Highlights of Second Quarter 2011 Financials
Revenues for the second quarter of 2011 increased 131% to $13.5 million in 2011 from $5.86 million for the same period in 2010.
Gross profit increased 272% to $2.95 million in the second quarter of 2011 from $0.79 million for the same period in 2010.
Net income for the quarter ended June 30, 2011 increased 424% to $1.98 million in 2011 from $0.37 million for the same period in 2010.
Earnings per share were at $0.04 for the three months ended June 30, 2011, compared to $0.01 for the same period in 2010.
EPS of $0.04 for third consecutive quarter.
Weighted average basic shares outstanding for the second quarter in 2011 were 50,608,077, a 3% increase, as compared to 49,056,223 for the same period in 2010.
Sales for the three months ended June 30, 2011 totaled $13,500,872, an increase of $7,645,793 or 131%, compared to $5,855,079 for the three months ended June 30, 2010. The increase in sales was primarily attributed to sales of two products; N220-W, the Company's wet process product and naphthalene oil, a byproduct of the manufacturing process. Together, these products accounted for approximately 72% of total increase in sales in the three months ended June 30, 2011.
During the three months ended June 30, 2011, the Company sold 5,700 metric tons of N220-W, generating revenue of $6,295,254, and 510 metric tons naphthalene oil generating $459,171 in revenue for the three months ended June 30, 2011.
The remaining 28% increase in sales was attributable to the increased unit sales price for its carbon black products. The average unit sales price for Asia Carbon's carbon black products was $1,027 per metric ton during the second quarter of 2011, an increase of $204 per ton, or 25%, from $823 per ton during the second quarter of 2010.
Gross profits for the three months ended June 30, 2011 were $2,948,578, an increase of $2,155,531, or 272%, compared to $793,047 in the comparable period of 2010. The gross profit margin was 22% of revenues for the quarter, as compared to 14% for the second quarter of 2010. The increase is attributable mainly to the superior margins of the wet production line and naphthalene byproduct.
The Company's net income was $1,981,440 for the three months ended June 30, 2011, an increase of $1,603,512, or 424%, compared to $377,928 in the comparable period of 2010.
Yao Guoyun, Asia Carbon's Chairman of the Board and Chief Executive Officer, commented, "Asia Carbon sees continued growth in demand for our products, particularly N220-W, our wet-process product. We anticipate this trend will continue for the foreseeable future, and are working diligently to keep up with this demand."
