CHDT: CHDT Corporation Reports 2010 Earnings
Date : 03/14/2011 @ 4:30PM
Source : MarketWire
Stock : CHDT Corporation (CHDO)
Quote : 0.008 0.0 (0.00%) @ 1:26PM
CHDT Corporation Reports 2010 Earnings
CHDT Corporation (OTCBB: CHDO), a Florida Corporation with operating subsidiaries focused on designing and manufacturing consumer lighting products for North America and Latin American retail markets, reports revenues of $5,287,261 and a narrowing of losses for 2010. The Company finished the year with a record backlog of $2,600,000, setting the table for a record first quarter.
For the year ending December 31, 2010, the net loss was approximately $739,000 as compared to a net loss of $1,099,000 for 2009, a loss reduction of $360,000 or 32.8%. For the 4th quarter, ending December 31, 2010, the Company had a net loss of approximately $43,000 compared to a net loss of $425,000 in the same quarter in 2009. This was an improvement of $382,000 or 89.8% reduction in loss compared to the same period in 2009.
Total Net Revenues: For the year ended December 31, 2010 and 2009, the Company had a total net sales of approximately $5,287,261 versus $6,161,000, respectively, for a decrease of $873,739 which represents a decrease in revenue of 14.2%
Cost of Sales: For the year ended December 31, 2010 and 2009, cost of sales were approximately $3,675,000 and $4,350,000 respectively. This represents 69.5% and 70.6% respectively of total Net Revenue. Despite rising component and labor costs in China, our overall material costs have remained steady during the year. This was achieved through strategic materials buying and ongoing negotiations with our factories.
Gross Profit: For the year ended December 31, 2010, gross profit was approximately $1,612,000, a reduction of approximately $199,000 or 10.9% from 2009 gross profit of $1,811,000. Gross profit as a percentage of net sales was 30.5% for the year compared to 29.4% for 2009, an improvement of 1.1%. Our larger customers are increasing purchases on a direct import basis. The gross margin percentages are lower in this selling scenario but the Company's expenses are also reduced, as the customer is responsible for related expenses such as freight, duties and handling costs.
Operating Expenses: Were approximately $2,092,000 in 2010 as compared to $2,645,000 in 2009, a net reduction of $553,000 or 20.9% as a result of an expense reduction program initiated in 2010.
"2010 was a pivotal year for our Company. We are finished with discontinuing, non-performing product lines and focusing on our core lighting business, which has shown the ability to increase market share while maintaining good margins. Our 2010 record year-end order backlog has given us a head start on what should be our strongest year to date," said Stewart Wallach, CEO of CHDT Corporation.
The Company has scheduled a conference call for Wednesday, March 16, 2011 at 11:00 a.m. EDT. Shareholders are to call in at 1-800-791-2345 with participant code 45101#.
About Capstone Industries, Inc.
For more than a decade, the South Florida based Company, Capstone Industries, has specialized in the design, production, and distribution of consumer products as a supplier to major retail operations throughout North America and Latin America. Capstone Industries is committed to the development and distribution of unique and inventive products to a variety of channels including bookstore chains, convenience stores, drug & grocery, electronics, hardware, home improvement, internet, mail order, mass market, office supply, specialty, and warehouse clubs.
About CHDT Corporation
CHDT Corporation (www.chdtcorp.com) is a public holding Company that engages, through its wholly owned subsidiaries, in the development, manufacturing, logistics, and distribution of consumer products to retailers and distributors throughout North America and Latin America. See www.chdtcorp.com for more information about the Company and www.capstoneindustries.com for information on our current product offerings. Reference of URLs in this press release does not incorporate said URLs or any of their contents in this press release.
FORWARD-LOOKING STATEMENTS: This press release, including the financial information that follows, contains "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995, as amended. These statements are based on the Company's and its subsidiaries' current expectations and involve risks and uncertainties, which may cause results to differ materially from those set forth in the statements. CHDT undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Forward-looking statements in this press release and risks associated with any investment in CHDT, which is a small business concern and a "penny stock Company" and, as such, a highly risky investment suitable for only those who can afford to lose such investment, should be evaluated together with the many uncertainties that affect CHDT's business, particularly those mentioned in the cautionary statements in current and future CHDT's SEC Filings.
