China Infrastructure (OTC BB:CHNC)

GeoProfile
Overview
GeoResearch
Message Board
Alerts Log
GeoWire Log
Third party data
Quote
Level II
Historical Prices
Options
Profile
Financials
Charts
News
Filings
Insiders

Tuesday, January 12, 2010

As a condition to a financing deal consummated on October 16, 2009 CHNC agreed to issue shares to certain investors if the following net income targets are not met:

Fiscal Yr. end in May	2009 Actual	% Change	2010 Target	% Change	2011 Target
Net Income	$10.9 M	28.4%	$14.0 M	28.6%	$18.0 M
Tax Adjusted Net Income ^a	$8.2M	28.0%	$10.5 M	28.6%	$13.5 M
Implied EPS ^b	$1.31	-27.5%	$0.95	28.4%	$1.22
Diluted Shares Used in EPS Calculation	1.4 M ^c	692.9%	11.1 M	00.0%	11.1 M

Sources: SEC 10K Filing (For the quarterly period ended May 2009)
SEC 8K Filing ( October 20, 2009)

^a China Infra Construction has not been paying any taxes. Thus, we have assumed that its net income targets are not taxed. We calculated tax adjusted net income figures using a tax rate of 25%.

^b The GeoTeam calculated implied EPS figures using 11.1 million diluted shares and assumes net income targets will be met. We did this only as a frame of reference as the figures do not take into account the possibility of any future dilutive events.

^c The company affected a 1 for 10 reverse split and later consummated a financing transaction that resulted in a significant increase in the amount of shares outstanding.

Note: The GeoTeam® is still attempting to verify the data in this research note.

Permalink