Guanwei Recycling Second Quarter Results Reflect Continuing Favorable Trends
(firmenpresse) - FUQING CITY, CHINA -- (Marketwired) -- 08/14/13 --
(NASDAQ: GPRC)China's leading clean tech manufacturer of recycled low density polyethylene (LDPE), today reported that in its second quarter ended June 30, 2013, it experienced a continuation of the positive trends in sales and costs that began to develop in the second half of 2012. Sales in the quarter of self manufactured recycled LDPE rose 5.21% compared with the prior year quarter, based on moderate gains in selling prices as well as sales volume, while raw material and labor costs in the quarter continued to stabilize. Consequently, there was further improvement in the gross profit margin leading to a 2.37% increase in net income compared with the second quarter of last year.
Net revenues in the second quarter of 2013 were $17,732,347, including $17,266,070 in sales of manufactured recycled LDPE and $466,277 in sales of sorted non-LDPE materials. 2013 second quarter sales of manufactured recycled LDPE were up 5.21% compared with the $16,410,448 in sales of manufactured recycled LDPE in the same period last year. Revenues in last year's second quarter of $18,694,938 also included sales of sorted non-LDPE materials of $511,361 as well as $1,773,129 in excess inventory that was sold with a negligible markup to recoup costs. The increased sales of manufactured recycled LDPE in the 2013 second quarter reflected a 2.23% increase in average selling prices to approximately $1,239 per ton, as well as a 2.96% increase in volume to 13,939 tons sold.
For the six months ended June 30, 2013, revenue from the sale of manufactured recycled LDPE was $31,778,819, a 4.35% increase over the prior year period, reflecting an increase in the average selling price of approximately 1.57% and an increase in tons sold of 2.66% compared with the prior year's first six months. Total revenues in the first six months of 2013 were $32,572,153 compared with $34,866,428 in the prior year period which included $3,462,210 in low margin sales of raw materials. Sales of sorted non-LDPE materials totaled $793,334 and $949,128 for the six months ended June 30, 2013 and 2012, respectively.
During the second quarter of 2013, the cost of imported plastic waste -- which is the Company's primary raw material -- increased 8.41% to $748 per ton compared with $690 per ton in the second quarter of 2012. However, the $748 per ton cost in the 2013 second quarter was 2.35% lower than the $766 per ton cost in the first quarter this year. Additionally, following a significant increase in labor costs in 2012, labor cost per ton in the 2013 second quarter declined 3.57% compared with the same quarter last year. As a result of better control of labor and overhead costs, gross margin in the 2013 second quarter was 28.96% compared with 28.34% in the same period in 2012, excluding the sale of raw materials.
In the first six months of 2013, the Company's average manufacturing costs declined slightly compared with the same period a year earlier. While per ton raw material costs increased 4.71% to $756 per ton in the first half of 2013, labor costs per ton declined 8.93% compared to the same period a year earlier.
Net income in the second quarter of 2013 increased 2.37% to $3,237,997 from $3,163,030 in the year earlier quarter. EPS was $0.31 in both periods based on approximately 10.41 million diluted weighted average number of common shares outstanding in the 2013 quarter compared with approximately 10.35 million shares in the 2012 second quarter. For the first six months of 2013, net income rose 7.17% to $5,603,390, compared with $5,228,286 in the first half of 2012. EPS in the first six months of 2013 was $0.54 on approximately 10.41 million diluted weighted average number of common shares outstanding, compared with $0.51 on approximately 10.18 million shares in the year earlier period.
As of June 30, 2013, the Company reported that it had no bank debt and cash and cash equivalents of $15,399,617, up from $12,083,358 as of December 31, 2012. Working capital as of June 30, 2013 and December 31, 2012 was $42,057,689 and $35,505,028, respectively. The increase in working capital in part reflects the increase in cash and cash equivalents, an increase in advances to suppliers which led to a reduction in accounts payable, and a partially offsetting decrease in accounts receivable resulting from ongoing efforts to speed collection from customers.
"We anticipate the steady progress we have made over the past couple of quarters will continue through the remainder of the year, as current indications are that raw material costs will continue to stabilize and demand for recycled LDPE will continue to grow," stated Mr. Chen Min, Chairman and CEO.
"Further," he added, "we are well positioned to capitalize on stronger demand for our products as China's economy strengthens further and we retain our competitive advantage by staying focused on being the environmental leader in the industry."
The Company will discuss 2013 second quarter results during a live conference call and webcast on .
To participate in the call, interested participants should call 1-877-941-1427 when calling within the United States or 1-480-629-9664 when calling internationally. Please ask for the Guanwei Recycling Corp. 2013 Second Quarter Conference Call, Conference ID: 4635647. There will be a playback available until August 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: 4635647.
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: 14.08.2013 - 05:30 Uhr
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News-ID 1254530
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