China TransInfo Announces Record Third Quarter Results
Technology Corp., (Nasdaq: CTFO), (“China TransInfo” or “the Company”), a
leading provider of public transportation information systems technology and
comprehensive solutions in
announced its financial results for the third quarter ended
Third Quarter 2009 Highlights
-- Revenues increased 115.0% to $19.2 million, from $8.9 million in the
comparable period of 2008.
-- Gross profit increased 49.1% to $7.4 million, as compared to $4.9
million for the same period of last year.
-- Operating income grew 28.0% to $4.3 million, from $3.3 million for
the same period of last year.
-- Net income attributable to China TransInfo increased 28.3% to $4.0
million, or $0.18 per fully diluted share, as compared to $3.1
million, or $0.14 per fully diluted share, in the comparable period
of 2008.
-- Expanded further into the transportation systems market in China by
acquiring a 35.17% of the equity interest in Beijing UNISITS
Technology Co. Ltd. ("UNISITS").
-- Launched TransPLE Passenger Flow Statistic, Detecting and Analysis
System ("TransPLE") and China's first multi-city real-time traffic
website (http://www.palmcity.cn ) and mobile phone software with
initial coverage in Chinese cities, including Beijing, Shanghai,
Chongqing, Chengdu, and Wuhan.
-- Awarded a RMB 31.8 million (approximately $4.7 million) contract by
the Wuhan Municipal Transportation Management Bureau to construct a
transportation management system (the "Wuhan Project").
-- Established a subsidiary in Chongqing and opened a branch in
Hangzhou.
-- Transferred the listing of its common stock to the Nasdaq Global
Market from the Nasdaq Capital Market.
“During the third quarter of 2009, we achieved strong progress in many of
our key business segments,” said Mr.
China TransInfo. “Our newly launched TransPLE and multi-city real-time traffic
website and mobile phone software are backed by our proprietary advanced
technologies. Both applications feature strong market potential in their
respective niches. In addition to our geographic expansion in
markets, including the recently announced
million
management system. Through our controlling interest in UNISITS, we expect to
further increase our market penetration and tap the potentially lucrative
domestic expressway information service market.”
Third Quarter 2009 Results
During the three months ended
115.0% to
primarily due to increased business and brand recognition in the
transportation information sector. Revenues from our transportation, digital
city, and land & resource segments accounted for 90.7%, 4.1%, and 5.1% of
total revenues, respectively.
Gross profit increased 49.1% to
in the same period of 2008. Gross margin decreased to 38.4% from 55.4% in the
comparable period of 2008, mainly due to the inclusion of UNISITS’ financials
in the Company’s consolidated financial statements since UNISITS concentrates
on lower margin traffic engineering E&M systems for expressways in
legacy business continues to remain strong with gross margins above 50% in the
three months ended
Selling, general and administrative expenses were
compared to
million
Company strategically increased its marketing budget to grow its brand
awareness in the transportation information sector. For example, the Company
has attended more industry trade shows and conferences in 2009 than in
previous years. General and administrative expenses were approximately
million
significant increase in general and administrative expenses was mainly due to
increased staffing levels, additional research and development initiatives,
and higher professional fees associated with being a public company.
Operating income increased 28.0% to
from
Net income attributable to the Company increased 28.3% to
income attributable to the Company excluding non-cash expenses was
million
per fully diluted share, in the same period last year.
The diluted weighted average number of shares outstanding increased from
21.5 million in the third quarter of 2008 to 22.6 million in the quarter ended
private placement in
Nine Months 2009 Results
In the nine months ended
profit increased 47.3% to
period of 2008. Gross margin was 43.6%, as compared to 55.8% in the year ago
period. Operating income rose 16.6% to
million
TransInfo increased 18.0% to
from
last year. Adjusted net income attributable to China TransInfo excluding
non-cash expenses was
basis, compared to
in the same period of 2008.
Financial Condition
As of
cash totaled
In addition, the Company reported working capital of
current liabilities of
million
Net cash used in operations was
million
Business Outlook
“In addition to launching our TransPLE and real-time traffic website, we
recently added our mobile phone application, Palmcity Live-Traffic, to China
Telecom’s Surfing Space AppMarket. As a result, we are well-positioned to
benefit from
growth in private vehicle ownership. As of
backlog was approximately
our financial goals for 2009. In addition, we are very pleased with our
controlling position in UNISITS, which is expected to further expand our
footprint in the transportation systems market in
As a result of the strong top line growth in the first nine months of 2009
as well as our consolidation of UNISITS’ financials, China TransInfo has
increased its fiscal year 2009 revenue guidance under US GAAP from previously
announced
income, excluding amortizations of intangible assets from acquisitions as well
as non-cash share-based compensation, to be between
for fiscal year 2009.
Conference Call
China TransInfo will host a conference call at
participate in the live conference call, please dial the following number five
to ten minutes prior to the scheduled conference call time: 1-888-339-2688.
International callers should dial +1-617-847-3007. When prompted by the
operator, mention conference pass code 809 092 57.
If you are unable to participate in the call at this time, a replay will
be available for seven days after the call is held. To access the replay,
please dial 1-888-286-8010 or +1-617-801-6888 from outside the US and enter
pass code 226 532 06.
In addition, the call will be broadcast live over the internet via the
following link:
http://www.chinatransinfo.com/WebCast.aspx?sortId=44&sortPId=5
Use of Non-GAAP Financial Information
GAAP results for the three month and nine month periods ended
2009
assets from acquisitions. To supplement the Company’s condensed consolidated
financial statements presented on a GAAP basis, the Company has provided
non-GAAP financial information, which is adjusted net income and adjusted
earnings per share, excluding the impact of these items in this release. The
Company’s management believes that these non-GAAP measures provide investors
with a better understanding of how the results relate to the Company’s
historical performance. Management believes that these non-GAAP financial
measures are useful to investors because they exclude non-cash expenses that
management excludes when it internally evaluates the performance of the
Company’s business and makes operating decisions, including internal budgeting,
and performance measurement, because these measures provide a consistent
method of comparison to historical periods. Moreover, management believes that
these non-GAAP measures reflect the essential operating activities of the
Company. In addition, the provision of these non-GAAP measures allows
investors to evaluate the Company’s performance using the same methodology and
information as that used by the Company’s management. Non-GAAP measures are
subject to inherent limitations because they do not include all of the
expenses included under GAAP and because they involve the exercise of judgment
of which charges are excluded from the non-GAAP financial measure. However,
the Company’s management compensates for these limitations by providing the
relevant disclosure of the items excluded. A reconciliation of adjustments to
GAAP results appears below. This additional non-GAAP information is not meant
to be considered in isolation or as a substitute for GAAP financials. The
non-GAAP financial information that the Company provides also may differ from
the non-GAAP information provided by other companies.
About China TransInfo
China TransInfo, through its affiliate, China TransInfo Technology Group
Co., Ltd., (the “Group Company”) and the Group Company’s PRC operating
subsidiaries, is primarily focused on providing transportation information
services and comprehensive solutions based on GIS technologies. The Company
aims to become the largest transportation information products and
comprehensive solutions provider, as well as the largest real time
transportation information platform operator and provider in
addition, the Company is developing its transportation system to include
Electronic Toll Collection (ETC) technology. As the co-formulator of several
transportation technology national standards, the Company owns software
copyrights for 88 software products and has won 5 of the 10 model cases
sponsored by the PRC Ministry of Communications. The Company’s affiliation
with Peking University provides the Company access to the University’s GeoGIS
Research Laboratory, including over 30 Ph.D. researchers. As a result, the
Company is playing a key role in setting the standards for electronic
transportation information solutions. For more information, please visit the
Company’s website at http://www.chinatransinfo.com .
Safe Harbor Statement
This press release contains certain statements that may include “forward
looking statements”. All statements other than statements of historical fact
included herein are “forward-looking statements”. These forward looking
statements are often identified by the use of forward-looking terminology such
as “believes,” “expects” or similar expressions, involve known and unknown
risks and uncertainties. Although the Company believes that the expectations
reflected in these forward-looking statements are reasonable, they do involve
assumptions, risks and uncertainties, and these expectations may prove to be
incorrect. You 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
(http://www.sec.gov ). All forward-looking statements attributable to the
Company or 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.
For more information, please contact:
China TransInfo Technology Corp.
Ms. Fan Zhou, IR Director
Tel: +86-10-8267-1299 x8033
Email: ir@ctfo.com
CCG Investor Relations Inc.
Mr. Crocker Coulson, President
Tel: +1-646-213-1915 (New York)
Email: crocker.coulson@ccgir.com
Web: http://www.ccgirasia.com
--FINANCIAL TABLES FOLLOW--
CHINA TRANSINFO TECHNOLOGY CORP. AND ITS SUBSIDIARIES UNAUDITED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
Revenues $19,165,553 8,913,514 $35,256,869 $18,685,813
Cost of revenues 11,809,948 3,979,049 19,896,690 8,258,137
Gross profit 7,355,605 4,934,465 15,360,179 10,427,676
Operating Expenses 3,097,483 1,607,712 6,797,818 3,085,992
Income from operations 4,258,122 3,326,753 8,562,361 7,341,684
Other income
(expense):
Interest income 18,909 23,575 51,392 50,759
Interest expense -42,038 -66,066 -132,027 -75,983
Subsidy income 188,829 305,804 308,113 305,804
Other incomes - net 52,433 4,239 59,301 --
Total other income
(expense) 218,133 267,552 286,779 280,580
Net income before
income taxes 4,476,255 3,594,305 8,849,140 7,622,264
Income tax expenses:
Current 94,980 -- 109,946 --
Deferred -9,116 109,864 -- 49,971
Total income tax
expense (benefit) 85,864 109,864 109,946 49,971
Net income including
noncontrolling
interest 4,390,391 3,484,441 8,739,194 7,572,293
Less: Net income
attributable to
noncontrolling
interests 415,114 386,900 515,588 601,691
Net income
attributable to CTFO $3,975,277 $3,097,541 $8,223,606 $6,970,602
Weighted average
CTFO shares of
outstanding -
Basic 22,333,000 21,325,245 22,245,288 20,175,820
Diluted 22,579,496 21,522,431 22,485,924 20,393,171
Earnings per share
attributable to CTFO
common shareholders -
Basic $0.18 $0.15 $0.37 $0.35
Diluted $0.18 $0.14 $0.37 $0.34
Comprehensive income
Net income including
noncontrolling
interest $4,390,391 3,484,441 $8,739,194 $7,572,293
Translation
adjustments -283,124 47,347 -388,589 1,375,751
Comprehensive income $4,107,267 $3,531,788 $8,350,605 $8,948,044
Comprehensive income
attributable to
noncontrolling
interest $415,114 $386,900 $515,588 $601,691
Comprehensive income
attributable to
CTFO $3,692,153 $3,144,888 $7,835,017 $8,346,353
CHINA TRANSINFO TECHNOLOGY CORP. AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
30-Sep-09 31-Dec-08
(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $21,125,873 $16,122,464
Restricted cash 2,261,141 1,209,542
Accounts receivable, net 15,313,210 7,735,742
Inventory 301,140 23,775
Cost and estimated earnings in
excess of billings on uncompleted
contracts 28,066,671 11,912,285
Prepayments 9,709,570 3,647,731
Other receivable 8,575,034 2,940,404
Deferred tax assets 218,417 211,708
Other current assets 903,644 --
Total current assets 86,474,700 43,803,651
Long-term investments 6,990,560 278,730
Property and equipment, net 9,786,144 9,874,005
Intangible assets, net 4,097,928 1,490,807
Goodwill 9,834,668 3,095,017
Other non-current assets 439,449 147,607
Total assets $117,623,449 $58,689,817
30-Sep-09 31-Dec-08
(Unaudited)
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $20,959,687 $5,518,402
Notes payable 7,481,700 2,934,000
Due to related parties 73,946 528,485
Billings in excess of costs and
estimated earnings on uncompleted
contracts 12,066,028 846,971
Deferred revenue 129,220 214,256
Other payable 4,653,184 149,282
Accrued liabilities 1,993,930 881,484
Total current
liabilities 47,357,695 11,072,880
Long-term liability 668,219 --
Total Liabilities 48,025,914 11,072,880
Commitments and contingencies -- --
Stockholders' equity:
China TransInfo Technology Corp.
Preferred stock, par
value $0.001 per share,
10,000,000 shares authorized
and 0 shares issued and
outstanding -- --
Common stock, par value $0.001
per share, 150,000,000 shares
authorized, 22,402,989 and
22,187,314 issued and
outstanding, respectively 22,403 22,187
Additional paid-in capital 24,930,192 24,654,890
Retained earnings 27,197,830 18,974,224
Accumulated other comprehensive
gain - translation adjustments 2,111,304 2,499,893
Total China TransInfo
Technology Corp.
shareholders' equity 54,261,729 46,151,194
Noncontrolling interest 15,335,806 1,465,743
Total stockholders' equity 69,597,535 47,616,937
Total liabilities and stockholders'
equity $117,623,449 $58,689,817
CHINA TRANSINFO TECHNOLOGY CORP. AND SUBSIDIARIES RECONCILIATION
OF NON-GAAP FINANCIAL DATA
For the three months ended For the nine months ended
30-Sep-09 30-Sep-08 30-Sep-09 30-Sep-08
Net Diluted Net Diluted Net Diluted Net Diluted
Income EPS Income EPS Income EPS Income EPS
Adjusted
Amount 4,049,363 0.18 3,161,487 0.15 8,432,861 0.38 7,133,174 0.35
Adjustments
Amortization
of intangible
assets from
acquisitions
(1) 18,594 0.00 4,348 0.00 27,315 0.00 5,803 0.00
Non-cash
share based
compen-
sation 55,542 0.00 59,598 0.00 181,940 0.01 156,769 0.01
Amount per
consoli-
dated
statement
of oper-
ations 3,975,227 0.18 3,097,541 0.14 8,223,606 0.37 6,970,602 0.34
1) Amortizations of intangible assets from acquisitions includes
amortizations of intangible assets from acquisitions of China
TranWiseway in 2008 and UNISITS in 2009
SOURCE China TransInfo Technology Corp.