NEWS RELEASE PAGE
Headline: Zongshen PEM Power Systems Inc. Announces First Quarter 2009 Financial Results
Symbol: ZPP
TSX:ZPP
- Revenues increase 19 percent to $7.7 million
- Net income amounts to $142,632 despite weak economy
- Balance sheet remains robust with $41.6 million in cash and no debt
VANCOUVER, May 14 /CNW/ - Zongshen PEM Power Systems Inc. ("ZPP" or "the Company") (TSX:ZPP), today announced its financial results for the three-month period ended March 31, 2009. All currency amounts referred to in this news release are in Canadian dollars unless stated otherwise.
For the three-month period ended March 31, 2009 the Company reported revenues of $7.7 million versus $6.5 million in the corresponding quarter last year. Volume sales during the first quarter of 2009 totalled 21,120 units, compared with 23,413 units in the first quarter of 2008. Net income during the quarter amounted to $142,632 or $0.00 per share, versus a net loss of $124,378 or $(0.00) per share for the first quarter of 2008. Net income during the three-month period was inclusive of $113,489 costs associated with stock-based compensation, and $227,497 in interest income generated on the Company's strong cash balance. The first quarter represents the seasonally weakest quarter due to the effect of the Chinese New Year and consumer purchasing patterns
At March 31, 2009, the Company was debt free with cash and cash equivalents amounting to $41.6 million, compared to $33.3 million at December 31, 2008. The Company's strong balance sheet enables ZPP to weather the current economic downturn while having the ability to explore and complete select partnerships and acquisitions.
"As anticipated, we continued to see overall weakness, particularly in export markets, due to the global economic environment during the first quarter," noted Zongshen Zuo, Chairman and CEO of Zongshen PEM Power Systems Inc. "We are seeing demand beginning to stabilize and could see a return in consumer spending habits in the second half of 2009. The management team and Board of Directors are assessing a number of investment opportunities with a focus on accretive, complementary business in the two wheel and three wheel gas and electric vehicle business."
ZPP continues to expect 2009 to be a challenging year for the organic growth of its e-bike and small gas bike businesses. However, the Company is well positioned to advance its growth strategy with a solid foundation in e-bikes and small gas bikes, a strong balance sheet, a large market for its products and a major shareholder and partner with assets and resources that can be leveraged to gain competitive advantages. The Company is reviewing strategic growth opportunities through partnerships and acquisitions, which would complement its existing business.
The Company will host a conference call on Friday, May 15, 2009 at 11:00 a.m., Eastern Standard Time (EST) to further discuss the first quarter 2009 financial and operational results.
Dial in information is as follows:
Dial in number: 1-888-710-4011 (North America) or 1-913-312-0639 (International)
Taped Replay: 1-888-203-1112 (North America) or 1-719-457-0820 (International)
Taped Replay Pass Code: 5042919 (Available till May 29, 11:59 p.m. EST)
Live Webcast Link: www.zongshenpem.com