CASMED (CASM) to Announce First Quarter 2012 Financial Results and Hold Conference Call on May 8, 2012
BRANFORD, Conn., April 30, 2012 (GLOBE NEWSWIRE) — CAS Medical Systems, Inc. (Nasdaq:CASM) (CASMED) a leader in medical devices for non-invasive patient monitoring, today announced that it will report its financial results for the first quarter of 2012 on Tuesday, May 8th prior to the market's opening. Management will host a conference call to discuss these results and answer questions at 10:00 a.m. (ET) that day.
Conference call dial-in information is as follows:
U.S. callers: (866) 239-5859
International callers: (702) 495-1913
Individuals interested in listening to the live conference call via the Internet may do so by logging on to the Company's website, www.casmed.com.
A telephone replay will be available from 11:00 a.m. (ET) on May 8, 2012, through 11:59 p.m. (ET) on May 15, 2012. Replay dial-in information is as follows:
Conference ID number (U.S. and international): 76917538
The replay will also be available at www.casmed.com.
About CASMED® – Monitoring What's Vital
CASMED is a leading developer and manufacturer of medical devices for non-invasive patient monitoring. The Company's FORE-SIGHT Absolute Cerebral Oximeter is the only cerebral oximeter available with FDA clearance for non-invasive, continuous measurement of absolute cerebral tissue oxygen saturation for all patients, regardless of age or weight. Direct monitoring of tissue oxygenation provides a unique and powerful tool to alert clinicians to otherwise unrecognized and dangerously low levels of oxygenation of the brain and other tissues thereby allowing them to intervene appropriately in the care of their patients. In addition to FORE-SIGHT Oximeters and accessories, the Company provides a line of bedside patient vital signs monitoring products, proprietary non-invasive blood pressure monitoring solutions for OEM use, neonatal intensive care supplies, and service. CASMED products are designed to meet the needs of a full spectrum of patient populations worldwide, ranging from adults to pediatrics and neonates.
For further information regarding CASMED, visit the Company's website at www.casmed.com.
CONTACT: Company Contacts
CAS Medical Systems, Inc.
Jeffery Baird
ir@casmed.com
Kim Sutton Golodetz (kgolodetz@lhai.com)
Bruce Voss (bvoss@lhai.com)
@LHA_IR_PR
Monday, April 30th, 2012 Uncategorized Comments Off on CASMED (CASM) to Announce First Quarter 2012 Financial Results and Hold Conference Call on May 8, 2012
ClearSign Combustion (CLIR) Announces Completion of Initial Public Offering of Common Stock
SEATTLE, WA — (Marketwire) — 04/30/12 — ClearSign Combustion Corporation (NASDAQ: CLIR) today announced the completion of its previously announced public offering of 3,000,000 shares of its common stock. Gross proceeds to the Company of the public offering are $12 million.
MDB Capital Group LLC acted as the underwriter for the offering.
The securities described above were sold by the Company pursuant to a registration statement previously filed and declared effective by the Securities and Exchange Commission. This press release does not constitute an offer to sell or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Copies of the final prospectus relating to this offering may be obtained from MDB Capital Group LLC, 401 Wilshire Boulevard, Suite 1020, Santa Monica CA 90401, (310) 526-5000.
About ClearSign Combustion Corporation
ClearSign Combustion Corporation designs and develops technologies that aim to improve key performance characteristics of combustion systems including energy efficiency, emissions control, fuel flexibility and overall cost effectiveness. Our Electrodynamic Combustion Control™ (ECC™) platform technology improves control of flame shape and heat transfer and optimizes the complex chemical reactions that occur during combustion in order to minimize harmful emissions. For more information about the Company, please visit www.clearsigncombustion.com
About MDB Capital Group
MDB Capital Group LLC is an investment banking and institutional research firm focused exclusively on companies possessing or seeking to develop market changing, disruptive technologies and intellectual property. For more information on MDB Capital Group, please visit www.mdb.com
Cautionary note on forward-looking statements
This press release includes forward-looking information and statements. Except for historical information contained in this release, statements in this release may constitute forward-looking statements regarding our assumptions, projections, expectations, targets, intentions or beliefs about future events that are based on management's belief, as well as assumptions made by, and information currently available to, management. While we believe that our expectations are based upon reasonable assumptions, there can be no assurances that our goals and strategy will be realized. Numerous factors, including risks and uncertainties, may affect our actual results and may cause results to differ materially from those expressed in forward-looking statements made by us or on our behalf. Some of these factors include the acceptance of existing and future products, the impact of competitive products and pricing, general business and economic conditions, and other factors detailed in our Annual Report on Form 10-K and other periodic reports filed with the SEC. We specifically disclaim any obligation to update or revise any forward-looking statement whether as a result of new information, future developments or otherwise.
John McFarland
john@clearsigncombustion.com
Monday, April 30th, 2012 Uncategorized Comments Off on ClearSign Combustion (CLIR) Announces Completion of Initial Public Offering of Common Stock
Cleantech Solutions (CLNT) Receives $1.7 Million Order for Airflow Dyeing Machines
WUXI, China, April 30, 2012 /PRNewswire-Asia-FirstCall/ — Cleantech Solutions International, Inc. ("Cleantech Solutions" or "the Company") (NASDAQ: CLNT), a manufacturer of metal components and assemblies, primarily used in the wind power, solar and other clean technology industries, today announced that the Company has received a new purchase order from Zhejiang Gelinlan Dyeing Limited ("Zhejiang Gelinlan"), the largest village-level enterprise group in Zhejiang, to supply its energy-efficient airflow dyeing machines for an aggregate amount of RMB10.4 million (approximately $1.7 million).
Pursuant to the purchase order, the Company is scheduled to deliver 15 units of its energy-efficient airflow dyeing machines to Zhejiang Gelinlan by the end of May 2012. The Company has received an advance payment of RMB3.1 million (approximately $0.5 million). The Company's airflow dyeing machines use air flow as opposed to water in the traditional dyeing process, which the Company believes results in reduced input costs, fewer wrinkles, less damage to the textile, and reduced emissions.
"We are encouraged by the positive market feedback and receipt of an order from a new customer for our energy-efficient airflow dyeing machines," said Mr. Jianhua Wu, Chairman and CEO of Cleantech Solutions. "We believe these new orders are mainly driven by growth in China's textile industry and increasing willingness of our customer to invest in new equipment designed to meet the PRC government's mandatory environmental standards. We are hopeful that more of our customers will recognize the operational efficiency of these machines, which include reduced input costs and lower emissions. We are confident that sales of our airflow dyeing machines can exhibit strong growth in fiscal 2012."
About Cleantech Solutions International
Cleantech Solutions is a manufacturer of metal components and assemblies, primarily used in clean technology industries. The Company supplies forging products, fabricated products and machining services to a range of clean technology customers, primarily in the wind power sector. Cleantech Solutions is committed to achieving long-term growth through ongoing technological improvement, capacity expansion, and the development of a strong customer base. The Company's website is www.cleantechsolutionsinternational.com. Any information on the Company's website or any other website is not a part of this press release.
This release contains certain "forward-looking statements" relating to the business of the Company and its subsidiary and affiliated companies. These forward looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions. Such forward looking statements involve known and unknown risks and uncertainties that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website, including factors described in "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Form 10-K for the year ended December 31, 2011. All forward-looking statements attributable to the Company or to persons acting on its behalf are expressly qualified in their entirety by these factors other than as required under the securities laws. The Company does not assume a duty to update these forward-looking statements.
Mr. Ryan Hua
Vice President Operations
Cleantech Solutions International, Inc.
Email: ryanhua@cleantechsolutionsinternational.com
Web: www.cleantechsolutionsinternational.com
Ms. Elaine Ketchmere
CCG Investor Relations
Email: elaine.ketchmere@ccgir.com
Web: www.ccgirasia.com
SOURCE Cleantech Solutions International, Inc.
Monday, April 30th, 2012 Uncategorized Comments Off on Cleantech Solutions (CLNT) Receives $1.7 Million Order for Airflow Dyeing Machines
Anderson Family Proposes Transaction to Acquire 100% of Public Interest in Books-A-Million, Inc. (BAMM)
Clyde B. Anderson announced on April 28, 2012, that the Anderson family has made a non-binding proposal to acquire all of the outstanding publicly-held shares of the common stock of Books-A-Million, Inc. (NASDAQ: BAMM) (the "Company"). Mr. Anderson is the Executive Chairman of the Company and Mr. Anderson and other members of the Anderson family currently directly or indirectly control shares of stock representing, in the aggregate, approximately 53 percent of the common stock of the Company.
According to the proposal, public shareholders would receive $3.05 per share in cash, representing a premium of approximately 20 percent over the closing price on April 27, 2012, and 13 percent over the average closing price of the Company's common stock for the past 90 trading days. The proposal values the total equity of the Company at approximately $48.8 million.
In the proposal letter, Mr. Anderson stated he anticipates the acquisition would be in the form of a merger of the Company with a newly formed acquisition vehicle that the Anderson family would control. Mr. Anderson also stated in the letter that the transaction would be financed through borrowings available under the Company's existing credit line, and that the proposal is conditioned on availability of sufficient funds under that credit line. The Anderson family expects the Company's management to remain in place following the merger along with the rest of the Company's valued employees.
In the letter, Mr. Anderson said: "We believe that this Proposal presents a unique and highly attractive opportunity for the public shareholders of the Company."
Mr. Anderson also noted in his letter that he expects that the Board of Directors of the Company will establish a special committee of independent directors with its own legal and financial advisors to review the proposal on behalf of the Company's public shareholders. Mr. Anderson indicated in his letter that he and the other interests of the Anderson family do not intend to move forward with the proposed transaction unless the special committee makes a favorable recommendation to the Board.
In the letter, Mr. Anderson also stated that the definitive transaction documents will provide that the transactions will be conditioned upon the approval of a majority of the shares of stock of the Company that are not directly or indirectly controlled by members of the Anderson family. Mr. Anderson also made clear that he and the other members of the Anderson family are interested only in acquiring the outstanding shares of the Company that they do not already own, and are not currently interested in considering a sale of their shares to a third party or any merger or other strategic transaction involving any third party and do not intend to vote in their capacity as shareholders in favor of any such transaction.
Mr. Anderson has engaged Ropes & Gray LLP as his legal advisor and BDT & Company, LLC as his financial advisor for the proposed transaction.
A copy of Mr. Anderson's letter to the Board is attached as an exhibit to Amendment No. 8 to the Anderson family's Schedule 13D, which is being filed with the Securities and Exchange Commission ("SEC") today, and once filed will be available at no charge on the SEC's website at www.sec.gov.
Pending the execution of a definitive agreement, the Company's shareholders and others considering trading in its securities should recognize that the announcement of this proposal is only the beginning of the process of considering the proposal and that no definitive time frame has been determined and that there can be no assurance that any transaction, whether on the proposed terms or other terms, will be consummated. There can also be no assurance that Mr. Anderson will be able to obtain the financing commitments necessary to proceed with the proposal.
This press release is not a solicitation of a proxy, an offer to purchase nor a solicitation of an offer to sell shares of the Company, and it is not a substitute for any proxy statement or other filings that may be made with the Securities and Exchange Commission (the "SEC") should this proposed transaction go forward. If such documents are filed with the SEC, investors will be urged to thoroughly review and consider them because they will contain important information, including risk factors. Any such documents, once filed, will be available free of charge at the SEC's website (www.sec.gov) and from the Company.
Monday, April 30th, 2012 Uncategorized Comments Off on Anderson Family Proposes Transaction to Acquire 100% of Public Interest in Books-A-Million, Inc. (BAMM)
SEFE, Inc. (SEFE) Announces Tether Contact System
SEFE, Inc. (OTCBB: SEFE) ("SEFE") ("The Company"), a technology- and solutions-driven sustainability company, has introduced a summary of its tether contact system and its role in the company's flagship Harmony III product.
In brief, the tether contact system is designed to minimize electrical path length on the power tether. The system uses a proprietary mechanism to complete the power circuit, removing the unused power tether from the path. This system functions in tandem with the dynamic electrical converter and the electrostatic motor-generator as an efficiency booster. This allows for the same hardware to be used no matter what the flight elevation of the aerostat will be.
"The most oft-asked questions about the design of our system are related to its safety and efficiency. This component of our system is one of several inventions geared toward addressing both of those issues in order to enhance the product as a whole," stated Mike Hurowitz, SEFE's Director of Engineering.
For more information visit www.SEFElectric.com.
About SEFE, Inc.
SEFE focuses on pushing the boundaries of what's possible, embracing innovation and employing the cutting-edge to solve problems, and offering sustainable solutions to a world hungry for invention, direction and leadership. SEFE is technology- and solutions-driven, focusing on developing inventions that provide a real-world impact and true profitability. So, success is measured by both a sustainable return on investment, as well as a project's sustainability from an environmental perspective.
For more information, visit www.SEFElectric.com.
This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements regarding our expected future financial position, results of operations, cash flows, financing plans, business strategy, products and services, competitive positions, growth opportunities, plans and objectives of management for future operations, as well as statements that include words such as "anticipate," "if," "believe," "plan," "estimate," "expect," "intend," "may," "could," "should," "will," and other similar expressions are forward-looking statements. All forward-looking statements involve risks, uncertainties and contingencies, many of which are beyond our control, which may cause actual results, performance, or achievements to differ materially from anticipated results, performance, or achievements. We are under no obligation to (and expressly disclaim any such obligation to) update or alter our forward-looking statements, whether as a result of new information, future events or otherwise.
Monday, April 30th, 2012 Uncategorized Comments Off on SEFE, Inc. (SEFE) Announces Tether Contact System
Exceed Company Limited (EDS) Full Year 2011 Financial Results
FUJIAN, China, April 30, 2012 /PRNewswire-Asia-FirstCall/ — Exceed Company Ltd. (NASDAQ: EDS) ("Exceed" or "the Company"), the owner and operator of "Xidelong" brand and one of the leading domestic sportswear brands in China, today released its financial results for 2011.
Financial Highlights – Full Year ended December 31, 2011 (audited)(1)
Revenue was RMB3,288.6 million (US$522.5 million), representing a 21.8% year-over-year increase.
Gross profit was RMB992.3 million (US$157.7 million), representing a 17.9% year-over-year increase. Gross margin decreased from 31.2% for 2010 to 30.2% for 2011.
Operating profit was RMB498.2 million (US$79.2 million), representing a 21.6% year-over-year increase.
Net profit was RMB470.1 million (US$74.7 million), representing a 33.1% year-over-year increase.
Mr. Shuipan Lin, Exceed's founder, Chairman and CEO, commented, "We are pleased to report healthy results for the full year 2011, with over 20% growth in revenue and 30% growth in net income. Our results were supported by our ongoing marketing and branding efforts which have promoted our brand image and allowed us to further penetrate the domestic sportswear market in China. Our key target audience, younger generations in China's developing second and third-tier cities continue to identify with our 'happy lifestyle' branding theme. In addition, our involvement in the nationwide 'Fitness for All Campaign 2011' was recently recognized with an Outstanding Contribution Award from China's General Administration of Sport, the government agency responsible for sports in China, which further enhanced our brand image. By continuing to improve the awareness and acceptance of a 'Sports Lifestyle,' Exceed is helping to educate a whole new generation of Chinese youth about the benefits of leading a healthy and active life.
"In addition to our ongoing marketing and branding efforts, we have made progress on our operational plan to maximize our growth potential in the evolving PRC domestic sportswear market. As recently announced, we have sought to improve our internal manufacturing capacity, thereby increasing our bargaining power, providing more stability to our supply chain, which, in turn, we believe will positively affect our gross profit margin. A significant part of our new operational plan is to purchase a 400,000 square meter parcel of land in Ruichang City, Jiangxi Province, where we plan to establish a new operating subsidiary and construct a new production facility upon this parcel of land. Upon completion of the construction of our new production facility in Ruichang City by the end of 2013, we expect that our annual production capacity for our footwear products will increase to approximately 30.0 million pairs while also gaining certain internal apparel production capabilities.
"The filing of our annual results was rescheduled to allow us sufficient time to properly assess the accounting treatment of certain escrow shares and earn-out shares. To reflect the revision to our method of accounting in relation to our conditional obligations in relation to release and issue these escrow shares and earn-out shares, we subsequently restated results for 2009 and 2010. The restatement resulted in a non-cash and non-operating gain of RMB170.9 million, RMB1.6 million and RMB36.6 million from change in fair value of contingent share liability for the year ended 2009, 2010 and 2011, respectively. In addition, we believe our reassessment of the accounting treatment in this instance demonstrates our commitment to maintaining the highest level of transparency and disclosure in all of our reporting practices. Looking ahead, despite ongoing macroeconomic headwinds, we believe the execution of our operational plan combined with our continued brand building activities will position us to deliver steady growth in the year ahead. We will continue to expand our market presence at a measured pace to keep our sales and distribution channel and inventories in-line with consumer demand. Beyond our operational initiatives, the Company is also seeking to maximize shareholder value by extending the date of expiration of our previously announced US$10 million share repurchase program from February 14, 2012 to August 14, 2012. As of today, this extension will give us more time to prudently repurchase shares up to US$7.6 million that may yet be purchased under the share repurchase program. The strength of our balance sheet and financial position allow us to continue investing in the Company's future while simultaneously returning value to our shareholders."
Audited Fiscal Year 2011 Financial Results
Revenue breakdown
% of
YoY Growth
Revenue. Revenue for 2011 was RMB3,288.6 million (US$522.5 million), representing a year-over-year increase of 21.8% from RMB2,698.9 million in 2010.
The increase in revenue in 2011 was primarily due to further market penetration as a result of our continuous marketing and brand promotion efforts. In 2011, we engaged one of the largest and longest standing China-based marketing and public relations firms to further enhance our advertising and promotional initiatives. This engagement, together with our ongoing marketing initiatives including production of television commercials for our spokespersons, By2, and our sponsorship of the "Fitness for All Campaign – Walking to 100 Universities" program and "Inter-City" television program has enhanced our brand significantly. Furthermore, we have engaged a new advertising company, a member of the American Association of Advertising Agencies, for the planning and production of television commercials for our spokespersons, By2, and print advertisements for our products. The commercials are intended to position Xidelong as a sports brand that emphasizes a "happy lifestyle". Meanwhile, strong demand from end customers encouraged the expansion of the Xidelong retail network by our distributors and authorized third-party retailers. The number of the Xidelong retail locations increased by 511 from 4,333 as of December 31, 2010 to 4,844 as of December 31, 2011.
Footwear. Footwear accounted for 46.0% of revenue for 2011, and principally includes nine categories of footwear: running footwear, leisure footwear, basketball footwear, skateboarding footwear, canvas footwear, tennis footwear, outdoor footwear, vintage design footwear and cross-training footwear. A portion of our footwear production is outsourced.
Revenue from footwear for 2011 was RMB1,514.1 million (US$240.6 million), a 19.6% increase from RMB1,266.4 million in 2010, primarily due to a 4.7% increase in average selling price ("ASP") and a 14.2% increase in sales volume. Such increases were mainly attributable to the introduction of our new vintage design footwear and cross-training footwear product lines in June 2011. As a result of our continuous marketing and brand promotion efforts, footwear ASP increased, leading to an increase in our overall footwear revenue.
Apparel. Sports apparel accounted for 52.7% of revenue for 2011, and principally includes sports tops, sports pants, jackets and track suits. Our apparel production is entirely outsourced.
Revenue from apparel for 2011 was RMB1,731.5 million (US$275.1 million), a 23.4% increase from RMB1,403.7 million in 2010. This increase was primarily due to a 4.5% increase in sales volume and an 18.0% increase in ASP. Such increases were mainly attributable to the improvement of the design and quality of our apparel products and the introduction of certain new products, particularly the new lifestyle apparel products, which has created demand from end customers. In addition, the increase in the average size of the Xidelong retail locations, which typically now have larger display areas for apparel, has attracted more customer traffic. The increased consumer recognition of our Xidelong brand as a result of our continuous marketing and brand promotion efforts also contributed to the increase in ASP of apparel products.
Accessories. Accessories accounted for 1.3% of revenue for 2011, and principally include bags, socks, hats and caps. Our accessories production is entirely outsourced.
Revenue from accessories for 2011 was RMB43.0 million (US$6.8 million), a 49.2% increase from RMB28.8 million in 2010. This increase was primarily driven by an increase in product varieties.
Gross profit and Gross profit margin. Gross profit for 2011 increased by 17.9% to RMB992.3 million (US$157.7 million) from RMB841.6 million in 2010, primarily as a result of the increase in sales. Overall gross margin for 2011 decreased to 30.2% from 31.2% in 2010, primarily as a result of the decrease in proportion of footwear produced in-house relative to overall footwear production as a result of the limited production capacity within our existing production facility. We have formulated a new operational plan in response to these production capacity restraints. Please refer to the "Business Highlights and Outlook" section of this release. Furthermore, rising inflation in China resulted in an increase in raw material and wage costs, leading to an increase in the manufacturing cost. We will continue our efforts to balance the mix between in-house production and outsourced manufacturing in the future.
Other income and gains. Other income and gains increased by 131.3% to RMB14.8 million (US$2.4 million) in 2011 from RMB6.4 million in 2010. Other income and gains in 2011 included a governmental award of RMB2.4 million (US$0.4 million) for technological innovation and business development, and interest income of RMB11.9 million (US$1.9 million). The increase in other income and gains in 2011 was mainly attributable to an increase in interest income, derived from a short term time deposit of RMB400.0 million (US$63.6 million), which carried an interest rate ranging from 1.7% to 3.1% per annum.
Operating expenses. Total operating expenses for 2011 was RMB508.8 million (US$80.8 million), increased by approximately 16.1% from RMB438.2 million for 2010.
Selling and distribution costs. Selling and distribution costs for 2011 was RMB377.9 million (US$60.0 million), an increase of 11.3% from RMB339.6 million in 2010. The increase in selling and distribution costs for 2011 was primarily due to increases in advertising and promotional expenses. Advertising and promotional expenses increased by 11.2% from RMB316.8 million in 2010 to RMB352.4 million (US$56.0 million) in 2011 primarily because we invested more resources on marketing, advertising and store image and renovation activities to build our brand recognition and market penetration. In 2011, over 500 Xidelong retail selling locations were newly opened by our distributors and third-party retailers. During the same period, over 450 existing Xidelong retail locations were renovated by our distributors and third-party retailers, certain of which received renovation subsidies from Exceed in the form of standardized promotional materials and display equipment. In 2011, our advertising and promotional activities continued to focus on the events relating to the Nationwide "Fitness for All" Sports Campaign and the continued engagement of By2 as our official product series spokesperson. We have also engaged Genedigi, one of the largest and longest standing China-based marketing and public relations firms to support our advertising and promotional initiatives in conjunction with the our sponsorship of the "Fitness for All" Sports Campaign in 2011 and for general public relations and marketing initiatives in mainland China. In addition, we have continued to sponsor the "Inter-City" television program, a popular entertainment show featuring athletic challenges that airs on channels 1 and 5 of China Central Television, which is the predominant state television broadcaster in China, starting from the second quarter of 2011.
As a percentage of sales, advertising and promotional expenses decreased from 11.7% in 2010 to 10.7% in 2011. The decrease in advertising and promotional expenses as a percentage of sales was mainly due to the effective management of our promotional strategy and spending on advertising which further improved our operating profit.
Administrative expenses. Administrative expenses for 2011 was RMB77.1 million (US$12.2 million), an increase of 33.4% from RMB57.8 million in 2010, primarily due to the increase in UMC Tax, Educational Surcharge, salaries of administrative staff and rental expenses. Commencing from December 1, 2010, foreign enterprises, foreign funded enterprises and foreign individuals have been required to pay UMC Tax and Educational Surcharge. UMC Tax and Educational Surcharge increased by 780.0% from RMB1.5 million in 2010 to RMB13.2 million (US$2.1 million) in 2011. Salaries of administrative staff increased by 15.9% from RMB11.3 million in 2010 to RMB13.1 million (US$2.1 million) in 2011 primarily due to an increase in the number of administrative staff and a general increase in average wages. Office rental expenses increased by 236.4% from RMB1.1 million in 2010 to RMB3.7 million (US$0.6 million) in 2011 due to the business expansion of the Company. Administrative expenses as a percentage of revenue increased from 2.1% in 2010 to 2.3% in 2011.
Research and development expenses. Research and development expenses for 2011 was RMB53.9 million (US$8.6 million), an increase of 32.1% from RMB40.8 million in 2010. The increase in research and development expenses for 2011 was primarily due to the continued investment in the design of new products and components to improve our product offerings, as well as our research and development efforts in cooperation with a PRC sports institute.
Finance costs. Finance costs for 2011 was RMB0.9 million (US$0.1 million), a decrease of 52.6% from RMB1.9 million in 2010, primarily due to a decrease in the average of our short-term bank borrowings.
Gain from change in fair value of contingent share liability. The gain from the change in contingent share liability was RMB1.6 million and RMB38.6 million in 2010 and 2011, respectively, reflecting the decrease in the fair value of the conditional obligation to release and issue shares to the former shareholders of Windrace as part of the reverse recapitalization transaction effective on October 21, 2009.
Profit before tax. As a result of the foregoing, profit before tax for 2011 was RMB536.0 million (US$85.2 million), an increase of 30.9% from RMB409.5 million in 2010.
Tax. Tax expenses for 2011 were RMB65.9 million (US$10.5 million), compared to RMB56.3 million in 2010. The full exemption period of Xidelong (China) Co. Ltd., our principal PRC subsidiary, from PRC corporate income tax expired on December 31, 2009. Xidelong (China) Co. Ltd. is entitled to a 50% reduction in the PRC corporate income tax until December 31, 2012, after which it will be subject to the standard tax rate of 25%. The effective tax rate for 2011 and 2010 was 12.3% and 13.7%, respectively.
Profit. As a result of the above factors, profit for 2011 was RMB470.1 million (US$74.7 million), an increase of 33.1% from RMB353.2 million in 2010.
Inventory. The average inventory turnover days for 2011 and 2010 were 6 days and 10 days, respectively. Inventory turnover days decreased mainly due to the decreased proportion of in-house production, as fewer inventories were stored in 2011 as compared with 2010, and our improved production planning and effective procurement control and logistics management.
Trade receivables. The average trade receivables turnover days for 2011 and 2010 were 73 days and 96 days, respectively. Trade receivables turnover days were within the Company's credit policy and we will continue our effort to maintain the trade receivables balance.
Trade payables. The average trade payables turnover days for 2011 and 2010 were 14 days and 30 days, respectively. Average trade payables turnover days decreased as a result of our decision to opt for the bulk purchase discounts offered by our suppliers in exchange for quicker payment for raw materials and finished products.
Cash and cash equivalents. Cash and cash equivalents increased to RMB964.3 million (US$153.2 million) as of December 31, 2011 from RMB762.8 million as of December 31, 2010, primarily as a result of an increase in profit derived from the sales of products.
Cash inflow from operating activities for 2011 was RMB320.4 million (US$50.9 million) compared to an inflow of RMB523.5 million in 2010. The changes were mainly due to revenue growth, resulting in an increase in trade receivables, as well as a decrease in trade and bills payables for our proactive strategy to maximize the bulk purchase discounts offered by the suppliers in exchange for quicker payment for raw materials.
Business Highlights and Outlook
2012 Autumn collection sales fair
2012 Autumn sales fair was held at our headquarters in Jinjiang during the period of December 15 to 19, 2011. The total value of the wholesale orders placed at the sales fair grew by approximately 9% over the same sales fair last year.
Expansion of sales and distribution network
There were 4,844 Xidelong retail locations, which are operated by our distributors and authorized third-party retailers, as of December 31, 2011, an increase of 511 compared with the number as of December 31, 2010.
We continued to deepen penetration into new cities, with a focus on third-tier cities in affluent provinces such as Guangdong, Jiangsu and Zhejiang provinces. From December 31, 2010 to December 31, 2011, 92 new Xidelong retail locations, which are operated by our distributors and authorized third-party retailers, were opened in these provinces.
Marketing initiatives and brand recognition
We use the "happy lifestyle" theme in our promotional activities and product offerings and continue to engage By2, a popular Taiwan-based musical group, as a product spokesperson. We will maintain these promotional initiatives as they have been effective in enhancing the "Xidelong" brand image and have helped to support our strong results.
We attended the "Fitness for All Campaign 2011" closing and award ceremony in Beijing in mid-January 2012, where we received the Chinese General Administration of Sport's Outstanding Contribution Award for the second consecutive year.
We have engaged Genedigi, one of the largest and longest standing China-based marketing and public relations firms to support our general public relations and marketing initiatives in China.
We have engaged an American Association of Advertising Agencies member agency to support the planning and production of television commercials for our spokespersons, By2 and print advertisement for our products.
Update on new operational plan
Construction of New Staff Quarters:
To specifically address the shortage of labor faced by all players in the sportswear industry in China, we initiated a solution to construct new staff quarters to improve the working and living environments of our employees and bolster staff retention. The expected staff quarter construction project cost is approximately RMB150 million, with an aggregate gross floor area of approximately 66,000 square meters, which can accommodate approximately 2,000 staff. We commenced construction of the new staff quarters in 2011, with three buildings completed in 2012 and the construction on the remaining two buildings expected to start in 2012. The renovation of the three staff quarter's buildings will start in April 2012 and is expected to be completed by the fourth quarter in 2012.
Construction of New Production Facility:
In order to expand our internal capacity, in December 2011, we entered into a contract with the municipal government of Ruichang City for the investment and construction of a sportswear manufacturing base on a parcel of land in the Ruichang City. Pursuant to this contract, we would purchase a parcel of land with an aggregate site area of 400,000 square meters (approximately 600 acres) in Ruichang City, Jiangxi Province, PRC. We plan to use this parcel of land for the construction of a new production facility to increase our internal manufacturing capacity. The total consideration for the land will amount to RMB198,000,000 (approximately US$31.5 million), of which a deposit of RMB46,800,000 (approximately US$7.4 million) has been paid as a performance bond. The Company intends to establish a new operating subsidiary in Jiangxi Province and construct a new production facility on the purchased land in order to increase its internal manufacturing capacity. Upon completion of the construction of our new production facility in Ruichang City by the end of 2013, we expect that our annual production capacity for our footwear products will increase to approximately 30.0 million pairs as well as gaining certain internal apparel production capabilities. We believe increased in-house production capacity will give us more control over the production process and allow us to reduce costs over time.
Expansion of Head Office, Sales, Marketing and Distribution:
In order to cope with the expected business expansion, we plan to expand our head office facilities and our network of regional sales and logistics centers to consolidate the Company's brand management, advertising and promotional functions, and business development function. We are currently investigating possible locations within Fujian Province.
The production facility plan has not been finalized and may be subject to change in the future.
In the long-term, as previously announced, we plan to selectively acquire or partially invest in distributors of our products. Furthermore, to improve our market share in China, our strategy involves leveraging our established nationwide network to introduce new brands, which may include entering into licensing agreements with a foreign brand to target different market segments, in order to develop Exceed into a multi-brand operator.
First Quarter Fiscal 2012 Guidance
Exceed expects to generate net revenues in the range of RMB841.6 million to RMB864.1 million in the first quarter of 2012, representing a year-over-year increase of approximately 12% to 15%, as compared with RMB751.4 million in the same period of 2011. This represents the Company's preliminary estimates, and is subject to change.
Update on Shares Repurchase Program
In accordance with its share repurchase program announced on August 15, 2011 and extended on February 14, 2012, the Company has purchased 563,364 of its ordinary shares as of April 27, 2012, at an aggregate cost of approximately US$2.4 million, with a balance of approximately US$7.6 million available for further repurchases under the share repurchase program. As previously announced, the Company has extended the date of expiration of Exceed's existing US$10 million share repurchase program from February 14, 2012 to August 14, 2012. The share repurchase program will be reviewed from time to time and may be adjusted or terminated at any time without prior notice. Stock repurchases under this program may be made through open market purchases, in privately negotiated transactions, in block trades, pursuant to a 10b5-1 plan, or otherwise. The timing and actual number of shares repurchased will depend on market conditions, trading price of the ordinary shares and other factors and will be subject to the restrictions relating to volume, price and timing under applicable laws.
Revisions to Previously Issued Consolidated Financial Statements
The Company has revised its previously issued financial statements for 2009 and 2010 to reflect the revision to its method of accounting in relation to the conditional obligation to release and issue shares to the former shareholders of Windrace International Company Limited as part of the reverse recapitalization transaction effective on October 21, 2009. The Company believes that this revised accounting treatment is more relevant and reliable under the circumstances.
The Company's original accounting method was to record the contingent shares issuable, consisting of escrow shares and earn-out shares, as a stock dividend, and upon issuance as an adjustment to the par value of common shares, with an offsetting adjustment to capital reserve. The Company included such contingent shares in the calculation of basic earnings per share from the date of issuance. Under this accounting method, the Company did not recognize a liability for its conditional obligation to issue shares, and did not recognize changes in the fair value of that conditional obligation in its consolidated statements of comprehensive income.
During 2012, prior to the issuance of the Company's December 31, 2011 financial statements, the Company concluded it would be more relevant and reliable to revise its method of accounting with respect to the accounting for the contingent shares issuable, retroactive to the closing of the reverse recapitalization transaction, to recognize a liability for the fair value of the escrow shares and the earn-out shares, and to recognize changes in the fair value of the escrow shares and the earn-out shares in the Company's consolidated statements of comprehensive income. The Company adopted this revised accounting method based on, among other factors, its review of IAS 8, IAS 32 and IAS 39.
In particular, the Company considered IAS 8, "Accounting Policies, Changes in Accounting Estimates and Errors", which states that, in the absence of a standard or an interpretation that specifically applies to a transaction, other event or condition, management shall use its judgment in developing and applying an accounting policy that results in information that is relevant and reliable. One of the permitted changes in an accounting policy under IAS 8 is if such change results in the financial statements providing reliable and more relevant information about the effects of transactions, other events or conditions on the company's financial position, financial performance or cash flows. The Company believes that revising comparative amounts for all prior periods presented will provide more relevant and reliable information to shareholders and investors.
The Company also considered the example of another SEC registrant that, after consultation with the Securities and Exchange Commission, revised its accounting for contingent shares issuable in a reverse recapitalization transaction to reflect contingent shares issuable as a liability in its balance sheet at fair value, with the changes in fair value of the contingent shares issuable recognized in the consolidated statements of operations.
The Company now believes accounting for the contingent shares issuable as a liability at fair value, with the changes in fair value recognized in the consolidated statements of comprehensive income, is a more relevant and reliable accounting method under the circumstances. The Company's reconsideration was significantly influenced by evolving professional views as to the accounting for this type of transaction, as well as the continuing movement to fair value/derivative accounting for an expanding array of financial instruments.
For the details of the adjustments made to the previously reported 2009 and 2010 consolidated balance sheets, consolidated statements of comprehensive income, consolidated statements of cash flows, and consolidated statements of changes in equity, please refer to Note 2 to the consolidated financial statements filed in our annual report on Form 20-F.
Investor Conference Call / Webcast Details
The Company's senior management will host a conference call on Thursday, May 3, 2012 at 7:00 am (US Pacific) / 10:00 am (US Eastern) / 10:00 pm (Beijing) to discuss the Company's 2011 full year financial results and recent business activity. The conference call may be accessed by dialing:
– China
– China (Mobile)
Participant Passcode
Please dial in 10 minutes before the call is scheduled to begin.
A replay of the conference call may be accessed by phone at the following numbers until May 10, 2012:
– United States/International
10800 714 0386/ 10800 140 0386
Additionally, a live and archived webcast of the conference call will be available on the investor relations section of Exceed's website at http://www.ir.xdlong.cn.
About Exceed Company Ltd.
Exceed Company Ltd. designs, develops and engages in wholesale of footwear, apparel and accessories under its own brand, XIDELONG, in China. Since it began operations in 2002, Exceed has targeted its growth on the consumer markets in the second and third-tier cities in China. Exceed has three principal categories of products: (i) footwear, which comprises running, leisure, basketball, skateboarding and canvas footwear, (ii) apparel, which mainly comprises sports tops, pants, jackets, track suits and coats, and (iii) accessories, which mainly comprise bags, socks, hats and caps. Exceed Company Ltd. currently trades on Nasdaq under the symbols "EDS".
This announcement contains forward-looking statements that are based on our current expectations, assumptions, estimates and projections about us and our industry. All statements other than statements of historical fact in this form are forward-looking statements. These forward-looking statements can be identified by words or phrases such as "may", "will", "expect", "anticipate", "estimate", "plan", "believe", "is/are likely to" or other similar expressions.
These forward-looking statements involve various risks and uncertainties. Although we believe that our expectations expressed in these forward-looking statements are reasonable, we cannot assure you that our expectations will turn out to be correct. Our actual results could be materially different from and worse than our expectations. A number of factors could cause actual results to differ materially from those contained in these forward-looking statements, including but not limited to changes in our goals and strategies, our ability to control costs and expenses, success of our products, competition in the sportswear industry in China, and changes in PRC government preferential tax treatment and financial incentives. The forward-looking statements made in this announcement relate only to events or information as of the date on which this announcement is published. We undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date this announcement is published or to reflect the occurrence of unanticipated events.
(1) The Company's reporting currency is Renminbi ("RMB"). RMB numbers included in this press release have been translated into U.S. dollars at the rate of US$1.00 = RMB6.294, the exchange rate refers to the exchange rate as set forth in the H.10 statistical release of the Federal Reserve Board, on December 31, 2011. The translation of amounts from RMB to United States dollars is solely for the convenience of the reader. No representation is made that RMB amounts could have been, or could be, converted into U.S. dollars at that rate or at any other rate on December 31, 2011.
Taylor Rafferty (HK):
Taylor Rafferty (US):
Mahmoud Siddig
Bryan Degnan
Exceed@Taylor-Rafferty.com
– FINANCIAL TABLES TO FOLLOW –
EXCEED COMPANY LTD. AND SUBSIDIARIES
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
Year ended December 31
(Audited)
As restated
Other income and gains
Selling and distribution costs
Finance costs
Share of loss in jointly-controlled entity
Gain from change in fair value of contingent share liability
PROFIT BEFORE TAX
PROFIT FOR THE YEAR
Other comprehensive income for the year, net of tax:
Exchange differences on translation of
financial statements of overseas subsidiaries
Total comprehensive income for the year
attributable to equity holders of the Company
Net profit per share
RMB15.83
Weighted average number of shares outstanding
CONDENSED STATEMENTS OF FINANCIAL POSITION
As of December 31
NON-CURRENT ASSETS
Prepaid land lease payments
Deposit paid for acquisition of land use rights
Trade receivables
Prepayments, deposits and other receivables
Due from a shareholder
Pledged deposits
Trade and bills payables
Deposits received, other payables and accruals
Interest-bearing bank borrowings
Due to a director
Tax payable
Contingent share liability
NET CURRENT ASSETS
Retained profits
CONDENSED STATEMENTS OF CASH FLOWS
Net cash inflow/(outflow) from operating activities
Net cash outflow from investing activities
Net cash inflow/(outflow) from financing activities
Cash at beginning of the year
Cash at end of the year
Monday, April 30th, 2012 Uncategorized Comments Off on Exceed Company Limited (EDS) Full Year 2011 Financial Results
Vimicro (VIMC) and Samsung Form Strategic Partnership to Develop Products for the China Security Surveillance Market
BEIJING, April 27, 2012 /PRNewswire-Asia-FirstCall/ — Vimicro International Corporation (NASDAQ: VIMC) ("Vimicro" or the "Company"), a leading multimedia semiconductor and IP-based surveillance solution provider, today announced the signing of a strategic cooperative agreement (the "Agreement") with Tianjin Samsung Techwin Opto-Electronic Co., Ltd. outlining broad-based cooperation in the areas of technology, products, and business development. Tianjin Samsung Techwin Opto-Electronics Co., Ltd. ("Samsung") is a joint venture that was founded by Samsung Techwin Co., Ltd. and Tianjin Zhonghuan Electronic Information Group in 2008.
(Logo: http://photos.prnewswire.com/prnh/20070528/CNM014LOGO)
Through this strategic partnership, Vimicro and Samsung will engage in comprehensive cooperation, collaborating both domestically and internationally on technology, products, and business practices, as well as jointly developing products for the China security surveillance market. For example, the companies will jointly focus on improving sales of Samsung's front-end surveillance equipment and Vimicro's ViSS large-scale video surveillance platform and NVR bulk-storage network video storage and management platform.
According to the Agreement, Samsung and Vimicro will improve the compatibility of their respective existing network-based surveillance products and jointly develop new functions with broader compatibility. In terms of technology and product development, Samsung will primarily focus on front-end surveillance equipment and Vimicro will primarily focus on security surveillance system platform development.
"We are pleased to have established this important strategic partnership with Samsung," said Mr. Jiaowei (Kevin) Jin, Vimicro's President and Chief Operating Officer. "By leveraging Samsung's world-class technology and R&D capabilities along with our domestic leading market position, we look forward to developing even more-advanced security surveillance products and integrated solutions for our industry clients, as well as expanding the Chinese security surveillance market."
About Tianjin Samsung Techwin Opto-Electronics Co., Ltd
Tianjin Samsung Techwin Opto-Electronics Co., Ltd. was jointly founded by Samsung Techwin Co., Ltd. and Tianjin Zhonghuan Electronic Information Group in 2008 with a total investment of $25 million and registered capital of $10 million. The company is affiliated to Samsung of South Korea and specializes in the production and sale of diverse optoelectronics and digital products, e.g. closed-circuit television (CCTV), mobile phone cameras, video presenters, digital cameras, etc. The company, on the basis of its advanced optical and digital imaging technologies, continues to develop and produce a wide range of high-quality security monitoring products, which are widely used in public security organizations, government departments, financial institutions, etc.
About Vimicro International Corporation
Vimicro International Corporation is a leading multimedia semiconductor and solution provider that designs, develops and markets mixed-signal semiconductor products and system-level solutions that enable multimedia capabilities in a variety of products for PC/Notebook, consumer electronics and surveillance markets. Vimicro is aggressively expanding business into the surveillance market with system-level solutions and semiconductor products to capitalize on China's domestic demand. Vimicro's ADSs, each of which represents four ordinary shares, are currently trading on the NASDAQ Global Market under the ticker symbol "VIMC."
SOURCE Vimicro International Corporation
Friday, April 27th, 2012 Uncategorized Comments Off on Vimicro (VIMC) and Samsung Form Strategic Partnership to Develop Products for the China Security Surveillance Market
GreenHunter Energy (GRH) Reports First Quarter 2012 Financial and Operating Results
GreenHunter Energy, Inc. (NYSE Amex: GRH), a diversified water resource management company specializing in the unconventional oil and natural gas shale resource plays, announced today financial and operating results for the three months ended March 31, 2012.
OPERATIONAL RESULTS FOR THE THREE MONTHS ENDED MARCH 31, 2012
Revenues for the three months ended March 31, 2012 were $2.3 million, compared to zero revenues reported during the first quarter of 2011. The operating loss for the three months ended March 31, 2012 was $(0.4) million, compared to an operating loss of $(1.2) million during the first quarter of 2011. Net loss to common shareholders was $(0.8) million ($(0.03) loss per common share basic and diluted) for the three months ended March 31, 2012, compared to a net loss of $(1.5) million ($(0.06) loss per common share basic and diluted) during the first quarter of 2011. The increase in revenues and decrease in both the operating loss and loss to common shareholders was due to operating income generated by our water management products and services which began in late 2011. This new business segment increased significantly upon the final closing of the acquisition of Hunter Disposal completed on February 17, 2012. As of the quarter ended March 31, 2012, we are no longer a development stage company.
OPERATIONAL RESULTS ON A PRO-FORMA BASIS
On a pro-forma basis (as if the acquisition of Hunter Disposal had occurred as of the beginning of 2011), revenues for the three months ended March 31, 2012 increased 490% to $4.6 million, compared to $0.8 million reported during the first quarter of 2011. While the pro-forma results are not necessarily indicative of what actually would have occurred, they reflect an increase in total water management revenues from organic activities including fluids hauling and logistics, new capacity contracts for produced water disposal and water storage equipment rentals in the Marcellus, Utica and Eagle Ford Shale regions.
SUBSEQUENT EVENTS AND ACQUISITION PIPELINE
In addition to i) the recently announced decision to begin barging operations for brine water on the Ohio River in our Appalachian Division, ii) the subsequent announcement of a lease for an Ohio River Barge Transloading and Water Storage Facility and iii) the announcement of receipt of a new Commercial Salt Water Disposal Permit approved by the Texas Railroad Commission for a new SWD well near the town of Helena in Karnes County, Texas, management has been very actively building a significant pipeline of other development projects and acquisition candidates. Of all the potential deals currently being pursued by management, some of the more notable transactions include:
Three permitted Class II salt water injection wells in the Cana Woodford (a.k.a., Arkoma) basin in Oklahoma located within the fast growing Horizontal Mississippian shale play;
Three permitted Class II salt water injection wells in Appalachia basin in Ohio and West Virginia within the Utica and Marcellus shale plays—including five vacuum trucks, an office building and maintenance garage;
A package of thirteen leased properties in the South Texas' Eagle Ford Shale play—including a mix of fully-permitted Class II salt water injection wells and UIC applications in various stages of permitting; and
Acquisition of an existing fleet of water hauling trucks and trailers and associated equipment located in the Eagle Ford Shale Play.
MANAGEMENT COMMENTS
Commenting on GreenHunter Energy's First Quarter 2012 financial and operating results, Mr. Jonathan D. Hoopes, GreenHunter Energy's President and COO, stated, "We are pleased to announce a good start to 2012. We completed the integration of our existing fleet of fluids hauling and frac tank rental equipment with our recently acquired Hunter Disposal operations, and the new business efforts are progressing well. We continue to identify opportunities to improve operational efficiencies by increasing equipment utilization of our rolling stock. Management has developed and is executing on a plan to implement schedule optimization, and we are actively hiring and safety training experienced drivers to increase hauling hours in response to new demand from our growing customer base. We are making good progress with new capacity contracts with existing and new customers for our existing and planned new disposal facility locations. Over the next few months, we hope to expand our fleet of water hauling and storage equipment rolling stock to match our growing capacity of Class II SWD wells. We are excited with our prospects, and we look forward to updating our shareholders as we continue and close our pipeline of transactions."
About GreenHunter Water, LLC (a wholly owned subsidiary or GreenHunter Energy, Inc.)
GreenHunter Water, LLC provides Total Water Management Solutions™ in the oilfield. An understanding that there is no single solution to E&P fluids management shapes GreenHunter's technology-agnostic approach to services. In addition to licensing of and joint ventures with manufacturers of mobile water treatment systems (Frac-Cycle™), GreenHunter Water is expanding capacity of salt water disposal facilities, next-generation modular above-ground storage tanks (MAG Tank™), advanced hauling and fresh water logistics services—including 21st Century tracking technologies (RAMCAT™) that allow Shale producers to optimize the efficiency of their water resource management and planning while complying with emerging regulations and reducing cost.
Additional information about GreenHunter Water may be found at www.GreenHunterWater.com
Any statements in this press release about future expectations and prospects for GreenHunter Energy and its business and other statements containing the words "believes," "anticipates," "plans," "expects," "will" and similar expressions constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including the substantial capital expenditures required to fund its operations, the ability of the Company to implement its business plan, government regulation and competition. GreenHunter Energy undertakes no obligation to update these forward-looking statements in the future.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
For the Three Months Ended March 31,
Water disposal revenue $ 739,356 $ –
Transportation revenue 1,122,636 –
Storage rental revenue and other 406,523 –
Total revenues 2,268,515 –
COST OF SERVICES PROVIDED:
Cost of services provided 1,326,574 –
Depreciation expense 192,292 47,588
Selling, general and administrative 1,197,434 1,125,742
Total costs and expenses 2,716,300 1,173,330
OPERATING LOSS (447,785 ) (1,173,330 )
Interest and other income 2 4,851
Interest, accretion and other expense (205,681 ) (185,224 )
Unrealized gain (loss) on convertible securities – 51,762
Total other income (expense) (205,679 ) (128,611 )
Net loss (653,464 ) (1,301,941 )
Preferred stock dividends (195,404 ) (172,056 )
Net loss to common stockholders (848,868 ) (1,473,997 )
Weighted average shares outstanding, basic and diluted 27,059,348 22,861,204
Basic and diluted loss per share:
Net loss per share $ (0.03 ) $ (0.06 )
Cash and cash equivalents $ 2,419,784 $ 84,823
Total current assets 4,820,893 570,991
Net fixed assets 29,867,526 20,892,668
Total assets 36,380,873 23,166,080
Total current liabilities 17,762,490 14,272,630
Total long-term liabilities 5,824,112 2,076,119
Total stockholders' equity $ 12,766,702 $ 6,817,331
SUMMARY PRO-FORMA DATA
Total operating revenue $ 4,627,602 $ 783,385
Total operating costs and expenses 4,791,448 1,766,809
Operating loss (163,846 ) (983,424 )
Interest expense and other (248,304 ) (213,861 )
Net income (loss) (412,150 ) (1,197,285 )
Dividends on preferred stock (222,904 ) (227,056 )
Net income (loss) attributable to common stock holders $ (635,054 ) $ (1,424,341 )
Net income (loss) per share, basic & diluted $ (0.02 ) $ (0.06 )
Friday, April 27th, 2012 Uncategorized Comments Off on GreenHunter Energy (GRH) Reports First Quarter 2012 Financial and Operating Results
Cobra Electronics (COBR) Reports Increased First Quarter Results
CHICAGO, April 27, 2012 /PRNewswire/ — Cobra Electronics Corporation (NASDAQ: COBR), a leading global designer and marketer of mobile communications and navigation products, today reported net income of $339,000, or $0.05 per share, for the first quarter of 2012 as compared to a net loss of $819,000, or $0.13 per share, for the first quarter of 2011. In addition, operating income of $161,000 was achieved for the current quarter as compared to an operating loss of $822,000 in the same quarter last year. This significant improvement in operating income reflected an increase in net sales to $26.4 million from $22.4 million in the first quarter of 2011 and an increase in gross margin to 28.7 percent from 26.0 percent in the prior year's first quarter.
For the first quarter of 2012, consolidated net sales increased by $4.0 million, or 17.7 percent, with the Cobra segment reporting an increase in net sales of $4.3 million, or 23.2 percent, and the Performance Products Limited ("PPL") segment reporting a decrease of $362,000, or 9.7 percent. The sales increase for the Cobra segment included higher European sales as well as higher domestic sales of Two Way Radios, Citizens Band Radios, Phone products and Detection products. European sales included in the Cobra segment more than doubled reflecting significantly higher Detection and Two Way Radio sales. Higher domestic Citizens Band Radio sales included sales of the new 25 LX, which is based on the popular 29 LX introduced last year, while the increase in Phone product sales included sales of wireless headsets to help professional drivers comply with new legislation regarding hands free mobile phone usage. The PPL sales decline was attributable to lower sales of Truckmate™ navigation products, however, this was partially offset by higher sales of Snooper Shotsaver™golf GPS units.
"We are pleased to report an operating income in the current quarter, our best first quarter financial performance since 2008. This was driven by significant increases in net sales and gross margin over the first quarter of last year that resulted from the continued success of our new and award winning existing products as well as new and expanded distribution, particularly in Europe," said Jim Bazet, Cobra's Chairman and Chief Executive Officer.
Consolidated gross margin increased to 28.7 percent from 26.0 percent in the prior year's first quarter primarily as a result of an improved product mix in both segments. The gross margin for the Cobra segment improved to 27.4 percent from 25.2 percent in the first quarter of 2011 as higher margin products, such as iRadar™, recorded significant sales increases. PPL's gross margin increased to 38.1 percent from 30.1 percent last year reflecting both an improved product mix and reduced amortization expense for intangible assets that were included in the original purchase price of PPL.
Selling, general and administrative expenses increased to $7.4 million in the current quarter from $6.7 million in the prior year's first quarter. Variable selling expenses increased consistent with the net sales increase, while higher fixed expenses, principally in the Cobra segment, included increases in employee compensation expenses, legal fees as well as media and trade show expenses, all of which were necessary in order to support continued strong sales growth.
Other income increased $229,000 compared to the prior year's quarter primarily due to a $455,000 gain on the cash surrender value of life insurance that the Company owns for the purpose of funding deferred compensation programs for some current and former officers of the Company as compared to a $220,000 gain in the first quarter of 2011. A tax provision of $62,000 was recorded in the current quarter as compared to a $7,000 tax benefit in the first quarter of 2011 mainly due to higher income for Cobra Electronics Europe Limited.
Interest-bearing debt was $13.4 million as of March 31, 2012 compared to $13.0 million at March 31, 2011. Cash on hand at March 31, 2012 was $1.2 million as compared to $1.1 million at March 31, 2011. Inventory at the end of the first quarter increased to $30.2 million from $28.8 million the prior year and accounts receivable at the end of the quarter were $17.0 million, an increase from $16.2 million one year earlier.
In discussing the outlook for the second quarter of 2012, as well as the entire year, Mr. Bazet said, "The Company anticipates better results in the second quarter of 2012 than in the second quarter of 2011. The Company also expects to achieve higher profitability in 2012 driven by the introduction of innovative and award winning new products as well as new and expanded distribution and marketing channels. In addition, we feel that the continued improvement in the global economy will favorably impact our business in 2012."
Cobra will be conducting a conference call on April 27, 2012 at 11:00 a.m. EDT to discuss first quarter results as well as its current strategies and outlook. The call can also be accessed live or through replay via the Internet at http://www.cobra.com.
About Cobra Electronics
Cobra Electronics is a leading global designer and marketer of communication and navigation products, with a track record of delivering innovative and award-winning products. Building upon its leadership position in the GMRS/FRS two-way radio, radar detector and Citizens Band radio industries, Cobra identified new growth opportunities and has aggressively expanded into the marine market and has expanded its European operations. The Consumer Electronics Association, Forbes and Deloitte & Touche have all recognized Cobra for the company's innovation and industry leadership. To learn more about Cobra Electronics, please visit the Cobra site at www.cobra.com.
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to risks and uncertainties. Actual results may differ materially from these expectations due to factors such as the acceptance of Cobra's new and existing products by customers, the continued success of Cobra's cost containment efforts and the continuation of key distribution channel relationships. Please refer to Cobra's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K, for a more detailed discussion of factors that may affect Cobra's performance.
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts, unaudited)
Earnings (loss) from operations
Other (expense) income:
Earnings (loss) before taxes
Tax provision (benefit)
Net earnings (loss)
Net earnings (loss) per common share:
(in thousands, unaudited)
Inventories, net
Property, plant and equipment, net
LIABILITIES AND SHAREHOLDERS' EQUITY:
Deferred taxes
Shareholders' equity – Cobra
Non-controlling interest
SOURCE Cobra Electronics Corporation
Friday, April 27th, 2012 Uncategorized Comments Off on Cobra Electronics (COBR) Reports Increased First Quarter Results
SEFE, Inc. (SEFE) Provides Overview of Electrostatic Motor
SEFE, Inc. (OTCBB: SEFE.OB) ("SEFE") ("The Company"), a technology- and solutions-driven sustainability company, has provided an outline of its electrostatic motor and how this component fits into the design of the company's flagship Harmony III product.
In layman's terms, the motor is designed to operate as a generator when supplied with a high voltage-low current power source. SEFE's lead engineer, Mike Hurowitz, said, "Our team's ongoing task is threefold: continued research into the science behind our technology; the development and testing of the various components of Harmony; as well as the protection of these developments as they relate to the product that we are building and the space as a whole."
As to the motor's role in the overall system, Hurowitz continued, "This motor will be a key piece of the electrical generation hardware for SEFE's Harmony III system. It will work in tandem with our patented dynamic electrical converter to produce usable AC power directly for immediate consumption, or grid integration. The system can also be buffered with a storage medium."
Friday, April 27th, 2012 Uncategorized Comments Off on SEFE, Inc. (SEFE) Provides Overview of Electrostatic Motor
Employee-Elected Member Resigns From TORM's (TRMD) Board of Directors
COPENHAGEN, Denmark, April 27, 2012 (GLOBE NEWSWIRE) — At TORM's Annual General Meeting (AGM), the number of Board members elected by the AGM was reduced from six to three. Section 120 of the Danish Companies Act provides that the majority of the Board members shall be elected by the AGM. Consequently, the number of employee-elected Board members has been changed from three to two, and therefore Peter Abildgaard has resigned from the Board of Directors. Furthermore, Anne Rasmussen is no longer employed by TORM and therefore has resigned as alternate.
"On behalf of the Company, I would like to thank Peter Abildgaard for his great efforts in the Board, since he was elected in April 2007," says Chairman N. E. Nielsen.
Accordingly, the Board of Directors is composed as follows:
N. E. Nielsen (Chairman)
Christian Frigast (Deputy Chairman)
Jesper Jarlbaek
Kari Millum Gardarnar (employee-elected Board member)
Rasmus Johannes Hoffmann (employee-elected Board member)
Contact TORM A/S
N. E. Nielsen, Chairman, tel.: + 45 4243 3343
C. Sogaard-Christensen, IR, tel.: +45 3076 1288
Tuborg Havnevej 18
DK-2900 Hellerup, Denmark
Tel.: +45 3917 9200 / Fax: +45 3917 9393
www.torm.com
About TORM
TORM is one of the world's leading carriers of refined oil products as well as a significant player in the dry bulk market. The Company runs a fleet of approximately 140 modern vessels in cooperation with other respected shipping companies sharing TORM's commitment to safety, environmental responsibility and customer service.
TORM was founded in 1889. The Company conducts business worldwide and is headquartered in Copenhagen, Denmark. TORM's shares are listed on NASDAQ OMX Copenhagen (ticker: TORM) and on NASDAQ in New York (ticker: TRMD). For further information, please visit www.torm.com.
Safe Harbor statements as to the future
Matters discussed in this release may constitute forward-looking statements. Forward-looking statements reflect our current views with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and statements other than statements of historical facts. The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management's examination of historical operating trends, data contained in our records and other data available from third parties. Although TORM believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, TORM cannot guarantee that it will achieve or accomplish these expectations, beliefs or projections.
Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward- looking statements include the conclusion of definitive waiver documents with our lenders, the strength of the world economy and currencies, changes in charter hire rates and vessel values, changes in demand for "tonne miles" of oil carried by oil tankers, the effect of changes in OPEC's petroleum production levels and worldwide oil consumption and storage, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled dry-docking, changes in TORM's operating expenses, including bunker prices, dry-docking and insurance costs, changes in the regulation of shipping operations, including requirements for double hull tankers or actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, potential disruption of shipping routes due to accidents and political events or acts by terrorists.
Risks and uncertainties are further described in reports filed by TORM with the US Securities and Exchange Commission, including the TORM Annual Report on Form 20-F and its reports on Form 6-K.
Forward-looking statements are based on management's current evaluation, and TORM is only under an obligation to update and change the listed expectations to the extent required by law.
Friday, April 27th, 2012 Uncategorized Comments Off on Employee-Elected Member Resigns From TORM's (TRMD) Board of Directors
Kratos (KTOS) Successfully Test Fires New Oriole Rocket System Variant
SAN DIEGO, April 25, 2012 (GLOBE NEWSWIRE) — Kratos Defense & Security Solutions, Inc. (Nasdaq:KTOS), a leading National Security Solutions provider, announced today the successful static test firing of a Guided Oriole rocket system produced by its Rocket Support Services (RSS) business unit located in Glen Burnie, Maryland. This test firing was the culmination of an internal program funded by Kratos to incorporate a thrust vector control system and flight termination system into the Oriole rocket system. Kratos' strategic plan is focused on unique and differentiated National Security related technology, solutions and product offerings, including C5ISR, Ballistic Missile Defense (BMD), Unmanned Systems and Cyber Warfare.
The Oriole rocket motor and the thrust vector control system are manufactured by Alliant Techsystems Inc. (ATK) under contract to Kratos, and the static test firing was conducted by ATK at its Rocket Center, West Virginia, facility. All previously disclosed Oriole rocket efforts have been outfitted with a static nozzle control system which, for certain safety and other considerations, limited the Oriole rocket to address certain unique and specific National Security related threats and missions. To date, nineteen Oriole rockets have been launched in the static or fixed nozzle configuration: an original demonstration flight, seventeen as low-cost targets for testing of the U.S. Navy sea-based Aegis Ballistic Missile Defense System, and one by NASA as part of a scientific research mission.
By incorporating the new thrust vector control system and an associated flight termination system, this new, Guided Oriole variant will be able to serve as a low-cost BMD target for multiple additional ballistic missile threat scenarios, including land-based defensive systems, AEGIS Ashore, THAAD, PAC-3 and other non-disclosable threats. With this new capability, the Oriole rocket system portfolio will be available and qualified for significantly increased use as a low-cost BMD target and for more sophisticated national security related, scientific and technology research missions.
Dave Carter, President of Kratos' Defense Engineering Solutions division, stated, "The Oriole rocket system has proven to be a very robust and versatile rocket system supporting technology research and missile defense target programs. The successful static test firing clears the way for the first flight of the Guided Oriole, which is planned to occur early next year."
Eric DeMarco, Kratos' President and Chief Executive Officer, said, "We are very pleased with the successful static test firing of our newest and most capable Guided Oriole rocket system. This was one of the largest internally funded programs in Kratos, and this very successful test is a great achievement for the entire team as we complete this effort. The Oriole rocket system has served well as a low-cost target vehicle for the Aegis Program, BMD programs and certain other programs, and with the addition of this new and unique guidance capability the Oriole will be poised to similarly serve the broader ballistic missile defense and specialized national security related defense community."
About Kratos Defense & Security Solutions
Kratos Defense & Security Solutions, Inc. (Nasdaq:KTOS) is a specialized National Security technology business providing mission critical products, services and solutions for United States National Security priorities. Kratos' core capabilities are sophisticated engineering, manufacturing and system integration offerings for National Security platforms and programs. Kratos' areas of expertise include Command, Control, Communications, Computing, Combat Systems, Intelligence, Surveillance and Reconnaissance (C5ISR), satellite communication systems, unmanned systems, cyber warfare, cyber security, information assurance, critical infrastructure security and weapons systems sustainment. Kratos has primarily an engineering and technical oriented work force of approximately 4,000, many of whom hold an active National Security clearance, including Secret, Top Secret and higher. The vast majority of Kratos' work is performed on a military base, in a secure facility or at a critical infrastructure location. Kratos' primary end customers are United States Federal Government agencies, including the Department of Defense, classified agencies, intelligence agencies and Homeland Security related agencies. News and information are available at www.KratosDefense.com.
The Kratos Defense & Security Solutions, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3519
Notice Regarding Forward-Looking Statements
Certain statements in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of the management of Kratos and are subject to significant risks and uncertainty, including risks related to product performance, general economic conditions and cutbacks in government spending. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Kratos undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Kratos in general, see the risk disclosures in the Annual Report on Form 10-K of Kratos for the year ended December 25, 2011, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the SEC by Kratos.
CONTACT: Press Contact:
Yolanda White
Investor Information:
investor@kratosdefense.com
Wednesday, April 25th, 2012 Uncategorized Comments Off on Kratos (KTOS) Successfully Test Fires New Oriole Rocket System Variant
Quantum's (QTWW) Schneider Power Subsidiary Acquires 10 MW Wind Farm in Ontario
IRVINE, Calif., April 25, 2012 /PRNewswire/ — Quantum Fuel Systems Technologies Worldwide, Inc. (NASDAQ: QTWW) today announced that its wholly-owned subsidiary, Schneider Power Inc. ("Schneider"), a leading developer and owner of renewable energy power plants, backed by the Schneider family's 120 years of experience in renewable energy has acquired a newly constructed 10 megawatt utility-scale wind farm in Ontario, Canada.
The Zephyr wind farm ("Zephyr") generation facility will supply electricity to the Ontario Power Authority under a 20-year renewable energy purchase contract, generating in excess of $3 million in estimated annual revenues. The project commenced power generation testing at 25% capacity on April 20th 2012, and is projected to go into full production on or about May 5th, producing more than 26.7 Giga watt-hours of clean electricity per year, enough to meet the needs of 3,000 Canadian households. The project is financed by Samsung Heavy Industries of Korea.
"This acquisition is part of our long-term strategy to evolve into a leading independent power producer in North America," said Alan P. Niedzwiecki, the President and CEO of Quantum. "We seek to increase our revenues and nameplate capacity under 100% ownership, leveraging our experience in the fast-track development of profitable renewable energy projects."
"We are pleased and honored to be working with Samsung for financing this project," said Thomas Schneider, the President of Schneider Power. "Quantum and Schneider Power are active in several renewable energy projects in various stages of development, and we are actively pursuing additional opportunities in Ontario with its attractive feed in tariff programs."
The Zephyr wind farm, located in the Brooke-Alvinston Township in the Canadian province of Ontario,will be operated by Zephyr Farms Limited, a wholly-owned subsidiary of Schneider Power. The project utilizes high efficiency, 2.5 megawatt capacity Samsung wind turbines.
About Quantum
Quantum Fuel Systems Technologies Worldwide, Inc., a fully integrated alternative energy company, is a leader in the development and production of advanced propulsion systems, energy storage technologies, and alternative fuel vehicles. Quantum's wholly owned subsidiary, Schneider Power Inc., and affiliate Asola Solarpower GmbH complement Quantum's emerging renewable energy presence through the development and ownership of wind and solar farms, and manufacture of high efficiency solar modules. Quantum's portfolio of technologies includes electronic controls, hybrid electric drive systems, natural gas and hydrogen storage and metering systems and alternative fuel technologies that enable fuel efficient, low emission hybrid, plug-in hybrid electric, fuel cell, and natural gas vehicles. Quantum's powertrain engineering, system integration, vehicle manufacturing, and assembly capabilities provide fast-to-market solutions to support the production of hybrid and plug-in hybrid, hydrogen-powered hybrid, fuel cell, natural gas fuel, and specialty vehicles, as well as modular, transportable hydrogen refueling stations. Quantum's customer base includes automotive OEMs, dealer networks, fleets, aerospace industry, military and other government entities, and other strategic alliance partners.
Forward Looking Statements:
This press release contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements included in this report, other than those that are historical, are forward-looking statements and can generally be identified by words such as "may," "could," "will," "should," "assume," "expect," "anticipate," "plan," "intend," "believe," "predict," "estimate," "forecast," "outlook," "potential," or "continue," or the negative of these terms, and other comparable terminology. Various risks and other factors could cause actual results, and actual events that occur, to differ materially from those contemplated by the forward looking statements. The risk factors include changes, adjustments or corrections made to the assumptions used in determining the estimated annual revenues that the Zephyr wind farm will generate, changes in Ontario's feed-in tariff program, Schneider Power's and Zephyr Farms' ability to operate and maintain the Zephyr wind farm, Zephyr Farms' ability to perform its obligations under the OPA power purchase agreement and to generate and supply electricity to the OPA in accordance with the terms of the supply contract, the OPA's ability to purchase and pay for the electricity generated by the wind farm, Schneider Power's and Zephyr Farms' ability to repay the Samsung construction loan, continued trouble-free service of the wind turbines and stability of the wind regime. The Company undertakes no obligation to update the information in this press release to reflect events or circumstances after the date hereof or to reflect the occurrence of anticipated or unanticipated events.
More information can be found about the products and services of Quantum and Schneider Power at http://www.qtww.com/ or you may contact:
Brion D. Tanous
Dale Rasmussen
Principal, CleanTech IR, Inc.
Email: btanous@cleantech-ir.com
Email: drasmussen@qtww.com
©2012 Quantum Fuel Systems Technologies Worldwide, Inc.
Advanced Technology Center
17872 Cartwright Road, Irvine, CA 92614
Wednesday, April 25th, 2012 Uncategorized Comments Off on Quantum's (QTWW) Schneider Power Subsidiary Acquires 10 MW Wind Farm in Ontario
Banro's (BAA) Provides Operations Updates for Twangiza Mine and Namoya Mine Development Project, DRC
TORONTO, ONTARIO–(Marketwire – April 25, 2012) – Banro Corporation ("Banro" or the "Company") (TSX:BAA)(NYSE Amex:BAA) provides an operations update for its Twangiza oxide mine and its Namoya development project, both located on the Twangiza – Namoya gold belt in the Democratic Republic of the Congo (the "DRC").
Twangiza
First quarter 2012 gold output from Twangiza oxide mine through the commissioning process was 17,412 ounces at an average cash cost of $613/oz and average grade of 3.1g/t Au with recoveries reaching 84% by the end of the quarter. Production is forecast to increase to the planned 10,000 ounce/month level in Q2, following the replacement of the No. 1 ball mill motor in April, which delayed the ramp up to full production. Banro anticipates signing off on normalised commercial production during Q2.
"We are pleased with Twangiza's Q1 ramp-up progress and continue to be confident that we can achieve our 2012 target production levels and cash costs," commented CEO Simon Village. "Although cash costs of US$613/oz for the first quarter are respectable relative to the industry, and considering the mine is not yet operating at full capacity, having now operated for a full quarter at Twangiza it is clear that there is further opportunity for meaningful cost reductions. We believe these cost reductions will bring costs under the $550/oz. level. Therefore, despite the slightly slower than expected ramp-up to full production, we expect to achieve levels of cash-flow contribution from Twangiza in our target range owing to a gold price that is higher than was originally anticipated during at the feasibility stage and our focus on reducing costs."
Namoya
Construction of the Namoya mine, at the southern end of the Twangiza-Namoya gold belt, is ongoing. Process design has been signed off and engineering design has been secured to allow ordering of long-lead items. All major earthworks equipment has now been procured and mobilization of this equipment to site is underway. The project team is fully staffed and Namoya is on track for first gold production in the first quarter of 2013 with planned ramp-up to full production of 10,000 – 12,000 ounces of gold per month by the second quarter of 2013.
Louis Owusu Gyawu, Mine Planning Superintendent, an employee and "qualified person" (as such term is defined in National Instrument 43-101), has reviewed and approved the technical information in this press release.
Banro Corporation is a Canadian gold mining company focused on production from the Twangiza oxide mine and development of four additional major, wholly-owned gold projects, each with mining licenses, along the 210 kilometre long Twangiza-Namoya gold belt in the South Kivu and Maniema provinces of the Democratic Republic of the Congo. Led by a proven management team with extensive gold and African experience, Banro's plans include the construction of its second gold mine at Namoya, at the south end of this gold belt, as well as the development of two other projects, Lugushwa and Kamituga, in the central portion of the belt. The initial focus of the Company is on oxides, which attract a lower technical and financial risk to the Company and will also maximize cash flows in order to develop the belt with minimal further dilution to shareholders. All business activities are followed in a socially and environmentally responsible manner.
For further information, please visit our website at www.banro.com.
Cautionary Note to U.S. Investors
The United States Securities and Exchange Commission (the "SEC") permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. Certain terms are used by the Company, such as "Measured", "Indicated", and "Inferred" "Resources", that the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. U.S. Investors are urged to consider closely the disclosure in the Company's Form 40-F Registration Statement, File No. 001-32399, which may be secured from the Company, or from the SEC's website at http://www.sec.gov/edgar.shtml.
Cautionary Note Concerning Forward-Looking Statements
This press release contains forward-looking statements. All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding estimates and/or assumptions in respect of gold production, and costs, estimated project economics, projected timing of future gold production and the Company's development plans and objectives) are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things: uncertainty of estimates of capital and operating costs, production estimates and estimated economic return; the possibility that actual circumstances will differ from the estimates and assumptions used in the economic studies of the Company's projects; failure to establish estimated mineral resources or mineral reserves; fluctuations in gold prices and currency exchange rates; inflation; gold recoveries being less than those indicated by the metallurgical testwork carried out to date (there can be no assurance that gold recoveries in small scale laboratory tests will be duplicated in large tests under on-site conditions or during production);
uncertainties relating to the availability and costs of financing needed in the future; changes in equity markets; political developments in the DRC; lack of infrastructure; failure to procure or maintain, or delays in procuring or maintaining, permits and approvals; lack of availability at a reasonable cost or at all, of plants, equipment or labour; inability to attract and retain key management and personnel; changes to regulations affecting the Company's activities; the uncertainties involved in interpreting drilling results and other geological data; and the other risks disclosed under the heading "Risk Factors" and elsewhere in the Company's annual information form dated March 26, 2011 filed on SEDAR at www.sedar.com and EDGAR at www.sec.gov. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.
Cautionary Note Concerning Resource Estimates
The mineral resource figures referred to in this press release are estimates and no assurances can be given that the indicated levels of gold will be produced. Such estimates are expressions of judgment based on knowledge, mining experience, analysis of drilling results and industry practices. Valid estimates made at a given time may significantly change when new information becomes available. While the Company believes that the resource estimates included in this press release are well established, by their nature resource estimates are imprecise and depend, to a certain extent, upon statistical inferences which may ultimately prove unreliable.
Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that mineral resources can be upgraded to mineral reserves through continued exploration.
Due to the uncertainty that may be attached to inferred mineral resources, it cannot be assumed that all or any part of an inferred mineral resource will be upgraded to an indicated or measured mineral resource as a result of continued exploration. Confidence in the estimate is insufficient to allow meaningful application of the technical and economic parameters to enable an evaluation of economic viability worthy of public disclosure (except in certain limited circumstances). Inferred mineral resources are excluded from estimates forming the basis of a feasibility study.
Wednesday, April 25th, 2012 Uncategorized Comments Off on Banro's (BAA) Provides Operations Updates for Twangiza Mine and Namoya Mine Development Project, DRC
iParty Corp. (IPT) Reports Financial Results for First Quarter 2012
iParty Corp. (NYSE Amex: IPT – news), a leading party goods retailer, today reported financial results for its first quarter of fiscal year 2012, which ended on March 31, 2012.
First Quarter 2012 Highlights
Comparable store sales increase for the first quarter of 2012 of 8.6%.
Consolidated revenues of $15.8 million for the first quarter of 2012, a 4.4% increase compared to the first quarter of 2011.
Reopening of flood damaged store in West Lebanon, New Hampshire.
Net loss of $1.2 million for the first quarter of 2012, compared to a net loss of $1.5 million for the first quarter of 2011.
Sal Perisano, iParty's Chairman and Chief Executive Officer, stated, "The first quarter of 2012 was a strong one for iParty with significantly improved same store sales. Good weather, two regional teams in the Super Bowl, a Saturday St Patrick's Day and an early Easter contributed to a comparable store sales increase of 8.6%, despite not having the benefit of a sales run up for New Year's Eve that occurred in the first quarter of 2011. The net result of our strong sales performance this quarter, along with effective expense control, was the improvement of our net loss for the first quarter by approximately $300 thousand compared to last year's net loss."
Mr. Perisano further stated, "With regard to our more recent store additions, our Boston stores on Boylston Street and in South Bay and our new store in Manchester, Connecticut are seeing very strong comparative sales. The sales performance of these new stores is exceeding our expectations and we believe that they will deliver an enhanced profit contribution for 2012. Also, we expanded our e-commerce offering in the first quarter beyond Halloween and related merchandise and continue to see improved e-commerce sales. Consistent with our plan and on the strength of our first quarter, we are actively exploring new locations to add to our base this year."
Operating Results
For the first quarter of 2012, consolidated revenues were $15.75 million, a 4.4% increase compared to $15.09 million for the first quarter of 2011. Comparable store sales in the first quarter of 2012 increased 8.6% compared to the year-ago period. Consolidated gross profit margin was unchanged at 36.4% for the first quarter of 2012 compared to the same period in 2011. Consolidated net loss for the first quarter of 2012 improved approximately $300,000 to $1.24 million, or $0.05 per basic and diluted share, compared to consolidated net loss of $1.51 million, or $0.06 per basic and diluted share, for the first quarter in 2011. On a non-GAAP basis, net loss for the first quarter of 2012 before interest, taxes, depreciation and amortization ("EBITDA") was $834 thousand, compared to EBITDA net loss of $1.05 million for the first quarter in 2011. EBITDA is calculated as net income (loss), as reported under United States generally accepted accounting principles ("GAAP"), plus net interest expense, depreciation and amortization and income taxes. The schedule accompanying this release provides the reconciliation of net loss for the first quarter of 2012 and 2011, under GAAP to a non-GAAP, EBITDA basis.
About iParty Corp.
Headquartered in Dedham, Massachusetts, iParty Corp. is a party goods retailer that operates 52 iParty retail stores in New England and Florida and an internet site (www.iparty.com) for costume and party goods and party planning. iParty's aim is to make throwing a successful event both stress-free and fun. With an extensive assortment of party supplies and costumes in our stores and available at our online store, iParty offers consumers a sophisticated, yet fun and easy-to-use, resource to help them customize any party, including birthday bashes, Easter get-togethers, graduation parties, summer barbecues and, of course, Halloween. In addition to the extensive assortment of costume and other merchandise available through iParty's internet site, our web site focuses on increasing customer visits to our retail stores by highlighting the ever changing store product assortment for all occasions and seasons and featuring monthly coupons, store and online promotions and ideas and themes, offering consumers an easy and fun approach to any party. iParty aims to offer reliable, time-tested knowledge of party-perfect trends, and superior customer service to ensure convenient and comprehensive merchandise selections for every occasion. Please visit our site at www.iparty.com.
Non-GAAP Financial Measures
Pursuant to the requirements of Regulation G, we have provided below reconciliations of any non-GAAP financial measures we use in this press release to the most directly comparable GAAP financial measures. We believe that our presentation of EBITDA, which is a non-GAAP financial measure, is an important supplemental measure of operating performance to investors. The discussion below defines this term, why we believe it is a useful measure of our performance, and explains certain limitations on the use of non-GAAP financial measures such as our use of EBITDA.
EBITDA is a commonly used measure of performance in our industry which we believe, when considered with measures calculated in accordance with United States generally accepted accounting principles ("GAAP"), gives investors a more complete understanding of operating results before the impact of investing and financing transactions and income taxes and facilitates comparisons between us and our competitors. EBITDA is a non-GAAP financial measure and has been presented in this release because our management and the audit committee of our board of directors use this financial measure in monitoring and evaluating our ongoing financial results and trends. Our management and audit committee believe that this non-GAAP operating performance measure is useful for investors because it enhances investors' ability to analyze trends in our business and compare our financial and operating performance to that of our peers.
Limitations on the Use of Non-GAAP Measures
The use of EBITDA has certain limitations. Our presentation of EBITDA may be different from the presentation used by other companies and therefore comparability may be limited. Depreciation expense for various long-term assets, interest expense, income taxes and other items have been and will be incurred and are not reflected in the presentation of EBITDA. Each of these items should also be considered in the overall evaluation of our results. Additionally, EBITDA does not consider capital expenditures and other investing activities and should not be considered as a measure of our liquidity. In particular, we have opened new stores through the expenditure of capital funded with borrowings under our bank line of credit. Our results of operations, therefore, reflect significant charges for depreciation, amortization and interest expense. EBITDA, which excludes these expenses, provides helpful information about the operating performance of our business, but EBITDA does not purport to represent operating income or cash flow from operating activities, as those terms are defined under GAAP, and should not be considered as an alternative to those measurements as an indicator of our performance.
Accordingly, EBITDA should be used in addition to and in conjunction with results presented in accordance with GAAP and should not be considered as an alternative to net income, operating income, cash flows from operating activities or any other operating performance measure prescribed by GAAP, nor should these measures be relied upon to the exclusion of GAAP financial measures. EBITDA reflects additional ways of viewing our operations that we believe, when viewed with our GAAP results and the reconciliations to the corresponding GAAP financial measures, provides a more complete understanding of factors and trends affecting our business than could be obtained absent this disclosure. We strongly encourage investors to review our financial information in its entirety and not to rely on a single financial measure.
RECONCILIATION OF NON-GAAP MEASURES
Net loss, as reported under GAAP $ (1,235,266 ) $ (1,510,911 )
plus, Interest expense, net 49,330 73,182
plus, Depreciation and amortization 352,176 384,325
plus, Income taxes – –
EBITDA net loss, non-GAAP $ (833,760 ) $ (1,053,404 )
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. You can identify these statements by the fact that they use words such as "anticipate," "believe," "estimate," "expect," "intend," "project," "plan," "outlook," and other words and terms of similar meaning. These statements involve a number of risks and uncertainties that could cause actual results to differ materially from the potential results discussed in the forward-looking statements. Among the factors that could cause actual results and outcomes to differ materially from those contained in such forward-looking statements are the following: changes in consumer confidence and consumer spending patterns, particularly those impacting the New England region and Florida, which may result from, among other factors, rising or sustained high levels of unemployment, access to consumer credit, mortgage foreclosures, credit market turmoil, declines in the stock market, general feelings and expectations about the overall economy, and unseasonable weather; disruptions to our most important selling season, Halloween; the successful implementation of our growth and marketing strategies; our ability to access our existing credit line or to obtain additional financing, if required, on acceptable terms and conditions; rising commodity prices, especially oil and gas prices; effect of Chinese inflation on our suppliers and product pricing; our relationships with our third party suppliers; the failure of our inventory management system and our point of sale system; competition from other party supply stores and stores that merchandise and market party supplies, including big discount retailers, dollar store chains, and temporary Halloween merchandisers; risks related to e-commerce; the availability of retail store space on reasonable lease terms; and compliance with evolving federal securities, accounting, and stock exchange rules and regulations applicable to publicly-traded companies listed on the NYSE Amex. For a more detailed discussion of risks and uncertainties which could cause actual results to differ from those contained in the forward-looking statements, see Item 1A, "Risk Factors" of iParty's most recently filed Annual Report on Form 10-K for the fiscal year ended December 31, 2011 and our other periodic reports filed with the SEC. iParty is providing this information as of this date, and does not undertake to update the information included in this press release, whether as a result of new information, future events or otherwise.
iPARTY CORP.
Revenues $ 15,753,745 $ 15,092,128
Operating costs:
Cost of products sold and occupancy costs 10,026,180 9,600,871
Marketing and sales 5,210,909 5,136,742
General and administrative 1,702,376 1,786,022
Operating loss (1,185,720 ) (1,431,507 )
Change in fair value of warrant liability (216 ) (6,222 )
Interest expense, net (49,330 ) (73,182 )
Net loss $ (1,235,266 ) $ (1,510,911 )
Loss per share:
Basic and diluted $ (0.05 ) $ (0.06 )
Weighted-average shares outstanding:
Basic and diluted 24,408,594 24,319,464
Mar 31, 2012 Dec 31, 2011
Cash $ 62,450 $ 63,650
Restricted cash 523,635 819,604
Accounts receivable 707,089 1,377,234
Inventories 16,612,714 15,965,507
Prepaid expenses and other assets 1,510,572 1,415,780
Deferred income tax asset 46,762 46,762
Total current assets 19,463,222 19,688,537
Intangible assets, net 546,765 626,900
Other assets 311,068 333,731
Deferred income tax asset 540,841 540,841
Total assets $ 23,465,713 $ 23,854,095
Accounts payable and book overdrafts $ 6,707,479 $ 5,970,015
Accrued expenses 2,133,309 2,295,467
Current portion of capital lease obligations 2,307 4,613
Borrowings under line of credit 5,577,293 5,366,512
Long-term liabilities:
Deferred rent 1,519,158 1,504,973
Convertible preferred stock 13,012,668 13,012,668
Common stock 24,409 24,409
Additional paid-in capital 53,036,492 52,987,574
Accumulated deficit (58,547,402 ) (57,312,136 )
Total stockholders' equity 7,526,167 8,712,515
Total liabilities and stockholders' equity $ 23,465,713 $ 23,854,095
Wednesday, April 25th, 2012 Uncategorized Comments Off on iParty Corp. (IPT) Reports Financial Results for First Quarter 2012
VistaGen (VSTA) Secures Key U.S. Patent Covering Stem Cell Technology Methods Used to Test Drug Candidates for Liver Toxicity
SOUTH SAN FRANCISCO, CA — (Marketwire) — 04/25/12 — VistaGen Therapeutics, Inc. (OTCBB: VSTA) (OTCQB: VSTA), a biotechnology company applying stem cell technology for drug rescue, has secured a new United States patent covering the company's proprietary methods used to measure and type the toxic effects produced by drug compounds in liver stem cells.
Test methods included in this new patent, (U.S. Patent 11/445,733), titled "Toxicity Typing Using Liver Stem Cells," cover all mammalian liver stem cells — rat and mouse cells, for example, in addition to human cells. Liver stem cells used in drug testing can be derived from in vivo tissue or produced from embryonic stem cells (ES) or induced pluripotent stem cells (iPS).
H. Ralph Snodgrass, Ph.D., VistaGen's President and Chief Scientific Officer, said, "This patent covers the monitoring of changes in gene expression as an assay for predicting drug toxicities. It is well known that drugs activate and suppress specific genes, and that the changes in gene expression reflect the mechanism of drug toxicities. The specific sets of genes that are affected become a profile of that drug."
VistaGen's new patent also covers techniques used to develop a database of gene expression profiles of drugs that have the same type of liver toxicity. Using sophisticated "pattern matching" database tools, drug developers can analyze these related profiles to determine "gene expression signatures" that are common and predictive of drugs that produce specific types of toxicity.
"Without this database capability, a drug's single gene expression profile could not be interpreted," Dr. Snodgrass added. "The ability to use liver stem cells to differentiate drug-dependent gene expression profiles, and to compare those profiles of drugs known to induce toxic liver effects, provides a powerful tool for predicting liver toxicity of new drug candidates, including drug rescue variants."
Shawn K. Singh, VistaGen's Chief Executive Officer, stated, "Strong and enforceable intellectual property rights are critical components of our plan to optimize the commercial potential of our Human Clinical Trials in a Test Tube™ platform. This new liver toxicity typing patent further solidifies our growing IP portfolio, and supports the continuing development of LiverSafe 3D™, our human liver cell-based bioassay system, which complements our CardioSafe 3D human heart cell-based bioassay system for heart toxicity."
About VistaGen Therapeutics
VistaGen is a biotechnology company applying human pluripotent stem cell technology for drug rescue and cell therapy. VistaGen's drug rescue activities combine its human pluripotent stem cell technology platform, Human Clinical Trials in a Test Tube™, with modern medicinal chemistry to generate new chemical variants (Drug Rescue Variants) of once-promising small-molecule drug candidates. These are drug candidates discontinued due to heart toxicity after substantial development by pharmaceutical companies, the U.S. National Institutes of Health (NIH) or university laboratories. VistaGen uses its pluripotent stem cell technology to generate early indications, or predictions, of how humans will ultimately respond to new drug candidates before they are ever tested in humans, bringing human biology to the front end of the drug development process.
Additionally, VistaGen's small molecule drug candidate, AV-101, is in Phase 1b development for treatment of neuropathic pain. Neuropathic pain, a serious and chronic condition causing pain after an injury or disease of the peripheral or central nervous system, affects approximately 1.8 million people in the U.S. alone. VistaGen is also exploring opportunities to leverage its current Phase 1 clinical program to enable additional Phase 2 clinical studies of AV-101 for epilepsy, Parkinson's disease and depression. To date, VistaGen has been awarded over $8.5 million from the NIH for development of AV-101.
Visit VistaGen at http://www.VistaGen.com, follow VistaGen at http://www.twitter.com/VistaGen or view VistaGen's Facebook page at http://www.facebook.com/VistaGen
Cautionary Statement Regarding Forward Looking Statements
The statements in this press release that are not historical facts may constitute forward-looking statements that are based on current expectations and are subject to risks and uncertainties that could cause actual future results to differ materially from those expressed or implied by such statements. Those risks and uncertainties include, but are not limited to, risks related to regulatory approvals, the issuance and protection of patents and other intellectual property, the success of VistaGen's ongoing clinical studies, including the safety and efficacy of its drug candidate, AV-101, the failure of future drug rescue and pilot preclinical cell therapy programs related to VistaGen's stem cell technology-based Human Clinical Trial in a Test Tube™ platform, its ability to enter into drug rescue collaborations, risks and uncertainties relating to the availability of substantial additional capital to support VistaGen's research, development and commercialization activities, and the success of its research, development, regulatory approval, marketing and distribution plans and strategies, including those plans and strategies related to AV-101 and any drug rescue variants identified and developed by VistaGen. These and other risks and uncertainties are identified and described in more detail in VistaGen's filings with the Securities and Exchange Commission (SEC). These filings are available on the SEC's website at www.sec.gov. VistaGen undertakes no obligation to publicly update or revise any forward-looking statements.
Shawn K. Singh, J.D.
VistaGen Therapeutics, Inc.
www.VistaGen.com
Investor.Relations@VistaGen.com
Mission Investor Relations
http://www.MissionIR.com
Investors@MissionIR.com
Wednesday, April 25th, 2012 Uncategorized Comments Off on VistaGen (VSTA) Secures Key U.S. Patent Covering Stem Cell Technology Methods Used to Test Drug Candidates for Liver Toxicity
CEDC (CDC) Signs Definitive Agreements for Strategic Alliance with Russian Standard Corporation
MT. LAUREL, N.J., April 23, 2012 /PRNewswire/ — Central European Distribution Corporation (NASDAQ: CEDC) announced today that CEDC and Russian Standard Corporation (via Roust Trading Limited ("Roust Trading")) have signed definitive agreements for a strategic alliance. Russian Standard has agreed to invest US$100,000,000 in CEDC by purchasing a combination of newly issued shares of CEDC common stock and exchangeable notes (exchangeable into common shares of CEDC upon shareholder approval) to be issued by CEDC. In addition, Roust Trading has agreed to purchase up to US$210,000,000 principal amount of newly issued, unsecured CEDC senior notes due July 31, 2016 at a blended interest rate of 6.00%. The proceeds of these investments are required to be used to retire CEDC's 3.00% Senior Convertible Notes due 2013.
This strategic alliance between Russian Standard Corporation and CEDC will create a powerful player in the Russian and Polish alcohol markets with best-in-class portfolios of own vodka brands and partner brands distributed worldwide. The investment by Roust Trading is expected to provide CEDC with the financial resources and capital to repay or repurchase all of its outstanding 3.00% Senior Convertible Notes due 2013. Following completion of these transactions and assuming CEDC receives the shareholder approval described below, Roust Trading and its affiliates may in the future hold approximately 28% of CEDC's outstanding common stock.
"After many months of working on this transaction, we are pleased to announce the signing of definitive agreements today with Russian Standard for a strategic investment that addresses our near term financial obligations. In addition to this, we anticipate further discussions on the combination of our Russian businesses as well as other synergies that can be obtained from this strategic relationship. Our partnership with Mr. Roustam Tariko and Roust Trading, will not only benefit CEDC from the financial and business side but with Mr. Tariko's vast experience in the Russian spirits market, he will represent valuable support for management and the Board in strengthening CEDC's position in the Russian market, as well as in international markets," said William V. Carey, President and Chief Executive Officer of CEDC.
"I am pleased that our discussions have resulted in an exciting new alliance between Russian Standard Corporation and CEDC. While the global spirits market is at the final stage of its consolidation, the process in Russia is just beginning. As a result, customers will be offered an unparalleled choice of quality global alcohol brands and the market should become more transparent with fewer players. Russian Standard Corporation's partnership with CEDC should provide both companies with a number of synergies: not only should we become a strong vodka market player across all categories and a leading importer of alcohol beverages offering one of the most significant portfolios of premium brands in Russia and Poland but we also should have a very effective production and distribution infrastructure in the near future, which should increase our competitiveness on global markets. I am confident that we should be able to quickly complete all phases of the transaction with CEDC," said Roustam Tariko, Founder and Chairman of Russian Standard Corporation.
Terms of the Investment
Pursuant to a securities purchase agreement, Roust Trading will make its investment in CEDC in three stages, subject to typical closing conditions. First, Roust Trading will acquire 5,714,286 shares of CEDC common stock for an aggregate purchase price of US$30 million, or US$5.25 per share, and US$70 million aggregate principal amount of senior notes due March 18, 2013, bearing an interest rate of 3.00% (the "New Debt") to be issued by CEDC. Subject to approval by CEDC shareholders, CEDC or Roust Trading may cause Roust Trading to purchase from CEDC a number of shares of CEDC common stock at a purchase price of US$5.25 per share (which amount will be sufficient to pay the principal amount outstanding of the New Debt plus some or all of the then accrued and unpaid interest thereon) totaling approximately 13,333,333 CEDC shares plus additional shares representing such accrued and unpaid interest on the New Debt. In addition, if shareholder approval is obtained, then (subject to typical closing conditions), Roust Trading will purchase US$102,554,000 aggregate principal amount of senior rollover notes due July 31, 2016 (the "Rollover Notes"), from CEDC in exchange for US$102,554,000 of CEDC's 3.00% Convertible Notes due 2013 then held by Roust Trading, and, CEDC, at its option, may issue to Roust Trading senior backstop notes in an aggregate principal amount of up to US$107,500,000 due July 31, 2016 (the "Backstop Notes") to be used by CEDC to pay the remaining principal amount of 3.00% Convertible Notes due 2013 then outstanding. Each of the Rollover Notes and Backstop Notes will bear a blended interest rate of 6.00% over the term of each note. Roust Trading and CEDC, and Roust Trading and each of the members of the CEDC's Board of Directors, have agreed to customary agreements to vote in favor of the transactions described above.
CEDC and Roust Trading also entered into a governance agreement in support of this investment. In accordance with this governance agreement, Roust Trading nominated, and CEDC's board of directors will appoint, a member to CEDC's Board of Directors and Roust Trading may nominate up to two additional directors to CEDC's Board of Directors depending on the amount of CEDC common stock held by Roust Trading. In addition, Roust Trading received various minority protection rights.
Jefferies & Company, Inc. served as financial advisor to CEDC's Board of Directors with respect to the transaction. Dewey & LeBoeuf LLP and Skadden, Arps, Slate, Meagher & Flom LLP acted as legal advisors to CEDC. Ropes & Gray LLP acted as legal advisors to Roust Trading.
About Central European Distribution Company
CEDC is one of the largest producers of vodka in the world and Central and Eastern Europe's largest integrated spirit beverage business. CEDC produces the Green Mark, Absolwent, Zubrowka, Bols, Parliament, Zhuravli, Royal and Soplica brands, among others. CEDC currently exports its products to many markets around the world, including the United States, England, France and Japan.
CEDC also is a leading importer of alcoholic beverages in Poland, Russia and Hungary. In Poland, CEDC imports many of the world's leading brands, including brands such as Carlo Rossi Wines, Concha y Toro wines, Metaxa Liqueur, Remy Martin Cognac, Sutter Home wines, Grant's Whisky, Jagermeister, E&J Gallo, Jim Beam Bourbon, Sierra Tequila, Teacher's Whisky, Campari, Cinzano, and Old Smuggler. CEDC is also a leading importer of premium spirits and wines in Russia with such brands as Concha y Toro, among others.
About Russian Standard Corporation
Russian Standard Corporation is one of Russia's most successful private companies with business interests in premium vodka, spirits distribution, banking and insurance. Russian Standard Vodka is the global leader in authentic Russian premium vodka and the only Russian global brand with sales in over 75 markets around the world. Its 2011 sales exceeded 2.6 million 9 liter cases. Roust Inc. is one of Russia's leading premium spirits distributors, representing such well-known brands as Gancia, Remy Martin, Metaxa, St Remy, Cointreau, Jagermeister, Molinari, Whyte & Mackay, Dalmore. In 2011, Russian Standard acquired a 70% stake in Gancia SPA, the legendary Italian wine-making company that created the first Italian sparkling wine. With 2000 hectares of vineyards, 5 million kilograms of grapes vinified, Gancia produces around 25 million bottles of sparkling wine, wines and aperitifs each year. Russian Standard Bank is ranked among the 30 biggest national finance institutions in Russia and is a leader in the Russian consumer finance market, including consumer loans and credit cards. Since 1999 the Bank has been setting new standards of consumer behavior, with over 25 million clients, over 45 billion USD in loans granted and 35 million credit cards issued. Russian Standard Bank is the exclusive issuer and service provider for American Express and Diners Club International cards in Russia. Russian Standard Bank has been granted the following ratings: Standard and Poor's – B + Stable; Moody's – Ba3 Stable; Fitch Ratings B + Positive. Russian Standard Insurance is a leading credit life insurer in Russia.
Russian Standard Corporation has over 19,000 employees working in offices in Moscow, St Petersburg, New York, Paris, London and Kiev. The total assets of Russian Standard Corporation exceed 5 billion USD.
Cautionary Statement about Forward-Looking Information
This press release contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including, without limitation, statements about the transaction and the future liquidity and results of CEDC following completion of the transaction. Forward looking statements are based on our knowledge of facts as of the date hereof and involve known and unknown risks and uncertainties that may cause the actual results, performance or achievements of CEDC to be materially different from any future results, performance or achievements expressed or implied by our forward looking statements. Such risks include, among others, uncertainties regarding the timing and completion of the transaction and the satisfaction of the conditions thereto, the possibility that competing transaction proposals may be made, the risk that regulatory approvals of the transaction on the proposed terms will not be obtained on a timely basis, the risk that shareholder approval of the transaction may not be obtained, the risk that Roust Trading will fail to fund some or all of its investment in CEDC and the risk that CEDC may need to raise additional funds to repay its indebtedness after completion of the transaction.
Investors are cautioned that forward looking statements are not guarantees of future performance and that undue reliance should not be placed on such statements. CEDC undertakes no obligation to publicly update or revise any forward looking statements or to make any other forward looking statements, whether as a result of new information, future events or otherwise, unless required to do so by securities laws. Investors are referred to the full discussion of risks and uncertainties included in CEDC's Form 10-K for the fiscal year ended December 31, 2011, including statements made under the captions "Item 1A. Risks Relating to Our Business" and in other documents filed by CEDC with the Securities and Exchange Commission.
CEDC will file copies of the securities purchase agreement and related transaction agreements with the SEC on a Form 8-K to which investors should refer for additional information on the terms of the transaction.
In connection with the transaction, CEDC will prepare a proxy statement to be filed with the SEC. When completed, a definitive proxy statement and a form of proxy will be mailed to stockholders of CEDC. CEDC STOCKHOLDERS ARE URGED TO READ THE PROXY STATEMENT REGARDING THE PROPOSED TRANSACTION BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION. CEDC stockholders will be able to obtain, without charge, a copy of the proxy statement (when available) and other relevant documents filed with the SEC from the SEC's website at http://www.sec.gov. In addition, documents filed by CEDC are available at the SEC's public reference room located at 100F Street, N.E. Washington, D.C. 20594. CEDC stockholders will also be able to obtain, without charge, a copy of the proxy statement and other relevant documents (when available) by directing a request to James Archbold, Vice President, at 3000 Atrium Way, suite 265, Mt. Laurel, NJ 08054, telephone (856) 273-6980 or from CEDC's website, www.cedc.com.
CEDC and certain of its respective directors and executive officers may be deemed to be participants in the solicitation of proxies from shareholders in connection with the transaction under the rules of the SEC. Information about the directors and executive officers of CEDC is included in the definitive proxy statement relating to its 2011 Annual Meeting of Shareholders filed with the SEC on March 26, 2011 and current reports on Form 8-K filed with the SEC. Shareholders may obtain additional information regarding the interests of CEDC and its directors and executive officers in the transaction, which may be different than those of CEDC shareholders generally, by reading the proxy statement and other relevant documents regarding the transaction, when filed with the SEC.
In the U.S.:
Jim Archbold
Central European Distribution Corporation
In Europe:
Anna Załuska
Corporate PR Manager
In Russia:
Oleg Yegorov
Russian Standard Corporation
Monday, April 23rd, 2012 Uncategorized Comments Off on CEDC (CDC) Signs Definitive Agreements for Strategic Alliance with Russian Standard Corporation
SuperMedia (SPMD) Social Media Solution Honored with 2012 Local Search Association Excellence Award
SuperMedia (NASDAQ:SPMD), a trusted local marketing advisor for small to medium-sized businesses across the United States, earned a 2012 Industry Excellence Award from the Local Search Associationat the organization's annual conference in Boca Raton, Fla.
SuperMedia's SocialEze solution was recognized in the Excellence in Social Marketing by a Publisher or Agency category, which recognizes one solution employing social media channels such as Facebook, Twitter, and Google+ with user-generated content to increases sales leads that can be validated by documented results.
"SocialEze is a simple, easy to use solution that enables small and medium-sized businesses to build relationships with consumers through social media," said Mat Stover, chief marketing officer, SuperMedia. "It offers comprehensive value, with automated tip posting, integration of business content and regular consultation with a social media expert, at a competitive price. The SuperMedia team took an innovative approach to match the priority requirements of local businesses with the best opportunities to reach consumers and efficient, easy-to-use functionality. This Local Search Association award recognizes great work by SuperMedia employees to create great value for our clients."
The annual Local Search Association conference allows attendees from around the globe to review local search and advertising trends and achievements, exchange ideas and best practices, and explore opportunities to improve the quality of service member firms offer to their customers around the world.
About SuperMedia LLC
SuperMedia LLC (NASDAQ: SPMD) helps small and medium-sized businesses grow through effective local marketing solutions across print, online, mobile and social media. SuperMedia solutions include: the award-winning SuperGuarantee® program, Superpages® directories, published for Verizon®, FairPoint® and Frontier®, Superpages.com®, EveryCarListed.com®, Superpages for your mobile and Superpages direct mail products. For more information, visit www.supermedia.com.
Monday, April 23rd, 2012 Uncategorized Comments Off on SuperMedia (SPMD) Social Media Solution Honored with 2012 Local Search Association Excellence Award
Keryx Biopharmaceuticals (KERX) Announces Positive Top-Line Results from Phase 3 Study of Ferric Citrate
NEW YORK, April 23, 2012 /PRNewswire/ — Keryx Biopharmaceuticals, Inc. (Nasdaq: KERX), announced today that its Japanese partner, Japan Tobacco Inc. (JT) and Torii Pharmaceutical Co., Ltd. (Torii), has announced positive top-line results from a Phase 3 study of ferric citrate in Japan for the treatment of hyperphosphatemia in end-stage renal disease patients on hemodialysis. This study is part of an ongoing Phase 3 program for ferric citrate in Japan for the treatment of hyperphosphatemia.
The Phase 3 study, conducted in Japan, was an open-label, randomized study evaluating the efficacy and safety of ferric citrate against an active control, sevelamer hydrochloride, over 12 weeks in hemodialysis patients with hyperphosphatemia. In the top-line results, which evaluated the change of serum phosphorus from baseline, the primary endpoint of efficacy met non-inferiority to sevelamer hydrochloride. Furthermore, there were no clinically significant findings on safety and tolerability of ferric citrate within the treatment period.
JT/Torii stated that it is aiming to submit the marketing application for ferric citrate in Japan in the fiscal year ending March 31, 2013.
Ron Bentsur, Chief Executive Officer of Keryx, said, "We congratulate our partner, JT/Torii, on their successful Phase 3 study and we are excited by their progress. We are also encouraged about our partner's plans to file their marketing application in Japan within less than a year, similar to our expected timelines for the U.S. NDA and European MAA filings." Mr. Bentsur added, "We are enthusiastic about Zerenex's potential differentiated product profile and its prospects for becoming an important part of the treatment of hyperphosphatemia in dialysis patients worldwide."
Zerenex™ (ferric citrate), a ferric iron-based phosphate binder, is also in a Phase 3 clinical program in the United States for the treatment of hyperphosphatemia (elevated phosphate levels) in patients with end-stage renal disease on dialysis, which is being conducted pursuant to a Special Protocol Assessment agreement with the FDA.
Keryx holds a worldwide license (except for certain Asian Pacific countries) to Zerenex from Panion & BF Biotech, Inc.
Sublicense Agreement with Japan Tobacco & Torii Pharmaceutical
In September 2007, Keryx sublicensed to JT/Torii the exclusive rights for the development and commercialization of its hyperphosphatemia drug, Zerenex (ferric citrate), in Japan. The licensing arrangement calls for JT/Torii to pay to Keryx up to $100 million in up-front license fees and payments upon the achievement of specified milestones, of which $28 million has been received by Keryx to date. In addition, upon commercialization, JT/Torii will make royalty payments to Keryx on net sales of the drug in Japan. JT/Torii are responsible for all development and commercialization costs in Japan.
About Keryx Biopharmaceuticals, Inc.
Keryx Biopharmaceuticals is focused on the acquisition, development and commercialization of medically important pharmaceutical products for the treatment of renal disease and cancer. Keryx is developing Zerenex (ferric citrate), an oral, ferric iron-based compound that has the capacity to bind to phosphate and form non-absorbable complexes. The Phase 3 clinical program of Zerenex for the treatment of hyperphosphatemia (elevated phosphate levels) in patients with end-stage renal disease is being conducted pursuant to a Special Protocol Assessment (SPA) agreement with the FDA. Keryx is also developing KRX-0401 (perifosine), which is in Phase 3 clinical development for multiple myeloma. Keryx is headquartered in New York City.
Some of the statements included in this press release, particularly those anticipating future clinical trials and business prospects for Zerenex™ (ferric citrate) may be forward-looking statements that involve a number of risks and uncertainties. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Among the factors that could cause our actual results to differ materially are the following: our ability, and our Japanese partner's ability, to successfully and cost-effectively complete clinical trials for Zerenex (ferric citrate); the risk that the data (both safety and efficacy) from the ongoing Phase 3 trials will not coincide with the data analyses from previous clinical trials reported by the Company; our ability to meet anticipated development timelines for Zerenex due to clinical trial results, manufacturing capabilities or other factors; if we determine that all trials of KRX-0401 (perifosine) should be terminated, our ability to successfully adjust our strategy and reduce our operating expenses relating to KRX-0401 clinical trials in order to properly support the trials of Zerenex; and other risk factors identified from time to time in our reports filed with the Securities and Exchange Commission. Any forward-looking statements set forth in this press release speak only as of the date of this press release. We do not undertake to update any of these forward-looking statements to reflect events or circumstances that occur after the date hereof. This press release and prior releases are available at http://www.keryx.com. The information found on our website is not incorporated by reference into this press release and is included for reference purposes only.
KERYX CONTACT:
Lauren Fischer
Director – Investor Relations
Keryx Biopharmaceuticals, Inc.
E-mail: lfischer@keryx.com
Monday, April 23rd, 2012 Uncategorized Comments Off on Keryx Biopharmaceuticals (KERX) Announces Positive Top-Line Results from Phase 3 Study of Ferric Citrate
Dehaier Medical (DHRM) Signs Strategic Cooperation Agreement with Timesco of London Ltd.
BEIJING, April 23, 2012 /PRNewswire-Asia-FirstCall/ — Dehaier Medical Systems Ltd. (NASDAQ: DHRM) ("Dehaier" or the "Company"), an emerging leader in the development, assembly, marketing and sale of medical devices and homecare medical products in China, today announced that it has signed a strategic cooperation agreement with Timesco of London Ltd., one of the most progressive surgical and medical companies in the U.K.
Under the terms of this three-year agreement Dehaier will be the exclusive distributor in mainland China for Timesco's entire laryngoscope Optima series of products, which include the CXL and Eclispse series. The presidents of both companies signed the agreement at the 67th China International Medical Equipment Fair in Shenzhen.
A laryngoscope is a viewing instrument that is used for tracheal intubations. The laryngoscope Optima series products offer a broad visual field and better vision for physicians due to its patented light source, while also addressing a variety of clinical demands through a diverse set of models and specifications. The agreement represents a benchmark for Dehaier as a leading distributor in China's laryngoscope market, while also providing a new product channel for the Company to offer its customers across China and ultimately strengthen its market share and increase revenue.
Dehaier's President and CEO, Mr. Ping Chen, commented, "Dehaier has maintained a long-term and reliable partnership with Timesco since 2003; we are currently taking as leading distributor in the laryngoscope market in China. We are glad that Timesco has expressed their appreciation of our product sales and market influence. Dehaier secured our competitive position through a strong and geographically diverse distribution network. We anticipate a comprehensive cooperation with Timesco, and believe this will help enhance our corporate reputation and ultimately agreements such as this will return value for our shareholders."
About Timesco of London Ltd.
Founded in 1964, Timesco of London is a medical supplies company that designs, manufactures, and sells surgical and non-surgical medical and dental instruments. Its specialties include products for laryngoscope, surgery, podiatry, and primary care as well as emergency health care, midwifery, and more. The Company has been recognized as one of the most progressive surgical and medical companies in the U.K. Their goal is to serve the healthcare needs of all consumers in all cultures throughout the world. To develop new, innovative medical technologies that will save or improve the quality of life, whilst meeting the highest standards of quality and product safety at all times.
About Dehaier Medical Systems Ltd.
Dehaier is an emerging leader in the development, assembly, marketing and sale of medical products, including respiratory and oxygen homecare medical products. The company develops and assembles its own branded medical devices and homecare medical products from third-party components. The company also distributes products designed and manufactured by other companies, including medical devices from IMD (Italy), Welch Allyn (USA), HEYER (Germany), Timesco (UK), eVent Medical (US) and JMS (Japan). Dehaier's technology is based on six patents and five software copyrights; additionally Dehaier has two pending software copyrights and proprietary technology. More information may be found at http://wwwdehaier.com.cn.
This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events, government approvals or performance, and underlying assumptions and other statements that are other than statements of historical facts, including in particular statements about Dehaier's membership in the Zhongguancun Association and the meaning of and retention of any ratings granted to Dehaier (including any factors affecting such ratings). These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, future developments in payment for and demand for medical equipment and services, implementation of and performance under the joint venture agreement by all parties, and other risks contained in reports filed by the company with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the company, are expressly qualified by the cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.
Dehaier Medical Systems Limited
Surie Liu
lius@dehaier.com.cn
Tina He
hexw@dehaier.com.cn
The Equity Group Inc.
Katherine Yao
kyao@equityny.com
Adam Prior
aprior@equityny.com
Monday, April 23rd, 2012 Uncategorized Comments Off on Dehaier Medical (DHRM) Signs Strategic Cooperation Agreement with Timesco of London Ltd.
Accelr8 (AXK) Attracts Up To $35 Million Private Equity Investment
Accelr8 Technology Corporation (Amex: AXK) announced today that an investment group formed by Jack Schuler, John Patience, and Larry Mehren will invest a total of up to $35 million in Accelr8's common stock. The purpose is to complete the product development and market introduction of Accelr8's BACcel™ culture-free, diagnostic system for same-shift identification and antibiotic resistance testing of bacterial and fungal pathogens.
Jack Schuler and John Patience are the principals and founders of Crabtree Partners LLC. Crabtree has been instrumental in the success of numerous companies including founding Stericycle, and leading the investment group that provided the capital for Ventana Medical Systems' first instrument. As Chairman and Vice-Chairman for over ten years, Jack Schuler and John Patience were instrumental in the growth of both organizations, resulting in the successful sale of Ventana to Roche for $3.4B, and the growth of Stericycle's current market capitalization to over $7.4B.
Prior to forming Crabtree, Jack Schuler was the President and COO of Abbott Laboratories. He is a principal shareholder and director of Quidel Corp. (NASDAQ: QDEL), a point of care diagnostics company, a current director of Medtronic (NYSE: MDT) and the lead director of Stericycle (NASDAQ: SRCL).
John Patience headed the worldwide healthcare consulting practice of McKinsey & Co., Inc. and was a co-founder of Marquette Venture Partners. He is a director of Stericycle and Biodesix.
Larry Mehren was most recently Head of Global Business/COO of Roche Tissue Diagnostics and, immediately prior to that, CFO of Ventana Medical Systems. He is a director of Medical Referral Source, and a former investment banker. He will be named CEO of Accelr8 upon closing.
"We are enthusiastic about the potential of our company and technology, and realized we needed the right partner," says Tom Geimer, CEO of Accelr8. Tom further states that, "After a thorough and deliberate process, the board chose Crabtree due to their unique hands-on expertise in life sciences development, operations, and commercialization, as well as their unparalleled track record of creating shareholder value for the companies they invest in."
Terms include purchase of 14 million shares of Accelr8's common stock at $1.03 per share for an initial investment of $14.42 million. The investors also will be issued a total of 7 million warrants with an exercise price at $1.03, and 7 million warrants with an exercise price at $2.00. The parties anticipate closing on or before July 1, 2012, subject to obtaining shareholder approval on the transaction.
In addition to changes in corporate officers, the investment contemplates a substantial increase in development staff. According to David Howson, Accelr8's current president and future Chief Scientific Officer, "This leadership team and investment will allow us to rapidly advance BACcel™ development, and demonstrate its ability to quickly determine multi-drug resistance through the system's unique method of identification and sensitivity testing." Mr. Howson concludes, "Crabtree and Accelr8 are a perfect partnership of business and science. It should yield significant success."
About Accelr8
Accelr8 Technology Corporation (www.accelr8.com) is a developer of innovative materials and instrumentation for advanced applications in medical instrumentation, basic research, drug discovery, and bio-detection. Accelr8 is developing a rapid analytical platform for infectious pathogens, the BACcel™ system, based on its innovative assay processing and detection technologies. In addition, Accelr8 licenses certain of its proprietary technology for use in applications outside of Accelr8's own products.
Certain statements in this news release may be "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements regarding future prospects and developments are based upon current expectations and involve certain risks and uncertainties that could cause actual results and developments to differ materially from the forward-looking statement, including those detailed in the company's filings with the Securities and Exchange Commission. Accelr8 does not undertake an obligation to publicly update or revise any forward-looking statements, whether as a result of new information or future events.
Monday, April 23rd, 2012 Uncategorized Comments Off on Accelr8 (AXK) Attracts Up To $35 Million Private Equity Investment
SEFE, Inc. (SEFE): SEFE Provides Overview of Proprietary Detection System
SEFE, Inc. (OTCBB: SEFE.OB) ("SEFE") ("The Company"), a technology- and solutions-driven sustainability company, has provided an overview of its proprietary detection system, which enables the Company to target the most desirable areas for harnessing maximum atmospheric electricity.
The system measures the charge density at varying elevations in the lower atmosphere. "This system is crucial to our overall development, as it allows us to quickly characterize a region and tailor our collection systems to the local atmospheric characteristics, and ultimately to the needs of our clients," said Michael Hurowitz, Director of Engineering for SEFE. "The deployment of our detector will broaden our potential client base as we aim to build systems that provide power to regions that are removed from the grid. Our methodologies have allowed us to keep our costs low, and the resulting detection capabilities will be a key factor in helping us build a commercial power system."
Detection testing will take place across the United States, starting in Wyoming and Colorado.
Friday, April 20th, 2012 Uncategorized Comments Off on SEFE, Inc. (SEFE): SEFE Provides Overview of Proprietary Detection System
Popular, Inc. (BPOP) Reports Net Income of $48.4 million for the Quarter ended March 31, 2012
Popular, Inc. ("the Corporation" or "Popular") (NASDAQ: BPOP) reported net income of $48.4 million for the quarter ended March 31, 2012, compared with net income of $3.0 million for the quarter ended December 31, 2011, and net income of $10.1 million for the quarter ended March 31, 2011.
Refer to the accompanying "Financial Supplement to First Quarter 2012 Earnings Release" for detailed financial information and key performance ratios.
Mr. Richard L. Carrión, Chairman of the Board and Chief Executive Officer, said: "Our results for the first quarter were in line with our expectations. We continue to see an improvement in credit quality metrics and revenue generation was again solid. Given these trends and our current efforts in various areas, we are reaffirming the earnings guidance we provided in the beginning of the year."
Earnings Highlights – First Quarter 2012 compared to Fourth Quarter 2011
Quarter ended
(Dollars in thousands except per share information) March 31,2012 December 31,2011 $ Variance
Net interest income $337,582 $ 344,780 ($7,198 )
Provision for loan losses – non-covered loans 82,514 123,908 (41,394 )
Provision for loan losses – covered loans [1] 18,209 55,900 (37,691 )
Net interest income after provision for loan losses 236,859 164,972 71,887
FDIC loss share (expense) income (15,255 ) 17,447 (32,702 )
Non-interest income 139,163 131,912 7,251
Operating expenses 296,167 311,093 (14,926 )
Income before income tax 64,600 3,238 61,362
Income tax expense 16,192 263 15,929
Net income $48,408 $ 2,975 $ 45,433
Net income applicable to common stock $47,477 $ 2,044 $ 45,433
Net income per common share – basic and diluted $ 0.05 $ 0.00 $ 0.05
[1] Covered loans represent loans acquired in the Westernbank FDIC-assisted transaction that are covered under FDIC loss sharing agreements.
The net interest margin was 4.27% for the first quarter of 2012, compared with 4.30% for the fourth quarter of 2011. The decrease in net interest income of $7.2 million for the first quarter of 2012, compared with the fourth quarter of 2011, was principally due to a reduction in the yield of the covered loan portfolio, partially offset by further reduction in the cost of deposits and borrowings. Refer to Table D for detailed information on average financial condition balances and an analysis of yield / rates by main categories.
The principal variance in interest income on loans was a reduction in the interest derived from covered loans by $13.6 million, or 99 basis points. This reduction was primarily attributed to revisions in the average life of certain pools, which causes the accretable yield to be recognized over an extended period, reducing the interest income for the first quarter of 2012 compared with the last quarter in 2011. Additionally, the reduction in interest income was associated with collections in excess of the carrying value of a commercial one-loan pool in the fourth quarter of 2011, which resulted in additional income in that quarter of approximately $5.8 million.
The decrease in interest income on non-covered commercial loans of $4.9 million was principally due to lower rates in newly originated loans and renewal activity, coupled with a lower average loan volume of $152 million, principally at the U.S. mainland operations.
Partially offsetting these unfavorable variances in interest income was an increase in the yield on construction loans by 344 basis points or $4.2 million, principally related to the Corporation's U.S. Mainland operations' full recovery of certain large loan relationships that had been in non-accrual. Additionally, there was a positive variance in interest income on mortgage loans by $5.0 million, mostly influenced by the partial reversal during the fourth quarter of 2011 of the interest receivable on delinquent residential mortgage loans insured by FHA or guaranteed by the VA that were over 18-months past due.
The Corporation's interest expense on interest bearing deposits decreased by $4.4 million, or 5 basis points, reflecting the continuing progress in repricing the Corporation's deposit base. Additionally, the interest expense on borrowings declined $1.9 million, principally due to lower average balances mainly associated with the payoff in the fourth quarter of 2011 of the note that was issued to the FDIC as part of the Westernbank FDIC-assisted transaction.
Provision for loan losses
The provision for loan losses for the quarter ended March 31, 2012 amounted to $100.7 million, a decrease of $79.1 million compared with the fourth quarter of 2011. During the first quarter of 2012, the Corporation revised its estimation process for establishing and evaluating the adequacy of its allowance for loan losses. The provision for loan losses for the quarter includes a $25.3 million net benefit of such revision. Refer to the Credit Quality section for a summary of the changes and the impact on the Corporation's allowance for loan losses. The total allowance for loan losses to loans held-in-portfolio ratio stood at 3.25% as of March 31, 2012 compared with 3.27% as of December 31, 2011.
The provision for loan losses for the non-covered portfolio decreased by $41.4 million, of which $20.3 million was related to the Banco Popular de Puerto Rico ("BPPR") reportable segment and $21.1 million to the Banco Popular North America ("BPNA") reportable segment. In the BPPR reportable segment, the reduction in provision for loan losses was primarily driven by lower losses in the commercial and construction loan portfolios. In the BPNA reportable segment, the decrease in the provision for loan losses was driven by the combination of lower losses and the effect of the enhancement to the allowance for loan losses methodology.
The provision for loan losses on the covered portfolio decreased by $37.7 million primarily due to lower level of impairments on loans accounted for pursuant to ASC 310-20 and ASC 310-30. The provision for loan losses related to loans accounted for pursuant to ASC 310-20 amounted to $6.8 million for the first quarter of 2012, compared with $34.7 million for the quarter ended December 31, 2011, a decrease of $27.9 million. During the fourth quarter of 2011, there were two particular credit relationships accounted for pursuant to ASC 310-20 which required specific reserves of $28.2 million. For the quarter ended March 31, 2012, there was only one newly impaired credit relationship with an outstanding principal balance of $13.2 million and a specific reserve requirement of $9.8 million. The provision for loan losses for loans accounted under ASC 310-30, amounted to $11.4 million for the first quarter of 2012, compared with $21.2 million for the quarter ended December 31, 2011. The decrease of $9.8 million in the provision for loan losses on these loans was prompted by an improvement in actual and expected cash flows.
Non-interest income
Non-interest income for the quarter ended March 31, 2012 decreased by $25.5 million compared with the quarter ended December 31, 2011. The principal unfavorable variances were as follows:
FDIC loss share expense of $15.3 million was recognized in the first quarter of 2012, compared with FDIC loss share income of $17.4 million for the fourth quarter of 2011. This variance was principally associated with $37.7 million of lower provision for loan losses on covered loans recorded during the first quarter of 2012. Refer to Table N for financial information on the covered loans and the composition of the FDIC loss share (expense) income.
Trading account losses amounted to $2.1 million for the first quarter of 2012, compared with trading account profits of $2.6 million in the fourth quarter of 2011.
The above unfavorable variances in non-interest income were partially offset by the following categories:
The category of other operating income in Table B shows an increase of $9.5 million mostly due to higher income from investments accounted for under the equity method (approximately $9.0 million), principally driven by $6.7 million from the equity investment in PRLP 2011 Holdings, LLC, which holds the commercial and construction loans sold by BPPR during 2011, of which BPPR holds a 24.9% equity participation.
Other service fees increased by $5.9 million, mostly due to a quarter-over-quarter favorable variance in valuation adjustments on mortgage servicing rights of $11.5 million, partially offset by lower insurance fees by $4.1 million since the fourth quarter of 2011 included the recognition of an annual contingent insurance commission related to the dwelling and flood insurance businesses. Refer to Table E in the Financial Supplement for a breakdown of other service fees.
Operating expenses decreased by $14.9 million for the first quarter of 2012 compared with the fourth quarter of 2011. Refer to Table B which provides a breakdown of operating expenses by main categories. The principal favorable variances were as follows:
Business promotion expense decreased by $6.4 million, mainly due to higher marketing efforts during the fourth quarter of 2011 related to credit cards, client relationship campaigns during the holidays and costs associated with the continued BPNA rebranding initiative.
The provision for losses on unfunded credit commitments, which is included in the category of other operating expenses in Table B, resulted in a positive variance of $9.5 million in the first quarter of 2012 compared with the fourth quarter of 2011, mainly due to a combination of lower expected disbursements and loss rate.
Personnel costs decreased by $3.1 million as shown in Table B, principally due to a decrease in the category of pension, postretirement and medical insurance costs of $7.6 million, partially offset by an increase in commissions, incentives and other bonuses of $1.9 million and in other personnel costs, including payroll taxes, of $2.9 million. The latter variance includes approximately $1.4 million in severance accruals related to a voluntary employee exit program as part of the Corporation's efficiency efforts.
The slight variance in the salaries category in Table B consists of a reduction of $2.0 million in base salaries for full-time equivalent employees (FTEs), primarily related to the reduction in headcount associated with the voluntary retirement program effective on February 1, 2012, offset by increases in vacation expense, seasonal salaries and other compensation benefits. FTEs were 8,074 as of March 31, 2012, compared with 8,329 as of December 31, 2011.
Pension, postretirement and medical insurance costs were $7.6 million lower in the current quarter as pension costs decreased $12.1 million due to the effect of the $15.6 million cost of the voluntary retirement program recognized in the fourth quarter of 2011, partially offset by the impact of a decrease in the assumed discount rate of the remaining pension benefit obligation. The decrease in pension costs was partially offset by an increase in medical insurance costs of $4.6 million reflecting claims activity and revised premiums.
These favorable variances were partially offset by an increase in the category of other real estate owned costs by $4.3 million, principally due to downward adjustments to collateral values of residential mortgage properties in the BPPR reportable segment.
Income tax expense amounted to $16.2 million for the quarter ended March 31, 2012, compared with $263 thousand for the fourth quarter of 2011. The increase in income tax expense was mainly due to higher taxable income in the Corporation's Puerto Rico operations.
The allowance for loan losses to loans held-in-portfolio ratio, excluding covered loans, stood at 3.25% as of March 31, 2012 compared with 3.35% as of December 31, 2011. During the first quarter of 2012, in order to better reflect current market conditions, the Corporation revised the estimation process for evaluating the adequacy of its allowance for loan losses for the Corporation's commercial and construction loan portfolios by (i) establishing a more granular stratification of the commercial and construction loan portfolios focusing on certain risk characteristics and (ii) increasing the look-back period for assessing the trends applicable to the determination of net charge-offs from 6 months to 12 months (recognizing that a longer period is more appropriate when assessing those trends, consistent with the Corporation's recent experience). The net charge-off trend factor is an adjustment to the base loss rate to account for inherent imprecision in reserve estimates due to recent loss trends. The trend factor replaces the base-loss period when it is higher than base loss up to a determined cap. As part of the process, the Corporation also reassessed environmental factors reserves applied to the commercial loan portfolio at the BPPR reportable segment. Environmental factors account for current market conditions that are likely to cause estimated credit losses to differ from historical loss experience. These environmental factors increase or decrease the historical loss rate applied to each loan segment. The net effect of these changes amounted to a $25.3 million reduction in the Corporation's allowance for loan losses, resulting from a reduction of $40.4 million due to the enhancements to the allowance for loan losses methodology, offset in part by a $15.1 million increase in environmental factor reserves due to the Corporation's decision to monitor recent trends in its commercial loan portfolio at the BPPR reportable segment that although improving, continue to warrant additional scrutiny. The general and specific reserves related to non-covered loans amounted to $589 million and $76 million, respectively, as of March 31, 2012, compared with $631 million and $59 million, respectively, as of December 31, 2011. Refer to Tables G through L for detailed credit quality information, including the activity in the allowance for loan losses.
Non-performing loans, excluding loans held-for-sale and covered loans, decreased by $56 million from December 31, 2011 to March 31, 2012, driven principally by the commercial, construction and mortgage loan portfolios, resulting from the steps taken by the Corporation to reduce the overall credit risks of its loan portfolios. Non-performing construction loans decreased by $27 million, driven by the BPNA reportable segment which decreased by $29 million when compared with December 31, 2011. Non-performing commercial loans decreased by $11 million, when compared with December 31, 2011, driven by the BPPR reportable segment which decreased by $10 million, as one commercial loan with an outstanding principal balance of $20.1 million classified as a troubled-debt restructuring ("TDR") in 2011 was returned to accrual status. Non-performing loans from the Corporation's residential mortgage loan portfolio as of March 31, 2012 amounted to $667 million, a decrease of $19 million compared with December 31, 2011. The decrease was principally driven by non-performing loans from the residential mortgage loan portfolio of the BPPR reportable segment, prompted by (i) a reduction of loan repurchases under credit recourse arrangements, (ii) a higher level of residential mortgage TDRs returned to accrual status, and (iii) higher charge-offs. Nevertheless, the residential mortgage loan portfolio of the BPPR reportable segment continues to be impacted by the economic conditions in Puerto Rico. Refer to Table H for the activity in non-performing commercial, construction and mortgage loans, excluding covered loans and loans held-for-sale.
Annualized net charge-offs to average non-covered loans held-in-portfolio decreased 33 basis points, from 2.46% for the quarter ended December 31, 2011 to 2.13% for the quarter ended March 31, 2012. Excluding covered loans, net charge-offs for the first quarter of 2012 declined by $17.9 million, compared with the quarter ended December 31, 2011. The reduction was driven principally by lower net charge-offs from the commercial and construction loan portfolios for the quarter ended March 31, 2012, which decreased by $17.1 million and $5.1 million, respectively, when compared with the quarter ended December 31, 2011. Net charge-offs from the BPPR and BPNA reportable segments' commercial loan portfolios decreased by $10.9 million and $6.2 million respectively, from $48.4 million and $23.1 million, respectively, for the quarter ended December 31, 2011 to $37.5 million and $16.9 million, respectively, for the first quarter of 2012.
These favorable variances were offset in part by an increase in net charge-offs of $8.7 million in the residential mortgage loan portfolio mostly due to revisions to the charge-off policy in the BPPR reportable segment. During the first quarter of 2012, the Corporation revised its charge-off policy for the residential mortgage loan portfolio by including historical losses on recent other real estate owned ("OREO") sales to determine the net realizable value to assess charge-offs once a loan becomes 180 days past due; previously, this was only done once the loan was foreclosed. As a result of the implementation of this new practice, net charge-offs from the residential mortgage loan portfolio at the BPPR reportable segment increased by $5.0 million during the quarter ended March 31, 2012. This increase was the main driver of a higher ratio of annualized net charge-offs to average non-covered mortgage loans held-in-portfolio at the BPPR reportable segment, which increased by 61 basis points, from 0.46% for the quarter ended December 31, 2011 to 1.07% for the quarter ended March 31, 2012.
Net charge-offs on the covered loan portfolio decreased by $6.7 million, driven principally by one particular credit relationship that was charged-off during the fourth quarter of 2011. Refer to Table I for further information on the Corporation's net charge-offs and related ratios.
Refer to the section below for explanations on the main variances.
BPPR Reportable Segment
The provision for loan losses for non-covered loans of the BPPR reportable segment totaled $67.8 million or 92.0% of net charge-offs, for the first quarter of 2012, compared with $88.1 million or 112.5% of net charge-offs, for the fourth quarter of 2011. The decrease in the provision for loan losses was mainly driven by lower levels of commercial and construction net-charge offs by $15.1 million, when compared with the quarter ended December 31, 2011. These improvements were partially offset by higher reserve requirements for the consumer and residential mortgage loan portfolios due to higher net charge-offs and specific reserve requirements for loans restructured under loss mitigation programs. The reduction also includes a $7.5 million impact related to the net effect of revisions made to the general reserve estimation process for the commercial and construction loan portfolios.
Annualized net charge-offs to average non-covered loans held-in-portfolio ratio for the BPPR reportable segment decreased 13 basis points, from 2.14% for the quarter ended December 31, 2011 to 2.01% for the quarter ended March 31, 2012. The decrease was driven by lower net charge-offs from the commercial and construction loan portfolios, prompted by the steps taken by the Corporation to reduce the overall credit risks of these loans portfolio; therefore, reducing the level of problem loans remaining at the reportable segment. Net charge-offs from the residential mortgage loan portfolio of the BPPR reportable segment increased by $7.0 million, from $5.2 million for the quarter ended December 31, 2011 to $12.2 million for the first quarter of 2012, primarily due to the aforementioned enhancement to the charge-off policy.
Non-performing loans of the BPPR reportable segment, excluding loans held-for-sale and covered loans, decreased by $28 million as of March 31, 2012, when compared with December 31, 2011. The decrease in non-performing commercial loans at the BPPR reportable segment was mainly driven by one commercial loan relationship with an outstanding principal balance of $20.1 million as of March 31, 2012, which was restructured and placed in non-accrual status during the third quarter of 2011. This commercial loan relationship was returned to accrual status during the first quarter of 2012, as explained previously. Non-performing residential mortgage loans of the BPPR reportable segment decreased by $16 million, mainly due to (i) a reduction of loan repurchases under credit recourse arrangements, (ii) a higher level of residential mortgage TDRs returned to accrual status, and (iii) higher charge-offs. Non-performing consumer loans of the BPPR reportable segment decreased to $27 million as of March 31 2012, from $31 million as of December 31, 2011, a decrease of $4 million. This portfolio continues to show stabilization in terms of credit quality.
Refer to Table K for information on the allowance for loan losses of the Corporation's Puerto Rico operations. The decrease in the allowance for loan losses from December 31, 2011 to March 31, 2012, excluding the impact related to the revisions made to the general reserve estimation process for the commercial and construction loan portfolios, reflects a lower general reserve component for the commercial loan portfolio mostly driven by a lower loss trend. This decrease was partially offset by an increase in the general reserve for the residential mortgage loan portfolio, coupled with higher specific reserves for residential mortgage loans restructured under loss mitigation programs.
BPNA Reportable Segment
The provision for loan losses for the BPNA reportable segment amounted to $14.7 million, or 42.7% of net charge-offs, for the first quarter of 2012, compared with $35.8 million or 75.0% of net charge-offs for the fourth quarter of 2011. This reduction includes a $17.8 million impact related to the revisions made to the general reserve estimation process for the commercial and construction loan portfolios. Excluding this impact, the decrease in the provision for loan losses in the BPNA reportable segment was mainly due to lower net charge-offs during the first quarter of 2012 compared with the fourth quarter of 2011, principally from the commercial and consumer loan portfolios.
Annualized net charge-offs to average loans held-in-portfolio ratio for the BPNA reportable segment decreased 84 basis points, from 3.27% for the quarter ended December 31, 2011 to 2.43% for the first quarter of 2012. As explained above, the decrease in net charge-offs was mainly observed in the commercial and consumer loan portfolios. These decreases were prompted by the continued credit stabilization at the BPNA reportable segment.
Non-performing loans held-in-portfolio at the BPNA reportable segment amounted to $338 million as of March 31, 2012, a decrease of $28 million compared with December 31, 2011. The decrease was mainly driven by a reduction of $29 million in non-performing construction loans, driven by the resolution of three large construction loans, unit sales on several projects and minimal inflows of new construction non-performing loans.
Refer to Table L for information on the allowance for loan losses of the BPNA reportable segment. The decline in the allowance for loan losses from December 31, 2011 to March 31, 2012 reflects an overall decrease in the general reserve component, partially offset by a slight increase in the specific reserve for the commercial loans portfolio. The decline in the general reserve component included the aforementioned impact related to the revisions made to the general reserve estimation process for the commercial and construction loan portfolios.
Financial Condition Highlights – March 31, 2012 compared to December 31, 2011
Total assets amounted to $37.0 billion as of March 31, 2012, compared with $37.3 billion as of December 31, 2011. Refer to Table C for a detailed presentation of the Corporation's Consolidated Statements of Condition.
Total investment securities, including trading securities and other investment securities, amounted to $5.9 billion as of March 31, 2012, compared with $5.8 billion as of December 31, 2011.
Total loans held-in-portfolio amounted to $24.7 billion as of March 31, 2012, compared with $25.0 billion as of December 31, 2011. Refer to Table F for a breakdown by loan categories. The decrease of $129 million in non-covered commercial loans held-in-portfolio from December 31, 2011 to March 31, 2012 was mostly associated with the Corporation's U.S. mainland operations mainly due to pay-downs and charge-offs exceeding current year originations. The increase in mortgage loans held-in-portfolio was principally due to (i) loan repurchases under recourse credit agreements, (ii) loans purchased and originated at the Corporation's Puerto Rico operations, and (iii) mortgage loan purchases at BPNA during the first quarter of 2012 of approximately $21 million. The decline in total covered loans of $127 million was principally due to collections.
Deposits amounted to $27.2 billion as of March 31, 2011, compared with $27.9 billion as of December 31, 2011. Table F presents a breakdown of deposits by major categories. The decrease in demand deposits from December 31, 2011 to March 31, 2012 of $244 million was principally related to lower balance of deposits in trust by $561 million, partially offset by an increase in commercial accounts. The deposits in trust outstanding as of December 31, 2011 were of a short-term nature and were mostly associated with certain Puerto Rico government bond issuances. The decrease in time deposits was primarily at BPPR. These decreases were partially offset by an increase in savings, NOW and money market deposits, both from the retail and commercial sectors.
The Corporation's borrowings amounted to $4.7 billion as of March 31, 2012, compared with $4.3 billion as of December 31, 2011. The increase in borrowings was principally in short-term debt by approximately $455 million mostly associated with FHLB advances.
Stockholders' equity was $4.0 billion as of March 31, 2012, compared with $3.9 billion as of December 31, 2011. The increase was principally related to earnings retention. Refer to Table A for capital ratios and Table M for Non-GAAP reconciliations.
The information included in this news release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and involve certain risks and uncertainties that may cause actual results to differ materially from those expressed in forward-looking statements. Factors that might cause such a difference include, but are not limited to (i) the rate of growth in the economy and employment levels, as well as general business and economic conditions; (ii) changes in interest rates, as well as the magnitude of such changes; (iii) the fiscal and monetary policies of the federal government and its agencies; (iv) changes in federal bank regulatory and supervisory policies, including required levels of capital; (v) the relative strength or weakness of the consumer and commercial credit sectors and of the real estate markets in Puerto Rico and the other markets in which borrowers are located; (vi) the performance of the stock and bond markets; (vii) competition in the financial services industry; (viii) possible legislative, tax or regulatory changes; (ix) the impact of the Dodd-Frank Act on our businesses, business practice and cost of operations; and (x) additional Federal Deposit Insurance Corporation assessments. For a discussion of such factors and certain risks and uncertainties to which the Corporation is subject, see the Corporation's Annual Report on Form 10-K for the year ended December 31, 2011, as well as its filings with the U.S. Securities and Exchange Commission. Other than to the extent required by applicable law, including the requirements of applicable securities laws, the Corporation assumes no obligation to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements.
Founded in 1893, Popular, Inc. is the leading banking institution by both assets and deposits in Puerto Rico and ranks 37th by assets among U.S. banks. In the United States, Popular has established a community-banking franchise providing a broad range of financial services and products with branches in New York, New Jersey, Illinois, Florida and California.
An electronic version of this press release can be found at the Corporation's website, www.popular.com.
Financial Supplement follows
Popular, Inc.
Financial Supplement to First Quarter 2012 Earnings Release
Table A – Selected Ratios and Other Information
Table B – Consolidated Statement of Operations
Table C – Consolidated Statement of Condition
Table D – Consolidated Average Balances and Yield / Rate Analysis – QUARTER
Table E – Other Service Fees
Table F – Loans and Deposits
Table G – Non-Performing Assets
Table H – Activity in Non-performing Loans
Table I – Allowance for Credit Losses, Net Charge-offs and Related Ratios
Table J – Allowance for Loan Losses – Breakdown of general and specific reserves – CONSOLIDATED
Table K – Allowance for Loan Losses – Breakdown of general and specific reserves – PUERTO RICO OPERATIONS
Table L – Allowance for Loan Losses – Breakdown of general and specific reserves – U.S. MAINLAND OPERATIONS
Table M – Reconciliation to GAAP Financial Measures
Table N – Financial Information – Westernbank Covered Loans
Quarter ended Quarter ended Quarter ended
March 31, December 31, March 31,
Net income per common share:
Basic and diluted $ 0.05 $ 0.00 $ 0.01
Average common shares outstanding 1,023,418,052 1,022,741,800 1,021,536,201
Average common shares outstanding – assuming dilution 1,024,945,000 1,022,741,800 1,022,339,095
Common shares outstanding at end of period 1,027,117,068 1,025,904,567 1,023,416,118
Market value per common share $ 2.05 $ 1.39 $ 2.92
Market Capitalization — (In millions) $ 2,106 $ 1,426 $ 2,988
Return on average assets 0.53 % 0.03 % 0.11 %
Return on average common equity 5.16 % 0.21 % 1.05 %
Net interest margin [1] 4.27 % 4.30 % 4.15 %
Common equity per share $ 3.81 $ 3.77 $ 3.67
Tangible common book value per common share (non-GAAP) $ 3.12 $ 3.08 $ 2.98
Tangible common equity to tangible assets (non-GAAP) 8.83 % 8.62 % 8.00 %
Tier 1 risk-based capital [2] 16.51 % 15.97 % 15.23 %
Total risk-based capital [2] 17.79 % 17.25 % 16.50 %
Tier 1 leverage [2] 11.10 % 10.90 % 10.15 %
Tier 1 common equity to risk-weighted assets (non-GAAP) [2] 12.53 % 12.10 % 11.56 %
[1] Not on a taxable equivalent basis.
[2] Capital ratios for the current quarter are estimated.
Quarter ended Quarter ended Variance Quarter ended Variance
March 31, December 31, Q1 2012 vs. March 31, Q1 2012 vs.
(In thousands, except per share information) 2012 2011 Q4 2011 2011 Q1 2011
Interest income:
Loans $ 387,942 $ 399,523 $ (11,581 ) $ 423,375 $ (35,433 )
Money market investments 948 837 111 947 1
Investment securities 45,070 46,758 (1,688 ) 52,375 (7,305 )
Trading account securities 5,891 6,275 (384 ) 8,754 (2,863 )
Total interest income 439,851 453,393 (13,542 ) 485,451 (45,600 )
Interest expense:
Deposits 51,679 56,068 (4,389 ) 76,879 (25,200 )
Short-term borrowings 13,583 13,780 (197 ) 14,015 (432 )
Long-term debt 37,007 38,765 (1,758 ) 51,198 (14,191 )
Total interest expense 102,269 108,613 (6,344 ) 142,092 (39,823 )
Net interest income 337,582 344,780 (7,198 ) 343,359 (5,777 )
Provision for loan losses – non-covered loans 82,514 123,908 (41,394 ) 59,762 22,752
Provision for loan losses – covered loans 18,209 55,900 (37,691 ) 15,557 2,652
Net interest income after provision for loan losses 236,859 164,972 71,887 268,040 (31,181 )
Service charges on deposit accounts 46,589 46,162 427 45,630 959
Other service fees 66,039 60,097 5,942 58,652 7,387
Net gain on sale and valuation adjustments of investment securities – 2,800 (2,800 ) – –
Trading account (loss) profit (2,143 ) 2,610 (4,753 ) (499 ) (1,644 )
Net gain on sale of loans, including valuation adjustments on loans held-for-sale 15,471 16,135 (664 ) 7,244 8,227
Adjustments (expense) to indemnity reserves on loans sold (3,875 ) (3,481 ) (394 ) (9,848 ) 5,973
FDIC loss share (expense) income (15,255 ) 17,447 (32,702 ) 16,035 (31,290 )
Fair value change in equity appreciation instrument – – – 7,745 (7,745 )
Other operating income 17,082 7,589 9,493 39,409 (22,327 )
Total non-interest income 123,908 149,359 (25,451 ) 164,368 (40,460 )
Salaries 76,899 77,074 (175 ) 73,791 3,108
Commissions, incentives and other bonuses 12,726 10,873 1,853 9,924 2,802
Pension, postretirement and medical insurance 18,425 26,039 (7,614 ) 11,985 6,440
Other personnel costs, including payroll taxes 13,441 10,561 2,880 10,440 3,001
Total personnel costs 121,491 124,547 (3,056 ) 106,140 15,351
Net occupancy expenses 24,162 25,891 (1,729 ) 24,586 (424 )
Equipment 11,341 10,526 815 12,036 (695 )
Other taxes 13,438 12,899 539 11,972 1,466
Professional fees 48,105 50,019 (1,914 ) 46,688 1,417
Communications 7,131 5,917 1,214 7,210 (79 )
Business promotion 12,850 19,225 (6,375 ) 9,860 2,990
FDIC deposit insurance 24,926 25,088 (162 ) 17,673 7,253
Loss on early extinguishment of debt 69 56 13 8,239 (8,170 )
Other real estate owned (OREO) 14,165 9,893 4,272 2,211 11,954
Credit and debit card processing, volume, interchange and other 4,681 3,974 707 3,944 737
Other operating expenses 11,215 20,377 (9,162 ) 22,235 (11,020 )
Amortization of intangibles 2,593 2,681 (88 ) 2,255 338
Total operating expenses 296,167 311,093 (14,926 ) 275,049 21,118
Income before income tax 64,600 3,238 61,362 157,359 (92,759 )
Income tax expense 16,192 263 15,929 147,227 (131,035 )
Net income $ 48,408 $ 2,975 $ 45,433 $ 10,132 $ 38,276
Net income applicable to common stock $ 47,477 $ 2,044 $ 45,433 $ 9,202 $ 38,275
Net income per common share – basic $ 0.05 $ – $ 0.05 $ 0.01 $ 0.04
Net income per common share – diluted $ 0.05 $ – $ 0.05 $ 0.01 $ 0.04
March 31, December 31, March 31, Q1 2012 vs.
(In thousands) 2012 2011 2011 Q4 2011
Cash and due from banks $ 472,806 $ 535,282 $ 464,555 $ (62,476 )
Money market investments 1,304,263 1,376,174 961,565 (71,911 )
Trading account securities, at fair value 404,293 436,331 634,799 (32,038 )
Investment securities available-for-sale, at fair value 5,138,616 5,009,823 5,686,341 128,793
Investment securities held-to-maturity, at amortized cost 124,372 125,383 142,106 (1,011 )
Other investment securities, at lower of cost or realizable value 195,708 179,880 174,930 15,828
Loans held-for-sale, at lower of cost or fair value 361,596 363,093 569,678 (1,497 )
Loans held-in-portfolio:
Loans not covered under loss sharing agreements with the FDIC 20,478,674 20,602,596 20,676,789 (123,922 )
Loans covered under loss sharing agreements with the FDIC 4,221,788 4,348,703 4,729,550 (126,915 )
Less: Allowance for loan losses (803,264 ) (815,308 ) (736,505 ) 12,044
Total loans held-in-portfolio, net 23,897,198 24,135,991 24,669,834 (238,793 )
FDIC loss share asset 1,880,357 1,915,128 2,426,305 (34,771 )
Premises and equipment, net 533,545 538,486 543,577 (4,941 )
Other real estate not covered under loss sharing agreements with the FDIC 193,768 172,497 156,888 21,271
Other real estate covered under loss sharing agreements with the FDIC 110,559 109,135 65,562 1,424
Accrued income receivable 126,568 125,209 147,670 1,359
Mortgage servicing assets, at fair value 156,331 151,323 167,416 5,008
Other assets 1,439,532 1,462,393 1,314,739 (22,861 )
Goodwill 647,911 648,350 647,387 (439 )
Other intangible assets 61,798 63,954 56,441 (2,156 )
Total assets $ 37,049,221 $ 37,348,432 $ 38,829,793 $ (299,211 )
Liabilities and Stockholders' Equity:
Non-interest bearing $ 5,366,420 $ 5,655,474 $ 4,913,009 $ (289,054 )
Interest bearing 21,831,316 22,286,653 22,283,665 (455,337 )
Total deposits 27,197,736 27,942,127 27,196,674 (744,391 )
Federal funds purchased and assets sold under agreements to repurchase 2,113,557 2,141,097 2,642,800 (27,540 )
Other short-term borrowings 751,200 296,200 290,302 455,000
Notes payable 1,843,754 1,856,372 3,794,655 (12,618 )
Other liabilities 1,175,903 1,193,883 1,100,456 (17,980 )
Total liabilities 33,082,150 33,429,679 35,024,887 (347,529 )
Preferred stock 50,160 50,160 50,160 –
Common stock 10,276 10,263 10,236 13
Surplus 4,116,710 4,114,661 4,096,245 2,049
Accumulated deficit (165,249 ) (212,726 ) (338,126 ) 47,477
Treasury stock (1,041 ) (1,057 ) (607 ) 16
Accumulated other comprehensive loss (43,785 ) (42,548 ) (13,002 ) (1,237 )
Total stockholders' equity 3,967,071 3,918,753 3,804,906 48,318
Total liabilities and stockholders' equity $ 37,049,221 $ 37,348,432 $ 38,829,793 $ (299,211 )
Quarter Quarter ended Quarter ended Quarter ended Variance Variance
March 31, 2012 December 31, 2011 March 31, 2011 Q1 2012 vs Q4 2011 Q1 2012 vs Q1 2011
($ amounts in millions; yields not on a taxable equivalent basis) Average
balance Income /
Expense Yield /
Rate Average
Interest earning assets:
Money market, trading and investment securities $ 6,761 $ 52.0 3.07 % $ 6,635 $ 53.9 3.24 % $ 7,470 $ 62.1 3.33 % $ 126 ($1.9 ) (0.17 ) % ($709 ) ($10.1 ) (0.26 ) %
Loans not covered under loss sharing agreements with the FDIC:
Commercial 10,444 126.5 4.87 10,596 131.4 4.92 11,254 139.1 5.01 (152 ) (4.9 ) (0.05 ) (810 ) (12.6 ) (0.14 )
Construction 523 6.5 5.03 564 2.3 1.59 863 3.3 1.56 (41 ) 4.2 3.44 (340 ) 3.2 3.47
Mortgage 5,464 75.5 5.53 5,402 70.5 5.22 4,753 71.4 6.01 62 5.0 0.31 711 4.1 (0.48 )
Consumer 3,661 92.6 10.17 3,680 95.0 10.25 3,668 93.7 10.36 (19 ) (2.4 ) (0.08 ) (7 ) (1.1 ) (0.19 )
Lease financing 555 12.0 8.67 562 11.9 8.44 592 13.3 9.01 (7 ) 0.1 0.23 (37 ) (1.3 ) (0.34 )
Total loans not covered under loss sharing agreements with the FDIC 20,647 313.1 6.09 20,804 311.1 5.95 21,130 320.8 6.14 (157 ) 2.0 0.14 (483 ) (7.7 ) (0.05 )
Loans covered under loss sharing agreements with the FDIC 4,292 74.8 7.00 4,401 88.4 7.99 4,815 102.6 8.61 (109 ) (13.6 ) (0.99 ) (523 ) (27.8 ) (1.61 )
Total loans 24,939 387.9 6.25 25,205 399.5 6.30 25,945 423.4 6.59 (266 ) (11.6 ) (0.05 ) (1,006 ) (35.5 ) (0.34 )
Total interest earning assets 31,700 $ 439.9 5.57 % 31,840 $ 453.4 5.66 % 33,415 $ 485.5 5.87 % (140 ) ($13.5 ) (0.09 ) % (1,715 ) ($45.6 ) (0.30 ) %
Allowance for loan losses (802 ) (751 ) (771 ) (51 ) (31 )
Other non-interest earning assets 5,658 5,655 6,126 3 (468 )
Total average assets $ 36,556 $ 36,744 $ 38,770 ($188 ) ($2,214 )
Interest bearing deposits:
NOW and money market $ 5,246 $ 6.1 0.47 % $ 5,199 $ 6.4 0.49 % $ 4,977 $ 8.9 0.73 % $ 47 ($0.3 ) (0.02 ) % $ 269 ($2.8 ) (0.26 ) %
Savings 6,507 6.3 0.39 6,475 6.4 0.39 6,242 12.6 0.82 32 (0.1 ) 0.00 265 (6.3 ) (0.43 )
Time deposits 10,291 39.3 1.54 10,685 43.3 1.61 11,135 55.4 2.02 (394 ) (4.0 ) (0.07 ) (844 ) (16.1 ) (0.48 )
Total interest bearing deposits 22,044 51.7 0.94 22,359 56.1 0.99 22,354 76.9 1.39 (315 ) (4.4 ) (0.05 ) (310 ) (25.2 ) (0.45 )
Borrowings 4,365 50.6 4.65 4,507 52.5 4.65 6,746 65.2 3.88 (142 ) (1.9 ) 0.00 (2,381 ) (14.6 ) 0.77
Total interest bearing liabilities 26,409 102.3 1.55 26,866 108.6 1.61 29,100 142.1 1.97 (457 ) (6.3 ) (0.06 ) (2,691 ) (39.8 ) (0.42 )
Net interest spread 4.02 % 4.05 % 3.90 % (0.03 ) % 0.12 %
Non-interest bearing deposits 5,213 5,165 4,926 48 287
Other liabilities 1,181 895 1,147 286 34
Stockholders' equity 3,753 3,818 3,597 (65 ) 156
Total average liabilities and stockholders' equity $ 36,556 $ 36,744 $ 38,770 ($188 ) ($2,214 )
Net interest income / margin non-taxable equivalent basis $ 337.6 4.27 % $ 344.8 4.30 % $ 343.4 4.15 % ($7.2 ) (0.03 ) % ($5.8 ) 0.12 %
Quarters ended Variance Variance
March 31, December 31, March 31, Q1 2012 vs. Q1 2012 vs.
(In thousands) 2012 2011 2011 Q4 2011 Q1 2011
Other service fees:
Debit card fees $ 9,832 $ 9,664 $ 12,925 $ 168 $ (3,093 )
Insurance fees 12,390 16,471 11,926 (4,081 ) 464
Credit card fees and discounts 11,892 12,943 10,576 (1,051 ) 1,316
Sale and administration of investment products 8,889 9,686 7,130 (797 ) 1,759
Mortgage servicing fees, net of fair value adjustments 12,931 1,449 6,260 11,482 6,671
Trust fees 4,081 3,722 3,495 359 586
Processing fees 1,774 1,718 1,697 56 77
Other fees 4,250 4,444 4,643 (194 ) (393 )
Total other service fees $ 66,039 $ 60,097 $ 58,652 $ 5,942 $ 7,387
Loans – Ending Balances
(in thousands) March 31, 2012 December 31, 2011 March 31, 2011 Q1 2012 vs. Q4 2011 Q1 2012 vs. Q1 2011
Loans not covered under FDIC loss sharing agreements:
Commercial $ 10,405,896 $ 10,534,886 $ 11,124,330 $ (128,990 ) $ (718,434 )
Construction 290,448 311,628 439,399 (21,180 ) (148,951 )
Lease financing 555,665 563,867 592,092 (8,202 ) (36,427 )
Mortgage 5,591,745 5,518,460 4,895,682 73,285 696,063
Consumer 3,634,920 3,673,755 3,625,286 (38,835 ) 9,634
Total non-covered loans held-in-portfolio $ 20,478,674 $ 20,602,596 $ 20,676,789 $ (123,922 ) $ (198,115 )
Loans covered under FDIC loss sharing agreements 4,221,788 4,348,703 4,729,550 (126,915 ) (507,762 )
Total loans held-in-portfolio $ 24,700,462 $ 24,951,299 $ 25,406,339 $ (250,837 ) $ (705,877 )
Loans held-for-sale:
Commercial $ 25,994 $ 26,198 $ 61,276 $ (204 ) $ (35,282 )
Mortgage 129,356 100,850 116,289 28,506 13,067
Total loans held-for-sale 361,596 363,093 569,678 (1,497 ) (208,082 )
Total loans $ 25,062,058 $ 25,314,392 $ 25,976,017 $ (252,334 ) $ (913,959 )
Deposits – Ending Balances
Demand deposits [1] $ 6,013,009 $ 6,256,530 $ 5,496,313 $ (243,521 ) $ 516,696
Savings, NOW and money market deposits (non-brokered) 11,048,140 10,762,869 10,633,029 285,271 415,111
Savings, NOW and money market deposits (brokered) 212,996 212,688 50,000 308 162,996
Time deposits (non-brokered) 7,186,826 7,552,434 8,565,437 (365,608 ) (1,378,611 )
Time deposits (brokered CDs) 2,736,765 3,157,606 2,451,895 (420,841 ) 284,870
Total deposits $ 27,197,736 $ 27,942,127 $ 27,196,674 $ (744,391 ) $ 1,062
[1] Includes interest and non-interest bearing deposits.
(Dollars in thousands) March 31, 2012 As a percentage
of loans HIP by
category December 31, 2011 As a percentage
category March 31, 2011 As a percentage
category Q1 2012
Q4 2011 Q1 2012
Non-accrual loans:
Commercial $ 818,678 8.3 % $ 830,092 8.3 % $ 699,993 6.7 % $ (11,414 ) $ 118,685
Construction 69,470 29.4 96,286 40.1 126,549 43.7 (26,816 ) (57,079 )
Legacy [1] 79,077 13.1 75,660 11.7 150,117 16.7 3,417 (71,040 )
Lease financing 5,673 1.0 5,642 1.0 5,151 0.9 31 522
Mortgage 667,217 11.9 686,502 12.4 578,106 11.8 (19,285 ) 89,111
Consumer 41,688 1.1 43,668 1.2 53,896 1.5 (1,980 ) (12,208 )
Total non-performing loans held-in- portfolio, excluding covered loans 1,681,803 8.2 % 1,737,850 8.4 % 1,613,812 7.8 % (56,047 ) 67,991
Non-performing loans held-for-sale [2] 232,293 262,302 464,577 (30,009 ) (232,284 )
Other real estate owned ("OREO"), excluding covered OREO 193,768 172,497 156,888 21,271 36,880
Total non-performing assets, excluding covered assets 2,107,864 2,172,649 2,235,277 (64,785 ) (127,413 )
Covered loans and OREO 203,254 192,771 79,075 10,483 124,179
Total non-performing assets $ 2,311,118 $ 2,365,420 $ 2,314,352 $ (54,302 ) $ (3,234 )
Accruing loans past due 90 days or more [3] $ 328,757 $ 316,614 $ 332,384 $ 12,143 $ (3,627 )
Ratios excluding covered loans:
Non-performing loans held-in-portfolio to loans held-in-portfolio 8.21 % 8.44 % 7.80 %
Allowance for loan losses to loans held-in-portfolio 3.25 3.35 3.52
Allowance for loan losses to non-performing loans, excluding held-for-sale 39.53 39.73 45.07
Ratios including covered loans:
[1] The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the BPNA reportable segment.
[2] Non-performing loans held-for-sale as of March 31, 2012 consisted of $206 million in construction loans, $26 million in commercial loans and $53 thousand in mortgage loans (December 31, 2011 – $236 million, $26 million and $59 thousand, respectively; March 31, 2011 – $392 million, $62 million, and $11 million, respectively).
[3] It is the Corporation's policy to report delinquent residential mortgage loans insured by FHA or guaranteed by the VA as accruing loans past due 90 days or more as opposed to nonperforming since the principal repayment is insured. These balances include $58 million of residential mortgage loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of March 31, 2012.
Commercial loans held-in-portfolio:
Quarter ended March 31, 2012 Quarter ended December 31, 2011
(In thousands) BPPR BPNA Popular, Inc. BPPR BPNA Popular, Inc.
Beginning Balance NPLs $ 631,171 $ 198,921 $ 830,092 $ 652,937 $ 180,629 $ 833,566
New non-performing loans 86,446 30,608 117,054 93,403 64,082 157,485
Advances on existing non-performing loans – 227 227 – 21 21
Less:
Non-performing loans transferred to OREO (5,481) (10,434) (15,915) (4,685) (2,138) (6,823)
Non-performing loans charged-off (37,924) (15,121) (53,045) (50,281) (24,019) (74,300)
Loans returned to accrual status / loan collections (53,296) (6,439) (59,735) (60,203) (14,647) (74,850)
Loans transferred to held-for-sale – – – – (5,007) (5,007)
Ending balance NPLs $ 620,916 $ 197,762 $ 818,678 $ 631,171 $ 198,921 $ 830,092
Construction loans held-in-portfolio:
Beginning Balance NPLs $ 53,859 $ 42,427 $ 96,286 $ 64,971 $ 59,635 $ 124,606
New non-performing loans 6,372 – 6,372 7,385 – 7,385
Non-performing loans charged-off (371) (1,380) (1,751) (3,689) (1,118) (4,807)
Loans returned to accrual status / loan collections (3,613) (17,617) (21,230) (14,808) (8,580) (23,388)
Loans transferred to held-for-sale – (10,332) (10,332) – (7,544) (7,544)
Ending balance NPLs $ 56,247 $ 13,223 $ 69,470 $ 53,859 $ 42,427 $ 96,286
Mortgage loans held-in-portfolio:
Beginning Balance NPLs $ 649,279 $ 37,223 $ 686,502 $ 580,563 $ 37,160 $ 617,723
New non-performing loans 186,510 6,256 192,766 232,004 8,421 240,425
Non-performing loans transferred to OREO (21,573) (1,064) (22,637) (12,771) (1,157) (13,928)
Non-performing loans charged-off (20,427) (3,496) (23,923) (12,076) (2,456) (14,532)
Loans returned to accrual status / loan collections (160,272) (5,219) (165,491) (138,441) (4,745) (143,186)
Ending balance NPLs $ 633,517 $ 33,700 $ 667,217 $ 649,279 $ 37,223 $ 686,502
Legacy loans held-in-portfolio:
Quarter ended Quarter ended
(In thousands) March 31, 2012 December 31, 2011
Beginning Balance NPLs $ 75,660 $ 102,551
New non-performing loans 17,373 12,544
Advances on existing non-performing loans 16 13
Non-performing loans transferred to OREO (3,370) (14,390)
Non-performing loans charged-off (8,489) (13,417)
Loans returned to accrual status / loan collections (1,441) (11,173)
Loans transferred to held-for-sale (672) (468)
Ending balance NPLs $ 79,077 $ 75,660
(Dollars in thousands) 2012 2012 2012 2011 2011 2011 2011 2011 2011
Non-covered
loans Covered
loans Total Non-covered
loans Total
Balance at beginning of period $ 690,363 $ 124,945 $ 815,308 $ 692,500 $ 80,421 $ 772,921 $ 793,225 $ – $ 793,225
Provision for loan losses 82,514 18,209 100,723 123,908 55,900 179,808 59,762 15,557 75,319
772,877 143,154 916,031 816,408 136,321 952,729 852,987 15,557 868,544
Net loans charged-off (recovered):
BPPR
Commercial 37,518 4,102 41,620 48,428 10,526 58,954 38,528 1,707 40,235
Construction (371 ) 264 (107 ) 3,820 8 3,828 8,021 4,345 12,366
Lease financing 154 – 154 1,233 – 1,233 1,179 – 1,179
Mortgage 12,226 203 12,429 5,236 746 5,982 7,677 – 7,677
Consumer 24,131 89 24,220 19,592 96 19,688 28,414 346 28,760
Total BPPR 73,658 4,658 78,316 78,309 11,376 89,685 83,819 6,398 90,217
BPNA
Commercial 16,865 16,865 23,104 23,104 17,484 17,484
Construction 166 166 1,102 1,102 764 764
Legacy [1] 3,558 3,558 5,821 5,821 20,249 20,249
Mortgage 5,228 5,228 3,501 3,501 570 570
Consumer 8,634 8,634 14,208 14,208 16,562 16,562
Total BPNA 34,451 34,451 47,736 47,736 55,629 55,629
Net write-downs (recoveries) related to loans transferred to loans held-for-sale – – – – – – (13,807 ) – (13,807 )
Balance at end of period $ 664,768 $ 138,496 $ 803,264 $ 690,363 $ 124,945 $ 815,308 $ 727,346 $ 9,159 $ 736,505
Annualized net charge-offs to average loans held-in-portfolio 2.13 % 1.83 % 2.46 % 2.21 % 2.74 % 2.31 %
Provision for loan losses to net charge-offs 0.76 x 0.89 x 0.98 x 1.31 x 0.43 x 0.52 x
Annualized net charge-offs to average loans held-in-portfolio 2.43 % 3.27 % 3.39 %
Provision for loan losses to net charge-offs 0.43 x 0.75 x 0.14 x
(Dollars in thousands) Commercial Construction Legacy [3] Mortgage Lease
financing Consumer Total [2]
Specific ALLL $ 12,998 $ 1,013 $ 765 $ 40,946 $ 1,344 $ 18,990 $ 76,056
Impaired loans [1] $ 552,152 $ 64,149 $ 47,731 $ 450,754 $ 5,412 $ 138,200 $ 1,258,398
Specific ALLL to impaired loans [1] 2.35 % 1.58 % 1.60 % 9.08 % 24.83 % 13.74 % 6.04 %
General ALLL $ 300,581 $ 8,120 $ 53,960 $ 84,533 $ 3,623 $ 137,895 $ 588,712
Loans held-in-portfolio, excluding impaired loans [1] $ 9,316,090 $ 172,430 $ 556,143 $ 5,140,991 $ 537,902 $ 3,496,720 $ 19,220,276
General ALLL to loans held-in-portfolio, excluding impaired loans [1] 3.23 % 4.71 % 9.70 % 1.64 % 0.67 % 3.94 % 3.06 %
Total ALLL $ 313,579 $ 9,133 $ 54,725 $ 125,479 $ 4,967 $ 156,885 $ 664,768
Total non-covered loans held-in-portfolio [1] $ 9,868,242 $ 236,579 $ 603,874 $ 5,591,745 $ 543,314 $ 3,634,920 $ 20,478,674
ALLL to loans held-in-portfolio [1] 3.18 % 3.86 % 9.06 % 2.24 % 0.91 % 4.32 % 3.25 %
[1] Excludes covered loans acquired on the Westernbank FDIC-assisted transaction.
[2] Excludes covered loans acquired on the Westernbank FDIC-assisted transaction. As of March 31, 2012, the general allowance on the covered loans amounted to $116 million, while the specific reserve amounted to $23 million.
(Dollars in thousands) Commercial Construction Legacy Mortgage Lease
Specific ALLL $ 11,738 $ 289 $ 57 $ 29,063 $ 793 $ 17,046 $ 58,986
[2] Excludes covered loans acquired on the Westernbank FDIC-assisted transaction. As of December 31, 2011, the general allowance on the covered loans amounted to $98 million, while the specific reserve amounted to $27 million.
Variance March 31, 2012 versus December 31, 2011
financing Consumer Total
Specific ALLL $ 1,260 $ 724 $ 708 $ 11,883 $ 551 $ 1,944 $ 17,070
Impaired loans $ (4,177) $ (27,561) $ (1,159) $ 67,874 $ (692) $ (1,908) $ 32,377
General ALLL $ (57,113) $ (72) $ 7,789 $ 11,335 $ (235) $ (4,369) $ (42,665)
Loans held-in-portfolio, excluding impaired loans $ (100,908) $ 24,201 $ (43,376) $ 5,411 $ (4,700) $ (36,927) $ (156,299)
Total ALLL $ (55,853) $ 652 $ 8,497 $ 23,218 $ 316 $ (2,425) $ (25,595)
Total non-covered loans held-in-portfolio $ (105,085) $ (3,360) $ (44,535) $ 73,285 $ (5,392) $ (38,835) $ (123,922)
As of March 31, 2012
(In thousands) Commercial Construction Mortgage Lease financing Consumer Total
Allowance for credit losses:
Specific ALLL non-covered loans $ 11,115 $ 1,013 $ 27,096 $ 1,344 $ 18,887 $ 59,455
General ALLL non-covered loans 210,214 5,658 69,411 3,623 99,175 388,081
ALLL – non-covered loans 221,329 6,671 96,507 4,967 118,062 447,536
Specific ALLL covered loans 22,719 – – – – 22,719
General ALLL covered loans 67,351 29,727 10,517 – 8,182 115,777
ALLL – covered loans 90,070 29,727 10,517 – 8,182 138,496
Total ALLL $ 311,399 $ 36,398 $ 107,024 $ 4,967 $ 126,244 $ 586,032
Impaired non-covered loans $ 402,097 $ 51,023 $ 396,854 $ 5,412 $ 135,745 $ 991,131
Non-covered loans held-in-portfolio, excluding impaired loans 6,027,572 124,745 4,363,491 537,902 2,815,758 13,869,468
Non-covered loans held-in-portfolio 6,429,669 175,768 4,760,345 543,314 2,951,503 14,860,599
Impaired covered loans 72,605 – – – – 72,605
Covered loans held-in-portfolio, excluding impaired loans 2,359,096 532,433 1,150,996 – 106,658 4,149,183
Covered loans held-in-portfolio 2,431,701 532,433 1,150,996 – 106,658 4,221,788
Total loans held-in-portfolio $ 8,861,370 $ 708,201 $ 5,911,341 $ 543,314 $ 3,058,161 $ 19,082,387
As of December 31, 2011
Specific ALLL non-covered loans $ 10,407 $ 289 $ 14,944 $ 793 $ 16,915 $ 43,348
General ALLL covered loans 67,386 20,435 5,310 – 4,728 97,859
ALLL – covered loans 94,472 20,435 5,310 – 4,728 124,945
Total ALLL $ 349,925 $ 26,285 $ 77,632 $ 4,651 $ 119,854 $ 578,347
Specific ALLL non-covered loans $ 708 $ 724 $ 12,152 $ 551 $ 1,972 $ 16,107
General ALLL non-covered loans (34,832 ) 97 12,033 (235 ) 964 (21,973 )
ALLL – non-covered loans (34,124 ) 821 24,185 316 2,936 (5,866 )
Specific ALLL covered loans (4,367 ) – – – – (4,367 )
General ALLL covered loans (35 ) 9,292 5,207 – 3,454 17,918
ALLL – covered loans (4,402 ) 9,292 5,207 – 3,454 13,551
Total ALLL $ (38,526 ) $ 10,113 $ 29,392 $ 316 $ 6,390 $ 7,685
Impaired non-covered loans $ (992 ) $ 1,276 $ 63,508 $ (692 ) $ (1,837 ) $ 61,263
Non-covered loans held-in-portfolio, excluding impaired loans (39,921 ) 13,551 7,354 (4,700 ) (17,087 ) (40,803 )
Non-covered loans held-in-portfolio (40,913 ) 14,827 70,862 (5,392 ) (18,924 ) 20,460
Impaired covered loans (4,193 ) – – – – (4,193 )
Covered loans held-in-portfolio, excluding impaired loans (76,848 ) (14,393 ) (21,958 ) – (9,523 ) (122,722 )
Covered loans held-in-portfolio (81,041 ) (14,393 ) (21,958 ) – (9,523 ) (126,915 )
Total loans held-in-portfolio $ (121,954 ) $ 434 $ 48,904 $ (5,392 ) $ (28,447 ) $ (106,455 )
U.S. Mainland
(In thousands) Commercial Construction Legacy Mortgage Consumer Total
Specific ALLL $ 1,883 $ – $ 765 $ 13,850 $ 103 $ 16,601
General ALLL 90,367 2,462 53,960 15,122 38,720 200,631
Total ALLL $ 92,250 $ 2,462 $ 54,725 $ 28,972 $ 38,823 $ 217,232
Impaired loans $ 150,055 $ 13,126 $ 47,731 $ 53,900 $ 2,455 $ 267,267
Loans held-in-portfolio, excluding impaired loans 3,288,518 47,685 556,143 777,500 680,962 5,350,808
Total loans held-in-portfolio $ 3,438,573 $ 60,811 $ 603,874 $ 831,400 $ 683,417 $ 5,618,075
Specific ALLL $ 1,331 $ – $ 57 $ 14,119 $ 131 $ 15,638
General ALLL 112,648 2,631 46,171 15,820 44,053 221,323
Total ALLL $ 113,979 $ 2,631 $ 46,228 $ 29,939 $ 44,184 $ 236,961
Specific ALLL $ 552 $ – $ 708 $ (269 ) $ (28 ) $ 963
General ALLL (22,281 ) (169 ) 7,789 (698 ) (5,333 ) (20,692 )
Total ALLL $ (21,729 ) $ (169 ) $ 8,497 $ (967 ) $ (5,361 ) $ (19,729 )
Impaired loans $ (3,185 ) $ (28,837 ) $ (1,159 ) $ 4,366 $ (71 ) $ (28,886 )
Loans held-in-portfolio, excluding impaired loans (60,987 ) 10,650 (43,376 ) (1,943 ) (19,840 ) (115,496 )
Total loans held-in-portfolio $ (64,172 ) $ (18,187 ) $ (44,535 ) $ 2,423 $ (19,911 ) $ (144,382 )
(In thousands, except share or per share information) March 31, 2012 December 31, 2011 March 31, 2011
Total stockholders' equity $ 3,967,071 $ 3,918,753 $ 3,804,906
Less: Preferred stock (50,160 ) (50,160 ) (50,160 )
Less: Goodwill (647,911 ) (648,350 ) (647,387 )
Less: Other intangibles (61,798 ) (63,954 ) (56,441 )
Total tangible common equity $ 3,207,202 $ 3,156,289 $ 3,050,918
Total assets $ 37,049,221 $ 37,348,432 $ 38,829,793
Total tangible assets $ 36,339,512 $ 36,636,128 $ 38,125,965
Tangible common equity to tangible assets 8.83 % 8.62 % 8.00 %
Tangible book value per common share $ 3.12 $ 3.08 $ 2.98
(In thousands) March 31, 2012 December 31, 2011 March 31, 2011
Common stockholders' equity $ 3,916,911 $ 3,868,593 $ 3,754,746
Less: Unrealized gains on available-for-sale securities, net of tax [1] (196,878 ) (203,078 ) (141,747 )
Less: Disallowed deferred tax assets [2] (257,440 ) (249,325 ) (143,137 )
Less: Intangible assets:
Goodwill (647,911 ) (648,350 ) (647,387 )
Other disallowed intangibles (26,149 ) (29,655 ) (25,649 )
Less: Aggregate adjusted carrying value of all non-financial equity investments (1,175 ) (1,189 ) (1,612 )
Add: Pension liability adjustment, net of tax and accumulated net gains (losses) on cash flow hedges [3] 211,747 216,798 128,091
Total Tier 1 common equity $ 2,999,105 $ 2,953,794 $ 2,923,305
[1] In accordance with regulatory risk-based capital guidelines, Tier 1 capital excludes net unrealized gains (losses) on available-for-sale debt securities and net unrealized gains on available-for-sale equity securities with readily determinable fair values. In arriving at Tier 1 capital, institutions are required to deduct net unrealized losses on available-for-sale equity securities with readily determinable fair values, net of tax.
[2] Approximately $138 million of the Corporation's $424 million of net deferred tax assets at March 31, 2012 (March 31, 2011 – $106 million and $250 million, respectively; December 31, 2011 – $150 million and $430 million, respectively), were included without limitation in regulatory capital pursuant to the risk-based capital guidelines, while approximately $257 million of such assets at March 31, 2012 (March 31, 2011 – $143 million; December 31, 2011 – $249 million) exceeded the limitation imposed by these guidelines and, as "disallowed deferred tax assets", were deducted in arriving at Tier 1 capital. The remaining $29 million of the Corporation's other net deferred tax assets at March 31, 2012 (March 31, 2011 – $1 million; December 31, 2011 – $31 million) represented primarily the following items (a) the deferred tax effects of unrealized gains and losses on available-for-sale debt securities, which are permitted to be excluded prior to deriving the amount of net deferred tax assets subject to limitation under the guidelines; (b) the deferred tax asset corresponding to the pension liability adjustment recorded as part of accumulated other comprehensive income; and (c) the deferred tax liability associated with goodwill and other intangibles.
[3] The Federal Reserve Bank has granted interim capital relief for the impact of pension liability adjustment.
(In thousands) March 31, 2012 December 31, 2011 Variance
Interest income on covered loans $ 74,764 $ 88,424 $ (13,660 )
FDIC loss share (expense) income:
(Amortization) accretion of indemnification asset (29,375 ) (24,217 ) (5,158 )
80% mirror accounting on provision for loan losses for reductions in expected cash flows that are reimbursable by the FDIC [1] 13,422 38,670 (25,248 )
80% mirror accounting on discount accretion on loans and unfunded commitments accounted for under ASC 310-20 (248 ) (302 ) 54
Other 946 3,296 (2,350 )
Total FDIC loss share (expense) income (15,255 ) 17,447 (32,702 )
Other non-interest income 310 1,092 (782 )
Total revenues 59,819 106,963 (47,144 )
Provision for loan losses 18,209 55,900 (37,691 )
Total revenues less provision for loan losses $ 41,610 $ 51,063 $ (9,453 )
[1] Reductions in expected cash flows for ASC 310-30 loans, which may impact the provision for loan losses, may consider reductions in both principal and interest cash flow expectations. The amount covered under the FDIC loss sharing agreements for interest not collected from borrowers is limited under the agreements (approximately 90 days); accordingly, these amounts are not subject fully to the 80% mirror accounting.
Quarterly average assets: Quarter ended
(In millions) March 31, 2012 December 31, 2011 Variance
Covered loans $ 4,292 $ 4,401 $ (109 )
FDIC loss share asset 1,903 1,893 10
Note issued to the FDIC – 344 (344 )
Activity in the carrying amount and accretable yield of covered loans accounted for under ASC 310-30
Quarter Quarter
(In thousands) Accretable yield Carrying amount
of loans Accretable yield Carrying amount
of loans
Beginning balance $ 1,470,259 $ 3,952,994 $ 1,496,565 $ 4,076,913
Accretion (69,337 ) 69,337 (82,866 ) 82,866
Changes in expected cash flows 141,597 56,560
Collections (127,426 ) (123,308 )
Ending balance 1,542,519 3,894,905 1,470,259 4,036,471
Allowance for loan losses – ASC 310-30 covered loans (94,559 ) (83,477 )
Ending balance, net of allowance for loan losses $ 1,542,519 $ 3,800,346 $ 1,470,259 $ 3,952,994
Friday, April 20th, 2012 Uncategorized Comments Off on Popular, Inc. (BPOP) Reports Net Income of $48.4 million for the Quarter ended March 31, 2012
Colony Bankcorp (CBAN) Announces First Quarter Results
FITZGERALD, Ga., April 20, 2012 (GLOBE NEWSWIRE) — Colony Bankcorp, Inc. (Nasdaq:CBAN), today reported net income available to shareholders of $189,000, or $0.02 per diluted share for the first quarter of 2012 compared to first quarter 2011 net income available to shareholders of $706,000, or $0.08 per diluted share. The decrease was primarily attributable to an increase in loan loss provisions and a decrease in non-interest income for the comparable periods. This was partially offset by an increase in net interest income as Colony's loan and deposit pricing guidance resulted in Colony realizing an increase in net interest income compared to the prior period for the first time in several years. "Our pre-tax, pre-provision core earnings continue to provide solid support for the credit-related expenses needed to address our problem assets. We are cautiously optimistic about recent signs of improvement in the economy and housing and real estate market and that our substandard assets have peaked. Though we had a slight uptick in nonperforming assets to $60.72 million at March 31, 2012 from $59.71 million at December 31, 2011, the substandard assets to tier one equity plus loan loss allowance ratio improved to 72.25% at March 31, 2002 from 75.32% at December 31, 2011. Colony's management, staff and board of directors are committed to reducing our problem assets to an acceptable level and returning to our accustomed earnings standards," said Terry L. Hester, Executive Vice President and Chief Financial Officer. "Our goal during 2012 is to continue making incremental progress and we were able to accomplish that this quarter."
Colony continues to maintain a favorable capital position to be categorized as "well-capitalized" by regulatory benchmarks. At March 31, 2012, the Company's tier one leverage ratio, tier one and total risk-based capital ratios were 9.38 percent, 15.73 percent and 16.99 percent, respectively, compared to the previous quarter end of 9.51 percent, 15.24 percent and 16.50 percent, respectively, at December 31, 2011 and to 8.63 percent, 14.12 percent and 15.39 percent, respectively, at March 31, 2011. Regulatory benchmarks to be categorized as "well-capitalized" for tier one leverage ratio, tier one and total risk-based capital ratios are 5.00 percent, 6.00 percent and 10.00 percent, respectively.
During the first quarter of 2012, the Company reported net interest income of $8.89 million and a net interest margin of 3.23 percent, compared to $8.82 million and 2.98 percent, respectively, for first quarter 2011. The Company continues to focus on maximizing its net interest margin through deposit and loan pricing guidance. Anticipated loan growth along with pricing discipline should result in continued net interest margin improvement the balance of 2012.
Asset Quality
The Company continues to closely monitor our substandard and non-performing assets and focus on problem asset resolution. Substandard assets totaled $90.19 million at March 31, 2012 compared to $92.09 million and $113.65 million, respectively, at December 31, 2011 and March 31, 2011. Substandard assets to tier one capital plus loan loss reserve ratio was 72.25%, 75.32% and 87.39%, respectively, at March 31, 2012, December 31, 2011 and March 31, 2011. Though much work remains to reduce substandard assets, improvement in these ratios reflects solid work in addressing and bringing resolution to substandard assets. Non-performing assets increased slightly from the previous quarter end to $60.72 million or 8.35 percent of total loans and other real estate owned as of March 31, 2012. This compares to $59.71 million or 8.10 percent and $51.02 million or 6.35 percent, respectively, as of December 31, 2011 and March 31, 2011. The level of non-performing assets ties directly to the elevated risk in our residential, land development and commercial real estate loan portfolio and has resulted in higher than normal loan loss provisions the past several years. Unusually high levels of loan loss provisions have been required the past several years as company management addresses asset quality deterioration associated with the housing and real estate downturn and the economy in general. Loan loss reserve methodology resulted in provision for loan losses of $1.94 million in three months ended March 31, 2012 compared to $1.50 million for the comparable 2011 period. Until we see stabilization in the economy and the housing and real estate market, we expect problem assets and charge-offs to be elevated above historical levels as we work through our problem assets.
Though other real estate balances appear to be basically flat over the past nine quarters, much resolution has taken place in liquidating these properties. Other real estate totaled $19.71 million at year end December 31, 2009 compared to $20.99 at March 31, 2012. During this period, $28.96 million has been added to other real estate, thus a reduction from sales and/or write-downs of $27.68 million. This significant movement of properties in a challenging real estate market is indicative of the commitment by Colony management to address its problem assets in a timely and prudent manner. Colony has established a target of twelve months to liquidate improved properties due to the high carrying cost of taxes, insurance, maintenance and repairs associated with holding these properties on our books.
In the first quarter of 2012 net charge-offs were $1.68 million, or 0.24 percent of average loans as compared to net charge-offs of $7.31 million, or 0.92 percent of average loans in first quarter 2011. The loan loss reserve was $15.91 million on March 31, 2012, or 2.25 percent of total loans compared to $15.65 million on December 31, 2011, or 2.18 percent of total loans. Management believes that the 2012 contributions to Allowance for Loan Losses address the level of non-performing assets and the related level of classified assets to be adequately reserved at March 31, 2012.
Noninterest Income
Total noninterest income decreased in the comparable periods as three months ended March 31, 2012 noninterest income was $1.81 million compared to $2.10 million in the comparable 2011 period. Gains realized from the sale of securities totaled $137 thousand in three months ended March 31, 2012 compared to a gain recorded on security transactions during the comparable period in 2011 of $396 thousand to primarily account for the decrease. On a positive note, service charge on deposits increased 5.29% and mortgage fee income increased 30.65% over the prior comparable period. The Company began an initiative during first quarter 2012 to enhance our secondary mortgage lending operations. Mortgage lending training was provided to several current employees to boost our secondary market loan originators from six to sixteen. This will allow better penetration in the markets that Colony serves and result in increased mortgage fee income.
Noninterest Expense
Total noninterest expense increased to $7.98 million in three months ended March 31, 2012 compared to $7.94 million in the comparable 2011 period, or an increase of 0.50 percent. Credit-related expenses continue to be a strain on earnings as write down and losses on OREO property and repossession and foreclosure expenses totaled $763 thousand in three months ended March 31, 2012 compared to $827 thousand in the comparable 2011 period. Salaries and employee benefits expenses increased to $3.82 million in three months ended March 31, 2012 compared to $3.57 million in the comparable 2011 period, or an increase of 7.00 percent. This increase is primarily attributable to an increase in headcount related to increased "back-office" regulatory compliance demands. Occupancy expenses decreased to $938 thousand in three months ended March 31, 2012 compared to $1.02 million in the same comparable 2011 period, or a decrease of 7.68 percent. The decrease was primarily attributable to less depreciation expense for the comparable periods.
Colony Bankcorp, Inc. is a bank holding company headquartered in Fitzgerald, Georgia that consists of one operating subsidiary, Colony Bank. The Company conducts a general full service commercial, consumer and mortgage banking business through thirty offices located in the middle and south Georgia cities of Fitzgerald, Warner Robins, Centerville, Ashburn, Leesburg, Cordele, Albany, Thomaston, Columbus, Sylvester, Tifton, Moultrie, Douglas, Broxton, Savannah, Eastman, Chester, Soperton, Rochelle, Pitts, Quitman and Valdosta, Georgia.
Colony Bankcorp, Inc. Common Stock is quoted on the Nasdaq Global Market under the symbol "CBAN."
Certain statements contained in the preceding release that are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"), notwithstanding that such statements are not specifically identified. In addition, certain statements may be contained in the Company's future filings with the SEC, in press releases, and in oral and written statements made by or with the approval of the Company that are not statements of historical fact and constitute forward-looking statements within the meaning of the Act. Examples of forward-looking statements include, but are not limited to: (i) projections of revenues, income or loss, earnings or loss per share, the payment or nonpayment of dividends, capital structure and other financial items; (ii) statement of plans and objectives of Colony Bankcorp, Inc. or its management or Board of Directors, including those relating to products or services; (iii) statements of future economic performance; and (iv) statements of assumptions underlying such statements. Words such as "believes," "anticipates," "expects," "intends," "targeted" and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements.
Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those in such statements. Forward-looking statements speak only as of the date on which such statements are made. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events. Readers are cautioned not to place undue reliance on these forward-looking statements.
COLONY BANKCORP, INC.
FINANCIAL HIGHLIGHTS (UNAUDITED)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
QUARTER ENDED YEAR-TO-DATE
EARNINGS SUMMARY 03/31/12 03/31/11 03/31/12 03/31/11
Net Interest Income $8,884 $8,818 $8,884 $8,818
Provision for Loan Losses 1,942 1,500 1,942 1,500
Non-interest Income 1,814 2,104 1,814 2,104
Non-interest Expense 7,983 7,939 7,983 7,939
Income Taxes (Benefits) 232 427 232 427
Net Income 541 1,056 541 1,056
Preferred Stock Dividend 352 350 352 350
Net Income Available to
Common Shareholders 189 706 189 706
PER COMMON SHARE SUMMARY 03/31/12 03/31/11 03/31/12 03/31/11
Common Shares Outstanding 8,439,258 8,442,958 8,439,258 8,442,958
Weighted Average Basic Shares 8,439,258 8,439,220 8,439,258 8,439,220
Weighted Average Diluted Shares 8,439,258 8,439,220 8,439,258 8,439,220
Earnings Per Basic Share (b) $0.02 $0.08 $0.02 0.08
Earnings Per Diluted Share (b) $0.02 $0.08 $0.02 $0.08
Common Book Value Per Share $8.23 $7.74 $8.23 $7.74
Tangible Common Book Value Per Share $8.20 $7.70 $8.20 $7.70
OPERATING RATIOS (1) 03/31/12 03/31/11 03/31/12 03/31/11
Net Interest Margin (a) 3.23% 2.98% 3.23% 2.98%
Return on Average Assets (b) 0.06% 0.22% 0.06% 0.22%
Return on Average Total Equity (b) 0.78% 3.05% 0.78% 3.05%
Efficiency (c) 75.35% 75.12% 75.35% 75.12%
(1 ) Annualized
(a) Computed using fully taxable-equivalent net income
(b) Computed using net income available to shareholders
(c ) Computed by dividing non-interest expense by the sum of fully taxable–
equivalent net interest income and non-interest income and excluding
security gains/losses.
ENDING BALANCES 03/31/12 03/31/11
Total Assets $1,176,644 $1,244,075
Loans, Net of Reserves 690,533 760,450
Allowance for Loan Losses 15,910 22,470
Intangible Assets 250 286
Deposits 994,014 1,030,963
Common Shareholders' Equity 69,422 65,316
Common Equity to Total Asset 5.90% 5.25%
Total Equity 97,125 92,860
Total Equity to Total Assets 8.25% 7.46%
AVERAGE BALANCES 03/31/12 03/31/11 03/31/12 03/31/11
Total Assets $1,181,582 $1,256,011 $1,181,582 $1,256,011
Loans, Net of Reserves 692,439 794,563 692,439 794,563
Deposits 992,606 1,041,599 992,606 1,041,599
Common Shareholders' Equity 68,848 65,070 68,848 65,070
Total Equity 96,528 92,594 96,528 92,594
ASSET QUALITY 03/31/12 03/31/11 03/31/12 03/31/11
Nonperforming Loans $39,367 $29,792 $39,367 $29,792
Nonperforming Assets 60,722 51,018 60,722 51,018
Net Loan Chg-offs (Recoveries) 1,682 7,310 1,682 7,310
Reserve for Loan Loss to Gross Loans 2.25% 2.87% 2.25% 2.87%
Reserve for Loan Loss to Non–
performing Loans 40.41% 75.42% 40.41% 75.42%
performing Assets 26.30% 44.04% 26.30% 44.04%
Net Loan Chg-offs (Recoveries)
to Avg. Gross Loans 0.24% 0.92% 0.24% 0.92%
Nonperforming Loans to Gross Loans 5.57% 3.81% 5.57% 3.81%
Nonperforming Assets to Total Assets 5.16% 4.10% 5.16% 4.10%
Nonperforming Assets to Total Loans
And Other Real Estate 8.35% 6.35% 8.35% 6.35%
Quarterly Comparative Data (in thousands, except per share data)
1Q2012 4Q2011 3Q2011 2Q2011 1Q2011
Assets $1,176,644 $1,195,376 $1,145,983 $1,197,573 $1,244,075
Loans 690,533 700,614 724,030 743,656 760,450
Deposits 994,014 999,985 948,356 1,002,207 1,030,963
Common Shareholders' Equity 69,422 68,950 70,308 68,009 65,316
Total Equity 97,125 96,613 97,931 95,592 92,860
Net Income 541 381 558 539 1,056
Common Shareholders 189 31 208 189 706
Net Income Per Share 0.02 0.00 0.02 0.02 0.08
Key Performance Ratios 1Q2012 4Q2011 3Q2011 2Q2011 1Q2011
Return on Average Assets (1) 0.06% 0.01% 0.07% 0.06% 0.22%
Return on Average Total Equity (1) 0.78% 0.13% 0.87% 0.81% 3.05%
Common Equity to Total Assets 5.90% 5.76% 6.14% 5.68% 5.25%
Total Equity to Total Assets 8.25% 8.07% 8.55% 7.98% 7.46%
Net Interest Margin 3.23% 3.28% 3.21% 2.97% 2.98%
(1) Computed using net income available to shareholders
Consolidated Balance Sheets Colony Bankcorp, Inc.
Mar. 31, 2012 Mar. 31, 2011
(unaudited) (audited)
Cash and Due from Banks $18,055 $18,762
Federal Funds Sold 29,770 70,896
Securities Purchased Under Agreements to Resell — 5,000
Interest-Bearing Deposits 28,051 14,736
Available for Sale, at Fair Value 333,608 292,203
Held for Maturity, at Cost (Fair Value of $48 and
$53 as of Mar. 31, 2012 and Mar. 31, 2011, Respectively) 47 50
Federal Home Loan Bank Stock, at Cost 5,398 6,063
Loans 706,513 782,981
Allowance for Loan Losses (15,910) (22,470)
Unearned Interest and Fees (70) (61)
Premises and Equipment 25,772 26,770
Other Real Estate 20,989 21,094
Other Intangible Assets 250 286
Other Assets 24,171 27,765
Noninterest-Bearing $105,473 $94,859
Interest-Bearing 888,541 936,104
Borrowed Money
Securities Sold Under Agreements to Repurchase — 20,000
Subordinated Debentures 24,229 24,229
Other Borrowed Money 57,500 71,981
Other Liabilities 3,776 4,042
Preferred Stock, Par Value $1,000; Authorized 10,000,000
Shares, Issued 28,000 Shares 27,703 27,544
Common Stock, Par Value $1; Authorized 20,000,000
Shares, Issued 8,439,258 and 8,442,958 Shares as of
March 31, 2012 and 2011, Respectively 8,439 8,443
Paid in Capital 29,145 29,171
Retained Earnings 29,604 29,147
Restricted Stock- Unearned Compensation — (30)
Accumulated Other Comprehensive Loss, Net of Tax 2,234 (1,415)
Total Liabilities and Stockholders' Equity $1,176,644 $1,244,075
Consolidated Statements of Income Colony Bankcorp, Inc.
(in thousands except per share data)
Quarter Year-to-Date
Three Months Ended Three Months Ended
03/31/12 03/31/11 03/31/12 03/31/11
(unaudited) (audited) (unaudited) (audited)
Loans, Including Fees $10,420 $11,568 $10,420 $11,568
Federal Funds Sold and Securities Purchased
Under Agreements to Resell 26 34 26 34
Deposits with Other Banks 20 18 20 18
U. S. Government Agencies 1,618 1,843 1,618 1,843
State, County and Municipal 66 29 66 29
Corporate Obligations/Asset-Backed Sec. 24 23 24 23
Dividends on Other Investments 17 12 17 12
Deposits 2,470 3,654 2,470 3,654
Federal Funds Purchased and Securities Sold
Under Agreements to Repurchase — 167 — 167
Borrowed Money 837 888 837 888
Net Interest Income 8,884 8,818 8,884 8,818
Net Interest Income After Provision for Loan Losses 6,942 7,318 6,942 7,318
Service Charges on Deposits 796 756 796 756
Other Service Charges, Commissions and Fees 419 315 419 315
Mortgage Fee Income 81 62 81 62
Securities Gains 137 396 137 396
Other 381 575 381 575
Salaries and Employee Benefits 3,820 3,569 3,820 3,569
Occupancy and Equipment 938 1,016 938 1,016
Other 3,225 3,354 3,225 3,354
Income (Loss) Before Income Taxes 773 1,483 773 1,483
Net Income (Loss) 541 1,056 541 1,056
Preferred Stock Dividends 352 350 352 350
Net Income (Loss) Available to Common Shareholders $189 $706 $189 $706
Net Income (Loss) Per Share of Common Stock
Basic $0.02 $0.08 $0.02 $0.08
Diluted $0.02 $0.08 $0.02 $0.08
Weighted Average Basic Shares Outstanding 8,439,258 8,439,220 8,439,258 8,439,220
Weighted Average Diluted Shares Outstanding 8,439,258 8,439,220 8,439,258 8,439,220
CONTACT: Terry L. Hester
Friday, April 20th, 2012 Uncategorized Comments Off on Colony Bankcorp (CBAN) Announces First Quarter Results
Sky People Fruit Juice (SPU) Provides Supplementary Information of its Fiscal Year End 2011 Cash Balances
XI'AN, China, April 20, 2012 /PRNewswire-Asia-FirstCall/ — SkyPeople Fruit Juice, Inc. (NASDAQ: SPU) ("SkyPeople" or "the Company"), a producer of fruit juice concentrates, fruit beverages and other fruit-related products, today provided supplementary information regarding the Company's cash balances as of its 2011 fiscal year end .
In response to a Nasdaq cash verification request, the Company's independent registered public accounting firm (the "Audit Firm"), Paritz & Company, P.A. ("Paritz"), from January 5 to January 9, 2012, independently verified the Company's cash balances held in financial institutions in China in which the Company and its subsidiaries maintain bank accounts (the "Accounts"). "Independently verified" means that an audit firm visited in person each of the institutions and physically observed bank employees printing or otherwise preparing or completing documentation which substantiated the cash balance for the Accounts. It does not mean that an audit firm relied solely on documentation completed and returned by bank personnel by mail or facsimile.
Based on the Audit Firm's independent verification, the verified cash balances of the Accounts in aggregate represent substantially all of the cash, cash equivalents and restricted cash amounts as stated in the Company's 2011 financial statements as reported in the Company's recent 10-K filing.
Paritz had reported its findings and the procedures it employed to the Nasdaq on January 25, 2012. On April 19, 2012, the Company was informed that Nasdaq has reviewed the cash balance submitted and has no further comments.
"At a time when there is speculation as to the credibility of certain Chinese companies, SkyPeople investors can be reassured that our cash balances have been independently verified and that we employ of a high degree of financial integrity in terms of our financial management systems," said Mr. Yongke Xue, SkyPeople's CEO. "Investors can have confidence in the strength of our balance sheet that enables us to take advantage of the growth opportunities available to us in our sector."
About SkyPeople Fruit Juice, Inc.
SkyPeople Fruit Juice, Inc., a Florida company, through its wholly-owned subsidiary Pacific Industry Holding Group Co., Ltd. ("Pacific"), a Vanuatu company, holds 99.78% ownership interest in SkyPeople Juice Group Co., Ltd. ("SkyPeople (China)"). SkyPeople (China) is engaged in the production and sales of fruit juice concentrates, fruit beverages, and other fruit related products in the PRC and overseas markets. Its fruit juice concentrates are sold to domestic customers and exported directly or via distributors. Fruit juice concentrates are used as a basic ingredient component in the food industry. Its brands, "Hedetang" and "SkyPeople", which are registered trademarks in the PRC, are positioned as high quality, healthy and nutritious end-use juice beverages. For more information, please visit http://www.skypeoplefruitjuice.com.
SkyPeople Fruit Juice, Inc.
Ms. Natasha Zhang, Corporate Secretary, Director of Investor and Public Relations
Email: natasha_zhang@skypeoplejuice.com
Web: www.skypeoplefruitjuice.com
David Rudnick, Account Manager
Tel: US +1-646-626-4172
Email: david.rudnick@ccgir.com
Web: http://www.ccgir.com
SOURCE SkyPeople Fruit Juice, Inc.
Friday, April 20th, 2012 Uncategorized Comments Off on Sky People Fruit Juice (SPU) Provides Supplementary Information of its Fiscal Year End 2011 Cash Balances
Pacific Ethanol (PEIX) and Green Plains Renewable Energy (GPRE) Set for Growth Following E15 Approval by EPA
NEW YORK, NY — (Marketwire) — 04/20/12 — Ethanol stocks are gaining attention after prices for the fuel received a boost in recent weeks following the announcement that the US Environmental Agency (EPA) had officially approved E15 as a registered fuel. "States in the Midwest have begun to address their regulatory requirements and perhaps as early as summer we could see E15 at fuels stations in the Heartland of America. The future for consumers, ethanol producers and this country has just gotten a little brighter, a little stronger," said Bob Dinneen, President and CEO of the Renewable Fuels Association. Five Star Equities examines the outlook for companies in the Ethanol Industry and provides equity research on Pacific Ethanol Inc. (NASDAQ: PEIX) and Green Plains Renewable Energy Inc. (NASDAQ: GPRE).
Access to the full company reports can be found at:
www.FiveStarEquities.com/PEIX
www.FiveStarEquities.com/GPRE
Advocates of ethanol for many years have been seeking government approval for an increase in the proportion of ethanol in the fuel mix sold. The current mix for fuel sold to power vehicles contains 10 percent ethanol and 90 percent gasoline. But a new blend with 15 percent ethanol — known as E15 — can be used by vehicles manufactured in 2001 or later. On April 2 the US Environmental Protection Agency (EPA) officially approved E15 as a registered fuel.
Five Star Equities releases regular market updates on the Ethanol Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at www.FiveStarEquities.com and get exclusive access to our numerous stock reports and industry newsletters.
Pacific Ethanol, Inc. is the leading marketer and producer of low-carbon renewable fuels in the Western United States. Pacific Ethanol also sells co-products, including wet distillers grain (WDG), a nutritional animal feed. Serving integrated oil companies and gasoline marketers who blend ethanol into gasoline, Pacific Ethanol provides transportation, storage and delivery of ethanol through third-party service providers in the Western United States, primarily in California, Nevada, Arizona, Oregon, Colorado, Idaho and Washington.
Green Plains Renewable Energy, Inc. is North America's fourth largest ethanol producer. The company recently announced that it will hold a conference call to discuss its first quarter 2012 financial results on Thursday, April 26, 2012 at 11:00 a.m. ET. Green Plains' participants will include Todd Becker, President and Chief Executive Officer, Jerry Peters, Chief Financial Officer, and Jeff Briggs, Chief Operating Officer. Following their presentation, participants will be available for a brief question and answer session.
Five Star Equities provides Market Research focused on equities that offer growth opportunities, value, and strong potential return. We strive to provide the most up-to-date market activities. We constantly create research reports and newsletters for our members. Five Star Equities has not been compensated by any of the above-mentioned companies. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at: www.FiveStarEquities.com/disclaimer
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Friday, April 20th, 2012 Uncategorized Comments Off on Pacific Ethanol (PEIX) and Green Plains Renewable Energy (GPRE) Set for Growth Following E15 Approval by EPA
RRsat (RRST) and THAICOM Extend Contract for Global Distribution of Vietnam Television
RRsat Global Communications Network Ltd. (NASDAQ: RRST), a leading provider of comprehensive content management and global distribution services to the television and radio broadcasting industries, and THAICOM Plc., Asia's leading commercial satellite operator, announced today that the contract for the global distribution of the Vietnam Television (VTV) channel has been extended.
The VTV-4 channel is downlinked from THAICOM 5 Satellite to RRsat's main teleport, Emek HaEla, and from there uplinked to the Eutelsat Hot Bird Satellite for delivery to Europe, and the Middle East. In addition, the channel is delivered from Emek HaEla over fiber to RRsat's USA based teleport Hawley, Pennsylvania. From the Hawley teleport, the content of the channel is uplinked to Galaxy 19 Satellite and Intelsat 805 Satellite, for distribution to North and South America.
THAICOM has been provided satellite services for 20 years and Vietnam Television is the longest-running international customer on the THAICOM fleet.
Lior Rival, Deputy CEO and VP Sales & Marketing, commented, "We are glad to continue serving, together with THAICOM, our mutual long lasting customer VTV. Our state-of-the-art teleports guarantee the quality delivery of the VTV channel to their end customers."
Komson Seripapong, Vice President of Marketing and Sales, said, "We are pleased that VTV has extended the contract with THAICOM for global television service. THAICOM has broadcasted the VTV-4 channel on its C-band Global beam for more than ten years. We have provided a turnkey global broadcasting solution from Europe to America. We would like to thank RRsat for its long term commitment and collaboration with THAICOM. We look forward for more cooperation in the future."
About RRsat Global Communications Network Ltd.
RRsat Global Communications Network Ltd. (NASDAQ: RRST) provides global, end-to-end, content management and distribution services to the rapidly expanding television and radio broadcasting industries, covering more than 150 countries. Through its RRsat Global Network, composed of satellite and terrestrial fiber optic capacity and the public Internet, RRsat provides high-quality and flexible global distribution services 24/7 to more than 630 channels reaching multiplatform operators, Internet TV and direct-to-home viewers worldwide and also offers occasional use services for sports, news and events with a fleet of flyaways and over 10 transportable satellite news gathering services (SNG) units. More than 130 television and radio channels use RRsat's advanced production and playout centers comprising comprehensive media asset management services. Visit the company's website http://www.rrsat.com
About THAICOM Plc.
THAICOM PLC. founded on November 7, 1991, is a satellite and telecommunications operator with customers throughout Asia, Africa, Europe and Australia. Currently, the Company operates two THAICOM satellites at geostationary orbit. THAICOM 5 carries more than 400 television channels at its 'hotbird' location of 78.5 degrees East while THAICOM 4 (IPSTAR) can deliver broadband services to millions of users across 14 countries in Asia Pacific. THAICOM 6 is presently under construction and planned for launch in 2013 to serve the increasing demand for broadcast services. Partnering with AsiaSat, the Company will launch THAICOM 7 (AsiaSat 6) in 2014. THAICOM is listed on the Stock Exchange of Thailand (SET) under the trade symbol "THCOM".
For more information, please visit the company's website http://www.thaicom.net and http://www.ipstar.com.
About VTV
Vietnam Television (VTV) was established in northern Vietnam in September 1970 and is a national broadcasting station which shall disseminate information and make public lines and policies of the Government of Vietnam.
Colour television was introduced in Vietnam in 1978 and by 1990 Vietnamese viewers were served by two national TV channels. Today Vietnam Television (VTV) comprises many channels: VTV 1 (channel 9) focuses on news and current affairs; VTV 2 (channel 11) covers science, technology and education; and VTV 3 (channel 22) offers sports and entertainment programs. Launched in 2000, the international channel VTV 4 offers the best of local programming from all three domestic channels via satellite to Vietnamese audiences in Asia, North Africa, Europe, North America and South West Australia. A fifth channel, VTV5, was introduced in 2002 to serve the ethnic minority communities living in Vietnam VTV6, VTV9 were started in 2007. VTV6 serves for youth while VTV9 is a channel for all categories from current events, business news, to music and movies to serve Southern audience.
Vietnam Television (VTV) is a full member of the Asia Pacific Broadcasting Union (ABU) and a member of the Asia Pacific Institute for Broadcasting Development (AIBD). It is also active in a variety of other international and regional organizations, including the Asian Institute for International Communication Exchange, the International Council for Francophone Radio and Television, UNICEF and UNESCO. Visit the company's website http://www.vtv.vn
This press release contains forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding (i) the growth of our business and the television and radio broadcasting industries, (ii) our expectation to expand our client base and sell additional services to our existing client base, (iii) our ability to successfully integrate the teleports we acquired, (iv) our ability to develop and commercialize the RRinternetTV service, (v) our expectation to extend the average length of our contracts in the future, (vi) our ability to develop, expand and commercialize our HD Platform, (vii) our ability to report future successes, (viii) our ability to expand our activity in the American market, and (ix) our intention to distribute dividends in the future and the size of any dividends declared. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the companies and the industry as of the date of this press release. The company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or to changes in its expectations, except as may be required by law. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those contemplated by the forward-looking statements, including the risks indicated in our filings with the Securities and Exchange Commission (SEC). For more details, please refer to our SEC filings and the amendments thereto, including our Annual Report on Form 20-F for the year ended December 31, 2011 and our Current Reports on Form 6-K.
Information in this press release concerning Thaicom and VTV is based on information provided by the respective companies and has not been independently verified by RRsat.
Company Contact Information:
Christine Ben Amram, MarCom Manager
Email: marketing@RRsat.com
External Investor Relations Contacts:
Ehud Helft / Porat Saar
rrsat@ccgisrael.com
Wednesday, April 18th, 2012 Uncategorized Comments Off on RRsat (RRST) and THAICOM Extend Contract for Global Distribution of Vietnam Television
Tri-Valley Corporation (TIV) Reports 2011 Financial Results
Tri-Valley Corporation (NYSE Amex: TIV) today announced its financial results for the year ended December 31, 2011. Oil and gas production revenues grew 34% to $2.3 million in 2011 from $1.8 million in the prior year, reflecting increased production at both the Pleasant Valley and Claflin oil fields and higher oil prices. Net oil production in 2011 totaled 29,785 barrels compared with 24,559 barrels in 2010, an increase of 21%. Oil prices on average in 2011 were 10% higher than 2010. Net production costs increased 20% from 2010, largely the result of an increase in production and steaming activity at Claflin.
"The growth in oil revenues reflects the success of our efforts during the past year to increase production at Pleasant Valley and establish new wells at Claflin," said Maston Cunningham, President and CEO of Tri-Valley Corporation. "At Pleasant Valley, during 2011 we increased oil production through a more aggressive steam cycle program and optimized artificial lift methods which reduced bottlenecks in our production process. Gross production of native oil at Pleasant Valley increased 33% from 202 to 269 barrels per day. At Claflin, during 2011 we drilled eight new wells in the second quarter, but had to shut down our steam generation facility for modifications required for new safety and emissions permits. Steam generation resumed in November following modification of our 19.5 MMBTU/hour steam generator and receipt of the new permits. Through the end of December 2011, six of the eight new wells had been steamed and we have received good production response. Gross production at Claflin increased 51% during 2011 and averaged 43 barrels per day in December following resumption of steam injection in the fourth quarter. Initial steam injection for the remaining two new wells was completed in early January. In addition to higher production, our oil revenues also benefitted from higher oil prices available through our recently signed agreements with Plains Marketing and ConocoPhillips and market dislocation factors which caused California heavy crudes to sell at a premium to the West Texas Intermediate Crude for most of the year. On average, we realized an improvement in price of approximately $6.95 per barrel over 2010."
"We continue to work with the OPUS Special Committee to finalize the OPUS restructuring agreement for distribution to the OPUS partners. Due to the complexity of required disclosures and the emergence of additional legal and tax issues, finalization of the package could not be completed by year end. Recently, we have reached an agreement with the Special Committee on a framework for revised terms that we believe will successfully address these concerns, as well as settle alleged contract claims against the Company pursuant to the OPUS partnership agreements at closing. We currently expect to complete the revised term sheet by April 30, 2012 which will guide finalization of the definitive agreements, including the Information Statement and Consent Solicitation, which will be forwarded to the OPUS partners for their consideration and vote," Mr. Cunningham continued.
"Turning to our Alaskan minerals operation, McEwen Mining Inc. (formerly known as US Gold Corporation), our partner in the exploration and development of the Richardson precious minerals property, completed its initial sampling and testing on the property, collecting 1,507 power auger soil samples and approximately 150 rock samples," said Mr. Cunningham. "Core drilling of 2,863 feet in three holes was performed, with 616 samples collected and sent for laboratory analysis. In addition, airborne magnetic and gamma-ray spectrometry geophysics were acquired. The field work was suspended in October 2011 due to the onset of winter. We also conducted field work on our Shorty Creek property, where a geologic evaluation has confirmed the presence of a potentially large porphyry copper, gold and molybdenum system. In August 2011, we conducted a minimum field program to fulfill our annual labor obligation and analyzed 73 soil and five rock samples in the Wilbur Creek area. We plan to conduct follow up exploration work in the summer of 2012 and we continue to seek a strategic partner for further exploration efforts there."
Tri-Valley has also made progress recently on several additional corporate initiatives this year:
Engaged AJM Deloitte based in Calgary to evaluate the Claflin and Brea leases located in the Edison Field.
Engaged Cannon Engineering Corp. for front-end engineering design and estimated costs for surface facilities required for a SAGD pilot at Pleasant Valley.
On March 30, 2012, the Company entered into definitive agreements with the trust of G. Thomas Gamble for the issuance of a senior secured note in the amount of $3,298,310 to replace the three short-term notes made to the Company in 2011. The senior secured note carries a 14% per year interest rate and matures on April 30, 2013. The senior secured note was accompanied by a warrant to purchase 3,000,000 shares of the Company's common stock, at an exercise price of $0.19 per share exercisable for a period of five (5) years from March 30, 2012. As an inducement to the Gamble trust, the Company agreed to assign, in perpetuity, 2% of its overriding royalty interests (ORRI) on the Claflin lease and 1% of its ORRIs on other specified leases in and around the Claflin property, with proceeds to begin after all obligations under the senior secured note are paid in full.
On April 3, 2012, the Gamble trust loaned the Company $1.5 million, also at 14% per year and due on April 30, 2013, and the proceeds from this loan were used to pay the $1.5 million settlement with the plaintiffs in the Hansen lawsuit regarding ownership of mineral rights on the Hansen property in the Oxnard Field.
"Tri-Valley made good operational progress during 2011 and we expect to continue our efforts to increase the production, efficiency and revenues from our oil operations in 2012. We have also established important milestones for the year that we are focused on accomplishing to ensure we remain a viable company positioned for growth and an improved financial performance. On behalf of the Board, I would like to thank our employees for their hard work and dedication this past year and our OPUS partners and TIV shareholders for their patience and support," concluded Mr. Cunningham.
2012 Milestones
The Company provided the following milestones for 2012:
Complete OPUS restructuring agreement and distribute to OPUS partners for review and vote
Secure additional working capital and financing for other corporate expansion initiatives, including SAGD and additional wells at Claflin
Begin implementation of SAGD pilot project at Pleasant Valley to increase oil recovery. Plans call for two new horizontal wells, one producer and one continuous steam injector. Completion and testing of the SAGD pilot is not anticipated until 2013
Complete next stage of Claflin Development:
Drill up to three new horizontal wells
Recomplete two vintage wells to produce the Chanac formation
Recomplete one idle vintage well for injection of produced water
Upgrade surface facilities
Secure a strategic partner for Shorty Creek minerals property
Sell our idle drilling rig that is stacked in Fallon, Nevada
2011 Financial Highlights
Total revenues for 2011 were $2.6 million compared with $1.9 million in 2010. Oil and gas revenues increased 34% to $2.3 million compared with $1.8 million the prior year.
Total costs and expenses were $14.3 million compared with $10.5 million in 2010. Oil and gas production costs increased 20%, largely reflecting the increased production activity at Claflin. Also included in total costs were $2.4 million in asset write-offs or impairment charges, including expired leases on unproved oil and gas properties, equipment and goodwill. The 2011 costs also reflect the $1.5 million Hansen litigation settlement.
The net loss in 2011 totaled $11.7 million, or $0.19 per share, compared with a net loss of $8.7 million, or $0.24 per share, in 2010. Weighted average shares outstanding in 2011 were 63.1 million compared with 36.7 million in 2010, reflecting the sale of common stock through the Company's ATM facility with C.K. Cooper & Company and the private placement financing completed in April 2011 for a total of 21.4 million shares.
Tri-Valley ended the year with $0.6 million in cash on the balance sheet. Long-term debt totaled $3.5 million. The Company also announced that its independent public accounting firm included a going concern qualification in their otherwise unqualified report on the Company's financial statements for the fiscal year ended December 31, 2011. The financial statements are contained in the Company's Annual Report on Form 10-K, filed with the Securities and Exchange Commission on April 16, 2012.
About Tri-Valley
Tri-Valley Corporation explores for and produces oil and natural gas in California and has two exploration-stage gold properties in Alaska. Tri-Valley is incorporated in Delaware and is publicly traded on the NYSE Amex exchange under the symbol "TIV." Our Company website, which includes all SEC filings, is www.tri-valleycorp.com.
All statements contained in this press release that refer to future events or other non-historical matters are forward-looking statements. We have attempted to identify forward-looking statements by terminology including "anticipates," "believes," "can," "continue," "could," "estimates," "expects," "hope," "intends," "may," "plans," "potential," or "predicts," or the negative of these terms or other comparable terminology. Although we do not make forward-looking statements unless we believe we have a reasonable basis for doing so, we cannot guarantee their accuracy. These statements are only predictions based on management's expectations as of the date of this press release, and involve known and unknown risks, uncertainties and other factors, including: our ability to obtain additional funding; the outcome of an ongoing investigation by the staff of the SEC; fluctuations in oil and natural gas prices; imprecise estimates of oil reserves; drilling hazards such as equipment failures, fires, explosions, blow-outs, and pipe failure; shortages or delays in the delivery of drilling rigs and other equipment; problems in delivery to market; adverse weather conditions; compliance with governmental and regulatory requirements; geographical concentration of oil and gas reserves in the State of California; changes in, or inability to enter into or maintain, strategic and joint venture partnerships; pending and threatened lawsuits against us; potential rescission rights stemming from our potential violation of Section 5 of the Securities Act of 1933; our ability to consummate the OPUS restructuring transaction; the continued listing of our common stock on the NYSE Amex; and such other risks and factors that are discussed in our filings with the Securities and Exchange Commission from time to time, including under "Part I, Item 1A. Risk Factors" and "Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations," contained in Tri-Valley's Annual Report on Form 10-K for the year ended December 31, 2011. Except as required by law, Tri-Valley undertakes no obligation to update or revise publicly any of the forward-looking statements after the date of this press release to conform such statements to actual results or to reflect events or circumstances occurring after the date of this press release.
Notice to OPUS Partners and Additional Information about the Restructuring Transaction
This press release is neither an offer to purchase nor a solicitation of an offer to sell any securities. The equity interests of the new joint venture company to be issued in connection with the OPUS restructuring transaction will not be registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. No securities of the new joint venture company will be issued or sold in any state in which such offer, solicitation or sale would be unlawful absent registration or qualification under the securities laws of such state.
In connection with the potential restructuring transaction, Tri-Valley Corporation, as the managing partner of OPUS, will prepare and distribute an Information Statement and Consent Solicitation to all OPUS partners. OPUS partners are urged to read carefully the Information Statement and Consent Solicitation, and the other relevant materials, when they become available before making any voting or investment decision with respect to the proposed restructuring transaction, because they will contain important information about the transaction and the parties to the transaction. Tri-Valley Corporation and its respective directors, executive officers, and employees are expected to participate in the solicitation of consents to the proposed restructuring transaction from OPUS partners. OPUS partners may obtain more detailed information regarding the names, affiliations and interests of certain of Tri-Valley's executive officers, directors and/or other employees in the solicitation by reading the Information Statement and Consent Solicitation, and other relevant materials, when they become available and are distributed to the OPUS partners.
When available, Tri-Valley Corporation will distribute the Information Statement and Consent Solicitation, and other relevant materials, to all OPUS partners of record. OPUS partners may obtain free copies of the Information Statement and Consent Solicitation, when available, by contacting Tri-Valley Corporation at 4927 Calloway Drive, Bakersfield, California 93312, or at (661) 864-0500.
TRI-VALLEY CORPORATION
DECEMBER 31, 2011 AND 2010
Cash $ 584,415 $ 581,148
Accounts receivable 1,864,936 4,492,448
Prepaid and other 1,048,133 615,778
Oil and gas properties (successful efforts basis), other property and equipment, net) 8,393,499 6,719,353
Long-term receivables 6,339,144 1,830,317
Other long-term assets 419,128 762,448
$ 18,649,255 $ 15,001,492
Accounts payable and accrued expenses $ 8,608,525 $ 8,052,388
Settlement of claim 1,500,000 –
Debt 76,041 134,322
Asset retirement obligations – current portion 22,881 –
10,207,447 8,186,710
Asset retirement obligations 525,985 206,183
Long-term debt 3,522,746 455,246
Commitments and Contingencies – –
Series A preferred stock – 10.00% cumulative; $0.001 par value; $10.00 liquidation value; 20,000,000 shares authorized; 438,500 shares outstanding 439 439
Common stock, $0.001 par value; 100,000,000 shares authorized; 67,615,407 and 44,750,964 shares issued at December 31, 2011 and 2010, respectively. 67,615 44,751
Less: common stock in treasury, at cost; none and 161,847 shares at December 31, 2011 and 2010, respectively. – (38,370 )
Capital in excess of par value 72,657,724 63,112,372
Additional paid in capital – warrants 1,397,428 1,350,678
Additional paid in capital – stock options 3,073,360 2,806,945
YEARS ENDED DECEMBER 31,
Oil and gas $ 2,347,368 $ 1,756,570
Interest income and other 267,939 98,890
Oil and gas production 1,814,405 1,507,434
Mining exploration 90,711 371,975
Write off and impairment loss 2,393,779 140,242
Loss on settlement of claim 1,500,000 –
Depreciation, depletion and amortization 683,530 570,020
Stock-based compensation 418,477 1,846,253
Exploration expense 362,402 –
Interest 234,613 324,241
Gain on sale of assets (44,335 ) (3,014,244 )
Bad debt – 44,391
Loss on derivative instruments – 1,846,611
14,295,334 10,521,257
Net loss $ (11,680,027 ) $ (8,665,797 )
Cumulative, undeclared preferred stock dividends (523,045 ) (88,750 )
Net loss allocated to common shareholders (12,203,072 ) (8,754,547 )
Basic and diluted loss per common share $ (0.19 ) $ (0.24 )
Weighted average number of common shares outstanding 63,134,690 36,659,198
Adjustments to reconcile net loss to net cash from operating activities:
Dry hole expense 123,653 –
Other 23,736 –
Changes in non-cash working capital items:
(Increase) decrease in accounts receivable (2,730,877 ) 673,489
Increase in prepaid and other (432,355 ) (752,809 )
Increase in accounts payable and accrued expenses and current portion of asset retirement obligations 750,322 602,764
Increase in settlement of claim 1,500,000 –
Net cash used in operating activities (8,994,097 ) (6,709,080 )
Capital expenditures (5,097,221 ) (1,992,831 )
Proceeds from sale of assets 318,894 4,369,311
Changes in non-cash working capital related to investing activities and other long-term assets 1,290,600 562,500
Net cash provided by (used in) investing activities (3,487,727 ) 2,938,980
Net proceeds from the issuance of common stock and warrants 9,475,872 5,328,687
Principal payments on debt (140,781 ) (1,245,565 )
Proceeds from issuance of debt 3,150,000 –
Purchase of treasury stock – (25,000 )
Proceeds from exercise of stock options – 2,200
Net cash provided by financing activities 12,485,091 4,060,322
Net increase in cash 3,267 290,222
Cash at the beginning of the year 581,148 290,926
Cash at the end of the year $ 584,415 $ 581,148
Supplemental Schedule of Non-Cash Transactions
Issuance of preferred stock for:
Debt $ – $ 850,000
Partnership interests – 3,535,000
$ – $ 4,385,000
Wednesday, April 18th, 2012 Uncategorized Comments Off on Tri-Valley Corporation (TIV) Reports 2011 Financial Results
Cimatron (CIMT) Receives Court Approval for Cash Distributions to Shareholders
Cimatron Limited (NASDAQ and TASE: CIMT) announced today that following its announcement from November 29, 2011 to seek court approval for cash distributions to shareholders, the Israeli court today approved the distribution to Cimatron shareholders of up to US$10 million. The distribution may be effected over the course of a 12 month period following the approval of the court, subject to subsequent Board approvals of specific payments out of the total potential distribution amount. Cimatron is also in the process of seeking a ruling from the Israeli Tax Authority with respect to withholding on any such future distributions.
Prior to any specific distribution, Cimatron will issue a press release announcing the exact distribution amount, record date and distribution date.
About Cimatron
With 30 years of experience and more than 40,000 installations worldwide, Cimatron is a leading provider of integrated, CAD/CAM software solutions for mold, tool and die makers as well as manufacturers of discrete parts. Cimatron is committed to providing comprehensive, cost-effective solutions that streamline manufacturing cycles and ultimately shorten product delivery time.
The Cimatron product line includes the CimatronE and GibbsCAM brands with solutions for mold design, die design, electrodes design, 2.5 to 5 axes milling, wire EDM, turn, mill-turn, rotary milling, multi-task machining, and tombstone machining. Cimatron's subsidiaries and extensive distribution network serve and support customers in the automotive, aerospace, medical, consumer plastics, electronics, and other industries in over 40 countries worldwide.
Cimatron's shares are publicly traded on the NASDAQ exchange and the Tel Aviv Stock Exchange under the symbol CIMT. For more information, please visit Cimatron's web site at: http://www.cimatron.com
This press release includes forward looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risk and uncertainties that could cause actual results to differ materially from those anticipated. Such statements may relate to Cimatron's plans, objectives and expected financial and operating results. The words "may," "could," "would," "will," "believe," "anticipate," "estimate," "expect," "intend," "plan," and similar expressions or variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond Cimatron's ability to control. The risks and uncertainties that may affect forward looking statements include, but are not limited to: currency fluctuations, global economic and political conditions, marketing demand for Cimatron products and services, long sales cycles, new product development, assimilating future acquisitions, maintaining relationships with customers and partners, and increased competition. For more details about the risks and uncertainties related to Cimatron's business, refer to Cimatron's filings with the Securities and Exchange Commission. Cimatron cannot assess the impact of or the extent to which any single factor or risk, or combination of them, may cause. Cimatron undertakes no obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise.
Ilan Erez
Cimatron Ltd.
Email: ilane@cimatron.com
Wednesday, April 18th, 2012 Uncategorized Comments Off on Cimatron (CIMT) Receives Court Approval for Cash Distributions to Shareholders
Wowjoint Holdings Ltd. (BWOW) Announces New International Contract & Provides Business Update
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.
"We are excited to announce this agreement in Malaysia," stated Yabin Liu, Chief Executive Officer of Wowjoint Holdings Limited. "This demonstrates our focus on expansion outside of China and providing a larger revenue stream for the Company. We are proud of our R&D team for their constant drive to develop new products and we believe this new MSS machine could have a substantial worldwide demand."
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.
The Company has an organized and dedicated team focusing on R&D and project development. In addition to developing machines for the bridge construction industry, this team has been developing technology and products relating to the renewable energy sector including items such as a wind turbine hoist, and other large lifting equipment that can be utilized by [wind turbine, solar power and biomass power generation device manufacturers. Wowjoint is working on a joint venture in Europe to develop projects that can take advantage of the current preferential policies provided to the renewable energy industry in various European countries. The Company believes it can utilize its Chinese manufacturing advantages and its high-quality design and production capability to invest in this industry development both in China and in Europe, thereby ultimately having a large entry into the green energy industry.
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."
About Wowjoint Holdings Limited
Wowjoint is a leading provider of customized heavy duty lifting and carrying machinery used in large scale infrastructure projects such as railway, highway and bridge construction. Wowjoint's main product lines include launching gantries, tyre trolleys, special carriers and marine hoists. The Company's innovative design capabilities have resulted in patent grants and proprietary products. Wowjoint is well positioned to benefit directly from China's rapid infrastructure development by leveraging its extensive operational experience and long-term relationships with established blue chip customers. Information on Wowjoint's products and other relevant information are available on its website at http://www.wowjoint.com.
This press release includes "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," "continue," and similar expressions are intended to identify such forward-looking statements. Forward-looking statements in this press release include matters that involve known and unknown risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to differ materially from results expressed or implied by this press release. Wowjoint undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after the date of this communication. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this communication. All forward-looking statements are qualified in their entirety by this cautionary statement. All subsequent written and oral forward-looking statements concerning Wowjoint or other matters and attributable to Wowjoint or any person acting on their behalf are expressly qualified in their entirety by the cautionary statements above. Wowjoint does not undertake any obligation to update any forward-looking statement, whether written or oral, relating to the matters discussed in this news release.
For additional information contact:
Wowjoint Holdings:
Aubrye Foote, Vice President Investor Relations
Email: aubrye@wowjoint.com
Website: www.wowjoint.com
SOURCE Wowjoint Holdings Limited
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