LIHUA INTERNATIONAL INC.

CIK:0001399521|SEC Filings

EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2013

NOTE 18

EARNINGS PER SHARE

Basic earnings per common share is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted income per common share is computed similarly to basic income per common share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potentially dilutive common shares had been issued.

The following table is a reconciliation of the net income and the weighted average shares used in the computation of basic and diluted earnings per share for the periods presented:

	Year ended December 31,
	2013		2012		2011

Income available to common stockholders:
- Basic and diluted	$	56,159,450	$	57,942,003	$	53,133,533
Weighted average number of shares:
- Basic		29,858,880		29,815,943		29,816,871
- Effect of dilutive securities - warrants and options		137,953		149,868		259,259
- Diluted		29,996,833		29,965,811		30,076,130
Net income per share
- Basic	$	1.88	$	1.94	$	1.78
- Diluted	$	1.87	$	1.93	$	1.77

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	12 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 56,159,450	$ 57,942,003	$ 53,133,533
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	4,361,117	3,669,077	2,294,159
Loss on disposal of property, plant and equipment	86,330	0	0
Share-based compensation	343,513	382,089	498,212
(Gain) loss on extinguishment of warrant liabilities	8,369	(73,291)	(88,777)
Change in fair value of warrants	106,536	124,000	(3,062,575)
Deferred income tax benefits	(118,821)	175,379	(65,136)
(Increase) decrease in assets:
Accounts receivable	(13,597,256)	(14,065,887)	3,487,873
Bills receivable	0	0	541,989
Prepayments for raw material purchases	2,984,314	2,357,227	(21,347,998)
Other receivables, deposits and prepayments	236,354	1,321,844	(1,814,309)
Inventories	6,158,432	(2,294,323)	1,442,579
Increase (decrease) in liabilities:
Accounts payable	3,350,965	(2,180,647)	(246,640)
Other payables and accruals	1,987,001	198,772	(782,013)
Income taxes payable	(1,019,365)	1,173,326	(612,900)
Net cash provided by operating activities	61,046,939	48,729,569	33,377,997
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment and construction in progress	(7,796,777)	(9,365,100)	(16,965,626)
Deposits for plant and equipment	0	0	(3,344,274)
Net cash used in investing activities	(7,796,777)	(9,365,100)	(20,309,900)
CASH FLOWS FROM FINANCING ACTIVITIES
Payment of common stock dividend	0	(992,846)	0
Repayments of short-term bank loans	0	0	(2,322,413)
Repurchase of common stock	0	0	(2,126,597)
Proceeds from exercise of share options	495,000	0	0
Proceeds from exercise of warrants	95,441	0	1,898,050
Net cash (used in) provided by financing activities	590,441	(992,846)	(2,550,960)
Foreign currency translation adjustment	5,265,327	291,040	4,511,150
INCREASE IN CASH AND CASH EQUIVALENTS	59,105,930	38,662,663	15,028,287
CASH AND CASH EQUIVALENTS, at the beginning of the year	144,300,290	105,637,627	90,609,340
CASH AND CASH EQUIVALENTS, at the end of the year	203,406,220	144,300,290	105,637,627
MAJOR NON-CASH TRANSACTION:
Share-based compensation to employees and directors	343,513	382,089	498,212
Issuance of common stock to settle warrant liabilities	435,642	311,709	4,916,088
SUPPLEMENTAL DISCLOSURE INFORMATION
Cash paid for interest	0	0	143,779
Cash paid for income taxes	$ 20,743,750	$ 19,569,241	$ 18,056,035

CONSOLIDATED BALANCE SHEETS (USD $)	Dec. 31, 2013	Dec. 31, 2012
CURRENT ASSETS
Cash and cash equivalents	$ 203,406,220	$ 144,300,290
Accounts receivable, net	60,497,780	45,284,923
Prepayments for raw material purchases	17,143,138	19,569,239
Other receivables, deposits and prepayments	337,189	559,955
Prepaid land use right - current portion	418,502	406,026
Deferred income tax assets	146,418	24,948
Inventories	12,140,696	17,844,405
Total current assets	294,089,943	227,989,786
OTHER ASSETS
Property, plant and equipment, net	47,139,458	47,197,115
Construction in progress	5,559,901	175,006
Prepaid land use right - long-term portion	18,701,959	18,546,658
Intangible assets	42,195	3,332
Total non-current assets	71,443,513	65,922,111
Total assets	365,533,456	293,911,897
CURRENT LIABILITIES
Accounts payable	7,415,370	3,891,110
Other payables and accruals	7,143,964	4,937,404
Income taxes payable	4,941,050	5,797,188
Warrant liabilities	33,262	354,000
Total current liabilities	19,533,646	14,979,702
Total liabilities	19,533,646	14,979,702
STOCKHOLDERS' EQUITY
Preferred stock: $0.0001 par value, 10,000,000 shares authorized, none issued and outstanding	0	0
Common stock, $0.0001 par value: 75,000,000 shares authorized, 30,295,955 shares issued and 30,031,908 shares outstanding as of December 31, 2013 (2012: 30,084,883 shares issued and 29,820,836 shares outstanding), respectively	3,029	3,008
Additional paid-in capital	80,627,496	79,257,921
Treasury stock, at cost, 264,047 shares as of December 31, 2013 and 2012, respectively	(2,126,597)	(2,126,597)
Statutory reserves	18,723,836	14,566,846
Retained earnings	222,165,580	170,163,120
Accumulated other comprehensive income	26,606,466	17,067,897
Total stockholders' equity	345,999,810	278,932,195
Total liabilities and stockholders' equity	$ 365,533,456	$ 293,911,897