SINOHUB, INC.

CIK:0001406574|SEC Filings

EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2012

9. EARNINGS PER SHARE

The elements for calculation of earnings per share for the three months ended March 31, 2012 and 2011 were as follows:

	Three months ended March 31,
	2012			2011


Net (loss) income for basic and diluted earnings per share	$	(2,218,000	)	$	3,543,000

Weighted average shares used in basic computation		33,455,000			30,181,000
Effect of dilutive stock options and warrants		-			155,000
Weighted average shares used in diluted computation		33,455,000			30,336,000

Earnings (loss) per share:
Basic	$	(0.07	)	$	0.12
Diluted	$	(0.07	)	$	0.12

During the first quarter of 2012, options to purchase 2,133,739 shares of common stock and warrants to purchase 3,577,502 shares of common stock with exercise prices greater than the average fair market value of the Company's stock were not included in the calculation because the effect is anti-dilutive. The diluted net loss per common share is the same as the basic net loss per share for the three months ended March 31, 2012 as all potential ordinary shares including stock options and warrants are anti-dilutive and are therefore excluded from the computation of diluted net loss per share.

During the first quarter of 2011, options to purchase 631,251 shares of common stock and warrants to purchase 3,577,502 shares of common stock with exercise prices greater than the average fair market value of the Company's stock were not included in the calculation because the effect is anti-dilutive.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	3 Months Ended
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	Mar. 31, 2012	Mar. 31, 2011
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss) income	$ (2,218,000)	$ 3,543,000
Adjustments to reconcile net (loss) income used in operation:
Depreciation - operating expenses	627,000	466,000
Depreciation - cost of sales	456,000	406,000
Provision for bad debts	1,562,000	52,000
Stock option compensation amortization	100,000	109,000
Changes in fair values of warrant derivatives	(14,000)	(511,000)
Changes in operating assets and liabilities:
Accounts receivable	(32,786,000)	(3,181,000)
Inventories	28,026,000	(5,175,000)
Prepaid expenses and other current assets	8,000	(1,201,000)
Deposit with suppliers	(297,000)	739,000
Other tax refundable	1,388,000
Accounts payable	(1,640,000)	845,000
Customer deposits	1,005,000	639,000
Accrued expenses and other current liabilities	(294,000)	63,000
Income and other taxes payable/recoverable	2,232,000	(1,183,000)
Net cash used in operating activities	(1,845,000)	(4,389,000)
CASH FLOWS FROM INVESTING ACTIVITIES
Increase of restricted cash	(30,767,000)	(42,545,000)
Purchase of property and equipment	(126,000)	(2,793,000)
Long term investment	(19,000)
Net cash used in investing activities	(30,912,000)	(45,338,000)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of common stock, net of cost		10,441,000
Bank borrowing proceeds	42,863,000	53,001,000
Bank borrowing repayments	(13,435,000)	(4,478,000)
Collateralized bank advances proceeds	3,171,000
Repayments of capital lease obligations	(276,000)	(128,000)
Net cash provided by financing activities	32,323,000	58,836,000
EFFECT OF EXCHANGE RATE CHANGES	(140,000)	317,000
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(574,000)	9,426,000
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	7,743,000	4,524,000
CASH AND CASH EQUIVALENTS AT END OF PERIOD	7,169,000	13,950,000
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid for interest expense	358,000	490,000
Cash paid for income tax	$ 1,348,000	$ 2,092,000

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Mar. 31, 2012	Dec. 31, 2011
CURRENT ASSETS
Cash and cash equivalents	$ 7,169,000	$ 7,743,000
Restricted cash	95,799,000	65,019,000
Accounts receivable, net	71,210,000	39,951,000
Deposit with suppliers	692,000	393,000
Inventories, net	15,012,000	43,112,000
Prepaid expenses and other current assets	697,000	705,000
Other tax refundable	6,053,000	7,448,000
Other tax recoverable	728,000	2,561,000
Total current assets	197,360,000	166,932,000
PROPERTY AND EQUIPMENT, NET	10,307,000	11,271,000
LONG TERM INVESTMENT	19,000
TOTAL ASSETS	207,686,000	178,203,000
CURRENT LIABILITIES
Accounts payable	6,073,000	7,720,000
Customer deposits	1,663,000	658,000
Accrued expenses and other current liabilities	1,292,000	1,587,000
Bank borrowings	98,117,000	68,681,000
Collateralized bank advances	11,579,000	8,408,000
Capital lease obligations - current portion	761,000	798,000
Income and other taxes payable	2,350,000	1,947,000
Total current liabilities	121,835,000	89,799,000
LONG-TERM LIABILITIES
Capital lease obligations, net of current portion	214,000	452,000
Warrant derivatives	212,000	225,000
Total long-term liabilities	426,000	677,000
TOTAL LIABILITIES	122,261,000	90,476,000
COMMITMENTS AND CONTINGENT LIABILITIES
STOCKHOLDERS' EQUITY
Preferred stock, $0.001 par value, 5,000,000 shares authorized; no shares issued
Common stock, $0.001 par value, 100,000,000 shares authorized; 33,454,903 and 33,454,903 shares issued and outstanding as of March 31, 2012 and December 31, 2011, respectively	33,000	33,000
Additional paid-in capital	30,968,000	30,868,000
Retained earnings
Unappropriated	46,567,000	48,785,000
Appropriated	1,126,000	1,125,000
Accumulated other comprehensive income	6,731,000	6,916,000
Total stockholders' equity	85,425,000	87,727,000
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 207,686,000	$ 178,203,000