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

China Housing & Land Development Inc. Announces Second Quarter 2014 Financial                                    Results  PR Newswire  XI'AN, China, Aug. 14, 2014  XI'AN, China, Aug. 14, 2014 /PRNewswire/ -- China Housing & Land Development, Inc. ("China Housing" or the "Company"; Nasdaq: CHLN) today announced its financial results for the quarter ended June 30, 2014.  Highlights for Q2 2014:    oTotal revenue in the second quarter of 2014 was $44.1 million compared to     $22.0 million in the first quarter of 2014 and $57.8 million in the second     quarter of 2013.   oTotal gross floor area ("GFA") sales were 30,408 sq. meters during the     second quarter of 2014, compared with 20,416 sq. meters in the first     quarter of 2014 and 48,439 sq. meters in the second quarter of 2013.   oAverage residential selling price ("ASP") in the second quarter of 2014     was RMB 6,493, compared with RMB 5,919 in the first quarter of 2014, and     RMB 7,499 in the second quarter of 2013.   oGross profit was $(816,509) in the second quarter of 2014 compared to $5.3     million in the first quarter of 2014 and $17.6 million in the second     quarter of 2013. Second quarter 2014 gross margin was (-1.9)%, compared     with 24.1% in the first quarter of 2014 and 30.4% in the second quarter of     2013.   oSG&A expenses as a percentage of total revenue was 8.8%, from 18.1% in the     first quarter of 2014 and 8.5% in the second quarter of 2013.   oOperating loss was $6.6 million in the second quarter of 2014 compared to     operating loss of $205 thousand in the first quarter of 2014, and     operating income of $8.5 million in the second quarter of 2013.   oNet loss attributable to the Company in the second quarter of 2014 was     $6.8 million, or $(0.20) per diluted share, compared to a net loss of $774     thousand, or $(0.02) per diluted share, in the first quarter of 2014 and     net income of $5.9 million, or $0.17 per diluted share, in the second     quarter of 2013.  Mr. Pingji Lu, China Housing's Chairman, commented, "While our second quarter contract sales came within the high end of projections, our profitability was impacted by revenue and cost adjustments at three of our projects as well as an impairment charge. Five projects contributed to the majority of our sales in the second quarter, led by our Park Plaza project. We also began to recognize revenues from our Puhua Phase IV project."  "On a macro level, China's real estate market environment is slowing with both sales and ASP's on the decline. For the remainder of this year, we expect market conditions to remain challenging. In an effort to strengthen sales, we are implementing new incentives, including lowering down payment requirements for home buyers."  "As we look at the second half of the year, we will concentrate on reducing our unit inventory and driving pre-sales at our Golden Bay and Puhua Phase IV projects. We have also delayed the pre-sales start dates of our Park Plaza Phase II and Ankang Project Phase II projects from the third quarter of this year to 2015 in an effort to reduce expenses and conserve our balance sheet until market conditions improve. Finally, we repurchased 131,600 shares totaling $0.3 million in the second quarter."  Total revenue in the second quarter of 2014 increased 99.9% to $44.1 million from $22.0 million in the first quarter of 2014 and decreased 23.7% from $57.8 million in the second quarter of 2013. Other revenue in the second quarter of 2014 was $3.3 million, compared to $6.2 million in the first quarter of 2014 and $7.0 million in the second quarter of 2013.  In the second quarter of 2014, the majority of the Company's real estate revenue came from its Park Plaza, Ankang, Puhua Phase Two and Three projects. Second quarter of 2014 contract sales totaled $31.7 million compared with $19.8 million in the first quarter of 2014 and $59.0 million in the second quarter of 2013. Total gross floor area ("GFA") sales were 30,408 sq. meters during the second quarter of 2014, compared with 20,416 sq. meters in the first quarter of 2014 and 48,439 sq. meters in the second quarter of 2013. The Company's ASP in the second quarter of 2014 was RMB 6,493, compared with RMB 5,919 in the first quarter of 2014, and RMB 7,499 in the second quarter of 2013.  Gross profit for the three months ended June 30, 2014 was $(816,509),from $5.3 million in the first quarter of 2014 and $17.6 million in the second quarter of 2013. Gross profit margin for the three months ended June 30, 2014 was (1.9)%, compared to 24.1% in the first quarter of 2014 and the 30.4% in the second quarter of 2013. The decrease of gross profit margin in the second quarter of 2014 is due to the adjustment of the total estimated revenue and cost of the Company's Puhua Phase II, Puhua Phase III and Park Plaza Phase I projects as well as a $4.4 million impairment charge related to the Park Plaza Phase I project.  SG&A expense was $3.9 million in the second quarter of 2014, compared to $4.0 million in the first quarter of 2014 and $4.9 million in the second quarter of 2013. SG&A expense as a percentage of total revenue was 8.8%, compared with 18.1% in the first quarter of 2014 and 8.5% in the second quarter of 2013. The decrease in SG&A expense was mainly due to decreased advertising expenses during the second quarter of 2014.  Operating loss in the second quarter of 2014 was $6.6 million, compared to operating loss of $205 thousand in the first quarter of 2014, and operating income of $8.5 million in the second quarter of 2013. The year-over-year decrease was mainly due to reduced sales revenue and increased cost of sales.  Net loss attributable to China Housing in the second quarter of 2014 was $6.8 million, or ($0.20) per diluted share. This performance compares with net loss of $(774) thousand million, or $(0.02) per diluted share, in the first quarter of 2014 and net income of $5.9 million, or $0.17 per diluted share, in the second quarter of 2013.  Sequential Quarterly Revenue Breakout Comparison  Project          Q2 2014                                            Q1 2014                  Recognized Contract      GFA  ASP    Unsold  POC   Recognized   Contract GFA Sold  ASP                  Revenue    Sales         Sold        GFA           Revenue      Sales                  ($)        ($)           (m2) (RMB)  (m2)          ($)          ($)      (m2)      (RMB) Projects Under Construction Park Plaza      15,503,089   12,092,922 9,117  8,265  44,689  94.5% 4,984,679  3,937,986  2,811   8,549 Phase One Puhua Phase     6,472,271    1,382,502  1,412  6,101  59,096  77.4% 2,663,265  1,963,774  1,788   6,700 Three Puhua Phase     6,890,399    5,969,853  4,875  7,631  89,107  78.7% 1,872,393  1,919,787  1,515   7,731 Two-East Region Ankang Phase    7,386,849    4,972,520  7,596  4,079  56,970  56.1% 5,269,189  5,184,245  7,860   4,025 One Puhua Four      3,485,109    6,192,960  6,323  6,102  135,439 24.9% N/A        6,043,688  6,013   6,133 Projects Completed PuhuaPhaseOne (284,182)    (284,182)  -      -      5,506   100%  677,091    421,314    189     13,629 Puhua Phase                                                    Two-West Region&New      616,066      616,066    566    6,780  30,459       (56,642)   98,430     107     5.600 Coast Line                                                               100%                                                                JunJing III     309,952      309,952    259    7,445  647           396,809    236,812    133     10,844                                                               100%                                                                JunJing I       433,310      433,310    259    10,407 4,107         -          -          -       -                                                               100% Other Income    3,254,400                                           6,235,627 Total           44,067,263   31,685,903 30,408 6,493                22,042,411 19,806,036 20,416  5,919 Q-o-Q Change    99.9%        60.0%      48.9%  9.7%                 (60.7%)    (36.1%)    (28.6%) (10.3%)  Total debt outstanding as of June 30, 2014 was $327.9 million compared with $300.7 million on December 31, 2013. Net debt outstanding (total debt less cash and restricted cash) as of June 30, 2014 was $208.6 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 62.7 percent on June 30, 2014 and 54.1 percent on December 31, 2013.                             Q2 2014                                      First                            Unsold Projects in Planning                 Pre-sales                            GFA                                      Scheduled                            (m^2) Golden Bay                 326,494   Q4 2014 Textile City               630,000   Q2 2016 Park Plaza- Phase II       60,057    Q3 2015 Ankang Project- Phase II   207,794   Q1 2015 Total projects in planning 1,224,345  Third Quarter 2014 Outlook  Total contract sales for the third quarter 2014 are expected to be in the range of $22.5 million to $25.7 million, compared with $18.6 million in the third 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 7:30 am ET on August 14, 2014. Listeners may access the call by dialing +1-913-312-1301. To listen to the live webcast of the event, please go to http://public.viavid.com/player/index.php?id=110631. Listeners may access the call replay, which will be available through August 21, 2014, by dialing +1-858-384-5517; passcode: 2120628.  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 +86 29.8258.2639 in Xi'an jinglu@chldinc.com / English and Chinese  Mr. Bill Zima, ICR +86 10 6583 7511 William.Zima@icrinc.com  China Housing Investor Relations Department +1 646.308.1285  CHINA HOUSING & LAND DEVELOPMENT, INC. AND SUBSIDIARIES  Unaudited Interim Condensed Consolidated Balance Sheets  As of June 30, 2014 and December 31, 2013                                                    June 30,       December 31,                                                   2014           2013 ASSETS  Cash                                            $ 7,457,666    $ 21,320,071  Cash - restricted                                 111,932,658    117,534,900  Short-term investment                             21,537,169     -  Accounts receivable, net of allowance for  doubtful      accounts of $580,020 and $594,382,            39,075,926     41,158,998      respectively  Construction in excess of billing                 2,056,063      2,106,975  Other receivables, prepaid expenses and other     8,878,046      6,197,023  assets, net  Real estate held for development or sale          356,226,571    289,474,812  Property and equipment, net                       42,075,148     36,281,168  Advances to suppliers                             1,579,662      697,823  Deposits on land use rights                       16,280,063     59,155,165  Intangible asset, net                             23,464,677     42,453,473  Goodwill                                          1,922,363      1,969,964  Deferred financing costs                          724,978        1,142,715      Total assets                                $ 633,210,990  $ 619,493,087 LIABILITIES  Accounts payable                                $ 58,336,793   $ 59,400,262  Advances from customers                           44,010,242     45,441,402  Accrued expenses                                  16,544,275     17,439,541  Income tax payable                                23,310,900     24,534,095  Other taxes payable                               9,751,086      7,139,870  Other payables                                    14,633,114     12,755,824  Loans from employees                              30,809,108     25,759,453  Loans payable                                     297,137,495    274,917,332  Deferred tax liability                            14,390,811     14,782,118      Total liabilities                             508,923,824    482,169,897 SHAREHOLDERS' EQUITY  Common stock: $.001 par value, authorized  100,000,000 shares; Issued 34,848,158 and  35,849,204, respectively                                                    34,848         35,849  Additional paid in capital                        52,483,510     51,347,620  Treasury stock                                    (115,759)      (2,400,288)  Statutory reserves                                11,535,242     11,535,242  Retained earnings                                 38,239,701     48,696,878  Accumulated other comprehensive income            22,109,624     28,107,889      Total shareholders' equity                    124,287,166    137,323,190      Total liabilities and                   $ 633,210,990  $ 619,493,087      shareholders' 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 and Six Months Ended June 30, 2014 and 2013                          3 Months       3 Months      6 Months       6 Months                        June 30,       June 30,      June 30,       June 30,                        2014           2013          2014           2013 REVENUES Real estate sales      $ 40,812,863   $ 50,757,630  $ 56,619,647   $ 91,049,447 Other revenue            3,254,400      6,996,473     9,490,027      18,095,597 Total revenues           44,067,263     57,754,103    66,109,674     109,145,044 COST OF SALES Cost of real estate      43,491,234     35,950,062    56,208,120     69,036,162 sales Cost of other revenue    1,392,538      4,232,921     5,401,995      13,768,820 Total cost of            44,883,772     40,182,983    61,610,115     82,804,982 revenues Gross margin             (816,509)      17,571,120    4,499,559      26,340,062 OPERATING EXPENSES Selling, general, and administrative           3,876,829      4,901,936     7,866,311      8,059,940 expenses Stock-based              1,003,464      1,006,736     1,136,304      1,104,273 compensation Otherexpenses           10,113         390,567       14,020         450,550 Financing expense        939,852        2,807,094     2,334,382      4,253,880 Total operating          5,830,258      9,106,333     11,351,017     13,868,643 expenses Writeoffofproperty    -                            563,710 Loss before provisionforincome     (6,646,767)    8,464,787     (7,415,168)    12,471,419 taxes                           Provision for current income taxes                           2,660,911     145,458        3,858,913                           128,422 Recovery of provision     for deferred taxes                      (50,013 )     (22,532)       (114,648 )                          (11,148) Provisionforincome     117,274        2,610,898     122,926        3,744,265 taxes NET (LOSS) INCOME      $ (6,764,041)  $ 5,853,889   $ (7,538,094)  $ 8,727,154 WEIGHTED AVERAGE SHARES OUTSTANDING Basic                    34,497,920     35,086,599    34,560,976     35,086,599 Diluted                  34,497,920     35,244,724    34,560,976     35,166,098 NET (LOSS) INCOME PER SHARE Basic                  $ (0.20)       $ 0.17        $ (0.22)       $ 0.25 Diluted                $ (0.20)       $ 0.17        $ (0.22)       $ 0.25 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 Comprehensive (Loss) Income  For The Three and Six Months Ended June 30, 2014 and 2013                                      3 Months        3 Months      6 Months         6 Months                                    June 30,        June 30,      June 30,         June 30,                                    2014            2013          2014             2013 NET INCOME (LOSS)                  $ (6,764,041)   $ 5,853,889   $ (7,538,094)    $ 8,727,154 OTHERCOMPREHENSIVEINCOME(LOSS) Gain (Loss) on foreign exchange     513,397         2,691,556     (5,998,266)      3,419,601 COMPREHENSIVE (LOSS) INCOME        $ (6,250,643)   $ 8,545,445   $ (13,536,359)   $ 12,146,755 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 Six Months Ended June 30, 2014 and 2013                                                 June 30,        June 30,                                                2014            2013 CASH FLOWS FROM OPERATING ACTIVITIES:  Net (loss) income                            $ (7,538,094)   $ 8,727,154  Adjustments to reconcile net income to cash provided by  (used in) operating activities:          Depreciation                           1,194,943       1,307,424          Stock-based compensation               1,136,304       1,104,273          Loss on disposal of property and       563,710         -          equipment          Amortization of deferred financing     -               40,071          costs          Amortization of intangible assets      17,885,532      111,356          Recovery of provision for deferred     (22,532)        (114,648 )          income taxes      (Increase) decrease in assets:          Accounts receivable                    1,065,542       (20,188,803 )          Construction in excess of billing      -               559,202          Other receivable, prepaid expenses     (2,712,898)     (1,019,295)          and other assets          Real estate held for development or    (74,720,712)    12,438,798          sale          Advance to suppliers                   (905,607)       921,102          Deposit on land use rights             41,899,123      -          Deferred finance costs                 229,850         -      Increase (decrease) in liabilities:          Accounts payable                       39,088          (3,206,184 )          Advances from customers                (208,062)       (3,842,509 )          Accrued expense and interests          (510,917)       (5,140,839 )          Other payables                         2,215,782       1,132,342          Income and other taxes payable         2,177,039       5,464,411                Net cash used in operating       (18,208,909)    (1,706,145 )                activities CASH FLOWS FROM INVESTING ACTIVITIES:  Purchase of property and equipment             (8,387,891)     (1,310,211 )  Purchase of short-term investment              (21,537,169)    -                Net cash used in investing       (29,925,060)    (1,310,211 )                activities CASH FLOWS FROM FINANCING ACTIVITIES:  Change in restricted cash                      2,809,595       7,297  Loans from banks                               38,586,481      89,372,766  Loans from external parties                    10,006,351      42,985,007  Payments on loans payable                      (21,818,551)    (30,019,910 )  Loans from or repayment to employees, net      5,756,562       (5,328,304 )  Purchase of treasury stock                     (635,970)       -                Net cash provided by             34,704,468      97,016,856                financing activities INCREASE IN CASH                                (13,429,501)    94,000,500 Effects on foreign currency exchange            (432,904)       838,852 CASH, beginning of period                       21,320,071      6,121,448 CASH, end of period                           $ 7,457,666     $ 100,960,800 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  
Press spacebar to pause and continue. Press esc to stop.