WUXI, China, Nov. 13, 2013 /PRNewswire-FirstCall/ -- Cleantech
Solutions International, Inc. ("Cleantech Solutions" or "the
Company") (NASDAQ: CLNT), a manufacturer of metal components and
assemblies used in various clean technology and manufacturing
industries and textile dyeing and finishing machines, today
announced its financial results for the three and nine months ended
September 30, 2013.
"In the third quarter, we saw modest growth in revenue, were
profitable and generated strong operating cash flow. Our dyeing
machine segment continued to perform well, supported by growing
adoption of our low-emission airflow dyeing machines. This increase
was offset by a decrease in sales of forged rolled rings and
related products for industries other than the wind power
industry," said Mr. Jianhua Wu,
Chairman and CEO of Cleantech Solutions. "We are in the process of
installing equipment that will expand capacity of our dyeing
equipment segment and allow us to produce new, higher-end machines
that we expect to drive improvements in our competitive position
and financial results in 2014. We are also encouraged by recent
discussions with our solar customer and expect to see some traction
in this area soon, although we did not generate any revenue from
solar products during the third quarter and we have no backlog of
orders from these products."
Third Quarter 2013 Results
Revenue for the third quarter of 2013 increased 5.0% to
$18.2 million, compared to
$17.3 million for the same period of
2012.
Revenue growth was primarily driven by sales of dyeing and
finishing equipment due to demand for the Company's low-emission
airflow dyeing machines, which meet the policies of local PRC
governments to phase out obsolete equipment and reduce pollution
from the dyeing process. In addition, the Company
experienced a modest increase in sales for forged rolled rings and
related products for customers in the wind power industry, which
was offset by a decline in sales of forged products from customers
in other industries.
The increase in revenue is summarized as
follows:
- Revenue from the dyeing and finishing equipment segment
increased 26.2% to $9.5 million,
compared to $7.5 million for the
third quarter of 2012.
- Revenue from the sale of forged rolled rings to other
industries decreased 24.4% to $5.0
million, compared with $6.6
million for the comparable period of the prior
year.
- Revenue from the sale of forged rolled rings for the wind
power industry rose 16.0% to $3.7
million, compared to $3.2
million for the comparable period last
year.
Gross profit for the third quarter of 2013 increased 7.3%
to $4.6 million, compared to
$4.3 million for the same period in
2012. Gross margin increased to 25.5% during the third quarter of
2013 compared to 24.9% for the same period a year ago. The increase
in gross margin for the third quarter was primarily attributable to
(i) increased operational and cost efficiencies for forged rolled
rings and related products segment, including the allocation of
fixed costs primarily consisting of depreciation, to cost of
revenues as the Company operated at higher production levels and
(ii) a slight decrease in raw materials costs in both the forged
rolled rings and related products and dyeing equipment
segments.
Operating expenses rose 28.1% to $1.4 million, compared to $1.1 million in the comparable period last year.
The increase was primarily due to bad debt expense, partially
offset by lower depreciation expenses resulting from the
classification of certain equipment as held for sale in the fourth
quarter of 2012, on which depreciation was taken in the third
quarter of 2012 but not in the third quarter of 2013.
Selling, general and administrative expenses for the three
months ended September 30, 2013 rose
78.1% to $1.3 million, primarily due
to a $0.4 million bad debt expense,
an increase in stock based compensation expenses and an increase in
research and development expense related to the Company's new
dyeing equipment.
Operating income was $3.2
million, unchanged from the same period of 2012. Operating
margin was 17.6% compared to 18.5% in the third quarter last
year.
Adjusted EBITDA, a non-GAAP measurement, which adds back
to net income interest expense, income tax, depreciation and
amortization, was $4.9 million, which
is the same as for the third quarter last year. The calculation of
adjusted EBITDA is shown in a table following the financial
tables.
Net income for the third quarter of 2013 was $2.1 million, or $0.61 per diluted share, compared to $2.4 million, or $0.88 per diluted share, in the third quarter of
2012. Diluted earnings per share were calculated
using diluted weighted average shares of 3,479,646 and 2,667,017
for the three months ended September 30,
2013 and 2012, respectively. All share and
per share information has been adjusted to reflect a one-for-ten
reverse stock split effective March 6,
2012.
Nine Month Results
For the nine months ended September
30, 2013, revenue increased 24.6% to $49.3 million from
$39.6 million in the first nine
months of 2012. Gross profit increased 32.0% to $11.7 million,
compared to $8.9 million in the same period last year.
Gross margin for first nine months of 2013 was 23.8%, compared to
22.5% in the first nine months of 2012. Operating income increased
53.2% to $8.6 million from $5.6 million in the
first nine months of 2012. Adjusted EBITDA, a non-GAAP measurement
which adds interest expense, income tax, warrant modification
expense (which was incurred in the first quarter of 2012),
depreciation and amortization back to net income, was $13.6
million, compared to $10.5 million in the first nine
months of 2012. Net income was $6.1 million,
or $1.95 per diluted share, up from $3.7 million, or $1.42 per diluted
share, in the first nine months of 2012. All share and per share
information have been adjusted to reflect a one-for-ten reverse
stock split effective March 6, 2012.
Financial Condition
As of September 30, 2013,
Cleantech Solutions held cash and cash equivalents of $2.2 million compared with $1.4 million at December
31, 2012. Accounts receivable were
$11.5 million and total current
assets of $23.6 million as of
September 30, 2013. The Company had
$3.1 million in short-term bank loans
payable at September 30, 2013, up
from $2.2 million at December 31,
2012. Stockholders' equity was
$88.8 million at September 30, 2013.
In the first nine months of 2013, the Company generated
$7.9 million in cash flow from
operations. The increase in short term loans, combined with
$2.4 million in net proceeds from the
sale of shares issued in the second and third quarters of 2013 and
cash flow from operations was used to fund approximately
$9.9 million in capital expenditures
to expand production capabilities and purchase equipment for the
Company's dyeing and finishing equipment segment.
Upcoming Events
Cleantech Solutions will hold its annual meeting of
stockholders on December 10,
2013. The board of directors has fixed the
close of business on October 23, 2013
as the record date for the determination of stockholders entitled
to notice of and to vote at the annual
meeting. The proxy statement is available on the
SEC's website and Company's website at
http://www.cleantechsolutionsinternational.com/sec.php.
Business Outlook
Based on current and anticipated orders, for the full year
ending December 31, 2013, the Company expects revenue in
the range of $60 - $62
million and net income in the range of $8.0 -
$8.5 million, excluding the impact of
any year-end adjustments to the carrying value of equipment held
for sale.
"As we approach the end of 2013, we expect our dyeing
machine segment to continue to be our main revenue driver in the
fourth quarter and beyond. We are encouraged by
the improving Chinese economy although tight credit conditions are
likely to persist. This is causing many manufacturers to focus on
the quality and durability of their equipment purchases rather than
price alone. We believe our new line of high-end
airflow and traditional dyeing machines and our after treatment
compacting machine position our Company for further growth in
2014."
"We are also hopeful that we will secure orders for solar
products in the near future and for our new oil and gas products in
2014, although we cannot predict the timing or extent of any sales.
The wind power market continues to face near-term challenges, and
we expect sales to customers in this industry to remain near
current levels. We will continue to
utilize our assets and modify our product lines with a view of
achieving strong financial performance and respond to the needs of
heavy equipment and clean technology industries," Mr. Wu
concluded.
Conference Call
Cleantech Solutions will conduct a conference call at
9:00 a.m. Eastern Time on
Wednesday, November 13, 2013 to
discuss financial results for the third quarter ended September 30, 2013.
To participate in the live conference call, please dial
the following number five to ten minutes prior to the scheduled
conference call time: (877) 870-4263. International callers should
dial (412) 397-0790.
If you are unable to participate in the conference call at
this time, a replay will be available starting an hour after the
conference call through 10:00 A.M. ET
November 20, 2013. To access the
replay, dial (877) 344-7529. International callers dial (412)
317-0088, and enter conference number:
10036945.
Use of Non-GAAP Financial Measures
The Company has included in this press release certain
non-GAAP financial measures. The Company believes that both
management and investors benefit from referring to these non-GAAP
financial measures in assessing the performance of the Company and
when planning and forecasting future periods. Readers are cautioned
not to view non-GAAP financial measures on a stand-alone basis or
as a substitute for GAAP measures, or as being comparable to
results reported or forecasted by other companies, and should refer
to the reconciliation of GAAP measures with non-GAAP measures also
included herein.
About Cleantech Solutions International
Cleantech Solutions is a manufacturer of metal components
and assemblies used in various clean technology and manufacturing
industries and textile dyeing and finishing machines. The Company
supplies forging products, fabricated products and machining
services to a range of clean technology and manufacturing customers
and supplies dyeing and finishing equipment to the textile
industry. Cleantech Solutions is committed to achieving long-term
growth through ongoing technological improvement, capacity
expansion, and the development of a strong customer base. The
Company's website is
www.cleantechsolutionsinternational.com. Any
information on the Company's website or any other website is not a
part of this press release.
Safe Harbor Statement
This release contains certain "forward-looking
statements" relating to the business of the Company and its
subsidiary and affiliated companies. These forward looking
statements are often identified by the use of forward-looking
terminology such as "believes," "expects" or similar expressions.
Such forward looking statements involve known and unknown risks and
uncertainties that may cause actual results to be materially
different from those described herein and in the conference call
referred to in this press release as anticipated, believed,
estimated or expected. Investors 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,
including factors described in "Risk Factors" and "Management's
Discussion and Analysis of Financial Condition and Results of
Operations" in our Form 10-K for the year ended December 31, 2012 and "Management's Discussion
and Analysis of Financial Condition and Results of Operations" in
our Form 10-Q for the quarter ended September 30, 2013. All
forward-looking statements attributable to the Company or to
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 Contacts:
Cleantech Solutions International, Inc.
Adam Wasserman, CFO
E-mail:
adamw@cleantechsolutionsinternational.com
Web:
www.cleantechsolutionsinternational.com
Compass Investor Relations
Elaine Ketchmere,
CFA
Email:
eketchmere@compass-ir.com
Web:
www.compassinvestorrelations.com
- Financial Tables Follow-
CLEANTECH SOLUTIONS
INTERNATIONAL, INC. AND SUBSIDIARIES
|
UNAUDITED
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE
INCOME
|
|
|
|
For the Three
Months
|
|
For the Nine
Months
|
Ended
|
Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
REVENUES
|
|
$
|
18,213,508
|
|
$
|
17,343,723
|
|
$
|
49,312,341
|
|
$
|
39,585,815
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COST OF
REVENUES
|
|
|
13,576,808
|
|
|
13,024,265
|
|
|
37,572,531
|
|
|
30,689,436
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
|
4,636,700
|
|
|
4,319,458
|
|
|
11,739,810
|
|
|
8,896,379
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
109,652
|
|
|
373,896
|
|
|
461,539
|
|
|
1,122,432
|
Selling, general and
administrative
|
|
|
1,316,925
|
|
|
739,386
|
|
|
2,675,076
|
|
|
2,157,053
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Operating Expenses
|
|
|
1,426,577
|
|
|
1,113,282
|
|
|
3,136,615
|
|
|
3,279,485
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS
|
|
|
3,210,123
|
|
|
3,206,176
|
|
|
8,603,195
|
|
|
5,616,894
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE):
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
14,840
|
|
|
5,069
|
|
|
16,009
|
|
|
10,919
|
Interest
expense
|
|
|
(74,638)
|
|
|
(84,289)
|
|
|
(244,291)
|
|
|
(244,685)
|
Foreign currency (loss)
gain
|
|
|
(9,821)
|
|
|
1,251
|
|
|
(15,800)
|
|
|
6,642
|
Warrant modification
expense
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(235,133)
|
Other income
|
|
|
5,933
|
|
|
51,523
|
|
|
43,015
|
|
|
64,803
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Other Income (Expense), net
|
|
|
(63,686)
|
|
|
(26,446)
|
|
|
(201,067)
|
|
|
(397,454)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAXES
|
|
|
3,146,437
|
|
|
3,179,730
|
|
|
8,402,128
|
|
|
5,219,440
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME
TAXES
|
|
|
1,015,701
|
|
|
824,628
|
|
|
2,326,239
|
|
|
1,490,173
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
$
|
2,130,736
|
|
$
|
2,355,102
|
|
$
|
6,075,889
|
|
$
|
3,729,267
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE
INCOME:
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
$
|
2,130,736
|
|
$
|
2,355,102
|
|
$
|
6,075,889
|
|
$
|
3,729,267
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER COMPREHENSIVE
INCOME:
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized foreign
currency translation gain (loss)
|
|
|
516,244
|
|
|
(169,625)
|
|
|
2,161,711
|
|
|
342,015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE
INCOME
|
|
$
|
2,646,980
|
|
$
|
2,185,477
|
|
$
|
8,237,600
|
|
$
|
4,071,282
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME PER COMMON
SHARE:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.61
|
|
$
|
0.88
|
|
$
|
1.95
|
|
$
|
1.51
|
Diluted
|
|
$
|
0.61
|
|
$
|
0.88
|
|
$
|
1.95
|
|
$
|
1.42
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
3,479,646
|
|
|
2,667,017
|
|
|
3,112,148
|
|
|
2,469,818
|
Diluted
|
|
|
3,479,646
|
|
|
2,667,017
|
|
|
3,112,148
|
|
|
2,617,798
|
CLEANTECH SOLUTIONS
INTERNATIONAL, INC. AND SUBSIDIARIES
|
CONSOLIDATED BALANCE
SHEETS
|
|
|
|
September
30, 2013
|
|
December
31, 2012
|
|
|
(Unaudited)
|
|
|
ASSETS
|
CURRENT
ASSETS:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
2,223,017
|
|
$
|
1,445,728
|
Restricted
cash
|
|
|
796,567
|
|
|
-
|
Notes
receivable
|
|
|
485,793
|
|
|
88,029
|
Accounts receivable,
net of allowance for doubtful accounts
|
|
11,545,834
|
|
|
10,078,623
|
Inventories, net of
reserve for obsolete inventory
|
|
|
6,216,215
|
|
|
5,897,555
|
Advances to
suppliers
|
|
|
1,303,911
|
|
|
593,104
|
Prepaid VAT on
purchases
|
|
|
830,361
|
|
|
542,032
|
Prepaid expenses and
other
|
|
|
227,651
|
|
|
428,326
|
|
|
|
|
|
|
|
Total
Current Assets
|
|
|
23,629,349
|
|
|
19,073,397
|
|
|
|
|
|
|
|
PROPERTY AND
EQUIPMENT - net
|
|
|
66,699,091
|
|
|
59,436,100
|
|
|
|
|
|
|
|
OTHER
ASSETS:
|
|
|
|
|
|
|
Deferred tax
assets
|
|
|
566,666
|
|
|
551,890
|
Equipment held for
sale
|
|
|
7,309,150
|
|
|
7,118,555
|
Land use rights,
net
|
|
|
3,784,841
|
|
|
3,756,342
|
|
|
|
|
|
|
|
Total
Assets
|
|
$
|
101,989,097
|
|
$
|
89,936,284
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
Short-term bank
loans
|
|
$
|
3,088,728
|
|
$
|
2,216,558
|
Bank acceptance notes
payable
|
|
|
796,567
|
|
|
-
|
Accounts
payable
|
|
|
5,494,461
|
|
|
5,474,479
|
Accrued
expenses
|
|
|
552,758
|
|
|
986,824
|
Capital lease
obligation - current portion
|
|
|
-
|
|
|
251,413
|
Advances from
customers
|
|
|
2,210,102
|
|
|
1,851,987
|
VAT and service taxes
payable
|
|
|
-
|
|
|
206,527
|
Income taxes
payable
|
|
|
1,069,434
|
|
|
822,082
|
|
|
|
|
|
|
|
Total
Current Liabilities
|
|
|
13,212,050
|
|
|
11,809,870
|
|
|
|
|
|
|
|
OTHER
LIABILITIES:
|
|
|
|
|
|
|
Capital lease
obligation - net of current portion
|
|
|
-
|
|
|
132,756
|
|
|
|
|
|
|
|
Total
Liabilities
|
|
|
13,212,050
|
|
|
11,942,626
|
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY:
|
|
|
|
|
|
|
Preferred stock ($0.001
par value; 10,000,000 shares authorized;
0 share issued and
outstanding at September 30, 2013 and
December 31, 2012,
respectively)
|
|
|
-
|
|
|
-
|
Common stock ($0.001
par value; 50,000,000 shares authorized;
3,503,502 and 2,894,586
shares issued and outstanding at September
30, 2013 and December
31, 2012, respectively)
|
|
|
3,503
|
|
|
2,894
|
Additional paid-in
capital
|
|
|
31,532,308
|
|
|
28,987,128
|
Retained
earnings
|
|
|
44,200,317
|
|
|
38,401,734
|
Statutory
reserve
|
|
|
2,757,044
|
|
|
2,479,738
|
Accumulated other
comprehensive gain - foreign currency translation
adjustment
|
|
|
10,283,875
|
|
|
8,122,164
|
|
|
|
|
|
|
|
Total
Stockholders' Equity
|
|
|
88,777,047
|
|
|
77,993,658
|
|
|
|
|
|
|
|
Total
Liabilities and Stockholders' Equity
|
|
$
|
101,989,097
|
|
$
|
89,936,284
|
CLEANTECH SOLUTIONS INTERNATIONAL, INC. AND
SUBSIDIARIES
|
UNAUDITED CONSOLIDATED STATEMENTS OF CASH
FLOWS
|
|
|
|
|
|
For the Nine Months
Ended
|
|
|
September
30,
|
|
|
2013
|
|
2012
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
Net
income
|
|
$
|
6,075,889
|
|
$
|
3,729,267
|
Adjustments to reconcile net income
from operations to net cash
|
|
|
|
|
|
|
provided by operating
activities:
|
|
|
|
|
|
|
Depreciation
|
|
|
4,882,899
|
|
|
4,719,769
|
Amortization of land
use rights
|
|
|
71,261
|
|
|
70,068
|
Increase (decrease) in
allowance for doubtful accounts
|
|
|
76,784
|
|
|
(46,616)
|
Warrant modification
expense
|
|
|
-
|
|
|
235,133
|
Stock-based
compensation expense
|
|
|
278,034
|
|
|
129,030
|
Changes in operating assets and
liabilities:
|
|
|
|
|
|
|
Notes
receivable
|
|
|
(390,950)
|
|
|
(112,209)
|
Accounts
receivable
|
|
|
(1,260,651)
|
|
|
(3,368,092)
|
Inventories
|
|
|
(158,944)
|
|
|
(1,925,810)
|
Prepaid value-added
taxes on purchases
|
|
|
(270,730)
|
|
|
844,969
|
Prepaid and other
current assets
|
|
|
82,378
|
|
|
(41,315)
|
Advances to
suppliers
|
|
|
(687,094)
|
|
|
(627,455)
|
Accounts
payable
|
|
|
(672,461)
|
|
|
1,310,123
|
Accrued
expenses
|
|
|
(451,672)
|
|
|
(49,578)
|
VAT and service taxes
payable
|
|
|
(209,667)
|
|
|
-
|
Income taxes
payable
|
|
|
222,801
|
|
|
289,230
|
Advances from
customers
|
|
|
305,052
|
|
|
668,446
|
|
|
|
|
|
|
|
NET CASH PROVIDED BY
OPERATING ACTIVITIES
|
|
|
7,892,929
|
|
|
5,824,960
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
Purchase of property
and equipment
|
|
|
(9,943,309)
|
|
|
(6,334,776)
|
|
|
|
|
|
|
|
NET CASH USED IN
INVESTING ACTIVITIES
|
|
|
(9,943,309)
|
|
|
(6,334,776)
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
Principal payments on
capital lease
|
|
|
(390,009)
|
|
|
(205,509)
|
Proceeds from bank
loans
|
|
|
4,821,973
|
|
|
2,686,706
|
Repayments of bank
loans
|
|
|
(4,018,311)
|
|
|
(2,370,623)
|
(Increase) decrease in
restricted cash
|
|
|
(787,589)
|
|
|
316,083
|
Increase (decrease) in
bank acceptance notes payable
|
|
|
787,589
|
|
|
(316,083)
|
Net proceeds from sale
of common stock
|
|
|
2,388,589
|
|
|
-
|
Proceeds from exercise
of warrants
|
|
|
-
|
|
|
198,142
|
|
|
|
|
|
|
|
NET CASH PROVIDED BY
FINANCING ACTIVITIES
|
|
|
2,802,242
|
|
|
308,716
|
|
|
|
|
|
|
|
EFFECT OF EXCHANGE
RATE ON CASH AND CASH EQUIVALENTS
|
|
|
25,427
|
|
|
3,898
|
|
|
|
|
|
|
|
NET INCREASE
(DECREASE) IN CASH AND CASH EQUIVALENTS
|
|
|
777,289
|
|
|
(197,202)
|
|
|
|
|
|
|
|
CASH AND CASH
EQUIVALENTS - beginning of period
|
|
|
1,445,728
|
|
|
1,152,607
|
|
|
|
|
|
|
|
CASH AND CASH
EQUIVALENTS - end of period
|
|
$
|
2,223,017
|
|
$
|
955,405
|
|
|
|
|
|
|
|
SUPPLEMENTAL
DISCLOSURE OF CASH FLOW INFORMATION:
|
|
|
|
|
|
|
Cash paid
for:
|
|
|
|
|
|
|
Interest
|
|
$
|
244,291
|
|
$
|
244,685
|
Income
taxes
|
|
$
|
2,103,438
|
|
$
|
1,200,944
|
|
|
|
|
|
|
|
NON-CASH INVESTING
AND FINANCING ACTIVITIES:
|
|
|
|
|
|
|
Property and equipment
acquired on credit as payable
|
|
$
|
547,294
|
|
$
|
-
|
Series A preferred
converted to common shares
|
|
$
|
-
|
|
$
|
13,198
|
Common stock issued for
future service
|
|
$
|
78,600
|
|
$
|
27,440
|
Reconciliation of Net
Income to EBITDA
|
(Amounts expressed in
US$)
|
|
|
|
For the Three
Months
Ended September
30,
|
|
For the Nine
Months
Ended September
30,
|
|
|
2013
|
|
|
2012
|
|
2013
|
|
|
2012
|
Net income
|
$
|
2,130,736
|
|
$
|
2,355,102
|
$
|
6,075,889
|
|
$
|
3,729,267
|
Add: income
tax
|
|
1,015,701
|
|
|
824,628
|
|
2,326,239
|
|
|
1,490,173
|
Add: interest
expense
|
|
74,638
|
|
|
84,289
|
|
244,291
|
|
|
244,685
|
Add: warrant
modification
expense
|
-
|
|
|
-
|
|
-
|
|
|
235,133
|
Add: depreciation
and
amortization
|
1,685,694
|
|
|
1,650,599
|
|
4,954,160
|
|
|
4,789,837
|
Adjusted
EBITDA
|
$
|
4,906,769
|
|
$
|
$4,914,618
|
$
|
13,600,579
|
|
$
|
10,489,095
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non
GAAP Operating Income, Net Income and EPS
|
(Amounts expressed in
US$)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months
Ended September
30,
|
|
For the Nine
Months
Ended September
30,
|
|
|
|
2013
|
|
|
2012
|
|
2013
|
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$2,130,736
|
|
|
$2,355,102
|
|
$6,075,889
|
|
|
$3,729,267
|
Add: warrant modification
expense
|
|
|
-
|
|
|
-
|
|
-
|
|
|
235,133
|
Adjusted net
income
|
|
|
$2,130,736
|
|
|
$2,355,102
|
|
$6,075,889
|
|
|
$3,964,400
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares -
diluted
|
|
|
3,479,646
|
|
|
2,667,017
|
|
3,112,148
|
|
|
2,617,798
|
Adjusted diluted
EPS
|
|
|
$0.61
|
|
|
$0.88
|
|
$1.95
|
|
|
$1.51
|
SOURCE Cleantech Solutions International, Inc.