BEIJING, Nov. 14, 2012 /PRNewswire-FirstCall/ -- Tri-Tech
Holding Inc. (Nasdaq: TRIT), a premier Chinese company that
provides leading turn-key solutions for water resources management,
water and wastewater treatment, industrial safety and pollution
control announced today that revenues for the third fiscal quarter
ended September 30, 2012 decreased by
24.4% to $18.1 million from
$24 million in Q3 2011. Net loss
attributable to TRIT for the quarter was $677K, a 135.0% decrease from net income of
$1.9 million in Q3 2011. Diluted net
loss per share was $0.08 compared to
diluted net earnings per share of $0.24 in Q3 2011.
(Logo:
http://photos.prnewswire.com/prnh/20100603/CNTH016LOGO)
Key Financial Results of Q3 2012
- Revenue from Water, Wastewater and Municipal Infrastructure
decreased 58.6% to $6.4 million from
$15.5 million in Q3 2011
- Revenue from Water Resource Management Systems and Engineering
Services increased 90.3% to $6.7
million from $3.5 million in
Q3 2011
- Revenue from Industrial Pollution Control and Safety slightly
increased 2.2% to $5.1 million from
$4.9 million in Q3 2011
- Gross profit for the quarter was $4.7
million, a decrease of 22.6% or $1.4
million from $6.1 million in
Q3 2011
- Gross margin was 25.6%, matching 25.3% in the same period of
2011
Mr. Warren Zhao, Joint CEO of the
Company, commented on the operating results, "While we continued to
grow in two of our three operating segments, the third quarter of
2012 was a challenging one for our company as a whole. This was
because overall revenues decreased and expenses grew in our
historically largest segment, resulting in net losses for our
company. These challenges primarily related to (i) difficulties
driving revenues in the municipal water, wastewater and industrial
markets, largely due to reduced local government spending and
uncertain economic growth in our industry; (ii) unanticipated
customer-driven delays in evaluating project bids; (iii) slowed
revenue recognition from several of our large projects, resulting
from regulatory requirements and customers' changed engineering
requirements, which made us extend our projects schedule; and (iv)
substantial increases in operating expenses, mainly due to
headcount, which increased by 59% to 474 by the end of the third
quarter from 299 a year ago.
"Although we are striving to diversify our customer base beyond
our core of government-related or state-owned entities, these
efforts will take time. Uncertain industrial economic growth and
delayed and more restrained fiscal expenditure plans in sectors we
focus on (due in part to the central government transition in
China), rising labor and raw
materials costs, and intense market competition presented
unprecedented challenges to our profit growth.
"To address these challenges and improve profitability, we will
focus on completing existing projects to convert our backlog into
revenues as efficiently as possible. While we will continue to seek
new projects, we will seek to reduce our sales expense growth rate
and control overall operating expenses. In addition, we will
continue striving to grow our market share in the three lines of
business by adjusting our strategies to current market conditions,
such as, for example, focusing on projects that tie up less of our
resources, projects in smaller, less well-developed areas and
projects that benefit from government fiscal support."
Recent Business Developments
We made some progress in implementing our business strategies
during the third quarter, although we confronted temporary
difficulties in achieving growth from our business of water,
wastewater and municipal engineering services. We are pleased that
phase one of our Ordos Water Treatment Plant was fully put into
operation and is successfully purifying and supplying water to the
residents with a preliminary capacity of 2,000 to 3,000 cubic
meters per day. The expansion phase was almost completed by the end
of the quarter and is currently in trial operation. Our India
Bihar wastewater system project received all the regulatory
approvals required by the Reserve Bank of India in September, and we have been
accelerating implementation steps since the approval. At present we
have completed the specific design for the sewage plants, pump
stations and are in the midst of procuring equipment.
During the third quarter, we continued to develop our water and
wastewater treatment, water supply and pollution control businesses
in China. We secured industrial
wastewater and sewage treatment contracts worth an aggregate of
$2.08 million, by which we will
provide system procurement services, hot water softening and water
supply for multiple customers in different cities. Our water
resources business market expansion strategies have grown this
business segment to record levels for our company. We secured flash
flood foresting and river hydrologic monitoring contracts worth
$8.06 million. We were also awarded a
water conservation irrigation contract for Buerjin County in
Xinjiang, and we are providing the township of Yelaman with four
sets of water conservation irrigation systems for a new irrigation
area covering 625 hectares. To further our attempts of the water
resources business in the Indian market in the third quarter, we
bid to provide river water quality monitoring and groundwater
monitoring in several states in India. These projects are in a final stage of
tender evaluation.
Recently we signed a strategic partnering agreement with Rubicon
Water, an Australian irrigation solution provider. We are the
exclusive PRC distributor of Rubicon's irrigation products, which
target the information-based infrastructure market in Chinese
irrigation districts, leveraging our matured sales networking to
promote the system. We have established a business division to
promote these products and have begun to market them in several
Chinese irrigation areas.
Financial Performance in Q3 2012
Revenues
Revenues for Q3 2012 were $18.1
million, a decrease of $5.8
million, or 24.4%, from $24
million in the same period of 2011.
Revenue by Segment
|
Three
months ended September 30,
|
|
2012
|
2011
|
|
$
|
% of
Total
Revenues
|
$
|
% of
Total
Revenues
|
Segment
1 (Water/Wastewater
Treatment and Municipal
Infrastructure)
|
6,430,937
|
35.4%
|
15,544,356
|
64.8%
|
Segment
2 (Water Resources
Management Systems and
Engineering Services)
|
6,660,438
|
36.7%
|
3,499,953
|
14.6%
|
Segment
3 (Industrial Pollution
Control and Safety)
|
5,055,436
|
27.9%
|
4,944,679
|
20.6%
|
Total
|
18,146,811
|
100.0%
|
23,988,988
|
100.0%
|
Revenue from the Water/Wastewater Treatment and Municipal
Infrastructure segment for the third quarter of 2012 was
$6.4 million, a 58.6% decrease, from
$15.5 million in the same period of
2011. Revenue from this segment constitutes 35.4% of total
revenues. The decrease was mainly due to decline of new project
contracts sales, smaller sales recognized from Ordos water plants
projects as they were close to completion and slower sales
recognition from India Bihar municipal wastewater projects. The
Ordos project contributed 10.2% of the total revenues for Q3 2012,
compared with 57.1% of total revenues in Q3 2011. In Q3 2012, the
initial phase project was almost completed, and backlog left to be
completed was only $1.3 million.
We recognized only $1.8 million
of revenue from the expansion phase of the Ordos project, or 10% of
the expansion phase contract value, with backlog of $1.9 million left to be completed. The Indian
Bihar municipal wastewater projects, which contributed $1.98 million, or 5%, of the Company's revenues
in Q3 2012, were 30% completed as of the end of Q3 2012. This
project is currently behind schedule.
Revenue from the Water Resources Management Systems and
Engineering Services segment saw substantial growth of 90.3%, to
$6.7 million from $3.5 million in Q3 2011, representing 36.7% of
total revenues. The water resources segment was still quite
promising in the third quarter, and business continued to benefit
from government support, in the form of efficient government policy
execution and fund allocation. The significant increase in this
segment was due mainly to the strong revenue stream from the flash
flood early warning and small river hydrologic monitoring projects
awarded in the third quarter of 2012 and the timely implementation
of projects awarded in previous quarters.
Revenue from the Industrial Pollution Control and Safety segment
was $5.1 million, a slight increase
of 2.2% from $4.9 million in Q3 2011,
representing 27.9% of total revenues for Q3 2012. This increase was
due primarily to an increase of revenues from the industrial
wastewater system contract for Xushui Dawangdian Industrial Park in
Hebei, industrial communication
contracts for oil and gas fields and our international projects in
Qatar and Mexico. The Xushui Dawangdian Industrial Park
wastewater project was 60% completed, which contributed the largest
proportion of the revenue in Q3 2012.
Gross Profit and Margin
Gross profit was $4.7 million for
the quarter, decreased 23.3% from $6.1
million for Q3 2011. Gross margin for the quarter was 25.7%,
which was 25.3% in the third quarter of 2011. The flat gross margin
continued to reflect the decrease of overall revenue and
proportional decrease of overall cost.
Total Operating Expenses
Total operating expenses for Q3 2012 were $4.9 million, or 27.3% of the total revenues, an
increase of 69.0% from $2.9 million,
or 12.3% of the total revenue for Q3 2011. The increase resulted
from rising selling and marketing expenses and general and
administrative expenses as the Company aggressively implements its
growth plans amidst rising expenses.
- Selling and Marketing Expenses
In Q3 2012, total
selling and marketing expenses increased by 98.6% from $0.5 million in Q3 2011 to $1 million. This was caused by the expansion of
sales force and increases in compensation and welfare payments to
such staff.
- General and Administrative Expenses
General and
administrative expenses increased by 63.3%, from $2.4 million in Q3 2011 to $3.9 million in Q3 2012. This increase was mainly
due to increases in staff compensation and welfare, provision for
doubtful accounts, non-cash stock option expenses and other related
service expenses. We had a total headcount of 474 as of
September 30, 2012, which represents
an almost 59% increase over the headcount of 299 as of the same
time last year. General and administrative expenses for Q3 2012
were approximately 19.8% of total revenues, compared with 10% in
the same period last year.
Income from Operations
Loss from operations totaled $282
thousand, a 109.0% decrease from $3.1
million in Q3 2011.
Net Income and EPS
Diluted net loss per share was $0.08, based on net loss of $677 thousand and weighted average number of
diluted shares outstanding for the quarter ended September 30, 2012 of 8,215,536, compared to
$0.24 in Q3 2011, based on net income
of $1.9 million and weighted average
number of diluted shares outstanding of 8,160,407 in Q3 2011.
Liquidity and Capital Resources
As of September 30, 2012, cash and
cash equivalents, excluding restricted cash of $2.9 million, were $13.0
million. As of September 30,
2012, working capital was $11.4
million. We received $3.9
million from the Ordos water treatment plant build-transfer
("BT") contract in Q3 2012 and $1.6
million in October 2012. In
the aggregate, $22.9 million in cash
has been collected from the Ordos project as of the time of this
announcement, and we expect to collect approximately $60 million more from the Ordos projects during
the next two years.
As of September 30, 2012, the
Company had aggregate lines of credit of $21
million, consisting of $9.2
million, $7.9 million and
$3.9 million underwritten by Hangzhou
Bank, ICBC Bank and China Merchants Bank, respectively. In
September 26, 2012, we completed a
financing transaction underwritten by the Bank of Nanjing to issue corporate bonds of
$7.89 million (RMB 50 million by exchange rate of 6.341) with a
maturity of three years and a coupon of 6.2%. We have received the
proceeds of the financing and the initiatives increased our
financial flexibility and structure.
Financial Performance in the First Nine Months of
2012
Revenues for the nine months ended September 30, 2012 were $60.4 million, an increase of $1.3 million, or 2.2%, compared to $61.7 million in the same period of 2011. Gross
profit was $15.7 million, compared to
$16.4 million in the same period of
2011. Gross margin was 26.0%, compared to 26.5% in the same period
of 2011. Operating income for the nine months ended September 30, 2012 decreased from $8.6 million in 2011 to $2.8 million. Net income attributable to the
shareholders of the Company was down 60.5% to $2.1 million, compared to $5.4 million in the same period of 2011. Diluted
EPS was $0.26 compared to
$0.66 for the same period of
2011.
Projects Backlog and Pipeline
As of September 30, 2012, the
Company's total project backlog was $70.4
million, which it expects to record in 2012 and onwards. The
backlog included $38.8 million in the
Water and Wastewater Treatment segment, $7.9
million in the Water Resource Management segment and
$23.7 million in the Industrial
Pollution Control segment. The decrease on the backlog as of
September 30, 2012 was primarily due
to receiving fewer and smaller new contracts in the third quarter.
The lower backlog predicts a slow quarter for us in the fourth
quarter, particularly if we have any issues in converting backlog
into revenues or obtaining new projects in the fourth quarter.
Backlog by Segment
(In USD million)
|
September 30, 2012
|
June
30, 2012
|
|
|
|
$
|
% of
Total
Backlog
|
$
|
% of
Total
Backlog
|
%
Change
|
Segment
1 (Water/Wastewater
Treatment and Municipal
Infrastructure)
|
38.8
|
55.1%
|
41.9
|
52.9%
|
(7.4)
|
%
|
Segment
2 (Water Resources
Management Systems and
Engineering Services)
|
7.9
|
11.2%
|
12.2
|
15.4%
|
(35.2)
|
%
|
Segment
3 (Industrial Pollution
Control and Safety)
|
23.7
|
33.7%
|
25.1
|
31.7%
|
5.6
|
%
|
Total
|
70.4
|
100.0%
|
79.2
|
100.0%
|
(11.1)
|
%
|
The Company is currently monitoring potential projects with a
total expected value of $139 million,
of which approximately $86.7 million
is in Water and Wastewater Treatment, $5.2
million is in Water Resource Management and $47.1 million is in Industrial Pollution Control.
The Company has not been awarded any of these projects, and there
are no guarantees that it will be selected for any of such projects
if and when it bids.
Fiscal 2012 Guidance Update
Based on the performance in the third quarter of 2012 and the
estimate for the fourth quarter, the Company expects revenues to be
around $80 million. Assuming the
weighted average number of diluted shares remains the same, we
expect our EPS to be around $0.04.
These are the Company's targets, not predictions of the actual
performance. The foregoing statements regarding targets are
forward-looking and actual results may differ materially.
Conference Call
Our Joint CEOs, Warren Zhao and
Gavin Cheng, President Phil Fan and CFO Peter
Dong will host a conference call at 9:00 AM EST, Nov 15,
2012 (10:00 PM Beijing/Hong
Kong Time, Nov 15, 2012) to review
the Company's financial results, growth strategies and to respond
to questions and comments.
To participate, call U.S. Toll Free Number +1
(888) 846-5003 approximately
10 minutes before the call. International callers, please dial
+1 (480) 629-9856. The conference ID number is
4573871. A live webcast of the call will be available at
public.viavid.com/index.php?id=102380. Both an MP3 file one hour
after the call and a transcript 48 hours after the call will be
available. These will be archived for 90 days and accessible via
www.tri-tech.cn.
About Tri-Tech Holding Inc.
Tri-Tech designs customized sewage treatment and odor control
systems for municipalities and private sectors in China and international markets. These systems
combine software, information management systems, resource planning
and local and distant networking hardware that includes sensors,
control systems, programmable logic controllers, supervisory
control and data acquisition systems. The company also designs
systems that track natural waterway levels for drought control,
monitor groundwater quality and assist the Chinese government in
managing its water resources. The company is also moving into the
industrial pollution control market. Tri-Tech owns 39 software
copyrights and 11 product patents, and employs 474 people. Please
visit www.tri-tech.cn for more information.
An online investor kit including a company profile,
presentations, press releases, current price quotes, stock charts
and other valuable information for investors is available at
www.tri-tech.cn/ir. To subscribe to future releases via e-mail
alert, visit www.tri-tech.cn/ir/info/request.
This press release contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements include statements concerning plans, objectives, goals,
strategies, future events or performance, and underlying
assumptions and other statements that are other than statements of
historical facts. These statements are subject to uncertainties and
risks including, but not limited to, product and service demand and
acceptance, changes in technology, economic conditions, the impact
of competition and pricing, government regulation, and other risks
contained in reports filed by the company with the Securities and
Exchange Commission. All such forward-looking statements, whether
written or oral, and whether made by or on behalf of the company,
are expressly qualified by the cautionary statements and any other
cautionary statements which may accompany the forward-looking
statements. In addition, the company disclaims any obligation to
update any forward-looking statements to reflect events or
circumstances after the date hereof.
For more information, please contact:
Tri-Tech Holding Inc.
www.tri-tech.cn
IR Department
+86 (10) 57323666
ir@tri-tech.cn
[Financial Tables Follow]
TRI-TECH HOLDING INC. AND
SUBSIDIARIES
|
CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME (LOSS)
|
|
|
For The
Three Months Ended September 30,
|
|
For The
Nine Months Ended September 30,
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
Revenues:
|
|
|
|
|
|
|
|
|
System integration
|
|
16,381,899
|
|
23,650,312
|
|
56,656,331
|
|
59,404,359
|
Hardware products
|
|
1,764,912
|
|
327,768
|
|
3,752,326
|
|
2,328,819
|
Software products
|
|
—
|
|
10,908
|
|
—
|
|
10,908
|
Total
revenues
|
|
18,146,811
|
|
23,988,988
|
|
60,408,657
|
|
61,744,086
|
Cost of
revenues
|
|
|
|
|
|
|
|
|
System integration
|
|
12,110,593
|
|
17,652,014
|
|
42,303,768
|
|
43,925,339
|
Hardware products
|
|
1,371,138
|
|
256,680
|
|
2,398,243
|
|
1,424,055
|
Software products
|
|
—
|
|
1,745
|
|
—
|
|
1,745
|
Total cost of
revenues
|
|
13,481,731
|
|
17,910,439
|
|
44,702,011
|
|
45,351,139
|
Gross
profit
|
|
4,665,080
|
|
6,078,549
|
|
15,706,646
|
|
16,392,947
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Selling and marketing expenses
|
|
1,031,607
|
|
519,451
|
|
2,806,453
|
|
1,305,774
|
General and administrative expenses
|
|
3,908,026
|
|
2,393,836
|
|
10,008,932
|
|
6,343,062
|
Research and development expenses
|
|
7,074
|
|
30,596
|
|
87,472
|
|
97,340
|
Total operating
expenses
|
|
4,946,707
|
|
2,943,883
|
|
12,902,857
|
|
7,746,176
|
(Loss)
Income from operations
|
|
(281,627)
|
|
3,134,666
|
|
2,803,789
|
|
8,646,771
|
Other
expense:
|
|
|
|
|
|
|
|
|
Other income (expense)
|
|
41,428
|
|
(105,129)
|
|
1,124,812
|
|
(255,916)
|
Interest income
|
|
27,205
|
|
11,079
|
|
109,749
|
|
71,687
|
Interest expense
|
|
(652,204)
|
|
(37,212)
|
|
(1,647,135)
|
|
(44,167)
|
Fair Value change on contingent investment consideration
|
|
—
|
|
(40,000)
|
|
7,000
|
|
(40,000)
|
Investment gain
|
|
—
|
|
—
|
|
78,558
|
|
—
|
Total
other expenses
|
|
(583,571)
|
|
(171,262)
|
|
(327,016)
|
|
(268,396)
|
(Loss)
Income before provision for income taxes
|
|
(865,198)
|
|
2,963,404
|
|
2,476,773
|
|
8,378,375
|
Provision
for income taxes
|
|
—
|
|
499,577
|
|
601,555
|
|
1,344,636
|
Net
(loss) income
|
|
(865,198)
|
|
2,463,827
|
|
1,875,218
|
|
7,033,739
|
Less: Net
(loss) income attributable to noncontrolling interests
|
|
(188,176)
|
|
526,724
|
|
(256,772)
|
|
1,635,967
|
Net (loss)
income attributable to Tri-Tech Holding Inc.
shareholders
|
$
|
(677,022)
|
$
|
1,937,103
|
$
|
2,131,990
|
$
|
5,397,772
|
Net
(loss) income
|
|
(865,198)
|
|
2,463,827
|
|
1,875,218
|
|
7,033,739
|
Foreign currency translation adjustment
|
|
(1,402,386)
|
|
1,155,540
|
|
(1,113,149)
|
|
2,502,743
|
Comprehensive (loss) income
|
|
(2,267,584)
|
|
3,619,367
|
|
762,069
|
|
9,536,482
|
Less:
Comprehensive (loss) income attributable to noncontrolling
interests
|
|
(204,827)
|
|
717,207
|
|
(253,030)
|
|
1,892,613
|
Comprehensive (loss) income attributable to Tri-Tech
Holding Inc.
|
$
|
(2,062,757)
|
$
|
2,902,160
|
$
|
1,015,099
|
$
|
7,643,869
|
Net (loss)
income attributable to Tri-Tech Holding Inc. shareholders per share
are:
|
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.08)
|
$
|
0.24
|
$
|
0.26
|
$
|
0.67
|
Diluted
|
$
|
(0.08)
|
$
|
0.24
|
$
|
0.26
|
$
|
0.66
|
Weighted
average number of ordinary shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
8,215,536
|
|
8,160,407
|
|
8,201,771
|
|
8,116,802
|
Diluted
|
|
8,215,536
|
|
8,160,407
|
|
8,201,771
|
|
8,125,590
|
|
|
|
|
|
|
|
|
|
TRI-TECH HOLDING INC. AND
SUBSIDIARIES
|
CONSOLIDATED BALANCE SHEETS
|
|
|
September 30, 2012
|
|
December 31,
|
|
|
(Unaudited)
|
|
2011
|
ASSETS
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash
|
$
|
13,026,578
|
$
|
11,935,746
|
Restricted
cash
|
|
2,920,692
|
|
2,087,920
|
Accounts
receivable, net of allowance for doubtful accounts of $1,167,087
and $619,062 as of September 30, 2012 and December 31, 2011,
respectively
|
|
20,529,940
|
|
19,888,084
|
Unbilled
revenue
|
|
19,632,473
|
|
7,254,830
|
Other
current assets
|
|
4,917,800
|
|
2,761,548
|
Inventories
|
|
7,266,887
|
|
7,705,752
|
Deposits
on projects
|
|
3,467,045
|
|
1,212,691
|
Prepayments to suppliers and
subcontractors
|
|
10,640,081
|
|
4,908,697
|
Total
current assets
|
|
82,401,496
|
|
57,755,268
|
Long-term
unbilled revenue
|
|
61,058,928
|
|
59,298,740
|
Long-term
accounts receivables
|
|
232,055
|
|
—
|
Plant and
equipment, net
|
|
1,519,201
|
|
1,436,838
|
Construction in progress
|
|
5,094,752
|
|
4,566,934
|
Intangible
assets, net
|
|
10,949,774
|
|
11,609,662
|
Long-term
restricted cash
|
|
2,547,891
|
|
2,541,958
|
Goodwill
|
|
1,441,278
|
|
1,441,278
|
Total
Assets
|
$
|
165,245,375
|
$
|
138,650,678
|
LIABILITIES AND EQUITY
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts
payable
|
$
|
4,443,231
|
$
|
11,401,187
|
Notes
payable
|
|
—
|
|
1,176,197
|
Costs
accrual on projects
|
|
26,398,736
|
|
19,402,047
|
Advance
from customers
|
|
3,352,133
|
|
1,886,607
|
Loans from
third party companies and individual
|
|
5,010,532
|
|
972,196
|
Amount due
to shareholders
|
|
1,103,927
|
|
—
|
Amount due
to noncontrolling interest investor
|
|
7,386,848
|
|
6,057,250
|
Other
payables
|
|
1,529,814
|
|
687,336
|
Other
taxes payable
|
|
5,513,608
|
|
3,067,350
|
Accrued
liabilities
|
|
423,998
|
|
379,357
|
Payable on
investment consideration
|
|
582,966
|
|
895,000
|
Income
taxes payable
|
|
—
|
|
154,519
|
Deferred
income taxes
|
|
976,259
|
|
358,519
|
Short-term
bank borrowing (including VIE short-term borrowing of the
consolidated VIEs without recourse to Tri-Tech Holdings of
$7,945,689 and $2,296,895 as of September 30, 2012 and December 31,
2011, respectively)
|
|
14,253,842
|
|
8,010,365
|
Total
current liabilities
|
|
70,975,894
|
|
54,447,930
|
Long-term
bank borrowing
|
|
19,977
|
|
—
|
Corporate
bond
|
|
7,891,889
|
|
—
|
Noncurrent
deferred income taxes
|
|
3,518,279
|
|
3,455,823
|
Total
Liabilities
|
|
82,406,039
|
|
57,903,753
|
Equity
|
|
|
|
|
Tri-Tech
Holding Inc. shareholders' equity
|
|
|
|
|
Ordinary
shares ($0.001 par value, 30,000,000 shares authorized; 8,239,506
and 8,203,299 shares issued as of September 30, 2012 and December
31, 2011, respectively)
|
|
8,239
|
|
8,203
|
Additional
paid-in-capital
|
|
49,954,116
|
|
48,772,307
|
Statutory
reserves
|
|
1,866,994
|
|
1,866,994
|
Retained
earnings
|
|
21,814,376
|
|
19,682,386
|
Treasury
shares (21,100 shares in treasury as of September 30, 2012 and
December 31, 2011, respectively)
|
|
(193,750)
|
|
(193,750)
|
Accumulated other comprehensive income
|
|
3,496,548
|
|
4,593,046
|
Total
Tri-Tech Holding Inc. shareholders' equity
|
|
76,946,523
|
|
74,729,186
|
Noncontrolling interests
|
|
5,892,813
|
|
6,017,739
|
Total
shareholders' equity
|
|
82,839,336
|
|
80,746,925
|
Total
liabilities and equity
|
$
|
165,245,375
|
$
|
138,650,678
|
TRI-TECH HOLDING INC. AND
SUBSIDIARIES
|
CONSOLIDATED STATEMENTS OF CASH
FLOWS
|
|
|
For The
Nine Months Ended September 30,
|
|
|
2012
|
|
2011
|
|
|
(Unaudited)
|
|
(Unaudited)
|
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
Net income
before allocation to noncontrolling interests
|
$
|
1,875,218
|
$
|
7,033,739
|
Adjustments to reconcile net income to cash
provided by operating activities:
|
|
|
Amortization of share-based compensation
expense
|
|
951,964
|
|
276,474
|
Amortization of warrants
|
|
—
|
|
45,491
|
Depreciation and amortization
|
|
873,276
|
|
682,010
|
Provision
for doubtful accounts
|
|
554,033
|
|
296,173
|
Loss on
disposal of plant and equipment
|
|
—
|
|
5,657
|
Gain on
investment in joint venture
|
|
(78,558)
|
|
—
|
Deferred
income taxes
|
|
680,196
|
|
361,630
|
Changes
in operating assets and liabilities:
|
|
|
|
|
Accounts
receivable
|
|
(1,341,555)
|
|
1,571,166
|
Unbilled
revenue
|
|
(14,579,623)
|
|
(38,280,759)
|
Restricted
cash
|
|
(850,229)
|
|
(638,708)
|
Other
current assets
|
|
(3,922,470)
|
|
(111,996)
|
Inventories
|
|
391,186
|
|
(1,385,434)
|
Prepaid
expenses
|
|
(246,535)
|
|
—
|
Prepayments
|
|
(5,544,557)
|
|
(5,938,596)
|
Accounts
payable
|
|
(7,058,085)
|
|
852,108
|
Notes
payable
|
|
(1,173,199)
|
|
—
|
Cost
accrual on projects
|
|
7,135,547
|
|
12,135,018
|
Advance
from customers
|
|
1,525,756
|
|
19,212
|
Billings
in excess of revenue
|
|
—
|
|
(30,593)
|
Other
payables
|
|
1,084,635
|
|
5,821,712
|
Other
taxes payable
|
|
2,898,619
|
|
—
|
Accrued
liabilities
|
|
(56,228)
|
|
751,401
|
Taxes
payable
|
|
(130,769)
|
|
1,298,637
|
Net cash
used in operating activities
|
|
(17,011,378)
|
|
(15,235,658)
|
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
Payment in
business acquisition
|
|
(35,273)
|
|
(488,000)
|
Cash paid
on investment consideration
|
|
(82,159)
|
|
—
|
Cash
acquired from business combination
|
|
—
|
|
825,395
|
Cash
proceeds from disposal of plant and equipment
|
|
—
|
|
4,311
|
Payment to
purchase plant and equipment
|
|
(262,584)
|
|
(298,925)
|
Cash paid
to acquire intangible asset
|
|
(36,914)
|
|
(1,444,294)
|
Cash paid
for construction in progress
|
|
(557,279)
|
|
(289,274)
|
Collection
of loan to third-party companies
|
|
105,230
|
|
—
|
Payment of
loan to third-party companies
|
|
(149,378)
|
|
(1,473,607)
|
Net cash
used in investing activities
|
|
(1,018,357)
|
|
(3,164,394)
|
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
Proceeds
from bank borrowings
|
|
14,050,056
|
|
6,853,470
|
Payment of
bank borrowing
|
|
(7,734,796)
|
|
—
|
Proceeds
from amounts due from shareholders
|
|
1,105,077
|
|
—
|
Proceeds
from the issuance of corporate bond
|
|
7,893,407
|
|
—
|
Proceeds
from loan from third-party companies and individual
|
|
5,015,222
|
|
—
|
Payment of
loan from third-party companies
|
|
(962,768)
|
|
(43,540)
|
Proceeds
from loan from noncontrolling shareholders
|
|
773,554
|
|
—
|
Payment of
loan from noncontrolling shareholders
|
|
(1,979,667)
|
|
—
|
Payment of
installment of purchasing vehicle
|
|
—
|
|
(15,344)
|
Capital
Injection by noncontrolling shareholders
|
|
—
|
|
187,935
|
Proceeds
from exercising options into ordinary shares
|
|
—
|
|
454,009
|
Net cash
provided by financing activities
|
|
18,160,085
|
|
7,436,530
|
Effect of
exchange rate fluctuation on cash and cash equivalents
|
|
960,482
|
|
606,782
|
Net
increase (decrease) in cash and cash equivalents
|
|
1,090,832
|
|
(10,356,740)
|
Cash
and cash equivalents, beginning of period
|
$
|
11,935,746
|
$
|
23,394,995
|
Cash
and cash equivalents, end of period
|
$
|
13,026,578
|
$
|
13,038,255
|
|
|
|
|
|
Supplemental disclosure for cash flow
information:
|
|
|
|
|
Income
taxes paid
|
|
157,016
|
|
96,490
|
Interest
paid on debt
|
|
684,202
|
|
44,167
|
|
|
|
|
|
Supplemental disclosure for noncash investing
activity:
|
|
|
|
|
Fair value
change on contingent consideration payable
|
|
7,000
|
|
—
|
Gain on
long-term investment to India Joint Venture
|
|
78,558
|
|
—
|
Issued
30,207 and 35,974 ordinary shares as one of the consideration in
business combination
|
229,875
|
|
277,000
|
Addition
in land use right by transferring from long-term
prepayment
|
|
—
|
|
5,547,907
|
Payable to
purchase intangible assets during the business
combination
|
|
—
|
|
735,000
|
SOURCE Tri-Tech Holding Inc.