CHINA RUITAI INTERNATIONAL HOLDINGS CO., LTD.

CIK:0000076348|SEC Filings

EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2011

21.	EARNINGS PER SHARE

	Three Months Ended September 30,
	2011		2010
	(unaudited)		(unaudited)
Numerator used in basic net income per share:
Net income attributable to China Ruitai Shares	$	1,105,967	$	1,880,515
Weighted average common shares outstanding		26,000,000		26,000,000
Weighted average common shares outstanding used in computing diluted earnings per ordinary share		26,000,000		26,000,000

Earnings per common share-basic and diluted	$	0.04	$	0.07

	Nine Months Ended September 30,
	2011		2010
	(unaudited)		(unaudited)
Numerator used in basic net income per share:
Net income attributable to China Ruitai Shares	$	3,211,729	$	5,236,962
Weighted average common shares outstanding		26,000,000		26,000,000
Weighted average common shares outstanding used in computing diluted earnings per ordinary share		26,000,000		26,000,000

Earnings per common share-basic and diluted	$	0.12	$	0.20

As of September 30, 2011 and 2010, the Company had 470,000 outstanding warrants that could potentially dilute basic income per share in the future, but which were excluded in the computation of diluted income per share in the periods presented, as their effect would have been anti-dilutive since the exercise price of these warrants was higher than the average market price during the period presented.

Consolidated Statements of Cash Flows (USD $)	9 Months Ended
Consolidated Statements of Cash Flows (USD $)	Sep. 30, 2011	Sep. 30, 2010
Cash flows from operating activities:
Net income before allocation to non-controlling interests	$ 3,244,545	$ 5,289,658
Adjustments to reconcile net income before non-controlling interests to net cash used in operation activities
Depreciation	1,872,051	1,777,706
Amortization of land use rights	83,686	84,395
Bad debt provision	1,316,363	(239,125)
Loss on disposal of equipment	3,518	0
Stock based compensation	37,024	0
Changes in operating assets and liabilities:
Restricted cash	(14,448,202)	16,769,400
Accounts receivable	(4,712,792)	(3,659,692)
Notes receivable	(254,330)	5,696,019
Advances to suppliers	(2,250,276)	461,144
Inventories	(1,534,086)	757,691
Other receivables	(4,197,290)	(1,127,529)
Accounts payable	(763,410)	1,081,040
Notes payable	(11,066,708)	(25,007,000)
Other payables	(629,316)	1,212,374
Advances from customers	417,447	1,198,451
Income taxes payable	(3,168,666)	953,241
Net cash (used in)/provided by operating activities	(36,050,442)	5,247,773
Cash flows from investing activities:
Advanced payment to purchase equipment	(1,018,803)	(1,593,008)
Purchase of property and equipment	91,364	0
Net cash used in investing activities	(927,439)	(1,593,008)
Cash flows from financing activities:
Proceeds from bank loans	33,190,901	37,648,774
Repayment of bank loans	(34,727,943)	(25,880,774)
Proceeds from loan from a related party	31,048,263	0
Repayment of loan from a related party	(12,014,621)	(4,046,323)
Repayment of loan from employee	499,331	28,215
Net cash provided by financing activities	17,995,931	7,749,892
Effect of foreign exchange rate fluctuation on cash and cash equivalents	511,660	439,890
Net (decrease) increase in cash and cash equivalents	(18,470,290)	11,404,657
Cash and cash equivalents- beginning of period	25,286,619	10,174,528
Cash and cash equivalents-end of period	6,816,329	22,019,075
Supplementary disclosure of cash flow information:
Cash paid for interest expense	2,289,361	1,665,194
Cash paid for income tax	$ 4,397,898	$ 803,069

Consolidated Balance Sheets (USD $)	Sep. 30, 2011	Dec. 31, 2010
ASSETS
Cash and cash equivalents	$ 6,816,329	$ 25,286,619
Restricted cash	25,274,142	10,254,394
Accounts receivable, net	9,699,960	4,896,665
Notes receivable	3,084,732	2,736,496
Advances to suppliers, net	2,270,509	1,171,477
Inventories	11,337,856	9,468,211
Other receivables, net	5,210,959	1,023,337
Due from related party	9,600,829	0
Total current assets	73,295,316	54,837,199
Property and equipment, net	14,287,803	14,014,923
Commercial leasing assets, net	37,612,060	37,079,584
Advance payment for equipment purchase	54,049	0
Land use rights, net	5,126,356	5,045,883
TOTAL ASSETS	130,375,584	110,977,589
LIABILITIES AND EQUITY
Short-term bank loans	37,480,084	42,339,454
Long-term loan, current portion	1,171,546	0
Accounts payable	7,167,471	7,691,017
Notes payable	4,373,770	15,124,474
Notes payable- related party	34,677,747	3,024,895
Advances from customers	1,134,199	687,408
Due to related party	0	2,526,474
Income tax payable	1,258,466	4,336,457
Other payables	3,360,023	3,872,549
Loan from employees	2,025,823	1,470,138
Total current liabilities	92,649,129	81,072,866
Long-term loan	3,514,636	0
Total Liabilities	96,163,765	81,072,866
Commitments and contingencies
Equity
Common stock ($.001 par value; 50,000,000 shares authorized authorized shares issued and outstanding 26,000,000 as of September 30, 2011 and December 31, 2010	26,000	26,000
Additional paid-in capital	2,945,195	2,908,171
Statutory reserve	1,369,652	1,369,652
Retained earnings	26,255,116	23,043,387
Accumulated other comprehensive income	3,278,887	2,264,049
Total China Ruitai Shareholders' Equity	33,874,850	29,611,259
Non-controlling interest	336,969	293,464
Total Equity	34,211,819	29,904,723
TOTAL LIABILITIES AND EQUITY	$ 130,375,584	$ 110,977,589