|
2011-5-25
Operating expenses increased 131% to $1.2 million in the three months ended March 31, 2011 from $0.5 million in 2010, mainly due to an increase in sales expenses, research and development costs, depreciation and amortization in connection with the increase of fixed assets.
Operating income increased 103% to $4.4 million for the first quarter of 2011 from $2.2 million in the same period of 2010, while operating margins increased 332 basis points to 28.1%.
Net income was $3.2 million for the three months ended March 31, 2011 as compared to $2.1 million for the three months ended March 31, 2010, representing an increase of approximately 50%, representing diluted earnings per share of $0.46, compared to $0.36 in the same period of 2010, an increase of 28%.
Balance Sheet and Cash Flow
As of March 31, 2011, the Company had cash and cash equivalents of $1.5 million, compared to $4.2 million at December 31, 2010. Inventory increased from $9.9 million as of December 31, 2010 to $23.0 million as of March 31, 2011, as the Company purchased a significant amount of raw materials to meet future sales orders and to reduce the impact of increasing unit purchase prices in the future. Accounts receivable balance was approximately $11.8 million on March 31, 2011, versus approximately $13.3 million on December 31, 2010.
Days sales outstanding (DSO) for the first three months of 2011 were approximately 81 days, compared to 107 days for the same period in 2010 mainly due to increased collection effort. Working capital as of March 31, 2011 totaled $25.5 million. The Company had total stockholders’ equity of $35.7 million at March 31, 2011, with total assets of $57.8 million versus total liabilities of $22.1 million, compared to total stockholders’ equity of $32.2 million at December 31, 2010, with total assets of $51.6 million versus total liabilities of $19.5 million.
For three months ended March 31, 2011, the Company’s cash used in operations were $0.2 million, with the divergence in net income mainly coming from an increase in cash used in inventory.
"As fashion trends across Europe and Asia favor pure linen products and accessories, and consumers increasingly recognize the quality and value of these products, we believe the linen market will continue to expand in 2011. In addition, higher overall cotton prices make linen more affordable on a relative basis and give us another reason to be optimistic about our business prospects going forward," Mr. Ren concluded.
Source:China Linen Textile Industry Ltd
|
浙公网安33010602010414
