Feihe International Inc

CIK:0000789868|SEC Filings

4. EARNINGS PER SHARE OF COMMON STOCK (Tables)

3 Months Ended

Mar. 31, 2013

Schedule of reconciliation of the numerators and denominators

	For the three months ended
	March 31,
	2013		2012
	US$		US$
Net income attributable to Feihe International, Inc. shareholders		10,556,110		8,242,403

Net income attributable to Feihe International, Inc. allocated for computing net income per share of common stock – Basic		10,556,110		7,890,276

Net income attributable to Feihe International, Inc. allocated for computing net income per share of redeemable common stock – Basic		—		352,127

Net income attributable to Feihe International, Inc. for computing net income per common stock – Diluted		10,556,110		7,890,276

Net income attributable to Feihe International, Inc. allocated for computing net income per share of common stock – Diluted		—		352,127

Weighted-average common stock outstanding used in computing net income per share of common stock – Basic		19,784,291		19,714,291
Weighted-average common stock outstanding used in computing net income per share of common stock – Diluted ⁽ⁱ⁾		19,784,291		19,714,291
Weighted-average shares of redeemable common stock outstanding used in computing net income per share of redeemable common stock – Basic		—		879,809
Weighted-average shares of redeemable common stock outstanding used in computing net income per share of redeemable common stock – Diluted		—		879,809

Net income per share of common stock – Basic
Net income attributable to Feihe International, Inc.		0.53		0.40

Net income per share of common stock – Diluted
Net income attributable to Feihe International, Inc.		0.53		0.40

Net income per share of redeemable common stock – Basic
Net income attributable to Feihe International, Inc.		—		0.40

Net income per share of redeemable common stock – Diluted
Net income attributable to Feihe International, Inc.		—		0.40


	(i)	The following table sets forth the computation of weighted-average shares outstanding for calculating basic and diluted earnings per share for the three months ended March 31, 2013 and 2012:

	Three months ended
	March 31,
	2013		2012
Weighted-average shares – Basic		19,784,291		19,714,291
Effect of dilutive securities
Stock option		—		—
Weighted-average shares – Diluted		19,784,291		19,714,291

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (unaudited) (USD $)	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Cash flows from operating activities:
Net income	$ 10,556,110	$ 8,266,612
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	2,231,390	1,977,367
Amortization of prepaid leases	146,853	99,926
Amortization of capital lease	5,697	7,415
(Gain) loss on disposal of property, plant and equipment	(14,843)	177,165
Share-based compensation	478,514	1,099,319
Deferred tax assets	1,838,479
Unrecognized tax benefits - non-current	167,166	(198,589)
Changes in assets and liabilities
Decrease in trade receivables	5,645,302	26,571,260
(Increase) decrease in due from related parties	(3,814)	167,479
Decrease (increase) in advances to suppliers	1,893,089	(7,428,124)
Decrease (increase) in inventories	1,794,926	(518,671)
Decrease in prepayments and other current assets	6,426	12,632
Increase in income taxes receivable		(613,905)
Increase in recoverable value-added taxes	(120,334)	(422,662)
(Increase) decrease in loans and advances to third parties	(1,396,207)	205,438
Decrease in notes payable	(8,006,042)
Increase in accounts payable	2,691,005	5,612,458
Decrease in accrued expenses	(3,456,202)	(2,799,101)
Increase in income tax payable	243,714	1,781,019
Increase (decrease) in advances from customers	1,083,599	(6,273,197)
Increase in due to related parties	83,082	17,898
Increase (decrease) in advances from employees and employee benefits and salary payable	752,621	(2,618,590)
Decrease in other payables	(10,482,033)	(6,397,474)
Increase (decrease) in deferred income	(79,465)	1,193,475
Net cash provided by operating activities	6,059,033	19,919,150
Cash flows from investing activities:
Purchase of property, plant and equipment	(4,873,113)	(819,595)
Purchase of construction in progress	(2,964,575)	(309,789)
Loans and advances to third parties	(28,851,692)
Proceeds from sale of property, plant and equipment		2,793
Change in restricted cash	6,626,672	(1,721,926)
Net cash used in investing activities	(30,062,708)	(2,848,517)
Cash flows from financing activities:
Proceeds from short term bank loans	6,427,975
Repayment of short term bank loans	(8,034,968)	(1,429,002)
Redemption of redeemable common stocks		(16,317,566)
Proceeds from other long term loans		16,459,869
Payment for long term loan receivables		(21,101,602)
Payment on capital lease obligations		(265,379)
Net cash used in financing activities	(1,606,993)	(22,653,680)
Effect of exchange rate changes on cash	78,093	78,449
Net decrease in cash and cash equivalents	(25,532,575)	(5,504,598)
Cash and cash equivalents, beginning of period	40,425,310	15,353,882
Cash and cash equivalents, end of period	14,892,735	9,849,284
Supplemental disclosure of cash flow information:
Cash paid during the period for income tax	(2,067,535)	(931,150)
Interest paid during the period	(1,069,175)	(1,105,586)
Supplemental disclosure of non-cash investing and financing activities:
Settlement of consideration receivable by raw milk supply	$ 2,686,272	$ 3,332,369

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (USD $)	Mar. 31, 2013	Dec. 31, 2012
Current assets:
Cash and cash equivalents	$ 14,892,735	$ 40,425,310
Restricted cash	1,465,359	8,081,061
Trade receivables, net of allowance for doubtful accounts of $1,459,309 and $1,454,741, as of March 31, 2013 and December 31, 2012, respectively	18,952,195	24,535,601
Notes and loans receivable, net of allowance for doubtful accounts of $3,350,056, as of March 31, 2013 and December 31, 2012, respectively
Due from related parties	24,075	20,191
Advances to suppliers	12,956,338	14,805,607
Inventories, net	29,137,477	30,838,292
Prepayments and other current assets	37,352	43,779
Recoverable value-added taxes	1,393,997	1,269,443
Loans and advances to third parties	60,879,155	30,473,435
Consideration receivable	75,907,867	78,274,528
Deferred tax assets	3,425,598	3,425,598
Investment in mutual funds - available-for-sale	119,483	117,210
Assets held for sale	2,416,333	2,408,770
Total current assets	221,607,964	234,718,825
Investments:
Investment at cost	289,821	288,914
Investments	289,821	288,914
Property, plant and equipment:
Property, plant and equipment, net	113,265,430	114,990,808
Construction in progress	21,021,622	17,996,885
Property Plant and Equipment Including Construction in Progress	134,287,052	132,987,693
Other assets:
Advances to suppliers - non-current	11,989,369	10,149,090
Long term loan receivables	79,266,427	79,018,330
Deferred tax assets - non-current	730,163	2,568,642
Prepaid leases for land use rights	16,429,133	16,524,390
Total assets	464,599,929	476,255,884
Current liabilities:
Notes payable		7,996,533
Short term bank loans	61,828,779	63,240,345
Accounts payable	41,237,423	41,115,131
Accrued expenses	10,779,092	14,193,225
Income tax payable	2,393,860	2,128,545
Advances from customers	16,225,424	15,092,328
Due to related parties	138,524	55,276
Advances from employees	80,023	225,835
Employee benefits and salary payable	10,668,699	9,758,312
Other payables	25,464,200	38,683,732
Current portion of long term bank loans	6,023,349	6,004,497
Current portion of capital lease obligation	139,973	137,722
Total current liabilities	174,979,346	198,631,481
Capital lease obligation, net of current portion	301,756	296,856
Other long term loans	59,222,577	59,222,577
Unrecognized tax benefits - non-current	12,193,729	12,026,563
Deferred income	4,254,460	4,320,779
Total liabilities	250,951,868	274,498,256
Commitments and contingencies (see Note 21)
Equity
Common stock (US$0.001 par value, 50,000,000 shares authorized; 19,784,291 shares issued and outstanding as of March 31, 2013 and December 31, 2012)	19,784	19,784
Additional paid-in capital	61,762,731	61,284,217
Common stock warrants	1,774,151	1,774,151
Statutory reserves	13,450,739	13,450,739
Accumulated other comprehensive income	46,343,337	45,487,528
Retained earnings	90,297,319	79,741,209
Total shareholders' equity	213,648,061	201,757,628
Total liabilities and equity	$ 464,599,929	$ 476,255,884