HANOI, Vietnam, Dec. 1, 2010 (GLOBE NEWSWIRE) -- Cavico Corp. (Nasdaq:CAVO), a major infrastructure construction, infrastructure investment, and natural resources conglomerate based in Vietnam, today announced that its minority-owned subsidiary, Cavico Construction Manpower & Services Joint Stock Company ("Cavico CMS"), has listed 2.5 million of its shares on the Hanoi Stock Exchange. Cavico Construction Manpower & Services Joint Stock Company now trades under ticker symbol: HNX:CMS. On the first day of trading, the stock traded at 23,000 VND, which is equal to approximately $1.20. Founded as a subsidiary of Cavico in July 2007, Cavico CMS is a pioneer in manpower supply for the construction sector both domestically and internationally. Cavico CMS is currently supplying 500 workers to COJAAL, a joint venture comprising Japanese trading house Itochu and four of Japan's largest construction companies: Kajima, Taisei, Hazama, and Nishimatsu. Cavico CMS is assisting COJAAL construction of a 399 kilometer, $5 billion highway from the border of Tunisia to Eltaf City, Algeria. Cavico CMS is also actively looking to provide skilled workers to other countries such as Libya, Malaysia, India, and Mongolia. Cavico CMS is also currently performing construction at several hydropower projects in Vietnam. "By listing its shares on Hanoi Stock Exchange, Cavico Construction Manpower and Services will have access to the domestic capital market to grow its business and demonstrate its commitment to improving the liquidity of its shares," stated Mr. Hai Thanh Tran, vice president of Cavico Corp. "By leveraging the resources within Cavico's group of companies and our collective experience in bridge and tunnel construction, Cavico CMS will be able to take advantage of the excellent opportunities we have to access international markets and to expand our efforts into new growth prospects." Cavico has two other subsidiaries, Cavico Mining (HSX:MCV), and Cavico Industry & Mineral (HNX:CMI), listed in Vietnam on the Ho Chi Minh and Hanoi Stock Exchanges. By listing its subsidiaries on exchanges in Vietnam, Cavico expects its subsidiaries to raise capital in Vietnam and it anticipates that the listed subsidiaries will operate more efficiently.
Raising capital will also give Cavico the opportunity to reduce debt. While Cavico reported a net loss in the third quarter of 2010, it had positive EBITDA. For the three months ended September 30, 2010, EBITDA was $1.3 million as a result of net interest expense of $1.7 million (including $1.3 million of interest expensed in COGS), income taxes of $0.3 million, and depreciation and amortization of $0.9 million. For the nine months ended September 30, 2010, EBITDA was $3.0 million as a result of net interest expense of $4.9 million (including $3.7 million of interest expensed in COGS), income taxes of $0.8 million and depreciation and amortization of $2.7 million.EBITDA EBITDA represents net income (loss) before non-controlling interest for the respective periods excluding depreciation and amortization expense, interest income (expense) and income taxes. EBITDA should not be construed as an alternative to operating income (loss) or to cash flows from operating activities as determined in accordance with generally accepted accounting principles and should not be construed as a measure of liquidity. EBITDA may not be comparable to similarly entitled measures reported by other companies. A reconciliation of EBITDA to net loss is attached as an exhibit to this press release. 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, mineral exploration and urban developments in Vietnam. The company employs more than 3,000 employees on projects worldwide, with offices throughout Vietnam and a satellite office in Australia. The Company now has three subsidiaries, Cavico Mining (HSX:MCV), Cavico Industry & Mineral (HNX:CMI), and Cavico Construction Manpower & Services ( HNX:CMS), which are listed in Vietnam on the Ho Chi Minh and Hanoi Stock Exchanges. 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 3,000 full-time, part-time, and seasonal workers. For more information, visit http://www.cavicocorp.com. 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.
|CAVICO CORP. AND SUBSIDIARIES|
|Reconciliation of EBITDA, as adjusted, to Net Loss:|
|(Amounts shown in thousands)|
|For the Three Month Ended||For the Nine Month Ended|
|September 30, 2010||September 30, 2010|
|Reconciliation of EBITDA to net loss:|
|Interest Expense included in COGS||(1,317)||(3,654)|
|Depreciation and Amortization||(893)||(2,656)|
|Net Loss before Non-Controlling Interests||(1,681)||(5,354)|
CONTACT: Cavico Corp. Timothy Pham, Vice President and Director +1-714-843-5456 firstname.lastname@example.org RedChip Companies, Inc. Investor Relations Contact: Dave Gentry 800-733-2447, Ext. 104 407-644-4256, Ext. 104 email@example.com