Changfeng Revenue Up 26%, Gross Profit Up 27% and Net Income Up 14%
for Year Ended December 31, 2013
TORONTO, ONTARIO--(Marketwired - Apr 25, 2014) - Changfeng
Energy Inc., (TSX-VENTURE:CFY) ("Changfeng" or the "Company"), is
pleased to announce that the Company has filed its audited
consolidated financial statements for the fiscal year ended
December 31, 2013. The audited consolidated financial statements
and Management Discussion and Analysis can be downloaded from
www.SEDAR.com or from the Company's website at
www.changfengenergy.com.
Summary of Consolidated Financial Results for Fiscal Year Ended
December 31, 2013 and 2012
In thousands of Canadian dollars |
|
except percentages and per share amounts |
|
2013 |
2012 |
Change |
% |
Revenue |
|
42,049 |
33,273 |
8,776 |
26% |
Gross margin |
|
19,998 |
15,775 |
4,243 |
27% |
Other operating income |
|
- |
717 |
(717) |
-100% |
Net income |
|
2,814 |
2,478 |
336 |
14% |
EBITDA (1) |
|
9,806 |
8,006 |
1,800 |
22% |
Adjusted net income (1) (2) |
|
2,814 |
1,935 |
879 |
45% |
Note:
- See Non- GAAP Financial Measures in this Press Release.
- The adjusted net income for 2012 excludes a one-time government
grant of $543,000, net of tax.
Sales revenue from the gas distribution utility for 2013 was
$34.2 million, an increase of $6.5 million, or 23%, from $27.7
million in 2012. This increase is mainly attributable to increased
gas volume sold including newly added gas volume sold in Xiangdong
operation, higher average selling price to industrial and
commercial residents in the Sanya operation, higher pipeline
connection revenue, as well as Chinese RMB appreciation.
Sales revenue from the CNG refueling retail station for 2013 was
$7.9 million, an increase of $2.3 million, or 41%, from $5.6
million in 2012. The significant increase was attributable to the
combined effect of the increased gas volume sold (13.3 million m3
in 2013 compared to 10.1 million m3 in 2012) and higher average
selling prices. Effective August 13, 2012, the local natural gas
pricing authority approved a 15% price increase for CNG retail
stations in Changsha City as a response to a gasoline price
increase. In addition, the Company has been upgrading its station's
refueling capacity to meet the increasing demand that is primarily
driven by both rising gasoline prices and continued government
support for clean energy vehicles. It is expected that more
existing gasoline-fueled buses in the city will be converted into
dual-fuel vehicles (gasoline/CNG).
Gross margin for 2013 was $20.0 million, an increase of $4.2
million, or 27%, from $15.8 million in 2012. The gross margin
percentage of 48% for 2013 is approximately the same as for
2012.
Gas distribution utility gross margin as a percentage of sales
year-over-year improved 1% (53% for 2013 VS 52% for 2012)
reflecting the reduced volume of gas purchased at market rate
prices and higher-value commercial customers from the Haitang Bay
district in the Sanya Region. The CNG refueling station gross
margin as a percentage of sales year-over-year increased 3% (25%
for 2013 VS 22% for 2012) primarily to selling price increases.
General and administrative expenses for 2013 were $9.3 million,
an increase of $1.8 million, or 24%, from $7.5 million in 2012. The
increase was attributable to higher employee salaries and benefits
as a result of a higher inflation rate in China, additional
employees, and higher conference and professional fees. General and
administrative expenses as a percentage of sales for 2013 were 22%
which is approximately the same as for 2012.
Travel and business development expenses for 2013 were $3.3
million, an increase of $0.4 million, or 13%, from $2.9 million in
2012. As a percentage of sales, travel and business development
expenses for 2013 was 8%, a decrease from 9% in 2012. These
expenses normally fluctuate with travel and business development
activities in mainland China as the Company seeks to develop new
projects in close proximity to the new national pipelines.
Net income for fiscal 2013 was $2.8 million, or $0.045 per share
(basic and diluted) compared to $2.5 million or $0.038 per share
(basic and diluted) in 2012.
EBITDA (non-GAAP measure as identified and defined under section
"Non-GAAP Measures") for fiscal 2013 was $9.8 million, an increase
of $1.8 million, or 22%, from $8.0 million for 2012. The increase
was driven primarily by higher sales. EBITDA as a percentage of
revenue for 2013 was 23%, compared to 24% in the same period in
2012. This decrease is largely attributable to the other operating
income earned in 2012.
Adjusted net income (non-GAAP measure as identified and defined
under section "Non-GAAP Measures") for fiscal 2013 was $2.8
million, compared to $1.9 million for the same period in 2012 as
increase of 45%.
Financial Position
Cash increased by $8.8 million to $15.2 million at December 31,
2013 from $6.4 million at December 31, 2012.
Net cash provided by operations was $10.0 million for fiscal
2013 compared to $8.4 million in 2012.
Cash provided by financing activities in 2013 included a $10.0
million withdrawal from the term loan facility and $3.3 million
from line of credit, offset by the short term loan payment of $5.0
million, $0.8 million term loan principal payment and $0.5 million
paid for the share buyback.
Cash used in investing activity included capital expenditures of
$9.3 million for fiscal 2013 compared to $6.3 million in 2012. The
expenditures were mainly related to the purchase of equipment for
the Xiangdong project and the on-going construction of pipeline
networks to connect new customers in the Sanya region.
Non-GAAP Financial Measures
The Company uses the following non-GAAP financial measures:
EBITDA and adjusted net income. The Company believes these non-GAAP
financial measures provide useful information to both management
and investors in measuring the financial performance and financial
condition of the Company for the reasons outlined below.
Management uses these non-GAAP financial measures to exclude the
impact of certain expenses and income that must be recognized under
GAAP when analyzing consolidated operating performance, as the
excluded items are not necessarily reflective of the Company's
underlying operating performance and make comparisons of underlying
financial performance between periods difficult. From time to time,
the Company may exclude additional items if it believes doing so
would result in a more effective analysis of underlying operating
performance. The exclusion of certain items does not imply that
they are non-recurring.
These measures do not have a standardized meaning prescribed by
GAAP and therefore they may not be comparable to similarly titled
measures presented by other publicly traded companies and should
not be construed as an alternative to other financial measures
determined in accordance with GAAP. These measures are listed and
defined below:
EBITDA
EBITDA is defined herein as income before income tax expense,
interest expense, depreciation and amortization, share of loss of
investment in associate, as well as non-cash stock-based
compensation expense. EBITDA does not have any standardized meaning
prescribed by IFRS and therefore may not conform to the definition
used by other companies. A reconciliation of net income to EBITDA
for each of the periods presented as follows:
In thousands |
|
(except for % figures) |
2013 |
2012 |
Change |
% |
Net Income |
2,814 |
2,478 |
336 |
14% |
Add (less): |
|
|
|
|
|
Income tax |
2,594 |
1,886 |
708 |
38% |
|
Interest (income) expense |
(37) |
26 |
(63) |
-242% |
|
Share of loss of investment in associate |
1 |
24 |
(23) |
-95% |
|
Stock-based compensation |
382 |
180 |
202 |
112% |
|
Amortization |
2,414 |
1,959 |
455 |
23% |
|
Interest on borrowing |
1,638 |
1,453 |
185 |
13% |
EBITDA |
9,806 |
8,006 |
1,800 |
22% |
Adjusted net
income
Adjusted net income is calculated as net income before other
operating income. Other operating income represents a government
grant received by the Company. There is no guarantee that the
Company will receive this government grant every year. Changfeng
believes that adjusted net income is a useful supplemental measure
of the Company's operating results.
The calculation of adjusted net income is provided in the table
below:
In thousands of Canadian dollars |
|
|
except percentages and per share amounts |
|
2013 |
2012 |
|
|
|
|
Net income |
|
2,814 |
2,478 |
|
Less: Other operating income, net of tax |
|
- |
543 |
Adjusted net income |
|
2,814 |
1,935 |
About Changfeng Energy Inc.
Changfeng Energy Inc., is a natural gas service provider with
operations located throughout the People's Republic of China. The
Company services industrial, commercial and residential customers,
providing them with natural gas for heating purposes and fuel for
transportation. The Company has developed a significant natural gas
pipeline network as well as urban gas delivery networks, stations,
substations and gas pressure regulating stations in Sanya City
& Haitang Bay. Through its network of pipelines, the Company
provides safe and reliable delivery of natural gas to both homes
and businesses. The Company is headquartered in Toronto, Ontario
and its shares trade on the Toronto Venture Exchange under the
trading symbol "CFY". For more information, please visit the
Company website at www.changfengenergy.com.
Forward-Looking Statements
Information set forth in this news release may involve
forward-looking statements under applicable securities laws. The
forward-looking statements contained herein are expressly qualified
in their entirety by this cautionary statement. The forward-looking
statements included in this document are made as of the date of
this document and the Company disclaims any intention or obligation
to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, except as
expressly required by applicable securities legislation. Although
Management believes that the expectations represented in such
forward-looking statements are reasonable, there can be no
assurance that such expectations will prove to be correct. This
news release does not constitute an offer to sell or solicitation
of an offer to buy any of the securities described herein and
accordingly undue reliance should not be put on such.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSXV)
accepts responsibility for the adequacy or accuracy of this
release.
Changfeng Energy Inc.Mr. Yan Zhao CPA. CAChief Financial
Officer416.362.5032/647.528.0115yan.zhao@changfengenergy.comChangfeng
Energy Inc.Ms. Ann S.Y.LinVP, Corporate Development and Corporate
Secretary416.362.5032ann@changfengenergy.comwww.changfengenergy.com
CF Energy (TSXV:CFY)
Graphique Historique de l'Action
De Août 2024 à Sept 2024
CF Energy (TSXV:CFY)
Graphique Historique de l'Action
De Sept 2023 à Sept 2024