NF Energy Saving Corp., a leading energy saving services and solutions provider for China’s power, petrochemical, coal, metallurgy, construction and municipal infrastructure development industries, today reported financial results for its fourth quarter and fiscal year ended December 31, 2010. The company also reiterated its guidance for full fiscal year 2011.
“Looking at NF Energy’s performance for the year as a whole we are satisfied with the company’s operations and the results that we have achieved,” Gang Li, CEO of NF Energy stated in the press release. “Although the company’s total revenue and profitability for the second half of the year was adversely affected by our move to our new facility and this financial result was a disappointment to us, we weigh this against the potential of our new facility that has the ability to eventually triple our production capacity to 20,000 tons per year.”
Revenue for the fourth quarter increased 42.0 percent to $7.3 million, up from $5.1 million in the same period of 2009. Gross profit in the fourth quarter of 2010 was $1.3 million, a decrease of 24.4 percent over the $1.7 million in gross profit generated in the fourth quarter of 2009. The company attributes the decrease in gross profit primarily to higher raw materials prices, increases that at times, the company was unable to pass on to the customer.
Net income from operations for the fourth quarter of 2010 was $0.8 million; operating margins declined to 10.4 percent from 30.3 percent in the year ago period. Net income for the 2010 fourth quarter was $0.5 million, or $0.09 per diluted share compared to net income of $1.4 million or $0.25 per diluted share in the fourth quarter of 2009 based on 5.5 million and 5.3 million fully diluted shares outstanding respectively.
For fiscal 2010, the company reported a 24.8 increase in revenue to $25.4 million, up from $20.3 million for 2009.
Gross profit for the fiscal year 2010 was $6.8 million, an increase of 3.2 percent over the $6.6 million in gross profit generated in the fiscal year 2009. Gross margin was 26.9 percent compared to 32.6 percent.
Operating expenses were $1.2 million and $1.1 million, or 4.9 percent and 5.6 percent of total revenues for the year ended December 31, 2010 and 2009 respectively; income from operations for the fiscal year 2010 was $5.6 million, up 2.2 percent from the $5.5 million of income from operations generated in the year ago period.
Net income for the fiscal year 2010 was $4.3 million, or $0.79 per diluted share compared to net income of $4.8 million or $0.90 per diluted share in the fiscal year 2009. Earnings per share reflect the one for 2.5 reverse split of the Company’s common stock affected in September 2010.
As of December 31, 2010, NF Energy had $0.8 million in cash and cash equivalents compared to $0.2 million in cash and cash equivalents on December 31, 2009; working capital was $11.5 million.
The company also reiterated its guidance for the full fiscal year 2011, with revenue forecast to be between $30 million-$32 million and net income to be in the range of $6.0 million-$6.5 million.
For more information visit http://www.nfenergy.com
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