China Housing & Land Development Inc. Announces First Quarter 2014 Financial Results

 China Housing & Land Development Inc. Announces First Quarter 2014 Financial                                    Results  PR Newswire  XI'AN, China, May 15, 2014  XI'AN, China, May 15, 2014 /PRNewswire/ -- China Housing & Land Development, Inc. ("China Housing" or the "Company"; Nasdaq: CHLN) today announced its financial results for the quarter ended March 31, 2014.  Highlights for Q1 2014:    oTotal revenue in the first quarter of 2014 was $22.0 million compared to     $56.1 million in the fourth quarter of 2013 and $51.4 million in the first     quarter of 2013.   oTotal gross floor area ("GFA") sales were 20,416 sq. meters during the     first quarter of 2014, compared with 28,582 sq. meters in the fourth     quarter of 2013 and 89,691 sq. meters in the first quarter of 2013.   oAverage residential selling price ("ASP") in the first quarter of 2014 was     RMB 5,919, compared with RMB 6,600 in the fourth quarter of 2013, and RMB     5,695 in the first quarter of 2013.   oGross profit was $5.3 million in the first quarter of 2014 compared to     $12.6 million in the fourth quarter of 2013 and $8.8 million in the first     quarter of 2013. First quarter 2014 gross margin was 24.1%, compared with     22.4% in the fourth quarter of 2013 and 17.1% in the first quarter of     2013.   oSG&A expenses as a percentage of total revenue increased to 18.1%, from     9.1% in the fourth quarter of 2013 and 6.1% in the first quarter of 2013.   oOperating loss was $205 thousand in the first quarter of 2014 compared to     operating income of $6.0 million in the fourth quarter of 2013, and     operating income of $4.0 million in the first quarter of 2013.   oNet loss attributable to the Company in the first quarter of 2014 was $774     thousand, or $(0.02) per diluted share, compared to net income of $3.9     million, or $0.11 per diluted share, in the fourth quarter of 2013 and     $2.9 million, or $0.08 per diluted share, in the first quarter of 2013.  Mr. Pingji Lu, China Housing's Chairman, commented, "While the market environment was challenging in the first quarter, our revenue performance exceeded the mid-point of our revenue guidance by 38%. Four main projects contributed to the majority of our first quarter revenue along with $6.2 million in property management and construction revenue. We launched one new project in the first quarter, Puhua Phase Four."  "Overall market conditions remain uncertain. Sales of lower end units at our Ankang and Puhua Phase Four projects generally remain stable while sales at our higher end projects, such as Puhua Phase Two are not as strong as they could be as potential buyers in this category wait for greater clarity related to new government real estate policy before committing to new purchases. While Xi'an real estate market conditions remain soft,we believe in the long term strength of the housing market in and around the Xi'an region. Finally, we repurchased shares in the first quarter and intend to continue our share repurchase activity during the second quarter."  Total revenue in the first quarter of 2014 decreased 60.7% to $22.0 million from $56.1 million in the fourth quarter of 2013 and decreased 57.1% from $51.4 million in the first quarter of 2013. Other revenue in the first quarter of 2014 was $6.2 million, compared to $8.9 million in the fourth quarter of 2013 and $11.1 million in the first quarter of 2013.  In the first quarter of 2014, the majority of the Company's real estate revenue came from its Puhua Phase Two and Three projects, Park Plaza and Ankang projects. 2014 first quarter contract sales totaled $19.8 million compared with $31.0 million in the fourth quarter of 2013 and $82.4 million in the first quarter of 2013. Total gross floor area ("GFA") sales were 20,416 sq. meters during the first quarter of 2014, compared with 28,582 sq. meters in the fourth quarter of 2013 and 89,691 sq. meters in the first quarter of 2013. The Company's ASP in the first quarter of 2014 was RMB 5,919, compared with RMB 6,600 in the fourth quarter of 2013, and RMB 5,695 in the first quarter of 2013.  Gross profit for the three months ended March 31, 2014 was $5.4 million,representing a decrease of57.7% from $12.6 million in the fourth quarter of 2013 and a 39.4% decrease from $8.8 million in the first quarter of 2013. Gross profit margin for the three months ended March 31, 2014 was 24.1%, compared to 22.4% in the fourth quarter of 2013 and the 17.1% in the first quarter of 2013. The increase in gross profit margin was mainly due to an adjustment on the total estimated cost of Park Plaza, Puhua Phase Two and Three projects, of which the accumulated impact was recorded in the first and fourth quarter of 2013 and caused the lower gross margin of those periods. The Company did not make any revision on the total estimated cost during the first quarter of 2014, thus there was no impact on the gross profit margin. Additionally, the Company initiated a group purchase sale on its Puhua Phase Three project at a discounted selling price during the first quarter of 2013 which also reduced the gross margin during that period. The 24.1% gross profit margin during the first quarter of 2014 was within the Company's normal historic range.  SG&A expense was $4.0 million in the first quarter of 2014, compared with $5.1 million in the fourth quarter of 2013 and $3.2 million in the first quarter of 2013. SG&A expense as a percentage of total revenue was 18.1%, compared with 9.1% in the fourth quarter of 2014 and 6.1% in the first quarter of 2013. The increase from the first quarter of 2013 in SG&A expense was mainly due to the increase of salaries and advertising expenses.  Operating loss in the first quarter of 2014 was $205 thousand, compared to operating income of $205 thousand in the fourth quarter of 2013, and $4.0 million in the first quarter of 2013. The year-over-year decrease in operating income was mainly due to reduced sales revenue.  Net loss attributable to China Housing in the first quarter of 2014 was $774 thousand, or ($0.02) per diluted share. This performance compares with net income of $3.9 million, or $0.11 per diluted share, in the fourth quarter of 2013 and net income of $2.9 million, or $0.08 per diluted share, in the first quarter of 2013.  Sequential Quarterly Revenue Breakout Comparison  Project      Q1 2014                                             Q4 2013              Recognized Contract       GFA  ASP     Unsold  POC  Recognized   Contract GFA    ASP              Revenue    Sales          Sold         GFA          Revenue      Sales    Sold              ($)        ($)            (m2) (RMB)   (m2)         ($)          ($)      (m2)   (RMB) Projects Under Construction Park Plaza  4,984,679    3,937,986  2,811   8,549   53,806  87%  17,872,157 9,946,924  6,942  8,727 Phase One Puhua Phase 2,663,265    1,963,774  1,788   6,700   60,508  67%  11,454,315 6,111,757  5,511  6,754 Three Puhua Phase Two-East    1,872,393    1,919,787  1,515   7,731   93,982  73%  6,366,008  4,739,552  4,066  7,099 Region Ankang Phase       5,269,189    5,184,245  7,860   4,025   64,566  47%  9,317,653  6,145,128  9,374  3,992 One Puhua Four  N/A          6,043,688  6,013   6,133   N/A     N/A  N/A        N/A        N/A    N/A Projects Completed Puhua Phase 677,091      421,314    189     13,629  5,506   100% 170,343    1,354,140  954    8.641 One Puhua Phase                                                  Two-West Region&New  (56,642)     98,430     107     5.600   31,025      2,024,106  2,679,234  1,736  9,399 Coast Line                                                             100% JunJing III 396,809      236,812    133     10,844  906     100% -73,562    -          -      - JunJingII                                         518     100% -          -          -      - Phase One JunJing I   -            -          -       -       4,366   100% -          -          -      - Other       -            -          -       -                               -          -      - Projects Other       6,235,627                                            8,927,863 Income Total       22,042,411   19,806,036 20,416  5,919   315,183 -    56,058,883 30,976,735 28,583 6,600 Q-o-Q       (60.7%)      (36.1%)    (28.6%) (10.3%)              125.8%     66.9%      60.2%  3.6% Change  Total debt outstanding as of March 31, 2014 was $317.6 million compared with $300.7 million on December 31, 2013. Net debt outstanding (total debt less cash and restricted cash) as of March 31, 2014 was $191.0 million compared with $161.8 million on December 31, 2013. The Company's net debt as a percentage of total capital (net debt plus shareholders' equity) was 59.5 percent on March 31, 2014 and 54.1 percent on December 31, 2013.                             Q1 2014 Projects in Planning       UnsoldGFA First Pre-sales Scheduled                            (m^2) Golden Bay                 326,494    Q4 2014 Textile City               630,000    Q2 2016 Park Plaza- Phase II       60,057     Q3 2014 Ankang Project- Phase II   207,794    Q3 2014 Total projects in planning 1,224,345  Second Quarter 2014 Outlook  Total contract revenue for the second quarter 2014 is expected to reach $28 million to $32 million, compared with $59 million in the second quarter of 2013. The Company is reporting revenues, which are subject to percentage of completion alterations.  Conference Call Information  Management will host a conference call at 8:30 am ET on the same day, May 15, 2014. Listeners may access the call by dialing +1-913-312-1501. To listen to the live webcast of the event, please go to http://public.viavid.com/player/index.php?id=109283. Listeners may access the call replay, which will be available through May 22, 2014, by dialing +1-858-384-5517; passcode: 2553975  About China Housing & Land Development, Inc.  Based in Xi'an, the capital city of China's Shaanxi province, China Housing & Land Development, Inc., is a leading developer of residential and commercial properties in northwest China. China Housing has been engaged in land acquisition, development, and management, including the sales of residential and commercial real estate properties through its wholly-owned subsidiary in China, since 1992.  China Housing & Land Development is the first Chinese real estate development company traded on NASDAQ.The Company's news releases, project information, photographs, and more are available on the internet at www.chldinc.com.  Safe Harbor  This news release may contain forward-looking information about China Housing & Land Development, Inc. which is covered under the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts. These statements can be identified by the use of forward- looking terminology such as believe, expect, may, will, should, project, plan, seek, intend, or anticipate or the negative thereof or comparable terminology, and include discussions of strategy, and statements about industry trends and China Housing & Land Development's future performance, operations, and products.  Such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Actual performance results may vary significantly from expectations and projections. Further information regarding this and other risk factors are contained in China Housing's public filings with the U.S. Securities and Exchange Commission.  All information provided in this news release and in any attachments is as of the date of the release, and the companies do not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law.  China Housing contacts  Mr. Cangsang Huang Chief Financial Officer Tel: +86 29.8258.2648 in Xi'an Email: chuang@chldinc.com  Ms. Jing Lu Chief Operating Officer, Board Secretary, and Investor Relations Officer Tel: +86 29.8258.2639 in Xi'an Email: jinglu@chldinc.com / English and Chinese  Ms. Sandy Jin Assistant CFO Tel: +86 29.8258.2638 in Xi'an Email: jinq@chldinc.com / English and Chinese  Mr. Bill Zima, ICR Tel: +86 10 6583 7511 Email: William.Zima@icrinc.com  China Housing Investor Relations Department Tel: +1 646.308.1285    CHINA HOUSING & LAND DEVELOPMENT, INC. AND SUBSIDIARIES  Unaudited Interim Condensed Consolidated Balance Sheets  As of March 31, 2014 and December 31, 2013                                                   March 31,      December 31,                                                    2014           2013 ASSETS  Cash                                             $ 14,935,316   $ 21,320,071  Cash - restricted                                  111,640,172    117,534,900  Accounts receivable, net of allowance for  doubtful     accounts of $578,825 and $594,382,              40,941,976     41,158,998     respectively  Construction in excess of billing                  2,051,830      2,106,975  Other receivables, prepaid expenses and other      7,904,290      6,197,023  assets, net  Real estate held for development or sale           343,326,886    289,474,812  Property and equipment, net                        34,567,530     36,281,168  Advances to suppliers                              1,114,193      697,823  Deposits on land use rights                        27,507,078     59,155,165  Intangible asset, net                              28,736,931     42,453,473  Goodwill                                           1,918,405      1,969,964  Deferred financing costs                           765,257        1,142,715      Total assets                         $ 615,409,864  $ 619,493,087 LIABILITIES  Accounts payable                                 $ 42,182,920   $ 59,400,262  Advances from customers                            50,099,123     45,441,402  Accrued expenses                                   15,675,466     17,439,541  Income tax payable                                 23,331,748     24,534,095  Other taxes payable                                7,931,818      7,139,870  Other payables                                     14,362,353     12,755,824  Loans from employees                               30,265,105     25,759,453  Loans payable                                      287,309,110    274,917,332  Deferred tax liability                             14,400,496     14,782,118     Total liabilities                               485,558,139    482,169,897 SHAREHOLDERS' EQUITY  Common stock: $.001 par value, authorized  100,000,000 shares;     Issued 34,882,538 and 35,849,204,               34,882         35,849     respectively  Additional paid in capital                         51,480,460     51,347,620  Treasury stock                                     (318,915)      (2,400,288)  Statutory reserves                                 11,535,242     11,535,242  Retained earnings                                  45,523,830     48,696,878  Accumulated other comprehensive income             21,596,226     28,107,889     Total shareholders' equity                      129,851,725    137,323,190            Total liabilities and shareholders'    $ 615,409,864  $ 619,493,087            equity The accompanying notes are an integral part of these interim condensed consolidated financial statements.      CHINA HOUSING & LAND DEVELOPMENT, INC. AND SUBSIDIARIES  Unaudited Interim Condensed Consolidated Statements of Operations For The Three Months Ended March 31, 2014 and 2013                                     March 31, 2014          March 31, 2013 REVENUES     Real estate sales               $    15,806,784         $   40,291,817     Other revenue                        6,235,627              11,099,124 Total revenues                           22,042,411             51,390,941 COST OF REVENUES     Cost of real estate sales            12,716,886             33,086,100     Cost of other revenue                4,009,457              9,535,899 Total cost of revenues                   16,726,343             42,621,999 Gross margin                             5,316,068              8,768,942 OPERATING EXPENSES     Selling, general and                 3,989,482              3,158,003     administrative expenses     Stock-based compensation             132,840                97,537     Other expenses                       3,907                  59,982     Financing expense                    1,394,530              1,446,786 Total operating expenses                 5,520,759              4,762,308 Write off of property                    563,710                - (Loss)income before provision for        (768,401)              4,006,634 income taxes     Provision for income taxes           17,036                 1,198,003     Recovery of deferred income          (11,384)               (64,635)     taxes Provision for income taxes               5,652                  1,133,368 NET (LOSS) INCOME                   $    (774,053)          $   2,873,266 WEIGHTED AVERAGE SHARES OUTSTANDING     Basic                                34,518,158             35,086,599     Diluted                              34,518,158             35,086,599 NET (LOSS) INCOME PER SHARE     Basic                           $    (0.02)             $   0.08     Diluted                         $    (0.02)             $   0.08 The accompanying notes are an integral part of these interim condensed consolidated financial statements.    CHINA HOUSING & LAND DEVELOPMENT INC. AND SUBSIDIARIES  Unaudited Interim Condensed Consolidated Statements of Cash Flows  For The Three Months Ended March 31, 2014 and 2013                                                March 31,       March 31,                                                2014            2013 CASH FLOWS FROM OPERATING ACTIVITIES:   Net (loss) income                            $ (774,053)     $ 2,873,266   Adjustments to reconcile net income to cash provided    by (used in) operating activities:          Depreciation                            591,907         485,870          Stock-based compensation                132,840         97,537          Write off of property                   563,710         -          Amortization of intangible assets       12,610,339      55,367          Recovery of provision for deferred      (11,384)        (64,635)          income taxes       (Increase) decrease in assets:          Accounts receivable                     (876,377)       (7,320,730)          Construction in excess of billing       -               (657,272)          Other receivable, prepaid expenses      (1,735,046)     (4,699,079)          and other assets          Real estate held for development or     (62,583,224)    14,768,453          sale          Advance to suppliers                    (443,760)       4,306          Deposit on land use rights              30,665,151      -          Deferred finance costs                  188,146         40,127       Increase (decrease) in liabilities:          Accounts payable                        (15,956,843)    (10,714,367)          Advances from customers                 5,956,860       (3,058,201)          Accrued expense                         (1,344,586)     5,577,855          Other payables                          1,975,624       348,905          Income and other taxes payable          426,456         2,804,031            Net cash (used in) provided by        (30,614,240)    541,433            operating activities CASH FLOWS FROM INVESTING ACTIVITIES:   Purchase of property and equipment             (382,635)       (632,764)            Net cash used in investing            (382,635)       (632,764)            activities CASH FLOWS FROM FINANCING ACTIVITIES:   Change in restricted cash                      2,871,458       278,129   Loans from external parties                    24,648,464      42,985,007   Payments on loans payable                      (7,374,873)     (6,620,495)   Loans from or repayment to employees, net      5,277,131       4,913,176   Purchase of treasury stock                     (318,589)       -            Net cash provided by financing        25,103,591      41,555,817            activities (DECREASE)/INCREASE IN CASH                      (5,893,284)     41,464,486 Effects on foreign currency exchange             (491,471)       132,798 CASH, beginning of period                        21,320,071      6,121,448 CASH, end of period                            $ 14,935,316    $ 47,718,732 The accompanying notes are an integral part of these interim condensed consolidated financial statements.  SOURCE China Housing & Land Development, Inc.  Website: http://www.chldinc.com Website: http://public.viavid.com/player/index.php?id=109283  
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