x
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
o
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
Delaware
|
14-1623047
|
|
(State
or other jurisdiction of incorporation
or
organization)
|
(I.R.S.
Employer Identification No.)
|
Large
accelerated filer o
|
Accelerated
filer o
|
|
Non-accelerated
filer o(Do not
check if a smaller reporting company)
|
Smaller
reporting company x
|
Class
of Securities
|
Shares
Outstanding
|
|
Common
Stock, $0.001 par value
|
46,562,955
|
PART
I
|
||
FINANCIAL
INFORMATION
|
||
Item
1.
|
Financial
Statements
|
4
|
Item
2.
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
25
|
Item
3.
|
Quantitative
and Qualitative Disclosures About Market Risk
|
41
|
Item
4.
|
Controls
and Procedures
|
41
|
PART
II
|
||
OTHER
INFORMATION
|
||
Item
1.
|
Legal
Proceedings
|
41
|
Item
1A.
|
Risk
Factors
|
41
|
Item
2.
|
Unregistered
Sales of Equity Securities and Use of Proceeds
|
41
|
Item
3.
|
Defaults
Upon Senior Securities
|
41
|
Item
4.
|
(Removed
and Reserved)
|
41
|
Item
5.
|
Other
Information
|
41
|
Item
6.
|
Exhibits
|
42
|
ITEM
1.
|
FINANCIAL
STATEMENTS.
|
Contents
|
Page(s)
|
|
Consolidated
Balance Sheets as of March 31, 2010 (unaudited) and June 30,
2009
|
4
|
|
Consolidated
Statements of Operations and Comprehensive Income for the three and nine
months ended March 31, 2010 and 2009 (unaudited)
|
5
|
|
Consolidated
Statements of Changes in Stockholders’ Equity for
the nine months ended March 31, 2010 and 2009 (unaudited)
|
6
|
|
Consolidated
Statements of Cash Flows for the nine months ended March 31, 2010 and 2009
(unaudited)
|
7
|
|
Notes
to the Consolidated Financial Statements (unaudited)
|
|
8
|
China
Precision Steel, Inc. and Subsidiaries
|
Consolidated
Balance Sheets
|
(Unaudited)
|
||||||||||||
March
31,
|
June
30,
|
|||||||||||
Notes
|
2010
|
2009
|
||||||||||
Assets
|
||||||||||||
Current
assets
|
||||||||||||
Cash
and cash equivalents
|
$ | 12,734,971 | $ | 13,649,587 | ||||||||
Accounts
receivable
|
||||||||||||
Trade,
net of allowances of $1,007,135 and $830,127
|
||||||||||||
at
March 31, 2010 and June 30, 2009, respectively
|
5
|
26,857,342 | 25,140,834 | |||||||||
Bills
receivable
|
114,271 | 6,131,143 | ||||||||||
Other
|
811,960 | 881,153 | ||||||||||
Inventories
|
6
|
32,431,034 | 16,275,070 | |||||||||
Prepaid
expenses
|
274,153 | 75,917 | ||||||||||
Advances
to suppliers, net of allowance of $1,632,705 and
|
7
|
|||||||||||
$1,631,557
at March 31, 2010 and June 30, 2009, respectively
|
18,846,246 | 21,878,047 | ||||||||||
Total
current assets
|
92,069,977 | 84,031,751 | ||||||||||
Property,
plant and equipment
|
||||||||||||
Property,
plant and equipment, net
|
8
|
71,409,799 | 46,812,484 | |||||||||
Deposits
for building, plant and machinery
|
- | 8,348,496 | ||||||||||
Construction-in-progress
|
9
|
5,661,802 | 22,245,173 | |||||||||
77,071,601 | 77,406,153 | |||||||||||
Intangible
assets, net
|
10
|
1,841,986 | 1,871,211 | |||||||||
Goodwill
|
99,999 | 99,999 | ||||||||||
Total
assets
|
$ | 171,083,563 | $ | 163,409,114 | ||||||||
Liabilities
and Stockholders' Equity
|
||||||||||||
Current
liabilities
|
||||||||||||
Short-term
loans
|
11
|
$ | 25,796,145 | $ | 22,489,031 | |||||||
Accounts
payable and accrued liabilities
|
5,887,906 | 7,144,242 | ||||||||||
Advances
from customers
|
12
|
6,989,121 | 1,742,944 | |||||||||
Other
taxes payables
|
2,096,594 | 6,650,668 | ||||||||||
Current
income taxes payable
|
5,300,626 | 4,778,767 | ||||||||||
Total
current liabilities
|
46,070,392 | 42,805,652 | ||||||||||
Stockholders'
equity:
|
||||||||||||
Preferred
stock: $0.001 per value, 8,000,000 shares
|
||||||||||||
authorized,
no shares outstanding at March 31, 2010 and
|
||||||||||||
June
30, 2009, respectively
|
13
|
|||||||||||
Common
stock: $0.001 par value, 62,000,000 shares
|
||||||||||||
authorized,
46,562,955 and 46,562,955 issued and
|
||||||||||||
outstanding
at March 31, 2010 and June 30, 2009, respectively
|
13
|
46,563 | 46,563 | |||||||||
Additional
paid-in capital
|
13
|
75,642,383 | 75,642,383 | |||||||||
Accumulated
other comprehensive income
|
9,815,614 | 9,731,505 | ||||||||||
Retained
earnings
|
39,508,611 | 35,183,011 | ||||||||||
Total
stockholders' equity
|
125,013,171 | 120,603,462 | ||||||||||
Total
liabilities and stockholders' equity
|
$ | 171,083,563 | $ | 163,409,114 |
The
accompanying notes are an integral part of these consolidated financial
statements.
|
China
Precision Steel, Inc. and Subsidiaries
|
Consolidated
Statements of Operations
|
For
the Three and Nine Months Ended March 31, 2010 and 2009
|
(Unaudited)
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||||||
March
31,
|
March
31,
|
March
31,
|
March
31,
|
|||||||||||||||||
Notes
|
2010
|
2009
|
2010
|
2009
|
||||||||||||||||
Sales
revenues
|
$ | 29,990,596 | $ | 7,623,209 | $ | 74,046,423 | $ | 50,547,587 | ||||||||||||
Cost
of goods sold
|
26,560,721 | 9,605,252 | 66,277,234 | 45,125,635 | ||||||||||||||||
Gross
profit/(loss)
|
3,429,875 | (1,982,043 | ) | 7,769,189 | 5,421,952 | |||||||||||||||
Operating
expenses
|
||||||||||||||||||||
Selling
expenses
|
124,589 | 298,492 | 227,003 | 1,632,322 | ||||||||||||||||
Administrative
expenses
|
773,102 | 541,251 | 2,005,841 | 1,581,456 | ||||||||||||||||
Allowance
for bad and doubtful debts
|
16 | 672 | 218,200 | 3,830,134 | ||||||||||||||||
Depreciation
and amortization expense
|
37,857 | 33,624 | 118,350 | 93,145 | ||||||||||||||||
Total
operating expenses
|
935,564 | 874,039 | 2,569,394 | 7,137,057 | ||||||||||||||||
Income/(loss)
from operations
|
2,494,311 | (2,856,082 | ) | 5,199,795 | (1,715,105 | ) | ||||||||||||||
Other
income/(expense)
|
||||||||||||||||||||
Other
revenues
|
9,790 | 76,556 | 120,753 | 336,257 | ||||||||||||||||
Interest
and finance costs
|
(171,928 | ) | (257,123 | ) | (675,362 | ) | (905,305 | ) | ||||||||||||
Total
other (expense)
|
(162,138 | ) | (180,567 | ) | (554,609 | ) | (569,048 | ) | ||||||||||||
Income/(loss)
from operations before income tax
|
2,332,173 | (3,036,649 | ) | 4,645,186 | (2,284,153 | ) | ||||||||||||||
Provision
for income tax
|
15
|
|||||||||||||||||||
Current
|
320,819 | 481,804 | 319,586 | 333,547 | ||||||||||||||||
Deferred
|
- | - | - | - | ||||||||||||||||
Total
income tax expense
|
320,819 | 481,804 | 319,586 | 333,547 | ||||||||||||||||
Net
income/(loss)
|
$ | 2,011,354 | $ | (3,518,453 | ) | $ | 4,325,600 | $ | (2,617,700 | ) | ||||||||||
Basic
earnings/(loss) per share
|
$ | 0.04 | $ | (0.08 | ) | $ | 0.09 | $ | (0.06 | ) | ||||||||||
Basic
weighted average shares outstanding
|
46,562,955 | 46,562,953 | 46,562,955 | 46,560,656 | ||||||||||||||||
Diluted
earnings/(loss) per share
|
$ | 0.04 | $ | (0.08 | ) | $ | 0.09 | $ | (0.06 | ) | ||||||||||
Diluted
weighted average shares outstanding
|
46,562,955 | 46,562,953 | 46,562,955 | 46,560,656 | ||||||||||||||||
Components
of comprehensive income/(loss):
|
||||||||||||||||||||
Net
income/(loss)
|
$ | 2,011,354 | $ | (3,518,453 | ) | $ | 4,325,600 | $ | (2,617,700 | ) | ||||||||||
Foreign
currency translation adjustment
|
20,003 | (366,181 | ) | 84,109 | 384,243 | |||||||||||||||
Comprehensive
income/(loss)
|
$ | 2,031,357 | $ | (3,884,634 | ) | $ | 4,409,709 | $ | (2,233,457 | ) |
The
accompanying notes are an integral part of these consolidated financial
statements.
|
China
Precision Steel, Inc. and Subsidiaries
|
||||||||||||
Consolidated
Statements of Changes in Stockholders' Equity
|
||||||||||||
For
the Year Ended June 30, 2009 and the Nine Months Ended March 31,
2010
|
Accumulated
|
||||||||||||||||||||||||
Additional
|
Other
|
Total
|
||||||||||||||||||||||
Ordinary
Shares
|
Paid-in
|
Comprehensive
|
Retained
|
Stockholders'
|
||||||||||||||||||||
Share
|
Amount
|
Capital
|
Income
|
Earnings
|
Equity
|
|||||||||||||||||||
Balance
at June 30, 2008
|
46,472,953 | $ | 46,473 | $ | 75,372,488 | $ | 9,295,658 | $ | 35,591,349 | $ | 120,305,968 | |||||||||||||
Transfer
agent adjustment
|
2 | - | - | - | - | - | ||||||||||||||||||
Exercise
of warrants
|
90,000 | 90 | 269,895 | - | - | 269,985 | ||||||||||||||||||
Foreign
currency translation adjustment
|
- | - | - | 435,847 | - | 435,847 | ||||||||||||||||||
Net
income
|
- | - | - | - | (408,338 | ) | (408,338 | ) | ||||||||||||||||
Balance
at June 30, 2009
|
46,562,955 | 46,563 | 75,642,383 | 9,731,505 | 35,183,011 | 120,603,462 | ||||||||||||||||||
Foreign
currency translation adjustment
|
- | - | - | 84,109 | - | 84,109 | ||||||||||||||||||
Net
income
|
- | - | - | - | 4,325,600 | 4,325,600 | ||||||||||||||||||
Balance
at March 31, 2010 (unaudited)
|
46,562,955 | $ | 46,563 | $ | 75,642,383 | $ | 9,815,614 | $ | 39,508,611 | $ | 125,013,171 |
|
||||
Consolidated
Statements of Cash Flows
|
||||
For
the Nine Months Ended March 31, 2010 and 2009
|
||||
(Unaudited)
|
2010
|
2009
|
|||||||
Cash
flows from operating activities
|
||||||||
Net
income/(loss)
|
$ | 4,325,600 | $ | (2, 617,700 | ) | |||
Adjustments
to reconcile net income to net cash provided by operating
activities
|
||||||||
Depreciation
and amortization
|
3,850,697 | 2,746,541 | ||||||
Allowance
for bad and doubtful debts
|
218,200 | 3,830,134 | ||||||
Inventory
provision
|
42,537 | - | ||||||
Net
changes in assets and liabilities:
|
||||||||
Accounts
receivable, net
|
4,173,882 | 11,360,509 | ||||||
Inventories
|
(16,187,073 | ) | (4,732,832 | ) | ||||
Prepaid
expenses
|
(198,228 | ) | (73,753 | ) | ||||
Advances
to suppliers
|
3,047,186 | 7,642,844 | ||||||
Accounts
payable and accrued expenses
|
(1,261,253 | ) | (2,058,293 | ) | ||||
Advances
from customers
|
5,244,952 | (3,433,313 | ) | |||||
Other
taxes payable
|
(3,062,421 | ) | (458,015 | ) | ||||
Current
income taxes
|
518,499 | (9,841 | ) | |||||
Net
cash provided by operating activities
|
712,578 | 12,196,281 | ||||||
Cash
flows from investing activities
Deposit
for plant and machinery
|
- | (8,048,466 | ) | |||||
Purchase
of land use rights
|
- | (786,643 | ) | |||||
Purchase
of property, plant and equipment, including construction in
progress
|
(4,927,077 | ) | (16,654,654 | ) | ||||
Net
cash (used in) investing activities
|
(4,927,077 | ) | (25,489,763 | ) | ||||
Cash
flows from financing activities
|
||||||||
Exercise
of common stock warrants
|
- | 269,985 | ||||||
Short-term
loan proceeds
|
3,735,771 | - | ||||||
Repayments
of short-term loans
|
(444,471 | ) | (87,801 | ) | ||||
Net
cash provided by financing activities
|
3,291,300 | 182,184 | ||||||
Effect
of exchange rate
|
8,583 | 112,262 | ||||||
Net
(decrease) in cash
|
(914,616 | ) | (12,999,036 | ) | ||||
Cash
and cash equivalents, beginning of period
|
13,649,587 | 18,568,842 | ||||||
Cash
and cash equivalents, end of period
|
$ | 12,734,971 | $ | 5,569,806 |
The
accompanying notes are an integral part of these consolidated financial
statements.
|
China
Precision Steel, Inc. and
Subsidiaries
|
Plant
and machinery
|
10
years
|
Buildings
|
10
years
|
Motor
vehicles
|
5
years
|
Office
equipment
|
5
to 10 years
|
Customers
|
2010
|
% to
sales
|
2009
|
% to
sales
|
||||||||||||
Shanghai
Changshuo Steel Company, Ltd
|
15,806,668
|
21
|
-
|
*
|
-
|
*
|
||||||||||
Shanghai
Shengdejia Metal Products Co., Ltd
|
12,322,906
|
17
|
-
|
*
|
-
|
*
|
||||||||||
Salzgitter
Mannesmann International GMBH
|
-
|
*
|
-*
|
13,653,466
|
27
|
Suppliers
|
2010
|
% to
purchases
|
2009
|
% to
purchases
|
|||||||
Dachang
Huizu Baosheng Steel Products Co., Ltd.
|
23,876,549
|
31
|
-
|
*
|
-
|
*
|
|||||
Wuxi
Hangda Trading Co., Ltd.
|
13,515,717
|
18
|
-
|
*
|
-
|
*
|
|||||
Guangzhou
Zhujiang Steel Co., Ltd.
|
10,265,428
|
14
|
-
|
*
|
-
|
*
|
|||||
BaoSteel
Steel Products Trading Co. Ltd.
|
-
|
*
|
-
|
*
|
10,758,080
|
31
|
|||||
Shanghai
Pinyun Steel Co., Ltd.
|
-
|
*
|
-
|
*
|
8,486,770
|
25
|
At cost:
|
March 31,
2010
|
June 30,
2009
|
||||||
Raw materials
|
$ | 12,971,109 | $ | 8,846,663 | ||||
Work
in progress
|
6,748,169 | 2,818,832 | ||||||
Finished
goods
|
9,781,729 | 2,191,341 | ||||||
Consumable
items
|
2,972,564 | 2,418,234 | ||||||
32,473,571 | 16,275,070 | |||||||
Less:
provision
|
(42,537 | ) | - | |||||
|
$ | 32,431,034 | $ | 16,275,070 |
March 31,
2010
|
June 30,
2009
|
|||||||
Plant
and machinery
|
$ | 61,660,684 | $ | 33,331,681 | ||||
Buildings
|
21,821,554 | 21,806,219 | ||||||
Motor
vehicles
|
562,277 | 534,652 | ||||||
Office
equipment
|
458,241 | 404,695 | ||||||
84,502,756 | 56,077,247 | |||||||
Less:
Accumulated depreciation
|
(13,092,957 | ) | (9,264,763 | ) | ||||
|
$ | 71,409,799 | $ | 46,812,484 |
|
March 31,
2010
|
June 30,
2009
|
||||||
Construction
costs
|
$
|
5,661,802
|
$
|
22,245,173
|
|
March 31,
2010
|
June 30,
2009
|
||||||
Bank
loan agreement dated July 7, 2009, due July 31, 2010 with an interest rate
of the Singapore Interbank Offered Rate (“SIBOR”) plus 3% (3.19% at March
31, 2010) (Note 8)
|
5,300,000
|
5,300,000
|
||||||
Bank
loan agreement dated July 7, 2009, due July 31, 2010 with an interest rate
at 115% of the standard market rate set by the People’s Bank of China for
Renminbi loans (6.11% at March 31, 2010) (Note 8)
|
2,476,543
|
2,915,238
|
||||||
Bank
loan agreement dated July 7, 2009, due July 31, 2010 with an interest rate
at 115% of the standard market rate set by the People’s Bank of China for
Renminbi loans (6.11% at March 31, 2010) (Notes 6 and 8)
|
18,019,602
|
14,273,793
|
||||||
$
|
25,796,145
|
$
|
22,489,031
|
Exercise
Price
|
|
Outstanding
June 30,
2009
|
|
Granted
|
|
Expired or
Exercised
|
|
Outstanding
March
31, 2010
|
Expiration Date
|
||||||
$
|
7.38
|
225,600
|
-0-
|
-0-
|
225,600
|
November 5, 2010
|
|||||||||
$
|
3.00
|
358,392
|
-0-
|
-0-
|
358,392
|
February 22, 2011
|
|||||||||
$
|
8.45
|
1,420,000
|
-0-
|
-0-
|
1,420,000
|
May 5, 2013
|
Nine months ended March
31,
|
||||||||
2010
|
2009
|
|||||||
Tax
savings
|
$
|
855,583
|
$
|
(223,567)
|
||||
Benefit
per share
|
||||||||
Basic
|
$
|
0.02
|
$
|
(0.005)
|
||||
Diluted
|
$
|
0.02
|
$
|
(0.005)
|
Deferred tax assets:
|
March 31,
2010
|
June 30,
2009
|
||||||
Net
operating loss carried forward
|
$ | 1,854,914 | $ | 1,823,487 | ||||
Temporary
differences resulting from allowances
|
1,906,041 | 1,850,921 | ||||||
Total
deferred income tax assets
|
3,760,955 | 3,674,408 | ||||||
Valuation
Allowance
|
(3,760,955 | ) | (3,674,408 | ) | ||||
|
$ | — | $ | — |
Nine
months ended March 31,
|
||||||||
2010
|
2009
|
|||||||
Computed tax
expense/(benefit) at the federal statutory rate of 34%
|
$ | 1,579,764 | $ | (776,613 | ) | |||
Adjustments
for PRC entities taxed at different rates
|
(488,298 | ) | 141,784 | |||||
Valuation
allowance
|
88,481 | 1,191,943 | ||||||
Income
not subject to tax
|
(3,545 | ) | - | |||||
Overprovision
in prior year
|
(1,233 | ) | - | |||||
Benefit
of tax holiday
|
(855,583 | ) | (223,567 | ) | ||||
Income
tax expense per books
|
$ | 319,586 | $ | 333,547 |
Nine
months ended March 31,
|
||||||||
2010
|
2009
|
|||||||
Income
tax expense for the year – PRC
|
$ | 319,586 | $ | 333,547 | ||||
Deferred
income tax benefit – PRC
|
- | - | ||||||
Income
tax expense per books
|
$ | 319,586 | $ | 333,547 |
Income/(loss)
(Numerator)
|
Shares
(Denominator)
|
Per Share
Amount
|
||||||||||
For
the three months ended March 31, 2010:
|
||||||||||||
Net
income
|
$ | 2,011,354 | ||||||||||
Basic
EPS income available to common shareholders
|
$ | 2,011,354 | 46,562,955 | $ | 0.04 | |||||||
Effect
of dilutive securities:
|
- | |||||||||||
Diluted
EPS income available to common shareholders
|
$ | 2,011,354 | 46,562,955 | $ | 0.04 | |||||||
For
the three months ended March 31, 2009:
|
||||||||||||
Net
loss
|
$ | (3,518,453 | ) | |||||||||
Basic
EPS (loss) available to common shareholders
|
$ | (3,518,453 | ) | 46,562,953 | $ | (0.08 | ) | |||||
Effect
of dilutive securities:
|
- | |||||||||||
Diluted
EPS (loss) available to common shareholders
|
$ | (3,518,453 | ) | 46,562,953 | $ | (0.08 | ) |
Income/(loss)
(Numerator)
|
Shares
(Denominator)
|
Per Share
Amount
|
||||||||||
For
the nine months ended March 31, 2010:
|
||||||||||||
Net
income
|
$ | 4,325,600 | ||||||||||
Basic
EPS income available to common shareholders
|
$ | 4,325,600 | 46,562,955 | $ | 0.09 | |||||||
Effect
of dilutive securities:
|
- | |||||||||||
Diluted
EPS income available to common shareholders
|
$ | 4,325,600 | 46,562,955 | $ | 0.09 | |||||||
For
the nine months ended March 31, 2009:
|
||||||||||||
Net
loss
|
$ | (2,617,700 | ) | |||||||||
Basic
EPS (loss) available to common shareholders
|
$ | (2,617,700 | ) | 46,560,656 | $ | (0.06 | ) | |||||
Effect
of dilutive securities:
|
- | |||||||||||
Diluted
EPS (loss) available to common shareholders
|
$ | (2,617,700 | ) | 46,560,656 | $ | (0.06 | ) |
ITEM
2.
|
MANAGEMENT’S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS.
|
●
|
Revenues:
Our revenues were approximately $30.0 million for the third quarter, an
increase of 293.4% from last year.
|
●
|
Gross
Margin/(loss): Gross margin was 11.4% for the third quarter, as
compared to (26.0)% last year.
|
●
|
Income/(loss)
from operations before tax: Income from operations before tax was
approximately $2.3 million for the third quarter, as compared to loss from
operations before tax of $3.0 million last
year.
|
●
|
Net
Income/(loss): Net income was approximately $2.0 million for the
third quarter, as compared to a net loss of approximately $3.5 million
last year.
|
●
|
Fully
diluted Income/(loss) per share: Fully diluted income per share was
$0.04 for the third quarter compared to a fully diluted loss per share of
$0.08 last year.
|
Three
Months Ended March 31,
|
Nine
Months Ended March 31,
|
|||||||||||||||||||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||||||||||||||||||
Amount
|
%
of Revenues
|
Amount
|
%
of Revenues
|
Amount
|
%
of Revenues
|
Amount
|
%
of Revenues
|
|||||||||||||||||||||||||
Revenues
|
$ | 29,990,596 | 100.0 | % | $ | 7,623,209 | 100.0 | % | $ | 74,046,423 | 100.0 | % | $ | 50,547,587 | 100.0 | % | ||||||||||||||||
Cost
of sales (including depreciation and amortization)
|
26,560,721 | 88.6 | % | 9,605,252 | 126.0 | % | 66,277,234 | 89.5 | % | 45,125,635 | 89.3 | % | ||||||||||||||||||||
Gross
profit/(loss)
|
3,429,875 | 11.4 | % | (1,982,043 | ) | (26.0 | )% | 7,769,189 | 10.5 | % | 5,421,952 | 10.7 | % | |||||||||||||||||||
Selling
and marketing expenses
|
124,589 | 0.4 | % | 298,492 | 3.9 | % | 227,003 | 0.3 | % | 1,632,322 | 3.2 | % | ||||||||||||||||||||
Administrative
expenses
|
773,102 | 2.6 | % | 541,251 | 7.1 | % | 2,005,841 | 2.7 | % | 1,581,456 | 3.1 | % | ||||||||||||||||||||
Allowance
for bad and doubtful debts
|
16 |
<0.1%
|
672 |
<0.1%
|
218,200 | 0.3 | % | 3,830,134 | 7.6 | % | ||||||||||||||||||||||
Depreciation
and amortization expense
|
37,857 | 0.1 | % | 33,624 | 0.4 | % | 118,350 | 0.2 | % | 93,145 | 0.2 | % | ||||||||||||||||||||
Total
operating expenses
|
935,564 | 3.1 | % | 874,039 | 11.5 | % | 2,569,394 | 3.5 | % | 7,137,057 | 14.1 | % | ||||||||||||||||||||
Income/(loss)
from operations
|
2,494,311 | 8.3 | % | (2,856,082 | ) | (37.5 | )% | 5,199,795 | 7.0 | % | (1,715,105 | ) | (3.4 | )% | ||||||||||||||||||
Other
revenues
|
9,790 |
<0.1%
|
76,556 | 1.0 | % | 120,753 | 0.2 | % | 336,257 | 0.7 | % | |||||||||||||||||||||
Interest
and finance costs
|
(171,928 | ) | (0.6 | )% | (257,123 | ) | (3.4 | )% | (675,362 | ) | (0.9 | )% | (905,305 | ) | (1.8 | )% | ||||||||||||||||
Total
other (expense)
|
(162,138 | ) | (0.5 | )% | (180,567 | ) | (2.4 | )% | (554,609 | ) | (0.7 | )% | (569,048 | ) | (1.1 | )% | ||||||||||||||||
Income/(loss)
before income taxes
|
2,332,173 | 7.8 | % | (3,036,649 | ) | (39.8 | )% | 4,645,186 | 6.3 | % | (2,284,153 | ) | (4.5 | )% | ||||||||||||||||||
Income
tax expense
|
320,819 | 1.1 | % | 481,804 | 6.3 | % | 319,586 | 0.4 | % | 333,547 | 0.7 | % | ||||||||||||||||||||
Net
income/(loss)
|
$ | 2,011,354 | 6.7 | % | $ | (3,518,453 | ) | (46.2 | )% | $ | 4,325,600 | 5.8 | % | $ | (2,617,700 | ) | (5.2 | )% | ||||||||||||||
Basic
earnings/(loss) per share
|
$ | 0.04 | $ | (0.08 | ) | $ | 0.09 | $ | (0.06 | ) | ||||||||||||||||||||||
Diluted
earnings/(loss) per share
|
$ | 0.04 | $ | (0.08 | ) | $ | 0.09 | $ | (0.06 | ) |
Three
Months Ended March 31,
|
||||||||||||||||||||||||||||
2010
|
2009
|
|||||||||||||||||||||||||||
Product
Category
|
Quantity
(tons)
|
$
Amount
|
%
of Sales
|
Quantity
(tons)
|
$
Amount
|
%
of Sales
|
Period-on-period
Qty.
Variance
|
|||||||||||||||||||||
Low
carbon hard rolled (export)
|
5,802 | 4,071,505 | 14 | 3,425 | 2,093,990 | 28 | 2,377 | |||||||||||||||||||||
Low
carbon cold-rolled
|
19,148 | 14,836,000 | 49 | 4,921 | 2,841,892 | 37 | 14,227 | |||||||||||||||||||||
High-carbon
hot-rolled
|
1,521 | 1,361,571 | 4 | 579 | 605,437 |