Boyuan reports FY 2010 first quarter financial results
- Grows revenue, improves margins and expands into new markets -
Financial Highlights ------------------------------------------------------------------------- Q1 2010 Q1 2009 Change ------------------------------------------------------------------------- Revenue $35.0M $21.3M +64.5% ------------------------------------------------------------------------- Gross profit $5.7M $3.1M +83.8% ------------------------------------------------------------------------- Gross profit margins 16.2% 14.5% +2% ------------------------------------------------------------------------- After-tax net income (loss) ($0.2M) $2.0M N/A ------------------------------------------------------------------------- Adjusted net income(1) $3.0M $2.0M +48.7% ------------------------------------------------------------------------- Adjusted earnings per share - diluted(2) $0.12 $0.08 +50.0% ------------------------------------------------------------------------- (1) Adjusted net income is not a recognized measure under Canadian GAAP. It excludes a stock-based compensation charge of $3.2 million related to the fair value transfer of shares under the "make-good provision" of a financing agreement signed in July, 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 not related 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). Under Canadian GAAP, the Company recorded a loss per share, basic and diluted, of $0.04 for the three-month ended September 30, 2009.
"Consistent with our expectations, we grew our revenue, improved our margins and generated adjusted after-tax net income of more than
Operating Highlights
- 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. - Expanded operations into Shandong and Jiangxi, two of China's fastest growing regions. - 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 first quarter ended
Cost of construction for the first quarter of FY2010 was
Gross profit for the first quarter of FY2010 was
Operating expenses for the first quarter of FY2010 were
Income tax expense for the first quarter of FY2010 was
Net loss for the first quarter of FY2010 was
As specified by the Company's make-good provision of the July financing agreement, Boyuan forecasted an after-tax net income of
Excluding the make-good provision charge, adjusted net income for the first quarter of FY2010 was
Cash, cash equivalents and restricted cast at
Outlook
"While we expect our momentum to be impacted by seasonal factors, such as
Boyuan's consolidated statements for 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 the impact on its momentum by seasonal factors in the short term, the Company's expectations on its prospects over long term, the company's expectation of growing demand for our high margin technical and engineering services (and our projection of our FY2010 adjusted after-tax net income.) 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 (Expressed in US Dollars) (Unaudited) (Audited) September 30, June 30, 2009 2009 $ $ Current Assets Cash and cash equivalents 1,896,645 2,365,738 Restricted cash 5,127,810 3,101,189 Accounts receivable 4,182,715 4,447,059 Unbilled revenue 39,556,598 35,528,915 Other receivables 8,578,455 2,216,873 Inventory 28,035 658,150 Advances to suppliers and prepaid expenses 5,157,411 2,971,020 ------------------------------------------------------------------------- 64,527,669 51,288,944 Deferred transaction costs - 55,222 Due from related parties - 113,010 Property and equipment 7,152,943 5,946,748 Land use rights 116,557 112,243 ------------------------------------------------------------------------- 71,797,169 57,516,167 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Current Liabilities Bank loans 14,250,504 12,926,776 Accounts payable and accrued liabilities 14,504,159 12,842,823 Income taxes payable 2,566,514 1,318,874 Deferred revenue 2,932,946 1,454,145 Automobile loans 128,844 118,292 Due to related parties - 22,839 Future income tax 202,000 202,000 ------------------------------------------------------------------------- 34,584,967 28,885,749 Future income tax 585,970 573,000 Convertible debentures 5,518,910 1,880,200 ------------------------------------------------------------------------- 40,989,847 31,338,949 ------------------------------------------------------------------------- Shareholders' Equity Share capital 7,279,993 6,139,860 Contributed surplus 5,406,451 1,890,711 Reserve 1,928,732 1,928,732 Equity component of convertible debentures 372,783 137,295 ------------------------------------------------------------------------- 14,987,959 10,096,598 ------------------------------------------------------------------------- Retained earnings 14,121,088 14,326,995 Accumulated other comprehensive income 1,698,275 1,753,625 ------------------------------------------------------------------------- 15,819,363 16,080,620 ------------------------------------------------------------------------- 30,807,322 26,177,218 ------------------------------------------------------------------------- 71,797,169 57,516,167 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Boyuan Construction Group, Inc. (formerly "SND Energy Ltd.") Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) (Expressed in US Dollars) (Unaudited) Three Months Ended September 30, September 30, 2009 2008 $ $ Construction revenue 35,003,807 21,271,159 Cost of construction 29,323,883 18,183,848 ------------------------------------------------------------------------- Gross profit 5,679,924 3,087,311 ------------------------------------------------------------------------- Expenses Amortization of property and equipment 142,041 58,494 General and administrative expenses 814,142 212,886 ------------------------------------------------------------------------- 956,183 271,380 ------------------------------------------------------------------------- Income from operations 4,723,741 2,815,931 ------------------------------------------------------------------------- Other Income (expense) Interest and other income 138,935 3,021 Interest expense (564,781) (70,527) Make good provision (3,243,192) - ------------------------------------------------------------------------- (3,669,038) (67,506) ------------------------------------------------------------------------- Net income before income taxes 1,054,703 2,748,425 Income taxes 1,260,610 705,322 ------------------------------------------------------------------------- Net income for the period (205,907) 2,043,103 Other Comprehensive Income (loss) Unrealized gain (loss) on foreign exchange translation (55,350) 41,688 ------------------------------------------------------------------------- Comprehensive income (loss) for the period (261,257) 2,084,791 ------------------------------------------------------------------------- -------------------------------------------------------------------------
For further information: For further information: 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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