Fushi Copperweld Inc. (FSIN) Posts Final Q4, FY2010 Results

QualityStocks would like to highlight Fushi Copperweld Inc. (NASDAQ: FSIN). Through its wholly owned subsidiaries, Fushi International (Dalian) Bimetallic Cable Co. Ltd., and Copperweld Bimetallics LLC, the company is the leading manufacturer and innovator of copper-clad bimetallic engineered conductor products for electrical, telecommunications, transportation, utilities, and industrial applications.

In the company’s news yesterday,

Fushi Copperweld announced its final financial results for the fourth quarter and 12 months ended December 31, 2010, in line with previously announced preliminary results.

“Our 2010 fourth quarter and full year results came in as expected and reflect strong performance in a shifting market driven by infrastructure spending priorities and volatile raw material pricing. We remain focused on leveraging the global opportunity we see for our products and will continue to expand our presence in both current and new markets to grow our business,” Joe Longever, co-CEO of Fushi Copperweld stated in the press release.

Revenues for the fourth quarter of 2010 increased 35.2 percent to $69.9 million, up from $51.7 million in the prior year quarter.

Gross profit in the fourth quarter of 2010 increased 28.8 percent to $22.2 million compared to $17.2 million a year ago. Gross margin decreased to 31.8 percent from 33.4 percent in the year ago period; the company attributes the decrease primarily to lower gross margin of Dalian Jinchuan, which was acquired in February 2010.

Operating expenses in the fourth quarter of 2010 increased 29.9 percent to $6.2 million compared to $4.8 million in the prior year’s quarter. On a percentage basis, the company reported that its operating expenses decreased to 8.9 percent of revenues from 9.3 percent in the fourth quarter of 2009. Operating income was $16.0 million, a 28.3 percent increase compared to the prior year period.

On GAAP basis, the company reported a net loss for the 2010 fourth quarter at $2.4 million, or $0.06 per diluted share, compared to GAAP net income of $10.2 million, or $0.34 per diluted share, in the fourth quarter of 2009.

On non-GAAP basis, fourth-quarter 2010 adjusted net income was $13.4 million, or $0.35 per diluted share, compared to adjusted net income of $10.3 million, or $0.34 per diluted share, in the prior year fourth quarter.

During the three months ended December 31, 2010, the company generated $27.4 million net cash from operating activities, compared to $11 million in the comparable period in 2009.

For full-year 2010 the company reported of $265.0 million, a 44.8 percent increase over the $182.9 million reported for 2009.

Gross profit for the 12 months of 2010 increased 44.7 percent to $79.3 million, or 30.0 percent of revenue, from $54.8 million, or 30.0 percent of revenue, reported in fiscal year 2009.

Operating expenses for fiscal year 2010 were $21.2 million, compared to $17.9 million in fiscal year 2009. On a percentage basis, operating expenses decreased to 8.0 percent of revenues from 9.8 percent for fiscal year 2009. Operating income increased 57.3 percent to $58.0 million, or 21.9 percent of revenues, compared to $36.9 million, or 20.2% of revenues, in fiscal year 2009.

On GAAP basis, net income for the 2010 fiscal year was $31.9 million, or $0.85 per diluted share, as compared to net income of $21.9 million, or $0.76 per diluted share, in the 2009 fiscal year.

On non-GAAP basis, adjusted net income was $48.6 million, or $1.30 per diluted share in 2010 fiscal year, compared to adjusted net income of $28.9 million, or $1.01 per diluted share, in the 2009 fiscal year.

As of December 31, 2010, the company’s cash position was $123.0 million, up 103.0 percent from $60.6 million as of December 31, 2009.

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Forward-Looking Statement:

This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. Risks and uncertainties applicable to the company and its business could cause the company's actual results to differ materially from those indicated in any forward-looking statements.