CHONGQING, China, Nov. 16, 2010 /PRNewswire-FirstCall/ -- China
Redstone Group (OTC Bulletin Board: CGPI) ("Redstone" or the
"Company"), the largest private provider of cemetery products and
services in Chongqing, China,
today announced financial results of the second quarter ended
September 30, 2010.
- Q2 FY11 revenue increased
71.7% to $11.6 million, driven by
both unit growth and pricing increases
- Q2 FY11 Non-GAAP adjusted net
income increased 82.5% to $5.0 million
with adjusted EPS of $0.39
- Gross margin increased 390 basis points to 61.3%
- China Redstone
reaffirms guidance for FY2011: Revenue
of $40.0 million and net
income of $19.5 million with EPS of
$1.45
- Management to host earnings conference call on
November 16, 2010 at
9:00am ET
SUMMARY FINANCIALS
Fiscal Second
Quarter
2011 Results
(unaudited)
|
|
|
Q2
2011
|
Q2
2010
|
CHANGE
|
|
Net Sales
|
$11.6
million
|
$6.7
million
|
+71.7%
|
|
Gross Profit
|
$7.1
million
|
$3.9
million
|
+83.0%
|
|
GAAP Net Income
Adjusted Non-GAAP Net
Income
|
$4.7
million
$4.9
million (1)
|
$2.7
million
$2.7
million
|
+72.7%
+80.1%
|
|
GAAP EPS (Diluted)
Adjusted Non-GAAP EPS
(Diluted)
|
$0.37
$0.39
(1)
|
$0.36
$0.36
|
+2.8%
+8.3%
|
|
Weighted Average
Shares
|
12.7
million
|
8.8
million
|
+44.0%
|
|
|
|
|
|
(1)Excluding loss on change in fair value of
warrants of $0.3 million for Q2
2011. For more information about the
non-GAAP financial measures contained in this press release, please
see "About Non-GAAP Financial Measures" below.
Second Quarter FY 2011
Financial Results
Revenue for the second quarter of fiscal year 2011 increased
71.7% to approximately $11.6 million
compared to $6.7 million for the
second quarter of fiscal 2010. All revenue in the quarter was
generated by selling cemetery plot sales. The significant increase
in revenue was driven by enhanced marketing and advertising efforts
and the successful sell through of new cemetery plots which were
recently completed. For the second fiscal quarter of fiscal 2011,
which ended September 30, the Company
sold 1,726 plots, representing a 34.6% increase from the second
quarter ended September 30, 2010. The
average sales price per plot for the second quarter of fiscal 2011
was $6,800, 25.8% higher than the
second quarter of fiscal 2010 and well above the $5,000 to $6,250 the Company forecasts for fiscal
year ending March 31, 2011.
|
|
Fiscal year
ending March 31
|
Q1
2011
|
Q2
2011
|
FY 2011
YTD
|
FY 2011
Guidance
|
|
Cemetery
Plot Sales
|
1,824
|
1,726
|
3,580
|
7,000
|
|
Average
Sales Per Plot
|
$6,557
|
$6,800
|
$6,613
|
$5,000 -
$6,250
|
|
|
|
|
|
|
|
|
"We are pleased with our positive operating results which are
the result of timely execution of our growth plan," stated Mr.
Yivou Ran, Chairman and Chief Executive Officer of China Redstone. "We continue to experience
robust growth in our cemetery business, which showed measured gains
in revenues, number of plots sold and average sales price. As one
of the few private cemetery companies in Chongqing with a large inventory of desirable
plots, we are uniquely positioned to benefit from the secular
growth in this industry."
Gross profits for the second quarter of fiscal 2011 were
$7.1 million with gross margins of
61.3%, compared to $3.9 million in
gross profit and gross margins of 57.4% for the second quarter of
fiscal 2010. The increase in gross profit was primarily due to a
decrease in cemetery development cost per plot and an increase in
sales of deluxe tombs which generate approximately 20% higher
margins than traditional tombs. In addition, the Company applied a
new technology for casting shale stone memorials which led to a 60%
decrease in the use of raw materials, which led to a cost savings
on average of approximately 3% per cemetery plot.
Operating expenses for the second quarter of fiscal 2011 were
approximately $0.7 million, an
increase of 73.8% compared to the same period in 2010, which
resulted from higher advertising expenses to attract more
customers, and higher general and administrative expenses
commensurate with increased sales activities, in addition to public
company expenses.
Operating income for the second quarter of fiscal 2011 totaled
approximately $6.4 million, an 84.1%
increase from $3.5 million reported
for the second quarter of fiscal 2010. Operating margins increased
370 basis points for the second quarter of fiscal 2011 over the
same period of the prior year.
GAAP net income was approximately $4.7
million for the second quarter of fiscal 2011, a 72.7%
increase from the second quarter of fiscal 2010. Diluted earnings
per share were $0.37 for the second
quarter of fiscal 2011 compared to $0.31 for the second quarter of fiscal 2010,
based upon 12.7 million and 8.8 million diluted common shares
outstanding, respectively. Adjusted Non-GAAP net income excluding a
$0.3 million loss on change in fair
value of warrants in the second quarter was $5.0 million, or $0.39 per diluted common share based on 12.7
million diluted common shares outstanding for the second quarter of
fiscal 2011.
FY 2011 Six Months Financials Results
For the first six months of fiscal 2011, revenue increased 57.2%
to $23.7 million from $15.1 million in the same period of the prior
year. Year-to-date, the Company sold 3,580 plots,
representing a 23.1% increase from the first six months ended
fiscal 2010. Average sales price per plot for the first six months
of fiscal 2011 increased 27.1% to $6,613. Cost of goods sold increased 36.8% to
$9.3 million yielding gross profits
of $14.4 million and gross margin of
60.9% for the first six months of fiscal 2011. Operating expenses
increased 241.3% to $2.6 million due
to improved sales levels and the costs for being a public company.
Income from operations increased 57.1% to $11.8 million with operating margins of 55.0%.
GAAP net income for the first six months of fiscal 2011 was
$9.5 million and diluted earnings per
share was $0.75 compared to net
income of $5.9 million and diluted
earnings per share of 0.67 in the same period of fiscal 2010, based
on 12.7 million shares and 8.8 million shares, respectively.
Adjusting for the $0.7 million
non-cash gain for the change in fair value of warrants, net income
was $9.0 million for the first six
months of fiscal 2011, yielding $0.71
in diluted earnings per share, respectively.
Balance Sheet and Cash Flow
Cash and cash equivalents totaled $8.0
million on September 30, 2010,
compared to $9.4 million on
March 31, 2010. Inventory was
approximately $13.2 million on
September 30, 2010, versus
approximately $11.2 million on
March 31, 2010. The Company had a
current ratio of 4.1 to 1 and stockholders' equity of $47.6 million, with total assets of $62.9 million versus total liabilities of
$15.3 million on September 30, 2010.
For the first six months of fiscal 2011, net cash used in
operating activities was $1.2 million
versus $1.1 million for the same
period in 2010. The increase was primarily attributable to
$11.8 million in supplier advances to
support further expansion of its cemetery property and prepare
4,170 additional plots for sale.
Fiscal 2011 Guidance
Based on the strong results recorded in the first six months of
fiscal 2011, Management reaffirms guidance of sales of $40 million and net income of $19.5 million with EPS of $1.45 for the fiscal year ending March 31, 2011. Guidance assumes 7,000 plots sold
at an average sales price of $5,000 to
$6,250.
"Momentum in our business is reflective of the strong secular
growth drivers and underlying fundamentals in the death care
industry. We own the largest cemetery in Chongqing which is located in a peaceful,
convenient location with recognized "Feng Shui" and are becoming a
natural choice for many families making advance purchase decisions
for multiple plots. Our marketing efforts have further strengthened
our brand image, which we expect to lead to further pricing power,
and we are confident in surpassing 7,000 cemetery plots sold this
year. With 16.47 acres under development and 136.74 acres for
future development, equating to more than 200,000 standard plots
and 300,000 – 400,000 wall tomb and inside room tomb, we are in a
position to grow organically for years to come without the need to
acquire more property."
Conference Call
The conference call will take place at 9:00 a.m. ET on Tuesday,
November 16, 2010. Interested participants should call
1-877-941-1427 when calling within the
United States or 1-480-629-9664 when calling internationally
(passcode 4383892).
This conference call will be broadcast live over the Internet
and can be accessed by all interested parties by clicking on this
link: http://viavid.net/dce.aspx?sid=00007DA3, or visiting
http://www.viavid.net, where the webcast can be accessed through
November 23, 2010.
A playback will be available through November 23, 2010. To listen, please call
1-877-870-5176 within the United
States or 1-858-384-5517 when calling internationally
(passcode 4383892).
About China Redstone Group, Inc.
China Redstone is a cemetery
developer and provider of cemetery products and services in
Chongqing, China, through its
contractually controlled affiliate Chongqing Foguang Tourism
Development (Group) Co., Ltd. Founded in 2002, the Company provides
a complete range of funeral merchandise and services, including
cemetery property, both at the time of need and on a preneed basis.
Its cemeteries are highly regarded in terms of a number of factors
such as tradition, reputation, physical size, capacity of business,
available supply, name recognition, aesthetics and potential for
development or expansion.
About Non-GAAP Financial Measures
This press release contains non-GAAP financial measures. The
Company believes that these non-GAAP financial measures are useful
to investors because they exclude non-cash charges that management
excludes when it internally evaluates the performance of the
Company's business and makes operating decisions, including
internal budgeting, and performance measurement, because these
measures provide a consistent method of comparison to historical
periods. Moreover, management believes these non-GAAP measures
reflect the essential operating activities of China Redstone Group,
Inc. Accordingly, management excludes the change in derivative
liabilities. The Company believes that providing to its investors
the non-GAAP measures that management uses is useful to investors
for a number of reasons. The non-GAAP measures provide a consistent
basis for investors to understand the Company's financial
performance in comparison to historical periods. In addition, it
allows investors to evaluate the Company's performance using the
same methodology and information as that used by our management.
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 non-GAAP financial measure. However, our management
compensates for these limitations by providing the relevant
disclosure of the items excluded.
Reconciliation of GAAP Net Income to Adjusted Net Income
(Unaudited)
Three Months Ended
September 30,
|
2010
|
2009
|
|
GAAP Net (loss)
income
|
$ 4,721,996
|
$
2,734,158
|
|
Change in fair value of
derivative liabilities
|
$( 269,933)
|
--
|
|
Adjusted
net
income after tax
|
$
4,922,534
|
$
2,734,158
|
|
Weighted Average Shares
Outstanding
|
12,672,262
|
8,800,000
|
|
Adjusted Earnings Per
Share
|
$0.39
|
$0.31
|
|
|
|
|
Six Months Ended
September 30,
|
2010
|
2009
|
|
GAAP Net (loss)
income
|
$
9,518,811
|
$
5,887,760
|
|
Change in fair value of
derivative liabilities
|
$ 664,499
|
--
|
|
Adjusted Net
income
|
$
9,028,358
|
$
5,887,760
|
|
Weighted Average Shares
Outstanding
|
12,663,929
|
8,800,000
|
|
Adjusted Earnings Per
Share
|
$0.71
|
$0.67
|
|
|
|
|
Safe Harbor Statement
Certain statements set forth in this press release constitute
"forward-looking statements." Forward-looking statements include,
without limitation, any statement that may predict, forecast,
indicate, or imply future results, performance or achievements, and
may contain the words "estimate," "project," "intend," "forecast,"
"anticipate," "plan," "planning," "expect," "believe," "will
likely," "should," "could," "would," "may" or words or expressions
of similar meaning. Such statements are not guarantees of future
performance and are subject to risks and uncertainties that could
cause the company's actual results and financial position to differ
materially from those included within the forward-looking
statements. Forward-looking statements involve risks and
uncertainties, including those relating to the Company's ability to
grow its business. Actual results may differ materially from the
results predicted and reported results should not be considered as
an indication of future performance. The potential risks and
uncertainties include, among others, the Company's limited
operating history, the limited financial resources, domestic or
global economic conditions -- especially those relating to China,
activities of competitors and the presence of new or additional
competition, and changes in Federal or State laws, restrictions and
regulations on doing business in a foreign country, in particular
China, and conditions of equity markets. More information about the
potential factors that could affect the Company's business and
financial results is included in the Company's filings, available
via the United States Securities and Exchange Commission.
-- Tables to Follow –
CHINA
REDSTONE GROUP, INC
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
September
30,
2010
|
|
|
March
31,
2010
|
|
|
ASSETS
|
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
8,005,280
|
|
|
$
|
9,367,276
|
|
|
Inventory
|
|
|
13,209,870
|
|
|
|
11,194,905
|
|
|
Construction in progress -
cemetery property
|
|
|
11,832,041
|
|
|
|
-
|
|
|
Other current assets
|
|
|
-
|
|
|
|
2,430
|
|
|
TOTAL CURRENT ASSETS
|
|
|
33,047,191
|
|
|
|
20,564,611
|
|
|
|
|
|
|
|
|
|
|
|
|
PROPERTY AND EQUIPMENT,
NET
|
|
|
7,171,687
|
|
|
|
7,241,174
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER NON-CURRENT
ASSETS
|
|
|
|
|
|
|
|
|
|
Costs incurred for real estate
projects in progress
|
|
|
8,682,600
|
|
|
|
10,122,300
|
|
|
Related party
receivable
|
|
|
1,437,120
|
|
|
|
1,408,320
|
|
|
Prepaid lease expense
|
|
|
784,232
|
|
|
|
787,412
|
|
|
Intangible assets ,
net
|
|
|
11,758,545
|
|
|
|
11,787,903
|
|
|
TOTAL OTHER NON-CURRENT
ASSETS
|
|
|
22,662,497
|
|
|
|
24,105,935
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS
|
|
$
|
62,881,375
|
|
|
$
|
51,911,720
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES & STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
110,070
|
|
|
$
|
113,197
|
|
|
Welfare payable
|
|
|
99,049
|
|
|
|
97,064
|
|
|
Taxes payable
|
|
|
1,655,381
|
|
|
|
1,441,490
|
|
|
Other accrued
payables
|
|
|
68,370
|
|
|
|
76,507
|
|
|
Current portion of deferred
revenue
|
|
|
436,431
|
|
|
|
425,000
|
|
|
Accrued inventory
purchases
|
|
|
-
|
|
|
|
443,036
|
|
|
Short-term notes
payable
|
|
|
2,076,339
|
|
|
|
2,474,829
|
|
|
Warrant derivative
liability
|
|
|
701,827
|
|
|
|
1,366,326
|
|
|
TOTAL CURRENT
LIABILITIES
|
|
|
5,147,467
|
|
|
|
6,437,449
|
|
|
|
|
|
|
|
|
|
|
|
|
LONG-TERM LIABILITIES
|
|
|
|
|
|
|
|
|
|
Long-term other
payables
|
|
|
589,349
|
|
|
|
-
|
|
|
Deferred revenue
|
|
|
9,587,343
|
|
|
|
9,625,403
|
|
|
TOTAL LONG-TERM
LIABILITIES
|
|
|
10,176,692
|
|
|
|
9,625,403
|
|
|
|
|
|
|
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
Preferred stock, 20,000,000
shares authorized, $0.001 par value; no shares issued and
outstanding
|
|
|
-
|
|
|
|
-
|
|
|
Common stock, 100,000,000 shares
authorized, $0.001 par value; 12,672,262 and 12,402,262 shares
issued and outstanding, respectively
|
|
|
12,673
|
|
|
|
12,402
|
|
|
Additional-paid-in
capital
|
|
|
16,826,897
|
|
|
|
15,488,593
|
|
|
Retained earnings
|
|
|
27,680,674
|
|
|
|
18,161,863
|
|
|
Accumulated other comprehensive
income
|
|
|
3,036,972
|
|
|
|
2,186,010
|
|
|
TOTAL STOCKHOLDERS'
EQUITY
|
|
|
47,557,216
|
|
|
|
35,848,868
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
$
|
62,881,375
|
|
|
$
|
51,911,720
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHINA
REDSTONE GROUP, INC.
CONSOLIDATED STATEMENTS
OF INCOME AND COMPREHENSIVE INCOME
|
|
|
|
For the
three
months
ended
September
30,
2010
|
|
|
For the
three
months
ended
September
30,
2009
|
|
|
For the
six
months
ended
September
30,
2010
|
|
|
For the
six
months
ended
September
30,
2009
|
|
|
REVENUE
|
|
$
|
11,581,873
|
|
|
$
|
6,746,388
|
|
|
$
|
23,676,460
|
|
|
$
|
15,063,916
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COST OF GOODS SOLD
|
|
|
4,487,805
|
|
|
|
2,870,697
|
|
|
|
9,261,263
|
|
|
|
6,770,583
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT
|
|
|
7,094,068
|
|
|
|
3,875,691
|
|
|
|
14,415,197
|
|
|
|
8,293,333
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING E X P E N S E
S
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling expenses
|
|
|
66,274
|
|
|
|
36,421
|
|
|
|
135,199
|
|
|
|
81,341
|
|
|
General & administrative
expenses
|
|
|
656,454
|
|
|
|
379,350
|
|
|
|
2,438,252
|
|
|
|
672,643
|
|
|
TOTAL OPERATING
EXPENSES
|
|
|
722,728
|
|
|
|
415,771
|
|
|
|
2,573,451
|
|
|
|
753,984
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS
|
|
|
6,371,340
|
|
|
|
3,459,920
|
|
|
|
11,841,746
|
|
|
|
7,539,349
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSES)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
|
|
|
223,043
|
|
|
|
81,431
|
|
|
|
340,887
|
|
|
|
184,712
|
|
|
Gain on change in fair value of
warrants classified as derivatives
|
|
|
(269,933)
|
|
|
|
-
|
|
|
|
664,499
|
|
|
|
-
|
|
|
Interest expenses
|
|
|
(50,419)
|
|
|
|
(59,400)
|
|
|
|
(106,675)
|
|
|
|
(118,800)
|
|
|
Interest income
|
|
|
23,044
|
|
|
|
2,495
|
|
|
|
38,812
|
|
|
|
4,924
|
|
|
Rental income, net
|
|
|
59,483
|
|
|
|
65,433
|
|
|
|
120,789
|
|
|
|
130,866
|
|
|
Non-operating
expenses
|
|
|
-
|
|
|
|
-
|
|
|
|
(2,612)
|
|
|
|
-
|
|
|
TOTAL OTHER INCOME
(EXPENSES)
|
|
|
(14,782)
|
|
|
|
89,959
|
|
|
|
1,055,700
|
|
|
|
201,702
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAXES
|
|
|
6,356,558
|
|
|
|
3,549,879
|
|
|
|
12,897,446
|
|
|
|
7,741,051
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME TAXES
|
|
|
(1,634,562)
|
|
|
|
(815,721)
|
|
|
|
(3,378,635)
|
|
|
|
(1,853,291)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
$
|
4,721,996
|
|
|
$
|
2,734,158
|
|
|
$
|
9,518,811
|
|
|
$
|
5,887,760
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER COMPREHENSIVE
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation
|
|
|
694,332
|
|
|
|
31,327
|
|
|
|
850,962
|
|
|
|
50,280
|
|
|
COMPREHENSIVE INCOME
|
|
$
|
5,416,328
|
|
|
$
|
2,765,485
|
|
|
$
|
10,369,773
|
|
|
$
|
5,938,040
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE -
BASIC
|
|
$
|
0.37
|
|
|
$
|
0.31
|
|
|
$
|
0.75
|
|
|
$
|
0.67
|
|
|
EARNINGS PER SHARE -
DILUTED
|
|
$
|
0.37
|
|
|
$
|
0.31
|
|
|
$
|
0.75
|
|
|
$
|
0.67
|
|
|
WEIGHTED AVERAGE SHARES
OUTSTANDING - BASIC
|
|
|
12,672,262
|
|
|
|
8,800,000
|
|
|
|
12,663,929
|
|
|
|
8,800,000
|
|
|
WEIGHTED AVERAGE SHARES
OUTSTANDING - DILUTED
|
|
|
12,672,262
|
|
|
|
8,800,000
|
|
|
|
12,663,929
|
|
|
|
8,800,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHINA
REDSTONE GROUP, INC.
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
For the
six
months
ended
September
30,
2010
|
|
|
For the
six
months
ended
September
30,
2009
|
|
|
CASH FLOWS FROM OPERATING
ACTIVITIES:
|
|
|
|
|
|
|
|
Net Income
|
|
$
|
9,518,811
|
|
|
$
|
5,887,760
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to reconcile net
income to net cash provided by (used in) operating
activities:
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
178,720
|
|
|
|
161,465
|
|
|
Gain on change in fair value of
warrants classified as derivatives
|
|
|
(664,499)
|
|
|
|
-
|
|
|
Stock issued for consulting
services
|
|
|
1,220,450
|
|
|
|
-
|
|
|
Stock issued for board of
director fees
|
|
|
118,126
|
|
|
|
-
|
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
-
|
|
|
Accounts receivable
|
|
|
-
|
|
|
|
61,468
|
|
|
Inventory
|
|
|
189,219
|
|
|
|
(2,334,934)
|
|
|
Prepaid lease expense
|
|
|
2,662
|
|
|
|
-
|
|
|
Other currents assets
|
|
|
-
|
|
|
|
30
|
|
|
Prepayments to related party
supplies
|
|
|
-
|
|
|
|
(4,841,130)
|
|
|
Accounts payable
|
|
|
(29,940)
|
|
|
|
29,609
|
|
|
Taxes payable
|
|
|
184,412
|
|
|
|
(29,062)
|
|
|
Other accrued
payables
|
|
|
(9,702)
|
|
|
|
3,433
|
|
|
Accrued inventory
purchases
|
|
|
(452,097)
|
|
|
|
-
|
|
|
Deferred revenue
|
|
|
(232,158)
|
|
|
|
-
|
|
|
Net cash provided by (used in)
operating activities
|
|
|
10,613,353
|
|
|
|
(1,061,361)
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING
ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Construction in progress -
cemetery property
|
|
|
(11,832,041)
|
|
|
|
-
|
|
|
Net cash used in investing
activities
|
|
|
(11,832,041)
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING
ACTIVITY:
|
|
|
|
|
|
|
|
|
|
Long-term other
payables
|
|
|
589,349
|
|
|
|
-
|
|
|
Payment on note
payable
|
|
|
(449,100)
|
|
|
|
-
|
|
|
Net cash provided by financing
activities
|
|
|
140,249
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Net decrease in cash and cash
equivalents
|
|
|
(1,667,788)
|
|
|
|
(1,061,361)
|
|
|
|
|
|
|
|
|
|
|
|
|
Effects of foreign
exchange
|
|
|
305,792
|
|
|
|
1,902
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents,
beginning of period
|
|
|
9,367,276
|
|
|
|
1,392,961
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, end
of period
|
|
$
|
8,005,280
|
|
|
$
|
333,502
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL
INFORMATION
|
|
|
|
|
|
|
|
|
|
Interest paid
|
|
$
|
109,052
|
|
|
$
|
59,552
|
|
|
Taxes paid
|
|
$
|
3,463,456
|
|
|
$
|
1,034,519
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE China Redstone Group