China Linen Textile, producer, marketer and exporter of fabric and yarn, today posted record third quarter 2010 results, reporting increases stemming from increased market demand and enhanced sales efforts.
“We are pleased to report record revenue and earnings for the third quarter of 2010, which were a direct result of our expanded sales efforts for our broad line of linen fabrics, increased linen yarn distribution channels, and our fixed asset lease agreement with Lanxi Tianxianfang Linen Company, Ltd. which significantly expanded our production capacity,” Gao Ren, chairman and president of China Linen stated in the press release. “Our recent acquisition of Lanxi Tianxianfang is an important milestone in our goal to become a vertically integrated producer and the benefits of this relationship were evidenced in our recent operating and financial results to further improve our financial and operational performance.”
Revenue for the third quarter of 2010 increased 109.3 percent to $14.0 million, compared to $6.7 million for the third quarter of 2009. Sales of linen fabric sales increased 110.9 percent year-over-year to $12.5 million, accounting for 89.0 percent of sales for the period. Sales of linen yarn increased to $1.5 million, up from $0.2 million a year ago. New customer sales contributed to approximately 45 percent of total revenue in the third quarter of 2010.
China Linen reported gross profit for the third quarter of 2010 at $4.4 million, a 114.9 percent increase from $2.1 million in the third quarter of 2009. Gross margin was 31.5 percent versus 30.7 percent in the third quarter of 2009.
Operating expenses for the third quarter of 2010 increased to approximately $0.7 million, compared to $0.2 million for the comparable quarter of 2009. The company attributes the increase to increased selling expenses and increased expenses in connection with its public company compliance efforts.
China Linen’s operating income for the third quarter of 2010 increased 98.2 percent to $3.7 million compared to operating income of $1.9 million in the third quarter of 2009.
The company reported a 74.9 percent increase in net income for the third quarter of 2010, compared to $1.6 million for the third quarter of 2009. Diluted earnings per share increased 74.1 percent to $0.14 compared to $0.08 for the third quarter of 2009, based upon 20.2 million and 20.1 million weighted average number of shares outstanding, respectively.
As of September 30, 2010, cash and cash equivalents totaled $4.4 million, nearly double the $2.3 million reported on December 31, 2009.
The company raised its full-year guidance of sales from $38.1 million to $44.0 million and maintains net income guidance of $9.3 million and raises EPS guidance from $0.39 to $0.46 based on 20,215,003 weighted average number of shares outstanding.
Ren said the company is anticipating new customer orders and noted that by boosting its production capacity, the company is on track to meet its 2011 expansion goals.
“China Linen’s continued international and domestic market expansion is anticipated to yield additional customers and orders, which will drive incremental growth and support our efforts to further penetrate the existing customer base. We expanded our linen yarn production capacity by approximate 40 percent and linen fabric production capacity by 26 percent through the additional of Lanxi Tianxianfang, which provides the foundation to meet our 2011 growth objectives,” Ren stated.
For more information visit www.chinalinen.cc
About QualityStocks:
QualityStocks is committed to connecting subscribers with companies that have huge potential to succeed in the short and long-term future. We offer several ways for investors to learn more about investing in these companies as well as find and evaluate them.
Sign up for “The QualityStocks Daily Newsletter” at www.QualityStocks.net
The Quality Stocks Daily Blog http://blog.qualitystocks.net
The Quality Stocks Daily Videos http://videocharts.qualitystocks.net
The Quality Stocks “Ones to Watch” http://Gotstocks.QualityStocks.net
Please see disclaimer on QualityStocks website: http://disclaimer.qualitystocks.net
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment