CHINA SECURITY & SURVEILLANCE TECHNOLOGY, INC.

CIK:0001260625|SEC Filings

Statement of Operations (USD $) In Thousands, except Share data	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
Revenues	$ 156,339	$ 168,354	$ 255,393	$ 288,544
Cost of goods sold (including depreciation and amortization for the three and six months ended June 30, 2011 and 2010 of $254, $513, $248 and $502, respectively)	114,331	124,994	181,898	216,205
Gross profit	42,008	43,360	73,495	72,339
Selling and marketing	3,116	3,131	5,812	5,845
General and administrative (including non-cash employee compensation for the three and six months ended June 30, 2011 and 2010 of $5,017, $10,564, $5,055 and $13,381, respectively)	21,274	12,670	38,972	28,992
Depreciation and amortization	2,971	3,005	5,939	5,985
Income from operations	14,647	24,554	22,772	31,517
Interest income	222	53	363	131
Interest expense	(6,436)	(3,064)	(11,550)	(5,359)
Other income, net	715	394	1,311	640
Income before income taxes	9,148	21,937	12,896	26,929
Income taxes	(3,182)	(4,130)	(5,251)	(5,847)
Net income	5,966	17,807	7,645	21,082
Add: Net income attributable to the noncontrolling interest		(4)		(2)
Net income attributable to the Company	5,966	17,803	7,645	21,080
Foreign currency translation gain	9,837	3,198	16,668	3,322
Comprehensive income attributable to the Company	15,803	21,001	24,313	24,402
Comprehensive income attributable to the noncontrolling interest		4		2
COMPREHENSIVE INCOME	$ 15,803	$ 21,005	$ 24,313	$ 24,404
NET INCOME PER SHARE ATTRIBUTABLE TO THE COMPANY’S COMMON SHAREHOLDERS
EPS BASIC	$ 0.07	$ 0.25	$ 0.09	$ 0.31
EPS DILUTED	$ 0.07	$ 0.23	$ 0.09	$ 0.29
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING
BASIC	84,833,000	71,480,000	84,835,000	67,993,000
DILUTED	89,709,000	76,006,000	89,709,000	72,209,000

Cash Flows (USD $) In Thousands	6 Months Ended
Cash Flows (USD $) In Thousands	Jun. 30, 2011	Jun. 30, 2010
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 7,645	$ 21,082
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	6,452	6,487
Provision for obsolete inventories	(6)
Amortization of deferred financing cost	1,707	563
Non-cash compensation expense	10,564	13,381
Debt discount amortization	824	1,681
Deferred taxes	388	(361)
Changes in operating assets and liabilities:
Accounts receivable	(47,251)	(65,925)
Inventories	17,659	(9,866)
Prepayments and deposits	(111,035)	(159)
Advances to suppliers and subcontractors	(64,336)	(31,947)
Other receivables	(351)	(4,070)
Accounts payable and accrued expenses	54,815	(392)
Advances from customers	3,151	3,953
Taxes payable	121	8,582
Deferred income	(470)	529
Net cash used in operating activities	(120,123)	(56,462)
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to plant and equipment	(3,160)	(846)
Additions to intangible assets, other than through business acquisitions	(520)	(807)
Deposits refunded (paid) for business acquisitions, properties and intangible assets, net	16,905	(30,229)
Payments for business acquisitions		(422)
Net cash provided by (used in) investing activities	13,225	(32,304)
CASH FLOWS FROM FINANCING ACTIVITIES:
Restricted cash, Financing	(22,472)
Issue of common stock, net of financing expenses		64,573
Proceeds from borrowings, net of financing costs	356,720	141,533
Repayment of borrowings	(128,440)	(49,899)
Repayment of guaranteed senior unsecured notes payable	(19,320)	(19,320)
Proceeds from borrowings from obligations under product financing arrangements, net of financing costs		6,293
Repayment of obligation under product financing arrangements	(4,450)	(2,671)
Net cash provided by financing activities	182,038	140,509
NET INCREASE IN CASH AND CASH EQUIVALENTS	75,140	51,743
Effect of exchange rate changes on cash and cash equivalents	3,439	1,841
Cash and cash equivalents, beginning of period	65,626	154,483
CASH AND CASH EQUIVALENTS, END OF PERIOD	144,205	208,067
Interest paid	11,227	3,157
Income taxes paid	$ 4,345	$ 735

Statement of Financial Position (USD $) In Thousands	Jun. 30, 2011	Dec. 31, 2010
Cash and cash equivalents	$ 144,205	$ 65,626
Restricted cash	22,472
Accounts receivable, net	491,369	433,986
Inventories, net	43,101	59,368
Prepayments and deposits	168,589	56,241
Advances to suppliers and subcontractors	154,760	88,360
Other receivables	48,568	47,116
Total current assets	1,073,064	750,697
Deposits paid for business acquisitions, properties and intangible assets	132,753	146,243
Plant and equipment, net	77,321	75,294
Land use rights, net	8,042	7,896
Intangible assets, net	45,799	48,692
Goodwill	79,519	79,516
Deferred financing costs, net	2,143	2,684
TOTAL ASSETS	1,418,641	1,111,022
CURRENT LIABILITIES
Notes payable – short term	191,014	196,329
Obligations under product financing arrangements – short term	5,512	6,687
Guaranteed senior unsecured notes payable – short term	22,168	37,408
Accounts and bills payable	77,464	32,240
Accrued expenses	60,919	49,421
Advances from customers	18,722	15,216
Taxes payable	29,438	28,648
Payable for acquisition of businesses	3,763	3,763
Deferred income	2,806	3,201
Total current liabilities	411,806	372,913
LONG TERM LIABILITIES
Notes payable – long term	299,945	60,570
Obligation under product financing arrangements – long term	3,810	6,474
Guaranteed senior unsecured notes payable – long term	3,324	6,580
Net deferred tax liabilities	676	282
Total liabilities	719,561	446,819
EQUITY
Preferred stock, $0.0001 par value; 10,000,000 shares authorized, no shares issued and outstanding
Common stock, $0.0001 par value; 290,000,000 shares authorized 89,703,773 (June 30, 2011) and 89,521,115 (December 31, 2010) shares issued and outstanding	9	9
Additional paid-in capital	384,981	374,417
Retained earnings	251,016	243,371
Statutory surplus reserve fund	804	804
Accumulated other comprehensive income	62,287	45,619
Total equity of the Company	699,097	664,220
Noncontrolling interest	(17)	(17)
Total equity	699,080	664,203
TOTAL LIABILITIES AND EQUITY	$ 1,418,641	$ 1,111,022