 (presumably) a woman groaning on “Fluorescent” wouldn't seem out of place on a Weeknd track. The subject matter, about a celebrity who ascends to stardom so skillfully that he or she can no longer carry on normal living, wouldn't either. “Thursday,” an otherwise straightforward throwback to the simple melodies of Actually, is interrupted by a single verse from the English rapper Example. Lowe's appreciation of hip-hop has never been in question, but the verse adds so much dynamism to the track that one wonders where the guest raps have been all along.
Lush and infectious as it is, Electric doesn't quite hit the benchmark of the most accomplished Pet Shop Boys albums. One comes away from songs as meticulous as the house track “Inside a Dream” with the feeling that Tennant and Lowe, after the disappointment surrounding Elysium, approached this as repair work that needed doing. There's not a single bad track, and yet there also aren't the same quips or diversions or general stabs at fucking with listeners' heads that one expects from a certified Pet Shop Boys masterpiece like Fundamental, which summed up centuries of human struggle, from Sodom and Gomorrah to the Iraq War, all while showing us a good time. The Pet Shop Boys are singular in pop for their ability to pull off that kind of ambition. Electric is a more modest undertaking.
Still, the Pet Shop Boys have once again given themselves a lease on another era, and Price was obviously the right choice to help them do so. Their new self-owned label, X2, is already delivering on the promise of the rebirth its name suggests. How committed they are to such an act remains to be seen. We don't listen to the Pet Shop Boys for constant reinvention; reliability has its own rewards (ask any Leonard Cohen fan). But it's in their surprises, the slight tweaks on their own premise, that they've found and will continue to find their greatest rewards. The dancing we can depend on.See more news releases in: OTC, SmallCap, Textiles, Earnings Forecasts & Projections, Earnings
China Linen Textile Industry, Ltd. Announces Record Third Quarter 2010 Financial Results and Raises Full Year Guidance on Sales and EPS
LANXI COUNTY, China, Nov. 29, 2010 /PRNewswire-Asia-FirstCall/ -- China Linen Textile Industry, Ltd. (OTC Bulletin Board: CTXIF) ("China Linen" or the "Company"), one of China's leading linen fabric and yarn producers, marketers and exporters, today announced record third quarter 2010 financial results.
- Q3 2010 revenue increased 109.3% YOY to 14.0 million.
- Q3 2010 net income increased 74.9% YOY to $2.8 million.
- Q3 2010 EPS of $0.14 vs. $0.08 for the same period in 2009.
- Raises full year 2010 guidance on revenues from $38.1 million to $44.0 million, maintains net income guidance of $9.3 million, raises EPS guidance from $0.39 to $0.46 based on 20,215,003 weighted average number of shares outstanding.
In the third quarter, the Company announced new independent director on August 30; announced Jodie Wehner as Chief Financial Officer on September 1; and signed contracts with three new customers in India and Turkey to supply 650 tons of linen yarn.
SUMMARY FINANCIALS
Third Quarter Ended September 30, 2010 Financial Results
Revenue for the third quarter of 2010 increased 109.3% to $14.0 million, compared to $6.7 million for the third quarter of 2009. Growth was driven by strong market demand, increased market and sales efforts, increased production capacity and higher average selling price. Sales of linen fabric sales increased 110.9% year-over-year to $12.5 million, which represented 89.0% of sales for the period. Sales of linen yarn increased significantly from $0.2 million a year ago to $1.5 million in the third quarter. Sales from new customers contributed to approximately 45% of total revenue in the third quarter of 2010.
Gross profit for the third quarter of 2010 was $4.4 million, a 114.9% increase from $2.1 million in the third quarter of 2009. Gross margin was 31.5% compared to 30.7% in the third quarter of 2009.
Operating expenses for the third quarter of 2010 were approximately $0.7 million, compared to $0.2 million for the same period a year ago. The increase was primarily due to increased selling expenses and increased expenses in connection with its public company compliance efforts. Operating income for the third quarter of 2010 increased 98.2% to $3.7 million compared to operating income of $1.9 million in the third quarter of 2009.
Net income for the third quarter of 2010 increased 74.9% to $2.8 million, compared to $1.6 million for the third quarter of 2009. Diluted earnings per share increased 74.1% to $0.14 compared to $0.08 for the third quarter of 2009, based upon 20.2 million and 20.1 million weighted average number of shares outstanding, respectively.
"We are pleased to report record revenue and earnings for the third quarter of 2010, which were a direct result of our expanded sales efforts for our broad line of linen fabrics, increased linen yarn distribution channels, and our fixed asset lease agreement with Lanxi Tianxianfang Linen Company, Ltd. which significantly expanded our production capacity," stated Mr. Gao Ren, Chairman and President of China Linen. "Our recent acquisition of Lanxi Tianxianfang is an important milestone in our goal to become a vertically integrated producer and the benefits of this relationship were evidenced in our recent operating and financial results to further improve our financial and operational performance."
Nine Months Ended September 30, 2010 Financial Results
For the nine months ended September 30, 2010, revenue increased approximately 53.7% to $31.6 million compared to the same period in 2009, primarily resulting from a 57.5% increase in sales of linen fabric, which represented 94.8% of sales during the period. Gross profit was approximately $9.8 million for the first nine months of 2010, representing an increase of 72.2% from the first nine months of 2009. Gross margins improved 335 basis points to 31.1% for the first nine months of 2010 compared to the year ago period as a result of product mix, price increases and the Company's ability to effectively manage production costs.
Income from operations was $8.1 million for the first nine months of 2010, representing an increase of 60.0% over the first nine months of 2009. Operating margins were 25.8% for the first nine months of 2010, compared to 24.7% for the first nine months of 2009.
Net income was $6.9 million for the nine months ended September 30, 2010, an increase of approximately 59.6% from the same period in 2009. Fully diluted earnings per share increased 58.9% to $0.34 for the first nine months of 2010, compared to $0.21 for the first nine months of 2009, based up on 20.2 million and 20.1 million weighted average number of shares outstanding, respectively.
Balance Sheet and Cash Flow
Cash and cash equivalents totaled $4.4 million on September 30, 2010, compared to $2.3 million on December 31, 2009. Accounts receivable balance was approximately $15.6 million on September 30, 2010, versus approximately $8.8 million on December 31, 2009. Days sales outstanding (DSO) for the first nine months of 2010 were at 114 days, compared to 119 days for the same period in 2009. The Company had a current ratio of 2.4 to 1 and stockholders' equity of $28.9 million, with total assets of $45.6 million versus total liabilities of $16.7 million on September 30, 2010.
For the first nine months of 2010, the Company generated $2.5 million in cash from operations versus $2.3 million for the same period in 2009.
Fiscal 2010 Guidance
Based on the strong results recorded in the first nine months of 2010, Management raises full year guidance of sales from $38.1 million to $44.0 million, maintains net income guidance of $9.3 million and raises EPS guidance from $0.39 to $0.46 based on 20,215,003 weighted average number of shares outstanding.
Mr. Gao Ren, Chairman and President of China Linen, stated: "China Linen's continued international and domestic market expansion is anticipated to yield additional customers and orders, which will drive incremental growth and support our efforts to further penetrate the existing customer base. We expanded our linen yarn production capacity by approximate 40% and linen fabric production capacity by 26% through the additional of Lanxi Tianxianfang, which provides the foundation to meet our 2011 growth objectives."
Conference Call Information
China Linen's management will hold an earnings conference all at 4:30 p.m. Eastern Time on November 29, 2010. Interested parties may access the call by dialing 1-877-941-4774 from within the United States, or 1-480-629-9760 if calling internationally. The conference ID is 4386918. It is advisable to dial in approximately 5-10 minutes prior to the start of the call. A replay will be available through December 6, 2010 and can be accessed by dialing +1-877-870-5176 (U.S.), +1-858-384