information contained in this press release constitutes forward-looking information, which is information relating to future events or the Company's future performance and which is inherently uncertain. All information other than statements of historical fact may be forward-looking information. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "budget", "plan", "continue", "estimate", "expect", "forecast", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar words or phrases (including negative variations) suggesting future outcomes or statements regarding an outlook. Forward-looking information contained in this press release includes, but is not limited to, the Company's expectations regarding its net income in 2010, the project use of proceeds of private placement, and the Company's ability to sustain revenue generating momentum. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. The Company believes the expectations reflected in the forward-looking information are reasonable but no assurance can be given that these expectations will prove to be correct and readers are cautioned not to place undue reliance on forward-looking information contained in this press release. Some of the risks and other factors which could cause results to differ materially from those expressed in the forward-looking information contained in this press release include, but are not limited to: risk of macro-economy cycle, risk from competition, risk from insufficient marketing to secure new projects, risk in obtaining additional financing, risk involving permits and licences, reliance on key management member, risk from supply of raw materials, risk of financial leverage, risk of bad debts in accounts receivables, risk involved in real estate development, foreign exchange fluctuations, political and economic conditions in
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Boyuan Construction Group, Inc. (formerly "SND Energy Ltd.") Consolidated Balance Sheets As at June 30, 2009 and 2008 (Expressed in US Dollars) 2009 2008 $ $ Current Assets Cash and cash equivalents 2,365,738 6,484,545 Restricted cash 3,101,189 397,352 Accounts receivable 4,447,059 3,722,980 Unbilled revenue 35,528,915 13,468,198 Other receivables 2,216,873 873,012 Inventory 658,150 100,771 Advances to suppliers and prepaid expenses 2,971,020 4,772,201 ------------------------------------------------------------------------- 51,288,944 29,819,059 Deferred transaction costs 55,222 - Due from related parties 113,010 476,996 Property and equipment 5,946,748 5,504,431 Land use rights 112,243 114,121 ------------------------------------------------------------------------- 57,516,167 35,914,607 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Current Liabilities Bank loans 12,926,776 3,790,982 Accounts payable and accrued liabilities 12,842,823 10,442,761 Income taxes payable 2,093,874 3,824,977 Deferred revenue 1,454,145 560,778 Automobile loans 118,292 6,057 Due to related parties 22,839 1,372,119 ------------------------------------------------------------------------- 29,458,749 19,997,674 Convertible debentures 1,880,200 - ------------------------------------------------------------------------- 31,338,949 19,997,674 ------------------------------------------------------------------------- Shareholders' Equity Share capital 6,139,860 5,540,636 Contributed surplus 1,890,711 - Reserve 1,928,732 623,834 Equity component of convertible debentures 137,295 - ------------------------------------------------------------------------- 10,096,598 6,164,470 ------------------------------------------------------------------------- Retained earnings 14,326,995 8,063,055 Accumulated other comprehensive income 1,753,625 1,689,408 ------------------------------------------------------------------------- 16,080,620 9,752,463 ------------------------------------------------------------------------- 26,177,218 15,916,933 ------------------------------------------------------------------------- 57,516,167 35,914,607 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Boyuan Construction Group, Inc. (formerly "SND Energy Ltd.") Consolidated Statements of Income and Comprehensive Income (Expressed in US Dollars) For the Years Ended June 30, 2009 and 2008 2009 2008 $ $ Construction revenue 101,664,080 56,175,070 Cost of construction 85,682,653 46,319,651 ------------------------------------------------------------------------- Gross profit 15,981,427 9,855,419 ------------------------------------------------------------------------- Expenses Amortization of property and equipment 733,559 490,131 General and administrative expenses 1,752,521 904,507 ------------------------------------------------------------------------- 2,486,080 1,394,638 ------------------------------------------------------------------------- Income from operations 13,495,347 8,460,781 ------------------------------------------------------------------------- Other Income (expense) Interest and other income 20,573 38,816 Foreign exchange loss (138,135) - Interest expense (430,139) (259,304) Make good provision (1,718,357) - ------------------------------------------------------------------------- (2,266,058) (220,488) ------------------------------------------------------------------------- Net income before income taxes 11,229,289 8,240,293 Income taxes 3,336,779 2,060,074 ------------------------------------------------------------------------- Net income for the year 7,892,510 6,180,219 Other Comprehensive Income Unrealized gain on foreign exchange translation 64,217 1,267,049 ------------------------------------------------------------------------- Comprehensive income for the year 7,956,727 7,447,268 ------------------------------------------------------------------------- ------------------------------------------------------------------------- -------------------- (1) "Adjusted net income" is not a recognized measure under Canadian GAAP. It excludes a stock-based compensation charge of $1.7 million related to the fair value transfer of shares under the "make-good provision" of a financing agreement signed in March, 2009. The Company believes that adjusted net income is more representative of its performance as the make good charge is a non-cash accounting charge and unrelated to its business activities (2) "Adjusted earnings per share" is not a recognized measure under Canadian GAAP. It is calculated by dividing the Company's adjusted net income by the number of outstanding shares (diluted). By comparison, earnings per share (basic) were $0.63 and $2.40 for the three-month and 12-month period ended June 30, 2009 respectively. Earnings per share (diluted) were $0.09 and $0.32 for Q4 and FY2009 respectively.
For further information: Contacts: Boyuan Construction Group, Inc., Mr. Paul Law, CFO, +(852) 9329 5088, [email protected]; The Equicom Group Inc., Joe Racanelli, (416) 815-0700 ext. 243, [email protected]
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