Worldwide Energy and Manufacturing: Fiscal Year 2009
* Company Reports Record Revenue of $62.2 Million, up 35.5% Year-Over-Year
* EBITDA up 89% Year-Over-Year (excluding derivative liability)
* Solar Division Revenue up 54% Year-Over-Year
* Solar Division Gross Profit up 175%
* Solar Division Gross margins up from 5.5% in fiscal 2008 to 9.9% in fiscal 2009
* Total Assets up 81% Year-Over-Year, from $19.13 Million to $34.65 Million
* Cash and Cash Equivalents increased 80.3% to $9.18 million Year-Over-Year
Worldwide Energy and Manufacturing USA, Inc., a U.S.-based solar module technology and China manufacturing company specializing in products for customers in the industries of solar energy, aerospace, wireless telecommunications, medical equipment and automotive industries, announced financial results for the full year ended December 31, 2009.
Full Year Highlights
* 2009 Revenue increased by 35.5% to $62.2 million compared to net sales of $45.9 million in the full year 2008.
* 2009 Solar Module revenue was $47.8 million compared to solar module sales of $31.0 million for 2008, an increase of over 54.0%.
* 2009 EBITDA (excluding derivative liability) was $0.69 per share, or $2.5 million compared to $0.45 per share, or $1.3 million, for the full year 2008.
* Total Assets were up 81% year-over-year, from $19.13 million in 2008 to $34.65 million in 2009.
* Cash and Cash Equivalents increased 80.3% to $9.18 million year-over-year.
* Net Income (excluding derivative liability) was $1.72 million, or $0.48 per share in 2009, compared to $0.79 million, or $0.27 per share, in 2008.
* Net Income (Loss) was $(0.58) million, or $(0.16) per share in 2009 compared to $3.88 million, or $1.33 per share, in the full year 2008.
Jimmy Wang, Chairman and CEO of Worldwide Energy and Manufacturing, said: "In many ways 2009 was a banner year for our company. We strengthened our board of directors, brought on a big-four Chief Financial Officer, and produced the biggest revenue year in the history of the company. Though our net income suffered due to a warrant derivative, our EBITDA was up substantially, and our gross margins were up significantly in our fast-growing solar division. I expect a strong first quarter and another record revenue year in 2010."
Full Year Ended December 31, 2009 Financial Results
For the fiscal year ended December 31, 2009, net income before tax was $0.78 million compared to net income of $4.18 million in the same period of 2008. The decrease of $3.40 million, or approximately 81.3%, was primarily due to the unfavorable change in the warrant derivative liability of $1.14 million in 2009 and the favorable change in the warrant derivative liability of $3.09 million in 2008.
Net income (loss) after tax for the fiscal year ended December 31, 2009 was $(0.58) million compared to a net profit of $3.88 million for the same yearly period of 2008. The decrease of $4.46 million was primarily due to the same aforementioned changes in the warrant derivative liability between 2008 and 2009.
Net sales for the fiscal year ended December 31, 2009 were $62.2 million compared to sales of $45.9 million for 2008. The increase of $16.3 million, or approximately 35.5%, was the result of an increase in shipments from the Solar division. The Company continues to focus on market penetration for its PV Solar Modules. Solar modules revenues comprised approximately 76.8% of the Company's gross sales in full fiscal year ended December 31, 2009 compared to 67.5% for 2008.
For the fiscal year ended December 31, 2009, gross profit was $8.40 million compared to gross profit of $5.45 million in the same yearly period of 2008. This represents an increase of $2.95 million, or 54.1%, due primarily to robust sales in the Company's Solar division for the period. The gross profit for the fiscal year ended December 31, 2009 for the solar division was $4.72 million compared to $1.72 million in the same yearly period of 2008. This represents an increase of $3.01 million in gross profit in the fiscal year ended December 31, 2009, or an approximate increase of 175.0%. The gross profit for contract manufacturing for the fiscal year ended December 31, 2009 was $3.68 million compared to $4.45 million in the same yearly period of 2008, a decrease of $0.77 million, or approximately 17.4%.
Cost of goods sold for the fiscal year ended December 31, 2009 was $53.8 million compared to $40.4 million for the same period of 2008. The increase of $13.4 million, or approximately 33.3%, was the result of greater revenues in the energy division. The cost of goods for solar modules for the fiscal year ended December 31, 2009 was $43.0 million compared to $29.3 million for the same yearly period of 2008. The increase of $13.7 million, or 46.9%, was due to the higher sales. The costs of goods sold for contract manufacturing was $10.8 million for the fiscal year ended December 31, 2009 compared to cost of goods sold of $10.5 million in the same yearly period of 2008.
For a full discussion of our fiscal 2009 results, please see the Company's Form 10-K filed April 15, 2010 with the Securities and Exchange Commission.
Conference Call and Webcast
The Company will hold a conference call to discuss these 2009 financial results on Friday, April 16, 2010 at 10:00 a.m. Eastern time (7:00 a.m. Pacific).
To participate in the call please dial (888) 846-5003, or (480) 629-9856 for international calls, approximately 10 minutes prior to the scheduled start time. Interested parties can also listen via a live Internet webcast, which can be found via the Company's website at http://www.wwmusa.com or alternately at http://viavid.net.
A replay of the call will be available for two weeks from 1:00 p.m. April 16, 2010, EDT until 11:59 p.m. EDT on April 30, 2010. The number for the replay is (303) 590-3030; the passcode for the replay is 4284236. In addition, a recording of the call will be available via the company's website at http://www.wwmusa.com for one year.
About Worldwide Energy and Manufacturing USA, Inc.
Worldwide Energy and Manufacturing USA, Inc. (http://www.wwmusa.com), headquartered in South San Francisco, California, is a 16-year-old engineering-oriented firm specializing in photovoltaic (PV) panel, mechanical, electronics and fiber optic products manufacturing. The company's worldwide customer base includes the industries of solar energy, wireless telecommunications, aerospace, automobiles and medical equipment. Subsidiaries include Shanghai Intech Electro Mechanical Products Co. Ltd., Shanghai Intech Electronics Manufacturing Co. Ltd. and Shanghai Intech Precision Mechanical Products Manufacturing Co. Ltd., located in Shanghai, China.
The above news release contains forward-looking statements. The statements contained in this document that are not statements of historical fact, including but not limited to, statements identified by the use of terms such as "anticipate," "appear," "believe," "could," "estimate," "expect," "hope," "indicate," "intend," "likely," "may," "might," "plan," "potential," "project," "seek," "should," "will," "would," and other variations or negative expressions of these terms, including statements related to expected market trends and the Company's performance, are all "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties. These statements are based on assumptions that management believes are reasonable based on currently available information, and include statements regarding the intent, belief or current expectations of the Company and its management. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performances, and are subject to a wide range of external factors, uncertainties, business risks, and other risks identified in filings made by the company with the Securities and Exchange Commission. Actual results may differ materially from those indicated by such forward-looking statements. The Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statement contained herein to reflect any change in the company's expectations with regard thereto or any change in events, conditions or circumstances upon which any statement is based.
WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
2009 December 31
Cash and cash equivalents $ 9,180,974 $ 5,092,476
Restricted cash (Note 10) 2,456,040 --
Accounts receivable, net of allowances of $312,000 and $46,000 at December 31, 2009
and 2008, respectively
Notes receivable 40,680 269,507
Inventories 4,567,343 3,754,765
VAT tax receivable 570,615 --
Advances to suppliers 488,395 99,824
Deferred tax asset 100,000 --
Note receivable from officer 50,000 --
Other receivables -- 185,400
Prepaid and other current assets 363,309 206,770
Total current assets 30,057,146 14,399,248
Property and equipment, net 2,968,958 1,353,539
Intangible assets 1,101,000 1,101,000
Goodwill 285,714 285,714
Investment at cost -- 51,892
Deposits paid for contracts in process -- 1,673,084
Long term receivable -- related party 237,305 260,973
Other assets -- 7,559
Total assets $ 34,650,123 $ 19,133,009
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $ 14,177,570 $ 3,400,253
Accrued expenses 2,869,069 1,073,994
Lines of credit 2,679,167 --
Warrant derivative liability 1,626,586 486,356
Acquisition cost payable -- 285,714
Tax payable 768,289 364,213
Due to related parties 1,646,114 1,243,024
Customer deposits 280,616 964,998
Total current liabilities 24,047,411 7,818,552
Line of credit -- 937,075
Loan payable to stockholders -- 60,024
Total non-current liabilities -- 997,099
Total liabilities 24,047,411 8,815,651
Common stock (No Par Value: 100,000,000 shares authorized; 3,671,611 and
3,493,511 shares issued and outstanding at December 31, 2009 and 2008, respectively) 2,920,372 2,535,652
Retained earnings 6,104,586 6,681,589
Accumulated other comprehensive income 551,943 487,478
Total equity attributable to Worldwide 9,576,901 9,704,719
Non-controlling interest 1,025,811 612,639
Total stockholders' equity 10,602,712 10,317,358
Total liabilities and stockholders' equity $ 34,650,123 $ 19,133,009
WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
For The Year Ended
Sales $ 62,212,252 $ 45,913,957
Cost of goods sold 53,813,483 40,367,870
Gross profit 8,398,769 5,546,087
Selling, general and administrative expenses 5,560,615 3,417,482
Management and professional fees paid to stockholders 335,000 306,000
Stock based compensation 384,720 128,597
Depreciation 502,488 122,923
Total operating expenses 6,782,823 3,975,002
Net operating income 1,615,946 1,571,085
Other Income (Expenses)
Interest income 17,448 21,995
Interest expense (77,328) (120,038)
Interest expense paid to stockholders -- (27,284)
Other income (expense) (833,690) 2,956,663
Dividend income -- 242,770
Exchange gain (loss) 57,880 (364,067)
Loss on disposal of subsidiary -- (101,982)
Total other income (expenses) (835,690) 2,608,057
Income before income taxes 780,256 4,179,142
Income taxes (953,000) (284,368)
Income (loss) from continuing operations (172,744) 3,894,774
Income from discontinued operations, net of tax -- 2,385
Net income (loss) $ (172,744) $ 3,897,159
Less: Net income attributable to non-controlling interest (404,259) (15,843)
Net income (loss) attributable to Worldwide $ (577,003) $ 3,881,316
Amounts attributable to Worldwide common Stockholders:
(Loss) income from continuing operations $ (577,003) $ 3,878,931
Income from discontinued operations -- 2,385
Net (loss) income $ (577,003) $ 3,881,316
Earnings per share attributable to Worldwide stockholders:
Basic and diluted earnings (loss) per share from continuing operations $ (0.16) $ 1.33
Basic and diluted earnings per share from discontinued operations $ 0.00 $ 0.00
Basic and diluted earnings (loss) per share $ (0.16) $ 1.33
Basic and diluted weighted average shares outstanding 3,596,851 2,911,599
This information is intended to be reviewed in conjunction with the Company's filings with the Securities and Exchange Commission.
Worldwide Energy and Manufacturing USA
650-794-9888, Ext. 221