China Industrial Waste Management Inc.

CIK:0000763846|SEC Filings

Earnings per share

6 Months Ended

Jun. 30, 2011

15. Earnings per share

Basic and diluted EPS are calculated as follows:

	For the Six months ended June 30, 2011			For the Six months ended June 30, 2010
Net income attributable to the Company from continuing operation	$	3,104,356		$	1,881,900
Net loss attributable to the Company from discontinued operation		(221,780	)		(67,853	)
Net income attributable to the company		2,882,576			1,814,047

Weighted average number of common shares – Basic		15,336,535			15,323,068
Effect of dilutive securities:
Option		-			20,000
Warrants		-			2,206,565
Weighted average number of common shares - Diluted		15,336,535			17,549,633

Earnings per share
Basic:
Net income	$	0.19		$	0.12
-Net income attributable to the company from continuing operations		0.20			0.12
-Net loss attributable to the company from discontinued operation		(0.01	)		-
Diluted:
Net income	$	0.19		$	0.10
-Net income from continuing operations		0.20			0.10
-Net loss from discontinued operation		(0.01	)		-

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	6 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	Jun. 30, 2011	Jun. 30, 2010
Cash flows from operating activities:
Net income attributable to the Company	$ 2,882,576	$ 1,814,047
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Net income attributable to the noncontrolling interest	371,705	390,644
Depreciation	1,282,563	1,033,799
Amortization	25,290	33,286
Stock-based compensation	115,322	115,322
Deferred tax assets	(235,528)	49,665
Bad debt expense	116,568	113,486
Gain from disposal of property, plant and equipment	(1,810)	0
Loss from disposal of a subsidiary	188,886	0
Stock and warrant issued for settlement	0	439,821
Stock issued for service	3,887	0
Interest accretion expenses	19,080	18,314
Government subsidy recognized as income	(178,854)	(14,337)
Changes in operating assets and liabilities:
Notes receivable	(196,171)	201,011
Accounts receivable	(1,376,155)	(2,911,253)
Construction reimbursement receivable	0	739,586
Other receivables	(988,008)	19,998
Inventories	(2,223,878)	(429,084)
Advance to suppliers	(1,151,335)	(738,292)
Deferred expenses	53,013	(2,452)
Related party receivable	(35,260)	0
Other assets	(220,890)	124,812
Accounts payable	876,105	777,080
Tax payable	(21,352)	26,777
Advance from customers	176,587	81,622
Accrued expenses	(391,078)	(272,036)
Deferred revenue	474,308	(605,598)
Related party payable	125,707	0
Other payables	(221,851)	(65,500)
Net cash (used in) provided by operating activities	(530,573)	940,718
Cash flows from investing activities:
Investment in Xiangtan Dongtai	0	(58,604)
Purchase of property and equipment	(313,374)	(246,186)
Construction in progress	(3,275,386)	(3,202,966)
Proceed from disposal of property, plant and equipment	2,475	0
Purchase of intangible assets	0	(6,873)
Certificate of deposit	0	293,019
Cash received from a third party to acquire additional equity interest in Sino-Norway Energy Efficiency Dalian Center Co., Ltd.	10,705	0
Cash received from disposal of a subsidiary	2,375,034	0
Repayments from a related party	275,271	0
Net cash used in investing activities	(925,275)	(3,221,610)
Cash flows from financing activities
Repayment of construction project payable	(692,185)	(1,017,247)
Repayment of long-term bank loans	(697,737)	(1,122,628)
Repayment of short-term bank loan	(3,058,572)	(6,739,433)
Proceeds from short-term bank loans	3,517,357	2,930,188
Proceeds from long-term bank loan	0	1,611,604
Subsidy received from government	157,516	0
Decrease in Restricted cash	967,331	0
Net cash provided by (used in) financing activities	193,710	(4,337,516)
Effect of exchange rate changes in cash and cash equivalents	210,440	29,623
Net decrease in cash and cash equivalents	(1,051,698)	(6,588,785)
Cash and cash equivalents, beginning of period	8,163,880	11,419,129
Cash and cash equivalents, end of period	7,112,182	4,830,344
Supplemental cash flow information:
Interest	768,174	660,077
Income taxes	693,904	304,778
Non-cash investing and financing activities:
Stock and warrant issued for settlement	0	439,821
Transfer of construction in progress to property, plant and equipment	$ 3,151,443	$ 0

CONSOLIDATED BALANCE SHEETS (USD $)	Jun. 30, 2011	Dec. 31, 2010
ASSETS
Cash and cash equivalents	$ 7,112,182	$ 8,163,880
Notes receivable	286,650	86,364
Accounts receivable, net	6,349,092	5,146,994
Other receivables	1,365,367	359,383
Receivable from subsidiary's buyer	1,856,579	0
Inventories	7,000,250	4,652,148
Advances to suppliers	1,780,211	1,624,433
Deferred expense	156,745	210,752
Related party receivable	132,252	291,552
Deferred tax assets	132,457	61,145
Total current assets	26,171,785	20,596,651
Long-term equity investment	154,715	151,515
Property, plant and equipment, net	35,172,777	32,384,139
Construction in progress	14,710,637	18,642,061
Accounts receivable, net	778,105	584,853
Deposits	78,967	77,152
Restricted cash	160,289	1,788,510
Deferred tax assets	682,919	504,017
Other assets	1,483,102	1,233,580
TOTAL ASSETS	81,432,804	82,227,286
LIABILITIES AND EQUITY
Short-term loans	3,558,444	3,030,303
Accounts payable	3,396,514	2,458,260
Tax payable	502,423	513,243
Advance from customers	800,658	610,508
Deferred sales	883,050	394,862
Accrued expenses	417,635	804,205
Construction projects payable	2,434,736	3,070,169
Other payable	364,315	836,141
Long-term loan-current portion	2,958,923	2,321,970
Related party payable	529,434	393,939
Total current liabilities	15,846,132	14,433,600
Long-term loans	17,050,553	17,964,962
Asset retirement obligation	602,473	571,109
Deferred income-Government subsidy	4,565,182	7,673,724
TOTAL LIABILITIES	38,064,340	40,643,395
EQUITY
Preferred stock: par value $.001; 5,000,000 shares authorized; none issued and outstanding	0	0
Common stock: par value $.001; 95,000,000 shares authorized; 15,336,535 shares issued and outstanding as of March 31, 2011 and December 31, 2010.	15,337	15,337
Additional paid-in capital	10,456,314	10,337,105
Surplus Reserve	7,801,019	7,801,019
Retained earnings	13,687,951	10,805,375
Accumulated other comprehensive income	4,068,145	3,349,296
Total stockholders' equity of the Company	36,028,766	32,308,132
Noncontrolling interest	7,339,698	9,275,759
TOTAL EQUITY	43,368,464	41,583,891
TOTAL LIABILITIES AND EQUITY	81,432,804	82,227,286
BOT franchise right
ASSETS
Finite-Lived Intangible Assets, Net	0	4,242,424
Land usage right, net of accumulated amortization
ASSETS
Finite-Lived Intangible Assets, Net	$ 2,039,508	$ 2,022,384