CD International Enterprises Reports Financial Results For The First Nine Months Of Fiscal 2012 Ended June 30, 2012
DEERFIELD BEACH, Fla., Aug. 14, 2012 /PRNewswire/ -- CD International Enterprises, Inc. ("CD International") (OTCQB: CDII), a U.S. based company that produces, sources, and distributes industrial commodities in China and the Americas and provides business and financial corporate consulting services, announced today its financial results for the third quarter and first nine months of fiscal 2012 ended June 30, 2012.
For the first nine months of fiscal 2012, we recorded total revenues of $116.1 million resulting in net income attributable to common stockholders of $3.7 million or $0.09 per basic share on 43.4 million weighted average shares outstanding and $0.08 per diluted share on 47.4 million weighted average shares outstanding as compared to revenues of $145.1 million with net income of $7.7 million or $0.22 per basic and diluted share on 34.7 million weighted average shares outstanding recorded in the same period of fiscal 2011. While revenue from our magnesium segment remained steady in both nine month periods at $70 million, we witnessed a substantial decline in revenue of approximately $20.9 million from our basic materials segment in the first nine months of 2012 due to a slowdown in construction and industrial spending coupled with delays in our commodities distribution efforts in the Americas. Our consulting revenue was also down approximately $7.8 million in the first nine months of 2012 as a result of the timing of transactional revenue which varies depending on the addition of new clients and scope of services performed. In the third quarter of fiscal 2012 total revenues were $37.3 million, down from $57.0 million recorded in the third quarter of fiscal 2011. The declines were a result of continued weakness in our basic materials segment as well as transactional timing in our consulting segment, partially offset by a slight improvement in our magnesium segment where revenue totaled $26.5 million in the third quarter of 2012 compared to $25.0 million in the third quarter of fiscal 2011. We recorded a net loss attributable to common stockholders of ( $1.4 million) or ($0.03) per basic and diluted share in the third quarter of fiscal 2012 on 48.1 million basic and diluted weighted average shares outstanding. This compares to net income attributable to common stockholders of $4.3 million or $0.11 per basic and diluted share in the third quarter of fiscal 2011 on 37.6 million basic and 38.3 million diluted weighted average shares outstanding.
For our magnesium segment, we shipped 8,894 metric tons of magnesium at an average sales price of $2,793 per metric ton resulting in revenue of $26.5 million in the third quarter of fiscal 2012. This compares to 9,049 metric tons shipped in the third quarter of fiscal 2011 at an average sales price of $2,765 per metric ton contributing to $25.0 million in revenue. Our gross profit in this segment improved to 3.1% from 2.5% in the third quarter of 2011. Sequentially gross profit also improved from 2.6% recorded in the second quarter of 2012. The overall shipments, average sales price, as well as our gross margin remain steady despite the slowdown experienced domestically in China as well as the global uncertainties caused by the ongoing European debt crisis. We are encouraged by the recent price improvements which have taken place from July through August of 2012, where overall magnesium spot prices have increased by approximately 11.5%, and see this as a signal that demand trends are improving for the remainder of calendar 2012 and into 2013. As a result, we continue to build on our magnesium inventory in the quarter in anticipation of greater demand in the coming quarters. In our basic materials segment, we recorded overall revenues of $10.6 million in the third quarter of fiscal 2012, a decline of $9.5 million compared to the third quarter of fiscal 2011. The decrease in revenues was primarily due to the sharp decline in sales volumes from our construction steel related products as the tightened credit conditions in China that were stepped up in early 2011 severely impacted our customer's ability to obtain financing to purchase our products. Our consulting segment generated $0.1 million in revenue in third quarter of fiscal 2012 as compared to revenues of $11.8 million recorded in the comparable period of fiscal 2011 largely due to the timing of service and transactional contracts in the comparable periods. Consulting segment revenues vary from period to period depending upon the timing, nature, and scope of services we provide to clients. During the third quarter, we did not have any significant transactions as compared to the same quarter in prior year where we completed a transaction associated with the addition of a new client.Balance Sheet At June 30, 2012, total assets were $150.0 million and shareholder equity was $78.5 million with 48.2 million shares outstanding. At September 30, 2011, total assets were $116.3 million and shareholder equity was $68.3 million with 40.4 million shares outstanding. At June 30, 2012, cash and cash equivalents were $4.1 million with an additional $21.2 million in prepaid expenses. Cash and cash equivalents were $12.6 million at September 30, 2011 with an additional $14.4 million in prepaid expenses. Working capital was $30.6 million at June 30, 2012 compared to $44.8 million at September 30, 2011. We will further discuss our operating results for the third quarter and the first nine months of fiscal 2012 during the conference call today, August 14, 2012 at 4:30 PM EDT. Commenting on our results for the third quarter of fiscal 2012, Dr. James Wang, Chairman and CEO of CD International, stated, "While we faced a number of challenges in this quarter, we have made significant inroads in positioning our company for future growth including the increase in magnesium segment revenue. Our overall balance sheet has also improved in fiscal 2012 with an increase in both total assets and shareholder equity. Most importantly, we continue to position the company to be the world's leading provider of pure magnesium and related products by devoting substantial assets toward building inventory and integrating our recent acquisitions. We believe the operational improvements in gross margins we have begun to see in this quarter will gain momentum as we further the integration of our sales and purchasing efforts. With the recent sharp increase in magnesium prices in the months following the end of this quarter, we believe that we can improve on our results substantially in the coming quarters. We also remain committed to our efforts to rationalize non-core operations as we focus on maximizing our assets for future growth." CD International Conference Call to discuss its financial results for the third quarter of fiscal 2012 The conference call will take place at 4:30 p.m. EDT on Tuesday, August 14, 2012. Anyone interested in participating should call (877) 407-8031 if calling within the United States or (201) 689-8031 if calling internationally approximately 5 to 10 minutes prior to 4:30 p.m. Participants should ask for the CD International Enterprises 2012 Third Quarter Earnings conference call. This call is being webcast and can be accessed at CD International website at http://www.cdii.net/index.php/investor-relations/calendar-of-events. The webcast may also be accessed at: http://www.investorcalendar.com/IC/CEPage.asp?ID=169499. The playback of the webcast can be accessed through either site until November 15, 2012. To access the webcast, you will need to have the Windows Media Player on your desktop. For the free download of the Media Player, please visit: http://www.microsoft.com/windows/windowsmedia/en/download/default.asp About CD International Enterprises, Inc.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV