Wowjoint Holdings (NASDAQ:BWOW)

BEIJING, April 18, 2012 /PRNewswire-Asia/ -- Wowjoint Holdings Limited ("Wowjoint," or the "Company") (Nasdaq: BWOW, BWOWU, BWOWW), China's innovative infrastructure solutions provider of customized heavy duty lifting and carrying machinery, today announced that it entered an agreement for Movable Scaffolding Systems in Malaysia. Wowjoint is also providing a business update on recent developments.

The Company entered an agreement to provide two Movable Scaffolding Systems ("MSS") for a project in Malaysia. The value of the agreement is approximately $2.6 million. Production began in April and delivery is expected to occur in September 2012. This is a new type of equipment for Wowjoint and it further expands its product range in construction machinery from providing not only machines for the precast arena, but now also non-prefabricated girder/beam bridge construction. The MSS is equipment that will initially be marketed for the Southeast Asian markets and we anticipate the demand for the equipment to be significant once the initial machine is deployed.

Wowjoint recently added new partners to enhance its sales force outreach in regions around the world, specifically in areas of Europe, South America and Southeast Asia. One of these partners will jointly market our handling machines, the Mobilift and Marine Hoist, in Europe and the Mediterranean regions. The Company has begun pursuing joint bids with this partner on port construction projects and hopes to enter the new field of port machinery soon.

In March 2012, Wowjoint's CEO led a sales and marketing team to participate in a conference and exhibition in Brazil. During that time, the Company met with a large number of companies in Brazil and Argentina. The trip provided the Company with a greater understanding of the Latin American markets, but also provided an introduction to Wowjoint and began discussions on future projects in the area.

Mr. Liu continued, "With the various new markets that Wowjoint is pursuing, we believe that we have a significant opportunity for growth in these vertical markets. Based on our knowledge of our industry, we believe that worldwide demand for machines such as the MSS, and the renewable energy sector machines could approach $100 million annually, thereby providing Wowjoint with potential customers within these segments. We have a strong team, including R&D, sales and marketing, to capitalize on these markets as well as other vertical markets and locations that we continue to pursue. With the addition of our R&D and manufacturing facilities that we announced in February 2012, we are excited about our future prospects."

Full Year Ended December 31, 2011

• Revenues for the full year ended December 31, 2011 were $24.4 million, a slight increase from the $24.1 million reported for 2010.
• The Company built and sold 12 machines during the year which represented $19.6 million, or 80% of total revenues.
• Technical service sales were $1.3 million, a decrease from the $5.1 million in FY 2010. Lease income for FY 2011, which began as a segment of revenue a year ago for the company, represented $3.5 million, or 14.4% of total revenues, an increase from $0.7 million in 2010.
• International based revenues accounted for approximately 26% of total sales.
• Gross profit for 2011 was $6.7 million, compared to gross profit of $6.0 million in the full year 2010, representing an 11% increase year over year. Gross margins increased to 27.3%, from 24.8% in the same period 2010. The 250 basis points gross margin increase was due to higher lease income and a higher margin product mix.
• Operating margin increased substantially to 8.6% compared to 2.6% in the prior year. During the year the Company entered into new markets and added staffing to enhance the Company's internal systems and control, yet the company was able to control costs and achieve an increase in operating profit.
• Net income was $1.2 million, or $0.15 per share based on 7.9 million weighted average shares outstanding, compared to net income of $0.4 million, or $0.06 per share based on 7.4 million weighted average shares outstanding for the full year 2010.

Operating expenses for 2011 were reduced to approximately $4.6 million, compared to $5.3 million in the same period of 2010. Selling expenses were flat year over year at $1.2 million. General and administrative expenses were $3.4 million and $4.2 million for the 2011 and 2010 periods, respectively, with the decrease due to the company's stringent focus on reducing costs.

"We are pleased with Wowjoint's progress during 2011. During the year we entered new vertical markets, new international locations and grew our sales force. We remain encouraged by the traction that we are achieving in these new markets and believe we will see the results over the next few years," stated Mr. Yabin Liu, Chairman and CEO of Wowjoint

2012 Guidance and Contract Backlog

Management issued revenue guidance for the first quarter of 2012 of approximately $1 to $2 million. The first quarter tends to be a slower quarter historically for the Company. Presently inChina, there has been a decrease in infrastructure spending, which has had an impact on projects the Company would be involved in. We anticipate this will change later in the year as spending on infrastructure returns. In addition, the Company is pursuing leasing, service and International contracts to subsidize the reduction in Chinese projects.

As of December 31, 2011, Wowjoint's backlog of signed contracts totaled approximately $16.3 million.

BEIJING, Feb. 17, 2012 /PRNewswire-Asia/ -- Wowjoint Holdings Limited ("Wowjoint," or the "Company") (Nasdaq: BWOW, BWOWU, BWOWW), China's innovative infrastructure solutions provider of customized heavy duty lifting and carrying machinery, today announced that it signed an agreement with the Zhenjiang City New District government which permits Wowjoint to establish a manufacturing and R&D facility in Zhenjiang City New District. Zhenjiang is located in Eastern China, about 2-3 hours northwest of Shanghai. Wowjoint established a new subsidiary for the property called Zhenjiang Wowjoint Heavy-duty Machinery Co. Ltd. ("Zhenjiang Wowjoint") following the agreement.

The new manufacturing facility under Zhenjiang Wowjoint will cover 200,000 square meters of land. Zhenjiang Wowjoint presently owns 48,000 square meters of the land and may purchase the remaining land in stages over the next couple of years. Construction will be split into two phases, with construction commencing in early 2012. Phase one has an estimated completion time of six months, which would be in late 2012. The new manufacturing facility will be focused on producing and providing maintenance services for Wowjoint's launch gantries, lifting equipment, railway transportation equipment and railway testing equipment.

In addition, Wowjoint established a new R&D center in Zhenjiang in conjunction with Beijing Jiaotong University's Yangtze River Delta R&D Transportation Institute in December 2011. Zhenjiang City New District government provided Wowjoint with 860 square meters of office building space at no cost to the Company. The new R&D center will concentrate on working with the new manufacturing facility, Zhenjiang Wowjoint, to supply enhanced equipment and services to our customers. It will specifically service customers around the Eastern China Yangtze River Delta area, Southern China and international market customers.

"Wowjoint hopes to expand our market share in China and internationally with our strategic development of the new manufacturing base and new R&D center in Zhenjiang," stated Mr. Yabin Liu, Chief Executive Officer of Wowjoint. "We believe it's in a beneficial location close to Shanghai and provides additional resources to capitalize on our international expansion plans."

Third Quarter 2011 Results

"Our gross margins remain strong and this quarter's increase was directly related to our diversification of our sales, specifically our international contracts, which provide a higher gross margin than our domestic contracts," commented Mr. Yabin Liu, Chairman and Chief Executive Officer of Wowjoint. "We continue to stay stringent on our spending, and in maintaining strong gross margins. During this quarter we were pleased to announce new leasing contracts, and the entry into the highway maintenance industry with our equipment for China's Ministry of Railway."

SecondQuarter Ended June 30, 2011

• Revenues for the Company's second quarter ended June 30, 2011 increased 228% to $8.4 million as compared to $2.6 million in the second quarter of 2010.
• Technical service sales were $0.3 million for the quarter, compared to $1.5 million in the same quarter last year. Lease revenue was $0.2 million for the second quarter 2011, which is a recent addition to Wowjoint's revenue stream and it will continue to be a focus for increased revenue due to its higher margins.
• International based revenues accounted for approximately 53% of total sales, an increase from 3% of total sales in the same period 2010.
• Gross profit increased substantially to $2.4 million from $0.6 million in the year ago period. Gross margins increased 570 basis points to 28.9% in the second quarter 2011 compared to 23.2% in the same period in 2010.
• Operating income increased to $1.5 million for the second quarter 2011 compared to a loss of $0.8 million for the second quarter 2010.
• Net income for the second quarter 2011 was $1.0 million, or $0.13 per share based on 7.9 million weighted average shares outstanding, compared to net loss of $0.4 million in same period 2010.

Six Months Ended June 30, 2011

• Revenues for the six month period ended June 30, 2011 increased 250% to $15.0 million as compared to $4.3 million for the six month period ended June 30, 2010.
• Technical service sales for the first six months of 2011 were $1.0 million compared to $1.6 million in the same period in 2010. Lease revenues for the six months ended June 30, 2011 were $0.5 million.
• International based revenues accounted for approximately 41% of total sales, a substantial increase from 3% of total sales in the same period 2010.
• Gross profit increased to $3.8 million from $0.9 million in the year ago six month period. Gross margins increased 510 basis points to 25.5% in the first six months of 2011 compared to 20.4% in the same period in 2010.
• Operating income for the six months ended June 30, 2011 increased to $1.9 million for compared to a loss for the same period in 2010.
• Net income for the first six months of 2011 was $1.8 million, or $0.22 per share based on 7.9 million weighted average shares outstanding, compared to net loss of $1.2 million in same period 2010

"Wowjoint continues to progress in reducing our accounts receivable and in expanding our sales. We've made significant headway in our International expansion efforts by adding people to our sales and marketing team and expect to see our International sales as a larger percentage of our sales revenue as the year's progress," stated Mr. Liu.

Business Updates 

Wowjoint continues to diversify its business and during the second quarter 2011, announced over $8 million in new lease agreements and deeper penetration into the China market by adding new customers. The Company is pursuing vertical markets such as highway and bridge maintenance, subway systems and clean tech power plants. These vertical markets will utilize Wowjoint's core competency of specialized engineering of large equipment. The Company is actively pursuing International contracts and has conducted outreach to numerous potential clients. During 2011, Wowjoint plans on attending conferences in the US and in other countries to enhance its visibility in the market.

"In recent months we've experienced a slight reduction in China's infrastructure spending, although projects still remain in the large government plan and the reduction is based on timing of those projects. To mitigate its impact, the Company has placed a concerted effort on International sales and in lease revenue. Wowjoint has signed $22.3 million in new contracts since the beginning of 2011, with a substantial percentage of those contracts being in either leasing, technical services or International sales," stated Mr. Liu. "A key competitive advantage remains our ability to produce custom-made equipment, which solves complex construction and logistical problems for our customers. We believe our determination and drive to expand our business into other countries and vertical markets will result in the growth Wowjoint is capable of."

Revenue Guidance and Contract Backlog

Management issued revenue guidance for the third quarter of 2011 of approximately $5 to $7 million. As of June 30, 2011, Wowjoint's backlog of signed contracts totaled approximately $22 million.

Previous Revenue Guidance was $8 to $10 million

BEIJING, July 22, 2011 /PRNewswire-Asia-FirstCall/ -- Wowjoint Holdings Limited ("Wowjoint," or the "Company") (Nasdaq: BWOW, BWOWU, BWOWW), China's innovative infrastructure solutions provider of customized heavy duty lifting and carrying machinery, today announced it has signed a new equipment contract for a marine hoist.

Shenzhen Land Investment & Development Center, a government control center, signed a contract with Wowjoint for approximately $400,000 to purchase a 50 ton marine hoist. The marine hoist will be used as a yacht hoist in the 2011 Shezhen Universiade. This represents the second industry that Wowjoint has been able to penetrate with its customized marine hoist and is a large market that can lead to future sales.

"This contract with Shenzhen Land Investment & Development Center represents a substantial opportunity for Wowjoint and we are extremely pleased about our entry into this market," Mr. Yabin Liu, Chief Executive Officer of Wowjoint stated. "In February 2011, we entered the yacht industry with the sale of our marine hoist to Sunbird Yacht Company. Entering an additional market with our marine hoist demonstrates our focus on diversifying our revenue streams as well as our ability to utilize our core competency of engineering high quality machines that provide a value to our customers. We believe we will be able capitalize on our entry into this market as well as penetrating the yacht and wind power industries that we entered earlier this year."

First Quarter Results:

• Revenues for the Company's first quarter ended March 31, 2011 increased 282% to $6.6 million as compared to $1.7 million in the first quarter of 2010.
• Technical service sales increased by 675% from the first quarter of 2010 to $0.6 million. These services, as well as lease revenue, continue to be a focus for Wowjoint as they provide a more stable source of cash flows and a higher margin compared to machinery sales.
• International based revenues accounted for approximately 25% of total sales, a substantial increase from 3% of total sales in the same period 2010.
• Gross profit increased to $1.4 million from $0.2 million in the year ago period. Gross margins increased 5 basis points to 21.3% in the first quarter 2011 compared to 16.3% in the same period in 2010.
• Operating income increased to $0.3 for the first quarter 2011 compared to a loss for the first quarter 2010.
• Net income for the first quarter 2011 was $0.3 million, or $0.04 per share based on 7.9 million weighted average shares outstanding, compared to net loss of $0.5 million in same period 2010.

"The first quarter revenue is a substantial increase from the first quarter 2010, due to continued infrastructure spending by the Chinese government, as well as our focus on diversifying our revenue stream through international sales, service and lease revenue. In addition, during the first quarter we expanded into two new vertical markets with sales to the luxury goods market providing hoists for Sunbird Yachts and the wind power industry with Tongliao Green," commented Mr. Yabin Liu, Chairman and Chief Executive Officer of Wowjoint. "Gross margins remain strong and will continue to improve as our technical services segment grows, which provides clearer visibility for our future revenue stream."

Management issued revenue guidance for the second quarter of 2011 of approximately $8 to $10 million. As of March 31, 2011, Wowjoint's backlog of signed contracts totaled approximately $25 million. As of May 19, 2011, the backlog of signed contracts has risen to $29 million.

Fourth Quarter Highlights:

• Revenues for the Company's fourth quarter ended December 31, 2010 increased 581% to $11.0 million as compared to $1.6 million in the fourth quarter of 2009.
• Gross profit increased substantially to $3.2 million from a loss of $4.5 million in the year ago period. Gross margins increased markedly to 28.8%, from the previous quarter 2010, due to a higher percentage of technical services revenue, which has a higher gross margin.  
• Operating margins increased to 14% for the fourth quarter 2010 compared to a loss for the fourth quarter 2009.
• Net income for the fourth quarter 2010 was $1.3 million, or $0.17 per share based on 7.9 million weighted average shares outstanding, compared to net loss of $5.3million in same period 2009.

"The fourth quarter orders and backlog benefited from a sharp rebound in demand as the Chinese government further increased spending on large scale infrastructure projects. The recently implemented Five Year Plan includes a significant allocation of government dollars for large infrastructure projects which is anticipated to provide additional demand through the balance of 2011.  During the fourth quarter, we signed numerous new contracts with notable customers, including $4.5 million in service and leasing contracts and $3.5 million internationally, which confirms our ability to further diversify our revenue base." stated Mr.Yabin Liu, Chairman and Chief Executive Officer of Wowjoint. "In general, gross margin has improved noticeably due to the increased importance of our technical services segment, which provides clearer visibility for our future revenue stream, helps us better serve our customers and increases customer loyalty."

Management issued revenue guidance for the first quarter of 2011 of approximately $6 to $7 million. As of December 31, 2010, Wowjoint's backlog of signed contracts totaled approximately $20 million, which remains consistent from the backlog at the end of the third quarter of 2010. As of March 24, 2011, the backlog of signed contracts has risen to $25 million.

• Revenue in the range of $10.0 - $12.0 million, an increase from the initial guidance of $9.2 - $9.5 million.
• Gross profit of $2.5 - $3.2 million 
• Net income in the range of $1.0 - $1.3 million 
• Earnings per share of $0.14 - $0.17 

Wow joint has continued to execute on its growth strategy by winning contracts with new and existing customers in China and securing International orders. Increased demand for the Company's products, supported by enhanced sales and marketing efforts, has enabled Wow joint to dramatically improve its financial results for the second half of 2010. Key additions to its sales force has been instrumental in expanding the pipeline of new business, which management believes will translate to further growth in 2011. Wow joint is well positioned to take advantage of the $1.1 trillion infrastructure spending that China has planned from 2009 to 2020, in addition to driving incremental growth through its International channels and through new vertical applications. .

BEIJING, Feb. 21, 2011 /PRNewswire-Asia/ -- Wowjoint Holdings Limited today announced it has signed $5 million in new equipment contracts.

The first contract totaling $4 million is with China Railway 16th Bureau's No. 5 Engineering Company, for a 900 ton tyre trolley and a 900 ton launching gantry. Both machines are being custom designed to pass through a tunnel, resulting in a narrower and lower machine that still possesses Wowjoint's traditional high functionality.  The machines will be utilized in the construction of the Shanghai-Kunming high-speed railway. This represents the 13th order we have received from China Railway in the past 12 months and the 41st high-speed railway contract we have won since we introduced these products.

"Wowjoint is pleased to receive this new order as we further extend our strong relationship with China Railway 16th Bureau. Our equipment offers a high level of special functionality needed to complete the project, while allowing ease of passage through the tunnels during the high-speed railway construction," Mr. Yabin Liu, Chief Executive Officer of Wowjoint remarked. "With a robust pipeline of new railway projects, we continue to see tremendous sales momentum and opportunities in China and abroad."

Sunbird Yacht Company ("Sunbird"), China's largest yacht manufacturer and the only publicly listed China-based yacht company, signed a $1 million contract with Wowjoint to purchase two 150 ton tyre marine hoists. The tyre marine hoist, a new machine developed and designed solely by Wowjoint, represents the first sale into the yacht industry and provides a significant competitive advantage in pursuing additional contracts within this growing niche market.  This contract represents the first sale of this product into the yacht industry.

Second-quarter Ended June 30, 2010:

• Revenues for the Company's second quarter ended June 30, 2010 were $2.6 million as compared to $1.7 million in the first quarter of 2010, and $8.4 million in the three month period ended June 30, 2009.

"he year-over-year decline in revenue is primarily attributable to a reduction in government spending beginning in late 2009 on large infrastructure projects, resulting in a significant reduction in new contracts being awarded for railway, highway and bridge projects. Government budgeting for large infrastructure projects has recently increased, which has in turn positively impacted Wowjoint's sales pipeline and backlog."

• For the three months ended June 30, 2010, the Company reported a net loss of $0.8 million, or $.10 per share based on 7.9 million weighted average shares outstanding, compared to net income of $1.7 million for the three months ending June 30, 2009.

  "Our financial results for the second quarter of 2010, while still disappointing, showed a slight increase over the first quarter of 2010," stated Mr. Yabin Liu, Chief Executive Officer of Wowjoint. "Our business continued to be impacted directly by government decisions and timing associated with major infrastructure purchases for new projects.  While the effects of this policy were reflected in our second quarter 2010 financial results, China's fiscal policy is becoming more accommodative again, which is resulting in an increase in government budgeting for large infrastructure projects and in the current flow of potential contract activity. As a result, our contract backlog grew and we expect to see a significant improvement in our financial performance in the second half of 2010.  It is important to note that management believes the recent short-term shift in government spending only resulted in a delay in these high-value infrastructure projects, and shall not have an effect on the long-term plans for these projects.  Furthermore, we continue to work on diversifying our revenue stream as shown by our substantial growth in technical services sales during the second quarter of this year."

    "Contract activity is improving and our sales and marketing team has made progress as we look for business opportunities both domestically and abroad," added Mr. Liu. Our recently announced sales contract with China Railway Group combined with the recently announced equipment lease and service agreements with China Railway Construction Company and China Railway Group bring the value of contracts announced since July 29th to approximately $11 million. Given the proprietary design of our equipment, our innovative engineering expertise and our market position, we expect to capitalize on long-term trends which benefit our business. To complement our growth and speed the sales cycle, we are investigating alternative business models, such as equipment leasing, which would enable us to capture additional share of customer expenditures on construction equipment."

 "Given the fact that the construction equipment business consists of large, long lead-time contracts subject to macro-economic factors, our business and our financial results are, by definition, difficult to predict and are extremely 'lumpy' in nature on a quarter to quarter basis.

Revenue Guidance and Contract Backlog

Management issued revenue guidance for Q3 2010 of approximately $8.0 million, as current backlog of signed contracts totals approximately $17.0 million, up from $13.1 million at the end of the first quarter 2010.