THT Heat Transfer Technology, Inc. Announces Fourth Quarter And Fiscal Year 2013 Results Sales revenue rose 42.2% year-over-year in fourth quarter 2013, exceeding guidance PR Newswire SIPING, China, March 31, 2014 SIPING, China, March 31, 2014 /PRNewswire/ -- THT Heat Transfer Technology, Inc. (Nasdaq: THTI) ("THT" or the "Company"), a leading provider of heat exchangers and heat exchange solutions in China'sclean technology industry, today announced its financial results for the fourth quarter and fiscal year ended December 31, 2013. Fourth Quarter 2013 (Unaudited) Financial Highlights oSales revenue increased by 42.2% year-over-year to US$39.3 million, exceeding the Company's previously stated guidance of US$7 million to US$9 million. oGross profit increased by 44.1% year-over-year to US$10.1 million. oGross margin for the fourth quarter 2013 was 27.7%, compared to 25.5% for the fourth quarter 2012. oOperating income increased by 55.6% year-over-year to US$2.8 million. oNet income attributable to common stockholders increased by 141.4% year-over-year to US$1.7 million. Fiscal Year 2013 (Audited) Financial Highlights oSales revenue increased by 14.4% year-over-year to US$71.8 million. oGross profit increased by 2.3% year-over-year to US$22.2 million. oOperating income decreased by 6.2% year-over-year to US$5.0 million. oNet income attributable to common stockholders decreased by 3.4% year-over-year to US$3.1 million. oBasic and fully diluted net income per share was US$0.1545 for 2013, compared with net income per share of US$0.1496 for 2012. Comment from Zhao Guohong, Chairman and CEO Chairman and Chief Executive Officer Guohong Zhao commented, "We are pleased to report the 42% year-over-year revenue growth we achieved in the fourth quarter 2013 exceeded our guidance, thanks to the rapid urbanization in China in 2013. The solid fourth quarter growth was primarily attributed to increased demand of heat exchange units and air-cooled heat exchangers. "Looking forward to the next year, we expect steady demand from our heat exchange products. Nevertheless, we will be confronted with the negative effect of Chinese economic slowdown. With the purpose of improving our prospects of steady growth, the Company will continually focus on maintaining competitive advantage in substantial market and expanding sales of components and maintenance service. Meanwhile, manufacturing and sales of more products with high technology and high added value will be a new profit growth engine for our long-term development." Fiscal Year 2013 Audited Financial Results Sales Revenue Sales revenue for the fiscal year 2013 was US$71.8 million, a 14.4% increase from US$62.8 million in 2012, primarily attributable to increased demand of heat exchange units in response to rapid urbanization in China. Sales volume of heat exchange products amounted to 3,418 units, a decrease of 308 units from 3,726 units in 2012. Unit price increased 24.8%, to US$21,017 in 2013 from US$16,846 in 2012. Such increase was mainly because we manufactured more products with high price and costs to suit our customers' higher requirements. For the fiscal year 2013, sales revenue from heat exchange units increased US$7.0 million, or 28.4% year-over-year, to US$31.6 million. Sales revenue from air-cooled heat exchangers increased 143.37% year-over-year to US$4.2 million from US$1.7 million in 2012. The increased revenue from heat exchange units and air-cooled heat exchangers was mainly due to increased demand for our products as a result of the overall economic recovery in China in 2013. Cost of Sales Cost of sales for the fiscal year 2013 increased by 20.8% year-over-year to US$49.7 million from US$41.1 million in 2012, mainly attributable to our increased sales revenue in 2013. Gross Profit and Gross Margin Gross profit for 2013 was US$22.2 million, representing a 2.3% increase from US$21.7 million in 2012, mainly attributable to increased sales from heat exchanger units and air-cooled heat exchangers. Gross margin decreased to 30.9% in 2013 compared to 34.5% in 2012, mainly due to an increase in labor costs and raw material costs consorted with the special products as mentioned above in 2013. Operating Expenses Administrative expenses increased 45.9% year-over-year to US$8.6 million in 2013, compared to US$5.9 million in 2012. The rise was driven primarily by higher bad debt expense. The increase in bad debt expense was mainly caused by China's tightened credit policy which gave rise to delayed delivery schedules and delayed payments by our customers. Research and development (R&D) expenses rose by 18.8% to US$2.6 million in 2013 from US$2.2 million in 2012, primarily due to the higher costs of raw materials used in R&D. Selling expenses totalled US$5.9 million in 2013, representing a decrease of 28.0% over 2012, mainly due to a decrease in our sales personnel's travelling expenses. Accordingly, total operating expenses increased by 5.1% to US$17.2 million in 2013 compared to US$16.3 million in 2012. Income before Income Taxes Income before income taxes for the fiscal year 2013 increased by 7.3% to US$4.2 million from US$3.9 million in 2012. The decrease was mainly attributable to the increased gross profit. Income Tax Income tax expenses decreased to US$1.1 million in 2013 from US$0.7 million in 2012 as a result of an increase in taxable income. Net Income Net income attributable to common stockholders was US$3.1 million in 2013, a decrease of 2.2% compared to US$3.2 million in 2012. Basic and fully diluted net income per share was US$0.1494 in 2013, compared with US$0.1546 in 2012. Liquidity As of December 31, 2013, the Company had cash and cash equivalents of US$9.1 million and restricted cash of US$1.7 million. During the year, there was a net cash outflow of US$1.6 million, compared with a net cash inflow of US$3.4 million in 2012. Net cash provided by operating activities was US$2.9 million for 2013, compared with net cash used in operating activities of US$4.3 million for 2012. The decrease in net cash provided by operating activities was mainly because an US$8.2 million decrease in other payables and accrued expenses, and a US$1.2 million increase in allowance for doubtful accounts. Net cash used in investing activities was US$0.1 million for 2013, compared with US$1.5 million for 2012. Net cash provided by financing activities was US$4.8 million for 2013, compared with US$0.5 million for 2012. Outlook for First Quarter Fiscal 2014 THT expects to generate net revenues in the range of US$6 million to US$7 million during the first quarter 2014, compared with US$7.9 million in the same period of 2013. This represents the Company's current and preliminary view, and is subject to change. About THT Heat Transfer Technology, Inc. Through its Chinese operating subsidiaries, THT Heat Transfer Technology, Inc. designs, manufactures and sells plate heat exchangers, shell-and-tube heat exchangers, heat exchanger units and other heat exchanger products with total heat exchange solutions. Heat exchangersplayan integral part in helpingcustomers improve energy efficiency.Used in a number of industries, THT's products focus on energy conservation, emission reduction and other environmentally friendly applications.Its six major product categories are plate heat exchangers, shell-and-tube heat exchangers, air-cooled heat exchangers, weld plate heat exchangers, heat exchanger units and plate-and-shell heat exchangers. The Company also offers comprehensive heat exchange solutions. THT's in-house R&D capabilities enable it to deliver tailored products that better meet the changing demands of its customers. The Company has a strong record of delivering high-quality products and services to leading domestic and international customers. THT has completed over 3,000 projects and has provided heat exchange solutions to several Fortune 500 companies. The Company is headquartered in Siping City, Jilin Province, China. For more information, please visit the Company's website at www.tht.cn. Safe Harbor Statement This press release contains certain statements that may include "forward looking statements". All statements other than statements of historical fact included herein are "forward-looking statements". These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, and involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You 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 risk factor sections of the Company's periodic reports that are filed with the Securities and Exchange Commission and are available on its website (http://www.sec.gov). All forward-looking statements attributable to the Company or 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. Contact: Mr. Jack Xiao Investor Relations Manager THT Heat Transfer Technology, Inc. Tel: +86 (434) 3266779 Email: IR@tht.cn Rubing Li Investor Relations Department THT Heat Transfer Technology, Inc. Tel: +65 9235 1765 Email: firstname.lastname@example.org - FINANCIAL TABLES FOLLOW - THT Heat Transfer Technology, Inc. Audited Consolidated Balance Sheets As of December 31, 2013 and 2012 (Stated in thousands of US Dollars) December December 31,2012 31,2013 Assets Current assets Cash and cash equivalents 9082 10,703 Restricted cash 1,728 1,838 Accounts receivable, net 44,316 37,683 Inventories, net 25,304 31,892 Other current assets 16,621 14,049 Total current assets 97,051 96,165 Long-term accounts receivable 2,209 1,237 Other non-current assets 13,562 14,067 Total assets 112,822 111,469 Liabilities Current liabilities Short-term bank loans 16,038 18,705 Other current liabilities 32,825 33,080 Total current liabilities 48,863 51,785 Long-term loan 573 951 Total liabilities 49,436 52,736 Total shareholders' equity 63,386 59,311 Noncontrolling interests - (578) Total liabilities and equity 112,822 111,469 THT Heat Transfer Technology, Inc. Audited Consolidated Statements of Income For Fiscal Year Ended December 31, 2013 and 2012 (Stated in thousands of US Dollars, except number of shares and per share data) Year ended December 31, 2013 2012 Sales revenue 71,836 62,771 Cost of sales (49,678) (41,119) Gross profit 22,158 21,652 Operating expenses Administrative expenses 8,623 5,910 Research and development expenses 2,649 2,231 Selling expenses 5,901 8,195 Total operating expenses 17,172 16,336 Operating income 4,985 5,316 Interest income 7 28 Other income 685 524 Financial costs (1,469) (1,814) Other expense (46) (175) Income before income taxes 4,163 3,879 Income taxes expenses (1,054) (700) Net income before noncontrolling interests 3,109 3,179 Net (income) loss attributable to noncontrolling (53) (16) interest Net income attributable to the equity stockholders 3,055 3,163 Earnings per share attributable to THT Heat Transfer Technology Inc. common stockholders 0.15 0.15 Weighted average number of shares outstanding - Basic and diluted 20,453,500 20,453,500 THT Heat Transfer Technology, Inc. Audited Consolidated Statements of Cash Flows For Fiscal Year Ended December 31, 2013 and 2012 (Stated in thousands of US Dollars) Fiscal Year Ended December 31, 2013 2012 Net cash provided by (used in) operating 2,893 4,316 activities Net cash used in investing activities 48 (1,505) Net cash provided by financing activities (4,779) 475 Effect of exchange rate changes on cash and 217 78 cash equivalents Net (decrease) / increase in cash and cash (1,621) 3,363 equivalents Cash and cash equivalents at beginning of the 10,703 7,340 period Cash and cash equivalents at end of the period 9,082 10,703 SOURCE THT Heat Transfer Technology, Inc. Website: http://www.tht.cn
THT Heat Transfer Technology, Inc. Announces Fourth Quarter And Fiscal Year 2013 Results
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