dadooh27
03-31-2008, 10:09 AM
China Direct Reports Record Financial Results for the Fourth Quarter and Full Year of Fiscal 2007
Monday March 31, 8:55 am ET
- Full year revenue reaches $174.24 million
- Full year net income increases to $11.83 million
- Full year basic EPS rises to $0.75 per share
- Full year fully-diluted EPS rises to $0.67 per share
- Company to provide updated earnings guidance for 2008 during today's 4:30 p.m. EDT Conference Call.
DEERFIELD BEACH, Fla., March 31 /PRNewswire-FirstCall/ -- China Direct, Inc. (Amex: CDS - News), a U.S. company that owns controlling stakes in a diversified portfolio of Chinese entities and assists Chinese businesses in accessing the U.S. capital markets, announced today the Company's audited financial results for the fourth quarter of 2007 and the full year ended December 31, 2007.
Financial Highlights
The Full Year Financial Performance
Revenues for 2007 increased to $174.24 million, as compared to revenues of $13.98 million for 2006.
Gross profit for 2007 was $18.79 million, as compared to $1.47 million for 2006. Total operating expenses for 2007 increased to $4.48 million, as compared to $1.93 million for 2006. Operating expenses as a percentage of gross profit declined in 2007 to 23.8% down from $131.3% in 2006. Operating income was $14.31 million for 2007 versus a loss of $459,207 for 2006, yielding an operating profit margin of 8.2% in 2007.
Net income for 2007 increased to $11.83 million as compared to net income of $169,322 in 2006. The basic earnings were $0.75 per share as compared to $0.02 per share for 2006 on a weighted average basis. On a fully diluted basis, the earnings per share for 2007 were $0.67 per share as compared to $0.01 per share for 2006 on a weighted average basis. The net profit margin in 2007 improved to 6.8% from 1.2% in 2006.
Marc Siegel, President of China Direct, stated, "We continue to be very pleased with the financial performance of our four segments in 2007, and we are particularly encouraged by the synergies we are starting to realize from the recent acquisitions to our magnesium segment. We believe the expansion of our magnesium segment has brought us significantly closer to achieving our goal of becoming the global leader in the production and distribution of magnesium. We continue to seek acquisitions in this segment that allow us to drive growth through manufacturing cost savings and distribution reach."
The Fourth Quarter Financial Performance
Revenues for the fourth quarter ended December 31, 2007 increased to $58.27 million as compared to revenues of $13.50 million in the fourth quarter ended December 31, 2006. The increase in revenues was mainly attributable to increased sales from our Magnesium and Clean Technology segments acquired during 2007, as well as a strong performance from both Lang Chemical and our Consulting segment. Additionally, revenue in the fourth quarter of 2007 increased 31% sequentially from revenues of $44.58 million in the third quarter of 2007, driven by our magnesium business.
Gross profit for the fourth quarter of 2007 was $6.82 million as compared to $1.33 million in the fourth quarter ended December 31, 2006. Total operating expenses for the fourth quarter of 2007 increased to $1.68 million compared to $819,336 in the fourth quarter of 2006. The increase in operating expenses in the fourth quarter of 2007 reflects the continued increases to our operations in China associated with our new subsidiaries and staff additions both in the U.S. and China associated with the financial management and integration of our expanding operations. The Company also experienced increases in travel expenses, professional consulting fees, professional insurance premiums, as well as non-cash option charges for employees, management, and professional advisors. Operating income was $5.14 million and $514,266 for the fourth quarter of 2007 and 2006, yielding operating margins of 8.8% and 3.7%, respectively.
Net income for the fourth quarter of 2007 increased to $4.71 million, or $0.23 per basic share, as compared to net income of $557,153 or $0.05 per basic share for the fourth quarter of 2006. On a fully diluted basis, earnings per share for the fourth quarter of 2007 were $0.20 per share as compared to $0.04 per share for the fourth quarter of 2006. Additionally, net income was up 59% sequentially from net income of $2.98 million in the third quarter of 2007. The net profit margin improved to 8.1% in the fourth quarter of 2007 from 4.1% in the fourth quarter of 2006.
Balance Sheet
At December 31, 2007, total assets were $88.29 million, an increase of 324% from $20.84 million at December 31, 2006. At December 31, 2007, shareholder equity reached $42.82 million, an increase of 630% from $5.86 million at December 31, 2006. At December 31, 2007, cash and cash equivalents were $20.39 million and working capital was approximately $40.88 million, an increase of 570% and 502% from cash and cash equivalents of $3.03 million and working capital of approximately $6.79 million at December 31, 2006, respectively.
2008 Financial Guidance
The Company sees continued robust growth in both revenue and earnings for 2008 and will provide updated earnings guidance for 2008 during its conference call today, March 31, 2008 at 4:30 PM EDT.
Mr. Siegel concluded, "We remain focused on generating internal growth of at least 30% in 2008, as we integrate our recently acquired business operations. We see continued improvement in our average contract price for magnesium in 2008 as pre sold contracts from 2007 expire and new sales contracts are made at current price levels. We are confident we can continue to make strategic and opportunistic acquisitions in China and believe we have gained substantial experience in 2007. Throughout the past year we have steadily built a cohesive team which has positioned China Direct to continue its expansion in 2008 and beyond. We remain excited by the opportunities in China and continue to work responsibly and aggressively on behalf of our shareholders. We believe 2008 will be another record breaking year for China Direct."
China Direct Conference Call to discuss the Company's financial results for the fourth quarter of 2007 and the full year of 2007 ended December 31, 2007 as well as provide updated financial guidance for 2008.
The conference call will take place at 4:30 p.m. EDT on Monday, March 31, 2008. Anyone interested in participating should call 1-800-762-8779 if calling within the United States or 1-480-248-5081 if calling internationally approximately 5 to 10 minutes prior to 4:30 p.m. EDT. Participants should ask for the China Direct 2007 Fourth Quarter Financial Results conference call/ Conference ID 3856868. There will be a playback available until April 15, 2008. To listen to the playback, please call 1-800-406-7325 if calling within the United States or 1-303-590-3030 if calling internationally. Please use the pass code 3856868 for replay.
This call is being webcast by ViaVid Broadcasting and can be accessed at China Direct's website at http://www.chinadirectinc.com . The webcast may also be accessed at ViaVid's website at http://www.viavid.net . The webcast can be accessed through April 15, 2008 on either site. To access the webcast, you will need to have the Windows Media Player on your desktop. For the free download of the Media Player, please visit: http://www.microsoft.com/windows/windowsmedia/en/download/default.asp
Monday March 31, 8:55 am ET
- Full year revenue reaches $174.24 million
- Full year net income increases to $11.83 million
- Full year basic EPS rises to $0.75 per share
- Full year fully-diluted EPS rises to $0.67 per share
- Company to provide updated earnings guidance for 2008 during today's 4:30 p.m. EDT Conference Call.
DEERFIELD BEACH, Fla., March 31 /PRNewswire-FirstCall/ -- China Direct, Inc. (Amex: CDS - News), a U.S. company that owns controlling stakes in a diversified portfolio of Chinese entities and assists Chinese businesses in accessing the U.S. capital markets, announced today the Company's audited financial results for the fourth quarter of 2007 and the full year ended December 31, 2007.
Financial Highlights
The Full Year Financial Performance
Revenues for 2007 increased to $174.24 million, as compared to revenues of $13.98 million for 2006.
Gross profit for 2007 was $18.79 million, as compared to $1.47 million for 2006. Total operating expenses for 2007 increased to $4.48 million, as compared to $1.93 million for 2006. Operating expenses as a percentage of gross profit declined in 2007 to 23.8% down from $131.3% in 2006. Operating income was $14.31 million for 2007 versus a loss of $459,207 for 2006, yielding an operating profit margin of 8.2% in 2007.
Net income for 2007 increased to $11.83 million as compared to net income of $169,322 in 2006. The basic earnings were $0.75 per share as compared to $0.02 per share for 2006 on a weighted average basis. On a fully diluted basis, the earnings per share for 2007 were $0.67 per share as compared to $0.01 per share for 2006 on a weighted average basis. The net profit margin in 2007 improved to 6.8% from 1.2% in 2006.
Marc Siegel, President of China Direct, stated, "We continue to be very pleased with the financial performance of our four segments in 2007, and we are particularly encouraged by the synergies we are starting to realize from the recent acquisitions to our magnesium segment. We believe the expansion of our magnesium segment has brought us significantly closer to achieving our goal of becoming the global leader in the production and distribution of magnesium. We continue to seek acquisitions in this segment that allow us to drive growth through manufacturing cost savings and distribution reach."
The Fourth Quarter Financial Performance
Revenues for the fourth quarter ended December 31, 2007 increased to $58.27 million as compared to revenues of $13.50 million in the fourth quarter ended December 31, 2006. The increase in revenues was mainly attributable to increased sales from our Magnesium and Clean Technology segments acquired during 2007, as well as a strong performance from both Lang Chemical and our Consulting segment. Additionally, revenue in the fourth quarter of 2007 increased 31% sequentially from revenues of $44.58 million in the third quarter of 2007, driven by our magnesium business.
Gross profit for the fourth quarter of 2007 was $6.82 million as compared to $1.33 million in the fourth quarter ended December 31, 2006. Total operating expenses for the fourth quarter of 2007 increased to $1.68 million compared to $819,336 in the fourth quarter of 2006. The increase in operating expenses in the fourth quarter of 2007 reflects the continued increases to our operations in China associated with our new subsidiaries and staff additions both in the U.S. and China associated with the financial management and integration of our expanding operations. The Company also experienced increases in travel expenses, professional consulting fees, professional insurance premiums, as well as non-cash option charges for employees, management, and professional advisors. Operating income was $5.14 million and $514,266 for the fourth quarter of 2007 and 2006, yielding operating margins of 8.8% and 3.7%, respectively.
Net income for the fourth quarter of 2007 increased to $4.71 million, or $0.23 per basic share, as compared to net income of $557,153 or $0.05 per basic share for the fourth quarter of 2006. On a fully diluted basis, earnings per share for the fourth quarter of 2007 were $0.20 per share as compared to $0.04 per share for the fourth quarter of 2006. Additionally, net income was up 59% sequentially from net income of $2.98 million in the third quarter of 2007. The net profit margin improved to 8.1% in the fourth quarter of 2007 from 4.1% in the fourth quarter of 2006.
Balance Sheet
At December 31, 2007, total assets were $88.29 million, an increase of 324% from $20.84 million at December 31, 2006. At December 31, 2007, shareholder equity reached $42.82 million, an increase of 630% from $5.86 million at December 31, 2006. At December 31, 2007, cash and cash equivalents were $20.39 million and working capital was approximately $40.88 million, an increase of 570% and 502% from cash and cash equivalents of $3.03 million and working capital of approximately $6.79 million at December 31, 2006, respectively.
2008 Financial Guidance
The Company sees continued robust growth in both revenue and earnings for 2008 and will provide updated earnings guidance for 2008 during its conference call today, March 31, 2008 at 4:30 PM EDT.
Mr. Siegel concluded, "We remain focused on generating internal growth of at least 30% in 2008, as we integrate our recently acquired business operations. We see continued improvement in our average contract price for magnesium in 2008 as pre sold contracts from 2007 expire and new sales contracts are made at current price levels. We are confident we can continue to make strategic and opportunistic acquisitions in China and believe we have gained substantial experience in 2007. Throughout the past year we have steadily built a cohesive team which has positioned China Direct to continue its expansion in 2008 and beyond. We remain excited by the opportunities in China and continue to work responsibly and aggressively on behalf of our shareholders. We believe 2008 will be another record breaking year for China Direct."
China Direct Conference Call to discuss the Company's financial results for the fourth quarter of 2007 and the full year of 2007 ended December 31, 2007 as well as provide updated financial guidance for 2008.
The conference call will take place at 4:30 p.m. EDT on Monday, March 31, 2008. Anyone interested in participating should call 1-800-762-8779 if calling within the United States or 1-480-248-5081 if calling internationally approximately 5 to 10 minutes prior to 4:30 p.m. EDT. Participants should ask for the China Direct 2007 Fourth Quarter Financial Results conference call/ Conference ID 3856868. There will be a playback available until April 15, 2008. To listen to the playback, please call 1-800-406-7325 if calling within the United States or 1-303-590-3030 if calling internationally. Please use the pass code 3856868 for replay.
This call is being webcast by ViaVid Broadcasting and can be accessed at China Direct's website at http://www.chinadirectinc.com . The webcast may also be accessed at ViaVid's website at http://www.viavid.net . The webcast can be accessed through April 15, 2008 on either site. To access the webcast, you will need to have the Windows Media Player on your desktop. For the free download of the Media Player, please visit: http://www.microsoft.com/windows/windowsmedia/en/download/default.asp