Sutor Technology Group LTD

CIK:0001041177|SEC Filings

EARNINGS PER SHARE

9 Months Ended

Mar. 31, 2015

NOTE 15 – EARNINGS PER SHARE

Basic earnings per share are computed on the basis of the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share is computed on the basis of the weighted-average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period. The following table sets forth the computation of basic and diluted earnings per share:

	For The Three Months Ended				For The Nine Months Ended
	March 31,				March 31,
	2015		2014		2015		2014

Net income/(loss) attributable to the common stockholders	$	(2,551,892)	$	1,113,656	$	(7,616,764)	$	12,697,039

Basic weighted-average common shares outstanding		41,679,096		41,548,819		41,667,232		41,470,152
Dilutive effect of warrants and options		-		-		-		-
Diluted weighted-average common shares outstanding		41,679,096		41,548,819		41,667,232		41,470,152

Earnings (loss) per share:
Basic	$	(0.06)	$	0.03	$	(0.18)	$	0.31
Diluted	$	(0.06)	$	0.03	$	(0.18)	$	0.31

Warrants and options to purchase 685,000, and 105,000 shares of common stock, respectively were outstanding as of March 31, 2015 and June 30, 2014, respectively, but were excluded from the computation of diluted earnings per share as their effect would have been anti-dilutive because the exercise prices of the warrants and options were larger than the average share price during the period.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	Mar. 31, 2015	Mar. 31, 2014
Cash Flows from Operating Activities:
Net (loss)/income	$ (7,616,764)us-gaap_ProfitLoss	$ 12,697,039us-gaap_ProfitLoss
Adjustments to reconcile net income to net cash provided by/(used in) operating activities
Depreciation and amortization	6,278,329	6,800,389
Provision/(reversal) for doubtful accounts	67,797	(121,322)
Stock based compensation	145,299us-gaap_ShareBasedCompensation	398,123us-gaap_ShareBasedCompensation
Foreign currency exchange gain	0	(37,907)
Gain on disposal of property, plant and equipment	0	(11,075)
Income from equity method investments	0	(296,809)
Deferred income taxes	(2,631,851)us-gaap_DeferredIncomeTaxExpenseBenefit	(8,987)us-gaap_DeferredIncomeTaxExpenseBenefit
Changes in fair value of warrant liabilities	(866)	(76,669)
Changes in current assets and liabilities:
Restricted cash	60,945,391	(7,926,735)
Trade accounts receivable, unrelated parties	(1,129,463)	(588,183)
Trade accounts receivable, related parties	(23,143,463)	(26,643,587)
Notes receivable	131,816	0
Other receivables and prepayments, unrelated parties	(182,090)	(1,821,968)
Advances to suppliers, unrelated parties	493,863	21,997,275
Advances to suppliers, related parties	(21,316,668)	(89,009,045)
Inventories	48,620,660us-gaap_IncreaseDecreaseInInventories	(38,600,780)us-gaap_IncreaseDecreaseInInventories
Accounts payable, unrelated parties	1,255,961	64,198,549
Accounts payable, related parties	351,345	41,735,109
Notes payable	(134,802,460)	0
Other payables and accrued expenses, unrelated parties	10,294,917	247,358
Other payables and accrued expenses, related parties	259,895	27,528,078
Advances from customers, unrelated parties	1,128,382	4,702,254
Advances from customers, related parties	(14,509,520)	15,989,417
Net Cash (Used in)/Provided by Operating Activities	(75,359,490)	31,150,524
Cash Flows from Investing Activities:
Purchase of property, plant and equipment	(786,588)	(8,488,717)
Proceeds from disposal of property, plant and equipment	87,374	17,178
Purchase of intangible assets	0	(568,119)
Payments for short-term investments	0	(13,851,544)
Proceeds from sale of short-term investments	3,253,196	0
Net Cash Provided by/(Used In) Investing Activities	2,553,982	(22,891,202)
Cash Flows from Financing Activities:
Proceeds from loans	178,913,067us-gaap_ProceedsFromShortTermDebt	93,219,276us-gaap_ProceedsFromShortTermDebt
Repayment of loans	(115,854,623)us-gaap_RepaymentsOfShortTermDebt	(121,389,798)us-gaap_RepaymentsOfShortTermDebt
Proceeds from issuance of common stock	0	1,500,000
Changes in restricted cash	0	21,517,459
Net Cash Provided by Financing Activities	63,058,444	(5,153,063)
Effect of Exchange Rate Changes on Cash and Cash Equivalents	180,079	(12,317)
Net Change in Cash and Cash Equivalents	(9,566,985)	3,093,942
Cash and Cash Equivalents at Beginning of Period	12,178,225	3,601,385
Cash and Cash Equivalents at End of Period	2,611,240	6,695,327
Supplemental Non-Cash Information:
Accounts payable for purchase of long-term assets	853,408	110,393
Advances for purchase of long-term assets	0sutr_AdvancesForPurchaseOfLongTermAsset	17,123,508sutr_AdvancesForPurchaseOfLongTermAsset
Supplemental Cash Flow Information:
Cash paid during the period for interest expense	(4,160,475)us-gaap_InterestPaid	(7,256,280)us-gaap_InterestPaid
Cash paid during the period for income tax	$ 0us-gaap_IncomeTaxesPaidNet	$ (4,678,335)us-gaap_IncomeTaxesPaidNet

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Mar. 31, 2015	Jun. 30, 2014
Current Assets:
Cash and cash equivalents	$ 2,611,240	$ 12,178,225
Restricted cash	0	60,860,255
Short-term investments	0us-gaap_ShortTermInvestments	3,248,652us-gaap_ShortTermInvestments
Trade accounts receivable, unrelated parties, net of allowance for doubtful accounts of $1,287,544 and $1,368,723, respectively	7,591,806us-gaap_AccountsReceivableNetCurrent	6,331,702us-gaap_AccountsReceivableNetCurrent
Trade accounts receivable, related parties	39,490,041	16,149,269
Notes receivables	63,657	194,919
Other receivables and prepayments, unrelated parties, net of allowance for doubtful accounts of $325,427 and $255,628, respectively	2,001,352	1,875,785
Other receivables and prepayments, related parties	407,931us-gaap_DueFromRelatedPartiesCurrent	405,558us-gaap_DueFromRelatedPartiesCurrent
Advances to suppliers, unrelated parties, net of allowance for doubtful accounts of $619,141 and $527,673, respectively	8,111,881us-gaap_AdvancesOnInventoryPurchases	8,645,751us-gaap_AdvancesOnInventoryPurchases
Advances to suppliers, related parties	275,880,702sutr_AdvancesToSuppliersRelatedParties	286,085,768sutr_AdvancesToSuppliersRelatedParties
Inventories, net	29,895,466us-gaap_InventoryNet	78,277,682us-gaap_InventoryNet
Current deferred tax assets	4,160,207us-gaap_DeferredTaxAssetsNetCurrent	1,507,840us-gaap_DeferredTaxAssetsNetCurrent
Total Current Assets	370,214,283us-gaap_AssetsCurrent	475,761,406us-gaap_AssetsCurrent
Non-current Assets:
Advances for purchase of long term assets	85,739	85,241
Long-term advances to suppliers, related parties, net	33,287,396us-gaap_DueFromRelatedPartiesNoncurrent	0us-gaap_DueFromRelatedPartiesNoncurrent
Property, plant and equipment, net	82,949,711us-gaap_PropertyPlantAndEquipmentNet	87,121,382us-gaap_PropertyPlantAndEquipmentNet
Intangible assets, net	3,524,275	3,568,855
Long-term investments	1,825,349us-gaap_LongTermInvestments	1,814,734us-gaap_LongTermInvestments
Total Non-current Assets	121,672,470us-gaap_AssetsNoncurrent	92,590,212us-gaap_AssetsNoncurrent
TOTAL ASSETS	491,886,753us-gaap_Assets	568,351,618us-gaap_Assets
Current Liabilities:
Short-term loans	203,376,129	139,223,123
Accounts payable, unrelated parties	7,996,523us-gaap_AccountsPayableCurrent	5,843,599us-gaap_AccountsPayableCurrent
Accounts payable, related parties	352,907us-gaap_DueToRelatedPartiesCurrent	0us-gaap_DueToRelatedPartiesCurrent
Notes payable	1,670,006us-gaap_NotesPayableCurrent	136,274,446us-gaap_NotesPayableCurrent
Other payables and accrued expenses, unrelated parties	14,974,459	4,613,201
Other payables and accrued expenses, related parties	3,378,641	3,110,196
Advances from customers, unrelated parties	9,095,000us-gaap_CustomerAdvancesCurrent	7,917,111us-gaap_CustomerAdvancesCurrent
Advances from customers, related parties	628,758	15,114,353
Warrant liabilities	0sutr_WarrantCurrentLiabilities	866sutr_WarrantCurrentLiabilities
Total Current Liabilities	241,472,423us-gaap_LiabilitiesCurrent	312,096,895us-gaap_LiabilitiesCurrent
Non-Current Liabilities
Long-term loans, unrelated parties	2,859,995us-gaap_LongTermDebtNoncurrent	2,859,995us-gaap_LongTermDebtNoncurrent
Long-term loans, related parties	8,182,018us-gaap_DueToRelatedPartiesNoncurrent	8,182,018us-gaap_DueToRelatedPartiesNoncurrent
Total Non-current Liabilities	11,042,013us-gaap_LiabilitiesNoncurrent	11,042,013us-gaap_LiabilitiesNoncurrent
Total Liabilities	252,514,436us-gaap_Liabilities	323,138,908us-gaap_Liabilities
Commitments and Contingencies (Note 15)
Stockholders' Equity
Undesignated preferred stock - $0.001 par value; 1,000,000 shares authorized; nil shares outstanding	0us-gaap_PreferredStockValue	0us-gaap_PreferredStockValue
Common stock - $0.001 par value; authorized: 500,000,000 shares as of March 31, 2015 and June 30, 2014; issued: 42,282,267 shares and 42,252,267 shares as of March 31, 2015 and June 30, 2014, respectively	42,282us-gaap_CommonStockValue	42,252us-gaap_CommonStockValue
Additional paid-in capital	43,797,358us-gaap_AdditionalPaidInCapital	43,652,089us-gaap_AdditionalPaidInCapital
Statutory reserves	22,725,841sutr_StatutoryReserves	22,725,841sutr_StatutoryReserves
Retained earnings	129,464,830	137,081,594
Accumulated other comprehensive income	43,993,515	42,362,443
Less: Treasury stock, at cost, 590,838 as of March 31, 2015 and June 30, 2014	(651,509)us-gaap_TreasuryStockValue	(651,509)us-gaap_TreasuryStockValue
Total Stockholders' Equity	239,372,317	245,212,710
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 491,886,753	$ 568,351,618