NEW YORK and HARBIN, China, Nov. 22, 2010 (GLOBE NEWSWIRE) -- China Digital Animation Development, Inc. (OTCBB:CHDA) today provided a business update and announced financial results for its fiscal first quarter ended September 30, 2010.
Mr. Fu Qiang, Chairman and Chief Executive Officer, commented, "We are pleased to report a 58% increase in revenue due to our solid reputation as a premier provider of digital animation services. Our expanded sales efforts have resulted in new contracts across China spanning Harbin, Shenzhen and Shanghai. Some of our recent projects include 'New Juvenile Idioms Story' and 'Beautiful Yunnan.' We were selected for these projects due to our talented staff, state-of-the-art studio and ability to complete projects on time and within budget."
Revenue for the first quarter of fiscal 2011 increased 58% to $1.8 million compared to $1.1 million for the same period last year. Gross profit for the first quarter of fiscal 2011 was $1.6 million versus $922,564 for the same period last year. The company's income from operations for the first quarter of fiscal 2011 was $1.0 million compared to $688,321 for the first quarter of fiscal 2010. Net income for the first quarter of fiscal 2011 was $763,762 million or $0.05 per share, versus $577,011, or $0.03 per share in the same period last year.
As of September 30, 2010, the company had cash and cash equivalents of $7.6 million, working capital of $7.9 million, long-term debt of $286,000, and shareholders' equity of $15.8 million.
About China Digital Animation Development, Inc.
China Digital Animation Development, Inc. is a premier China-based digital animation development company, operating in Harbin (one of the largest animation development centers in China) as well as Beijing in The People's Republic of China. The Company also has an administrative office in New York City. The Company is engaged in animation post-stage processing, animation outsourcing, and information transmission services. The Company also operates an animation development skills training center located in Harbin, China, which provides its students with different types of animation skill training programs such as motion graphics, product modeling, character animation, and more. The Company's technical team has extensive experience in animation production and outsourcing.
Safe Harbor Statement
In addition to historical information, this press release contains forward-looking statements, which are generally identifiable by use of the words "believes," "expects," "intends," "anticipates," "plans to," "estimates," "projects," or similar expressions. These forward-looking statements represent Management's belief as to the future of China Digital Animation Development, Inc. Whether those beliefs become reality will depend on many factors that are not under Management's control. Many risks and uncertainties exist that could cause actual results to differ materially from those reflected in these forward-looking statements. Factors that might cause such a difference include, but are not limited to, those discussed in Section 1A: "Risk Factors" In the Company's Annual Report on Form 10-K for the year ended June 30, 2010. Readers are cautioned not to place undue reliance on these forward-looking statements. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements.
| CHINA ANIMATION DEVELOPMENT, INC. AND SUBSIDIARIES | ||
| CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | ||
| FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2010 AND 2009 | ||
| 2010 | 2009 | |
| Revenues | $1,805,859 | $1,143,915 |
| Cost of Goods Sold | 236,653 | 221,352 |
| Gross Profit | 1,569,206 | 922,564 |
| Operating Expenses: | ||
| Sales Expenses | 101,757 | 64,631 |
| General and Administrative Expenses | 429,531 | 169,612 |
| Total Operating Expenses | 531,288 | 234,243 |
| Income from Operations before other Income and (expenses) | 1,037,918 | 688,321 |
| Other Income and (Expense): | ||
| Interest income | 2,015 | 84,595 |
| Gains from Disposal of Fixed Assets | -- | (26) |
| Total Other Income and (Expense) | 2,015 | 84,570 |
| Income Before Income Taxes | 1,039,932 | 772,890 |
| Provision For Income Taxes | 276,171 | 195,879 |
| Income After Provision for Income Taxes | 763,762 | 577,011 |
| Other Comprehensive Income; | ||
| Unrealized Gain (loss) on Foreign Currency Translation | 254,476 | 13,067 |
| Net Comprehensive Income | $1,018,238 | $590,078 |
| Earnings Per Common Share-Basic and Diluted | 0.05 | 0.03 |
| Weighted Average Common Share - Basic and Diluted | 20,020,000 | 20,020,000 |
| CHINA ANIMATION DEVELOPMENT, INC. AND SUBSIDIARIES | ||
| CONSOLIDATED BALANCE SHEETS | ||
| FOR THE PERIOD ENDED SEPTEMBER 30, 2010 AND YEAR ENDED JUNE 30, 2010 | ||
| SEPTEMBER 30, | JUNE 30, | |
| ASSETS | 2010 | |
| (Unaudited) | ||
| Current Assets: | ||
| Cash and cash equivalents | $7,550,458 | $6,219,438 |
| Accounts Receivable, net | 738,021 | 976,304 |
| Employee advances | 7,302 | 3,616 |
| Total Current Assets | 8,295,781 | 7,199,358 |
| Non-current Assets | ||
| Property, Plant & Equipment, net | 5,430,410 | 5,575,027 |
| Land use right and other intangible assets, net | 2,706,786 | 2,756,604 |
| Total Non-current Assets | 8,137,196 | 8,331,630 |
| Total Assets | $16,432,977 | $15,530,988 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current Liabilities: | ||
| Accounts Payable | $40,779 | $34,338 |
| Payroll payable | 6,725 | 6,648 |
| Tax Payable | 276,207 | 410,339 |
| Accrued expenses and other payable | 61,756 | 50,391 |
| Total Current Liabilities | 385,468 | 501,717 |
| Long-Term Liabilities: | ||
| Loan Payable | 286,000 | 286,000 |
| Total Long-Term Liabilities | 286,000 | 286,000 |
| Total Liabilities | 671,468 | 787,717 |
| Stockholders' Equity: | ||
| Common Stock, par value $0.001, 500,000,000 authorized | ||
| 20,020,000 shares issued and outstanding | 20,020 | 20,020 |
| Additional Paid in Capital | 6,223,697 | 6,223,697 |
| Accumulated other comprehensive income | 2,128,409 | 1,873,933 |
| Reserved Fund | 705,738 | 705,738 |
| Retained Earnings | 6,683,645 | 5,919,883 |
| Total Stockholders' Equity | 15,761,508 | 14,743,271 |
| Total Liabilities and Stockholders' Equity | $16,432,976 | $15,530,988 |