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Lihua Intl (LIWA) – Comments & Business Outlook
Third Quarter 2012 Financial Highlights
- Sales increased 53.5% year-over-year to $238.8 million.
- Gross profit increased 29.8% year-over-year to $25.3 million.
- Net income was $17.2 million, or $0.58 per diluted share, compared with $13.5 million, or $0.45 per diluted share in the third quarter of 2011.
- Non-GAAP net income(1) was $16.8 million, or $0.56 per diluted share, compared with $12.9 million, or $0.43per diluted share in the third quarter of 2011.
- Adjusted EBITDA(2) was $23.6 million, compared with $17.6 million in the third quarter of 2011.
- Strong balance sheet with $130.5 million in cash and cash equivalents, or $4.37 per diluted share, as ofSeptember 30, 2012, compared with $105.6 million, or $3.52 per diluted share, as of December 31, 2011.
- Cash flow from
“We are pleased with the growth we achieved in the third quarter, as well as the strategic progress we have made throughout 2012. We are approaching the end of the year with solid momentum and are on track to see even greater strategic and operational growth in the years to come,” said Mr. Jianhua Zhu, Lihua’s founder, chairman and CEO. “Copper anode production is near full capacity while demand for our anode, wire and rod products remains strong and continues to grow, supporting strong financial performance in spite of ASP pressure related to a decline in copper prices.
“Our broader expansion initiatives are proceeding according to plan, as we have completed five new factories and three warehouses on the 30-acre plant site and maintain our expectation that the site will be fully developed, including an additional copper anode smelter, next year. In addition, we are planning to transfer our first copper anode smelter to the anode production facility on the new plant site to optimize anode production efficiency. We recently completed test production of our forthcoming CCA cable and wire product and had it qualified for its intended application. We look forward to the commercial launch of this revolutionary product in the second half of 2013. Demand from the end markets we currently serve and those we plan to serve continues to accelerate, putting Lihua in an ideal position for long-term growth and success. We have a clear vision for the future of the Company, as well as a solid plan and the financial resources necessary to achieve our growth objectives. We are excited about the opportunities that lie ahead and look forward to sharing our accomplishments with the investment community along the way,” concluded Mr. Zhu.
Outlook
The Company began production on its two new copper anode smelters on June 1, 2012, increasing copper anode capacity to 85,000 tons per year. Additional construction on the Company’s 30-acre plant site is scheduled for completion in 2013. The Company has completed construction of five factory buildings and three warehouse and storage facilities. The remainder of the site, which includes a new R&D center, office space and employee facilities, will be completed in 2013.
The Company reiterates its full-year 2012 guidance of gross profit in the range of $84-87 million, and non-GAAP net income in the range of $54-57 million for the full year 2012, representing year-over-year growth of 11-15% and 8-14%, respectively. The Company expects the growth in 2012 will be largely the result of the additional copper anode capacity and continued strong demand in China for recycled copper and copper alternative products in end markets that include household appliances, consumer white goods and infrastructure.
2012-11-09 18:21:11
Source: http://geoinvesting.com/companies/liwa_lihua_intl/research/comments_business_outlook/0040547
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