National Press Release
Auto Parts Search |  |
| : | : | : |  |
BUYING USED AUTO PARTS: THE DO'S AND DON'TS
This complete guide is filled with valuable tips on how to buy used parts, where to look for quality salvage parts, how best to determine a fair price, ways to validate salvage yards,
and how not to get ripped off by fraudulent wrecking yards. A must have for anybody buying parts. Get your copy now!
National Press Release
 | Harbin Electric Announces Fourth Quarter and 2008 Annual ResultsPublished 2009-03-13 06:00By Harbin Electric, Inc. |
Annual Net Income up Fifty Percent on Eighty-Five Percent Rise in Sales
Fiscal Year 2008 Financial Highlights
-- Total revenues were $120.8 million, up 84.7% from $65.4 million in 2007
-- Net income was $25.4 million, up 50.2% from $16.9 million in 2007
-- Cash and cash equivalents were $48.4 million up from $45.5 million in
2007
-- Basic and diluted earnings per share were $1.25 and $1.19, respectively,
up from $0.99 and $0.91 in 2007
Fourth Quarter 2008 Financial Highlights
-- Total revenues were $34.7 million, up 80.1% from $19.3 million in the
fourth quarter of 2007
-- Net income was $6.0 million, up 44.6% from $4.2 million in the fourth
quarter of 2007
-- Basic and diluted earnings per share were $0.28 and $0.27, respectively,
up from $0.23 and $0.22 in the fourth quarter of 2007
Financial Summary for 2008 versus 2007
2008 2007 YoY%
Change
Revenue $120,820,302 $65,402,864 85.0%
Gross Profit $47,476,781 $32,434,977 46.4%
Gross Profit Margin 39.3% 49.6%
Operating Income $34,393,177 $23,711,292 45.1%
Operating Margin 28.5% 36.3%
Net Income $25,378,699 $16,902,684 50.2%
Net Profit Margin 21.0% 25.8%
Diluted EPS $1.19 $0.91 30.8%
Sales Distribution by Product Line and Percentage of International Sales
Percent of Total Revenues(%)
Product Line
2008 2007
Linear Motors and Integrated Systems 41% 56%
Specialty Micro-Motors 28% 28%
Rotary Motors 23% 0%
Others 8% 16%
Total 100% 100%
International Business 17% 12%
For the 2008 full year, revenues increased 85% to
Direct sales to international markets totaled
Total gross profit was
Gross profit margin declined to 39.3% in 2008 from 49.6% in 2007 as a result of changes in the product mix as sales of lower-margin products, including industrial rotary motors and auto specialty micro-motors, increased. The gross margin for industrial rotary motor was negatively impacted by higher raw material prices in 2008 compared to 2007. Excluding the acquired business, the average gross profit margin was 47.8% for 2008.
Operating profit of
Selling, general and administrative expenses (SG&A) for the year-end 2008
totaled
The Company generated a record
Our liquidity position remains strong with
Financial Summary for Fourth Quarter 2008 versus Fourth Quarter 2007
4Q08 4Q07 YoY%
Change
Revenue $34,743,375 $19,286,919 80.1%
Gross Profit $11,489,202 $9,294,988 23.6%
Gross Profit Margin 33.1% 48.2%
Operating Income $7,013,528 $5,984,361 17.2%
Operating Margin 20.2% 31.0%
Net Income $6,040,852 $4,178,243 44.6%
Net Profit Margin 17.4% 21.7%
Diluted EPS $0.27 $0.22 22.7%
Sales Distribution by Product Line and Percentage of International Sales
Percent of Total Revenues(%)
Product Line
4Q08 4Q07
Linear Motors and Integrated Systems 37% 55%
Specialty Micro-Motors 22% 32%
Rotary Motors 36% 0%
Others 5% 13%
Total 100% 100%
International Business 23% 14%
In the fourth quarter, total revenue increased 80% to
Looking ahead, Mr. Yang commented, ''We continue to experience softer
demand in some areas, particularly in the automobile specialty micro-motor
business. We have also begun to see some demand improvement in our rotary
motor products for agricultural applications, reflecting the impact of the
initial phase of the Chinese government's stimulus package. Overall in 2009,
we expect that our linear motors for subway train cars, the start-up of the
''Given the continued uncertainty associated with a possible further deterioration of global economic conditions, our priority is to maintain and strengthen our existing business and client base while we continue to pursue growth opportunities. Despite unprecedented economic uncertainty and the many challenges we are facing, we believe that we are well positioned to navigate these turbulent times and to achieve growth and build long-term value for our shareholders.''
Conference Call Details
The Company will host a conference call to discuss the fourth quarter and
fiscal year 2008 financial results at
To participate in the conference call, please dial any of the following numbers:
USA: 1-800-603-1779
International: +1-706-643-7429
North China: 10-800-713-0924
South China: 10-800-130-0748
The conference ID for the call is 88782128.
A replay of the call will be available beginning at
To access the replay, please dial any of the following numbers:
USA: 1-800-642-1687
International: +1-706-645-9291
Passcode is 88782128.
This conference call will be broadcast live over the Internet. To listen to the live webcast, please go to http://www.harbinelectric.com and click on ''Harbin Electric Q4 and Fiscal Year 2008 Financial Results Conference Call''. The replay of the webcast will be available for 30 days and will be archived on the Investor Kits page of the website after 30 days.
About Harbin Electric, Inc.:
Harbin Electric, headquartered in
Harbin Electric has built a strong research and development capability by
recruiting talent worldwide and through collaborations with top scientific
institutions. The Company owns numerous patents in
As
Safe Harbor Statement
The actual results of Harbin Electric, Inc. could differ materially from
those described in this press release. Detailed information regarding factors
that may cause actual results to differ materially from the results expressed
or implied by statements in this press release may be found in the Company's
periodic filings with the U.S. Securities and Exchange Commission, including
the factors described in the section entitled 'Risk Factors' in its annual
report on Form 10-K for the year ended
For investor and media inquiries, please contact:
In China
Harbin Electric, Inc.
Tel: +86-451-8611-6757
Email: MainlandIR@Tech-full.com
In the U.S.
Christy Shue
Harbin Electric, Inc.
Executive VP, Finance & Investor Relations
Tel: +1-631-312-8612
Email: cshue@HarbinElectric.com
Kathy Li
Christensen Investor Relations
Tel: +1-212-618-1987
Email: kli@christensenir.com
HARBIN ELECTRIC, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31, 2008 AND 2007
ASSETS
December 31, December 31,
2008 2007
CURRENT ASSETS:
Cash and cash equivalents $48,412,263 $45,533,893
Restricted cash 513,450 --
Notes receivable 1,451,977 --
Accounts receivable, net of
allowance for doubtful accounts
of $153,155 and $116,238 as of
December 31, 2008
and 2007, respectively 30,284,080 23,216,543
Inventories 21,960,084 2,570,929
Other receivables 248,552 326,639
Advances on inventory purchases 3,529,607 1,772,204
Total current assets 106,400,013 73,420,208
PLANT AND EQUIPMENT, net 94,931,999 23,858,035
OTHER ASSETS:
Debt issue costs, net of amortization 1,672,279 2,214,717
Advances on equipment purchases 10,416,187 24,328,386
Advances on intangible assets 1,892,430 1,384,710
Goodwill 12,273,778 --
Other intangible assets, net of
accumulated amortization 6,430,397 5,899,989
Other assets 471,220 397,263
Cross currency hedge receivable -- 145,945
Deposit in derivative hedge 1,000,000 1,000,000
Total other assets 34,156,291 35,371,010
Total assets $235,488,303 $132,649,253
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Notes payable - short term $1,026,900 $ --
Accounts payable 8,415,919 263,314
Short term loan - bank 4,180,950 --
Wages & benefit payable 1,565,360 6,947
Other payables & accrued Liabilities 1,224,432 1,456,271
Other payables - related party -- 45,491
Customer deposits 1,244,622 333,253
Taxes payable 2,096,521 839,299
Interest payable 800,954 1,122,000
Cross currency hedge payable 175,986 --
Total current liabilities 20,731,644 4,066,575
LONG TERM LIABILITIES:
Amounts due to original shareholder 733,500 --
Note payable, net of debt discount
of $12,389,135 and $16,878,269 as
of December 31, 2008 and
2007, respectively 33,610,866 33,121,731
Fair value of derivative instrument 5,762,958 10,844,372
Total liabilities 60,838,968 48,032,678
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY:
Common Stock, $0.00001 par value,
100,000,000 shares authorized,
22,102,078 and 18,143,156 shares
issued and outstanding as of
December 31, 2008 and
2007, respectively 220 181
Paid-in-capital 95,029,290 44,970,589
Retained earnings 52,100,479 32,281,312
Statutory reserves 14,573,994 9,014,462
Accumulated other comprehensive
income (loss) 12,945,352 (1,649,969)
Total shareholders' equity 174,649,335 84,616,575
Total liabilities and
shareholders' equity $235,488,303 $132,649,253
HARBIN ELECTRIC, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME
FOR THE YEARS ENDED DECEMBER 31, 2008 AND 2007
For the Years ended December 31,
2008 2007
REVENUES $120,820,302 $65,402,864
COST OF SALES 73,343,521 32,967,887
GROSS PROFIT 47,476,781 32,434,977
RESEARCH AND DEVELOPMENT EXPENSE 1,170,169 1,064,074
SELLING, GENERAL AND ADMINISTRATIVE
EXPENSES 11,913,435 7,659,611
INCOME FROM OPERATIONS 34,393,177 23,711,292
OTHER EXPENSE (INCOME), NET
Other (income) expenses, net (1,575,224) 188,654
Interest expense, net 6,065,814 6,619,954
Change in fair value of warrant -- --
Total other expense, net 4,490,590 6,808,608
INCOME BEFORE PROVISION FOR INCOME TAXES 29,902,587 16,902,684
PROVISION FOR INCOME TAXES 4,523,888 --
NET INCOME 25,378,699 16,902,684
OTHER COMPREHENSIVE INCOME (LOSS)
Foreign currency translation adjustment 9,513,907 7,162,512
Change in fair value of derivative
instrument 5,081,414 (10,844,372)
COMPREHENSIVE INCOME $39,974,020 $13,220,824
Earnings per share
Basic $1.25 $0.99
Diluted $1.19 $0.91
Weighted average number of shares
Basic 20,235,877 17,082,300
Diluted 21,323,660 18,634,739
HARBIN ELECTRIC, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2008 AND 2007
2008 2007
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $25,378,699 $16,902,684
Adjustments to reconcile net income
to cash provided by (used in)
operating activities:
Depreciation 1,608,724 567,069
Amortization of intangible assets 1,032,674 510,023
Amortization of debt issuance costs 542,438 542,438
Amortization of debt discount 4,489,135 4,532,132
Loss (gain) on derivative instrument 541,018 (700,496)
Stock based compensation 1,782,454 1,584,234
Provision for (recovery of)
accounts receivable (1,899) 65,876
Change in operating assets and liabilities
Notes receivable (1,076,669) --
Accounts receivable (1,174,801) (12,197,768)
Inventories 9,605,737 (1,615,757)
Other receivables 1,313,578 (154,244)
Other receivables - related parties -- 46,216
Advances on inventory purchases (730,043) (844,177)
Other assets 8,920 (24,781)
Accounts payable 591,620 (1,302,212)
Other payables & accrued liabilities (1,258,756) 922,084
Other payables - related party (47,830) 43,689
Customer deposits (1,277,737) (7,848)
Taxes payable 1,298,829 234,702
Interest payable (321,046) --
Net cash provided by
operating activities 42,305,045 9,103,864
CASH FLOWS FROM INVESTING ACTIVITIES:
Cash acquired through acquisition 5,061,757 --
Payment for advances on intangible
assets (403,620) --
Payment for advances on equipment
purchases -- (23,315,185)
Purchase of intangible assets -- (1,117,024)
Additions to plant and equipment (16,035,159) (12,138,676)
Additions to CIP (16,386,519) --
Payment to original shareholders
for acquisition (53,335,500) --
Net cash used in investing
activities (81,099,041) (36,570,885)
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in restricted cash (504,525) --
Net proceeds from stock issuance
3.5 million shares 46,290,743 --
Proceeds received from conversion
of warrants and options 1,985,543 1,713,193
Deposit to secure investment in
cross currency hedge (1,000,000)
Proceeds from cross currency hedge 145,945 554,551
Payment of cross currency hedge (365,032) --
(Payment on) proceeds from notes payable (4,000,000) --
Decrease of notes payable-short term (3,315,450) --
Payment of short term loan (1,034,997) --
Net cash provided by
financing activities 39,202,227 1,267,744
EFFECTS OF EXCHANGE RATE CHANGE ON CASH 2,470,139 4,419,251
INCREASE (DECREASE) IN CASH 2,878,370 (21,780,026)
Cash and cash equivalents, beginning
of period 45,533,893 67,313,919
Cash and cash equivalents, end of period $48,412,263 $45,533,893
HARBIN ELECTRIC, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME
FOR THE THREE MONTHS ENDED DECEMBER 31, 2008 AND 2007
(Unaudited)
For the Three Months
Ended December 31,
2008 2007
REVENUES $34,743,375 $19,286,919
COST OF SALES 23,254,173 9,991,931
GROSS PROFIT 11,489,202 9,294,988
RESEARCH AND DEVELOPMENT EXPENSE 755,438 312,191
SELLING, GENERAL AND ADMINISTRATIVE
EXPENSES 3,720,236 2,998,436
INCOME FROM OPERATIONS 7,013,528 5,984,361
OTHER EXPENSE (INCOME), NET
Other (income) expenses, net (620,042) 974,834
Interest expense, net 529,760 906,582
Total other expense, net (90,282) 1,881,416
INCOME BEFORE PROVISION FOR INCOME TAXES 7,103,810 4,102,945
PROVISION FOR INCOME TAXES 1,062,958 (75,298)
NET INCOME 6,040,852 4,178,243
OTHER COMPREHENSIVE INCOME (LOSS)
Foreign currency translation
adjustment 758,126 3,206,476
Change in fair value of derivative
instrument 971,885 (3,796,966)
COMPREHENSIVE INCOME $7,770,863 $3,587,753
BASIC EARNINGS PER SHARE $0.28 $0.23
DILUTED EARNINGS PER SHARE $0.27 $0.22
SOURCE Harbin Electric, Inc.
