SmartHeat Inc. Announces Third Quarter 2009 Financial Results, Affirms Full Year Earnings Guidance and Anticipates Growth Moment

Name	Symbol	Market	Type
Touchstone Climate Transition ETF	AMEX:HEAT	AMEX	Exchange Traded Fund

	Price Change	% Change	Price	High Price	Low Price	Open Price	Traded	Last Trade
	0.00	0.00%	25.6219	25.6219	25.6219	25.6219	0	17:43:03

Touchstone Climate Trans... (AMEX:HEAT)
Historical Stock Chart

From Dec 2019 to Dec 2024

Click Here for more Touchstone Climate Trans... Charts.

-- Revenues increased 83% to $37.8 million from $20.7 million in 3Q08 -- Net income increased 105% to $8.9 million from $4.3 million in 3Q08 -- Earnings Per Share increased 98% to $0.36 from $0.18 in 3Q08 -- Affirms 2009 earnings guidance of $80 million in revenue and $15.5 million in net income -- Successfully completed $75 million financing -- Positive signs of economic growth in China, anticipates earnings growth momentum to continue into 2010 NEW YORK, Nov. 16 /PRNewswire-Asia/ -- SmartHeat Inc. (NASDAQ:HEAT) (website: http://www.smartheatinc.com/), a market leader in China's clean technology, energy savings industry today announced record financial results for the third quarter ended September 30, 2009. SmartHeat's products significantly reduce heat energy costs, increase energy efficiency and reduce air pollution. James Jun Wang, Chairman & CEO of SmartHeat, commented, "We are excited to announce a quarter of strong financial performance. Our third quarter financial results are the result of a favorable market environment for our industry and our management team diligently executing on our growth strategies. China's energy savings industry is supported by the Chinese government as a sector that is receiving significant funding through government initiatives and the Chinese stimulus package. Because of this support, China's heat energy savings industry has not been as negatively impacted by the current global economic slowdown. "The weakened economy has increased customer awareness of utilizing energy saving equipment from which we are a primary beneficiary. SmartHeat is well positioned to potentially reap significant benefits from the world's transition to cleaner technologies and energy saving equipment," concluded Mr. Wang. Third Quarter Financial Performance Revenues were $37.8 million in the third quarter of 2009 compared to $20.7 million in the same period last year, an 83% increase. The significant revenue increase was due significant sales growth across all product lines as a result of: Increasing our traditional heat supply sales as a result growth in the China domestic infrastructure construction industry, accounting for $24.22 million or 43% of total sales, Adding new customers in the chemical, engineering, electric power, metal smelting industries, accounting for $19.37 million or 34% of our total sales, Rising heat meter sales, accounting for $7.8 million or approximately 14% of total sales. Gross profit was $13.1 million in the third quarter of 2009 compared to $7.4 million in the same period last year, a 77% increase. Gross profit increased primarily due to the increased sales. Operating expenses were $2.5 million in the third quarter of 2009 compared to $2.1 million in the same period last year, an 18% increase. Operating expenses increased in the quarter because of the higher general and administrative expenses associated with an increase in expenses incurred to expand our growing sales and due to our recent financing activities. Operating income was $10.7 million in the third quarter of 2009 compared to $5.4 million in the same period last year, a 100% increase. Operating income increased as a result of continued economies of scale in production costs combined with the rapid growth in revenues and improved operating efficiency. Net income was $8.9 million in the third quarter of 2009 compared to $4.3 million in the same period last year, a 105% increase. Earnings per share were $0.36 in the third quarter of 2009 compared to $0.18 in the same period last year. In addition to the increased revenue and income from operations, net income and EPS both benefited from a decrease in the tax rate during the quarter from 18.5% to 15.5%. Affirms Full Year 2009 Earnings Guidance SmartHeat re-affirms its full year 2009 earnings guidance of approximately $15.5 million in net income and approximately $80 million in revenues compared to $6.3 million in net income and $32.7 million in revenues in 2008. Business Outlook Mr. Wang commented, "We continue to experience increasing order flow and demand from our existing and new customers for our energy savings equipment. Not only has demand for our products increased, but our production capabilities and product offerings have increased with recent acquisitions. "In the third quarter the Company completed a $75 million equity offering. The net proceeds from the offering will be used for general corporate purposes, including the continued expansion of our product offerings, capital expenditures, and to meet growing working capital needs to continue our rapid growth. We believe the additional working capital will also be used by the company to bid on additional projects which are larger and more profitable, which we believe to be strategic fits to our long term business plan. "We believe SmartHeat's earnings growth momentum will continue well into 2010 as we anticipate a broader domestic economic expansion in China next year. We are optimistic that SmartHeat is on track to achieve solid fourth quarter earnings growth and another year of rapid growth in 2010 for our growing list of individual and institutional shareholders," Mr Wang concluded. About SmartHeat Inc. Founded by James Jun Wang, a former executive at Honeywell China, SmartHeat Inc. (http://www.smartheatinc.com/) is a NASDAQ Global Market listed (NASDAQ:HEAT) US company with its primary operations in China. SmartHeat is a market leader in China's clean technology energy savings industry. SmartHeat manufactures standard plate heat exchangers (PHEs), custom plate heat exchanger units (PHE Units) and heat meters. SmartHeat's products directly address air pollution problems in China where massive coal burning for cooking and heating purposes is the only source of economical heat energy in China. With broad product applications, SmartHeat's products significantly reduce heating costs, increase energy use and reduce air pollution. SmartHeat's customers include global Fortune 500 companies as well as municipalities and industrial/residential users. China's heat transfer market is currently estimated at approximately $2.4 billion with double-digit annual growth according to China Heating Association. Safe Harbor Statement All statements in this press release that are not historical are forward- looking statements made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. There can be no assurance that actual results will not differ from the company's expectations. SmartHeat's actual results may differ from its projections. Further, preliminary results are subject to normal year-end adjustments. You are cautioned not to place undue reliance on any forward-looking statements in this press release as they reflect SmartHeat's current expectations with respect to future events and are subject to risks and uncertainties that may cause actual results to differ materially from those contemplated. Potential risks and uncertainties include, but are not limited to, the risks described in SmartHeat's filings with the Securities and Exchange Commission. Contact Corporate Communications: Ms. Jane Ai, Corporate Secretary SmartHeat Inc. Tel: 011-86-24-25363366 Email: SMARTHEAT, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS SEPTEMBER 30, 2009 DECEMBER 31, 2008 (UNAUDITED) ASSETS CURRENT ASSETS Cash & cash equivalents $60,294,695 $1,435,212 Restricted cash 1,043,524 462,048 Accounts receivable, net 20,276,792 11,390,169 Retentions receivable 553,105 290,852 Advances to suppliers 3,474,936 412,524 Other receivables, prepayments and deposits 3,282,014 698,834 Inventories 14,394,162 6,107,583 Note receivable - bank acceptance 70,655 14,631 ------ ------ Total current assets 103,389,881 20,811,853 NON-CURRENT ASSETS Restricted cash 19,185 219,472 Accounts receivable, net 582,375 310,810 Retentions receivable 2,309,852 166,912 Construction in progress 60,230 - Intangible assets, net 4,122,844 1,155,131 Property and equipment, net 7,578,356 2,436,553 --------- --------- Total noncurrent assets 14,672,842 4,288,878 ------------ ----------- TOTAL ASSETS $118,062,723 $25,100,731 ============ =========== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $6,030,827 $1,210,906 Unearned revenue 2,084,036 850,408 Notes payable - bank acceptance 1,000,543 - Taxes payable 2,147,376 1,327,775 Accrued liabilities and other payables 7,071,473 1,330,812 Due to minority shareholder - 5,303 Loans payable 5,564,504 2,443,450 --------- --------- Total current liabilities 23,898,759 7,168,654 DEFERRED TAX LIABILITY 15,519 38,854 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY Common stock, $0.001 par value; 75,000,000 shares authorized, 32,756,575 and 24,179,900 shares issued and outstanding at September 30, 2009 and December 31, 2008, respectively 32,757 24,180 Paid in capital 71,679,770 8,223,453 Statutory reserve 2,689,432 1,150,542 Accumulated other comprehensive income 1,255,603 984,629 Retained earnings 18,490,884 7,510,419 ---------- --------- Total stockholders' equity 94,148,446 17,893,223 ------------ ----------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $118,062,723 $25,100,731 ============ =========== SMARTHEAT, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME (UNAUDITED) FOR THE NINE MONTHS FOR THE THREE MONTHS ENDED SEPTEMBER 30, ENDED SEPTEMBER 30, 2009 2008 2009 2008 ---- ---- ---- ---- Net sales $56,541,795 $29,345,571 $37,835,897 $20,708,288 Cost of goods sold 36,562,363 19,502,070 24,687,460 13,273,914 ---------- ---------- ---------- ---------- Gross profit 19,979,433 9,843,501 13,148,438 7,434,374 Operating expenses Selling expenses 2,325,471 1,664,882 1,165,939 1,056,854 General and administrative expenses 2,626,775 1,470,577 1,286,643 1,024,107 --------- --------- --------- --------- Total operating expenses 4,952,245 3,135,459 2,452,581 2,080,961 --------- --------- --------- --------- Income from operations 15,027,187 6,708,042 10,695,856 5,353,413 Non-operating income (expenses) Interest income 145,839 318,070 65,418 57,387 Interest expense (209,462) (257,116) (91,850) (94,076) Subsidy income 21,443 16,141 (13,897) 7,000 Financial expense (222,625) - (222,625) - Other expense (13,676) 11,199 (13,676) Other income 61,644 9,744 60,675 1,454 ------ ----- ------ ----- Total non-operating income (expenses) (203,162) 73,163 (191,081) (41,911) Income before income tax 14,824,026 6,781,205 10,504,776 5,311,502 Income tax expense 2,304,672 1,246,935 1,624,240 980,907 --------- --------- --------- ------- Net income from operations 12,519,354 5,534,270 8,880,536 4,330,595 Less: net income attributable to noncontrolling interest - 5,934 - 5,934 --- ----- --- ----- Net income 12,519,354 5,528,336 8,880,536 4,324,661 Other comprehensive item Foreign currency translation 270,399 578,670 257,256 167,774 ------- ------- ------- ------- Comprehensive Income $12,789,753 6,107,006 $9,137,792 $4,492,435 =========== ========= ========== ========== Basic weighted average shares outstanding 24,430,806 21,503,588 24,924,435 24,055,878 ---------- ---------- ---------- ---------- Diluted weighted average shares outstanding 24,513,092 21,503,647 25,010,735 24,056,054 ---------- ---------- ---------- ---------- Basic earnings per share $0.51 $0.26 $0.36 $0.18 ===== ===== ===== ===== Diluted earnings per share $0.51 $0.26 $0.36 $0.18 ===== ===== ===== ===== SMARTHEAT, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2009 2008 ---- ---- CASH FLOWS FROM OPERATING ACTIVITIES: Net income including noncontrolling interest $12,519,354 $5,534,270 Adjustments to reconcile net income including noncontrolling interest to net cash used in operating activities: Depreciation and amortization 409,371 173,821 Unearned interest on accounts receivable 195,901 (71,804) Stock option compensation expense 1,755 1,270 Decrease in deferred tax liability (23,357) - (Increase) decrease in current assets: Accounts receivable (9,305,812) (4,995,840) Retentions receivable (2,403,726) 107,279 Advances to suppliers (3,051,902) 320,260 Other receivables, prepayments and deposits 485,060 (2,346,526) Inventories (8,277,813) 118,223 Note receivable (55,986) (201,118) Increase (decrease) in current liabilities: Accounts payable 5,782,299 928,337 Unearned revenue 1,232,371 (1,581,803) Taxes payable 818,141 864,934 Accrued liabilities and other payables (4,450,011) (266,072) ---------- -------- Net cash used in operating activities (6,124,354) (1,414,769) ---------- ---------- CASH FLOWS FROM INVESTING ACTIVITIES: Restricted cash (380,457) (101,542) Construction in progress (60,203) (83,027) Acquisition of property & equipment (3,610,566) (287,398) ---------- -------- Net cash used in investing activities (4,051,225) (471,967) ---------- -------- CASH FLOWS FROM FINANCING ACTIVITIES: Due to minority shareholders - (660) Due from / (to) shareholder - (587,644) Short term loans 12,117,636 - Repayment of short term loans (9,216,986) (1,361,113) Issuance of common stock 66,138,390 5,100,000 ---------- --------- Net cash provided by financing activities 69,039,040 3,150,583 ---------- --------- EFFECT OF EXCHANGE RATE CHANGE ON CASH & CASH EQUIVALENTS (3,978) (9,482) NET INCREASE IN CASH & CASH EQUIVALENTS 58,859,482 1,254,365 CASH & CASH EQUIVALENTS, BEGINNING OF PERIOD 1,435,213 448,573 --------- ------- CASH & CASH EQUIVALENTS, END OF PERIOD $60,294,695 $1,702,938 =========== ========== Supplemental Cash flow data: Income tax paid $1,272,797 $426,809 ========== ======== Interest paid $219,061 $201,269 ======== ======== DATASOURCE: SmartHeat Inc. CONTACT: Corporate Communications, Ms. Jane Ai, Corporate Secretary, of SmartHeat Inc., Tel: 011-86-24-25363366, Web Site: http://www.smartheatinc.com/

Market Data

News

Trading Tools

Markets

Discover

Hot Features

Follow Feed

Options Flow

Monitor

HEAT Touchstone Climate Transition ETF