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| 8-K - FORM 8-K - Fushi Copperweld, Inc. | v239488_8k.htm |
Fushi Copperweld Corrects Administrative Errors in Financial Tables
BEIJING, November 7, 2011 /PRNewswire-Asia-FirstCall/ — Fushi Copperweld, Inc. (Nasdaq: FSIN), the leading global manufacturer and innovator of copper-clad bimetallic wire used in a variety of telecommunication, utility, transportation and other electrical applications, today issued new financial tables that correct certain administrative errors in the tables released with the Company’s earnings announcement for the third quarter of 2011 issued on November 3, 2011.
For the 2011 third quarter and nine-month periods, all financial figures are correct. However, there are errors which primarily relate to the labeling of certain line items in the Company’s balance sheet and income statement, which were included in the November 3, 2011 earnings release. For the 2010 prior-year periods, there are also corrections to certain financial figures in the financial statement tables, which are set forth below:
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Diluted earnings per share for the 2010 nine-month period was $0.93, not $0.94; and
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End of period cash as of September 30, 2010 was $117.9 million, not $73.8 million as listed on November 3, 2011
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Gain on cross-currency interest swap derivative for the 2010 nine-month period was $128,861, not a loss of $753,666 as listed on November 3, 2011. The difference reflects the exclusion of a change in derivative liability – conversion option of $882,527, which was included incorrectly.
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The financial statements as filed in the Company’s 8-K filing on November 4, 2011 are accurate and do not need correction.
The corrected tables are attached to this release.
About Fushi Copperweld
Fushi Copperweld Inc., through its wholly owned subsidiaries, Fushi International (Dalian) Bimetallic Cable Co. Ltd., and Copperweld Bimetallics LLC, is the leading manufacturer and innovator of copper-clad bimetallic engineered conductor products for electrical, telecommunications, transportation, utilities and industrial applications. With extensive design and production capabilities, and a long-standing dedication to customer service, Fushi Copperweld is the preferred choice for bimetallic products worldwide.
Safe Harbor Statement
This press release may include certain statements that are not descriptions of historical facts, but are forward-looking statements. Forward-looking statements can be identified by the use of forward-looking terminology such as “will” “believes”, “expects” or similar expressions. These forward-looking statements may also include statements about our proposed discussions related to our business or growth strategy, which is subject to change. Such information is based upon expectations of our management that were reasonable when made but may prove to be incorrect. All of such assumptions are inherently subject to uncertainties and contingencies beyond our control and upon assumptions with respect to future business decisions, which are subject to change. We do not undertake to update the forward-looking statements contained in this press release. For a description of the risks and uncertainties that may cause actual results to differ from the forward-looking statements contained in this press release, see our most recent Annual Report filed with the Securities and Exchange Commission (SEC) on Form 10-K, and our subsequent SEC filings. Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system (EDGAR) at www.sec.gov.
For more information, please contact:
Investors
Jolin Qiao/Investor Relations Officer - Fushi Copperweld Inc
Phone +1.931.433.0482 - E-mail: IR@fushicopperweld.com
Web: www.fushicopperweld.com
- Tables Follow -
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September 30,
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December 31,
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2011
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2010
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USD
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USD
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ASSETS
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Current assets:
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Cash
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163,624,276 | 123,000,338 | ||||||
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Accounts receivable, net of allowance for doubtful accounts
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73,913,870 | 65,765,722 | ||||||
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Inventories
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18,899,317 | 16,143,922 | ||||||
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Advances to suppliers
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8,586,217 | 15,022,976 | ||||||
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Prepaid expenses and other current assets
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1,042,982 | 743,206 | ||||||
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Total current assets
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266,066,662 | 220,676,164 | ||||||
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Property, plant and equipment, net
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119,064,234 | 124,177,512 | ||||||
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Intangible assets, net
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468,518 | 577,587 | ||||||
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Land use rights, net
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13,246,167 | 13,089,733 | ||||||
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Deposits for land use rights
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9,957,883 | 9,623,181 | ||||||
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Goodwill
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1,788,231 | 1,669,789 | ||||||
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Other non-current assets
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518,477 | 443,397 | ||||||
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Total assets
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411,110,172 | 370,257,363 | ||||||
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LIABILITIES AND SHAREHOLDERS’ EQUITY
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Current liabilities:
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Current portion of long-term bank loan
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650,000 | 650,000 | ||||||
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Accounts payable
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5,361,105 | 3,241,428 | ||||||
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Accrued expenses and other current liabilities
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14,128,367 | 15,542,111 | ||||||
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Total current liabilities
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20,139,472 | 19,433,539 | ||||||
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Long-term bank loan
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5,200,000 | 5,687,500 | ||||||
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Deferred income tax liabilities
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673,470 | 669,540 | ||||||
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Other non-current liabilities
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- | 65,057 | ||||||
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Total liabilities
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26,012,942 | 25,855,636 | ||||||
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Shareholders’ equity:
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Common stock, $0.006 par value, 100,000,000 shares authorized; 38,204,138 and 38,099,138 shares issued and outstanding as of September 30, 2011 and December 31, 2010, respectively
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229,226 | 228,596 | ||||||
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Additional paid-in capital
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169,028,404 | 167,596,792 | ||||||
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Retained earnings
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166,871,835 | 140,462,840 | ||||||
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Accumulated other comprehensive income
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48,967,765 | 36,113,499 | ||||||
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Total shareholders’ equity
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385,097,230 | 344,401,727 | ||||||
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Commitments and contingencies
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- | - | ||||||
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Total liabilities and shareholders’ equity
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411,110,172 | 370,257,363 | ||||||
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Three-Month Period Ended September 30,
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Nine-Month Period Ended September 30,
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2011
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2010
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2011
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2010
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USD
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USD
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USD
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USD
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Revenues
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74,279,340 | 66,507,433 | 219,158,766 | 195,062,641 | ||||||||||||
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Cost of revenues
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54,353,890 | 46,842,955 | 161,047,950 | 137,986,750 | ||||||||||||
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Gross profit
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19,925,450 | 19,664,478 | 58,110,816 | 57,075,891 | ||||||||||||
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Selling expenses
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1,127,259 | 1,457,154 | 3,519,065 | 4,074,280 | ||||||||||||
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General and administrative expenses
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5,061,337 | 3,117,062 | 15,035,656 | 10,923,878 | ||||||||||||
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Total operating expenses
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6,188,596 | 4,574,216 | 18,554,721 | 14,998,158 | ||||||||||||
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Income from operations
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13,736,854 | 15,090,262 | 39,556,095 | 42,077,733 | ||||||||||||
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Interest income
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222,852 | 200,295 | 663,776 | 590,236 | ||||||||||||
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Interest expense
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(116,378 | ) | (120,176 | ) | (340,282 | ) | (697,367 | ) | ||||||||
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Gain on cross-currency interest swap derivative
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- | - | - | 128,861 | ||||||||||||
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Loss on extinguishment of HY notes
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- | - | - | (2,395,778 | ) | |||||||||||
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Other expense, net
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(757,407 | ) | (176,001 | ) | (1,677,122 | ) | (194,445 | ) | ||||||||
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Total other expense, net
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(650,933 | ) | (95,882 | ) | (1,353,628 | ) | (2,568,493 | ) | ||||||||
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Income before income taxes
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13,085,921 | 14,994,380 | 38,202,467 | 39,509,240 | ||||||||||||
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Income tax expense
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4,137,255 | 2,072,009 | 11,793,472 | 5,197,187 | ||||||||||||
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Net income
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8,948,666 | 12,922,371 | 26,408,995 | 34,312,053 | ||||||||||||
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Other comprehensive income:
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Foreign currency translation adjustment, net of nil income taxes
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5,322,885 | 4,433,165 | 12,854,266 | 6,198,740 | ||||||||||||
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Comprehensive income
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14,271,551 | 17,355,536 | 39,263,261 | 40,510,793 | ||||||||||||
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Earnings per share:
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Basic
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0.23 | 0.34 | 0.69 | 0.94 | ||||||||||||
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Diluted
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0.23 | 0.34 | 0.69 | 0.93 | ||||||||||||
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Nine-Month Period Ended September 30,
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2011
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2010
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USD
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USD
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Cash flows from operating activities:
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Net cash provided by operating activities
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40,676,212 | 23,215,333 | ||||||
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Cash flows from investing activities:
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Payment for acquisitions of Jinchuan and Hongtai
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- | (6,375,000 | ) | |||||
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Cash acquired from acquisitions of Jinchuan and Hongtai
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- | 901,442 | ||||||
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Purchases of property and equipment
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(1,160,718 | ) | (1,869,029 | ) | ||||
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Net cash used in investing activities
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(1,160,718 | ) | (7,342,587 | ) | ||||
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Cash flows from financing activities:
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Proceeds from interest-free loans provided by Mr. Li Fu
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- | 15,000,000 | ||||||
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Payment for acquisition of Jinchuan
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(4,819,107 | ) | - | |||||
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Repayment of revolving line of credit
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- | (4,033,783 | ) | |||||
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Proceeds from long-term bank loans
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- | 6,500,000 | ||||||
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Repayment of long-term bank loans
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(487,500 | ) | - | |||||
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Repayment of notes payable
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- | (35,600,000 | ) | |||||
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Proceeds from issuance of common stock
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- | 59,800,050 | ||||||
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Proceeds from exercise of warrants and stock options
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628,495 | 1,207,824 | ||||||
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Transaction costs paid in connection with issuance of common stock
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- | (3,438,550 | ) | |||||
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Net cash (used in) provided by financing activities
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(4,678,112 | ) | 39,435,541 | |||||
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Effect of foreign currency exchange rate changes on cash
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5,786,556 | 1,960,862 | ||||||
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Net increase in cash
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40,623,938 | 57,269,149 | ||||||
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Cash at beginning of period
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123,000,338 | 60,597,849 | ||||||
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Cash at end of period
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163,624,276 | 117,866,998 | ||||||
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Supplemental disclosure of cash flow information:
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Interest paid
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340,282 | 1,425,833 | ||||||
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Income taxes paid
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7,665,233 | 6,161,271 | ||||||
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Non-cash investing and financing activities
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Accrual for the acquisition of Jinchuan
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- | 4,819,107 | ||||||
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Issuance of common stock in connection with the acquisition of Hongtai
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- | 2,600,000 | ||||||
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Payable for purchase of property and equipment
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554,538 | 314,294 | ||||||