NEW YORK and HARBIN, China, May 25, 2011 (GLOBE NEWSWIRE) -- China Digital Animation Development, Inc. (OTCBB:CHDA) today provided a business update and announced financial results for its fiscal third quarter ended March 31, 2011.
Mr. Fu Qiang, Chairman and Chief Executive Officer, commented, "We are pleased to report another quarter of strong growth. Within our animation segment alone, revenue increased 79% compared to the same period last year. We have rapidly expanded our animation development business over the past two years and our customers now span the movie, television and online industries. Market growth is due in part to increasing demand for high end special effects, including 3-D animation. We also offer animated products for commercial customers used in advertising, branding and education purposes, which we see as an important avenue for growth going forward."
Revenue for the third quarter of fiscal 2011 increased 29.2% to $2.2 million compared to $1.7 million for the same period last year. Gross profit for the third quarter of fiscal 2011 was $1.5 million versus $1.0 million for the same period last year. The company's income from operations for the third quarter of fiscal 2011 was $1.2 million compared to $855 thousand for the third quarter of fiscal 2010. Net income for the third quarter of fiscal 2011 was $859 thousand or $0.04 per share, versus $691 thousand, or $0.03 per share in the same period last year.
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 DIGITAL ANIMATION DEVELOPMENT, INC. AND SUBSIDIARIES | ||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||
| March 31, | June 30, | |||
| 2011 | 2010 | |||
| (unaudited) | ||||
| ASSETS | ||||
| Current assets: | ||||
| Cash and cash equivalents | $ 10,746,682 | $ 6,219,438 | ||
| Accounts receivable | 727,535 | 976,304 | ||
| Other receivables | 12,836 | 3,616 | ||
| Total current assets | 11,487,053 | 7,199,358 | ||
| Property, plant and equipment, net | 5,132,091 | 5,575,026 | ||
| Land use right and other intangible assets, net | 2,609,198 | 2,756,604 | ||
| Total assets | $ 19,228,342 | $ 15,530,988 | ||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
| Current liabilities: | ||||
| Accounts payable | $ -- | $ 34,338 | ||
| Loan payable | 335,975 | 286,000 | ||
| Accrued expenses and other payables | 164,074 | 57,040 | ||
| Taxes payable | 397,513 | 410,339 | ||
| Total current liabilities | 897,562 | 787,717 | ||
| Total liabilities | 897,562 | 787,717 | ||
| Stockholders' Equity: | ||||
| Common stock ($0.001 par value, 500,000,000 shares authorized, 20,270,000 shares issued and outstanding at March 31, 2011, 20,020,000 shares issued and outstanding at June 30, 2010) | 20,270 | 20,020 | ||
| Additional paid-in-capital | 6,723,447 | 6,223,697 | ||
| Accumulated other comprehensive income | 2,420,047 | 1,873,933 | ||
| Reserved Fund | 1,156,476 | 705,738 | ||
| Retained earnings | 8,010,540 | 5,919,883 | ||
| Total stockholders' equity | 18,330,780 | 14,743,271 | ||
| Total liabilities and stockholders' equity | $ 19,228,342 | $ 15,530,988 | ||
| CHINA DIGITAL ANIMATION DEVELOPMENT, INC. AND SUBSIDIARIES | ||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | ||||
| (UNAUDITED) | ||||
| Three months ended | Nine months ended | |||
| March 31, | March 31, | |||
| 2011 | 2010 | 2011 | 2010 | |
| Revenue | $ 2,169,443 | $ 1,679,143 | $ 5,989,431 | $ 4,057,433 |
| Cost of goods sold | 661,193 | 642,352 | 1,587,651 | 1,850,195 |
| Gross profit | 1,508,250 | 1,036,791 | 4,401,780 | 2,207,238 |
| Operating expenses | ||||
| Selling, General and Administrative expenses | 296,877 | 181,329 | 901,438 | 392,602 |
| Total operating expenses | 296,877 | 181,329 | 901,438 | 392,602 |
| Income from operations | 1,211,373 | 855,462 | 3,500,342 | 1,814,636 |
| Other income (expenses) | ||||
| Interest income | 8,784 | 82,492 | 17,920 | 251,039 |
| Non-operating income | 1,587 | -- | 1,587 | -- |
| Loss from disposal of property, plant and equipment | -- | -- | -- | (26) |
| Total other income | 10,371 | 82,492 | 19,507 | 251,013 |
| Income before income taxes | 1,221,744 | 937,954 | 3,519,849 | 2,065,649 |
| Less: Provision for income taxes | 362,667 | 246,718 | 978,454 | 546,250 |
| Net income | 859,077 | 691,236 | 2,541,395 | 1,519,399 |
| Other comprehensive income | ||||
| Foreign currency translation gain | 66,608 | 253 | 546,114 | 52,717 |
| Total comprehensive income | $ 925,685 | $ 691,489 | $ 3,087,509 | $ 1,572,116 |
| Basic and diluted earnings per share | $ 0.04 | $ 0.03 | $ 0.13 | $ 0.07 |
| Basic and diluted weighted average shares outstanding | 20,270,000 | 20,510,000 | 20,137,701 | 20,510,000 |
| CHINA DIGITAL ANIMATION DEVELOPMENT, INC. AND SUBSIDIARIES | ||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
| (UNAUDITED) | ||
| Nine months ended | ||
| March 31, | ||
| 2011 | 2010 | |
| Cash flow from operating activities: | ||
| Net income | $ 2,541,395 | $ 1,519,399 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||
| Depreciation | 618,265 | 452,795 |
| Amortization | 235,272 | 153,282 |
| Foreign currency exchange gain | (1,343) | -- |
| Changes in operating assets and liabilities: | ||
| Accounts receivable | 276,663 | 265,610 |
| Prepaid expenses | -- | 67,535 |
| Advances to suppliers | -- | 1,443,440 |
| Interest receivable | -- | (82,745) |
| Other receivables | (7,978) | (1,456) |
| Accounts payable | -- | 28,271 |
| Accrued expenses and other payables | 71,240 | 18,914 |
| Taxes payable | (28,008) | 39,555 |
| Net cash provided by operating activities | 3,705,506 | 3,904,600 |
| Cash flows from investing activities | ||
| Purchase of property, plant and equipment | -- | (2,240,436) |
| Acquisition of intangible assets | -- | (1,907,100) |
| Additions to long term investment | -- | (9,043) |
| Net cash used in investing activities | -- | (4,156,579) |
| Cash flows from financing activities | ||
| Proceeds from borrowing | 49,975 | 101,000 |
| Proceeds from sale of stock | 500,000 | -- |
| Net cash provided by financing activities | 549,975 | 101,000 |
| Effect of exchange rate changes in cash | 271,763 | 50,070 |
| Net increase (decrease) in cash and cash equivalents | 4,527,244 | (100,909) |
| Cash and cash equivalents, beginning of period | 6,219,438 | 2,282,786 |
| Cash and cash equivalents, end of period | $ 10,746,682 | $ 2,181,877 |
| Supplemental Disclosures: | ||
| Cash paid during the period for: | ||
| Income taxes | $ 1,033,306 | $ 515,968 |
| Interest | $ -- | $ -- |