Monday, December 05, 2005
YaSheng's Q3 Results
and old Q2 results
AR decreased to $66 million from $77 million.
Inventories decreased to $55 million from $63 million.
Undepreciated PP&E increased by $21 million to $1.56 billion (depreciated by $380 million).
AP increased to $68 million from $49 million.
Equity rose by $15 million during Q3.
COGS rose by 5.1% while revenues only rose by 1.2%. Company says it's due to energy costs in the press release.
SG&A is up vs prior year but down vs Q2.
Operating income is $15.8 million vs $23 million prior year.
Net income is $14.4 million on 155 million shares (9.3 cents per share) vs $16.9 million prior year.
9 month net income is $50.7 million (vs $49.9 million prior year).
The net income for 9 months ($50,681,944) doesn't match the net income for 3 months ($14,377,302) plus the Q2 net income for 6 months ($35,919,132) which should equal $50,296,434.
Notice the $14.9 million of non-cash compensation. Since this is a positive number, it means the company is compensating someone (employees, vendors?) in something other than cash. Is that right?
They totally screwed up the AR line of cash flow.
On Dec 31, 2004, AR was $75,656,058.
On June 30, 2005, AR was $76,770,796. Q2 cash flow should have ($1,114,738) on the AR line, which it does.
On Sept 30, 2005, AR was $66,012,517. Q3 cash flow should have $9,643,541 on the AR line, meaning AR decreased by this amount. Instead, they show the negative of this number.
Some of the other numbers don't match the changes in assets and liabilities, but it could easily be due to them being partially non-cash based.
Inventories do match (which must match).
Cash provided by operations should be $95,009,764.
Capex is $36.5 million but yet undepreciated PP&E increased by only $21 million. Nothing shows a writedown or sale of the remaining $15.5 million.
The financing is off by exactly $100,000. They claim financing used $100,000 less than it did based on the balance sheet numbers.
Based on the principles I spelled out in the disclaimer, I held off posting this until I was done selling shares. While I did make a profit, I wish I had sold at least some shares when it was well over $5 (which was getting close to my valuation for the stock).