Guanwei Recycling Corp. 2013 First Quarter Net Income Grew 14.53% Year Over Year as Manufacturing Costs Continued to Stabilize
2013 First Quarter Investor Conference Call to Be Held Thursday, May 16th, at 8:00am ET
(firmenpresse) - FUQING CITY, CHINA -- (Marketwired) -- 05/15/13 -- (NASDAQ: GPRC), a leading clean-tech manufacturer in China of recycled low density polyethylene (LDPE), today reported net income in its first quarter ended March 31, 2013, grew 14.53% year over year as the Company achieved small year over year increases in selling prices and sales volume for its self manufactured recycled LDPE and manufacturing costs continued to stabilize. EPS in the 2013 first quarter increased to $0.23, compared with $0.21 a year earlier.
Net revenues in the first quarter ended March 31, 2013 were $14,839,806. This figure included $14,512,749 in sales of manufactured recycled LDPE and sales of sorted non-LDPE material of $327,057 in what typically is a slow quarter. In comparison, in the 2012 first quarter, manufactured recycled LDPE sales were $14,044,642. However, the Company's net revenues in the 2012 first quarter were $16,171,490, which included $1,689,081 in low margin raw material sales which did not take place in the 2013 first quarter. Sales of sorted non-LDPE materials in the 2012 first quarter were $437,767. The Company noted that the year over year 3.33% increase in first quarter sales of manufactured recycled LDPE in 2013 reflected a 0.99% increase in average selling prices to approximately $1,223 per ton, while sales volume increased 2.30% to 11,867 tons.
Gross profit in the 2013 first quarter increased 9.10% compared with the same period last year, as the cost of revenue (consisting of plastic waste raw material, labor and manufacturing overhead costs) from sales of manufactured recycled LDPE and sorted non-LDPE material declined to 73.86% of net revenue from 75.80% in the comparable quarter in 2012. Labor costs per ton, which increased strongly in 2012, stabilized and remained about the same in the 2013 first quarter as compared to the first quarter of 2012, while per ton raw material costs declined approximately 1.79% to $766 per ton. Excluding the sales of raw materials in the first quarter of 2012, gross margin improved to 26.14% in the 2013 first quarter, compared with 24.2% in last year's first quarter.
Net income in the first quarter of 2013 increased 14.53% to $2,365,393 or $0.23 per share, compared with $2,065,256, or $0.21 per share in the same quarter last year. The weighted average number of diluted common shares outstanding was 10,407,839 shares in the 2013 first quarter as compared with 10,000,004 shares in the year earlier period.
As of March 31, 2013, working capital increased to $38,057,092 compared with $35,505,028 as of December 31, 2012. In part, this reflected an increase in cash and cash equivalents to $13,491,880 from $12,083,358 at the end of 2012. Additionally, in the 2013 first quarter, accounts receivable decreased to $7,686,940 from $9,305,104 at the end of 2012.
"We continue to be very optimistic about our longer term outlook," stated Mr. Min Chen, Chairman and CEO of the Company, "for as the economy in China strengthens further, we anticipate demand for our lower cost, high quality recycled LDPE will continue to grow. We expect to sustain our competitive advantages by remaining focused on maintaining our environmental leadership."
He added, "Since the third quarter of 2012, we have seen continued stabilization in our manufacturing costs; in particular, the cost of imported plastic waste, our primary raw material. Based on current communications with our major suppliers, we believe that average raw material costs should remain fairly stable for the remainder of 2013."
The Company will discuss 2013 first quarter results during a live conference call and webcast on
To participate in the call, interested participants should call 1-888-846-5003 when calling within the United States or 1-480-629-9856 when calling internationally. Please ask for the Guanwei Recycling Corp. 2013 First Quarter Conference Call, Conference ID: 4619442. There will be a playback available until May 23, 2013. To listen to the playback, please call 1-877-870-5176 when calling within the United States or 1-858-384-5517 when calling internationally. Use the Replay Pin Number: 4619442.
This call is being webcast by ViaVid Broadcasting and can be accessed by clicking on this link or at ViaVid's website. at .
Adhering to the highest "green" standards, Guanwei Recycling Corp. (the "Company") has generated rapid growth producing recycled low density polyethylene (LDPE) from plastic waste procured mostly in Europe. The Company sells the recycled LDPE to more than 300 customers (including over 150 active recurring customers) in more than ten different industries in China. The Company is licensed by Chinese authorities and also has been issued a Compliance Certificate by Umweltagentur Erftstadt, which issues certificates of approval for certain plastics manufacturers that meet Germany's strict environmental standards. This enables the Company to procure high quality plastic waste directly from Germany and other European countries (Spain and Holland) with no middlemen, and permits highly economic production of the highest grades of LDPE. Additional information regarding Guanwei Recycling Corp. is available at .
Except for historical information contained herein, the statements in this press release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause our actual results in future periods to differ materially from forecasted results. These risks and uncertainties include, among other things, product demand, market competition, and risks inherent in our operations. These and other risks are described in our filings with the U.S. Securities and Exchange Commission.
Richard Sun
Ken Donenfeld
DGI Investor Relations
Tel: 212-425-5700
Fax: 646-381-9727
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Datum: 15.05.2013 - 05:25 Uhr
Sprache: Deutsch
News-ID 1227495
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