Fuling Global Inc. Reports Third Quarter 2016 Financial Results
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E-mailALLENTOWN, Pa., Nov. 14, 2016 /PRNewswire/ -- Fuling Global Inc. (NASDAQ: FORK) ("Fuling Global" or the "Company"), an environmentally-friendly specialized producer and distributor of plastic serviceware, with precision manufacturing facilities in both the U.S. and China, today announced its financial results for the three and nine months ended September 30, 2016.
Mr. Xinfu Hu, Chief Executive Officer of Fuling Global, commented, "We are very pleased to report strong results for the third quarter as volume and revenues grew by 46.2% and 24.5%, respectively, and revenues was record high since our inception. As we continue to add new customers and gain share at some existing customers, we expect to continue to run our production at nearly full capacity in the near term to meet the growing demand for our products. With further growth increasingly hinging on capacity expansion, we expect Phase I of the new Wenling factory to be completed by the first quarter of 2017, which will double our overall annual production capacity from 40,000 tons to 80,000 tons over the next three years, and set us up for strong growth in 2017 and beyond."
Third Quarter of 2016 Financial Highlights
|
For the Three Months Ended September 30, | ||||||
|
($ millions, except per share data) |
2016 |
2015 |
% Change | |||
|
Revenues |
$27.9 |
$22.4 |
24.5% | |||
|
Gross profit |
$6.9 |
$6.2 |
10.9% | |||
|
Gross margin |
24.8% |
27.9% |
-3.1 pp | |||
|
Operating income |
$2.4 |
$2.7 |
-11.4% | |||
|
Operating margin |
8.6% |
12.1% |
-3.5 pp | |||
|
Net income attributable to Fuling Global |
$2.1 |
$2.7 |
-24.2% | |||
|
Diluted earnings per share |
$0.13 |
$0.23 |
-43.8% | |||
*Note: pp represents percentage points
- Revenues increased by 24.5% to $27.9 million for the three months ended September 30, 2016 from $22.4 million, for the same period of last year, mainly due to increase in overall sales volume and partially offset by decrease in blended average sales price ("ASP").
- Gross profit increased by 10.9% to $6.9 million for the three months ended September 30, 2016 from $6.2 million for the same period of last year. Gross margin decreased by 3.1 percentage points to 24.8% from 27.9% for the same period of last year.
- Net income attributable to Fuling Global decreased by 24.2% to $2.1 million, or $0.13 per basic and diluted share, for the three months ended September 30, 2016 from $2.7 million, or $0.23 per basic and diluted share, for the same period of last year. The decreases in net income and earnings per share were primarily due to the increase in general and administrative expenses that more than offset increase in revenues and gross profit.
- Total sales volume increased by 46.2% to 11,453 tons for the three months ended September 30, 2016 from 7,835 tons for the same period of last year. The increase in sales volume was across the board in all product categories with the strongest growth in cups and plates.
- Blended ASP decreased by 14.8% to $2.44 per kilogram for the three months ended September 30, 2016 from $2.86 per kilogram for the same period of last year. The decrease in blended ASP was in line with the decrease in crude oil prices.
Third Quarter 2016 Financial Results
Revenues
For the three months ended September 30, 2016, total revenues increased by $5.5 million, or 24.5%, to $27.9 million from $22.4 million for the same period of last year. Overall sales volume increased by 3,618 tons, or 46.2%, to 11,453 tons for the three months ended September 30, 2016 from 7,835 tons for the same period of last year. Blended ASP decreased by $0.42 per kilogram, or 14.8%, to $2.44 per kilogram for the three months ended September 30, 2016 from $2.86 per kilogram for the same period of last year.
Cutlery, straws, cups and plates, and other products accounted for 56.6%, 10.7%, 24.9%, and 7.8% of total revenues for the three months ended September 30, 2016, compared to 53.2%, 17.1%, 24.3%, and 5.4% for the same period of last year, respectively.
|
For the Three Months Ended September 30, | ||||||||||||||
|
2016 |
2015 |
Y/Y Change | ||||||||||||
|
Revenues($'000) |
% of Total |
Revenues($'000) |
% of Total |
Amount($'000) |
% | |||||||||
|
Cutlery |
$ |
15,793 |
56.6% |
$ |
11,920 |
53.2% |
$ |
3,873 |
32.5% | |||||
|
Straws |
2,980 |
10.7% |
3,839 |
17.1% |
(859) |
-22.4% | ||||||||
|
Cups and plates |
6,946 |
24.9% |
5,433 |
24.3% |
1,513 |
27.9% | ||||||||
|
Others |
2,181 |
7.8% |
1,217 |
5.4% |
964 |
79.2% | ||||||||
|
Total |
$ |
27,901 |
100.0% |
$ |
22,409 |
100.0% |
$ |
5,492 |
24.5% | |||||
On a geographical basis, sales in Fuling Global's largest market, the U.S., increased by $4.3 million, or 22.4%, to $23.6 million for the three months ended September 30, 2016 from $19.3 million for the same period of last year. Sales in Europe increased by $1.0 million, or 2,594.8%, to $1.1 million. Sales in China were $1.8 million for the three months ended September 30, 2016, compared to $0.13 million for the same period of last year. Sales in Canada were $0.7 million for the three months ended September 30, 2016, up 103.6% from the same period of last year.
|
For the Three Months Ended September 30, | ||||||||||||||
|
2016 |
2015 |
Y/Y Change | ||||||||||||
|
Revenues($'000) |
% of Total |
Revenues($'000) |
% of Total |
Amount($'000) |
% | |||||||||
|
U.S. |
$ |
23,567 |
84.5% |
$ |
19,258 |
85.9% |
$ |
4,309 |
22.4% | |||||
|
Europe |
1,078 |
3.9% |
40 |
0.2% |
1,038 |
2,594.8% | ||||||||
|
Canada |
663 |
2.4% |
326 |
1.4% |
337 |
103.6% | ||||||||
|
China |
1,800 |
6.5% |
128 |
0.6% |
1,672 |
1,309.7% | ||||||||
|
Others |
793 |
2.8% |
2,657 |
11.9% |
(1,864) |
-70.2% | ||||||||
|
Total |
$ |
27,901 |
100.0% |
$ |
22,409 |
100.0% |
$ |
5,492 |
24.5% | |||||
Gross profit
Total cost of goods sold increased by $4.8 million, or 29.8%, to $21.0 million for the three months ended September 30, 2016 from $16.2 million for the same period of last year. Gross profit increased by $0.7 million, or 10.9%, to $6.9 million for the three months ended September 30, 2016 from $6.2 million for the same period of last year. Gross margin was 24.8% for the three months ended September 30, 2016, compared to 27.9% for the same period of last year.
Operating income
Selling expenses were relatively flat at $1.7 million for the three months ended September 30, 2016 compared with the same period of last year. General and administrative expenses increased by $1.0 million, or 91.3%, to $2.1 million for the three months ended September 30, 2016 from $1.1 million for the same period of last year. The increase in general and administrative expenses were due to professional fees related to being a public company as well as increase in administrative expenses at our new Allentown facility. Research and development expenses decreased slightly by 1.2% to $0.6 million for the three months ended September 30, 2016 from $0.7 million for the same period of last year. As a result, total operating expenses increased by $1.0 million, or 28.0%, to $4.5 million for the three months ended September 30, 2016 from $3.5 million for the same period of last year.
Operating income decreased by $0.3 million, or 11.4%, to $2.4 million for the three months ended September 30, 2016 from $2.7 million for the same period of last year. Operating margin was 8.6% for the three months ended September 30, 2016, compared to 12.1% for the same period of last year.
Income before income taxes
After adjustment for interest income and expenses, subsidy income and other non-operating income and expenses, income before income taxes decreased by $0.8 million, or 25.4%, to $2.3 million for the three months ended September 30, 2016 from $3.1 million for the same period of last year. The decrease was primarily due to higher general and administrative expenses more than offsetting increases in revenues and gross profit.
Provision for income taxes was $0.3 million for the three months ended September 30, 2016, compared to $0.4 million for the same period of last year.
Net income
Net income decreased by $0.7 million, or 25.5%, to $2.0 million for the three months ended September 30, 2016 from $2.7 million for the same period of last year. After deduction of non-controlling interest, net income attributable to Fuling Global was $2.1 million, or $0.13 per basic and diluted share, for the three months ended September 30, 2016, compared to $2.7 million, or $0.23 per basic and diluted share, for the same period of last year.
Year-to-Date 2016 Financial Results
|
For the Nine Months Ended September 30, | ||||||
|
($ millions, except per share data) |
2016 |
2015 |
% Change | |||
|
Revenues |
$73.1 |
$68.2 |
7.2% | |||
|
Gross profit |
$19.5 |
$18.3 |
6.3% | |||
|
Gross margin |
26.6% |
26.9% |
-0.3 pp | |||
|
Operating income |
$7.2 |
$8.0 |
-10.2% | |||
|
Operating margin |
9.9% |
11.8% |
-1.9 pp | |||
|
Net income attributable to Fuling Global |
$7.5 |
$7.0 |
7.7% | |||
|
Diluted earnings per share |
$0.48 |
$0.60 |
-20.2% | |||
*Note: pp represents percentage points
Revenues
For the nine months ended September 30, 2016, total revenues increased by $4.9 million, or 7.2%, to $73.1 million from $68.2 million for the same period of last year. Overall sales volume increased by 6,029 tons, or 25.4%, to 29,791 tons for the nine months ended September 30, 2016 from 23,762 tons for the same period of last year. The increase in sales volume was across the board with cups and plates growing over 50%. Blended ASP decreased by $0.42 per kilogram, or 14.5%, to $2.45 per kilogram for the nine months ended September 30, 2016 from $2.87 per kilogram for the same period of last year. The decrease in ASP was across most of our product categories as a result of decline in crude oil prices.
Cutlery, straws, cups and plates, and other products accounted for 57.7%, 10.3%, 25.0%, and 7.0% of total revenues for the nine months ended September 30, 2016, compared to 57.7%, 13.6%, 24.3%, and 4.4% for the same period of last year, respectively.
|
For the Nine Months Ended September 30, | ||||||||||||||
|
2016 |
2015 |
Y/Y Change | ||||||||||||
|
Revenues($'000) |
% of Total |
Revenues($'000) |
% of Total |
Amount($'000) |
% | |||||||||
|
Cutlery |
$ |
42,184 |
57.7% |
$ |
39,355 |
57.7% |
$ |
2,829 |
7.2% | |||||
|
Straws |
7,503 |
10.3% |
9,280 |
13.6% |
(1,777) |
-19.1% | ||||||||
|
Cups and plates |
18,261 |
25.0% |
16,535 |
24.3% |
1,727 |
10.4% | ||||||||
|
Others |
5,125 |
7.0% |
2,985 |
4.4% |
2,140 |
71.7% | ||||||||
|
Total |
$ |
73,073 |
100.0% |
$ |
68,154 |
100.0% |
$ |
4,919 |
7.2% | |||||
On a geographical basis, sales in Fuling Global's largest market, the U.S., increased by $2.7 million, or 4.2%, to $65.6 million for the nine months ended September 30, 2016 from $62.9 million for the same period of last year. Sales in Europe increased by $1.6 million, or 161.6%, to $2.5 million. Sales in China were $2.6 million for the nine months ended September 30, 2016, compared to $0.4 million for the same period of last year. Sales in Canada were $1.2 million for the nine months ended September 30, 2016, up 45.5% from the same period of last year.
|
For the Nine Months Ended September 30, | ||||||||||||||
|
2016 |
2015 |
Y/Y Change | ||||||||||||
|
Revenues($'000) |
% of Total |
Revenues($'000) |
% of Total |
Amount($'000) |
% | |||||||||
|
U.S. |
$ |
65,571 |
89.7% |
$ |
62,916 |
92.3% |
$ |
2,655 |
4.2% | |||||
|
Europe |
2,528 |
3.5% |
966 |
1.4% |
1,561 |
161.6% | ||||||||
|
Canada |
1,156 |
1.6% |
795 |
1.2% |
362 |
45.5% | ||||||||
|
China |
2,578 |
3.5% |
442 |
0.6% |
2,136 |
482.6% | ||||||||
|
Others |
1,240 |
1.7% |
3,035 |
4.5% |
(1,795) |
-59.2% | ||||||||
|
Total |
$ |
73,073 |
100.0% |
$ |
68,154 |
100.0% |
$ |
4,919 |
7.2% | |||||
Gross profit
Total cost of goods sold increased by $3.8 million, or 7.6%, to $53.6 million for the nine months ended September 30, 2016 from $49.8 million for the same period of last year. Gross profit increased by $1.2 million, or 6.3%, to $19.5 million for the nine months ended September 30, 2016 from $18.3 million for the same period of last year. Gross margin was 26.6% for the nine months ended September 30, 2016, compared to 26.9% for the same period of last year.
Operating income
Selling expenses decreased by $0.1 million, or 1.6%, to $4.8 million for the nine months ended September 30, 2016 from $4.9 million for the same period of last year. The decrease in selling expenses was primarily due to decrease in ocean freight costs partially offset by increase in commissions. General and administrative expenses increased by $1.9 million, or 49.8%, to $5.7 million for the nine months ended September 30, 2016 from $3.8 million for the same period of last year. The increase in general and administrative expenses was due to professional fees related to being a public company as well as increase in administrative expenses at our Allentown facility. As we spent significant efforts and resources training new staff, testing machines, and streamlining production lines in the first nine months of this year, we expect more moderate increases in general and administrative expenses with increasing productivity and operating efficiency for the rest of this year. Research and development expenses increased by $0.1 million, or 9.7%, to $1.7 million for the nine months ended September 30, 2016 from $1.6 million for the same period of last year.
As a result, total operating expenses increased by $2.0 million, or 19.2%, to $12.2 million for the nine months ended September 30, 2016 from $10.3 million for the same period of last year.
Operating income decreased by $0.8 million, or 10.2%, to $7.2 million for the nine months ended September 30, 2016 from $8.0 million for the same period of last year. Operating margin was 9.9% for the nine months ended September 30, 2016, compared to 11.8% for the same period of last year.
Income before income taxes
After adjustment for interest income and expenses, subsidy income and other non-operating income and expenses, income before income taxes increased by $0.6 million, or 7.9%, to $8.8 million for the nine months ended September 30, 2016 from $8.2 million for the same period of last year. The increase was primarily due to higher subsidy income received from local government in the second quarter of this year partially offset by slightly lower operating income.
Provision for income taxes was $1.24 million for the nine months ended September 30, 2016, compared to $1.16 million for the same period of last year.
Net income
Net income increased by $0.6 million, or 8.0%, to $7.6 million for the nine months ended September 30, 2016 from $7.0 million for the same period of last year. This increase was primarily due to: 1) $1.7 million increase in subsidiary income; 2) $1.2 million increase in gross profit; and 3) partially offset by $2.0 million increase in operating expenses.
After deduction of non-controlling interest, net income attributable to Fuling Global increased by $0.5 million, or 7.7%, to $7.5 million for the nine months ended September 30, 2016 from $7.0 million for the same period of last year.
Basic and diluted earnings per share were $0.48 for the nine months ended September 30, 2016, compared to $0.60 for the same period of last year.
Financial Condition
As of September 30, 2016, the Company had cash and cash equivalents, restricted cash, and certificates of deposits of $2.3 million, $2.6 million, and $0.1 million, respectively, compared to $15.6 million, $2.1 million, and $3.2 million, respectively, at the end of 2015. Short-term borrowing and bank notes payable were $15.8 million and $3.1 million, respectively, as of September 30, 2016, compared to $15.3 million and $2.8 million, respectively, at the end of 2015.
Net cash provided by operating activities was $1.5 million for the nine months ended September 30, 2016, compared to $3.0 million for the same period of last year.
Net cash used in investing activities was $16.1 million for the nine months ended September 30, 2016, compared to $3.3 million for the same period of last year.
Net cash provided by financing activities was $1.5 million for the nine months ended September 30, 2016, compared to $1.5 million for the same period of last year.
Recent Update
On November 5, 2016, the Company held its 2016 annual meeting of shareholders (the "Annual Meeting") at the Company's Allentown facility at 6690 Grant Way, Allentown, PA 18106. At the Annual Meeting, the Company's shareholders 1) Elected five directors, Ms. Guilan Jiang, Ms. Sujuan Zhu, Mr. Jian Cao, Mr. Hong(Simon) He and Mr. Donald T. Cunningham, Jr., to serve on the Board of Directors of the Company until the 2017 annual meeting of stockholders; and 2) Ratified the appointment of Friedman LLP as the Company's independent registered public accounting firm for the fiscal year ending December 31, 2016.
About Fuling Global Inc.
Fuling Global Inc. ("Fuling Global") is an environmentally-friendly specialized producer and distributor of plastic servicewares, with precision manufacturing facilities in both the U.S. and China. The Company's plastic serviceware products include disposable cutlery, drinking straws, cups, plates and other plastic products and are used by more than one hundred customers primarily from the U.S. and Europe, including Subway, Wendy's, Burger King, KFC (China only), Walmart, McKesson, and Woolworths. More information about the Company can be found at: http://ir.fulingglobal.com/.
Forward-Looking Statements
This press release contains information about Fuling Global's view of its future expectations, plans and prospects that constitute forward-looking statements. Actual results may differ materially from historical results or those indicated by these forward-looking statements as a result of a variety of factors including, but not limited to, risks and uncertainties associated with its application of IPO proceeds, its ability to raise additional funding, its ability to maintain and grow its business, variability of operating results, its ability to maintain and enhance its brand, its development and introduction of new products and services, the successful integration of acquired companies, technologies and assets into its portfolio of software and services, marketing and other business development initiatives, competition in the industry, general government regulation, economic conditions, dependence on key personnel, the ability to attract, hire and retain personnel who possess the technical skills and experience necessary to meet the requirements of its clients, and its ability to protect its intellectual property. Fuling Global encourages you to review other factors that may affect its future results in Fuling Global's registration statement and in its other filings with the Securities and Exchange Commission.
For more information, please contact:
Investor Relations: Tina Xiao Weitian Group LLCEmail: [email protected]Phone: +1-917-609-0333
At the Company: Gilbert Lee, CFOEmail: [email protected]Phone: +1-610-366-8070x1835Web: http://ir.fulingglobal.com/
|
FULING GLOBAL INC. AND SUBSIDIARIES | |||||
|
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||
|
(UNAUDITED) | |||||
|
September 30, |
December 31, | ||||
|
2016 |
2015 | ||||
|
ASSETS | |||||
|
Current Assets: |
|||||
|
Cash and cash equivalents |
$ |
2,254,051 |
$ |
15,573,554 | |
|
Restricted cash |
2,581,118 |
2,129,162 | |||
|
Certificates of deposit |
102,902 |
3,186,892 | |||
|
Accounts receivable, net |
16,875,831 |
14,725,030 | |||
|
Advances to supplier, net |
729,040 |
312,328 | |||
|
Inventories, net |
16,051,742 |
13,493,685 | |||
|
Prepaid expenses and other current assets |
3,065,000 |
425,477 | |||
|
Total Current Assets |
41,659,684 |
49,846,128 | |||
|
Property, plant and equipment, net |
29,956,045 |
21,556,866 | |||
|
Intangible assets, net |
9,885,970 |
1,778,264 | |||
|
Prepayments for construction and equipment purchase |
3,451,507 |
2,003,400 | |||
|
Other non-current assets |
166,239 |
225,500 | |||
|
Deferred tax assets |
467,177 |
319,252 | |||
|
Total Assets |
$ |
85,586,622 |
$ |
75,729,410 | |
|
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
|
Current Liabilities: |
|||||
|
Short term borrowings |
$ |
15,783,833 |
$ |
15,264,827 | |
|
Bank notes payable |
3,148,595 |
2,839,783 | |||
|
Advances from customers |
658,849 |
597,226 | |||
|
Accounts payable |
12,503,674 |
10,972,851 | |||
|
Accrued and other liabilities |
2,136,670 |
1,808,135 | |||
|
Taxes payable |
383,406 |
743,147 | |||
|
Loan from third parties |
- |
184,851 | |||
|
Total Current Liabilities |
34,615,027 |
32,410,820 | |||
|
Long term borrowing |
843,715 |
- | |||
|
Total Liabilities |
35,458,742 |
32,410,820 | |||
|
Commitments and contingencies |
|||||
|
Shareholders' Equity |
|||||
|
Common stock: $0.001 par value, 70,000,000 shares authorized,15,732,795 shares issued and outstanding as of September 30, 2016 and December 31, 2015 |
15,733 |
15,733 | |||
|
Additional paid in capital |
29,825,878 |
29,722,127 | |||
|
Statutory reserve |
3,748,541 |
2,868,844 | |||
|
Retained earnings |
16,795,586 |
10,182,213 | |||
|
Accumulated other comprehensive income (loss) |
(460,764) |
392,450 | |||
|
Total Fuling Global Inc.'s equity |
49,924,974 |
43,181,367 | |||
|
Noncontrolling interest |
202,906 |
137,223 | |||
|
Total Shareholders' Equity |
50,127,880 |
43,318,590 | |||
|
Total Liabilities and Shareholders' Equity |
$ |
85,586,622 |
$ |
75,729,410 | |
|
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. | |||||
|
FULING GLOBAL INC. AND SUBSIDIARIES | |||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME | |||||||||
|
(UNAUDITED) | |||||||||
|
For the Three Months Ended September 30, |
For the Nine Months Ended September 30, | ||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||
|
Revenues |
$ |
27,900,613 |
$ |
22,408,759 |
$ |
73,072,804 |
$ |
68,154,114 | |
|
Cost of goods sold |
20,976,558 |
16,164,344 |
53,611,804 |
49,843,677 | |||||
|
Gross Profit |
6,924,055 |
6,244,415 |
19,461,000 |
18,310,437 | |||||
|
24.8% |
27.9% |
26.6% |
26.9% | ||||||
|
Operating Expenses |
|||||||||
|
Selling expenses |
1,728,965 |
1,754,821 |
4,812,765 |
4,891,326 | |||||
|
General and administrative expenses |
2,143,300 |
1,120,577 |
5,692,015 |
3,798,716 | |||||
|
Research and development expenses |
642,606 |
650,570 |
1,736,919 |
1,583,449 | |||||
|
Total operating expenses |
4,514,871 |
3,525,968 |
12,241,699 |
10,273,491 | |||||
|
Income from Operations |
2,409,184 |
2,718,447 |
7,219,301 |
8,036,946 | |||||
|
8.63% |
12.13% |
9.9% |
11.8% | ||||||
|
Other Income (Expense): |
|||||||||
|
Interest income |
7,507 |
30,337 |
25,086 |
49,298 | |||||
|
Interest expense |
(187,503) |
(268,890) |
(615,878) |
(906,794) | |||||
|
Subsidy income |
196,447 |
213,357 |
2,054,436 |
367,779 | |||||
|
Foreign currency transaction gain (loss) |
(287,642) |
459,360 |
134,885 |
754,923 | |||||
|
Other expense, net |
171,055 |
(56,427) |
(21,940) |
(147,232) | |||||
|
Total other income (expense), net |
(100,136) |
377,737 |
1,576,589 |
117,974 | |||||
|
Income Before Income Taxes |
2,309,048 |
3,096,184 |
8,795,890 |
8,154,920 | |||||
|
Provision for Income Taxes |
308,594 |
410,456 |
1,237,137 |
1,155,524 | |||||
|
Net Income |
$ |
2,000,454 |
$ |
2,685,728 |
$ |
7,558,753 |
$ |
6,999,396 | |
|
Less: net income (loss) attributable to noncontrolling interest |
(70,153) |
(44,826) |
65,683 |
40,612 | |||||
|
Net income attributable to Fuling Global Inc. |
2,070,607 |
2,730,554 |
7,493,070 |
6,958,784 | |||||
|
Other Comprehensive Income |
|||||||||
|
Foreign currency translation loss |
(271,722) |
(782,876) |
(853,214) |
(782,078) | |||||
|
Comprehensive income attributable to Fuling Global Inc. |
$ |
1,798,885 |
$ |
1,947,678 |
$ |
6,639,856 |
$ |
6,176,706 | |
|
Earnings per share |
|||||||||
|
Basic and diluted |
$ |
0.13 |
$ |
0.23 |
$ |
0.48 |
$ |
0.60 | |
|
Weighted average number of shares |
|||||||||
|
Basic and diluted |
15,732,795 |
11,666,667 |
15,732,795 |
11,666,667 | |||||
|
Cash dividends per share |
|||||||||
|
Basic and diluted |
$ |
- |
$ |
- |
$ |
- |
$ |
- | |
|
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. | |||||||||
|
FULING GLOBAL INC. AND SUBSIDIARIES | |||||
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||
|
(UNAUDITED) | |||||
|
For the Nine Months Ended September 30, | |||||
|
2016 |
2015 | ||||
|
CASH FLOWS FROM OPERATING ACTIVITIES |
|||||
|
Net income |
$ |
7,558,753 |
$ |
6,999,396 | |
|
Adjustments to reconcile net income to net cash |
|||||
|
provided by operating activities: |
|||||
|
Stock based compensation |
103,752 |
- | |||
|
Deferred tax benefit |
(147,925) |
- | |||
|
Depreciation and amortization |
2,025,892 |
1,650,944 | |||
|
Bad debt provisions |
93,672 |
57,193 | |||
|
Inventory reserve |
38,592 |
- | |||
|
Gain on disposal of fixed assets |
(12,811) |
- | |||
|
Changes in operating assets: |
|||||
|
Accounts receivable |
(2,390,053) |
778,619 | |||
|
Advances to suppliers |
(2,051,239) |
(1,101,282) | |||
|
Inventories |
(2,755,941) |
(714,486) | |||
|
Other assets |
(2,667,035) |
543,807 | |||
|
Changes in operating liabilities: |
|||||
|
Accounts payable |
1,633,617 |
(4,967,288) | |||
|
Advance from customers |
76,931 |
(85,926) | |||
|
Taxes payable |
(345,894) |
42,374 | |||
|
Accrued and other liabilities |
329,547 |
(250,549) | |||
|
Net cash (used in) provided by operating activities |
1,489,859 |
2,952,802 | |||
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|||||
|
Purchase of property and equipment |
(3,115,264) |
(2,002,241) | |||
|
Payments of construction in progress |
(6,113,768) |
- | |||
|
Cash receipts from disposal property and equipment |
19,483 |
- | |||
|
Cash receipts from certificates of deposit |
3,039,711 |
- | |||
|
Prepayments for construction and equipment purchase |
(1,518,656) |
(1,049,349) | |||
|
Purchase of intangible assets |
(8,378,405) |
(266,947) | |||
|
Net cash used in investing activities |
(16,066,898) |
(3,318,537) | |||
|
CASH FLOWS FROM FINANCING ACTIVITIES |
|||||
|
Proceeds from short-term borrowings |
20,633,979 |
36,160,712 | |||
|
Repayments of short-term borrowings |
(19,695,027) |
(35,409,841) | |||
|
Proceeds from long-term borrowings |
843,715 |
- | |||
|
Proceeds from bank notes payable |
4,839,723 |
4,084,697 | |||
|
Repayments of bank notes payable |
(4,449,644) |
(4,714,801) | |||
|
Repayment of third party borrowing |
(182,365) |
- | |||
|
Repayments of loans from related parties |
- |
(38,102) | |||
|
Change of restricted cash |
(515,902) |
1,393,471 | |||
|
Net cash provided by financing activities |
1,474,479 |
1,476,136 | |||
|
EFFECT OF EXCHANGE RATES CHANGES ON CASH |
(216,942) |
(100,598) | |||
|
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS |
(13,319,503) |
1,009,803 | |||
|
CASH AND CASH EQUIVALENTS, BEGINNING OF THE PERIOD |
15,573,554 |
1,399,714 | |||
|
CASH AND CASH EQUIVALENTS, ENDING OF THE PERIOD |
$ |
2,254,051 |
$ |
2,409,517 | |
|
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: |
|||||
|
Cash paid during the period for: |
|||||
|
Interest paid |
$ |
579,693 |
$ |
967,248 | |
|
Income tax paid |
$ |
1,693,233 |
$ |
1,168,820 | |
|
Non-cash investing activities: |
|||||
|
Transfer from construction in progress to fixed assets |
$ |
876,753 |
$ |
1,129,339 | |
|
Transfer from advance payments to fixed assets |
$ |
1,581,582 |
$ |
918,858 | |
|
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. | |||||
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/fuling-global-inc-reports-third-quarter-2016-financial-results-300362351.html
SOURCE Fuling Global Inc.
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