WUHAN, China, Nov. 12 /PRNewswire-Asia-FirstCall/ -- China Automotive Systems, Inc., (the "Company"), (CAAS), a leading power steering components and systems supplier in China, today announced record financial results for the third quarter and nine months ended September 30, 2009.
2009 Third Quarter Highlights:
-- Net sales increased organically 75% YoY to a new quarterly sales record
of $64.7 million;
-- Net income rose 210.2% YoY to a quarterly record $8.6 million;
-- Diluted EPS were a quarterly record $0.28 versus $0.09 in the third
quarter of 2008;
-- Net cash flow from operations was $24.3 million for the nine months;
-- Cash and equivalents were $45.9 million at September 30, 2009.
Net sales for the third quarter of 2009 represented a 75.0% year-over-year increase to $64.7 million, the highest quarterly sales in the Company's history versus $36.9 million in the 2008 third quarter.
Sales of steering gears for passenger vehicles in the 2009 third quarter were $43.8 million, reflecting a 77.8% increase from $24.6 million in the same quarter one year ago. Pump sales for domestic passenger vehicles in the 2009 third quarter were $6.2 million, an increase of 79.2% from $3.4 million in the same quarter last year. Commercial vehicle steering gear and accessories sales were $14.6 million, representing an increase of 66.0% compared with $8.8 million for the same period of 2008.
Gross profit in the third quarter of 2009 was $17.6 million, an increase of $7.7 million compared with $9.9 million for the same quarter in 2008, reflecting a 78.6% year-over-year increase. The gross margin in the third quarter of 2009 was 27.3%, compared with 26.7% in the third quarter last year. The Company plans to meet its yearly gross margin target of at least 28%.
Selling expenses in the third quarter were $4.3 million as compared to $2.3 million in the same quarter a year ago. Selling expenses as a percentage of revenue for the third quarter of 2009 were 6.7% as compared to 6.3% for the same period in 2008.
General and administrative expenses in the third quarter were $2.7 million as compared to $2.1 million in the same quarter a year ago. G&A as a percentage of revenue for the third quarter of 2009 were 4.2% as compared to 5.6% for the same period in 2008.
Operating income increased by 161.1% year-over-year to $9.7 million in the third quarter of 2009, compared with $3.7 million in the same quarter in 2008. Higher gross profit combined with lower third quarter operating expenses in 2009 generated higher operating income compared with the same quarter last year.
Net income attributable to common shareholders was $8.6 million for the third quarter, or $0.28 per diluted share, compared with $2.8 million, or $0.09 per diluted share in the same quarter in 2008. The net margin for net income attributable to common shareholders rose to 13.2% in the 2009 third quarter from 7.5% in the third quarter of 2008. The diluted weighted average shares outstanding were 31.4 million in the third quarters of both 2009 and 2008.
As of September 30, 2009, total cash and cash equivalents were $45.9 million, as compared with $37.1 million as of December 31, 2008. Stockholder's equity increased to $123.7 million as of September 30, 2009 from $104.5 million as of December 31, 2008. Working capital reached $87.5 million. Net cash flow from operations was $24.3 million for the nine months ended September 30, 2009. During the third quarter of 2009, CAPEX was $2.5 million and free cash flow increased by $6.1 million as the Company purchased equipment to enhance its production capacity. As a result, total free cash flow was $15.5 million in the first nine months in 2009.
2009 Outlook
The Company expects its revenue to increase by approximately 40% for the year 2009. This target is based on the Company's current contracts from existing customers, which are subject to change.
Conference Call
Management will conduct a conference call on Thursday, November 12 at 8:00 a.m. Eastern Standard Time to discuss these results. A question and answer session will follow management's presentation.
To participate, please call the following numbers 10 minutes before the call start time and ask to be connected to the "China Automotive Systems" conference call:
Phone Number: +1-877-407-9205 (North America)
Phone Number: +1-201-689-8054 (International)
In addition, the conference call will be broadcast live over the Internet at: http://investor.shareholder.com/media/eventdetail.cfm?mediaid=39666&c=CAAS&mediakey=8F8BBE1285D28B8E8885368300190CA2&e=0
Please go to the web site at least 15 minutes early to register, download and install any necessary software.
A telephone replay of the call will be available after the conclusion of the conference call through 11:59 PM Eastern Standard Time on Thursday, November 26, 2009. The dial-in details for the replay are: U.S. Toll Free Number +1-877-660-6853, International dial-in number +1-201-612-7415; using Account "286" and Conference ID "337003" to access the replay. The internet audio stream will also be available until 11:59 pm Eastern Standard Time on Thursday, November 26.
About China Automotive Systems, Inc.
Based in Hubei Province, People's Republic of China, China Automotive Systems, Inc. is a leading supplier of power steering components and systems to the Chinese automotive industry, operating through eight Sino-foreign joint ventures. The Company offers a full range of steering system parts for passenger automobiles and commercial vehicles. The Company currently offers 4 separate series of power steering with an annual production capacity of over 1.8 million sets, steering columns, steering oil pumps and steering hoses. Its customer base is comprised of leading Chinese auto manufacturers such as China FAW Group, Corp., Dongfeng Auto Group Co., Ltd., BYD Auto Company Limited, Beiqi Foton Motor Co., Ltd. and Chery Automobile Co., Ltd., etc. For more information, please visit: http://www.caasauto.com
Safe Harbor Statement
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations or beliefs, including, but not limited to, statements concerning the Company's operations, financial performance and, condition and the impact of acquisitions on its financial performance. For this purpose, statements that are not statements of historical fact may be deemed to be forward-looking statements. The Company cautions that these statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors, including, among others, the impact of competitive products, pricing and new technology; changes in demand for the Company's products; changes in consumer preferences and tastes; and effectiveness of marketing; changes in laws and regulations; fluctuations in costs of production, delays and cost overruns related to developing and opening new production facilities; and other factors as those discussed in the Company's reports filed with the Securities and Exchange Commission from time to time.
For further information, please contact:
Jie Li
Chief Financial Officer
China Automotive Systems
Email: jieli@chl.com.cn
Kevin Theiss
Investor Relations
Grayling
Tel: +1-646-284-9409
Email: kevin.theiss@us.grayling.com