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Company Reports Record Revenue of $62.2 Million, up 35.5% Year-Over-Year
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EBITDA up 89% Year-Over-Year (excluding derivative liability)
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Solar Division Revenue up 54% Year-Over-Year
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Solar Division Gross Profit up 175%
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Solar Division Gross margins up from 5.5% in fiscal 2008 to 9.9% in fiscal 2009
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Total Assets up 81% Year-Over-Year, from $19.13 Million to $34.65 Million
- Cash and Cash Equivalents increased 80.3% to $9.18 million Year-Over-Year
SOUTH SAN FRANCISCO, Calif. and SHANGHAI, China, April 16, 2010 (GLOBE NEWSWIRE) -- Worldwide Energy and Manufacturing USA, Inc. (OTCBB:WEMU), a U.S.-based solar module technology and China manufacturing company specializing in products for customers in the industries of solar energy, aerospace, wireless telecommunications, medical equipment and automotive industries, today announced financial results for the full year ended December 31, 2009.
Full Year Highlights
- 2009 Revenue increased by 35.5% to $62.2 million compared to net sales of $45.9 million in the full year 2008.
- 2009 Solar Module revenue was $47.8 million compared to solar module sales of $31.0 million for 2008, an increase of over 54.0%.
- 2009 EBITDA (excluding derivative liability) was $0.69 per share, or $2.5 million compared to $0.45 per share, or $1.3 million, for the full year 2008.
- Total Assets were up 81% year-over-year, from $19.13 million in 2008 to $34.65 million in 2009.
- Cash and Cash Equivalents increased 80.3% to $9.18 million year-over-year.
- Net Income (excluding derivative liability) was $1.72 million, or $0.48 per share in 2009, compared to $0.79 million, or $0.27 per share, in 2008.
- Net Income (Loss) was $(0.58) million, or $(0.16) per share in 2009 compared to $3.88 million, or $1.33 per share, in the full year 2008.
Jimmy Wang, Chairman and CEO of Worldwide Energy and Manufacturing, said: "In many ways 2009 was a banner year for our company. We strengthened our board of directors, brought on a big-four Chief Financial Officer, and produced the biggest revenue year in the history of the company. Though our net income suffered due to a warrant derivative, our EBITDA was up substantially, and our gross margins were up significantly in our fast-growing solar division. I expect a strong first quarter and another record revenue year in 2010."
Full Year Ended December 31, 2009 Financial Results
For the fiscal year ended December 31, 2009, net income before tax was $0.78 million compared to net income of $4.18 million in the same period of 2008. The decrease of $3.40 million, or approximately 81.3%, was primarily due to the unfavorable change in the warrant derivative liability of $1.14 million in 2009 and the favorable change in the warrant derivative liability of $3.09 million in 2008.
Net income (loss) after tax for the fiscal year ended December 31, 2009 was $(0.58) million compared to a net profit of $3.88 million for the same yearly period of 2008. The decrease of $4.46 million was primarily due to the same aforementioned changes in the warrant derivative liability between 2008 and 2009.
Net sales for the fiscal year ended December 31, 2009 were $62.2 million compared to sales of $45.9 million for 2008. The increase of $16.3 million, or approximately 35.5%, was the result of an increase in shipments from the Solar division. The Company continues to focus on market penetration for its PV Solar Modules. Solar modules revenues comprised approximately 76.8% of the Company's gross sales in full fiscal year ended December 31, 2009 compared to 67.5% for 2008.
For the fiscal year ended December 31, 2009, gross profit was $8.40 million compared to gross profit of $5.45 million in the same yearly period of 2008. This represents an increase of $2.95 million, or 54.1%, due primarily to robust sales in the Company's Solar division for the period. The gross profit for the fiscal year ended December 31, 2009 for the solar division was $4.72 million compared to $1.72 million in the same yearly period of 2008. This represents an increase of $3.01 million in gross profit in the fiscal year ended December 31, 2009, or an approximate increase of 175.0%. The gross profit for contract manufacturing for the fiscal year ended December 31, 2009 was $3.68 million compared to $4.45 million in the same yearly period of 2008, a decrease of $0.77 million, or approximately 17.4%.
Cost of goods sold for the fiscal year ended December 31, 2009 was $53.8 million compared to $40.4 million for the same period of 2008. The increase of $13.4 million, or approximately 33.3%, was the result of greater revenues in the energy division. The cost of goods for solar modules for the fiscal year ended December 31, 2009 was $43.0 million compared to $29.3 million for the same yearly period of 2008. The increase of $13.7 million, or 46.9%, was due to the higher sales. The costs of goods sold for contract manufacturing was $10.8 million for the fiscal year ended December 31, 2009 compared to cost of goods sold of $10.5 million in the same yearly period of 2008.
For a full discussion of our fiscal 2009 results, please see the Company's Form 10-K filed April 15, 2010 with the Securities and Exchange Commission.
Conference Call and Webcast
The Company will hold a conference call to discuss these 2009 financial results on Friday, April 16, 2010 at 10:00 a.m. Eastern time (7:00 a.m. Pacific).
To participate in the call please dial (888) 846-5003, or (480) 629-9856 for international calls, approximately 10 minutes prior to the scheduled start time. Interested parties can also listen via a live Internet webcast, which can be found via the Company's website at http://www.wwmusa.com or alternately at http://viavid.net.
A replay of the call will be available for two weeks from 1:00 p.m. April 16, 2010, EDT until 11:59 p.m. EDT on April 30, 2010. The number for the replay is (303) 590-3030; the passcode for the replay is 4284236. In addition, a recording of the call will be available via the company's website at http://www.wwmusa.com for one year.
About Worldwide Energy and Manufacturing USA, Inc.
Worldwide Energy and Manufacturing USA, Inc. (http://www.wwmusa.com/">http://www.wwmusa.com), headquartered in South San Francisco, California, is a 16-year-old engineering-oriented firm specializing in photovoltaic (PV) panel, mechanical, electronics and fiber optic products manufacturing. The company's worldwide customer base includes the industries of solar energy, wireless telecommunications, aerospace, automobiles and medical equipment. Subsidiaries include Shanghai Intech Electro Mechanical Products Co. Ltd., Shanghai Intech Electronics Manufacturing Co. Ltd. and Shanghai Intech Precision Mechanical Products Manufacturing Co. Ltd., located in Shanghai, China.
Forward-looking statements:
The above news release contains forward-looking statements. The statements contained in this document that are not statements of historical fact, including but not limited to, statements identified by the use of terms such as "anticipate," "appear," "believe," "could," "estimate," "expect," "hope," "indicate," "intend," "likely," "may," "might," "plan," "potential," "project," "seek," "should," "will," "would," and other variations or negative expressions of these terms, including statements related to expected market trends and the Company's performance, are all "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties. These statements are based on assumptions that management believes are reasonable based on currently available information, and include statements regarding the intent, belief or current expectations of the Company and its management. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performances, and are subject to a wide range of external factors, uncertainties, business risks, and other risks identified in filings made by the company with the Securities and Exchange Commission. Actual results may differ materially from those indicated by such forward-looking statements. The Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statement contained herein to reflect any change in the company's expectations with regard thereto or any change in events, conditions or circumstances upon which any statement is based.
| WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND SUBSIDIARIES | ||
| CONSOLIDATED BALANCE SHEETS | ||
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December 31 2009 |
December 31 2008 |
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| ASSETS | (as restated) | |
| Current assets: | ||
| Cash and cash equivalents | $ 9,180,974 | $ 5,092,476 |
| Restricted cash (Note 10) | 2,456,040 | -- |
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Accounts receivable, net of allowances of $312,000 and $46,000 at December 31, 2009 and 2008, respectively |
12,239,790 |
4,790,506 |
| Notes receivable | 40,680 | 269,507 |
| Inventories | 4,567,343 | 3,754,765 |
| VAT tax receivable | 570,615 | -- |
| Advances to suppliers | 488,395 | 99,824 |
| Deferred tax asset | 100,000 | -- |
| Note receivable from officer | 50,000 | -- |
| Other receivables | -- | 185,400 |
| Prepaid and other current assets | 363,309 | 206,770 |
| Total current assets | 30,057,146 | 14,399,248 |
| Property and equipment, net | 2,968,958 | 1,353,539 |
| Intangible assets | 1,101,000 | 1,101,000 |
| Goodwill | 285,714 | 285,714 |
| Investment at cost | -- | 51,892 |
| Deposits paid for contracts in process | -- | 1,673,084 |
| Long term receivable – related party | 237,305 | 260,973 |
| Other assets | -- | 7,559 |
| Total assets | $ 34,650,123 | $ 19,133,009 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Accounts payable | $ 14,177,570 | $ 3,400,253 |
| Accrued expenses | 2,869,069 | 1,073,994 |
| Lines of credit | 2,679,167 | -- |
| Warrant derivative liability | 1,626,586 | 486,356 |
| Acquisition cost payable | -- | 285,714 |
| Tax payable | 768,289 | 364,213 |
| Due to related parties | 1,646,114 | 1,243,024 |
| Customer deposits | 280,616 | 964,998 |
| Total current liabilities | 24,047,411 | 7,818,552 |
| Non-current liabilities | ||
| Line of credit | -- | 937,075 |
| Loan payable to stockholders | -- | 60,024 |
| Total non-current liabilities | -- | 997,099 |
| Total liabilities | 24,047,411 | 8,815,651 |
| Stockholders' equity | ||
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Common stock (No Par Value: 100,000,000 shares authorized; 3,671,611 and 3,493,511 shares issued and outstanding at December 31, 2009 and 2008, respectively) |
2,920,372 | 2,535,652 |
| Retained earnings | 6,104,586 | 6,681,589 |
| Accumulated other comprehensive income | 551,943 | 487,478 |
| Total equity attributable to Worldwide | 9,576,901 | 9,704,719 |
| Non-controlling interest | 1,025,811 | 612,639 |
| Total stockholders' equity | 10,602,712 | 10,317,358 |
| Total liabilities and stockholders' equity | $ 34,650,123 | $ 19,133,009 |
| WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND SUBSIDIARIES | ||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||
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For The Year Ended December 31 |
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| 2009 | 2008 | |
| (AS RESTATED) | ||
| Sales | $ 62,212,252 | $ 45,913,957 |
| Cost of goods sold | 53,813,483 | 40,367,870 |
| Gross profit | 8,398,769 | 5,546,087 |
| Operating Expenses | ||
| Selling, general and administrative expenses | 5,560,615 | 3,417,482 |
| Management and professional fees paid to stockholders | 335,000 | 306,000 |
| Stock based compensation | 384,720 | 128,597 |
| Depreciation | 502,488 | 122,923 |
| Total operating expenses | 6,782,823 | 3,975,002 |
| Net operating income | 1,615,946 | 1,571,085 |
| Other Income (Expenses) | ||
| Interest income | 17,448 | 21,995 |
| Interest expense | (77,328) | (120,038) |
| Interest expense paid to stockholders | -- | (27,284) |
| Other income (expense) | (833,690) | 2,956,663 |
| Dividend income | -- | 242,770 |
| Exchange gain (loss) | 57,880 | (364,067) |
| Loss on disposal of subsidiary | -- | (101,982) |
| Total other income (expenses) | (835,690) | 2,608,057 |
| Income before income taxes | 780,256 | 4,179,142 |
| Income taxes | (953,000) | (284,368) |
| Income (loss) from continuing operations | (172,744) | 3,894,774 |
| Income from discontinued operations, net of tax | -- | 2,385 |
| Net income (loss) | $ (172,744) | $ 3,897,159 |
| Less: Net income attributable to non-controlling interest | (404,259) | (15,843) |
| Net income (loss) attributable to Worldwide | $ (577,003) | $ 3,881,316 |
| Amounts attributable to Worldwide common Stockholders: | ||
| (Loss) income from continuing operations | $ (577,003) | $ 3,878,931 |
| Income from discontinued operations | -- | 2,385 |
| Net (loss) income | $ (577,003) | $ 3,881,316 |
| Earnings per share attributable to Worldwide stockholders: | ||
| Basic and diluted earnings (loss) per share from continuing operations | $ (0.16) | $ 1.33 |
| Basic and diluted earnings per share from discontinued operations | $ 0.00 | $ 0.00 |
| Basic and diluted earnings (loss) per share | $ (0.16) | $ 1.33 |
| Basic and diluted weighted average shares outstanding | 3,596,851 | 2,911,599 |
This information is intended to be reviewed in conjunction with the Company's filings with the Securities and Exchange Commission.