China TransInfo Announces Record Third Quarter Results
Copyright 2010 PR Newswire. All Rights Reserved
2009-11-12
BEIJING, China, Nov. 12 /PRNewswire-Asia-FirstCall/ -- China TransInfo
Technology Corp., (Nasdaq: CTFO), ("China TransInfo" or "the Company"), a
leading provider of public transportation information systems technology and
comprehensive solutions in the People's Republic of China ("PRC"), today
announced its financial results for the third quarter ended September 30, 2009.
Third Quarter 2009 Highlights
-- Revenues increased 115.0% to $19.2 million, from $8.9 million in the
comparable period of 2008.
-- Gross profit increased 49.1% to $7.4 million, as compared to $4.9
million for the same period of last year.
-- Operating income grew 28.0% to $4.3 million, from $3.3 million for
the same period of last year.
-- Net income attributable to China TransInfo increased 28.3% to $4.0
million, or $0.18 per fully diluted share, as compared to $3.1
million, or $0.14 per fully diluted share, in the comparable period
of 2008.
-- Expanded further into the transportation systems market in China by
acquiring a 35.17% of the equity interest in Beijing UNISITS
Technology Co. Ltd. ("UNISITS").
-- Launched TransPLE Passenger Flow Statistic, Detecting and Analysis
System ("TransPLE") and China's first multi-city real-time traffic
website (http://www.palmcity.cn ) and mobile phone software with
initial coverage in Chinese cities, including Beijing, Shanghai,
Chongqing, Chengdu, and Wuhan.
-- Awarded a RMB 31.8 million (approximately $4.7 million) contract by
the Wuhan Municipal Transportation Management Bureau to construct a
transportation management system (the "Wuhan Project").
-- Established a subsidiary in Chongqing and opened a branch in
Hangzhou.
-- Transferred the listing of its common stock to the Nasdaq Global
Market from the Nasdaq Capital Market.
"During the third quarter of 2009, we achieved strong progress in many of our
key business segments," said Mr. Shudong Xia, Chief Executive Officer of China
TransInfo. "Our newly launched TransPLE and multi-city real-time traffic website
and mobile phone software are backed by our proprietary advanced technologies.
Both applications feature strong market potential in their respective niches. In
addition to our geographic expansion in Hangzhou and Chongqing, we have
continued to improve our business presence in our existing markets, including
the recently announced RMB 31.8 million (approximately $4.7 million) contract
with the Wuhan government to construct a transportation management system.
Through our controlling interest in UNISITS, we expect to further increase our
market penetration and tap the potentially lucrative domestic expressway
information service market."
Third Quarter 2009 Results
During the three months ended September 30, 2009, revenues increased 115.0% to
$19.2 million, from $8.9 million during the same quarter of 2008, primarily due
to increased business and brand recognition in the transportation information
sector. Revenues from our transportation, digital city, and land & resource
segments accounted for 90.7%, 4.1%, and 5.1% of total revenues, respectively.
Gross profit increased 49.1% to $7.4 million, as compared to $4.9 million in the
same period of 2008. Gross margin decreased to 38.4% from 55.4% in the
comparable period of 2008, mainly due to the inclusion of UNISITS' financials in
the Company's consolidated financial statements since UNISITS concentrates on
lower margin traffic engineering E&M systems for expressways in China. Our
legacy business continues to remain strong with gross margins above 50% in the
three months ended September 30, 2009.
Selling, general and administrative expenses were $3.1 million, as compared to
$1.6 million in the third quarter of 2008, including a $0.5 million increase in
selling expenses to $0.6 million. Beginning in 2009, the Company strategically
increased its marketing budget to grow its brand awareness in the transportation
information sector. For example, the Company has attended more industry trade
shows and conferences in 2009 than in previous years. General and administrative
expenses were approximately $2.5 million, as compared to $1.5 million in the
same period of 2008. The significant increase in general and administrative
expenses was mainly due to increased staffing levels, additional research and
development initiatives, and higher professional fees associated with being a
public company.
Operating income increased 28.0% to $4.3 million, or 22.2% of revenue, from $3.3
million, or 37.3% of revenue, in the third quarter of 2008.
Net income attributable to the Company increased 28.3% to $4.0 million, or $0.18
per fully diluted share, compared to net income of $3.1 million, or $0.14 per
fully diluted share, during the same quarter of 2008. Adjusted net income
attributable to the Company excluding non-cash expenses was $4.0 million, or
$0.18 per fully diluted share, compared to $3.2 million, or $0.15 per fully
diluted share, in the same period last year.
The diluted weighted average number of shares outstanding increased from 21.5
million in the third quarter of 2008 to 22.6 million in the quarter ended
September 30, 2009 mainly due to the issuance of additional shares from the
private placement in July 2008.
Nine Months 2009 Results
In the nine months ended September 30, 2009, revenues increased 88.7% to $35.3
million, as compared to $18.7 million in the same period of 2008. Gross profit
increased 47.3% to $15.4 million, from $10.4 million in the comparable period of
2008. Gross margin was 43.6%, as compared to 55.8% in the year ago period.
Operating income rose 16.6% to $8.6 million, as compared to $7.3 million in the
same period last year. Net income attributable to China TransInfo increased
18.0% to $8.2 million, or $0.37 per fully diluted share, from $7.0 million, or
$0.34 per fully diluted share, in the comparable period last year. Adjusted net
income attributable to China TransInfo excluding non-cash expenses was $8.4
million, or $0.38 per share on a fully diluted basis, compared to $7.1 million,
or $0.35 per share on a fully diluted basis, in the same period of 2008.
Financial Condition
As of September 30, 2009, cash and cash equivalents excluding restricted cash
totaled $21.1 million as compared to $16.1 million on December 31, 2008. In
addition, the Company reported working capital of $39.1 million and total
current liabilities of $47.4 million. Stockholders' equity totaled $69.6
million, up from $47.6 million at the end of 2008.
Net cash used in operations was $2.4 million for the nine months ended September
30, 2009, compared with net cash provided by operations of $1.3 million for the
same period in 2008.
Business Outlook
"In addition to launching our TransPLE and real-time traffic website, we
recently added our mobile phone application, Palmcity Live-Traffic, to China
Telecom's Surfing Space AppMarket. As a result, we are well-positioned to
benefit from China's rapidly developing transportation infrastructure and growth
in private vehicle ownership. As of September 30, 2009 our contract backlog was
approximately $60 million, which we believe will enable us to meet our financial
goals for 2009. In addition, we are very pleased with our controlling position
in UNISITS, which is expected to further expand our footprint in the
transportation systems market in China," commented Mr. Xia.
As a result of the strong top line growth in the first nine months of 2009 as
well as our consolidation of UNISITS' financials, China TransInfo has increased
its fiscal year 2009 revenue guidance under US GAAP from previously announced
$45.0 million to approximately $55.0 million and now expects net income,
excluding amortizations of intangible assets from acquisitions as well as
non-cash share-based compensation, to be between $13.3 and $13.5 million for
fiscal year 2009.
Conference Call
China TransInfo will host a conference call at 8:00 a.m. Eastern time on
Thursday, November 12, 2009 to discuss its third quarter 2009 results. To
participate in the live conference call, please dial the following number five
to ten minutes prior to the scheduled conference call time: 1-888-339-2688.
International callers should dial +1-617-847-3007. When prompted by the
operator, mention conference pass code 809 092 57.
If you are unable to participate in the call at this time, a replay will be
available for seven days after the call is held. To access the replay, please
dial 1-888-286-8010 or +1-617-801-6888 from outside the US and enter pass code
226 532 06.
In addition, the call will be broadcast live over the internet via the following
link:
http://www.chinatransinfo.com/WebCast.aspx?sortId=44&sortPId=5
Use of Non-GAAP Financial Information
GAAP results for the three month and nine month periods ended September 30, 2009
include non-cash share based compensation and amortization of intangible assets
from acquisitions. To supplement the Company's condensed consolidated financial
statements presented on a GAAP basis, the Company has provided non-GAAP
financial information, which is adjusted net income and adjusted earnings per
share, excluding the impact of these items in this release. The Company's
management believes that these non-GAAP measures provide investors with a better
understanding of how the results relate to the Company's historical performance.
Management believes that these non-GAAP financial measures are useful to
investors because they exclude non-cash expenses that management excludes when
it internally evaluates the performance of the Company's business and makes
operating decisions, including internal budgeting, and performance measurement,
because these measures provide a consistent method of comparison to historical
periods. Moreover, management believes that these non-GAAP measures reflect the
essential operating activities of the Company. In addition, the provision of
these non-GAAP measures allows investors to evaluate the Company's performance
using the same methodology and information as that used by the Company's
management. Non-GAAP measures are subject to inherent limitations because they
do not include all of the expenses included under GAAP and because they involve
the exercise of judgment of which charges are excluded from the non-GAAP
financial measure. However, the Company's management compensates for these
limitations by providing the relevant disclosure of the items excluded. A
reconciliation of adjustments to GAAP results appears below. This additional
non-GAAP information is not meant to be considered in isolation or as a
substitute for GAAP financials. The non-GAAP financial information that the
Company provides also may differ from the non-GAAP information provided by other
companies.
About China TransInfo
China TransInfo, through its affiliate, China TransInfo Technology Group Co.,
Ltd., (the "Group Company") and the Group Company's PRC operating subsidiaries,
is primarily focused on providing transportation information services and
comprehensive solutions based on GIS technologies. The Company aims to become
the largest transportation information products and comprehensive solutions
provider, as well as the largest real time transportation information platform
operator and provider in China. In addition, the Company is developing its
transportation system to include Electronic Toll Collection (ETC) technology. As
the co-formulator of several transportation technology national standards, the
Company owns software copyrights for 88 software products and has won 5 of the
10 model cases sponsored by the PRC Ministry of Communications. The Company's
affiliation with Peking University provides the Company access to the
University's GeoGIS Research Laboratory, including over 30 Ph.D. researchers. As
a result, the Company is playing a key role in setting the standards for
electronic transportation information solutions. For more information, please
visit the Company's website at http://www.chinatransinfo.com .
Safe Harbor Statement
This press release contains certain statements that may include "forward looking
statements". All statements other than statements of historical fact included
herein are "forward-looking statements". These forward looking statements are
often identified by the use of forward-looking terminology such as "believes,"
"expects" or similar expressions, involve known and unknown risks and
uncertainties. Although the Company believes that the expectations reflected in
these forward-looking statements are reasonable, they do involve assumptions,
risks and uncertainties, and these expectations may prove to be incorrect. You
should not place undue reliance on these forward-looking statements, which speak
only as of the date of this press release. The Company's actual results could
differ materially from those anticipated in these forward-looking statements as
a result of a variety of factors, including those discussed in the Company's
periodic reports that are filed with the Securities and Exchange Commission and
available on its website (http://www.sec.gov ). All forward-looking statements
attributable to the Company or persons acting on its behalf are expressly
qualified in their entirety by these factors. Other than as required under the
securities laws, the Company does not assume a duty to update these
forward-looking statements.
For more information, please contact:
China TransInfo Technology Corp.
Ms. Fan Zhou, IR Director
Tel: +86-10-8267-1299 x8033
Email: ir@ctfo.com
CCG Investor Relations Inc.
Mr. Crocker Coulson, President
Tel: +1-646-213-1915 (New York)
Email: crocker.coulson@ccgir.com
Web: http://www.ccgirasia.com
--FINANCIAL TABLES FOLLOW--
CHINA TRANSINFO TECHNOLOGY CORP. AND ITS SUBSIDIARIES UNAUDITED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
Revenues $19,165,553 8,913,514 $35,256,869 $18,685,813
Cost of revenues 11,809,948 3,979,049 19,896,690 8,258,137
Gross profit 7,355,605 4,934,465 15,360,179 10,427,676
Operating Expenses 3,097,483 1,607,712 6,797,818 3,085,992
Income from operations 4,258,122 3,326,753 8,562,361 7,341,684
Other income
(expense):
Interest income 18,909 23,575 51,392 50,759
Interest expense -42,038 -66,066 -132,027 -75,983
Subsidy income 188,829 305,804 308,113 305,804
Other incomes - net 52,433 4,239 59,301 --
Total other income
(expense) 218,133 267,552 286,779 280,580
Net income before
income taxes 4,476,255 3,594,305 8,849,140 7,622,264
Income tax expenses:
Current 94,980 -- 109,946 --
Deferred -9,116 109,864 -- 49,971
Total income tax
expense (benefit) 85,864 109,864 109,946 49,971
Net income including
noncontrolling
interest 4,390,391 3,484,441 8,739,194 7,572,293
Less: Net income
attributable to
noncontrolling
interests 415,114 386,900 515,588 601,691
Net income
attributable to CTFO $3,975,277 $3,097,541 $8,223,606 $6,970,602
Weighted average
CTFO shares of
outstanding -
Basic 22,333,000 21,325,245 22,245,288 20,175,820
Diluted 22,579,496 21,522,431 22,485,924 20,393,171
Earnings per share
attributable to CTFO
common shareholders -
Basic $0.18 $0.15 $0.37 $0.35
Diluted $0.18 $0.14 $0.37 $0.34
Comprehensive income
Net income including
noncontrolling
interest $4,390,391 3,484,441 $8,739,194 $7,572,293
Translation
adjustments -283,124 47,347 -388,589 1,375,751
Comprehensive income $4,107,267 $3,531,788 $8,350,605 $8,948,044
Comprehensive income
attributable to
noncontrolling
interest $415,114 $386,900 $515,588 $601,691
Comprehensive income
attributable to
CTFO $3,692,153 $3,144,888 $7,835,017 $8,346,353
CHINA TRANSINFO TECHNOLOGY CORP. AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
30-Sep-09 31-Dec-08
(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $21,125,873 $16,122,464
Restricted cash 2,261,141 1,209,542
Accounts receivable, net 15,313,210 7,735,742
Inventory 301,140 23,775
Cost and estimated earnings in
excess of billings on uncompleted
contracts 28,066,671 11,912,285
Prepayments 9,709,570 3,647,731
Other receivable 8,575,034 2,940,404
Deferred tax assets 218,417 211,708
Other current assets 903,644 --
Total current assets 86,474,700 43,803,651
Long-term investments 6,990,560 278,730
Property and equipment, net 9,786,144 9,874,005
Intangible assets, net 4,097,928 1,490,807
Goodwill 9,834,668 3,095,017
Other non-current assets 439,449 147,607
Total assets $117,623,449 $58,689,817
30-Sep-09 31-Dec-08
(Unaudited)
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $20,959,687 $5,518,402
Notes payable 7,481,700 2,934,000
Due to related parties 73,946 528,485
Billings in excess of costs and
estimated earnings on uncompleted
contracts 12,066,028 846,971
Deferred revenue 129,220 214,256
Other payable 4,653,184 149,282
Accrued liabilities 1,993,930 881,484
Total current
liabilities 47,357,695 11,072,880
Long-term liability 668,219 --
Total Liabilities 48,025,914 11,072,880
Commitments and contingencies -- --
Stockholders' equity:
China TransInfo Technology Corp.
Preferred stock, par
value $0.001 per share,
10,000,000 shares authorized
and 0 shares issued and
outstanding -- --
Common stock, par value $0.001
per share, 150,000,000 shares
authorized, 22,402,989 and
22,187,314 issued and
outstanding, respectively 22,403 22,187
Additional paid-in capital 24,930,192 24,654,890
Retained earnings 27,197,830 18,974,224
Accumulated other comprehensive
gain - translation adjustments 2,111,304 2,499,893
Total China TransInfo
Technology Corp.
shareholders' equity 54,261,729 46,151,194
Noncontrolling interest 15,335,806 1,465,743
Total stockholders' equity 69,597,535 47,616,937
Total liabilities and stockholders'
equity $117,623,449 $58,689,817
CHINA TRANSINFO TECHNOLOGY CORP. AND SUBSIDIARIES RECONCILIATION
OF NON-GAAP FINANCIAL DATA
For the three months ended For the nine months ended
30-Sep-09 30-Sep-08 30-Sep-09 30-Sep-08
Net Diluted Net Diluted Net Diluted Net Diluted
Income EPS Income EPS Income EPS Income EPS
Adjusted
Amount 4,049,363 0.18 3,161,487 0.15 8,432,861 0.38 7,133,174 0.35
Adjustments
Amortization
of intangible
assets from
acquisitions
(1) 18,594 0.00 4,348 0.00 27,315 0.00 5,803 0.00
Non-cash
share based
compen-
sation 55,542 0.00 59,598 0.00 181,940 0.01 156,769 0.01
Amount per
consoli-
dated
statement
of oper-
ations 3,975,227 0.18 3,097,541 0.14 8,223,606 0.37 6,970,602 0.34
1) Amortizations of intangible assets from acquisitions includes
amortizations of intangible assets from acquisitions of China
TranWiseway in 2008 and UNISITS in 2009
SOURCE China TransInfo Technology Corp.
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