WEB NEWS Comments & Business Outlook
AND COMPREHENSIVE INCOME
FOR THE THREE MONTHS ENDED MARCH 31, 2012 AND 2011
(Currency expressed in United States Dollars (“US$”), except for number of shares)
(Unaudited)
Three months ended March 31,
2012
2011
Revenues, net
$ 3,818,908 $ 5,037,928
Cost of revenue (inclusive of depreciation)
(2,737,254 ) (3,505,777 )
Gross profit
1,081,654 1,532,151
Operating expenses:
Sales and marketing
(190,663 ) (295,797 )
General and administrative
(163,369 ) (247,494 )
Total operating expenses
(354,032 ) (543,291 )
Income from operations
727,622 988,860
Other income (expense):
Interest income
1,024 314
Interest expense
(187,400 ) (82,027 )
Income before income taxes
541,246 907,147
Income tax expense
(139,891 ) (256,664 )
NET INCOME
$ 401,355 $ 650,483
Other comprehensive income:
- Foreign currency translation gain
156,116 253,767
COMPREHENSIVE INCOME
$ 557,471 $ 904,250
Net income per share – Basic
$ 0.06 $ 0.09
Net income per share – Diluted
$ 0.06 $ 0.09
Weighted average common share outstanding – Basic
6,866,122 6,866,122
Weighted average common share outstanding – Diluted
6,866,122 6,866,122
Comments & Business Outlook
The following table sets forth certain consolidated statement of operating data for the periods indicated:
Years ended December 31,
2011
2010
Revenues, net
$ 19,007,639 $ 26,828,833
Cost of revenue (inclusive of depreciation)
(13,346,303 ) (16,681,992 )
Gross profit
5,661,336 10,146,841
Operating expenses:
Sales and marketing
(958,122 ) (1,245,246 )
Professional and consulting fee
(127,080 ) (331,434 )
General and administrative
(537,570 ) (804,237 )
Total operating expenses
(1,622,772 ) (2,380,917 )
Income from operations
4,038,564 7,765,924
Other income (expense):
Interest income
12,464 2,471
Interest expense
(502,359 ) (1,266,716 )
Loss on disposal of plant and equipment
(1,543 ) (1,425 )
Income before income taxes
3,547,126 6,500,254
Income tax expense
(874,341 ) (1,993,328 )
NET INCOME
$ 2,672,785 $ 4,506,926
Other comprehensive income:
- Foreign currency translation gain
1,679,684 1,246,720
COMPREHENSIVE INCOME
$ 4,352,469 $ 5,753,646
Net income per share – Basic
$ 0.39 $ 0.66
Net income per share – Diluted
$ 0.39 $ 0.66
Weighted average common share outstanding – Basic
6,866,122 6,866,122
Weighted average common share outstanding – Diluted
6,866,122 6,866,122
GeoTeam ® Note : 2011 vs. 2010 Fourth quarter adjusted EPS was $0.07 vs. $0.22.
CFO Trail
Effective as of November 1, 2011, Tai Chim Lau, and Chak Ming Li resigned as directors of Décor Products International, Inc. (“we,” “us,” “our”) and
Wai Fai Law resigned as our chief financial officer . The resignation of each of these individuals was not the result of any disagreement with our company, known to an executive officer of the Company, on any matter relating to the company’s operation, policies (including accounting or financial policies) or practices.
Comments & Business Outlook
Nine months ended September 30,
2011
2010
2011
2010
Revenues, net
$ 4,375,633 $ 6,824,543 $ 15,219,691 $ 19,704,867
Cost of revenue (inclusive of depreciation)
(3,125,362 ) (4,219,836 ) (10,428,645 ) (11,843,787 )
Gross profit
1,250,271 2,604,707 4,791,046 7,861,080
Operating expenses:
Sales and marketing
(306,665 ) (311,541 ) (831,423 ) (917,570 )
General and administrative
(259,213 ) (295,957 ) (729,772 ) (840,278 )
Total operating expenses
(565,878 ) (607,498 ) (1,561,195 ) (1,757,848 )
Income from operations
684,393 1,997,209 3,229,851 6,103,232
Other income (expense):
Interest income
10,864 664 11,970 2,069
Interest expense
(124,985 ) (327,948 ) (323,270 ) (985,749 )
Income before income taxes
570,272 1,669,925 2,918,551 5,119,552
Income tax expense
(147,991 ) (547,428 ) (779,763 ) (1,611,183 )
NET INCOME
$ 422,281 $ 1,122,497 $ 2,138,788 $ 3,508,369
Other comprehensive income:
- Foreign currency translation gain
411,932 634,219 1,350,794 790,227
COMPREHENSIVE INCOME
$ 834,213 $ 1,756,716 $ 3,489,582 $ 4,298,596
Net income per share – Basic
$ 0.06 $ 0.16 $ 0.31 $ 0.51
Net income per share – Diluted
$ 0.06 $ 0.14 $ 0.31 $ 0.44
Weighted average common share outstanding – Basic
6,866,122 6,866,122 6,866,122 6,866,122
Weighted average common share outstanding – Diluted
6,866,122 7,914,435 6,866,122 7,914,435
In 2011 and beyond, after the commencement of our new production line for laminated boards which is expected to be completed in the first quarter of 2012, we expect that our net revenues will grow steadily due to our core production shift from the decor paper to laminated board, which we expect to generate higher sales revenues and profits.
Comments & Business Outlook
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2011 AND 2010
(Currency expressed in United States Dollars (“US$”), except for number of shares)
(Unaudited)
Three months ended June 30,
Six months ended June 30,
2011
2010
2011
2010
Revenues, net
$ 5,806,130 $ 7,611,445 $ 10,844,058 $ 12,880,324
Cost of revenue (inclusive of depreciation)
(3,797,506 ) (4,442,311 ) (7,303,283 ) (7,623,951 )
Gross profit
2,008,624 3,169,134 3,540,775 5,256,373
Operating expenses:
Sales and marketing
(228,961 ) (321,815 ) (524,758 ) (606,029 )
General and administrative
(223,065 ) (267,481 ) (470,559 ) (544,321 )
Total operating expenses
(452,026 ) (589,296 ) (995,317 ) (1,150,350 )
Income from operations
1,556,598 2,579,838 2,545,458 4,106,023
Other income (expense):
Interest income
792 734 1,106 1,405
Interest expense
(116,258 ) (330,417 ) (198,285 ) (657,801 )
Income before income taxes
1,441,132 2,250,155 2,348,279 3,449,627
Income tax expense
(375,108 ) (670,864 ) (631,772 ) (1,063,755 )
NET INCOME
1,066,024 1,579,291 $ 1,716,507 $ 2,385,872
Other comprehensive income:
- Foreign currency translation gain
685,095 7,444 938,862 156,008
COMPREHENSIVE INCOME
$ 1,751,119 $ 1,586,735 $ 2,655,369 $ 2,541,880
Net income per share – Basic
$ 0.16 $ 0.23 $ 0.25 $ 0.35
Net income per share – Diluted
$ 0.13 $ 0.20 $ 0.22 $ 0.30
Weighted average common share outstanding – Basic
6,866,122 6,866,122 6,866,122 6,866,122
Weighted average common share outstanding – Diluted
7,914,455 7,914,455 7,914,455 7,914,455
Liquidity Requirements
We project that we will need additional capital to fund operations over the next 6 months. We anticipate we will need an additional $2,000,000 in 2011.
