Silvan Industries, Inc.

December 31,

December 31,

Potential common shares outstanding as of December 31,

Warrant outstanding (shares)

CIK:0001373683|SEC Filings

EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2011

19. EARNINGS PER SHARE

Basic earnings per share is computed by dividing net income attributable to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflects the potential dilution of securities by including other potential common stock, including convertible preferred stock, stock options and warrants, in the weighted average number of common shares outstanding for the period, if dilutive. The numerators and denominators used in the computations of basic and dilutive earnings per share are presented in the following table:

		December 31,		December 31,
		2011		2010
BASIC
Numerator for basic earnings per share attributable to the Company’s common stockholders:
Net income used in computing basic earnings per share	$	5,788,389	$	9,291,492
Basic earnings per share	$	0.19	$	0.42

Basic weighted average shares outstanding		30,000,932		22,083,333


		December 31,		December 31,
		2011		2010
DILUTED
Numerator for diluted earnings per share attributable to the Company’s common stockholders:
Net income used in computing diluted earnings per share	$	5, 788,389	$	9,291,492
Diluted earnings per share	$	0.19	$	0.42


Weighted average outstanding shares of common stock		30,000,932		22,083,333
Warrants and contingently issuable shares		-		2,500
Options and contingently issuable shares		-		-
Diluted weighted average shares outstanding		30,000,932		22,085,833

For the year ended December 31, 2011, 60,000 warrants were not included in the diluted earnings per share because the average stock price was lower than the strike price of these warrants.

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	12 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	Dec. 31, 2011	Dec. 31, 2010
Cash flows from operating activities
Net income	$ 5,788,389	$ 9,291,492
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	477,477	284,335
Amortization	274,615	218,802
Settlement expense through issuance of common stock	91,000	0
Stock based compensation	0	150,170
Changes in operating assets and liabilities:
Restricted cash	(1,856,436)	(1,183,520)
Accounts receivable	(358,215)	(3,405,879)
Inventory	(9,069,582)	3,840,606
Deposits and prepaid expenses	(6,770,799)	(4,386,052)
Other receivables	(173,677)	(87,338)
Taxes recoverable	1,878,495	(2,260,103)
Deferred tax assets	(134,981)	0
Bills payable	4,950,495	1,183,520
Accounts payable	(19,558)	(7,292,572)
Customer deposits	1,960,970	1,095,425
Other payables and accrued expenses	(594,649)	(1,365,154)
Income tax payable	1,681,921	2,122,902
Net cash used in operating activities	(1,874,535)	(1,793,366)
Cash flows from investing activities
Acquisition of property, plant and equipment and construction in progress	(8,242,276)	(1,986,787)
Acquisition of intangible assets	(2,541,850)	0
Net cash used in investing activities	(10,784,126)	(1,986,787)
Cash flows from financing activities
Net proceeds from issuance of convertible notes	0	2,835,907
Repayment of short term and long term loans	(4,625,619)	(743,330)
Proceeds from short term and long term loans	19,956,683	3,777,330
Repayment of due to related party	(2,880,758)	(3,480,544)
Net cash provided by financing activities	12,450,306	2,389,363
Effect of exchange rate changes in cash and cash equivalents	4,958	1,015,009
Net decrease in cash and cash equivalents	(203,397)	(375,781)
Cash and cash equivalents, beginning of year	362,810	738,591
Cash and cash equivalents, end of year	159,413	362,810
Cash paid during the period for:
Interest	1,590,274	289,408
Income taxes	603,359	2,058,251
Non-cash transactions:
Common stock issued for payment of notes payable	0	400,000
Common stock issued for stock offering costs	0	331,000
Land use rights transferred from related party	0	5,892,000
Proceeds from issuance of convertible notes received by related party	$ 0	$ 1,964,093

CONSOLIDATED BALANCE SHEETS (USD $)	Dec. 31, 2011	Dec. 31, 2010
Current assets
Cash	$ 159,413	$ 362,810
Restricted cash	3,931,745	1,972,100
Accounts receivable, net of allowance	5,986,397	5,423,123
Inventory	16,424,906	6,949,679
Deposits and prepaid expenses	17,802,694	10,557,660
Other receivables	982,308	777,236
Due from related party	1,420,065	0
Taxes recoverable	632,786	2,452,407
Deferred tax assets	137,221	0
Total current assets	47,477,535	28,495,015
Property, plant and equipment, net	16,227,013	6,352,289
Intangible assets, net	9,216,213	6,666,591
Construction in progress	5,443,862	5,304,348
Prepayment for property, plant and equipment	207,779	1,833,096
Total assets	78,572,402	48,651,339
Current liabilities
Short term borrowings	16,198,789	4,535,830
Accounts payable	662,490	658,206
Bills payable	7,863,490	2,730,600
Customer deposits	4,001,348	1,936,733
Other payables and accrued expenses	1,417,245	1,829,363
Due to related party	0	1,527,080
Income tax payable	4,302,891	2,501,229
Total current liabilities	34,446,253	15,719,041
Long term debt	4,089,015	0
Total liabilities	38,535,268	15,719,041
Commitment and contingencies	0	0
Stockholders' Equity
Preferred stock: 5,000,000 shares authorized of $0.001 par value none issued and outstanding	0	0
Common stock: 100,000,000 shares authorized of $0.001 par value 30,020,000 and 30,000,000 shares issued and outstanding as of December 31, 2011 and 2010, respectively	30,020	30,000
Additional paid-in-capital	18,079,785	17,988,805
Accumulated other comprehensive income	3,516,571	2,291,124
Retained earnings	16,130,900	12,622,369
Statutory reserve	2,279,858	0
Total stockholders' equity	40,037,134	32,932,298
Total liabilities and stockholders' equity	$ 78,572,402	$ 48,651,339