- 1Q09 Revenue Increases 32.1% YoY to
- 1Q09 Gross Margin Increases859 Basis PointsYoY to 52.0% -
- 1Q09 Net IncomeIncreases 49.6%YoY to
-1Q09 Diluted EPS Increases 52.6% to $0.29 -
First Quarter 2009 Results
Revenue in the first quarter of 2009 increased 32.1% to
Gross profit in the first quarter of 2009 increased 58.2% to
Operating income in the first quarter of 2009 increased 47.8% to
Net income in the first quarter of 2009 increased 49.6% to
Mr. Qinan Ji, Chairman and CEO of China Natural Gas, commented, "We are pleased with strong financial performance in the first three months of 2009. During this quarter, we signed an agreement with the governments of Yulin city and
Liquidity and Capital Resources
As of
Reverse Stock Split
All share and per share amounts used in the Company's discussion on financial results, consolidated financial statements and notes thereto have been retroactively restated to reflect the 1-for-2 reverse stock split, which was effected on
Financial Outlook for 2009
The Company anticipates full year 2009 revenue will grow 15% to 20% to a range of
Mr. Ji concluded, "As demonstrated by our strong performance in revenue growth, gross margin expansion, and solid cash flows, the first quarter is a good start for China Natural Gas in 2009. We are very pleased with the arrival of Ms.
Conference Call
The management team will hold a conference call on
About China Natural Gas, Inc.
China Natural Gas, Inc., ("CHNG"), is the first
This press release may contain forward-looking statements. These statements are based on the current expectations or beliefs of China Natural Gas, Inc. management and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements, including the progress of construction and development activities, fluctuation of natural gas prices, the availability of natural gas supplies, changes in governmental regulations and/or economic policies.
CHINA NATURAL GAS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2009 AND 2008 (Unaudited) Three Months Ended March 31, 2009 2008 Revenue Natural gas revenue $ 14,965,819 $ 11,345,319 Gasoline revenue 1,174,398 1,130,750 Installation and other 2,387,449 1,549,605 Total revenue 18,527,666 14,025,674 Cost of revenue Natural gas cost 6,746,929 6,182,274 Gasoline cost 1,130,057 1,068,037 Installation and other 1,017,028 686,887 Total cost of revenue 8,894,014 7,937,198 Gross profit 9,633,652 6,088,476 Operating expenses Selling expenses 2,324,228 1,341,614 General and administrative expenses 1,681,921 939,325 Total operating expenses 4,006,149 2,280,939 Income from operations 5,627,503 3,807,537 Non-operating income (expense): Interest income 8,908 55,285 Interest expense (581,492) (359,660) Other income (expense), net (2,303) 304 Change in fair value of warrant 197,051 - Foreign currency exchange loss (50,788) (7,430) Total non-operating expense (428,624) (311,501) Income before income tax 5,198,879 3,496,036 Provision for income tax 997,256 687,465 Net income 4,201,623 2,808,571 Other comprehensive income Foreign currency translation gain (loss) (152,115) 2,303,002 Comprehensive income $ 4,049,508 $ 5,111,573 Weighted average shares outstanding Basic 14,600,152 14,600,152 Diluted 14,600,152 14,667,042 Earnings per share Basic $ 0.29 $ 0.19 Diluted $ 0.29 $ 0.19 CHINA NATURAL GAS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS AS OF MARCH 31, 2009 AND DECEMBER 31, 2008 March 31, December 31, 2009 2008 (Unaudited) ASSETS ------ CURRENT ASSETS: Cash & cash equivalents $ 9,058,361 $ 5,854,383 Accounts receivable 946,047 906,042 Other receivable - employee advances 180,205 332,263 Inventories 488,221 519,739 Advances to suppliers 684,632 837,592 Prepaid expense and other current assets 953,578 838,294 Loan receivable 293,000 293,400 Total current assets 12,604,044 9,581,713 PROPERTY AND EQUIPMENT, NET 74,549,788 76,028,272 CONSTRUCTION IN PROGRESS 25,110,473 22,061,414 DEFERRED FINANCING COSTS 1,644,372 1,746,830 OTHER ASSETS 9,278,092 8,844,062 TOTAL ASSETS $123,186,769 $118,262,291 LIABILITIES AND STOCKHOLDERS' EQUITY ------------------------------------ CURRENT LIABILITIES: Accounts payable and accrued liabilities $ 1,103,837 $ 800,013 Other payables 336,936 124,151 Unearned revenue 1,138,536 944,402 Accrued interest 531,111 861,114 Taxes payable 1,904,943 1,862,585 Total current liabilities 5,015,363 4,592,265 LONG TERM LIABILITIES: Notes payable, net of discount $14,844,315 and $15,478,395 as of March 31, 2009 and December 31, 2008, respectively 25,155,685 24,521,605 Redeemable liabilities - warrants 17,500,000 17,500,000 Derivative liabilities - warrants 817,257 - Total long term liabilities 43,472,942 42,021,605 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY: Preferred stock, $0.0001 per share; 5,000,000 shares authorized; none issued - - Common stock, $0.0001 per share; 45,000,000 shares authorized, 14,600,152 shares issued and outstanding at March 31, 2009 and December 31, 2008 1,460 1,460 Additional paid-in capital 25,271,339 32,115,043 Cumulative translation adjustment 8,508,945 8,661,060 Statutory reserves 4,284,815 3,730,083 Retained earnings 36,631,905 27,140,775 Total stockholders' equity 74,698,464 71,648,421 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $123,186,769 $118,262,291 CHINA NATURAL GAS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2009 AND 2008 (Unaudited) Three Months Ended March 31, 2009 2008 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $4,201,623 $ 2,808,571 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 1,389,565 656,587 Loss on disposal of building improvements and equipment - 11,957 Amortization of discount on senior notes 170,712 146,663 Amortization of financing costs 38,578 56,270 Stock based compensation 14,842 - Change in fair value of warrants (197,051) - Change in assets and liabilities: Accounts receivable (41,244) (163,656) Other receivable - employee advances 151,617 - Inventories 30,812 (782,687) Advances to suppliers 151,828 63,341 Prepaid expense and other current assets (100,912) (257,016) Accounts payable and accrued liabilities 304,860 95,847 Other payables 212,961 1,129 Unearned revenue 195,435 22,709 Accrued interest (330,003) 73,717 Taxes payable 44,898 768,939 Net cash provided by operating activities 6,238,521 3,502,371 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property and equipment (13,484) (555,720) Proceeds from short term investments - 243,200 Additions to construction in progress (2,552,098) (9,586,215) Prepayment on long term assets (426,913) (4,128,711) Payment for intangible assets (35,822) - Payment for land use rights - (25,091) Net cash used in investing activities (3,028,317) (14,052,537) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from senior notes - 40,000,000 Payment for offering costs - (2,122,509) Net cash provided by financing activities - 37,877,491 Effect of exchange rate changes on cash and cash equivalents (6,226) 635,076 NET INCREASE IN CASH & CASH EQUIVALENTS 3,203,978 27,962,401 CASH & CASH EQUIVALENTS, BEGINNING OF PERIOD 5,854,383 13,291,729 CASH & CASH EQUIVALENTS, END OF PERIOD $9,058,361 $41,254,130 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Interest paid, net of capitalized interest $1,084,130 $ - Income taxes paid $ 997,257 $ 57,893
SOURCE China Natural Gas, Inc.