talk about shitty earnings. these guys suck IMO. this will be a nice swing trade in a few weeks nothing more
China Architectural Engineering Announces First Quarter 2010 Financial Results
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Companies:China Architectural Engineering, Inc.
Topics:EarningsIndustrial Goods
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Press Release Source: China Architectural Engineering, Inc. On Wednesday May 19, 2010, 7:30 am EDT
ZHUHAI, China and NEW YORK, May 19 /PRNewswire-Asia-FirstCall/ -- China Architectural Engineering, Inc. ("CAE" or the "Company") (Nasdaq:CAEI - News), a leader in the design, engineering, fabrication and installation of high-end building envelope systems, today announced its financial results for the first quarter ended March 31, 2010.
First Quarter 2010 Results
Revenues from contracts for the first quarter of 2010 were $11.5 million, versus $36.3 million in first quarter of 2009, as most of the international projects were completed in 2009, such as the Dubai Metro Red Line, Guangdong Science City Headquarter Phase I, and Doha High Rise Office Tower, and the Company ceased to conduct international projects. Gross profit was $2.3 million, compared to $8.2 million for the same period last year. The gross margin for the first quarter of 2010 was 20.3% versus 22.5% for the same time of prior year, due to increases in raw material, labor and administrative costs in the domestic market of China.
Selling, general and administrative expenses were $4.2 million for the first quarter of 2010, compared with $6.0 million a year ago. The decrease was primarily due to the revenue decrease. Payroll and related costs accounted for approximately 71.8% of total operating expenses, including a $2.0 million charge related to stock grants made in the first quarter of 2010. Consequently, operating loss was $1.9 million for the first quarter of 2010, versus the income from operation of $2.2 million a year ago.
Interest expenses and finance expenses were $1.6 million for the first quarter of 2010, an increase of $0.3 million from $1.3 million a year ago. The increase was mainly due to the use of short-term bank loans.
Income tax expense was $9,575 for the first three months of 2010 at an effective tax rate of -0.3%, compared with nil in taxes for the same period of 2009. The primary reason for the decrease was due to losses incurred by the operations of the Company as still suffering from the effects of the recent international financial crises.
Net loss was $3.5 million, or a net loss of $0.06 per fully diluted share, for the three months ended March 31, 2010, compared to net income of $0.9 million, or $0.02 earning per diluted share, for the same period in 2009.
Liquidity and Capital Resources
The Company had an unrestricted cash balance of approximately $0.5 million as of March 31, 2010, as compared to $0.7 million as of December 31, 2009. Net cash from operating activities was $6.9 million for the first quarter of 2010, compared to net cash from operating activities of $4.3 million for the first quarter of 2009.
Business Outlook
