Ossen Innovation Announces First Quarter 2014 Financial Results
"I am pleased with Ossen's significant increase in revenue during this quarter," said Dr.
Financial Summary
(in millions ex- EPS) |
Q1 2014 |
Q1 2013 |
Chg. |
Revenue |
$28.0 |
$14.6 |
+92% |
Gross Profit |
$2.6 |
$1.7 |
+56% |
Net Income* |
$0.5 |
$0.1 |
+550% |
EPS |
$0.02 |
$0.004 |
+400% |
Shares Outstanding |
19.9 |
19.9 |
0% |
*Net income attributable to Ossen Innovation Co., Ltd. |
|||
First Quarter Ended
Revenue for the three months ended
Gross profit was
Selling expenses increased by 146% to
Net income attributable to
Balance Sheet and Cash Flows
Ossen had approximately
The Company experienced cash outflows from operations of
Cash flow used in financing activities was
Business Updates and Outlook
On
We note several positive developments in the first part of 2014. Specifically:
- In
February 2014 , Ossen was awarded the national title of 'outstanding foreign-invested enterprise.' This prestigious recognition is awarded by theChina Association of Enterprises with Foreign Investment, a division of theMinistry of Commerce of the PRC . Separately, Ossen's two new products, 15.24 mm 1860 MPa coated steel strand and 7.0 mm 1670 MPa high performance zinc coated steel wire, received key new products identification from theJiangxi Provincial Department of Science and Technology . - In
March 2014 , we announced that the Company's Jiujiang subsidiary,Ossen (Jiujiang) Steel Wire & Cable Co., Ltd. , was recently honored as an 'Innovative Enterprise' inJiangxi province. This recognition is awarded by theJiangxi provincial government. In addition,Ossen (Jiujiang) Steel Wire & Cable Co., Ltd. was recognized as a 'First Class Export Enterprise' inJiangxi province by theJiangxi government agency. - In
June 2014 , we received new sales contracts to supply our coated steel wire for cables used for the construction of five bridges inSouth Korea , including the Saecheonnyeon bridge, Jangja bridge, Bubal bridge, Daedeok 2nd bridge and Gujeuk bridge. Product delivery is expected inJune 2014 . - In
June 2014 ,Ossen (Jiujiang) Steel Wire & Cable Co., Ltd. applied for Major Scientific and Technological Innovation Title in Jiujiang City for the year 2014. It is to develop 5mm series zinc-aluminum rare earth coated bridge cables.Currently Science and Technology Bureau of Jiujiang City has recommended this project toScience and Technology Department of Jiangxi province. If this project is recognized as Major Scientific and Technological Innovation by theScience and Technology Department of Jiangxi province, Ossen (Jiujiang) will receive tax incentives and subsidy from the government.
Conference Call
To attend the call, please use the information below for either dial-in access or webcast access. When prompted on dial-in, ask for "Ossen Innovation First Quarter 2014 Conference Call" or be prepared to utilize the conference ID.
Conference Call |
Ossen Innovation First Quarter 2014 Conference Call |
Date: |
Monday, June 30, 2014 |
Time: |
8:30 am Eastern Time, US |
Conference Line Dial-In (U.S.): |
+1-845-675-0437 |
International Toll Free: |
United States: +1-866-519-4004 |
Conference ID: |
64623766 |
Please dial in at least 10 minutes before the call to ensure timely participation. A playback will be available through
This call is being webcast and can be accessed by clicking on this link: http://www.media-server.com/m/p/rxairs2g
About
Safe Harbor Statements
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from those projected or anticipated, including risks outlined in the Company's public filings with the
For more information, please contact:
Email: feng.peng@ossencorp.com
Phone: +86 (21) 6888-8886
Web: www.osseninnovation.com
Investor Relations
Phone: +1-347-850-7098
Email: ir@ossencorp.com
OSSEN INNOVATION CO., LTD. AND SUBSIDIARIES |
|||||
CONSOLIDATED BALANCE SHEETS |
|||||
March 31, |
December 31, |
||||
2014 |
2013 |
||||
(Unaudited) |
|||||
ASSETS |
|||||
Current Assets |
|||||
Cash and cash equivalents |
$ |
762,242 |
$ |
1,139,450 |
|
Restricted cash |
25,683,669 |
31,783,670 |
|||
Notes receivable – bank acceptance notes |
4,867,601 |
2,421,581 |
|||
Accounts receivable, net of allowance for doubtful accounts of |
44,208,748 |
48,200,076 |
|||
Inventories |
33,863,234 |
18,750,770 |
|||
Advance to suppliers |
54,426,353 |
50,614,815 |
|||
Other current assets |
2,633,153 |
3,447,886 |
|||
Notes receivable from related party – bank acceptance notes |
- |
12,915,099 |
|||
Total Current Assets |
166,445,000 |
169,273,347 |
|||
Property, plant and equipment, net |
8,141,594 |
8,458,121 |
|||
Land use rights, net |
4,294,538 |
4,297,849 |
|||
TOTAL ASSETS |
$ |
178,881,132 |
$ |
182,029,317 |
OSSEN INNOVATION CO., LTD. AND SUBSIDIARIES |
|||||
CONSOLIDATED BALANCE SHEETS |
|||||
March 31, |
December 31, |
||||
2014 |
2013 |
||||
(Unaudited) |
|||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||
Current Liabilities |
|||||
Notes payable – bank acceptance notes |
$ |
43,459,566 |
$ |
50,990,427 |
|
Short-term bank loans |
29,043,354 |
27,283,147 |
|||
Accounts payable |
347,889 |
503,944 |
|||
Customer deposits |
4,970,260 |
2,908,271 |
|||
Income tax payable |
409,198 |
232,541 |
|||
Other payables and accrued expenses |
937,303 |
1,549,748 |
|||
Due to related party |
95,633 |
16,911 |
|||
Due to shareholder |
100,000 |
50,000 |
|||
Total Current Liabilities |
79,363,203 |
83,534,989 |
|||
TOTAL LIABILITIES |
79,363,203 |
83,534,989 |
|||
EQUITY |
|||||
Shareholders' Equity |
|||||
Ordinary shares, $0.01 par value: 100,000,000 shares authorized, |
200,000 |
200,000 |
|||
Additional paid-in capital |
33,971,455 |
33,971,455 |
|||
Statutory reserve |
4,680,101 |
4,615,699 |
|||
Retained earnings |
41,936,309 |
41,518,259 |
|||
Treasury stock, at cost: 98,041 shares as of March 31, 2014 and |
(96,608) |
(96,608) |
|||
Accumulated other comprehensive income |
8,141,882 |
7,646,562 |
|||
TOTAL SHAREHOLDERS' EQUITY |
88,833,139 |
87,855,367 |
|||
Non-controlling interest |
10,684,790 |
10,638,961 |
|||
TOTAL EQUITY |
99,517,929 |
98,494,328 |
|||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ |
178,881,132 |
$ |
182,029,317 |
OSSEN INNOVATION CO., LTD. AND SUBSIDIARIES |
|||||
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME |
|||||
(Unaudited) |
|||||
Three Months Ended March 31, |
|||||
2014 |
2013 |
||||
REVEUNUES |
$ |
28,036,908 |
$ |
14,592,753 |
|
COST OF GOODS SOLD |
25,392,916 |
12,900,737 |
|||
GROSS PROFIT |
2,643,992 |
1,692,016 |
|||
Selling expenses |
108,438 |
44,075 |
|||
General and administrative expenses |
1,339,531 |
602,707 |
|||
Total Operating Expenses |
1,447,969 |
646,782 |
|||
INCOME FROM OPERATIONS |
1,196,023 |
1,045,234 |
|||
Financial expenses, net |
(700,735) |
(904,173) |
|||
Other income, net |
168,265 |
44,391 |
|||
INCOME BEFORE INCOME TAX |
663,553 |
185,452 |
|||
INCOME TAX |
(135,272) |
(85,270) |
|||
NET INCOME |
528,281 |
100,182 |
|||
LESS: NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTEREST |
45,829 |
26,143 |
|||
NET INCOME ATTRIBUTABLE TO CONTROLLING INTEREST |
482,452 |
74,039 |
|||
OTHER COMPREHENSIVE INCOME |
|||||
Foreign currency translation gain |
495,320 |
510,447 |
|||
TOTAL OTHER COMPREHENSIVE INCOME |
495,320 |
510,447 |
|||
COMPREHENSIVE INCOME |
$ |
977,772 |
$ |
584,486 |
|
EARNINGS PER ORDINARY SHARE |
|||||
Basic and diluted |
$ |
0.02 |
$ |
0.004 |
|
WEIGHTED AVERAGE ORDINARY SHARES OUTSTANDING |
|||||
Basic and diluted |
19,901,959 |
19,901,959 |
OSSEN INNOVATION CO., LTD AND SUBSIDIARIES |
||||||||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF SHAREHOLDER'S EQUITY |
||||||||||||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||||||||||||
Total Ossen Innovation Co., Ltd. Shareholders' Equity |
||||||||||||||||||||||||||||||||
Ordinary Shares $0.01 Par Value |
Treasury Stock |
Additional Paid-in Capital |
Accumulated Other Comprehensive Income |
Statutory Reserve |
Retained |
Non Controlling |
Total |
|||||||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
|||||||||||||||||||||||||||||
Balance at December 31, 2013 |
20,000,000 |
200,000 |
(98,041) |
(96,608) |
33,971,455 |
7,646,562 |
4,615,699 |
41,518,259 |
10,638,961 |
98,494,328 |
||||||||||||||||||||||
Net income |
- |
- |
- |
- |
- |
- |
- |
482,452 |
45,829 |
528,281 |
||||||||||||||||||||||
Transfer to statutory reserve |
- |
- |
- |
- |
- |
- |
64,402 |
(64,402) |
- |
- |
||||||||||||||||||||||
Foreign currency translation adjustment |
- |
- |
- |
- |
- |
495,320 |
- |
- |
- |
495,320 |
||||||||||||||||||||||
Balance at March 31, 2014 |
20,000,000 |
$ |
200,000 |
(98,041) |
$ |
(96,608) |
$ |
33,971,455 |
$ |
8,141,882 |
$ |
4,680,101 |
$ |
41,936,309 |
$ |
10,684,790 |
$ |
99,517,929 |
OSSEN INNOVATION CO., LTD. AND SUBSIDIARIES |
||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||
(Unaudited) |
||||||
Three Months Ended March 31, |
||||||
2014 |
2013 |
|||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||
Net income |
$ |
528,281 |
$ |
100,182 |
||
Adjustments to reconcile net income to net cash provided by / |
||||||
Depreciation and amortization |
388,213 |
384,490 |
||||
Share-based compensation expense |
- |
|||||
Changes in operating assets and liabilities: |
||||||
(Increase) Decrease In: |
||||||
Accounts receivable |
3,991,328 |
7,598,791 |
||||
Inventories |
(15,112,464) |
(6,346,785) |
||||
Advance to suppliers |
(3,811,538) |
5,061,431 |
||||
Other current assets |
814,733 |
39,668 |
||||
Notes receivable - bank acceptance notes |
(2,446,020) |
394,079 |
||||
Notes receivable from related party - bank acceptance notes |
12,915,099 |
1,830,208 |
||||
Accounts receivable from related party |
- |
(2,625,082) |
||||
Increase (Decrease) In: |
||||||
Accounts payable |
(156,056) |
25,822 |
||||
Customer deposits |
2,061,988 |
3,259,299 |
||||
Income tax payable |
176,656 |
(337,907) |
||||
Other payables and accrued expenses |
(612,444) |
(297,020) |
||||
Due to related party |
78,722 |
- |
||||
Due to shareholder |
50,000 |
- |
||||
Net cash provided by/(used in) operating activities |
(1,133,502) |
9,087,176 |
||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||
Purchases of plant and equipment |
(1,150) |
(12,671) |
||||
Net cash used in investing activities |
(1,150) |
(12,671) |
OSSEN INNOVATION CO., LTD. AND SUBSIDIARIES |
||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||
(Unaudited) |
||||||
Three Months Ended March 31, |
||||||
2014 |
2013 |
|||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||
Decrease in restricted cash |
6,100,001 |
6,561,343 |
||||
Proceeds from short-term bank loans |
8,336,466 |
6,049,607 |
||||
Repayments of short-term bank loans |
(6,701,865) |
(12,177,826) |
||||
Proceeds from notes payable-bank acceptance notes |
15,365,252 |
14,487,216 |
||||
Repayment of notes payable-bank acceptance notes |
(23,211,338) |
(22,765,625) |
||||
Net cash used in financing activities |
(111,484) |
(7,845,285) |
||||
INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS |
(1,246,136) |
1,229,220 |
||||
Effect of exchange rate changes on cash |
868,927 |
879,543 |
||||
Cash and cash equivalents at beginning of period |
1,139,451 |
1,996,764 |
||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
$ |
762,242 |
$ |
4,105,527 |
||
SUPPLEMENTARY CASH FLOW INFORMATION |
||||||
Cash paid during the periods: |
||||||
Income taxes paid |
$ |
241,679 |
$ |
389,179 |
||
Interest paid |
$ |
572,627 |
$ |
899,973 |
||
Non-cash transactions: |
||||||
Appropriation to statutory reserve |
$ |
64,402 |
$ |
45,706 |
SOURCE