Cavico Corp. (“Cavico”) (NASDAQ: CAVO), a leading infrastructure development company based in Vietnam, today announced its audited financial results for the fiscal year ended December 31, 2009. Total revenue for the year ended December 31, 2009 increased by $9.2 million, or 17.6% to $61.1 million from $51.9 million in the year ended December 31, 2008.

Twelve Months Fiscal 2009 Revenues
Twelve Months Ended
December, 31
        2009       2008       % Change
Civil Construction $52,575,960       $47,501,672 10.7%
Commercial Activities       $8,514,762       $4,435,264       92.0%
Total Revenues $61,090,722 $51,936,936 17.6%

These financial results do not include the consolidation of Cavico Mining and Construction JCS (“Cavico Mining”), which will be consolidated for the first quarter of 2010, as a result of the consummation of the purchase by Cavico of a controlling interest in Cavico Mining. Cavico Mining had $9.0 million in revenues in both 2009 and 2008.

Revenues for the Civil Construction segment for the twelve months were to $52.6 million versus $47.5 million in the same period of fiscal 2008. The 10.7% increase in Civil Construction revenue was attributable to several new projects such as Ta Trach, Thern Hinburn, Dambri, Song Giang and Ngan Truoi in addition to making progress billings upon completion of these projects as well as to Cavico’s two largest projects, A Luoi and Algeri. Revenues from other Commercial Activities, which includes leasing machinery and equipment, selling raw materials and steel fabrication for the twelve months increased to $8.5 million from $4.4 million in a year ago. The increase in commercial activity was primarily attributable to Vietnam’s economic recovery resulting in increased demand for construction materials.

For the year ended December 31, 2009, Cavico had a net loss of $4.8 million compared to a net profit of $0.6 million in 2008, as it was negatively affected by income tax expense of $0.4 million in 2009 compared to a $2.4 million income tax benefit received in 2008 and an other-than-temporary loss on marketable securities of $1.0 million. Another factor for the decrease in net income for the year ended December 31, 2009 compared to 2008 was the reduction of the gross profit of $1.7 million. Gross profit for the year 2009 was $5.8 million or 9.5% of sales compared to $7.5 million for the year 2008. This reduction of gross profit was caused by the higher costs of goods sold expenses recorded for several projects completed during 2009 as the costs are normally higher at the completion stage , write-off of aged work-in-process and recording of project loss on certain projects. Cavico anticipates that gross profit will increase in 2010 as a result of higher revenues and lower costs on continuing projects.

The Company’s income before interest, depreciation and amortization, income tax and non-controlling interest for the year ended December 31, 2009 was $5.2 million.

Mr. Ha Quang Bui, chairman and chief executive officer of Cavico Corp., stated, “When compared to year-over-year, we believe these fiscal year 2009 results demonstrate the continued growth in sales and solid execution of our projects, reaffirming our overall long-term business strategy. As Vietnam’s largest non-state-owned engineering and construction contractor with a national presence servicing almost exclusively public sector clients, Cavico will continue to benefit and grow by the recovery of Vietnam’s economy and the government’s focus to improve and develop key infrastructure projects that will help the country move forward and become more competitive in the international arena.”

Operating expenses increased by $0.8 million to $7.4 million for the twelve months of fiscal 2009. The increase in operating expenses was primarily due to administrative costs with the corporate office and professional fees related to audit, legal, consulting services.

Net loss attributable to Cavico Corp. for the twelve months of 2009 was $4.8 million, or ($1.56) per share, versus a net income of $631,816, or $0.21 per share, in the same period of 2008. For the twelve months ended December 31, 2008, the Company recorded a tax benefit of $2.4 million compared to a tax expense of $447,295 for the same period in 2009.

Financial Position

The Company had cash balance of $2.4 million as of December 31, 2009 compared to $3.0 million in 2008, accounts receivable of $15.8 million and current work in progress of $25.9 million. Total current liabilities were $89.5 million, which included advances from our customers of $6.9 million. As of December 31, 2009, total shareholders’ equity was $9.3 million.

As of December 31, 2009, Cavico had loan balance of $60.1 million with interest rates ranging from 10.1% to 17.4% and recorded $6.2 million of interest expense in 2009. The Company’s income before interest, depreciation and amortization, income tax and non-controlling interest for the years ended December 31, 2009 and 2008 was $4.6 million and $11.7 million, respectively. The Company would like to repay outstanding debt and lower interest expense in 2010.


The Company’s backlog as of December 31, 2009 was $273.5 million compared to $253.8 million excluding Cavico Mining at the end of the third fiscal quarter of 2009. The backlog figure at December 31, 2009 is derived from the end of the third quarter backlog minus work completed plus new contracts signed during the fourth quarter. Cavico will continue to provide periodic updates when additional major contracts are confirmed.

2010 Expectations

As previously commented, Mr. Bui reaffirms his comments regarding forward-looking guidance, “We have seen our operating activities in the fourth quarter improve from the levels we saw in the third quarter. As a result of our current 2010 operating activities and backlog, we currently expect our total revenues, including Cavico Mining, for fiscal 2010 to be in the range of $82 million to $86 million, which is approximately 30% growth and we estimate net income will be in the range of $1.1 million to $1.5 million. We anticipate that the growth will be driven by existing and new operations managed by the Company and expect that the increases in our mining and construction operations will be led by the growth and development of the Vietnamese economy. Vietnam’s real GDP expanded by 5.3% for the full year of 2009, which is faster than the 4.6% recorded year over year in the first nine months of 2009. The current business environment in Vietnam remains hopeful and we believe that our strong market leading position will allow us to capitalize on opportunities we are currently pursuing and add to our current backlog.”

About Cavico Corp.

Cavico Corp. is focused on large infrastructure projects, which include the construction of hydropower facilities, dams, bridges, tunnels, roads, mines and urban buildings. Cavico is also making investments in hydropower facilities, cement production plants and urban developments in Vietnam. The company employs more than 3,500 employees on projects worldwide, with offices throughout Vietnam and a satellite office in Australia.

Founded in 2000, Cavico is a major infrastructure construction, infrastructure investment and natural resources conglomerate headquartered in Hanoi, Vietnam. Cavico is highly respected for its core competency in the construction of mission-critical infrastructure including hydroelectric plants, highways, bridges, tunnels, ports and urban community developments. One of the Company’s primary competitive advantages is its ability to nurture a project “from concept through completion” with a vertical portfolio of interrelated investment, permitting, design, construction management and facility maintenance services. Cavico’s project partners include top multi-national corporations and government organizations. The Company employs more than 3,500 full-time, part-time, and seasonal workers. For more information, visit Information on the Company’s Web site or any other Web site does not constitute a portion of this release.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to, the Company’s ability to obtain the necessary financing to continue and expand operations, to market its construction services in new markets and to offer construction services at competitive pricing, the Company’s ability to complete projects in the time frame specified; anticipated revenue from the projects to attract and retain management, and to integrate and maintain technical information and management information systems; the effects of currency policies and fluctuations, general economic conditions and other factors detailed from time to time in the Company’s filings with the United States Securities and Exchange Commission and other regulatory authorities. These statements include, without limitation, statements regarding our ability to prepare the Company for growth; the Company’s planned expansions, and predictions and guidance relating to the Company’s future financial performance. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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