SOUTH SAN FRANCISCO, CA and SHANGHAI, CHINA -- 11/05/09 --
Worldwide
Energy and Manufacturing USA, Inc. (OTCBB: WEMU), a U.S.-based solar module
technology and China manufacturing company specializing in products for
customers in the industries of solar energy, aerospace, wireless
telecommunications, medical equipment and automotive industries, today
announced financial results for the third quarter ended September 30, 2009.
A conference call to discuss these results is scheduled for Thursday,
November 5, 2009 at 4:05 p.m. Eastern time (1:05 p.m. Pacific time).
Details on accessing the call follow below.
Highlights of Third Quarter Results
-- Shipments of solar modules increased by approximately 2.99 MW for the
period ended September 30, 2009 compared to the same quarter of 2008.
-- Solar module revenues were $15.53 million compared to solar module
sales of $15.78 million for the same quarter of 2008.
-- EBITDA was $0.42 per share or $1.53 million compared to $0.18 per
share or $560,974 for the same period of 2008.
-- Net Income was $903,357 or $0.25 per share for the quarter compared to
$540,608 or $0.17 per share in the September quarter of 2008, an increase
of approximately 67%.
-- Net income before tax was $1.43 million compared to $555,237 in the
quarter ended September 30, 2009 and September 30, 2008, respectively, an
increase of $873,636 or approximately 157%.
Highlights of the Nine Months Ended September 30, 2009
-- Nine-month Revenue increased by approximately 25% to $39.22 million
compared to net sales of $31.35 million in the same period of 2008.
-- Solar module revenue was $29.43 million compared to solar module sales
of $21.57 million for the same period of 2008 or an increase of over 36%.
-- EBITDA was $0.70 per share or $2.52 million compared to $0.53 per
share or $1.31 million.
-- Net Income was $1.36 million, or $0.38 cents per share, for the nine-
month period compared to $1.2 million or $0.48 cents per share in the nine-
month period of 2008.
Jimmy Wang, chief executive officer, stated: "Our Solar Division continues
to drive our growth representing 83% of our sales for the third quarter
2009, and I am very pleased with our third quarter and nine months results.
We expect a strong fourth quarter and continued growth in our solar
division. I firmly believe our technology is better and that is a major
reason why our solar division continues to grow while our larger
competitors are experiencing shrinking sales. We expect 2010 to be a year
of double-digit earnings and revenue growth."
Third Quarter Ended September 30, 2009
Net sales for the three months ended September 30, 2009 were $18.62
million, an increase of 87% over the second quarter of 2009. Though
compared to the third quarter of 2008, sales were down slightly, due to due
to a drop in market level pricing on Solar Modules the solar MW shipments
actually increased by approximately 2.99 MW when comparing these periods.
The decreased volume from the Company's Contract Manufacturing division
brought about by lower overall consumption by the Company's customers due
to the current economic conditions. The Company continues to focus on the
sales and marketing of its solar modules by establishing sales teams in
China, United States and European countries. Solar module revenues
comprise approximately 83.4% of the Company's gross sales in the three
month period ended September 30, 2009 compared to 82.6% in the same period
of 2008.
Gross profit increased by $1.50 million, or 109.8% from $1.36 million in
the quarter ended September 30, 2008 to $2,861,264 for the three months
ended September 30, 2009. The gross profit from solar module sales was
$1.8 million for the three months ended September 30, 2009 compared to
$437,595 in the same period of 2008. This represents an increase of $1.36
million in gross profit for the Company's energy division or approximately
310%. The gross profit for Contract Manufacturing for the three months
ended September 30, 2009 was $1.06 million compared to $926,337 in the same
period of 2008, an increase of $138,198 or 14.9%.
Cost of goods sold for the three months ended September 30, 2009 was $15.76
million compared to $17.74 million for the same period in 2008. The
decrease is $1.98 million, or approximately 11.2%, was primarily due to the
softer sales from both of the Company's divisions and heavy reductions in
the cost of materials for solar modules. The cost of goods for solar
modules for quarter ended September 30, 2009 was $13.73 million compared to
$15.34 million for the same period of 2008. The decrease of $1.60 million
reflects the economies achieved by the Company's procurement teams in
sourcing the solar components. The costs of goods sold for Contract
Manufacturing was $2.02 million for the quarter ended September 30, 2009
compared to cost of goods sold of $2.40 million, a $377,851 reduction due
to lower sales volume and aggressive cost reduction measures coming to
fruition.
The gross margin was 15.4% for the three months ended September 30, 2009
compared to 7.1% in the same period in 2008 with the increase being
attributed to the Company's heavy cost reduction efforts coming to fruition
on higher volume. The gross margin for the Company's Solar Division for
the quarter ended September 30, 2009 was approximately 11.6% compared to
2.8% for the same period of 2008. This increase is due to the
aforementioned cost reductions. The gross margin for contract
manufacturing for the quarter ended September 30, 2009 was 34.4% compared
to 27.8% in the same period of 2008. The improvement of gross margin in
contract manufacturing was due to improved margins at the Electro
Mechanical division.
Net income before tax for the three months ended September 30, 2009 was
$1.43 million compared to a profit of $555,237 for the three months ended
September 30, 2008. The increase of $873,636, or approximately 157.3%, is
primarily due to the higher gross profit driven by the Company's material
cost reductions.
Net income for the three months ended September 30, 2009 was $903,357
compared to a net profit of $540,608 for the three months ended September
30, 2008. The increase of $362,749.00 or approximately 67.1% was driven by
greater profitability of both the Solar and Contract Manufacturing
divisions.
Nine Months Ended September 30, 2009
Net sales for the nine-month period ended September 30, 2009 was $39.22
million compared to sales of $31.35 million in the nine-month period ended
September 30, 2008. The increase of $7.87 million, or approximately 25.1%,
was the result of an increase in shipments from the Solar division. The
Company continues to focus on market penetration for its PV Solar Modules.
Solar modules revenues comprise approximately 75.1% of the Company's gross
sales in the nine-month period ended September 30, 2009 compared to 68.8 %
in the same period of 2008.
For the nine months ended September 30, 2009, gross profit was $6.56
million compared to gross profit of $3.85 million in the same period of
2008. This represents an increase of $2.71 million, or 70.3%, due primarily
to robust sales in the Company's energy division for the period. The gross
profit for the nine months ended September 30, 2009 for the solar division
was $3.59 million compared to $1.15 million in the same period of 2008.
This represents an increase of $2.44 million in gross profit in the nine
months ended September 30, 2009, or an approximate increase of 212.2%. The
gross profit for contract manufacturing for the nine months ended September
30, 2009 was $2.97 million compared to $2.70 million in the same period of
2008, an increase of $267,911 or approximately 9.9%.
Cost of goods sold for the nine months ended September 30, 2009 was $32.65
million compared to $27.49 million for the same period of 2008. The
increase of $5.16 million, or approximately 18.8%, was the result of
greater revenues in the energy division. The cost of goods for solar
modules for nine months ended September 30, 2009 was $26.33 million
compared to $20.42 million for the same period of 2008. The increase of
$5.91 million, or 29%, was due to the higher sales. The costs of goods
sold for contract manufacturing was $6.32 million for the nine months ended
September 30, 2009 compared to cost of goods sold of $7.08 million in the
same period of 2008.
The gross margin was 16.7% for the nine months ended September 30, 2009
compared to 12.3% in the same period of 2008. The increased is due to the
planned cost reductions and economies brought about with higher sales
volume, both in sales value and megawatts shipped from the Solar Division.
In the nine-month period ended September 30, 2009 there was stock-based
compensation of $162,020 compared to $95,000 of stock-based compensation in
2008. Further the Company had depreciation expense of $246,366 in the
nine-month period ended September 30, 2009 compared to $10,713 in the same
period of 2008, due to the greater amount of depreciable assets owned by
the Company.
For the nine-month period ended September 30, 2009, net income before tax
was $2.25 million compared to net income of $1.21 million in the same
period of 2008. The increase of $1.04 million, or approximately 85.7%, was
the result of increase sales for the Company's solar modules and increased
gross profit from cost reductions.
Balance Sheet
Cash and cash equivalents totaled $5.1 million on September 30, 2009,
compared to $5.1 million at year end 2008. Accounts receivable increased to
$15.0 million for the period ended September 30, 2009 compared to $4.79
million at year end 2008.
Total current assets and total assets were $27.99 million and $33.24
million on September 30, 2009. This compared to total current assets of
$19.77 million and total assets of $26.01 million in the previous quarter
ended June 30, 2009.
Total current liabilities and total liabilities totaled $19.53 million and
$20.29 million on September 30, 2009 compared to total current liabilities
and total liabilities of $13.35 million and $14.20 million in the previous
quarter ended June 30, 2009.
Conference Call and Webcast
The call information follows:
Date: November 5, 2009
Time: 4:05 p.m. Eastern Standard Time
Dial-in number for US/Canada: (888) 549-7704 or (480) 629-9857 for
international calls
Live Webcast: http://www.wwmusa.com or alternately at http://viavid.net.
A replay of the call will be available for two weeks from 7:05 p.m.
November 5, 2009, EST until 11:59 p.m. EST on November 19, 2009. The number
for the replay is (800) 406-7325, or (303) 590-3030 for international
calls; the passcode for the replay is 4181231. In addition, a recording of
the call will be available via the Company's website at
http://www.wwmusa.com for one year.
To participate in the call please dial (888) 549-7704, or (480) 629-9857
for international calls, approximately 10 minutes prior to the scheduled
start time. Interested parties can also listen via a live Internet webcast,
which can be found at the Company's website at http://www.wwmusa.com or
alternately at http://viavid.net.
About Worldwide Energy and Manufacturing USA, Inc.
Worldwide Energy and Manufacturing USA, Inc. ("Worldwide"), headquartered
in South San Francisco, California, is a 15-year-old engineering-oriented
firm specializing in PV panel, mechanical, electronics and fiber optic
products manufacturing. The Company's worldwide customer base includes the
industries of solar energy, wireless telecommunications, aerospace,
automobiles and medical equipment. Subsidiaries include Shanghai Intech
Electro Mechanical Products Co. Ltd., Shanghai Intech Electronics
Manufacturing Co. Ltd. and Shanghai Intech Precision Mechanical Products
Manufacturing Co. Ltd., located in Shanghai, China.
For further information on Worldwide Energy and Manufacturing USA, Inc.,
please visit http://www.wwmusa.com. You may register to receive Worldwide
Energy and Manufacturing USA, Inc.'s future press releases or request to be
added to the Company's distribution list by contacting Jeff Watson.
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.
WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF SEPTEMBER 30, 2009 AND DECEMBER 31, 2008
September 30, December 31,
2009 2008
------------ ------------
ASSETS (Unaudited)
Current assets:
Cash and cash equivalents $ 5,067,638 $ 5,092,476
Restricted cash 1,417,356 -
Accounts receivables, net of allowances of
$281,000 and $46,000, respectively 14,985,055 4,790,506
Notes receivables 354,263 269,507
Inventories 4,926,189 3,754,765
Income tax receivable 186,157 -
Advances to suppliers 539,394 99,824
Other receivable 111,006 185,400
Prepaid and other current assets 401,260 206,770
------------ ------------
Total current assets 27,988,318 14,399,248
Property, plant and equipment, net 3,554,610 1,353,539
Intangible assets 1,101,000 1,101,000
Goodwill 285,714 285,714
Investment at cost 51,892 51,892
Deposits paid for contracts in process - 1,673,084
Long term receivable - related party 253,996 260,973
Other assets - 7,559
------------ ------------
Total assets $ 33,235,530 $ 19,133,009
============ ============
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable $ 14,481,008 $ 3,400,253
Accrued expenses 1,029,332 867,291
Lines of credit 2,000,000 -
Acquisition cost payable - 285,714
Tax payable 492,516 364,213
Due to related parties 1,351,276 1,243,024
Customer deposits 175,723 964,998
------------ ------------
Total current liabilities 19,529,855 7,125,493
Non-current liabilities
Line of credit 763,285 937,075
Loan payable to stockholders - 60,024
------------ ------------
Total non-current liabilities 763,285 997,099
------------ ------------
Total liabilities 20,293,140 8,122,592
Stockholders' equity
Common stock (No Par Value; 100,000,000 shares
authorized; 3,621,611 and 3,493,511 shares
issued and outstanding, respectively) 6,270,399 6,108,379
Retained earnings 5,160,166 3,801,921
Accumulated other comprehensive income 665,510 487,478
------------ ------------
Total equity attributable to Worldwide 12,096,075 10,397,778
Non-controlling interest 846,315 612,639
------------ ------------
Total stockholders' equity 12,942,390 11,010,417
------------ ------------
Total liabilities and stockholders' equity $ 33,235,530 $ 19,133,009
============ ============
WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME
For the Three Months For the Nine Months
Ended Ended
September 30, September 30,
2009 2008 2009 2008
----------- ----------- ----------- -----------
Revenue
Sales $18,618,508 $19,102,654 $39,217,288 $31,348,064
Cost of goods sold 15,757,244 17,738,721 32,654,832 27,493,975
----------- ----------- ----------- -----------
Gross profit 2,861,264 1,363,933 6,562,456 3,854,089
Operating Expenses
Selling, general and
administrative
expenses 1,316,386 750,983 3,728,136 2,227,502
Management and
professional fees
paid to shareholders 80,000 72,680 260,000 225,680
Stock based
compensation 46,800 (15,000) 162,020 95,000
Depreciation 83,485 2,879 246,366 10,713
----------- ----------- ----------- -----------
Total operating expenses 1,526,671 811,542 4,396,522 2,558,895
Net operating income 1,334,593 552,391 2,165,934 1,295,194
Other Income (expenses)
Interest income 3,007 8,267 14,164 12,217
Interest expenses (20,114) (1,287) (40,923) (74,375)
Interest expense
paid to shareholders - (9,838) - (27,284)
Other income (expense) 13,391 5,704 6,399 5,704
Exchange gain (loss) 97,996 - 103,421 (691)
----------- ----------- ----------- -----------
Total other expenses 94,280 2,846 83,061 (84,429)
----------- ----------- ----------- -----------
Income before income
taxes 1,428,873 555,237 2,248,995 1,210,765
Income taxes (427,497) (8,514) (670,121) (16,813)
----------- ----------- ----------- -----------
Income after taxes 1,001,376 546,723 1,578,874 1,193,952
Net income (loss) from
discontinued
operations, net of tax - (6,115) - 2,017
----------- ----------- ----------- -----------
Net income before non-
controlling interest 1,001,376 540,608 1,578,874 1,195,969
Net income attributable
to non-controlling
interest (98,019) - (220,629) -
----------- ----------- ----------- -----------
Net income attributable
to Worldwide 903,357 540,608 1,358,245 1,195,969
Other comprehensive
income
Foreign currency
translation 83,423 146,017 191,079 102,835
Comprehensive income
(loss) attributable
to non-controlling
interest 524 - (13,047) -
----------- ----------- ----------- -----------
Total other
comprehensive income $ 987,304 $ 686,625 $ 1,536,277 $ 1,298,804
=========== =========== =========== ===========
Basic and diluted
earnings per share $ 0.25 $ 0.17 $ 0.38 $ 0.48
=========== =========== =========== ===========
Basic and diluted
weighted average
shares outstanding 3,621,611 3,170,906 3,578,014 2,471,384
=========== =========== =========== ===========
WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Nine Months Ended
September 30,
2009 2008
----------- -----------
Cash flows from operating activities:
Net income attributable to Worldwide $ 1,358,245 $ 1,195,969
Net income attributable to non-controlling
interest 220,629 -
Adjustments to reconcile net income to net cash
used in operating activities:
Depreciation 246,564 74,646
Allowance for bad debts 234,796 (20,000)
Stock based compensation 162,020 95,000
Changes in operating assets and liabilities:
Accounts receivable (10,250,963) (2,496,611)
Notes receivable (84,468) -
Inventories (1,167,944) (1,433,804)
Income tax receivable (185,921) (2,375)
Advance to Suppliers (438,754) (4,847)
Related party payable 6,497 -
Prepaid and other current assets (198,622) (277,531)
Accounts payable 11,155,323 1,308,977
Accrued expense and acquisition cost payable (123,636) 105,196
Tax payable 128,152 14,105
Customer deposits (789,339) -
----------- -----------
Net cash provided by (used by) operating
activities 272,579 (1,441,275)
Cash flows from investing activities:
Loan to related parties - (207,130)
Capital expenditures (744,218) (648,887)
Deposits paid for investment in subsidiaries - (772,692)
Deposits to restricted account (1,417,356) -
----------- -----------
Net cash used by investing activities (2,161,574) (1,628,709)
Cash flows from financing activities:
Proceeds from issuance of common stock - 4,578,494
Repayment of loans payable to shareholders (60,024) (438,788)
Proceeds from related parties 107,521 -
Proceeds / (repayment) from line of credit 2,000,000 1,166,786
Repayment of bank loans (173,790) -
----------- -----------
Net cash flows provided by financing activities: 1,873,707 5,306,492
Effect of exchange rate changes on cash and cash
equivalents (9,550) 114,411
----------- -----------
Net (decrease)/increase in cash and cash
equivalents (24,838) 2,350,919
Cash and cash equivalents- beginning of period 5,092,476 2,111,825
----------- -----------
Cash and cash equivalents- end of period $ 5,067,638 $ 4,462,744
=========== ===========
Supplemental disclosure of non cash activities:
Cash paid during the period for:
Interest paid in cash $ 40,923 $ 101,659
=========== ===========
Income tax paid in cash $ 390,217 $ 35,758
=========== ===========
The accompanying notes in the Company's filings with the Securities and
Exchange Commission are an integral part of these unaudited consolidated
financial statements.
Contact:
At the Company:
Worldwide Energy and Manufacturing USA
Jimmy Wang
650-794-9888, Ext. 221
jimmyw@wwmusa.com
http://www.wwmusa.com
Investor relations:
Dave Gentry
RedChip Companies, Inc.
1-800-REDCHIP (733-2447), Ext. 104
info@redchip.com
http://www.RedChip.com
