BEIJING, March 31, 2014 (GLOBE NEWSWIRE) -- Andatee China Marine Fuel Services Corporation (Nasdaq:AMCF), a leading independent operator engaged in the production, storage, distribution, trading of blended marine fuel oil for cargo and fishing vessels in China, today announced its financial results for the fourth quarter and fiscal year 2013.
Fiscal Year 2013 Financial Highlights
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Total sales in 2013 increased by 19.42% to $273.3 million from $228.8 million in 2012
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Gross profit in 2013 increased by 12.8% to $16.1 million from $14.3 million in 2012. Gross margin remained virtually unchanged at 5.9% and 6.2% in 2013 and 2012, respectively
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Income from operations in 2013 was $6.55 million as compared to $7.28 million in 2012
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Net loss was $1.01 million mainly due to a goodwill impairment of $1.2 million, as compared to net profit of $1.64 million in 2012
Mr. Wang Hao, Chairman and Chief Executive Officer of Andatee China Marine Fuel Services Corporation, commented, "In fiscal year 2013, despite the weakness in global economy, we were able to accomplish a nearly 20% top line growth in the marine fuel supplying market by expanding our distribution network, increasing our share of retail sales and adding more products offerings. The Company continues to maintain its position as a leading marine fuel supplier along the coast of East China. Our net loss was mainly the result of increased general and administrative expense, goodwill impairment loss and increased income tax expense, among which the goodwill impairment accounted for $1,234,709."
"Going forward, we expect to grow our business for higher revenue growth as well as higher profitability. In the meantime, we intend to begin implementing various cost control measures in our existing business lines with the aim of improving our margins and achieving profitability in 2014 and beyond."
About Andatee China Marine Fuel Services Corporation, Inc.
Andatee China Marine Fuel Services Corporation, through its subsidiaries, engages in the production, storage, distribution, and trading of blended marine fuel oil for cargo and fishing vessels in the People's Republic of China. It also produces customer specific products using its proprietary blending technology. The company sells its products through distributors to retail customers in Tianjin City, Liaoning, Shandong, Jiangsu, and Zhejiang Provinces. Andatee China Marine Fuel Services Corporation is based in Dalian, the People's Republic of China.
Safe Harbor Statement
This press release contains certain statements that may include "forward-looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. These forward-looking statements are based upon our current expectations and projections about future events and generally relate to our plans, objectives and expectations for the development of our business. Although management believes that the plans and objectives reflected in or suggested by these forward-looking statements are reasonable, all forward-looking statements involve risks and uncertainties and actual future results may be materially different from the plans, objectives and expectations expressed in this press release. Accordingly, investors should not place any reliance on forward-looking statements as a prediction of actual results. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the risk factors discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on the SEC's website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these risk factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
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ANDATEE CHINA MARINE FUEL SERVICES CORPORATION. AND SUBSIDIARIES |
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CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) |
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For the years ended December 31, |
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2013 |
2012 |
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Revenues |
$273,260,811 |
$228,813,813 |
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Cost of revenues |
257,129,767 |
214,517,593 |
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Gross profit |
16,131,044 |
14,296,220 |
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Operating expenses |
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Selling expenses |
1,081,253 |
1,341,203 |
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General and administrative expenses |
7,267,742 |
5,670,875 |
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Goodwill impairment loss |
1,234,709 |
-- |
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Total operating expenses |
9,583,704 |
7,012,078 |
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Income from operations |
6,547,340 |
7,284,142 |
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Other income (expense) |
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Interest income |
227,174 |
464,478 |
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Interest expense |
-5,442,725 |
-5,942,231 |
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Income from equity investment |
41,639 |
-- |
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Change in fair value of warrants |
-187,851 |
-- |
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Other income (expense) |
-136,960 |
306,714 |
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Total other expense |
-5,498,723 |
-5,171,039 |
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Income before income tax provision |
1,048,617 |
2,113,103 |
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Provision for income taxes |
2,269,865 |
703,138 |
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Net income (loss) |
-1,221,248 |
1,409,965 |
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Less: net loss attributable to noncontrolling interest |
-209,181 |
-233,731 |
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Net income (loss) attributable to Andatee China Marine Fuel Services Corporation |
$ (1,012,067) |
$1,643,696 |
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Comprehensive income (loss) |
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Net income (loss) |
-1,221,248 |
1,409,965 |
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Foreign currency translation adjustment |
2,000,126 |
447,735 |
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Comprehensive income |
778,878 |
1,857,700 |
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Less: comprehensive loss attributable to non-controlling interest |
264,703 |
209,142 |
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Comprehensive income attributable to Andatee China Marine Fuel Services Corporation |
1,043,581 |
2,066,842 |
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Weighted average number of shares: |
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Basic |
9,857,086 |
9,610,159 |
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Diluted |
9,870,430 |
9,610,159 |
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Earnings (loss) per share: |
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Basic |
$ (0.10) |
$0.17 |
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Diluted |
$ (0.10) |
$0.17 |
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ANDATEE CHINA MARINE FUEL SERVICES CORPORATION. AND SUBSIDIARIES |
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CONSOLIDATED BALANCE SHEETS |
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As of December 31, |
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2013 |
2012 |
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ASSETS |
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Current assets |
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Cash and cash equivalents |
$22,638,820 |
$1,625,705 |
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Restricted cash |
99,659,597 |
9,173,002 |
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Accounts receivable, net |
45,818,721 |
18,220,089 |
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Inventories, net |
3,893,530 |
9,302,913 |
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Advances to suppliers, net |
25,930,533 |
16,387,613 |
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Deposits for land use rights |
720,084 |
698,291 |
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Deferred financing costs, net |
4,373,603 |
129,555 |
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Other current assets |
517,320 |
428,950 |
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Deferred tax assets |
-- |
840,540 |
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Total current assets |
203,552,208 |
56,806,658 |
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Property, plant and equipment, net |
54,292,903 |
40,880,091 |
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Construction in progress |
17,781,162 |
12,860,195 |
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Intangible assets, net |
16,289,315 |
8,953,602 |
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Equity investment |
1,351,428 |
-- |
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Goodwill |
-- |
1,213,036 |
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Total assets |
$293,267,016 |
$120,713,582 |
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LIABILITIES AND EQUITY |
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Current liabilities |
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Short-term bank borrowings |
$27,821,419 |
$9,314,247 |
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Bank note payable |
191,257,528 |
19,679,104 |
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Accounts payable and accrued liabilities |
3,156,079 |
8,367,697 |
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Advances from customers |
1,693,875 |
8,472,233 |
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Loan from third parties |
98,193 |
9,413,436 |
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Related party loans payable |
1,595,594 |
509,255 |
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Taxes payable |
6,254,057 |
2,719,517 |
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Other liabilities |
1,149,298 |
1,777,089 |
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Total current liabilities |
233,026,043 |
60,252,578 |
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Warrant liability |
290,687 |
-- |
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Total liabilities |
233,316,730 |
60,252,578 |
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Commitments and contingencies |
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Equity |
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Common stock, $0.001 par value; 50,000,000 shares authorized; 10,255,813 and 9,610,159 shares issued; 10,164,621 and 9,518,967 shares outstanding |
10,256 |
9,610 |
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Treasury stock, at cost; 91,192 shares |
(497,693) |
-497,693 |
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Additional paid-in capital |
29,998,994 |
29,888,556 |
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Accumulated other comprehensive income |
6,206,460 |
4,273,238 |
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Retained earnings |
17,990,881 |
19,513,573 |
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Statutory reserve |
3,932,585 |
3,421,960 |
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Total stockholders' equity of the Company |
57,641,483 |
56,609,244 |
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Noncontrolling interest |
2,308,803 |
3,851,760 |
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Total equity |
59,950,286 |
60,461,004 |
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Total liabilities and equity |
$293,267,016 |
$120,713,582 |
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ANDATEE CHINA MARINE FUEL SERVICES CORPORATION. AND SUBSIDIARIES |
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CONSOLIDATED STATEMENTS OF CASH FLOWS |
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For the years ended December 31, |
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2013 |
2012 |
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Cash flows from operating activities |
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Net (loss) income |
$ (1,221,248) |
$1,409,965 |
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Adjustments to reconcile net income(loss) to net cash |
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used in operating activities: |
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Depreciation |
2,122,918 |
1,826,803 |
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Amortization |
476,809 |
483,205 |
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Bad debt provision |
522,040 |
543,798 |
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Change in inventory reserve |
-30,240 |
46,731 |
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Deferred tax provision (benefit) |
855,557 |
-754,722 |
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Amortization of stock-based compensation to consulting firm |
425,000 |
-- |
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Amortization of stock-based compensation to directors |
102,376 |
-- |
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Income from equity investment |
-41,639 |
-- |
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Goodwill impairment |
1,234,709 |
-- |
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Change in fair value of warrants |
187,851 |
-- |
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Changes in operating assets and liabilities: |
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Accounts receivable |
-27,083,195 |
1,610,536 |
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Inventories |
5,656,209 |
7,546,758 |
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Advances to suppliers |
-9,075,970 |
-307,837 |
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Other current assets |
221,303 |
3,906,267 |
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Accounts payable and accrued liabilities |
-6,578,103 |
-9,338,416 |
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Advances from customers |
-6,951,641 |
-4,946,044 |
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Taxes payable |
3,405,030 |
-1,022,057 |
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Other liabilities |
212,845 |
-1,572,386 |
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Net cash used in operating activities |
-35,559,389 |
-567,399 |
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Cash flows from investing activities |
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Acquisition of equity method investee |
-1,292,303 |
-- |
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Additions to construction in progress and property and equipment |
-18,563,989 |
-859,163 |
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Addition to intangible assets |
-8,623,375 |
-1,722,815 |
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Proceeds from termination of land use right |
-- |
1,290,662 |
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Proceeds from termination of leasehold right |
1,373,072 |
-- |
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Acquisition of non-controlling interest |
-1,728,455 |
-- |
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Notes receivable |
-- |
1,332,614 |
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Net cash (used in) provided by investing activities |
-28,835,050 |
41,298 |
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Cash flows from financing activities |
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Proceeds from short-term loans |
33,842,178 |
35,079,384 |
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Repayments of short-term loans |
-15,861,401 |
-30,051,938 |
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Proceeds from bank notes |
281,182,457 |
96,773,170 |
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Repayments of bank notes |
-112,430,337 |
-122,632,230 |
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Restricted cash, net |
-89,033,196 |
13,556,969 |
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Deferred financing costs |
-4,185,143 |
-129,508 |
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(Repayment) proceeds of loan from unrelated parties |
-9,484,694 |
7,823,556 |
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Proceeds (repayment) of loans from related parties |
1,055,754 |
-1,795,160 |
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Net cash provided by (used in) financing activities |
85,085,618 |
-1,375,757 |
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Effect of exchange rate changes on cash and cash equivalents |
321,936 |
34,548 |
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Net increase (decrease) in cash and cash equivalents |
21,013,115 |
-1,867,310 |
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Cash and cash equivalents, beginning of year |
$1,625,705 |
$3,493,015 |
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Cash and cash equivalents, end of year |
$22,638,820 |
$1,625,705 |
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Supplemental cash flow information |
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Interest paid |
$9,750,500 |
$5,063,860 |
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Income taxes paid |
$678,374 |
$2,323,632 |
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Transfer from construction-in-progress to fixed assets |
$12,413,981 |
$ -- |
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Capitalized interest expense |
$655,438 |
$ -- |
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CONTACT: Thomas Yang
Andatee Marine Fuel Services Corporation Limited
Unit C, No. 68 West Binhai Road,
Xigang District, Dalian Liaoning, China (map)
Phone: 011-86411-8240-8219
Facsimile: 011-86411-8368-8835
Website: www.andatee.com
