NEW YORK, April 30 /PRNewswire-FirstCall/ -- Tongxin International Ltd. , the largest independent supplier of Engineered Vehicle Body Structures ("EVBS") in China, today announced selected financial results for the Year ended December 31 of 2007.
Fiscal Year 2007 Highlights:
-- Record consolidated revenue of US$ 89.9 million, an increase of 34.9%
year-over-year.
-- Record EBITDA of US$16.8 million, and increase of 33.3% compare to
2006.
-- Record net income of US$ 10.0 million, an increase of 62.4%
year-over-year.
-- Adjusted net income of $10,524,000 (one-time transaction fee of US
$524,000, which is incurred for legal, audit professional fees. It has
been included in selling, general and administrative expenses).
"We are very pleased to report record growth for the 2007 calendar year as we continue to participate in the rapidly expanding vehicle market in China. Sales revenue for the calendar year grew by $23.3 million, a 34.9% increase from the same period of 2006. This increase in revenue was driven by increased sales to our existing customers as well as bringing on line new customers with new products. In addition, we continue to see increased value added in our product mix with more customers requesting completed cabs," stated Mr. William R. Herren, Chairman and CEO of Tongxin International Ltd.
As of the close of the deal 12,880,250 shares were outstanding.
Summary of Selected Financial Results for Fiscal Year 2007
(All numbers in US$ thousands)
2007 2006 Change (%)
Consolidated Revenue $89,873 $66,605 34.9 %
Cost of Goods Sold $69,865 $51,456 35.8 %
Gross Profit $20,008 $15,149 32.1 %
Total Operating Expenses $5,372 $4,800 11.9 %
Income from Operations $14,636 $10,349 41.4 %
Net Income $10,019 $6,169 62.4 %
Depreciation/Amortization $2,122 2,220 (4.4) %
About Tongxin International Ltd.
Tongxin International Ltd., is the largest independent supplier of Engineered vehicle Body Structures ("EVBS") in China, capable of providing products for both light, medium-sized and heavy-duty and van in addition to designing, fabricating and testing dies used to stamp automotive body panels. EVBS consists of exterior body panels including doors, floor pans, hoods, side panels, fenders. Tongxin International also manufactures complete cab structures for commercial vehicles. Tongxin International's components must meet exacting dimensions for fit and finish before they are assembled and finally painted. These capabilities enable it to participate effectively in all sectors of the automotive market including light and commercial vehicles.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, about Hunan Tongxin, Tongxin International and their combined business and revenue expectations after completion of the proposed merger. Forward-looking statements are statements that are not historical facts. Such forward-looking statements, based upon the current beliefs and expectations of Hunan Tongxin's management, are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: business conditions in China; continued compliance with government regulations; legislation or regulatory environments, requirements or changes adversely affecting the businesses in which Hunan Tongxin is engaged; cessation or changes in government incentive programs: potential trade barriers affecting international expansion; fluctuations in customer demand; management of rapid growth and transitions to new markets; intensity of competition from or introduction of new and superior products by other providers of distributed automotive engineered vehicle body structures; timing, approval and market acceptance of new product introductions; general economic conditions; geopolitical events and regulatory changes, as well as other relevant risks detailed in Tongxin International's filings with the Securities and Exchange Commission, and the Preliminary Proxy Statement/Prospectus (Reg. No. 333-147086-01). The information set forth herein should be read in light of such risks. Neither Tongxin International or Hunan Tongxin assumes any obligation to update the information noted within in this press release.
For further information, please contact:
Mr. William R. Herren
Chairman and CEO
Mr. Rudy Wilson
COO
Tel: 1-248-593-8330