NEW YORK, May 15, 2012 /PRNewswire-Asia/ -- Asia
Carbon Industries, Inc. ("Asia
Carbon", or the "Company") today announced its earnings for
the quarter ended March 31, 2012. The
Company, whose shares trade in the U.S. on the OTCQB Tier of the
OTC Markets under the stock symbol "ACRB", filed its quarterly
report on Form 10-Q with the Securities and Exchange Commission on
May 15, 2012.
Highlights of First Quarter 2012 Financials
- Revenues for the quarter ended March 31,
2012 were $12.6 million, down
6% from $13.4 million for the same
period in 2011.
- Gross profit was $2.93 million in
the quarter ended March 31, 2012, a
decrease of 8% from $3.18
million for the same period in 2011.
- Net income for the quarter ended March
31, 2012 was $1.81 million, a
decrease of 14% from $2.11 million
for the same period in 2011.
- Earnings per share remained at $0.04 for the quarter ended March 31, 2012 and 2011, respectively.
- Tonnage sales of carbon black increased to 12,573 tons in the
quarter ended March 31, 2012, up 3.5%
from 12,140 tons in the same period in 2011.
- Naphthalene oil sales more than doubled to 1,050 tons in the
quarter ended March 31, 2012, as
compared to 500 tons in the same period of 2011.
Sales for the three months ended March
31, 2012 totaled $12,581,692,
a decrease of $859,824, or 6%,
compared to $13,441,516 for the
comparable period of 2011. The decline in sales was mainly
attributable to the decrease in the market selling price of carbon
black.
Unit sales of carbon black products increased to 12,573 tons in
the quarter ended March 31, 2012, up
3.5% from 12,140 tons for the same period in 2011, while the
average sales price of these products decreased 13% to $933 per metric ton in the quarter ended
March 31, 2012 from $1,070 per ton in the quarter ended March 31, 2011. This decline of unit sales price
was somewhat offset by the increase in unit sales.
The Company's total carbon black production capacity was 61,000
tons per annum as of March 31, 2012
and 2011, respectively. The annualized production/total capacity
utilization rate was 82% and 80%, respectively, during three months
ended March 31, 2012 and 2011.
Gross profit was $2,925,952 in the
three months ended March 31, 2012, a
decrease of $255,480, or 8%, compared
to $3,181,432 in the three months
ended March 31, 2011. The gross
profit rate was 23% for the three months ended March 31, 2012, compared to 24% for the same
period in 2011.
Net income for the first quarter was $1,807,081 a decrease of 14%, compared to
$2,105,473 in the three months ended
March 31, 2011. Net income per share
was $0.04 in in the quarter ended
March 31, 2012 and 2011,
respectively.
Yao Guoyun, Asia Carbon's
Chairman of the Board and Chief Executive Officer, commented, "I am
pleased with Asia Carbon's
performance this quarter. Carbon black unit sales increased 3.5%
and naphthalene oil sales more than doubled compared to the same
period of 2011. And while our results were affected by depressed
carbon black market prices, we believe this trend has reversed and
anticipate that prices will shortly return to previous levels."
Ms. Yao further stated, "Carbon black is a critical material for
tire manufacturers, and China's
tire production continues to increase. This is true for our
customers, many of whom are expanding their operations. In order to
meet continuing demand for our products, management is evaluating a
number of options to build capacity, both organically and through
acquisitions. Either alternative would be funded through a
combination of operating income and outside sources."
|
COMPARISON OF SALES
FOR THE THREE MONTHS ENDED MARCH 31, 2012 AND 2011
|
|
|
2012
|
2011
|
|
Product
|
Sales
|
Quantity
|
Sales
|
Quantity
|
|
(Metric
Ton)
|
|
(Metric
Ton)
|
|
N220
|
$ 7,815,209
|
8,000
|
$ 8,572,852
|
7,683
|
|
N330
|
1,990,807
|
2,284
|
2,212,873
|
2,221
|
|
N660
|
1,922,322
|
2,289
|
2,207,716
|
2,236
|
|
Naphthalene
oil
|
853,354
|
1,050
|
448,075
|
500
|
|
Total Sales
|
$
12,581,692
|
13,623
|
$
13,441,516
|
12,640
|
|
ASIA CARBON
INDUSTRIES, INC. AND SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
|
|
(UNAUDITED)
|
|
|
|
|
Three Months Ended
March 31,
|
|
2012
|
2011
|
|
|
|
|
Net Sales
|
$
12,581,692
|
$
13,441,516
|
|
Cost of Sales
|
9,655,740
|
10,260,084
|
|
Gross Profit
|
2,925,952
|
3,181,432
|
|
|
|
|
Operating
Expenses:
|
|
|
|
Depreciation
|
25,808
|
56,919
|
|
Bad
debts
|
14,192
|
3,282
|
|
Selling
|
91,691
|
71,076
|
|
Professional
fees
|
106,500
|
108,897
|
|
Other
|
163,888
|
50,630
|
|
Total Operating
Expenses
|
402,079
|
290,804
|
|
Income From
Operations
|
2,523,873
|
2,890,628
|
|
Other Income
(Expense)
|
|
|
|
Interest
income
|
11,060
|
6,994
|
|
Interest
expense
|
(45,634)
|
(34,172)
|
|
Total Other Income
(Expense)
|
(34,574)
|
(27,178)
|
|
Income Before Provision
for Income Tax
|
2,489,299
|
2,863,450
|
|
Provision for Income
Tax
|
682,218
|
757,977
|
|
Net Income
|
1,807,081
|
2,105,473
|
|
|
|
|
Other Comprehensive
Income (Loss)
|
(15,411)
|
160,042
|
|
Comprehensive
Income
|
$
1,791,670
|
$
2,265,515
|
|
|
|
|
Net Income Per Share -
Basic
|
$
0.04
|
$
0.04
|
|
Weighted Average Shares
Outstanding - Basic
|
51,194,583
|
50,608,077
|
|
Net Income Per Share -
Diluted
|
$
0.04
|
$
0.04
|
|
Weighted Average Shares
Outstanding - Diluted
|
51,194,583
|
50,608,077
|
|
ASIA CARBON
INDUSTRIES, INC. AND SUBSIDIARIES
|
|
CONSOLIDATED BALANCE
SHEETS
|
|
|
March
31,
|
December
31,
|
|
2012
|
2011
|
|
ASSETS
|
(Unaudited)
|
|
|
Current
Assets:
|
|
|
|
Cash and
equivalents
|
$
7,748,503
|
$
8,092,411
|
|
Accounts
receivable, net
|
5,464,606
|
4,404,319
|
|
Inventories
|
3,290,128
|
3,146,756
|
|
Prepaid
expenses
|
343,852
|
11,138
|
|
Total Current
Assets
|
16,847,089
|
15,654,624
|
|
Property, Plant
and Equipment, Net
|
18,919,105
|
18,431,407
|
|
Other
Assets:
|
|
|
|
Land use rights,
net
|
215,761
|
217,145
|
|
Total Other
Assets
|
215,761
|
217,145
|
|
TOTAL
ASSETS
|
$
35,981,955
|
$
34,303,176
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
Liabilities:
|
|
|
|
Short term
debt
|
$
1,375,121
|
$
1,376,074
|
|
Accounts
payable
|
3,167,641
|
4,009,531
|
|
Accrued
liabilities
|
200,966
|
153,735
|
|
Taxes payable
|
876,970
|
694,219
|
|
Investor deposit
payable
|
-
|
49,985
|
|
Due to
shareholder
|
26,400
|
26,415
|
|
Total Current
Liabilities
|
5,647,098
|
6,309,959
|
|
|
|
|
Stockholders'
Equity:
|
|
|
|
Common stock, $0.001 par
value, 100,000,000 authorized, 52,134,830 and 50,978,580
issued and outstanding at March 31, 2012 and December 31, 2011,
respectively
|
52,135
|
50,979
|
|
Additional paid-in
capital
|
6,491,153
|
5,942,339
|
|
Statutory
reserves
|
2,025,737
|
2,025,737
|
|
Retained
earnings
|
18,945,194
|
17,138,113
|
|
Accumulated other
comprehensive income
|
2,820,638
|
2,836,049
|
|
Total Stockholders'
Equity
|
30,334,857
|
27,993,217
|
|
|
|
|
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY
|
$
35,981,955
|
$
34,303,176
|
About Asia Carbon Industries, Inc.
Asia Carbon Industries Inc. is an emerging, China-based producer of a series of high
quality carbon black products under the brand name "Great Double
Star". The Company was established in 2003 in Shanxi, China's highest coal producing
province. Asia Carbon is one of the
top ten carbon black producers in the province and has established
relationships with a high-profile customer base. The Company went
public in 2010 through a registration statement on Form S-1 which
was declared effective by the SEC on October
26, 2010, and is currently in the process of expanding its
manufacturing capacity to meet the anticipated demand.
This release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of
these securities in any state in which such offer, solicitation or
sale would be unlawful prior to registration or qualification under
the securities laws of any such State.
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.
Company contact:
Michael Segal
Asia Carbon Industries, Inc.
Phone +1-646-623-6999
SOURCE Asia Carbon Industries, Inc.