Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Reminder - conference call is today at 4:30 p.m. EDT:
Fushi International, Inc. to Host Conference Call for 4th Quarter and 2006 Full Year Financial Results on March 29, 2007 at 4:30 p.m. EDT
The conference call will take place at 4:30 p.m. EDT on Thursday, March 29th. Interested participants should call 877-715-5318 when calling within the United States or 973-582-2852 when calling internationally. There will be a playback available until 11:59 p.m. eastern time April 5, 2007. To listen to the playback, please call 877-519-4471 when calling within the United States or 973-341-3080 when calling internationally. Please use pass code 8606701 for the replay.
This call is being webcast by ViaVid Broadcasting and can be accessed by clicking on this link http://viavid.net/dce.aspx?sid=00003D02 or at ViaVid's website at www.viavid.net. The webcast can be accessed through April 29, 2007.
Fushi International, Inc. to Host Conference Call for 4th Quarter and 2006 Full Year Financial Results on March 29, 2007 at 4:30 p.m.
EDTLast update: 3/21/2007 4:25:00
PMDALIAN, China, March 21, 2007 /Xinhua-PRNewswire via COMTEX/ -- Fushi International, Inc. (FSIN), an emerging, low-cost Chinese manufacturer of bimetallic wire used for multiple end user applications, announced today it will release its 2006 fourth quarter and full year results on Thursday, March 29th, 2007 after the market close. In conjunction, the company will host a conference call to discuss these results. The conference call will take place at 4:30 p.m. EDT on Thursday, March 29th.
Interested participants should call 877-715-5318 when calling within the United States or 973-582-2852 when calling internationally. There will be a playback available until 11:59 p.m. eastern time April 5, 2007. To listen to the playback, please call 877-519-4471 when calling within the United States or 973-341-3080 when calling internationally. Please use pass code 8606701 for the replay.
This call is being webcast by ViaVid Broadcasting and can be accessed by clicking on this link or at ViaVid's website at . The webcast can be accessed through April 29, 2007.
About Fushi International:
Here is a link that works for the FSIN investor presentation from todays 8-k Feb 20
http://secfilings.nasdaq.com/filingFrameset.asp?FileName=0001144204%2D07%2D008991%2Etxt&FilePath...
And with $60 million in capital that should enable them to continue on their growth projections.
oilman, The FSIN Presentation went into a lot of good detail.
Almost at the bottom of the report was the Financial Performance with FYs 03, 04, and 05 audited while 06 was unaudited.:
Fiscal Year-------------03------04-------05-------06
Revenue-----------------$11.9---$15.7---$33.7---$67.9
Net Income--------------$3.6----$3.8---$7.8-----$17.8
EPS---------------------$.23----$.25---$.50-----$.81
The way this company is growing, why is it trading at less than 9 times earnings? Are all the investors out there insane, or is there something out there I'm not aware of or seeing?
Form 8-K filed on 2/20/2007:
FSIN presentation from today.
http://secfilings.nasdaq.com/filingFrameset.asp?FileName=0001144204%2D07%2D008991%2Etxt&FilePath....
Dutton Associates Report (Not rated) 2-Feb-07 08:24 am Fushi International Inc. announced today that it has closed a US$60 million financing with Citadel Equity Fund Ltd. (Citadel). In this hybrid debt financing, Citadel purchased (1) US$40 million of Fushi's Guaranteed Senior Secured Floating Rate Notes due 2012 and (2) $20 million of Fushi's 3.0% Senior Secured Convertible Notes due 2012 at an initial conversion price of US$7.00 per share. Citadel was granted certain corporate governance rights over the Company and its subsidiaries, which include the right to designate up to certain number of Fushi's board of directors, right of first refusal with respect to any financing sought by the Company and right to approve the Company's annual business plan and budget.
Based on the prevailing LIBOR of 5.36%, the Company will pay a rate of LIBOR plus 7.0% or 12.36% on its US$40 million Guaranteed Senior Secured Floating Rate Notes. This, along with the 3% interest rate on the $20 million Secured Convertible Notes, represents an annual interest burden of $5.54 million, which is quite substantial compared to its $14.74 million of income from operation for the nine months ended September 30, 2006. Nevertheless, we believe the new financing will have a positive impact on driving the Company's revenue and earnings ahead. It is because the Company's sales and capacity expansion has been restrained by lack of sufficient working capital. The Company's bimetallic copper wire products are actually in strong demand from various industries. In 2006, Fushi produced approximately 10,000 to 11,000 tons of bimetallic copper wires and it can basically sell whatever amount it can produce. Fushi enjoyed a gross margin of between 36-44% for the first three quarters ended September 30, 2007. As long as Fushi can increase sales, the interest rate burden would not be a problem. Besides, with the additional $60 million on hand, Fushi may be able to acquire some smaller companies to expand its operation.
Recently, copper prices seem to have found support near the $5,500 per ton level, after falling from its peak near $8,800 in May last year. Latest figures indicated that China's copper imports increased sharply in December 2006, suggesting demand is picking up again and inventory adjustment is near its end. Selected US stockers have begun to turn bullish on copper prices. We believe copper prices could be on their way for a recovery and bode well for sentiment for Fushi. With the additional $60 million cash on hand, the Company will probably release an expansion plan to drive sales during a road show in the US scheduled in February. We are waiting for additional data to revise our volume sales and price assumptions for 2007 and 2008. We reiterate our Strong Speculative Buy rating on the stock.
Sentiment : Buy
Rate it:
Fushi International, Inc. to Present at the 19th Annual Roth Capital OC Conference on February 20 at 10 a.m.
Last Update: 8:01 AM ET Feb 1, 2007
DALIAN, China, Feb 01, 2007 (BUSINESS WIRE) -- Fushi International, Inc., an emerging, low-cost Chinese manufacturer of bimetallic wire used for multiple end user applications, today announced that management will present at the upcoming Roth Capital OC Conference, which is being held from February 19-22, 2007, at the Ritz Carlton in Dana Point, California.
Mr. Chris Wang, CFO of Fushi International, is scheduled to present on Tuesday, February 20th, at 10:00 a.m. in Track 7 (The Promenade Room), with a break-out session immediately following. Mr. Wang will provide investors with an overview of the Company, including its manufacturing facility and patented bimetallic products, a discussion on the industry dynamics and drivers, as well its future growth plans.
Participation is by invitation only through a Roth representative. Information on the Roth OC Conference can be found at: http://www.rothconference.com/
The Company's presentation will be webcast and to participate utilize the following link: http://www.wsw.com/webcast/roth9/fsin.ob/
About Fushi International:
Fushi International, through its wholly owned subsidiary Dalian DPI, manufactures bimetallic composite wire products, principally copper clad aluminum wires ("CCA") and copper clad aluminum magnesium ("CCA-M"). CCA, the company's core product, combines the conductivity and corrosion resistance of copper with the light weight and relatively low cost of aluminum. It is a cost-effective substitute for single copper wire in a wide variety of applications such as coaxial cable for cable television (CATV), signal transmission lines for telecommunication networks, distribution lines for electricity, wire components for electronic instruments and devices. For more information on Fushi, visit the website: http://www.fushiinternational.com/
Safe Harbor Statement:
This 8k wasn't pred - it was filed on jan 26, 2007
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): January 26, 2007 (January 24, 2007)
____________________________
FUSHI INTERNATIONAL, INC.
____________________________
(Exact name of Registrant as specified in charter)
Nevada
0-19276
13-3140715
(State of Incorporation)
(Commission File No.)
(IRS Employer Identification Number)
1 Shuang Qiang Road, Jinzhou, Dalian, People’s Republic of China
116100
(Address of principal executive offices)
(Zip Code)
Registrant's telephone number, including area code: (011)-86-411-8770-3333
_____________________________________________
(Former name or former address, if changed since last report)
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:
o Written communications pursuant to Rule 425 under the Securities Act(17CFR230.425)
o Soliciting material pursuant to Rule14a-12 under the Exchange Act (17CFR240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17CFR240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17CFR240.13e-4(c))
2
------------------------------------------------------------------------
Item 1.01. Entry into a Material Definitive Agreement
On January 24, 2007, Fushi International, Inc. (the "Company"), Fushi Holdings, Inc. (formerly, Diversified Product Inspections, Inc.), a wholly-owned subsidiary of the Company (“FHI”), Fushi International (Dalian) Bimetallic Cable Co., Ltd. (formerly, Dalian Diversified Product Inspections Bimetallic Cable Co., Ltd.), a wholly-owned subsidiary of FHI (“FID”), Dalian Fushi Bimetallic Manufacturing Co., Ltd. (“DF”) and Citadel Equity Fund Ltd. ("Citadel") entered into a Notes Purchase Agreement (the “Notes Purchase Agreement”) pursuant to indicative financing term sheets dated December 19, 2006 by and between the Company and Citadel. Pursuant to the terms of the Notes Purchase Agreement, the Company offered and sold and Citadel purchased (a) $40,000,000 of the Company’s Guaranteed Senior Secured Floating Rate Notes due 2012 (the “HY Notes”) and (b) $20,000,000 of the Company’s 3.0% Senior Secured Convertible Notes due 2012 (the “Convertible Notes” and collectively with the HY Notes, the "Notes").
The offer and sale of the Notes were made in an offshore transaction pursuant to Regulation S under the Securities Act of 1933, as amended. The transaction closed on January 25, 2007.
The HY Notes and the Convertible Notes were issued pursuant to indentures, each dated January 25, 2007 (the “HY Indenture” and “CB Indenture”, respectively, and together, the "Indentures") among the Company, the FHI, as guarantor, and The Bank of New York, as trustee for the Notes. Pursuant to the Indentures, FHI has agreed, and all of the Company’s other existing and future domestic subsidiaries are obligated, to guarantee, on a senior secured basis, to the holders of the Notes and the trustee the payment and performance of the Company’s obligations thereunder.
As security for the Notes, the Company and The Bank of New York, as collateral agent, entered into a share pledge agreement, dated January 25, 2007 (the "Share Pledge Agreement"), to guarantee the Notes with all of the shares of common stock of FHI held by the Company as collateral.
In connection with the transaction, the Company, FHI, FID, DF, Li Fu, our Chairman and Chief Executive Officer, Mathus Yue Yang, our President, Chris Wenbing Wang, our Chief Financial Officer and Citadel entered into an Investor Rights Agreement dated January 25, 2007. Pursuant to the Investor Rights Agreement, Citadel was granted, among other things and subject to certain conditions, the right to designate up to certain number of the Company’s board of directors, a right of first refusal with respect to any financing sought by the Company and the right to approve the Company’s annual business plan and budget. In addition, pursuant to the Investor Rights Agreement, Messrs. Fu, Yang and Wang agreed to a non-competition covenant relating to their employment and ability to engage in a business that is competitive with the Company's business for five years.
3
------------------------------------------------------------------------
Merrill Lynch Far East Limited acted as placement agent with respect to the sale of the Notes and received a placement agent fee equal to $2.4 million by the Company.
Each of the Notes Purchase Agreement, the Indentures, the Investor Rights Agreement and the Share Pledge Agreement (each, a "Transaction Agreement" and, collectively, the "Transaction Agreements") sets forth certain other rights and obligations of the parties. A copy of each Transaction Agreement is attached hereto as an exhibit and is hereby filed and incorporated herein by reference. The description of each Transaction Agreement in this current report is a summary only and is qualified in its entirety by the terms of each such Transaction Agreement.
Item 2.03
Creation of a Direct Financial Obligation or an Obligation
under an Off-Balance Sheet Arrangement of a Registrant.
On January 24, 2007, the Company entered into the Notes Purchase Agreement for the sale of the Notes to Citadel. The Company will pay interest at a rate of LIBOR plus 7.0% per annum (subject to decrease in certain circumstances) on the principal amount of the HY Notes, payable semi-annually in arrears on January 24 and July 24 of each year, starting on July 24, 2007, to holders of record at the close of business on the preceding January 10 and July 10, respectively. The Company will pay interest at a rate of 3.0% per annum (subject to increase in certain circumstances) on the principal amount of the Convertible Notes, payable semi-annually in arrears on January 24 and July 24 of each year, starting on July 24, 2007, to holders of record at the close of business on the preceding January 10 and July 10, respectively.
The Convertible Notes are convertible, by the holders thereof, at any time on or prior to maturity, into common shares of the Company initially at the conversion price of $7.00 per share (subject to adjustment in certain circumstances, including semi-annual reset of the conversion price, failure by the Company to meet certain net income targets, and upon occurrence of certain dilutive events, in each case subject to certain conditions).
If a Change of Control (as defined in the Indentures), or certain other designated events including de-listing occur, holders of the Notes may require the Company to repurchase all or a portion of their Notes for cash at the applicable redemption price.
Additional terms and conditions are contained in Item 1.01 and are incorporated herein by reference.
Item 3.02 Unregistered Sales of Equity Securities
The information pertaining to the Notes in Item 1.01 is incorporated herein by reference in its entirety. Neither the Notes or the common shares issuable upon conversion of the Convertible Notes have been registered under the Securities Act and neither may be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This current report on Form 8-K does not constitute an offer to sell, or a solicitation of an offer to buy, any security and shall not constitution an offer, solicitation or sale in any jurisdiction in which such offering would be unlawful.
4
------------------------------------------------------------------------
Item 9.01 Financial Statements and Exhibits.
The following exhibit is filed with this Current Report:
Exhibit No.
Description of Exhibit
4.1
Notes Purchase Agreement among the Company, FHI, FID, FD and Citadel dated January 24, 2007
4.2
HY Indenture among the Company, FHI and The Bank of New York, as trustee, dated January 25, 2007
4.3
CB Indenture among the Company, FHI and The Bank of New York, as trustee, dated January 25, 2007
4.4
Share Pledge Agreement between the Company and The Bank of New York, as collateral agent, dated January 25, 2007
4.5
Investor Rights Agreement among the Company, FHI, FID, DF, Li Fu, Mathus Yue Yang, Chris Wenbing Wang and Citadel dated January 25, 2007
5
------------------------------------------------------------------------
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.
latest 8K
http://www.sec.gov/Archives/edgar/data/710846/000114420407003899/v063737_8-k.htm
EX-99.1 2 ex99-1.htm
EXHIBIT 99.1
DALIAN, China, Jan. 29 /Xinhua-PRNewswire/ -- Fushi International, Inc. (the "Company") (OTC Bulletin Board: FSIN) today announced that it has closed a US$60 million financing with Citadel Equity Fund Ltd. ("Citadel"). In this transaction, Citadel purchased (i) US$40 million principal amount of guaranteed senior secured floating rate notes due 2012 and (ii) US$20 million principal amount of senior secured convertible notes due 2012, which are convertible into shares of the Company's common stock at an initial conversion price of US$7.00 per share. These notes are secured by the shares of the Company's wholly-owned subsidiary, Fushi Holdings Inc., a Delaware corporation. Citadel was also granted certain corporate governance rights over the Company and its subsidiaries. Merrill Lynch Far East Limited acted as the placement agent for this transaction.
Neither the Notes nor the Common Stock issuable upon conversion of the Convertible Notes have been registered under the U.S. Securities Act of 1933, as amended, nor is the Company obligated to so register them. The foregoing description of the sale of the Notes and the documents relating to such sale are qualified in their entirety by the description contained in the Company's Current Report on Form 8-K filed today and the transaction documents annexed thereto.
About Fushi International:
Fushi International is engaged, through their indirectly wholly-owned operating subsidiary, Dalian DPI, in the manufacturing and sale of bimetallic composite wire products, principally copper clad aluminum wires ("CCA") and copper clad aluminum magnesium ("CCA-M"). CCA, which is the company's core product,combines the conductivity and corrosion resistance of copper with the light weight and relatively low cost of aluminum. It is a cost effective substitute for single copper wire in a wide variety of applications such as coaxial cable for cable television (CATV), signal transmission lines for telecommunication networks, distribution lines for electricity, wire components for electronic instruments and devices. For more information on Fushi International, visit its website: http://www.fushiinternational.com .
About Citadel:
Citadel Equity Fund Ltd. is one of the entities for which Citadel Limited Partnership serves as portfolio manager and Citadel Investment Group, L.L.C. provides administrative and investment-related services. Citadel Investment Group, L.L.C. was founded in 1990. Affiliates of Citadel Investment Group, L.L.C., including Citadel Equity Fund Ltd., deploy investment capital across a highly diversified set of proprietary investment strategies in nearly all major asset classes in all the world's principal markets. Citadel Investment Group, L.L.C. and its affiliates maintain offices in Hong Kong, Chicago, New York, San Francisco, Tokyo and London.
------------------------------------------------------------------------
Safe Harbor Statement:
This press release contains forward-looking statements concerning Fushi International, Inc. and its business and products, which are intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts. These statements can be identified by the use of forward-looking terminology such as "believe," "expect," "may," "will," "should," "project," "plan," "seek," "intend," or "anticipate" or the negative thereof or comparable terminology, and include discussions of strategy, and statements about industry trends and the Company's future performance, operations and products. The actual results may differ materially depending on a number of risk factors including, but not limited to, the following: general economic and business conditions, development, shipment, market acceptance, additional competition from existing and new competitors, changes in technology, and various other factors beyond its control. All forward-looking statements are expressly qualified in their entirety by this Cautionary Statement and the risks factors detailed in the Company's reports filed with the Securities and Exchange Commission. Fushi International, Inc. undertakes no duty to revise or update any forward-looking statements to reflect events or circumstances after the date of this release.
For more information, please contact:
Investors Contact:
Matthew Hayden
HC International, Inc.
Tel: +1-858-704-5065
Email: matt@haydenir.com
Company Contact in China:
Chris Wang, CFO
Fushi International, Inc.
Tel: +86-139-1101-5690
Email: chris.wang@fushiinternational.com
------------------------------------------------------------------------
Should I even bother to ask a question here?? I can see that Redwood Capital assited Dalian Fushi going public and was curious as to the percent ownership that they have.
also I am looking for information about the Kuhn Brothers involvement in this.
Fushi International, Inc. Completes Several Strategic Initiatives Further Strengthening Its Position in the Chinese Bimetallic Market
Last Update: 11:00 AM ET Dec 13, 2006
DALIAN, China, Dec 13, 2006 /PRNewswire-FirstCall via COMTEX/ -- Fushi International, Inc., a low cost, emerging Chinese manufacturer of bimetallic wire used in a variety of communication, transmission and other electrical products, today is providing an update on several key accomplishments which occurred during November.
During the fourth quarter, management actively engaged in several events and alliances by working closely with top government officials and organizations to enhance the Company's position and visibility in the bimetallic market place.
Specifically, Fushi participated in a municipal government sponsored event which promoted the use of technologically innovative products, such as bimetallic wire, for various phases of industrial construction. As a result, the Company secured a full endorsement and qualification by the local government to supply bimetallic products to new developments in the Liaoning province.
Additionally, Fushi has worked closely with the 23rd Research Institute of the Ministry of Information, the Optical and Electronic Cable Association of China, and the WuHan High Voltage Power Research Institute to further define a national standard for copper clad aluminum products while further promoting the use of bimetallic wire in the high voltage power cable and wire industries.
It is estimated that annual demand for bimetallic wire utilized for these applications will equate to over 200,000 tons by 2008, while most of these applications were not serviced by bimetallic during 2006.
"We are actively forming relationships with key private and public entities to increase Fushi's participation and share in the growing Chinese bimetallic domestic market," commented Mr. Li Fu, the Chairman and Chief Executive Officer of Fushi International. "The Chinese government is motivated to increase the use of bimetallic wire across multiple end markets as a means to offset rising commodity prices and valuable commodities. Driven by continued strong domestic growth, China has been the largest copper consumer in the world for five consecutive years, topping 3.7 million tons in 2006. More than 70% of the consumption comes from wire and cable, particularly serving the power industry. The Optical and Electronic Cable Association of China estimates that 20% of the current cable and power transmission line markets served by all copper wire will be replaced by bimetallic in the next five years, supported by the establishment of appropriate industry standards. We believe this initiative alone creates a significant growth opportunity for Fushi. By promoting the use of bimetallic products the government will ensure that manufactures and builders alike have access to key materials which will help to sustain continued strong economic growth."
About Fushi International:
Fushi International is engaged, through their indirectly wholly-owned operating subsidiary Dalian DPI in the manufacturing and sale of bimetallic composite wire products, principally copper clad aluminum wires ("CCA") and copper clad aluminum magnesium ("CCA-M"). CCA, which is the company's core product, combines the conductivity and corrosion resistance of copper with the light weight and relatively low cost of aluminum. It is a cost effective substitute for single copper wire in a wide variety of applications such as coaxial cable for cable television (CATV), signal transmission lines for telecommunication networks, distribution lines for electricity, wire components for electronic instruments and devices. For more information on Fushi, visit their website: http://www.fushiinternational.com/
Monday should be a good day for FSIN's pps. Last Friday repording a low of $4.01 and then closing at it's high of the day of $5.65. FSIN put out a PR on Friday reporting higher revenue for the third quarter. It would be nice to see the pps back up to what it was in August and September of 2006.
Here is Friday's chart:
The CMF is looking good and the RSI is moving back up. Maybe the RSI will get back over 50 on Monday.
Fushi International, Inc. Reports Third Quarter 2006 Results
For the quarter ended September 30, 2006, the Company reported revenue of $13.0 million as compared to $8.5 million during the third quarter last year, representing an increase of 52.0 percent. Reported revenues are net of the VAT or (Value Added Tax) of approximately 17.0 percent. The increase in sales was primarily attributable to increases in average selling prices and sales volume growth, which improved 24.2 percent and 22.4 percent respectively versus the comparable quarter last year. Additionally, end user applications have increased significantly year-over-year from new markets such as electromagnet wire, winding wire, shielding wire, as well as distribution and coils. Total capacity utilization at the end of the third quarter was approximately seventy five percent. The Company sold a total of 2,227 tons of bimetallic products during the quarter, an increase of 22.4 percent from the third quarter of last year.
During the third quarter, the Company continued to diversify its revenue stream as its top five customers accounted for 30 percent of total sales with the largest representing approximately 7.0 percent as compared to the third quarter of last year where five customers accounted for 55.0 percent of sales and three accounted for more than 10.0 percent.
http://www.fushiinternational.com/InvestorRelations.aspx?p=PressReleases&Item=38
Scoobey
Good point, I'll take a listen to it tonight and post something up about it soon.
Regards
BG
BG, Did you listen to FSIN's teleconference yesterday? I had it on my calendar but got busy and forgot to call. Wondered if they had anything worthwhile to report. TIA scoob
EPS for the 9 months to date is 0.55
If Fushi has another tough quarter with eps of 0.05, the twelve month trailing eps is 0.60. The price is currently at $6.00, so a p/e of 10 for a chinese company seems fair value to me.
Some forward guidance would be good as would a reduction in the price of copper.
Need to read the 10q some more to see how easy it would be for FSIN to get their EPS back up to 0.15 a quarter.
Regards
BG
Fushi International, Inc. Reports Third Quarter 2006 Results
PR Newswire - November 15, 2006 08:26
DALIAN, China, Nov 15, 2006 /PRNewswire-FirstCall via COMTEX/ -- Fushi International, Inc., (OTC Bulletin Board: FSIN), a low-cost, emerging Chinese manufacturer of bimetallic wire used in a variety of communication, transmission and other electrical products, today announced financial results for the third quarter ended September 30, 2006.
Key Financial Indicators
(All numbers in thousands, except per-share amounts in USD)
Q3 2006 Q3 2005 Percent Change
Net Sales $12,956 $8,521 52.0%
Cost of goods sold $8,956 $4,626 93.6%
Gross Profit $4,000 $3,895 2.7%
Total Operating Expenses $928 $904 2.6%
Operating Income $3,073 $2,991 2.74%
GAAP Net Income $1,435 $2,364 (39.3%)
Pro forma Net Income $2,901 $2,364 22.7%
Fully Diluted EPS $0.06 $0.15 (60.0%)
Pro forma EPS $0.13 $0.15 (13.3%)
(1) Pro forma EPS excludes a $1.5 million non-cash penalty fee associated with a liquidated damages payable in common stock as a result of a delay in an effective registration statement for the resale of shares sold in the Company's December 2006 private placement.
Financial Results
For the quarter ended September 30, 2006, the Company reported revenue of $13.0 million as compared to $8.5 million during the third quarter last year, representing an increase of 52.0 percent. Reported revenues are net of the VAT or (Value Added Tax) of approximately 17.0 percent. The increase in sales was primarily attributable to increases in average selling prices and sales volume growth, which improved 24.2 percent and 22.4 percent respectively versus the comparable quarter last year. Additionally, end user applications have increased significantly year-over-year from new markets such as electromagnet wire, winding wire, shielding wire, as well as distribution and coils. Total capacity utilization at the end of the third quarter was approximately seventy five percent. The Company sold a total of 2,227 tons of bimetallic products during the quarter, an increase of 22.4 percent from the third quarter of last year.
During the third quarter, the Company continued to diversify its revenue stream as its top five customers accounted for 30 percent of total sales with the largest representing approximately 7.0 percent as compared to the third quarter of last year where five customers accounted for 55.0 percent of sales and three accounted for more than 10.0 percent.
The following table provides a recap of key products as a percentage of
overall revenue:
Q3 '06 % Q3 '05 %
CCA Coaxial $3,498,145 27% $7,242,855 85%
CCA Regular $3,239,023 25% $ 852,101 10%
CCA-M Regular $4,664,193 36% $ 426,050 5%
CCA Thin $906,926 7% N/A N/A
CCA-M Thin $647,805 5% N/A N/A
Total $12,956,092 100% $8,521,006 100%
The following table provides a summary of key metrics for each product
line:
ASP Average Unit Cost Gross Margin
Q3 06 Q3 05 Q3 06 Q3 05 Q3 06 Q3 05
Overall $5,817 $4,684 $4,021 $2,543 30.9% 45.7%
CCA Coaxial $5,609 $4,684 $3,943 $2,543 29.7% 45.7%
CCA Regular $5,593 $4,684 $3,740 $2,543 33.1% 45.7%
CCA-M Regular $5,817 $4,684 $3,955 $2,543 32.0% 45.7%
CCA Thin $6,787 N/A $4,106 N/A 39.5% N/A
CCA-M Thin $7,271 N/A $5,040 N/A 30.7% N/A
Cost of goods sold for the quarter ended September 30, 2006 increased by 93.6 percent to $9.0 million from $4.6 million in September 30, 2005, as a result of an increase in the purchasing costs of raw materials, specifically copper and aluminum, and incremental costs associated with higher production volumes. Based on the average price of copper during the third quarter 2006 the Company experienced an $8.4 million increase in total raw material costs, which accounted for 93.5 percent of the increase in cost of goods sold. Gross profit for the third quarter was $4.0 million, up 2.7 percent from gross profit of approximately $3.9 million for the third quarter of last year. Gross margins for the third quarter of 2006 were 30.9 percent compared to 45.7 percent in the year ago period and were principally impacted by lower real average selling prices in comparison to higher raw material costs, partially offset by improved product mix.
Operating expenses were $0.9 million in the third quarter which increased slightly from last year and as a percentage of net sales decreased to 7.2 percent as compared to 10.6 percent respectively. Operating income increased 2.7 percent to $3.1 million for the third quarter and as a result of the aforementioned higher raw material costs operating margins decreased to 23.7 percent from 35.1 percent in the comparable quarter last year.
"While we were pleased with our year-over-year increase in revenue and a further diversification of both our product and customer base, the third quarter was challenging on a number of fronts," commented Mr. Chris Wang, CFO of Fushi International. "It had become customary based on the escalating price of copper that customers frequently prepay in order to be assured of a timely delivery of necessary raw materials. As a result the Company locked in volume commitments on copper at higher prices and was impacted by volatility in the overall price of copper based products in the market during the third quarter which had a negative impact on our gross margins. While further volatility may occur we will look to employ several initiatives to return gross margins back to historical levels of more than thirty six percent.
During the third quarter the Company did not incur an income tax expense due to Fushi International becoming a wholly owned foreign enterprise and also being recognized in the special economic region as a high tech enterprise within China. Management expects to pay minimal income tax outside of the VAT during the next two years. GAAP net income for the third quarter decreased 39.3 percent to $1.4 million, or $0.06 per diluted share compared to net income of $2.4 million, or $0.15 per fully diluted share in the comparable quarter last year. Pro forma net income which excludes $1.5 million in non- cash penalties associated with the delayed registration of the January 2006 private placement was $2.9 million and increased 22.7 as compared to the same period last year with respective earnings per share of $0.13 per weighted average diluted share. The Company utilized 22.8 million weighted average fully diluted outstanding shares as compared to 15.5 million in the same period a year ago.
For the first nine months ending September 30, 2006 revenues increased 153.9 percent to $45.9 million, which was driven by higher selling prices, increased sales volume due to significantly expanded manufacturing capacity and the addition of new product offerings. Cost of goods sold increased 178.7 percent to $28.5 million primarily as a result of higher raw material prices. Gross profit increased 121.6 percent to $17.4 million resulting in gross margins of 37.9 percent as compared to 43.5 percent last year with the decrease versus last year due to factors mentioned previously. Operating expenses increased 60.1 percent to $2.7 million as expenses increased to support higher sales volumes in addition to costs associated with being public as compared to no such expense last year. Operating income for the period totaled $14.7 million, or a 138.2 percent increase as compared to $6.2 million in the comparable period last year yielding operating margins of 32.1 percent and 34.3 percent respectively. GAAP net income increased 153.1 percent to $12.4 million with respective weighted average fully diluted earnings per share of $0.55 compared to $5.0 million and $0.32 in the year ago period. Excluding the aforementioned non-cash penalty, proforma net income was $13.9 million with EPS of $0.61 per weighted average diluted share.
The Company reported a cash balance as of September 30, 2006 of $14.9 million which increased $8.7 million from December 31, 2005 driven by positive net income and improved working capital management particularly in the third quarter 2006. Accounts receivable were $7.7 million at the end of the third quarter representing a 23.8 percent increase versus the end of the year 2005. Accounts receivable did decrease 25.6 percent sequentially as the Company improved collections. Inventory increased 27.1 percent to $9.7 million from the end of 2005 and management believes the increase in inventory is adequate to support anticipated revenue growth. The current ratio at the end of the third quarter was 1.7 to 1 with the Company maintaining working capital of $15.7 million. Cash generated from operations for the nine month period ending September 30, 2006 was $8.4 million. Total debt at quarter end was $27.1 million which increased approximately $9.9 million from the end of 2005. Total debt for the quarter was inclusive of a $4.5 million, interest free loan made by Mr. Li Fu, the Chairman and largest shareholder, on September 20 to fund working capital following a work stoppage because funds were unavailable to buy enough copper to keep pace with rising orders.
"While results are below our internal expectations we did make progress in several of our stated initiatives which included expanding production and sales capacity, specifically for our new fine wire offering, and strengthening our balance sheet through improvements in working capital management. We are now operating a total of ten fine wire production lines, which when coupled with our 20 regular and coaxial lines, has afforded us the opportunity to further grow and diversify our product and customer base. The Company ended the third quarter in a significantly better financial position as evidenced by our key balance sheet metrics. We are currently pursuing a new financing facility which will enable the Company to further expand production capabilities during 2007 while obtaining the necessary working capital to optimize output and meet customer demand," stated Mr. Li Fu, the Chairman and Chief Executive Officer of Fushi International.
About Fushi International:
bitter, I thought I better check the PR links on FSIN also, and yes they don't work either. Oh well, here I go again. More work to do. scoob
Welcome Faust. I'm with you. My tie to FSIN is thru S3 and I wanted to hear more from Investors regarding their DD on Fushi International. Once we get more members on this board, I will relinquist my monitor status to a member that has a lot more knowledge about this company. For now, we have a gathering spot for FSIN news. Best regards. scoob
Hi, all. I'm here just for the scuttlebutt. No $$ in FSIN as of yet.
Thanks bitter. I will change it. Let me know if you see anything else that I should change after I get the i-box set up. Have a good evening. scoob
Nice work Scoobey, Although I wouldn't have put it under the BioTechs sector, more like basic materials wouldn't you say?
Regards
BG
Fushi International, Inc. to Host Third Quarter Earnings Conference Call on November 15th at 8:30 AM EST
PR Newswire - November 06, 2006 10:28
DALIAN, China, Nov 06, 2006 /Xinhua-PRNewswire via COMTEX/ -- Fushi International, Inc., (OTC Bulletin Board: FSIN), a leading domestic Chinese manufacturer of bimetallic products used in a variety of communication, transmission and other electrical products, today announced that the company will host a conference call to discuss its 2006 third quarter financial results on Wednesday, November 15, 2006.
The conference call will take place at 8:30 a.m. EST. Interested participants should call 877-715-5318 when calling within the United States or 973-582-2852 when calling internationally. There will be a playback available until November 22, 2006. To listen to the playback, please call 877-519-4471 when calling within the United States or 973-341-3080 when calling internationally. Please use pass code 8068641 for the replay.
This call is being webcast by ViaVid Broadcasting and be accessed at ViaVid's Web site at www.viavid.net. The webcast can be accessed until December 15, 2006. To access the web cast, you will need to have the Windows Media Player on your desktop, which you can download at: http://www.microsoft.com/windows/windowsmedia/en/download/default.asp .
About Fushi International
Followers
|
3
|
Posters
|
|
Posts (Today)
|
0
|
Posts (Total)
|
75
|
Created
|
11/06/06
|
Type
|
Free
|
Moderators |
Volume | |
Day Range: | |
Bid Price | |
Ask Price | |
Last Trade Time: |