Worldwide Energy and Manufacturing USA Announces Second Quarter 2009 Financial Results
SOUTH SAN FRANCISCO, CA and SHANGHAI, CHINA–(08/19/09) – Worldwide Energy and Manufacturing USA, Inc. (OTC.BB:WEMU), 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, today announced financial results for the second quarter ended June 30, 2009. A conference call to discuss these results is scheduled for Wednesday, August 19, 2009 at 4:05 p.m. Eastern time (1:05 p.m. Pacific time). Details on accessing the call follow, below.
Highlights of Second Quarter 2009 Results
– Second quarter revenue increased 51% to $10.32 million due to strong
sales in the solar energy division.
-- Solar module revenues were $7,499,560 compared to solar module sales
of $2,505,977 for the same quarter in 2008, or an increase of approximately
199%.
-- EBITDA was $0.08 per share or $299,919 compared to $0.21 per share or
$464,788.
-- Net income was $19,299 or $0.01 per share for the quarter compared to
$412,708 or $0.20 in the June quarter of 2008.
-- Net income before tax was $320,830 compared to $445,290 in the quarter
ended June 30, 2009 and June 30, 2008, respectively, a decrease of
approximately $124,460, or approximately 28%.
Highlights of the Six Months Ended June 30, 2009
– Six-month revenue increased by 68% to $20.6 million compared to net
sales of $12.25 million in the same period of 2008.
-- Solar module revenues were $14.4 million compared to solar module
sales of $5.79 million for the same period of 2008, or an increase of
approximately 149%.
-- EBITDA was $0.24 per share or $850,741 compared to $0.34 per share or
$758,077.
-- Net income was $454,888 or $0.13 per share for the six-month period
compared to $655,361 or $0.29 per share in the six-month period of 2008.
-- Net income before tax was $820,122 compared to $655,527 in the six-
month period of June 30, 2009 and June 30, 2008, respectively, an increase
of $164,595, or 25%.
Jimmy Wang, chief executive officer of Worldwide Energy and Manufacturing, stated: “Though we will not meet our $100 million revenue goal in 2009, I am confident we will generate $60 million in revenue; EBIDTA of $2.5 million or approximately 70 cents and a net income of approximately $2 million, or approximately 56 cents per share. Our solar division continues to drive the growth in our company. We expect 2010 to be a blockbuster year for our solar division. We continue to focus on building our solar module division and enhancing our factory operations.”
Second Quarter Ended June 30, 2009
Net sales for the three months ended June 30, 2009 were $10.32 million compared to net sales of $6.85 million for the same period in 2008. This increase of $3.46 million, or approximately 51%, was the result of an increase in orders in our energy division. The Company continues to focus on its marketing of its solar module by establishing a sales team in China and the United States. This effort has resulted in increases in sales of the Company’s solar modules. Solar module sales for the quarter ended June 30, 2009 were $7.5 million compared to sales of $2.5 million in the same quarter of 2008 an increase of $4.99 million, or approximately 199%, in solar revenues. Solar modules revenues comprised approximately 72.7% of the company’s gross sales in the three-month period ended June 30, 2009 compared to 36.6 % in the same period of 2008. Net sales for the Company’s contract manufacturing business was $2.8 million for three months ended June 30, 2009 compared to net sales in contract manufacturing of $4.35 million for the same period in 2008. The decrease in contract manufacturing sales of $1.53 million, or approximately 35%, is the result of the company’s focus on solar and the decline in overall market conditions for contract parts.
Gross profit increased by $465,841, or approximately 34.9% from $1,335,759 in the quarter ended June 30, 2008 to $1,801,600 for the three months ended June 30, 2009, reflecting solar module sales in the energy division. The gross profit for solar module sales was $807,030 for the three months ended June 30, 2009 compared to $436,427 in the same period of 2008. This represents an increase of $370,603 in gross profit for the Company’s energy division or approximately 84.9%. The gross profit for contract manufacturing for the three months ended June 30, 2009 was $994,570 compared to $899,332 in the same period of 2008, representing an increase of $95,238, or 10.6%. The demand has improved for contract parts due to the improving global economy.
The gross margin was 17.5% for the three months ended June 30, 2009 compared to 19.5% in the same period in 2008. The decline of 2% in gross margin was the result of the company experiencing declines in contract manufacturing margins due to the downturn in the economy. The gross margin for solar for the quarter ended June 30, 2009 was 10.8% compared to 17.4%. This decline of 6.6% was due to the decline in prices of solar modules. The gross margin for contract manufacturing for the quarter ended June 30, 2009 was 35.3% compared to 20.7% in the same period in 2008. The improvement of gross margin in contract manufacturing was 14.6% was due to improve margins at the power supply factory.
Net income before taxes for the three months ended June 30, 2009 was $320,830 compared to a profit of $445,290 for the three months ended June 30, 2008. The decrease of $124,460 or approximately 28.0% was the result of price weakness in our contract manufacturing business due to the weak economy. Net income before tax for the solar module division was $283,235 for the quarter ended June 30, 2009 compared to a net profit before tax of $165,512 in the same period in 2008. This represents an increase of $117,723 or approximately 71.1% as the solar division continues to grow. Net income before tax for contract manufacturing for the three months ended June 30, 2009 was $37,595 compared to $279,778 in the same period in 2008. This represents a decline of $242,183 or approximately 87% as a result of slow demand in our contract manufacturing business.
Net income after tax for the three months ended June 30, 2009 was $19,299 compared to a net profit of $425,035 for the three months ended June 30, 2008. The decrease of $405,736, or approximately 95.5%, was the result of income taxes of $204,078 being due in the quarter compared to income taxes of $19,702 in the same period of 2008. Earnings per share fully diluted for the three months ended June 30, 2009 was $0.01 compared to fully diluted earnings per share of $0.20 for the three months ended June 30, 2008.
Six Months Ended June 30, 2009
Net sales for the six-month period ended June 30, 2009 was $20,598,780 compared to sales of $12,245,410 in six-month period ended June 30, 2008. The increase of $8,353,370, or approximately 68.2% was the result of an increase in orders in our energy division. Gross profit was $3,701,192 for the six months ended June 30 compared to gross profit of $2,490,156 in the same period in 2008. This represents gross margin of 18.0% for the six months ended June 30, 2009 compared to 20.3% in the same period in 2008. The declined of 2.3% in gross margin was the result of the decline in prices for our solar modules due to the economy.
Net income after tax for the six months ended June 30, 2009 was $454,888 compared to a net profit of $655,361 for the six months ended June 30, 2008. The decrease of $200,473 or approximately 31% was the result of income taxes of $242,624 being due in the quarter compared to income taxes of $8,298 in the same period of 2008. Earnings per share fully diluted for the six-month period ended June 30, 2009 was $0.13 compared to fully diluted earnings per share of $0.29 for the six months ended June 30, 2008.
Balance Sheet
Cash and cash equivalents totaled $4.1 million on June 30, 2009, compared to $5.1 million at year end 2008. Accounts receivable increased to $9.06 million for the period ended June 30, 2009 compared to $4.79 million at year end 2008.
Total current assets and total assets were $19.77 million and $26.01 million on June 30, 2009. This compared to total current assets of $18.52 million and total assets of $23.51 million in the previous quarter.
Total current liabilities and total liabilities totaled $13.35 million and $14.20 million on June 30, 2009 compared to total current liabilities and total liabilities of $11.10 million and $11.98 million in the previous quarter.