LianDi Clean Technology Inc.

CIK:0001353386|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (USD $)	3 Months Ended		9 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2012	Dec. 31, 2011
NET REVENUE:
Sales and installation of equipment	$ 41,818,602	$ 61,504,266	$ 62,745,418	$ 83,893,332
Sales of software	36,819	2,187,631	36,819	11,080,248
Services	1,022,498	1,261,546	3,247,572	3,616,454
Sales of industrial chemicals (Note 25)	0	0	0	12,026,140
Total net revenues	42,877,919	64,953,443	66,029,809	110,616,174
Cost of revenue:
Cost of equipment sold	(34,933,755)	(52,282,829)	(50,512,296)	(70,852,286)
Amortization of software intangibles	(161,922)	(160,741)	(484,630)	(476,628)
Cost of software	(28,741)	(97,560)	(28,741)	(1,767,606)
Cost of services	(775,046)	0	(2,140,099)	0
Cost of industrial chemicals (Note 25)	0	0	0	(11,156,356)
Total cost of revenue	(35,899,464)	(52,541,130)	(53,165,766)	(84,252,876)
Gross profit	6,978,455	12,412,313	12,864,043	26,363,298
Operating expenses:
Selling expenses	(561,234)	(639,837)	(1,072,066)	(1,704,996)
General and administrative expenses	(429,732)	(818,927)	(1,500,886)	(2,364,543)
Research and development expenses	(102,232)	(111,076)	(267,139)	(333,275)
Total operating expenses	(1,093,198)	(1,569,840)	(2,840,091)	(4,402,814)
Income from operations	5,885,257	10,842,473	10,023,952	21,960,484
Other income (expense), net
Interest income	8,761	16,950	444,374	39,303
Interest and bank charges	(175,720)	(113,094)	(913,365)	(478,842)
Exchange losses, net	(757,970)	(325,132)	(1,003,588)	(1,192,338)
Value added tax refund	208,410	0	347,577	0
Gain on deconsolidation of a subsidiary	0	0	0	30,407,821
Other income	348	454	348	118,690
Total other income (expense), net	(716,171)	(420,822)	(1,124,654)	28,894,634
Income before income tax	5,169,086	10,421,651	8,899,298	50,855,118
Income tax expense	(887,801)	(1,311,368)	(1,652,909)	(10,255,191)
Income before equity in earnings of equity method affiliate	4,281,285	9,110,283	7,246,389	40,599,927
Gain from stock transaction of equity method affiliate, net of income tax	0	0	263,435	0
Equity in earnings of equity method affiliate	258,560	691,934	617,679	600,393
NET INCOME	4,539,845	9,802,217	8,127,503	41,200,320
Losses attributable to noncontrolling interests	0	0	0	80,823
Net income attributable to LianDi Clean stockholders	4,539,845	9,802,217	8,127,503	41,281,143
Preferred stock dividend	0	(345,745)	0	(1,061,322)
Net income available to common stockholders	4,539,845	9,456,472	8,127,503	40,219,821
Net income attributable to LianDi Clean stockholders	4,539,845	9,802,217	8,127,503	41,281,143
Other comprehensive income attributable to LianDi Clean stockholders:
Foreign currency translation adjustment	994,115	749,128	192,146	3,061,074
Comprehensive income attributable to LianDi Clean stockholders	5,533,960	10,551,345	8,319,649	44,342,217
Comprehensive income attributable to noncontrolling interests	0	0	0	9,531
TOTAL COMPREHENSIVE INCOME	$ 5,533,960	$ 10,551,345	$ 8,319,649	$ 44,351,748
Earnings per share attributable to LianDi Clean stockholders::
Basic (in dollars per share)	$ 0.12	$ 0.30	$ 0.22	$ 1.28
Diluted (in dollars per share)	$ 0.12	$ 0.27	$ 0.22	$ 1.13
Weighted average number of common shares outstanding:
Basic (in shares)	36,444,850	31,546,651	36,444,850	31,416,270
Diluted (in shares)	36,444,850	36,444,850	36,444,850	36,444,850

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	Dec. 31, 2012	Dec. 31, 2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 8,127,503	$ 41,200,320
Adjustments for:
Depreciation of property, plant and equipment	105,475	624,553
Amortization of intangible assets	487,558	507,091
Loss on disposal of fixed assets	0	2,321
Deferred tax liability	0	7,568,781
Change in fair value of pledged trading securities	(348)	0
Gain from stock transaction of equity method affiliate, net of income tax	(263,435)	0
Equity in earnings of equity method affiliate	(617,679)	(600,393)
Gain on deconsolidation of a subsidiary	0	(30,407,821)
Share-based payments	0	201,913
(Increase) decrease in operating assets:
Accounts receivable	(35,528,922)	(44,277,748)
Notes receivable	0	(158,112)
Inventories	150,592	(556,472)
Prepayments to suppliers	(36,015,935)	(5,878,021)
Prepaid expenses and other current assets	(485,514)	(4,829,461)
Increase (decrease) in operating liabilities:
Accounts payable	(582,714)	3,831,027
Deferred revenue, other payables and accruals	9,019,196	(1,925,163)
Income tax payable	1,513,872	2,630,560
Net cash used in operating activities	(54,090,351)	(32,066,625)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant and equipment	(89,896)	(570,350)
Payment for construction in progress	0	(4,423,431)
Cash outflow due to deconsolidation of Anhui Jucheng	0	(5,364,481)
Payment of deposit for land use rights	0	(2,114,587)
Advance to unrelated entities	(1,677,199)	0
Repayment of advances from unrelated entities	307,144	0
Loan to a related party	(18,888,000)	(391,089)
Repayment of loan from a related party	18,888,000	0
Net cash used in investing activities	(1,459,951)	(12,863,938)
CASH FLOWS FROM FINANCING ACTIVITIES:
Decrease in restricted cash	1,931,128	271,312
Repayment of short term bank loans	(5,735,986)	(3,878,905)
Proceeds from new short term bank loans	4,740,262	10,356,820
Proceeds from new short term loan from unrelated party	18,888,000	0
Repayment of short term loan from unrelated party	(18,888,000)	0
Capital contributions received in advance from new shareholders of Anhui Jucheng	0	22,233,704
Repayment of advances to noncontrolling interests	0	(176,420)
Advances from shareholders, net	2,931,094	1,158,365
Repayment of advances to unrelated entities	0	(6,167,655)
Payment of preferred stock dividend	0	(760,170)
Net cash provided by financing activities	3,866,498	23,037,051
Effect of foreign currency translation on cash	108,864	1,687,060
Decrease in cash and cash equivalents	(51,574,940)	(20,206,452)
Cash and cash equivalents, beginning of period	86,001,608	73,242,735
CASH AND CASH EQUIVALENTS, end of period	34,426,668	53,036,283
SUPPLEMENTAL DISCLOSURE INFORMATION:
Cash paid for interest	678,724	182,252
Cash paid for income tax	139,035	50,099
NON-CASH ACTIVITIES
Common stock issued for conversion of preferred stock	0	1,653,717
Reclassification of property and equipment to inventories	$ 652,466	$ 0

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Dec. 31, 2012	Mar. 31, 2012
ASSETS
Cash and cash equivalents	$ 34,426,668	$ 86,001,608
Restricted cash	1,959,688	3,890,403
Accounts receivable, net of $nil allowance	55,603,099	20,085,108
Inventories	4,766,046	4,222,568
Prepayments to suppliers	42,965,797	6,919,279
Prepaid expenses and deposits	487,486	452,653
Other receivables, net of $nil allowance	8,304,800	6,466,075
Pledged trading securities	7,424	7,076
Due from a related party	0	401,820
Total current assets	148,521,008	128,446,590
Other Assets
Property and equipment, net	239,023	908,847
Intangible assets, net	3,841,268	4,324,988
Investment in and advance to equity method affiliate	40,999,973	39,970,263
Total assets	193,601,272	173,650,688
LIABILITIES AND STOCKHOLDERS' EQUITY
Short term bank loans	8,526,643	9,522,368
Accounts payable	1,158,559	1,742,612
Deferred revenue	3,591,113	2,208,356
Other payables and accrued expenses	14,456,806	7,187,463
Provision for income tax	5,024,868	3,499,282
Due to shareholders	12,397,029	9,463,237
Preferred stock dividend payable	922,412	922,412
Total current liabilities	46,077,430	34,545,730
Deferred tax liability	7,898,899	7,799,664
Total liabilities	53,976,329	42,345,394
Commitments and Contingencies (Notes 17 and 24)
8% Series A contingently redeemable convertible preferred stock (25,000,000 shares authorized; par value $0.001 per share; nil issued and outstanding as of December 31, 2012 and March 31, 2012)	0	0
Stockholders' Equity
Common stock (50,000,000 shares authorized; par value $0.001 per share; 36,444,850 shares issued and outstanding at December 31, 2012 and March 31, 2012)	36,445	36,445
Additional paid-in capital	38,559,525	38,559,525
Statutory reserves	1,190,690	1,190,690
Retained earnings	94,721,087	86,593,584
Accumulated other comprehensive income	5,117,196	4,925,050
Total LianDi Clean stockholders' equity	139,624,943	131,305,294
Total liabilities and stockholders' equity	$ 193,601,272	$ 173,650,688