- 2Q10 Revenues Up 286.2% Year-Over-Year to $39.8 million
- 2Q10 Net Income Attributable to Worldwide Reaches $1.3 million, Up From Net Loss of $1.1 Million in 2Q09
- 2Q10 EPS of $0.23, Up From $0.30 Loss Per Share in 2Q09
SOUTH SAN FRANCISCO, Calif. and SHANGHAI, China, Aug. 16, 2010 (GLOBE NEWSWIRE) -- Worldwide Energy and Manufacturing USA, Inc. (OTCBB:WEMU) ("Worldwide" or the "Company"), a U.S.-based China manufacturing company specializing in products for customers in the solar energy, aerospace, wireless telecommunications, medical equipment and automotive industries, today announced financial results for its second fiscal quarter ended June 30, 2010.
Jimmy Wang, chairman and chief executive officer of Worldwide, stated: "We are excited to report another record revenue quarter, as well as strong financial results in our second fiscal quarter. Our success in penetrating the solar module market through our AmeriSolar brand is clearly showcased by the dramatic increase in solar revenues during the second quarter, and we also benefited from the effects of stabilizing market prices and a significant increase in demand over 2009 levels. Our manufacturing division experienced similarly strong growth this quarter, driven by an increase in order shipment volume. The Company enters the second half of 2010 with a record backlog, which currently stands in excess of $100 million. The brand new solar manufacturing and research facility in Nantong is completed, and we have high expectations for the plant's contribution to the Company's financial performance in the near future."
Highlights for the Second Quarter Ended June 30, 2010
- Revenues for the second quarter of fiscal year 2010 totaled $39.8 million, an increase of $29.5 million, or 286.2%, from revenues of $10.3 million generated in the second quarter of 2009.
- Net income attributable to Worldwide for the second quarter of fiscal 2010 totaled $1.3 million, up from a net loss of $1.1 million in the second quarter of 2009.
- Basic and diluted net income for the quarter was $0.23 per share, up from $0.30 loss per share in the same period a year ago.
- Gross profit increased to $2.8 million from $1.6 million, representing an increase of 75.7%, or $1.2 million, for the three months ended June 30, 2009.
- Solar division revenue increased to $35.3 million from $7.5 million. This represents an increase of 371.3% or approximately $27.8 million compared to the same period a year ago.
- Gross profit generated by Worldwide's solar division was $1.54 million for the three months ended June 30, 2010, compared to $0.81 million in the same period of 2009. This represents an increase of approximately 90.7%, or $0.73 million, in gross profit for the division.
- Total assets increased to $52.8 million, up 52.3% or $18.1 million from $34.7 million at December 31, 2009.
- Cash and cash equivalents totaled $13.5 million, up 47.0% or $4.3 million from $9.2 million at December 31, 2009.
Highlights for the Six Months Ended June 30, 2010
- Revenues for the six months ended June 30, 2010 were $70.2 million, up 240.7% or $49.6 million from $20.6 million in the first six months of fiscal 2009.
- Net income attributable to Worldwide for the six months ended June 30, 2010 was $3.2 million, up from a net loss attributable to Worldwide of $410,805 in the six months ended June 30, 2009.
- Basic and diluted GAAP net income for the six months ended June 30, 2010 was $0.61 per share, up from a net loss of $0.12 per share in the first six months of fiscal 2009.
Worldwide's President Jeff Watson, commenting on the quarter, stated: "Our growth strategy is coming to fruition as our run rate for the first two quarters indicates, particularly for our Solar Division. Not only did we maintain the high run rate from the first quarter, but second quarter revenue increased more than 30% sequentially and close to 300% year-over-year. In addition to our PV module offerings, we have formed a new business unit in China to provide System Integration services to the local market. This service provides more value-add to customers and opens new channels for Worldwide and our AmeriSolar brand of modules. We anticipate continued growth over 2009 sales levels as we move into the second half of 2010."
Conference Call and Webcast
The Company will hold a conference call to discuss its second quarter 2010 financial results on Tuesday, August 17, 2010 at 11:00 a.m. Eastern time (8:00 a.m. Pacific).
To participate in the call please dial (877) 941-1427, or (480) 629-9664 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/">http://www.wwmusa.com or alternately at http://viavid.net/">http://viavid.net.
A replay of the call will be available for two weeks from 2:00 p.m. on August 17, 2010, EDT until 11:59 p.m. EDT on August 31, 2010. The number for the replay is (877) 870-5176 or (858) 384-5517 for international calls; the pin number for the replay is 4351720. In addition, a recording of the call will be available via the company's website at http://www.wwmusa.com/">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) module, 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 | ||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
June 30, 2010 | December 31, 2009 | |
ASSETS | (Unaudited) | |
Current assets: | ||
Cash and cash equivalents | $13,493,574 | $9,180,974 |
Restricted cash | 1,211,397 | 2,456,040 |
Accounts receivable, net of allowances of $126,000 and $312,000, at June 30, 2010 and December 31, 2009, respectively | 22,730,718 | 11,858,568 |
Notes receivable | -- | 40,680 |
Inventories | 6,997,734 | 4,567,343 |
VAT tax receivable | 176,816 | 570,615 |
Advances to suppliers | 1,519,786 | 488,395 |
Deferred tax asset | 100,000 | 100,000 |
Note receivable from officer | -- | 50,000 |
Prepaid and other current assets | 372,598 | 363,309 |
Total current assets | 46,602,623 | 29,675,924 |
Property and equipment, net | 4,188,714 | 2,968,958 |
Intangible assets | 1,101,000 | 1,101,000 |
Goodwill | 285,714 | 285,714 |
Long term receivable – related party | 598,578 | 618,527 |
Total assets | $52,776,629 | $34,650,123 |
LIABILITIES AND EQUITY | ||
Current liabilities: | ||
Accounts payable | $24,783,008 | $13,981,881 |
Accrued expenses | 1,688,552 | 1,895,127 |
Lines of credit | 1,758,333 | 2,679,167 |
Warrant derivative liability | 3,578,554 | 1,626,586 |
Tax payable | 645,266 | 768,289 |
Due to related parties | 1,467,154 | 1,841,803 |
Customer deposits | 1,040,326 | 1,254,558 |
Total liabilities | 34,961,193 | 24,047,411 |
Commitments and contingencies (Note 3) | ||
Stockholders' equity | ||
Common stock (No Par Value; 100,000,000 shares authorized; 5,649,623 and 3,671,611 shares issued and outstanding at June 30, 2010 and December 31, 2009, respectively; including 1,620,954 shares held in escrow subject to contingent future events as of June 30, 2010) | 6,427,198 | 2,920,372 |
Retained earnings | 9,343,639 | 6,104,586 |
Accumulated other comprehensive income | 658,817 | 551,943 |
Total equity attributable to Worldwide | 16,429,654 | 9,576,901 |
Non-controlling interest | 1,385,782 | 1,025,811 |
Total stockholders' equity | 17,815,436 | 10,602,712 |
Total liabilities and stockholders' equity | $52,776,629 | $34,650,123 |
WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND SUBSIDIARIES | ||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
For the Six Months Ended | For the Three Months Ended | |||
June 30, | June 30, | |||
2010 | 2009 | 2010 | 2009 | |
Revenue | ||||
Sales | $70,177,903 | $20,598,780 | $39,846,332 | $10,316,913 |
Cost of goods sold | 63,537,182 | 17,258,638 | 36,997,309 | 8,695,838 |
Gross profit | 6,640,721 | 3,340,142 | 2,849,023 | 1,621,075 |
Operating Expenses | ||||
Selling, general and administrative expenses | 3,829,825 | 1,843,997 | 1,895,129 | 1,017,842 |
Management and professional fees paid to stockholders | 180,000 | 180,000 | 90,000 | 90,000 |
Stock based compensation | 45,992 | 115,220 | 33,492 | 83,100 |
Depreciation | 239,677 | 162,881 | 85,138 | 89,708 |
Loss on disposal of fixed assets | 143,477 | -- | 143,477 | -- |
Total operating expenses | 4,438,971 | 2,302,098 | 2,247,236 | 1,280,650 |
Net operating income | 2,201,750 | 1,038,044 | 601,787 | 340,425 |
Other Income (expenses) | ||||
Interest income | 13,885 | 11,157 | 8,442 | 44 |
Interest expense | (41,317) | (20,809) | (16,776) | (13,207) |
Other income (expense) | 2,793,924 | (1,079,388) | 1,533,451 | (1,098,793) |
Exchange gain (loss) | (830,544) | 5,425 | (343,331) | 1,460 |
Total other income (expenses) | 1,935,948 | (1,083,615) | 1,181,786 | (1,110,496) |
Income (loss) before income taxes | 4,137,698 | (45,571) | 1,783,573 | (770,071) |
Income taxes | (543,504) | (242,624) | (250,130) | (204,078) |
Net income (loss) | 3,594,194 | (288,195) | 1,533,443 | (974,149) |
Less: net income attributable to non-controlling interest | (355,141) | (122,610) | (245,125) | (97,453) |
Net income (loss) attributable to Worldwide | $3,239,053 | $(410,805) | $1,288,318 | $(1,071,602) |
Earnings(loss) per share attributable to Worldwide stockholders: | ||||
Basic and diluted earnings (loss) per share | $0.61 | $(0.12) | $0.23 | $(0.30) |
Basic and diluted weighted average shares outstanding | 5,345,557 | 3,555,855 | 5,644,661 | 3,617,512 |
WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND SUBSIDIARIES | |||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||||||||||
WEMU Shareholders | Non-controlling Interest | Total | |||||||||
Six months ended June 30, | |||||||||||
2010 | 2,009 | 2010 | 2009 | 2010 | 2009 | ||||||
Net income (loss) | $3,239,053 | (410,805) | 355,141 | $122,610 | $3,594,194 | $(288,195) | |||||
Foreign currency translation, net of tax | 106,874 | 107,656 | -- | -- | 106,874 | 107,656 | |||||
Comprehensive income attributable to non-controlling interest | -- | -- | 4,830 | (13,571) | 4,830 | (13,571) | |||||
Total comprehensive income (loss) | $3,345,927 | $(303,149) | $359,971 | $109,039 | $3,705,898 | $(194,110) | |||||
WEMU Shareholders | Non-controlling Interest | Total | |||||||||
Three months ended June 30, | |||||||||||
2010 | 2009 | 2010 | 2009 | 2010 | 2009 | ||||||
Net income (loss) | $1,288,318 | $(1,071,602) | $245,125 | $97,453 | $1,533,443 | $(974,149) | |||||
Foreign currency translation, net of tax | 114,096 | 86,621 | -- | -- | 114,096 | 86,621 | |||||
Comprehensive income attributable to non-controlling interest | -- | -- | (4,679) | (19) | (4,679) | (19) | |||||
Total comprehensive income (loss) | $1,402,414 | $(984,981) | $240,446 | $97,434 | $1,642,860 | $(887,547) |
WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND SUBSIDIARIES | ||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
For the Six Months Ended | ||
June 30, | ||
2010 | 2009 | |
Cash flows from operating activities: | ||
Net income (loss) | $3,594,194 | $(288,195) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Depreciation | 239,677 | 162,881 |
Allowance for bad debts – accounts receivable | (186,507) | 226,796 |
Allowance for bad debts – note receivable | 39,680 | |
Stock based compensation expense | 45,992 | 115,220 |
Change in warrant derivative liability | (2,698,781) | 1,072,396 |
Provision for warranty | 14,350 | -- |
Loss on disposal of fixed assets | 143,477 | -- |
Changes in operating assets and liabilities: | ||
Accounts receivable | (10,685,643) | (4,352,836) |
Notes receivable | 1,000 | 165,476 |
Inventories | (2,412,685) | (1,085,510) |
VAT tax receivable | 394,681 | (338,190) |
Advance to suppliers | (1,025,403) | (355,272) |
Loan receivable - affiliate | -- | 6,497 |
Prepaid and other current assets | 195,996 | 116,897 |
Accounts payable | 10,762,273 | 5,096,026 |
Accrued expense and acquisition cost payable | (231,575) | (641,487) |
Tax payable | (123,377) | 117,220 |
Customer deposits | (214,232) | (176,385) |
Net cash used in operating activities | (2,146,883) | (158,466) |
Cash flows from investing activities: | ||
Capital expenditures | (1,602,910) | (847,124) |
Deposits paid for investment in subsidiaries | -- | (1,120,193) |
Restricted cash | 1,244,643 | -- |
Net cash used in investing activities | (358,267) | (1,967,317) |
Cash flows from financing activities: | ||
Net proceeds from issuance of common stock and warrants | 8,136,583 | -- |
Repayment of loans payable to shareholders | -- | (60,024) |
Proceeds of borrowing from related parties | 50,000 | -- |
Repayment of loans payable to shareholders | (400,000) | -- |
Net proceeds from lines of credit | 100,000 | 1,300,000 |
Repayment of bank loans | (1,020,833) | (88,373) |
Net cash flows provided by financing activities: | 6,865,750 | 1,151,603 |
Effect of exchange rate changes on cash and cash equivalents | (48,000) | (6,359) |
Net increase (decrease) in cash and cash equivalents | 4,312,600 | (980,539) |
Cash and cash equivalents- beginning of period | 9,180,974 | 5,092,476 |
Cash and cash equivalents- end of period | $13,493,574 | $4,111,937 |
Supplemental disclosure of non cash activities: | ||
Cash paid during the period for: | ||
Interest | $44,564 | $20,809 |
Income tax | $242,000 | $47,850 |
Non-cash investing and financing activities: | ||
During the period ended June 30, 2010, the Company accounted for $6,094,876 of warrants issued in its 2010 Financing as a warrant derivative liability. | ||
During the period ended June 30, 2010, the Company reclassified $1,444,127 from warrant derivative liability to equity related to the warrants issued in its 2008 Financing. |