BEIJING, May 14, 2012 /PRNewswire-Asia-FirstCall/ -- China
TransInfo Technology Corp. (NASDAQ: CTFO) ("China TransInfo" or the
"Company"), a leading provider of comprehensive intelligent
transportation systems ("ITS") in China through its affiliate, China TransInfo
Technology Group Co., Ltd. (the "Group Company"), today reported
financial results for the first quarter ended March 31, 2012.
First-Quarter 2012 Highlights:
- Revenues decreased 20.7% year over year to $28.9 million
- Net income was $2.4 million, or
$0.10 per diluted share
- Adjusted net income was $2.7
million, or $0.11 per diluted
share(*)
- Backlog increased to approximately $194
million
"Although first-quarter revenues declined year-over-year, this
was primarily due to the timing of contract progress and execution,
and we won nearly $58 million in new
contracts in the quarter versus $13
million a year ago. Moreover, our backlog increased by
12% to approximately $194 million,
indicating a stronger book of business for China TransInfo,"
commented Mr. Shudong Xia. "On the
bottom line, we maintained solid profitability despite the lower
revenue level and a higher tax rate. We remain committed to growing
our business alongside the favorable dynamics of China's transportation market."
First-Quarter 2012 Results
For the quarter ended March 31,
2012, revenue decreased 20.7% to $28.9 million from $36.5
million in the year-ago quarter. The decrease in
revenue was driven primarily by a 20.5% decrease in transportation
revenue, mainly due to fluctuations in the progress of existing
contracts and execution in the ITS business. Revenue from
products and applications in the transportation business sector was
$27.9 million, or 96.5% of total
revenue, compared to $35.1 million,
or 96.3% of total revenue, in the year-ago quarter. The
remainder of revenue derived from other business categories.
Gross profit decreased 7.8% to $9.6
million in the first quarter of 2012, as compared to
$10.4 million in the year-ago
quarter. The gross margin in the first quarter of 2012 increased to
33.1% from 28.5% in the year-ago quarter, mainly due to
higher-margin projects executed during the quarter versus the
year-ago quarter. This represents a year-over-year margin
improvement of approximately 465 basis points versus 28.5% in the
year-ago quarter.
Selling expenses were $1.1
million, compared to $0.8
million in the first quarter of 2011, mainly due to enhanced
effort for new contract bidding activity, which incurred greater
travel and sales-administration expenses. General and
administrative expenses were $5.9
million, compared to $5.5
million in the year-ago quarter. The increase was primarily
due to the development of Beijing Transwiseway's commercial vehicle
location-based services (LBS) business, which incurred higher labor
and administrative expenses. Total operating expenses were
$6.9 million, an increase of 9.7%
from $6.3 million in the year-ago
quarter. Operating income decreased to $2.6
million from $4.1 million in
the first quarter of 2011.
In the first quarter, subsidy income was $0.6 million, as compared to $0.2 million in the year-ago quarter.
Net income decreased 18.5% to $2.4
million, or $0.10 per diluted
share, compared to $3.0 million, or
$0.12 per diluted share, in the
year-ago quarter. Adjusted net income, which excludes $0.3 million in non-cash stock-based compensation
expense and $0.01 million in
intangible amortization expense from acquisitions, decreased 19.2%
to $2.7 million, or $0.11 per diluted share, compared to $3.3 million, or $0.13 per diluted share, in the comparable period
of 2011(*). Weighted average diluted shares outstanding
increased to 25,280,702 shares from 25,273,542 shares in the
year-ago quarter.
(*) Please refer to the table at the end of this press release
for a reconciliation of net income and diluted earnings per share
("EPS") to exclude non-cash stock-based compensation and
amortization expense of intangibles from acquisitions.
Financial Condition
As of March 31, 2012, cash and
cash equivalents totaled $31.8
million, compared to $45.0
million as of December 31,
2011. For the quarter ended March 31,
2012, cash flow from operations was an outflow of
$9.4 million. Working capital
increased to $102.9 million compared
to $97.3 million as of December 31, 2011. Stockholders' equity was
$157.4 million compared to
$149.9 million as of December 31, 2011.
Business Outlook
China TransInfo has successfully developed a first-generation
commercial vehicle monitoring and control platform for the Ministry
of Transport. To date, the Company has recorded more than 1.39
million vehicles registered on the platform and approximately
491,000 active users. In addition, the Company's variable interest
entity, Beijing Zhangcheng Science and Technology Co., Ltd.
officially released its new pedestrian navigation product named
"PalmGo" on April 26, 2012. PalmGo is
an application for Android-based smartphones which guides users to
reach their destination via various public transportation options
including buses, subways, and by walking. Moreover, PalmGo provides
public transport information, such as estimated arrival times for
selected transport connections and also provides walking
navigation, voice navigation, point-of-interest (POI) location,
among other features.
Mr. Xia continued, "At the end of the first quarter, our sales
backlog was approximately $194
million, compared to $173
million at the end of 2011. We signed roughly $57.85 million in contracts during the first
quarter. For 2012, we continue to expect revenues of
approximately $170 million and
adjusted net income of approximately $14
million, excluding non-cash, stock-based compensation
expense and amortization expense of intangibles from
acquisitions."
Conference Call
The Company will host a conference call on Monday, May 14, 2012, at 8:00 a.m. Eastern Daylight Time to discuss its
financial results for the first quarter ended March 31, 2012.
The earnings release will be available on the Investor Relations
page of the Company's website at:
http://www.chinatransinfo.com/news.html.
To participate in the live conference call, please dial the
following number five to ten minutes prior to the scheduled
conference call time: (866) 759-2078. International callers should
dial +1 (706) 643-0585. When prompted by the operator, enter
conference pass code 79509439.
A replay will be available for 14 days starting on Monday, May 14, 2012 at 10:00 a.m. Eastern Daylight Time and can be
accessed by dialing (855) 859-2056. International callers should
dial +1 (404) 537-3406. When prompted, enter conference pass code
79509439.
An archived webcast of the call will be available on the
Company's website at
http://www.chinatransinfo.com/WebCast.aspx?sortId=44&sortPId=5.
To listen to the live webcast, please go to the Company's website
at least fifteen minutes prior to the start of the call to
register, download and install any necessary audio software.
Use of Non-GAAP Financial Information
GAAP results for the three months ended March 31, 2012 and 2011 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 are 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. The additional adjusted information is not meant to be
considered in isolation or as a substitute for GAAP financials. The
adjusted financial information that the Company provides also may
differ from the adjusted information provided by other companies.
Management believes that these adjusted 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, as these measures
provide a consistent method of comparison to historical periods. As
a result, the provision of these adjusted measures allows investors
to evaluate the Company's performance using the same methodology
and information as that used by the Company's management. Moreover,
management believes that these adjusted measures reflect the
essential operating activities of the Company. 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 adjusted 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 in Table 1 below.
CHINA
TRANSINFO TECHNOLOGY CORP. AND SUBSIDIARIES
Table 1
- Reconciliation of Non-GAAP Financial Data
|
|
For the
three months ended
|
For the
three months ended
|
|
March 31,
2012,
|
March 31,
2011,
|
|
Net
Income
|
Diluted
EPS
|
Net
Income
|
Diluted
EPS
|
Amount per
consolidated statement of operations
|
$2,419,296
|
$0.10
|
$2,967,276
|
$0.12
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
Amortization of intangible assets from acquisitions
(1)
|
11,275
|
0.00
|
48,850
|
0.00
|
Non-cash
share based compensation
|
252,671
|
0.01
|
302,937
|
0.01
|
|
|
|
|
|
Adjusted Amount
|
$2,683,241
|
$0.11
|
$3,319,063
|
$0.13
|
(1)
Amortization of intangible assets from acquisitions of Beijing
Transwiseway in 2008 and UNISITS in 2009.
|
About China TransInfo
China TransInfo, through its affiliate, the Group Company and
the Group Company's PRC operating subsidiaries, is primarily
focused on providing urban and highway transportation management
solutions and information services. The Company is a leading
transportation information products and comprehensive solutions
provider, and aims to be the largest real time transportation
information service provider and major fleet management service
provider in China. As the
co-formulator of several transportation technology national
standards, the Company owns nine patents and has won a majority of
the model cases awarded by the PRC Ministry of Transport. As a
result, the Company is playing a key role in setting the standards
for transportation information solutions in China. 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.
Company
Contact:
Ms. Fan Zhou, Investor Relations Director
China
TransInfo Technology Corp.
E-mail:
ir@ctfo.com
Tel: + 86
10–5169 1657
|
Investor Relations Contact:
Mr. John
Harmon, CFA, Sr. Acct. Manager
CCG
Investor Relations
E-mail:
john.harmon@ccgir.com
Tel: +86
10–8573 1014
Website:
www.ccgirasia.com
|
- FINANCIAL TABLES FOLLOW
-
CHINA
TRANSINFO TECHNOLOGY CORP.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND
COMPREHENSIVE INCOME
|
|
|
Three Months Ended March, 31,
|
|
|
2012
|
|
2011
|
Net
sales
|
|
$
|
28,928,717
|
|
$
|
36,499,159
|
Cost of
sales
|
|
|
(19,346,112)
|
|
|
(26,106,038)
|
Gross
profit
|
|
|
9,582,605
|
|
|
10,393,121
|
Total
operating expenses
|
|
|
(6,937,046)
|
|
|
(6,321,059)
|
Income
from operations
|
|
|
2,645,559
|
|
|
4,072,062
|
Non-operating income (expense):
|
|
|
|
|
|
|
Interest
income
|
|
|
34,888
|
|
|
39,726
|
Interest
expense
|
|
|
(109,464)
|
|
|
(250,573)
|
Subsidy
income
|
|
|
646,001
|
|
|
195,626
|
Other
income, net
|
|
|
153,008
|
|
|
75,476
|
Total
non-operating income
|
|
|
724,433
|
|
|
60,255
|
|
|
|
|
|
|
|
Income
before income taxes, noncontrolling interests, and gain on equity
investments in affiliates
|
|
|
3,369,992
|
|
|
4,132,317
|
Income
taxes
|
|
|
(578,268)
|
|
|
(501,125)
|
Net income
before non-controlling interests and gain on equity investments in
affiliates net income
|
|
|
2,791,724
|
|
|
3,631,192
|
|
|
|
|
|
|
|
Gain on
equity investments in affiliates due to proportional shares of the
affiliates net income
|
|
|
379,253
|
|
|
332,636
|
Net income
before non-controlling interests
|
|
|
3,170,977
|
|
|
3,963,828
|
Non-controlling interests in net income of
subsidiary
|
|
|
(751,681)
|
|
|
(996,552)
|
Net
income
|
|
$
|
2,419,296
|
|
$
|
2,967,276
|
Weighted average number of shares of
outstanding:
|
|
|
|
|
|
|
Basic
|
|
|
25,270,069
|
|
|
25,270,069
|
Diluted
|
|
|
25,280,702
|
|
|
25,273,542
|
Earnings per share -
|
|
|
|
|
|
|
Basic
|
|
$
|
0.10
|
|
$
|
0.12
|
Diluted
|
|
$
|
0.10
|
|
$
|
0.12
|
Comprehensive income
|
|
|
|
|
|
|
Net income
including noncontrolling interest
|
|
$
|
3,170,977
|
|
$
|
3,963,828
|
Translation adjustments
|
|
|
835,533
|
|
|
634,187
|
Comprehensive income
|
|
$
|
4,006,510
|
|
$
|
4,598,015
|
Comprehensive income attributable to non-controlling
interests
|
|
$
|
751,681
|
|
$
|
996,552
|
Comprehensive income attributable to CTFO
|
|
$
|
3,254,829
|
|
$
|
3,601,463
|
CHINA
TRANSINFO TECHNOLOGY CORP.
CONDENSED CONSOLIDATED BALANCE
SHEET
|
|
March
31,
|
|
December 31,
|
|
2012
|
|
2011
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
Cash and
cash equivalents
|
$
|
31,832,178
|
|
$
|
45,032,637
|
Restricted
cash
|
|
4,703,288
|
|
|
3,560,246
|
Accounts
receivable, net of allowance for doubtful accounts of
$171,829
and $169,060 ,respectively
|
|
43,507,607
|
|
|
36,902,155
|
Inventories
|
|
5,493,449
|
|
|
5,993,121
|
Costs and
estimated earnings in excess of billings on uncompleted
contracts
|
|
55,430,507
|
|
|
42,917,900
|
Prepayments
|
|
7,682,784
|
|
|
8,828,290
|
Other
receivables
|
|
18,032,086
|
|
|
15,636,967
|
Deferred
tax assets
|
|
26,635
|
|
|
26,467
|
Total
current assets
|
|
166,708,534
|
|
|
158,897,783
|
|
|
|
|
|
|
Long-term
investments
|
|
11,084,600
|
|
|
10,638,712
|
Property
and equipment, net
|
|
11,122,125
|
|
|
10,848,345
|
Long-term
prepayment for land use right
|
|
3,717,965
|
|
|
3,694,493
|
Intangible
assets, net
|
|
17,414,130
|
|
|
16,383,300
|
Goodwill
|
|
10,775,552
|
|
|
10,707,525
|
Other
assets
|
|
408,646
|
|
|
337,258
|
Total
assets
|
$
|
221,231,552
|
|
$
|
211,507,416
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
Accounts
payable
|
$
|
37,021,042
|
|
$
|
29,010,462
|
Short-term
borrowings from banks
|
|
6,001,047
|
|
|
7,791,300
|
Billings
in excess of costs and estimated earnings on uncompleted
contracts
|
|
14,448,150
|
|
|
12,760,278
|
Accrued
liabilities and other current liabilities
|
|
6,384,121
|
|
|
12,043,530
|
Total
current liabilities
|
|
63,854,360
|
|
|
61,605,570
|
|
|
|
|
|
|
Other
long-term liability
|
|
27,086
|
|
|
-
|
|
|
|
|
|
|
Total
liabilities
|
|
63,881,446
|
|
|
61,605,570
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity :
|
|
|
|
|
|
Common
stock, par value $0.001 per share, 150,000,000 shares
authorized,
25,270,069 and 25,270,069 issued and outstanding,
respectively
|
|
25,270
|
|
|
25,270
|
Additional
paid-in capital
|
|
53,191,622
|
|
|
51,484,878
|
Retained
earnings
|
|
63,803,929
|
|
|
61,384,633
|
Accumulated other comprehensive income
|
|
10,454,222
|
|
|
9,618,689
|
Total
China TransInfo Technology Corp Stockholders equity
|
|
127,475,043
|
|
|
122,513,470
|
Non-controlling inerests
|
|
29,875,063
|
|
|
27,388,376
|
|
|
|
|
|
|
Total
stockholders' equity
|
|
157,350,106
|
|
|
149,901,846
|
|
|
|
|
|
|
Total
liabilities and stockholders' equity
|
$
|
221,231,552
|
|
$
|
211,507,416
|
CHINA
TRANSINFO TECHNOLOGY CORP.
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
|
|
Three
Months Ended March 31,
|
|
2012
|
|
2011
|
Cash flows
from operating activities:
|
|
|
|
|
|
Net
income
|
$
|
2,419,296
|
|
$
|
2,967,276
|
Adjustments to reconcile net income to net cash used
in operating
activities:
|
|
|
|
|
|
Non-controlling interests
|
|
751,681
|
|
|
996,552
|
Depreciation and amortization expenses
|
|
671,583
|
|
|
652,129
|
Stock-based compensation
|
|
273,749
|
|
|
310,538
|
Gain on
equity investments in affiliates due to proportional shares of
the affiliates net income
|
|
(379,253)
|
|
|
(332,636)
|
Dividends
income
|
|
-
|
|
|
(14,693)
|
Loss on
disposal of property and equipment
|
|
13,776
|
|
|
6,655
|
Allowance
for doubtful accounts
|
|
1,699
|
|
|
-
|
(Increase)
Decrease in assets:
|
|
|
|
|
|
Restricted
cash
|
|
(1,123,252)
|
|
|
(1,192,248)
|
Accounts
receivable
|
|
(6,388,792)
|
|
|
(4,785,754)
|
Inventories
|
|
539,106
|
|
|
(262,205)
|
Prepaid
expenses and other current assets
|
|
1,204,353
|
|
|
1,467,418
|
Other
receivables
|
|
(2,371,040)
|
|
|
(1,749,678)
|
Cost and
estimated earnings in excess of billings on uncompleted
contracts
|
|
(12,270,848)
|
|
|
(3,280,538)
|
Other
assets
|
|
(69,418)
|
|
|
(228)
|
(Decrease)
Increase in liabilities:
|
|
|
|
|
|
Accounts
payable
|
|
7,846,033
|
|
|
(5,689,594)
|
Billings
in excess of costs and estimated earnings on uncompleted
contracts
|
|
1,610,860
|
|
|
(2,288,006)
|
Accrued
liabilities and other current liabilities
|
|
(2,156,519)
|
|
|
(3,115,251)
|
Other
long-term liability
|
|
27,155
|
|
|
-
|
Net cash
used in operating activities
|
$
|
(9,399,831)
|
|
$
|
(16,310,263)
|
|
|
|
|
|
|
Cash flows
from investing activities:
|
|
|
|
|
|
Proceeds
from disposal of property and equipment
|
$
|
750
|
|
$
|
13,500
|
Purchases
of property and equipment
|
|
(798,532)
|
|
|
(984,331)
|
Purchases
of intangible assets
|
|
(1,029,261)
|
|
|
(211,214)
|
Payments
for acquisition of companies
|
|
(210,092)
|
|
|
(201,334)
|
Dividends
from equity or cost investees
|
|
-
|
|
|
14,693
|
Net cash
used in investing activities
|
|
(2,037,135)
|
|
|
(1,368,686)
|
|
|
|
|
|
|
Cash flows
from financing activities:
|
|
|
|
|
|
Proceeds
from short-term borrowings
|
|
1,331,602
|
|
|
3,043,600
|
Payments
of short-term borrowings
|
|
(3,176,000)
|
|
|
(4,641,490)
|
Non-controlling interest's capital
contribution
|
|
-
|
|
|
190,225
|
Payment of
dividends to non-controlling interests from subsidiaries
|
|
(238,200)
|
|
|
-
|
Net cash
used in financing activities
|
|
(2,082,598)
|
|
|
(1,407,665)
|
|
|
|
|
|
|
Effect of
foreign currency exchange translation
|
|
319,105
|
|
|
219,746
|
|
|
|
|
|
|
Net
decrease in cash and cash equivalents
|
|
(13,200,459)
|
|
|
(18,866,868)
|
|
|
|
|
|
|
Cash and
cash equivalents - beginning
|
|
45,032,637
|
|
|
43,916,597
|
Cash and
cash equivalents - ending
|
$
|
31,832,178
|
|
$
|
25,049,729
|
|
|
|
|
|
|
Supplemental disclosures:
|
|
|
|
|
|
Interest
paid
|
$
|
109,464
|
|
$
|
251,866
|
Income
taxes paid
|
$
|
569,751
|
|
$
|
444,346
|
SOURCE China TransInfo Technology Corp.