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FSIN moving nicely.
Fushi International, Inc. Reports 2006 Fourth Quarter and Full Year Financial Results
Thursday March 29, 4:32 pm ET
Management Provides 2007 Guidance of $22.8 million in Net Income and EPS of $1.00
DALIAN, China, March 29 /Xinhua-PRNewswire/ -- Fushi International, Inc., (OTC Bulletin Board: FSIN - News), 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 fourth quarter and year ending December 31, 2006.
2006 Key Financial Indicators
(All numbers in thousands, except per-share amounts in USD)
2006 2005 Percent
Change
Net Sales $67,596 $33,709 100.5%
Cost of goods sold $42,782 $21,400 99.9%
Gross Profit $24,814 $12,309 101.6%
Total Operating Expenses $4,428 $2,347 88.7%
Operating Income $20,386 $9,963 104.6%
GAAP Net Income $17,810 $7,799 128.4%
Pro forma Net Income* $19,289 $7,799 147.3%
Fully Diluted EPS $0.84 $0.50 67.8%
Pro forma EPS* $0.90 $0.50 81.7%
(*) Pro forma Net Income and Earnings Per Share exclude a $1.5 million non-cash penalty fee associated with liquidated damages paid in common stock as a result of a delay in effective date of our registration statement for the resale of shares sold in the Company's December 2005 private placement.
Fourth Quarter Financial Results (unaudited)
For the quarter ended December 31, 2006, the Company reported revenue of $21.7 million, an increase of 38.9 percent from the $15.6 million reported during the same period in 2005. Reported revenues are net of the VAT (or Value Added Tax) of approximately 17.0 percent payable in China. The increase was primarily attributable to increases in average selling prices and sales volume growth compared to last year. Reported capacity utilization at the end of the fourth quarter was approximately 97.5 percent, but due to combining three- shift work days, actual capacity utilization was higher. The Company sold a total of 3,549 tons of bimetallic products during the quarter and continued to further diversify its customer concentration.
Cost of goods sold for the quarter ended December 31, 2006 increased by 27.9 percent to $14.3 million, resulting from an increase in the purchasing costs of raw materials, specifically copper and aluminum, and incremental costs associated with higher production volumes. Raw materials accounted for 89 percent of the total cost of goods sold. Gross profit for the fourth quarter was $7.4 million, up 66.3 percent from the fourth quarter of 2005. Gross margins for the fourth quarter of 2006 were 34.1 percent compared to 28.5 percent in the prior year, resulting from more effective capacity utilization and a sales mix including higher margin fine wire, which was not in production during 2005.
Operating expenses were $1.8 million in the fourth quarter of 2006, representing a slight increase from the same quarter last year, as a result of the aforementioned higher raw material costs. Operating income increased 49.6 percent to $5.6 million for the fourth quarter, and also increased as a percentage of net sales. . Operating margins increased to 26.0 percent from 24.1 percent in the comparable quarter last year.
"The fourth quarter was representative of our accomplishments for the full year and exhibited strong year over year growth in both revenues and earnings. We maintained strong capacity utilization, continued to diversify both our product and customer mix and began preparation for a significant expansion in our manufacturing facility planned for 2007," stated Mr. Chris Wang, CFO of Fushi International. "While we experienced extreme volatility in copper prices, our key cost component, gross margins returned to historical norms during the fourth quarter, which further benefited net income. We are well- positioned to capitalize on the strong secular growth drivers in place, including further adoption of bimetallic wire for growing infrastructure applications, as well as new end markets."
During the fourth quarter the Company did not pay income taxes due to its operating subsidiary, Fushi International (Dalian) Bimetallic Cable Co., Ltd., becoming a wholly owned foreign enterprise. In addition, the Dalian Fushi subsidiary enjoys an exemption by being recognized in the special economic region of Dalian as a high tech enterprise within China. Net income for the fourth quarter increased 86.7 percent to $5.4 million, or $0.25 per fully diluted share compared to net income of $2.9 million, or $0.18 per fully diluted share in the comparable quarter last year. During the fourth quarter of 2006, the Company had outstanding a weighted average of 21.3 million fully diluted shares, as compared to 15.5 million in the same period one year ago.
2006 Full Year Results (audited)
For the year ended December 31, 2006, revenues increased 100.5 percent to $67.6 million from $33.7 million in 2005, driven by higher selling prices, increased sales volume, increased capacity utilization and an improvement in our product mix to higher-margin wire. In addition, the Company continued to further diversify its customer base, a stated management goal, where the top six customers represented 34% of revenues compared to five customers representing 41% for 2005. Revenues in 2006 were generated from a total of 93 customers located in more than 8 provinces throughout China. Additionally, end-user applications have increased significantly year-over-year from new markets such as electromagnet wire, winding wire, shielding wire, as well as distribution and coils.
The table below summarizes key metrics impacting annual revenues.
CY2006 CY2005 CY2004
Avg. Selling Price ($/ton) 5,777 4,156 3,523
Sales Volume (tons) 11,701 8,111 4,446
- Co-Axial Cable 6,798 6,100
- Electromagnetic Wire 1,917 23
- Shielding Wire 2,986 1,988
Avg. # of Production lines 20 14 8
Capacity (tons/2-shifts) 12000 8400 4800
Utilization 97.5 % 96.6 % 92.6 %
Cost of goods sold increased 100 percent to $42.8 million primarily as a result of higher raw material prices and increased production volume. 89 percent of this expense was directly related to copper and aluminum raw material costs. Gross profit increased 101.6 percent to $24.8 million resulting in gross margins of 36.7 percent as compared to 36.5 percent last year, despite higher raw material costs on a year over year basis.
Operating expenses increased 88.7 percent to $4.4 million. Operating income for the period totaled $20.4 million, a 104.6 percent increase from 2005, while operating margins were 30.2 percent compared to 29.6 percent in the year ago period. Interest expense increased slightly to $1.1 million. In addition, the Company incurred a $1.5 million non-cash charge associated with a registration rights penalty payable in common stock taken during the third quarter. The company made a tax provision of $400,000 for the 2006 year.
Net income increased 128.4 percent to $17.8 million as net margins increased by 320 basis points to 26.3 percent with respective weighted average fully diluted earnings per share of $0.84, based on 21.3 million shares compared to $7.8 million in net income and $0.50 in the year ago period, based on 15.7 million shares. Excluding a $1.5 million one time non-cash penalty fee relating to our December 14, 2005 stock purchase agreement, pro forma net income was $19.3 million with pro forma earnings per share of $0.90 per weighted average diluted share.
Pro forma net income and pro forma earnings per share are non-GAAP measures. See the (GAAP note) below.
The Company reported a cash balance on December 31, 2006 of $20.5 million, which increased $14.3 million from December 31, 2005 and benefited from positive net income and improved working capital management during the year. Accounts receivable were $7.0 million at the end of the year representing only a 13.6 percent increase from December 31, 2005, despite a 100 percent increase in net sales. During 2006, the Company's top five and ten customers accounted for 42.3 and 73.3 percent of the accounts receivable balance respectively. Inventory decreased 3.0 percent to $7.4 million from the end of 2005. The current ratio at the end of the fourth quarter was 1.87 to 1 and the Company had working capital of $18.1 million compared to $10.1 million on December 31, 2005. Cash generated from operations during 2006 was $13.3 million, while cash utilized predominantly for capital expenditures totaled $13.0 million. Total debt on December 31, 2006 was $26.7 million, including a $3.9 million interest free loan from the Chairman.
"We are very pleased with our 2006 results as the Company executed successfully on its key growth initiatives and established a solid platform for further expansion. We increased revenues from our fine wire product line, added new customers utilizing new applications for our bimetallic products, while optimizing our overall production capacity."
"We ended the year with a total of 20 regular and coaxial production lines, up from an average of 14 during 2005, which enabled the Company to capture incremental market share during 2006. We estimate Fushi currently controls approximately 17 percent of the domestic market, making us the largest domestic bimetallic producer based in China. We also strengthened our balance sheet through further improvements in working capital management. In January, the Company completed a $60 million senior and convertible debenture financing which will provide the necessary capital for us to significantly expand our production capabilities during 2007, while further improving our working capital position to optimize output and meet increased customer demand," stated Mr. Li Fu, the Chairman and Chief Executive Officer of Fushi International.
2007 Guidance
Supported by our recent $60 million financing, the Company has initiated a significant facility expansion with plans to more than double 2006 capacity by the end of 2007 through the addition of both coaxial and fine-wire bimetallic production lines. Specifically, we anticipate having forty to fifty regular CCA production lines by the end of 2007 with 24,000 to 30,000 tons of annual capacity. Management believes it will be able to produce and sell approximately 50 percent more bimetallic wire in 2007 than in 2006, which would equate to approximately 17,500 tons. As part of our recent financing, the Company entered into a Note purchase agreement with Citadel, in which we committed to net-income thresholds designed to help prevent a future reset of the conversion price of our debentures into equity. For the second, third and fourth quarters of calendar 2007, this equates to a minimum of $5 million in reported net income per quarter. The Company is providing guidance of at least $22.8 million in net income for 2007, which would equate to a $1.00 in diluted earnings per share and represent approximately a 20 percent increase over 2006. Management will provide further details on this expansion during its conference call.
About Fushi International:
Fushi International is engaged, through its directly wholly-owned operating subsidiary Fushi International (Dalian) Bimetallic Cable Co., Ltd., in the manufacture 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, utilities wire, building wire and other industrial wires, and various video and data applications. Since our inception in 2002, the Company has grown to become a leading manufacturer of bimetallic products for the China market. For more information on Fushi, visit their website: http://www.fushiinternational.com/
Industry Information
During the years 2004 - 2006, the China market experienced substantial growth in the use of bimetallic composite wiring as a substitute to solid copper in an expanding base of applications. Rising copper prices and the massive build out of infrastructure have been the principal drivers of industry wide growth in China. According to an industry report by Research in China, the Chinese bimetallic market is estimated to have grown from approximately 10,000 tons of industry-wide sales in 2004 to 30,000 tons in 2005 and 70,000 tons in 2006, representing compound annual growth rate, or CAGR, of 91.3%, and is expected to continue the growth at similar rates for 2007 and 2008. At the present time, bimetallic wire accounts for an insignificant 1.5% of the copper replacement market. It is projected that by 2011, it could account for as much as 20% of the market.
Conference Call
Management will host a conference call 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. In addition, 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.
Safe Harbor Statement:
This press release contains forward-looking statements concerning Fushi International, Inc.'s business 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.
GAAP note: This press release includes pro forma diluted earnings per share , a financial measure that is not calculated in accordance with generally accepted accounting principles (GAAP) because it excludes certain non-cash costs. Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance that enhances management's and investors' ability to evaluate the Company's income per share and to compare it with historical income per share. For more information on our pro forma diluted earnings per shares, see the note to the "2006 Key Financial Indicators" table appearing at the beginning of this press release.
The financial information stated above and in the tables below has been abstracted from the Company's Form 10-K for the year ended December 31, 2006 filed with the Securities and Exchange Commission and should be read in conjunction with the information provided therein.
Contact:
Chris Wang, CFO
Fushi International, Inc.
Tel: +86-139-1101-5690
Email: chris.wang@fushiinternational.com
FUSHI INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
AS OF DECEMBER 31, 2006
A S S E T S
CURRENT ASSETS:
Cash $ 20,493,551
Accounts receivable, trade, net of allowance
for doubtful account of $0 7,042,408
Inventories 7,403,116
Other receivables and prepaid expenses 497,380
Advances to suppliers 3,390,917
Total current assets 38,827,372
PLANT AND EQUIPMENT, net 47,256,475
OTHER ASSETS:
Advances to suppliers -noncurrent 4,559,357
Intangible asset, net 5,518,931
Total other assets 10,078,288
Total assets $ 96,162,135
L I A B I L I T I E S A N D S H A R E H O L D E R S'
E Q U I T Y
CURRENT LIABILITIES:
Accounts payable, trade $ 1,055,684
Liquidated damage payable 1,466,250
Short term bank loans 12,504,135
Other payables and accrued liabilities 321,276
Customer deposits 531,065
Taxes payable 982,345
Loan from shareholder 3,911,256
Total current liabilities 20,772,011
LONG TERM LIABILITIES:
Long term debts 10,256,000
Total liabilities 31,028,011
SHAREHOLDERS' EQUITY:
Common stock,$0.006 par value, 100,000,000
shares authorized, 20,046,162 shares issued
and outstanding 120,277
Additional paid in capital 29,364,955
Statutory reserves 4,452,467
Retained earnings 28,496,702
Accumulated other comprehensive income 2,699,723
Total shareholders' equity 65,134,124
Total liabilities and shareholders' equity $ 96,162,135
FUSHI INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND
OTHER COMPREHENSIVE INCOME
FOR THE YEARS ENDED DECEMBER 31, 2006 AND 2005
2006 2005
(Restated)
REVENUES $ 67,595,774 $ 33,709,428
COST OF GOODS SOLD 42,781,669 21,400,248
GROSS PROFIT 24,814,105 12,309,180
OPERATING EXPENSE
Selling expenses 613,119 317,324
General and administrative
expenses 3,815,380 2,029,239
Total operating expense 4,428,499 2,346,563
INCOME FROM OPERATIONS 20,385,606 9,962,617
OTHER INCOME (EXPENSE)
Interest income 73,949 95,766
Interest expense (1,072,769) (1,033,861)
Other income 322,817 191,871
Other expense (22,632) (15,177)
Liquidated damage expense (1,478,520)
Total other (expense), net (2,177,155) (761,401)
INCOME BEFORE INCOME TAXES 18,208,451 9,201,216
PROVISION FOR INCOME TAXES 398,425 1,402,235
NET INCOME 17,810,026 7,798,981
OTHER COMPREHENSIVE INCOME
Foreign currency translation
adjustment 1,923,828 775,895
COMPREHENSIVE INCOME $ 19,733,854 $ 8,574,876
NET INCOME PER SHARE-BASIC $ 0.89 $ 2,015.76
BASIC WEIGHTED AVERAGE NUMBER OF
SHARES 19,933,193 3,869
NET INCOME PER SHARE-DILUTED $ 0.84 $ 0.50
DILUTED WEIGHTED AVERAGE NUMBER OF
SHARES 21,276,263 15,689,053
FUSHI INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2006 AND 2005
2006 2005
(Restated)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 17,810,026 $ 7,798,981
Adjustments to reconcile net income to
cash provided by (used in) operating
activities:
Depreciation 2,208,924 1,779,898
Amortization 223,800 207,489
Change in operating assets and
liabilities:
(Increase) decrease in assets:
Accounts receivable (616,477) (4,334,780)
Inventories 478,455 (5,451,667)
Other receivables 726 (820,169)
Increase (decrease) in liabilities:
Accounts payable (1,747,265) 1,130,246
Other payables and accrued
liabilities (360,312) 40,327
Customer deposits 404,906 112,189
Other taxes payable (2,959,284) 1,208,536
Income taxes payable (2,132,806) 1,401,898
Net cash provided by operating
activities 13,310,693 3,072,948
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment (8,493,919) (6,913,780)
Advances for purchase of equipment (4,465,823)
Net cash (used in) investing
activities (12,959,742) (6,913,780)
CASH FLOWS FROM FINANCING ACTIVITIES:
Loan from shareholder 4,450,000
Advance to shareholder (532,379) (108,958)
Due to related companies 3,367,897 (46,175)
Due from related companies (2,902,669)
Proceeds from bank loans 24,365,120 16,927,470
Payments on bank loans (19,714,490) (16,499,700)
Net proceeds from stock issuance in
private placement 9,930,412
Exercise of stock warrants 248,729
Proceeds from (Fees paid for)
recapitalization (77,500) 471
Additional paid-in capital 26,157
Net cash provided by financing
activities 12,107,377 7,327,008
EFFECT OF EXCHANGE RATE ON CASH 1,868,336 68,427
INCREASE IN CASH 14,326,665 3,554,604
CASH, beginning of year 6,166,886 2,612,282
CASH, end of year $ 20,493,551 $ 6,166,886
--------------------------------------------------------------------------------
Source: Fushi International, Inc.
Blow out earnings for Fushi Int'l after the bell. (FSIN)
EPS full year of .91
Fushi International, Inc. Reports 2006 Fourth Quarter and Full Year Financial Results
Thursday March 29, 4:32 pm ET
Management Provides 2007 Guidance of $22.8 million in Net Income and EPS of $1.00
DALIAN, China, March 29 /Xinhua-PRNewswire/ -- Fushi International, Inc., (OTC Bulletin Board: FSIN - News), 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 fourth quarter and year ending December 31, 2006.
2006 Key Financial Indicators
(All numbers in thousands, except per-share amounts in USD)
2006 2005 Percent
Change
Net Sales $67,596 $33,709 100.5%
Cost of goods sold $42,782 $21,400 99.9%
Gross Profit $24,814 $12,309 101.6%
Total Operating Expenses $4,428 $2,347 88.7%
Operating Income $20,386 $9,963 104.6%
GAAP Net Income $17,810 $7,799 128.4%
Pro forma Net Income* $19,289 $7,799 147.3%
Fully Diluted EPS $0.84 $0.50 67.8%
Pro forma EPS* $0.90 $0.50 81.7%
(*) Pro forma Net Income and Earnings Per Share exclude a $1.5 million non-cash penalty fee associated with liquidated damages paid in common stock as a result of a delay in effective date of our registration statement for the resale of shares sold in the Company's December 2005 private placement.
Fourth Quarter Financial Results (unaudited)
For the quarter ended December 31, 2006, the Company reported revenue of $21.7 million, an increase of 38.9 percent from the $15.6 million reported during the same period in 2005. Reported revenues are net of the VAT (or Value Added Tax) of approximately 17.0 percent payable in China. The increase was primarily attributable to increases in average selling prices and sales volume growth compared to last year. Reported capacity utilization at the end of the fourth quarter was approximately 97.5 percent, but due to combining three- shift work days, actual capacity utilization was higher. The Company sold a total of 3,549 tons of bimetallic products during the quarter and continued to further diversify its customer concentration.
Cost of goods sold for the quarter ended December 31, 2006 increased by 27.9 percent to $14.3 million, resulting from an increase in the purchasing costs of raw materials, specifically copper and aluminum, and incremental costs associated with higher production volumes. Raw materials accounted for 89 percent of the total cost of goods sold. Gross profit for the fourth quarter was $7.4 million, up 66.3 percent from the fourth quarter of 2005. Gross margins for the fourth quarter of 2006 were 34.1 percent compared to 28.5 percent in the prior year, resulting from more effective capacity utilization and a sales mix including higher margin fine wire, which was not in production during 2005.
Operating expenses were $1.8 million in the fourth quarter of 2006, representing a slight increase from the same quarter last year, as a result of the aforementioned higher raw material costs. Operating income increased 49.6 percent to $5.6 million for the fourth quarter, and also increased as a percentage of net sales. . Operating margins increased to 26.0 percent from 24.1 percent in the comparable quarter last year.
"The fourth quarter was representative of our accomplishments for the full year and exhibited strong year over year growth in both revenues and earnings. We maintained strong capacity utilization, continued to diversify both our product and customer mix and began preparation for a significant expansion in our manufacturing facility planned for 2007," stated Mr. Chris Wang, CFO of Fushi International. "While we experienced extreme volatility in copper prices, our key cost component, gross margins returned to historical norms during the fourth quarter, which further benefited net income. We are well- positioned to capitalize on the strong secular growth drivers in place, including further adoption of bimetallic wire for growing infrastructure applications, as well as new end markets."
During the fourth quarter the Company did not pay income taxes due to its operating subsidiary, Fushi International (Dalian) Bimetallic Cable Co., Ltd., becoming a wholly owned foreign enterprise. In addition, the Dalian Fushi subsidiary enjoys an exemption by being recognized in the special economic region of Dalian as a high tech enterprise within China. Net income for the fourth quarter increased 86.7 percent to $5.4 million, or $0.25 per fully diluted share compared to net income of $2.9 million, or $0.18 per fully diluted share in the comparable quarter last year. During the fourth quarter of 2006, the Company had outstanding a weighted average of 21.3 million fully diluted shares, as compared to 15.5 million in the same period one year ago.
2006 Full Year Results (audited)
For the year ended December 31, 2006, revenues increased 100.5 percent to $67.6 million from $33.7 million in 2005, driven by higher selling prices, increased sales volume, increased capacity utilization and an improvement in our product mix to higher-margin wire. In addition, the Company continued to further diversify its customer base, a stated management goal, where the top six customers represented 34% of revenues compared to five customers representing 41% for 2005. Revenues in 2006 were generated from a total of 93 customers located in more than 8 provinces throughout China. Additionally, end-user applications have increased significantly year-over-year from new markets such as electromagnet wire, winding wire, shielding wire, as well as distribution and coils.
The table below summarizes key metrics impacting annual revenues.
CY2006 CY2005 CY2004
Avg. Selling Price ($/ton) 5,777 4,156 3,523
Sales Volume (tons) 11,701 8,111 4,446
- Co-Axial Cable 6,798 6,100
- Electromagnetic Wire 1,917 23
- Shielding Wire 2,986 1,988
Avg. # of Production lines 20 14 8
Capacity (tons/2-shifts) 12000 8400 4800
Utilization 97.5 % 96.6 % 92.6 %
Cost of goods sold increased 100 percent to $42.8 million primarily as a result of higher raw material prices and increased production volume. 89 percent of this expense was directly related to copper and aluminum raw material costs. Gross profit increased 101.6 percent to $24.8 million resulting in gross margins of 36.7 percent as compared to 36.5 percent last year, despite higher raw material costs on a year over year basis.
Operating expenses increased 88.7 percent to $4.4 million. Operating income for the period totaled $20.4 million, a 104.6 percent increase from 2005, while operating margins were 30.2 percent compared to 29.6 percent in the year ago period. Interest expense increased slightly to $1.1 million. In addition, the Company incurred a $1.5 million non-cash charge associated with a registration rights penalty payable in common stock taken during the third quarter. The company made a tax provision of $400,000 for the 2006 year.
Net income increased 128.4 percent to $17.8 million as net margins increased by 320 basis points to 26.3 percent with respective weighted average fully diluted earnings per share of $0.84, based on 21.3 million shares compared to $7.8 million in net income and $0.50 in the year ago period, based on 15.7 million shares. Excluding a $1.5 million one time non-cash penalty fee relating to our December 14, 2005 stock purchase agreement, pro forma net income was $19.3 million with pro forma earnings per share of $0.90 per weighted average diluted share.
Pro forma net income and pro forma earnings per share are non-GAAP measures. See the (GAAP note) below.
The Company reported a cash balance on December 31, 2006 of $20.5 million, which increased $14.3 million from December 31, 2005 and benefited from positive net income and improved working capital management during the year. Accounts receivable were $7.0 million at the end of the year representing only a 13.6 percent increase from December 31, 2005, despite a 100 percent increase in net sales. During 2006, the Company's top five and ten customers accounted for 42.3 and 73.3 percent of the accounts receivable balance respectively. Inventory decreased 3.0 percent to $7.4 million from the end of 2005. The current ratio at the end of the fourth quarter was 1.87 to 1 and the Company had working capital of $18.1 million compared to $10.1 million on December 31, 2005. Cash generated from operations during 2006 was $13.3 million, while cash utilized predominantly for capital expenditures totaled $13.0 million. Total debt on December 31, 2006 was $26.7 million, including a $3.9 million interest free loan from the Chairman.
"We are very pleased with our 2006 results as the Company executed successfully on its key growth initiatives and established a solid platform for further expansion. We increased revenues from our fine wire product line, added new customers utilizing new applications for our bimetallic products, while optimizing our overall production capacity."
"We ended the year with a total of 20 regular and coaxial production lines, up from an average of 14 during 2005, which enabled the Company to capture incremental market share during 2006. We estimate Fushi currently controls approximately 17 percent of the domestic market, making us the largest domestic bimetallic producer based in China. We also strengthened our balance sheet through further improvements in working capital management. In January, the Company completed a $60 million senior and convertible debenture financing which will provide the necessary capital for us to significantly expand our production capabilities during 2007, while further improving our working capital position to optimize output and meet increased customer demand," stated Mr. Li Fu, the Chairman and Chief Executive Officer of Fushi International.
2007 Guidance
Supported by our recent $60 million financing, the Company has initiated a significant facility expansion with plans to more than double 2006 capacity by the end of 2007 through the addition of both coaxial and fine-wire bimetallic production lines. Specifically, we anticipate having forty to fifty regular CCA production lines by the end of 2007 with 24,000 to 30,000 tons of annual capacity. Management believes it will be able to produce and sell approximately 50 percent more bimetallic wire in 2007 than in 2006, which would equate to approximately 17,500 tons. As part of our recent financing, the Company entered into a Note purchase agreement with Citadel, in which we committed to net-income thresholds designed to help prevent a future reset of the conversion price of our debentures into equity. For the second, third and fourth quarters of calendar 2007, this equates to a minimum of $5 million in reported net income per quarter. The Company is providing guidance of at least $22.8 million in net income for 2007, which would equate to a $1.00 in diluted earnings per share and represent approximately a 20 percent increase over 2006. Management will provide further details on this expansion during its conference call.
About Fushi International:
Fushi International is engaged, through its directly wholly-owned operating subsidiary Fushi International (Dalian) Bimetallic Cable Co., Ltd., in the manufacture 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, utilities wire, building wire and other industrial wires, and various video and data applications. Since our inception in 2002, the Company has grown to become a leading manufacturer of bimetallic products for the China market. For more information on Fushi, visit their website: http://www.fushiinternational.com/
Industry Information
During the years 2004 - 2006, the China market experienced substantial growth in the use of bimetallic composite wiring as a substitute to solid copper in an expanding base of applications. Rising copper prices and the massive build out of infrastructure have been the principal drivers of industry wide growth in China. According to an industry report by Research in China, the Chinese bimetallic market is estimated to have grown from approximately 10,000 tons of industry-wide sales in 2004 to 30,000 tons in 2005 and 70,000 tons in 2006, representing compound annual growth rate, or CAGR, of 91.3%, and is expected to continue the growth at similar rates for 2007 and 2008. At the present time, bimetallic wire accounts for an insignificant 1.5% of the copper replacement market. It is projected that by 2011, it could account for as much as 20% of the market.
Conference Call
Management will host a conference call 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. In addition, 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.
Safe Harbor Statement:
This press release contains forward-looking statements concerning Fushi International, Inc.'s business 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.
GAAP note: This press release includes pro forma diluted earnings per share , a financial measure that is not calculated in accordance with generally accepted accounting principles (GAAP) because it excludes certain non-cash costs. Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance that enhances management's and investors' ability to evaluate the Company's income per share and to compare it with historical income per share. For more information on our pro forma diluted earnings per shares, see the note to the "2006 Key Financial Indicators" table appearing at the beginning of this press release.
The financial information stated above and in the tables below has been abstracted from the Company's Form 10-K for the year ended December 31, 2006 filed with the Securities and Exchange Commission and should be read in conjunction with the information provided therein.
Contact:
Chris Wang, CFO
Fushi International, Inc.
Tel: +86-139-1101-5690
Email: chris.wang@fushiinternational.com
FUSHI INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
AS OF DECEMBER 31, 2006
A S S E T S
CURRENT ASSETS:
Cash $ 20,493,551
Accounts receivable, trade, net of allowance
for doubtful account of $0 7,042,408
Inventories 7,403,116
Other receivables and prepaid expenses 497,380
Advances to suppliers 3,390,917
Total current assets 38,827,372
PLANT AND EQUIPMENT, net 47,256,475
OTHER ASSETS:
Advances to suppliers -noncurrent 4,559,357
Intangible asset, net 5,518,931
Total other assets 10,078,288
Total assets $ 96,162,135
L I A B I L I T I E S A N D S H A R E H O L D E R S'
E Q U I T Y
CURRENT LIABILITIES:
Accounts payable, trade $ 1,055,684
Liquidated damage payable 1,466,250
Short term bank loans 12,504,135
Other payables and accrued liabilities 321,276
Customer deposits 531,065
Taxes payable 982,345
Loan from shareholder 3,911,256
Total current liabilities 20,772,011
LONG TERM LIABILITIES:
Long term debts 10,256,000
Total liabilities 31,028,011
SHAREHOLDERS' EQUITY:
Common stock,$0.006 par value, 100,000,000
shares authorized, 20,046,162 shares issued
and outstanding 120,277
Additional paid in capital 29,364,955
Statutory reserves 4,452,467
Retained earnings 28,496,702
Accumulated other comprehensive income 2,699,723
Total shareholders' equity 65,134,124
Total liabilities and shareholders' equity $ 96,162,135
FUSHI INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND
OTHER COMPREHENSIVE INCOME
FOR THE YEARS ENDED DECEMBER 31, 2006 AND 2005
2006 2005
(Restated)
REVENUES $ 67,595,774 $ 33,709,428
COST OF GOODS SOLD 42,781,669 21,400,248
GROSS PROFIT 24,814,105 12,309,180
OPERATING EXPENSE
Selling expenses 613,119 317,324
General and administrative
expenses 3,815,380 2,029,239
Total operating expense 4,428,499 2,346,563
INCOME FROM OPERATIONS 20,385,606 9,962,617
OTHER INCOME (EXPENSE)
Interest income 73,949 95,766
Interest expense (1,072,769) (1,033,861)
Other income 322,817 191,871
Other expense (22,632) (15,177)
Liquidated damage expense (1,478,520)
Total other (expense), net (2,177,155) (761,401)
INCOME BEFORE INCOME TAXES 18,208,451 9,201,216
PROVISION FOR INCOME TAXES 398,425 1,402,235
NET INCOME 17,810,026 7,798,981
OTHER COMPREHENSIVE INCOME
Foreign currency translation
adjustment 1,923,828 775,895
COMPREHENSIVE INCOME $ 19,733,854 $ 8,574,876
NET INCOME PER SHARE-BASIC $ 0.89 $ 2,015.76
BASIC WEIGHTED AVERAGE NUMBER OF
SHARES 19,933,193 3,869
NET INCOME PER SHARE-DILUTED $ 0.84 $ 0.50
DILUTED WEIGHTED AVERAGE NUMBER OF
SHARES 21,276,263 15,689,053
FUSHI INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2006 AND 2005
2006 2005
(Restated)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 17,810,026 $ 7,798,981
Adjustments to reconcile net income to
cash provided by (used in) operating
activities:
Depreciation 2,208,924 1,779,898
Amortization 223,800 207,489
Change in operating assets and
liabilities:
(Increase) decrease in assets:
Accounts receivable (616,477) (4,334,780)
Inventories 478,455 (5,451,667)
Other receivables 726 (820,169)
Increase (decrease) in liabilities:
Accounts payable (1,747,265) 1,130,246
Other payables and accrued
liabilities (360,312) 40,327
Customer deposits 404,906 112,189
Other taxes payable (2,959,284) 1,208,536
Income taxes payable (2,132,806) 1,401,898
Net cash provided by operating
activities 13,310,693 3,072,948
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment (8,493,919) (6,913,780)
Advances for purchase of equipment (4,465,823)
Net cash (used in) investing
activities (12,959,742) (6,913,780)
CASH FLOWS FROM FINANCING ACTIVITIES:
Loan from shareholder 4,450,000
Advance to shareholder (532,379) (108,958)
Due to related companies 3,367,897 (46,175)
Due from related companies (2,902,669)
Proceeds from bank loans 24,365,120 16,927,470
Payments on bank loans (19,714,490) (16,499,700)
Net proceeds from stock issuance in
private placement 9,930,412
Exercise of stock warrants 248,729
Proceeds from (Fees paid for)
recapitalization (77,500) 471
Additional paid-in capital 26,157
Net cash provided by financing
activities 12,107,377 7,327,008
EFFECT OF EXCHANGE RATE ON CASH 1,868,336 68,427
INCREASE IN CASH 14,326,665 3,554,604
CASH, beginning of year 6,166,886 2,612,282
CASH, end of year $ 20,493,551 $ 6,166,886
--------------------------------------------------------------------------------
Source: Fushi International, Inc.
Blow out earnings for Fushi Int'l after the bell. (FSIN)
EPS full year of .90
Revenues $67 million
Fushi International, Inc. Reports 2006 Fourth Quarter and Full Year Financial Results
Thursday March 29, 4:32 pm ET
Management Provides 2007 Guidance of $22.8 million in Net Income and EPS of $1.00
DALIAN, China, March 29 /Xinhua-PRNewswire/ -- Fushi International, Inc., (OTC Bulletin Board: FSIN - News), 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 fourth quarter and year ending December 31, 2006.
2006 Key Financial Indicators
(All numbers in thousands, except per-share amounts in USD)
2006 2005 Percent
Change
Net Sales $67,596 $33,709 100.5%
Cost of goods sold $42,782 $21,400 99.9%
Gross Profit $24,814 $12,309 101.6%
Total Operating Expenses $4,428 $2,347 88.7%
Operating Income $20,386 $9,963 104.6%
GAAP Net Income $17,810 $7,799 128.4%
Pro forma Net Income* $19,289 $7,799 147.3%
Fully Diluted EPS $0.84 $0.50 67.8%
Pro forma EPS* $0.90 $0.50 81.7%
(*) Pro forma Net Income and Earnings Per Share exclude a $1.5 million non-cash penalty fee associated with liquidated damages paid in common stock as a result of a delay in effective date of our registration statement for the resale of shares sold in the Company's December 2005 private placement.
Fourth Quarter Financial Results (unaudited)
For the quarter ended December 31, 2006, the Company reported revenue of $21.7 million, an increase of 38.9 percent from the $15.6 million reported during the same period in 2005. Reported revenues are net of the VAT (or Value Added Tax) of approximately 17.0 percent payable in China. The increase was primarily attributable to increases in average selling prices and sales volume growth compared to last year. Reported capacity utilization at the end of the fourth quarter was approximately 97.5 percent, but due to combining three- shift work days, actual capacity utilization was higher. The Company sold a total of 3,549 tons of bimetallic products during the quarter and continued to further diversify its customer concentration.
Cost of goods sold for the quarter ended December 31, 2006 increased by 27.9 percent to $14.3 million, resulting from an increase in the purchasing costs of raw materials, specifically copper and aluminum, and incremental costs associated with higher production volumes. Raw materials accounted for 89 percent of the total cost of goods sold. Gross profit for the fourth quarter was $7.4 million, up 66.3 percent from the fourth quarter of 2005. Gross margins for the fourth quarter of 2006 were 34.1 percent compared to 28.5 percent in the prior year, resulting from more effective capacity utilization and a sales mix including higher margin fine wire, which was not in production during 2005.
Operating expenses were $1.8 million in the fourth quarter of 2006, representing a slight increase from the same quarter last year, as a result of the aforementioned higher raw material costs. Operating income increased 49.6 percent to $5.6 million for the fourth quarter, and also increased as a percentage of net sales. . Operating margins increased to 26.0 percent from 24.1 percent in the comparable quarter last year.
"The fourth quarter was representative of our accomplishments for the full year and exhibited strong year over year growth in both revenues and earnings. We maintained strong capacity utilization, continued to diversify both our product and customer mix and began preparation for a significant expansion in our manufacturing facility planned for 2007," stated Mr. Chris Wang, CFO of Fushi International. "While we experienced extreme volatility in copper prices, our key cost component, gross margins returned to historical norms during the fourth quarter, which further benefited net income. We are well- positioned to capitalize on the strong secular growth drivers in place, including further adoption of bimetallic wire for growing infrastructure applications, as well as new end markets."
During the fourth quarter the Company did not pay income taxes due to its operating subsidiary, Fushi International (Dalian) Bimetallic Cable Co., Ltd., becoming a wholly owned foreign enterprise. In addition, the Dalian Fushi subsidiary enjoys an exemption by being recognized in the special economic region of Dalian as a high tech enterprise within China. Net income for the fourth quarter increased 86.7 percent to $5.4 million, or $0.25 per fully diluted share compared to net income of $2.9 million, or $0.18 per fully diluted share in the comparable quarter last year. During the fourth quarter of 2006, the Company had outstanding a weighted average of 21.3 million fully diluted shares, as compared to 15.5 million in the same period one year ago.
2006 Full Year Results (audited)
For the year ended December 31, 2006, revenues increased 100.5 percent to $67.6 million from $33.7 million in 2005, driven by higher selling prices, increased sales volume, increased capacity utilization and an improvement in our product mix to higher-margin wire. In addition, the Company continued to further diversify its customer base, a stated management goal, where the top six customers represented 34% of revenues compared to five customers representing 41% for 2005. Revenues in 2006 were generated from a total of 93 customers located in more than 8 provinces throughout China. Additionally, end-user applications have increased significantly year-over-year from new markets such as electromagnet wire, winding wire, shielding wire, as well as distribution and coils.
The table below summarizes key metrics impacting annual revenues.
CY2006 CY2005 CY2004
Avg. Selling Price ($/ton) 5,777 4,156 3,523
Sales Volume (tons) 11,701 8,111 4,446
- Co-Axial Cable 6,798 6,100
- Electromagnetic Wire 1,917 23
- Shielding Wire 2,986 1,988
Avg. # of Production lines 20 14 8
Capacity (tons/2-shifts) 12000 8400 4800
Utilization 97.5 % 96.6 % 92.6 %
Cost of goods sold increased 100 percent to $42.8 million primarily as a result of higher raw material prices and increased production volume. 89 percent of this expense was directly related to copper and aluminum raw material costs. Gross profit increased 101.6 percent to $24.8 million resulting in gross margins of 36.7 percent as compared to 36.5 percent last year, despite higher raw material costs on a year over year basis.
Operating expenses increased 88.7 percent to $4.4 million. Operating income for the period totaled $20.4 million, a 104.6 percent increase from 2005, while operating margins were 30.2 percent compared to 29.6 percent in the year ago period. Interest expense increased slightly to $1.1 million. In addition, the Company incurred a $1.5 million non-cash charge associated with a registration rights penalty payable in common stock taken during the third quarter. The company made a tax provision of $400,000 for the 2006 year.
Net income increased 128.4 percent to $17.8 million as net margins increased by 320 basis points to 26.3 percent with respective weighted average fully diluted earnings per share of $0.84, based on 21.3 million shares compared to $7.8 million in net income and $0.50 in the year ago period, based on 15.7 million shares. Excluding a $1.5 million one time non-cash penalty fee relating to our December 14, 2005 stock purchase agreement, pro forma net income was $19.3 million with pro forma earnings per share of $0.90 per weighted average diluted share.
Pro forma net income and pro forma earnings per share are non-GAAP measures. See the (GAAP note) below.
The Company reported a cash balance on December 31, 2006 of $20.5 million, which increased $14.3 million from December 31, 2005 and benefited from positive net income and improved working capital management during the year. Accounts receivable were $7.0 million at the end of the year representing only a 13.6 percent increase from December 31, 2005, despite a 100 percent increase in net sales. During 2006, the Company's top five and ten customers accounted for 42.3 and 73.3 percent of the accounts receivable balance respectively. Inventory decreased 3.0 percent to $7.4 million from the end of 2005. The current ratio at the end of the fourth quarter was 1.87 to 1 and the Company had working capital of $18.1 million compared to $10.1 million on December 31, 2005. Cash generated from operations during 2006 was $13.3 million, while cash utilized predominantly for capital expenditures totaled $13.0 million. Total debt on December 31, 2006 was $26.7 million, including a $3.9 million interest free loan from the Chairman.
"We are very pleased with our 2006 results as the Company executed successfully on its key growth initiatives and established a solid platform for further expansion. We increased revenues from our fine wire product line, added new customers utilizing new applications for our bimetallic products, while optimizing our overall production capacity."
"We ended the year with a total of 20 regular and coaxial production lines, up from an average of 14 during 2005, which enabled the Company to capture incremental market share during 2006. We estimate Fushi currently controls approximately 17 percent of the domestic market, making us the largest domestic bimetallic producer based in China. We also strengthened our balance sheet through further improvements in working capital management. In January, the Company completed a $60 million senior and convertible debenture financing which will provide the necessary capital for us to significantly expand our production capabilities during 2007, while further improving our working capital position to optimize output and meet increased customer demand," stated Mr. Li Fu, the Chairman and Chief Executive Officer of Fushi International.
2007 Guidance
Supported by our recent $60 million financing, the Company has initiated a significant facility expansion with plans to more than double 2006 capacity by the end of 2007 through the addition of both coaxial and fine-wire bimetallic production lines. Specifically, we anticipate having forty to fifty regular CCA production lines by the end of 2007 with 24,000 to 30,000 tons of annual capacity. Management believes it will be able to produce and sell approximately 50 percent more bimetallic wire in 2007 than in 2006, which would equate to approximately 17,500 tons. As part of our recent financing, the Company entered into a Note purchase agreement with Citadel, in which we committed to net-income thresholds designed to help prevent a future reset of the conversion price of our debentures into equity. For the second, third and fourth quarters of calendar 2007, this equates to a minimum of $5 million in reported net income per quarter. The Company is providing guidance of at least $22.8 million in net income for 2007, which would equate to a $1.00 in diluted earnings per share and represent approximately a 20 percent increase over 2006. Management will provide further details on this expansion during its conference call.
About Fushi International:
Fushi International is engaged, through its directly wholly-owned operating subsidiary Fushi International (Dalian) Bimetallic Cable Co., Ltd., in the manufacture 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, utilities wire, building wire and other industrial wires, and various video and data applications. Since our inception in 2002, the Company has grown to become a leading manufacturer of bimetallic products for the China market. For more information on Fushi, visit their website: http://www.fushiinternational.com/
Industry Information
During the years 2004 - 2006, the China market experienced substantial growth in the use of bimetallic composite wiring as a substitute to solid copper in an expanding base of applications. Rising copper prices and the massive build out of infrastructure have been the principal drivers of industry wide growth in China. According to an industry report by Research in China, the Chinese bimetallic market is estimated to have grown from approximately 10,000 tons of industry-wide sales in 2004 to 30,000 tons in 2005 and 70,000 tons in 2006, representing compound annual growth rate, or CAGR, of 91.3%, and is expected to continue the growth at similar rates for 2007 and 2008. At the present time, bimetallic wire accounts for an insignificant 1.5% of the copper replacement market. It is projected that by 2011, it could account for as much as 20% of the market.
Conference Call
Management will host a conference call 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. In addition, 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.
Safe Harbor Statement:
This press release contains forward-looking statements concerning Fushi International, Inc.'s business 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.
GAAP note: This press release includes pro forma diluted earnings per share , a financial measure that is not calculated in accordance with generally accepted accounting principles (GAAP) because it excludes certain non-cash costs. Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance that enhances management's and investors' ability to evaluate the Company's income per share and to compare it with historical income per share. For more information on our pro forma diluted earnings per shares, see the note to the "2006 Key Financial Indicators" table appearing at the beginning of this press release.
The financial information stated above and in the tables below has been abstracted from the Company's Form 10-K for the year ended December 31, 2006 filed with the Securities and Exchange Commission and should be read in conjunction with the information provided therein.
Contact:
Chris Wang, CFO
Fushi International, Inc.
Tel: +86-139-1101-5690
Email: chris.wang@fushiinternational.com
FUSHI INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
AS OF DECEMBER 31, 2006
A S S E T S
CURRENT ASSETS:
Cash $ 20,493,551
Accounts receivable, trade, net of allowance
for doubtful account of $0 7,042,408
Inventories 7,403,116
Other receivables and prepaid expenses 497,380
Advances to suppliers 3,390,917
Total current assets 38,827,372
PLANT AND EQUIPMENT, net 47,256,475
OTHER ASSETS:
Advances to suppliers -noncurrent 4,559,357
Intangible asset, net 5,518,931
Total other assets 10,078,288
Total assets $ 96,162,135
L I A B I L I T I E S A N D S H A R E H O L D E R S'
E Q U I T Y
CURRENT LIABILITIES:
Accounts payable, trade $ 1,055,684
Liquidated damage payable 1,466,250
Short term bank loans 12,504,135
Other payables and accrued liabilities 321,276
Customer deposits 531,065
Taxes payable 982,345
Loan from shareholder 3,911,256
Total current liabilities 20,772,011
LONG TERM LIABILITIES:
Long term debts 10,256,000
Total liabilities 31,028,011
SHAREHOLDERS' EQUITY:
Common stock,$0.006 par value, 100,000,000
shares authorized, 20,046,162 shares issued
and outstanding 120,277
Additional paid in capital 29,364,955
Statutory reserves 4,452,467
Retained earnings 28,496,702
Accumulated other comprehensive income 2,699,723
Total shareholders' equity 65,134,124
Total liabilities and shareholders' equity $ 96,162,135
FUSHI INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND
OTHER COMPREHENSIVE INCOME
FOR THE YEARS ENDED DECEMBER 31, 2006 AND 2005
2006 2005
(Restated)
REVENUES $ 67,595,774 $ 33,709,428
COST OF GOODS SOLD 42,781,669 21,400,248
GROSS PROFIT 24,814,105 12,309,180
OPERATING EXPENSE
Selling expenses 613,119 317,324
General and administrative
expenses 3,815,380 2,029,239
Total operating expense 4,428,499 2,346,563
INCOME FROM OPERATIONS 20,385,606 9,962,617
OTHER INCOME (EXPENSE)
Interest income 73,949 95,766
Interest expense (1,072,769) (1,033,861)
Other income 322,817 191,871
Other expense (22,632) (15,177)
Liquidated damage expense (1,478,520)
Total other (expense), net (2,177,155) (761,401)
INCOME BEFORE INCOME TAXES 18,208,451 9,201,216
PROVISION FOR INCOME TAXES 398,425 1,402,235
NET INCOME 17,810,026 7,798,981
OTHER COMPREHENSIVE INCOME
Foreign currency translation
adjustment 1,923,828 775,895
COMPREHENSIVE INCOME $ 19,733,854 $ 8,574,876
NET INCOME PER SHARE-BASIC $ 0.89 $ 2,015.76
BASIC WEIGHTED AVERAGE NUMBER OF
SHARES 19,933,193 3,869
NET INCOME PER SHARE-DILUTED $ 0.84 $ 0.50
DILUTED WEIGHTED AVERAGE NUMBER OF
SHARES 21,276,263 15,689,053
FUSHI INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2006 AND 2005
2006 2005
(Restated)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 17,810,026 $ 7,798,981
Adjustments to reconcile net income to
cash provided by (used in) operating
activities:
Depreciation 2,208,924 1,779,898
Amortization 223,800 207,489
Change in operating assets and
liabilities:
(Increase) decrease in assets:
Accounts receivable (616,477) (4,334,780)
Inventories 478,455 (5,451,667)
Other receivables 726 (820,169)
Increase (decrease) in liabilities:
Accounts payable (1,747,265) 1,130,246
Other payables and accrued
liabilities (360,312) 40,327
Customer deposits 404,906 112,189
Other taxes payable (2,959,284) 1,208,536
Income taxes payable (2,132,806) 1,401,898
Net cash provided by operating
activities 13,310,693 3,072,948
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment (8,493,919) (6,913,780)
Advances for purchase of equipment (4,465,823)
Net cash (used in) investing
activities (12,959,742) (6,913,780)
CASH FLOWS FROM FINANCING ACTIVITIES:
Loan from shareholder 4,450,000
Advance to shareholder (532,379) (108,958)
Due to related companies 3,367,897 (46,175)
Due from related companies (2,902,669)
Proceeds from bank loans 24,365,120 16,927,470
Payments on bank loans (19,714,490) (16,499,700)
Net proceeds from stock issuance in
private placement 9,930,412
Exercise of stock warrants 248,729
Proceeds from (Fees paid for)
recapitalization (77,500) 471
Additional paid-in capital 26,157
Net cash provided by financing
activities 12,107,377 7,327,008
EFFECT OF EXCHANGE RATE ON CASH 1,868,336 68,427
INCREASE IN CASH 14,326,665 3,554,604
CASH, beginning of year 6,166,886 2,612,282
CASH, end of year $ 20,493,551 $ 6,166,886
--------------------------------------------------------------------------------
Source: Fushi International, Inc.
Do you guys realize that the well that RGNO drilled in January, the WD #1 well, came in at 273 mcf/day. That is equal to approximately 50 barrels of oil per day. By comparison Hemi (HMGP) announced a well that came in at 1-4 barrels a day. So lets see, 50 barrels of oil per day vs 4 barrels of oil per day.
RGNO will make approximately $1 million in revenue from this one well alone. And in the PR they said are going to try and fracture the well to stimulate it. Which means the well could produce at rates up to 4 times that amount. So that one well will produce between 50 and 200 barrels of oil equivalent per day which will mean $1 to $4 million in revenues from a single well.
And RGNO will be drilling multiple wells in the area. So how can this company only have a market cap of $5 million? Oil stocks typically trade at 3x sales.
One other very important note. I believe many are assuming that RGNO had no prior oil production or reserves prior to the reverse merger. If you read between the lines of the PR's it seems to imply that they actually do have prouduction and reserves from when they were a privately held company. This is only my opinion. I do not know this as fact but I am under the belief that they have other wells that are producing from when they were a privately held company. If that is true this share price will go back up to where it belongs and permanently when Gerry gives out 1st quarter numbers.
Even if they didnt have prior production or wells the stock is still significantly undervalued on the basis of the well they drilled earlier this year and the wells that they will be drilling throughout the year.
IMHO this stock will prove to be even better than many of you think.
Well at least the bashers that were complaining about Ken Weidrich and his affiliation to other companies will have one less thing to complain about.
Also they moved the company headquarters. According to the bashers the fact that they were sharing office space with other companies was a huge negative. Why they would think that I have no idea. But using their theory the stock should skyrocket tomorrow because they have moved to another location lol.
Change in Directors or Principal Officers, Other Events
March 28, 2007
ITEM 5.02 DEPARTURE OF DIRECTORS OR PRINCIPAL OFFICERS; ELECTION OF DIRECTORS; APPOINTMENT OF PRINCIPAL OFFICER
On March 15, 2007, the Company accepted the resignation from Kenneth Wiedrich as the Company's Chief Financial Officer and Secretary. Effective on the same date to fill the vacancies created by Mr. Wiedrich's resignation, the Company appointed Bruce Ruberg as the Company's Chief Financial Officer and Secretary.
Mr. Ruberg entered into an employment agreement with the Company, effective as of March 15, 2007. The employment agreement has a twelve-month term, subject to renewal upon agreement of parties. Under the employment agreement, he is entitled to a monthly $5,000 fee for services rendered.
Biographical Information for Bruce Ruberg
Mr. Ruberg graduated from the University of Illinois at Urbana - Champaign with a B.S. in Accounting. Mr. Ruberg has over 25 years' experience as a finance executive and is the founder (July 2006) and current principle of Arete Resource Group, a finance and IT consulting firm. From 1999 through 2002 Mr. Ruberg served as vice president of finance and controller with Zhone Technologies, the company's primary strategy was to develop products by acquiring companies/technologies that could be brought together that combine a unique offering. From August 2002 through March 2005 Mr. Ruberg served as vice president of finance and controller with Aspect Communications, a leading provider of Call Center solutions and applications. From September 2005 through October 2006 Mr. Ruberg served as vice president of finance and operations controller with JDSU, a leading designer and manufacturer of Agile Optical Networks as well as one of the leading Communication Test Equipment suppliers. In addition, his past experiences have included several management and controller positions with various distribution and communication companies. Mr. Ruberg brings a high level of management and finance skills, and will provide S3 Investment Company, Inc. with a wealth of experience as Chief Financial Officer and Secretary.
ITEM 8.01 OTHER EVENTS
On March 26, 2007 the Company moved its corporate headquarters to 4115 Blackhawk Plaza Circle, Suite 100, Danville, California, 94506.
RGNO's first well in 2007, the WD #1 came in at 273 mcf/day according to their Jan 30th pr. This equals approximately 50 barrels of oil per day. 50 barrels of oil per day X $60 per barrel equals $3000 per day in revenues times 365 days a year equals approximately $1 million in revenues per year to RGNO on this single well.
According to the PR they are going to try and stimulate production on this well by fracturing it which could result in a 4 fold increase in production from this well. So this single well will produce between $1 million and $4 million in revenues per year for RGNO.
They also will be drilling several new wells in this field shortly. They might have started the second well already. So mutliply the revenues 2 to 3 fold. And this is just one field. RGNO has leases in several other fields.
Bottom line, is RGNO is ridiculously undervalued at these levels. They have about a $4 million market cap. Usually oil companies trade at about 3 x revenues. They could have $4 million in revenues from this single well. So could be trading at a $4 to $12 million market cap based on one well. Then multiply by 3 other wells and you get $36 million market cap. Then add in the wells from other fields they have leases in.
This company is trading based on 1 well. What will happen when all of the other wells are factored in? And what about the other fields that they have yet to drill in. Price will go up very substantially in 07. imho
No I am buying based on the projected value of the leases and the higher impact quality of the wells coupled with rig availability and no dilution.
Yes they are building the company the right way. Much like Transglobe Energy did, debt free. TGA was a .30 stock 4 or 5 years ago now its around $4.00. It had run all the way to $9. The best time to buy into energy stocks is when the company is in its infancy like HMGP and RGNO. With younger companies every time a new well is drilled the price will rise and reserves will increase. That is because every new well adds to the proven reserves.
The more mature oil companies have to drill new wells just to try and replace existing reserves and older wells that are depleting. That is why it is harder for them to grow and easier for companies in their infancy to grow such as HMGP and RGNO.
I like what they are doing. HMGP is a buy and hold.
Good luck. But Im not impressed with oil wells that are flowing 3-5 barrels of oil per day. Those are very small wells. RGNO is also debt free and is going after larger wells with much higher flow rates, 100 barrels of oil per day plus. RGNO is not diluting. Talk to the CEO he is very accessible. I also dont like HMGP's website. A guy with a gas nozzle pointed to his head? LOL A little too contrived for my taste. Other than that very minor issue I like HMGP. I believe it is not against the law to like more than one stock. I said I wouldnt sell HMGP.
True, But RGNO only has a $4 milliona market cap and is projecting $75 million in revenues in 2007. RGNO is drilling higher imact wells and going after larger targets than HMGP. HMGP is drilling smaller wells. Nothing wrong with that but it is what it is.
I wouldnt sell HMGP though. Id go long. This is the kind of stock you buy and tuck it away and a year later you will be very happy.
My common sense tells me that RGNO has a more aggressive drilling program and is a better buy at .027 then HMGP is at .37 although I do like HMGP as well. RGNO also has real oil men running the company and access to their own drilling rig as they are partnered with a drilling rig company. I like HMGP and RGNO though. I like RGNO a tad better.
Volume coming in as well. Maybe this is the bottom for SIVC.
Looks like some volume is coming in to SIVC.
The important thing is that they have acquired some promising leases, are growing reserves and are in the process of drilling and hooking up more wells. The financials will be of more importance after more wells are put into production and brought online. The wells and reserves will drive share price. This company will grow rapidly and the share price will grow along with it. They are set up very nicely strategically at this point. Especially with the leases they have and the immediate access to the drilling rigs.
This is one of the most undervalued oil/ng stocks on the market. Jerry stated in a late 2006 PR that they anticpate $75 million in revenues in 07.
Most oil stocks trade at a price/sales ratio of 3. So that would give RGNO a $225 million market cap. Currently the market cap is $4.8 million. If revenues come in as projected RGNO should be trading around $1.40 per share. Currently we sit at .03.
This stock is going to have a great 2007. I dont know whether they will actually hit that revenue number but since he has made those comments they have acquired even more promising leases. We are on the ground floor of something great here whether the market wants to recognize it or not. And dont forget that the company has immediate access to drilling rigs. That is a major advantage.
Eventually this stock will get discovered. The leases are more impressive than HMGP and the results will be better as well imho.
I also like the fact that we have a real oil man running the company. Someone who is trustworthy and knowledgable about the business.
SIVC
Insulting? What about maddening? What about despicable? What about pathetic? Stop being so nice lol.
S3 Investment Company Announces Link Change for Wavelit.com CEO Interview and Initiation of Market Communications Program
Tuesday March 27, 9:14 am ET
TEMECULA, CA--(MARKET WIRE)--Mar 27, 2007 -- S3 Investment Company, Inc. (Other OTC:SIVC.PK - News), a holding company with two subsidiaries doing business in the China market, today announced that there is a new location for the video interview featuring chairman and chief executive officer Jim Bickel on Wavelit.com. The interview can still be seen at http://www.wavelit.com/index.asp?ch=Business&sh=wavelitnews , but there is now a link labeled "Jim Bickel" below the main interview that provides access to the video file.
Mr. Bickel's interview covers information regarding the subsidiary businesses of S3, SINO UJE and Redwood Capital, and discusses S3's strategic vision and plans for expansion in the China market.
In addition to the interview, the company expects to begin a renewed market communications program in the coming weeks to keep shareholders and the broader public markets aware of the activities of S3 and its subsidiary businesses operating in China.
"We look forward to re-initiating our dialogue with S3 shareholders and providing new information on the growth of S3's subsidiaries in the bourgeoning China market," commented Mr. Bickel
To sign up to receive information by email directly from S3 Investment Company when new press releases, investor newsletters, SEC filings or other information is disclosed, please visit http://www.s3investments.com/investors.
About Wavelit.com
Wavelit.com is a wholly owned subsidiary of Infotec Business Systems, Inc., a leading global provider of video streaming media and digital IP content.
About S3 Investment Company
S3 Investment Company, Inc. (http://www.s3investments.com) is a holding company with two subsidiaries doing business in the China market. S3 holds a 100% equity interest in Redwood Capital (http://www.redwoodcapinc.com), which assists private Chinese companies in accessing U.S. capital markets by utilizing a network of investment banking relationships, and a 51% equity interest in SINO UJE (http://www.sinouje.com), a non-stocking distributor of medical and industrial high-tech products to markets throughout China. SINO UJE has been granted exclusive distribution rights in China to medical and industrial products manufactured by leading companies in Europe, North America and Japan. These products are marketed to end-users, including major Chinese hospitals and private companies in a variety of fields, as well as original equipment manufacturers (OEMs), such as Phillips, Siemens and GE, that package the products with their technologies.
Any statements contained herein related to future events are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on forward-looking statements. S3 Investment Company, Inc. undertakes no obligation to update any such statements to reflect actual events.
Contact:
Contact:
Gemini Financial Communications for S3 Investment Company
A. Beyer
(951) 587-8072
Email Contact
Magellan Financial Media Group
Matt Boles
317-867-2839
Email Contact
--------------------------------------------------------------------------------
Source: S3 Investment Company
S3 Investment Company Announces Link Change for Wavelit.com CEO Interview and Initiation of Market Communications Program
Tuesday March 27, 9:14 am ET
TEMECULA, CA--(MARKET WIRE)--Mar 27, 2007 -- S3 Investment Company, Inc. (Other OTC:SIVC.PK - News), a holding company with two subsidiaries doing business in the China market, today announced that there is a new location for the video interview featuring chairman and chief executive officer Jim Bickel on Wavelit.com. The interview can still be seen at http://www.wavelit.com/index.asp?ch=Business&sh=wavelitnews , but there is now a link labeled "Jim Bickel" below the main interview that provides access to the video file.
Mr. Bickel's interview covers information regarding the subsidiary businesses of S3, SINO UJE and Redwood Capital, and discusses S3's strategic vision and plans for expansion in the China market.
In addition to the interview, the company expects to begin a renewed market communications program in the coming weeks to keep shareholders and the broader public markets aware of the activities of S3 and its subsidiary businesses operating in China.
"We look forward to re-initiating our dialogue with S3 shareholders and providing new information on the growth of S3's subsidiaries in the bourgeoning China market," commented Mr. Bickel
To sign up to receive information by email directly from S3 Investment Company when new press releases, investor newsletters, SEC filings or other information is disclosed, please visit http://www.s3investments.com/investors.
About Wavelit.com
Wavelit.com is a wholly owned subsidiary of Infotec Business Systems, Inc., a leading global provider of video streaming media and digital IP content.
About S3 Investment Company
S3 Investment Company, Inc. (http://www.s3investments.com) is a holding company with two subsidiaries doing business in the China market. S3 holds a 100% equity interest in Redwood Capital (http://www.redwoodcapinc.com), which assists private Chinese companies in accessing U.S. capital markets by utilizing a network of investment banking relationships, and a 51% equity interest in SINO UJE (http://www.sinouje.com), a non-stocking distributor of medical and industrial high-tech products to markets throughout China. SINO UJE has been granted exclusive distribution rights in China to medical and industrial products manufactured by leading companies in Europe, North America and Japan. These products are marketed to end-users, including major Chinese hospitals and private companies in a variety of fields, as well as original equipment manufacturers (OEMs), such as Phillips, Siemens and GE, that package the products with their technologies.
Any statements contained herein related to future events are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on forward-looking statements. S3 Investment Company, Inc. undertakes no obligation to update any such statements to reflect actual events.
Contact:
Contact:
Gemini Financial Communications for S3 Investment Company
A. Beyer
(951) 587-8072
Email Contact
Magellan Financial Media Group
Matt Boles
317-867-2839
Email Contact
--------------------------------------------------------------------------------
Source: S3 Investment Company
You nailed it dat. Everything in your post is absolutely correct.
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:
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:
Cant argue with that myth. gl
I believe this is a viable company that is in its infancy and is positioning itself well. Its just taking a little longer than we had hoped which is par for the course for any business, particularly one that is doing business in China. S3's involvement in Redwood and Sino has not really been that long and they were still dealing with some problems they inherited when they took over the company. So we just have a different viewpoint on this. But good luck with your dumping. Try a little fiber it might help lol.
Why would they not announce the new Sino product line now? Because they want to make a big splash at a conference where there will be alot of attendees and alot of eyes on the company. Companies do this all of the time. Its called getting the right bang for your buck.
Why wont they announce the two Redwood signees? Because MC&F is running the PR campaign and has probably advised them against it for now.
As far as promoting the company. They are just now entering the promotion phase. The video was step one in the process. Its only been a few weeks. Prior to that they werent really attempting to prmote the company or the share price imho. So it is good to see that they have now turned the corner in that regard and would like to see the share price higher. Sorry that you dont think Jim should be up for an Academy Award anytime soon. LOL
What questions did it raise because I didnt see it that way. I would prefer that we were on the otcbb but plenty of pink sheets stocks have moved up big so I dont see why this one cant. We just need some actual news from the company and I do believe that will occur.
As for why the price remains stagnant. The interview was not seen by many investors and was too jumbled in its presentation. They probably should have waited a month before doing it so they could announce the new Sino product line. It would have added a little more sizzle to the interview.
I dont see why they would have attempted to promote the stock if there was any bad news on the way. That doesnt make sense. So imho the bad news is behind us and they are getting their ducks in a row.
Why do you say. "as far as the interview goes good luck to all of us we will need it"?
I thought the content of the interview was good. They have signed two new clients for Redwood. They are announcing a new line of products for Sino at the farm show in April. And the structuring of the company is complete.
The interview format itself left alot to be desired. And Mr. Bickel should have looked into the camera more and explained things in a little more concise manner. But imho the content was fine. Jim is a businessman not a PR guy and it showed. It was not the most polished or enthusiastic interview I have ever seen (and thats putting it mildly) but imho that goes more to style than the substance of the interview. It was too hard to follow. But the company seems like it is moving in the right direction albeit not as quickly as we would like.
S3 Investment Company Announces CEO Interview With Wavelit.com
Tuesday March 13, 9:10 am ET
TEMECULA, CA--(MARKET WIRE)--Mar 13, 2007 -- S3 Investment Company, Inc. (Other OTC:SIVC.PK - News), a holding company with two subsidiaries doing business in the China market, today announced chairman and chief executive officer Jim Bickel is featured in a video interview on Wavelit.com.
The interview can be seen at http://www.wavelit.com/index.asp?ch=Business&sh=wavelitnews
In the interview, Mr. Bickel answers questions regarding the subsidiary businesses of S3, SINO UJE and Redwood Capital, and discusses S3's strategic vision and plans for expansion in the China market.
To sign up to receive information by email directly from S3 Investment Company when new press releases, investor newsletters, SEC filings or other information is disclosed, please visit http://www.s3investments.com/ealert.php.
About Wavelit.com
Wavelit.com is a wholly owned subsidiary of Infotec Business Systems, Inc., a leading global provider of video streaming media and digital IP content.
About S3 Investment Company
S3 Investment Company, Inc. (http://www.s3investments.com) is a holding company with two subsidiaries doing business in the China market. S3 holds a 100% equity interest in Redwood Capital (http://www.redwoodcapinc.com), which assists private Chinese companies in accessing U.S. capital markets by utilizing a network of investment banking relationships, and a 51% equity interest in SINO UJE (http://www.sinouje.com), a non-stocking distributor of medical and industrial high-tech products to markets throughout China. SINO UJE has been granted exclusive distribution rights in China to medical and industrial products manufactured by leading companies in Europe, North America and Japan. These products are marketed to end-users, including major Chinese hospitals and private companies in a variety of fields, as well as original equipment manufacturers (OEMs), such as Phillips, Siemens and GE, that package the products with their technologies.
Any statements contained herein related to future events are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on forward-looking statements. S3 Investment Company, Inc. undertakes no obligation to update any such statements to reflect actual events.
Contact:
Contact:
Gemini Financial Communications for S3 Investment Company
A. Beyer
(951) 587-8072
Email Contact
Magellan Financial Media Group
Matt Boles
317-867-2839
Email Contact
S3 Investment Company Announces CEO Interview With Wavelit.com
Tuesday March 13, 9:10 am ET
TEMECULA, CA--(MARKET WIRE)--Mar 13, 2007 -- S3 Investment Company, Inc. (Other OTC:SIVC.PK - News), a holding company with two subsidiaries doing business in the China market, today announced chairman and chief executive officer Jim Bickel is featured in a video interview on Wavelit.com.
The interview can be seen at http://www.wavelit.com/index.asp?ch=Business&sh=wavelitnews
In the interview, Mr. Bickel answers questions regarding the subsidiary businesses of S3, SINO UJE and Redwood Capital, and discusses S3's strategic vision and plans for expansion in the China market.
To sign up to receive information by email directly from S3 Investment Company when new press releases, investor newsletters, SEC filings or other information is disclosed, please visit http://www.s3investments.com/ealert.php.
About Wavelit.com
Wavelit.com is a wholly owned subsidiary of Infotec Business Systems, Inc., a leading global provider of video streaming media and digital IP content.
About S3 Investment Company
S3 Investment Company, Inc. (http://www.s3investments.com) is a holding company with two subsidiaries doing business in the China market. S3 holds a 100% equity interest in Redwood Capital (http://www.redwoodcapinc.com), which assists private Chinese companies in accessing U.S. capital markets by utilizing a network of investment banking relationships, and a 51% equity interest in SINO UJE (http://www.sinouje.com), a non-stocking distributor of medical and industrial high-tech products to markets throughout China. SINO UJE has been granted exclusive distribution rights in China to medical and industrial products manufactured by leading companies in Europe, North America and Japan. These products are marketed to end-users, including major Chinese hospitals and private companies in a variety of fields, as well as original equipment manufacturers (OEMs), such as Phillips, Siemens and GE, that package the products with their technologies.
Any statements contained herein related to future events are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on forward-looking statements. S3 Investment Company, Inc. undertakes no obligation to update any such statements to reflect actual events.
I believe what nwtf says all the way. I also believe that IR was probably being conservative so hopefully we will get drilling in 2007. I guess we will find out soon enough. At least one would hope.
OT: Sloth I just clicked on the link and it took about 30 seconds after the oreo commercial ended but it worked. Maybe it is the settings on your computer.
Try,
The drilling has been hard to pin down. That is why there have been so many false predictions. All companies are dealing with a rig shortage. Especially in West Africa. Maybe a rig of opportunity will be found earlier. Maybe the Anadarko IR is told to be more conservative in his timelines. I would imagine he is. So I dont think it should be surprising what NWTF said. Anadarko has changed the date of drilling several times so who really knows.
We do have blocks 5,6, and 9 to look forward to (I would think). And the STP EEZ selections should take place this year. (I would think) And there are buyin deals that might occur or pop up at any time. (I would think) And there is a chance with Mr. Ledbetter that they will look at smaller properties that they can expoit more quickly. So even in the event that no drilling takes place in 07 there are things to look forward to.
I believe what he said. But I have not called to verify myself. If you dont believe him that is your perogative. Markgovol said that IR tends to be conservative. So maybe that is what occurred.
Who are you reporting to the authorities? The guy that said the JDZ would be active from January thru March? Well NWTF wasnt the one who said that to the best of my knowledge. Personally I dont want anyone reported. Its a message board. Do your own DD to verify board information.
Here you go again. Why not focus on the positive? The deepwater drilling environment in the Gulf of Guinea is very favorable for success. Much better then the Gulf of Mexico. And you dont have to worry about Hurricanes. And the oil is light sweet crude, the finest in the world. They will do fine.
Key takeaway points from the interview IMHO
1) Have already passed the investment and structuring phase of the company.
2) A new product line will be introduced for Sino at the China Farm show in April. (Abaxis?)
3) Two new clients have been signed under contract with Redwood to be reverse merged later this year. As well as a nice pipeline which will result in further announcements.
S3 Investment Company Announces CEO Interview With Wavelit.com
Tuesday March 13, 9:10 am ET
TEMECULA, CA--(MARKET WIRE)--Mar 13, 2007 -- S3 Investment Company, Inc. (Other OTC:SIVC.PK - News), a holding company with two subsidiaries doing business in the China market, today announced chairman and chief executive officer Jim Bickel is featured in a video interview on Wavelit.com.
The interview can be seen at http://www.wavelit.com/index.asp?ch=Business&sh=wavelitnews
In the interview, Mr. Bickel answers questions regarding the subsidiary businesses of S3, SINO UJE and Redwood Capital, and discusses S3's strategic vision and plans for expansion in the China market.
To sign up to receive information by email directly from S3 Investment Company when new press releases, investor newsletters, SEC filings or other information is disclosed, please visit http://www.s3investments.com/ealert.php.
About Wavelit.com
Wavelit.com is a wholly owned subsidiary of Infotec Business Systems, Inc., a leading global provider of video streaming media and digital IP content.
About S3 Investment Company
S3 Investment Company, Inc. (http://www.s3investments.com) is a holding company with two subsidiaries doing business in the China market. S3 holds a 100% equity interest in Redwood Capital (http://www.redwoodcapinc.com), which assists private Chinese companies in accessing U.S. capital markets by utilizing a network of investment banking relationships, and a 51% equity interest in SINO UJE (http://www.sinouje.com), a non-stocking distributor of medical and industrial high-tech products to markets throughout China. SINO UJE has been granted exclusive distribution rights in China to medical and industrial products manufactured by leading companies in Europe, North America and Japan. These products are marketed to end-users, including major Chinese hospitals and private companies in a variety of fields, as well as original equipment manufacturers (OEMs), such as Phillips, Siemens and GE, that package the products with their technologies.
Any statements contained herein related to future events are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on forward-looking statements. S3 Investment Company, Inc. undertakes no obligation to update any such statements to reflect actual events.
Contact:
Contact:
Gemini Financial Communications for S3 Investment Company
A. Beyer
(951) 587-8072
Email Contact
Magellan Financial Media Group
Matt Boles
317-867-2839
Email Contact